Raising $1,200,000

Fully Funded

OFFERING DETAILS

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

SORRY THIS PROJECT HAS BEEN FULLY FUNDED, PLEASE CLICK HERE TO GET NOTIFIED ABOUT OUR UPCOMING INVESTMENTS OPPORTUNITIES

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

  • Articles of Incorporation

  • Private Placement Memorandum

  • Subscription Agreement

  • Purchase Agreement

  • Title Policy

  • Property Insurance Policy

  • Alta Survey

  • Phase I Report

  • Phase II Report

  • Student Housing Absorption Report

  • Apartment Market Studies

  • Demographics Report

  • Consumer Spending Report

  • Daytime Employment Report

     

  • Approved Construction Drawings

  • Demolition Permit

  • Building Permit

  • Site Plan

  • Construction Bids/Estimates

     

     

     

     

     

     

     

     

     

  • 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

2016 PROGRESS

DECEMBER 2015

NOVEMBER 2015

© 2016 by Blue Sky Services Development, LLC. Proudly created with Lucky Marketing

Important Disclosure: BlueSkyCrowdfunding.com is a website operated by Blue Sky Services Development, LLC, (“Blue Sky”) a principal developer looking to raise money for projects that it is involved in directly or through its subsidiaries and affiliates. All escrow and securities services are outsourced to and provided by a registered broker-dealer and member FINRA / SIPC.    Each offering may involve a special purpose entity that may be controlled in whole or in part by Blue Sky or its principals.  Blue Sky its subsidiaries and affiliates may realize compensation as a result of the equity transaction as well as compensation in the form of construction fees, brokerage fees or other fees associated with a particular transaction.

 

BlueSkyCrowdfunding.com does not make investment recommendations, and no communication through this website or in any other medium should be construed as such.  Investment opportunities posted on this website are private placements of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment.  Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Blue Sky or its subsidiaries or affiliates and MAY lose value.

 

Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website.  Investors must be able to afford the loss of their entire investment.  Any financial projections or returns shown on the website are illustrative examples only, and there can be no assurance that any valuations provided are accurate or in agreement with market or industry valuations. 

 

Any investment information contained herein has been secured from sources Blue Sky Services believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor.  Offers to sell, or the solicitations of offers to buy, any security can only be made through official offering documents that contain important information about risks, fees and expenses.

 

Investors conduct their own due diligence, do not rely on the financial assumptions or estimates displayed on this website, and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity.

 

Blue Sky Services Development, LLC and its affiliates do NOT provide any investment advice or make any investment recommendations to any persons, ever, and no communication through this website or in any other medium should be construed as such.

 

*Past performance is not indicative of future performance