Breaking Ground: Inside Paradyme’s Next Generation of Real Estate | Webinar E49

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Hey everybody, Ryan Garland here, founder and chairman of Paradigm.
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Thank you very much for joining us today.
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I uh I'm excited.
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I think we've uh for some of you, it looks like we have some familiar faces, and some of you uh are uh new faces, so thank you guys for the support.
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Uh we had uh something like this, I think a little over a year ago, actually.
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This entire team, we've been together kind of chipping away at this and pulling teeth to get these things and these projects off the ground and moving.
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And it's been uh it's been a hell of a journey.
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But I figured what we do is just kind of highlight what's happening.
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And um, you know, one of the things we'll kind of start on just kind of giving the pedigree of everybody here.
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We're all pretty old, so I think there's a little over a hundred years of experience, but you know, we've all been through a couple cycle downturns and the volatility in the market's pretty scary.
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We're having a lot of conversations with clients and wealth managers, RIA, some institutional players, you know, kind of where everyone's kind of moving their money and what's happening in the world, you know, a lot of fear.
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And I think at the end of the day, what we want to do is to show kind of through data that um, you know, there's some there's some directive of what's happening in in our space.
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And at the end of the day, that's what we want.
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We want to make sure that we're making, you know, good, smart decisions.
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You know, we we we none of us want to lose money.
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No, nobody wants to lose their career.
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And everybody here that's in this room, that's uh that's that's uh our guest today are have been in the space for a very long time.
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And so I feel honored to have all these guys by my side, as you can imagine.
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Ultimately, we're here for you, and uh we're here to serve you.
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And without you guys, we wouldn't be able to get these projects off the ground.
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So sincerely, uh, from our uh company to yours and our families as well, we appreciate all the support and we hope that you guys see the value in what it is we've created.
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We feel uh excited, as you can imagine.
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So we feel pretty blessed.
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So, with that said, we uh let's get over to the team.
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So, as you guys know, I'm the founder and chairman of Paradigm, but in the space 22 years.
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Uh managed multiple funds.
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I think I've I think it's been about nine or ten funds now, one public fund, and uh and kind of dealt with that headache.
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And we decided to go ahead and stay private, just a little bit more uh sophisticated players that can get more involved and a little bit more room to uh to to improve and grow.
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And then with that said, we got Dennis Roberts has overseen all of our construction for our project.
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So he's kind of uh, you know, in essence, kind of at a global level now.
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So he's at 30,000 feet, kind of drilling down into the weeds if needed.
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But he's really kind of helping spearhead the communication between planning, uh, engineering, architectural design entitlements, down to getting contracts in place, getting construction moving, and just kind of offloading that to the right players and uh just oversee all the all the fun stuff that goes along with it.
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Because that's when the the work really starts.
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And then we got uh Steven Beagle, which is an amazing human being, guys.
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This guy has uh an unbelievable track record.
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I mean, with the with you know, he how many uh what's the high-rise Tierra that you have going on there?
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And uh, yeah, the Tierra is a condo project in Galveston, the first one in nearly 20 years on the island.
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It's 10 stories, 63 units, and they're not cheap.
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These are expensive units.
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It's a post-tension all concrete building.
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I think they start at about a million and a half, but yeah, that's the fun one.
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But my true claim to fame, as you know, Ryan, is the Pentagon innovation.
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So I handled that all right up until 9-11.
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Yep.
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And so we'll go we'll go back into some of your background, let everybody share their stories, and then uh so thanks for that.
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And then we got Eric.
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As everybody knows, Eric and I are just at this point kind of best friends.
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If you guys haven't watched my social media and haven't seen him, shame on you.
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This guy is pretty much, I would almost think that him and I think some people think you and I are married and ran off into the sunset together at this point, man.
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But uh, I am his uh his uh his grandfather, or what do you want to call it?
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To your son, not only the coolest uncle, but I think I'm like if if something happens to you, I'm taking your son.
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That's how this works.
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That's right, the godfather.
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That's right.
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So, so Eric and I are very close, but uh, I like to brag about him a little bit more than he will brag about himself.
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Um, number one in the state, number one team here in Lake Avasu, and I think you are number one as far as team in the country for EXP, I believe.
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So that's uh that's a heck of an accomplishment.
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You know,$300 million in volume, a very small team.
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I'm used to Southern California teams where you have 40, 50, 60, 80, 100 uh people on a team, larger dollar amount trades, and for him to be able to do the volume count as far as unit count is actually what's impressive because that's a lot of bodies, a lot of communication, a lot of escrows, just a lot of hand holding, a lot of bodies you gotta deal with.
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So very impressed by Eric.
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And as you guys know, he's also one of our investors.
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So he gets involved in every project that we we uh we we do.
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And then he's also focusing on the exit.
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So I like to think he's uh he's one of those guys who's pregnant with us, right?
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He gets involved and now he's selling.
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So he's intimately involved and uh emotionally involved.
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So he uh he he has a huge interest of making sure we sell because we don't make money until we sell, right?
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So it's always important.
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And then Rob.
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Rob has actually turned out to be one of my closest friends.
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I talked to Rob probably seven times a day.
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I'm waiting for him to send me his Verizon cell phone bill because I'd call on him more than anybody else, I think, on this team so far.
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Rob has been our our uh our backbone.
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This guy has been an absolute stud.
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He's traveled with me into Park City, and we're looking at all kinds of different architects and builders throughout the the country.
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And we've uh we've tailored some built some projects to around what we think is is the next movement and uh being a little more aggressive and forward-thinking into the future.
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And Rob's just pedigree is amazing.
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He's just been a rock.
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Um, he's very tied in here in the city of Lake Havasu, uh, kind of knows you know where all the bodies are buried, if you will.
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So that's always important to have the right team.
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So you guys kind of know that.
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With that said, I'll uh, you know, you guys also obviously know Dennis, but I'm gonna let everybody kind of share a little bit about their background and we'll go right into the barn caves.
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But Dennis, if you don't mind, just share a little history about yourself um with Western tech and kind of who you are now, and we'll just kind of go down the line real quick.
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Yeah, sure.
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I was uh raised in a concrete family.
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So structural concrete and civil concrete is my background.
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Uh got into um testing inspections, engineering, geotechnical materials testing uh back in 1989, and been working in the construction space ever since, either in the inspection and consulting category or as a general contractor.
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Uh Ryan and I met several years ago, kind of fell in love, and here we are working together today.
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Eric was uh the impetus of that meeting, and I think it's worked out really, really well.
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So we met on the golf course.
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We met on the golf course, yeah.
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We discussed family and life, and and we'd realized we had a lot in common.
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So, yeah, the uh the the projects that the paradigms working right now with right now are some of the largest in Lake Havasu.
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So it requires a lot of uh moving parts and and organization and coordination, but we're putting together systems and getting the right team involved that is pulling all that together every day.
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Yep.
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I appreciate it.
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Couldn't say it better, Dennis.
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I appreciate that.
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Stephen, obviously we know you're Mr.
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Pentagon, but share a little bit more about your background, please.
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Oh, thank you.
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And it's really a joy to be with this team.
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You know, I've enjoyed it, I think, for three years now, maybe three and a half.
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But um, you know, 46 years as an architect.
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I have projects all over the world, but most of them are in this country, and most of them are along the Gulf Coast of Texas, what's now called the Gulf of America.
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But uh, we've had some great ideas that came through this team, and when we get to the barn caves, we'll talk a little bit about those challenges from a codes and standards point of view, and we'll talk about the systemization of the barn caves from uh from a goal perspective.
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But yeah, I've enjoyed I've enjoyed a great career, lots of uh notoriety.
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I've written books on architecture, and I've taught architecture at the University of Virginia and at uh and at um American University downtown in DC.
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So yeah, my history is is broad and deep at the same time.
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Thank you, Stephen.
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Appreciate it.
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Eric, I already brag about you, but if you want to kind of fill some voids, please do.
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Yeah, guys, and uh for everyone on the webinar, thank you so much for your support as far as my involvement within the paradigm family.
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A lot of people make uh make a lot of comments uh from the marketing that's out there.
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People can see you know our integration with the paradigm team, a lot of accolades out there.
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So thank you guys for all the support uh going on.
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Uh I think now with paradigm storage, we are completely sold out building C through phases one five.
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So we're very anxious to start on building as a storage, also known as phase six.
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Um it's been another to be a part of a lot of the field decisions and some decisions that Ryan has made absolutely success of this project.
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We're very excited about again for building because Ryan mentioned uh we're a team of twenty.
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We operate as one of the top teams of all road bridges nationally, which is pretty amazing, amazing given the size of the hobby company.
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Um we're in touch with Ryan and his team almost daily uh strategically figuring out what we can do to generate pre-interest.
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Uh we're now working on the boathouse we have our first closing uh project.
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But overall, everything is going incredibly well, and I would not really be investing in this project and future projects if I didn't have a level of certainty that I was very comfortable with.
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So, with that being said, um I'm very happy to be here.
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Thank you, Eric.
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I appreciate it.
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Mr.
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Rob, rock and roll.
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All right, thanks uh for including me in uh today's festivities.
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I do appreciate that as well.
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Um I've been with Salberg Associates for almost 30 years now, and it's amazing uh when you look back at your life and see all the opportunities and the friendships you've made and relationships that you've uh had the opportunity to work with.
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And uh again, this team is no different.
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There's a lot of talent on this team.
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I am humbled every time we have one of these, it's uh the resumes that get belted out at the beginning of this thing.
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It's certainly fun to be a part of this team, and it's fun to be a part of the vision that you see uh taking place right before your eyes.
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Get a lot of updates for you guys today, and when we jump into it, we'll uh we'll share them for you.
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I think there's some exciting things, and uh you know, the city of Lake Havasu is very um much in favor of what Paradigm is doing, and they see uh Ryan as a visionary, and I think uh all of you do as well.
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That's why you're here today.
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So that's it for me.
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Thank you, Mr.
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Rob.
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All right, guys, let's get to the meat of potatoes.
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Here we go, barn caves.
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I'm not sure how many of you guys are able to see what's on the screen, but I'll just kind of read through it.
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Uh, we are kind of on the tail end of getting this permit for uh phase one, which is nice because at the same time we're still um you know grinding on phase two, and we're gonna talk about that, give you guys some detail.
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But I think what it's what's important is you understand that the size of this project has really been an uh experience to work with the city.
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They have and will admit that their experience as well with this is uh they haven't had it.
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Uh the we we are bringing kind of a different uh caliber of product uh to the town.
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And uh a lot of times they're they're learning how to uh approve these uh buildings uh through this process.
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Obviously, you guys see I brought Stephen Beagle on, which is just a world-renowned architect.
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And you know, obviously, you know, Rob kind of paralleling him on the barn caves.
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What's what's really happening is we just built these buildings that are just so impressive and there's so many moving pieces.
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Not only from our client and investor perspective, that's why they love it, and people just can see the value once it's built, but really the the getting into the weeds of how it's built, the cities just really kind of scratch their head to try to pull it together.
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So, what I'm gonna do is I'm gonna kind of lean it over to uh to Rob and Steven and Dennis here in a second to kind of talk about some of the hurdles, but just to kind of give you guys a quick snapshot on it.
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We are about to pull the permit.
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We're on our last, we're waiting for one more last response from a third party on fire, which they outsourced the fire uh um uh protection out to.
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I think it's a company out of Phoenix, if I recall.
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So we're just waiting for that last comment.
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Other than that, we're ready to go.
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We're gonna go ahead and start grading.
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So that's cool because that's just kind of getting the clock started, anyways.
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So we uh I think we're already staked and ready to go.
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So I wouldn't be surprised if we start moving dirt next week.
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And um, and uh, you know, right after that will be, you know, a uh an approval for the residential, and uh, and we're good to go.
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So, real quick snapshot again on the project 93 units of single family.
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This is a mixed-use project.
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We do have a 44,000 square foot gym, which does have a pool, does have an amenity package, which includes uh as uh a um uh pickleball court.
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And what we did is we were working with, and we're gonna announce this here pretty soon.
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So for some of you that are following us a little bit more often on social media and watching our updates, uh, we do have a doctor that we have uh uh in essence came up with an agreement with and partnered with that's gonna come in and provide true healthcare services as well to our members.
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So ultimately we'll have a healthcare tenant in our buildings, which ultimately, from an investor's perspective, that increases the value of our building and uh having a healthcare tenant's a big deal.
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So uh that's that and being in Lake Abbaso, it's more relevant.
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So we'll be on kind of the um holistic health, you know, dealing with a lot of pain management, um, and just focusing on uh, you know, real doctor healthcare services.
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So it's kind of nice to be able to have all that in one.
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Uh 550,000 total square feet.
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We're at six phases.
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Five free phase one will be the gym.
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Uh, and then the last five phases will be the residential.
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Uh approximate start date for the residential grading will be December 7th.
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I'm gonna let the boys kind of talk a little bit on that.
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Uh Barn Caves plot map is uh is uh the preliminary map has been recorded.
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We're trying to get the final recorded, and I'm gonna let the boys kind of talk on that.
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Uh, we have some tax advantages, advantages, investment strategies associated to this.
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We're actively raising money and we're 60 months, 60 days out or so.
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We think we're gonna close it out because once we uh once we really start breaking ground, yeah.
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A lot of our investors and clients have been watching us or signed up to see us get that permit, have made commitments and ready to pull the trigger to start putting stuff on deposits.
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So we're getting real close here, guys, to finishing this out, which is exciting for us to not only break ground, but also finish the race so we can uh be full steam ahead.
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Uh with that said, uh Steven, why don't you share a little bit about the hurdles that you have dealt with with the city?
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Um I think this is important because it'll kind of pollinate into some of the other uh projects that we have in Lake Havasu, but just kind of how how how just really receptive the city has been too to work with us, which has always been great.
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But just share a little bit about your you know, coming from you, and then we'll kind of go off of Rob and then Dennis with the kind of the conversation we had about the easement this morning.
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Sure, fair enough.
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And thank you again, Ryan.
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You know, what is I'm gonna go macro to micro for just a minute.
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You know, the challenge that we all faced, everybody on this team with barn caves is that it's a new paradigm.
