28950 HORSE THIEF DRIVE STALLION SPRINGS,...

leewestla.comNo warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease are subject to change or withdrawal without notice.

28950 HORSE THIEF DRIVESTALLION SPRINGS, CALIFORNIA

PRELIMINARY OFFERING INFORMATION

LODGE DEVELOPMENT AND GOLF COURSE REDEVELOPMENT OPPORTUNITY$2,850,000

Robert [email protected]

310.899.2725

Vaun [email protected]

310.899.2713

No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease are subject to change or withdrawal without notice.

EXCLUSIVELY LISTED BY INVESTMENT ADVISORS:

LEE & ASSOCIATES

Executive Summary , 3

Current Facilities &Water Source Page 4

Offering Summary &Golf Course Description Page 5

Development Plan Page 6

Site Plan Page 7

Site Map Page 8

Location Maps Page 9, 10

Construction Costs Page 11

Pro Forma Operating Income Page 12

Market Overview Page 13

Golf Score Card Page 14

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TABLE OF CONTENTS

Robert [email protected] Lic. 00999184

Vaun [email protected] Lic. 01993617

This Offering Memorandum and all information forwarded hereafter as an Addendum to (Offering Information) has been prepared solely for informational purposes to assist a prospective Purchaser in determining whether it wishes to proceed with an in-depth investigation of the Property. No representations or warranties, expressed or implied, as to the accuracy or completeness of the Offering Memorandum or any of its contents shall be deemed made, and no legal commitment of obligations shall rise, by reason of this Offering Memorandum or its contents. Prospective Purchasers are expected to review independently all documents relating to the property as to the accuracy and completeness of the information contained herein. All financial projections are provided for general reference purposes only. These projection have been based upon various assumptions relating to the general economy, competition and other factors beyond Lee & Associates, Los Angeles West, Inc. and the Owner’s reasonable control, and therefore, are subject to material variation.


28950 HORSE THIEF DRIVESTALLION SPRINGS, CALIFORNIA Opporunity to Capture Banquet, Wedding,

and Tournament Business

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EXECUTIVE SUMMARY

The Lodge at Horse Thief Country Club is now a permitted development for 50-rooms, a restaurant, bar and clubhouse to be built in Stallion Springs adjacent to Tehachapi California.

Horse Thief Country Club is currently an 18-hole public golf course (previously rated 4.5 stars by Golf Digest) located approximately 120 miles to the north-east of Los Angeles, between Bakersfield and Mojave in Kern County, California. The area is known for its Tehachapi Loop (trains), electricity generating wind turbines, and close proximity to Edwards Air Force Base. More importantly, the area offers a pleasant mountain climate that is 15 - 20 degrees cooler than the weather in its direct feeder markets (Bakersfield, Mojave, Lancaster, Palmdale, Santa Clarita, and Valencia).

• Occupancy conservatively estimated at 70% once stabalized

• Starting ADR (Average Daily Rate) of $129 year 1

• Starting RevPar (Revenue per Available Room) of $70.95 year 1

• Previously Demonstrated Demand


28950 HORSE THIEF DRIVESTALLION SPRINGS, CALIFORNIA Great Community Support

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EXECUTIVE SUMMARY CONT’D

The Horse Thief Resort golf course is well known and attracts many golfers from the central valley (Bakersfield), high desert (Lancaster/Palmdale), and Los Angeles markets. Prior to 2007, The Lodge at Tehachapi (which had 64 rooms and a full restaurant) was in operation on a hill overlooking the course. This allowed golfers to come up for multi-day visits and tournaments. However, The Lodge at Tehachapi (along with an adjacent +300 acres) was purchased by Woodward West (see http://www.woodwardwest.com) and developed into a very successful X Games-style camp. The Lodge was converted in to dormitories for the camp. Prior to the conversion, the Lodge averaged 70% occupancy and, with the ability for groups to “stay and play”, the course averaged between 30,000 and 35,000 rounds per year. When the Lodge was converted to dormitories, golf rounds dropped to 14,000 to 16,000 per year, and have remained there ever since. The current financials reflect this drop in rounds indicating the need for a new Lodge at this location. There is no competition of any kind within 15± miles and there is a demonstrated demand for rooms, banquet and wedding facilities, business, professional and other group conventions and meetings, and a restaurant bar to service Stallion Springs.

