Venango Kingston Investments, LLC
Test The Waters
Target: $1,000,000
Start Date: September 14, 2021
End Date: November 30, 2021
Minimum Investment: | $2,000 |
Minimum Raise: | $1,000,000 |
Maximum Raise: | $1,400,000 |
Minimum Share/Units/% | 700 shares |
Equity: | Preferred return of 8%, Target return of 18% per year |
Investment Type: | Real Estate Development |
Securities Type: | Membership Interests |
Company: | Venango Kingston Investments LLC |
Regulation: | Test the Waters via EquityDoor, LLC |
Venango Kingston Investments LLC is seeking $1.4 million of LP equity to build a 17-unit townhouse development in the rapidly gentrifying neighborhood of Port Richmond, Philadelphia.
The project calls for the acquisition, entitlement and construction of a 15,000 sq ft parcel on which 17 new 3 story townhouses are to be built. Each will be between 1,800 to 2,500 sq ft with parking for two cars.
Currently, the lot is a vacated auto shop in an otherwise single-family residential neighborhood in an area with the highest residential ownership percentage in Philadelphia.
The Sponsors have had this off-market parcel under contract for two years now at a below market price and are looking to raise capital for the purchase of the land. There is zero environmental risk as Phase I and II noted no risks to developing this parcel. Two years ago the Sponsors estimated an exit price of $380,000 per unit. Given the pandemic and post COVID pricing, we now estimate an exit value of $420,000 per unit.
No more than 3 model homes will be constructed allowing future Owners to touch and feel what their unit would look like reducing capital outlay and generating demand. Offering a suite of options and Buyer customizations will further separate these units from the competition’s spot construction model.
There is a new rail line that has opened up between this location and Center City, making it easier to live in this area and easily commute downtown.
Capital Stack:
The total capitalization of this project is $5.3 million. The equity requirement is $1.4 million. Balance of the capital will come as construction financing.
The Sponsors have invested $200,000 of their personal capital ahead of the investors capital to secure the parcel, execute diligence, achieve entitlements and de-risk the project by getting a clean environmental report.
Investment Summary
The Sponsor is looking to raise no more than $1.4 million as Limited Partner Equity.
The total target return the Limited Partners capital will earn is an annualized return of 18% per year or for a two-year holding period a 36% total return on their capital.
Investor’s capital will earn a minimum investment of an annualized 8% per year via a preferred return.
Investor’s capital and profits will be paid out before Sponsor is allowed to take its profit.
For example:
An investment of $10,000 will earn a minimum of 8% but the targeted return of 18% would yield a return of $1,800 as profit for a 2-year holding period or $900 for a 1-year holding period.
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