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We were looking at how to combine uses.
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You're combining a storage use, a garage use, a shop use, a gym use with a residential use, and you're putting it all in one shell building.
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And that's a challenge from a life safety and a codes and standards point of view.
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But uh the real the real joy in this is reinterpreting the codes and allowing flexibility or at least imagining flexibility under the codes.
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Sure, we have to provide health, safety, and welfare protection, but to put all of those uses and your lifestyle into one box was a huge challenge.
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And that's where the new paradigm idea comes in.
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And to take that, you know, a step broader.
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We've got our prototypes designed, we've got the steel designed, we're ready to rock and roll with construction.
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But the real challenge has been trying to find that least common denominator for what we have to do nationwide to meet minimum health, safety, and welfare standards for this product.
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So our idea was we have to systematize it.
00:16:21.139 --> 00:16:28.259
We have to come up with a with a new paradigm that works in terms of a design concept and it needs to work everywhere.
00:16:28.899 --> 00:16:35.139
Sure, every jurisdiction including Lake Havasoo City, they're gonna interpret the code their way.
00:16:35.540 --> 00:16:44.500
But we have to make sure that they're interpreting it at least the way we are, from sort of a minimum broad scope perspective.
00:16:44.740 --> 00:17:00.660
That has been a challenge in Lake Avazu City, but they have been, you know, all the staff have been very cooperative, and um I think they're learning at the same time that we are challenging them with code interpretations, and and we're there.
00:17:00.740 --> 00:17:02.340
I mean, we're ready for permit.
00:17:02.500 --> 00:17:11.299
But the goal overall, and I think Ryan, you the whole concept here is really Ryan's and Rob's, so credit where credit is due.
00:17:11.460 --> 00:17:19.859
You know, Paradigm is offering a new way to consolidate these uses into single structures that people can invest in and use.
00:17:20.339 --> 00:17:22.180
Uh, and then we're gonna package this.
00:17:22.339 --> 00:17:33.220
The idea is to systematize it into something of a kit of parts so that we can produce them in a larger scale and ship them all over the country.
00:17:33.459 --> 00:17:39.699
So the test case is right here in Lake Avace City, and we're uh we're really close.
00:17:40.019 --> 00:17:42.019
Rob, you want to pick it up from there?
00:17:42.819 --> 00:17:47.859
Yeah, I mean, everything that you said is is um it's kind of where we started this project.
00:17:47.939 --> 00:17:56.579
It started with a vision that started with with how do you take a product that is really, you know, it was it was kind of an evolution.
00:17:56.659 --> 00:18:03.939
We've got a storage project that everyone said, can I put a uh I just want to put like a one-bedroom, one bath type unit in here.
00:18:04.019 --> 00:18:05.139
I want it to be my place.
00:18:05.299 --> 00:18:07.539
I'm already paying for this storage unit, let me do it.
00:18:07.619 --> 00:18:15.299
And that was a code issue that we weren't able to uh circumvent without getting into some firewalls and and reclassifying portions of the building.
00:18:15.539 --> 00:18:19.859
And uh Ryan came up with an idea and said, Well, look, I've got this extra property beside me.
00:18:19.939 --> 00:18:23.299
Maybe we can, you know, you know, let's let's what can we do on this one?
00:18:23.539 --> 00:18:27.379
We started kind of laying out ideas and what we could do to satisfy that need.
00:18:27.459 --> 00:18:36.339
So every time we've found a need uh in the market, we've tried to find a way to address that need and come up with something that that uh is an evolution of that design.
00:18:36.500 --> 00:18:43.539
So this design and coming up with the barn capes, putting the you know the plan together was well, what are these actually gonna get used for?
00:18:43.699 --> 00:18:44.500
Big garages.
00:18:44.740 --> 00:18:51.220
You know, that was something that you know the realty team really, you know, Eric's team really came forward and said, Look, uh, you're not going to build these.
00:18:51.299 --> 00:18:54.659
I'm not gonna let you spend your money on these things unless you do the following.
00:18:54.740 --> 00:19:09.539
And it gives kind of a box of uh or a checklist that we went through box by box and said, okay, we have the large garage, we have the masculine field, we have the uh natural light, we have all of these elements that you know are good design practice, but also are things that like house who are essential.
00:19:09.699 --> 00:19:10.659
So that was one of the things.
00:19:10.819 --> 00:19:23.779
As far as the city goes, I feel like the city's been very uh easy to work with where we get into issues, is is there's parts of the project that have been encumbered by flood zones that we've been working through, and and the government shutting down didn't help uh FEMA to get us uh through that process.
00:19:23.939 --> 00:19:25.939
The good news is we're we're moving forward on that one.
00:19:26.019 --> 00:19:28.819
The gym itself, though, is the the shining jewel right now.
00:19:28.899 --> 00:19:32.500
This is almost at the uh we're at the precipice of having a building permit.
00:19:32.659 --> 00:19:36.579
We're waiting on one department to finalize their their uh approval.
00:19:36.899 --> 00:19:40.899
And uh our contractors look at moving forward as early as next week.
00:19:40.980 --> 00:19:43.379
So this is all good news coming forward.
00:19:43.699 --> 00:19:44.899
Yeah, thank you, Rob.
00:19:45.059 --> 00:19:49.220
Um what I want to do is Dennis, give me a second, then I'll let Eric kind of spill into it.
00:19:49.299 --> 00:19:55.619
But just to kind of share you guys, share with you a little bit what what transpired with us to kind of um push forward on this type of product.
00:19:55.779 --> 00:20:04.259
You know, I had Paradigm Storage, which is 225,000 square feet of essence man caves or boat and RV storage, fee simple luxury product right next door to this.
00:20:04.500 --> 00:20:16.019
What had happened was is in my phase one, when we delivered that phase, a lot of buyers were asking if they can stay in this in their units during the weekend when they come into town because they don't want to spend money on an Airbnb.
00:20:16.179 --> 00:20:27.059
But the the space was designed so well with you know insulation and just nice and cold in there because you obviously have a temperature control during the summer that you could literally live there.
00:20:27.299 --> 00:20:30.419
And obviously, you know, with codes and legally they can't.
00:20:30.500 --> 00:20:34.179
And so, of course, I had to say no, but that was something that sparked my interest.
00:20:34.259 --> 00:20:45.459
And given kind of where we were in the design uh timelines, being in the last administration and cost of living and inflation and what have you, we wanted to also focus on something that was attainable that we can build quicker.
00:20:45.619 --> 00:20:55.619
And then because we're already building steel buildings, I love the fact that we can do all of our horizontal improvements and we can have our a lot of our steel uh uh components being manufactured off-site.
00:20:55.699 --> 00:20:59.299
And then as soon as the foundation is poured, we're dropping steel and going up, right?
00:20:59.619 --> 00:21:02.500
Try to focus on speed and speed is is money.
00:21:02.659 --> 00:21:04.339
So that was kind of that part.
00:21:04.500 --> 00:21:06.819
The other bigger part was, and this is really important.
00:21:06.980 --> 00:21:09.539
I hope you guys can you really hear where this comes from.
00:21:09.619 --> 00:21:13.379
This is, I think, where the real stake and in the heart was for me.
00:21:13.619 --> 00:21:15.939
I currently manage a$100 million debt fund.
00:21:16.019 --> 00:21:18.899
When the pandemic hit, I moved my headquarters to Nashville.
00:21:18.980 --> 00:21:21.379
I wanted to get out of California for many reasons.
00:21:21.619 --> 00:21:30.579
What I saw was at the time, a lot of note buyers, the second, so the secondary market for note buyers faded away because interest rates spiked in June of 22.
00:21:30.740 --> 00:21:36.099
So when that interest rates had spiked, we knew that we couldn't fund loans and sell notes.
00:21:36.179 --> 00:21:42.259
It was gonna be a little bit different of a pattern and path moving forward on how we're funding loans, right?
00:21:42.339 --> 00:21:50.099
Because remind, mind you, these are short-term bridge loans, you know, ground-up construction financing, secured by a first trustee, low leverage loans.
00:21:50.179 --> 00:21:51.859
That's my background, that's my pedigree.
00:21:51.939 --> 00:21:53.859
So obviously I'm an underwriter at heart.
00:21:54.099 --> 00:22:04.659
With that said, when I what I saw was if you were gonna stay in California, I had to have lower interest rates to be able to get the money to put out because it was just the competition was so fierce.
00:22:05.220 --> 00:22:16.819
I started watching the interest rates that were being charged for these funds to the borrowers for ground up construction, and obviously the amount of migration and growth in the in the southwest or sorry, southeast was impressive, right?
00:22:16.980 --> 00:22:24.339
So we were like, look, we can go that direction, but one of the things that That was very forward thinking on the Southeast was barn dominiums.
00:22:24.500 --> 00:22:39.859
And so I started looking at the technology between how these steel buildings are being designed and built, and really started seeing how quick and well and the cost to build these because I was getting the loan request just as a private lender for ground up construction finance.
00:22:40.099 --> 00:22:46.259
So I'm looking at budgets, contractors, you know, where the material is coming from, manufacturers, engineers, architects.
00:22:46.819 --> 00:22:50.740
I'm watching everything because before I fund the loan, I need all that information.
00:22:50.819 --> 00:22:54.259
So I'm dissecting this as I would on a standard underwriting practice.
00:22:54.419 --> 00:22:58.179
But I'm watching how these things are put together and the speed and the timelines.
00:22:58.259 --> 00:23:03.459
And I had to challenge my clients and sit on the phone with contractors and say, Are you sure you can build on this time?
00:23:03.539 --> 00:23:04.500
Show me proof of concept.
00:23:04.579 --> 00:23:06.259
And there was already out there.
00:23:06.500 --> 00:23:16.099
So, you know, uh where it really started catching my attention even further was as most of you know, if I fund a loan, I needed like I need an insurance policy.
00:23:16.259 --> 00:23:22.019
That policy needs to be binded and fully, fully uh lit before I can actually fund that loan, right?
00:23:22.099 --> 00:23:24.579
So and paid for during during closing.
00:23:24.819 --> 00:23:31.779
When I when I was looking at the the insurance policies, what I was doing is I was taking a stick-built, lumber-built home.
00:23:31.939 --> 00:23:33.699
Let's just call it a three-bedroom, two-bath home.
00:23:33.859 --> 00:23:34.579
Okay, something simple.
00:23:34.659 --> 00:23:43.059
And I was comparing notes between steel built with structural steel and interior steel walls, you know, non-structural, down to lumber built.
00:23:43.139 --> 00:23:49.379
And it was already a big movement in pricing for the end user and for the builder's risk policy going with steel.
00:23:49.619 --> 00:24:01.859
So that really caught my attention even further because obviously, if we're worried about affordability down the road, we need to think about the end user and what it's going to cost to maintain HOA costs, insurance, taxes, and what the exit price is going to be.
00:24:02.019 --> 00:24:03.939
Those are all just standard components.
00:24:04.179 --> 00:24:13.939
So as I was drilling down into the insurance policies, I started seeing that there's even more carriers that would open up their doors to cover these types of uh buildings.
00:24:14.099 --> 00:24:16.419
So it really started, you know, catching root.
00:24:16.500 --> 00:24:22.980
And then obviously, all those fires that kicked off in California a year and a half ago, or whatever it was, changed the landscape for insurance.
00:24:23.139 --> 00:24:26.659
So builders' risk down to end user insurance is so much cheaper.
00:24:26.740 --> 00:24:28.259
It's about 60% cheaper.
00:24:28.419 --> 00:24:33.379
And when you're looking at numbers like we are or exit prices, that is something that is undeniable.
00:24:33.539 --> 00:24:35.379
We cannot just close our eyes to.
00:24:35.539 --> 00:24:40.019
We had to continue to move forward with those practices because I do believe that's the wave of the future.
00:24:40.259 --> 00:24:51.939
And then ironically, which is kind of funny, I sit next to a guy on a flight on Delta that was the CEO of a huge steel plant that was down, he was buying a lot of steel from Mexico.
00:24:52.099 --> 00:24:55.299
And this is when the tariffs got real bad, and it was just perfect timing.
00:24:55.379 --> 00:25:03.859
And I was able to really learn what's really happening, not just what's on news, what's really going on in that industry and what the prices were and what's happening.
00:25:04.099 --> 00:25:08.339
I said, okay, we're gonna come together and I'll continue to use him as a resource to pick his brain.
00:25:08.419 --> 00:25:10.579
But here's where we are, and this is where I think we need to hover.
00:25:10.659 --> 00:25:13.459
So that kind of pushed us into the overall design.
00:25:13.539 --> 00:25:17.459
I know some of you that know have invested that's on this, uh already know that story.
00:25:17.539 --> 00:25:22.259
But for those of you that don't, I think that's really important because this is, in my opinion, the wave of the future.
00:25:22.419 --> 00:25:24.339
You know, steel building methods is where it's at.
00:25:24.419 --> 00:25:28.259
You guys can log online, go on social media, you'll see barn dominiums are a big deal.
00:25:28.419 --> 00:25:32.579
People are you could buy a building for 60 grand and pop it up somewhere on a property, right?
00:25:32.659 --> 00:25:36.819
It's just becoming bigger and bigger, and we wanted to kind of stay on that on that movement.
00:25:36.980 --> 00:25:44.819
So um, okay, with that said, Dennis, do you want to talk a little bit about our conversation about the final plat for um the residential and then going into grading on that?
00:25:44.899 --> 00:25:46.179
So we can kind of talk about timelines.
00:25:46.419 --> 00:25:48.579
Yeah, we're moving closer and closer to that.
00:25:48.740 --> 00:25:53.299
As uh Rob had mentioned, we really got held up with the FEMA process.
00:25:53.459 --> 00:25:58.579
The Clomar is this uh study that basically says that you can go to construction.
00:25:58.740 --> 00:26:24.099
That got held up because of homeland security not being funded, uh, cost us dearly time, but we're back on track with them, and we're hoping to be able to have an at-risk grading plan in the next couple months, which doesn't remove too many parts right away, but it gives us the opportunity to start looking at sources for our imports and uh making sure that we're getting prepared for underground.
