PARADE

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REAL ESTATE PROJECT

• PARADE

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TABLE OF CONTENTS

• MARKET
• LOCATION
• SUGGESTED ARCHITECTURAL DESIGN
• SUGGESTED FLOOR PLAN
• LAND COST
• CONSTRUCTION COST
• PRICE LIST OF UNITS
• FINANCIAL PROJECTIONS

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MARKET

• SOUTH PADRE ISLAND HAS A LENGTH OF 35 MILES AND
  ONLY ½ MILE WIDE AT ITS WIDEST POINT. IT IS
  LOCATED IN CAMERON COUNTY OFF THE SOUTHERN-MOST
  TIP OF TEXAS IN THE GULF OF MEXICO.
• THE ISLAND IS A WELLKNOWN TOURIST DESTINATION AND
  PROVIDES EMPLOYEMENT TO APPROXIMATELY 5,550
  PEOPLE AND 95 OF THESE JOBS SERVE TOURISM.
• THE PERMANENT POPULATION IS 2,850 WITH AN AVERAGE
  GROWTH OF 100 PEOPLE PER YEAR, GENERATING A NEED
  FOR HOUSING.
• IT IS EXPECTED THAT THE ANNUAL EMPLOYMENT GROWTH
  WILL BE AROUND 230 ADDITIONAL JOBS REPRESENTING
  AN ANNUAL GROWTH OF 3.5, IN CONTRAST WITH A
  GROWTH OVER ALL IN CAMERON COUNTY OF 1.9 AND
  WITH 1.8 OF GROWTH IN THE UNITED STATES.
• CONSTRUCTION ACTIVITY HAS REMAINED STRONG DURING
  THE LAST 20 YEARS TO MEET THE GROWING NEED FOR
  PERMANENT HOMES, SECOND HOMES, AND INVESTMENT
  OPPORTUNITIES AS RENTAL UNITS FOR TOURISTS.
• BECAUSE OF ITS UNIQUE DESIGN, ITS BEACH
  ATMOSPHERE, ABUNDANT WATER, AND A GRAND ASORTMENT
  OF OUTDOOR ACTIVITIES, THE ISLAND ATTRACTS
  TOURISTS AND SECOND HOME OWNERS AS WELL AS
  RETIREES, WHICH PROMOTES GROWTH IN
  INFRASTRUCTURE, ACTIVITIES AND ATTRACTIONS.

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MARKET

• ONE INDICATOR OF GROWTH IS THE TRAFFIC THAT
  CIRCULATES OVER THE ACCESS BRIDGE TO THE ISLAND.
  7.8 MILLION AUTOMOBILE TRIPS WERE MADE IN THE
  YEAR 2005 AND 33 OF THESE WERE REALIZED DURING
  THE MONTHS OF JULY THROUGH SEPTEMBER.
• REVENUE FROM TOURISTS IS ESTIMATED TO GROW 5
  ANNUALLY WITH A BASE OF 290 MILLION DOLLARS.
• IT IS ESTIMATED THAT 2,181 CONDOMINIIUM UNITS ARE
  UTILIZED BY THEIR OWNERS DEPENDING ON THE SEASON.
• PLANS ARE BEING NEGOTIATED FOR A SECOND CAUSEWAY
  FROM THE MAINLAND TO THE ISLAND.

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DIRECTIONS

• AFTER CROSSING THE BRIDGE THAT CONNECTS PORT
  ISABEL TO THE ISLAND, TURN LEFT GOING NORTH AND
  TRAVEL APPROXIMATELY 1.5 MILES, PASSING THE BLUE
  MARLIN SUPER MARKET AND BLACKBEARDS RESTAURANT
  ON THE RIGHT. CONTINUE TO PARADE STREET. TURN
  RIGHT.
• THE LAND IS LOCATED ON THE CORNER OF PARADE
  STREET AND LYNDA STREET ON THE RIGHT SIDE OF THE
  STREET.
• THE LAND HAS A TOTAL AREA OF 34,437 SQUARE FEET,
  APPROXIMATELY EQUIVILANT TO 5.5 STANDARD ISLAND
  LOTS.

