VENANGO KINGSTON INVESTMENTS, LLC
Test the Waters

Target: $1,000,000

Investors: 0

Raised: 0%

Days To Go: N/A

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

Offering at a Glance:

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

Business Model
$211 per SF Sales Price:  This includes all Sales expenses, drawing down from $2202 per SF
$168 Per SF Cost:  Includes all costs (land acquisitions, hard/soft cost, Etc)
$43 Per SF Gains: The total gain from each sale of a unit from the development


Projected Cost
$815,750 Land Acquisition Costs:  This assumes a $ per SF cost for a toial lot size of 18,871 SF
$4,479,011 Total Construction Costs:  Assumes 1.850 SF per unit with a $166 per SF cost to build 17 units
$5,294,761 Total Project Cost:  Represents the total amount of capital. This includes interest reserve, contingencies & loan fees


Resale Potential
Property purchase will be finalized by October 2021.  The total timeline from construction to selling the last unit will be 27 months.
$6,503,860 Total Resale Profits
$5,294,761 Total Costs
$1,209,909 Total Profits

Overview

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.