Type: Land
Agent: Mike Danzer
Company: US Land Buyers LLC
Price: USD $ 1
Featured: Yes

 

To: Investors

Regarding: Edgewood New Mexico Holdings

  

The Project consists of 1579 acres 22 miles east of Albuquerque NM and spans both sides of I-40. Basically there are 7 major parcels of land that are subdivided in smaller parcels that have been annexed and zoned into various zonings allowed by the Town of Edgewood.

 

The water rights are now preserved in a Co-Op called Edgewood Water Company. We have 178.4 acre feet of a proven 100 year supply. I formed the Co-Op to insure the State will not be able to retire them. We have no debt on the water rights or the land beneath them. I have all the engineering for the first 3 phases of water lines. We are ready to complete the water line extension agreement with New Mexico American Water Company at this time.

 

The On/Off ramp land is dedicated as an easement to the Town as well as the boulevard right-of-way. This boulevard runs from I-40 North to Dinkel Road. Dinkel Rd. is a main artery that runs west to east from state route 344 to Moriarity New Mexico. The Town of Edgewood wants the On/Off ramps to be placed on Bassett Ranch Rd. The NMDOT is completing a study as to where the ramps will be placed. Bassett Ranch is considered to be the top one of two places according to my Engineering firm. See attached letter. The study is to be completed sometime in September.

 

The Town has completed a waste water treatment plant on the north end of Bassett Ranch where I have recorded rights for hookups of 12,500 gpd. Three phase power runs along Bassett Road. Most of Bassett Ranch can be done on septic.

 

 The debt on Bassett Ranch is our main concern. We owe $3500 per acre or 3 million. We believe that if the land is free and clear of debt we could obtain a development loan and start developing in small phases. Our main goal is to entitle the different parcels so when the market turns we are ready for the builders.

 

I am hoping to find an equity partner that will either service the loan or clear the debt and become a equity partner. All creative alternatives are welcome. As of now, we have about 7.5 million cash equity into the various parcels.

I am going to include an over view of the holdings and a breakdown of what the debts are on each parcel. I will also include maps showing different concepts of development.

  

Thanks for questions and consideration,

 

Michael J. Danzer

To: Investors

 

We are proposing the following structure:

 

14^th Street Wetlands LLC has $7,427,749 cash into the properties as of 9-01-08. We will split the profits equally if the following is acceptable to you, the investor.

 

The investor or investors will commit to take over the debt of 3,662,000 either by paying off the debt in full OR as an alternative to this we also will allow the investor to pay the monthly payments of 24,000 with 265,000 down as a principle payment. This payment will go towards Parcel #F.

If a broker is involved this down payment will need to be raised to pay that fee. The fee should be around 1.25% or 55,775.00.

 

For this commitment, the investor will become an equal partner. They will be vested in all properties in this proposal including the free and clear properties #D and #E total purchase price 2,430,000. Total equity is 2,655,000

 

Parcel #A+B called Bassett Ranch has 110 acres of commercial land valued at 40,000 per acre or 4.4 million. The debt on these 2 parcels is 375,000. 4.0 million Equity.

 Bassett Ranch #A+B also has 768 more acres of mixed use zoned land comprising of 1, 2, 5 acre parcels. All of Parcel B is a 401 acre parcel that can be allocated to high density ¼ acre lots including light commercial and some industrial/office. Parcel B is currently zoned Commercial. The remaining debt is 2,600,000. The value per acre is 10,000 or 7.68 million before the rezone of the 401 acre parcel. This 401 acre parcel is currently zoned commercial and therefore we would be down zoning this parcel. Total equity 5.08 million.

 

Parcel #C is 220 acres. This parcel has the least equity but the Loan rate is 1.5%. There can be 100 1 acre lots on this property; however it also would be a great park with some mixed use industrial. Value is 5,000 to 7,000; this depends on the exact use. Total equity at 5k per acre is 575,000. Parcel #F is a 320 acre parcel. This parcel will have 230 1 acre lots. The current debt is 940,000. The value is 2.8 million. Total equity is 1,876,000 

Parcel # G is closed as of 9-05-08 and not part of this offering.

   Additional Information Pertinent to Properties: 

Water Rights:  We have 178.4 acre feet of water rights that have already proven to have 100 year supply of water at 1300 gallons per minute; which is a very strong well. The Development of the well will start construction in December 2008 at a cost of 2 million dollars. This cost will not be part of our debt, but instead will be built free and clear of any liens.

 

The new Waste Water Treatment Plant: This plant was just completed in the middle of our property. This is a state of the art system costing over six million dollars. This system is very expensive because of environmental restrictions required for cleaning waste water. There will be no odor and all the treated water will be used to water vegetation around the site as well other sites. We have rights to hook up 12,500 gallons per day as part of a land trade to the Town for the 40 acre parcel that holds the WWTP.

 

On and Off Ramps: On and off rights was part of our annexation negotiations. When we asked the Town to annex over 1500 acres, we proposed that we dedicate a 100 foot wide boulevard and land for a future interchange. New Mexico DOT is currently finalizing a study which will recommend placement of the on and off ramps.  Our engineers are currently working with the DOT and providing them with information that shows that the Bassett Ranch Blvd alignment makes the most sense for the community and traffic flow.

 

In conclusion, we suggest that as the properties sell over the next few years, all cash investments be paid back to each investor in pro-rata basis first, then the profits split 50/50.   We also suggest we retain the 110 acre of commercial until 33% of the homes are completed. This strategy will allow enough time for the on/off ramps to be built. Once the ramps are built, we believe this commercial property will then be valued $4 to $7 dollars per foot or $190k to $290k per acre. This is comparable to other commercial land in the vicinity of the other on/off ramps in Edgewood at this point in time. The commercial portion has the potential of appraising between $20,900,000 and $31,900,000 after development of the ramps; it’s a strong hold for the future.

 

We certainly hope we peeked your interest in three basic areas. First, we have invested 7.5 million of our own money; second, we hope you see the value in the low down payment required to participate; and third, the fact that we are allowing you, as investor, to leverage your way into what is to be an extremely lucrative investment. We believe that an investor will be required to pay the payments for no more than 3 years before we sell enough land to eliminate your payments.

 

We have only touched on the basics of this development, our equity position, and the proposal for an investor. We certainly would like the opportunity to fully explain any of this further. We would also be willing to entertain any other proposals from interested investors.

 

Thank you for time and consideration,{mosimage}{mosimage}{mosimage}

Acreage: 1600
County: Edgewood New Mxico