Investment in Real Estate

 

1.  Summary

Branson Meadows is a part of a 400 +/- acre land assemblage we have been working with to locate the ¼ mile Model. As it is improved development ground, we would like to purchase as much land as possible, up to $40 million for packaging and sales of transit villages. Estimated return to investors, if we just wholesale the land, is $64 million. However if we develop one of the Villages for $30 million in additional capital, an additional $35 million profit is estimated. The only village we may want to build is the Retirement Village because it is driven by presales, built in modules and marketed to the 77 million “Baby Boomers” soon to retire. We are offering to take a 25% profits interest for management and the funders own it all.

2. Location of Branson Meadows (in yellow)

Branson Meadows is the largest parcel of undeveloped but improved land inside the city limits and lies strategically between the 5 mile Entertainment District loop shown in dotted red line above and the 7 mile future Loop connecting to downtown and the proposed Convention Center.


3. Description of Branson Meadows

200 acre Master Planned Community between downtown and entertainment district

            Zoning -Currently is mixed use and requires Plat

            60’ Easements for Power lines runs north and south

            Existing Debt not known yet

                        First Deed is not known

                        Pricing- Land vales from $ 5psf to  $9 psf

Comparables: Land values on the strip run from $12 to $20 psf and most sites will    require the tear down of existing structures.

Existing Improvements worth $17 million are already installed for roads, bridge, utilities, signage, lighting and other infrastructure.

 

 

Current Master Plan showing 4 lane divided Parkway in dashed red going thru middle of site. The yellow line is a high powered transmission easement 60 wide running north and south.

 

 


 

4. Real Estate Investment Breakout

Cost to Assemble                                                       Potential Land Sales Revenue

147 acres at $1.56 psf              $10 mil                         22 Resort acres at $ 15psf          $14.3 mil         

247 acres                                 $12 mil                         Retirement Village 50 ac @5p      $10.9 mil

Rezoning, fees and Platting        $02 Mil                        Family Village 50 ac @ 5psf            $10.9 mil

Existing Mall                             $16 mil                         272 remaining acres  $5 psf      $59.2 mil         

                                                $40 mil                        Mall at $125 psf                       $37.5 mil

                                                                                                                                    $133 mil

 

Net Sales Revenue (less 5% over head and marketing)                                              $126 Mil

Net Operating Income                                                                                               $  86 Mil

There is an additional Option  for $30 Million to begin constructing Retirement Village. See proforma in section 10. 

Some of these funds can be used to package the Resort Village.

             

Terms of funding

  • 100% ownership of all assts
  • management earns 25% profits interest 
  • Will deploy additional $40 Million within 90 days 

 

5. Existing Mall for $16 Million

Not part of Branson Meadows ownership. 30 Shops built in mid 90s for tourist market and owned by 3rd party REIT.  This mall attracts tourists to Branson Meadows already. Some of the existing shops are Mountain Man Fruit, Dress Shop, Leather Shop, souvenirs with a  tourist orientation.

 

 

 

 

The existing Mall of 300,000 sf has been sold as part of a $3.5 Billion package to Simon and Co. the largest Mall owner/builder in America. It is too small for them and they have suggested a $50psf price or $16 mil. It costs almost 3 times that to build, but is currently over 30% vacant and they don’t want to fool with it, we are told.

 

6. A $10 Million land Purchase 

The red parcels shown on the following page is the key to this assemblage. These parcels contain 147 acres and have utilities already to the site along with roads, landscaping and street lighting at the entrance to each. Because the owners have begun to fight among themselves, we now believe these parcels may be purchased close to $10 million, which is about $1.56 psf. There are three villages contained in this purchase, which are shown in the Village Map below. A little trading with the owners will  provide a Retirement Village-50 ac, Family Village- 50 ac  and a Resort Village of 22 acres.

 

These are the parcels that in seller’s $10 million price. They come to 147 + acres.

 


Colors below show the trades necessary to assemble Villages under single ownerships.

