Tommy Dobczyk walks through a $230 million real estate project split across three parcels. Each needs roads, water, electric, and sewer. The team plans to develop only the central parcel while leaving the other two untouched, but Tommy notes the whole thing feels convoluted and unclear.
Are you in the deal room?
I wouldn't buy a vacation home next to the swamp. So let me just pencil it out so that there's understanding. We've got a track of land. It's split into 3 sections like this. 1, 2, 3. In this, you're going to need roads, right? In this, you're going to need water, electric, sewer, right? My understanding, Adam and his partners only want to build that one right there, right?
Okay.
Is that not what I'm hearing?
That's how I understand it.
Okay. And they want to let these sit with nothing done to them, correct? That's my if I'm correct, or is that not what I'm understanding?
I don't fully understand this project. It feels very convoluted.
This is where they have the multi-family, 12 acres, already blueprinted, permitted. Down here they have apartments, and I'm going to call that the commercial side. Okay, okay. But they don't— they haven't just approved, they don't have permits for it, right? They have no permits. And then back here is 200 houses, single-family residences, whatever you want to call it, right? So all that exists back here, but this is just, this is just conceptual. They don't have— there's no drawings for this, there's no blueprints for it, there's no permits for it. It's just a conceptual drawing. This whole project's cost— called a master plan development. So with it as a master plan development, this being how many ever units or whatever, let's just call this a, a $40 million development. Okay, this one down here, the apartment's another $40 million. And all these single-family homes back here, to build all these single-family homes is going to be $150 million. Build them all. Okay, so between these two funds or three funds, you have a total of $230 million, right? So you got a $230 million development right here. Okay.
