Bailey Mixed Use Commercial Land

A 20-unit mixed-use commercial development across 14.93 acres in Bailey, Fannin County, Texas, comprising 10 large-format retail spaces — suitable for anchor tenants such as supermarkets, banks, and national commercial operators — and 10 professional office spaces, aggregating 175,000 square feet of rent-able area. The balance of the site accommodates structured parking, landscaped gardens, community open space, perimeter gating, and a full drainage system. Construction is estimated at $150 per square foot across the total built area. Retail units are offered at $32 per square foot per annum and office units at $35 per square foot per annum.  

Financial Breakdown:

The property’s total equity is $3.25M, which is basically the entirety of the land’s market price. The total construction cost is projected to be $22.50M, entirely debt-financed at 7.00%, which will be converted to a 30-year mortgage. The payments will follow a capital repayment structure. Of the equity, regardless of the financial contribution between the general and limited partners, there will be a 20-80 ratio for distributing any excess cash flows. The 7 th year is expected to be the exit year for any of our endeared short or medium-term individual and commercial clients. Based on the projected numbers, on the liquidation of the asset, the LP investors will receive a one-time $41.91M aside with some yearly distributions as well, thus making their investment 16.83X, to $54.71M. In these 7 years, the GP will make a total of $12.86M, and the LP will make $51.46M. The unlevered IRR of this project is 26.92%, and the levered IRR is 85.89%.