A S X
ASX PROPERTIES l 1921 Kaliste Saloom Road, Ste. 203 l Lafayette, LA 70508 l Office: (337) 534-8165 l Email: email@example.com
P R O P E R T I E S
HOUSTON: ASX is very bullish on several large tracts of undeveloped land adjacent to the Woodlands just north of Houston. The Woodlands is perhaps the nation's premier master planned community. Exxon-Mobil is in the process of moving its world headquarters to a large corporate campus adjacent to The Woodlands which will bring thousands of new high paying jobs to the area. ASX is in the process of assessing several of these large undeveloped tracts, ranging from 60 to 300 acres, for a master planned community. Investors will be able to participate in the entire project, or in different aspects of the project, such as an apartment complex or single family home residential neighborhood development.
NEW MULTIFAMILY CASE STUDY
ASX developed and built a 240 unit class A apartment complex in 2008 in Lafayette, Louisiana. The total development cost was $25,111,489 and it produced an NOI of $2,203,582 for a cap rate of 8.78. Permanent financing was obtained with a 10 year Fannie Mae loan of $21,200,000 amortized over 30 years at an interest rate of 4.5%.
The following is an example of projects we are currently pursuing:
VALUE-ADD PROJECT IN ATLANTA: several multifamily value-add opportunities are currently available in the booming Atlanta market. We concentrate on B-/C properties in B or better neighborhoods with the goal of improving these properties through renovation to A- or B status. By doing so we can increase NOI, and thus the value of the property, by 20-30%. There are several properties available in the $12 million to $35 million range. ASX will obtain 3 year sub 4% bridge loans to cover 80% of the entire acquisition and renovation costs. At that point the property can either be sold or obtain permanent financing depending on the investor's desire.
VALUE-ADD CASE STUDY
ASX Properties purchased a 317 unit student housing project in Baton Rouge, Louisiana, in September 2004 for $27,500/unit. In 2007 we decided to do a down-to-the-studs complete renovation of the property at a cost of $38,500/unit, for a total cost of $66,000/unit. The units were then sold as condos at prices ranging from $88,500 to $175,000/unit.
NEW CONSTRUCTION IN SOUTH LOUISIANA: despite the recent downturn in oil prices, South Louisiana remains a strong multifamily market, especially in the Baton Rouge and Lafayette MSAs. We currently have Camellia Gardens, a 240 unit luxury elevator serviced four story apartment complex, ready to break ground in Lafayette. The total development budget is $28,300,000 and the projected NOI is $2,732,637. This results in a 9.6 cap rate for a brand new, Class A apartment complex in an A+ location in a growing city with a diversified economy and very strong multifamily market. Construction financing with 5 year mini-perm extension has already been obtained.