Here's the complete proposal, including the Executive Summary, Investment Highlights, Initial Investment Breakdown, Revenue Streams and Annual Income, Operating Expenses, Profitability Analysis, Return on Investment (ROI), Break-Even Analysis, Conclusion, and Site
Overview:
Executive Summary
We are pleased to present an exciting investment opportunity in a luxurious $1.7 million mansion compound designed specifically for the adult lifestyle community. This exclusive property promises to be a premier destination for individuals seeking a sophisticated and private environment to enjoy a unique lifestyle experience. Our vision is to create a haven that combines luxury, privacy, and a vibrant community, making it an attractive investment for discerning investors.
Investment Highlights
- Property Overview: The mansion compound spans 18.77 acres and features a total of 4 structures, including multiple entertainment areas, a gourmet kitchen, a private pool, and extensive landscaped gardens.
- Target Market: The adult lifestyle community, which values privacy, luxury, and exclusive experiences, represents a growing market segment with significant spending power.
- Revenue Potential: The property can generate substantial income through various revenue streams, including membership fees, event hosting, short-term rentals, and exclusive retreats.
- Location: Situated in a prime location in South Elgin, IL, with easy access to major attractions, the property offers both seclusion and convenience.
Luxury Accommodations
- Spacious master suites with en-suite bathrooms
- Elegant guest rooms with premium amenities
- Expansive living and dining areas designed for entertaining
Exclusive Amenities
- State-of-the-art fitness center
- Private spa and wellness facilities
- Heated outdoor pool and jacuzzi
- Gourmet kitchen with professional-grade appliances
Entertainment Spaces
- Home theater with surround sound
- Game room with pool table and bar
- Outdoor dining and BBQ area
- Expansive gardens and outdoor lounges
Privacy and Security
- Gated entrance with 24/7 security
- Discreet service access and staff quarters
- Advanced security system with surveillance
Investment Plan
Acquisition and Renovation
- Purchase Price; $1.7 million
- Renovation Budget: $605,000 to enhance luxury and privacy features
Initial Investment Breakdown
- Property Acquisition: $1,700,000
-Renovation and Upgrades:
- Luxury Interior Renovation: $200,000
- Landscaping and Outdoor Enhancements: $100,000
- Security System Installation: $50,000
- Furniture and Fixtures: $150,000
- Marketing and Launch Expenses: $50,000
- Contingency Fund (10% of total): $55,000
- Total Renovation and Upgrades: $605,000
Total Initial Investment
- Total: $2,305,000
Revenue Streams and Annual Income
- **Membership Fees**:
- Number of Members: 200
- Annual Membership Fee: $5,000
- Total Annual Revenue from Membership Fees: $1,000,000
- **Event Hosting**:
- Number of Events per Year: 50
- Average Revenue per Event: $10,000
- Total Annual Revenue from Event Hosting: $500,000
- **Short-Term Rentals**:
- Number of Rental Days per Year: 100
- Average Daily Rental Rate: $2,000
- Total Annual Revenue from Short-Term Rentals: $200,000
- **Exclusive Retreats**:
- Number of Retreats per Year: 12
- Average Revenue per Retreat: $15,000
- Total Annual Revenue from Exclusive Retreats: $180,000
- **Additional Services and Sales**:
- Spa and Wellness Services: $50,000
- Merchandise and Product Sales: $20,000
- Total Annual Revenue from Additional Services and Sales: $70,000
Total Projected Annual Revenue
- Membership Fees: $1,000,000
- Event Hosting: $500,000
- Short-Term Rentals: $200,000
- Exclusive Retreats: $180,000
- Additional Services and Sales: $70,000
- **Total**: $1,950,000
Operating Expenses
- Staff Salaries and Wages:
- Management and Administration: $200,000
- Maintenance and Housekeeping: $100,000
