Tonopalo is a 5 star private club situated lakefront on Lake Tahoe’s north shore in California, 9 miles east of Tahoe City and approximately 3 miles from the California/Nevada border. This unique private ownership club can be likened to select ownership in an equity golf country club. Michael Graham purchased the premium north shore lakefront site initially. For 50 years, two hotels occupied the property. The 8 acre property was purchased for $12 million dollars. The property consisted of 3 waterfront acres and 5 landside acres.
Within one year of application, Mr. Graham was granted building entitlements by the Tahoe Regional Planning Agency (TRPA) and Placer County to build 19 units. Arguably, these entitlement agencies are the most challenging with the toughest review process in the United States.
Mr. Graham took advantage of a bankrupt metropolitan district in Castle Pines, CO. Graham saw that bond workout would be solved thereby creating a forward planning and purchasing opportunity. Mr. Graham located and purchased 280 acres from several large non-real estate public companies that needed to sell this property. The investment was $5 million and the return of capital was realized within 15 months generating approximately $6.7 million gross profit. Additionally, there is $10 million worth of high end residential lots which are currently being sold.
Raising capital to purchase property in a bankrupt municipal district.
Purchase the land and bring to the market just as the work-out plan was approved.
This property consisted of 220 finished building lots when purchased and closed within 30 days for $8 million. The entire infrastructure was developed and all parcels were sold to various national builders.
Mr. Graham realized the potential of a developing market with the emergence of the construction of a $4 billion new airport in the Denver area. Mr. Graham purchased a 160-acre parcel and developed 40 acres for off airport parking. Graham Properties also created an off-airport parking company which was run and operated by Graham Properties and subsequently sold netting the company $3 million 18 months later. The off-airport parking lot and the Park-N-Save were successful and served as the first of a 160-acre development.
Realizing the turning economy in the Colorado technology industry, specifically in Fort Collins, Graham Properties purchased 60 acres for $15K per acre. Through hard work and diligence, this property was entitled and zoned within 6 months. The lots were then delivered to the local market place when no request for inventory was made in 5 years.
Esperanza Auberge Resort is a stunning resort hotel consisting of 60 rooms and 80 fractional units. An amazing detail of this development is the fact that all rooms are on the beach with no obstructions to the water and Sea of Cortez and Lands’ End.
Graham Properties acquired plotted improved build lots in a south Denver suburb when the Denver residential market was coming back from a severe downturn of the late 1980’s and early 1990’s. Graham bought 60 lots from Writer Corporation for a purchase price of $600K and sold each lot at an average price of $30K.
