Santa Barbara Race ClubDue-Diligence Portal · Advisory by IAG

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Analysis

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Plan

Business Plan Financial Model Overview Capital Structure Construction Budget Membership Strategy Residential Development

Execution

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Action

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Proposals / Motorsports / Santa Barbara Race Club / The Plan / Residential Development
Strategy

Residential Development

The real-estate program that funds the build and creates the permanent community — garage condominiums and trackside lots in Phase I, with a villa-estate program in the expanded plan.

~$1.5M
Garage condominium (sale)
~$895K
Quarter-acre lot (sale)
~$128.7M
Completed Phase I RE value (Expected)
~$69.7M
RE net margin (Expected)
The programAbsorption modelExpanded planAbsorption

The Phase I program

The Phase I release combines two products — garage condominiums and quarter-acre trackside lots. Combining both is what makes the 60% LTV financing work: the lot product adds completed value and collateral at low build cost.

Phase I residential products.
ProductSale priceBuild costReference
Garage condominiums~$1.5M~$1.0M
Quarter-acre trackside lots~$895Kmodest infrastructure
Completed Phase I value~$128.7Mnet margin ~$69.7M
Residential value is sale value, not construction cost, and is a separate program from the construction budget. The residential build is paced by membership absorption — homes are not underwritten faster than members arrive.

Model absorption

Real-estate absorption model

Cumulative completed real-estate value as the Phase I release (50 garage condominiums at ~$1.5M and 60 trackside lots at ~$895K) is absorbed at a chosen pace.

10
11 yrsYears to sell out (110 units)
$128.7MCompleted value at sell-out
$69.7MNet margin at sell-out

Residential absorption is paced to membership. Value accrues as homes are constructed, not at initial lot release.

Expanded residential plan (high-side option)

An expanded program is held in as the high-side residential plan, larger than the certified figures and to be adopted only if it becomes the controlling plan.

Expanded residential program (high-side option).
ProductUnitsAvg priceProgram value
Garage condominiums (Phase I)150~$2.0M~$300M
Private villa estates (Phase II)50~$4.0M~$200M
Full-build program200 units—~$500M
This expanded program (~$500M) is larger than the certified residential figures (~$128.7M completed value) and is flagged for reconciliation before adoption as the controlling plan.

Absorption

Residential absorption is benchmarked at ~8–14 units per year at the expected pace and is paced to membership. The permanent on-site community it creates is the year-round economic base analyzed on the Visitor Spending and Economic Impact pages.

Related analysis

Comparable FacilitiesMarket Research
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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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