Transcript Slide Features Slide Creation Guide April 20, 2001

The Marina at Peppers Creek
Investor Document
January 2007
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OCEAN ATLANTIC COMPANIES
Marina at Peppers Creek Property Overview
We will be developing 88 acres into a 123 home community
including a marina and waterfront clubhouse amenity.
Description
Approvals
Master Plan
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• Property consists of 88 acres located in Dagsboro, DE, overlooking Pepper Creek
and the Rehoboth Bay
• Put land under contract in November 2004 for $80K per unit ($10.0M) to be settled
after final approval
• Minutes to the Delaware shore, shopping, and recreation
• Final Approval secured
• Approved for 88 slip marina
• Site work began Winter 2006
• Master plan consists 123 single family home sites, 88 slip marina, expansive marina
club with pool and dining facility
• Intend to sell finished lots to buyers, and construct 2 model homes to set the tone for
the community
• Marina will manage several community boats for the use of community residents at a
nominal charge
• Linking 3 sections of project into overall Peppers Creek umbrella enables shared
amenities package including pool, community center, and 88 slip marina
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Peppers Creek Property – Appraised Value
Appraised value of the of the Marina prior to improvements is
$14.54M, or 45% over our purchase price.
Appraisals by Property
$ Million
Property
Marina
As Is
Approved /
Unimproved
Approved /
Improved
$13.34
$14.54
$24.0
Source: McCain
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Peppers Creek Property – Aerial View
The Peppers Creek property is located just west of the bay, Bethany
Beach and the Atlantic Ocean.
Aerial View of Dagsboro & Peppers Creek Property
(From West looking East)
Marina
Rte 113
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Market Assessment
The property location in Dagsboro addresses many of the key
aspects a pre-retiree/retiree seeks.
Consumer Desire
Peppers Creek
1
Community Amenities
Will offer 88 slip marina (caters to boaters and
sportsmen), community pool, sundecks, community
center, & meeting rooms
2
Low cost of living/ home price
Home sites starting below $200K with no builder tie-in –
providing beach living within 11 miles of the shore, and
directly on the bay, and the flexibility to choose your own
builder
3
Quality Control & Follow-up
Service
Premier Schell Brothers service levels
4
Ease of Access / Limited Traffic
Easy arrival via Rte 113, avoiding Rte 1 traffic
Quick ride to Bethany Beach and Ocean City through Rte
26 corridor
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Marina - Community Site Plan
The Marina community will consist of 123 home sites and an
amenity package featuring an 88 slip marina.
Marketing Advantage
• Marina property has existing
approval for 88-slip marina.
• In today’s permitting
environment, it is virtually
impossible to obtain approval for
marina construction.
• Our marina represents a
significant competitive
advantage, with few players able
to offer marina amenities due to
barriers to entry
Amenity and
Marina
complex
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Marina - Community Amenities
The community will offer a unique opportunity for a marina, pool,
and marina club directly on Peppers Creek.
Conceptual Plan of Shared Amenities Located at the Marina
Pool and
sundeck
Marina club
88 slip marina
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Marina - Community Amenities
The marina club will have a pool and sun deck overlooking the bay
and Pepper Creek.
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PRELIMINARY
Marina - Financials
Current pro forma reflects total project costs of ~$21M. . .
Our cost projections assume a focus on delivering value to the customer
and best-in-class amenities
Cost Category
Total
$M
Per Unit
$K
Land Costs
10.2
82.4
On- and Off-site Costs*
7.4
60.2
Construction**
0.0
0.0
Soft Costs***
3.4
27.6
Total
20.9
170.1
Totals are not the sum of the components due to rounding
*Assumes 50% of amenity cost paid by Woodlands and Highlands communities
**Excludes costs associated with construction of 2 model homes
***Includes interest expense
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PRELIMINARY
Marina - Financials
The Marina will deliver ~$10M in before tax cashflow while delivering a
key component of a best-in-class master planned community to Sussex
County.
Unique product positioning paired with a best-in-class amenities package
yields strong project returns.
Performance Metric
Gross Revenue*
$33.6M
Net Revenue
$31.2M
Project Expenses (Incl Int)
$20.9M
Before Tax Cashflow**
$10.3M
Number of Units to Retire Debt
57 units (46% of project)
*Net Revenue = $31.2M, due to projected $2.4M in unit settlement costs
**Total does not equal components due to rounding
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