project description red fox run is a luxurious and maintenance free living community for active...
TRANSCRIPT
Project DescriptionRed Fox Run is a luxurious and maintenance free living
community for active adults, 55 and older, in Longmont, Colorado.
• Red Fox Run will include 32 new homes when complete:– Two buildings will be a triplex model– Twelve buildings will be duplex model– Existing house on property will be separated and modified to become a club house and single family home
Project Location: 12121 Saint Vrain Road
Longmont, Colorado 80501
Colorado Front Range Location
Location Benefits• Close proximity to city of Boulder, Front Range Foot Hills, and Denver-Metro Area, including Denver International Airport• Property is adjacent to Longmont’s only private country club and golf
course• Since 2000, the Longmont area has grown 17% • In 2000, Forbes Magazine listed the Longmont/Boulder area as number 3 nationwide in Highest Educated population percentage • In June of 2006, Longmont was named an “All American City” by the National Civic League• In 2008, Money Magazine included Longmont in their “Best Small
Cities” report• 4.69% state income tax rate• 7.96% property tax rate on homes
Arial View of Project LocationRed Fox Run is located across the street from the only
private golf course in Longmont, Fox Hill Country Club
55 and Older Active AdultsThe aging of our population shows growth in housing
projects that emphasize quality and maintenance free living. Amenities that enhance an active lifestyle are
required for success.
Red Fox Run would provides the followingopportunities to its owners:
• Freedom from home & landscape maintenance • Private club house with outdoor patio and entertaining area• Greenway connections to the community• Adjacent private golf course and county club access
Standard Amenities• Ranch style homes • Utilization of “green” technologies
– Energy efficient stainless kitchen appliances
– Energy efficient natural gas heat– Tinted windows
• Brick or stone with stucco construction
• Connection to bike path and greenway opportunities
• Fox Den Club House access with sauna, hot tub, state of the art (ROM) weight machine, outdoor fire pit and BBQ grill
• Private patio for each home• 10’ and 18’ wide garage
doors• Exterior maintenance of
buildings and grounds• Central air conditioning
Optional Amenities• Finished second story
– Option of additional closets and configuration for upstairs
• Basement– Finished/unfinished
• Floors– Hard wood– Tile– Slate– Upgraded carpeting
• Upgraded kitchen appliances, additional oven, etc.
• In home security camera for on & off site management
• Crown moldings• Whirl pool jetted bath tubs with
tank-less hot water heaters
• Upgraded doors• Concrete enclosed sound proof area
under garage floor for storage, wine cellar, protection, etc.
• Elevator option • Extended garage for tandem parking• Membership to Fox Hill County Club
(monthly dues paid by home owner) which includes access to:– 18 hole, par 72 golf course– Driving range– Tennis courts– Swimming pool– Weight machine– Club House restaurant– Banquet room(s)
Model Floor Plans
Black Fox Model Street View
Black Fox Model Floor Plan 1,596 square feet
Silver Fox and Red Fox Model ComboStreet View
Silver Fox Model
Red Fox Model
Silver Fox Model
1,258 square feet
Red Fox Model
1,498 square feet
Red Fox Run Ownership Direction
In the current development process of Red Fox Run, the project end-result is still able to be determined.
The decision is still able to be made whether to:
a) sell each individual home under the government of a HOA
b) retain ownership of the project, lease individual homes with a management company, and sell at a later date
Sales vs. Leasing of Homes
• Sales advantages include:– More immediate return on
investment– Shorter duration of project
involvement– Conventional sales with a
Home Owners Association– Attached patio homes with
unique community amenities
• Leasing advantages include:– Positive cash flow when project
is 80% leased– Appreciation of project over time– Attached patio homes with
unique community amenities– Best potential return on
investment– Unique services for community
• Vehicle with Driver (8am – 7pm)
• “Handy Man” services• 8hrs/7day Medical Services
SALES LEASING
Vertical Construction: 45,234 finished square feet will cost $148/square foot:
= $6,694,632*
TOTAL CONSTRUCTION COST = $9,382,095
*This does not include any possible extras and upgrades
Overview of Projected Expenses Sales or Leasing
Development Expenses: 33 Homes will cost $81,438 each
