The Gathering

730 Coors Blvd NW  Albuquerque, NM 87105

Min. Invest
$50,000
Target Hold
60 mo
IRR
13.12%
The Gathering More Buildings.jpg

The Gathering New Construction.jpg

Project Summary

COVID-19 has likely forever changed the retail landscape, so the goal of the 730 Coors Redevelopment Project is to convert the 2.52-ac parcel from a used car lot into “The Gathering”, a shared living community featuring 8-12 four-bedroom houses. What previous generations would have called "boarding houses", we’re utilizing the industry-changing “shared-house” Coliving concept that is highly popular among millenials, especially in big cities. We have used this concept successfully at the five-bedroom Turner house for nine years before it even became a nationwide trend. Renters typically sign medium- to long-term leases to rent a private bedroom with a private or shared bath, depending on needs and desired price point. The home’s community spaces (living room, kitchen, yard, garden) are shared among the four residents, according to a well-developed system and flexible house rules. The homes and bedrooms will be fully furnished and will feature high-tech amenities. The target demographic for The Gathering will be active and independent individuals or couples of any age who do not desire to rent a full apartment or house.

Two primary amenities priced into our financial models are the popular adjacent Weck’s restaurant and Dutch Bros coffee shop, both independently owned businesses right next door that were part of Phase 1 and 2 of our redevelopment plan.

Phase 1, Weck's high-profile anchor and very popular breakfast/lunch concept, just opened Dec 2019. We closed the sale of land for Phase 2, Dutch Bros drive-through coffee concept, thereby bracketing the remaining parcel with two popular anchors that are traffic drivers, which increases the value of our land. The final Phase 3 of the redevelopment vision will build out the remaining 2.52-acre parcel into a residential housing community.

Our Exit Strategy is to sell the property immediately after stabilization or refinance and hold for for cash flow for 5-7 years. NOI for 32 units (8 houses) is projected to be $220,320 and NOI for 48 units (12 houses) is 330,480. At a conservative 6% cap rate this yields a completed value of $3.7-5.5MM in one year. Investor IRR is projected to be 13.12%, which includes a 6% preferred interest on capital plus 20% of net profit upon conveyence.

 

Investment Type:

Term:

Raise Amount:

IRR %

Equity

60 months

$950,000

13.12%

Investment Type Equity
Term 60 Months
Raise Amount $950,000
IRR 13.12%

Why Invest?

The sponsor is paying a 6% preferred interest for the duration of the holding period. Interest will accrue until the project begins cash-flowing then will be paid quarterly. Investors will also share 20% of the net profit upon resale for an IRR of 13.12%. The sponsor has three powerful benefits to secure profit for investors: (1) the Poston Collective Framework (see the video below) that is used to start, manage, and disposition all projects (commercial and residential), safeguarding investor capital in the process; (2) almost 30 years of experience with over $30M in projects; (3) and a fully transparent track record on the website.

The 730 Coors redevelopment project has particularly strong upside. We already own the land (it is currently being used as a used car lot) and we’ve increased its value significantly by attracting two high-profile anchor restaurants. Phase 1: Weck’s, a popular breakfast/lunch restaurant opened Dec 2019, and Phase 2: Dutch Bros drive-through coffee concept closed the adjacent land purchase in May 2020. Phase 3 is the construction of this residential community. We’ve folded the cost of the land into the construction cost and fees for a total of $2.75M, compared to the $3.7-5.5M stabilized value. So we have plenty of margin (26-50% of completed value) to assure a profitable outcome for investors.

The corridor along Coors Blvd has been a strong draw for redevelopment over the past few years. Every restaurant and drive-thru along this corridor has undergone a complete renovation or tear-down and rebuild. Our residential community on Coors Blvd is half a mile south of I-40 and half a mile north of Central Avenue, opening up the entire Westside of Albuquerque and Southwest Mesa to our tenants. We have a high school with 1,800 students less than a quarter mile away and as you’ll see under the marketing tab that the area demographics and income are strong.

As with all of the sponsor’s development projects, the two main goals of this project are (1) provide a satisfactory ROI for investors, and (2) fund the nonprofit PIC Charitable Foundation which supports multiple charity missions, including nonmedical cancer treatment recovery and a holistic healing center.

Who is Jeffrey Poston?

Why Invest with Jeffrey Poston?

What is the Poston Collective Framework?

