TEXAS CITY Marathon Petroleum To Create Second Largest Domestic Refining Complex By 2020
COMMUNITY RV - TEXAS CITY CONCEPT : Texas City is creating refinery expansions investing billions of dollars, and importing tens of thousands of skilled professional contract refinery professionals (electricians, sheet metal workers, pipe fitters, etc) to construct these expansions. These skilled professional workers earn around $100,000 per year and travel to contract assignments along the Texas-Louisiana Gulf Coast, each assignment lasts 6 months to 2 years, before moving on to the next assignment. They live in each assignment location in their owned 5 th wheel RVs costing $70-$100,000. While living at their assignment in their RV they want to live in a secure, gated, RV community with high standards and quality amenities. The largest refinery in Texas City is the Marathon refinery, which boasts that it is in the process of becoming the 2 nd largest refinery in the US, at a cost exceeding $10 Billion, on a 10 year program. The other refineries in Texas City undergoing expansion are Valero, BP, Eastman, Dow, and Ashland. STRATEGY: Develop in Texas City an investment grade 265 site RV RESORT that fits the needs of these workers, and in the future fits the needs of residents of Texas City. See the Baytown project Cedar Grove Park RV Resort website: cedargrovepark.com as an example. Provide these ten of thousands of professional skilled workers, coming to Texas City under contract at the refineries, what is needed: while living at their assignment in their RVs for 6 months to 2 years or more, a secure, gated, fenced, high-standard RV community with high quality amenities such as on-site 24 hour management, WiFi, cable TV, recreation center, large pool, lake, gazebos with propane grills, jogging trails, etc. FINANCIAL ANALYSIS : Total Cost of the Project: $12.0M Equity Investment: $ 3.6M Annual Cash Return on Equity Investment (projected) 20% = $720M per year at 90% occupancy Cash Return To Investors On Sale (after return of Equity Investment, projected) $3,377,027 Total Return To Investors – 5 Year $6,369,753 Plus Return of Investment on Sale $3,600,000 IRR 32% LOCATION IN TEXAS CITY: In the immediate Texas City neighborhood, adjacent to Mall Of The Mainland, fronting Hwy 2004, bounded by I-45 to the west, and Emmett Lowery Expressway – FM 1764 to the South. Less than 5 miles to the refineries.
TEXAS-LOUISIANA GULF COAST REFINERY EXPANSION IS DRAMATIC, APPROXIMATELY $250 BILLION OVER THE NEXT 10 YEARS, AND IMPORTING APPROXIMATELY 150,000 REFINERY CONTRACT CONSTRUCTION WORKERS FOR THE CONSTRUCTION WORK
