The residential housing market in Albuquerque, NM has been suffering from a deficit of approximately 10,000 available units. PIC Development, headed by CEO Jeffrey Poston, is currently developing the Gathering Apartment Project which will consist of 75+ rentable units, plus an office. The project is designed to provide affordable housing to blue- and white-collar workers earning hourly wages or salaries over the minimum wage. The maximum number of rentable units will be determined by zoning laws which govern parking requirements. The project is currently in Phase 3 and will soon be inviting investors.
Type: HUD Construction
Construction Loan Amount: ~$13M
Interest Rate: 3.5%
Investor Seed Capital: $750k-$1M
In addition, the NOI is expected to be $724,000 with a conservative cap rate of 5-6%, and an expected ARV of $16M (ARV based on rental income). Cashflow available for distribution to investors will start at $150,000 with a steady increase of at least $200,000 once stabilized.
Mohammad Hossain, Executive Vice President