Captain’s Cov

eat White Bay, Jamaica

Captain’s

at White Bay, JamaicaCove

Captain’sCoveat White Bay, Jamaica

Captain’sCoveat White Bay, Jamaica

•The center parcel has a complete and operational beach amenity that includes 80 Beach Set-ups, Stand Up Paddle Boards, Kayaks, Snorkel Gear and Jet Skis.•Licensed and insured.

CovCaptain’s

at White Bay, Jamaica

• Stand up Paddle board, kayak, jet ski, dive on the barrier reef that looks like an aquarium at the all inclusive resort Captain’s Cove

Captain’sCoveat White Bay, Jamaica

The existing structure on Parcel 1 has 7 rooms with baths, a fully appointed kitchen,atrium, Living Room and Lanai over looking the beautiful waters of White Bay.•White Bay is a sandy bottom flat that is fringed by a bountiful pristine reef. This will serve as a great marketing center for Captains Cove Resort.•The edifice incorporates classic materials and design reminiscent of Old Saint Augustine,Charleston, New Orleans, and Hemmingway’s West Indies

Captain’s

at White Bay, JamaicaCoveThe

Opportunity

Jamaica has a short fall in available hotel rooms. All inclusive resorts routinely reach 100 % occupancy during the November to May peak season. During hurricane season occupancy falls off to the 60 – 50 percent range. By assimilating the three parcels in this proposal a premier resort site emerges. A 30% gain in value is achievable through the assimilation of the three subject parcels alone. The long term gain by developing and constructing the resort present a very desirable return on a modest capital expenditure. An amenity rich, all inclusive resort is the highest and best use for this site. In addition to the benefits presented by the site itself, development to the east of a casino has been approved. Further more resorts with no beach at all are currently enjoying very high occupancy rates.

The Team….Florida based Captain Joe Spagnola and Florida Developer and Construction Expert Greg Hembree head up the development , design and construction aspect. Richard Veldman, a highly successful 40 year of resort property veteran will consult on design along with John Marks, General Manager of the Don Se Sar in St Petersburg for 25 years and currently performing start up for resorts world wide. John will perform his magic through start-up of this multi star resort.The Jamaica team is headed by attorney Earnest Smith, a two time Parliament member. The process of flagging the resort starts with instigation of the design phase. Once operational the resort can be sold or principles may continue with ownership.

Captain’sCoveat White Bay, Jamaica

The Options

A. Assimilation of parcels then sell to a resort developer at anapproximate 30% profit.

B. Assimilate parcels, develop, construct and open resort under a flag.

C. Option B with a hold and operate.

D. Assimilation of parcels, develop and construct as a condotel, sell unitsand retain resort operations

Jamaica Beach Front Parcel68 UNIT PROFORMA

Assumptions:Purchase price of Parcel - $4,400,000.00Parcel is a 5 acre +/- Beach Front located a[pproximately 3 miles east of FalmouthApproval for 68 units (156 Jamaican units)Existing building will be utilized as a Common ElementProject to consist of two builidngs with 34 units per building

Land Cost $ 4,400,000.00 69.40/ sq ftUnit Potential 68.00Per Unit Land Cost 1 & 2 Bed Units $61,100.00, Pent $122,780.0032 each - 980 sq ft two bedroom / 2 bath units 31360 sq ft32 each - 780 sq ft one bedroom /1 bath units 24960 sq ft4 each - Penthouses - 1768 - 3 bed / 3 bath 7076 sq ftTotal Sq Ft 63396.00

Cost To Complete $ 8,219,000.00 130.00/sq.ft.

Total Cost Sticks and Bricks + Property $ 12,619,000.00

Sticks and Bricks + Property per sq ft $ 199.05

CTC of 1 Bedroom / 1 Bath UnitCTC of 2 Bedroom / 2 Bath UnitCTC of 3 Bedroom / 3 Bath Unit