,111 AT&T 9 ,; // TDXAS arr £CCiwONIC I .`'l- A1' Done � i. / ra 0' , --· ··- Coml«0 J.Kl/5 Acr..1 . _ "( . . y ' //�: rttd/ s,5· 1.11/ 0¤1,£l/OQU£NT CORPOSA TlOO 25.0 Acres 245' i!; @ [!K "s 100%[�],+ SCALF: 1' • 100' 100 <; � 0 Texas City, Galveston ',,,:::: ' - -- ' - ' 100 County, Texas V///X ·�q � ···-. P/P/ v�l P.P. z w I ,P,P. w ,...; •:'.@ Ni• i! .!,`S/ P.P. g �� P/P/ u; � � Exhibit A - Property Depiction - Version 2.pdf S 88'59'31' W JJ j rttd/ s,...x·1.1t/ ../ 6:14 PM 3 1 ' 5 6 8 . C . F/ N o . 200806 9 9 4 4 , c/ P/ c/ a P . R/ R/ . _ r . ----------------- 200 . 0 . N " �
FINANCIAL ANALYSIS - PROJECTED 262 SITES - SITE RENTAL RATES: LAKEFRONT $750 + PULL THRU $775 + PREMIUM $650 RV SITES - 262 YEARS 1 2 3 4 5 262 262 262 262 262 262 RV SITES TOTAL LAKEFRONT 76 RENT RATE PER MONTH PER SITE $750 $788 $827 $868 $912 PULL THRU SITES 41 RENT RATE PER MONTH PER SITE $775 $814 $854 $897 $942 PREMIUM SITES 58 RENT RATE PER MONTH PER SITE $650 $683 $717 $752 $790 REGULAR SITES 87 RENT RATE PER MONTH PER SITE $575 $604 $634 $666 $699 BLENDED RATE PER MONTH $674 $707 $743 $780 $819 OCCUPANCY % 0.7 0.9 0.9 0.9 0.9 183 236 236 236 236 NUMBER OF RENTED RV SITES ANNUAL INCREASE 5.00% 5.00% 5.00% 5.00% $6,000 PER MONTH LAUNDRY INCOME $6,000 $6,000 $6,000 $6,000 $6,000 $1,554,600 $2,073,510 $2,173,586 $2,278,665 $2,388,998 GROSS INCOME FROM RV SITES & LAUNDRY EXPENSES $1,000 PER MONTH + 5% INCREASES $12,000 $12,600 $13,230 $13,892 $14,586 BOOKKEEPING/TAX PREP/LEGAL/BANK COMCAST CABLE $3,930 PER MONTH + 5% INCREASES $47,160 $49,518 $51,994 $54,594 $57,323 INTERNET $600 PER MONTH + 5% INCREASES $7,200 $7,560 $7,938 $8,335 $8,752 ADVERTISING $600 PER MONTH + 5% INCREASES $7,200 $7,560 $7,938 $8,335 $8,752 $0 $0 $0 $0 $0 ELECTRIC - REIMBURSED BY TENANT $2,500 PER MONTH + 10% INCREASES $30,000 $33,000 $36,300 $39,930 $43,923 ELECTRIC - COMMON AREA INSURANCE $1,500 PER MONTH + 5% INCREASES $18,000 $18,900 $19,845 $20,837 $21,879 LICENSES & PERMITS $1,000 PER YEAR + 5% INCREASES $1,000 $1,050 $1,103 $1,158 $1,216 $3,000 PER MONTH + 5% INCREASES $36,000 $37,800 $39,690 $41,675 $43,758 MAINTENANCE & LANDSCAPING $2,000 PER MONTH + 5% INCREASES $24,000 $25,200 $26,460 $27,783 $29,172 MAJOR REPAIRS RESERVE OFFICE EXPENSES / COMPUTER-INTERNET $500 PER MONTH + 5% INCREASES $6,000 $6,300 $6,615 $6,946 $7,293 $6,000 PER MONTH + 5% INCREASES $72,000 $75,600 $79,380 $83,349 $87,516 MANAGER PAYROLL, INCL EMPLOYER TAXES TELEPHONE $250 PER MONTH + 5% INCREASES $3,000 $3,150 $3,308 $3,473 $3,647 TRASH $1,200 PER MONTH + 5% INCREASES $14,400 $15,120 $15,876 $16,670 $17,503 WATER & SEWER $2,000 PER MONTH + 5% INCREASES $24,000 $25,200 $26,460 $27,783 $29,172 TAXES $120,000 PER YEAR + 2.5% INCREASES $120,000 $123,000 $126,075 $129,227 $132,458 MANAGEMENT FEE 5% PER MONTH $74,730 $100,676 $105,679 $110,933 $116,450 $2,000 PER MONTH + 5% INCREASES $24,000 $25,200 $26,460 $27,783 $29,172 MISC & CONTINGENCY $520,690 $567,434 $594,350 $622,701 $652,572 TOTAL EXPENSES 33% 27% 27% 27% 27% OPERATING EXPENSES AS A % OF GROSS INCOME $1,033,910 $1,506,077 $1,579,235 $1,655,964 $1,736,426 NET OPERATING INCOME (NOI)
