The Forest Gate Development

Property Info:

The Forest Gate Condominium conversion project is located at 431, 435, 441 Vine Street Atlanta, GA 3031. The vine street area is an up and coming area with continuous, ongoing improvements developing all around. The Forest Gate Condominiums are currently 3-separated Apartment complexes located adjacent to each other. Each unit consists of 12 separate units that will be converted into 36 three-story luxury condominiums. Forest Gate Condominiums will is located minutes from: The Georgia Dome and The New Georgia Aquarium. Recently, the Gate Way Apartments, were developed adjacent our proposed acquisition and it is currently valued at 65 million dollars. Occupancy acheived very quickly.

Property Status: Ready To Convert and Pre Sell

Total Units: 36 Units

Acquisition Price: $950,000

Opportunity: Acquire, and then move to presales and conversion ASAP.

Project Overview includes:

· Principle has experienced developer ready to begin the development.
· If lender/investor requires presale deposits to leverage the conversion costs, Principle has real estate professionals readied to market and pre-sell the units. Principle projects it will take 30-90 days to sell 100% of all the units. If acquisition lender/investor opts not to provide conversion capital, Principle has lenders lined up in order to provide the mezzanine funding needed to fully convert the Forest Gate Condominiums.

· Principle projects the entire development to be complete within 6 months of acquisition.

Projected Pro-Forma: Average area rates for similar units have ranged from $150,000 to $175,000 dollars.

A) Projected Sales *Based on a combined, conservative average sales price of $160,000.

36 Units: $5,940,000
Gross Total Sales: +5,940,000

Projected Costs

Acquisition: $950,000 includes

Construction: $756,000*

Acquisition Interest/Fee's: $300,000**

Total Project Costs: - $2,006,000**

*Principle is projecting the conversion cost to be $21,000 per unit
** Expected Lender/Investor fee's, Broker Fee's Where Applicable
*** Or $55,000 per unit total

C) Projected Balance

Sales: +$5,940,000
Costs: - $2,006,000

Net Total: +$3,934,000

NEED TO CLOSE IN 30 DAYS. PRINCIPLES FICO's 660+. Were shooting for a program with an interest reserve component built in.

How much equity at acquisition?

How much equity to be provided during conversion? “deferred equity”

How much are the rental rates for the units now?

You said experienced. How many conversions? How many units in each conversion on average? In the same area? In the same price range?

What is the occupancy?

What is the NOI of the property now? How much would it be stabilized?

Why do you call a $160M condo a luxury condo? “tone down the marketing, we are not buying the condos”

Do not know about the area, but I know that I will find it difficult to get an appraiser to give me a discounted value upon completion of improvements in the three weeks that the lender will have.

Is the borrower willing to go for an acquisition loan first to give time for the underwriting of the conversion?

PLEASE SEE COMMENTS IN CAPS

THANK YOU FOR TAKNG THE TIME TO POST QUESTIONS

A friend of mine is doing a condo conversion in san Diego his credit was not all that great but he found a loan officer and the guy worked really hard to put the loan together for him. He has also helped me with the condos that I'm building. If loan universe would allow I would give you the number to contact him. I have done a few construction projects but this guy really worked for me. It was worth it.

This message board software allows for private communication between members and many of my users do so on a daily basis. I do not recommend lenders at any time and people should know that no warranties are attached to anything that people get from this site.

You guys want to communicate privately that is ok with me, I just don't like people thinking that they can use the forum as free advertising. Lenders can participate as long as contact information is kept in the signature. Some people {even old timers} have the bad habit of forgetting that and I have to edit posts.