$180,000+ Intaglio RV Resort Hwy 72 btwn Vicksburg & Bouse, La Paz County, Arizona. BRAND NEW 188 Unit Luxury RV Resort BULK LOT SALE

Transcription

1 BRAND NEW 188 Unit Luxury RV Resort BULK LOT SALE Intaglio RV Resort Hwy 72 btwn Vicksburg & Bouse, La Paz County, Arizona $180,000+ Offering Summary Price: $2,850,000 Price/Lot: $30,000 Minimum Investment $180,000 = 6 lots x $30,000 each Guaranteed 12% return -7% Lease Back Agreement -5% repurchase price appreciation An Under-Served RV Market An Under-Served RV Market with 95+% Campground Occupancy during season Only 8,500 Campground Sites Exist 1,000,000 visitors desperately need a place to park with modern day amenities Many visitors have no choice but to dry camp in the desert without any hookups or security available Property Highlights Big Rig Friendly - Large, spacious lots with options to customize 5 Star Luxurious Amenities - - Clubhouse, markets, dog friendly, concierge services, pool Activities and Socializing - Sports lounges, billiards and craft rooms, dancing etc. Laundry Facilities Linda Gerchick, CCIM Associate Broker Office: Linda@JustSoldIt.com Carrick Sears, MBA, CCIM Senior Associate Office: Carrick@JustSoldIt.com

2 Table of Contents Executive Summary The Project.... La Paz County RV Demographics.. Investment Objectives Current Dry Camping Illustrates the Need The Investment The Intaglio Design Elements Management Luxury Casita Views Development Map Why Arizona?

3 Executive Summary Intaglio Resort Communities, LLC was formed in July, 2011 to acquire two parcels totaling 57 acres of undeveloped real estate located in central La Paz County (the Property ) and develop, rent and sell RV lots on the Property. La Paz County, Arizona is a very popular RV destination for winter visitors. Numerous RV ers come to La Paz County, Arizona each winter to take advantage of the mild winters and the other amenities of Arizona. Exhibit A shows the location of the Intaglio RV Resort in western Arizona. The Project Funding plan is to raise $3 million by selling 100 lots to Bulk Lot Buyers at $30,000 per lot under Arizona s bulk sale lot rules. A bulk Lot Buyer must buy a minimum of six (6) lots to qualify. The lots will be improved by agreement with Intaglio and leased back by Intaglio at a 7% of principal rental rate. Intaglio will offer all lots for sale to retail customers, and will buy back the lots from Bulk- Lot Buyers under a Re-Purchase Agreement. A 5% annual Lot Premium will be added to the original purchase price to be paid at close of escrow to the Bulk-Lot Buyer at time of resale. All Bulk-Lot Buyers will receive their lots free and clear of all debts or encumbrances and in fee simple at the time of their purchase. The Robinson Group 3

4 The Project The Project: Intaglio is a pre-construction phase RV resort to be built along Highway 72, approximately 12 miles from the Vicksburg exit of Interstate 10, in La Paz County, Arizona. It is located 30 miles from Quartzite, AZ, and approximately 37 miles from Parker and the Colorado River. Situated on 57+ acres, the entire Property can support an estimated 250 RV lots. Phase 1 resort construction will be for the 188 lots that have received Final Plat by La Paz County. Final construction permit approval from the Arizona Department of Water Quality and the Arizona department of Environmental Quality for the water delivery and wastewater treatment facilities is in process. RV lots will be sized from 35 wide by 75 in length and 50 wide by 90 in length. A full array of amenities, including pool, spa, clubhouse, bocci and shuffleboard courts, Wi-Fi, a fitness center, bath and laundry facilities, and pet-friendly accommodations will be provided. The RV lots will be available for sale and for rent on a continuous basis. The RV Resort Industry and Critical Success Factors: While there are numerous segments to the RV resort industry, including famous rental chains such as Kamp Grounds of America (KOA), Thousand Trails, etc. and club affiliations such as Good Sam Club, the segment of the market being targeted by Intaglio is the luxury Big Rig ownership and rental market, which has gained and maintained significant market momentum in the last several years. The market for luxury motorhomes (over $100,000 purchase price) has changed significantly over the last decade. Bigger coaches (up to 45 feet) with multiple slide-outs and large turning radiuses make the lot dimensions critical and the ease of entry and exit important. Resort cleanliness, safety, amenity package and location are also critical to a resort s success. The current buyer for RV leasehold lots is an affluent motorcoach owner, who generally has significant disposable income, as a number of RV lots purchased are for cash. Pictures are Conceptual Photos Only, not yet constructed (Actual may differ from what is shown.) The Robinson Group 4

