December 2017 Monthly Status Report & Sales and Marketing Report

Transcription

1 December 2017 Monthly Status Report & Sales and Marketing Report Issued on: February 14, 2018

2 December 2017 The Colonnade of Estero Status Report TABLE OF CONTENTS Page I. INTRODUCTION...3 II. EXECUTIVE SUMMARY...3 III. PROJECT SCOPE AND PRICING...4 IV. PRE-FINANCE CAPITAL EXPENDITURES TO DATE...5 V. DEVELOPMENT...5 VI. MARKETING...6 VII. PROJECT MILESTONE SCHEDULE...6 APPENDICES APPENDIX A: Pre-Finance Cash Forecast APPENDIX B: Project Team 2

3 December 2017 The Colonnade of Estero Status Report I. INTRODUCTION Pursuant to the Development Consulting Agreement between GCD Florida, LLC ( Greystone ) and VOANS SW Florida Healthcare, Inc. (the Corporation ), Greystone is pleased to provide a summary of development, marketing and financial progress for the Colonnade of Estero project (the Project ) to be developed in the Village of Estero in Lee Country, Florida. Monthly Sales and Marketing information contained herein, provided pursuant to Section 2(a) of Appendix B to the Supplemental Indenture for Obligation No. 2, as well as Development related activity, reflects progress through January 31, Pre-finance budget information reflects activity through December 31, 2017, and is provided pursuant to Section 2 of Appendix B to the Supplemental Indenture for Obligation No. 2. II. EXECUTIVE SUMMARY Subsequent to the selection of Manhattan Construction as the preconstruction consultant, the development team performed a preliminary construction cost estimating exercise to determine consistency with previous estimates. Upon completion of this exercise, the development team has worked toward completion of the Schematic Design documents with the objective of issuing Design Development documents March 5, 2018 and Design Development construction cost estimate pricing in early April As the development team makes progress on design efforts, substantial progress has been made on the Permanent Information Center. To date, interior framing has been completed with mechanical and electrical system rough-ins ongoing. The Permanent Information Center build out and is on pace for a mid-march Completion, ahead of the April Conversion Program start. As of January 31, 2018, the marketing team has completed four priority events, resulting in 42 Priority Members signed up. As the team looks ahead to future events at the Estero Country Club and Bonita Springs Country Club, higher attendance volumes are anticipated. To date, the Priority Survey sent on December 20 has yield a response rate of 2.4%, representing 380 leads, exceeding Greystone s historical experience. The marketing team has planned four seminars in both February and March, with an additional two Priority Seminars planned in April. As of the date of this report the Project is progressing on schedule. As described further herein, the Project is on budget as of December 31,

4 December 2017 The Colonnade of Estero Status Report III. PROJECT SCOPE AND PRICING The current Project scope and pricing are detailed in Table 1 below. TABLE 1 PROJECT SCOPE AND PRICING Unit Mix and Pricing Unit Mix Unit Size (SF) Monthly Service Fee Entrance Fee Independent Living 1BR/1BTH Standard $ 3,178 $ 299,995 1BR/1.5BTH Standard Powder , ,995 1BR/1.5BTH Deluxe , ,995 1BR/1.5BTH Deluxe Corner , ,995 1BR/1.5BTH Deluxe Den , ,995 2BR/2BTH Deluxe 26 1,111 4, ,995 2BR/2BTH Deluxe Plus 3 1,172 4, ,995 2BR/2BTH Premium 12 1,191 4, ,995 2BR/2BTH Premium Plus 9 1,251 4, ,995 Total / Weighted Average $ 4,012 $ 402,153 Assisted Living 1BR/1BTH Standard A $ 5,830 1BR/1BTH Standard B ,830 1BR/1BTH Traditional ,936 1BR/1BTH Deluxe A ,936 1BR/1BTH Deluxe B ,936 1BR/1BTH Special ,936 2BR/2BTH Standard ,572 Total / Weighted Average $ 5,930 Memory Support Private Suite A $ 6,763 Private Suite B ,763 Total / Weighted Average $ 6,763 Skilled Nursing 2021 Per Diem Rate Private Standard Medicare Unit Type Total / Weighted Average $ $