• Yield potential (Cap Rate) on the development starts at 9% and goes to

close to 12% by year five.

• Cash on Cash returns can be in excess of 20%

• Feeder opportunities from Woodward West, and the adjacent Time Share

• Identified golf operator with multiple courses in the Central Valley to create

fantastic marketing program.



GOLF AND LODGE PARKING

• 100 spaces.

WATER SOURCE

As California faces one of the most severe droughts on record, the issue of water availability for golf courses becomes increasingly critical. The lack of available water and its cost has jeopordized other Kern County courses, some of which have already closed. Fortunately, the current owner of Horse Thief Resort recently negotiated a long-term water agreement with the California Correctional Institution in Tehachapi which will allow the course to purchase recycled water for under $100/acre-foot (325,853 gallons). The net effect will be a long-term source for water availability at extremely competative rates.

Long-term, Sustainable, Low Cost Water Source

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CURRENT FACILITIES

Horse Thief Country Club is an 18-hole public golf course designed in 1974 by Bob E. Baldock and Robert L. Baldock. They have designed nearly eighty golf courses in California, Nevada and the Western United States. The course is 6,719 yards on 160 acres. It contains a driving range, a putting green and a new 2,000 SF pro shop and starter room overlooking the course and located within the lodge. A new 6,000 SF cart and equipment Barn will be built.• The course has held a 4.5 rating by Golf Digest.• No other Lodge/ Golf facility within 75 miles• High summer demand• Four seasons occupancy




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OFFERING SUMMARYProperty Horse Thief Country Club

Civic Address 28950 Horse Thief DriveStallion Springs, CA 93561

Offering Price $2,835,000Ownership Interest Fee Simple or Joint Venture

Includes Golf Course, Lodge Develop-ment Pad, Plans & Permits (Final Working Drawings by Buyer), Carts and Equipment

GOLF COURSE DESCRIPTIONNumber of Holes 18 Holes

Golf Course Architect Bob E. Baldock & Robert L. Baldock

Type of Golf Course Public CourseYear Built 1974

Site Area Golf Course 160 Acres - 6,678 Yardage Back Trees

Grasses Fairways, Roughs & Tees - Winter Rye, Greens - Bent

Public Facilities - Driving Range with room for 10-12 stations- Putting Green- Short Game Practice Area with Bunker- Lakes

Starter/ Proshop 2,000 SF within the Lodge overlooking the course

Cart/ Equipment Barn 6,000 SF to be built

Golf Course Had a 4.5 Star Rating from Golf Digest




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DEVELOPMENT PLAN

The existing clubhouse/restaurant/pro shop facility (as well as the unused tennis courts) will be demolished. A new 50-unit lodge with a new proshop,starter room, business office, large outside patio overlooking the course, and a restaurant, bar & lounge with a full liquor license will be built.

Land Size 160 AcresBuilding Size 32,829

Rooms 501st Floor - 6 Guest Rooms 11,621 SF2nd Floor - 21 Guest Rooms 10,318 SF3rd Floor - 23 Guest Rooms 10,950 SF

Restaurant/ Bar 2,500 SF and 2,500 SF deck with 120 Seats

Building Pad 52,000 SFLiquor License Full 47 License

Parking 100+ cars

Amenities - Conference area- Meeting Area- Pool- Business office- Outside event area

Built-in Demand from Woodward CampParents and Guests



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SITE PLAN

Filling an Underserved Demand



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SITE MAP

Outstanding Views and Location



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LOCATION MAP

No Competition in 15± Miles



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LOCATION MAPS

Great Access from Bakersfield




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CONSTRUCTION COST BREAKDOWNPre-Development Costs $770,901

Financing Costs $283,000Furniture Fixtures Equipment $729,908

Miscellaneous Costs (Startup Costs) $167,000Hard Construction Cost and Site Work $4,940,054

OH&P and Insurance $495,600Contingency $500,000

Golf Course Refurbishment $750,000

Total Development and Construction $8,636,463

Land Value $2,835,000

Total Project Value $11,471,463

CONSTRUCTION COSTS

The Lodge and Restaurant is designed by Steve Keike of Bakersfield, California. It will be a three story, Type V construction containing 32,829 SF, parking for 100+ cars that currently exists, and a new cart barn to be built adjacent to the lodge. The CUP has been approved, and the project can break ground after completion of the working drawings.

