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CONFIDENTIAL OFFERING MEMORANDUM
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 2
Merced Station Summary
Designated Student Housing University of California – Merced
Merced Station
270 Units, 885 Beds
EB-5 Investment Offering Summary
• 10 EB-5 Units (Limited Partnership) • $900,000 Per Unit (TEA) • $65,000 Administrative Fee Per Unit • EB-5 Total Raise: $9 million
o Redeemable Preferred Equity o 5% Preferred Return
• Estimated Total Return: 25% - 35% • Investment Term: 5-7 Years • Completion Guarantee • I-526 Refund Guarantee • Fully-Funded, Under Construction • CBRE Appraisal • Estimated Job Creation: 611 • Over 300 Jobs Already Created
The information herein has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness, any projections, opinions, assumptions or estimates used are for the example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors, which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs and the needs of EB-5 investors.
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 3
Table of Contents
TABLE OF CONTENT ................................................................................................................................................................................................................................................................... 3
SECTION I – EXECUTIVE & LOCATION SUMMARY ........................................................................................................................................................................... 4
EXECUTIVE SUMMARY...................................................................................................................................................................................................................................................... 5
MANAGEMENT TEAM ....................................................................................................................................................................................................................................................... 6
LOCATION SUMMARY – CITY OF MERCED ............................................................................................................................................................................................................... 9
DEMOGRAPHIC SUMMARY ............................................................................................................................................................................................................................................ 10
UNIVERSITY SUMMARY - UC MERCED ...................................................................................................................................................................................................................... 11
UNIVERSITY SUMMARY – 2020 PROJECT .................................................................................................................................................................................................................. 12
CITY OF MERCED - ZONING ......................................................................................................................................................................................................................................... 14
SECTION II – DEVELOPMENT & CONSTRUCTION SUMMARY .................................................................................................................................................... 15
GENERAL SITE & BUILDING INFORMATION ........................................................................................................................................................................................................ 16
COMMUNITY SITE PLAN ................................................................................................................................................................................................................................................. 17
BUILDING RENDERINGS ............................................................................................................................................................................................................................................... 19
SECTION III – EB-5ANDFINANCIAL INFORMATION ......................................................................................................................................................................... 25
PROJECTED VALUE AND EB-5 FUND RETURNS ................................................................................................................................................................................................... 26
SECTION IV – MARKET COMPARABLES .............................................................................................................................................................................................. 27
RENT COMPARABLES ....................................................................................................................................................................................................................................................... 28
RENT COMPARABLES – SUMMARY & ANALYSIS ................................................................................................................................................................................................... 29
SALES COMPARABLES ...................................................................................................................................................................................................................................................... 31
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 4
SECTION I – EXECUTIVE & LOCATION SUMMARY
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 5
Executive Summary