00:26:24.179 --> 00:26:26.019
The underground is the biggest part of the horizontals.
00:26:26.259 --> 00:26:29.059
Horizontals are a massive uh part of this project.
00:26:29.299 --> 00:26:38.579
We have two percent grade from one side of this property to the other, so the flow is very minimal, and uh stormwater still has to be moved from one side of the property to the other.
00:26:38.740 --> 00:26:41.779
It's it's a massive undertaking just getting all that done.
00:26:42.019 --> 00:26:53.779
In the meantime, we are still coordinating and communicating with some of the utility providers, uh, giving us a few headaches on uh some of the property that they would like to have for easements, but we're at the very end of that.
00:26:54.019 --> 00:27:13.379
And um, I just had a communication this morning, I'm sorry, yesterday, uh, on um some of the last little uh requests that they're asking for, seeing if we can't negotiate something with them, stay out of all the horizontal way, and give them a little bit of land that they're asking for to uh get their uh electrical in.
00:27:13.779 --> 00:27:15.220
So we're right there.
00:27:15.379 --> 00:27:19.859
Once we have that, the final plat is produced, we get that to the city for final approval.
00:27:19.939 --> 00:27:22.179
That triggers all the other permits.
00:27:22.339 --> 00:27:23.779
So we're right there.
00:27:23.859 --> 00:27:31.859
Um it's gonna take some time to get all the grading uh process in progress, but um it's right there.
00:27:32.179 --> 00:27:34.740
Yeah, it's 42,000 cubic yards of dirt we're importing.
00:27:34.819 --> 00:27:45.779
Yeah, once we still it's really not gonna blow too much timelines about getting it going and letting that that start while the other approvals are are are in process so we can at least get that that ball moving.
00:27:46.019 --> 00:27:50.019
Well, that's along with the 1700 linear feet retaining wall.
00:27:50.099 --> 00:27:52.099
So there's a few moving parts there.
00:27:52.419 --> 00:27:52.980
A little bit.
00:27:53.139 --> 00:27:54.419
Okay, so on to the next.
00:27:54.500 --> 00:27:56.980
So the the big the big thing, Eric, let's talk about the market.
00:27:57.059 --> 00:27:58.579
I'm gonna give you the mic for a minute.
00:27:58.740 --> 00:28:10.419
Um, and I want you to kind of talk about uh what you're seeing, even feedback you're already getting over all the time that we've been you know marketing this, your own team as well, uh, about the Barn Cave sales prices and kind of your overall thoughts.
00:28:10.819 --> 00:28:15.699
Oh, yeah, we've been ready uh for this project, uh anxiously awaiting.
00:28:15.939 --> 00:28:27.779
And you know, when we look at the have a suit market conditions, since uh, as Ryan mentioned, it is a simple property, you begin to introduce financing, which is not a luxury that we've had at Paradise Storage.
00:28:27.859 --> 00:28:30.179
Uh, we've been focused on cash buyers there.
00:28:30.259 --> 00:28:36.179
So the ability to finance this product is something that we project will really help us with sales along.
00:28:36.579 --> 00:28:44.579
Southern California continues to be very strong and predominant fire pool, or like have a city through high interest rates.
00:28:44.740 --> 00:28:47.779
We really haven't seen that demand altered too much.
00:28:47.859 --> 00:28:57.699
I mean, my gosh, we've sold a hundred and you know, I'm not even talking about uh buildings A and B, but our most recent phases during a tough residential market.
00:28:57.939 --> 00:29:06.259
We've continued to sell these storage units to cash buyers now to have the financing ability from the Southern California exodus.
00:29:06.500 --> 00:29:09.379
Um, we're very optimistic about that outlook.
00:29:09.459 --> 00:29:14.099
Uh, specifically in Habitat right now, inventory is actually down slightly.
00:29:14.339 --> 00:29:21.059
We've been hovering around 450 to 400 active residential homes.
00:29:21.379 --> 00:29:24.179
And as of this morning, we're at 480.
00:29:24.500 --> 00:29:35.619
So slightly down on active inventory, which uh you know, we're very excited for that, uh, given that we're on the brink of beginning phase one here for the barn case.
00:29:35.779 --> 00:30:03.539
But as Rob mentioned in the beginning, our team was instrumental in really sizing out these garages because if we have an oversized RV garage, you know, and we're we're mitigating the stairs and the objections that that brings with our elderly demographic, having the elevator in place, having the really large garage, we're finding the toy accumulation doesn't stop.
00:30:03.619 --> 00:30:05.379
It's not one boat anymore.
00:30:05.699 --> 00:30:09.139
One simple motorhome takes up your entire RV garage.
00:30:09.299 --> 00:30:13.139
We need more space, and that's what our clientele is really demanding.
00:30:13.299 --> 00:30:22.980
So having the uh genetical makeup here of these of these properties we were involved in and feel very comfortable about how they'll move in the market.
00:30:23.459 --> 00:30:26.740
Um, and uh that's pretty much all I've got.
00:30:27.859 --> 00:30:32.819
And then, real quick, so this is why I'm just gonna write into everybody who wants to go back to their questions and answers.
00:30:32.899 --> 00:30:34.500
Leah, I just responded to you.
00:30:34.659 --> 00:30:42.740
Um, what I wanted to do is just kind of give you guys a little more um, I would say a little bit more color on on what we're seeing as far as movement.
00:30:42.819 --> 00:30:49.859
Now, the volatility is huge, and this is important because I think we really are a good data source to give you guys some feedback.
00:30:50.099 --> 00:30:52.019
We are actively looking to raise capital.
00:30:52.099 --> 00:30:54.339
As you guys know, our marketing is just incredible.
00:30:54.419 --> 00:30:57.139
So we have a lot of inquiries and we're talking to people all over the country.
00:30:57.220 --> 00:31:05.459
We're listening to the fears, where the money is stored, 401ks, IRAs, retirement, 1031 exchange, tax strategies, tax advantages, what have you.
00:31:05.699 --> 00:31:18.019
What we're seeing is as the as there is more uncertainty in the market, people are just becoming a little more conservative and they're looking to diversify more of their wealth and alternatives and really going into more real estate.
00:31:18.179 --> 00:31:21.619
That's always kind of been a safe haven through any type of inflationary period.
00:31:21.779 --> 00:31:26.819
Um, but you kind of can't deny that there's just not a lot of land left in Lake Abbas, and the demand continues to go up.
00:31:26.899 --> 00:31:33.299
And with it being so heavily migration and baby boomers and retirement, you know, it's it's just where it's going.
00:31:33.379 --> 00:31:39.459
The wealth is in the baby boomers' uh pockets, and they're coming here, they're putting more money, money on deposit with the local banks.
00:31:39.619 --> 00:31:46.259
So, again, if they're moving here and retiring here, they're also moving their money here and they're putting their money on, you know, uh, again, with some of these smaller regional banks.
00:31:46.339 --> 00:31:48.500
We've seen several regional banks open up recently.
00:31:48.659 --> 00:31:55.779
This is important because then typically they go turn around and start providing SBA loans for small businesses and become a little of their own economy.
00:31:56.019 --> 00:31:58.339
So we're tracking a lot of that, which is important.
00:31:58.579 --> 00:32:00.819
Um, but like this is something that's real relevant.
00:32:00.899 --> 00:32:11.699
So if you guys remember, you guys are probably all gonna shake your heads, that big freeze that came through uh through through Stephen's backyard, through Texas, and up through Nashville and came into the Northeast just a few months back.
00:32:11.939 --> 00:32:18.500
I was back east actually taking care of my mother because she really, if something got real real bad there, she it would get gotten kind of tough.
00:32:18.659 --> 00:32:27.220
But the feedback I was getting is the amount of people that kind of took, you know, jumped in their RVs and got away from the freeze and came out here and parked their trailers.
00:32:27.299 --> 00:32:29.539
There wasn't an RV park that had one slot left.
00:32:29.619 --> 00:32:31.139
There was people parked on the street.
00:32:31.299 --> 00:32:33.619
And I believe, correct me if I'm wrong, Eric.
00:32:33.779 --> 00:32:38.579
I think there was like 550 listings on the market, and two weeks later it went down to 440 listings.
00:32:38.659 --> 00:32:43.539
It was like 110 homes went into escrow in like a week or two weeks.
00:32:43.699 --> 00:32:53.220
You know, so that that that's that's people going, you know, I'm tired of being you know cold, and it's time to get out of the cold and you know, a snowbird level thing and kind of give them come out here and stay warm, right?
00:32:53.299 --> 00:32:58.899
It's just people are making moves into the space because they just don't like the volatility, right?
00:32:58.980 --> 00:32:59.299
Kind of thing.
00:32:59.379 --> 00:33:02.980
So that and many other reasons when it comes to cost of living, taxes, health care.
00:33:03.139 --> 00:33:09.220
We can go on that, you know, maybe another way, but that is what's happening, and that's why you're seeing such a big movement and push into Lake Havasu.
00:33:09.379 --> 00:33:16.500
So again, as the as there becomes more volatility, you're seeing, you know, um more movement here in Lake Havasu.
00:33:16.819 --> 00:33:18.899
So, okay, so uh I think that's kind of it.
00:33:18.980 --> 00:33:19.619
Eric, thank you.
00:33:19.699 --> 00:33:22.500
Is there anything else anybody wants to touch on before I move to the next slide?
00:33:23.619 --> 00:33:24.419
Nope, we're good.
00:33:24.579 --> 00:33:28.659
All right, guys, I'll uh I'll make this quick for those of you that have already you know are logged in.
00:33:28.740 --> 00:33:33.139
You guys already know the investments uh strategy through three 31.5% IRR.
00:33:33.220 --> 00:33:36.179
It's an eight pref four years, 20 million we're looking to raise.
00:33:36.259 --> 00:33:38.980
We've already raised 12 or 13, and maybe a little bit more by now.
00:33:39.220 --> 00:33:44.579
And then we have 93 million or 93 units as well, and then our profit split is a is a 70-30.
00:33:44.899 --> 00:33:47.459
It's a very institutionalized standard structure.
00:33:47.619 --> 00:33:56.019
We just figured we'd kind of go right down the middle of the fairway, kind of show that we just have kind of more of a conservative outlook and we just want to, you know, kind of give people more of a banking feel.
00:33:56.179 --> 00:33:58.740
And so that's really the structure of this this project.
00:33:58.899 --> 00:34:01.939
So I'll make that make that quick and move on.
00:34:02.339 --> 00:34:04.980
Um, this is just a little quick uh design.
00:34:05.139 --> 00:34:09.139
I thought this was kind of neat because you can kind of see a little bit of a three-story design.
00:34:09.220 --> 00:34:11.300
Um, you know, Steven, you want to kind of talk on that?
00:34:11.380 --> 00:34:15.699
I'm not sure if you can see that on the screen, but you can kind of see that side that side pro.
00:34:16.260 --> 00:34:19.699
Yeah, I'm looking at it through older eyes than yours, but I can still see it.
00:34:19.860 --> 00:34:20.659
It it works.
00:34:20.820 --> 00:34:27.059
And uh what it what it represents is the the combination of uses that we've talked about earlier.
00:34:27.220 --> 00:34:33.220
You know, the garage and the storage use on the lower floor, and then the residential uses above.
00:34:33.380 --> 00:34:43.780
We have to uh provide a one-hour fire rating between the vehicles, whatever they are boats, motorcycles, cars, whatever is in that lower space.
00:34:44.579 --> 00:34:48.260
And those vehicles have fuel in them, uh, and we expect that.
00:34:48.340 --> 00:34:52.820
So we have to provide the fire rating between floors with the residential uses.
00:34:52.980 --> 00:34:57.620
And then back to Eric's point, you know, these uh bases are tall.
00:34:57.700 --> 00:35:03.700
You know, we're 19 feet tall with an 18-foot tall door uh going into these units.
00:35:03.780 --> 00:35:13.300
And when you look at what that means, you know, the stair that goes up on the opposite side of what you're looking at here, the stair that goes up has to have an intermediate landing.
00:35:13.380 --> 00:35:18.340
And you're looking at something like 27 or 28 risers to get up to the living route.
00:35:18.740 --> 00:35:21.539
Well, the elevator sort of begins that.
00:35:21.700 --> 00:35:26.579
You don't have to climb all those stairs, you don't need to be a billy goat to live in one of these houses.
00:35:26.820 --> 00:35:33.780
You can take the elevator, and the elevators we're using are pneumatic elevators, they're very cost effective.
00:35:34.180 --> 00:35:36.180
They do operate on a vacuum pump.
00:35:36.420 --> 00:35:41.460
We don't need an elevator pit, we don't need hydraulics, we don't need traction.
00:35:41.700 --> 00:35:55.700
It's basically a big vacuum cannon that sets you up in a tube to the upper levels, and these things are becoming more and more popular, particularly when you get to the residential level, you can have the glass enclosure uh visible.
00:35:55.860 --> 00:36:01.220
I mean just watching yourself ride up and down through your own through your own two-story residential space.
00:36:01.380 --> 00:36:10.820
Uh, there is an opportunity in these units to have an intermediate apartment sort of in the back within that 19-foot you know garage space.
00:36:10.980 --> 00:36:20.019
We can actually get sort of a just an apartment or a carriage house, so to speak, with a rear entrance, if we want to do that.
00:36:20.260 --> 00:36:21.300
So there are options here.
00:36:21.380 --> 00:36:24.820
And then back to my earlier point about systemization.
00:36:25.220 --> 00:36:34.900
Once the kit of parts is is oh, did we lose him?
00:36:35.140 --> 00:36:36.340
I think we lost him.
00:36:36.660 --> 00:36:37.140
It's okay.
00:36:37.220 --> 00:36:38.500
I know he was kind of out of bad.
00:36:38.579 --> 00:36:41.140
Rob, you want to kind of fill finish the sentence, maybe?
00:36:41.780 --> 00:36:54.100
Yeah, once all the parts are put together, this is this was designed with uh systematic design where you could come make components and and issue them as a building package that could ship anywhere in the country.
00:36:54.340 --> 00:36:56.340
And uh, you know, why stop there?
