Description. Theobold & Company Realty, LLC, a Broker Entity, Broker Opinion of Value for buyers purchase and investment

Transcription

1 Prospectus Brokers Opinion of Value Buyers Purchase & Investment Value Proposal Prepared for: Brokers Opinion of Value Buyers Purchase & Investment Value Prepared by: Prepared for: Owner: Owner: Buyers & Investors Joy Tabernacle Broker Entity Theobold & Company Realty, LLC Board Albert of Trustees Roy Tibbs, Jr. Managing Director CEO Nigerian P. O. American Box Multicultural Sugar Land, Council TX NAMC Phone Joy Tabernacle Description Prepared by: Broker Entity Theobold & Company Realty, LLC Albert Roy Tibbs, Jr. Managing Director CEO P. O. Box Sugar Land, TX Phone Theobold & Company Realty, LLC, a Broker Entity, Broker Opinion of Value for buyers purchase and investment June 10, 2018 return value for use and development of acres or 644,836 sq. ft. of developed and undeveloped land including two buildings of 34,997 sq. ft. total building space. Proposal Number: Copyright 2018 by Theobold & Company Realty, LLC under Section 107 or 108 of the 1976 United States Copyright Act.

2 June 10, 2018 Dear Buyer & Investor: The acres at 3420 Almeda Genoa Road, Houston, TX is a prime location for business and development. Theobold & Company Realty, LLC started business twelve (12) years ago in Fort Bend County. We are proud of the service that we provide and we have been very successful. Theobold & Company Realty, LLC have now developed or aided in developing and sales of over 4,000 acres in Fort Bend, all with excellent turn-around time and good benefit. Please be aware that developing your land without the services of an experienced specialist could cost you time, aggravation and most importantly a large portion of your profits. Development is a costly, time consuming investment. That s where we come in. Our experience with sales and development in Harris County, our knowledge of sales in investment portfolios and our proven ability to contract all phrases of the development including excavation through completion in a timely fashion makes us the obvious choice for a real estate partner. We pride ourselves on our hard work and not only our ability to get the job done, but the ability to get it done right. I ve attached a purchase and development proposal for you to browse through. It is by no means all inclusive, but it should give you a better prospective on what our vision is for the property and the costs and benefits involved. Sincerely, Albert Roy Tibbs, Jr. Managing Director CEO ALBERT ROY TIBBS, JR. - OWNER AGENT P.O. BOX SUGAR LAND, TX atibbs.theoboldrealty@gmail.com o

3 Table of Contents Executive Summary Purchase Summary Cost Summary Subject Property Comparative Market Analysis Location Map Comparative Development Analysis Risk Analysis Disaster Recovery Plan Location Analysis Investor Recovery Plan

4 Executive Summary The Objective Purchase the Property for immediate use and develop vacant land for Residential Retail Center at 3420 Almeda Genoa Road. Need #1: Purchase and Permits Need #2: Short-term investment money to complete development. Need #3: Experienced developer and general contractor. The Opportunity To lease space, operate revenue stream and develop 5 to 7 acres of vacant land into Residential Retail Center. Goal #1: Gain platting and permits from Harris County. Goal #2: Access to liquid investment money for all phases of development, i.e., Investors, grants, land lease and parcel sales. Goal #3: Find a reputable, reliable developer/contractor. Goal #4: Establish a Non-Profit CDC and/or LLC for Investment or Trust (Holdings). The Solution Hire a Construction Development Company (CDC) to meet all your needs and goals. Recommendation #1: Allow CDC to review zoning, platting and license paperwork before submitting to Harris County. Recommendation #2: Partner with CDC to get a short-term investment loan. Recommendation #3: Contact with CDC for all phases of development.

5 Purchase Summary PHASE I COSTS: PRICE Sales Price Cash at Closing Financing Escrow Closing Cost $8,000, $7,990, $10, $8, Total Phase 1 Costs $8,008, PHASE 2 Income: Child Care Surplus Income Seller Lease Back Surplus Income Immediate Leasable Space Surplus Income Renovated Lease Space Building 2 Surplus Income $1,265, $300, $271, $379, Total Phase 2 Income $2,215,758.60

6 Purchase Summary Continued PHASE 5 COSTS: PRICE Build-out Building 2 Hard Cost Daycare Hard Cost 2 Liability Insurance $600, $150, $14, Total Phase 5 Costs $764, TOTAL COSTS $764, TOTAL SALES FORECAST TOTAL PROFIT FORECAST $2,215, [ann.] $1,451, [ann.]

