Project DescriptionRed Fox Run is a luxurious and maintenance free living

community for active adults, 55 and older, in Longmont, Colorado.

• Red Fox Run will include 32 new homes when complete:– Two buildings will be a triplex model– Twelve buildings will be duplex model– Existing house on property will be separated and modified to become a club house and single family home

Project Location: 12121 Saint Vrain Road

Longmont, Colorado 80501

Colorado Front Range Location

Location Benefits• Close proximity to city of Boulder, Front Range Foot Hills, and Denver-Metro Area, including Denver International Airport• Property is adjacent to Longmont’s only private country club and golf

course• Since 2000, the Longmont area has grown 17% • In 2000, Forbes Magazine listed the Longmont/Boulder area as number 3 nationwide in Highest Educated population percentage • In June of 2006, Longmont was named an “All American City” by the National Civic League• In 2008, Money Magazine included Longmont in their “Best Small

Cities” report• 4.69% state income tax rate• 7.96% property tax rate on homes

Arial View of Project LocationRed Fox Run is located across the street from the only

private golf course in Longmont, Fox Hill Country Club

55 and Older Active AdultsThe aging of our population shows growth in housing

projects that emphasize quality and maintenance free living. Amenities that enhance an active lifestyle are

required for success.

Red Fox Run would provides the followingopportunities to its owners:

• Freedom from home & landscape maintenance • Private club house with outdoor patio and entertaining area• Greenway connections to the community• Adjacent private golf course and county club access

Standard Amenities• Ranch style homes • Utilization of “green” technologies

– Energy efficient stainless kitchen appliances

– Energy efficient natural gas heat– Tinted windows

• Brick or stone with stucco construction

• Connection to bike path and greenway opportunities

• Fox Den Club House access with sauna, hot tub, state of the art (ROM) weight machine, outdoor fire pit and BBQ grill

• Private patio for each home• 10’ and 18’ wide garage

doors• Exterior maintenance of

buildings and grounds• Central air conditioning

Optional Amenities• Finished second story

– Option of additional closets and configuration for upstairs

• Basement– Finished/unfinished

• Floors– Hard wood– Tile– Slate– Upgraded carpeting

• Upgraded kitchen appliances, additional oven, etc.

• In home security camera for on & off site management

• Crown moldings• Whirl pool jetted bath tubs with

tank-less hot water heaters

• Upgraded doors• Concrete enclosed sound proof area

under garage floor for storage, wine cellar, protection, etc.

• Elevator option • Extended garage for tandem parking• Membership to Fox Hill County Club

(monthly dues paid by home owner) which includes access to:– 18 hole, par 72 golf course– Driving range– Tennis courts– Swimming pool– Weight machine– Club House restaurant– Banquet room(s)

Model Floor Plans

Black Fox Model Street View

Black Fox Model Floor Plan 1,596 square feet

Silver Fox and Red Fox Model ComboStreet View

Silver Fox Model

Red Fox Model

Silver Fox Model

1,258 square feet

Red Fox Model

1,498 square feet

Red Fox Run Ownership Direction

In the current development process of Red Fox Run, the project end-result is still able to be determined.

The decision is still able to be made whether to:

a) sell each individual home under the government of a HOA

b) retain ownership of the project, lease individual homes with a management company, and sell at a later date

Sales vs. Leasing of Homes

• Sales advantages include:– More immediate return on

investment– Shorter duration of project

involvement– Conventional sales with a

Home Owners Association– Attached patio homes with

unique community amenities

• Leasing advantages include:– Positive cash flow when project

is 80% leased– Appreciation of project over time– Attached patio homes with

unique community amenities– Best potential return on

investment– Unique services for community

• Vehicle with Driver (8am – 7pm)

• “Handy Man” services• 8hrs/7day Medical Services

SALES LEASING

Vertical Construction: 45,234 finished square feet will cost $148/square foot:

= $6,694,632*

TOTAL CONSTRUCTION COST = $9,382,095

*This does not include any possible extras and upgrades

Overview of Projected Expenses Sales or Leasing

Development Expenses: 33 Homes will cost $81,438 each

Detailed Projected Expenses Sales or Leasing

Land Cost $1,200,000City Fees $ 450,000

Affordable Housing ParticipationRaw WaterTrafficOffsite TransportationUtility ImprovementsInspectionsUtility Tapping Fees

Phase 1 Site development $ 204,355Phase 2 Site development $ 270,136Phase 3 Site development $ 286,825Off-site Drainage $ 96,147Landscaping, Gas, Electric, General Conditions $ 450,000

TOTAL = $2,957,463

Sales Phasing Revenue

Homes Price Total Price

(2) Black Fox $414,740 $829,480

(1) Red Fox $393,908 $393,908

(1) Silver Fox $327,969 $327,969

(1) Gray Fox (existing house)