00:36:56.420 --> 00:36:58.180
Uh paradigm's always been a visionary.
00:36:58.260 --> 00:37:07.380
So the intention was always to uh, you know, once building codes are realized in the United States and the minimum standards are are met, we would look at going abroad.
00:37:07.539 --> 00:37:09.860
But that's that's kind of a future growth plan.
00:37:09.940 --> 00:37:18.900
But this design was designed to be something where you could interchange different finishes, you could uh, you know, different uh different panels depending on what the market uh would bear.
00:37:19.140 --> 00:37:25.380
Uh and also like when you buy a luxury car, they'll give you the option to have this, but if you want to pay this much extra, you can do this.
00:37:25.539 --> 00:37:30.820
It was kind of set up, so there was an opportunity for uh capitalization of the idea as well.
00:37:32.100 --> 00:37:32.740
Perfect.
00:37:32.900 --> 00:37:33.940
Yeah, and I agree.
00:37:34.100 --> 00:37:36.420
Okay, so a couple things for you guys to know, too.
00:37:36.500 --> 00:37:43.300
The reason why we really wanted to kind of offer this webinar was just going to give you guys a little bit of a background, but this is important as well.
00:37:43.539 --> 00:37:51.380
Right now we have, I believe, 47 units out of uh out of 93 already picked and chosen from investors on their lots.
00:37:51.620 --> 00:37:55.140
And those investors will get the preferred pricing once the capital is raised.
00:37:55.220 --> 00:37:59.220
And there's and all and anybody who's interested, we can get on a call and kind of talk about the strategy.
00:37:59.300 --> 00:38:02.900
There's some tax advantages, there's a rollover to ownership and so forth.
00:38:02.980 --> 00:38:05.620
We'll we'll we'll share with you on the on the call.
00:38:05.860 --> 00:38:17.620
But what's happening is a lot of a lot of investors see the value in this because they like that and they want to get in early on the pricing because I'm gonna go ahead and increase my prices uh when we go into the you know future phases.
00:38:17.780 --> 00:38:21.700
So it's nice because as you think, as you can think about it, you know, it's just kind of dumb it down.
00:38:21.780 --> 00:38:34.019
Let's say I'm a builder that's building a retail center and I have an Albertsons LOI and I have uh Best Buy is not a probably a bad example nowadays, but let's say you had a Best Buy, some big box stores, and you had some other larger institutional tenants.
00:38:34.180 --> 00:38:43.460
If I wanted to build a$50,$60 million building and I already have larger institutional class A, you know, triple A tenants, I can go to almost any bank and get financing, right?
00:38:43.539 --> 00:38:48.180
So it can show that, okay, here's the financial strength of Albertsons, here's the financial strength of this.
00:38:48.260 --> 00:38:50.900
Once I build it, here's an LOI commitment in the contract.
00:38:51.059 --> 00:38:54.180
So the bank's the likelihood of getting financing goes up, right?
00:38:54.260 --> 00:38:55.300
It opens up the doors too.
00:38:55.460 --> 00:38:57.460
Can you allow you to get competitive pricing?
00:38:57.620 --> 00:38:58.900
That's really what we want to do.
00:38:58.980 --> 00:39:06.500
Again, in more of an institutional structure, open up the door, give people tax advantages, understanding where the market's going, get some of these units already locked up.
00:39:06.579 --> 00:39:09.860
So now we have several, in essence, two phases already pre-sold.
00:39:10.340 --> 00:39:16.180
So now the idea is to go ahead and build and sell those phases, and that capital just rose over into the future phases.
00:39:16.340 --> 00:39:25.780
But whatever investors do not pick any more lots, which we're hoping that investors don't pick anymore, to be candid with you, and I'm gonna bring Eric in on this conversation in a second.
00:39:26.180 --> 00:39:31.300
But what we believe, and he already told you the cost per square foot on exit, we were lower on our pro forma.
00:39:31.620 --> 00:39:55.940
So we already know, given, you know, we started this a couple of years ago on our numbers, and there's already been a continued increase in appreciation in the area, along with a lot of growth potential, along with Apex buying, you know, 600 acres just uh northeast of us, you know, that's uh you know, slotted for like 1200 homes or what have you, you know, that would so this whole area is just uh is where the growth uh uh plate is.
00:39:56.019 --> 00:40:04.019
And you're seeing for you to get there, you have to go right past our our project right off the 95, is we're the main vein off the 95 to get to those projects in the back.
00:40:04.260 --> 00:40:15.300
So at the end of the day, I think we are seeing there's not a lot of land left in the city, and for the developments to really start kicking off like larger dollar number uh unit counts, it's all going to go this direction.
00:40:15.620 --> 00:40:24.980
So uh with that said, the reason why you know having an increasing the price in future phases means that, okay, we're providing a projected return to our investors.
00:40:25.059 --> 00:40:32.820
And let's say, and I want to disclose this, assuming everything goes as planned, which is not always the case, but let's just assume everything goes as planned.
00:40:33.059 --> 00:40:38.579
If we're able to go, okay, look, we hit our numbers on construction, and here's our projected returns for our clients.
00:40:38.820 --> 00:40:42.820
You know, if we increase the sales prices, those return profile may go up.
00:40:42.900 --> 00:40:51.300
And now our investors that originally bought in early, not only are going to take over their unit with the time comes with a fixed price, we're rolling over the equity for the gift.
00:40:51.380 --> 00:40:53.700
And then now they also have an appreciation component.
00:40:53.780 --> 00:40:55.539
So what's the real return on the investment?
00:40:55.700 --> 00:40:58.900
We don't really know, but it could be north of that 31 that we projected.
00:40:59.059 --> 00:41:03.140
So this is actually very sexy, and we're gonna bring Eric in on this conversation.
00:41:03.300 --> 00:41:07.460
But that's why we're trying to not raise any more money and give access for investors.
00:41:07.539 --> 00:41:10.420
Now we will, you can, because that we always give first writer refusal.
00:41:10.579 --> 00:41:16.420
But the ones that were early in kind of grabbed, kind of grab the bull by its horns and get that that uh um that benefit.
00:41:16.579 --> 00:41:30.420
But with that said, Eric, talk about you know where we started on on paradigm storage at phase one and where we're ending up now, because we talked about it today when I saw you at the gym about putting another deal in escrow um at seven o'clock in the morning.
00:41:30.579 --> 00:41:38.180
But just to give real quick, I when I did my pro forma on paradigm storage, we thought we were gonna exit those at 145 a foot.
00:41:38.340 --> 00:41:39.780
Where'd it go from there?
00:41:40.660 --> 00:41:44.100
I actually think it might have been 135 a foot, Ryan.
00:41:44.260 --> 00:42:12.900
Um, but uh essentially, yes, we you know, and and this is goes, I mean, all credit to Ryan on on a few changes he's made to how we've delivered these units, but we've been selling all day long at 175, you know, 180 a foot, you know, most recently, but for our final phase, we plan to increase that almost 10%, and we're very optimistic about achieving$200 a square foot over on paradigm storage.
00:42:13.059 --> 00:42:19.539
I think, like Ryan said, not only is there a lack of uh land that you can develop storage units.
00:42:19.620 --> 00:42:22.019
I mean, that's truly remarkable in its own space.
00:42:22.180 --> 00:42:34.579
I mean, the clients call us to want to try to secure a lot of uh uh larger parcels to develop storage, and unfortunately, it's just it's not even worth the conversation because it's not possible in like Amazon.
00:42:35.140 --> 00:42:43.380
And even more so on storage units, everyone thinks that there are a ton of storage units available and that it's way oversaturated.
00:42:43.780 --> 00:42:45.780
It's actually a huge misconception.
00:42:45.940 --> 00:43:02.500
I have so many agents that reach out to our group asking what we have coming online because if you are currently looking to purchase a unit that has insulation and climate control, the only place that you can buy right now is paradigm storage.
00:43:02.579 --> 00:43:09.300
And that's why I'm always bugging Ryan and Dennis at a construction for more units to come online.
00:43:09.380 --> 00:43:25.220
I actually told Ryan, I said, I wish we literally had another paradigm storage in like happy because the demand is so fierce, and it's even surprising for us to just get those phone calls even now in 2026 when there are storage units all over the place.
00:43:25.300 --> 00:43:38.420
But the fact of the matter is a lot of those units are sometimes there for laser, maybe you can get an occasional rescale unit, but that's a steel box with no insulation that turns into 180-degree oven in the summertime.
00:43:38.660 --> 00:43:52.180
So we really have the market right now for paradise storage now for marketing is you know, when you add the idea of a living component on top of the storage unit, that's the one thing that paradise storage doesn't have is that living.
00:43:52.980 --> 00:44:13.460
So the fact that as we talked about not having the uh you know the only access to the living stairs would be a elevator and then having the very elaborate community center of the and the pool that takes care of the injection for those that want to have backyards and pool areas.
00:44:13.700 --> 00:44:19.700
Um you know, we pretty much hit the mark when it comes to marketing, but you know, again.
00:44:20.500 --> 00:44:48.740
Financing is a huge deal, so to make a bad delta footage obviously more than when you have that financing ability, um, we expect to be a pretty hard price for um you know once we get to that stage we can't go pricing just yet because this is a residential subdivision, and once we have our subdivision report, and we can get specifically pricing as minute proof of concept.
00:44:50.100 --> 00:44:55.380
We're about 35% over the original projection for our sales.
00:44:56.500 --> 00:44:58.180
Yeah, and I'll give you guys kind of an idea.
00:44:58.260 --> 00:44:59.780
Thank you, Eric, because that's important.
00:45:00.260 --> 00:45:22.579
The um the guy right next to one of my units that I'm in now, he just bought one of our largest units, 565,000 square foot or$565,000 uh man cave, drive-thru 80-foot garage, 40-foot wide, and he bought a two and a half million dollar MTI center console, brand new, had it delivered, has a gooseneck trailer, sports chassis, and a couple other things.
00:45:22.820 --> 00:45:27.380
He's got probably three million dollars worth of toys in that garage, and he needed it right away.
00:45:27.460 --> 00:45:36.340
I mean, he was one of the guys going, hey, and then he brought his truck and trailer over there and made sure he can get it into the driveway and can get it and out of that that that that uh building.
00:45:36.420 --> 00:45:41.620
And you know, everything obviously worked out because we designed it for that, knowing these boats, trailers, and RVs are getting bigger.
00:45:41.780 --> 00:45:45.539
So, you know, this is the type of people that are in, you know, this this project.
00:45:45.700 --> 00:45:46.579
These are what people want.
00:45:46.660 --> 00:45:51.380
It's not only just investors that are looking into, you know, investing into the upside.
00:45:51.539 --> 00:45:53.780
The people that are actually buying these are amazing.
00:45:53.940 --> 00:46:00.820
Example, you know, my investors that have all committed to to buy these units, if you were in my shoes, I know every single one of them now.
00:46:00.980 --> 00:46:05.140
So I can tell you where all my friends are all buying lots and units inside the barn caves.
00:46:05.220 --> 00:46:08.900
And it's so cool because I can tell people, hey, I want to buy this unit.
00:46:08.980 --> 00:46:09.780
Is the neighbor cool?
00:46:09.860 --> 00:46:10.980
And I'm like, he's really cool.
00:46:11.140 --> 00:46:11.860
I know him really well.
00:46:11.940 --> 00:46:14.820
You know, it's just a it's just a it's what people are looking for.
00:46:14.900 --> 00:46:15.780
They're spending their money.
00:46:15.860 --> 00:46:19.620
They just the life has been kicked them in the teeth over all the years, and they just want peace.
00:46:19.780 --> 00:46:22.260
You know, we're not gonna allow Airbnb, Airbnbs.
00:46:22.340 --> 00:46:23.940
We're looking at putting pavers in this thing.
00:46:24.019 --> 00:46:25.780
It's you know, gated in private.
00:46:25.860 --> 00:46:28.260
There's just, you know, we're keeping our HOAs low.
00:46:28.340 --> 00:46:30.980
You know, you have the gym and the amenity package with your doctor there.
00:46:31.059 --> 00:46:37.940
You got pickleball courts, you got, you know, it's just a culture and atmosphere that people are really wanting, and we're just trying to deliver and hit that mark.
00:46:38.100 --> 00:46:41.860
So, okay, so real quick, um, I don't know, Steven's maybe up there.
00:46:41.940 --> 00:46:44.820
Rob, let's talk about real quick square footage, smallest and largest unit.
00:46:44.900 --> 00:46:46.340
So sorry, but we can close the gap on that.
00:46:46.500 --> 00:46:47.300
We'll move on.
00:46:47.620 --> 00:46:48.900
Yeah, absolutely.
00:46:49.140 --> 00:46:56.980
So on the uh the barn caves, we've got uh 2,900 square feet of uh living space that's includes the uh potential fourth bedroom.
00:46:57.059 --> 00:47:06.100
Uh square foot of garage on building A is going to be uh just over 1,500 square feet, and then patio wise, there's about uh 275.
00:47:06.500 --> 00:47:11.059
Uh building B is the smaller unit, there's 27 of those units of the 93.
00:47:11.220 --> 00:47:21.380
It's uh 1,590 square feet of living, uh, 1,300 square feet of garage, and uh 275 square feet of uh patio as well.
00:47:21.700 --> 00:47:22.100
Perfect.
00:47:22.260 --> 00:47:22.500
Thank you.
00:47:22.660 --> 00:47:25.940
And by the way, everybody, I make fun of him for the way he says garage too.
00:47:26.019 --> 00:47:29.539
So if you guys want to write him a message and say, you say garage weird, it's okay.
00:47:29.620 --> 00:47:32.500
We all we all make fun of, he's but it hasn't changed for 30 years.
00:47:32.740 --> 00:47:34.420
So okay, well I've heard that.
00:47:34.980 --> 00:47:43.460
I literally just thought of Rob and how he says garage and how that's the most interesting enunciation of the English that I've never heard.
00:47:44.500 --> 00:47:45.140
It's all right.
00:47:45.220 --> 00:47:47.059
You know, he builds garages for a living.
00:47:50.900 --> 00:47:51.940
I love you, brother.
