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Group 4 Presentation Breona Hollins* Reggie Spencer Entrepuerial Strategy.

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Presentation on theme: "Group 4 Presentation Breona Hollins* Reggie Spencer Entrepuerial Strategy."— Presentation transcript:

1 Group 4 Presentation Breona Hollins* Reggie Spencer Entrepuerial Strategy

2 Mission Statement  Our goal is to develop properties that complement their surroundings, by associating ourselves with established profitable companies that can provide essential, yet beneficial products and services to the residents and patrons of our community.

3  Product Description  Management Team  Market Analysis  Advertisement  Competiton

4 Marketing Strategy  Opportunity:  UCD is the recipient of the 2012 T. Boone Pickens Foundation Grant for an expansion of a student act.  The grant has an estimated value of $2.38 million.  Attract other future tenants.

5 Marketing Stratgey  Survey  Fitness and Well Center  Restaurant, Bar and Billiard  Book Store and Retail  Coffee Shop  Designated Study Area

6 Terms and Condition  UNT System Building (formerly the UCD), will sign a five year lease under certain conditions and terms:  Follett Corporation will sign a five year lease under certain conditions and terms:

7 Financing  Revenue:  98% occupancy of loft  Retail tenants agree to pay rent during construction  Owners agree to invent $150k capital each  Infrastructure, plumbing, electrician, maintenance, security

8 Financing We are asking $2.9 million investment capital to cover over first year expenses and construction for rennovations. Expsene: Mortgage432,000 $12,000,000/30yrs*(1 + 8% interest annually) Infrasruture 1,200,00 0 Est. of Contractor for Rennovation Plumbing385,000 Est. of Contractor for Rennovation Heating and Air Conition245,500 Est. of Contractor for Rennovation Lighting/Fixtures75,000 Est. of Contractor for Rennovation Maintanence/Utillities80,000 Est. of Contractor for Rennovation (cost will decrease) Janitorial35,000 Will use existing janitorial services Security40,000 Will use existing janitorial services Administration Salary/Wages (annually)300,000 Auxillary Salary/Wages (annually)98,000 Total Expsene: 2,890,50 0

9 ROI Rate ue of Return on investment will 17.5% of Total Revenue annually. Investors can be bought out after 5 th year Revenue: Owner's Capital Investment600,000 (4)each owner invested $150,000 Rent from Condiminuim3,560,400 median price for rent $2300*126 # of apt*12months Rent from Student Center3,024,000 10,500 sq. ft.*suggested price of $24 sq. ft.*12 months Rent from Bookstore1,584,000 5,500 sq. ft.*suggested price of $24 sq. ft.*12 months Total Revenue:8,768,400 Dividend to shareholder1,534,470 17.5% * Total Revenue 8,768,400 Owner's Capital (Bonus)1,446,786 20% of Total Revenue after paying shareholers 7,233,930


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