RE:RE:RE:RE:RE:RE:USDA 502D - Direct Home Loan Program - NavajojoeInteresting to see the SEC has had Greenbriar remove the ProForma Altus Report pdf from the corporate presentation site.
Reviewing the Altus Report you can see the following -
"Additionally, we are carrying a budget of $17,224,210 for site servicing costs. These costs are based on an engineer’s estimate completed by DeWalt Corporation dated
June 4, 2019. We note this estimate also includes a 20% contingency within the budget."
Utilizing the California Department of General Services Construction Cost Index (link added below) the cost increase from June 2019 (6854) to October 2022 (8712) as a 21% cost increase or $3.4M to the site servicing cost.
https://www.dgs.ca.gov/RESD/Resources/Page-Content/Real-Estate-Services-Division-Resources-List-Folder/DGS-California-Construction-Cost-Index-CCCI The construction costs (which were the lowest of any scale at $95 per square foot) have increased by over 10% since the proforma information was provided to Altus for the report. It would be interesting to see an actual appraisal document from Altus, as opposed the information being provided by GRB and developing a proforma report.
Financing costs are increasing significantly as well particularily when the Altus report was utilizing 100% equity provided by Greenbriar and not including the external financial costs.
The longer this takes to execute the direct impact to the project bottom line profits is racking up with cost increases.