PRESCOTT , AZ
OPEN FOR INVESTORS NOW
NAVAJO COMMONS PROPERTY HIGHLIGHTS
FOR MORE INFORMATION OPEN THIS PDF FILE
Location: NE Corner of N. Navajo Dr. and E. Florentine Rd.; only one block north of Highway 69.
The site is located only 8/10 of a mile from the local hospital and regional medical offices.
Infrastructure: Complete with underground utilities; storm water drainage; drainage pans & paving.
Utilities: Electricity, gas, telephone / data, Cable TV, City water & sewer to the site.
Area: A major benefit of the 24.37 acres of vacant land with approved P.A.D entitlements is the opportunity to divide the parcels and build (by Special Review) mixed-use service business buildings for optimum end user success. This area is supported from both regional customers as well as the surrounding neighborhood.
Proximity to Phoenix: Only one hour north of Anthem, AZ (suburb of Phoenix) on I -17.
Market: The Navajo Commons vacant land is priced well below competing retail, office and multifamily-zoned parcels and comparable sold land. Comparable retail center land sales along the highway 69 corridor have supported a valuation of $15.00 PSF to $22.00 PSF.
Approved Zoning: This site is one of only a few vacant parcels with completed infrastructure and P.A.D. zoning. This allows a buyer to obtain an approval for several service business use buildings including multifamily, retail, office, restaurant, auto, hotel, storage, assisted living, and medical office building. The entire site is zoned Town of Prescott Valley C-2. C-2 zoning use also includes all use categories within C-1 zoning. Please see PDF Document for details.
Prescott Valley Demographics:
See Asset Strategy Report for detailed demographic information.
Tax APN #’s: 103-31-277B; 103-31-278; 103-31-279; 103-31-280; 103-31-281
Regional Economy:
The Prescott Valley area is booming. A brisk population and municipal revenue growth has benefited the area for the past several years. Most major national retailer and restaurants are established in the town. Here’s a snapshot of the current growth in the area:
- FY 2014 sales tax collections increased 16%; retail tax collection increased by 15%.
- FY 2014 and 2015 construction tax has increased 8% and 7% annually.
- FY 2015 will have 65% increase ($385 million) in sales tax revenue as compared with only 5 years ago.
- 2015 will bring four new large-scale projects within 5 minutes of the subject site
BUILDER
Estancia
Universal
Everest Homes
Viewpoint
Mandalay
Pronghorn
Dorn
SATELITE VIEW FROM GOOGLE MAPS OF ACTUAL LOCATION OF NAVAJO COMMONS.
CLICK ON IMAGES ABOVE TO EXPLORE AREA
INVESTORS DESK
IN
$ 5.000.000
OUT
$ 9.117.000
LAND: 24 Acres
UNITS: 96
HOME SIZE: 1,700’ single family detached
OBJECTIVE:
1. To purchase the land with a seller carryback to minimize the cash requirements up front.
2.Possibility exists to down zone the property from "commercial" to "residential single family detached."
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Approved P.A.D. zoning overlay.
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Streets and infrastructure complete.
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Purchase ALL or PART of the property
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1 acre to 24-acre development site.
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Retail, Hotel, Medical, Office, Senior Living.
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Multifamily, Storage, Day Care / School, Auto.
TOTAL CASH INVESTMENT: $5,000,000
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Lot Size: 24 acres
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Zoning: apartments/commercial/retail
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4 units per acre: 96 units/$52,083
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Retail Price: $280,000
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Square footage 1,700’ Sq.Ft / $80 per Sq.Ft (136,000)
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Commissions 6% (16,800)
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Closing Costs 2% (5,600)
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Lot Cost (52,083)
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Land Improvements (10,000)
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Sales Tax (8,400)
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Building Permit (10,000)
GROSS PROFIT: $9,117,000 / 96 units:
INVESTOR PAYBACK 100% - $5,000,000
GROSS PROFIT ON INVESTMENT~ 80%
$ 4,117,000
PROJECT PHASES BREAKDOWN
The purchase of the property, priced at $ 7,700,000 needs to be renegotiated down to $5,000,000. Upon payment of $600,000 down we will obtain a release of the first parcel to build on. The remaining balance on terms, with a takedown schedule and put up of $100,000 in earnest money (refundable) is based upon us obtaining down - zoning on the property to Residential.
Parcel size of 24 acres offers potential zoning for 96 homes or a combination of homes and apartments. This would allow us to obtain a first lien position on the land that we take down and a rolling option on the remaining balance.
We will build two model homes and two specs for an additional $400,000 for a total investor out of pocket cash of $1,000,000.
Next, we will negotiate a parcel release price on the remaining lots based upon our new master plan. This would enable us to sell parcels to apartment developers if we decided and pay off the balance of the land.
When the project is built out the investor will be paid back in full on the first 50 units sold with the remaining 46 units pure profit. That profit is estimated to be $3,121,632 to be shared between the investment group and Castle Homes. A total of 96 units will be built.
The title company would be instructed to pay out on the following schedule:
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Construction Loan
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Commissions and Closing Costs
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Investor Payoff
12/15
01/16
PRESCOTT COMPS 2016
05/16