COMMUNITY RV TEXAS CITY FINANCIAL ANALYSIS - DISTRIBUTIONS FROM NOI - ESTIMATES $12,000,000 TOTAL ACQUISITION COST LOAN & EQUITY LOAN @ 5.00 P&I @ 20 YR AMORT 70% $8,400,000 EQUITY 30% $3,600,000 NOI BY YEAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 NOI - ANNUAL $1,033,910 $1,506,077 $1,579,235 $1,655,964 $1,736,426 LESS :P&I @5.0 INTEREST, 20 YEAR AMORT. ($665,232) ($665,232) ($665,232) ($665,232) ($665,232) DISTRIBUTABLE NOI $368,678 $840,845 $914,003 $990,732 $1,071,194 ANNUAL DISTRIBUTIONS TO INVESTOR PARTNERS 10% PREF DISTRIBUTIONS TO $360,000 $360,000 $360,000 $360,000 $360,000 PLUS ADDITIONAL DISTRIBUTION OF AFTER PREFERENTIAL $4,339 $240,422 $277,002 $315,366 $355,597 DISTRIBUTION ANNUAL DISTRIBUTIONS TO INVESTOR PARTNERS $364,339 $600,422 $637,002 $675,366 $715,597 ANNUAL CASH ON CASH RETURN TO 10% 17% 18% 19% 20% TO INVESTOR PARTNER ANNUAL DISTRIBUTIONS TO OPERATING PARTNERS $4,339 $240,422 $277,002 $315,366 $355,597 10.00% $17,364,263.36 IF SALE AT END OF 5 YEARS AT CAP RATE OF DISTRIBUTIONS TO INVESTOR PARTNERS: CASH RECEIVED ON SALE AFTER RETURN OF INVESTMENT $3,377,027 CASH RECEIVED EACH YEAR FROM CASH FLOW $364,339 $600,422 $637,002 $675,366 $715,597 TOTAL CUMMULATIVE PROFIT ON INVESTMENT $964,761 $1,601,763 $2,277,129 $6,369,753 $364,339 RETURN OF INVESTMENT $3,600,000 IRR ANNUAL RETURN, INCLUDING SALE 32%
COMMUNITY RV TEXAS CITY PROJECT COST ESTIMATES/BID/ACTUAL PAID BY LENDER ESTIMATE BID PRICE PAID BY LLC PRE-ACQUISITION COSTS Due Diligence - Analysis Checklist $3,703 $3,703 $3,703 Legal - LLC formation, Investor Documents $22,715 $22,715 $22,715 Phase 1 $22,983 $22,983 $22,983 Traffic Studies $19,500 $19,500 $19,500 Preliminary Architectural Layout $5,000 $5,000 $5,000 SURVEY Survey - Boundry $4,900 $4,900 $4,900 Survey - Topographical $8,500 $8,500 $8,500 Survey - Metes & Bounds Desc. $1,100 $1,100 $1,100 Survey - Forced Main $4,000 $4,000 $4,000 Survey - Front 5 Acres - Retail Site $3,000 $3,000 $3,000 Platting - Subdivision Plat $11,000 $11,000 $11,000 Geotech-Soil Studies $9,336 $9,336 $9,336 Brokerage Fees $16,000 $16,000 $16,000 TOTAL PREACQUISITION COSTS ACQUISITION COSTS Land Purchase $1,400,359 $1,400,359 $1,400,359 Title Company $1,611 $1,611 $1,611 Accumulated Property Tax Liability $16,000 $16,000 $16,000 TOTAL ACQUISITION COSTS PRE-CONSTRUCTION COSTS LAND CLEARING Land Clearing $125,000 $125,000 $125,000 Tree Removal on Easemnt $2,100 $2,100 $2,100 Additional Tree Trimming $6,000 $6,000 $6,000 Fence-Temporary $20,000 $20,000 $20,000 MEP $25,000 $25,000 $25,000 Subsidence District-Permit $442 $442 $442 Landscape Architect $35,000 $35,000 $35,000 Insurance - Land Liability $850 $850 $850 ARCHITECT Site Plans & Rec Building Plans $75,000 $125,000 $125,000 SURVEY Survey - Stake Clearing for Forced Main $2,200 $2,200 $2,200 ENGINEERING
Recommend
More recommend