00:47:52.100 --> 00:47:54.500
We're gonna talk about the other ones you're designing for me right now.
00:47:54.900 --> 00:47:55.539
Okay, guys.
00:47:55.620 --> 00:47:59.460
This is uh so that's onto the the bar off the barn caves and onto the flats.
00:47:59.620 --> 00:48:03.460
This is uh this one's got a little special place in my heart, too.
00:48:03.700 --> 00:48:13.300
Obviously, we pour a lot of our energy into these things, and you gotta fall in love with it to really get it to turn over because it's gotta be a passion because you got to fight tooth and nail all the way through every type of project.
00:48:13.539 --> 00:48:14.740
This one's really neat.
00:48:14.900 --> 00:48:24.340
Um, we've had a lot of investors, I would say, diversify now and start parking some capital into here, especially the newer investors that are being introduced to our project or our platform overall.
00:48:24.500 --> 00:48:26.980
Uh, the reason they like this, it's a little bit shorter term.
00:48:27.059 --> 00:48:28.900
It is right in the heart of the city.
00:48:28.980 --> 00:48:30.660
This is a four-acre lot.
00:48:30.900 --> 00:48:43.940
Uh, and in fact, you know, I think Joe, our videographer is on here, we're gonna be uh extracting the recording from the city on the approval that we had on it last week and kind of clipping it out, but to kind of give you guys a little idea of what some of these council members have said.
00:48:44.100 --> 00:48:52.100
These are people that have been agents for years and they have seen, you know, builder and developer trying to figure out what to do with this lot, and they've no one has been able to figure it out.
00:48:52.180 --> 00:49:01.059
And we came in, and with Rob's help and you know, our team all kind of coming together and figuring out what we can do here to make it work financially, timelines, all the fun stuff.
00:49:01.140 --> 00:49:04.100
And it looks like we came up with something that's uh that's gonna work.
00:49:04.260 --> 00:49:05.860
So very excited about this.
00:49:06.019 --> 00:49:07.780
Um, we're calling it Paradigm Flats.
00:49:07.940 --> 00:49:13.140
It's a little bit of a hybrid between barn caves and uh and uh paradigm storage.
00:49:13.220 --> 00:49:18.100
So instead of three stories like the barn caves, and it's a detached, you know, single family unit.
00:49:18.260 --> 00:49:22.100
This is they are uh townhomes, but they are attached walls.
00:49:22.260 --> 00:49:26.579
They are still fee simple, so they are you know for sale, regular residential trade.
00:49:26.660 --> 00:49:29.860
You know, we are staying away from condos for many, many reasons.
00:49:30.100 --> 00:49:33.860
But these are uh you know shared walls, fee simple uh townhomes.
00:49:33.940 --> 00:49:36.740
So the pricing is gonna be a little cheaper as far as exit price.
00:49:36.900 --> 00:49:49.220
So you have your big garage down on the bottom, like you we do on the barn caves, and then you have your living space on the second floor, which you can kind of customize uh the way you want it, whether it's a big studio, man cave feel, you know, one bedroom, two bedroom, what have you.
00:49:49.380 --> 00:49:54.340
And then you got some cool stairs, uh, which I plan on doing some floating steel stairs to get up to the third floor.
00:49:54.500 --> 00:49:59.380
You have a little balcony on the second, and as you go up to the third floor, uh you have a rooftop deck.
00:49:59.460 --> 00:50:04.740
And depending on which unit uh you're in, the views of the lake are stunning.
00:50:04.980 --> 00:50:08.420
As an example, this is on Swanson and Smoke Tree.
00:50:08.500 --> 00:50:10.019
This is downtown right off of McCulloch.
00:50:10.180 --> 00:50:13.860
So, for those of you that know Lake Avisu, it's right behind Albertson's and Goodwill.
00:50:14.019 --> 00:50:19.140
This is the big parking lot that everyone knows it's a parking lot for the big events that are downtown.
00:50:19.300 --> 00:50:24.180
So uh I think we have some people that are gonna be mad at us because they don't have free parking anymore once we start building this thing.
00:50:24.260 --> 00:50:27.220
But other than that, uh, you know, we we love everybody.
00:50:27.300 --> 00:50:31.460
If any of you are mad at me for you know taking your parking away, but uh we got to do something with it.
00:50:31.620 --> 00:50:34.579
So uh we like this one because it's it's really kind of neat.
00:50:34.740 --> 00:50:36.180
We wanted to bring a different spin.
00:50:36.260 --> 00:50:40.980
Uh a lot of the finish work we're gonna allow pollinate uh between barn caves and the flats.
00:50:41.140 --> 00:50:48.340
But this is where, you know, I think um we spent a lot of time on the design, again, because we had to compress costs and really make sure we're doing the right thing here.
00:50:48.500 --> 00:50:51.700
But I uh I'm I'm a big advocate of uh Park City.
00:50:51.780 --> 00:50:52.980
I love being up in Park City.
00:50:53.220 --> 00:51:01.380
As some of you guys know, I've been working with developers and builders that have built multi-million dollar homes throughout the country, a lot in LA, Beverly Hills, Bel Air, Malibu, what have you.
00:51:01.460 --> 00:51:07.940
And I wanted to kind of bring a different polish to Lake Havasu, not only just the barn caves, but the finish work and the design.
00:51:08.100 --> 00:51:14.579
And so I ended up calling Rob and said, Rob, it's not ski season, but come on up, hang out with me for a little bit.
00:51:14.820 --> 00:51:19.620
I want to show you some properties that are being built out here in Heber and some of the other places in Park City.
00:51:19.700 --> 00:51:25.140
So we spent a week together going out, looking at all these builders, looking at pricing, kind of getting an idea of material.
00:51:25.220 --> 00:51:27.860
And we really came up with something that I think is absolutely stunning.
00:51:27.940 --> 00:51:35.460
And so for the price points that we're gonna sell these at, I mean, our list of buyers is incredible already for this thing.
00:51:35.620 --> 00:51:38.900
I do not believe we're gonna have a problem moving these at all either.
00:51:39.059 --> 00:51:41.300
Um, so definitely excited about that.
00:51:41.460 --> 00:51:48.019
Um, this is where um uh just gonna talk, talk bullet points to 68 units again, fee simple.
00:51:48.180 --> 00:51:53.220
Uh all the the living spaces, second floor, third space is the uh rooftop deck.
00:51:53.460 --> 00:51:56.820
Um, you know, it's uh it's more on the attainable, affordable housing.
00:51:56.900 --> 00:51:59.620
I never want to say affordable housing because some people think it's low income.
00:51:59.700 --> 00:52:00.420
That is not the case.
00:52:00.500 --> 00:52:01.700
This is what I call attainable.
00:52:01.780 --> 00:52:11.539
This is more in lines with, you know, sometimes people have first home buyers or people that want to do lock and key, you know, no big overhead, but they want to get access to you know a smaller unit.
00:52:11.620 --> 00:52:14.100
They just want to, you know, not spend a million bucks on a house.
00:52:14.260 --> 00:52:15.300
This is it right here.
00:52:15.460 --> 00:52:16.820
Um, and then you're in the heart of town.
00:52:16.900 --> 00:52:22.900
And when I say the heart of town, it's two left-handed rock throws away of old town downtown, and I'm right-handed.
00:52:22.980 --> 00:52:27.620
So, you know, you you can get there with a a couple uh a couple lunges and your set.
00:52:27.700 --> 00:52:28.900
So you're downtown.
00:52:29.059 --> 00:52:30.579
Um, phase one plans.
00:52:30.660 --> 00:52:32.019
I think we I said we submitted it.
00:52:32.100 --> 00:52:32.980
I I apologize.
00:52:33.140 --> 00:52:34.019
We haven't submitted it.
00:52:34.100 --> 00:52:36.180
We are in the middle of getting to submit it.
00:52:36.340 --> 00:52:38.500
Um, we're still actively raising capital.
00:52:38.579 --> 00:52:40.180
We're about 50% in commitments.
00:52:40.340 --> 00:52:42.100
What we did is we went out and raised the capital.
00:52:42.180 --> 00:52:47.780
We don't need it on deposit yet, but we do have our commitments and uh and the location obviously is key.
00:52:47.860 --> 00:52:50.340
So I'll go ahead and hand it over a little bit to Rob.
00:52:50.579 --> 00:52:54.820
Rob, if you don't mind, just kind of talk a little bit about the key features of the of the project.
00:52:55.300 --> 00:52:57.620
Yeah, so this project was a lot of fun.
00:52:57.700 --> 00:53:01.380
Uh this one that Ryan said we were gonna do uh do this one and go fast.
00:53:01.460 --> 00:53:10.180
And we did get a couple of uh ripples from the city, but we are uh at the last phase right now, getting the preliminary plat completed with the surveyor.
00:53:10.260 --> 00:53:14.260
Uh we'll be making this submittal within the next two weeks, I believe, to the city.
00:53:14.340 --> 00:53:17.700
And uh each building is pretty well similar with the finishes.
00:53:17.780 --> 00:53:32.340
Uh the one thing that Ryan didn't do me very good justice on is the exterior from uh McCulloch and Smoke Tree and and um you know at Swanson is is really it's really a good mix of materials and roof lines.
00:53:32.420 --> 00:53:41.780
I mean, what you've seen was an interior view, but what we actually have on the outside is uh you know a mixture of materials, similar to what you'd see in the ski chalets and in uh park city.
00:53:41.860 --> 00:53:48.579
And a lot of time was spent kind of analyzing some details and and looking at how they chose to resolve some design challenges.
00:53:48.820 --> 00:53:55.300
We kind of tried to apply some similar logic, but on a replicatable and cost-effective uh means.
00:53:55.539 --> 00:53:59.860
Uh, these things were designed as as wood as opposed to the uh metal of the steel.
00:53:59.940 --> 00:54:07.220
The reason being is we wanted to be able to get them up uh quickly, and we felt like we had more uh opportunity with workforce to get the wood designed.
00:54:07.539 --> 00:54:16.500
Interior features, uh, you know, European style cabinets, uh, steam showers are an option, uh rooftop decks that are panoramic.
00:54:16.660 --> 00:54:20.820
I mean the interior design, some of the buildings have elevators depending on the size.
00:54:20.900 --> 00:54:27.380
They range in size from uh you know 1900 square feet of living to 850 square feet of living.
00:54:27.539 --> 00:54:29.940
There's this is something for everyone in this development.
00:54:30.100 --> 00:54:36.660
If you're here just uh as a desert dweller that wants to run around in this can't a m and and do some exploring, we've got the unit for you.
00:54:36.820 --> 00:54:39.860
If you'd want uh your MTI, we've got the unit for you.
00:54:39.940 --> 00:54:51.059
This is these are the things that uh really was important, but to make this project work, we looked at seven different opportunities, seven different uh layouts for floor plan sizes.
00:54:51.140 --> 00:55:03.140
We looked at replicating something from Denver that uh Ryan had done, and one from uh San Antonio area that Ryan had done, and had kind of settled on this because when we said all of this stuff was gonna happen, Eric Adalia came in and just blew the whole thing up.
00:55:03.220 --> 00:55:04.340
And he said, No way.
00:55:05.860 --> 00:55:09.620
This used to be down Denver.
00:55:09.860 --> 00:55:16.100
And uh yeah, we kept pushing and he kept pushing back, and his arms are huge now, and uh we're all scared of them.
00:55:16.260 --> 00:55:17.140
So that's what we did.
00:55:17.220 --> 00:55:18.100
We just made it happen.
00:55:18.420 --> 00:55:31.380
Yeah, we so one of the things I try to do somewhat well is uh we are you know big kids, you know, that it's like Legos, but there is a difference between you know building something and then selling something.
00:55:31.620 --> 00:55:45.940
So what we did, and I thought was really smart was we brought Eric on and his team and some of the biggest um um unit uh players in his team, and they sat down and said, Hey, this is where we need to be, and this is uh the key features that you absolutely have to have.
00:55:46.019 --> 00:55:50.180
And to be candid with you, at some point we didn't think we were gonna be able to do it, huh, Rob?
00:55:50.660 --> 00:55:52.500
I think that's where it really came down to.
00:55:52.740 --> 00:55:54.980
There's a lot of infrastructure that has to go into this.
00:55:55.059 --> 00:56:13.380
And if anyone uh wonders what kind of task that is, I'm not sure Ryan wants me to share all the numbers, but I'll tell you what, uh, you could buy a small community for what we have to do for infrastructure on this project, including the traffic signal that the city is seemingly opposed to, uh depending on which council member you talk to and what election year you're in.
00:56:14.019 --> 00:56:18.500
This would be something that I would, and correct me if I'm wrong, I don't think I've ever even said it to you guys.
00:56:18.579 --> 00:56:26.660
So I'm just saying it here, but I would say this is kind of like a huge footprint of downtown, like nothing else has been built like this downtown.
00:56:26.820 --> 00:56:28.180
Would you say to Dennis?
00:56:28.579 --> 00:56:29.059
Absolutely.
00:56:29.220 --> 00:56:32.420
Yeah, this represents a keystone project for Lake Havse.
00:56:33.059 --> 00:56:33.380
Yeah.
00:56:33.539 --> 00:56:37.700
So, Dennis, you want to talk a little bit about this this site for me, please?
00:56:37.940 --> 00:56:40.579
Um, this site and me, just like you, it goes back.
00:56:40.660 --> 00:56:43.140
I'm I'm kind of uh very connected to it.
00:56:43.300 --> 00:56:54.579
Started working with it in 2018 and uh looking for a way to find somebody that could develop it, brought it to you um after we twisted and we came to terms with it.
00:56:54.740 --> 00:57:09.860
Uh the problem this project has always had is its encumberment with a gob of utility easements that nobody can really figure out why they are where where they're at, but it had kept the property from being developed for years and years.
00:57:10.100 --> 00:57:18.340
Um, my best play, Eric and I talked about this a couple years ago, was about 260 apartments on podium-style parking.
00:57:18.420 --> 00:57:22.740
Uh, it was outrageously expensive, and the ROI was just not there.
