The Ferry Street Project

Min. Invest
$100,000
Target Hold
120 mo
Annualized Returns
14.00%
Progress - 0% Pledged
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The Ferry Street Project Summary

The Ferry Street Project is a historic textile mill complex located at 1 Ferry Street, Easthampton, Massachusetts. Originally developed in the 1800’s for use as a textile mill, it has since been abandoned and is sitting dormant. The site is currently home to six blighted brick masonry structures that total approximately 380,000 square feet. Situated on 7.1 acres in the Lower Mill Pond area in Easth-ampton, the structures command views of Mill Pond, the Mount Tom Mountain Range and a unique canal which runs between the buildings. Left unattended for some time, the buildings are in de-cline and in need of redevelopment. The complex is located in an Opportunity Zone.

Investment Type Equity
25/75 Waterfall Participation
Term 120 Months
Raise Amount $7,700,000
Targeted ROI 14.37%
IRR 11.28%

Property Summary

Building 5 has 66,000 gross square feet with approximately 50,000 of that rentable. The building will be divided into 32 residential units ranging from 800 –1,800 square feet, with an average unit size of 1,100 square feet and 1 commercial unit. The buildout will include a fitness area, juice bar, and function area.

Why Invest?

  1. Opportunity Zone investment designation
  2. Surrounded by 5 universities
  3. The community is on board with the project and has been working with us since the beginning
  4. The developer knows the area well and currently manages a building around the corner from this site
  5. The state is providing the city of Easthampton, MA with a $3.5M MassWorks infrastructure grant

Financial Summary

Building 5 of the Ferry Street property is being purchased.  The purchase price allocated to this property is $200,000.  The total project size for this building is $7.7M with $5.8M of construction and $1.4M of soft costs.  The project will be close to 70% LTV with the equity partners making up the 30%.  There is a tiered waterfall for returns after the 4% yearly preferred dividend.

Financial Sources

Bank Loan $5,500,000
Investor Equity $2,200,000

Financial Uses

Land $200,000
Construction $5,800,000
Soft Costs $1,400,000
Interest Reserve $300,000

Profit Split

Investor Return Summary

4% Yearly Preferred Return  $1,320,000
Profit on Sale  $3,300,000
Total Investor Profit  $4,620,000
Annualized ROI  14.37%
Equity Multiple  3.17x
 
 

Investor Return Waterfall, Based on Project Performance

 

4% preferred return   

7.5% IRR Lookback Tier 75% Equity Partner

25% GP 
10.0% IRR Lookback Tier 50% Equity Partner 50% GP 
15.0% IRR Lookback Tier 40% Equity Partner 

60% GP 

Residual (above 15%.0%) 25% Equity Partner 75% GP

*The summary is based on the projection of the project making a 11.28% IRR

Documentation


Easthampton, MA Demographics

The city of Easthampton, Massachusetts is in Hampshire county about 15-20 minutes north of Springfield, MA.  Easthampton is known for its outdoors community, picturesque landscape, and strong ties into the 5 local universities within a 15 minute drive.  The town has a population of 16,322 residents with an average median income of $61,870.  The median home value for the town is approximately $250,000 with an average rent for a two bedroom unit of $1,900/month.

As the universities in the immediate area continue to expand their student base and continue to sprawl outwards, Easthampton is well positioned to accept the new influx of not only undergraduate students, but graduate students and any university employees who are moving into the area as it is a more affordable option for residents.  

If you are looking for a beautiful place to live in a brand new loft community with some great character, look no farther than Ferry Street.

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Investor Tutorial

CERTAIN INFORMATION REGARDING THIS OFFERING

THESE UNITS ARE BEING OFFERED WITHOUT REGISTRATION UNDER ANY FEDERAL OR STATE SECURITIES LAWS, BUT ARE BEING OFFERED UNDER AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND UNDER COMPARABLE EXEMPTIONS UNDER VARIOUS STATE SECURITIES LAWS. HOWEVER, THE SECURITIES AND EXCHANGE COMMISSION (“COMMISSION”) HAS NOT DETERMINED THAT THESE UNITS ARE EXEMPT FROM REGISTRATION. THESE UNITS HAVE NOT BEEN REVIEWED, APPROVED OR DISAPPROVED BY THE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY, ADEQUACY, COMPLETENESS OR MERITS OF THIS MEMORANDUM, AND ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THIS MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL TO, OR A SOLICITATION OF AN OFFER TO BUY FROM, NOR SHALL ANY OF THE UNITS BE OFFERED OR SOLD TO, ANY PERSON IN ANY JURISDICTION IN WHICH SUCH AN OFFER, SOLICITATION, PURCHASE, OR SALE IS UNLAWFUL OR UNAUTHORIZED UNDER THE SECURITIES LAWS OF SUCH JURISDICTION.