 

7. Raw Land with 247 Acres at $12 million.  

We met with the owner of adjacent land to the east. It is bounded by SOH parkway on the North and the river road on the south. It is raw land with no roads or utilities. They do not have a price on it at present. I have suggested to them that they get it appraised and then we discuss a purchase. If we appraised it first, I think a $1.12 psf price might be possible with a prompt closing. What ever the price, this would give us about a 400 acre assemblage that could appeal to national developers. A Smartskyways loop as shown below, will link this property  to the entertainment district, Branson Meadows and downtown. Such a loop would be about 2.5 miles. It’s costs of $37.5 million could be paid for with Tax Increment Financing (TIF) and just approval for this loop should increase the land value above $5 psf. The 247 aces on the east side could be planned for a series of attractions as shown above that could exceed one billion dollars of development potential. This large site combined with a local loop that connects to 12 million planned visitors on Route 76 could attract many national development companies

 

 

 

$2,000,000 in working capital could control more than $1.5 billion worth of development on this assembled site. 
At 400 +/- acres and .5 Floor Area ratio means 8.7 million sf of construction

8
. A One Mile AGT  Extension will connect this 400 acres to Route 76.

By installing this 1mile, we create the equivalent of being on Route 76 where the action is and to downtown, and in fact most of the town. People visiting or owning property at Branson Meadows would not have to drive their car and yet are accessible to everything. This AGT extension creates an opportunity to recast Branson Meadows as a series of   “Transit VILLAGES”. This project represents an opportunity to show how real estate is impacted by AGT access.  At the same time, the AGT system gives instant access from the Entertainment District to the Villages for pedestrians. Each village can also have a golf cart pathway collecting and distributing passengers to their final destination. It is our contention this will significantly increase the values of these properties.

 

 


9. Proforma for $70 + Million in Real Estate Investments

The table below is a simple illustration  of increasing land values  with AGT access and connection to Route 76. The Village pricing table below estimates the values created from the $40 million allocated to assembling real estate and an optional $30 to 40 Million construction proforma for the Retirement Village is shown is Section 10.

 

Land Sales Feasibility

 

 

 

July-04

 

 

 

 

 

$40 Mil min & $80 Mil max over 5 years

 

 

 

 

 

conservative

expected

attainable

 

 

Income

 

 

 

 

 

 

 

Retirement Village Optional Net Development

33.4

60.2

87.2

 

 

Resort Village -22 ac land only ($10-15-20psf)

 

 9.6

14.4

19.2

 

 

Family Village-50 acre land (5, 15, 20 pas)

 

10.9

16.3

21.7

 

 

Misc sites -10 acres (2.50-5.00-7.50psf)

 

 

10.8

21.7

17.4

 

 

Remaining 247 acres (3,5,7psf) land only

 

 

32.2

53.8

75.2

 

 

Total  Income

 

 

96.9

166.4

220.7

 

 

 

 

 

 

 

 

 

 

Costs

 

 

 

 

 

 

 

Less Purchase of 147 acres

 

10.0

10.0

10.0

 

 

less Purchase East 280 acres

 

12.0

12.0

12.0

 

 

Less Existing Mall

 

16.0

16.0

16.0

 

 

Less Admin, planning, marketing and overhead

 

  2.0

  2.0

2.0

 

 

Sub Total

 

 

40.0

40.0

40.0

 

 

 

 

 

 

 

 

 

 

R. E. NOI (Before tax)

 

$56.9

$126.4

$180.7

 

 

 

ROI (75%) on $70M over 4 years                      15%py      33%py         48%py

 

10. Retirement Village

This is a 378 Townhome layout using 14 PODs. Each one contains 27 residential units (PODs) built around a garden courtyard.  The green shown below represents Commons Area Amenities and the blue represents supporting retail such as liquors, cleaners, bank, RE Office, hair salon and medical. Closer to the station is food store, pharmacy, Bingo, computer and a golf cart shops.  There are 77 million baby boomers that will begin retiring soon and Branson is a lively, entertaining and interesting place to live. The proforma below shows the profit potential of building the first half with a $30 Million  optional investment, then  rolling over the profits to continue building until project competition. Some of the Village will be a mix of retail and office services that retirees need such as liquor , cleaners, hair saloon,  branch bank, food , pharmacy, computer, medical, real estate and bingo. In addition this project is large enough to afford recreational amenities such a pool/spa tennis and clubhouse. These are all connected with a 25’ wide mall that runs thru the amenities and store for the length of the Village to the transit station.

