1. Pre-Selection Phase
- US monitors land availability for potential development.
- US continuously evaluates market conditions that support investment.
- US evaluates possible sites for selection and possible land offerings.
2. Due Diligence Phase
- US retains professional consultants with specialized knowledge in land development. The US team prepares a viability study and analysis study on the land.
- Additionally the US team further conducts market analysis and pro forma analysis to determine the financial feasibility of the project.
- Once the Due Diligence phase is completed, US will move forward with the purchase.
3. Acquisition Phase
- Once US is certain that they plan to move forward with the purchase of the property they will engage a securities attorney to create the documents required for a syndication. This will include the Private Placement Memorandum (“PPM”), and Subscription Agreement.
- US will assemble a marketing package called an Offering Memorandum (Offering Circular or “OM”) that highlights the current market conditions with respect to the investment opportunity.
- US acquires land through a cash or finance purchase of the property.
4. Syndication Phase
- The closing date is disclosed in the offering documents once this date occurs the funds in escrow are used to complete the purchase of the property and ownership exchanges hands. US will have to work with their property management group as they take over the property and start to implement their business plan.
- USC involves investors in a structured real estate investment through an LP offering.
- External Finders and retail clients are involved in the offering.
- Premium potential returns.
- USC maintains a back end position in every project ensuring investor and corporate alignment.
5. Value Creation Phase
- Based on the plan discussed during the offering stage US will work with our valued business partners and oversee the execution of the business plan to attain the highest value for the property.
- US conducts a detailed zoning analysis with the project team to determine the highest and best use for the property and determine the best process to enhance the property. It then works with the municipality to determine the process and procedures to entitle the property.
- US prepares detailed costs analysis for the project that focus on re-zoning (Conceptual) and on-site and offsite costs for a potential real estate development.
- There is no work required of the passive investors; they will receive periodic updates on the progress of the value creation.
6. Exit Strategy Phase
- Once the business plan is successfully achieved, the US team will assess the market conditions and evaluate potential exit strategies. A good syndication opportunity will have several exit options.
- US exit strategies is for US to develop or sell the property. A sale works similarly as investors will receive back their capital via the proceeds that come from the sale after the current debt and selling costs are paid. After that initial capital is returned investors will receive a split of the proceeds in excess of the initial capital investment based on a percentage split ratio disclosed in the PPM.
- US may also decide to do a Joint Venture with another developer, in order to achieve maximum return.
- US exit is a 5–8-year average.