00:57:22.900 --> 00:57:48.180
Uh, so what Rob has conceived here um working with the utility providers, getting their buy-in and getting them to move everything out of the way is hugely costly, but it provides us a blank slate, a piece of property that we can actually build something special on and uh obviously get the returns that we need to, means that this is a property that's design restricted to uh density requirements that we couldn't do anything less than 68 units.
00:57:48.500 --> 00:57:51.700
So very, very interesting project.
00:57:51.860 --> 00:57:54.420
Um, a lot of moving parts again.
00:57:54.660 --> 00:57:58.740
I keep saying that, but uh the city has thrown us many curve balls.
00:57:59.059 --> 00:58:00.740
We have been able to get through them all.
00:58:00.820 --> 00:58:05.780
Uh the last meeting with city council gave us the go-ahead and we're ready to roll.
00:58:07.220 --> 00:58:10.980
Again, another couple of weeks, we'll have that uh preliminary plat.
00:58:11.539 --> 00:58:14.980
Everything is kind of coming together all at once with all these projects.
00:58:15.300 --> 00:58:27.700
And one thing just to add in before you go on, Ryan, I think it's really important, and if anyone wants to go see this documented, the uh city council meeting, they did put us last on the agenda, but they had some of the nicest things you'll hear about a developer.
00:58:27.860 --> 00:58:33.460
And I'm not trying to pump Ryan's tires, but I mean the honest truth is they love what Paradigm's doing.
00:58:33.620 --> 00:58:36.340
They're very much in support of what Paradigm is doing.
00:58:36.579 --> 00:58:46.340
The city of Lake Havisu feels that Paradigm does put together a very quality project uh project and has offered assistance in any way that they can to help us move forward on getting these projects done.
00:58:46.420 --> 00:58:59.140
And that includes working with the fire department representatives to get the last comments resolved on the gym and getting through the uh you know the FEMA shutdown, but they were uh you know integral in helping us to navigate some of that stuff as well.
00:58:59.300 --> 00:59:06.900
So the city definitely, yeah, if you have the opportunity and you want to go look at a uh city council meeting because you have nothing better to do, you'll see some really nice things coming into that.
00:59:07.140 --> 00:59:08.180
Yeah, thank you, Rob.
00:59:08.340 --> 00:59:08.820
I appreciate it.
00:59:08.980 --> 00:59:10.900
By the way, Steven, I know we lost you and you came back.
00:59:10.980 --> 00:59:15.700
We're gonna go back to the barn caves here in a little bit because I want to talk a little bit about the steel structure because that was some important stuff.
00:59:15.860 --> 00:59:16.740
But we lost you.
00:59:16.820 --> 00:59:18.260
So we'll go back to that in a bit.
00:59:18.420 --> 00:59:19.940
So, Rob, thank you for that, my friend.
00:59:20.100 --> 00:59:22.100
All right, so let's just kind of keep pumping forward here.
00:59:22.180 --> 00:59:24.180
So, guys, as always, I just gonna make this quick.
00:59:24.260 --> 00:59:28.900
If you want to get involved and invest, 24% uh is our projected return.
00:59:29.059 --> 00:59:34.420
That's a two and a half year investment, 68 units,$50,000 minimum, must be accredited, by the way.
00:59:34.579 --> 00:59:37.380
For the full disclosure, every investor must be accredited.
00:59:37.460 --> 00:59:39.539
We do verification, we're very compliant.
00:59:39.780 --> 00:59:44.019
And uh we'll uh if you are interested, we'll get Matt on the phone and chat with you.
00:59:44.180 --> 00:59:47.940
But I think that one uh as well as a 70-30 split, if I recall.
00:59:48.100 --> 00:59:51.780
Um, and uh so again, very institutionally structured.
00:59:52.100 --> 01:00:00.019
Okay, let's move over to uh the the last and final one, and then we'll touch base real quick back on the Barn Cave steel structure because I want uh Steven to talk about that.
01:00:00.180 --> 01:00:03.140
That was actually one of the reasons for the podcast so or the webinar.
01:00:03.220 --> 01:00:04.740
So I want to make sure we touch on that.
01:00:04.820 --> 01:00:06.740
Um, okay, guys, so this is the latest and greatest.
01:00:06.820 --> 01:00:08.579
So I want to tell you a little backstory on this.
01:00:08.660 --> 01:00:13.940
Um, my background, as you guys know, on the debt piece, debt side, uh in 2008 I lost everything.
01:00:14.019 --> 01:00:20.180
I started kind of at least cutting my teeth and was able to put food on the table by doing distressed asset workout turnarounds.
01:00:20.340 --> 01:00:24.100
Uh, as you guys know, I and I mentioned earlier, I manage a hundred million dollar debt fund.
01:00:24.180 --> 01:00:26.420
Again, it's a hard money lending uh platform.
01:00:26.579 --> 01:00:29.059
We lend money to developers and builders throughout the country.
01:00:29.140 --> 01:00:34.980
We typically operate in about 14 states, which most of the migration is going to, and uh people are just running to, if you will.
01:00:35.059 --> 01:00:36.260
Again, low taxes.
01:00:36.420 --> 01:00:41.380
There are many different little bullet points why we we focus on lending in those plat and to those areas.
01:00:41.620 --> 01:00:44.500
However, this is just uh if you guys can see some of the pictures.
01:00:44.579 --> 01:00:49.140
I don't know if all of you are actually able to see the slide, but in the very background, that is Nashville.
01:00:49.300 --> 01:00:54.420
So this is uh about 22 minutes north, if you're on the highway, uh, from Nashville.
01:00:54.500 --> 01:00:57.460
You have Old Hickory about six miles away from there.
01:00:57.620 --> 01:01:09.539
Um, as you guys would expect, I'm gonna be looking at migration and spending habits along with people that are looking to park their boats, RVs, and uh and uh you know, capitalize on that market.
01:01:09.940 --> 01:01:14.500
My feasibility study, which I'll touch on here in a little bit, was unbelievably incredible.
01:01:14.579 --> 01:01:16.500
Um, I don't want you just to take my word for it.
01:01:16.579 --> 01:01:18.100
I'll send you a full write-up on it.
01:01:18.180 --> 01:01:24.420
Uh, all the way down to the mixed-use health and wellness center that we are gonna have in it, along with the 80 units of boat and RV storage.
01:01:24.500 --> 01:01:26.900
It's going to be a Paradigm 2.0 product.
01:01:27.140 --> 01:01:28.420
Obviously, we know it well.
01:01:28.500 --> 01:01:35.539
And given the demand and deficiencies of this product in the area, we think we're gonna hit it out of the park, maybe even better than Paradigm Storage.
01:01:35.700 --> 01:01:37.700
So uh the data is there to support it.
01:01:37.780 --> 01:01:42.980
Uh so what happened is I lent money to a builder, a developer who wanted to develop storage.
01:01:43.140 --> 01:01:44.980
And obviously, I know what that is like.
01:01:45.140 --> 01:01:48.900
And so we lent him money, uh, 50% on the value of the land.
01:01:49.059 --> 01:01:52.579
There was a home on there, and the idea was to tear that house down.
01:01:52.660 --> 01:01:56.100
So when we got the appraisal, I also wanted land value without the house.
01:01:56.260 --> 01:02:01.460
So we only lent money against the value of the land, not with the house, knowing that he will be tearing it down.
01:02:01.700 --> 01:02:08.660
So after he went through planning entitlements, um we you know he wasn't uh he was unable to make his payments because it took him too long.
01:02:08.820 --> 01:02:17.780
And really what he tried where his mistake was is that he was trying to roll up the property next to it to try to get about 15 acres in total uh to develop.
01:02:17.860 --> 01:02:20.980
And so he really slow played this, and that's where his mistake was.
01:02:21.140 --> 01:02:22.420
Um, he kind of ran out of payments.
01:02:22.500 --> 01:02:24.820
We tried to give him extensions, list kind of goes on.
01:02:24.980 --> 01:02:30.820
I have a fiduciary duty, we foreclosed, pulled it, uh, took back the property, and now we're repurposing the asset.
01:02:30.980 --> 01:02:35.059
So ultimately, this is a distressed asset play that we already own the property.
01:02:35.300 --> 01:02:39.620
And uh, and in essence, pointed off that uh the debt piece was about a million bucks.
01:02:39.780 --> 01:02:42.340
The value came in at 2.6, so we're walking in with equity.
01:02:42.420 --> 01:02:45.380
I can turn around and sell it and walk with one six if I wanted to right now.
01:02:45.620 --> 01:02:55.220
But given the migration and the data, we wanted to kind of continue to expand and make a little bit more money and uh and kind of create some more wealth opportunities for not only our families, but for yours.
01:02:55.460 --> 01:03:01.780
So with that said, we are uh we sat with Rob and said, Rob, you are the king of uh storage units for us.
01:03:01.860 --> 01:03:02.900
Let's see what you got for me.
01:03:03.059 --> 01:03:06.260
So looking at this, it's I think I believe it's 4.95 acres.
01:03:06.340 --> 01:03:11.059
And what we did is we went ahead and uh carved out about an acre and a half or so for the front piece.
01:03:11.220 --> 01:03:14.019
There's 15,000 cars a day that go down this road.
01:03:14.180 --> 01:03:17.539
So it's a main vein, actually, in and out of Nashville.
01:03:17.620 --> 01:03:20.500
So it's very, very dense and growing.
01:03:20.579 --> 01:03:28.100
Uh, when we're looking at the feasibility studies, you have 244,000 registered water vessels a year in this area.
01:03:28.260 --> 01:03:29.380
It's absolutely incredible.
01:03:29.539 --> 01:03:34.340
The lake is much larger than Lake Havasu, if any of you know old old hickory, much more dense.
01:03:34.420 --> 01:03:35.620
You have homes on the water.
01:03:35.700 --> 01:03:37.940
There's no dry storage, a lot of marinas.
01:03:38.180 --> 01:03:44.740
Uh, even the feasibility studies talked about uh the Corps of Engineers approving more marinas are going in, more restaurants are going in.
01:03:45.059 --> 01:03:48.260
Very forward, uh, advanced thinking cities.
01:03:48.420 --> 01:03:50.820
They move a whole lot quicker, which I love.
01:03:50.980 --> 01:03:56.340
Um, but uh, you know, this is this in our our in our opinion is a rather decent opportunity.
01:03:56.579 --> 01:04:01.220
Um Rob, do you want to go ahead and talk just about the just the project itself?
01:04:01.300 --> 01:04:02.740
And then I'll kind of fill some gaps.
01:04:02.900 --> 01:04:11.059
But um, again, it's 80 units of uh boat and RV storage, and then we have a 10,000 square foot facility on the on the very front of the property.
01:04:11.220 --> 01:04:14.820
That will be a health and care, uh health and wellness center as well with a medical tenant.
01:04:14.980 --> 01:04:19.059
We're actually mimicking the model that we're doing at the Barn Caves, the data supporting it.
01:04:19.140 --> 01:04:26.500
And I'm actually sitting in our headquarters that's now a fitness center as well, uh, that I can show real active data, which we're gonna have our last slide too.
01:04:26.660 --> 01:04:28.420
But Rob, talk a little bit about it, please.
01:04:28.740 --> 01:04:38.100
Yeah, so we were uh tasked with coming up with a with a site plan that would meet all of the criteria for the Goodlitzville, Tennessee uh planning and zoning um ordinance.
01:04:38.340 --> 01:04:40.100
Went through a couple of different iterations.
01:04:40.180 --> 01:04:47.460
There are some setbacks, uh some green zones, and a few um just to keep in mind as far as the exterior of the building.
01:04:47.620 --> 01:04:50.660
Um they've had they've been actually very interactive with us.
01:04:50.820 --> 01:05:06.019
They've um conducted a couple of meetings, one in person with Ryan, and a couple over the telephone with us, and have given us the ability to uh meet them for their planning and zoning meeting this coming uh July 6th, where we'll sit down.
01:05:06.100 --> 01:05:21.059
We're at the end of the uh end of the uh agenda, they have kind of a discussion topic of things that are coming uh in the future, and we're gonna go through the project in in great detail, kind of talking through why we think it's a winner, why we think it's gonna be successful, and how we're gonna comply with the codes.
01:05:21.300 --> 01:05:22.740
There's a few uh nuances.
01:05:22.820 --> 01:05:32.980
One thing that they are, you know, we're we're by right approved zone, but there is um one of the nuances the codes they do require us to go through some certain entitlements, so we are we can talk to them about that.
01:05:33.220 --> 01:05:44.740
The following day, they put us on their uh BZA meeting, which is like their board of zoning appeals, and we'll you know present our case in more formal detail and see if we are uh you know a good fit for what they're looking for.
01:05:44.900 --> 01:05:52.100
We're pretty confident based on what we've talked to the uh planning and zoning director about, um, that this is something that they would be in favor of.
01:05:52.180 --> 01:06:02.340
And as long as we meet their uh aesthetics on the building, which is a certain amount of uh stone or or stucco or siding other than metal, um, and we're pretty confident this is gonna move forward.
01:06:02.420 --> 01:06:04.660
So we're excited to see what next week's meetings bring.
01:06:04.980 --> 01:06:05.140
Yeah.
01:06:05.300 --> 01:06:06.980
Dennis, you want to talk a little bit on that too?
01:06:07.140 --> 01:06:08.579
Some of your conversations you had?
01:06:08.980 --> 01:06:13.059
Yeah, when you brought this to me, I got on the phone with the good list girl right away.
01:06:13.220 --> 01:06:15.059
Um, really great people.
01:06:15.220 --> 01:06:19.700
Uh interestingly, nothing like this seems to have hit that area.
01:06:19.860 --> 01:06:28.100
So So uh the interest was fairly high, and they had a lot of questions about what kind of uh product this would really look like.
01:06:28.500 --> 01:06:34.260
These renderings are fantastic, um, representation of I think where we'll end up.
01:06:34.420 --> 01:06:40.660
And uh, we got the density again on the uh storage that that helped make all of this work.
01:06:40.740 --> 01:06:52.980
Um, that meeting that you've got coming up uh will be a big uh one of the few obstacles, probably one of the big obstacles that that is going to really solidify them and their understanding of the project.
