THE SANCTUARY
The Sanctuary is a mid-80’s construction, 32 unit complex comprised of 15 townhouses and 17 apartments.  It’s amenities include yards for the townhouses, common grassy areas for the residents, a new swimming pool, in-suite laundry machines and is only a 15 minute drive to downtown.  It’s built in a neighborhood well underway in transition to a B/B+ neighborhood on the west side of I-35 and comparison sales of similar units in the neighborhood are well in range of the pricing for Sanctuary.

The Stirling Properties LP #1 is subscribing into an LLC with private investors and managed by The Anderson Group (TAG).  TAG is wholly owned by Rick Anderson.  $700K buys us 30% of the project.  We are buying into the project at the same price as the initial investors and there is no management fee.  Our USD funds for investing in this project were purchase at par.

The complex was purchased for $2,900,000 in March 2007 which includes $1,200,000 for construction.  $965,000 was raised from other local Austin investors for the downpayment and closing costs.
Seann Poli will become a Managing Member of the LLC and assume managerial duties if Rick Anderson is unable to do so.  There will only be two Managing members.
The complex has an active application with FHA to get approval for FHA financing which allows the buyers to purchase with 3% downpayment.  The application will be approved in about 45 days.
Currently, one has sold and 7 under contract.  The balance of the units is projected to sell within a year.  At current pricing, the gross proceeds is $5,910,000, net proceeds $1,043,331, with 30% being $312,999 which translates into a projected return of 45% to the Stirling investors.