Eleventh Element LLC

Sandshof

Mixused
Project

East Austin Mixed-Use Development

Executive
Summary

Opportunity

Investment in a strategically located mixed-use development in dynamic East Austin, targeting the growing demand for urban living and accessible retail.

Project Concept

Development of a 15-unit residential condominium building above 4,500 sqft of ground-floor commercial retail space, based on a 3-story building concept and potential Vertical Mixed Use (VMU) zoning.

Key Strengths

  • Potential for favorable zoning modification (LR-MU-V).

  • Prime East Austin location with a 35,828 sqft lot.

Financial Snapshot

  • Total Estimated Development Cost: $5,357,963

  • Total Potential Revenue / Project Value: $7,783,144.80.

  • Estimated Gross Profit: $2,425,181.80

  • Estimated Return on Cost (RoC): 45.26%

Investment Ask

Seeking Equity Investment ($1,607,389 or 30%) and Debt Financing ($3,750,574 or 70%) to fund the Total Development Cost of $5,357,963.

Project
Overview

Project Name

Proposed East Austin Mixed-Use

Location

East Austin, Texas

Lot Size

35,828 sqft

Proposed Zoning Consideration

LR-MU-V (Updated from Base Zoning FAR 50%)

Allowable Conditioned Space (interpreted from source as 50% FAR)

17,914

Building Stories

3 (User Defined)

Development Concept

Mixed-use with ground-floor commercial and residential units on upper floors.

Market
Analysis

Market Rent Data (Commercial)

Q1 2025 East/SE Austin Avg. NNN Rent of $26.63 per SqFt per Year.

Commercial Vacancy & Collection Loss Assumption

7.00%

Commercial Cap Rate Assumption

6.25%

Target Condo Sale Price per Unit

$400,000 (User Provided)

Development
Plan

Building Stories

3

Estimated Gross Building Area (GBA)

17,914 sqft

Total Commercial NRA

4,500 sqft

Number of Residential Units

15 (Based on Residential Area + Unit Size in source)

Average Residential Unit Size

1,000 sqft

Total Residential Saleable Area

17,914 sqft

Financial
Proforma

Sources of Funds

  • Total Estimated Development Cost: $5,357,963

  • Debt Financing: $3,750,574 (70% user input)

  • Total Sources: $5,357,963 (100%)

Uses of Funds (Total Development Cost)

  • Land Cost: $900,000 (16.80%)

  • Construction & Non-Land Costs: $4,030,650 (75.23%)

  • Financing Costs: $427,313 (7.98%)

  • Total Uses: $5,357,963 (100%)

Revenue / Value Creation

  • Total Gross Residential Sales Revenue: $6,000,000 (Calculated based on 15 units @ $400,000/unit)

  • Estimated Stabilized Commercial Value: $1,783,144.80 (Calculated from NOI and Cap Rate)

  • Total Potential Revenue / Project Value: $7,783,144.80 (Residential + Commercial Value)

Profitability Metrics

  • Estimated Gross Profit: $2,425,181.80 (Revenue - Cost)

  • Estimated Return on Cost (RoC): 45.26% (Gross Profit / Total Cost)

Capital Stack &
Return Distribution

Capital Structure

  • Debt: $3,750,574

  • Equity: $1,607,389

Profit Distribution Tier (Based on PROJECT value $7,783,144.80 and DEBT $3,750,574, resulting in INCOME $4,032,570.70 available for equity/developer distribution)

  • Return of Equity: $1,607,389

  • Preferred Return (8%): $128,591

  • Residual Profit for Split: $2,296,591

    - Investor Share (60%): $1,377,954

    - Developer Share (40%): $918,636

Total Investor (Equity) Amount

$3,113,934 (Includes Equity, Preferred Return, and Investor Profit Share)

Total Developer (Sponsor) Amount

$918,636 (Developer Profit Share)

Equity Multiple (Preliminary)

$3,113,934 (Total Investor Amount) / $1,607,389 (Equity Investment) = 1.94x.

Timeline

Ask

  • We are in search for $1.6M in Equity financing to purchase land and soft costs. 

  • We have done preliminary meetings with the City of Austin and currently 1.94X is what our project can deliver.

Eleventh Element LLC