Punnett Properties Development250 Apartments
850 East 55
th
Street.
NEW YORK, NEW YORK
Confidential Investment Memorandum
Executive Summary
PropertyPUNNETT PROPERTIES
is currently developing 850 East 55
th
Street. The new project will be erected on a corner lot withdimensions of approximately 100’ x 200’. A 350,000 square foot, 22story residential building will be built with open city views frommost apartments. The building will have 250 rentals apartments:100 one bedrooms and 150 two bedrooms. In addition, the buildingwill have full service doorman/concierge, private tenant storage,common landscaped courtyard, and more. Also being developed onthe site is 3 retail stores totaling approximately 52,000 square feet.
Punnett Properties is offering an equity stake in this premium investmentopportunity. A $50,000,000 investment will create a 50% investmentpartner in 850 E 55
th
Street Owners LLC. Holding ownership of subjectproperty in a limited liability company will offer full liability protectionas well as providing advantageous tax benefits. As required by law,10% of the one bedroom units will be reserved for low income tenants.We plan on a 5 year holding period, with an overall post tax IRR of 16.4%. Timeframe*Enter into contract, due diligence, final design Current - December2009 Close on land purchaseNovember 15, 2008Close construction loanDecember 31, 2008Construction Year2009Close Permanent LoanDecember 31, 2010Lease Up Year2010Stabilization
Year, operational years2011 – 2014Property RentedDecember 31,2014* Time frame subject to change due to unforeseen construction circumstances.
Ownership StructureOwning EntitiesEquity Investment% of Equity
850 NYC Developers LLC
$11,522,02810.3%
890 NYC Investors LLC
$100,000,00089.7%
Investor 1$25,000,00022.4%Investor 2$25,000,00022.4%Investor 3$25,000,00022.4%Investor 4$25,000,00022.4%
Ownership Total
$111,522,028
100%
Entity Structure We have selected to hold the ownership of the subject property in alimited liability company, LLC, as they offer excellent liabilityprotection. The tax implications also benefits owners and investorsinvolved.Location, MarketThe building is situated in the popular Midtown East area, one of themost gentrified and up and coming districts of all of New York City.Near all major, transportation, Restaurant Row and Times Square thisproperty’s location is one of the most desirable addresses New YorkCity for first time renters and people looking for a better valueproposition then buying.Other successful rental developments in our neighborhood include the 148 unitClinton West directly across the street at 516 West East 55th Street(fully rented) plus current new luxury rental developments on 46
th
between 10
th
& 11th, 44
th
& 10th and the Orion (rented out) & theAtelier on west 42
nd
street.
of 00
Amortization Schedules for Project 850 East 55th St-2 Domi-1 Final PDF
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| Upload Date: | 12/02/2009 |
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