Updated about 8 years ago on .
INVEST IN PREMIUM LA DEVELOPMENT - 2 YR HOLD - 38% ROI
INTRODUCTION:
Racing Green Investments are keen to present an exciting development opportunity nestled in the Hollywood hills above studio city; new construction of an ultra contemporary and highly desirable single family residence.
This 6 Bedroom, 8 bathroom home will have 7,900 sf of habitable living space split between a 6,700 main house and 1,200 guest unit.
The property is designed as an ultra modern home with spectacular panoramic views, open plan living and high end fixtures and finishes including Viking appliances, an infinity pool, home cinema and wireless home security and audio systems.
Construction finance has already been agreed with our long term lending partner and first stage plans have already been drawn up and are available upon request.
HEADLINE FIGURES:
DEAL NEED: $5,508,100.
FUNDED BY:
LAND ACQUISITION: $2,000,000
FINANCE: $1,000,000 (50% LTV)
INVESTOR EQUITY - $1,000,000 (50% LTV)
CONSTRUCTION LOAN: $3,600,000
FINANCE - $2,200,000 (65% LTV – INTEREST PAYABLE ON DRAWN AMOUNT ONLY)
INVESTOR EQUITY - $1,000,000
GROSS PROFIT $1,255,000.00
INVESTOR RETURNS:
Investor highlight include:
-XIRR of 17% per annum based on 24 month exit.
-ROI of 38% on an 24 month exit.
SENSITISED FINANCIAL FORECASTING:
-Sensitized financial modeling assumes build of c.$350/sf and $300,000 of built in contingency.
-Assumes 100% of construction loan drawn day 1; uplift on undrawn amount should provide a financial uplift of over $100,000.
-Assumes property held for full 24 months; critical path schedules an 18 month build out.
-Exit price assumes $850/sf on exit compared to similar properties commanding almost $1,000 – PLEASE SEE 3804 RHODES AS CLOSEST SOLD COMPARABLE TO DATE - https://vimeo.com/153865923.
CURRENT MARKET COMPS:
3804 RHODES AVE – SOLD FOR $7,600,000
7,846SF /56,875 LOT. 6 BED, 7 BATHROOMS.
Video viewable at: https://vimeo.com/153865923
4136 HAYVENHURST DRIVE: NEW CONSTRUCTION – SOLD AT $6,995,000
8,500SF / 28,784sf Lot 6 BEDROOMS, 8 BATHROOMS
www.redfin.com/CA/Los-Angeles/4136-Hayvenhurst-Dr-91436/home/4917729