Sycamore Flatts

 

The Sycamore Project: A Foundation for Rural Renewal

Ashcamp & Shelby Gap, Kentucky

Sycamore is not just a building.

It is a long-term economic foundation for a rural community that has been left with almost no essential services—and no realistic path to private investment without intervention.

Today, the Sycamore area of Pike County is served by only:

A gas station

A water bottling facility

A Dollar General

A drug rehabilitation center

There is no grocery store, no licensed childcare, no modern housing, no recreation facility, and no economic anchor capable of supporting workforce growth or private development.

Sycamore is designed to change that—permanently.

What Sycamore Does

Sycamore is a seven-story, mixed-use vertical district that concentrates essential services and housing into one efficient, walkable hub:

Full-service grocery store and local retail

Restaurants and small business spaces

Licensed childcare center

Fitness, recreation, and community meeting space

120 modern residential units for families and workforce housing

This is infrastructure disguised as real estate.

Why This Matters for Ashcamp & Shelby Gap

Rural communities do not fail because people don’t want to work.

They fail because the systems that allow people to work, live, and stay do not exist.

Sycamore directly solves that.

Immediate Community Benefits

Keeps millions of dollars local that currently leave the county for basic necessities

Creates over 100 permanent jobs

Allows parents to work by providing licensed childcare

Stabilizes population with modern, attainable housing

Improves health outcomes through recreation and wellness access

Reduces transportation costs and isolation

This is not about convenience—it is about economic survival and dignity.

A Financially Responsible, Mission-Driven Investment

Sycamore is financially sustainable once built:

Stabilized NOI: ~$3.17 million annually

Positive cash flow from Year 1

~$7.8 million in cumulative cash profit over 10 years

Annual profit grows to ~$1.2 million by Year 10

Property value increases from ~$45M to ~$56M+

This is not speculative.

It is a long-term, low-risk anchor asset designed for rural realities.

Sycamore is intentionally structured with a blended capital stack, combining:

Public investment

Federal and state grants

Tax credits

Mission-aligned equity

That structure is not a weakness—it is the reason this works where private capital alone will not go.

Why This Project Unlocks Future Development

Sycamore does what most rural projects fail to do:

It de-risks everything that comes next.

Once Sycamore exists:

Infrastructure investments are justified

Traffic counts and economic activity rise

Workforce housing exists

Lenders see stability

Small businesses have a customer base

Private development becomes possible

The second project is easier.

The third project is cheaper.

The fourth project attracts private capital.

That is how rural economies restart.

Why Invest Now

Without intervention, the Sycamore area will continue to:

Lose population

Export income

Strain healthcare and social services

Depend on emergency funding instead of growth

With Sycamore, Ashcamp and Shelby Gap gain:

A permanent service hub

A workforce anchor

A tax base generator

A replicable model for rural America

The Ask

Sycamore is seeking mission-aligned partners willing to invest in:

Economic stability

Workforce participation

Rural health and housing

Long-term regional resilience

This project will not just pay for itself.

It will pay forward, creating the conditions for sustainable growth where none currently exist.

Sycamore is not about building bigger—it’s about building what should have been here all along.

Sycamore Mixed-Use Development

Revised Investment, NOI & Catalytic Impact Analysis

Ashcamp & Shelby Gap, Kentucky (41512)

---

Executive Summary

Sycamore is a proposed seven-story mixed-use development designed to serve as a catalytic economic anchor for the Ashcamp and Shelby Gap region of Pike County, Kentucky. The project consolidates essential services, modern housing, childcare, recreation, and retail into a single vertical district in a region currently served only by a gas station, water bottling facility, Dollar General, and a drug rehabilitation center.

This document presents a revised and validated financial analysis, including Net Operating Income (NOI), debt capacity, and return metrics, alongside a clear explanation of the project’s long-term economic and community benefits. Sycamore is structured not as a speculative real estate venture, but as a foundation asset capable of stabilizing population, supporting workforce participation, and enabling future private investment in a rural Appalachian setting.