7 Cost Summary PHASE I COSTS: PRICE Cleaning & Grubbing Surveying, permits, licenses Utilities Paving Detention MUD Annexation Engineering Costs $68,159 $40,000 $504,735 $270,947 $219,212 $100,000 $278,596 Total Phase 1 Costs $1,481,639 PHASE 2 COSTS: Site Construction - Three Story Apartment/Retail $4,300,000 Total Phase 2 Costs $4,300,000 PHASE 3 COSTS: Site Construction, Retail Center $1,271,925 Total Phase 3 Costs $1,271,925 MISCELLANEOUS COSTS: Liability Insurance Reimbursables $6,000 -$637,384 Total Miscellaneous Costs $6,000 TOTAL COSTS $6,422,207 TOTAL SALES FORECAST $8,617,715* [1 st yr/sf. ann. rt*] TOTAL PROFIT FORECAST $2,195,508 [1 st yr/sf. ann. rt*] Standard Disclaimer: The numbers represented above are to be used as an estimate for the projects discussed. The above Cost Summary does in no way constitute a warranty of final price. Estimates are subject to change if project specifications are changed or costs for outsourced services change before being locked in by a binding contract.

8 Subject Property Standard Disclaimer: The numbers represented above are to be used as an estimate for the projects discussed. The above Cost Summary does in no way constitute a warranty of final price. Estimates are subject to change if project specifications are changed or costs for outsourced services change before being locked in by a binding contract.

9 Subject Property Standard Disclaimer: The numbers represented above are to be used as an estimate for the projects discussed. The above Cost Summary does in no way constitute a warranty of final price. Estimates are subject to change if project specifications are changed or costs for outsourced services change before being locked in by a binding contract.

10 Subject Property Standard Disclaimer: The numbers represented above are to be used as an estimate for the projects discussed. The above Cost Summary does in no way constitute a warranty of final price. Estimates are subject to change if project specifications are changed or costs for outsourced services change before being locked in by a binding contract.

11 Subject Property

12 Comparative Market Analysis Sale Land Retail/Commercial No. 1 Standard Disclaimer: The numbers represented above are to be used as an estimate for the projects discussed. The above Cost Summary does in no way constitute a warranty of final price. Estimates are subject to change if project specifications are changed or costs for outsourced services change before being locked in by a binding contract.

13 Comparative Market Analysis Sale Land Retail/Commercial No. 2 Standard Disclaimer: The numbers represented above are to be used as an estimate for the projects discussed. The above Cost Summary does in no wa constitute a warranty of final price. Estimates are subject to change if project specifications are changed or costs for outsourced services change before being locked in by a binding contract.

14 Comparative Market Analysis Sale Land Retail/Commercial No. 2 Standard Disclaimer: The numbers represented above are to be used as an estimate for the projects discussed. The above Cost Summary does in no wa constitute a warranty of final price. Estimates are subject to change if project specifications are changed or costs for outsourced services change before being locked in by a binding contract.

15 Location Map

16 Comparative Development Analysis

17 Comparative Development Analysis WEST VIEW RIVEROAKS

18 Comparative Development Analysis CROSSON S CORNER

19 Risk Analysis Housing Market Slump Analysis: While local experts see housing markets drop elsewhere in the country, the Houston area including Houston/Pearland local market is actually increasing at record rates. The risk is that the rates won t hold, thus causing homes to be sold for slightly lower and take longer to sale. However, if the market continues to climb at its present rate, we could also see a profit increase. Resolution: Contingency: Understand that the market is flexible and that higher rates of return cannot be guaranteed. No contingencies exist for this risk. Higher Than Anticipated Costs Analysis: With the rising cost of fuel and the high costs of lumber and steel supplies costs increase could impact profits. Resolution: Contingency: Include foreseeable price increases in the budget. The detailed budget has included a cushion of $100,000 respectively for this contingency. Changes In Development Plans Analysis: A risk does exist that the Developer will hit unforeseeable roadblocks that will require additional county approval and development. Resolution: Plan for contingencies, explore possible roadblocks and alternative plans, and remain in open communication with the county. Contingency: The detailed budget has included a cushion of $200,000 respectively for this contingency.

