Cereus Development, LLCPhoenix, ArizonaCommercial Real Estate Development and Investments for the Rest of Us
Type of Investment:
Cereus Development recycles, revitalizes, and enhances underutilized, under-performing, distressed commercial properties in the urban areas of Phoenix and its surrounding cities. “Commercial” includes office, retail, office-warehouse, and warehouse. It also includes commercially zoned vacant land and commercially zoned land currently being used as residential. Cereus Development creates affordable commercial property ownership opportunities for entrepreneurs, small businesses, and non-profits.Cereus Development selects and structures projects to return 12% to 20% profit at the time of sale. Because its purchase of a property is generally discounted and leveraged (requiring only a cash down payment), the rate of Return on Investment may be greater than the project profit percentage. Short Term Exit Strategies:ü Make “paper” changes, commission site plan and building elevations, secure city entitlements. Sell or assign project (land, plans and entitlements) to a builder or developer at a profit.ü Make cosmetic changes to facade, create attractive “vanilla shell” units, improve tenant mix, rents, and occupancy. Sell at a profit to an investor as a cash-flow property.ü Buy multi-tenant buildings on separate parcels or split into multiple parcels. Sell one building (short-term profits) and keep the other building (long-term profits).Long Term Exit Strategies:ü Plat and build or rehab as affordable office, retail or warehouse/office condos and sell to owner-users or investors at a profit.ü Buy, improve, and hold for cash flow and equity. Use equity as collateral for future projects.Aftermarket Profits:ü Carry back down payment loans in 2nd position. Loans are fixed rate, interest only, assumable, with prepayment penalties and a call date of 10 years. ü Retain some of the units for the long term and lease to end-users.ü Retain ownership of common areas (parking, green space, lobby/foyer) and lease back to property owners’ association.ü Manage the units that are purchased by investors.ü Manage the property owners’ association and the common areas.
Project Capital:ü Seller Financingü Seller Participationü Conventional Financingü Optionsü Investor Funds – Investor Funds are solicited for each project individually and, in accordance with Regulation D of the U.S, Securities & Exchange Code, a Private Placement Memorandum is issued for each project.§ Equity – Ownership interest in single-asset LLC is available to both accredited and non-accredited investors. Minimum equity investment: $40,000§ Debt – 1st or 2nd Deeds of Trust§ Debt – Unsecured NotesManagement:The principals and managers of Cereus Development, LLC are Nadina Cole-Potter and Tom Potter. Between them they have 25 years experience in the real estate industry. Prior to becoming real estate investors and consultants, Nadina worked as a commercial real estate paralegal for top law firms in San Francisco and Phoenix. Tom was a program controller for a publicly traded real estate investment syndicate in the San Francisco Bay Area. In addition to their Cereus Development projects, Nadina and Tom are both commercial real estate consultants affiliated with Keller Williams Arizona Realty in Scottsdale, Arizona. The Potters have assembled a team of highly qualified allied real estate, development and financial professionals who work on each project. Some of those professionals not only perform fee-for-service on Cereus projects but also may participate as investors. Cereus’ team members are also an ongoing source of referrals of potential projects. Inquiries: Nadina Cole-Potter and Tom Potter, PrincipalsCereus Development, LLCCommercial Real Estate Development & Investments for the Rest of Us4340 E Indian School Rd, Ste 21-174Phoenix, Arizona 85018Phone: 480-945-8272
E-mail: cereusdevelopment@cox.net [1] and cereusdevelopment2@cox.net [2]
