David Powell

Guerneville, CA (USA)
Role(s):
Founder/Owner/Principal

Nighthawk's Inn and Spa

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Location: Guerneville
Industry: Real Estate
Year Founded: 2006
Number Employees: 1-10 people
Description: I am building an upscale Bed and Breakfast Inn on the Russian River in Sonoma County California's Wine Country (where the vineyards meet the redwoods). I purchased 1/2 acre several years ago and have since been going through the tedious process of obtaining building permits to construct a 3000 sq ft Bed and Breakfast Inn with 4 Guest Bedrooms and 1 Owner's Bedroom (as required by county building zoning ordinance). The site is directly on a state highway (Hwy 116) and also directly on the Russian River. I have already invested almost all of my personal life savings in the project (approximately $300k). To date I have developed the site (previously UNDEVELOPED) to include utilities (electricity, water, sewer, telephone, cable TV, high-speed Internet and propane gas). I have also done extensive landscaping of the site and already begun basic excavation of the foundation for the building(s). I designed the Inn and Spa myself and with the assistance of an Architectural firm in Sonoma, CA. Along with civil engineers, structural engineers. energy consultants and three sub-contractors (for the sewer, electricity and propane gas installations) have produced a set of plans which were approved by the County Building Permit Office earlier this month. I have begun to obtain estimates for the cost to construct the project. So far it appears that the average bid is $380k. I also estimate that I have approximately $250k equity in the property and currently have no outstanding loans, liens or other debt associated with the project. As the sole owner of the property, I transferred my entire interest in the property to an LLC which I created (Nighthawks Inn, LLC). I am the majority shareholder in the LLC and have one minority shareholder. I can provide a business plan to any interested investors upon request. I am seeking capital to construct the Inn and Spa with a completion date of June 2010. The Inn and Spa is located in the Russian River Recreation Area in Western Sonoma County. I expect to be able to repay the loan within 5 years from the date I receive the loan and within three years from the date the Inn opens for business. This estimate is based on average room rates in the area for the type of guest room I am going to build at $200 per night and also based on average occupancy rates in the area of 60%. As the principle owner, designer and general contractor for the project, I plan to live in the Inn and manage the property myself. It is possible that over time I may require the assistance of one other person for maintenance and cleaning purposes. If the Inn is completed by the Summer 2010 tourist season I could begin renting rooms by Memorial Day of that year. For further information contact David Powell at (URL removed) Thank you