COLLIN COUNTYCOLLIN COUNTYBUILD PROJECTBUILD PROJECT

A BUILD PROPOSAL A BUILD PROPOSAL BY STARLINE BY STARLINE HOMES, LLC.HOMES, LLC.Dusty Dell ingerDusty Dell inger20092009

Dallas Morning NewsDallas Morning News , , July 1 July 1 stst 2009 2009

““Already it is clear that there is a limitedAlready it is clear that there is a limited amount of existing or newly built housing amount of existing or newly built housing

at the price points under $200,000”at the price points under $200,000”

-Ted Wilson-Ted Wilson

Residential Strategies Inc.Residential Strategies Inc.

Project BackgroundProject BackgroundThis project spawned from the desire to take advantage of the growth of Collin County and the This project spawned from the desire to take advantage of the growth of Collin County and the need for entry level homes in existing neighborhoods. To be more precise, homes that are need for entry level homes in existing neighborhoods. To be more precise, homes that are located in desirable commuting towns, within existing older established neighborhoods, where located in desirable commuting towns, within existing older established neighborhoods, where a well-crafted home can fit in with the surrounding homes.a well-crafted home can fit in with the surrounding homes.

The homes will fit a market niche where either a single homeowner, young family, or older The homes will fit a market niche where either a single homeowner, young family, or older persons looking to down-size, desire a home in the community where a smaller home either persons looking to down-size, desire a home in the community where a smaller home either fits their budget, their need to remain connected to the “small town” way of life or family fits their budget, their need to remain connected to the “small town” way of life or family members.members.

STARLINE HOMES will build quality & energy efficient homes with a square foot range of STARLINE HOMES will build quality & energy efficient homes with a square foot range of 1,000-2,000 feet, depending on the lot size and surrounding homes. Each STARLINE HOME 1,000-2,000 feet, depending on the lot size and surrounding homes. Each STARLINE HOME will be designed with the surrounding homes style incorporated into its exterior architectural will be designed with the surrounding homes style incorporated into its exterior architectural design elements. Thus, blending the home into the fabric of the neighborhood and giving it a design elements. Thus, blending the home into the fabric of the neighborhood and giving it a timeless feel.timeless feel.

One of the key selling features of each STARLINE home will be an energy efficient package One of the key selling features of each STARLINE home will be an energy efficient package that will include the following items:that will include the following items: Low-e WindowsLow-e Windows Radiant Barrier Roof DeckingRadiant Barrier Roof Decking Tank-Less Hot Water SystemsTank-Less Hot Water Systems 14 Seer HVAC Systems14 Seer HVAC Systems

STARLINE HOMES feels that this energy package will set us apart from other builders in this STARLINE HOMES feels that this energy package will set us apart from other builders in this price point and existing pre-owned homes that are on the market. Along with the true building price point and existing pre-owned homes that are on the market. Along with the true building quality of Dustin Dellinger and 15 years of experience in the residential home building industry, quality of Dustin Dellinger and 15 years of experience in the residential home building industry, STARLINE Homes will fill a niche market in the Collin County area.STARLINE Homes will fill a niche market in the Collin County area.

LIVING LARGE AND LIVING LARGE AND LEAVING A SMALL LEAVING A SMALL FOOTPRINTFOOTPRINT

“ “and then there’s the fact that buyers, on and then there’s the fact that buyers, on average, don’t need as much because average, don’t need as much because households are smaller. Of the 28 million households are smaller. Of the 28 million households that are expected to be added to households that are expected to be added to the American landscape between 2010 and the American landscape between 2010 and 2030, fewer than 5 million (about 17%) will be 2030, fewer than 5 million (about 17%) will be families with kids, while 10 million are projected families with kids, while 10 million are projected to be single person households.”to be single person households.”

-Builder Online-Builder OnlineJune 2, 2009June 2, 2009

TARGET CITIESTARGET CITIES

AllenAllen CelinaCelina FriscoFrisco MellisaMellisa McKinneyMcKinney PrincetonPrinceton ProsperProsper

All of these towns All of these towns have incredible have incredible growth patterns, yet growth patterns, yet take pride in their take pride in their history and sense of history and sense of small town Americasmall town America by maintaining their by maintaining their core downtown core downtown residential areas.residential areas.

A picture is worth a A picture is worth a thousand words…thousand words…

Proposed Project #1 Proposed Project #1 Single Single Family HomeFamily Home

Celina – 311 S. New Celina – 311 S. New Mexico St.Mexico St.Assumptions:Assumptions:

Home Size: 1260 sq.ft.Home Size: 1260 sq.ft. Build Time: 60-90 daysBuild Time: 60-90 days Cost: Cost: $78 (Hard+Soft+Lot)$78 (Hard+Soft+Lot) Sale: Sale: $91$91 Sales Price: $115,000 Sales Price: $115,000

Costs:Costs:

Hard CostsHard Costs Lot Cost:Lot Cost: $12,500$12,500 Labor & Materials:Labor & Materials: $80,608$80,608 Total Hard Costs:Total Hard Costs: $93,108 $93,108

Soft Costs:Soft Costs: Realtor Commission (3%):Realtor Commission (3%): $3,300$3,300 Loan Interest Costs:Loan Interest Costs: $1,500$1,500 Total Soft Costs:Total Soft Costs: $4,800$4,800