 

A 27 Unit “POD” Built Around a Garden

 

 

There are many features built into this plan to attract the pricing. It has most of the retail and recreation services needed in the middle along a 25’ wide Pedestrian Mall that connects to the AGT station. It also has a golf cart pathway around the loop street that connects to the AGT station. Users can just leave the golf carts at selected points when they are finished for someone else to use. If the golf cart strays more than a few feet from this path it will quit running, so people wont take them home.

 

 

 

 

 

 

 

 

  $30 Million Optional Investment

 

 

Revenues

Pricing Levels psf

378  Residential Units

 

$200

$250

$300

(at 1000 ea)

378,000

75,600,000

94,500,000

113,400,000

12 Retail Condos at 5,000 sf ea

60,000

12,000,000

15,000,000

18,000,000

Future Retail

100,000

20,000,000

25,000,000

30,000,000

Gross Revenues Potential

538,000

107,600,000

134,500,000

161,400,000

 

 

 

 

 

Development Costs

 

 

 

 

Hard Costs

$psf

 

 

 

Roads and Terracing

7

 

 

 

water, sewer, storm, FH

5

 

 

 

Cable, phone, Power

2

 

 

 

landscaping, irrigation

3

 

 

 

Construction of Bldgs

87

 

 

 

Commons Areas

 

 

 

 

     Clubhouse

9

 

 

 

     Tennis

1

 

 

 

     Pool and Sun Deck

2

 

 

 

     Golf Cart Pathway

3

 

 

 

     Entry Gates/signs

1

 

 

 

     Promenade

2

 

 

 

     SOH Flower Bed

1

 

 

 

Soft Costs

15

 

 

 

Total Cost (538 x $138)

138

74,244,000

74,244,000

74,244,000

without land costs & Interest

 

 

 

 

 

 

 

 

 

Net Income (Before tax)

 

33,356,000

60,256,000

87,156,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retirement Village Feasibility

 

 

Typical Floor Plan

Seniors want everything on one level so this layout has 2 bedrooms, 2 baths a kitchen and living area all in 1035 sf. The master bedroom opens onto the garden area. The guest bedroom also doubles as an office with a Murphy bed built in.

 

 

 

 

 

 


 

 

 

 

11. The 22 acre Resort Village

Development Theme- Branson is a country western small town that that exemplifies traditional country values and settings. A Backwoods theme can convey historical values of the frontier woodsman that settled Missouri and lived off the land. Bass Pro in Springfield, reflects an historical architectural look that reflects this history. Most lodging projects today use a theme to attract their customer base. This theme is aimed mainly at the tourist and secondly at small conferences that want to treat their attendees to great entertainment close by.

 

 

Resort Site  from the top of the hill has  commanding southern and western views.

                                                Bridge Entry to Branson Meadows

 

 

 

 

 

 

 

 

 

                         Resort Village Feasibility Sketch*

 

 

 

 

 

 

 

Condo Sales Revenues

 

$220 psf

$260 psf

$300psf

 

 

 

300 Room Hotel, spac,  teleconf, cottages

 

conservative

expected

attainable

 

 

 

522,000 sf including amenities at

 

114,840,000

135,720,000

$156,600,000

 

 

 

 

 

 

 

 

 

 

 

Development Costs

 

 

 

 

 

 

 

Roads, Land Grading, walks, curbs, lights

 

750,000

 

 

 

 

 