Biltmore Properties, Shamrock Acquisitions, and EB-5 Equity Development Partners is pleased to present the unique opportunity for EB-5 investors to invest in the Redeemable Preferred Equity of Merced Station, a fully-funded, currently under construction, 270-unit, 885 bed student-housing development with 6,600 ft.2 of retail space serving the students of University of California – Merced. This timely and well positioned development represents the first significant off-campus housing for UC Merced and will help to satisfy both current and future housing needs of this rapidly expanding university. The University of California Regents have recently adopted and funded the UC Merced 2020 Plan. This plan is supported by a fully funded $1.3 Billion capital deployment with a primary focus of pushing enrollment to 10,000 students by September 2020 (a significant increase from the 2017 enrollment of 7,976, which is a 10% increase from 2016). These additional students will amplify an already existing housing crisis in Merced. Currently, over 5,500 students live off campus; by the end of 2020 that number will swell to over 6,100 students. Merced does not have designated student housing facilities and Merced Station is currently the only project in development. Long term projections are for UC Merced to follow a traditional UC system’s growth path toward 25,000 to 30,000 students. Additionally, 11,552 students are enrolled at nearby Merced College and it is the Developers expectation that Merced College students will account for roughly 20% of the tenant base at Merced Station. This offering is for up to $9 million in Redeemable Preferred Equity, which will grant each EB-5 Investor in the EB5EDP Merced Station EB-5 Limited Partnership a 5% annual preferred return. The Redeemable Preferred Equity Investment shall be senior to all capital in the capital stack, only below senior debt. The Project is currently fully-funded, has completion guarantees, is in the vertical construction phase, and is on-pace and on-budget. The primary function of the Redeemable Preferred Equity is to reduce the Project’s cost of capital by replacing a higher cost construction loan and to mitigate risk by positioning the Project to refinance the senior debt to a much lower interest rate. Based on current estimates, this project will be completed in time to obtain a Certificate of Occupancy for the 2021/22 academic year and is expected to create over 611 EB-5 eligible jobs. During the design and entitlement process, UC Merced was very supportive of Merced Station by providing direct input on features that would appeal to UC students. During this collaborative effort between UC Merced, Biltmore and Shamrock jointly held student focus groups to provide direct overview and comments on the planned design and amenities. The UC community suggested a fitness center, green architecture, retailers geared to student needs, swimming pool, study space, and state of the art internet and technology available to all residents. Current plans exceed the University’s vision and incorporate all these amenities into the master plan along with other desirable features (volleyball, basketball, fire pits, etc.). The Merced Station ownership has employed industry experts as consultants and has modeled the project by analyzing national and regionally successful student housing complexes. The Developer estimates a 26-month construction timeframe with total costs of approximately $79,899,255. Based on a careful analysis of the student housing market the Developers believe that by year-end 2021 this project will achieve a market value in excess of $104,000,000. This estimate is supported by a recent appraisal completed by CBRE in September of 2018. Applying the same capitalization rate used in 2021 valuation, 2022 and 2023 values are expected to be $111,643,511 and $118,509,645, respectively.
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 6
Management Team
Shamrock Acquisitions LLC (www.Shamrock-Acq.com) is a real estate acquisitions firm formed in 2008. The company acquires physically and financially distressed properties in Michigan, Ohio, Indiana, Florida and California. The firm has two distinct strategies. First, is a long-term “buy and hold” strategy. This encompasses small office buildings, multifamily residential, long-term notes, single family rentals, and retail centers. The second strategy is to purchase, develop, and/or renovate and sell high quality assets at market value. As of April 2018, Shamrock owns approximately $62 million worth of real estate across the United States.
Matthew Duffield – Founder & Principal With over 23 years of experience in the mortgage and real estate industry, Matthew is a proven prospector, marketer, client advocate and real estate investor. While at Quicken Loans, Matthew lead the country’s largest online lender in sales, closed volume, and revenue for over 12 consecutive years. In 2008, he left his day-to-day operations and started pursuing real estate acquisitions related to distressed properties. Matthew established a real estate brokerage and co- founded Shamrock Acquisitions. From Matthew’s leadership, Shamrock has acquired several hundred homes, notes and buildings throughout the loss mitigation process. Matthew has been the driving force of making the transition into ground-up development projects and strategic business acquisitions. This includes the acquisitions of a 100-year old development company, Biltmore Development.
Ryan Houlihan - Co-Founder & Principal Ryan has over 21 years of business experience working in the lending, real estate and construction industries. His diverse background and over 25 years of entrepreneurship and executive leadership brought him to co-founding Shamrock Acquisitions in 2008. He is a proven prospector and has established various work flows regarding property preservation, management, redevelopment and new construction. Ryan is currently the CEO of Shamrock Acquisitions and manages the company’s day to day operations.
John Heinz – Development Team Founder of JP Heinz & Company, which he has owned for over 20 years until it was sold in 2006, John managed his highly successful commercial construction company. As an accomplished developer and general contractor with over 90 commercial projects to his credit. John is a proven industry leader and has comprehensive understanding of how to control risk, reduce cost and efficiently complete projects. His leadership and experience were instrumental in the execution of projects ranging in size from $1 million to over $50 million. All types of construction projects were built including schools, hotels, retail, auto dealerships, office, medical and public sector projects. Some examples of John’s work in California real estate development include major construction pieces of the Stockton Event Center ($65 million), the Stockton Ball Park ($25 million), and the Stockton Sheraton Hotel ($48 million). John is responsible for project entitlements and will oversee the construction of Merced Station.
