Figure 3-7

Veranda Land Development

Quick and Dirty Analysis

Phasing Worksheet Lot Price Phase 1 Phases 2 & 3 Phase 4 Total

Single family (sf) $ 68,000 40 52 30
Carriage house (ch) $ 45,000 24 12 -
Townhome (th) $ 35,000 22 - -
86 64 30 180
Average $ 53,140 $ 63,688 $ 68,000

Land Sales Revenue

Lots Mix # Lots Avg. Price/Lot Revenue Total
Phase 1 40sf, 24ch, 22th 86 $ 53,140 $ 4,570,000
Phases 2 & 3 52sf, 12ch 64 $ 63,688 $ 4,076,000
Phase 4 30sf 30 $ 68,000 $ 2,040,000
Project Total Sales 180 $ 10,686,000

Expenditures
Land Cost ( 87 acres @ 26,000 per acre) $ 2,262,000
Development Costs
Grading $ 210,000
Paving $ 600,000
Storm sewer $ 250,000
Water $ 200,000
Sanitary sewer $ 180,000
Power $ 85,000
Teledata/network $ 160,000
Off-site street improvements $ 506,031
Fees & permits $ 800,000
School fees $ 350,000
Indirect land development $ 300,000
Financing costs ( 2.0% of max loan) $ 73,815
Pursuit/transaction costs $ 156,075
Marketing ( 6.0% of sales) $ 641,160
Administration & contingency ( 6.0% of sales) $ 641,160
Total Development Costs $ 5,153,241
Subtotal $ 7,415,241
Interest Calculation
Equity 50.0% $ 3,707,620
Debt 50.0% $ 3,707,620
Average balance (estimate) 50% $ 1,853,810
Duration (years) 3
Rate 7.5% $ 417,107
Total Expenditures $ 7,832,348
Profit
$ 2,853,652
Source: hempfield Valley Partnership and Charter Homes.
 Per Lot

$ 59,367

$ 12,567

$ 28,629
$ 41,196

$ 43,513

$ 15,854
38.5% of total costs
26.7% of total revenue