UCASU Receives $ 400,000 Construction Loan On First SHOC Airbnb Property | State
ATLANTA, July 6, 2021 / PRNewswire / – UC Asset LP (OTCQX: UCASU), a Atlantareal estate investment company, confirms having obtained a loan for the construction of $ 400,000 on its first Shared Home-Office Cluster (SHOC) property, through its wholly-owned subsidiary SHOC Holdings LLC.
This first SHOC property is located in the historic downtown district Atlanta, right in front of Dr. Martin Luther King jr. memorial, and right next to a major intersecting freeway exit known as the “Downtown Connector”. It was acquired for a total cost of approximately $ 750.000 in April, and the deal was closed on July 01, last Thursday. This property can be developed into 10 units for short term rental under the concept of SHOC.
SHOC is a disruptive new concept for real estate investing. UC Asset defines the concept as a residential property with each room designed as an individual business lodge equipped with office capacity. These home office spaces can be rented individually, primarily targeting business travelers. The company plans to sell these spaces on platforms such as Airbnb, Vrbo or through corporate partnerships.
“SHOC combines the merits of homestays (like most Airbnbs) with conventional business hotels, and is an improvement on both, ”boasts Greg Bankston, Managing Partner of UC Asset. “SHOC offers business amenities that today’s home stays lack, and offers a lifestyle charm that today’s business hotels fail to deliver. “
Bankston estimates that after renovating the property into ten SHOC units, it can generate gross income of around $ 350,000 per year in the short term. The cost of the renovation is estimated at $ 300,000 To $ 400,000.
“We are grateful to receive a construction loan which will likely cover all of our construction costs. This can remarkably improve our ROE (Return on Equity) on this property, ”says Bankston. “The loan is granted by a local bank which had worked with us on conventional investments. The approval of this loan, in our view, shows the bank’s confidence in our innovative new SHOC investment model. “
The loan bears interest of 4.25% per annum and has a maturity of 12 months. If the renovation of the property can be completed by the maturity date, it is possible that the loan can be refinanced into a longer term mortgage, secured by the finished SHOC property.
About UC asset:
UC Asset LP is a limited partnership formed for the purpose of investing in real estate with value-added strategies, focusing in metropolitan areas of Atlanta, GA. For more information on UC Asset, please visit: www.ucasset.com
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from those statements. You are cautioned not to place undue reliance on these forward-looking statements. Except as otherwise provided by federal securities laws, we assume no obligation to publicly update or revise any forward-looking statements after the date of this press release. None of these forward-looking statements should be taken as a representation by us or any other person that the objectives and plans set forth in this press release will be achieved or executed.
For more information, contact:
Christal jordan | Director of Investor Relations, UC Asset LP
[email protected] | 678-499-0297
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SOURCE UC Asset LP