Equity Partnership-Indicative ROI up to 100% on $175k Investment
Indicative Return on Investment (ROI): 50% - 100% ROI on $175,000 Investment
PROJECT DATA
Location: 1988 Park Lake Dr, Boulder CO 80301
Governing Agency: Boulder County Land Use Dept, State of Colorado
Lot Area: 0.71 acres
SCOPE OF WORK
2,852 square foot addition resulting in a total residential area of 5,304 square feet on a 0.71 acre parcel. All mechanical, electrical, plumbing and septic will be brought up to current code. Fire sprinkler and photovoltaic systems will be included to meet code requirements. Transitional architectural and interior design aimed toward ADA accessibility and multi-generational living.
PROPOSED PARTNERSHIP AGREEMENT AND PROJECTED RESULTS
Expected Initial Equity
- Sky Castle (Developer) $241,535 (76%)
- Equity Partner (Investor) $ 73,465 (23%)
Assumed Equity After 12mo
- Sky Castle (Developer) $241,535 (61%)
- Equity Partner (Investor) $151,668 (39%)
Estimated Profit (Sell $2.6M @ 12mo)
- Sky Castle (Developer) $242,650 (100%)
- Equity Partner (Investor) $152,368 (100%)
Preferred Return
- Sky Castle (Developer) 6% of total budget during construction
- Equity Partner (Investor) 10% of net profit prior to disbursement
Estimated Term
- 12 - 18 months
Suggested Monthly Debt Service Payment
- Sky Castle (Developer) $ 0 (0%)
- Equity Partner (Investor) $6,998 (100%)
Roles, Responsibilities and Expectations
- Sky Castle (Developer): Co-sign refinanced construction loan; provider personal guaranty; provide licenses and experience in Project/Construction Management and General Contracting; provide evidence of title, ownership and vested equity; provide on-site management and scheduling; provide all contract management, book-keeping and accounting services
- Equity Partner (Investor): Co-sign refinanced construction loan; provider personal guaranty; provide record for 1.5 debt service coverage ratio (DSCR) over a 3-year average; provide evidence of >$7,500 monthly cashflow; provide timely monthly debt service payments
Current Status: All permits issued; abatement and deconstruction of existing structure complete; ready to excavate
Completion: Anticipated eight (8) months to reach substantial completion; average days on market (DOM) 105
Market Analysis
- In March 2018, Land Title Guarantee Company determined the neighborhood of Park Lake to be the 2nd “hottest” neighborhood in Boulder with a 12% turnover rate.
- According to a Denver Post article released August 2018, “The Colorado Front Range is experiencing a tech real estate gold rush.” Tech companies such as Apple, Amazon, Google and Facebook are among the companies that have more than doubled the amount of new office and commercial space filled. Our target market of buyers are among the leaders, managers and employees of these companies investing in Boulder.
- Per an MLS search within 5 miles and the past 18 months, there have been 19 properties listed on the open market. Average sale price $3.0M and average DOM of 176.
To receive a copy of the full Equity Partnership Package and details, please email [email protected].