Details of our ultra-sleek new building!
Many have asked who’s buying the house, etc. All is explained below; however, here’s a little teaser as we share this:
- All Sigma Rho Alumni will be invited to invest – (not donate) – in this new exciting venture! More on that in the next communication.
Selling & Buying 202 E. Daniel
Who currently owns 202 E. Daniel:
Who is purchasing 202 E. Daniel:
- Sigma Rho Housing Association – Nearly all current Housing Board members are National Fraternity representatives as the NF lent money and absorbed all related housing costs
Who is purchasing 202 E. Daniel:
- Sigma Rho Alumni are essentially buying it back and re-investing the money into the new building
- More specifically, Royal Properties – the Champaign-based Sigma Rho alumni real estate firm (Rick Schmidt & Mike Henneman) – are shouldering the brunt of the costs and risks
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Ownership & Money Transfer:
$5.7 M – Sale of 202 E. Daniel $2.2 M – Goes to General Fraternity for outstanding debt $3.5 M – Remaining funds will be invested in new building A new Housing Board will take over – comprised entirely of Sigma Rho |
New Housing Board
Attorney: Steve O’Byrne ‘72
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Legacy Apartments
Aptly named after Sigma Rho’s Legacy – which this development intends to preserve!
Cost to Build
$7.77 M – Down Payment to build structure – $7.77 M will be comprised of:
+ $18.3 M – Bank Loan – guaranteed by Royal Properties (Mike Henneman & Rick Schmidt)
$26 M – Overall cost to develop building and make it operational (current estimate)
** Investor Capital – Royal Properties & other Sigma Rho alumni have pledged to cover the $4M investor capital. However, ALL Sigma Rho alumni will be invited to be a part of this. More on that in the next communication!
- $3.5 M – Residual from sale of current house (as mentioned above)
- $4.27 M – Investor Capital**
+ $18.3 M – Bank Loan – guaranteed by Royal Properties (Mike Henneman & Rick Schmidt)
$26 M – Overall cost to develop building and make it operational (current estimate)
** Investor Capital – Royal Properties & other Sigma Rho alumni have pledged to cover the $4M investor capital. However, ALL Sigma Rho alumni will be invited to be a part of this. More on that in the next communication!
Building Details
Click image for complete building sketch
# of Units: 99
# of Bedrooms: 220
Building Size (Sq. Ft.): 118,383
6 Stories (includes parking below building)
1 Bed / 1 Bath 16
2 Bed / 2 Bath 61
3 Bed / 2 Bath 6
4 Bed / 4 Bath 16
Fraternity (Sq Ft) 7,900
# of Bedrooms: 220
Building Size (Sq. Ft.): 118,383
6 Stories (includes parking below building)
1 Bed / 1 Bath 16
2 Bed / 2 Bath 61
3 Bed / 2 Bath 6
4 Bed / 4 Bath 16
Fraternity (Sq Ft) 7,900
- Will include: entrance lobby, stair case to 2nd floor, living room with fire place, dining room, catering kitchen, Chapter Room, chapter office, study room, and alumni/library room!
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Retail (Sq Ft) 407
Demolition of Current House – 90 Days Length of Time to Build New Structure – 12 Months Completion – 7/1/2021 Estimated Annual Rent Revenue = $2.8 M (will increase over time) |
Value of building once occupied with paying tenants = $38 M
Rent Revenue will be distributed among:
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How Betas plug into Building
- Sigma Rho Chapter will essentially rent the new Fraternal Lodge (the fraternity common space). However, the money to pay this rent will be earned from profits of investment in new development. This is the remarkable aspect of this approach in that rent revenue will sustain chapter operations!
- Sigma Rho actives will then individually lease and live in the “The Legacy Apartments”. This would essentially be the same as “housing costs” as they were before.