THE STATEMENTS MADE HEREIN ARE MADE AS OF THE DATE ON THE COVER OF THIS OFFERING MEMORANDUM. THIS OFFERING MEMORANDUM CONSTITUTES AN INVITATION TO THE PROSPECTIVE INVESTOR TO SUBMIT AN OFFER TO SUBSCRIBE. NO PERSON MAY PURCHASE THE UNITS OFFERED HEREBY EXCEPT PURSUANT TO AN EXECUTED SUBSCRIPTION AGREEMENT IN THE FORM PRESCRIBED BY THE FUND, AND THEN ONLY FROM A PERSON TO WHOM THE FUND OR ITS DESIGNATED AGENT HAS DELIVERED A COPY OF THIS OFFERING MEMORANDUM.

THESE UNITS ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED BY THE FUND. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THERE IS CURRENTLY NO PUBLIC MARKET FOR THESE UNITS.

IN MAKING A DECISION TO PURCHASE UNITS HEREUNDER, PROSPECTIVE INVESTORS MUST CONDUCT THEIR OWN INDEPENDENT INVESTIGATION OF THE FUND AND THE TERMS OF THIS OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED, AND ARE ENCOURAGED TO CONSULT WITH THEIR ADVISORS AS THEY WILL BE REQUIRED TO REPRESENT THAT THEY ARE ABLE TO BEAR THE ECONOMIC RISK OF THEIR INVESTMENT AND THAT THEY ARE FAMILLIAR WITH AND UNDERSTAND THE FUNDAMENTAL RISKS AND TERMS OF THIS OFFERING.

NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATION WITH RESPECT TO THE OFFERING OF THE UNITS WHICH IS NOT CONTAINED OR REFERENCED HEREIN, AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUND. POTENTIAL INVESTORS MAY, IF THEY SO DESIRE, MAKE INQUIRIES OF THE FUND WITH RESPECT TO THE FUND’S BUSINESS OR ANY OTHER MATTERS SET FORTH HEREIN, AND MAY OBTAIN ANY ADDITIONAL INFORMATION WHICH SUCH PERSON DEEMS TO BE NECESSARY IN ORDER TO VERIFY THE ACCURACY OF THE INFORMATION CONTAINED IN THIS MEMORANDUM (TO THE EXTENT THAT THE FUND POSSESSES SUCH INFORMATION OR CAN ACQUIRE IT WITHOUT UNREASONABLE EFFORT OR EXPENSE).

July 02 2020

Confidential Offering Memorandum: Brahman Holdings

PROSPECTIVE INVESTORS ARE CAUTIONED NOT TO CONSTRUE ANY CONTENTS OF THIS OFFERING MEMORANDUM OR ANY PRIOR OR SUBSEQUENT COMMUNICATIONS, AS CONSTITUTING INVESTMENT, LEGAL OR TAX ADVICE; RATHER THEY SHOULD CONSULT THEIR OWN ADVISORS OR COUNSEL WITH THE CAPACITY TO ADVISE AND PROTECT THEIR INTEREST IN CONNECTION WITH ALL MATTERS CONCERNING THIS OFFERING MEMORANDUM.

THIS OFFERING MEMORANDUM DOES NOT KNOWINGLY CONTAIN ANY UNTRUE STATEMENT OF A MATERIAL FACT OR OMIT A MATERIAL FACT, AND ANY SUCH MISSTATEMENT OR OMISSION IS DONE WITHOUT THE KNOWLEDGE OF THE PREPARERS OF THIS DOCUMENT OR THE FUND. AS SUCH THE FUND BELIEVES THAT THIS OFFERING MEMORANDUM CONTAINS A FAIR SUMMARY OF THE MATERIAL TERMS OF ALL MATTERS, DOCUMENTS AND CIRCUMSTANCES MATERIAL TO THIS OFFERING. WHILE THE DATA AND STATEMENTS CONTAINED HEREIN ARE BASED UPON INFORMATION BELIEVED TO BE RELIABLE, NO WARRANTY CAN BE MADE AS TO THE ACCURACY OF SUCH INFORMATION OR THAT CIRCUMSTANCES HAVE NOT CHANGED SINCE THE DATE SUCH INFORMATION WAS SUPPLIED. THIS MEMORANDUM CONTAINS SUMMARIES OF CERTAIN PROVISIONS OF DOCUMENTS RELATING TO THE BUSINESS OF THE FUND AND THE UNITS OFFERED HEREBY, AS WELL AS SUMMARIES OF VARIOUS PROVISIONS OF RELEVANT STATUTES AND REGULATIONS. SUCH SUMMARIES DO NOT PURPORT TO BE COMPLETE AND ARE QUALIFIED IN THEIR ENTIRETY BY REFERENCE TO THE TEXTS OF THE ORIGINAL DOCUMENTS, STATUTES AND REGULATIONS.