$122.3M Project - Mixed use real estate development - Beacon, NY

[Thomas Rogge]

Investment Info:

Other other investment in Beacon.

Purchase price: $122,300,000

Contributors:
Vincent Ribes

River Creek is a mixed use real estate development project in Beacon, a city located in Dutchess County, New York, United States. The development encompasses residential, commercial, and hospitality components and consists of two parts: Phase 1 comprises 3 buildings and Phase 2 comprises 8 buildings. The development will provide in total 248 residential units, approximately 75,864 sqft (7,048 sqm) of commercial with a boutique 112 key hotel, totalling 548,787 sqft (50,984 sqm) of built-up area.

-Investment Terms-

Type: Secured loan and preferred equity in the general partnership (GP)
Currency: USD
Size: $10,000,000
Interest: 8% p.a. Accrued
Profit Split: 25% of GP net profits after return of capital and interest.
Forecasted IRR : 32.5% annualized.
Forecasted equity multiple: 2.77x
Exit: Q4 2026
Collateral: 1st mortgage*
Use of funds: acquisition of land and certain pre-development expenses.

*First rank mortgage over the underlying project until such time as project finance is secured, at which point the mortgage will be released.