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InvestmentOverview
- 1. Hall Road, LLC Executive Summary NOT AN OFFERING PROSPECTUS PLEASE REFER TO PRIVATE PLACEMENT MEMORANDUM FOR ADDITIONAL INFORMATION AND DISCLOSURES 0
- 2. Company Overview Paladin Estates is a fully-approved subdivision in scenic and historic Chester Township in Morris County, N.J. The property is a prime parcel, divided from the country estate of Henry Luce II, founder of Time and Fortune. The site is one of the last sites remaining for development in the area; which is protected under the it The Highlands Preservation Act. The community will be built in two phases. The first phase features 11 high-end homes on 2+acre building sites. The Company has completed all approvals, sitework, and infrastructure, and is currently constructing the first two homes. Homes will be built to the highest standards of luxury, quality and Green Building (LE.E.D. Certification). 1
- 3. Historic Estate Property The property is divided from the grounds of an historic country estate. The surrounding area is high-end residential. The site has grandfathered approvals in the Highlands Preservation area. Historic Estate Property Unspoiled Natural Beauty 2
- 4. Showcase Residences Each residence will be a custom creation. The first two residences are being built on spec and will be used as a showcase and sales office. In addition to selling the first two homes, buyers will be able to select their lot and place deposits on the land, contracting with Paladin Homes to build the final residence. 3
- 5. Construction Progress There is substantial progress on the construction of the first two residences, which are now being offered for sale during Spring 2011. French Manor Georgian 4
- 6. The Locale Morris County is the 7th most affluent county in the U.S., according to Forbes. Neighboring Somerset County (3 miles from the project location) is the 6th most affluent county in the U.S. -- by per capita income. The region, known as the Somerset Hills combines natural beauty and pleasant suburban living with proximity to metropolitan surroundings. Much of its beauty has been protected and preserved: The 13,000-acre county park system is noted for its recreational facilities which includes outdoor education centers, a marina, golf courses, a riding stable, indoor ice skating arena, cultural center, arboretums, and numerous types of hiking, The area work force exceeds 240,000. More than 50,000 are employed within the county at world headquarters and numerous research centers, and laboratories. The Morris County Chamber of Commerce reports there are 1,139 non-retail employers in the county with 10 or more employees. 5
- 7. Chester Township An Historic Gem in New Jersey Fox Hunt Country Chester Township is located 35 miles west of NYC, midway between I-78 and I-80. The county is well served by a network of major interstate, state, county and municipal roadways(I-78, I-80, I-287, Rt. 24), as well as bus, train and airport service. All of these factors, coupled with a high quality of life, have continued to attract many major companies and residents to the region. 6
- 8. High-End Positioning While many custom builders rely on cost-saving techniques to optimize margins, our business model focuses on delivering the finest, most durable quality available. The homes at Paladin Estates will be best-in-class, built to last generations and continue the legacy of the land: Design and construction will be custom and high-end throughout the homes. Residences will be green -- built to Gold/Platinum LEED certification standards. Homes are close to Hamilton Farm Golf and Riding Club a prestigious local club that has two premier golf courses and is home to the U.S. Equestrian team. Home buyers will be in the district with the areas best schools, including Mendham High School (rated 10 by bestschools.com) 7
- 9. Project Team Hall Road, LLC Hall Road, LLC brings substantial experience and expertise in all phases of the development process from site selection, project design, approvals, construction management, and successful sales and marketing. Paladin Homes, Inc. The general contractor, Paladin Homes, Inc. is experienced in all aspects of the building process, with demonstrated success and repeat customers. Max Parangi Architects -- Max Parangi is a gifted architect with an astute business sensibility. Mr. Parangi is well recognized for his residential designs and serves on several prestigious planning boards. He holds a doctoral degree in architecture from the University of Florence and is a Registered Architect in New York, New Jersey, Connecticut and Massachussetts. (www.maxparangi.com). CMX Engineering -- CMX is a national engineering and consulting firm, with 23 office locations throughout New Jersey, Arizona, Pennsylvania, New York, Maryland, Florida, Nevada and Mexico. CMX is an award-winning company that gained prominence because of its record of client service (www.cmxengineering.com) 8
- 10. Project Summary Project Name: Paladin Estates (www.PaladinEstates.com) Owner: Hall Road, LLC. Project Manager/ General Contactor: Paladin Homes, Inc Property Location: Chester Township, New Jersey Property Address: 1-16 Hall Road, Chester Township, New Jersey: Property Type: Fully approved subdivision, with all infrastructure in place. Current Status of Project: All approvals have been obtained; Construction underway on first two homes. Marketing launch in 1st Quarter 2011. Projected Absorption: 2-3 houses per year 9
- 11. Projected Financials Total Project REVENUE Home Closings-- Base Price $ 23,100,000 Lot Premiums $ 250,000 Options Income (Net) $ 2,200,000 TOTAL REVENUE $ 25,550,000 COSTS AND EXPENSES Land Acquisition Costs $ 5,320,000 Land Carry and Predevelopment $ 878,000 Land Development, Infrastructure, Permits $ 440,000 Construction Costs $ 12,100,000 Common Area Costs $ 430,000 Overhead, Marketing and Sales Commissions $ 1,749,000 Contingency Reserve (@5%) $ 605,000 TOTAL COSTS $ 21,522,000 NET PROFIT $ 4,028,000
- 12. Investment Overview Minimum Investment: $25,000 Investment Structure: Preferred Equity Description of Shares: Class A Membership Units earn a preferred return of 8% annually (paid first from profits), plus profit sharing. Time Commitment: Until project completion Target Return: 13-17% (annualized) Example for $100,000 investment (based on projected financials, assuming investment on 4/1/11) 2011 2012 2013 2014 2015 Total Purchase of Class A Units $ (100,000) $ - $ - $ - $ - $ (100,000) Preferred Return (@8%) $ 6,000 $ 8,000 $ 8,000 $ 4,000 $ - $ 26,000 Return of Investment Contribution $ - $ - $ 50,000 $ 50,000 $ - $ 100,000 Profit Distribution $ - $ - $ 7,390 $ 10,100 $ 25,240 $ 42,730 Total Investor Cash Flow $ (94,000) $ 8,000 $ 65,390 $ 64,100 $ 25,240 $ 68,730 Cumulative Investor Cash Flow $ (94,000) $ (86,000) $ (20,610) $ 43,490 $ 68,730 Projected Results (Investment on 4/1/11) Beginning Balance $100,000 Ending Balance $168,730 Investment Gain 68.73% Annualized Return (Sellout in 5 years) 13.75% Annualized Return (Sellout in 4.5 years) 15.27% Annualized Return (Sellout in 4 years) 17.18% Internal Rate of Return 23.62%