Water, sewer, storm, fire hydrants

 

1,500,000

 

 

 

 

 

Cable, phone, Internet, Power

 

250,000

 

 

 

 

 

Landscaping, irrigation ,sheds

 

1,000,000

 

 

 

 

 

Construction Costs at $150 psf

 

 

 

 

 

 

 

      300 Hotel  rooms at 600 sf ave.

180000

 

 

 

 

 

 

       Restaurant and kitchen

10,000

 

 

 

 

 

 

       3 Lounges

12,000

 

 

 

 

 

 

       Lobby

15,000

 

 

 

 

 

 

       Administration

5,000

 

 

 

 

 

 

       Tele-conference Center

30,000

 

 

 

 

 

 

       Spa and Health Center

15,000

 

 

 

 

 

 

       Back of the House at 15%

75,000

 

 

 

 

 

 

       50 Cottages on Stream at  600 sf ea 

30,000

 

 

 

 

 

 

      6  Retail Boxes at 25,000 sf ea

150,000

 

 

 

 

 

 

Size of Total Construction at $150 psf

522,000

78,300,000

 

 

 

 

 

Water Park and Pool

 

1,500,000

 

 

 

 

 

Underground Parking 250 cars at$15k ea.

 

3,750,000

 

 

 

 

 

4 Tennis Courts and Club

 

500,000

 

 

 

 

 

Fishing Stream

 

1,500,000

 

 

 

 

 

Total Development Costs

 

89,050,000

89,050,000

89,050,000

 

 

 

 

 

 

 

 

 

 

 

Soft Costs at 12% of Develop't Costs

 

 

 

 

 

 

 

     Insurance

 

 

 

 

 

 

 

     Travel

 

 

 

 

 

 

 

     Administration

 

 

 

 

 

 

 

     Marketing and Sales Fees at 5%

 

 

 

 

 

 

 

     Architecture and Planning

 

 

 

 

 

 

 

     Engineering and Survey

 

 

 

 

 

 

 

     Legal and CPA

 

 

 

 

 

 

 

     Office & FFE

 

 

 

 

 

 

 

Total Soft Costs

 

10,686,000

10,686,000

10,686,000

 

 

 

Land Costs 22acres at $15psf  (what we get)

 

14,374,000

14,374,000

14,374,000

 

 

 

Total Project Costs (without land costs)

 

103,424,000

103,424,000

103,424,000

 

 

 

 

 

 

 

 

 

 

 

Net Sales Income

 

$11,416,000

$32,296,000

$53,176,000

 

 

 

*  Assumes Sale To Third Party
12. Crafts Village Being developed by owners of Branson Meadows

The current owners of Branson Meadows are building 3 buildings with multi tenant lease space. The leasable space is 70% pre-leased with negotiated contracts that have the tenants paying for trash, insurance, taxes, maintenance and janitorial. Three-signed lease have deposits and are participating in the plan below. There is room for 3 times as much development in this village.

 

 

Development Theme

Branson is a hot bed for such crafts as glass blowing, leather, painting, wood carving, lapidary, jewelry, quilting, furniture, dolls, knives, guns. Branson attracts national artists who both sell and perform in these skills. The Bass Pro shops are an example of mixing  Crafts into a retail environment and providing an entertainment factor.

 

 

 


13. Existing Lodging  

174 Room hotel (optional purchase) At this writing, this hotel can be purchased for $2.5 million ($15,000 per room). A local marketing company will guarantee up to $1,000,000 in room rentals per year for a piece of the ownership.  Hotels in Branson started as small mom and pop places with cheap rents about 15 years ago. As the tourism traffic has grown, larger hotels and national chains have been building bigger and more expensive lodging. Now to build a hotel on the strip, it requires that existing building be torn down or go elsewhere. This hotel can be acquired for  substantially less than replacement costs. It comes furnished and has a pool, lobby, adequate parking spaces and no restaurant. It is currently in operation.

 

It could also serve as Sales office and models for the Retirement Village sales.