Comparable Sales Analysis

Recent sales of comparable new construction and high-performance homes in the Stonington and Mystic area support the projected resale range:

• 14 Boulder Avenue, Stonington: 2,500 sq. ft., new construction home sold for $735,000 (closed Q1 2025)

• 22 Mistuxet Avenue, Mystic: 2,300 sq. ft., energy-efficient home sold for $710,000 (closed Q4 2024)

• 9 Elm Street, Stonington Borough: Renovated home with sustainability upgrades sold for $775,000 (closed Q1 2025)

These comps reflect strong demand for efficient, modern homes with quality finishes and sustainable features. They also reinforce the target sales range of $625,000–$750,000 for the proposed project.

North Stonington Library

Financial Highlights

Please note: Land acquisition and construction costs reflected below are based on current estimates. Final figures will be confirmed upon site acquisition, final design selections, and contractor pricing. A contingency allowance of approximately 5–10% has been included in the budget to account for potential fluctuations in materials, labor, and permitting. Sensitivity analysis has been conducted to model outcomes under various cost and sales price scenarios, ensuring risk is evaluated conservatively. Please note: Land acquisition and construction costs reflected below are based on current estimates. Final figures will be confirmed upon site acquisition, final design selections, and contractor pricing.

Company Background

New England Builders & Millworks, LLC is a Mystic, CT-based design-build firm focused on constructing high-performance, energy-efficient homes throughout southeastern Connecticut. The company integrates durable building envelopes, encapsulated crawlspaces, Rockwool insulation, and superior indoor air quality into every project. All homes are crafted with a commitment to sustainability, aesthetics, and long-term value.

Principal Glenn Callahan brings over three decades of experience managing both residential construction and private real estate investments. NEBM operates with a hands-on, transparent approach and maintains a deep network of subcontractors, suppliers, and regional professionals.

Investment Summary

Waterfall Structure (Example)

Sample Timeline and Distribution Illustration (12-Month Investment on $25,000):

Step Description Distribution Amount

Preferred Return 8% annual return on $25,000 investment $2,000

Return of Capital Full return of investor principal $25,000

Profit Share – Investor 70% of remaining $2,750 $1,925

Profit Share – Sponsor 30% of remaining $2,750 $825

Total Distributable Proceeds: $28,925

Waterfall Summary:

• Remaining profit: $18,333

  • Since the investor has not yet achieved a 15% IRR, the next $11,000 (approx.) is split 70% investor / 30% sponsor:

    • $7,700 to investor

    • $3,300 to sponsor

  • If any profit remains after the investor's IRR exceeds 15%, it would then be split 50/50.

• Preferred Return: 8% annualized, paid first to investors

• Return of Capital: 100% of investor capital returned before profit share

• Profit Split:

  • First tier: 70% to investors / 30% to sponsor until investors achieve a 15% IRR

  • Second tier: 50% to investors / 50% to sponsor thereafter

This structure ensures investors receive a strong preferred return with aligned upside based on project performance. The Internal Rate of Return (IRR) is a time-weighted measure of an investor's total annualized return. It includes all distributions to the investor—both the preferred return and profit share—over the life of the investment. The 15% IRR hurdle includes the 8% preferred return; it is not additive. In other words, once an investor's overall return (including the 8% pref) reaches a 15% IRR, the profit-sharing structure shifts to the second tier. This ensures that investors are prioritized for early and substantial returns before profit-sharing accelerates in favor of the sponsor.

• Offering Structure: 506(c) Private Placement

• Minimum Investment: TBD (typically $25,000+)

• Investor Security: Equity position secured by real property

• Use of Funds: Land acquisition, soft costs, vertical construction

• Distributions: Upon sale of the completed home

Competitive Advantage

• Proven experience in high-performance home construction

• Deep market knowledge of Stonington and surrounding communities

• Energy-efficient building methods reduce days on market and increase sale prices

• In-house design, millwork, and construction management for quality control

Progress Updates

New England Builders & Millworks, LLC provides investors with regular transparency and confidence throughout the build cycle. We issue weekly project updates in PDF format via email, including jobsite photos, milestone highlights, and construction progress summaries. Additionally, investors receive a monthly budget and spending report showing how project funds are being allocated, ensuring full financial transparency. Investors are always welcome to request additional information or schedule a site visit.

Next Steps

If you are an accredited investor interested in participating, please review our Operating Agreement, Private Placement Memorandum (PPM), Subscription Agreement, and detailed financial projections—all available in PDF format.

NEBM is currently accepting soft commitments to secure the land parcel and finalize construction timelines.

To schedule a call or Zoom meeting, please contact Glenn Callahan directly.

Thank you for your time and interest.

Contact:
Glenn Callahan
glenn@newenglandbldr.com
www.newenglandbldr.com

Operating Agreement, Private Placement

Private Placement

Subscription Agreement

Financial Projections