$401,241 $401,241

5 HOMES $1,952,598

Homes Price Total Price

(6) Red Fox $393,908 $2,363,448

(5) Silver Fox $327,969 $1,639,845

11 HOMES $4,003,293

Homes Price Total Price

(9) Red Fox $393,908 $3,545,172

(2) Snow Fox $391,322 $782,644

(6) Silver Fox $327,969 $1,967,814

17 HOMES $6,295,630

PHASE 1

PHASE 2

PHASE 3

TOTAL COST $9,382,095

TOTAL SALES $12,251,521

GROSS PROFIT of 23% (before Real Estate Commissions)

$2,869,426

Detailed Standard Home Pricing: Sales

Home Name Sales Price/Home

# of Homes Total Home Sales

Silver Fox $327,969 12 $3,935,628

Red Fox $393,908 16 $6,302,528

Black Fox $414,740 2 $829,480

Snow Fox $391,322 2 $782,644

Gray Fox (existing house)

$401,241 1 $401,241

TOTAL 33 $12,251,521

Lease Price BreakdownTotal Construction Cost = $9,382,095

Interest on 25 year loan at 8% interest = $9,382,200

Payback of construction cost + interest = $18,764,295

Project Yearly Payback Cost = $750,568

Project Monthly Payback Cost = $62,547

Individual Home per sq/ft Payback Cost = $1.38

Leasing Management & Amenities Cost

Project Yearly Cost = $451,512

Project Monthly Cost = $37,627

Individual Home per sq/ft Cost = $.83

GRAND TOTAL LEASING EXPENSES

TOTAL YEARLY = $1,202,170

TOTAL MONTLY = $100,180

TOTAL SQ/FT = $2.21

Detailed Leasing ExpensesRED, SILVER, SNOW & BLACK FOX HOMES

Amenities Provided Yearly Budget

Landscape (mowing, trimming, floral, etc.) $16,800

Snow Removal $6,000

Upkeep (roofing, paint, etc.) $28,342

Utilities (gas & electric) $92,070

“Handy Man” services $14,400

8hrs/7days Medical Service $144,000

Vehicle/Van $8,400

Insurance & Taxes $59,200

FOX DEN CLUB HOUSE

Amenities Provided Yearly Budget

Maintenance and Cleaning $24,000

Equipment Replacement $4,000

Insurance & Taxes $2,500

Utilities $7,800

GRAY FOX – HOME FOR DRIVER

Amenities Provided Yearly Budget

Driver Salary (8am – 7pm) $42,000

Insurance & Taxes $2000

TOTAL YEARLY COST

TOTAL MONTHLY COST

COST PER MONTH PER

HOME

Red, Silver, Snow & Black Fox Homes $369,212 $30,768 $962

Fox Den Club House $38,300 $3,192 $100

Gray Fox Home $44,000 $3,667 $115

GRAND TOTAL $451,512 $37,627 $1,177

Leasing Home RevenueHome Total Home

Lease Cost Rate

100% Occupancy

Suggested Lease Cost with 30%

Markup

100% Occupancy Project Income

(12) Silver Fox: 1,258 sq/ft $2,780 $33,360 $3,610 $43,320

(16) Red Fox: 1,498 sq/ft $3,310 $52,960 $4,299 $68,784

(2) Black Fox: 1,596 sq/ft $3,527 $7,054 $4,580 $9,160

(2) Snow Fox: 1,496 sq/ft $3,306 $6,612 $4,293 $8,587

TOTAL MONTHLY LEASING REVENUE

- $99,986 - $129,851

TOTAL MONTHLY LEASING EXPENSES

- $100,180 - $100,180

MONTHLY GROSS PROFIT 30%

- - - $29,671

Competing Active Senior HousingName Location 55 + Size Price per

unitBuilt

Aspen Grove Longmont Yes 1,635 sq ft $284,000 1998

Hover Ridge Duplexes Longmont Yes 2,600 sq ft $250,000 1983

Villas at Hover - Luxury Senior Housing

Longmont Yes 1,419 sq ft $362,000 2008

Regent Apartments – rental only

Longmont Yes n/a $1,320 - $2,595

1987

Sonoma Village at Ute Creek

Longmont No 1252 sq ft $200,000 2008

Vistas Longmont 1,033 sq ft $250,000 2008

Villas 66 Longmont No 1,200 sq ft $230,000 2008

West Point Longmont Yes 1,358 sq ft $310,000 1993

Competitor: Aspen Grove55 + Size Price Built

Yes 1,635 sq ft $284,000 1998

Competitor: Hover Ridge Duplexes55 + Size Price Built

Yes 2,600 sq ft $250,000 1983

Competitor: Villas at HoverLuxury Senior Housing

55 + Size Price Built

Yes 1,419 sq ft $362,000 2008

Competitor: Regent Apartments55 + Size Price Built

Yes n/a $1,320 - $2,595 1987

Competitor: Sonoma Villa at Ute Creek55 + Size Price Built

No 1252 sq ft $200,000 2008

Current Project Status• Meets requirements from the City of Longmont

and zoned as “individual units for sale as a 55 and older community”

• Verbal agreement with adjacent property owner for utility crossing

• Draft of HOA documents• 1,200,000 equity value

Projected Partner Involvement Options

A. Partner assumes existing mortgage from current lender; payback when project is 75% completed.

B. Partner could assume any portion of equity based on the value of $1,200,000