INVESTMENT OPPORTUNITY

Beachfront property fronting the Philippine Sea and Route 2, Agat, five minutes from the front gate of the US Naval Station on Guam. Numerous development opportunities including residential condominium conversion, military barracks, retirement home, off-base military housing facility.

Property: Inn on The Bay Hotel

Ownership Interest: Fee Simple

Legal Description: Lot 235-3NEW, Agat, Guam

Location: Beachfront property fronting the Philippine Sea and Route 2, Agat, five minutes from the front gate of the US Naval Station on Guam

Property Zoning: Commercial

Age: Built in 1989

Building Size: 36,899 square feet

Land Size: 5,780 square meters or 62,215 square feet

Current Improvements: The property is U-shaped, containing one, two, and three story sections. The property consists of a main hotel building containing 70 hotel rooms broken down into 8 studio units, 54 one-bedroom units, and 8 two-bedroom units. All units come with kitchenettes. The property also has approximately 6,360 square feet of commercial space, broken down into three bays containing 3,914, 1,979, and 467 square feet, and approximately 1,882 square feet of lobby, office, and laundry space.

Parking/Amenities: Approximately 70 uncovered stalls; Playground area for children, pool, barbeque area, laundry room, and elevator.

Investment Opportunities: Residential Condominiums; Retirement Housing and Care Facility; Military Barracks (off-base housing); Timeshare

Asking Price: US$5 Million

MILITARY IMPACT ON GUAM AND PROJECT
There is no doubt that the recent increase in residential real estate activity is a direct result of the anticipated increase in military presence on Guam. This presence is expected to culminate in 2014 with the relocation of 8,000 Marines and an estimated 10,000 family members from Okinawa to Guam. Guam anticipates between $400 million and $15 billion in military construction over the next 6 to 10 years. The Air Force’s plans include building hangers for three Global Hawk surveillance aircraft and the expansion of its facilities to accommodate periodic rotations of fighter jets. The Navy’s plans include the dredging of Apra Harbor to accommodate large amphibious ships.
Current information suggests that there is a demand for approximately 10,000 housing units to support the proposed relocation of the above-mentioned US military personnel and their families expected to begin by the year 2009 and be completed by the year 2014.  Of the 10,000 housing units, 3,500 are included as part of the US Military Guam Integrated Master Plan to be built on Federal property, with the remaining 6,500 to be supplied by private developers. While many developers are looking at the development of high end properties ($350,000.00 and above), Dolphin Point is directly targeted at military personnel with respect to both product and pricing.

Due to the continued build-up of military personnel on Guam and the extension of the typical tour of duty from two years to three years, there is an increasing amount of military personnel looking to buy instead of rent. US military personnel receive a housing/rental allowance as well as a utility allowance for off base living. Currently the minimum housing allowance is $1,910.00/month for a single individual (Enlisted E3), while the minimum utility allowance is $602.00/month. The housing allowance increases to a maximum of $2,600.00/month for a married individual (Officer 06). Military personnel may convert their housing allowance into a mortgage payment in the event they decide to purchase a home on Guam during their tour of duty. Coupled with the availability of 100% financing through the VA, military personnel easily qualify for projects priced under $250,000.00.

Based on the location (5 minutes from the front gate of the US Naval Station) and the proposed pricing structure of Dolphin Point, military personnel will be able to qualify to purchase a condominium. In addition, based on the proposed monthly housing expense based on a 75% LTV, a 7% interest rate, a 30 year amortization, plus taxes and insurance, an investor can rent a condominium unit to military personnel and generate a positive cash flow. The project makes economic sense for both military buyers and renters.

Investor Presentation

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Picture Gallery

Chris Murphy, CRS,CIPS,CLHMS,CRB,ABR The Real Estate Professionals Cell: +1 (671) 488-7371 Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it Office phone: +1 (671) 647-7371 Office Fax: +1 (671) 649-7377   865 S. Marine Corps Drive, Tamuning, Guam, 96910