01:06:53.059 --> 01:06:55.620
So for them and the understanding of the project.
01:06:55.780 --> 01:07:01.460
So this is uh a big um step into continuing our move into Tennessee.
01:07:02.019 --> 01:07:18.340
Yeah, one thing to sorry, Ryan, one thing I think we'd all agree too is this is a pretty conservative play for Paradigm, being the fact that these are sized at a 20 by 50, as opposed to swinging for the fences like our Paradigm storage product has here in Lake Capestry, where we've got units as big as 2,900 square feet.
01:07:18.500 --> 01:07:25.140
So this is really just a good uh middle of the road kind of let's make sure it works kind of deal.
01:07:26.100 --> 01:07:27.539
Yeah, no, I totally agree.
01:07:27.620 --> 01:07:29.700
And that's that's one of the important components.
01:07:29.780 --> 01:07:34.500
We we aren't worried about the data, but you know, really have to kind of be careful over the size of the lot we had.
01:07:34.579 --> 01:07:37.860
So there's a lot of consideration on how we had to make it work, but it's true.
01:07:37.940 --> 01:07:49.059
We wanted to be kind of a into something that's a little bit smaller, you know, 20-foot-wide units instead of 28, which is very common to paradigm storage, 50 foot deep, which most common is 60, you know, and then we have some really large ones, like Rob said.
01:07:49.140 --> 01:07:51.300
So these are all gonna be very consistent.
01:07:51.539 --> 01:07:54.980
And what that really does is just opens up, you know, the pool for larger buyers.
01:07:55.140 --> 01:07:57.940
Paradigm storage, I think, you know, Eric correct me if I'm wrong.
01:07:58.019 --> 01:08:01.059
We had one buyer buy 18 units on the 1031 exchange.
01:08:01.140 --> 01:08:03.700
So we've had a lot of tens and nines and eights and so forth.
01:08:03.780 --> 01:08:07.059
So, you know, that's gonna be probably a decent size of our buyer pool.
01:08:07.220 --> 01:08:10.500
Um, and if you guys want to take a wild guess, who's gonna sell these things?
01:08:10.980 --> 01:08:13.059
So take a little wild guess.
01:08:13.140 --> 01:08:14.820
I think Eric's gonna be the one moving all these things.
01:08:14.980 --> 01:08:20.260
But the point is that um, you know, this is a little more of a conservative project, and the land was kind of given to us.
01:08:20.340 --> 01:08:24.180
So it makes it easy to kind of go in and figure out what we need to do and and uh pop it up.
01:08:24.260 --> 01:08:25.939
So and the medical tenants are important.
01:08:26.260 --> 01:08:29.859
Uh a lot of these other car caves, and this is something that I really wanted to consider.
01:08:29.939 --> 01:08:31.779
So you have a company called Rally Point.
01:08:31.859 --> 01:08:34.500
If you guys want to get a take, uh look at it, Google it.
01:08:34.579 --> 01:08:36.019
They're in Hendersonville.
01:08:36.340 --> 01:08:37.140
Really cool product.
01:08:37.220 --> 01:08:38.260
They only have two units left.
01:08:38.340 --> 01:08:42.260
They're selling these things for$326 a foot, I think, is on average.
01:08:42.340 --> 01:08:45.539
They were tracking anywhere between$285 and I think now at$326.
01:08:45.699 --> 01:08:48.180
I could be wrong, they may have sold the other two by now.
01:08:48.260 --> 01:08:51.539
Uh, but they only had two units left when I looked it up about a month ago.
01:08:51.699 --> 01:08:55.220
Um, they uh I I've walked that project well a long time ago.
01:08:55.300 --> 01:08:56.340
I've seen it now completed.
01:08:56.420 --> 01:08:59.220
I've seen it now go all the way through the construction process.
01:08:59.460 --> 01:09:02.020
And uh it was very, very uh impressive.
01:09:02.180 --> 01:09:06.340
Now, I personally think, of course, I'm biased, so bear with me, that we have a superior product.
01:09:06.420 --> 01:09:09.619
Our driveways are larger, our units are larger, our design is nicer.
01:09:09.699 --> 01:09:12.739
Uh, we have a lot larger unit count, it's a bigger community.
01:09:12.900 --> 01:09:18.659
And the one thing that I've seen about a lot of these car condos is that they have a common area that no one ever uses.
01:09:18.739 --> 01:09:21.860
Now, mind you, and I want to I want to just this is our experience.
01:09:22.020 --> 01:09:24.260
I have 208 units.
01:09:24.500 --> 01:09:26.579
Rally Point has 36 units.
01:09:26.739 --> 01:09:28.340
This ours have 80.
01:09:28.500 --> 01:09:31.940
I have 208, and there's nobody really there, right?
01:09:32.020 --> 01:09:34.340
So it's not like people go there and actually really hang out.
01:09:34.420 --> 01:09:38.579
You'll have two, three, maybe tenants that are there consistently, but it's not like you think it would.
01:09:38.659 --> 01:09:43.860
So having a big common area that's be not being used at just more cost of an HOA, right?
01:09:44.020 --> 01:09:49.380
I can go into the same practices of the barn caves, but it's the same, it's the same concept, you know.
01:09:49.539 --> 01:09:54.659
So we wanted to kind of get rid of that, you know, uh common area that no one's gonna use, it's just gonna cost money.
01:09:54.819 --> 01:10:04.180
So what we did was, and again, the city though also required some sort of retail against the street because it they don't want, you know, and I don't blame them, you know, storage units against the street.
01:10:04.340 --> 01:10:06.579
They wanted something uh with a little more curb appeal.
01:10:06.659 --> 01:10:11.779
So retail, because of this whole entire corridor has that already, we had to kind of think this through.
01:10:11.940 --> 01:10:15.300
And since we're already building a health and wellness center, we might as well just populate that.
01:10:15.380 --> 01:10:16.420
And we've already done it.
01:10:16.500 --> 01:10:19.860
So now it's like we can do this on a 10,000 square foot space, no problem.
01:10:20.100 --> 01:10:23.779
So that's really been kind of the the common theme.
01:10:24.100 --> 01:10:33.460
The feasibility studies where we're hanging our hat, it's important for you guys to know, like who are, you know, from from running a business, having a healthcare facility, we there is tax advantages on this.
01:10:33.539 --> 01:10:35.940
We are doing a cost segregation study on the building.
01:10:36.100 --> 01:10:38.100
We are passing those credits over, you know.
01:10:38.180 --> 01:10:43.140
So all of those little tax advantages are inside of the investment, which we can talk about if any of you guys are interested.
01:10:43.380 --> 01:10:46.739
Um, well, uh, Rob, I think you and I are meeting uh Monday morning.
01:10:46.819 --> 01:10:49.300
Well, I'm gonna meet you Sunday, but we are meeting Monday morning.
01:10:49.460 --> 01:10:52.260
And uh next Monday we're gonna be at the city of Goodlitzville.
01:10:52.500 --> 01:10:54.659
So yeah, that's exciting.
01:10:54.900 --> 01:10:57.860
So um, and we've gotten good feedback from pretty much everybody.
01:10:57.940 --> 01:11:04.900
You know, we wouldn't go into this if we didn't have some behind-the-scenes conversations with uh with people that are in the area or in the city.
01:11:04.980 --> 01:11:07.220
So just to let you guys know we feel very comfortable.
01:11:07.380 --> 01:11:08.900
Um, real investment structure.
01:11:08.980 --> 01:11:12.980
This one's kind of neat, just kind of given uh the design and the layout and phasing.
01:11:13.060 --> 01:11:16.420
Uh, we are going to be at a 30% return, very similar to the barn caves.
01:11:16.500 --> 01:11:18.180
This is going to be a three-year investment.
01:11:18.340 --> 01:11:21.539
Our performer is showing 28 months, but let's just say three years.
01:11:21.779 --> 01:11:25.220
Um, we are uh total project cost is 18 million.
01:11:25.380 --> 01:11:31.060
Uh we are raising, I think we're raising, I don't think we have it on there properly, but it's we have a 12% preferred return.
01:11:31.140 --> 01:11:32.980
So in essence, it's a 12% cash flow.
01:11:33.060 --> 01:11:34.180
It starts at year one.
01:11:34.420 --> 01:11:36.739
Two sets of dividends uh out the year.
01:11:36.819 --> 01:11:40.100
So every six months you get a dividend, a 12% for the year.
01:11:40.180 --> 01:11:41.699
So two dividends a year.
01:11:41.860 --> 01:11:49.860
So you get a cash flow component of 12% on your money, and then you have a big kicker on the back end, so you'll have uh a 30% return uh on the on the back end.
01:11:49.940 --> 01:11:52.819
Uh the total capital raise is four million.
01:11:53.140 --> 01:11:58.180
Total net profit to our investors is 4.8 million, and it's a 1.62 multiple.
01:11:58.340 --> 01:12:02.900
So uh moving on to that, I'm gonna kind of jump back over to the barn cave.
01:12:02.980 --> 01:12:04.420
So, Stevie, can you hear us?
01:12:05.460 --> 01:12:06.579
Yes, can you hear me?
01:12:06.819 --> 01:12:08.180
Okay, yeah, we got you.
01:12:08.260 --> 01:12:09.380
Okay, I want to talk real quick.
01:12:09.460 --> 01:12:10.659
Let's kind of bounce back and forth.
01:12:10.739 --> 01:12:12.659
So forgive us, uh, you know, to our audience.
01:12:12.739 --> 01:12:13.940
We wanted to, we just launched it earlier.
01:12:14.020 --> 01:12:19.300
So I want to talk about the steel structure and some of the moving pieces with inside, not only the barn caves, but the gym.
01:12:19.380 --> 01:12:28.739
So let's talk about the design, the structural steel of the of the gym, uh, wrapping up the gym, and then also the structural component for barn caves.
01:12:28.980 --> 01:12:32.100
Yeah, I'll be really crisp with this, and I apologize.
01:12:32.739 --> 01:12:37.699
I'm joining the call by phone, and every time somebody calls me, it knocks me out of the call.
01:12:37.860 --> 01:12:39.140
So I apologize for that.
01:12:39.380 --> 01:12:42.739
So what happens here is is strange.
01:12:42.900 --> 01:12:44.980
So I hope it doesn't happen again in the next five minutes.
01:12:45.140 --> 01:12:50.260
So, with the concept of the barn case from a structural steel point of view, uh, Ryan is correct.
01:12:51.220 --> 01:12:59.860
Steel is sold by weight, and we end up trying to minimize the cost of the steel by minimizing the weight.
01:13:00.100 --> 01:13:05.539
So part of the plan here was to bear the structure outside wall to outside wall.
01:13:05.779 --> 01:13:08.980
We want to free span over the garage level.
01:13:09.140 --> 01:13:15.140
We want to free span that 19-foot vertical space from 28 to 28.
01:13:15.220 --> 01:13:20.739
We want to go out exterior wall to exterior wall, full span of 28 feet without any interior columns.
01:13:21.140 --> 01:13:34.579
That reduces steel, it increases the vertical, the dimension of choice, but we're still looking at efficiency of cost, and then the speed at which these things can be built.
01:13:34.819 --> 01:13:43.699
So now coming back to the upper levels, once we've spanned outside wall to outside wall on the lower level, you have a little more flexibility.
01:13:43.940 --> 01:13:52.500
So conceptually, and this is something I think Eric can appreciate, we're building a free span box three levels high.
01:13:52.819 --> 01:13:56.340
The customization comes on the interior layout.
01:13:56.500 --> 01:14:03.779
You know, we have our prototypes which show where the kitchen's gonna be, which show where the units are gonna go, and the heating units and the bathrooms.
01:14:03.940 --> 01:14:12.819
We show all of that in our prototype plans, but we're not locked into that because we're free, we're free-spanning outside wall to outside wall.
01:14:13.220 --> 01:14:21.380
So an investor or a buyer or a user is gonna come in and have at least the flexibility to modify that internal floor plan.
01:14:21.860 --> 01:14:28.739
Still using steel studs for the for the upper levels, interior steel studs, 18 gauge metal probably.
01:14:28.819 --> 01:14:39.860
Um, but we're 19 feet floor to floor in the garage level, we're 12 feet floor to floor, and the upper two levels, so that's 24 plus 19.
01:14:40.020 --> 01:14:46.980
We're at 43 feet of uh free span, 43 feet of living space vertically.
01:14:47.140 --> 01:14:51.860
So you've got lots of drama in space, lots of verticality.
01:14:52.020 --> 01:14:59.779
That allows us to go the 28 feet outside wall to outside wall and work all the ducts and all the equipment into the barge.
01:15:00.739 --> 01:15:04.500
And then we uh we went one step further with our systemization.
01:15:04.579 --> 01:15:07.619
We're looking at okay, can we panelize this thing?
01:15:07.779 --> 01:15:09.619
And what does panelization look like?
01:15:09.779 --> 01:15:12.819
Can we ship it on a truck, you know, one house at a time?
01:15:13.060 --> 01:15:24.180
Can we ship it on a flatbed or two flatbeds, deliver it to the site, and put it up like a house of cards, you just lift it up with a crane and stack it in place and bolt it down.
01:15:24.340 --> 01:15:33.619
So we've played with several different concepts, including something as simple as an umbrella, you know, or or one of those beach tents that you see where they're telescoping.
01:15:33.779 --> 01:15:39.699
You hit a button, you pull up the structure, it telescopes back into itself and you take it down.
01:15:39.860 --> 01:15:50.420
But at least in terms of the convenience of construction, you want to deliver it on a truck, put it telescoped into place, or keep the uh erection time to a minimum.
01:15:50.739 --> 01:15:57.940
We're trying to stay away from conventional bar joists, we're trying to stay away from conventional concrete floors.
01:15:58.260 --> 01:16:14.500
Our planking system is uh prototype where we're basically delivering floor plants that are 12 feet by six feet, and you're dropping them into the floor so that everything you know fits together like uh like tinker toys or Legos.
01:16:14.980 --> 01:16:25.619
So that was the uh that was the cost the cost implications of that are tremendous if we're able to systemize it the way we have imagined it.
