The document discusses plans for managing The Residence at Biltmore property in Asheville, NC. It finds the condos currently sell at a 24% discount to comparable downtown units due to inadequate hotel amenities and services. A strategic plan with the board will address positioning, goals and actions to increase real estate values and rental incomes. Southern Resorts proposes a resort rental model, association management, and estimates $4-5M in annual gross rental revenues depending on established goals and economic factors.

1. The Residence at Biltmore
• Introduction to Sundog
• Introduction to Southern Resorts, LLC
• Southern Resorts Philosophy -Holistic and Facilitative
Approach to Property Management
• The Residence at Biltmore- A Resort Condominium
• The Residence at Biltmore-Hotel Operating model
• The 100 day plan

2. A Resort Real Estate Company
Based in Cullowhee NC

3. About Sundog Places
Founded by Joel Sowers in 2007, located in Cullowhee, North Carolina
Past-Executive Vice President- 23 Year Career-Fortune 200 Company – Real Estate
President -Resort Real Estate Operation in the United States.
Present- Sundog Places-Specialize in Western North Carolina Real Estate.
We are a boutique specialized shop and very selective of who we choose to work
for and represent.
Biltmore Farms-The Ramble
Sundrops on Caney Fork, a Sundog Development
Bear Lake Reserve (select group of 35 to 40 owners)
Serrus Capital Partners
The Board of Directors of The Residences at Biltmore for at least the next 20
minutes
We are; NC Real Estate Brokers, NC General Contractors- Unlimited license,
Lifetime Students of Real Estate and Real Estate Junkies

4. Southern Resorts Partnership
• Sundog and Serrus are 50/50 partners in
Southern Resorts, LLC.
• Steve Mudge and Joel Sowers worked together at
Centex Destination Properties and have had a
long standing professional relationship.
• Centex Destination Properties, planned,
designed, built and operated many resort and
lifestyle properties that included condominiums,
condo-hotels and resort properties and clubs.

5. Southern Resorts
Condominiums and Condo Hotels
We know Condo’s
We have designed, built, marketed, sold, owned and operated thousands of
Condominiums in
North Carolina, Florida, California, Las Vegas, New Hampshire, Texas, Hawaii
We have designed, built, marketed, sold, owned and operated Hotels and CondoHotels; some more notable are:
Palm Coast Florida (Ocean Hammock- Hotel)
Palm Springs (La Quinta)
Oahu Hawaii- (Ko’ Olina)
Horseshoe Bay Resort, Texas
We have worked on resort properties w/ Disney, Ritz Carlton, Universal Studios,
Intrawest, American Ski, Intercontinental Hotels, The Resort Group (HI).

6. Southern Resorts PhilosophyWe bring a Holistic Approach to Managing Real Estate
Balancing Rental Incomes and……
Real Estate Values in the community

7. Why a balanced approach - rental incomes
vs. real estate values?

8. Real Estate Values vs. Rental Income
Owners
Real Estate Value
• $1- Owners keep 100%
Rental Income
• $1- Owners keep 50-65%
• Property Manager -0%
• Property Manager- 35-50%
• LTCG Tax- 15%
• Income tax rate-max 39+%
As Real Estate Brokers- we have an agency relationship with owners and are
programmed to work for the best interest of the owner.

9. First Question
We were curious how The Residence at Biltmore
condominiums compared in value today to similar sized
condominiums in downtown Asheville?
So we looked at downtown condominium closings in
2013 (thru September) that were between 700-1400
square feet

10. Market Values today
The Residence of Biltmore
$350.00
$300.00
Downtown
Condominiums
price per sq ft
$250.00
$200.00
Biltmore
Residences price
per sq ft
$150.00
$100.00
$50.00
$0.00
1

11. Residence at Biltmore Direct Market Comps
Address
12 South Lexington Ave; unit 301
52 Biltmore
12 South Lexington Ave; unit 206
12 South Lexington Ave; unit 409
100 Coxe Ave, 409
12 South Lexington Ave; unit 409
155 S. Lexington 202B
155 S. Lexington 307B
59-c College St
2013 Asheville Condo Value
Average size
205 Bowling Park Rd
115 Bowling Park Rd
2013 closed sale average
List Price Sales Price
$419,000
$353,000
$530,000
$500,000
$499,000
$465,000
$200,000
$209,000
$395,000
$3,570,00
0
$422,000
$340,000
$500,000
$460,000
$475,000
$441,000
$193,000
$201,000
$385,000
$3,417,00
0
$268,900 $269,900
$249,000 $249,000
$517,900 $518,900
Sq. Ft. Price
sell Date
per ft.
1310
$322 29-Aug
1344
$253 15-Apr
1400
$357 10-May
1250
$368
3-Jun
1306
$364 20-Sep
1133
$389 30-Aug
730
$264
7-Aug
817
$246 30-Aug
973
$396 10-Sep
DOM
227
10
25
32
93
85
28
64
62
10,263 $332.94
1140
1026
$263
1026
$243
$2,052 $252.88
9-Sep
9-Sep
$0
$0

