General Engineering And General Building Contractor And Real Estate Development Company Specializes In Ground-Up Development Of Medical Buildings Using Design/Build Project Delivery. Currently All The Company's Activities Are In The West LA Area.
Owner Dispute Has Led To Commencement Of Voluntary Dissolution And Liquidation Proceedings, But Owners Seek To Sell Company As A Going Concern. Only Cash Offers Will Be Considered.
Company Revenues And Income(Loss) Since Formation In 2005:
Revenue Income(Loss)
2005 0 (1,712)
2006 162,284 (44,405)
2007 3,233,574 (27,062)
2008 3,666,280 236,536
2009(Ytd) 321,324 564
The Company Has Completed One Project To Date, An 18,000sf Medical Building With Subterranean Parking. The Company Designed And Built The Project From The Ground Up With The Building Completed In June Of 2008. The Building Is Currently 100% Occupied With A Single Tenant Under A Nnn Lease. The Tenant Is A Nationally Recognized Health Care Company With Bb- Credit And 9 Years Remaining On The Lease. The Company Retains A 20% Interest In The Building Representing Equity Worth Approximately 1.04M According To A May 2008 Appraisal. This Building Generates Free Cash Flow From Rent For The Company Of Approximately 60,000 Annually. Additionally, The Company Collects Approximately 30,000 Per Year In Management Fees. There Is A Loan Outstanding Of 8M On The Property Due In 2011 Subject To Two 1-Year Extension Options.
The Company Is Currently Managing The Development Of A 50,000sf Medical Building On A 30,000sf Site In A Prime West LA Area Location Adjacent To A Major Hospital. Currently The Land Is Unentitled, But There Is A Certified Eir For The Project With Approvals Pending. The Company Has Successfully Negotiated A Development Agreement With The Adjacent Hospital On Behalf Of The Llc That Owns The Property. However, The Agreement Is Contingent On Successful Entitlement, And The Llc Is Not Bound To Retain The Company As Its Manager. The Subject Land Was Purchased In 2007q4 For 13M And There Is An 8M Land Loan Outstanding And Payable In Dec. 2009. The Company Has A 20% Interest In The Land Subordinated To The Equity Partners.
The Company Has Two Owners/Principals And One Employee And Is Based Out Of One Of The Principals’ Home. One Of The Principals Is The Responsible Managing Officer For The Company’s California A And B Contractor Licenses And Is A Licensed Civil Engineer. The Other Principal Is A Licensed Architect. The Principal Holding The Contractor’s And Engineer’s License Is Not Open To An Employment Contract In Connection With A Sale Of The Business. Therefore A New Rmo Or Rme And Engineer Will Be Necessary To Maintain The Licenses And The Company’s Ability To Perform Engineering In-House. The Other Principal With The Architect’s License Also Keeps The Company’s Books And May Be Open To An Employment Contract. The Company’s One Employee Has Been With The Company For 18 Months And Is A Project Manager With A Bs In Architecture And 3 Years Of Construction Experience.
In Addition To Its Real Estate Interests, The Company Owns A 2006 Ford F-150 With 14,000 Miles And 5,000 Owed On An Auto Loan. And, The Company Has 16,000 Worth Of Office Equipment On Its Books Including Miscellaneous Furniture And Computer Equipment And Two Les Paul Guitars Valued At 6960.
The Company Has 260,000 In Loans Receivable From The Shareholders But Also Has 345,000 In Loans Payable To Shareholders.
A Non-Compete Is Not Offered. One Of The Current Principals Intends To Compete Directly For The Service Of The Company’s Employee; The Management Of The Existing Building; And The Management, Design, And Construction Contracts For The Project Now Seeking Entitlement.
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