Winston-Salem, Forsyth County, North Carolina, USA, Stage 3

 Refinancing
Project listed: 17.06.2020
Winston-Salem,
United States
12%
Annual yield
18%
LTV
Term: 12 months
Mortgage rank:
First
Interest payment schedule:
Monthly
Interest payments
10.08.2020
Paid
10.09.2020
Paid
30.10.2020
Pending

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Descripton

Introduction

Nordstreet takes these measures to guarantee a safe investment

- The loan to value ratio of the project will not exceed the LTV ratio provided in the project description, including in cases when the project will be financed in stages.

- If the required amount of funding is not collected before the start of the project, all investments will be returned to the invested persons. Upon application by the Borrower, the financing may be considered to have been successfully completed with a smaller amount collected, the financing of the project may be divided into several stages and / or the financing period of the project may be extended. In these cases, Nordstreet informs the funders and publishes the information on the completion of the project with a smaller amount, the division of the project funding into several stages or the extension of the project funding term on its website together with other information about the project.

- By investing in a project, financiers acquire claim rights. Nordstreet does not make it possible to transfer these acquired claim rights to other persons on its platform.

- The activities of UAB Nordstreet are controlled by the Bank of Lithuania and included in the Public List of Operators of Concentrated Financing Platforms administered by the Bank of Lithuania.

- The initial loan was financed in 3 stages. Funding is currently being collected to refinance the existing loan and extend it. The developer successfully pays interest 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.

 

About Applying for Applegate SOTEL project funding on the Nordstreet platform:

Loan amount: € 280,000

Loan period: 12 months

Annual investment return on the project: 12%.

LTV (loan-to-value): 18%

Project risk: A

Loan purpose: refinancing and extension of existing loans on the Nordstreet platform

Mortgaged property: a plot of land worth $ 1,660,000 million. You will find more information about the valuation of the property in the attached files (in the Documents section at the bottom of the project description).

There is also a personal guarantee from the manager for loan repayment.

Business loan terms

About Applying for Applegate SOTEL project funding on the Nordstreet platform:

Loan amount: € 280,000 

Annual investment return on the project: 12%.

Interest payment: monthly

Repayment of the invested amount: at the time of repayment of the loan or earlier

LTV (loan-to-value): 18%

Project risk: A

Purpose of the loan: Refinancing of existing loans on the Nordstreet platform and extension of the loan for further development of the Applegate SOTEL Community project.

Mortgaged property: a plot of land worth $ 1,660,000 million. You can find more information about the property valuation in the attached files (in the Documents section at the bottom of the project description). There is also a personal guarantee from the manager for loan repayment.

Loan term: 12 months with the possibility of repayment earlier, but not earlier than after a period of 2 months. If the Borrower repays the Loan amount or a part thereof earlier than 2 months after the due date of 12 months, it undertakes to pay interest to the Lender for a period of 2 months. After a period of 2 months, the Borrower may repay the loan (together with accrued interest) at no additional charge.

Start of interest calculation: interest on the Loan amount is calculated from the date (inclusive) on which the Loan amount is paid to the Borrower's Paysera account or to such other account (or accounts) as indicated by the Borrower in writing to the Operator before disbursement of the Loan amount.

By investing in a project, financiers acquire claim rights. Nordstreet does not make it possible to transfer these acquired claim rights to other persons on its platform.

Applegate SOTEL Community project description

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.

Borrower

BSG ASSETS PLC, WHICH IS A PART OF PI CAPITAL GROUP, is a company with experience in the development of residential projects in Europe and America. Despite the fact that the holding itself was established in 2018. - the company is strongly established in the real estate sector. The history of the company began in 1999. from the company UAB "Progresyvios investicijos", which developed real estate projects in the Baltic States. Later, the company successfully expanded its activities to the Latvian, Ukrainian and Slovak real estate markets and completed more than 40 projects.

Since 2012 moved its operations to the US market and became the main specialization in real estate development for the senior real estate segment.

TEAM MEMBERS

Alexander Soloveicik

Having more than 20 years of experience in the real estate market as the owner and manager of the Lithuanian real estate development company UAB Progresyvios Investicijos, who completed more than 40 residential quarter projects with 2,500 buildings in Lithuania, Latvia, Ukraine and Slovakia. 2012 He came to the U.S. and became the owner and CEO of BSG Assets, LLC, a real estate development company in the U.S., focusing on South and North Carolina. From 2018 He is the owner and CEO of PI Capital Group and BSG Assets.

Joseph C. Posh

Has 30 years of development management experience at Posh Properties. As development manager, he evaluates land, plot, prepares development and construction budgets, prepares pro-forms and activity reports, manages the development process from acquisition to rights, manages the construction process, lease negotiations and execution, contracting.

Mach Schoneveld

Has more than 30 years of experience in hotels, resorts and retirement homes. Since 2001 became CEO and founder of Sotel Enterprises, Inc. Sotel Enterprise is developing and implementing a new senior housing program / product. Mr Schoneveld analyzes the market and demand in that area. He conducts research and detailed analysis of relevant markets as well as production, construction processes, materials analysis.

Minvydas Zykas

Has more than 15 years of international experience in real estate project management, development, repair and construction, as well as business process and marketing management experience. Gained experience in Lithuanian, Latvian, Ukrainian and Slovak real estate markets. Since 2010, a member of the international company SNC Lavalin, a real estate developer in the Baltic States. The focus is on increasing the value of assets through innovation, improvement and efficiency. From 2018 Partner in PI Capital Group, LLC.

Loan protection collateral

Loan collateral:

After the project funds are raised, the property will be pledged in favor of investors with a first-line mortgage. The value of the property is $ 1,660,000 million. (Property valuation uploaded in the "Documents" section)

Personal guarantee of the manager, shareholder.

LTV (Loan to value ratio): 18%

Loan repayment: The loan is planned to be repaid by the end of the project term after the sale of the project, from the company's income or after refinancing the loan.

Current situation 

  • The landowner is WS124 development llc, which is owned by A. Soloveičik;
  • A detailed plan of the land plot has been completed and approved; 
  • Coordinated permits for site infrastructure works; building permits for construction have not yet been issued; 
  • The whole project of the plot infrastructure installation and building construction drawings were made;
  • The final offer for construction works was received;
  • Marketing, sales and operating partnerships have preliminary agreements and are waiting for the project to start.

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
Project originated by:

Documentation

12%
Annual yield
18%
LTV
Term: 12 months
Mortgage rank:
First
Interest payment schedule:
Monthly
Interest payments
10.08.2020
Paid
10.09.2020
Paid
30.10.2020
Pending
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