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The Alto Dallas
Offering short link
Raise Details
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Gross Offering$5,500,000 USD
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Available Units2.06
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Minimum Investment$10,000 USD
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Maximum Investment$5,500,000 USD
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Open DateSep 01,2021
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Closing DateOct 29,2021
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Investment TypePreferred Equity
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Maturity12 months
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Real Estate UseResidential
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Maturity End DateNov 30,2022
Type
| Type | Number of Units | Available Units | Cost per Unit | Gross Offering | Annual Yield | Term |
|---|---|---|---|---|---|---|
| Series A | 21.00 | 2.06 | $100,000.00 USD | $2,100,000.00 USD | 15.00% | 12 months |
| Series B | 9.50 | 1.50 | $100,000.00 USD | $950,000.00 USD | 20.00% | 12 months |
| Series C | 24.50 | 0.50 | $100,000.00 USD | $2,450,000.00 USD | 40.00% | 12 months |
| Totals | 55.00 | 4.06 | $5,500,000.00 USD |
Executive Summary
Overview. An affiliate of Chesterfield Faring Ltd (“CFL”), 3911 North Hall LLC (the “Sponsor”) acquired 3911 North Hall, Dallas, Texas 75239 (the “Property”) from Alto Townhomes on Hall, LLC (the “Owner”) on November 5th,2021. CFL had made a preferred equity investment in August 2019 and took control over the Owner on November 20th, 2021, upon its default of the first mortgage loan. The Property consists of twenty (20) townhomes at one of the best locations in Uptown Dallas The Property is 85% complete. The hard costs to complete is $1.2 million plus $200,000 of contingency reserves (total $1.4 million).
Profitability. The Property will cost $15.0 million (the “Total Costs”) to complete including; i) $10.4 million acquisition costs, ii) $1.4 million in construction costs including $200,000 contingency, plus iii) $3.0 million in closing plus carrying costs. By Year 3, the Property will be worth $20 million for a $5.0 million profit (the “Profit”). First Mortgage Loan. CFL arranged a first mortgage loan of $9.5 million (the “Loan”) at 8.4% interest rate per annum for one (1) year plus extensions. Minimum interest payment on the Loan is six (6) months. CFL arranged a takeout loan upon completion and lease-up (6 months) for $12.0 million. The Total Costs less the Loan equal a requirement for $5.5 million Series A Preferred Equity (“Series A”). The Offering. The Series A pays 15.0% per annum accruing in Year 1 paid within twelve (12) months. It is understood that a $2.5 million portion of the Series A may be paid in six (6) months from the $12.0 million of refinancing proceeds from B1B Bank (Dallas). There is a Series B and Series C which receive 20% (10% preferred) and 40% (8% preferred) respectively of the profits.
Highlights
- Prime Location
- Attractive Profitability
- High Demand
- Tokenization Scheduled
Comments
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