- Event Staff and Hospitality: $100,000
- Security Personnel: $80,000
- Total Staff Salaries and Wages: $480,000
- Utilities and Maintenance:
- Utilities (Electricity, Water, Gas): $50,000
- Property Maintenance and Repairs: $50,000
- Landscaping: $20,000
- Total Utilities and Maintenance: $120,000
- **Marketing and Advertising**:
- Digital Marketing and SEO: $50,000
- Social Media Campaigns: $30,000
- Partnerships and Sponsorships: $20,000
- Total Marketing and Advertising: $100,000
Supplies and Operating Costs:
- Cleaning Supplies and Equipment: $20,000
- Office Supplies: $10,000
- Event Supplies and Decorations: $20,000
- Total Supplies and Operating Costs: $50,000
- Insurance and Legal Fees:
- Property and Liability Insurance: $30,000
- Legal Fees and Compliance: $20,000
- Total Insurance and Legal Fees: $50,000
- Miscellaneous Expenses:
- Contingency Fund: $30,000
- Miscellaneous Operational Costs: $20,000
- Total Miscellaneous Expenses: $50,000
Total Annual Operating Expenses:
- Staff Salaries and Wages: $480,000
- Utilities and Maintenance: $120,000
- Marketing and Advertising: $100,000
- Supplies and Operating Costs: $50,000
- Insurance and Legal Fees: $50,000
- Miscellaneous Expenses: $50,000
- Total: $850,000
Profitability Analysis
- Total Projected Annual Revenue: $1,950,000
- Total Annual Operating Expenses: $850,000
- Net Annual Profit: $1,950,000 - $850,000 = **$1,100,000**
Return on Investment (ROI)
- Initial Investment: $2,305,000
- Net Annual Profit: $1,100,000
- ROI Calculation: \((Net Annual Profit / Initial Investment) * 100\)
- ROI: \((1,100,000 / 2,305,000) * 100 = 47.72%\)
Break-Even Analysis
- Initial Investment: $2,305,000
- Net Annual Profit: $1,100,000
- Break-Even Period: \(Initial Investment / Net Annual Profit\)
- Break-Even Period: \(2,305,000 / 1,100,000 \approx 2.1\) years
Conclusion
The $1.7 million mansion compound for the adult lifestyle community presents a compelling investment opportunity with high revenue potential and a substantial return on investment. With projected annual revenues of $1,950,000 and net annual profits of $1,100,000, investors can expect an ROI of 47.72% and a break-even period of just over two years. This investment promises to be a lucrative addition to any portfolio, capitalizing on the growing demand for exclusive, luxury experiences within the adult lifestyle community.
Site Overview
Location- South Elgin, IL 60177
Total Area- 18.77 acres
Zoning Type- Residential
Existing Structures
- Main Ranch Home- 4,390 sq ft
- Two-Story Home- 5,897 sq ft (designated exclusively for swinger events and demonstrations)
- Ranch Guest House- 1,080 sq ft
- Pool House-728 sq ft
- Detached Garage- 2,000 sq ft
- Barn- 1,400 sq ft (to be updated for members' overnight accommodation)
Parking Plan
Location-Front of the property
Initial Capacity- 9 cars, expandable to 200 cars
Security- Security personnel stationed at the entrance for access control
Access-Members only, with valid credentials required for entry
Operations and Amenities
Hours of Operation- 7 PM to 3 AM, Thursday to Sunday
On-site Manager- A house manager will reside on the property for oversight
Security- 24/7 security presence, focusing on entry points during operational hours
Food Services
- Initially outsourcing to local Black-owned food vendors
- Plans to develop an internal food court within two years
Liquor Policy-BYOB (Bring Your Own Bottle); no on-site liquor sales
Non-Alcoholic Beverages- Juice and soda will be provided at no charge
Security Measures
- Personnel- Security stationed at the front gate
- Access Control- Members only, with security verification
- Surveillance-Security cameras installed at key points around the property
Site Layout
- Main Ranch Home-Residential use and management headquarters
- Two-Story Home- Exclusively used for swinger events and demonstrations
