HomeMy WebLinkAbout01.04 ProjectionsRpr 02 00 01:44p
Jack,
Here is the information you requested. If there are any questions regarding the different
areas, please tail.
Basis:
Acquisition Price
Projected Development Costs
Commissions
(5-6% based on sales of $7.5 million)
Total Investment
$1,776,000
S 528,843
$ 450.000
$2.754,843
Projected Development Costs:
Loan is based on 70% ban to value
1% origination fee 5 1,243
Appraisal S 1,000
Interest (10%) 24 months S 248,000
Credit Fees 5 300
Closing/Recording 5 300
Taxes 7 Agric. (2000-2001) S I3,000
Land Planner/Survey S 40,000
Roads. Utilities, Ponds (shared expense) 5 150,000
Legal. Accounting, Insurance $ 25.000
Total estimated costs S 528,843
The project, The Roaring Fort: Preserve silo.:ld be ready to sell within six months
according to Land Planner, Dave Michaelson. We will be joining in the preliminary
application with George Kilby who acquired the 40, acre parcel to the north and west of
our 90 acres.
Itis our.intent to subdivide into 10 -acre parcels with the exception of one 16 -acre parcel
being deeded :o Mike Gerbaz, nephew of Dennis Gerbaz, the selle.r.
The property is already currently zoned in the master plan for 10 -acre sites, Since there
;use 9 development units the property will be divided into seven 10 -acre sites, one 4 -acre
site and one I6 -acre site bringing the total to 90 acres.
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The project should sell quickly because of these features:
1. River frontage or access
3. Flat useable sites
3. Large Ponderosa Pines, Cottonwoods. Blue Spruce and Poplars
4 Great sunlight
S. Spacious views
6. Secluded and private sites
7. ".Vater features, senior water rights
8. Auxiliary caretaker units allowed on property larger than 3 acres
9. Open spaces created by establishing building envelopes and pastures
10. Horse property
11. Ease of access off of county road
12. Proximity to Carbondale
Selling Prices:
Total Acreage
70 7-10 acre sites, including river and water features, caretakers unit. S6,265,000
Average selling price $895,000 per 10 acres
4 1-4 acre site on river $ 795,000
16 L-16 acre site to Miice Gerbarincphew $ -0-
90 9 development units $7,060,000
The effective cost to us is $24,000 per acre because of an agreement to deed 16 acres
back to Dennis Oerbaz's nephew, Mike Gerbaz after the infrastructure and approvals are
completed. Mike Gerbaz and George Kilby are to share in proportionate costs of roads
and utilities based on the percentage of ownership.
Absorption Rate:
The Roaring Fork Preserve project should have a total sell out within 18 months.
After the approval process of approximately 6 months it will he possible to secure
contracts. The strategy in marketing is to sell 3 parcels quickly so the debt can be retired
as soon as possible. St. Firutbar is releasing lots for sale this spring; a 5 -acre parcel is
priced at $725,000 with river access. Once they have sold 2 parcels they plan ou
increasing the prices by 10%.
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It is becoming more difficult to firma prime pieces of property on the valley floor.
Because this property was homesteaded, never was formally 1i.tcd and yet received
multiple offers, the demand for this type of property is clearly demonstrated. Combined
with the incredible water rights (6 feet), it will never be duplicated.
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