Opportunities Come (and Leave) Quickly

It's been quite the interesting few weeks. First the new projects:

New Concept Truck Wash and Car Wash Development: In a nearby soon-to-be boom town, several developers are quitely reforming the town and it's commercial hub to the intersection of two nearby highways. Lots at the corner of these two highways are reasonably priced (less than $7 per square foot) and development is soon to be underway with hotel chains and gas stations gobbling up adjacent property. The issue with this location however, is the holding time. If construction started late this year, ending in Spring 2007 - the area would still require a minimum of 1-2 years to develop to a point where it could sustain such a development. Delaying construction by one year may be the solution, but alot of this depends on major area projects being given governmental approval.

Rural Multi-Family Development: We now have a reasonable design for rural multi-family developments, incorporating both underground parking, elevators, in-suite fireplaces, and an average room size of 1200 square feet for a 2 bedroom 2 bathroom suite. One potential sitemay become available in the near future for a reasonable amount - however the waiting list on such a property is quite lengthy. Other methods for finding land must be investigated, however there are several townships where this style of development is in serious need.

Based on the funding requirements along with the Alberta New Home Warranty committments, a sale price of $180,000 plus would be required for such suites - which is easily attained in todays marketplace for 1200 square foot units.

West Edmonton New Concept Truck Wash: Of the new developments, this one has the most likelyhood of achievement. A local Car and Truck parts manufacturer owns some property immediately adjacent to a Truck Stop near West Edmonton. After approaching this parts manufacturer to purchase an acre of property, they responded that should we provide a proposal to build a facility for them with terms being mutually acceptable - this development would be approved.

Currently, our builder and architects are diligently pursuing this development and within a few short weeks we should have a concrete proposal for this parts manufacturer. Equity for this project may still be an issue however, and options in terms of equipment leasing companies for the additional equity required are being currently researched. Worst case scenario, a partner or two are taken on for this development - resulting in a shared ownership scenario of the truck wash only, not the concept.

And now, the existing projects:

Edson Car Wash: Construction continues. Interior partition wall between Automatic and Self-serve area is constructed and heat is currently being forced into the building to thaw the foundation. Sump placement and underslab piping is expected within a few weeks time. Updated pictures are available at http://edsoncarwash.blogspot.com .

Fort Car Wash: The streak of good weather has lessened some, but still continues. During this break we have begun construction on the interior wall addition and updated photos should be available shortly at http://fortcarwash.blogspot.com . It appears that this renovation will be concluded by Friday March 10 2006. The remaining portions of the interior renovation (Steel painting, door replacement, interior fan assembly, etc) will be done during our typical slow period in June. Refinancing is still underway.

Fort Car Wash Phase 2: Addition of two Commercial bays (25' Wide x 110' Long), one with a catwalk and self-serve equipment and the other with a Large Vehicle automatic seems to be well favored by the local industrial population. Research is being conducted via letters from individual industrial business owners into the likelihood of thier use of these bays. Construction is expected in late 2006, concluding in early 2007.

Urban Market: Research continues. A graphic designer has been enlisted to develop a brand logo. Business plan is currently being assembled and Marketing is expected to start in May 2006. Operation is expected in October 2006.

Tech Head: Growth in terms of market knowledge and viral advertising is exceptional. Very impressive work from the team involved. http://techheadcanada.blogspot.com

On a personal note, I am now constructing a home in one of West Edmonton's premier new communities for $170 per square foot (approximately), which is considered normal for this market and demographic. This home is expected to appreciate by slightly more than 11% during it's construction phase which helps to relate the extreme nature of the Alberta real estate marketplace. So here's to the future and all it holds.