Sigma Development Company LLC was organized as a for-profit company to develop, build, and manage fraternal housing for students at the University of Missouri/Columbia. The company transformed a traditionally charitable donation drive into a fully-funded capitalization plan and business plan that was completed in under 120 days. The development was completed under budget and on time, providing high-quality, competitively priced housing for fraternity members through a sustainable financial model not dependent on donations. This disrupts the traditional Greek housing model that relies on charitable donations, allowing broader alumni participation through investment rather than donations. The plan aims to endow fraternity charitable foundations and provide educational opportunities for members.

1. SIGMA DEVELOPMENT COMPANY LLC
A SUSTAINABLE AND PROFITABLE ALTERNATIVE TO THE TRADITIONAL
BEG AND BUILD GREEK HOUSING MODEL
SigmaDevelopmentCompany(SDC) isafor profitcompanyorganizedtodevelop,buildandmanage
fraternal housingforstudentsatUniversityof Missouri/Columbia. CharteredSDCtoplan,capitalize,
develop,andoperate afraternityoccupiedreal estate complex. Transformeda traditionallycharitable
donationdrive (whichhasnotbeensuccessfulafterthree yearsof effort) intoaforprofitcompanywith
a comprehensivecapitalization planandbusinessplananddevelopmenttime line thatwasfullyfunded
inunder120 days.
Organizedandcapitalizedthe companytodesignedandbuilt andmanage new fraternitycampusfacility
includingthree newbuildingsandaparkinggarage were completedintwophaseswiththe final main
house finishedinthe springof 2016. The developmentwascompletedunderbudgetandontime with
economicsthatprovidesreal returnstoalumni investors,sustainable model forfundingforfuture
maintenance and improvements andnotdependenton capital callsorcharitable donationswhile
providingfirstclass,competitivelypriced,housingforfraternitymembers.
The businessmodel,properlyexecuted,providesadisruptive displacementof the Greekhousingmodel
that has perpetuallybeendependentoncharitable donationsbywealthyalumni whotraditionallyfund
and maintainfraternityandsororityhousingnationwide. The plandesignedandexecutedforSigma
Developmentallowsabroaderparticipationbyalumni participantswho canshare inthe missionand
fundingwithoutbecomingcharitable donorsbutratherinvestmentpartners.Partnerswho,ratherthan
tax deductions,receivereal cashreturnsandlongtermcapital appreciationontheirinvestment.Too
because of the capital designandorganizationstructure,SDClongtermwill endow the fraternities
charitable 503 C scholarshipfoundationwithincreasedfundingaswell as provide educational
opportunities ,advance leadershiptraining, andfinancial andbusinessmanagementinternshipsfor
collegiate fraternitymembers.
By introducingthe disciplinedfinancial andbusinesspracticesandcompassionate capitalismintothe
traditional Greekhousingbusinessmodel whichhistoricallyfocusedoncharityandfundraisingwe
introduce newmodelsandpracticesthatincrease alumni interestandparticipation,create asustainable
financial model,providegreatereconomicbenefitsforparticipants,potentiallyendow affiliatedentities
to fundeducational scholarships,andprovide greaterleadershipandinternshipopportunitiesfor
students. While traditional 'begandbuild'modelsremainthe norm, Ibelieve the SDCmodel will
become muchmore importantandwidelypursuedasmembersof Greekalumni groups understand
bothits capital structure and investorrewards,andancillary memberbenefitsof amarketdriven,
memberfocused,sustainable housingmodel.