Capital Partners for 148 Unit Apartment 30-40%

Here is the offering on an exceptional project in an amazing location in the heart of Pacific Lutheran University. We have spent the last couple of years getting this site rezoned from 15 single family lots to 148 unit multifamily and have been working through all the entitlements. We are looking for capital partners to help get entitlements to the finish line. We have permits submitted to Pierce County for all site engineering and building permits (architectural, structural, MEP, etc) and are expecting approvals within 6 months. We are looking to recapitalize with ideally 1-4 capital partners ($500k minimum ) to restructure the partnership with a buyout of the current minority partners (about $600k) and pay off the current high interest loan (about $2M). We have already spent around $1,000,000 in entitlement expenses. This is a very strong project in an amazing location. Based on a recent broker opinion of value and preliminary comps with a local commercial appraiser the expected value of the project at approved entitlements is north of $7M and maybe as much as $8.5M. With this the project is in a very strong equity position.

The current projection is based on a Build and Sell model. We are working on capital in 2 phases. This First phase is to get us through to full approved entitlements/permits. We are going to go ahead and put the project on the market for sale at full entitlements. While at the same time finalizing potential construction costs and a possible GC partnership to build. As we get purchase offers we can review together as Capital Partners and decide together whether to sell as offers come in or if we want to move forward to Phase 2 with construction of the asset with a GC partner. If we decide to proceed with Phase 2 will need to bring additional capital to the group to cover some of the construction financing and a guarantor. Once the project is built, as a partnership we would then decide to sell the asset or look at a long-term hold. When developing we always consider each waterfall event (exit).

The project at this phase includes a preferred return and a waterfall split on profits. Here is breakdown of Capital Stack.

Preferred Return:
- Set for 12%
- This is paid after initial capital has been returned and before profits are distributed to partners.

Waterfall:
- Each capital partner is given ownership in the development to the percentage of the capital that they contribute compared to the total amount required.
- Their ownership entitles them to an equal portion of project profits. Ownership is allocated based on the project projections at the start of the project and targets a return of 20-30% for the capital partner over the life of the project.
- The target of 20-30% is the total projected between the preferred return and the water waterfall.
- Capital partners are given voting rights in the developing entity.

For more information on this great opportunity please respond to the listing.