5 La Paz County RV Demographics La Paz County RV Demographics: The Intaglio RV Resort is located in one of the highest profile destination RV corridors in America. Hundreds of thousands of Snowbird RV enthusiasts descend on Arizona, and the Colorado River corridor from Lake Havasu to Yuma each winter. They are primarily retirees and retiring baby-boomers. They come for the world-famous Quartzsite RV and gem shows, and stay for months at a time. They often travel with friends, affiliated with a large array of clubs from coach owners clubs (Monaco, Fleetwood, Winnebago, Country Coach, Allegro Coach Owners groups) as well as numerous other club affiliations. La Paz County currently has 8,000 RV sites, mostly in the rental park category. The La Paz County Chamber of Commerce reports some 4 million RV visitor nights consumed each year. Any one who has ever passed through Quartzsite in January, February or March has noticed thousands of RV s parked in the desert, dry-camping on BLM land, without the benefit of hook-ups (electric, water, sewer). Finally, the majority of the RV rental parks in La Paz County are older parks, with narrow, shorter RV sites, often difficult to access, and in some cases built many years ago, without the benefit of modern Wi-Fi connections and 50 and 100 amp electrical services, and modern bath houses with separate bathrooms. It is immediately obvious to an RV er when he or she has entered a modern park or an older park. We believe that the clear advantage in the RV resort lot sales and rental market goes to the newer parks designed around the new requirements of the modern, luxurious, Big Rig RV er. The Robinson Group 5

6 Investment Objectives Principal Investment Objectives. The primary investment objectives are: (1) complete all preconstruction permitting, including obtaining final plat and construction permits, waste water treatment plant permits, water service delivery permits, and ingress and egress permits for up to 100 RV lots; (2) to provide the funding necessary to complete the construction of 100 RV lots, including the required water and waste water facilities and the required ingress and egress from Highway 72. Lease Back and Re-Purchase Agreements: Intaglio will enter into a Leaseback Agreement with each Bulk-Lot Buyer to lease the lots for a 7% annual return of $2,100 per lot based upon a $30,000 per lot purchase price. Intaglio will then lease the lots through the resort rental program until re-purchased under a Lot Re-Purchase Agreement with Intaglio. The Repurchase Agreement will provide for a 5% premium per year over the original purchase price of $30,000 per lot. Based upon a $30,000 purchase price per lot, Intaglio will repurchase the lots at a $1,500 per year premium The combined return on investment to Bulk-Lot Buyers from the Intaglio Leaseback Agreement and the Lot Repurchase Agreement totals 12% per year. Big Tent City illustrates demand Quartzite during camping high season The Robinson Group 6