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LOCATION OF PROPERTY
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AN AVAILABLE DESIGN

• THE DESIGN REQUIRED MUCH TECHNICAL STUDY BECAUSE
  OF THE REQUIREMENTS OF THE CITY, MAINLY THE SET
  BACKS THAT DETERMINE THE NUMBER OF PARKING SPACES
  REQUIRED PER CONDOMINIUM UNIT AND THE REQUIRED
  AMOUNT OF LANDSCAPING AS WELL AS THE DEMENTIONS
  THAT SHOULD BE CONSIDERED FOR OTHER COMMON AREAS
  INCLUDING, BUT NOT LIMITED TO WALKWAYS,
  AMENITIES, AND LIMITED COMMON AREAS.
• THE ARCHITECT, ROBERTO RUIZ, WAS RESPONSIBLE FOR
  THIS DESIGN. HE HAS 25 YEARS EXPERIENCE IN THE
  DESIGN OF IMPORTANT PROJECTS IN THE RIO GRANDE
  VALLEY AND THE ISLAND INCLUDING THE ISLOLA BELLA
  COMDOMINIUIMS, THE PENINSULA , THE SEA RANCH
  RESTAURANT, AS WELL AS MANY OTHERS.

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INITIAL RENDERINGS
Roberto J. Ruiz, Architect, Inc. 615 Best Tandy
Road Brownsville, Texas 78520 [phone]
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ARCHITECTURAL RENDERINGS
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FLOOR PLANS AND SITE PLANS
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CONSTRUCTION COSTS

• FOR THE COST DETERMINATION THREE BIDS WERE
  SOLICITATED FROM WELL-KNOWN CONTRACTORS IN TEXAS.
• THE THREE CONTRACTORS ARE SPAWGLASS , DELTA
  CONSTRUCTION Y A DIMU ENTRERPRISES
• THE PRELIMINARY CONSTRUCTION COSTS BASED ON THE
  PRESENTED DESIGNS FLUCTUATE BETWEEN 78 PER
  SQUARE FOOT AND 100 PER SQUARE FOOT

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LAND COST

• AN EXTENSIVE STUDY WAS DONE OF RECENT SALES OF
  COMPARABLE PROPERTIES.
• THIS SAMPLE GAVE AN APPROXIMATE VALUE OF 55 PER
  SQUAR FOOT.
• DOLARES APPLYING THAT VALUE TO THE TOTAL SQUARE
  FOOTAGE OF THIS PROPERTY RESULTS IN OUR ASKING
  PRICE.
• THE COMPARABLE SALES USED IN THE DETERMINATION OF
  THE VALUE OF THE PROPERTY WAS OBTAINED FROM
  BROKERS IN THE BUSINESS OF SELLING LAND ON THE
  ISLAND

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COMPARABLE LAND SALES
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PROJECTED PRICE OF UNITS

• PRICING OF EACH CONDOMINIUM UNIT IS BASED ON
  PREVIOUS SALES AND CURRENT LISTINGS BY REAL
  ESTATE PROFESSIONALS

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Parade Lynda Condos

• Sales price will vary based on finish out and
  market conditions.
• Sales prices are conservative based on pre-sale
  opportunity and
• may increase as units sell.

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FINANCIAL PROJECTION
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COMENTARIOS

• THESE PROJECTIONS ARE CONSERVATIVE.
• THIS DESIGN COULD BE CHANGED TO MAKE DIFFERENT
  USE OF THE BUILDING SPACE. IT HAS BEEN DISCUSSED
  THAT ONE OF THE TOWERS COULD BE ROTATED TO GIVE
  AN OCEAN VIEW FROM TOP FLOORS.
• RECENTLY THE CITY HAS GIVEN AUTHORIZATION TO
  PROVIDE 1 ½ PARKING SPACES PER CONDOMINIUM UNIT
  INSTEAD OF TWO SPACES IN COMPLEXES SUCH AS THE
  PROPOSED WHICH WILL ALLOW EXTRA SPACE FOR UNITS
  AND AMENITIES
• THE PROJECT CAN BE CONSIDERED FOR 100 FINANCING
  OF THE CONSTRUCTION AND 70 OF THE TOTAL COST.
  THIS WILL MINIMIZE THE AMOUNT OF CAPITAL REQUIRED
  FOR THE INITIAL INVESTMENT AND MAXIMIZE THE
  RETURN ON INVESTMENT.

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PROJECT CAPITAL
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EXPECTED RETURN ON INVESTMENT (ONLY CAPITAL)
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PROJECT FINANCED AT 70
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EXPECTED RETURN
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THANK YOU FOR YOUR ATTENTION