Here’s some of the information re: this land banking play of George Fixler’s. He is a real estate lawyer with 30+ years experience here in Calgary, with a net worth of $3MM+.
I have spoken to AltaWest, Premiere, Calvert and Paragon. John Ugyan over at Premiere has mentioned that they’re sitting on a pile of idle cash but that he didn’t necessarily want to ‘go it alone’ on such a large plot regardless of LTV. His largest concern was current values as there have been no direct comparable sales of unserviced/raw land in the past 8-10 months in the general area close to this property. Perhaps there’s something that we can look at as a ‘deal share’ between Lanyard and Premiere?
- 281 acres in Airdrie AB, acquired at $15,000/acre about 4 years ago. ($4,215,000 - 10/06/2004)
- Has had offer (03/2009) at $25,000/acre from Trico homes; renegotiated at $27,500 and then Trico backed down (they were out of cash and tied into too many deals at the same time). Offer letter can be sent to interested parties.
- Exit plan: Clients are wanting to sell within 1-2 years maximum timeframe, may have assets to pay off loan within 3-6 months.
- No ASP currently in place
* Former appraisal (assuming ASP in place) projects property value of $60,000; can be forwarded to interested party as reference upon request*
Financing request:
- Funds will be used to pay out current personal/partnership financing on property
- $1,400,000 + 1-year interest reserve account + fees (proposed at 1.5% for lending partners lender and 1.5% for broker (estimated $1,550,000 total loan)
o To be conservative: Even at the original acquisition value of $15,000 per acre, we’re looking at 36.7% LTV.
o
If today’s ‘conservatively perceived’ value of $25,000 per acre were used, we’re looking at 22.1% LTV
o Similar plot in close (but inferior) location to this one sold in the past 12 months via court-ordered sale at $23,000 per acre (CBRE sale). At this valuation, you're sitting at 24% LTV.
- Rate preferably in the 7-9% range, interest-only payments. 1-year term with opportunity to renew.
Client:
- Mortgage application to follow.
- Real Estate Lawyer with 25-30 years experience here in Calgary.
- Net Worth in the +/- $3,000,000-4,000,000 range (2 homes, investments, etc)
Your help is greatly appreciated!
Sincerely,
James C. Tworek
James C. Tworek, AMP
Partner, Director of Corporate Development
The Mortgage Centre – Trimor Home Finance
Suite 207, 264 Midpark Way SE
Calgary, Alberta T2X 1J6
P: 403.802.7207
C: 403.850.8050
Efax: 888.777.8099
Office Fax: 403.228.9460
TF Fax: 1.866.994.9460
TF: 1.877.807.7222 ext. 207
James@trimormoney.com <mailto:James@trimormoney.com>
www.trimormoney.com
