Two developers plan a 698-acre rural property with 18 residential lots, bison, cannabis, bottled water, and agritourism. They project $2 million annual cash flow with a 4.89% debt-service coverage ratio, but need grant funding since selling six 40-acre parcels at $240k each raises only $1.4 million against $10 million in non-cannabis costs.
Are you doing deals like this? 18 lots, 1 master utility lot, 80 acres for separate cannabis, 360 for the bison, 240 for the other lots.
So it says I'm building a real master plan screen, not just a concept pad. Parcel map logic, utility water district concept, operating mixture, and future value view.
Let's just cover the highlights. Let's just cover the highlights. I would not market equal irrigation rights to all 18 lots yet. The appraisal and executive summary both say that the property water position is based on 13 unadjudicated vested claims. So what that means is that it's telling us that, you know, we want to make sure that we, you know, have the irrigation use set up for the ones that have the actual property. So now why, why is this structure the right one? You got 12 greenhouses, you got labs, manufactured homes, all that stuff on there. Water district. I would not start by trying to form a formal statutory irrigation district. 360 acres for, for bison is good. We've got our 6 ag lots right there. That's good. So we've got a margin of 24% on the bison. Bottled water has a 22% margin, 60% on utilities for water services, ag education and tourism is 45%. Cannabis is holding on its own. So stabilized cash flow is $2 million a year. So a combined ecosystem shows that the holding company has $2 million. So now where we're at is we've got $10 million for the non-cannabis holding company costs. If you sold, uh, 6 serviced 40-acre parcels at $240 apiece, that only generates $1.4 million. So we need the grant. So then the total Ecosystem capital, including cannabis, is $12.7 million annually. So, financial stability of all of this shows that it's producing about a 4.89% DSCR for the cash flow. So now these are things that are making sense as far as like for bankable product, bankable document. Best version of this deal says 18 lots, 1 master utility lot, 80 acres for separate cannabis, 360 for the bison. 240 for the other lot. So it was asking more about the development side of it. But I don't really like diving into what it's going to cost to build something until I know what it's going to cost to make, like what we're going to make from it if we spend that. Right. So that's what I'm saying. I think it answered that question based on what we've seen there with $12 million net income a year on that deal.