The Gathering

 

Total Capital & Debt Req’d

$2,750,000

Debt Raised to Date

$1,800,000 or 66%

Investor Capital Req’d

$950,000 or 34%

Poston Collective contribution

$217,000 5%

Yr-7 Sales Price

$8.1M at 6% cap rate, 23% expense ratio

Gross Rent

$46,750 per month

Investor Returns

Investors receive 6% preferred interest paid quarterly (accrued until stabilization). Investors will also share in 20% of net profit at resale, yielding a total estimated 2.2x multiple or 13.12% IRR

Financial Sources

Sponsor $200,000
Private Investors $950,000
Commercial Lender $1,800,000

Financial Uses

Refi/Acquisition $1,300,000
Construction Costs $1,200,000
Holding Costs, Overhead, Design Fees $250,000

Documentation


Property Summary


The 730 Coors property consists of 2.52 acres. We plan to build 8-12 SFH (single family homes) of 4BR/4BA each. There will be a road around the west side of the development to allow ingress/egress for Dutch Brothers and Weck's from both bordering roads. All tenants in the housing development will have access to and from both Coors and Fortuna.

The magic of our development plan is our target demographic, primarily Millennials but also active Boomers, who have no need or desire to rent a full house or apartment, especially in these challenging economic times. One of our advisors is a developer in Portland OR who is also building shared-living homes and converting old hotels into modern shared-living apartments. He will share his expertise and his "compatibility software" with us to ensure we match tenant traits in our houses.

Address

Property Type

Units

Buildings

Avg. Unit Size

730 Coors Blvd NW

Albuquerque, NM 87105

Residential SFH

32-48

8-12

2,000sf

 

Tenants will lease a private bedroom and bathroom and will share community space - living room, office, kitchen, outdoor space. Each lease will include utilities, WiFi, and other "smart" home features, such as gated access and secure package delivery for online shopping. The development will include shared outdoor cooking and lounging space and a fenced pet area.

Address Property Type Property Sq. Feet Bedrooms Bathrooms Year Built Units
730 Coors Blvd NW
Albuquerque, NM 87105
Multi Unit Residential 2000.00 4 4 2020 12

Red Hot Westside Development with a Shortage of High-Tech Residential Space

The Southwest Mesa is the hottest development area of Albuquerque because it is the most underserved trade area in town. Retail sf/shopper is a key data point and shows the least retail saturation and the most potential for development. The Southwest Mesa has 9sf of retail per shopper and is half that of Rio Rancho, a quarter of that of the Northeast Heights, and one-seventieth of Uptown. Consider the following demographic points:

  • The intersection of Fortuna and Coors (our site) sees 48,700 cars per day, the second highest in Albuquerque
  • It is a signalized intersection, the holy grail for our two restaurants
  • Great visibility for northbound and southbound traffic
  • Close proximity to West Mesa High School with 1,654 students
  • 101,872 population within a 3-mile radius
  • $58,166 average household income within a 3-mile radius

Now consider that area apartment housing rents for $750 to $1,200 for 1-2BR apartments, and homes rent for around $2,000. This is typical for couples or families. However, there is a whole segment of the working population - active Millennials and Boomers - with no children or grown children, people who are downsizing and don't need to rent a whole apartment or house. At $850/month our rents are slightly below apartment rents, yet the tenants get more amenities, along with high-tech features and security, for their money. There is NO place in this city where such tenants can rent secure high-tech studio or small 1BR apartments for our price that is not in questionable areas.

Also, our construction project will bring about 100 local skilled trade jobs over the six- to ten-month construction period.

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Investor Tutorial

CERTAIN INFORMATION REGARDING THIS OFFERING

THESE UNITS ARE BEING OFFERED WITHOUT REGISTRATION UNDER ANY FEDERAL OR STATE SECURITIES LAWS, BUT ARE BEING OFFERED UNDER AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND UNDER COMPARABLE EXEMPTIONS UNDER VARIOUS STATE SECURITIES LAWS. HOWEVER, THE SECURITIES AND EXCHANGE COMMISSION (“COMMISSION”) HAS NOT DETERMINED THAT THESE UNITS ARE EXEMPT FROM REGISTRATION. THESE UNITS HAVE NOT BEEN REVIEWED, APPROVED OR DISAPPROVED BY THE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY, ADEQUACY, COMPLETENESS OR MERITS OF THIS MEMORANDUM, AND ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THIS MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL TO, OR A SOLICITATION OF AN OFFER TO BUY FROM, NOR SHALL ANY OF THE UNITS BE OFFERED OR SOLD TO, ANY PERSON IN ANY JURISDICTION IN WHICH SUCH AN OFFER, SOLICITATION, PURCHASE, OR SALE IS UNLAWFUL OR UNAUTHORIZED UNDER THE SECURITIES LAWS OF SUCH JURISDICTION.

