Bruce Ziegler of Marina Ridge at Invstor.com

Bruce Ziegler

LaFollette, TN (USA)

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Marina Ridge

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Location: LaFollette

Industry: Real Estate

Year Founded: 2006

Number Employees: 1-10 people

Description: MARINA RIDGE - NORRIS LAKE, TN: Opening Statement: Marina Ridge is an existing development requiring additional funding for two reasons: (1) provide an exit strategy for a key partner who has been diagnosed with incurable leukemia; and, (2) provide the remaining 50 % partner (Bruce Ziegler) with short-term financing for the continuation of the project. The person(s) /entity providing funding may elect to: ~ be repaid their loaned funds after 12 (twelve) months after having been paid an above-market rate of interest for the use of money; or, ~ remain involved in the Marina Ridge development as an investor with an equity position. The preferred date for funding is April2009. The LTV is less than 50%. The amount being requested - depending upon how the refinancing is structured is between $300,000 and $1.3 million. The loan would be secured by the funding party(ies) holding a first mortgage on the acreage, valued at $2.5 million to include a Duplex constructed on the property currently valued at $425,000, which is both for sale and for rent. Description of the Development: Marina Ridge is a 35 acre residential development, located within the gated community of Deerfield Resort which in the heart of Norris Lake, Campbell County, TN. The name "Marina Ridge" is derived from the fact the parcel abuts the Deerfield Cove Marina and rises from the marina property to a high ridge - the tract has extremely high visibility within the resort, (URL removed). Norris Lake property is highly sought after - the water quality has been rated by the EPA and the TVA as having the cleanest water of all 53 reservoirs operated by the TVA in the SE United States. 85% of the 850 mile shoreline of Norris Lake is owned by the federal government, the state government or the TVA and as such is NOT available for development. Needless to say, these factors keep property values high. Lake front property purchased in 1988 for $20,000 per acre now re-sells for as much as $1 million per acre. Although not legally part of the Deerfield Resort, Marina Ridge property owners have access to all of the amenities of Deerfield Resort including: gated entrance / security service, swimming pool, tennis courts, sand volleyball court, children's playground, the only private air strip on Norris Lake, and use of / overlooks the only golf course on Norris Lake (18 hole championship Bobby Clampet signature course), and the Deerfield Cove Marina - which hosts the TIKI CLUB / only liquor license in the 5 county region which borders Norris Lake. Deerfield Resort is a 23 year old development which not only offers the amenities referenced above, but also takes pride in the 350 single family homes and an additional 140 condominiums and villas which have been constructed on this 800 acre peninsula. Deerfield is without question the longest established, most comprehensive, and most sought-after development for investment on the shoreline bordering 35,000 surface acres of water known as Norris Lake. 99% of the homes in Deerfield Resort are second / vacation / lake homes, with 95% of the property owners from out-of-state. Moreover, of the 500 (prox) homes and condos within the resort, nearly 30% of them rent part-time or full-time during the summer season ... Deerfield is known nationwide as "THE" place to rent for Norris Lake vacationers - no other development on Norris Lake has anywhere near the rental business as does Deerfield. This fact - coupled with the fact Deerfield is 85 % "built-out" makes the Marina Ridge project highly valuable to property owners who have a desire to use their units and/or rent them to others. There are currently 4 Appalachian style residences constructed on Marina Ridge in the 2,500 - 3,000 sq. ft. range ... 3 of them rent regularly at close to capacity. Marina Ridge is divided into two sections: ~ a 10 (ten) acre tract which has been subdivided into 11 single family home lots (9 of these lots are sold and 3 have Appalachian style homes constructed on them); and, ~ a 33 acre section which has been pre-approved for the construction of up to 800 bedrooms of residences / approximately 200 condos for which the site has already been prepared. This larger section has been pre-approved by the Campbell County Planning Commission as a "Condominium Regime" and HOA documents have been recorded and are on-file with the Campbell County Registrar. Marina Ridge has competitive advantages over other properties in our immediate area: 1. Location ... this tract is the first and last piece of land one sees when entering or leaving Deerfield Resort 2. City water ... hundreds of thousands of dollars have been invested in a 1.5 mile 8" diameter city water line directly to the Marina Ridge site ... and "we" own all 8,000 linear feet of it. This competitive advantage is significant - and important - for multiple reasons: ~ all 500 residences within the DF Resort operate from a continually failing system of old narrow (2") lines and 11 water wells - which is a problem for DF Resort; ~ city water to the Marina Ridge site offers not only better and guaranteed-safe water than that which is