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Transaction Overview- $4.575 Million senior secured loan,
5 year WAL, Maturity 12/31/2014
15% All in rate, 13% Payment In Kind, Free Cash Flow Sweep
25% Internal Rate of Return
Company Overview- A single family residential community atop a Mountain
Near Boone, Blowing Rock, and Banner Elk N.C.
Market Summary- A World Class resort and second home all age’s destination.
Four seasons of Activities. The number one ski and winter sports
destination in the South East. Golf, Hiking, Trout fishing,
Fine dining and shopping. Near the Blue Ridge parkway.
Financial Overview- Significant Equity value (Est. over $10 million).
Low annual operating cost (No management fees/salaries/expenses)
Golf and Tennis. 18 holes less than $600.00 a year unlimited.
No Club to Join!
Terms of New 1st Lien Note
Size of Note - $4,575,000.00
Security - 1st Lien on all Real Property and Assets of SP LLC.
Maturity - December 31, 2014, 5 Years
Coupon - Due quarterly
PIK Option - PIK for life, Payment option based on lot sales
Cash Option - Cash coupon begins at 2% and increases over the life of the loan (see schedule)
Cash Flow Sweep - Note holders have Full Cash sweep rights to lot sale proceeds (see model)
IRR - 25%
Annual Terms - Year 1 PIK interest 13% Cash Coupon 2%
Year 2 PIK interest 13% Cash Coupon 3%
Year 3 PIK interest 13% Cash Coupon 4%
Year 4 PIK interest 13% Cash Coupon 5%
Year 5 PIK interest 13% Cash Coupon 6%
Significant Equity Value
Substantial Investment to date
• Owners have contributed approximately $1.5 mil of cash equity thus far and thousands of
uncompensated hours promoting the development and negotiating water, sewer and road
• All profits have been reinvested. $5.6 mil in sales have been used to pay down land and
infrastructure costs (no partner distributions).
• Nearly $5.6 mil (land cost less sales and equity) already invested/reinvested into the project
• All entitlements in place. Significant portion of backbone community infrastructure
completed (roads, utilities, water, etc.). Roads cut throughout development. Sewer, water and
power through phase 2.
• Recreation Amenities pre date the community. Residents inherit
services as members of Sugar Mountain Village. Low rates on Golf, Skiing, Tennis, Hiking
and Biking trails etc. HOA dues are $240 per year.
1. Infrastructure $3.18 mil
2. Land acquisition costs $3.7 mil
3. Internet marketing $100,000
4. Marketing/Advertising $560,000
-Summary Terms of New Credit Facilities
Borrower: SP(the .Borrower.)
PIK Note: $4,525,000
Maturity: 2015 (5 years)
Collateral: First deed of Trust on substantially all real property of the Borrower and
pledge of borrower’s shares
Voluntary Prepayments: Permitted anytime with no prepayment penalty
Mandatory Prepayments: Cash Flow sweep on all lot sales
Term Loan Amortization: Commensurate with lot sales
Let me know, Thanks
Would your client be interested in student housing projects at major universities? I have a couple of opportunities with 15%+ yearly returns and an IRR of +/- 23%. let me know your interest. Peter Cotsirilos, CCIM firstname.lastname@example.org. 847-852-3209