The New American House project is a great investment opportunity and could be a marquee sustainable community for South West Raleigh. It would be a new model for green home-building in the Triangle, the State of North Carolina, and perhaps the nation. But the project is in jeopardy of not coming to fruition if it doesn’t attract enough investors.
The plan for this community is solid. The opportunity to have 12 sustainable, green homes in this area designed by 12 different designers, all from North Carolina, is unlikely to come our way again. Since I first heard about this project in 2008, I thought it was an awesome concept and a great idea. We can help by spreading the word and gathering additional support in the form of investors for the project.
I think some investors don’t know about this hidden gem tucked away just south on NC State’s Centennial Campus. There is definitely demand in the region. The Raleigh-Cary metro area is being ranked as “the No. 1 ‘healthiest’ housing market in the country for 2010” according to a report developed by Hanley Wood Market Intelligence, mentioned in the Triangle Business Journal.
According to it’s marketing brochure [PDF],
“The New American House project is a 12 -home, green community located off Trailwood Drive, a quiet road close to downtown Raleigh. Each custom home will be designed by a different local architect and the sustainable design of its infrastructure and homes, abundant green space, and proximity to transit, greenways, and other urban amenities promise to make this neighborhood an ideal choice for the environmentally -conscious home- buyer.
This project will be one of a few private developments in the Triangle to adopt rigorous sustainable development guidelines. The New American House Green Builder Program will enable home owners to build houses that are resource and energy efficient, have lower maintenance requirements, and are healthier to live in than a typical home. In addition, the guidelines will help to protect the natural surroundings and ensure proper disposal or recycling of waste during and after the construction process. ”
Currently, the scope of this investment is only for the land development. The financial need to get the project going is to get the road and utilities built, which will take approximately six months after funding is secured. According to Philip Szostak of Szostak Design, “We have approximately $550k into the project with $270k of that with a first mortgage with Harrington Bank.” Szostak Design is suggesting two ways to get investors involved:
- Up to six individuals put in $95k each or a total of $570k secured with a second on the property until final plat. A lot or up to six lots would be deeded to them. These lots would be marketed for $120k, with a 5% escalations in cost after every three lots are sold. This investment would net a minimum of $25k per lot. Construction would take about 6 months.
- An individual could invest all or part of the $570k as equity and receive a 20% preferred return on their monies.
I’m jazzed about this development. I think others in the community are too. It would be a shame for a project with this type of high quality design and attention to the environment to slip away. If you are interested, see the contact details below:
Philip Szostak, FAIA
Phone: (919) 929 – 5244
e-mail: pszostak at szostakdesign.com
For additional sales information contact:
Winmore Real Estate Services
Phone: (919) 624 – 7684
e-mail: wpatrick1 at nc.rr.com