Rundberg, LP

Status	Active
Address	IH 35 and Rundberg / Austin, Texas
County	Travis
Type	Land

PROPERTY PROFILE

Acreage	24.1 & 1.08
Zoning	Commerical & Multi-Family
Currently Leased	no

FINANCIAL INFORMATION

Purchase Date	May 2005
Total Cost	NA

Sales Date	Listed
Market Value	5,245,000
Property Status	Lot on Rundberg Street is currently listed. Remaining 24 acres in process of changing the zoning from Multi-Family to Commercial

Triton acquired two adjoining parcels of land, located in a key location in the industrial section of North Austin, for a price significantly below market value. The seller is a local businessman who is currently in bankruptcy, and was weeks away from losing the properties to a Bankruptcy Trustee Sale. The following is a summary of the properties:

- The properties are located in a key industrial part of Austin. This is the last undeveloped land in the area, and would fetch a substantial premium. The location of the land is right on the west side of the IH35 freeway, the major corridor of Austin. The land is close to two freeway exits. A map locating the property is attached. The properties in question are two adjoining lots, one 24.1 acre parcel and 1.08 acre parcel.

- In April 2007, the total property was appraised for $5.245 million; the 24.1 acre parcel for $4.145 million and the 1.08 acre parcel for $1.1 million. The appraisals were performed by a local reputable appraiser.

- Since acquired in May of 2005, the above land has increased in value due to growth in Austin and the demand for quality land to development has also increased. Most importantly, land developers are willing to pay a premium for land that has been taken through the pre-development process. For an incidental costs, estimated at $400,000, Triton, with its in-house expertise could perform all predevelopment procedures, which would include the following: Entitlements, Site developments, permits, Zoning, and Final plat.

The pre-development process is expected to take 6 to 8 months. Once this process is completed, it is estimated the land can be sold for approximately $6 million dollars. Through our bankruptcy attorney, we have reached a deal with the Bankruptcy Trustee, allowing us to pay the $2.8 million for the land. The total funds required to execute the above plan is $3.2 million; $2.8 million land acquisition, $350,000 predevelopment costs and $50,000 for legal and reserves.

Map

Returns

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Net Annualized returns from sale	N/A
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