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 7
Gregory Fish – Development Team Gregory Fish is the President of G&G Management Group, a real estate development, financing, and consulting firm. Previously, Greg owned G.D. Fish & Associates which was a registered investment advisory firm focused on real estate investing and securities. Greg has broad knowledge in financial analysis, securities, and 1031 exchange criteria. A graduate of Santa Clara University with an MBA in finance, Greg was previously licensed with the NASD and SEC from 1978 to 2005. Greg was an officer of several real estate public and private partnerships and developed apartment communities, commercial property, and senior living facilities. Recent projects include being part of the development and financing team of Ponte Palmero, a 239-unit senior care facility in Cameron Park, CA ($130 million). Prior tothat, Greg brought equity investors and management skills to help develop Casa de Santé Fe, a 160-unit senior living community in Rocklin, CA. Casa de Santé Fe was built for $21 million and sold in 2007 for $36 million.
Biltmore Development (www.BiltmoreDevelopment.com) over the course of its 90-year corporate history, Biltmore’s primary focus was on the development of single-family residential land and home building. Biltmore andits partners were involved in the purchase, sale and development of more than $1 billion of real estate, which includes;
• 30,000+ residential lots • 10,000+ single family homes • 5,000+ rental apartments • 711,000+ square feet of office space • 620,000+ square feet of retail. • Latest development (351 lots) was sold to Toll Brothers in the fall of 2016.
EB-5 Equity Development Partners (www.EB5-Equity.com) is a commercial real estate development and asset management firm that specializes in structuring and managing institutional-quality, high-return, risk-adjusted equity investments, exclusively for EB-5 investors. EB5EDP serves as the General Partner of each EB-5 project’s EB-5 equity fund and also serves on each project’s development team. EB5EDP’s primary duty as a member of the development team is to ensure the project is executed according to the EB-5 Matter of Ho business plan in order to ensure the seamless delivery of all EB-5 investor visas and timely return of the original capital investment with attractive profits.
Bobby Laughlin - Founder and CEO Bobby Laughlin started his professional career in the Washington, D.C. area at Morgan Stanley, where he managed the wealth of high net-worth individuals with an emphasis on risk mitigation, and was part of a team that managed over $500 million in assets. Mr. Laughlin founded Playa Vista Equities, an investment holding
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 8
company that invests in private and publicly-traded companies. PVE also provides private investment management services to individuals and institutions. Additionally, PVE owns and operates a USCIS-approved EB-5 Regional Center called Playa Vista Regional Center. Mr. Laughlin founded EB-5 Equity Development Partners after recognizing a significant lack of institutional-quality investment offerings for EB-5 investors. By focusing on reducing risk, maximizing returns, and delivering transparency to EB-5 investors at every stage of the process, EB-5 Equity Development Partners delivers a unique blend of competitive advantages that is revolutionizing the EB-5 investment landscape. Mr. Laughlin has been featured in a CNBC documentary for his investment success that was released in 90 countries and has been a speaker at various universities in Southern California as an expert in EB-5, finance and capital markets. Mr. Laughlin holds a Bachelor of Science in Business Management from Pepperdine University. Mr. Laughlin holds both a Series 7 and Series 66 license with the Financial Industry Regulatory Authority, Inc. He is married and lives in Playa Vista, California.
Service Providers
West + Creek (www.wcbuild.com) is a construction management company and general contracting firm located in California. West + Creek provides industry leading services in the fields of construction, architecture, and construction management. This experience allows them to comprehend and develop each project holistically, seeing it simultaneously from the perspective of the Owner, the Architect, and the Contractor. They continue to be committed to their customers and produce on time, on budget projects all over California. They specialize in everything from Multi Family, Student Housing and Large Commercial building projects.