THE STATEMENTS MADE HEREIN ARE MADE AS OF THE DATE ON THE COVER OF THIS OFFERING MEMORANDUM. THIS OFFERING MEMORANDUM CONSTITUTES AN INVITATION TO THE PROSPECTIVE INVESTOR TO SUBMIT AN OFFER TO SUBSCRIBE. NO PERSON MAY PURCHASE THE UNITS OFFERED HEREBY EXCEPT PURSUANT TO AN EXECUTED SUBSCRIPTION AGREEMENT IN THE FORM PRESCRIBED BY THE FUND, AND THEN ONLY FROM A PERSON TO WHOM THE FUND OR ITS DESIGNATED AGENT HAS DELIVERED A COPY OF THIS OFFERING MEMORANDUM.

THESE UNITS ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED BY THE FUND. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THERE IS CURRENTLY NO PUBLIC MARKET FOR THESE UNITS.

IN MAKING A DECISION TO PURCHASE UNITS HEREUNDER, PROSPECTIVE INVESTORS MUST CONDUCT THEIR OWN INDEPENDENT INVESTIGATION OF THE FUND AND THE TERMS OF THIS OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED, AND ARE ENCOURAGED TO CONSULT WITH THEIR ADVISORS AS THEY WILL BE REQUIRED TO REPRESENT THAT THEY ARE ABLE TO BEAR THE ECONOMIC RISK OF THEIR INVESTMENT AND THAT THEY ARE FAMILLIAR WITH AND UNDERSTAND THE FUNDAMENTAL RISKS AND TERMS OF THIS OFFERING.

NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATION WITH RESPECT TO THE OFFERING OF THE UNITS WHICH IS NOT CONTAINED OR REFERENCED HEREIN, AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUND. POTENTIAL INVESTORS MAY, IF THEY SO DESIRE, MAKE INQUIRIES OF THE FUND WITH RESPECT TO THE FUND’S BUSINESS OR ANY OTHER MATTERS SET FORTH HEREIN, AND MAY OBTAIN ANY ADDITIONAL INFORMATION WHICH SUCH PERSON DEEMS TO BE NECESSARY IN ORDER TO VERIFY THE ACCURACY OF THE INFORMATION CONTAINED IN THIS MEMORANDUM (TO THE EXTENT THAT THE FUND POSSESSES SUCH INFORMATION OR CAN ACQUIRE IT WITHOUT UNREASONABLE EFFORT OR EXPENSE).

August 07 2020

Confidential Offering Memorandum: Poston Investment Collective LLC

PROSPECTIVE INVESTORS ARE CAUTIONED NOT TO CONSTRUE ANY CONTENTS OF THIS OFFERING MEMORANDUM OR ANY PRIOR OR SUBSEQUENT COMMUNICATIONS, AS CONSTITUTING INVESTMENT, LEGAL OR TAX ADVICE; RATHER THEY SHOULD CONSULT THEIR OWN ADVISORS OR COUNSEL WITH THE CAPACITY TO ADVISE AND PROTECT THEIR INTEREST IN CONNECTION WITH ALL MATTERS CONCERNING THIS OFFERING MEMORANDUM.

THIS OFFERING MEMORANDUM DOES NOT KNOWINGLY CONTAIN ANY UNTRUE STATEMENT OF A MATERIAL FACT OR OMIT A MATERIAL FACT, AND ANY SUCH MISSTATEMENT OR OMISSION IS DONE WITHOUT THE KNOWLEDGE OF THE PREPARERS OF THIS DOCUMENT OR THE FUND. AS SUCH THE FUND BELIEVES THAT THIS OFFERING MEMORANDUM CONTAINS A FAIR SUMMARY OF THE MATERIAL TERMS OF ALL MATTERS, DOCUMENTS AND CIRCUMSTANCES MATERIAL TO THIS OFFERING. WHILE THE DATA AND STATEMENTS CONTAINED HEREIN ARE BASED UPON INFORMATION BELIEVED TO BE RELIABLE, NO WARRANTY CAN BE MADE AS TO THE ACCURACY OF SUCH INFORMATION OR THAT CIRCUMSTANCES HAVE NOT CHANGED SINCE THE DATE SUCH INFORMATION WAS SUPPLIED. THIS MEMORANDUM CONTAINS SUMMARIES OF CERTAIN PROVISIONS OF DOCUMENTS RELATING TO THE BUSINESS OF THE FUND AND THE UNITS OFFERED HEREBY, AS WELL AS SUMMARIES OF VARIOUS PROVISIONS OF RELEVANT STATUTES AND REGULATIONS. SUCH SUMMARIES DO NOT PURPORT TO BE COMPLETE AND ARE QUALIFIED IN THEIR ENTIRETY BY REFERENCE TO THE TEXTS OF THE ORIGINAL DOCUMENTS, STATUTES AND REGULATIONS.