From: JPIH
Newsgroups: biz.marketplace.real-estate
Subject: Southern New Mexico - Subdivision - 633 Lots - 12% of Developed Value!!
Date: Fri, 19 Oct 2007 14:01:24 -0600
Bytes: 13702
This week, JPIH is proud to present you with an incredible development
opportunity that we are currently offering! It is Phase II of a lake
front subdivision with 633 lots and is offered as-is at only 12% of
the developed value!
To view the photo album or to review all of our property listings or
to obtain information on how to submit an offer, please visit our web
site at http://www.jpinvestmentholdings.com
SUBDIVISION FOR SALE: Phase II (undeveloped area) of beautiful lake
view property in Sierra County, New Mexico. Engineering by Bohannan
Houston, one of New Mexico's leading civil engineering firms, includes
aerial survey and topographic maps. All plats approved by Sierra
County and recorded. Having well engineered and approved existing
plats saves the buyer about 4 years and approximately $500,000 in
engineering costs.
Phase I developed area is about 500 acres in the northeast corner of
the subdivision where 75 homes have already been built with an average
value of $400,000. The lake views, pristine setting, large lots (2
acres average) and home quality make this the most desirable
neighborhood established in the county to date.
Phase II that is offered here would be an extension of the existing
developed area and is already platted in the same manner. The new
area will only require staking of lots, building and paving roads and
extension of the underground electric and telephone mains. It is also
advisable to add natural gas. This would add considerable value and
appeal to the property for a retail lot buyer. In the existing
neighborhood, each homeowner has installed their own well, septic
system and propane tank.
The area is located half way between Albuquerque and El Paso (140
miles to either major airport) and also midway between Las Cruces (75
miles south) and Socorro. The population of those four areas combined
is approximately 2,670,000 people. Las Cruces and Socorro are also
homes to major state universities.
East and south boundaries of the subdivision border Bureau of
Reclamation land, the federal agency that operates the Elephant Butte
Dam. BOR leases this portion of their land to the New Mexico State
Parks. North and west sides of the subdivision front Bureau of Land
Management property leased to ranchers for grazing. Being completely
surrounded by government land is a great advantage to a buyer.
SUBJECT PROPERTY FEATURES:
Size - Six hundred thirty three (633) lots, averaging of 1 - 4 acres
each, on a total net area of 1,515 net acres. The gross area with
drainage and roads equals approximately 2,100 acres. Thirty six (36)
acres within the perimeter of the undeveloped area are not included.
Existing Utilities - Sierra Electric Coop and Valor Telephone mains to
the property. Public Service Company of New Mexico natural gas line
is approximately two miles away. The estimated cost to extend gas to
the property line is $50,000.
Terrain - Hills and valleys with general slope upward to the west,
provides best views of the lake compared to any other deeded land in
the County. Major drainage areas (arroyos) set aside as green belts,
minor drainage areas go through some lots.
Title - Title is held free and clear with no liens or encumbrances.
Taxes are current. Title commitment is available within a few days of
signing a purchase agreement.
Water Rights - Not necessary if present development plan is
continued. If buyer elects a different plan such as to re-plat with
smaller lots with water and sewer systems, water rights would be
necessary at additional cost.
EXISTING AREA AMENITIES:
Sierra County covers an area about the size of Connecticut. 82% of
the land is owned by various government entities: Gila National
Forest, Gila Wilderness, White Sands Missile Range, Elephant Butte
Lake State Park, Caballo Lake State Park and many square miles of BLM
and State Land leased to ranchers. The 18% of private land is
primarily owned by Ted Turner and other large ranches and farms.
There is very little fee simple land available for development. The
County has announced it is building a new courthouse in 2008.
Elephant Butte Lake is a man-made lake formed by damming the Rio
Grande River. When full, the surface area is 57 square miles, the
largest lake within a 500 mile radius. The lake provides excellent
fishing, sailing, water skiing, jet skiing and camping. It also
provides irrigation to the Rio Grande Valley. Its shore line is
mostly sand beaches, rather than the rocks and mud of most other
lakes. The lake and surrounding area is managed by the New Mexico
State Parks system. There are 3 full service marinas on the lake
providing boat and jet ski rentals, fishing supplies, slip and dry
dock rental, food and beverage, and boat repair. Elephant Butte Lake
State Park is the most popular recreation and tourist attraction in
the state, recording the highest traffic counts. Carlsbad Caverns is
second in traffic counts for a single tourist facility attraction.
Truth or Consequences Airport can handle the largest private jets,
including Ted Turner's planes. Mr. Turner owns two ranches in Sierra
County totaling about 800,000 acres and he lands at the airport
frequently. Even though facilities are already adequate, major
upgrades are now being planned. The City and State Aviation Office
are now expediting the construction of a new 10,000 feet, cross wind
runway in 2008 to enhance prospects for obtaining the proposed
amenities now considering the area (see below). These entities have
indicated that these improvements and the new traffic created by the
new amenities could result in scheduled commercial flights.
