PROJECT DETAILS

Abilene TX Housing Project

+ 200 BUILD TO RENT SINGLE FAMILY RESIDENCES + 120 BUILD TO RENT TOWNHOMES + JOINT DEVELOPER HAS 55 SUCCESSFUL PROJECTS
+ JOINT DEVELOPER HAS 24 YEAR HISTORY SERVING DR HORTON, LENNAR, PULTE + DEVELOPER HAS PLEDGED LAND TO JOINT DEVELOPMENT

PROJECT BRIEF - PDF
+ Growing University Town + Expanding Job Base + Student Housing Needs Three Universities + 88 Acres of Land + Excellent Frontage

ANTICIPATED ECONOMIC VALUE + COST + NET EQUITY IN RENTAL PORTFOLIO + NET OPERATING INCOME
$78M Overall Market Value vs. Anticipated Net Equity Upon Stabilization Of $23,354,000
a) $78M Of Anticipated Value Of Rental Housing Given 344,000 SF With Anticipated Market Value Of $227 Per SF
b) $8M Of Anticipated Net Equity In Rental Housing Portfolio Upon Stabilization With Anticipated Market Value Of $181 Per SF
c) $15M Of Anticipated Net Equity In 88 Acres Of Retained Land Upon Stabilization Based On An Assumed Value Of $46 Per Square Foot

ECONOMICS + DEAL SUMMARY + 300% MORE FIVE-YEAR DEPRECIATION
$6.4M Of Anticipated Operating Revenue Upon Stabilization
$4.4M Of Anticipated Net Operating Income Upon Stabilization
$54M All In Development Cost ($6.7M Infrastructure Cost + $46.9M Construction Cost)
$5M Equity Investment From Private Investors For Soft Development Cost For 10% Non-Diluted Ownership In Project
$50M Development Loan Via Private Equity (No Debt Service - Zero Interest Carry)
68% Annual NOI As % of Gross Revenue Upon Stabilization

(PVE) BETTER PERFORMANCE + VALUE + EXIT
The economic model used for the Abilene 88 project provides two three times more depreciation in a five-year period for stakeholders to enjoy. The typical portfolio of rental properties in this asset class of built to rent housing would most likely fall into a standard 27.5 depreciation schedule. In our modeling we would apply $18M compared to $6M of depreciation in five years.

COMMON TARGET IRR vs. OUR ANTICIPATED TARGET:
22% Target IRR: this is the common target used by many developers of this asset class.
27% Anticipated IRR: our anticipated IRR is higher due to $18,000,000 of five-year depreciation during stabilization.
Note: the five year depreciation of $18M is 200% greater than the common $6M depreciation applied by well informed, astute Developers.

This project will stand out with higher performance above other Built-to-Rent projects not due to higher rent rates or lower operating cost but rather due to the two the three times more depreciation as a non-operating expense in the first five years. That represents a material change in performance, value and of the portfolio if the shareholders chose to accept a purchase offer.

EQUITY OWNERSHIP - INVESTORS / LANDOWNERS / CODEVELOPERS / PRIVATE EQUITY PARTNERS
10% Equity Retained By Landowners
20% Equity Retained By Gromax
10% Equity to Private Investor Providing $5M of Soft Development Cost
10% Equity Retained By Bustamante Construction Via Carried Interest
50% Equity Retained By Private Equity Firm Providing $50M
Six Month Timeline For Permitting & Entitlement
48 Month Development Cycle

FINANCING PLAN:
(1) $5M Private Investment Of Private Investors For 10% Ownership In The Project
(2) $50M Equity Investment Of Private Equity Firm

If you have any difficulties with downloading or accessing a document set, please contact Patrick Earles by text at 509.591.8494