---

Building Program Overview (Floors 1–7)

Floor 1 – Grocery, Restaurants, Retail

Full-service grocery store, restaurants, and small to mid-size retail bays

Floor 2 – Retail + Licensed Daycare

Boutique/service retail and a secure, licensed childcare center

Floor 3 – Recreation, Fitness, Conference

Full fitness center, indoor recreation spaces, and community meeting rooms

Floors 4–7 – Residential

Approximately 120 modern residential units (1BR, 2BR, 3BR)

---

Revised Financial Performance Analysis

Commercial Revenue (Floors 1–2)

Total Commercial Area: 165,000 SF

Blended Average Rent: $18.75/SF/year

Effective Occupancy: 95%

Gross Commercial Revenue: $2,937,188

Operating Expense Ratio: 22%

Net Commercial NOI: $2,291,007

---

Residential Revenue (Floors 4–7)

Units: 120

Average Rent: $950/month

Occupancy: 92%

Gross Residential Revenue: $1,257,120

Operating Expense Ratio: 30%

Net Residential NOI: $879,984

---

Total Stabilized NOI

$3,170,991 annually (≈ $3.17M)

---

Construction & Development Cost Summary

Hard Construction Costs: $62.55M

Sitework & Utilities: $6.50M

Soft Costs (24%): $15.01M

Contingency (10%): $6.26M

Total Project Cost: $90.32M

---

Capital Stack & Debt Capacity

Source Amount

Senior Debt (45% LTC) $40.6M

Grants / NMTC / Public Subsidy $38.0M

Mission-Aligned / Philanthropic Equity $11.7M

Total $90.3M

---

Debt Service & Coverage

Loan Amount: $40.6M

Interest Rate: 5.5%

Amortization: 30 years

Annual Debt Service: ≈ $2.77M

Debt Service Coverage Ratio (DSCR):

$3.17M ÷ $2.77M = 1.14

This coverage level is consistent with blended-capital rural development standards, particularly when supported by New Markets Tax Credits, public credit enhancement, or interest-only periods during lease-up.

---

Return Metrics (Mission-Oriented)

Unlevered Yield on Cost:

$3.17M ÷ $90.3M = 3.5%

Levered Cash Yield on Mission Equity:

Approx. 3.4% annually, plus long-term appreciation

These returns align with catalytic and impact-investment expectations for rural anchor developments.

---

Impact on Ashcamp & Shelby Gap

Addressing a Critical Service Gap

The Sycamore area currently lacks:

A full-service grocery store

Licensed childcare

Modern housing stock

Recreation and wellness facilities

Diverse retail and dining options

Residents must routinely leave the region to meet basic needs, exporting income and weakening the local economy.

---

Economic & Workforce Benefits

Local Spending Retention: Keeps millions of dollars annually circulating within Pike County

Job Creation: Over 100 permanent jobs across retail, childcare, recreation, and property operations

Workforce Enablement: Childcare access allows parents to re-enter or remain in the workforce

Housing Stability: Supports nurses, teachers, healthcare workers, and small business owners

---

Community Health & Quality of Life

Fitness and recreation facilities improve physical and mental health outcomes

Walkable services reduce transportation costs and time burdens

Shared community spaces strengthen social cohesion

---

Sycamore as a Foundation for Future Economic Development

Sycamore functions as a true rural economic anchor, performing roles typically spread across multiple developments in urban areas.

Long-Term Catalytic Effects

Infrastructure Justification: Utility and roadway investments become viable

Risk Reduction: Stabilized traffic, population, and income support future private lending

Development Clustering: Subsequent projects become faster, cheaper, and lower risk

Replicability: Provides a scalable model for ARC-eligible and USDA-priority communities

Sycamore transforms a service desert into a platform for sustained economic growth.

---

Conclusion

Sycamore is not a speculative real estate project. It is a strategic, mission-driven investment designed to stabilize population, support workforce participation, and catalyze long-term economic development in Ashcamp and Shelby Gap, Kentucky.

With validated NOI, realistic debt capacity, and strong alignment with federal, state, and philanthropic funding priorities, Sycamore represents a compelling opportunity to demonstrate how integrated mixed-use development can succeed in rural Appalachian communities—and serve as a template for others to follow.