Peak Campus (www.PeakCampus.com) is a fully integrated student housing real estate management company providing best-in-class property management, development and consulting services. With over 52,000 student housing beds, 96 properties, and $3 Billion currently under management, in over 65 college markets, Peak is currently the country’s second largest privately-owned, student housing company. Peak Campus serves multiple University of Califorina assets, both on and off-campus.
Quad Knopft (www.QKInc.com) has been a leading provider of engineering design, planning, construction management and environmental permitting services in California for the last 40 years. QK has worked with public and private sector clients to develop California’s infrastructure. They have successfully managed projects across industries, including energy production, government, education, land development, as well as water and local services.
Hochhauser Blatter Architecture and Planning (www.HBArchitects.com) is a multi-disciplinary architecture and planning firm founded in 1990. HB has extensive experience in the areas of land-planning, pre- development analysis, land-use entitlement work, architectural design and project management. HB has expanded its expertise into the diverse and growing field of privately developed student housing. Completed and current planning and design opportunities include mixed use urban infill projects in communities adjacent to established University campuses. Projects include ICON at the University of California—Santa Barbara.
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 9
Location Summary – City of Merced
Merced is a city in, and the county seat of Merced County in the San Joaquin Valley of Central California. As of 2017, the city has a population of 84,464 and greater Merced County has a population of 272,673. Over the past ten years, the annualized growth rate is about 3.4%. Merced’s population has grown faster than the state average since 1980.
Merced, known as the “Gateway to Yosemite,” is less than two hours by automobile from Yosemite National Park to the east and Monterey Bay and the Pacific Ocean, to the west. The community is served by Amtrak, a major airline through Merced Regional Airport, and three bus lines. It is approximately 110 miles from Sacramento, 130 miles from San Francisco, 45 miles from Fresno, and 270 miles from Los Angeles.
The economy of Merced has traditionally relied upon the agriculture industry. Over the past twenty years, more diversified industry has entered the area, including printing, fiberglass boat building, warehousing and distribution, and packaging.
The City of Merced is undergoing a wave of new development. Projects ranging from a boutique hotel (El Capitan Hotel – 100 rooms, 2019 delivery), The Merced Gateway Development (77 acres, 10 restaurants, shopping center) and a high- speed rail station. New projects total over $350 Million. Click here for more info on Development in Merced.
Top Employers in Merced, CA
COMPANY EMPLOYMENT
UC Merced 1,450 Mercy Medical Center 1,100 Merced College 730 Quad Graphics Merced 611 Fuentes Farms AG Inc. 500 Merced County Human Services 500 City of Merced 434 County of Merced 361 Costco 142 300 Merced North Campus 300 Project Development Corp 250
POPULATION
300,000
250,000
200,000
150,000
100,000
50,000
- 1970 1980 1990 2000 2010 2015 2016 2017
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 10
Demographic Summary
Source: US Census & Citydata.com (Click here for access the US Census overview of this market)
Population & Economics Merced County California Households Merced County California
Population - 2017 Estimate 272,673 39,536,653 Housing Units 84,406 14,060,525 Population - 2010 255,798 37,254,518 Owner-Occupied 52.2% 54.1% Population, Percent Change 2010-2016 6.6% 6.1% Renter Occupied 47.8% 45.9% Persons under 5 years 7.9% 6.3% Median Household Income $44,397 $63,783 Persons under 18 years 29.9% 23.2% Median Gross Rent, 2012-2016 $882 $1,297 Retail Sales Per Capita (2007) $7,470 $12,665 Percentage Below Poverty Level 20.30% 14.30% Accommodation and Food Service Sales $232,910 $90,830,372 Persons per Household 3.31 2.95
Land Area in Square Miles 1934.97 155,779.22 Persons per Square Mile (2010) 132.2 239.1
High School Graduate or Higher 68.6% 82.1%
$171,800 $409,300
2012-2016 Average Home Value Merced County California Geographic Facts Merced County California
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 11
University Summary - UC Merced
The University of California – Merced “UC Merced” is the 10th campus in the University of California system. Planning began in 1998 with groundbreaking in 2002 and first classes commencing in 2005.