5 December 2017 The Colonnade of Estero Status Report IV. PRE-FINANCE CAPITAL EXPENDITURES TO DATE Through December 31, 2017, $8,228,778 of the total $15,273,500 pre-finance budget has been spent. Projected amounts remaining to be incurred through September 2019 are $7,044,722. As of December 31, 2017, total forecasted pre-finance expenditures are in line with budget as summarized in Table 2 below. TABLE 2 SUMMARY PRE-FINANCE CASH FORECAST ($000) Total Budget Incurred through December 31, 2017 Current Forecast Variance Land Related $ 5,957 $ 5,242 $ 5,957 $ - Design and Engineering 3, ,087 - Construction Indirect Planning and Development 1, ,449 - Financing 1,249 1,080 1,249 - Marketing 2, ,600 - Other Costs Total Pre-Finance $ 15,274 $ 8,229 $ 15,274 $ - Refer to Appendix A for the full pre-finance cash forecast. V. DEVELOPMENT The development team activities have continued to progress as the development team has neared completion of the Schematic Design process and has begun the Design Development phase and update the construction budget in preparation for the Design Development phase of the Project. After selecting Manhattan Construction as the Preconstruction Consultant in December 2017, the development team completed the Schematic Design review and proceeded into the Design Development phase in January. The Design Development plans and specifications will be issued by March 5, 2018 to support the following Design Development construction cost estimate pricing effort, expected in early April The development team has completed planning and budgeting for the Permanent Information Center build-out and obtained the final construction agreement from Manhattan, allowing construction of the Permanent Information Center to commence. To date, framing has been completed with electrical and mechanical system rough-ins ongoing. Completion of construction on the Permanent Information Center is still on schedule for mid-march completion. Interior Design FF&E, Low Voltage equipment, and Marketing startup activities will commence immediately after the Certificate of Occupancy is issued. Looking ahead, the development team has scheduled a design review workshop with the Village of Estero for February 14, the first step in the site plan approval process. Representatives of the Corporation, Greystone, AG Architecture, Manhattan Construction, Landscape Architects, Inc., and Hole Montes will attend this meeting. 5

6 December 2017 The Colonnade of Estero Status Report VI. MARKETING The primary marketing team has been identified and currently consists of a Sales Director, one Sales Counselor, and one Sales and Marketing Assistant, while the recruitment of an additional Sales Counselor is on-going. The Sales Team is temporarily housed in executive office suites about two miles from the Permanent Information Center. The Permanent Information Center is under renovation and is located adjacent to where the community will be built. Priority Seminar activities began in January, with four seminars per month planned each month January, February and March. An additional 2 seminars were added for the 2 nd week of April. The January Seminars were held at the Estero Embassy Suites Hotel about 1.5 miles from the site of the proposed community. To date, the January seminars have resulted in 121 buying units in attendance, converted into 42 Priority Members, which suggests an average subscription ratio of 34.7%. February Seminars will be held at the Estero Country Club and March Seminars will be held at The Bonita Springs Country Club. The results of the direct-mail survey yielded a total of 380 responses from approximately 15,800 mailed surveys. This represents a 2.4% return rate on surveys. GlynnDevins has completed the Priority Brochure and is scheduled to start production on remaining collateral materials in the in February. A website splash page is expected to go live the week of February 12 with a full website to be developed later in the Project. The splash page has the capability to accept RSVP s to events and Priority Deposits. VII. PROJECT MILESTONE SCHEDULE Key Project milestones are listed in Table 3. As of the date of this report, the Project is progressing on schedule. 6

7 December 2017 The Colonnade of Estero Status Report TABLE 3 PROJECT MILESTONE SCHEDULE Project Milestone Planned Date BANs Financing Complete Begin Priority Program Complete Begin Pre-Sales April 2018 Achieve 70% - 75% Pre-Sales June 2019 Permanent Financing/Construction Start September 2019 Independent Living First Occupancy February 2021 AL, MS, SNF First Occupancy May/June 2021 Achieve Stabilized Occupancy January

