Welcome to Poppies Corp.
Communities
Filaree @ Palm Parke
5 In-Fill Home Sites
Casa Grande, AZ
Project Summary: Casa Grande is an incorporated city that lies just off Interstate 10 between Phoenix and Tucson. In and around the city, new housing is under construction and is sold as quickly as they can be completed. This has resulted in a shortage of affordable housing within the city limits. In September of 2005, our new Arizona LLC (BDD 103, LLC) purchased five lots. The lots are surrounded by small, single family homes, a church and are directly across the street from a city park – Palm Parke. The LLC plans on building 5 entry level homes with approximate sizes of 1250, 1450 and 1800 square feet.
Current Status: The architect is currently working on the building plans and a project manager and general contractor have been selected for the construction. Once the plans are completed and costs and retail prices established from the plans, the LLC plans on pre-selling a minimum of 3 of the homes in order to secure the best construction financing possible. With a critical shortage of affordable housing in this high demand area, the LLC expects these sales to happen quickly upon release.
Financial Profile: The 5 lots were purchased for a price of $225,000 ($45,000 per home site). Two of the lots are considerably larger than the three others so they will command a lot premium and will be built last. An institutional lender provided the LLC with an interest-only land loan of $168,745 (75%) and has agreed to provide construction loans at the proper time. In the initial projections prior to purchase, Management projected a retail value of the completed homes at an average of $140 per square foot. Since September, the market has continued to appreciate and Management is now projecting prices ranging from $168 per foot for the smaller home; to about $156 per foot for the largest. However, as anticipated, material costs have also risen in the same time period so overall profitability has increased, but not at a rate as indicated by the large increase in the projected retail value.
LLC Investors Click Here for Filaree @ Palm Parke Management Reports
|
