Sale of Project

The Cottages at West 18th Street

915 West 18th street Houston TX 77008 (before re-plat)

Executive Summary:

The cottages at west 18th street is a 6 townhome development project in the Shady Acres

neighborhood of the Houston Heights. Located just blocks from the Heights Historical District and

some of the best restaurants and attractions in Houston, we are in a prime location for

development and real estate appreciation. Pre-development, Architectural engineering, re-

platting, and water lines have been completed. Two forms for the development have also been

dug out and completed. This project is nearly shovel ready for a developer/investor to bring the

project to completion.

Asking Price: $750,000

Project History

The owner, Tarek & Seham LLC acquired the property in early 2015 and partnered with Archi

Group as the development partner. Archi Group then completed architecture, engineering, design

and predevelopment for the project. Just as the project was entering the development phase the

lead architect suddenly became ill and passed away shortly thereafter. The project was put on

hold while ownership sourced a new partner to resume the role of Archi Group. We sourced HS

Partners as architectural consultants and performed a value engineering exercise with them to

maximize the square footage of the units without changing any footprints of the buildings. After

some time ownership decided it would be best to sell the project to an investor/developer who is

better positioned to bring the project to completion.

All records, drawings, Autocad files, permits, and filings are the property of Tarek & Seham LLC,

and will be made available to the buyer to study and review upon entering into a sales and

purchase agreement. Owners are willing to enter into an option period and open to owner

financing 25-40% of the purchase price.

Financial Summary

Cottages at West 18th Street - Single Family Lot Development

Unlevered Summary /Lot Project Length 18 Months Unlevered IRR 32.45% Unlevered EMx 1.24X Equity Required $1,987,500 $331,250 Net Profit $477,180 $79,530.00 Equity at Absolute Risk $22,500 $3,750

Levered Summary

Levered IRR 68.76% Levered EMx 1.76X Equity Required $525,000 $87,500 Net Profit $433,388 $72,231 A&D Loan $1,506,292 $251,049

Land Purchase Entitlement

Land Purchase Price $750,000 Entitlement Length 3 Months

Earnest Money Amt $7,500 A&E $0

Due Diligence Amt $7,500 Consultant $7,500

Due Diligence Length 1 Months Other Entitle. Exp. $7,500

Construction

Closing Month Month 4 Construction Length 9 Months

Closing Costs $15,000 Construction Cost/Lot $200,000

Acres 0.3 Acres

Entitled Lots 6 Lots

Acquisition/Development Financing

Avg. Interest Rate 5.0%

Loan-to-Cost 75%

Loan w/o Interest $1,462,500

Interest Reserve $43,792

Total A&D Loan $1,506,292

Finished Lot Sales

Absorption Period 6 Months

Finished Lot Value $437,000

Closing Cost % of Value 6.0%

Net Value of Finished Lots $2,464,680

Pictures

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