8 Appendix A Pre-Finance Cash Forecast

9 VOA Estero Pre-finance Cash Forecast As of December 31, 2017 Approved Actual Costs Jun-18 Forecasted 2017 BANs Paid Through to Pre-Finance Budget Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jun-19 Expenditures Variance Land Control Land Options, Purchase, & Interest ( 5) 5,813,881 5,150,913 36,832 36,832 36,832 36,832 36,832 36, ,811 5,813,882 (0) Engineering & Survey ( 6) 55,673 39,306 10, ,000 55,673 0 Legal, Title & Closing ( 7) 40,200 40, ,200 0 Zoning, Special Permits & Fees ( 8) 46,860 11,777 35, ,860 0 Total Land Control 5,956,614 5,242,196 82,281 36,832 36,832 36,832 36,832 36, ,811 5,956,614 (0) Design & Engineering Architect & Consultants ( 9) 2,653, , , , , , , ,576 1,275,876 2,653,125 0 Civil Engineer (10) 309,275 84, ,341 25,500 18,000 29,732 8,000 8,000 35, ,275 0 Reimbursables (11) 125,000 38,811 23,085 15,500 28,197 7,000 8,407 2,000 4, ,000 0 Construction Administration (12) Total Design & Engineering 3,087, , , , , , , ,576 1,315,501 3,087,400 0 Construction - Direct (13-20) Construction - Indirect Construction Management (21) Permits/Offsites/Pro Rata Fees (22) 10,480 3, ,280 10,480 0 Furnishings, Fixtures, Equipment (23) Total Construction - Indirect 10,480 3, ,280 10,480 0 Development Fees (24) 1,142, , ,000 82,500 22,500 7,500 7,500 7, ,000 1,142,500 0 Planning & Development Initial Planning (25) 92,500 92, ,500 0 Administrative Costs (26) 43,225 23,100 4,200 2, ,725 43,225 0 Other Development Related Expenses (27) 170,486 65,610 2,798 2,200 2,200 2,200 2,200 2,200 93, ,486 0 Total Planning & Development 306, ,210 6,998 5,088 2,988 2,463 2,463 2, , ,211 0 Financing Issuance Expenses (29) 1,249,001 1,080,304 15, ,697 1,249,001 0 Funded Credit Costs (30) Total Financing 1,249,001 1,080,304 15, ,697 1,249,001 0 Marketing Personnel (31) 698,112 47,549 26,482 23,769 51,056 42,399 35,338 31, , ,112 0 Media & Promotions (32) 1,007, ,640 57,273 57,273 46,273 46,273 46,273 46, ,977 1,007,980 0 Office Operations/Administration (33) 222,908 23,277 10,593 10,593 10,893 10,593 10,593 10, , ,908 0 Office/Marketing Set-Up (34) 442,500 58,348 64, ,712 44,312 86,848 2,712 2,712 44, ,500 0 Marketing Materials Set-Up (35) 228,500 5,497 17, , , , ,500 0 Total Marketing 2,600, , , , , ,112 94,916 95,536 1,501,919 2,600,000 0 Other Costs Legal, Taxes, Insurance & Interest (36) 671, ,040 10,000 93,333 93,333 32, , ,294 0 Project Contingency (40) 250, , ,000 0 Total Other Costs 921, ,040 10,000 93,333 93,333 32, , ,294 0 Actual/Projected Total Cash Requirements 15,273,500 8,228, , , , , , ,906 4,356,213 15,273,500 (0)

10 Appendix B Project Team

11 November 2017 The Colonnade of Estero Status Report OWNER VOANS SW Florida Healthcare, Inc Santa Barbara Boulevard Cape Coral, FL Telephone Fax Wayne Olson, Executive Vice President (VOANS) (952) (952) Kevin Ahmadi, Secretary / Assistant Treasurer (239) (239) kevina@gulfcoastvillage.org DEVELOPMENT CONSULTANT Greystone Communities, Inc. 225 E. John Carpenter Freeway, Suite 700 Irving, TX (972) (972) John Spooner, Co-CEO (972) (972) jspooner@greystonecommunities.com Mark Andrews, Co-CEO (972) (972) mandrews@greystonecommunities.com Planning & Finance Stuart Jackson, Senior Vice President (972) (972) sjackson@greystonecommunities.com Matthew Aube, Vice President (972) (972) maube@greystonecommunities.com Kurt Muellner, Associate (972) (972) kmuellner@greystonecommunities.com Development Joel Holmes, Corporate Vice President (972) (972) jholmes@greystonecommunities.com Michael Reed, Associate (972) (972) mreed@greystonecommunities.com Marketing Merna Smith, Senior Vice President (972) (972) msmith@greystonecommunities.com Mary Krantz, Corporate Vice President (972) (972) mkrantz@greystonecommunities.com Management Edward Thorne, First Vice President (972) (972) ethorne@greystonecommunities.com Sue Plaster, Vice President (972) (972) splaster@greystonecommunities.com Client Services Accounting Tracy Belanger, Senior Manager (972) (972) tbelanger@greystonecommunities.com PROJECT ARCHITECT AG Architecture, Inc Underwood Avenue, Suite 301 Wauwatosa, WI (414) (414) Gene Guszkowski, Senior Principal (414) ergusz@agarch.com John Cronin, Principal/Senior Design Architect (414) jjcron@agarch.com Andy Korb, Team Lead (414) ajkorb@agarch.com Maggie Iliff, Architect 11

12 November 2017 The Colonnade of Estero Status Report PRECONSTRUCTION CONSULTANT Manhattan Construction Westview Drive, Naples, FL Telephone Fax (239) (239) Gordon Knapp, Senior Vice President Southwest (239) Florida KP Pezeshkan, Vice President of Business (239) Development Southwest Florida John Begani, Chief Estimator (239) Josh Willard, Project Manager (239) UNDERWRITER Herbert J. Sims & Co., Inc Post Road, Suite 301 Fairfield, CT (800) (203) Mark Landreville, Executive Vice President (952) Christie Rappl, Senior Associate (952)