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Raising $1,200,000

Fully Funded


Project Size: $5,800,000

Senior Debt: $4,600,000

Offering Size: $1,200,000

Offering Type: Equity

& Preferred Return

Estimated Term: 120 month

Preferred Return: 8.00%

Total Return: 50% of

profits above 8.00% IRR Hurdle



Investment Summary

We are pleased to provide the opportunity to invest in acquisition of site and ground up construction of Friendly Apartments. Proposed Friendly Apartments are located at the corner of Hillsborough Street and Friendly Drive at the new proposed round-about to be completed by the city of Raleigh in 2016. Strategically located at this infill location next to NC State University, ½ block away from its College of Management, and minutes of walking distance to most of university’s administrative buildings, the project is perfectly positioned for development of luxury student housing. Estimated cost of the project, including all hard costs, FF&E, and soft costs, is $5,800,000. Estimated value of the building upon completion and stabilization is $8,600,000 assuming 5.00% market Capitalization Rate.

Property Summary

The site consists of 0.198 acres or approximately 8,625 SF of vacant land, zoned NX-5-UL allowing for 5 – stories zero-lot-line building. The proposed building consists of approximately 3700 sqft of ground floor retail space that can accommodate variety of retail uses, and 16 one-, two-, and four- bedroom apartments on floors 2-5 including top floor penthouse units. In total the project will feature 49 all-inclusive and fully furnished beds.

DUE Diligence Documents

*all documents have been locked

Corporate Docs
  • Articles of Incorporation

  • Private Placement Memorandum

  • Subscription Agreement

Pre-Purchase Docs
  • Purchase Agreement

  • Title Policy

  • Property Insurance Policy

  • Alta Survey

  • Phase I Report

  • Phase II Report

Market Information
  • Student Housing Absorption Report

  • Apartment Market Studies

  • Demographics Report

  • Consumer Spending Report

  • Daytime Employment Report


Construction Documents
  • Approved Construction Drawings

  • Demolition Permit

  • Building Permit

  • Site Plan

  • Construction Bids/Estimates










Visual and Graphics
  • Elevation Drawings

  • Apartment Floor Plans

  • Retail Floor Plan

  • 3-D model and virtual tours

  • Furniture Plan

  • Aerial Photography

  • Topography Maps

  • Drone Videos



  • Summary

  • Financial Assumptions

  • Capital Structure

  • Unit Mix and Projected Rent Roll

  • Construction Budget

  • Sources and Uses of Funds - Construction Period

  • Sources and Uses of Funds - Annual

  • Estimated Operating Expenses

  • Cash flow Projections – Construction Period

  • Cash flow Projections - Annual

  • Partnership Structure Diagram

  • Profit Sharing Model

  • Joint Venture Returns

  • Permanent Loan Schedule




deal structure

Financial structure of the deal includes a combination of senior construction debt and investor’s equity. Senior construction loan is proposed to be obtained from a local commercial bank for 80% of the total project cost with remaining 20% equity to be contributed by investors subject to this offering. Construction loan is estimated to be for a total term of 10 years with interest only payments during construction period which would convert to 20-year amortization after stabilization. The proposed structure of the deal including specific percentages and rates are more specifically described in the offering summary and private placement memorandum.

about the sponsor

Blue Sky Services Development, LLC, the sponsor of this project, has set up a special purposes entity for this transaction – Friendly Investments, LLC. To learn more about the background of sponsor’s qualifications and its principals, please visit “about us” and “our team” pages of the website.

estimated return

Total project cost is estimated at $5,800,000 with after-completion stabilization value at $8,600,000. Investors are projected to realize an 8.00% preferred return on its equity contribution and its pro-rata share of 50.00% of all remaining profits after operating expenses, senior debt service and preferred return payouts. Total estimated annual Internal Rate of Return for investors is estimated at 14.6%

Construction Progress Update




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