The Project is planned to incorporate multiple commercial condominium units that will be subject to the terms of a declaration of condominium. As outlined in the Development Agreement between PHA and Sharswood Developers, LLC, PHA will have an option to acquire the Project based on to be determined terms. The Project Entity anticipates having a leasehold interest in the land, which will be used as collateral for a leasehold mortgage. The ground lease will grant the Project Entity the right to construct and control the activities on the land, subject to compliance with the terms of the ground lease. PHA will retain ownership of the real estate indefinitely. Therefore, neither the Project Entity nor any of its affiliates will ever own the Property. Ground leases typically provide that at the end of the lease term or upon a tenant default, the land, building and all improvements revert back to the landlord. The ground lease is also expected to include a sharing of cash flow and sales profits with PHA once certain internal rates of returns are achieved. The ground lease is not final however, we expect that the Project Entity will be responsible for taxes, maintenance and insurance as well as all operating costs and capital expenditures. The ground lease will have a term of 99 years and an annual payment of $1.00. In this case PHA will be the landlord and the Project Entity will be the tenant. Ground leases generally represent the ownership of land underlying commercial real estate properties, which are leased on a long term basis (often 30 to 99 years) by the land owner acting as the landlord to a tenant that will own the improvements and buildings on top of the land. Sharswood 1, LLC (the “Project Entity”), an affiliate of the Company expects to borrow funds to complete the Project and enter into a ground lease with PHA. We also plan to host job fairs in churches and community centers in the community to inform residents of job opportunities. To achieve this goal, we expect to engage with local community development entities, PHA and small businesses in the area will post job openings at their offices. Seventy percent of the permanent jobs created by the Project are expected to be made available to local community residents. They plan to work with the general contractor to ensure certain hiring goals are met and they expect over 200 construction jobs and over 200 permanent jobs to be generated through the Project. Mosaic has a strong track record for hiring MBE/WBE firms to consult on and construct its development projects. The co-sponsor, Mosaic Development Partners, is a certified Minority Business Enterprise (MBE) and is committed to meeting the needs of the community. Job creation ranks high on Mosaic’s and Shift’s community impact list. To date, the area’s high school has been reopened, 83 affordable homes have been built, Habitat for Humanity is currently constructing an additional 20 homes and PHA is converting a building to create 94 senior housing units. While many projects are already under construction or completed, additional planned community development initiatives include new high quality affordable housing, local job creation, neighborhood-serving retail and commercial services and public green space. It is hoped that the Project will contribute to significant reduction of blight, as part of a comprehensive neighborhood plan, along with the revitalization of an important commercial corridor. Located at 2077 Ridge Avenue in Philadelphia’s 19121 zip code, this 230,000 square foot mixed-use project is planned as four condominium commercial units which will include 101 residential units, ranging in size and affordability. This Offering is to raise $2,200,000 in equity for the Project, which will serve as an anchor on the Ridge Avenue commercial corridor and is the first phase of the redevelopment effort in Sharswood.
0 Comments
Leave a Reply. |