The land currently owned by the investor group is part of Estrella Gin Business Park, which is slated for office, retail, and multifamily development. The location is approximately SR 238 and Loma Rd, across the street from the future Phoenix Surf recreation facility.
The current investment opportunity is mezzanine financing for the developer/borrower. The financing is for the entitlement and development of 10.19 acres earmarked for constructing and selling a 195-unit multifamily project known as Villas at the Gin located in the city of Maricopa, Arizona.
- As stated in our Private Placement Memorandum and Subscription Agreement, our current offer for accredited investors is a 10-12% fixed return for three to five years, simple, interest, subordinate to the construction loan of up to 85% of the construction cost.
- The maximum raise of new capital is $7.65 million to match the current approximate $6 million that the principals and stakeholders have invested.
- The completed multifamily housing project construction cost is expected to be between $35 to $38 million.
Balance Sheet
- The Balance Sheet structure will include between $26 to $28 million in construction financing, non-recourse to the investor group.
- The investor group mezzanine financing of subordinate debt is expected to be as much as an additional $7.5 million.
- The equity that the ownership group has in place is $5,733,537.00 contributed capital to a Tenants in Common structure with a Management Agreement in place with Equity Capital Funding Group, LLC.
- The general contractor has agreed to secure a completion bond to insure against the risk of not completing the project.
Project Development Timeline
The expected project timeline is as follows:
● DRB and zoning began in May 2022. The expected completion date is November 2022.
● Completed construction drawings running congruent with DRB and zoning to be completed by November 2022.
● Finalized construction budget and financing completed by December 2023.
● Begin and complete construction to begin February 2023 with expected completion between August 2024 and April 2025.
● Begin renting the project during the final stages of construction with stabilization within 12 months of completion. Final phase completion is expected by early 2026.
● The sale of the project could occur almost anytime during the process. Refinancing may take place after rent stabilization.
City of Maricopa Highlights
The unprecedented real estate price increases in Maricopa County are the primary reason demand for housing, retail, and other development in the city of Maricopa is expected to continue.
● Consistent and growing demand for housing with close proximity to major employers. Housing stats were 987 in 2019, 1,623 in 2020, and 1,846 in 2021.
● Approximately 80% of City of Maricopa homes are owner-occupied.
● Strong household earnings with more than over 90% above $75,000 a year, and over 42% exceeding $100,000 annually.
● A small-town atmosphere with a convenient location of 35 minutes to Phoenix Sky Harbor and 90 minutes to Tucson international airport.
● Well-established multimodal transportation in road, rail, and air with direct routes to the Ports of Los Angeles and Long Beach.
● Plentiful resources and raw materials for agriculture, aviation and aerospace technology, mining, and specialized manufacturing.
● 80% of Maricopa’s workforce does not work within city limits. Business sectors with a surplus of resident workers that drive 30 minutes to work in sectors such as business and financial operations, management, healthcare, transportation and material moving, sales, office, and administrative support.
Let’s chat
We are currently accepting accredited investors and welcome the opportunity to chat with you. Click below to schedule a conversation with a principal.
Over 100+ Projects circa
1997
Completed Real Estate Transactions
$426 Million
