IF YOU ARE A DEVELOPER, YOU SHOULD CONSIDER OUR NEW FRONTIER OF
Carried Interest.
We are aggressively taking on commercial development work through carried interest. Doing so in a trade of equity for quality construction as a trade partner.
One new project has us under contract to deliver 320 build to rent housing units with significantly higher net equity, and $10M less capital required.
Don’t let the reference to the word new make you anxious. Our founder and construction management team brings 80 years of experience in heavy construction to the table. The reference to “new” is simply a pivot to a new approach to project development.
Click here for details.
YOU CAN COUNT ON BUSTAMANTE FOR EXPERTISE & LABOR TO MINIMIZE YOUR
Development Challenges!
We’ll deliver a predictable outcome regarding your cost and completion date. From our start, we set out to build a high velocity high-margin company. We built a roster of tradesmen that we keep employed. Competing for labor is extremely hard for small and mid size general contractors because of the required investment and loyalty necessary.
AS A TRADE PARTNER WITH CARRIED INTEREST, YOU CAN COUNT ON US TO DELIVER
Predictable Cost!
We can team with you to build new a development with a clearly defined “all-in-development cost”.
Our equity in the project is pegged to the future appraised value of the project we codevelop as the construction trade partner.
In the Abilene Texas built-to-rent housing project, our completion cost is $30 per square foot below the market rate. With a 344,000 square feet development project, our carried interest value is $10M of net equity gain in the stablized portfolio.
AS A TRADE PARTNER WITH CARRIED INTEREST, YOU CAN COUNT ON US TO
Self Perform All Trades On a Project.
Due to loyalty and years of investing in our tradesmen, we can self perform all trades on a project sourcing skilled labor from our internal roster of tradesmen.
If the project requirement dictates, we can scale up 300-400 unskilled laborers to be assigned to work under our project managers.
AS A TRADE PARTNER WITH CARRIED INTEREST, YOU CAN COUNT ON US TO DELIVER ON A
Predictable Schedule!
The tight labor market today is creating conflicts in completion schedules of general constructors. We’ve invested substantially in building a roster of tradesmen cross trained with a diverse skillset. Most firms have to rotate crews in and out of job site locations based on the trades needed within the sequencing schedule. We have a more favorable logistics to manage, less delay in scheduling, as critical project completion timelines are controlled within our company.
Bustamante is a shrewd choice if you want control of your project schedule.
HERE IS MEANINGFUL TESTIMONY ABOUT
Liquidated Damages, $50M Retained Work.
Bustamante was hired by Mr. Dennis Terrell who managed a large construction firm. The dual benefit we delivered for Dennis was:
(A) a LOSS AVOIDED: the avoidance of liquidated damages on a $4M renovation project at Sands ISD School Campus for HVAC and MEP work in great distress needing completion in 75 days. The delays were occurred despite Dennis having his own crew on the project.
(B) a BENEFIT GAINED: the retention of a $50M new construction project of a Sands ISD School Campus that would have been granted to a different construction company if Dennis had not retained Bustamante. Dennis was a repeat customer who knew from past work he could count on us and we delivered.
Click here to listen the endorsement of this specific project. The relevant remarks are at the 2:30 minute mark of the MP3 File.
AS A DEVELOPER, ARE YOU TARGETING THE ACQUISITION + RENOVATION OF
Distressed, Class A Commercial Assets?
We can serve as your trade partner with equity as carried interest delivering unprecedented value in renovation or repurposing distressed commercial properties you acquire to residential.
We can offer up years of heavy construction and MEP expertise to scale up labor for repairing or replacing critical infrastructure system needs following your building acquisition.
WITH CARRIED INTEREST, BUSTAMANTE WILL HELP YOU RENOVATE DISTRESSED COMMERCIAL PROPERTIES WITH SIGNIFICANTLY HIGHER PERFORMANCE (IRR) TO CRUSH RIVAL DEVELOPERS EAGER TO
Dominate This Space Once It Emerges.
