Freehold Capital Partners Announces $250,000,000.00 Pennsylvania Project

Wed Aug 18, 2010 11:24am EDT

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Freehold Capital Partners Announces $250,000,000.00 Pennsylvania Project

PR Newswire

NEW YORK, Aug. 18 /PRNewswire/ -- Freehold Capital Partners (http://www.FreeholdCapitalPartners.com) is pleased to announce that it has partnered with a major developer on a real estate project in Pennsylvania. The project's estimated final improved value is $250,000,000.00.

By working with Freehold to structure a one percent Capital Recovery Fee, the project developer can spread development costs over time, and, in consequence, reduce the initial sales price. The fee runs for the expected useful life of the improvements, and then expires.

According to Ph.D. land economist Dr. Tom McPeak, "a lower initial price will result in lower acquisition costs, reduced carrying costs, and reallocation of the savings," thus making homeownership more affordable. (See "The Economics of Private Transfer Fee Covenants"). Buyers who buy for less can then sell for less, passing on the savings to future owners.

A portion of the future income stream created by Freehold is allocated to non-profits that benefit the community. Through this program, long-term funding is created for clean air, clean water, green space, literacy, affordable housing and similar endeavors that help build better communities and enhance the quality of life in and around our projects.

A Capital Recovery Fee represents an attractive alternative to the traditional practice of putting 100% of the burden for long-term improvements (such as roads, water lines, lift stations, etc.) onto the shoulders of first time buyers.

About Us: Through our team of hundreds of agents nationwide, we have partnered on large development projects nationwide, including residential communities, retail, commercial, hotel/motel, industrial, apartment and more. In the process, we have created what is estimated to become one of the largest charitable funding sources in the U.S. In addition, by creating a Capital Recovery Fee and segregating the income stream out from the project (much like PID bonds and similar development financing vehicles) project developers have the potential to bring additional liquidity to their projects. This, in turn, can restart stalled projects, create jobs, pay down bank loans, and create a ripple effect throughout the economy.

Disclaimer: This release contains forward-looking statements. No guarantee of accuracy is expressed or implied and no reliance shall be made upon the information herein. No representation is made as to the date the project was submitted to Freehold, the final completion date, or the actual project value when completed. The Company undertakes no obligation to update information. Keywords: Non Profit Funding Home Resale Fee Private Transfer Fee Covenant Transfer Tax Capital Recovery Fee Distressed CRE Loan FHFA private transfer fee covenant home resale fee

SOURCE Freehold Capital Partners

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