| Property
ownership for The Ipswich Playhouse Arts &
Entertainment Center will be under Ipswich Properties
LLC, an Ipswich-based limited liability company, set up
to represent a group of Ipswich area investors. The LLC
will have both a managing investor/member, who will be
responsible for the day to day operations of the
company, as well as passive investor/members. Potential
investors/members will include those that are not only
interested in a favorable return on their investment,
but are also interested in the restoration and reuse of
this historically significant landmark building, and
promoting the economic and cultural growth of Ipswich. |
Ipswich
Properties LLC will be responsible for the overall
project development, including raising front-end equity
investment and arranging for permanent financing for
construction and initial operation of the property.
Ipswich Properties LLC, through its managing member,
will hire a qualified and experienced property
management company, under contract to manage and operate
the building on a day-to-day basis, including such tasks
as common area and exterior site maintenance, tenant
management and bookkeeping.
Ipswich Properties LLC, through the property management
company, will enter into Lease Agreements with the
various anticipated building tenants, including the
restaurant and retail spaces on the first floor and the
jazz club on the lower level. The second floor theater
space will be leased to the non-profit Friends
of the Ipswich Playhouse Theater. Planned lease
terms will be based on a triple net lease of a minimum
term of 10 years for the theater space, and a minimum
term of 5 years for the first floor restaurant and
retail spaces, as well as the lower level jazz club
space.
We expect The Ipswich Playhouse Arts & Entertainment
Center to be a major destination point and draw for Town
of Ipswich and the surrounding communities with the
combination of the theater, restaurant, jazz club and
retail space, all with ample nearby parking (there are
over 800 parking spaces within a 5-minute walk to the
building). The vitality of the Town will be enhanced
with the increased traffic and business while the
investors/members will benefit from the returns
generated from the property.
The Financial Plan for
the project envisions a small group of investors that
will include both individuals that would participate
with a minimum investment of between $50,000 to
$100,000, as well as potential collective investment
groups that would accommodate those interested in a
smaller investment amounts of between $5,000 - $45,000.
In order to maintain the projected opening schedule for
the completed project in the early summer of 2010, we
are looking for initial commitment letters from
interested investors by the end of March 2009, and
commitment letters for permanent financing prior to
closing in April 2009. Upon securing commitments for
permanent project financing, a funding date will be set,
just prior to closing, for payment of the investor
capital contributions. The overall projected after
tax internal rate of return on investment in this
project, on an annual basis over years 1-5 is 15.9%,
over years 1-10 is 14.6%, and over years 1-15 is 13.8%,
based on a 33% tax bracket for the investor. Full
pro-forma and financial analysis data, as well as a copy
of the proposed LLC operating agreement, are available
for those interested in investing in the project.
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