• Student enrollment has grown from 1,000 to 7,967 undergraduate and graduate students participating in 21 major, 21 minor and 11 graduate programs. Applications for the 2017/18 school year amounted to 26,964.
• The University’s long-range plan anticipates 10,000 students and 2,200 staff by 2020.
• UC Merced is ranked by the US News at 78th among U.S. public universities and 154th among all U.S. universities.
• 25,000 students and 6,500 staff are expected by 2030 making the campus similar in size to UC Santa Barbara (23,000 students) and UC Riverside (21,600 students).
• Consisting of 7,000 acres, the UCD Merced campus lies approximately seven miles from downtown Merced.
• The initial campus sits on 1,000 acres of former farmland and is bordered by Lake Yosemite and wetlands
• Long-term plans call for a southern expansion of the campus along Lake Boulevard and eventually encompassing an additional 9000 acres.
APPLICATIONS 30,000
25,000
20,000
15,000
10,000
5,000
-
2012 2013 2014 2015 2016 2017 2018
ENROLLMENT 12,000
10,000
8,000
6,000
4,000
2,000
-
2012 2013 2014 2015 2016 2017 2020
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 12
University Summary – 2020 Project
“The 2020 Project will provide a comprehensive set of new facilities to address existing student life needs and accommodate long-term growth”
Construction of Merced 2020 began fall of 2016. Upon completion, the project will have delivered 1.2 million gross square feet of classroom, research, student life, housing and faculty office space between fall 2018 and fall 2020.
Objectives of the UC Merced 2020 Project • Support UC Merced’s sustainability goals. • Create built-in flexibility and adaptability to
accommodate future needs • Implement a project plan that expands capacity
necessary for enrollment growth
Project Timeline of the UC Merced 2020 Project
First Delivery – Fall of 2018
• Dining Center (600-seat multipurpose) • Undergraduate Housing (700 beds) • Classrooms • Parking (940 spaces)
Second Delivery – Fall of 2019 • Wet & Computational Laboratory • Competition Field • Faculty Offices
Third Delivery – Fall of 2020 • Research Greenhouse • Enrollment Center • Wellness Center • Undergraduate Housing (980 beds) • Conference Center • Competition Swimming Pool
“UC Merced kicks off
historic $1.3 billion expansion”
October 2016 – Streetinsider.com
“UC Merced 2020 campus expansion project moves forward, some buildings
set to open as early as next summer”
November 2017 – ABC 30 News
“UC Merced moves forward with major campus expansion”
June 2016 – LA Times
“UC Merced to nearly double its size by 2020”
October 2016 – Streetinsider.com
“Project 2020 officially begins”
October 2016 – Merced Sun Star
“Board of Regents approves UC Merced
expansion”
November 2016 – UofC.edu
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 13
Map of Merced
As of May 2018, construction is well underway and progressing as planned. Three of the thirteen buildings are on track to open by this coming summer.
Merced College is a growing community college that is located 2 miles from Merced Station. Current enrollment at Merced College is 11,552 students. According to industry trends, we anticipate 20% of interested occupants to be enrolled at Merced College.
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 14
City of Merced - Zoning
Zone 1:
• No current city services. • No capacity for sewer. • Currently owned by various home
and land owners. • No development currently possible.
Zone 2:
• Rural residential zoning. • Located in County of Merced. • No city services. • Master plan is to add sewer capacity
over the next 8 to 10 years
Zone 3:
• Area is zoned for rural and residential parks.
• No city services. • No zoning Change.
Summary: When the Merced Station project was started, the number one concern was distance to the school and being “leap frogged.” We are no longer concerned of this given the above zoning descriptions and frequent reassurances from the city of no activity.
