Land Subdivision Project

Transcription

1 Land Subdivision Project Seeking $700,000 investment to subdivide and clear conditions for the subdivision of Four one acre flat lots with stunning Jetliner views over Granada Hills, Aliso Canyon, and the San Fernando Valley. Solid Principal Position. Strong Return.

2 Executive Summary Land Deal We are acquiring an interest in a five acre site in Granada Hills. The site is a flat lot with jetliner views over the San Fernando Valley. The parcel has a Tentative Tract map and Conditions of Approval to subdivide the parcel into five lots. We will process the subdivision and satisfy the Conditions of Approval in order to finalize the subdivision and acquire 4 of the 5 lots. We are buying the 4 lots for $900,000 that will have a subdivided value of at least $560,000 (See attached comps on page 3 to support this valuation.) $560,000 x 4 lots: $2,240,000 Purchase Price: $900,000 Costs to clear conditions: $475,000 We have negotiated a no interest seller carry situation where we will put only $225,000 down then process the subdivision. We will make a second principle payment of $225,000 in 8 months and the balance of $450,000 when we sell. We are offering 25% equity to participate in the first round. First round will consist of $700,000 total investment and will produce approximately 31% ROI in about 12 months. In 8 months we will arrange additional financing whether through additional equity or debt. Current investment members will have the first right of refusal at this funding. In the event that we keep the lots or any combination of the four, your equity participation will increase from 25% to 35%. On the same street similar buildable lots with similar (but inferior) views have sold for $500,000 (see attached sold comps for lots). These were sold in 2009, a time when the market was at its lowest. Another lot just down the street with no view sold for $560,000 just over a year ago. If we develop the lots each house should sell for about $2,200,000. Land Basis: $345,000 Costs: $1,080,000 $50,000 minimum investment.

3 Land Comps Land Comps Mayerling St Granada Hills, CA Sold: $560,000 Zone: LARE 20 Sale Date: 11/7/13 Size: 0.79 Acres Entitled: Yes Notes: Property does not have a view. Located only a few blocks away Longacre Ave Granada Hills, CA Sold: $500,000 Zone: R1 Sale Date: 9/22/09 Size: 0.94 Acres Entitled: Yes Notes: Property is on same street. Similar but inferior views. Sold at the bottom of the market Longacre Ave Granada Hills, CA Sold: $500,000 Zone: R1 Sale Date: 9/22/09 Size: 0.95 Acres Entitled: Yes Notes: Property is on same street. Similar but inferior views. Sold at the bottom of the market. Based on the above comps we believe our property, sold in today s market would sell for a higher valuation than $560,000. *We are acquiring lots at $286,000 for each. It will cost approximately $100,000 to complete the subdivision and implement conditions of approval to build

4 Comp Map Land Comp Map & Longacre Ave Both sold for $500,000 Both sold on 9/22/ Mayerling St Sold: $560,000 Sale Date: 11/7/13

5 Location Map Location Map LOT 4 Lot 1 Lot 2 Lot 3 Lot 4

6 Location Map Location Map

7 Sold Comps Sold Comps Comp # 1 Price per SqFt: $ Knoll Hill Smaller Lot Granada Hills CA Has Views Sold: $1,795,000 Sold Date: Pending Year Built: 2014 Lot Size: 0.63 Acres Comp # 2 Price per SqFt: $ Longacre Ave Same Sized Lot Granada Hills CA Private Driveway Sold: $2,775,000 Over Built for Area Sold Date: 11/29/13 Similar view Year Built: 2013 Lot Size: 0.94 Acres Comp #3 Price per SqFt: $ Knoll Hill Smaller Lot Granada Hills CA Sold during weaker market Sold: $1,950,000 Rooftop views only Sold Date: 9/29/11 Year Built: 2009 Lot Size: 0.46 Acres Comp #4 Price per SqFt: $ Knoll Hill Smaller lot Granada Hills CA Sold during weaker market Sold: $1,850,000 Rooftop views only Sold Date: 4/23/10 Year Built: 2009 Lot Size: 0.46 Acres Comp #5 Price per SqFt: $ Knoll Hill Smaller lot Granada Hills CA Sold during weaker market Sold: $2,100,000 Rooftop views only Sold Date: 8/31/09 Year Built: 2009 Lot Size: 0.63 Acres

8 Comp Map Comp Map

9 Photos Photos Lot view facing south Lot view facing south Lot view facing North The Horse Corral The road leading to the lots

10 Company Overview TWELVESTONE CAPITAL GROUP The Team Matt Skinner Twelvestone Group Matt Skinner is the president and founder of Twelvestone Group, Inc, a private equity group specializing in real estate investment. Matt is an award winning custom home builder for projects in Bel Air and Beverly Hills, CA. Matt is a successful real estate developer (condos, shopping centers, office buildings, and custom homes) and owns cash flowing apartment buildings in several states. Greg Cullen Harvard Investment Group Greg Cullen is the president and founder of Harvard Investment Group (HIG) and has extensive investment banking and venture capital experience. Founded in 1995, HIG has made direct investments and provided consulting services to start-ups and business ventures. Since its inception, HIG and Mr. Cullen have been the lead investor in dozens of transactions with a combined value of approximately $100 million. Mr. Cullen earned an MBA from the Harvard Graduate School of Business, and received a BS (Magna Cum Laude) in Mechanical Engineering from Rose Hulman Institute of Technology.

11 For more information about investing in this development project please contact Matt Skinner (818)