April 17, 2019
The Growth Fund is invested in a brand new value-add asset named Summerlyn in Texas. Closing is anticipated next month for this new 200 unit project that is targeting an 18% IRR to the Growth Fund. Our real estate team is out in Texas currently looking at 2 other value-add opportunities that the Growth Fund would benefit from as well.
The City should be a couple of weeks away from fully approving the Park Blvd project so we have begun the process to move forward with demolition permits. The big items include asbestos clearance and completing utility disassembly from the old structures. As we gear the project site up to begin construction we are working on finalizing the capital stack structure for the construction financing. We are preparing to break ground on this project at the end of Q2.
Project Stage: Pre-Construction. Demolition Permit in Progress. Construction Financing in Negotiation
The Granito site has been pushing forward with grading on the site with engineers while negotiations continue to secure the best financing option for the site. We are currently completing the builder contract with Shawmut, the new general contractor, to ready the project with the vertical construction once the land is prepped.
Project Stage: Construction.
The asset continues to cash flow while the project is going through the condo mapping process with the city. We are also preparing to refinance the current loan to a lower rate that will increase the cash flow for the property until the condo map process is complete and the property is listed for sale.
Project Stage: Completed and Cash flowing.