SITREP: 24-acre Las Vegas commercial land with freeway frontage & off ramp for cost of residential land per acre proposed as film studio campus


Residential land tends to be $250K per acre divided by 4 homes to justify acquisition cost.

Commercial land tends to be $1M+ per acre.  More with freeway frontage and off-ramp access.  Nature of large film studio requires substantial access for interstate trucking.

Taken into comparison with the cost of 2 Israeli billionaire brothers who bought the Frontier Hotel for $32M per acre in 2006 (at the height of commercial real estate market)  Acquisition cost for the Frontier exceeded $1B just for the land.

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100% debt-equity combo funding min. $10M.  Investor will pay for cost of financial instrument acquisition.

Pre-construction mortgage finance terms to $50M of an immediate source is here;

US IPO’s can exceed $1M in filing, underwriting, & IR costs. Frankfurt Borse IPO can cost from 75% less and have immediate access to Luxembourg, Switzerland, & Lichtenstein P/E market.  Completion of filing 2-3 months.

Overseas pre/post IPO P/E source can close in 1 month terms here;  No cap limit. 

P/E bonds if a good rating is secured can be placed in 2-3 months for under 5% of face value from $100M+.  Bonds can also be monetized in 1 month via SBLOC here;

Alternative to US or Euro IPO’s is cheaper.  Hollywood-area source offers $10M equity line with shells, shelf corps, reverse mergers, Pinks, & SCOR offerings.

As a US Vet-owned government vendor, GCC is authorized to deal with government agencies such as the USCIS EB-5 program; which allows access to over 100 offices in US to attract overseas individual investors.

Comparing POF’s with State of Nevada 35% LTV collateralization program  Buying POF letter can satisfy “skin in game” objections from lenders and be secured in a few days from $1M to ?.
Intrinsic infrastructural value of nearby A/V equipment rental warehouse, restaurant/catering, and 2.2.M s.f. IT data center already used by Sony, ebay, & Google.  All within a few blocks.  Due north about 3.5 miles is The Orleans Hotel for all lodging needs for out of town cast & crew.  Cost containment rule #1: “NEVER duplicate what can be delegated”.

Intrinsic value of “Political & Legal allies” to include 1 county commissioner and 1 congressman 2 miles west (H.R. 2940 – Access to Capital Job Creators Act) and nearby lawyer who caters to adult film producers and actors.

Billboard (outdoor media) investors and finance source readily available to place 2 billboards on freeway frontage.  Fact:  drivers do read billboards x (estimated) 30,000 a day.  Instant brand awareness to promote IPO ticker symbol.

Labor capital options include; (a) sustainable jobs P/E, (b) payroll finance, & (c) Nevada OJT wage rebates to 50%.

State of Nevada $50M “Funds of Funds” P/E.  Similar funds divide use of fund between 4 phases; primarily VC and later stage and then early stage and special situations. 

Indie-film distribution alternative called 1-day transactional finance

State Development Agency is a SBA preferred lender that helps buy and build with commercial real estate loans.  Such loans are 90% LTV with a low down requirement of only 10%.  Fixed rate monthly interest rates as of July 2012 are only 4.46%.

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COST: of (a) land, (b) construction bond, (c) IPO filing, (d) 2 billboards, (e) IR support = $12M (est.)

VALUATION: $200M+  (@ completion per studio x 100K s.f @ 5 acres ea.)

Initial cost to valuation = 6% (est.)

(comparison of COST estimate reported by THR on Relativity Media’s proposed (2) film studios in Hawaii is $400M)

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