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 15
SECTION II – DEVELOPMENT & CONSTRUCTION SUMMARY
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 16
General Site & Building Information
General Information Building Information
Address: 2980 E. Yosemite Ave., Merced, CA Total Units: 270 Cross Streets: SW Corner of E. Yosemite Ave. & Lake Rd. Total Beds: 885 County: Merced Building Size (Ft ):2 431,440 Expected Occupancy: 95.0% Leasable Ft2.: 335,355 Tenant Base: Student Foundation: Trenched Poured Concrete Footings & Slab
Parcel Number: 008-010-071 Exterior: Cement Board Siding
Zoning: PD-76, Planned Development Style: Garden-Style, Low-Rise
Site Acreage: 17.25 Number of Buildings: 15
Parking: 148 Covered, 479 Open Number of Stories: 3.0
Parking Retail: 38 Standard, 2 Accessible, 1 EV Roof: Thermoplastic Single Ply Membrane
Laundry Facilities: In-Unit Patio/Balconies: Ground Floor Patios & Balconies (8ft. Deep)
Amenities Heating: Electric-Forced Air
Dishwashers: Yes Cooling: Central Air
On-Site Office: Yes Water / Sewer: Landlord-Paid with surcharge
Clubhouse: Yes Provider: City Water
Swimming Pool: Yes Electricity: Landlord-Paid with surcharge
Fitness Center Yes Provider: Merced Irrigation District
Included Cable & Internet: Yes Natural Gas: Landlord-Paid
Expected Completion Year: 2021 Provider: PG&E
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 17
Site Status and EB-5 Timeline
Site Status and EB-5 Timeline
Land Purchased: COMPLETED
Entitlements Secured: COMPLETED
Construction Financing Secured: COMPLETED
Grading Permits Pulled: COMPLETED
Horizontal Site Work Begins: COMPLETED
EB-5 Equity Fund Begins Allocations: COMPLETED
Vertical Site Work Begins: COMPLETED
Construction Completed: July 2021
Grand Opening: September 2021
Asset Refinanced: June 2023
Initial Investment Returned to EB-5 Fund June 2023
Sale of Project: December 2023
Cash from Sale Paid to EB-5 Fund: January 2024
EB-5 Fund Closed and Capital Disbursed to EB-5 Limited Partners and/or Redeployed: February 2024 - 2026
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 18
Community Site Plan
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 19
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 20
Building Renderings
Aerial View from North-East
Aerial View from South-West
Aerial View from North-West
Plaza View
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 21
Building Renderings - Continued
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 22
Construction Photos – May 2020
CLICK HERE FOR LIVE VIDEO
FEED
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 23
Proposed Unit Mix
DESCRIPTION
STUDENTS
VOLUME SQ. FT. / UNIT
TOTAL SQ. FT.
UNITS BEDS
2 Bedroom 2 Bath End Unit 2 90 180 909 81,810
2 Bedroom 2 Bath Central Unit Single 2 bedroom 2 Bath Central Unit Double
1 2
90 90
90 180
546 676
49,140 60,840
2 Bedroom Middle Unit Total 3 90 270 1,222 109,980
3 Bedroom Central Unit 3 15 45 1,279 19,185
4 bedroom Central Unit 4 30 120 1,553 46,590
4 bedroom End Unit Single 1 45 45 388 17,460 4 bedroom End Unit Single 1 45 45 388 17,460 4 Bedroom End Unit Large Room 2 45 90 474 21,330 4 Bedroom End Unit Large Room 2 45 90 474 21,330 4 Bedroom End Unit Total 6 45 270 1,724 77,580
Residential Totals 270 885 335,145
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 24
SECTION III – EB-5 and FINANCIAL INFORMATION
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 25
Projected Post-Construction Value
