PERMIAN BASIN OIL FIELD HOUSING
SINGLE FAMILY AND HOUSING
SECURED INVESTMENT LOAN OPPORTUNITY

Summary

Development, construction and sale of single family and duplex housing in Pecos, Texas in the heart of the Permian Basin Oil Field.

Said housing to meet the needs of the oil and gas fracking and horizontal drilling boom in the Permian Basin as well as supporting housing needs public and non-public entities; e.g., teachers, doctors, nurses, firemen, insurance agents, road crews, store/restaurant owners and workers, etc.

Developer

A&E Housing, LLC (A&E), 400 E. Randolph St., Chicago, IL 60601, a Delaware limited liability company formed to develop housing opportunities in oil and gas fracking areas in the western United States. A&E is a strategic partner of GRFI, Ltd., a national development company in operation for more than forty years.

Project

Twenty-four total housing units on twenty-four existing lots. The homes are to be located in Pecos, TX which is in the heart of the Permian Basin Oil Field where new fracking and horizontal drilling techniques have unlocked huge reservoirs of oil in the Permian Basin previously deemed impossible to reach. In the past two years, Texas’ crude oil production has doubled. In 2014, Texas is projected to produce more than 3 million barrels a day – moving it ahead of Kuwait, Mexico and Iraq to become the eighth-largest oil producer in the world. Energy companies are likely to invest more than $100 billion in Texas in the next few years to extract oil using the new technologies. In 2011 alone, the boom created more than 38,000 jobs in southwest Texas and poured more than $500 million into state and local coffers. The project’s focus is the provision of housing to meet the needs of the boom.

Land

24 residential lots in Pecos, Texas. Located off of Iowa and Missouri Streets between Stafford St. and Veterans St. Each lot is approximately 55’ x 100’. The Developer has a contract to purchase said Property which will close in Summer 2014. The cost of said purchase is $44,000.00.

Utilities

Water, sewer and gas are currently to the various individual lots. There are no tap fees. Electricity and phone lines are to the overall development property lines, but not each individual lot. Electric and phone line installation costs are fronted by the local electric utility upon provision of a bond from Developer that is proportionately reduced as housing units are constructed and put on the grid.

Road

A road bisecting the property upon to access the 24 lots (12 lots on each side of the road), needs to be installed. The cost for this road, with curb and gutter, is approximately $160,000. This expense may be covered as an incentive paid by the City of Pecos to induce the Developer of the Project to proceed. In the event said incentive is not granted, each of the twenty-four lots will share pro-rata share in said costs with Investment Capital used for said purpose. The project’s staged development plan reduces the upfront impact of these expenses.

Housing Units

Single Family: 1,890 sq. ft. single family three bed, three bath homes. Each home with custom cabinets, granite countertops, wood floors, recessed lighting, laundry/mud room, nine foot ceilings, clerestory windows in great room, car-port, fenced back yard. The house is built modularly then set on a four foot concrete footer wall crawl space foundation. This house was recently independently appraised for $186,000.

New Limited Liability Company

To own and develop the Project, a new LLC will be formed to be owned by the Capital Investor and by A&E. A&E to have 51% of all voting rights subject to (a) limitations; and (b) sale of the Project restrictions which will require Investor and A&E approval.

Right of First Refusal

During all periods that Investor’s capital is invested in the Project, Investor to have a right of first refusal to participate with A&E on all A&E Pecos, Texas projects upon terms and conditions offered by A&E to the general public. Investor shall have thirty days from notice from A&E of future projects to exercise this right of first refusal.

Market Demographics

The Permian Basis is experiencing a resurgence to become a vast producer of oil. For more information please see the Wall Street Journal article, Old Oil Field Gets Second Life.

Investment Opportunities

For specific information concerning investment opportunities in both Texas and North Dakota, contract George Frerichs, managing director of A&E Housing, LLC at 312-856-1444 or gfrerichs@grfiltd.com
400 E. Randolph St. #700
Chicago, IL 60601

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GRFI/The Frerichs Group
400 East Randolph Street Suite 700
Chicago, Illinois 60601
(p) 312.856.1444
(toll free) 888.856.5161
(f) 312-856-0025