As co-developer of acquired commercial buildings, our carried interest will enable us to achieve significantly higher performance IRR at stabilization. How is that higher performance achieved?
Because Bustamante as a trade partner will deliver 60% to 70% of the projects renovation cost into a five year depreciation schedule. Contrast that value to the standard 27.5 year depreciation.
IMAGINE YOU’RE PRESENTED WITH TWO DEVELOPMENT PROJECTS IN DALLAS TX AT A COST OF $100M EACH. WHICH PARTICULAR DEAL WOULD YOU CHOOSE TO INVEST IN BASED ON THW DIFFERENT
Economic Models & ROI Outcomes?
MODEL ONE - $100M DEVELOPMENT PROJECT:
CONVERSION OF COMMERCIAL BUILDING INTO A RESIDENTIAL COMMUNITY.
$20M PURCHASE + $80M RENOVATION BUDGET
TOTAL FIVE YEAR DEPRECIATION = $14,545,454
With Model One, the five year depreciation benefit for all stakeholders on the $80,000,000 renovation cost using a common 27.5 year schedule is $2909,090 annually or just under $14,545,454 of total depreciation in the first five years of occupancy.
MODEL TWO - $100M DEVELOPMENT PROJECT:
CONVERSION OF COMMERCIAL BUILDING INTO A RESIDENTIAL COMMUNITY.
$20M PURCHASE + $80M RENOVATION BUDGET
TOTAL FIVE YEAR DEPRECIATION = $57,600,000
With Model Two, the five year depreciation benefit for all stakeholders on the $80,000,000 renovation cost is just under $58,000,000 of total depreciation in the first five years of occupancy.
This outcome is the result of the application of depreciation from Bustamante’s two part economic framework. Within the Bustamante framework is:
(1) the sustainable architectural design which contributes an estimated 60% of the renovation budget as five year depreciation, and
(2) cost segregation as an engineering study of the renovated building which contributes an estimated 12% of the renovation budget as five year depreciation benefit.
Question?
Given the fact that residential rent rates and cash flows should be the same for both buildings in the economic contrast presented above, where would you prefer to invest your capital - Model One or Model Two?
Economic Analysis
The framework in Model Two delivers two to three times more five year depreciation than what astute developers are taking. The framework is laid down in pre-construction planning and is part of our value engineering. We provide the inclusion of a sustainable architectural design approved by the IRS and we marry that with the engineering study cost segregation. Bustamante has fused economic genius with the unique environmental genius of an architectural trade partner based in Texas.
Early adopters include major brands like Chevron USA, NRG+ Energy, Embassy Suites, Bank of America, Koch Industries, Bank of OZ, International Paper, Marek Bros.
CHOOSE US AND ELEVATE YOUR PORTFOLIO PERFORMANCE WITH OUR TEAM’S
Fusion Of Economic & Environmental Genius
ARE YOU, OR YOUR LIMITED PARTNERS MOVED TO INVEST BASED ON CURRENT ESG INVESTMENT TRENDS & POLICY?
If so, you have a basis for collaboration with us on all new projects if you aim to enhance your good name from an economic AND environmental point of view. On the economic front, we can deliver standout financial performance above the IRR that your rivals are realizing in LKQ asset classes. With us, you’ll beat your past performance on LKQ assets you still have in your portfolio compared to your new IRR.
From an environmental stewardship point of view you’ll start crowing like a rooster in the first year following the issuance of your Certificate of Occupancy on each new completed project with us as a trade partner.
PARTNER WITH US TO TRANSFORM THE WORKPLACE WITH
Critical Building Envelope + Environmental Remediation!
Our EPA Registered Antimicrobials & Space Age Polymers Transform Sick Buildings, Create Critical Healthcare Environments, & Clean Living Spaces.
We can deliver smart, adaptive environments with stimuli-responsive, environmentally adaptive products that use smart polymers. These highly efficient polymers – coupled with EPA-registered antimicrobials – offer a new approach for preventing mold in water damaged and sick-buildings. The polymer can also be used to create building envelope in residential housing, or commercial building during construction. The unique technology creates a shield against pathogens, mold and mildew growth, eradicating spores and fungal roots in microscopic cracks.
