Asking price is 3.5 Million. A competitive offer would be 250k deposit, 30 days due diligence, 60 days to close.
Estimated ROI
2 Million for a low density subdivision, with185 acres of conservation area
Phase 1, Suggested Funding Structures:
Real Estate Joint Venture (JV): I act as the Operator, Investor as the Capitol Provider, potentially work with Farm Credit East for mortgage
Real Estate Private Equity Fund I act as the General Partner (GP-Sponsor), Investor or Investors are Limited Partners (LP) Percentages applied as appropriate.
Farm Credit East- Co-op: Offers 80% Loan to Value- variable interest 8.75% with 1.25 shareholder reduction. Exempt from 1% state mortgage tax.
LLC partnership: A single investor holds 90% ownership and I hold 10% to start. I will buy shares as the properties sell until the investor is reimbursed with interest.
LLC with Mortgage: An investor LLC would loan the funds to my LLC with the property as collateral with required interest and terms.
Phase 2, The Land Trust:
The goal is to break up the farms into smaller parcels for resale and to hold portions of the overall subdivision for conservation. The proposed conservation areas and easements would be designated in support of adding value to the subdivision and the community. The hope is to sell most of the conservation area to the State Open Space project, offer it to the Greene County Land Trust or organize the Climax Land Trust.