Total Sell Out/ Cash Source $ 22,976,000.00

Less Sticks and Bricks and Property $ 12,619,000.00FF & E

Less Commission 4.5 % $ 1,034,000.00

Total Hard Cost $ 13,653,000.00

Soft Cost

Warranty $ 135,000.00

Arch + Engineering (9% of S+B+P)(13.00 per sq ft) $ 825,000.00

Closing Costs $ 258,000.00

Master Developer Fee $ 301,000.00

G & A $ 174,000.00

Marketing $ 170,000.00

Legal & Due Diligence $ 100,000.00

Property Taxes $ 4,500.00

HOA Deficit/Utilities $ -

Contingency $ 374,000.00

Interest (2/3 on phase one) $ 740,000.00

Soft Cost Total $ 3,081,500.00

Total Soft Cost and Hard Cost $ 16,734,500.00

Total Profit $ 6,241,500.0028% Profit

Loan Amount Breakdown

Property $ 4,400,000.00

Sticks and Bricks + Amenities $ 4,000,000.00

Soft Cost $ 1,800,000.00

Maximum Loan Amount $ 10,200,000.00

Jamaica Beach Front Parcel92 UNIT PROFORMA

Assumptions:Purchase price of Parcel - $4,400,000.00Parcel is a 5 acre +/- Beach Front located approximately 3 miles east of FalmouthApproval for 92 units (252 Jamaican units)Existing building will be utilized as a Common ElementProject to consist of two builidngs with 46 units per building

Land Cost $ 4,400,000.00Unit Potential 92.00Per Unit Land Cost 1 & 2 Bed Units 47,825.00, Pent $95,650.0044 each - 988 sq ft two bedroom / 2 bath units 43472 sq ft44 each - 780 sq ft one bedroom /1 bath units 34320 sq ft4 each - Penthouses - 1768 - 3 bed / 3 bath 7076 sq ftTotal Sq Ft 84868.00Build out at 100.00 per sq + 400k (elevators) ($112.00/sq ft) $ 9,487,000.00Total Cost Sticks and Bricks + Property $ 13,887,000.00Sticks and Bricks + Property per sq ft $ 163.63

CTC of 1 Bedroom / 1 Bath Unit $ 117,218.00CTC of 2 Bedroom / 2 Bath Unit $ 147,275.00CTC of 3 Bedroom / 3 Bath Unit $ 264,493.00Total Sell Out/ Cash Source $ 28,048,000.00Less Sticks and Bricks and property $ 13,887,000.00Amenities $ 400,000.00FF & E $ 3,000,000.00Less Commission 4.5 % $ 1,262,000.00Total Hard Cost $ 18,549,000.00

Soft Cost

Warranty $ 180,000.00

Arch + Engineering (9% of S+B+P)(13.00 per sq ft) $ 1,100,000.00

Closing Costs $ 325,000.00

Master Developer Fee $ 400,000.00

G & A $ 174,000.00

Marketing $ 212,000.00

Legal & Due Diligence $ 100,000.00

Property Taxes $ 4,500.00

HOA Deficit/Utilities $ -

Contingency $ 450,000.00

Interest (2/3 on phase one) $ 1,000,000.00

Soft Cost Total $ 3,945,500.00

Total Soft Cost and Hard Cost $ 22,494,500.00

Total Profit $ 5,553,500.00

25% Profit

Loan Amount Breakdown

Property $ 4,400,000.00

Sticks and Bricks + Amenities $ 5,686,000.00

Soft Cost $ 2,221,000.00

Maximum Loan Amount $ 12,307,000.00

Jamaica Beach Front Parcels200 UNIT RESORT PROFORMA

Assumptions:Purchase price of Parcel A - $4,400,000.00Parcel is a 5 acre +/- Beach Front located a[pproximately 3 miles east of FalmouthPurchase price of Parcel B - $1,800,000.00Parcel is a 2.5 acre +/- Beach Front adjoining parcel A to the westPurchase price of Parcel C - $1,300,000.00Parcel is a 2.5 acre +/- Beach Front adjoining parcel A to the east.Density approval is contingent on Waste Water Management.

