Sky Valley Retreat
Economic Plan
Valley View Lodge is the
existing developer. The LLC has two partners who each have 50% ownership. They
are Ed Ryan the sub divider/manager and Cedar Crest LLC.
PHASING PLAN
Phase I- After the
development company is capitalized, the LLC will begin Phase I with the rehab
of an existing lodge into a six bedroom lodge with conference facilities. At
$250 psf, this 7400 sf lodge can be
presold for $1,850,000.
Valley View Lodge rehab |
$750,000 |
Payoff Liberty Bank |
$225,000 |
Sales ( not part of
capital) |
$ 97,500 |
Marketing at 5% |
$ 85,000 |
Closing & Title |
$ 6,250 |
Site Prep and Organization |
$ 72,500 |
Phase II - In the next level of investment, we want to find a single
company that will jointly build and operate additional lodging facilities or
build second home. We are asking $2,050,000 for 40% of the potential
profits. The ROI is estimated at 12% to 20 % per year depending on whether this
project is build all at once or phased in bit sized pieces. In addition other
benefits are owning a conference center and a retreat for company seminars,
rewards, executive sessions, holidays and an emergency sanctuary & back up
facility for times of crises. As
Valley View
Lodge expands its development theme into Sky Valley Resort, we can build
and market multiple properties to corporations as a retreat or consumers as
second home. We will offer high speed Internet connectivity and conferencing
services as part of the existing commons areas. The developer can carve out one
more home on the remainder of the Valley View Lodge site of three acres that
comes with Phase II. This will require some zoning work, a new road and
utilities for this site. As capital and sales allows up to 14 additional homes
can be built. The syndicate will receive use of master suites until the
property is sold out. In the meantime all units can be rented out by the
day or sold as second homes without rentals. In Phase II the development
company will use the net proceeds from sales to build more houses on the unimproved
sites.
30
% shares for the developers |
1/2
to Ed Ryan for on-site management |
||||
1/2 to Cedar Crest LLC
for packaging and marketing |
|||||
70% for equity capital |
$1.5 million minimum for the joint
venture of Sky Valley Retreat for corporations or consumer homes based on a
sharing a common conference center and a 50 acre commons area. |
||||
Total Equity Needed |
|
$1,500,000 |
|||
|
|
|
|||
Alpine Home model |
$ 450,000 |
|
|||
Acquire Building site |
$100,000 |
|
|||
Build log home model |
$225,000 |
|
|||
Sales and advertising |
$ 40,100 |
|
|||
Overhead and contingency |
$ 20,750 |
|
|||
Total costs |
$ 385,850 |
|
|
||
Long
Range Profit Potential-
With this net revenue, the developer plans to build more Alpine Homes and to
buy the existing Spruce lodges for conversion. After these condos are
built, the developer will continue to build out the remainder of the sites.
This will bring the number of rentable units in the resort package to 36. This
will be marketed via a web site as a corporate retreat with one of two special
themes: corporate back up sites or Alpine Homes.
Common Interest Community All sold units will be part of a common
interest community either as condos or (Alpine ) Town homes. They will all
share an undivided interest in four specific assets costing up to $1,000,000
and amortized over 30 years at 7% and payable at an average monthly cost of
$166 per unit.
1. 50 acres of open space, forest, ponds, camps and gardens
for $100,000
2. Amenity Package of Clubhouse, Spa, Tennis, and Pool for
$450,000
3. Gateway Registration and staff house for $220,000
4. District Services offering a Local Area Network, water,
sewer and roads for $50,000
5. Commons area irrigation, roads, entry, lighting, picnic,
shed, tools for $50,000