7 Current Dry Camping Illustrates the Need The Robinson Group 7

8 The Investment Request: Intaglio Resort Communities, LLC, an Arizona Limited Liability Company, is seeking to raise $5,500,000 to develop a 188-unit luxury Recreational Vehicle ( RV ) resort on 57 acres currently owned by INTAGLIO. The resort is located in the winter snowbird mecca of western Arizona, just 30 minutes from world-famous Quartzsite, AZ, in La Paz County. $3,000,000 of capital is to be raised by selling blocks of lots to wholesale purchasers under Arizona s Bulk Lot regulations. ( Bulk Lot Buyers). An additional $2,500,000 is to be borrowed from an approved Regional Center who obtains funding under the EB-5 Immigrant Investor Program ( EB-5 Program ) from foreign investors. Purpose: The purpose of this funding is to complete the build-out of the first 100 lots for sale to Bulk Lot Buyers from the proceeds of sales and to build an additional 35 lots to support the EB-5 loan from the loan proceeds, to construct the clubhouse and amenities, as well as to install the roads, power, water and sewer system as part of the approved plat for the 188 unit RV resort. Background: The management of INTAGLIO has been working on this development for over four years and has a personal investment of $1.5 million invested to date. The land has received Final Plat approval from the La Paz County Board of Supervisors, has been rezoned as Rural Community (allowing for up to five dwelling units per acre), and secured the RVS zoning designation allowing for a resort community for permanent RV occupancy. Management has also received a 208 Discharge permit from the Arizona Department of Environmental Quality (ADEQ) and is in process of ADEQ approval for installation and operation of the Waste Water Treatment Facility as well as in process of certification of Adequate Water Supply for 100 years from the Arizona Department of Water Resources (ADWR). La Paz County officials are enthusiastic about the project and both the planning and zoning department and the County Supervisors approved the Final Plat, the Comprehensive Plan amendment and the RVS zoning unanimously. The site of INTAGLIO is located in a strategic location in the center of an ever-growing RV market. In excess of 1,000,000 winter snowbird visitors come to La Paz County, Arizona each year, many of whom visit the Quartzite RV and Gem shows each winter (only about thirty minutes from INTAGLIO). Supply of existing RV lots is scarce, especially lots that are designed for the newer and wider vehicles whose owners prefer larger spaces and RV parks with security and modern day amenities and services. Security: The Bulk Lot Buyers will receive their 100 lots free and clear of all debt, and in fee simple ownership. No encumbrances or debt will be associated with any of the lots. The improvements to each lot will be completed by agreement with Intaglio. The lots will be leased back from Bulk-lot Buyers by Intaglio and placed in the Intaglio Resort rental pool. Intaglio will also repurchase the lots from the Bulk-Lot Buyers by offering the lots for sale to retail buyers. The EB-5 loan will hold a Note first deed of trust on the 35 RV lots built with their funds, as well as 5 acres of commercial land and approximately 20 acres of vacant land remaining in the 57 acre project. No liens or encumbrances will apply to the 100 lots sold to Bulk-Sale Buyers. Exit Strategy: Bulk-Lot Buyers will receive an annual lot rental fee equal to 7% per year on their lot purchase price from the Intaglio Leaseback program. In addition, Intaglio will pay a 5% per annum lot premium at the time of lot repurchase by Intaglio at the time of lot resale to retail customers. Total return on investment is 12% per year from a combination of lot leaseback income and lot repurchase premium from Intaglio. The Robinson Group 8

9 The Intaglio Design Elements Sales of RV lots can be often enhanced by a modern park design that also has an attractive rental component. Try before you buy is a way for RV ers to find their new home away from home. Sites must be easy to turn into, as well as a number of pull-through sites that allow an RV er to keep his tow vehicle (dinghy) attached to his or her coach as he pulls-into his site. Back-in sites are often chosen by longer-term residents for ownership use, but having a selection of convenient Pullthroughs where a driver does not have to back-up or disconnect for entry and exit from the lot, makes a rental park attractive to the visitor. RV ers (especially Baby Boomers) who purchase sites are expecting Management to re-rent out their site when the owner is not in residence. Many RV sites are sold as investments and have appreciated well for their owners over time, in addition to providing a home to return to. We believe that the keys to Intaglio s success is based upon the following general criteria: 1) An underserved market in western Arizona for big-rig friendly sites. The majority of the 8,000 RV sites in La Paz County are sub-standard parks, offering sub-standard accommodations for the new breed of affluent, big-rig RV er. By sub-standard we mean the sites are short, narrow, hard to access, the streets are narrow, electric service amperage is low (30 amp vs. 50 and 100 amp), sites are gravel or dirt, clubhouse and amenities are aged or non-existent, and/or mobile homes and park models are intermixed with RV ers. 2) A modern design, featuring wide and long sites to accommodate the wider, longer Big Rig coaches which have multiple slide-outs. 3) Angled entry and exits points to wide streets to accommodate easy entry and exit of the longer rigs with tow vehicles. Pull through sites are also required for many big rig owners. 4) Sites large enough to customize with Casita, Fireplace, and Outdoor kitchen options. 5) Modern bath-houses that offer separate bathrooms for use. 6) Pet-friendly accommodations, with multiple pet exercise areas. 7) Modern, flexible amenities to accommodate the industry trend to group and club rallies. 8) WiFi and technology wise hook-ups. 9) Green technology usage, such as Leeds approved building materials and solar options. 10) The generous use of gathering spots, such as Ramadas, Barbeques, and fire-pits. 11) No intermixing of mobile homes or trailers or park models with developer offered casitas, etc. 12) The RV Lot is a fee simple lot ownership. A Homeowners Association will be formed to take over operations of the Resort from the development team after the resort is fully constructed. The Robinson Group 9

