Project Financials
Project Costs
Land Acquisition
$150,000
Soft Costs
$19,250
Land Improvements
$321,260
Total Costs
$490,510
Exit Assumptions
Price Per Lot ($14.3k / acre)
$143,000
Total Sale Revenue
$1,430,000
Less: Commissions (3%)
$42,900
Net Revenue
$1,387,100
Promote Structure
The LP preferred return is 150% or 1.5x of their invested principal. The GP does not receive any cash flows until that threshold is hit. After that threshold is hit, 100% of profits will go to the GP.
Preferred Return
1.5x MOIC
Split
100% GP
Hurdle
Return of Capital + Pref