Introduction
Pre-construction purchase opportunity in Brian Head’s first all-season resort
community. Buyers Club has 84 condominium and 6 townhouse units in the prime
location of the 250 units in the first phase. Luxury
mountain retreat in Brian Head, Utah just a short three-hour drive from Las Vegas,
Nevada.
A fifteen (15) month turnaround time is expected
Purchase Price
$268,685 to $815,030
Discount
21.5% through October 1, 2008
Deposit
15% of purchase price in deposit (6 2/3:1 Leverage). Deposit used alongside
construction loan proceeds. Initial prices to be increased by 11.65% on day 1, 3% January 1st, 2008, 2% April
1st, 2008, 3% July 1st, 2008, and 2% October 1st, 2008 (percentage increases are
based on original purchase price). Any appreciation goes to Buyer and Real Estate Investment Club Buyer per
the Joint Venture Agreement (none to developer)
Market Downturn Provision
Yes. In the event that a Comparable Unit sells for less than the initial retail price, Buyer
shall have the right to have his purchase price reduced “dollar for dollar” by the
largest discount given for any Comparable Unit.
Expected Time Horizon
1 to 15 months. Short expected turnaround of project
(occupancy by summer 2008)
Exit Strategies
1) Developer will place Real Estate Investment Club’s units into the sales center once
construction financing is obtained.
2) Developer will sell only Real Estate Investment Club's units until final plat approval to construct an
additional 154 units (current approval is for 90) is obtained.
3) Sales center will sell up to seventy-seven Developer units alongside Real Estate Buyers Club
units.
4) Upon reaching total sales of 167 units, Developer shall only sell Real Estate Buyers Club’s
units with an automatic swap provision in place to ensure priority. Buyer
pays a 4.5% real estate commission at resale.
Closing Contingencies
In the event that Real Estate Investment Club unit has not resold by the time the project is complete,
the following will occur:
1) All non-club buyers must close before our Buyers have to close.
2) Only enough Real Estate Investment Club buyers will be called to closing to pay off bank loan.
3) Those who have closed will have the exclusive right to ‘fractionalize’ their
unit in up to eight 8 units. Standard mark up of fractionals is 50-100% of ‘whole ownership’ values, making the potential upside for this greater than a
potential presale ‘flip’. No additional sales commissions will be due under
this arrangement. To prevent abuse, buyer must accept any valid, pre-closing
offer to repurchase their unit.
Joint Venture Terms
No origination fee. Buyer receives 60% of profits (after buyer’s return of deposit and any sales
commissions) upon closing of the unit.
This project will be Brian Head’s first all-season resort community. Just a
short three-hour drive from Las Vegas, it is 42 acres of wild grasses and pine and
aspen groves surrounded by Utah’s stunning red-rock landscapes
Brian Head, Utah is an outdoor recreation resort located in Southwest Utah. It is
Utah’s highest elevation ski resort that averages 400 plus inches of dry powder
snow each year and offers snowmobile and ATV enthusiasts an abundance of
mountain trails. The growth of the resort is premised on continued expansion of
the Las Vegas marketplace.
In the spring, summer and fall Brian Head offers some of the finest hiking, biking,
and ATV activity to be found anywhere in the state with majestic red-rock views
in every direction.
Land is owned by Developer and appraised at $15.26 million in June of 2006 by
Cushman Wakefield. MagnetBank provided pre-development financing and will
provide construction financing based upon a 50% pre-sale requirement
The owner of Brian Head Development Company is Michael Jabara, an
entrepreneur with a fundamental belief in the continued strength of the Las Vegas
and Southern Utah real estate resort markets. As a founding partner of Highrise
Partners, Ltd., Mr. Jabara entitled and developed Opus, a $700 million twin 50-
story tower, 700-unit luxury residential condominium complex directly off of the
Las Vegas Strip. The entire project was successfully sold in September 2005 to
Fisher Brothers who recently announced a joint venture with Station Casinos to
develop the site. Michel Jabara holds an MBA from the Graziadio School of
Business and Management at Pepperdine University.
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