BUSTAMANTE IS ACTIVELY SEEKING INFRASTRUCTURE TRADE PARTNERS BECAUSE
We Aim To Build Energy Independent Neighborhoods
We have active discussions with trade partners interested in deploying their capital with the Energy-As-A-Service (EaaS), or Infrastructure-As-A-Service (IaaS) model.
We have trade partners focused on introducing their platform to deliver on the promise of net zero buildings and housing projects. We can collaborate on evaluating the feasibility of Microgrid solutions, energy generation and storage as a suite of building infrastructure services.
CHOOSE US FOR NEW PROJECTS AND ELEVATE YOUR PORTFOLIO’S
Performance, Value & Future Exit Price
PERFORM ABOVE IRR EXPECTATIONS AND SEPARATE YOURSELF FROM RIVALS!
You have a basis for collaboration with us on all new projects if you want to crush your rivals who are competing for investment capital. On the economic front, we can deliver standout financial performance above the IRR your rivals are delivering in the same LKQ asset classes. With us, you’ll beat your own past performance on LKQ assets in your current portfolio compared to that of your new portfolio. From an economic point of view because of IRR gains, you’ll start crowing like a rooster in the first year from the issuance of your Certificate of Occupancy on each new completed project with us as a trade partner.
Q: How does this sustainable architectural design enhance your brand and reputation?
A: Your integration does not conflict with your creative design and amenities, but does elevate your property’s:
Performance: with 150% better IRR above your target IRR, due to 3 times the amount of five year depreciation you’re leveraging now.
Value: as we prove up the elevated performance as noted above, the evident cash flow gains above your target creates better value in your property. If a rental portfolio of like kind and quality assets is delivering 28% IRR and yours is at 21% IRR which of the two LKQ properties is an aggressive investment buyer gonna purchase?
Exit: the final negotiated exit price for your portfolio will be higher than normal for two reasons - (A) your performance is stronger than other property’s on the target list of your suitor, (B) your suitor will be presented with the option to depreciate 20% to 30% of the acquisition price of your building due to the embedded architectural design that you wisely embraced and leveraged in the pre-construction phase of your project as the original developer.
BUSTAMANTE CAN BE ENGAGED TO TACKLE YOUR NET ZERO BUILDING OBJECTIVES WITH
Energy Infrastructure
We have trade partners that are interested in deploying their capital with the Energy-As-A-Service (EaaS), or Infrastructure-As-A-Service (IaaS) model.
We can be hired to replace damaged, infrastructure systems. Or build new infrastructure systems in a very traditional approach. We have trade partners focused on introducing their platform to deliver on the promise of net zero buildings. We can collaborate on evaluating the feasibility of Microgrid solutions, energy generation and storage as a suite of building infrastructure services.
ON THE SUBJECT OF SUSTAINABILITY AND NET ZERO BUILDING MANDATES…
Do You Know the Reagan Library Story?
In the world of smart energy and sustainable real estate we are focused on results in reducing the carbon footprint of buildings, while lowering the energy expense as well.
Talk is cheap. Performance and results are the only measuring stick of success. Yet lip service is often elevated to and given equal status to fictional green energy projects that have not economic basis as an underpinning.
The Ronald Reagan Library, Simi Valley CA:
The facility planners at the Ronald Reagan Library embarked on an ambitious renewable energy project. One that enabled the planners to achieve a level of energy independence and better stewardship of the library's finances. Nearly two decades ago, the Library invested in the purchase of Capstone Turbines. The turbines provide 90% of their power needs, which means that the library is 90% independent from the grid, and have reduced the annual energy spend by 10%.
DEVELOPMENT • INFRASTRUCTURE • CONSTRUCTION • BUILDING INFRASTRUCTURE • ENVIRONMENTAL
How’s Our Safety Record?
In the Last Seven Years Our Loss Run Reports For General Liability & Workers Comp Shows Zero Claims!