The project will be developed in the master-planned community of Hillocks Farm Town Center. Next to INTEGRA VISTAS, a development is planned with 500,000 sq.ft of retail space and 250,000 sq.ft of office space on 190 acres, 60 of which will be an open space. After a three-year process, the rezoning was approved in February 2014 in collaboration with various city related organizations. In consultation with both the city, important elements in the development plan have been added, such as a respectful attitude towards nature and the environment, with plenty of green and space between buildings. The ‘live-work-play’ approach has been chosen, which optimizes the living climate of the community.
Hillocks Farm Town Center is located nearby the intersection of Interstate 27 and Highway 153. This Highway functions as an important retail-corridor in North Chattanooga where 70,000 cars pass daily. With the many existing retail developments along Highway 153, the development of Hillocks Farm Town Center is a logical addition. INTEGRA VISTAS will be perfectly visible to passing cars from its location on top of the hill alongside Highway 153. Future occupants can enjoy a beautiful view of ‘Signal Mountain’. The Chattanooga city center and employment centers, including Amazon and Volkswagen, are easily accessible via multiple roads.
With is location in the master-planned community Hillocks Farm Town Center and the great visibility, INTEGRA VISTAS can distinguish itself from its competitors.
Key data
Project name: Integra Vistas (FULLY FUNDED)
Location: Hillocks Farm Towncenter, Chattanooga MSA, Tennessee
Initiator/ Local partner: REALIANCE USA B.V./ Integra Land Company (ILC)
Category: Development, construction, lease-up and sale of 280 apartments
Expected investment term: 36 months
Exit strategy: Sell to an end investor
Participation: Minimum of US$ 125,000
Structure: Integra Vistas Capital LP invests in a Project LP (project entity)
Equity Dutch investors: US$ 1,600,000
Equity American investors: US$ 5,000,000
Number of participations in Integra Vistas Capital LP: 64 participations of US$ 25,000
Possibility to increase equity up to US$ 2,700,000 and a partly placement in Germany
Projected gross capital growth: 69% after 36 months
Projected gross return (ROI): 26.2% per year
Unique selling points
Strong local economy with a growing apartment demand.
Chattanooga performs above average in the US and has a friendly business environment
(e.g. Volkswagen and Amazon).
Project has a great visibility in a ‘master-planned community’, well located towards employment centers and downtown Chattanooga.
Developer has a very good experience with two comparable projects in Chattanooga with the same (financial) partners, among others the bank and the contractor.
Construction costs are limited with a GMAX-contract including a ‘performance bond’ and a ‘cost-overrun guarantee’ by ILC.
Development yield is over 7.5% p.a. (net operating income/ total
investment).
Distributions possible from second year with a high cash-on-cash return in the year of stabilization (year 3) above 16%.
American investors invest between 66% and 80% of the required equity.