20 Disaster Recovery Plan Listed below are the disaster recovery methods we propose to ensure continuity of development. The development timeline will include some cushion for these potential problems. Supply Failure In any development project, the failure for supplies to show up on time can create disaster by pushing back timelines, which could interfere with sub-contracting and/or licensing/permits. Developers have worked with several large suppliers in the past. They order supplies early so that if one supplier has an unforeseen problem, they can buy from the next supplier. Developers have never experienced all suppliers being unable to ship supplies that s needed. Careful planning tends to mitigate the problems with supply failure. In the event of a supply failure, developers do have alternate suppliers. Compliance Failure Inexperienced contractors can sometimes get into volatile compliance issues with county planners or engineers, thus either delaying or even stopping development. Developers work with two county engineers and the county planners for this purpose. Developers are wellversed on county requirements and have a good working relationship with the county. Furthermore, they supervise all sub-contractors to make sure compliance is never an issue. In the event of a compliance failure, developers would work immediately and directly with the county to resolve the issue. Sub-Contractor Failure Perhaps the most common disaster in development is the failure for sub-contractors to complete their work on time, thus leading to budget problems and sequential delays. Developers works only with a select group of sub-contractors. They require that sub-contractors have no other contracts open during development, and impose contractual penalties for work not done on time. In the event of sub-contractor failure, except for reasons beyond control (i.e. thunderstorms, fires, acts of God, etc ), developers will enforce their contractual right to hire a contractor who can finish the work, if such a contractor is available. If no contractor can be found in a timely manner, developers will exercise its contractual right to penalize the sub-contractor monetarily.

21 Location Analysis Theobold & Company Realty has performed a thorough location analysis. Following are the results Almeda Genoa Road Houston, TX Location: Current developed and undeveloped lot as track of The Minnetex Place Development in Houston, TX. The land is 11.8 miles and 22 minutes from downtown Houston, in a peaceful, suburb setting. The acreage is still surrounded by trees. The surrounding communities are built within the natural wooded and tree lined area of southeast Houston just north of Pearland. Security: Security in the area has never been an issue, though developers do use typical construction security measures, such as portable fencing. Infrastructure: The County will allow development with restrictions on the number of overweight trucks used on the road. The developer must apply for special permits for access, and will be required to pay for assessments by the county, Including sidewalks and road improvements. Demographics: Houston is a rapidly changing city that makes up part of The Medical Center South/Pearland area. Medical and Industrial companies are building in the area. The job market has been climbing steadily over the past few years as the PUD has enticed tech businesses to locate here as well. The quality of life here, coupled with an expanding job market and a tight housing market have all combined to increase property values a record 20% in the last two years. Competition: The limited number of Residential Retail Centers will contribute to drive competition down in the selling phase of development, but competition to get the permits is high. Developers who have worked with the engineering firms on a high number of projects and done so in a professional manner, generally get approval for projects if they present them early. Marketing: agreement with Marketing during both the development and selling phases will be done by signing a listing Theobold & Company Realty, LLC for this specific project.

22 Investor Recovery Plan Investors always have as their discretion a Recovery Plan. This is a preplanned strategy or options to recover from any investment. While this list of recovery options are not necessarily a complete list of all possible options. No guarantee is made as to the best option for this project or conduct accurate for your current need or desire. Simple Buy Out Seek a buyer for the property at the base price of the investment cost. This can be accomplished through marketing, by listing agreement with Theobold & Company Realty, LLC. Flip The Property Seven (7) Acres This is a quick sale of the property at a profit increase of 38% - 48% of the base investment price. Market Sale The property can be marketed for the general Harris County Commercial appraised value at the time of sale targeted to investors with an interest in development. In this case the process could include three to six months and include half payment upon sale and half payment upon completion of Phase 2 of the project (projected two months). This is heavily weighed on market or a private investor.