Property Details
Ground-Up Development 
Asset Profile
Opportunistic

200 S Vine St (2020)

Urbana, IL

Multi-Family Property
Green Street Realty Champaign, IL
Green Street Realty
  • IRR 21.7%
  • Equity Multiple 2.46x
  • Hold Period 5Y
  • Minimum Investment $50K
  • Year 1 Cash on Cash N/R
  • Stabilized Cash on Cash 13.3% in Y2
  • First Distribution Apr 2021
  • Distribution Frequency Quarterly
  • Co-Investment 10%
  • Preferred Return 8%
  • Investor Profit Share 70%
  • Asset Profile Opportunistic
  • Loan-to-Value 80%
  • Current Occupancy 0%

About this Property

Address 200 S. Vine St.
Square Footage 70,957 sq. ft.
# of Units 43
Market Occupancy 95%
Projected Average Rent $729/Bed
Projected Market Rent $718/bed
Total Project Cost $8,055,555
Stabilized Loan to Value 70%

Green Street Realty is excited to bring back this offering for 200 S Vine St. The development was previously launched on RealCrowd a few months ago, but decided to pull the offering due to construction timing and difficulty starting the project in the winter months. The project will now start in Spring of 2020 and will benefit from more favorable construction financing of 80% of cost, as opposed to 75% cost in the previous offering. This change improved helped improve investor returns from the previous offering.

 

Why you are buying the Property?

This is an outstanding ground up development opportunity in Downtown Urbana, Illinois. Green Street Realty was able to enter into a development agreement with the City of Urbana to purchase the city owned land for $1. The fair market property value of the land is one million dollars. As part of the development deal, Green Street Realty was able to negotiate a significant amount of real estate tax rebates over the first five years of the project, with 100% of the taxes rebated in year one. In addition, the project is in the City's Enterprise Zone and is eligible for sales tax abatement on all materials purchased, These incentives help drive down construction costs, save on the operational costs, allowing the project to achieve higher returns than many of the ground up construction deals in the market.

 

What is your investment strategy/business plan for the Property?

The investment strategy for this development is similar to other ground up development deals that Green Street Realty has completed in this market. The goal is to find the best available sites and build at a lower price than our competitors, allowing rents to be more competitive and ultimately getting better occupancy and higher returns. The TIF, Enterprise Zone and real estate tax abatements make achieving goals much easier on this development.

 

What are the first 3 steps you will take to maximize cashflow and property value?

The goal is always complete construction on time and on budget. Finishing a project on time will help with pre-leasing of the property and overall cash flow from day one. Being able to run the property efficiently after construction and reduce operational costs and maintain high occupancy will maximize the value of the development.

 

What are the 3 most important aspects of this investment opportunity for the investors?

An attractive location with little competition for this type of product. Project incentives that improve cash flow. Experienced local ownership and management with an outstanding track record of building and leasing ground up construction projects.

 

Are there any unique aspects to the property, your investment strategy or this Offering that will help create value for investors?

The land was purchased for $1 and the project includes multiple layers of city incentives, including property tax abatements during the first 5 years and no sales tax on materials used for the development.

 

How are risks being mitigated during the hold period?

Green Street Realty plans to begin construction immediately after loan commitment and will deliver buildings on time and on budget and begin pre-leasing in advance of opening. They have had great success pre-leasing units prior to the completion of construction, which has allowed them to get to occupancy quickly and pay investor returns shortly after the buildings are completed.

About this Property

Address 200 S. Vine St.
Square Footage 70,957 sq. ft.
# of Units 43
Market Occupancy 95%
Projected Average Rent $729/Bed
Projected Market Rent $718/bed
Total Project Cost $8,055,555
Stabilized Loan to Value 70%

Green Street Realty is excited to bring back this offering for 200 S Vine St. The development was previously launched on RealCrowd a few months ago, but decided to pull the offering due to construction timing and difficulty starting the project in the winter months. The project will now start in Spring of 2020 and will benefit from more favorable construction financing of 80% of cost, as opposed to 75% cost in the previous offering. This change improved helped improve investor returns from the previous offering.

 

Why you are buying the Property?

This is an outstanding ground up development opportunity in Downtown Urbana, Illinois. Green Street Realty was able to enter into a development agreement with the City of Urbana to purchase the city owned land for $1. The fair market property value of the land is one million dollars. As part of the development deal, Green Street Realty was able to negotiate a significant amount of real estate tax rebates over the first five years of the project, with 100% of the taxes rebated in year one. In addition, the project is in the City's Enterprise Zone and is eligible for sales tax abatement on all materials purchased, These incentives help drive down construction costs, save on the operational costs, allowing the project to achieve higher returns than many of the ground up construction deals in the market.

 

What is your investment strategy/business plan for the Property?

The investment strategy for this development is similar to other ground up development deals that Green Street Realty has completed in this market. The goal is to find the best available sites and build at a lower price than our competitors, allowing rents to be more competitive and ultimately getting better occupancy and higher returns. The TIF, Enterprise Zone and real estate tax abatements make achieving goals much easier on this development.

 

What are the first 3 steps you will take to maximize cashflow and property value?

The goal is always complete construction on time and on budget. Finishing a project on time will help with pre-leasing of the property and overall cash flow from day one. Being able to run the property efficiently after construction and reduce operational costs and maintain high occupancy will maximize the value of the development.

 

What are the 3 most important aspects of this investment opportunity for the investors?

An attractive location with little competition for this type of product. Project incentives that improve cash flow. Experienced local ownership and management with an outstanding track record of building and leasing ground up construction projects.

 

Are there any unique aspects to the property, your investment strategy or this Offering that will help create value for investors?

The land was purchased for $1 and the project includes multiple layers of city incentives, including property tax abatements during the first 5 years and no sales tax on materials used for the development.

 

How are risks being mitigated during the hold period?

Green Street Realty plans to begin construction immediately after loan commitment and will deliver buildings on time and on budget and begin pre-leasing in advance of opening. They have had great success pre-leasing units prior to the completion of construction, which has allowed them to get to occupancy quickly and pay investor returns shortly after the buildings are completed.

Offered By

Green Street Realty

Green Street Realty

Champaign, IL

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Assets Under
Management

Currently
$250MM 100+ assets
Exited
$80MM 50+ assets
Portfolio LTV
68%  
Historical
Realized Returns

Total IRR
24%  
Equity Multiple
N/R  
Annual Cash
18%  
Years Of
Experience

As Principals
15+ years  
In Business
16 years  
Size
45 Staff * Dedicated investor relations
* All information is reported by Green Street Realty as of 7/16/2019.
Assets Under
Management

Currently
$250MM 100+ assets
Exited
$80MM 50+ assets
Portfolio LTV
68%  
Historical
Returns

Total IRR
24%  
Equity Multiple
N/R  
Annual Cash
18%  
Years Of
Experience

As Principals
15+ years  
In Business
16 years  
Size
45 Staff * Dedicated investor relations
* All information is reported by Green Street Realty as of 7/16/2019.

Financials

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Offering Financial

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Location Details

Urbana, IL

The 1.75 acre development site is located in Downtown Urbana, Illinois. The project is located within walking distance to the County and Federal Courthouses and numerous restaurants, bars and shopping options. The property is a very short distance to major hospital employers and the University of Illinois.

Documents

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Offering Agreement Documents

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