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Afton Airpark Estates AFTON AIRPARK ESTATES – AFTON, WY MARKET REPORT April 2007.

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Presentation on theme: "Afton Airpark Estates AFTON AIRPARK ESTATES – AFTON, WY MARKET REPORT April 2007."— Presentation transcript:

1 Afton Airpark Estates AFTON AIRPARK ESTATES – AFTON, WY MARKET REPORT April 2007

2 Afton Airpark Estates TABLE OF CONTENTS i. General Limiting Conditions……………………………… Introduction………………………………………………… Project Description……………………………………….. Summary of Findings & Recommendations.....……… Site Location..………………………………………………… Afton Airpark Development Features …………………..… Market Analysis ………………………………….…………… Supply Factors……………. ………………………………….. Demand Influences…….. ………………………………………. Lot Sales Program…………………………………………….. Appendix ………………………………………………………. 1 2 3 5 6 10 12 26 28 30 31

3 Afton Airpark Estates GENERAL LIMITING CONDITIONS Every reasonable effort has been made to ensure that the data contained in this Market and Financial Analysis Report reflect the most accurate and timely information possible as of the date the primary research was collected. The information contained in this report is based on estimates, assumptions, and other information developed by Norton Consulting and from their independent research and analysis effort and general knowledge of the industry. No responsibility is assumed for inaccuracies in reporting by Norton Consulting’s representatives or by any other data source used in the preparation of this report. No warranty or representation is made that any of the projected values or results contained in this study will be achieved. This study does not constitute an offer to sell or a solicitation of an offer to purchase any securities, nor shall there be any sale of securities in any state or other jurisdiction in which such sale, or any related offer or solicitation, would be unlawful prior to registration or qualification under the securities laws of that state or other jurisdiction. 1

4 Afton Airpark Estates Norton Consulting was retained by Barr/More LLC to produce a market and financial analysis report. The Afton Airpark Estates project is an airpark residential development located in Afton, Wyoming. The project originally envisioned Barr/More LLC, has become one the premier airpark residential developments in the US. This market report and master plan has been created to document the vision for the final phases of Afton Airpark Estates and provide recommendations for lot pricing. The market research process included visiting the site, collecting data from existing airpark communities in the US and analyzing aviation trends and other market data. This report was produced by Richard L. Norton and Darrin B. Davis of Norton Consulting’s North Palm Beach, Florida office. INTRODUCTION 2

5 Afton Airpark Estates 3 PROJECT DESCRIPTION Barr/More owns approximately 75 acres of land adjacent to and a part of the Afton, WY regional airport, which land is zoned for approximately 56 lots to be used for private residences, private airplane hangars and other related uses. The property is located in the town Afton, Wyoming and is approximately 60 miles south of Jackson Hole. With all the necessary permits and approvals in place, approximately one-half of the lots and hangar properties were sold during 2006. The project is unique in that it is the first Denver FAA supported private residential project adjacent to a federally maintained airport. The Afton Regional Airport budget for maintenance exceeds $250,000 / year. A full service Fixed Based Operation (FBO) is owned by a partnership. The FBO provides fuel and other aviation services.

6 Afton Airpark Estates PROJECT DESCRIPTION (continued) Summer Activities White water rafting & kayaking on the Snake River Drift Boat Trips along the scenic Salt River Fly and Bait Fishing Hiking, ATVs and Mountain Biking on Extensive US Forest Service lands 18-Hole Johnny Miller designed golf course in Afton and 36 holes (Star Valley) Water Skiing on the Palisade’s Reservoir Winter Activities World class Elk and Deer Hunting (Fall) Snowmobiling Cross Country Skiing Snowshoeing Skiing at Jackson Hole and Grand Targhee The property is located in the middle of an extensive outdoor recreation paradise (3.4 million acres Bridger-Teton National Forest). Nearby activities include: 4

7 Afton Airpark Estates SUMMARY OF FINDINGS The Afton Airpark Estates is a full service TTF (through the fence) supported airpark One of only a few FAA supported Airparks in the Rocky Mountain region (Denver) Private plane ground storage and hangar access is at a premium in Jackson Hole Afton Wyoming is central to thousands of acres of year-round recreational activities Real Estate in Jackson Hole is at premium 1-acre plus direct access hangar homes are marketable in western Wyoming Based on National and Regional comparables and recent sales patterns, pricing in excess of $150,000 to $250,000 per acre is supportable at the Afton Airpark Estates location. 5

