DEVELOPMENT BUDGET - Galveston Skyline
Total Development Cost: $5,300,000
- Site Work, Foundation, Structural$950,000
- Vertical Construction (5 stories)$1,900,000
- Roof & Rooftop Amenity Buildout$300,000
- MEP Systems (HVAC, Plumbing, Electrical)$300,000
- Elevator, Fire Safety, Code Compliance$200,000
- Architecture & Engineering$180,000
- Civil / Permitting / Consultants$80,000
- Interior Design & Furnishings (STR Units)$120,000
- Legal, Accounting, Organizational$70,000
- Marketing & Lease-Up Budget$70,000
- Contingency (10%)$200,000
- Loan Fees & Closing Costs$130,000
- Interest Reserve$250,000
- Operating & Lease-Up Reserve$200,000
- Sponsor Fee / Dev Mgmt / Admin$350,000
- Senior Construction Loan (65% LTC)$3,500,000
- Investor Equity (this raise)$1,800,000
- Rooftop activation includes outdoor deck, shade pergola, and partial indoor lounge.
- STR FF&E allows turnkey rental operation for 12-16 units.
- Medical office and retail tenants expected to fund TI improvements separately.
Galveston Skyline | Feasibility Study & Market Report
Location: 1109 Galveston Avenue, Fort Worth, TX
Galveston Skyline is strategically located in Fort Worth's Near Southside, a rapidly growing medical and cultural district. The project capitalizes on strong demand drivers from nearby hospitals, medical offices, and lifestyle amenities. It is designed to serve physicians, traveling nurses, health system partners, and local professionals seeking flexible housing and workspace solutions.
1. MEDICAL DISTRICT SNAPSHOT:
- 10,000+ daily healthcare employees within 1-mile radius
- Major anchors: JPS Health Network, Cook Children's, Baylor Scott & White, Texas Health Fort Worth
- UT Southwestern expansion influence with landholdings adjacent to site
2. SHORT-TERM HOUSING DEMAND:
- Over 4,000 travel nurses pass through DFW hospitals annually
- Physician locum tenens placements increasing 8% YoY
- STR units within Near Southside have 70-85% occupancy (AirDNA data, 2024)
- Extended-stay STR average rate: $160-$200/night
3. RETAIL / OFFICE DEMAND:
- Retail absorption rate: 93% within 1-mile
- Strong demand for health-related retail (pharmacy, fitness, healthy food)
- Office vacancies under 10% for medical and wellness suites
- Class B medical office asking rents: $28-$35/SF
4. RESIDENTIAL TRENDS:
- Near Southside multifamily occupancy: 92-95%
- One-bedroom units rent for $1,800-$2,200 (Class A STRs)
- Physicians desire walkability and proximity to hospital without long leases
5. COMPARABLE PROJECTS:
- Magnolia Medical Lofts: Rents $2,200-$2,600/mo, STR suite conversion in 2023
- South Main Village: 96% leased, includes mixed-use with STR overlays
- Dr. Denker STR Suites: Fully booked during Q2-Q4 2024 hospital surge
The market strongly supports a hybrid development model targeting short-term medical housing, curated ground-floor retail, and medical-adjacent office space. The addition of luxury penthouses and a rooftop lounge provides an upper-tier appeal. Given its adjacency to UT Southwestern and the low competition in STR/premium residential for medical professionals, Galveston Skyline is uniquely positioned to become a flagship asset in the Near Southside.
- Rooftop amenity with skyline views
- High-spec STR units for mid-to-long stay doctors and nurses
- Flexible suites for telehealth & admin spillover
- Ground-floor wellness-centric retail
FEASIBILITY & MARKET REPORT
Galveston Skyline - Near Southside, Fort Worth TX
The Near Southside in Fort Worth is undergoing rapid revitalization, with a growing medical district employing over 10,000 healthcare professionals. Galveston Skyline is ideally positioned to meet demand from healthcare workers seeking short-term, walkable housing; physicians seeking high-end rentals; and the neighborhood's need for curated retail and professional office suites.
- Over 10 major hospitals and clinics within 1 mile
- High demand from traveling nurses, residents, and locum tenens doctors
- Year-round occupancy opportunities
- Fort Worth STR occupancy average: 65-75%
- Expected ADR (furnished): $160-$190/night
- Projected monthly STR revenue (12 units): $28,800
- Growing outpatient and specialty medical services lacking space near core hospitals
- Near Southside is walkable and underserved in health-focused retail (pharmacy, cafes, wellness)
- Retail rents: $28-32/SF NNN; Office: $30-35/SF MG
- Lack of high-end, flexible 3-6 month furnished leases in walkable proximity to hospitals
- Most physicians avoid homeownership for locum roles or transition periods
- Galveston Skyline penthouse STRs to fill a luxury gap
- Nearby mixed-use comps: Near Southside Lofts, Magnolia Village
- Cap rates: 6.0-6.75%
- Retail & office absorption strong post-2023 recovery
- Limited pipeline of new supply due to rising costs
Strengths:
- Medical adjacency
- Rooftop amenity & luxury finishes
- Multi-stream income model
Weaknesses:
- STR regulations (though favorable in current zoning)
- Lease-up period post-delivery
Opportunities:
- Expand by acquiring adjacent UT Southwestern parcels
- Early exit via pre-stabilized sale
Threats:
- Cost inflation
- Interest rate volatility
Galveston Skyline aligns with medical demand, urban lifestyle preferences, and multi-use development trends. This unique footprint makes the project feasible and compelling for institutional buyers and STR operators.
