1. Land Development on Parsons Road in Summerville, SC
Investment Type – Raw Land Purchase for development of Condominiums
Purchase Price - $330,000.00
Entitlement costs - $95,000.00
Year Purchased – 2005
Entitlement Process- Parson Road, LLC with Jeffrey Thomas as sole member had land entitled for the development of 96 townhouse style condominiums.
Sale Price - $1,350,000.00
Sale Date – 2006
Deal Highlight – Parsons Road, LLC purchased approximately 13 acres of land in Summerville, SC for the development of townhome condominiums. Within one year, the property was approved and subsequently flipped to DR Horton for a substantial profit. The Owners then purchased an income producing property in Mount Pleasant, SC utilizing the advantages of a 1031 tax –free exchange.
2. Oak Ridge Estates, Worcester, MA
Deal Highlight – Jonathan Thomas as Managing Member of the ownership LLC purchased approximately 26 acres of land in Worcester, MA for the development of townhome condominiums. Within one year, the infrastructure was installed, the first phase constructed and sold. Project 90% constructed and sold within 36 months of acquisition.
Cash return to investor (Primary Equity) – $1,600,000 (150% per year)
Return to investor secondary equity return – 15% cash on cash
Investor’s Secondary Cash Equity -$400,000
Investor’s Primary Cash Equity- $350,000
Manager’s Cash Equity - $250,000
Cash required - $1,000,000
Aggregate Sale Price - $20,200,000
Entitlements: Property was purchased with entitlements for 84 townhomes in 16 buildings. Manager added value by re-designing proposed units, constructing a quality project in an extremely efficient timeline.
Year Purchased – 2003
Infrastructure and soft costs - $3,200,000
Purchase Price - $2,255,000
Investment Type – Entitled Land Purchased for development of Condominiums
3. Deer Path Estates, Dedham, Massachusetts
Investment Type – Residential Subdivision
Year Purchased - 1998
Land Purchase Price - $1,100,000.00
Development costs - $1,000,000.00
Per lot cost - $161,540.00
Per lot value post infrastructure - $250,000.00
Deal Highlight – Jeff and Jack Thomas held the roles of Owner, Developer and Builder of this luxury subdivision in Dedham, Massachusetts. The project was located less than 10 miles from Boston. The approvals process was cumbersome, lengthy and expensive. Nonetheless, the entire project was completed in three (3) years and highly profitable for the owners.
4. Marshpointe/Ashley Hall Apartments, Charleston, South Carolina
Investment Type – Income producing apartment complex
Purchase Price - $1,450,000.00
Year Purchased – 1998
Cash required - $200,000.00
Average annual cash returns - $30,000.00
Average Pre-tax Cash on Cash returns – 19%
Year Sold – 2006
Sale Price - $3,050,000.00
Partnership Arrangement-
$80,000.00 each from two non managing members. $20,000.00 each from two managing members.
Sale Proceeds - $80,000.00 partner received - $425,000.00
$20,000.00 partner received - $365,000.00
Non-Managing Partner IRR – 24%
Deal Highlight- This well-located property was purchased in a physical distress situation. At the time, the property was 60% occupied with mostly subsidized tenants. The managing partners rehabilitated the property over the course of 6 months with financing built into the original purchase. The managing partners, Jeff and Jack Thomas were able to bring typical occupancy to 90%+ for the entire period of ownership. The property was also refinanced with permanent debt 18 months into ownership.
5. Radcliffe Place, Charleston, SC
Investment type – Condominium Development
Year commenced – 2001
Project description – 75 unit infill condominium development
Cash required - $300,000.00
Investor Cash - $200,000.00
Manager Cash - $100,000.00
Total development cost - $6,750,000.00
Year completed – 2004
Return to investor - $365,000.00
Average annual Cash on Cash return to investor – 35%
IRR to Investor- 36%
Deal Highlight – Radcliffe Place, LLC with Jeffrey Thomas as managing member purchased a 7.2 acre parcel of land in a well located area of Charleston, SC for the development of townhouse condominiums. The manager acted as owner, developer and builder in this deal. The deal was financed with minimum cash required for the size of the project. The project ultimately exceeded initial pro formas.
6. 300 West Coleman Boulevard, Mount Pleasant, SC
Investment Type – Income Producing Office Building
Purchase Price - $2,100,000.00
Cash required -$400,000.00
Year Purchased – 2003
Investor Cash - $100,000.00
Manager Cash - $300,000.00
Average Cash returns - $45,000.00
Average Cash on Cash – 12.5%
Current building value – NOI is $278,000.00 which by conservative estimates would put today’s value at $3,700,000.00.
Deal Highlight – This office building is very well located on a high visibility corner in Mount Pleasant, SC. The property is about 10 minutes from Downtown Charleston and approximately one mile from the base of the recently completed Cooper River Bridge. The Cooper River Bridge is a span along highway 17 and connects Mount Pleasant to Charleston, SC. Currently the building is 100% leased. Historically, the building has always stayed fully occupied.
7. PickeringBuilding, NeedhamMassachusetts
Investment Type – Income Producing Office Building
Purchase Price - $400,000.00
Year Purchased – 1996
Cash Requirement – $60,000
Average annual cash returns – $24,000
Cash on Cash returns – 40%
Deal Highlight – During eleven (11) years of ownership building has averaged 98% occupancy. Property value has appreciated to over $1,000,000.
8. 25 West Main Street, Westborough, MA
Investment Type – Income Producing Office Building
Purchase Price - $685,000
Year Purchased – 1997
Cash requirement - $150,000.00
Average annual Cash returns - $54,000
Cash on cash returns – 36%* (exclusive of buyout explanation below)
Deal highlight – Shortly after purchase, the ownership received a lease buyout payment from Fleet Bank for $40,000.00. The space was subsequently leased to UMASS Medical who has been a tenant for nearly 10 years.
