Page 7 - The Addie

EXECUTIVE SUMMARY
The Addie is a proposed new development in the West Austin suburb known as Westlake. We have contracted to acquire a 16-acre site o of Highway 360 where we plan on constructing 29 single family homes and 18 attached townhomes. Average new construction in this zip code has topped $400 per foot and climbing and this area continues to grow, the homes have been upgraded and more amenities have been added. The total for this project budget is $32.4M ($687,140 per unit; $294 psf). The Addie is expected to produce a leveraged IRR over the assumed 40-month project of approximately 31%. With a product size averaging just over 2,300sq.ft. priced under $850,000 we are con dent that the strong demand will generate the sales pace to sell out in less than 20 Months.
Legacy Performance Capital (LPC) will partner with Van Tuyl Companies (VTC), who will form an entity to acquire the site and fund LPC. LPC will oversee the deployment of capital and development of the project. LPC will engage Legacy Development LLC who will be responsible for the overall management of the project, as well as completion of construction, sales and marketing of the homes. On behalf of the VTC, LPC will secure construction nancing from VTC or another institutional lender to leverage the project. Legacy Development has already commenced the due diligence stage of the project and LPC is anticipat- ing completing feasibility and purchasing the land by November 14, 2018.
PROJECT SUMMARY
Address
Lot 1 Rob Roy, Austin Texas 78746
Residential Units
50
Project Size (SF)
116,500
Site Area
16 Acres
Buildings
51
Stories
2-3
Construction Completion Date
February 2022
Proposed Investors
Van Tuyl Companies
Critical Dates
Land Closing November 14, 2018 Site Development Start October 2019 Sales Starts December 2019 Construction Start January 2020
Investment
Total
PSF
Per Unit
Land
$ 4,500,000
$ 38.63
$ 90,000
Preconstruction
$ 724,559
$ 6.22
$ 14,491
Site & Amenity
$ 5,291,700
$ 45.42
$ 105,834
Vertical Costs
$ 21,890,740
$ 187.90
$ 437,815
Indirect Costs
$ 1,035,889
$ 8.89
$ 20,718
Marketing
$ 914,113
$ 7.85
$ 18,282
Total Project
$ 32,357,001
$ 294.91
$ 687,140
Proposed Capitalization
Debt
$ 25,286,905
69%
VTC Equity
$ 5,426,250
15%
LPC Equity
$ 1,933,750
5%
Deposits
$ 3,900,975
11%
Total Project
$ 36,547,880
100%
Projected Profit
40 Months
$ 7,555,495
Investor IRR Leveraged 31%
LEGACY COMMUNITIES
5