currently available in Deerfield, but water for full-pressure fire hydrants is also available - which cuts insurance costs significantly; ~ "owning" a city water line provides an infinite revenue stream from Marina Ridge property owners for the developers / owners of Marina Ridge; ~ this line has absorbed" ALL of the remaining city water capacity from the local utility for this region of the county, a scenario expected to last another 20 - 25 years 3. Underground Electric - installed by LUB. 90% of Deerfield Resort has above-ground electric lines - and has all the problems which accompany that type of installation ... power failures are frequent - especially during storms. All electric within Marina Ridge is underground and was installed by LaFollette Utilities - and will be maintained at their expense. The Opportunity: There are at least two separate and distinct opportunities for a prospective investor: 1. Short Term: $1.3 million is required as a loan to 50% partner Bruce Ziegler (author of this memo). These funds will be used to pay-of existing bank loans, a few remaining creditors, complete some esthetic infrastructure (pond construction, landscaping, etc.), and buy-out the only two other investors who wish to exit the partnership for personal reasons ... one of whom has been diagnosed with a terminal illness, the other is a longtime friend and the Physician treating the first. Each of these two investors own a 25% interest in the development. Ziegler is willing to pay a higher-than-market rate of interest for a new investor's commitment to carry the loan for at least 12 (twelve) months, and for not more than 18 (eighteen) months ... providing time for the economy to "settle down" and to restructure the project. The loan will be secured by the investor / lender being able to hold a non-encumbered first mortgage on the property. Note: The two exiting partners have reduced their buy-out asking price by more than $400,000 in the past few weeks, thus the short timing for the buy-out. 2. Long Term: Should the new investor(s) be interested in participating in the continued development of the Marina Ridge project, a new partnership / LLC alliance can be structured, with first right-of-refusal going to the investor(s) who first stepped forward with $1.3 million for the short-term loan. As much as a 50% equity ownership in the venture would be made available, which at present would include: (1) the property ($2 million value); (2) the existing Duplex ($425,000 value); and the promise of 7 (seven) revenue streams itemized below: ~ profit from the construction and sale of condominiums ... $15 million - $20 million over the next 5 - 8 years; and, ~ profit from the construction and sale of single family homes on the remaining 8 lots .... $1 million estimated pre-tax profit ~ profit from guaranteed "Buy-Backs", and re-selling existing units to new owners ~ profit from real estate commissions to be paid for new unit sales and re-sales ... developers can own a real estate company ~ profit from operating a 1.5 mile underground water line, 8" diameter / the water utility for providing water to the Marina Ridge property / condo owners as well as other properties adjacent to the 1.5 mile length of the water line, "forever" ~ profit from operating the "Marina Ridge Homeowner's Association" ... dues and fees collected from property / condo owners, ad infinitum ~ profit from operating the "Marina Ridge Rental Property Management Company" .... it is expected at least 50% of condos sold will participate in a rental program of some sort ... the current service charge for rental property management on Norris Lake is 35% - 40 % of gross rental income. Conservative projection below: 100 units (half of total) in rental pool renting 50 nights per year (half the available nights) = 5,000 rental nights / year 5000 rental nights / year x $200 average. night = $1,000,000 per year x 35 % = $350,000 per year Available Documents: There are many documents available for review ... the primary documents are: ~ Preliminary Master Plan and Survey - prepared by a Certified / Licensed Surveyor and Community Planner ~ Topography drawings of the entire tract ~ Soil Scientist's reports regarding waste disposal - which is exceptional (approved for 800 bedrooms worth of units) ~ Engineering drawings - prepared by a Certified Civil Engineer and approved by the State of Tennessee for an 8" water line - 80% installed and is currently functioning (line holds 21,000 gallons of water) and in use ~ Architectural renderings and "finished" drawings of the Condominium complex ~ Confidential Marketing Plan ~ January 2009 - of 95 TN counties, Campbell County is ranked number one in percentage growth of Tennessee Tourism - driven by Deerfield Resort, the premiere tourist site on Norris Lake I am appreciative of your taking the time to read about this project and would again like to stress the confidentiality of the contents of this document. This is a very unique opportunity to earn an above-market interest rate for secured loan, and / or significant ROI in the longer term. Please know I am also open to other suggestions as to how to structure this opportunity in another way in which all parties can benefit. Best regards, Bruce Ziegler (URL removed) Cell Phone (Phone # removed)(best for early mornings and evenings) Marina Ridge Office Number (Phone # removed)(best for daytime hours ...9:00 AM 5:00 PM)