The Ferry Street Project
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:||Term:||Raise Amount:||Targeted ROI:||IRR:|
25/75 Waterfall Participation
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.
- Opportunity Zone investment designation
- Surrounded by 5 universities
- The community is on board with the project and has been working with us since the beginning
- The developer knows the area well and currently manages a building around the corner from this site
- The state is providing the city of Easthampton, MA with a $3.5M MassWorks infrastructure grant
Michael Michon, managing director of One Industrial Lofts, LLC, is a career developer with a long history of successful exits and a strong property management track record. Most recently, through his companies and holdings, he redeveloped the historic Mill 180 building in Easthampton, a 117,500 square foot mixed-use building located 350 yards to the south of the 1 Ferry Street Project in Easthampton.
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.
Investor Return Summary
|4% Yearly Preferred Return||$1,320,000|
|Profit on Sale||$3,300,000|
|Total Investor Profit||$4,620,000|
Investor Return Waterfall, Based on Project Performance
|4% preferred return|
7.5% IRR Lookback Tier 75% Equity Partner
|10.0% IRR Lookback Tier 50% Equity Partner||50% GP|
|15.0% IRR Lookback Tier 40% Equity Partner||
|Residual (above 15%.0%) 25% Equity Partner||75% GP|
*The summary is based on the projection of the project making a 11.28% IRR
Easthampton, MA Demographics
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.