DALLAS, TX–(Marketwired – Jul 19, 2016) – Cherubim Interests, Inc. ( OTC PINK : CHIT ) (“the Company”), an expansion-stage alternative construction and real estate development company, is pleased to announce that it has executed a Letter of Intent with SVN|TJF Investments. The Company and SVN|TJF Investments will work in a joint venture within the Dallas/Fort Worth Metroplex that will develop, construct, and lease a number of yet to be determined single-family residences that will then be divested to a pre-determined purchaser for amounts based on cap rates conducive to their respective geographic areas.
Cherubim Interests has agreed to:
- Locate and manage a relationship within the Industry Sector to pre-lease and manage (the “Property Manager”) any portion of the Business Model which has been completed, at industry standard rates, through the sale of the Commodity for the actual cost of required services and related expenses plus a 5% management fee;
- Initiate communications and establish definitive relationships with all requisite Government Offices, Professional Personnel and Services related to the Business Model;
- Locate and manage a developer to develop the land including all required engineering and permitting in accordance to the Business Model at industry standard rates through completion which would include any final inspections and approvals by the appropriate governing body for the actual cost of required services and related expenses plus a 5% management fee; and
- Locate and manage a contractor to construct the residences, including all required Architectural Work, Engineering and Permitting in accordance to the Business Model at industry standard rates through completion, which would include any final inspections and approvals by the appropriate governing body for the actual cost of required services and related expenses plus a 5% management fee.
SVN/TJF Investments has agreed to:
- Provide consultation and assistance on an as-needed basis to Cherubim Interests on all subjects described under the caption “Cherubim Interests Agrees” herein above;
- Initiate communications and establish definitive relationships with all Professional Personnel to assess the risk, establish appropriate values, and identify purchasers of the Business Model on an individual opportunity basis (the “Underwriting”); and
- Market and sell the Individual Business Model(s) for consideration(s) of Industry Standard Brokerage Fees and 10% of the Net Profit received by Cherubim Interests.
“We are excited to about this new relationship with Cherubim Interests,” said Todd Franks, Managing Director. “Single Family Rental (SFR) Communities are becoming a recognized product type within the commercial real estate sector with intuitional firms looking to take advantage and capitalize on the demographic horizon of millennials. The partnership with Cherubim Interests, as a proven development and management company, along with TJF|SVN Investments, a CRE Consultancy and National Brokerage Firm with over 200 offices around the world, make for a strong team to execute this strategy.”
“I am excited to announce the Company’s relationship with SVN/TJF Investments. Together, we will be collaborating to offer a conventional single-family neighborhood environment to families as an alternative to traditional apartment living here in North Texas,” said CHIT CEO Patrick Johnson. “We know the market for this product is in demand, and we are thrilled to be in position to quickly enter into the market.”
As consideration, upon successful completion and execution of any and all definitive documents regarding the relationship, the parties have agreed to a mutually exclusive relationship in regards to any future projects of like kind through a first right to refusal encompassing all relationships established while deploying the business model. However, SVN|TJF Investments’ current business of brokering single and multifamily rental projects and portfolios will not be considered part of this relationship.
About SVN/TJF Investments
SVN/TJF has closed over $10 billion in 2015 with over 200 offices and 1,500 advisors. The team focuses on SFR Portfolios nationwide in addition to Multi-Family Land, Joint Venture, Capital Raise and Debt Placement in Texas and Oklahoma. SVN/TJF maximizes value through a deeply technical valuation model ensuring clients receive top value for their assets. The firm’s national and international presence, local knowledge, consulting, disposition and acquisition services are unparalleled in the market. For more information, visit www.svn-tjf.com
About Cherubim Interests Inc.
Cherubim Interests specializes in alternative construction projects, as well as covering the entire spectrum of real estate development: due diligence, acquisition, planning, construction, renovation, and management; providing complete beginning-to-end development programs for mixed use, single, and multifamily projects and properties. For more information, visit www.cherubiminterests.com
Safe Harbor Statement
This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E and/or 27E of the Securities Exchange Act of 1934 that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company and the risks and uncertainties detailed from time to time in reports filed by the company with the Securities and Exchange Commission. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, the company’s ability to raise necessary financing, retention of key personnel, timely delivery of inventory from the company’s suppliers, timely product development, product acceptance, and the impact of competitive services and products, in addition to general economic risks and uncertainties.