2022 2023 2024 2025 2026 INCOME 5% 5% 3% 3% Gross Rent Potential: 9,579,900 10,046,055 10,548,358 10,864,808 11,190,753 Miscellaneous & Other Income: 579,353 596,980 626,829 645,634 665,003 Vacancy & Bad Debt: (507,963) (532,152) (558,759) (575,522) (592,788) EFFECTIVE GROSS INC.: 9,651,290 10,110,883 10,616,427 10,934,920 11,262,968
EXPENSES: 3% 3% 3% 3% Administrative/Operating: 1,356,786 1,405,039 1,447,191 1,490,606 1,535,325 Maintenance & Turnover: 244,618 258,980 266,749 274,752 282,994 Utilities: 809,222 829,633 854,522 880,158 906,562 Fixed: 1,176,556 1,197,729 1,233,661 1,270,671 1,308,791 Total Expense: 3,587,182 3,691,381 3,802,123 3,916,186 4,033,672
NET OPERATING INC. 6,064,108 $ 6,419,502 $ 6,814,305 $ 7,018,734 $ 7,229,296
VALUATION @ 5.75% $ 105,462,751 $ 111,643,511 $ 118,509,645 $ 122,064,935 $ 125,726,883 less Debt and Capital Contributions $ (79,914,595) $ (79,914,595) $ (79,914,595) $ (79,914,595) $ (79,914,595)
PROFIT $ 25,548,156 $ 31,728,916 $ 38,595,050 $ 42,150,340 $ 45,812,288
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 26
Capital Stack and EB-5 Investor ROI Breakdown
Capital Stack (In Order of Seniority)
Total Amount
** Return-on-Investment (Annually)
Risk Level
Total EB-5 Investors
Remaining EB-5 Spots
** Senior Loan $47,500,000 9.5% Low Not Applicable
Not Applicable
Redeemable Preferred EB-5 Equity $9,000,000 5% Low 10 4
EB-5 Preferred Equity $11,400,000 12% - 15% Moderate 22 0
Developer Equity $12,000,000 15%+ High Not Applicable
Not Applicable
Total $79,900,000
** Please Note: The current senior loan is provided by Mosaic Real Estate Investors, which is for up to $68,500,000. The Developer does not intend to use more than $47,500,000. The loan has an annual interest rate of ~9.5% which floats against LIBOR. Completing the $9,000,000 Redeemable Preferred Equity raise will allow Merced Station to refinance the senior construction loan to an interest rate of approximately 4%. ** Please Note: The return-on-investment for the Developer Equity and the EB-5 Preferred Equity are projected and include a combination of profit-sharing, as well as preferred returns. The Redeemable Preferred EB-5 Equity has a 5% fixed rate of return and is distributed quarterly.
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 27
EB-5 Petition Fees, Timing, and Subscription Total
Frequently Asked Question
• Is there any possibility to waive or reduce the $65,000 Administrative Fee? o Yes, if you invest on or before
July 1st, 2020, we will waive the full Administrative Fee.
o If you invest by August of 2020, we will reduce the Administrative Fees to $35,000.
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 28
SECTION IV – MARKET COMPARABLES
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 29
Rent Comparables
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 30
Rent Comparables – Summary & Analysis
Two Bedrooms: Size $/Unit $/Bed $ / ²tF. Size $/Unit $/Bed $ / ².Ft
Low:
Average:
High:
Three Bedrooms: Size $/Unit $/Bed $ / .²Ft Size $/Unit $/Bed $ / Ft.²
Low: 1,355 $2,790 $930 $2.06
Average: 1,355 $2,790 $930 $2.06
High: 1,355 $2,790 $930 $2.06
Four Bedrooms: Size $/Unit $/Bed $ / ²Ft.
Size $/Unit $/Bed $ / t.²F
Low:
Average:
High:
Six Bedrooms: Size $/Unit $/Bed $ / .Ft² Size $/Unit $/Bed $ / .t²F
Low:
Average:
High:
Please note due to a lack of 6-bedroom comparables we have utilized the 4-bedroom price per bed and
price per square foot to compare against the 6-bedroom units at Merced Station.