Detailed Projected Expenses Sales or Leasing
Land Cost $1,200,000City Fees $ 450,000
Affordable Housing ParticipationRaw WaterTrafficOffsite TransportationUtility ImprovementsInspectionsUtility Tapping Fees
Phase 1 Site development $ 204,355Phase 2 Site development $ 270,136Phase 3 Site development $ 286,825Off-site Drainage $ 96,147Landscaping, Gas, Electric, General Conditions $ 450,000
TOTAL = $2,957,463
Sales Phasing Revenue
Homes Price Total Price
(2) Black Fox $414,740 $829,480
(1) Red Fox $393,908 $393,908
(1) Silver Fox $327,969 $327,969
(1) Gray Fox (existing house)
$401,241 $401,241
5 HOMES $1,952,598
Homes Price Total Price
(6) Red Fox $393,908 $2,363,448
(5) Silver Fox $327,969 $1,639,845
11 HOMES $4,003,293
Homes Price Total Price
(9) Red Fox $393,908 $3,545,172
(2) Snow Fox $391,322 $782,644
(6) Silver Fox $327,969 $1,967,814
17 HOMES $6,295,630
PHASE 1
PHASE 2
PHASE 3
TOTAL COST $9,382,095
TOTAL SALES $12,251,521
GROSS PROFIT of 23% (before Real Estate Commissions)
$2,869,426
Detailed Standard Home Pricing: Sales
Home Name Sales Price/Home
# of Homes Total Home Sales
Silver Fox $327,969 12 $3,935,628
Red Fox $393,908 16 $6,302,528
Black Fox $414,740 2 $829,480
Snow Fox $391,322 2 $782,644
Gray Fox (existing house)
$401,241 1 $401,241
TOTAL 33 $12,251,521
Lease Price BreakdownTotal Construction Cost = $9,382,095
Interest on 25 year loan at 8% interest = $9,382,200
Payback of construction cost + interest = $18,764,295
Project Yearly Payback Cost = $750,568
Project Monthly Payback Cost = $62,547
Individual Home per sq/ft Payback Cost = $1.38
Leasing Management & Amenities Cost
Project Yearly Cost = $451,512
Project Monthly Cost = $37,627
Individual Home per sq/ft Cost = $.83
GRAND TOTAL LEASING EXPENSES
TOTAL YEARLY = $1,202,170
TOTAL MONTLY = $100,180
TOTAL SQ/FT = $2.21
Detailed Leasing ExpensesRED, SILVER, SNOW & BLACK FOX HOMES
Amenities Provided Yearly Budget
Landscape (mowing, trimming, floral, etc.) $16,800
Snow Removal $6,000
Upkeep (roofing, paint, etc.) $28,342
Utilities (gas & electric) $92,070
“Handy Man” services $14,400
8hrs/7days Medical Service $144,000
Vehicle/Van $8,400
Insurance & Taxes $59,200
FOX DEN CLUB HOUSE
Amenities Provided Yearly Budget
Maintenance and Cleaning $24,000
Equipment Replacement $4,000
Insurance & Taxes $2,500
Utilities $7,800
GRAY FOX – HOME FOR DRIVER
Amenities Provided Yearly Budget
Driver Salary (8am – 7pm) $42,000
Insurance & Taxes $2000
TOTAL YEARLY COST
TOTAL MONTHLY COST
COST PER MONTH PER
HOME
Red, Silver, Snow & Black Fox Homes $369,212 $30,768 $962
Fox Den Club House $38,300 $3,192 $100
Gray Fox Home $44,000 $3,667 $115
GRAND TOTAL $451,512 $37,627 $1,177
Leasing Home RevenueHome Total Home
Lease Cost Rate
100% Occupancy
Suggested Lease Cost with 30%
Markup
100% Occupancy Project Income
(12) Silver Fox: 1,258 sq/ft $2,780 $33,360 $3,610 $43,320
(16) Red Fox: 1,498 sq/ft $3,310 $52,960 $4,299 $68,784
(2) Black Fox: 1,596 sq/ft $3,527 $7,054 $4,580 $9,160
(2) Snow Fox: 1,496 sq/ft $3,306 $6,612 $4,293 $8,587
TOTAL MONTHLY LEASING REVENUE
- $99,986 - $129,851
TOTAL MONTHLY LEASING EXPENSES
- $100,180 - $100,180
MONTHLY GROSS PROFIT 30%
- - - $29,671
Competing Active Senior HousingName Location 55 + Size Price per
unitBuilt
Aspen Grove Longmont Yes 1,635 sq ft $284,000 1998
Hover Ridge Duplexes Longmont Yes 2,600 sq ft $250,000 1983
Villas at Hover - Luxury Senior Housing
Longmont Yes 1,419 sq ft $362,000 2008
Regent Apartments – rental only
Longmont Yes n/a $1,320 - $2,595
1987
Sonoma Village at Ute Creek
Longmont No 1252 sq ft $200,000 2008
Vistas Longmont 1,033 sq ft $250,000 2008
Villas 66 Longmont No 1,200 sq ft $230,000 2008
West Point Longmont Yes 1,358 sq ft $310,000 1993
Competitor: Aspen Grove55 + Size Price Built
Yes 1,635 sq ft $284,000 1998
Competitor: Hover Ridge Duplexes55 + Size Price Built
Yes 2,600 sq ft $250,000 1983
Competitor: Villas at HoverLuxury Senior Housing
55 + Size Price Built
Yes 1,419 sq ft $362,000 2008
Competitor: Regent Apartments55 + Size Price Built
Yes n/a $1,320 - $2,595 1987
Competitor: Sonoma Villa at Ute Creek55 + Size Price Built
No 1252 sq ft $200,000 2008
Current Project Status• Meets requirements from the City of Longmont
and zoned as “individual units for sale as a 55 and older community”
• Verbal agreement with adjacent property owner for utility crossing
• Draft of HOA documents• 1,200,000 equity value
Projected Partner Involvement Options
A. Partner assumes existing mortgage from current lender; payback when project is 75% completed.
B. Partner could assume any portion of equity based on the value of $1,200,000