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Proposals / Motorsports / Santa Barbara Race Club / The Plan / Capital Structure
Strategy

Capital Structure

How Phase I is funded — real-estate proceeds and membership initiation carry the build, bridged by a commercial construction loan sized to 60% of completed real-estate value, with land seller-financed and a reserve held throughout.

60% LTV
Construction loan on completed RE value
25/25/50
Real-estate deposit stages
$77.2M
Debt capacity (Expected)
Seller-financed
Land — outside the funding requirement
The capital stackCapital-stack calculatorConstruction-period flow

The capital stack, in priority of use

LayerRoleReference
Real-estate proceedsPrimary equity/collateral; staged deposits 25% / 25% / 50%
Commercial construction loan60% LTV of completed real-estate market value; bridge debt repaid at delivery
Membership initiationOne-time initiation from the Phase I member cohort
Owner equityThe residual plus the construction-period timing bridge
LandSecured under executed purchase contract; seller-financed / contributed equity
Land is settled rather than an open item — it adds to the collateral base and removes a material pre-development risk. Recurring dues fund operations and are not counted as construction funding.

Model the stack

Capital-stack calculator

Sources and uses for Phase I (excluding seller-financed land). Select a scenario or flex the inputs; permanent equity is the residual after real-estate proceeds, membership initiation, and the construction facility.

$159.8M
$153.7M
$128.7M
$77.2MDebt capacity (60% LTV)
$6.1MPermanent equity required
FinanceableAssessment

A $10M liquidity reserve is held through construction; the construction facility is repaid from real-estate deliveries. Land is seller-financed and additive to the collateral base.

Construction-period cash flow (Expected case)

Real-estate deposits and membership initiation provide cash in; construction and the real-estate build provide cash out; the 60% LTV facility bridges the construction trough and is repaid as final real-estate payments arrive at delivery.

Permanent equity

~$6.1M end-state

Peak equity

~$15.8M — higher than permanent because 50% of each sale is received at delivery

Reserve

$10M held at or above in every quarter

Loan repayment

Construction loan fully repaid from real-estate deliveries at completion

Related analysis

Financial Model OverviewConstruction Budget
PreviousFinancial Model OverviewNextConstruction Budget
Confidential. Prepared by Ignition Advisory Group for SBRN Management LLC. Access-controlled; not for public distribution. Supporting documentation is available through the References & Sources section.
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