Download - Banker's Hill Development in San Diego, CA
BANKERS HILL ROW HOME DEVELOPMENT
Real Estate Investment Opportunity
Confidential
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All materials and concepts herein, or provided in discussion of this presentation, belong to LIV Capital Group, its Principals and/or affiliates; and cannot be used by any other entity for distribution, re-use, marketing, soliciting, or gain without explicit permission from LIV Capital Group .
Group Investing
LIV Capital Group Offers investment
opportunities for individuals to own shares ofreal estate in San Diego. Using thecrowdfunding method, LIV Capital Groupempowers individuals to pool their money withother like-minded individuals and invest in alocal real estate project.
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Real Estate Investors
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The Real Estate Investor’s Struggle Finding Investments to place their cash for a good return
Trust Deeds
Rentals
Rehabs
Time to think “outside-the-box” If there is no inventory…create inventory
Join forces for Real Estate Ownership Reduce Capital Exposure (Diversification)
Lack of Available Financing
Economies of Scale
Shields from Liability
Typically Higher Yields
Project Summary
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Bankers Hill Row Homes– Urban Living at its Finest Building 8 Row Homes
With improved plans to start within 6 months 2 Stories over 2-car garage 2-3 Bedroom 1500-2400+ SF
Superb location on Bankers Hill Positioned in a central location of San Diego Panoramic views of San Diego Harbor Minutes from Downtown Walk to Balboa Park Minutes to San Diego Bay
Market timing couldn’t be better Low inventory No Brand New Inventory Low interest rates Ready to Build
Site & Location
Bankers Hill
Location: Bankers Hill is a long established uptown San Diego neighborhood near Balboa Park. It is borderedto the north by Hillcrest to the south, past Date Street, by Downtown to the east by Balboa Park, and the west by Interstate 5, Little Italy and the neighborhood known as Midtown.
Attractions:•Balboa Park, 1,200-acre urban cultural park in San Diego, California. In addition to open space areas, natural vegetation zones, green belts, gardens and walking paths, it contains museums, several theaters, and the world-famous San Diego Zoo•Mr. A’s, fine dining with panoramic views of downtown and San Diego Harbor•Extraordinary Desserts, decadent dessert stop for all to enjoy•Superb restaurants with many offering live music and fine dining for eclectic taste buds•Panoramic Views of San Diego Bay as well as Balboa Park
Style: •Unique, urban, vibrant culture , art-centric, hip and young at heart, •Artist’s lofts, condos, historical Victorian homes and quaint B&Bs, studios, shops scattered throughout Bankers Hill
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Location Map
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Site Location
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Current Site Views
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Site Plan
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Bankers Hill Investment
Highlights
Return On Investment 50% ROI within 18 months
Ready to Start Building in 6 months Seller’s Market
BH Inventory - Between 0-3 Months Absorption 2 homes per month Average over $500/sf
Break-Even = 16 months (Dec 2015) Upon first 5 closings
Pre-Sales/Marketing Can close within 30 days of Completion
Aggressive Online marketing SofiaLiving.com
Fit Properties.com
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Investment Ownership
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Ownership Bankers Hill 1, LLC
Real Estate
Funds Needed $1,300,000
Owners Equity Partners (Investors)
Richard Montano
Matthew Gordon
Priority Distributions Equity Paid back 1st
Timeline 16-18 months for Profits
Equity Partner
50%
Gordon 25%
Montano25%
Ownership Structure
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Bankers Hill LLC
Current Owners Retained Ownership Richard Montano 25%
Matthew Gordon 25%
Equity Partner – Investors Cash Investors
Provide equity totaling up to $1,300,000
Own 50% of project
LIV Capital Group Managers
Richard Montano
Matthew Gordon
Estimated Proceeds
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1st Distribution 2nd Distribution
Example
Invested
Amount % of Equity Return of Equity Profit
Sep-15 Oct-15
$10,000 0.38% $10,000 $5,002 50%
$20,000 0.77% $20,000 $10,004 50%
$50,000 1.92% $50,000 $25,011 50%
$100,000 3.85% $100,000 $50,021 50%
$200,000 7.69% $200,000 $100,042 50%
ROI
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Timeline
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1
Raise total Funds of
$1.3 Million
Obtain $5 Million
Construction Loan
Start Pre-Sales
Build-Out
Start Construction
First Closings
Close -Out
First Distributions
Final Distributions
2
18
17
5
9
16
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How to Invest
LIV Investment Process
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Investment Doc Review
Review Investment Presentation, FAQ & Financials
Read and Sign
Operating Agreement
Subscription Agreement
Complete for LIV investor approval
Wire Investment Capital
Cash, IRA, Real Estate, etc…
Become an Owner
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Team
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RICHARD MONTAÑO, CEO, LIV CAPITAL GROUP INC
Richard Montaño is a real estate and investment professional and entrepreneur. Over the past decade, he has founded twosuccessful real estate companies; LIV Capital Group Inc, an entrepreneurial real estate investment and advisory firm; as wellas Fit Properties, Inc, a local San Diego Real Estate Brokerage. Richard has an extensive background in identifying prime realestate, structuring capital and executing business plans through all stages of the real estate investment cycle. Richard’s keensense of asset positioning and investment capital structure has earned him the opportunity to facilitate over $100 million insuccessful real estate transactions. Richard currently manages multiple real estate investments as a General Partner, Manager,Principle, and/or Sponsor. He has created, funded and managed various types of real estate ventures that include: new homedevelopment, trust deed investments, apartment equity investments, and value-add projects. Richard earned two Bachelordegrees in Engineering and Physics, attending Pepperdine University and San Diego State University. He also obtainedhis Masters in Business Administration and is a California Real Estate Broker.
