CASE STUDIES
GLOBAL HOLDINGS LLC
Stone Gate
EXPERTISE APPLIED TO:
- Feasibility Analysis for Acquisition and Development
- Capital Stack Modeling Analysis
The Client
Catalyst was retained by Global Holdings LLC., to under a full analysis and feasibility of the economic potential and developmental return on the investment.
The Project
Stone Gate is a 1,737-acre fully entitled and approved Master Plan Development comprising 5,000 residential lots, retail/commercial centers, schools, parks, and trail system amenities – located in Northwest Reno area.
The Scenario
The Reno/Sparks Metro Area is one of the fastest growing residential markets in the Western United States. In the past 18 months there has been a continual exodus from the urban centers of California and the Pacific Northwest into northwestern Nevada.
Catalyst reviewed over a thousand documents associated with the development entitlements and approval of the project by the City of Reno.
Project Details
Catalyst developed a cost stacking matrix for the development which allowed the client to view the potential future changes in the market based on revisions to production products for various housing types and commercial/retain facilities. Included in the feasibility matrix was the vertical integration modeling for phased capital investment over the Master Plan Buildout.
The Vertical integration and capital stack modeling analysis focused on the necessity to front load the infrastructure installation and amortize cost recovery on a lot-by-lot sales basis over a yearly, five-year, and ten-year investment period.
The 15-year phased buildout of the project represented a return on investment of weighted and averaged 35%.
Based on the review, analysis, and modeling – Catalyst recommended an acquisition of the entire Master Plan Development for a bulk sale of $100,000,000.