8 Afton Airpark Estates SITE LOCATION The project is located on State Highway 89 within the city limits of Afton, Wyoming. 6 Subject site

9 Afton Airpark Estates SITE IMAGES Afton Airpark – Images Located in southwestern Wyoming’s Star Valley, Afton Airpark offers convenient access to majestic mountains, rivers and abundant wildlife habitat 7

10 Afton Airpark Estates Afton Area Images 8

11 Afton Airpark Estates SITE LOCATION Regional Perspective The site is, within a 1 hour drive of Jackson Hole. The drive between Afton and Jackson Hole has been enhanced by the widening of State Road 89 to accommodate passing lanes up the Snake River Canyon. The Highway is all weather and regularly maintained. Afton Jackson Hole 9

12 Afton Airpark Estates DEVELOPMENT FEATURES Development Features Majority of the lots are at least 1.1 acres 34 lots have sold 20 lots are still available Direct taxi way access to a 7200 foot runway Runway maintained both winter and summer Asphalt Lights Logistics and Service Full service FBO (Fixed Based Operation) FBO staff will be available to provide full range of services including fuel, oxygen, water etc. Home owner will be able to arrange for event catering, home cleaning, aircraft maintenance and other needs through FBO Travel needs of home owners and guests will be met including (rental car services, fishing guides, white water rafting tours, hunting guides, etc.) The property includes 47 available lots. 10

13 Afton Airpark Estates DEVELOPMENT FEATURES (continued) Development Features Afton is the home of AVIAT specialty airplane manufacturer; As a result mechanics are available at a reasonable cost Competitive Fees (Especially VS Jackson Hole) No landing fees No ramp fees Market best fuel prices Anticipated Covenant, Codes and Restrictions will be reasonable in context with an airpark Homes and full hangars allowed Place to store all winter and summer recreational vehicles, boats and equipment Owner or crew can stay in the home 11

14 Afton Airpark Estates MARKET ANALYSIS Supply Factors Overview of National Airpark Supply (US) Number of Airparks Location Airpark characteristics Available lots Pricing Regional Competitive Supply Alpine, WY Driggs, ID Market Implications of Restrictions on Jackson Hole Airport restrictions Real Estate Demand Factors Growth in aircraft handled by the FAA Growth in General Aviation Activity 12

15 Afton Airpark Estates MARKET ANALYSIS Supply Factors There are roughly 250 Airparks in the US. Florida has the largest number of airparks In the US. In comparison to other parts of the country, the Inter-mountain west has very few airparks despite the proximity of World class recreation. The term airpark means residential associated with aviation / air strips. 13

16 Afton Airpark Estates MARKET ANALYSIS Supply Factors The 250 airparks are: Mostly private Very few have commercial services Those that are public allow general access 14

17 Afton Airpark Estates MARKET ANALYSIS Supply Factors Most US Airparks are small (12 lots or less) 75 percent of all airparks have less than 50 total lots 75 percent of all airparks have less than 41 lots with direct taxiway access 15

18 Afton Airpark Estates MARKET ANALYSIS Supply Factors Only six airparks have runways longer than 5,000 feet. Afton Airpark is one of only three airparks in the country with a runway of 7,000+ feet. 16

19 Afton Airpark Estates Runway Length Requirements Cessna 402 TwinProp Gates Learjet 35 Jet Canadair RJ 200 Jet Boeing 757- 200 Jet Boeing 737- 300/400 Jet 4000 5000 6300 71006300 73006500 7300 5800 2500 17

20 Afton Airpark Estates MARKET ANALYSIS Selected Air Park Properties Source: www.airpark.com In the appendix to this report Norton Consulting has profiled selected airparks in the US.Although these airparks have been developed and organize somewhat differently than what is anticipated for Star Valley, they provide a benchmark sense of market parameters. Conclusions from those tables are as follows: The sample set includes upscale airparks in a resort / residential setting Runways types and lengths vary considerably; none offer the length and breadth of services promised at Afton. The larger developments do not offer direct taxiway service for but a a small proportion of their lots Afton, in contrast will offer 100 percent direct taxiway access/egress. Lot sizes range from 0.5 to 3 acres; the majority of the Afton Airpark lots will be in the 1.1 acre range, sufficient room for both a hangar and a home. Lot pricing ranges from $50,000 to $1.2 million depending on the quality of the development and the location; the median or central tendency of lot pricing is $250,000 range; current lot pricing at Afton ranges from $150,000 to $325,000. 18