12. The Residence at Biltmore approximate
Valuation as a Condominium on 9/30/13
Downtown Asheville Valuations
Unit Configuration
Number of Units
Todays Values using valuations sq. ft. $, 2013 closings)
The Residence at Biltmore $252 per square foot
1 Br
2 Br
3 Br
506
763
1023
1386
11
Square footage from condo plan
Studio
42
46
15
$127,512
$192,276
$257,796
$349,272
Total
104918
114
$26,575,920
Valuations using $333 dollars per square foot
Valuations using Downtown closings between
$200,000 and $750,000 or $333 per foot
Difference in Market Value today
$168,498
$254,079
$340,659
$461,538
$35.118,180
$8,542,260

13. Why do The Residences sell at a 24% market
discount today?
We looked at the following attributes that we consider
primary drivers of value of residential real estate and
could not come up with any deficiencies that we felt
justified this discount…..

14. Real Estate Value-The Residences at Biltmore
We believe the community has all the attributes necessary to be
among the premier condominium properties in Asheville
A. Located in a well known upscale location
B. Near boutique shops and restaurants
C. Close to major tourist destinations
D. Quality healthcare nearby
E. Outdoor pool and onsite fitness center
F. Resident and guest parking is easily accessible
G. Floor plans are comfortable
H. Building design is attractive

15. The Hotel Market
How do the service attributes at The Residence at Biltmore
compare to other Biltmore Village Hotel attributes?

16. Hotel Services
• Hotel Services available
today at Biltmore
Residences:
– Housekeeping
– Concierge service
• Hotel Services typically found
in luxury Residence marketed
with a Hotel Brand:
–
–
–
–
–
–
–
–
Valet Parking
Bell Service - Concierge
Room Service
Restaurant on site
Lobby Bar on site
Banquet or Group facility
Full Service Spa
Housekeeping

17. Hotel Services
• Hotel Services available
today at Biltmore
Residences:
– Housekeeping
– Concierge service
• Hotel Services typically
found in limited service
Hotel Brands:
–
–
–
–
–
–
Lobby
Business Center
Breakfast in the morning
Evening cocktail hour
Concierge Services
Housekeeping

18. Hotel – Conclusions
The property has some strategic opportunities to
address in order to compete head to head with
the area hotels.
There are multiple options in how to position the
property going forward.

19. The Southern Resorts Process:
Have the Board of Directors assist our team develop a Strategic
Marketing Plan for The Residences at Biltmore.
Date- TBD ( First 30 days of being hired)
Participants- The Board of Directors of the Residence at Biltmore
Southern Resorts Officers (non property employee)
Facilitator- Southern Resorts Employee
Agenda
Real Estate Values- Key Drivers - Positioning choices, Goals, Action plan
Rental Incomes- Determine Marketing Positioning, Goals, Action plan
Trip Advisor- Understand Ranking, Current Issues, Weighting, Action Plan

20. Southern Resorts Property-Highlights of Rental Terms
• We are NC Brokers and have the Legal standing required by the state of NC
to legally manage this property.
• We are currently in the vacation-resort rental management business in
Jackson County North Carolina ( 45 minutes west of Asheville)
• Revenue Split to Owners – 65% of Gross Rental Income
• Property Manager to retain all processing fees and convenience fees
collected from tenants
• Exclusive property managements agreements (24 months) that
automatically renew for an additional 12 months if not cancelled 90 day
prior to anniversary date
• All incomes disbursed to owners monthly, within 20 days of month end.
• Use of back of house and closets once control is seized by board

21. Residence at Biltmore – Resort Rental Model
Project Staffing
GM
Owners
Rep
Reservation
Call Center
HK
Mgr.
HK
Staff
Front
Desk
Mgr..
Front Desk
staff;
Concierge.
Maintenance
Dept.

22. Condo Association Management
• 24 Month Term- 90 day notice to terminate
agreement or automatic one year extension
• $15/unit/month plus $1,000 per month for
accounting, monthly accounting
• Manage all board and association meetings
• Proposed budget by 10/1 of each year

23. The Rental Income?
• We believe income levels will be determined by the goals
established in the Strategic Marketing, which are unknown as of
this projection.
• Gross revenues across the property, using todays data, could be
in the range of $4,000,000 to $5,000,000 dollars annually. This
can vary greatly depending on the overall economy, number of
units in the program ,the use patterns of current and future
owners and owners level of commitment to position property to
compete with all current and future area hotels .
• 2014 Income projections will be subject to any collateral
damage caused by any current and or future litigation with the
existing management company.