MATTHEW GORDON, DEVELOPER, LIV CAPITAL GROUP INC
Matthew Gordon is an entrepreneur in the food industry and a real estate developer with 30 years of experience working withFortune 500 Companies in distribution, manufacturing and sales. He has been a principal in over $100 million of transactionsin business acquisition and development owning over 700 apartment units. As managing partner of these investments he hasdeveloped, rehabbed, repositioned and entitled mixed use, residential and commercial property in Chicago Illinois, TampaFlorida and San Diego California. Matthew Gordon is passionate about energy efficient and environmentally friendly homes,and this is why he has implemented a host of environmentally responsible building strategies on the “Golden Hill RowHomes” project in San Diego. A few of these features are photovoltaic solar panels, high efficiency tank less water heaters,LED lighting and additional building insulation. The eco-friendly row home development, designed by H2 | Hawkins &Hawkins Architects, won a Golden Nugget Award in the Best on the Boards Multi-Family Project category at the 2010 GoldNugget Awards presented by the Pacific Coast Builders Conference at the Moscone Center, San Francisco
Current/On-going Projects
Golden Hill Row Homes
Lucia Apartments
Renew and Re-sell
Value-Add Apartments
Trust Deed
Buy, sell and originate
Non-owner occupied loans
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Current/On-going Projects
Carlsbad Town Homes
Imperial Beach Mixed Use
Mount Alice Resort & Marina
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Past Projects
Solomon Fletcher Building
Coast Hotel
Lofts at Moonlight Beach
Jupiter Building
Lofts on 4th & 5th
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Marin Building
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Alternative Exit Strategies
Fire Sale Rental Price $7.3M ($503/SF)
“Break-Even” Values ($469/SF)
Lowest Bankers Hill comparable sale ($500/SF)
Rent & Hold $2.00 - $2.25/sf
4% yield
Value $7.3M as rental
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Appraised Value
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MAI Appraisal for 7-unit parcel (August 2014)
Use of Funds
Total Capital Raise $ 1,300,000
Remaining Equity Required $ 1,172,000
Capital Costs $ 63,000
Legal/Admin $ 10,000
Reserve $ 55,000
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Budget
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PROJECT COSTS
LAND PARTNER BUYOUT 1,600,000$
PERMITS & FEES 318,956$
DEVELOPER FEES 100,000$
INSURANCE 60,000$
PROPERTY TAXES 24,000$
ARCHITECTURE & ENGINEERING 165,000$
CIVIL ENGINEERING 24,000$
TENTATIVE, CONDO & FINAL MAP 16,500$
G&A 72,000$
MARKETING EXPENSE 90,000$
MODEL MAINTENANCE 100,000$
TOTAL LAND AND DEVELOPMENT 2,570,456$
PROJECT COST PER SQ FT 177$
DIRECT CONSTRUCTION COSTS
DEMOLITION & GRADING 333,454$
MAPPING, STAKING & SURVEY WORK 28,000$
FIELD CONSULTANTS 30,000$
PARKING STRUCTURE incl
VERTICAL CONSTRUCTION 175$ 2,537,150$
CONTINGENCY 143,530$
TOTAL DIRECT CONSTRUCTION 3,072,134$
DIRECT COST PER SQ FT (BASE COSTS) 212$
FINANCE COSTS 5,200,000$
CONSTRUCTION LOAN INTEREST 9.00% 491,400$
ORIGINATION FEE 1.00% 52,000$
CONSTRUCTION LOAN POINTS 1.50% 78,000$
LOAN CLOSING COSTS -$
COST UNDERWRITTING... Fixed Fee 30,000$
TOTAL FINANCE COSTS 651,400$
VARIABLE COST PER SQ FT 45$
SALES COST BELOW THE LINE
SALES COMMISSION 4.00% 298,000$
CLOSING COSTS 1.00% 74,500$
WARRANTY 0.17% 12,293$
LENDER EXIT FEE 1.00% 74,500$
RECONVEYANCE FEE 2,500$
TOTAL SALES COSTS 461,793$
SALES COSTS PER SQ FT 32$
TOTAL COSTS 6,755,783$
Floor Plans: Level 1
Floor Plans: Level 2
Floor Plans: Level 3
Available Reports
Appraisal*
3rd Party Construction Estimate
Construction Documents
Budget*
Approvals/Entitlements
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* Present in this package (part or in whole)