Jimmy LailDavid Lail
Tyler Mainous08.06.07
Midland Developmen
t Analysis
Outline
I. Project Overview
II. Feasibility Analysis
III. Equity Capital Funding
IV. Sales Process
V. Investment Analysis
Project Overview
The Concept
100-unit luxury
condominium
development
with 1st floor
commercial
space.
Project Overview
The Amenities
Project Overview
Sample Floorplan
• 2 bedrooms, 2 full baths
• +/- 1200 square feet
• Hardwood floors
• Granite counter tops
• Stainless steel appliances
• Balcony
• Highest quality construction
Feasibility
Regional & City Analysis
• Lexington 2000 Population: 260,512
• Downtown Population: 5,000+
• Downtown Workforce Population: 12,000
• Approximately 1,000 Downtown Businesses
• 3 General Use Downtown Parks
• Home of the University of Kentucky and Transylvania University
• Major employers: U.K., Ashland Inc., Lexmark International, Inc., Toyota Motor Manufacturing, Link-Belt
• Lexington is experiencing rapid growth and redevelopment of its downtown
Feasibility
Location Analysis
• 2 minutes from Downtown Core
• 5 minutes from U.K.
• Easy access to Winchester Rd., Richmond Rd., I-75, and I-64
• Splits 2 historic residential neighborhoods
• Prime location for growth as Downtown Core expands
Feasibility
Site Analysis
DowntownMidland Avenue
3 rd Street
Lew
is S
tree
t
• Current zoning is I-1
• Future zoning is MU-2
• Existing structures: 3 commercial
• Traffic: 20,000 cars/day
Feasibility
Project Sales Price
Sale # Square Feet Price Price/sq. ft.1 1,365 353,710$ 259.13$ 2 1,495 364,800$ 244.01$ 3 1,271 307,500$ 241.94$ 4 1,354 282,986$ 209.00$ 5 1,470 285,230$ 194.03$ 6 1,655 303,710$ 183.51$ 7 1,655 293,710$ 177.47$ 8 1,170 206,690$ 176.66$
Comparable Lexington Condo Sales
High
$259.13
Low
$176.66
Mid
$217.90
• Pool• Fitness Center• Starbuck’s
• Dry Cleaning Service• Bar & Grill• Highest Quality Construction
$255
Equity Capital Funding
225 MidlandOwner: Will Dale Properties, LLC
Acreage: 0.43
Property Value: $455,000
265 MidlandOwner: SJM Properties, LLC
Acreage: 0.80
Property Value: $630,000
261 MidlandOwner: Brashear
Acreage: 0.12
Property Value: $500,000
EQUITY PARNTER
EQUITY PARNTER
OPPORTUNITY!
Equity Capital Funding
59.8%$2,355,001Soft Costs
11.5%$455,000225 Midland EQUITY PARTNER
12.7%$500,000261 Midland EQUITY PARTNER
100%$3,940,001TOTALS
16.0%$630,000265 Midland EQUITY PARTNER
% of TOTALAMOUNTINVESTOR
INVESTMENT OPPORTUNITY
Sales Process
• On-site sales center and agent
• Website
• Weekly newspaper ads
• Local PR campaign
• “Shopping the Bluegrass” TV segment
Sales & Marketing Strategy
Investment Analysis
Estimated Profit*
Sales Revenue $37,850,000
Less: Land Costs 1,585,000
Less: Construction Costs 25,835,013
Less: Soft Costs 2,355,001
Less: Realtor Costs 918,000
Profit $7,156,987
* Please see Excel sheet for greater detail
Investment Analysis
Share of Profit*
$3,216,986
$1,922,844
$371,505
$408,247
$925,600
Profit $
$7,156,987
$4,277,844
$826,505
$908,247
$1,444,391
$ OUT
100%
59.8%
11.5%
12.7%
16.0%
% Share of Profit
$2,355,001Soft Costs
$455,000225 Midland EQUITY PARTNER
$500,000261 Midland EQUITY PARTNER
$3,940,001TOTALS
$630,000265 Midland EQUITY PARTNER
$ ININVESTOR
* Please see Excel sheet for greater detail
Questions & Comments
?