Flatiron Heights

Chattanooga, TN

This is a unique opportunity to invest in a historic property located near the center of the city. As a 506(b) investment, it offers accredited investors a 20% annual return.

History and Thesis

The Flatiron building was constructed in 1911 on the former multi-building site owned by S. R. Read at the intersection of Georgia Avenue and Walnut Street. Flatiron was named and designed after the famous New York City structure. Flatiron was originally designed by local Chattanooga architect, C. E. Bearden. Original plans included a mixed-use design whereby the first floor and basement were office use and the upper three floors housed 27 apartments. In 1986, the Flatiron building went through a major renovation upgrade and was turned it into a single-use office complex. In 1992, TE Holdings purchased the building and has owned it for the last 29 years. The Flatiron building was placed on the National Register of Historic Places by the National Park Service of the United States Department of Interior on July 23, 2020.

Fisher Bay and its financial partners currently have executed a Purchase and Sales Agreement with TE holdings to purchase the Flatiron building. Fisher Bay plans to renovate and restore the building back to its historic roots of mixed-use by continuing to offer commercial use on the first and basement floors and creating 15 premier finish luxury condominiums on the upper three floors.

Project Overview

Property Location

Chattanooga, TN

The Flatiron building lies near the center of Chattanooga, TN. It has excellent views of the city, overlooking notable buildings such as the Dome Building, Hamilton County Court House, and the Memorial Auditorium.

Business Plan

Existing

  • Property in good condition, with dated look
  • Single-use commercial office space
  • Significantly below market rate leases
  • Currently only month-to-month leases

Planned Changes

  • Change to a mixed-property
  • Renovate the basement & 1st floor to higher-end lease level office space.
  • Renovate floors 2, 3, & 4 into 15 high-end condominiums
  • Renovate parking deck to accommodate both office and condo tenants.

Investment Details

Historic Opportunity Zone

  • 2+ year hold
  • 20% annual return
  • 8% preferred return for investors

Credit Union Debt

  • 5 year fixed TVFCU Financing
  • Construction to perm loan
  • 75% LTV 1 year interest only
  • 25-year amortization

Accredited Investors

  • 506b investment open to accredited investors only
  • 15 – 30% capital committed

Opportunity Summary

This 506(b) investment opportunity offers accredited investors a chance to earn up to 20% annual return on their investment through equity ownership in this project. There is a 10% preferred return with a target exit in 2-3 years. This deal is being financed by Tennessee Valley Federal Credit Union and has very favorable terms including a 5 year fixed rate for a construction–to–permanent loan. The loan is a 75% LTV with a 25–year amortization schedule.

Download Investor Summary
Flatiron Corner1 - Final (1)

Experienced Team

Robert-Square website

Robert Fisher

Fisher Bay, Sponsor

Dan-Square website

Dan LeVan

Fisher Bay, Sponsor

Bo-Square website

Bo Ferger

Fisher Bay,‎‎‏‏‎ Sponsor

Clint Dean - Square

Clint Dean

Modus Build, Sponsor

Experienced

With a combined 100+ years of executive and management experience and $250MM in closed multifamily transactions amongst the managers, we have the subject matter expertise, key relationships and proven track record to execute profitable deals.

Conservative

We are opportunistic investor focused on creating long term value. We stress test our deals and use leverage carefully to create sustainable cash flow and limit investment risk.

Diligent

Closing a deal, while challenging, is just the beginning. Executing on the business plan is the critical element to success. It takes perseverance and persistence to achieve what we have planned in our underwriting.

INFO / CONTACT

Thank you for your interest in contacting Fisher Bay about an investment.
Feel free to give us a call, or please fill out the section below and we will respond as soon as possible.

Address:

1830 Washington Street
Chattanooga, TN 37408

Phone:

423-444-0699

Email:

invest@fisherbay.com





    Disclaimer: The Fisher Bay website is intended solely for informational purposes. The Fisher Bay website does not constitute an offer to sell, or a solicitation of an offer to buy, an interest in a Fisher Bay investment opportunity. All information included in this website is believed to be current as of the date hereof and is subject to change, completion, or amendment without notice. The Fisher Bay website does not purport to contain all the information necessary to evaluate an investment with Fisher Bay, any such offer or solicitation will be made only by the delivery of a confidential Private Placement Offering Memorandum (PPM) relating to a particular investment. Access to information about the investments are limited to investors who either qualify as accredited investors within the meaning of the Securities Act of 1933, as amended, or those investors who are sophisticated in financial matters, and it is understood that you will make your own independent investigation of the merits and risks of any future investment with Fisher Bay & partnered operators. All prospective investors are encouraged to conduct their own independent due diligence investigation, review, financial projections, and consult with their legal, tax, and other professional advisors before making an investment decision.

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