Seeking Investors For High-yield Note On New Cemetery In NY
This is the first new cemetery of this size (162,000 plots) in the NYC area in 25 years. The principals are seeking $2.5 million (broken into 25 units at $100,000 per) for completion of the development, initial marketing, and other costs in anticipation of a July 2004 opening. Each unit is entitled to eight quarterly, interest-only payments of $7,500 with half of the original principal returned at the end of year one and the remainder at the end of year two. This equates to a 30% ROI in year one and 60% in year two. Investor also receives a 1% equity stake in the company per unit to be held in perpetuity. With annual cemetery revenues projected at $14 million and a current market multiple of 3x revenues for operating cemetery purchases, this equity stake could result in a significant backend windfall for investors. This raise will be followed by another similar $2.5 million raise for the same principals for another cemetery in Virginia.
Joseph J. LaBadia, CFA
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post this in the "TCI Realty" section.