10 Management Daterra Properties, LLC, is the Manager of Intaglio and the Project. The Management Team consists of the following: Wayne A. Portanova, age 63, through Portanova Properties #1 LLC, an Arizona Limited Liability Company. Mr. Portanova has been active in real estate investments, development and lending for his personal portfolio for over twenty years. He also is an experienced entrepreneur having built a privately owned geothermal electric utility that sold power to Provo City and other Utah municipal governments. He received an undergraduate degree Magna Cum Laude in economics from Harvard College and a Masters in Business Administration with High Distinction from Harvard Business School. Mr. Portanova is a licensed real estate agent in the state of Arizona. Alan Dahms, age 65, through ALD Investments, LLC, an Arizona Limited Liability Company. Mr. Dahms has been active in commercial real estate acquisition, sales, rentals and rehabilitation since He is currently active in marketing and sales of investment properties and land development in Arizona. From 1993 to 2006 he owned a large retail dry cleaning facility in Scottsdale. Mr. Dahms is a licensed real estate agent in Arizona. The Robinson Group 10

11 Luxury Casita Views Options such as these may be built on Selected "Casita Sized Lots. Pictures are Conceptual Photos Only, not yet constructed (Actual may differ from what is shown). The Robinson Group 11

12 Development Map The Robinson Group 12

13 Why Arizona? Please allow us to introduce you to one of the fastest growing states in the US! Arizona has long been famous for its breathtaking beauty and its healthy climate. With an annual rainfall of approximately 7 inches, Arizona boasts sunshine nearly 325 days a year. From one end of the state to the other, Arizona is filled with wonderment. In the north you will find snow-capped mountains and the awesome beauty of the Grand Canyon while the southern area is home to the Sonoran Desert. In the middle you will find places of unequalled beauty such as Oak Creek Canyon and Sedona, the Painted Desert and Monument Valley. Because elevations in Arizona range from 70 feet on the Colorado River to 12,633 feet on Humphrey s Peak, one of the San Francisco Peaks (near Flagstaff), it is possible on any given day for the coldest or the hottest temperature in the United States to be recorded in Arizona. Not only is the climate conducive to great outdoor living, but the absence of such natural disasters as earthquakes, hurricanes and tornados make life in Arizona extremely rich. It is one of the few places on earth where one can drive to the ski slopes, spend a few hours skiing and taking in the amazing scenery of the Flagstaff area, then jump back into your car for the 2-hour drive back to Phoenix in the Valley of the Sun where the mean year-round temperature is a balmy 82 degrees. Arizona has been rated as the fastest growing state in the nation. It has the second best job growth and the second best GDP growth in the US. It boasted the lowest unemployment rate in the US during the boom years of 2006 and even during the 2009 recession had an unemployment rate that was below the national average. The population grows by about 100,000 people a year, with 2/3rds of the growth coming from net in-migration. These productive newcomers are immigrating to Arizona for many and varied reasons. However, with clean air, open spaces, sunshine in abundance and a booming economy, why would anyone chose another place to live or to have a second home? Arizona s natural beauty, its diversification in climate and terrain, and its continuous strength in economic growth are some of the reasons that Arizona s phenomenal growth rate is forecasted to continue for years to come. Only a small percentage of Arizona is private land, and an even smaller percent- age remains available for development. The State of Arizona contains an estimated 72,931,000 acres, or approximately 113,417 square miles, making it the sixth largest state in the United States. The surface land owner- ship in Arizona can be classified into four basic categories, as illustrated in the pie chart to the right. The percentages are estimates derived from digitized map data. The category called Private is overestimated due to the inclusion of small amounts of land owned by local, State, and Federal agencies. Maricopa County (the county than encompasses the metropolitan Phoenix area has a Median Family income greater than the US average. Contrary to popular belief, Arizona is not full of retirees the population over age 65 makes up only 11% of the population and the median age is 35. The Robinson Group 13