Project to consist of four builidngs, 50 doors per building 200 units

Land Cost $ 7,500,000.00 46.50 per sq. ft.Unit Potential 500.00Per Unit Land Cost 38,000.0064 each - 800 sq ft one bedroom / 2 bath units/ Demi 800 sq ft 51,200 sq ft128 each - 640 sq ft Studio /1(2) bath units 640 sq ft 81920 sq ft8 each - Penthouses - 1440 - 2 bed / 2 bath 1440 sq ft 11,520 sq ftCommercial Space 16,640 sq ftTotal Sq Ft 161280.00

Cost to Complete $20,966,400.00130.00/sq. ft.Cost to Complete plus Property $28,466,400.00Sticks and Bricks + Property per sq ft $176.50FF & E (x 3) $7,540,200.00

Total Hard Cost + Land $36,006,600.00

Soft Costs

Warranty $135,000.00

Arch + Engineering $825,000.00

Closing Costs $158,000.00

Master Developer Fee $301,000.00

G & A $174,000.00

Marketing $170,000.00

Legal & Due Diligence $100,000.00

Property Taxes - 1500.00 per year $4,500.00

HOA Deficit/Utilities $0.00

Contingency $374,000.00

Interest $3,200,000.00

Soft Cost Total $5,441,500.00

Total Soft Cost and Hard Cost $41,448,100.00

5 years Funds available for debt Service $ 53,968,528.00

Funds Available less Debt $ 12,520,428.00

Annual P & L Projections

SUMMARY Year Year Year Year Year$ FORMAT 1 2 3 4 5REVENUE

Rooms 16,667,268 20,429,513 24,070,290 25,078,430 26,519,075

Food & Beverage 7,300,000 8,760,000 9,490,000 10,220,000 10,950,000TelephoneOther Operated Departments 0 0 0 0 0

TOTAL REVENUE by Department 23,967,268 29,189,513 33,560,290 35,298,430 37,469,075

OPERATING EXPENSERooms 3,666,799 4,494,492 5,295,464 5,517,255 5,834,197Food & Beverage 4,015,000 4,818,000 5,219,500 5,621,000 6,022,500

TelephoneOther Operated Departments 0 0 0 0 0

TOTAL OPERATING EXPENSE by Department 7,681,799 9,312,492 10,514,964 11,138,255 11,856,697

DEPARTMENTAL PROFITRooms 13,000,470 15,935,021 18,774,826 19,561,175 20,684,878Food & Beverage 3,285,000 3,942,000 4,270,500 4,599,000 4,927,500

Telephone (10,000) (12,000) (14,000) (16,000) (18,000)Other Operated Departments 0 0 0 0 0

TOTAL DEPARTMENTAL PROFIT 16,275,470 19,865,021 23,031,326 24,144,175 25,594,378

DEDUCTIONS FROM INCOMEAdministrative & General 1,953,056 2,383,802, 2,763,759 2,897,301 3,071,325

Sales & Marketing 1,676,373 2,046,097 2,372,226 2,486,850 2,636,220

Utilities Costs 1,181,599 1,442,200 1,672,074 1,752,867 1,858,151

Maintenance 960,252 1,172,036 1,358,848 1,424,506 1,510,068TOTAL DEDUCTIONS from Profit 5,771,280 7,043,135 8,166,903 8,561,524 9,075,764

GROSS PROFIT 10,504,190 12,820,886 14,864,423 15,582,651 16,518,614OTHER EXPENSES

Insurance 900,000 975,000 1,050,000 1,125,000 1,200,000Property Tax 3,000 3,000 3,000 3,000 3,000

Management Fee 955,881 1,166,700 1,352,662 1,402,438 1,486,675NET OPERATING PROFIT 8,645,309 10,676,186 12,458,761 13,052,213 13,828,939

CapEx Reserve 8% of NOP 691,625 854,094 996,700 1,044,177 1,106,315NET CASH AVAILABLE for DEBT SERVICE 7,953,684 9,822,092 11,462,061 12,008,036 12,722,624

Annual Statistics Projections

Rooms Revenue & StatisticsYear Year Year Year Year

1 2 3 4 5Total Rooms 200 200 200 200 200Rooms Available 73,000 73,000 73,000 73,000 73,000Rooms Occupied 36,500 43,800 47,450 51,100 54,750Transient Rooms Sold 29,200 35,040 37,960 40,880 43,800Group Rooms Sold 7,300 8,760 9,490 10,220 10,950Occupancy Percent 50.00% 60.00% 65.00% 70.00% 75.00%

Total Rooms Revenue$16,667,268.7

5$20,429,513.0

0$24,070,290.0

0$25,178,430.0

0$26,519,075.0

0ADR $471.00 $480.00 $489.00 $499.00 $508.00RevPAR $235.00 $288.00 $318.00 $349.00 $381.00Guest Count 109,500 131,400 142,350 153,300 164,250