Palace Way Real Estate Development
The company was set up and designed to syndicate, develop, and manage new real estate (R.E.) developments of Manufactured Housing Parks and light industrial Warehouse Business Parks in High growth areas of Texas. The projects are designed for long-term hold (10-years) to produce above-average returns to investors from rental income and capital gains appreciation while mitigating risk.
Palace Way Opportunity Zone Fund: (QOZ Fund) (SEC Reg-D, 506-C)
This investment fund invests in opportunity zone projects located in Texas. Accredited investors can invest capital gains funds to achieve tax deferrals, and any new earnings from the investment are tax-free after 10-years. The Palace Way fund invests in new real estate development projects.
The fund invests in multiple projects including the projects developed by Palace Way Management LLC.
Fund Quick Fact:
· $15,000,000 fund.
· 15.5% targeted return
· 6% preferred rate plus 70% of the free cash flow and capital gains.
· Minimum investment of $25,000
· 2% annual management fee
· 10-year hold
Manufactured Home Parks (SEC Reg-D, 506-C)
The company was set up to syndicate, develop, and manage new Manufactured Housing Parks in high-growth areas of Texas. We build 5-star land lease communities at a size of 200 spaces or more, with a full array of amenities. Projects are meant to be held long-term (10-years) to produce above-average returns for investors from operating income and capital gains appreciation while mitigating risk.
Quick Facts Typical Mobile Home Park
· 15.5% targeted returns.
· 10-year hold.
· 6% preferred rate.
· 70% participation after preferred is paid.
. Park size 250-space and larger.
Warehouse Business Parks (SEC Reg-D, 506-C)
The company develops and manages new Light Industrial Warehouse Business Parks in high-growth areas of Texas. The parks 12 to 30-Acre Warehouse Business Rental Projects: These parks are designed for small businesses needing 4,000 to 12,000 square foot warehouse-type buildings on 1-acre fenced lots. Projects are meant to be held long-term (10-years) to produce above-average returns for investors from operating income and capital gains appreciation while mitigating risk.
Notice: new real estate development projects and investors' returns.
*These are new developments with no cash flow until the projects are built and leased. Therefore the preferred rates of returns accrue to investors' accounts until the projects start cash to follow.
Comparing investment funds to Developer/syndicator investments
What attracts investors to new real estate development is the total return to investors is often greater than investing in an asset that has been developed and leased up. This is true because the investor is buying into an asset at the cost of building-level (pre-development) versus investing in an asset purchased at retail market prices.
A developer will take 18 to 36-months and spend tens of thousands of dollars getting a development project to the point where investors are invited in. Developers often have fewer fees to charge against the invested funds. The developer only makes money after the investor's preferred rate is paid and the project is profitable. At that time, the developer's retained interest may be larger than the retained interest of a pure investment fund. Investment funds may have many types of fees being charged; (fees are charged against revenue regardless of profits). Fees can have a significant impact on total investment returns over time.
Jim E. Glasgow
210-413-7230
This is not an offer to sell or a solicitation of any offer to buy any securities. Offers are made only by Prospectus or Private Placement Memorandum or other offering materials. To obtain further information, you must complete our investor questionnaire and meet the suitability standards required by law. Some opportunities are only available to accredited investors.
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