Sage Ranch Current ValueIn order to have any understanding as to the present value of Sage Ranch we can merely turn to the company which we've been told GRB optioned/purchased the Sage Ranch lands from whom went bankrupt (who is still operating), Tehachapi-Et Ventures Llc or Tower Investments.
Tower Investments has the 9ac.(96) town homes on the block for $2.04M or just over $21,000 per unit.
The entire package including all drawings and ready for permitting is at the exact same point as Sage Ranch.
The listing has been available for four months now.
https://www.loopnet.ca/Listing/NWC-Pinion-St-Tehachapi-CA/31321858/ Equate this to Sage Ranch's (995) units times $21,000 is a present value of just over $20.9M.
Deduct from this all the corporate water rights of $4M ($2M to Jeff, $1M to Ronnie and $1M to Morris) + $13.4M in total liabilities.
Now you can see why VOYA is only willing to provide a $12M loan
secured on the properties.
Definitely a far cry from the $181M you were lead too believe.
Sven, you can actually open the pdf files on the link and get a proper overview of the costs related to the project.
And don't forget that if they were to sell the lands (like Tower is) in their present state they would also be paying the break away fees and warrants to VOYA.