Kingston Village‐ Eskaton Certified Home Development Niche Opportunity Talking Points

1. Generally, the real estate market in the Valley and ancillary Valley location like Mt. Shasta are dead and
continuing to decline. The key to real estate development opportunity is to isolate those niches markets that
have shown success in these difficult times.

2. With the above in mind, there are, however, exceptions to this situation. One of these is the Eskaton
Certified Home concept built by Lakemont in Roseville that is selling and profitable.

3. An Eskaton Certified Home is specifically designed to cater to elderly home owners, certified by Eskaton to
meet elderly target market standards and designed to attract financially capable buyers. Characteristics of an
Eskaton Certified Home include:

• wider hallways and oversize doorways to facilitate access and barrier free living
• Baths and kitchens specifically designed to accommodate age related issues
• Higher quality with slab granite kitchens, tile baths, crown moldings, etc., to appeal to and attract
  financially capable buyers
• 2 car garages attached and accessible on the same level as the living area
• The web address for more information is: http://www.eskaton.org/facilities_programs/eskatoninnovations/
  esk_demo_home%20_welcome.htm

4. The Lakemont project of Eskaton Certified Homes is drawing buyers from throughout the Valley with the
following profile:

a. Baby boomers for sure

b. Fiscally conservative and responsible buyers with assets including:

        i. High equity or paid off homes
        ii. Annuities
        iii. Pensions
        iv. Retirement accounts
        v. Investments

d. Buyers wanting the privilege of a single family residence in a community vs. apartment style living
        Kingston Village‐ Eskaton Certified Home Development Niche Opportunity Talking Points

e. Buyers wanting to be near medical facilities

5. Research indicates that this may be the only new residential subdivision in the Valley that is successful, as
indicated by the following:

a. During 2008, this Lakemont development had a sales rate of 2 per month which kept up with the build
rate

b. Equally as important, their price point, in the mid $300k range, was stable

c. This price point exceeded $200/sf

d. $200/sf + makes KV financially feasible

6. Given this information, this is the ideal build‐out for Kingston Village project for the following reasons:

a. The approved KV design is essentially barrier free and consists of an open floor plan on the lower level
with only three doorways, one hallway and the master bath requiring design modification

b. There is direct entry from the garage without a threshold as KV is slab construction with the garage
and ground level floor on the same level

c. The master bedroom is large, 14” X 14”on the ground level and ensuite

d. Although there are two upstairs bedrooms and a bath, these would be ideal for visiting children and
grandchildren and/or for live‐in caregivers.

e. The Shasta market indicates substantial potential interest:

i. Brokers suggest that 70% of the market in Shasta is from the Valley. Why?

1) Shasta is an ideal escape from the Valley due to altitude and desirable small town
atmosphere

2) 40%‐50% of these buyers are empty nesters

3) 2/3 of these people are 60+

ii. The location is next to existing Eskaton facilities

iii. Mercy Hospital is also right there, and proximity to hospital services is a driving criteria for this
market segment

f. Eskaton has the easement through the hospital property for emergency circular access that was
required by the City to build the last Eskaton module, and which will be required for KV to get building
permits

g. The City would see this as a highly desirable project given the economic wherewithal those
prospective buyers bring to the community, enhanced tax revenue, fees, services needed, etc. Keith has
confirmed this.

h. Eskaton Certified Home designation is a marketing plus with a broad reach

7. Accordingly, Kinston Village is seeking a joint venture relationship with a builder/developer to engage in this
opportunity. The numbers are below:

KV Eskaton Certified Home Build‐Out Model (in Millions)

Assume:   $200/sf retail (net of 6% sales costs) X 1500/sf ea unit X 18 units + 27,000sf X $200/sf = $5.4MM

$5.4MM Build‐out value

Less:

$900K ÷ $4.5MM = 20% ROI

 

 

For more information contact David Kirchhoff
Manager, Kingston Village Partners, LLC
1620 Tiburon Blvd., Tiburon, CA 94920
OFFICE (415) 435-6991 CELL (415) 531-2656
E-mail david@finehomesmarin.com