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Mission Ridge Townhomes

Multi-family Townhome | Wenatchee, WA Minimum Investment: $22,000
Mission Ridge Townhomes
description

Project Highlights:

  • New construction project in Wenatchee, WA
  • 1/3 Acre parcel
  • 7 Units- 2 bedrooms, 2 bathrooms,  with a single-car garage
  • Permit ready

The construction of the seven-unit townhomes, was originally scheduled to begin in spring, 2020 (but delayed by the coronavirus pandemic ) with the completion and lease-up phase projected for the first quarter of 2021.  For each $22,000 unit subscribed to Equilus Capital Partners, LLC, the investor will own one membership unit or approximately 1% beneficial ownership interest in the Capital Partnership, LLC, Mission Ridge Townhomes. 

All monies will be applied directly to a title ownership interest via the LLC     Partnership. Initial funds will be held in interest-bearing equity trust funds until they are moved out of the construction planning phase into the construction or income phase.  Annual profits, losses, and distributions are passed through to the membership base for as long as there is operating income in the members' LLC portfolio.  This project is planned to be held on a basis of 4-10 years, at which time the LLC may sell the townhome unit for an appreciated asset return of capital.

 

Project Assumptions:

Based on the projected price of the lot and permitting of $400,000, and the construction build-out of $1,800,000, the total projected cost for the project is $2,200,000. Mission Ridge Townhomes, which consists of seven 2 bed/2 bath units, is expected to produce a stabilized cash flow by spring, 2021. The properties are projected to provide an aggregate annual cash flow yield of approximately 4.61% following development completion and stabilization. The aggregate annual cash-flow yield is expected to increase on an annual basis from $128,520.00 in year 2 to $150,581.66 in year 10, based on contractual lease terms and a fixed-rate projection of 2% annually. The projected aggregate first-year net cash from operations of the properties is estimated to be $102,999.60.  This projection is net total of any debt service and total projected property Management and Operations expenses of $25,520.40, which includes an annual fee to the Fiduciary Trustee.

 

Based on the all

-

inclusive cost of $

78

7

,

5

00

for the purchase of the properties from

Equilus Capital

Partners,

$

7

,

212,500

Million for site construction and buildout of phase II

A

-

C

of

54

multifamily units the Properties as a group are projected

to provide an aggregate annual cash flow yield of approximately

6.45

% the first year following t

he completed

development by

CPCII

for the beneficial ownership interests in the Property Partnership. The aggregate annual cash

-

flow

yield is expected to increase on an annual basis from $

481,170

in year two to $

563,932

in year ten based on contractual

lea

se terms and fixed

-

rate projection of 2% annual. Projected aggregate first

-

year net cash from operations of the

Properties is estimated to be approximately $

471,736

. These projections are net total of any debt service, total annual

Administrative Fees to t

he Fiduciary Manager of $

12,026

and total projected Administration and Property expenses of

$

1

29,607

which includes an annual fee to the Fiduciary Trustee.

Mission Ridge Townhomes

Multi-family Townhome | Wenatchee, WA Minimum Investment: $22,000