The City of Truth or Consequences has a population of approximately
7,500 and offers art galleries, antique shops, hot mineral baths and
an excellent museum of local history. The existing hospital is
preparing to build a new facility in 2008. A new high school was
completed in 2006. Construction is nearing completion on the area's
first Walmart. The city is also the county seat.
The City of Elephant Butte was incorporated only 10 years ago and now
has a population of 2,000. It is the gateway to Elephant Butte Lake
State Park and offers two motels, 5 restaurants, 2 churches, a boat
dealer, 3 boat repair shops, 3 real estate offices and many boat and
RV storage facilities. The City is now building its first sewer
system which will provide for major commercial growth.
Turtleback Mountain Resort opened August 15, 2007, in Elephant Butte
with a world class 18 hole golf course and club house on its 1,000
acre, high quality development. It is believed that with its wide
area marketing, Turtleback will attract many new people to Elephant
Butte. Some will buy homes in Turtleback and others will buy in
surrounding neighborhoods, including the one offered here. Of course,
some of those visitors will not purchase real estate, but will boost
the local economy with significant purchases of goods and services.
PROPOSED AREA AMENITIES:
Spaceport America already has temporary facilities about 30 miles
southeast of Elephant Butte Lake. This will be the nation's first
private industry facility for rocket launching and landing. The State
of New Mexico has purchase the land and leased it to Sir Richard
Branson of Virgin Airlines. His Virgin Galactic Company has now
collected $20 million in deposits from 1,000 customers for a 45 minute
flight into space at a cost of $200,000 each. The first flights are
scheduled for 2009. Design work on phase one of the permanent
facilities have been contracted by the New Mexico Space Authority,
Brandon's landlord. Design cost is estimated at $30 million with
construction at $200 million.
Other for-profit operations planned for the Spaceport: launching
satellites for private companies, cargo deliveries around the world in
unmanned crafts and extended vacations to the space lab or to the
moon.
Local community leaders are very supportive of this project: two
bridges on the road to the site are being rebuilt by the County and
State to carry heavier truck traffic. Part of the financing for the
Spaceport requires a small increase in sales tax for Dona Ana County
(Las Cruces) and Sierra County. These increases require a general
election vote and Dona Ana has already passed and Sierra votes in the
next few months.
Hot Springs Motorplex. An investment group from Florida is planning a
major industrial, commercial and residential development of 10,000
acres centered around the Truth or Consequences Airport on what is now
government land extending east to this subdivision. The project
depends upon a trade between the BLM and the New Mexico State Land
Office and a second trade between the Land Office and the developers.
The agreement on the first trade has already been signed and it was
considered the most difficult step in the process.
The group has been working on the project for 4 years and have named
it Hot Springs Motorplex. The Master Plan proposes an oval track, a
road course, an off road course, a drag track, race car maintenance
facilities, training facilities, auto and airplane museums, an
industrial park, an office park, hotels, restaurants, a golf course,
shopping centers and residential developments.
Local and State officials and the public at large have been very
support of these projects. Generally, residents have supported
initiatives that add jobs and tourism to the economy.
SUBJECT PROPERTY PRICING & ESTIMATES:
Pricing:
The purchase of Phase II of this subdivision represents an incredible
development opportunity. The location and natural beauty of the
property, combined with the rapidly growing interest, is a perfect
combination to leverage the profits available.
The Pro-Forma Estimates provided below are considered very
conservative and the net profits to be realized could be enhanced
considerably depending upon a developer's existing resources. Some
examples: handling sales and marketing in-house would save
considerably over the budgeted expenses; offering financing could
significantly shorten the period of time required to sell the
inventory saving carrying costs and also adding the interest income to
be realized; one could either construct homes on the lots or partner
with builders for shared revenues; and, price increases are expected
as the planned amenities are developed but are not included in the
projected revenues.
The estimated selling prices for the lots are based upon historical
sales in Phase I and in the area with some consideration attributed to
the proposed amenities being realized.
With an estimated average value of approximately $105,000 per lot as
currently platted and after developed as currently planned (total
value estimate = $66,450,000), this entire parcel is available from
JPIH for $8,250,000 as-is.
Pro-Forma Development Estimates For Phase II (Conservative Approach):
633 lots to be sold over 10-year period.
Beginning Price Range of $65,000 - $150,000.
Ending Price Range of $150,000 - $400,000.
Assuming no price increases and all sales made at Beginning Price
Range:
211 lots @ $65,000 = $13,700,000
211 lots @ $100,000 = $21,100,000
211 lots @ $150,000 = $31,650,000
Total
Revenues
$66,450,000
Less: Acquisition Cost = $ 8,250,000
Development Cost = $ 7,700,000
Carrying Cost = $
4,000,000
Sales & Marketing = $12,000,000
Contingencies = $
4,000,000
Total
Costs
$35,950,000
Net
Profit
$30,500,000
JP Investment Holdings offers luxury estates and homes as well as
building lots and large land parcels that are located nationwide at
WHOLESALE prices, some with seller financing. Several residences are
turn-key ready for occupancy with the finest of furniture, designer
accessories and art. For builders and developers or those seeking raw
land investments, JPIH offers building lots and large land parcels in
some of the most beautiful, unspoiled areas available.
www.jpinvestmentholdings.com
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