banker's hill development in san diego, ca

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BANKERS HILL ROW HOME DEVELOPMENT Real Estate Investment Opportunity

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This urban development in the coveted San Diego neighborhood of Banker's Hill features 8 Row Homes that each have San Diego Harbor views. These homes will be built using sustainable materials and will offer 50% of the electricity derived from solar. The 2 and 3 bedroom townhomes will be 2 stories over a 2-car garage with 1500-2400 sq ft of living space. Contact me for more detailed information or to arrange a meeting with the Developers!

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Page 1: Banker's Hill Development in San Diego, CA

BANKERS HILL ROW HOME DEVELOPMENT

Real Estate Investment Opportunity

Page 2: Banker's Hill Development in San Diego, CA

Confidential

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 .

Page 3: Banker's Hill Development in San Diego, CA

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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Page 4: Banker's Hill Development in San Diego, CA

Real Estate Investors

CONFIDENTIAL

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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

Page 5: Banker's Hill Development in San Diego, CA

Project Summary

CONFIDENTIAL

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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

Page 6: Banker's Hill Development in San Diego, CA

Site & Location

Page 7: Banker's Hill Development in San Diego, CA

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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Page 8: Banker's Hill Development in San Diego, CA

Location Map

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Page 9: Banker's Hill Development in San Diego, CA

Site Location

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Page 10: Banker's Hill Development in San Diego, CA

Current Site Views

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Page 11: Banker's Hill Development in San Diego, CA

Site Plan

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Page 12: Banker's Hill Development in San Diego, CA

Bankers Hill Investment

Page 13: Banker's Hill Development in San Diego, CA

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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Page 14: Banker's Hill Development in San Diego, CA

Investment Ownership

CONFIDENTIAL

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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

Page 15: Banker's Hill Development in San Diego, CA

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

Page 16: Banker's Hill Development in San Diego, CA

Estimated Proceeds

CONFIDENTIAL

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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Page 17: Banker's Hill Development in San Diego, CA

Timeline

CONFIDENTIAL

MONTH

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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Page 18: Banker's Hill Development in San Diego, CA

How to Invest

Page 19: Banker's Hill Development in San Diego, CA

LIV Investment Process

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Page 20: Banker's Hill Development in San Diego, CA

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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Page 21: Banker's Hill Development in San Diego, CA

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

Page 22: Banker's Hill Development in San Diego, CA

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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Page 23: Banker's Hill Development in San Diego, CA

Current/On-going Projects

Carlsbad Town Homes

Imperial Beach Mixed Use

Mount Alice Resort & Marina

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Page 24: Banker's Hill Development in San Diego, CA

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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Page 25: Banker's Hill Development in San Diego, CA

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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Page 26: Banker's Hill Development in San Diego, CA

Appraised Value

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MAI Appraisal for 7-unit parcel (August 2014)

Page 27: Banker's Hill Development in San Diego, CA

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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Page 28: Banker's Hill Development in San Diego, CA

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$

Page 29: Banker's Hill Development in San Diego, CA

Floor Plans: Level 1

Page 30: Banker's Hill Development in San Diego, CA

Floor Plans: Level 2

Page 31: Banker's Hill Development in San Diego, CA

Floor Plans: Level 3

Page 32: Banker's Hill Development in San Diego, CA

Available Reports

Appraisal*

3rd Party Construction Estimate

Construction Documents

Budget*

Approvals/Entitlements

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* Present in this package (part or in whole)

Page 33: Banker's Hill Development in San Diego, CA