Comparables
Subject
855 $950 $475 $0.88
997 $1,448 $724 $1.49
1,122 $2,436 $1,218 $2.59
1,370 $2,515 $838 $1.84
1,391 $2,515 $838 $1.81
1,411 $2,515 $838 $1.78
Subject vs. Market - Above/Below
Size $/Unit $/Bed $ / Ft.²
515 $1,565 $363 $0.96
394 $1,067 $114 $0.31
289 $79 $380 $0.81
Size $/Unit $/Bed $ / F².t
155 $1,595 $532 $1.08
128 $984 $328 $0.58
92 $165 $55 $0.13
Size
$/Unit
$/Bed
$ / F.t²
306 $1,080 $270 $0.34
218 $438 $109 $0.01
141 $285 $71 $0.39
Size
$/Unit
$/Bed
$ / F.t²
n/a n/a $123 $0.60
n/a n/a $37 $0.23
n/a n/a $218 $0.18
1,200 $1,195 $398 $0.98
1,227 $1,806 $602 $1.48
1,263 $2,625 $875 $2.19
1,348 $2,420 $605 $1.78
1,436 $3,062 $766 $2.13
1,513 $3,785 $946 $2.51
1,654 $3,500 $875 $2.12
1,654 $3,500 $875 $2.12
1,654 $3,500 $875 $2.12
1,348 $2,420 $605 $1.78
1,436 $3,062 $766 $2.13
1,513 $3,785 $946 $2.51
1,840 $4,370 $728 $2.38
1,859 $4,370 $728 $2.35
1,877 $4,370 $728 $2.33
Merced Station | EB-5 Contact: Bobby Laughlin | [email protected] WhatsApp & Cell: (301) 467-5958 31
Rent Comparables – Map
Our rental survey takes into account conventional properties located within Merced and comparable properties located adjacent to California Universities. Please note, all of the conventional Merced
properties utilized in this comparison are nearly 7 miles from UC Merced.
Merced Station | EB-5 Contact: 31
The sales comparables ut i ized were taken
o m the
r uary Appraisal
n
also include th e Appraisers
c ommended
e ts. Please
k Here for the details of these
Sales Comparables
Regents on University Units Beds Purchase Price Per Bed Adjustment Adjusted $/Bed Cap Rate Date Closed
1949 E. University Dr.,
Tempe, AZ
225 640 $53,325,000 $83,320 21.68% $101,384 5.8% Mar-17
Map Reference: 1
BLVD63 Units Beds Purchase Price Per Bed Adjustment Adjusted $/Bed Cap Rate Date Closed
6345 El Cajon Blvd.,
San Diego, CA
332 1,379 $156,000,000 $113,125 -6.72% $105,523 4.12% Nov-16
Map Reference: 2
University House Units Beds Purchase Price Per Bed Adjustment Adjusted $/Bed Cap Rate Date Closed
555 N. Commonwealth
Fullerton, CA
Ave., 350 1,189 $165,000,000 $138,772 -19.00% $112,405 5.50% Jun-16
Map Reference: 3
University Village Units Beds Purchase Price Per Bed Adjustment Adjusted $/Bed Cap Rate Date Closed
625 Cantrill Dr.
Davis, CA
132 504 $40,500,000 $80,357 22.72% $98,614 5.52% Sep-14
Map Reference: 4
The Element Units Beds Purchase Price Per Bed Adjustment Adjusted $/Bed Cap Rate Date Closed
6600 4th Avenue
Sacramento, CA
288 792 $59,000,000 $74,495 21.00% $90,139 6.17% Dec-15
Map Reference: 5
Sold Low: 132 504 $40,500,000 $74,495 -19% $90,139 4.12% Sep-14
Sold High: 350 1379 $165,000,000 $138,772 23% $112,405 6.17% Mar-17
Sold Average: 265 901 $94,765,000 $98,014 8% $101,613 5.42% Mar-16
Merced Station | EB-5 Contact: 32
Sales Comparables – Map
As previously indicated the Sales Comparables provided were taken from the CBRE 2018 Appraisal and include the Appraisers adjustments.