Confidential Investment Memorandum
Galveston Skyline | 1109 Galveston Avenue, Fort Worth, TX
Galveston Skyline is a 5-story, $5.3MM mixed-use development strategically located in Fort Worth’s Near Southside Medical District. The project includes luxury short-term rentals, medical/professional offices, curated retail, penthouse residences, and a rooftop amenity space. It is designed to meet high demand from physicians, traveling nurses, medical staff, and wellness-focused retailers.
- Total Development Cost: $5.3MM
- Senior Construction Loan: $3.5MM (65% LTC)
- Investor Equity: $1.8MM (35%)
- Hard Costs: $3.6MM | Soft Costs: $1.2MM | Reserves: $0.5MM
- Offering: $1.8MM Equity Raise (Reg D 506(c))
- Minimum Investment: $100,000
- Preferred Return: 9% annually
- Equity Split: 80% Investors / 20% Sponsor
- Target Hold: Up to 3 years
- Exit: Pre-stabilization sale or strategic disposition
- 10,000+ healthcare employees within 1 mile
- STR occupancy 70–85% with ADR $160–$200/night
- Physicians seeking 3–6 month furnished leases
- Retail absorption 93% near site; $28–35/SF rents
- Near Southside multifamily occupancy: 92–95%
- Site Demo: Complete
- Permitting: Q4 2025
- Construction: Q2 2026
- Completion: Q4 2027
- Stabilization: Q2 2028
- Sponsor: Testament Real Estate LLC
- Sponsor Lead: Nathan Barkocy, Owner & GP
- Contact: nathan@testamentre.com
Galveston Skyline | Development Budget Summary
Project: Galveston Skyline
Location: 1109 Galveston Avenue, Fort Worth, TX
TOTAL DEVELOPMENT BUDGET: $5,300,000
- Valued land use contribution$0 (under long-term ground lease)
- Sitework and Foundation$400,000
- Core & Shell (5-story build)$1,800,000
- MEP (Mechanical, Electrical, Plumbing)$500,000
- Rooftop Amenity Buildout$250,000
- Elevator + Stairwell Construction$200,000
- Interior Buildout (STR, Office, Retail)$450,000
- Architecture and Engineering$175,000
- Permitting and City Fees$55,000
- Legal and Entitlements$50,000
- Developer Fee (5%)$265,000
- Marketing and Lease-Up$75,000
- Insurance and Admin$55,000
- FF&E (STR Furnishings & Decor)$325,000
- Contingency (10% of hard costs)$300,000
- Interest Reserve$300,000
- Closing Costs & Lender Fees$75,000
- Initial Operating Reserve$125,000
- Senior Construction Loan (65% LTC)$3,500,000
- Investor Equity$1,800,000 (35%)
PRIVATE PLACEMENT MEMORANDUM
Galveston Skyline LLC
1109 Galveston Avenue, Fort Worth, Texas
- Offering Type: Regulation D, Rule 506(c)
- Offering Size: $1,800,000
- Minimum Investment: $100,000
- Preferred Return: 9% per annum
- Equity Split: 80% Investors / 20% Sponsor (after pref and capital return)
- Target Hold Period: Up to 3 years
- Exit Strategy: Opportunistic sale pre-stabilization, or strategic sale within 3 years
- Investor Eligibility: Accredited Investors Only
- Hard/Soft Construction Costs: $4.8MM
- Pre-Opening & Interest Reserve: $0.5MM
- Total Project Cost: $5.3MM
Galveston Skyline is a 5-story, mixed-use development located in Fort Worth's Near Southside, strategically positioned two blocks from the Medical District. The project will deliver luxury extended-stay short-term rentals, health-oriented retail, and flexible medical office suites. A rooftop amenity and penthouse residential units will further elevate the project as a landmark for live-work wellness.
The offering is managed by Testament Real Estate LLC, led by Nathan Barkocy. Testament is responsible for sourcing, entitling, and executing all phases of development. Investors will be members of Galveston Skyline LLC.
- Site Demo: Complete (Q2 2025)
- Permitting: Q4 2025
- Construction Start: Q2 2026
- Completion & Lease-Up: Q4 2027
- Stabilization: Q2 2028 (if held)
All real estate investments carry risks. Primary risks include construction cost inflation, interest rate volatility, leasing absorption, and timing of exit events. A full risk section is available in the full legal PPM.
Investors must complete a subscription agreement, pass accreditation verification, and fund their capital prior to closing. Escrow details provided upon request.
This is a confidential investment memorandum for informational purposes only.
Developer: Testament Real Estate LLC | Contact: Nathan Barkocy | nathan@testamentre.com
Disclaimer: This material is intended solely for informational purposes and is strictly confidential. It does not constitute an offer to sell, or a solicitation of an offer to buy, securities. Any such offer will only be made by means of a duly authorized Private Placement Memorandum (“PPM”) and in accordance with the terms therein. Investments in real estate are speculative and involve substantial risks, including loss of the entire investment. Past performance is not indicative of future results. Projected returns, estimates, and assumptions may not be realized and are subject to change without notice. Participation is limited to accredited investors, as defined by the Securities Act of 1933, Regulation D, Rule 501. By accepting and reviewing this material, you agree to keep it strictly confidential and not reproduce or distribute it without prior written consent. Testament Real Estate LLC, its affiliates, the General Partner, and any associated members make no guarantee of performance, return, or success of the project. Sponsor & Manager Disclosures: Testament Real Estate LLC, under the leadership of Nathan Barkocy, acts solely as the sponsor, manager, and general partner of this offering. Neither Testament Real Estate LLC nor its affiliates provide tax, legal, or investment advice. Prospective investors should consult with their own independent advisors before making any investment decision. By reviewing this material, you acknowledge and accept all risks, including, without limitation, those related to construction, financing, lease-up, regulation, and market conditions.