Galleria 6, LLC was formed entity with the purpose of acquiring 6.1 acres located near the NWC of Galleria Road and Boulder Highway in Henderson, NV. The land will be fully entitled with mixed use zoning and four retail drive thru conditional use permits in place.  This investment is considered a Value-Add investment with moderate risk.

The investment strategy is threefold: To acquire the land for resale purposes in bulk; or, to improve the land for future sales and ground leases; and/or, to secure NNN leases with credit tenants and construct the vertical improvements. To fully improve the land and commit to any type of improved land sale or lease, the Manager, on behalf of the Company must enter into more than one purchase agreement with non-refundable deposits and/or more than one binding lease agreement. In the event of the LLC’s requirement to fund any off and onsite improvements (estimated to be $1.8mm), the amount is to be funded with additional equity unless the majority of the investors vote to apply for commercial debt.

Upon the resale, all Class A Members shall first receive their equity invested and a preferred ten percent (10%) IRR prior to any Class B Member profit participation. The balance of the profits shall be split eighty percent (80%) to the Class A Members in proportion to their units held and the remaining twenty percent (20%) to the Class B Member until such time the Class A Members received a sixteen percent (16%) IRR on their invested equity. Thereafter, the balance of the profits shall be split 50/50.

The purchase price of the property was $3.75mm and the total equity invested was $3.75mm.