Winston-Salem, Forsyth County, North Carolina 27127, USA
Development loanWhy we are not investing our personal capital in this project:
At this point we do not have any knowledge about North Carolina real estate market, nor any local advisors. When investing in this project, be cautious that the LTV is just 12% it's only on this stage financing. However, Nordstreet informs that the project's total LTV of the project shall not exceed 50%.If the risk factor matches your expectations, this project is a great way to diversify your portfolio with USA market without the need to exchange currency to dollar.
Nordstreet description:
Nordstreet presents first unique Applegate Sotel project and guarantees safe investment:
(I) The ratio of the LTV (loan to value) project will not exceed the LTV ratio in the project description;
(II) If the required financing amount is not collected before the start of the project, all investments will be returned to the investees.
The object of the loan is a successfully financed project during Stage 1 on the Nordstreet platform!
Applegate SOTEL Community is a new-construction "rent-to-buy" pro-active adult neighbourhood specifically designed as a supportive community where services and care can be readily available to people wanting to grow older self-sufficiently, but also stay focused on living well now. Now we are collecting funds for land infrastructure development.
Amount of the loan: 100 000 € (one hundred thousand)
Loan term: 12 months
The annual return on loan investment: 12%.
LTV (loan-to-value): 12%
Object of the loan: land infrastructure development
Loan pledged property: $ 1.660 million worth land. You will find a valuation of the asset in the attachment.
This project, probably, will be funded in several stages, so the final LTV (loan-to-mortgage ratio) will not exceed 50%. The pledge of assets at all stages of financing will be the mortgage of the original project under development.
Interest on the loan is calculated from the end date of the auction and is paid monthly.
The loan is repaid by the end of the project term through the sale of the project, the proceeds of the business or the refinancing of the loan.
Applegate SOTEL Community is a rental type active adult (62+) project, specifically designed as a supportive community where services and care can be readily available to people wanting to grow older self-sufficiently, but also stay focused on living well now.
The community is planned to have 88 units in two 3-story buildings (with possibility to expand project by 36 separate cottage style units). In addition, the two residential buildings will share a clubhouse and each building will have an interior courtyard, designed for community socialisation and interaction purposes. Floorplans are proposed to include modestly sized one and two-bedroom plus den apartments, size from 556 sq.f to 1010 sq.f. Clubhouse will serve as congregation space for the residents and will include a coffee bar, lounge, sport area, and arts and crafts room.
Project location
Located on a 16-acre site southwest of downtown Winston-Salem, Applegate will be a multi -generational residential community. Applegate SOTEL Community is near a range of healthcare services, shopping, churches, The UNC School of the Arts, and other destinations and amenities. There are 11,000+ age/income qualified active adult households within a 5-mile radius of the property. Capturing only 0.76% of the qualified mature households would fill this project.
Market overview
- Senior housing market is one of the most attractive real estate development and investment markets at the moment. Every day more than 10.000 of “Baby boomers” generation people are coming to the market (reaching age of 65 years).
- Investors identified senior housing as the top prospect for both investment and development of residential property types in 2019. Senior housing ranked No. 2 for investment.
- NCREIF prepared total return graph on the right, shows, that Senior segment is one of the most profitable sectors in market.
- Investment in senior housing — sometimes thought of as a “recession-proof” property type — provides diversification for real estate investors with other, more cyclical property holdings.
- Independent living senior segment has the biggest occupancy rate 90.2% comparing with other senior living segments: 85.3% assisting living, 85.9% nursing care. Raleigh market has 92.3% occupancy rate, what makes this market very HOT.
- The top 3 our chosen regions in North Carolina shows big potential for our product. Each of them have at least 2000 potential unit market and it looks safe to go with 8 project, from 80 to 120 units in each of them. The potential number of projects gives us possibility to concentrate our activities in to NC State for next 3 to 5 years period.
PI CAPITAL GROUP LLC is an outcome of a vast experience in developing European residential projects, combined with a detailed observation of US real estate field. Despite of being established in 2018, PI CAPITAL GROUP has a strong background in the real estate industry. Company history started in 1999 with the name of JSC Progresyvios Investicijos (PI) in Lithuania (Baltic country). From that time company successfully expand its activities in to Latvia, Ukraine, Slovakia real estate markets and has completed more than 40 projects with more than 2500 units in total. From 2012 companies’ activities has moved to US market, with its main specialization on senior segment. TEAM MEMBERS Alexander Soloveicik With over 20-years of experience in the real estate market as an Owner and CEO of a Lithuanian real estate development company JSC Progresyvios Investicijos, which completed more than 40 residential projects or 2,500 units across Lithuania, Latvia, Ukraine and Slovakia. In 2012 he came to the US and became the Owner and CEO of BSG Assets, LLC, a real estate development firm in the U.S. with a focus on the South and North Carolinas. As of 2018, he is the Owner and CEO of PI Capital Group, LLC formed to develop residential and independent senior living communities. Joseph C. Posh Has 30-years of development experience as a Development Manager of Posh Properties. As a Development Manager, he evaluates raw land, prepares development and construction budgets, prepares pro-forma and operating statements, manages the development process from acquisition through entitlement, manages the construction process from permits through C.O., performs lease negotiations and executions, provides oversight of contracts and vendors and manages both tenant and financial relationships. Mach Schoneveld Has more than 30-years of experience in the hotel, resort and retirement housing/care industry. From 2001 going CEO and Founder of Sotel Enterprises, Inc. developing and implementing a new senior housing program/ product. The hallmark of Mr. Schoneveld’s efforts has been his response to a need in the field in which he was involved. His objectives include, research and detailed analysis of appropriate markets and the establishment of production systems that will produce the highest quality product at the lowest possible cost. Minvydas Zykas With over 15 years of international experience in real estate project management, development, repairs and constructions also business process and marketing management. International experience with JSC Progresyvios investicijos in Lithuania, Latvia, Ukraine and Slovakia real estate markets. Starting from 2010 team member of international company SNC Lavalin, as property manager for the Baltic countries. Main focus on increasing asset value through innovation, improvements and efficiency. From 2018 partner of PI Capital Group, LLC.