Hard Costs + Soft Costs:Hard Costs + Soft Costs: $97,908 $97,908

Total Project Profits:Total Project Profits: $17,091$17,091

Percent Profit :Percent Profit :14.86%14.86%

Proposed Project #2 Proposed Project #2 Single Single Family HomeFamily Home

Princeton – 916 1Princeton – 916 1 stst Street StreetAssumptions:Assumptions:

Home Size: 1260 sq.ft.Home Size: 1260 sq.ft. Build Time: 60-90 daysBuild Time: 60-90 days Cost: Cost: $80 (Hard+Soft+Lot)$80 (Hard+Soft+Lot) Sale: Sale: $92$92 Sales Price: $117,000 Sales Price: $117,000

Costs:Costs:

Hard CostsHard Costs Lot Cost:Lot Cost: $15,500$15,500 Labor & Materials:Labor & Materials: $80,608$80,608 Total Hard Costs:Total Hard Costs: $96,108 $96,108

Soft Costs:Soft Costs: Realtor Commission (3%):Realtor Commission (3%): $3,510$3,510 Loan Interest Costs:Loan Interest Costs: $1,500$1,500 Total Soft Costs:Total Soft Costs: $5,010$5,010

Hard Costs + Soft Costs:Hard Costs + Soft Costs: $101,118 $101,118

Total Project Profits:Total Project Profits: $15,882$15,882

Percent Profit :Percent Profit :13.57%13.57%

Proposed Project #3Proposed Project #3 Single Family Single Family CottagesCottages

Allen- Cedar/Coats DriveAllen- Cedar/Coats Drive This will be a pocket neighborhood of cottage This will be a pocket neighborhood of cottage

style homes that will utilize the zoning and style homes that will utilize the zoning and visions of the Allen central business district to visions of the Allen central business district to bring desirable and affordable residential bring desirable and affordable residential homes to the downtown area. Modeled after homes to the downtown area. Modeled after the unique and award winning designs of the unique and award winning designs of architect Ross Chapin in the Seattle, WA area. architect Ross Chapin in the Seattle, WA area. Station Park Cottages will be a pocket of 4 Station Park Cottages will be a pocket of 4 home sites sitting on roughly 18,500 sq.ft. home sites sitting on roughly 18,500 sq.ft. They will have a sense of being their own They will have a sense of being their own neighborhood within the already established neighborhood within the already established downtown and Allen’s Station Park area.downtown and Allen’s Station Park area.

STATION PARK STATION PARK COTTAGESCOTTAGES

Location, Location…Location, Location…-1 Block from Allen Station Park-1 Block from Allen Station Park-1 Block from Allen Senior Center-1 Block from Allen Senior Center-1 Mile from Allen Senior High School-1 Mile from Allen Senior High School-Minutes from Central Expressway-Minutes from Central Expressway-Minutes from Allen Presbyterian Hospital-Minutes from Allen Presbyterian Hospital-Shopping for all ages: Waters Crossing-Shopping for all ages: Waters Crossing Allen Premium Outlet, The Village, …Allen Premium Outlet, The Village, …-Allen Event Center-Allen Event Center-Major Employers-Major Employers-Allen Public Library-Allen Public Library"Our Goal is to provide "Our Goal is to provide

unique single-family housing unique single-family housing choices that fit seamlessly choices that fit seamlessly into larger neighborhoods. into larger neighborhoods. The approach is to create The approach is to create beautiful, serene places beautiful, serene places where people want to spend where people want to spend their lives."their lives." -dustin Dellinger

Site Design – Site Design – The proposed site is 18,500 The proposed site is 18,500 sq.ft . (100’ x 185’). There wil l be 4 Cottages, a sq.ft . (100’ x 185’). There wil l be 4 Cottages, a shared garage complex along with an open shared garage complex along with an open landscaped community space and off street landscaped community space and off street parking for visitors.parking for visitors.

Proposed Project #3 Proposed Project #3 Station Park Stat ion Park CottagesCottages

Allen – Allen – North East Corner of Cedar St. and North East Corner of Cedar St. and Coats Dr.Coats Dr.Assumptions Based on 4 Homes –Phased Assumptions Based on 4 Homes –Phased ConstructionConstruction

4 Homes: Size (Typ.) 1500 sq.ft.4 Homes: Size (Typ.) 1500 sq.ft. Build Time: 90-120 daysBuild Time: 90-120 days Cost: Cost: $105 (Hard+Soft+Lot)$105 (Hard+Soft+Lot) Sale: Sale: $128$128 Sales Price: $185,000 to $200,000 (avg. $192,500)Sales Price: $185,000 to $200,000 (avg. $192,500)

Costs:Costs:

Hard CostsHard Costs Lot Cost:Lot Cost: $150,000$150,000 Labor & Materials:Labor & Materials: $450,000$450,000 Total Hard Costs:Total Hard Costs: $600,000 $600,000

Soft Costs:Soft Costs: Realtor Commission (3%):Realtor Commission (3%): $23,100$23,100 Loan Interest Costs:Loan Interest Costs: $10,000$10,000 Total Soft Costs:Total Soft Costs: $33,100$33,100

Hard Costs + Soft Costs:Hard Costs + Soft Costs: $633,100 $633,100

Total Project Profits:Total Project Profits: $136,900$136,900

Percent Profit :Percent Profit :17.77%17.77%