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EXECUTIVE SUMMARY Subject Property| FINANCING REQUEST| To finance construction of subject The Villagio at Austin property. The borrower requests competitive development debt financing. SH-620 Austin, TX PROPERTY DESCRIPTION | Loan Type| Construction Physical: SH-620 North near Anderson Mill Rd. Loan Purpose| Ground-up Legal: Property Type| Mixed-Use Zoning: Not Applicable As-Is Value|$10,000,000 Unit Mix: 288 apartment units/ 6 restaurants / Office/Retail As-Completed Value|$118,451,540 NRSF: Retail/Office – 150,000 Multifamily - 311,000 Price Per SF|$257 Avg SF: 900 sf per apartments Total Dev Costs|$91,603,425 Lot Size: 30 Acres Loan Requested| $72,800,000 # of Bldgs: Retail – 10 Office - 2 Multifamily - 2 LTC| 80% Frontage: 49,240 sf Pro Forma NOI| Utilities: Municipality – City of Austin $3,994,350 Apartment $4,275,000 Retail/Office # of Parking Spaces/Parking Ratio: Surface Parking @ 420 Principal Cash Contribution| Structured Parking @ 750 $18,803,425 Total Parking @ 1170 Apartment Ratio 1.66/unit Principal Borrower(s)| Commercial/Retail – 3.5/1,000sf The Marcel Group Restaurants – 10/1,000sf P.O. Box 9556 The Woodlands, Texas 77387 Amenities: Structured parking, lush landscaping, natural park/lake www.marcelinc.com settings, etc. PRIMARY CONTACT Antonio Marquez firstname.lastname@example.org 619.955.7665 PROPERTY BACKGROUND | Background: The Villagio is a Class-A mixed-use development in Austin near Lake Travis and Anderson Mill Rd. The property serves to satisfy pent up retail and apartment demand in the vibrant and bustling community. The Villagio will contain apartment for upper income A-credit tenants as well as retail and office uses throughout the property. In addition, the property will have natural park settings and a lake on premises. Absorption and demand has been strong in Austin for the intended uses of this project. Tenant profile: Regional credit tenants for retail/office. Upper income, strong credit apartment tenants. 20110625 CONFIDENTIAL Recent Occurrences: Recent multifamily density bonuses have provided favorable approvals in addition to a more attractive return profile on the Villagio at Austin project. Existing Debt : Land acquisition per option contract to take place before December of 2007 in the amount of $6,500,000 plus soft costs. Leasing Management: Retail leasing will be performed by the Marcel Group’s in-house leasing team. www.marcelinc.com. Third-party management will be provided for multifamily component. Entitlement Status: Fully entitled Total Development Cost: $91,603,425 As-Completed Value: $118,451,540 LTC: 80% Absorption Period: 8-10 months Expected Stabilization: 30 months As-Completed LTV: 60% _________________________________________________________ MARKET/SUBMARKET CHARACTERISTICS| Economic Growth Economic Market Report: http://recenter.tamu.edu/mreports/AustinRRock.pdf Real Estate News-Austin/RoundRock: http://recenter.tamu.edu/mnews/mnsearch.asp?AID=3&TID=&STX= Austin Economic Profile: http://www.austin-chamber.org/DoBusiness/GreaterAustinProfile/index.html Workforce Data: http://www.austin-chamber.org/DoBusiness/GreaterAustinProfile/workforce.html City/County Plan: http://www.austin-chamber.org/DoBusiness/AboutOpportunityAustin/About.html Nearby Developments (complementary growth ie retail, office): http://www.globest.com/cgi- bin/texis/scripts/globest-search/search.html?query=austin%2C+tx Historical/Current Occupancy: 95% for both residential and retail. Rental rate trend: 5% per annum Units in Inventory: N/A Building Permits: http://recenter.tamu.edu/data/bpgis/Austin.html PRINCIPAL(S)| Borrowing Entity (SPE): To form separate entity with borrowers and equity investors. Guarantor(s): Compass Cos., Marcel Construction & Maintenance, Charles & Vernon Veldekens Background: Real Estate Development Track Record: Multiple retail developments throughout Texas. www.marcelinc.com Credit Score: 800+ Net Worth: $20MM+ Cash into Deal: $18,803,425 20110625 CONFIDENTIAL SOURCES & USES Source Schedule Senior Debt $72,800,000 Subordinated Debt: Seller Financing N/A Subordinated Financing: Mezzanine N/A Cash Contribution $18,803,425 Imputed Equity N/A Use of Loan Proceeds: Land acquisition and ground-up development of The Villagio Project. Use Schedule Land Acquisition $6,500,000 Soft Costs – Expenses/Developer Fee $18,183,425 Interest Reserves $5,750,000 Development Costs - Hard $61,170,000 LOCATION | Reference: http://maps.google.com/maps?f=q&hl=en&q=FM- 620+N,+Austin,+Travis,+Texas,+United+States&sll=30.577632,- 97.45697&sspn=0.55569,1.2854&ie=UTF8&cd=3&geocode=0,30.391040,-97.887520&ll=30.419664,- 97.851791&spn=0.139149,0.32135&z=12&om=1 EXIT STRATEGY| Estimated date of repayment: Spring 2010. Financial Exit Strategy: Permanent takeout of construction financing subsequent to stabilization to take place 30 months from construction financing. 20110625 CONFIDENTIAL
"Executive Summary Template EXECUTIVE SUMMARY"