Presentation Transcript

1. Beachside Tennis VillasLong Range Planning CommitteeOwner Update-January 2013
2. LONG RANGE PLANNINGWHY? Objectively evaluate our property in the marketplace Owners Real Estate Companies Rental Companies Consider Future Options to: Maintain market competitiveness Maximize recreational enjoyment for owners & guests Maximize property values and rental return
3. LRP COMMITTEECHARTER Recommend common property upgrades –to achieve objectives Offer specific preliminary design proposals Provide budgets and funding strategy to complete the projects.
4. AMENITIES SURVEY-Completed in March 2012 Compared BSTV to 7 other comparable properties in Palmetto Dunes, Leamington and Shelter Cove All properties were similar in : Complex size (# of units) Unit size 6 of 7 on ocean All considered resort quality Significant percentage (# of units) in the rental market. Compared properties in 17 categories
5. AMENITIES SURVEY-Observations BSTV- excellent quality of facilities and maintenance All other properties have: heated pools hot tubs children’s pool area upgraded pool area with landscaped lounging decks, Man-made shaded areas /structures Upgraded entrance areas for inviting and to protect guests from inclement weather. Owner storage
6. 5 PROPOSED PROJECTS Deck Enhancement New viewing and lounging deck Replace current wooden deck surface New fence New pool furniture Pool Heating & Equipment Efficiency Upgrade Heat the pool from early March to June and from early October through Thanksgiving Tropical Landscape Upgrade , Path & Amenities (Linear Park) Along the inside of dunes with swings, hammocks, fire pit and new tropical landscaping General and Bicycle Storage Building Enhance Main Entrances of both buildings
7. HOW MUCH WILL THIS COST? $1000 TO $1200/UNIT/YEAR FOR 3 YEARS ONLY FOR EVERYTHING! THAT IS LESS THAN $100/MO
8. WHAT’S THE PAYBACK? Increased rental rates 1 to 3 weeks additional rental weeks Increased property values Maximum personal enjoyment for owners, family and guests: Amenities to enjoy(lounging, fire pit, hammocks, etc) Take advantage of our setting and view Added recreational time (shoulder season)
9. What’s Not Recommended? Why? Hot Tub-cost, maintenance , controls Children’s Pool-New ADA Regs, impractical , costs Shade pavilions-umbrellas are cheaper and more flexible Beach walks- Sea Pines limitations, cost, maintenance
10. #1 Deck Enhancements
11. #1 Deck Enhancement-Benefits Maintain BSTV as a premier competitive property on Hilton Head Maximize: Rental revenue Resale value Owner enjoyment . Raised Additional deck space for lounging near the pool with 30+ added lounging Opportunity to enjoy the spectacular panoramic views of the beach and of the sunset. Facelift of current pool features Additional Amenities and spaces to congregate.
12. #1 - Deck Enhancement -Costs Anticipated Costs – $125,000 New Deck-$65,000 Resurface old wooden deck-$15,000 New Fence- $20,000 Replace Existing Pool furniture-$10,000 New Deck Furniture-$5,000 Contingency - $10,000 A capital reserve of $45,000 has already been allocated to fund maintenance of some of these items in the next 3 years. Net Additional cost of this project is $80,000 ($125,000 - $45,000).
13. #2 – POOL HEATING AND EQUIPMENT EFFICIENCY UPGRADES-WHY? Extend the swimming season and owner/guest enjoyment by 4 months. Significantly improve efficiency & reduce operating costs Increase opportunity and enjoyment for owners, families and guests Maintain competitiveness with other properties Increase rental rates and rental return through added bookings Compensate for the loss of the heated pool at the Plantation Club
14. #2 – POOL HEATING AND EQUIPMENT EFFICIENCY UPGRADES-Economic Justification 60% to 65% of the units are on the rental market. Extensive surveys of rental management data: In the spring and fall our rental occupancy is 50%. Comparable properties with heated pools are 65%+ Every rental company contacted agreed that this feature would allow increased year round rental rates AND 2-3 additional rental weeks in shoulder season Every rental management company surveyed said this was the #1 enhancement to improve rental revenues and keep up with the competition. Improved competitive position increases market value
15. #2 – POOL HEATING AND EQUIPMENT UPGRADES-Costs Anticipated Project Costs - $55,000 New heat pumps - $35,000 Improve the Efficiency of the current system - $15,000 Contingency - $5,000 Capital Reserve set-aside of $18,000 in the next 4 years to upgrade the equipment reduces the Net Additional Cost to $37,000 More efficient system is expected to reduce current annual energy costs by $3,000-$3600 per year. Additional costs for pool maintenance and heating is only about $8,000 per year. Net added cost is only about $5000 per year. On a per villa basis – Investment costs are only $680. Annual added operating costs ~ $50.
16. #3 LANDSCAPE, PATHWAY, LINEAR PARK & AMENITIES
17. #3- LANDSCAPE UPGRADE-COSTS AND BENEFITS Anticipated Costs - $45,000 Swings and deck structures-$5000 Re-landscaping, hammocks and fire pit-$35,000 Contingency - $5,000 Capital reserve set aside of $15,000 for landscape refurbishment reduces Net Added Cost to $30,000 Provides more common space to relax and a place for families to enjoy “s’mores” after dinner, looking out over the dunes to the beach Connects the pool with the dune crossing points.
18. #4 – BICYCLE AND GENERAL STORAGE BUILDING
19. #4 – BICYCLE AND GENERAL STORAGE BUILDING Anticipated Costs – $40,000 Added between pool house and parking lot on east side of building Space for approximately 30 bikes Added space for small lockable bins above bikes-approximately 3 foot wide X 6 foot high in front and 6 foot deep. Bike and general storage could be rented by owners to cover construction and maintenance costs for the building. $75 /year/bike & $250/year for storage pays building in 9 years
20. #5 – ENHANCE BUILDING ENTRANCES
21. #5 – ENHANCE BUILDING ENTRANCES Preliminary design concept with front structure and awning covered walk to building Added architectural design work needed to assure maximum attractiveness to entrance and consider lobby features. Provides attractive and clear entry point for both buildings. Gives covered access to each building from the parking lot. Anticipated costs - $50,000
22. SUMMARY OF COSTS Project #1 – Deck enhancement – $125,000 Project #2 –Pool Heating & Upgrade – $55,000 Project #3 – Landscape/Linear Park – $45,000 Subtotal $225,000 Less: Maintenance funding $78,000 Subtotal Net Cost $147,000 Project #4 – General Storage – $40,000 Project #5 – Enhance Main Entrances - $50,000 Subtotal Net Cost $90,000 All 5 projects – total cost of $315,000 Total net additional cost to owners- $237,000
23. PROPOSED FINANCING PLAN Finance project over 3 years Assessment on owners for 3 years Complete Projects 1 thru 3 in Winter 2013 Complete Projects 4 & 5 in 2014 Average anticipated assessment -$1000-$1200 per year for 3 years (Less Than $100/mo)
24. WHAT’S NEEDED NEXT? Power Point proposal on www.beachsidetennisvillas.net Presentation to Owners Meeting in March 2013 Winter/Spring-Gather Owners feedback Summer 2013 Refine plans and implementation strategy.