We have received preliminary bids from Wallace and Smith out of Bakersfield. The bids include a premium for travel to the Stallion Springs Market, OH&D, and are based on an 8-10 month construction period.

Grading can start within 4-6 weeks.

Ready to Break Ground




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PRO FORMA OPERATING INCOME YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Total Available Rooms 18,250 18,250 18,250 18,250 18,250Occupancy 55% 60% 65% 70% 70&

ADR $129.00 $132.87 $136.86 $140.96 $145.19RevPAR $70.95 $79.72 $88.96 $98.67 $101.63

Room Revenue $1,294,838 $1,454,927 $1,623,455 $1,800,787 $1,854,810Food & Beverage Revenue $1,170,166 $1,384,846 $1,527,229 $1,681,399 $1,824,922

Other Revenue $9,681 $10,319 $10,697 $10,987 $11,246Total Revenue $2,474,684 $2,850,091 $3,161,382 $3,493,173 $3,690,978

Total Expenses $1,865,136 $2,073,643 $2,246,280 $2,398,698 $2,522,246

Net Lodge, F&B Income $609,549 $776,448 $915,102 $1,094,475 $1,168,732Net Golf Income (25,000-35,000 Rounds) $150,000 $157,500 $165,375 $173,644 $182,326

Miscellaneous Income $77,690 $87,296 $97,407 $108,047 $111,289Total Income $837,239 $1,021,243 $1,177,884 $1,376,166 $1,462,347

Return on Cost Cap Rate 7.30% 8.90% 10.27% 12.00% 12.75%

Adjacent Timeshare will Drive Room Nights

- Construction Cost Breakdown- Lodge Plans- Detailed Lodge Operating Pro Forma- Detailed Golf Operating Pro Forma

Available on Request


28950 HORSE THIEF DRIVESTALLION SPRINGS, CALIFORNIA Beautiful Four Season Mountain Location

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MARKET OVERVIEW

Tehachapi is a city that was incorporated in 1909, located near Bakersfield and Mojave in Kern County, California. Demand generators for hotel room nights include:1. The Tehachapi Loop, a 0.73 -mile (1.17 km) long spiral, or helix, on the Union Pacific Railroad line though Tehachapi Pass. The line connects Bakersfield and the San Joaquin Valley to Mojave in the Mojave Desert. The line, which sees an average of almost 40 trains each day, is one of the busiest single-track mainlines in the world;2. Tehachapi Pass Wind Farm, which was one of the first large-scale wind farms installed in the U.S. (requiring consistent maintenance from maintenance crews); and 3. Edwards Air Force Base, a United States Air Force installation located approximately 22 miles (35 km) northeast of Lancaster which is home to the Air Force Test Center, the U.S. Air Force Test Pilot School, NASA’s Armstrong Flight Research Center, and considerable test facilities utilized by America’s commercial aerospace industry.

As of the census of 2000 there are 10,957 people, 2,533 households, and 1,709 families residing in the city. The population density is 1,144.0 people per square mile (441.6/km2). there are 2,914 housing units at an average density of 304.2/sq mi (117.4/km2). The racial makeup of the city is 57.17% White, 13.80% Black or African American, 1.35% Native America, 0.74% Asian, 0.16% Pacific Islander, 23.82% from other races, and 2.97% from two or more races. 32.70% of the population is Hispanic or Latino of any race.

There are 2,533 households out of which 35.6% have children under the age of 18 living with them, 47.5% are married couples living together, and 32.5% are non-families. 28.8% of all households are made up of individuals and 13.5% have someone living alone who is 65 years of age or older. The average household size is 2.59 and the average family size is 3.19.

In the city, the population is spread out with 18.5% under the age of 18, 12.9% from 18 to 24, 42.7% from 25 to 44, 16.5% from 45 to 64, and 9.4% who are 65 years of age or older. The median age is 33 years. The median income for a family is $40,030. Males have a median income of $50,446 versus $26,023 for females. The per capita income for the city is $18,220.



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