01:16:25.860 --> 01:16:36.340
And this is what's fun for an architect is you take a conventional box and then you try to get everything you can inside the box, but you have to think outside the box in order to make that work.
01:16:36.739 --> 01:16:44.579
Even the condensing units that service the uh heating and ventilating, you know, we're looking at two five-ton units to keep these things cool.
01:16:44.739 --> 01:16:49.380
You know, one unit services basically the garage level, and the other unit surfaces the upper two.
01:16:49.619 --> 01:16:55.380
So you get two five-ton units, all those condensing units are sandwiched in within the footprint.
01:16:55.539 --> 01:17:00.260
They're an outdoor alcove that can be serviced from the outside.
01:17:00.420 --> 01:17:05.300
So lots of great ideas, and I think when we got cut off, when I got cut off, we were talking about the elevators.
01:17:05.539 --> 01:17:07.460
We're looking at pneumatic elevators.
01:17:07.619 --> 01:17:13.779
We don't want to dig elevator pits, we don't want to put plungers in the ground or have you know hydraulic hoses everywhere.
01:17:13.940 --> 01:17:20.980
We don't want we don't want hoists with a lift bar overhead to lift the uh elevator cab into place.
01:17:21.140 --> 01:17:33.699
We're trying to use pneumatics, which is still an electric system, but the electric pump that pumps the air uh is is a minimally invasive cost factor in the overall budget.
01:17:34.659 --> 01:17:57.140
Other than that, construction in my world and along the Texas coast, because of the highly corrosive environment, you know, we look at panelizing things all the time, the stereo studs and even uh plate steel on the outside of the studs so that we can deliver it uh on a truck without racking and just lift the put the panels in place.
01:17:57.300 --> 01:18:09.300
So there's lots of ways to minimize the time and cost on the front end, but it does still allow for flexibility on the interior layout if somebody wants to modify it in some way.
01:18:09.619 --> 01:18:10.500
Yeah, perfect.
01:18:10.739 --> 01:18:11.940
Yeah, that was perfect, Stephen.
01:18:12.020 --> 01:18:13.699
Hopefully, most of you guys were able to kind of catch that.
01:18:13.779 --> 01:18:17.619
I was a little broken up, but I was gonna let you keep going because I was still listening, I got it.
01:18:17.860 --> 01:18:28.180
But really to kind of sum it up to it a little further, is the idea was when we were going into the design of this, was the amount of phone calls we were, you know, getting from builders.
01:18:28.260 --> 01:18:46.180
And and you if you kind of recall recap the conversation I had, or what I was saying mentioned earlier about the barn dominiums and all these groups that are on the southeast that were building these things and the technology with steel, what was happening is as we were marketing this building, this product, we were getting phone calls from other builders throughout the country.
01:18:46.500 --> 01:18:48.980
Hey, Steven, go ahead and uh mute your side there, pal.
01:18:49.380 --> 01:18:50.900
I don't know if I can do it on yourself.
01:18:51.300 --> 01:18:58.579
Um, but uh what we were what we're uh what we wanted to do was ultimately come up with a a system that we can white label it to other builders.
01:18:58.659 --> 01:19:09.940
I had a group that was out of uh Boulder, Colorado, as for those of you that may know, um the uh the Sundance Festival went from Park City, I think this this year was the last year and moved to Boulder.
01:19:10.020 --> 01:19:12.500
I did not know that until literally like last year.
01:19:12.739 --> 01:19:16.980
And uh a builder, mine friend of mine, called me and said, Hey, I got a I have a thousand acres.
01:19:17.060 --> 01:19:21.699
I'm doing a master plan community, two million square feet of retail acreed by a grocery store.
01:19:21.860 --> 01:19:27.140
And then I want to go ahead and and buy 720 of your buildings.
01:19:27.380 --> 01:19:31.140
And that really caught my attention because this again, this is the next movement.
01:19:31.220 --> 01:19:38.260
You're talking about, you know, certain areas where you do have snow loads, you do have certain things, and steel buildings is kind of where it's at in those types of atmospheres.
01:19:38.500 --> 01:19:48.420
So I wanted to get to a point where we brought on the right architects and engineers to set up a way where we can manufacture these buildings and then white label them from other builders and develop buildings too.
01:19:48.579 --> 01:19:52.100
So that's like a whole nother, you know, business that we are still going down.
01:19:52.180 --> 01:19:56.819
We just want to build the first few, kind of get the kinks out, if you will, and then go down that road.
01:19:56.900 --> 01:20:04.180
But that's the reason why we wanted to bring on the pedigree of uh architects and engineers because that's our long-term goal is to be able to pump these things out.
01:20:04.340 --> 01:20:13.220
Even if we were our own builder and we want to keep the the technology close to the vest, we could at least go and start buying sites throughout the country and pop these up and kind of you know have a little bit of a run.
01:20:13.300 --> 01:20:17.140
So that was really kind of the the the forward thinking plan.
01:20:17.779 --> 01:20:20.020
If you guys haven't noticed yet, I'm a big thinker.
01:20:20.180 --> 01:20:25.300
I start trying to think uh 10 years out and you know, kind of where we where we're gonna go and where the world's gonna go.
01:20:25.460 --> 01:20:26.340
So, okay.
01:20:26.579 --> 01:20:28.739
With that said, Steven, is there anything else you want to add?
01:20:28.819 --> 01:20:30.260
Or Rob, do you want to add anything to that?
01:20:30.340 --> 01:20:32.340
Because I know it's a little clear on your end.
01:20:33.539 --> 01:20:37.060
No, I mean that's what the vision sorry, go ahead, Steve.
01:20:37.300 --> 01:20:37.539
Go ahead.
01:20:37.860 --> 01:20:38.340
Go ahead.
01:20:38.659 --> 01:20:45.779
I was gonna say that they uh that's what the vision started out as something we could replicate, something that we could um build everywhere.
01:20:45.940 --> 01:20:51.699
We pitched this in the original meeting we had with the city when we were talking about a uh rezone that was required.
01:20:51.860 --> 01:21:09.699
We pitched this as something that wasn't just um a one-off building, but this was something that Lake Abbasid was going to be ground zero for um you know a major manufacturing uh effort that we'd like to keep here and uh be able to match produce and sand over um throughout the country.
01:21:09.779 --> 01:21:16.739
And and to do that, you really do have to factor in a number of different codes just because of the different conditions we face in such a great country like the United States.
01:21:16.900 --> 01:21:23.140
We've got uh tornadoes on one side and and extreme heat here and excessive cold up north.
01:21:23.220 --> 01:21:40.659
And to manage to satisfy all the the codes, it does take some time, but to get a couple of these built and uh make sure that you know the the program works and Dennis and his team finding the efficiencies in construction, um, you know, each one of these will evolve and and I'm sure it won't look a whole lot like it does at this time.
01:21:40.739 --> 01:21:51.619
That's the way construction works, but um the idea is to create something that that uh will be a paradigm brand and could be another revenue storage, another avenue that uh Ryan and his team can go down.
01:21:52.020 --> 01:21:56.659
Yep, thank you, Rob and Rob, you did a great job.
01:21:56.900 --> 01:22:00.180
You summarized almost exactly the points I was going to summarize.
01:22:00.340 --> 01:22:10.819
And and just for the audience here, when you're designing for a for a systemized package that's going to be delivered anywhere in the country and can be built, you you design for the worst case scenario.
01:22:11.060 --> 01:22:13.940
It's unfortunate that we have to do that, but Rob is right.
01:22:14.100 --> 01:22:21.300
We have to design for the highest potential wind load, sometimes we have to design for earthquake and lateral movement of the foundation.
01:22:21.380 --> 01:22:27.060
Uh, sometimes we have to design for the extreme heat and cold shifts that occur during the winter months.
01:22:27.220 --> 01:22:42.020
So if you look at the list of codes that are involved that we must comply with, we do the conservative thing, we comply with all of them in our prototype, but when they're actually shipped and built, there are certain uh mitigating factors.
01:22:42.180 --> 01:22:53.539
And we can reduce uh the insulation in the walls and the ceilings, we can reduce the uh the scrapping in the walls that are wind resistant when they're not building in the wind zone.
01:22:53.619 --> 01:22:56.180
So all of those things have to be factored in for for now.
01:22:56.340 --> 01:23:02.980
The prototype uh intends to meet all conditions in the worst case scenario.
01:23:04.180 --> 01:23:04.900
Yep, perfect.
01:23:04.980 --> 01:23:05.619
Thank you, Stephen.
01:23:05.779 --> 01:23:06.579
Okay, guys, you know what?
01:23:06.659 --> 01:23:08.819
I think that's gonna be we've kind of got a little bit longer.
01:23:09.060 --> 01:23:10.659
I want to stay under an hour and a half.
01:23:10.739 --> 01:23:11.860
We're getting close to that.
01:23:12.100 --> 01:23:15.220
Rob, Stephen, Dennis, anything else you guys want to add?
01:23:17.060 --> 01:23:18.659
We good to any project you've set.
01:23:18.980 --> 01:23:19.699
Okay, perfect.
01:23:19.860 --> 01:23:24.340
Okay, guys, for any of you that are interested, uh, there'll be uh two people that may be reaching out.
01:23:24.500 --> 01:23:29.300
I have uh Matt, which is up on our on our um our uh screen now.
01:23:29.460 --> 01:23:31.860
Matt's our uh leads our investor relations department.
01:23:31.940 --> 01:23:33.220
He's got more energy than me.
01:23:33.300 --> 01:23:36.420
So forgive me if forgive him if he's calling you and talking fast.
01:23:36.659 --> 01:23:37.779
And then you have Amy as well.
01:23:37.940 --> 01:23:41.860
Amy will uh parallel him on follow-ups and phone calls, and she's an amazing person.
01:23:41.940 --> 01:23:42.579
You guys will love her.
01:23:42.659 --> 01:23:47.460
She's from Lake Kavasu, very knowledgeable, and uh, we have kind of a very similar parallel path.
01:23:47.699 --> 01:23:49.539
Her father raised her and my father raised me.
01:23:49.619 --> 01:23:51.539
So it's really kind of cool that we've kind of crossed paths.
01:23:51.619 --> 01:23:53.460
So she's a great human, anyways, guys.
01:23:53.539 --> 01:23:54.340
Thank you so very much.
01:23:54.420 --> 01:23:56.420
Uh, there was a little bit more detail I wanted to go into.
01:23:56.500 --> 01:23:58.020
We have a proven concept for the gym.
01:23:58.100 --> 01:24:01.779
I was gonna go over some financials, a little bit more projections of the health and wellness side.
01:24:02.020 --> 01:24:08.659
I got a lot of data on that growth and where that's going, but I figured we can save that for a phone call just because it's uh just for time uh for today.
01:24:08.900 --> 01:24:15.060
But you for to for all of our guests, um, you know, thank you guys all for taking the time, carving out Rob, Steve, and Dennis as always.
01:24:15.220 --> 01:24:15.779
Much love.
01:24:15.940 --> 01:24:19.699
And uh for everyone who has stayed on and uh got a chance to kind of dig into this.
01:24:19.779 --> 01:24:20.900
I really appreciate your time.
01:24:21.060 --> 01:24:25.460
And uh uh if you guys are considering to invest, we'd love to have you and welcome you to the family.
01:24:25.619 --> 01:24:31.779
Uh, we do have uh we use Juniper Square, which is an online platform for compliance, but uh reporting and tracking.
01:24:31.940 --> 01:24:36.180
And then we do put a camera up on every one of our sites to allow our investors to watch live in real time.
01:24:36.340 --> 01:24:44.180
So if we provide you an update, um, you'll have the ability to uh log on and watch the project, making sure that what we said we're doing is actually happening.
01:24:44.340 --> 01:24:46.579
And then we also do investor appreciation events.
01:24:46.659 --> 01:24:50.180
So we're actually uh gonna be announcing where we're gonna do that at the end of this year.
01:24:50.260 --> 01:24:56.260
Um, we're actually thinking about doing it here at the headquarters building just because I think a lot of people would love to see the pedigree of this project.
01:24:56.340 --> 01:24:59.619
It's one of the only Class A plus buildings ever built in Lake Havasu.
01:24:59.860 --> 01:25:01.699
Uh the mayor is gonna be here today.
01:25:01.779 --> 01:25:04.900
I have uh Joe's on the road as we speak, and he's logged on listening.
01:25:05.060 --> 01:25:08.420
But we are doing a uh kind of the we're kind of doing a Joe Rogan play.
01:25:08.579 --> 01:25:25.060
We're bringing on Trump, right, on the podcast, and we're gonna let him kind of you know share his story, and then we're trying to get, in essence, the other Kamala Harris on the on the podcast and have a non-biased approach, but just kind of ask questions of where the city's going, what's going on with water and going up, and we'll kind of produce all of that to our clients as well.
01:25:25.220 --> 01:25:37.060
So that way you guys can see what we're seeing um from an from a uh a political state, what's really happening out here, you know, uh balancing the budget, um, you know, where the where the where the world's going.
01:25:37.140 --> 01:25:47.060
So, as you guys can imagine, it's nice for us because a lot of my decision making and and building uh these projects to awareness for investors is because these are things that I already know.
01:25:47.220 --> 01:25:50.020
But I it's I can't sit on the phone and share all of this stuff with you.
01:25:50.180 --> 01:25:54.180
I think it's important that we do the recordings and hear it from the horse's mouth and go from there.
01:25:54.340 --> 01:25:57.619
So hope you guys see value in our platform and who we are as an operator.
01:25:57.779 --> 01:26:00.340
I do appreciate all of you current investors that are on here as well.
01:26:00.420 --> 01:26:01.460
I appreciate your trust.
01:26:01.539 --> 01:26:06.739
I love talking to you guys that uh once a year when we jump on a call and talk about where the world's going and when we think it's all gonna end.
01:26:06.980 --> 01:26:08.980
But uh I appreciate you guys once again.
01:26:09.060 --> 01:26:10.980
Have a good one and uh have a great fourth.
01:26:11.060 --> 01:26:14.180
Hope everyone's safe and uh reach out to me if anybody needs anything.
01:26:14.340 --> 01:26:14.980
Talk to you soon.