STRATEGY & FINANCIALS
1 FREMONT
DEVELOPMENT BY ALEX COHEN | COHEN PROPERTIES
SYNDICATION BY TROY GESSEL | AGM REAL ESTATE
1 FREMONT
Cohen Properties, in partnership with AGM Real Estate is presenting an opportunity for sophisticated real estate investors to invest in this ground-up development. Full entitlement is anticipated in Q2 2025. Construction is scheduled for 18 months, with stabilization anticipated in Q2 2027. Upon stabilization and takeout financing, we expect to distribute 30% of the initial investor equity. We anticipate a 6% plus cash-on-cash return, averaged over the first five years of operations. We have three strategic options following lease up and tenant lease seasoning:
Option 1
SHORT-TERM SALE
At Stabilization
Option 2
MIDDLE-TERM SALE
7+ Years
Option 3
LONG-TERM HOLD
Refinance
The
Preferred
Strategy
Our preferred strategy is option 3, a long-term hold. We believe that within 5 – 7 years of stabilization and favorable market conditions, we will be able to finance out most of the remaining owner’s equity.
Financed funds represent a non-taxable capital event and the building will continue to produce income and increase in value. Our base assumption is an average annual rent growth of 3%. ​
Option 3
LONG-TERM HOLD
Refinance
Financials
PROJECT COST
OPERATIONAL INCOME
Gross Potential Rent - Residential (Annual)
$2,734,316.64
Vacancy - Residential
($136,715.83)
Gross Potential Rent - Retail
$203,392.80
Vacancy - Retail
($14,237.50)
Net Potential Rental Income
$2,786,756.11
Other Income
$279,962.11
Effective Gross Income
$3,066,718.22
OPERATIONAL EXPENSES
Total Annual OpEx
$894,991.89
Total Annual OpEx/unit
$7,895.13
OpEx as Percent of Income
29.75%
CONSTRUCTION FINANCING
Construction Loan Amount
$23,500,000.00
Average Rate
8.00%
LTC
57.64%
Equity Required
$17,269,752.65
Equity Rqd | Less Land
$11,519,752.65
Land
$5,750,000.00
Hard Cost
$26,408,797.25
Soft Cost
$5,978,955.40
Financing
$2,632,000.00
Total
$40,769,752.65
PERMANENT FINANCING
Loan Amount
$29,327,715.57
Rate
5.50%
LTV
57.80%
Cashout
$5,827,715.57
STABILIZED UNABATED NOI
$2,171,726.33
Net Savings from Tax Abatement
$173,783.74
STABILIZED ABATED NOI
$2,345,510.07
Perm. Annual Debt Service
($1,998,234.52)
Year 1 Net Cash Flow After Debt Service
$495,945.00
ROI
5-year average cash on cash Return
6.92%
Unabated Yield on Cost
5.69%
Abated Yield on Cost
6.12%
Unlevered Abated Yield on Cost
6.54%
IRR
Sale at Stabilization
19.30%
5 Year Hold
16.30%
10 Year Hold
13.80%
Comparable
Properties
1.
SUBJECT PROPERTY
​
1 FREMONT
4401 Fremont Ave North | 98103
2.
1 FREMONT VILLAGE APARTMENTS
4401 Fremont Ave North | 98103
5.
ROWLOCK
3620 Phinney Ave N | 98103
8.
ORI STONE WAY
3801 N Stone Way| 98103
3.
BOWAND STONE WAY
3801 N Stone Way| 98103
6.
THE CLINE
3665 Stone Way N | 98103
9.
VIBE
3601 Greenwood Ave N | 98103
4.
BROADSTONE VIN
4106 N Stone Way| 98103
7.
THE HAYES
3627 Stone Way N | 98103
10.
WALLY
411 Stone Way N | 98103
STUDIO
1 BED
2/3 BED
COMPARABLE
PROPERTY
YEAR
BUILT
AVG
UNIT SF
ASKING
RENT
AVG
RENT /SF
AVG
UNIT SF
ASKING
RENT
AVG
RENT /SF
AVG
UNIT SF
ASKING
RENT
AVG
RENT /SF
1 FREMONT
2026
FREMONT VILLAGE APTS
2024
BOWMAN STONE WAY
2015
BROADSTONE VIN
2020
ROWLOCK
2022
THE CLINE
2024
THE HAYES
2016
VIBE
2015
WALLY