21 Afton Airpark Estates MARKET ANALYSIS Regional Airparks and Air Strips Supply Factors There are two airpark properties that have limited comparability to the proposed Afton Airpark property. These are located in nearby Alpine, Wyoming and Driggs, Idaho. 19 Afton Driggs Alpine Jackson

22 Afton Airpark Estates Alpine Airpark is located on the north end of Star Valley on the northwest side of the town of Alpine, WY Runway is narrower and shorter than Afton (5,600 ft) Not maintained during winter Can only accommodate smaller aircraft Real estate opportunities at Alpine Airpark include a variety of condominiums attached to or adjacent to individual hangars 20 Alpine Airpark – Competitive Benchmark

23 Afton Airpark Estates Alpine Airpark Lakeview Villas (sold as condominiums) Single family villas surrounding a pond; approximately 75-100 yards from hangars Building pads 3,000 to 4,000 Sq Ft Eight units total; 4 sold at pre-construction prices Hangar sizes from 2,000 to 3,200 Sq Ft 2 BR / 2 BA villas from $375,000 to $525,000. Lakeview Villas 21

24 Afton Airpark Estates Alpine Airpark Executive Hangar Condominiums are 800 Sq Ft multi-level units attached to the individual hangars These eight units vary in price from $390,000 to $450,000 Prices start in this range and only include exterior finishes (interior finishes are additional) The included hangars range from 2,500 to 3,000 Sq Ft 22 Executive Hangar Condominiums

25 Afton Airpark Estates Alpine Airpark Windsock Condominiums Four unit condominium; 2 available Three bedroom 2.5 bath two level units Prices starting at $750,000 Build to suit interior finishes 23

26 Afton Airpark Estates Driggs, Idaho – Additional Regional Residential Airpark 24 Summary Not well executed development plans Land not being marketed professionally Lax Covenant Codes & Restrictions Parcels generally available for $80,000 per acre (unimproved)

27 Afton Airpark Estates DRIGGS Continued Connected subdivisions include: Mustang Ranch Flying Saddle Flying T and in the future Sweetwater – roughly $80,000 per acre (unimproved) Driggs Fly-In (in planning; Eric Bedford/developer) Unnamed (in planning; mixed use/hangars and industrial/ south side of airport / Melenes Bros; Alta Construction) Available Property in TTF Subdivisions Mustang Ranch; Lot 2 – 2.02 acres for $159,000 ($80,000 per acre) Flying Saddle; 6 adjacent lots approx. 1 acre each for $80,000 per acre 25

28 Afton Airpark Estates JACKSON HOLE MARKET The market for airpark and aviation related services in Afton is greatly enhanced by the restricted nature of the Jackson Hole Airport and the Jackson Hole Real Estate market Jackson Hole Airport Foot print cannot grow Only have two hangars Airport Authority reports over 100 requests for Hangar Space since January of 2004 With no hangar space there is no place to store recreational vehicles and equipment During the summer months planes are allowed to park on the ramps; fees for private jets run from $250 to $725 per night Jackson Hole Real Estate Market Specific constraints on future development Resale home and land prices at all time highs The residential real estate average transaction value was over $800,000 in 2004 as reported through MLS listings and closings Supply Factors 26

29 Afton Airpark Estates JACKSON HOLE Access/Use Fees 27

30 Afton Airpark Estates FACTORS INFLUENCING DEMAND General aviation continues to grow. 28

31 Afton Airpark Estates FACTORS INFLUENCING DEMAND Hours flown, jet fuel and aviation gasoline are projected to grow rapidly. 29

32 Afton Airpark Estates Lot Sales Afton Airpark Lot Sales Prices  After an initial period of pre-construction price discounting, per acre lot pricing has climbed through the $150,000 to $200,000 per acre level.  Afton Airpark lot pricing levels compare favorably with other real estate products in the regional and national market.  The unique value of whole ownership estate airpark living in the outlying Jackson Hole market suggests continued price escalation. 30

33 Afton Airpark Estates APPENDIX Appendix 31

34 Afton Airpark Estates Selected Airparks – General Description Source: www.airpark.com 32

35 Afton Airpark Estates Selected Airparks –Residential Characteristics Source: www.airpark.com 33

36 Afton Airpark Estates Selected Airparks –Residential Characteristics Source: www.airpark.com 34


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