Capital Structure
How Phase I is funded — real-estate proceeds and membership initiation carry the build, bridged by a commercial construction loan sized to 60% of completed real-estate value, with land seller-financed and a reserve held throughout.
60% LTV
Construction loan on completed RE value
25/25/50
Real-estate deposit stages
$77.2M
Debt capacity (Expected)
Seller-financed
Land — outside the funding requirement
The capital stack, in priority of use
| Layer | Role | Reference |
|---|---|---|
| Real-estate proceeds | Primary equity/collateral; staged deposits 25% / 25% / 50% | |
| Commercial construction loan | 60% LTV of completed real-estate market value; bridge debt repaid at delivery | |
| Membership initiation | One-time initiation from the Phase I member cohort | |
| Owner equity | The residual plus the construction-period timing bridge | |
| Land | Secured under executed purchase contract; seller-financed / contributed equity |
Land is settled rather than an open item — it adds to the collateral base and removes a material pre-development risk. Recurring dues fund operations and are not counted as construction funding.
Model the stack
Capital-stack calculator
Sources and uses for Phase I (excluding seller-financed land). Select a scenario or flex the inputs; permanent equity is the residual after real-estate proceeds, membership initiation, and the construction facility.
$159.8M
$153.7M
$128.7M
$77.2MDebt capacity (60% LTV)
$6.1MPermanent equity required
FinanceableAssessment
A $10M liquidity reserve is held through construction; the construction facility is repaid from real-estate deliveries. Land is seller-financed and additive to the collateral base.
Construction-period cash flow (Expected case)
Real-estate deposits and membership initiation provide cash in; construction and the real-estate build provide cash out; the 60% LTV facility bridges the construction trough and is repaid as final real-estate payments arrive at delivery.
Permanent equity
~$6.1M end-state
Peak equity
~$15.8M — higher than permanent because 50% of each sale is received at delivery
Reserve
$10M held at or above in every quarter
Loan repayment
Construction loan fully repaid from real-estate deliveries at completion