By Peter Madrid | MadridMedia
The 5th Annual Shark Tank presented by ULI Arizona attracted three distinct and unique projects all with the same goal of landing an investor.
The ‘sharks’ considered a residential subdivision in the Arcadia neighborhood in central Phoenix; a senior living facility in Amarillo, Texas; and luxury residences in Downtown Chandler.
Joseph Blackbourn, president and CEO of Everest Holdings, moderated the event held at the Omni Montelucia Resort. This year’s sharks were Drew Brown, founding partner of DMB Associates; John Graham, CEO of Sunbelt Holdings; and David Bruner, president and CEO of Circle Road Companies.
Those presenting included former Arizona State University students, a Harvard graduate, a former commercial real estate banker and a young entrepreneur. The projects:
>> Gifford Groves (CIMA Holdings): The developers of ground-up projects in the Valley were seeking $650,000 in capital for a 12-unit, for-sale residential subdivision at an infill site in Arcadia near 32nd Street and Thomas Road. Each unit would total 2,175 SF of livable space, three to four bedrooms with 2.5 bathrooms.
The investment summary consisted of a 67/33 split between investors and sponsors until the equity investment is returned. Net project cash flows following the return of the equity investment will be split 50/50.
The development is named after Gifford Pinchot, the first chief of the U.S. Forestry Service.
>> Senior Living Investment (Brydant): Brydant, which also has experience in student housing, rolled out a senior living model to be built in two phases. The 211-unit senior living community, Bridlewood Senior Living, would be built in Amarillo, Texas. It would provide a full continuum of care including independent living, assisted living, and memory care. Phase 1 would be delivered in two years due to pent up demand of senior living housing.
Brydant was seeking $17 million in new equity, which would represent 27 percent of the $63.5 million price tag. Bridlewood would serve as a prototype facility to test the company’s model. If successful, it would be rolled out in 15 other markets, primarily in Arizona. Weitz Life Care Services would be one of the project partners.
>> St. Moritz Residences (Sunset Luxury Residential): ASU alums Franco Calabrese and Frank Gidaro pitched their project — 31 luxury for-sale townhouses near Downtown Chandler.
Total price tag was $8.7 million ($297,000 per unit). Calabrese and Gidaro were seeking an equity investment partner for 80 percent ($1.1 million). The townhomes would be attractive to young professionals and first-time buyers, Calabrese said. They are perfect for those looking to move out of expensive apartments and own their own home.
Shark Tank is another great example of the information-sharing and best practices for which ULI Arizona is known.