 |
During this 10 year period The Myers Group acquired approximately 187 separate tracts of land. Average holding period was 3.53 years. The average ANNUAL PROPERTY APPRECIATION was 77.6%.
In August 1985, Laventhol and Horwath audited all resales, which had taken place up to that time and had calculated that the investors' Internal Rate of Return was in excess of 70% per year. By July 1988, fifty-five tracts purchased for $49,974,922 (on terms) were resold for $136,617,966 CASH. This represented a resale of approximately 27% of The Myers Group's portfolio on a cost basis.
The following table, (below), shows the dollar
amount of land purchased each year from 1978 through 1985 by The Myers Group:
|
1978 |
$3,042,975 |
|
|
1979
|
$5,710,387 |
|
1980
|
$17,010,530 |
|
1981
|
$19,052,273 |
|
1982
|
$27,742,063 |
|
1983
|
$36,618,116 |
|
1984
|
$78,064,813 |
|
1985
|
$98,116,667 |
This land was purchased primarily in the Sunbelt, in the following areas (see
chart below):
Arizona
Tucson
California
Hemet
Livermore
Redlands/Riverside
Sacramento
San Diego
San Francisco Bay Area
Antioch
Colorado
Denver
Loveland/Ft. Collins
Florida
Melbourne
Jacksonville
Orlando
Sarasota
Tampa
|
Georgia
Atlanta
Illinois
Chicago
New Mexico
Albuquerque
North Carolina
Raleigh/Durham
Oklahoma
Oklahoma City
Tulsa
Oregon
Portland
Ohio
Akron |
Texas
Austin
Dallas
El Paso
Fort Worth
San Antonio
Houston
Utah
Salt Lake City
Washington
Auburn
Bellingham
Issaquah
Seattle
Tacoma |
| In April 1986, ten properties were selected at random by Harry Roberts (University of Chicago) and R41B MAI appraisals were then conducted to assess the value of performance of unsold Myers properties. Professor Robert’s conclusions are summarized as follows:
1. The sample size,
relative to the size of the portfolio, is
large enough to yield statistically significant
results.
2. Myers' unsold properties appear to appreciate in value at a rate equal to, or in excess of, the sold properties.
3. Myers' properties, both sold and unsold, demonstrate similar statistical behavior with regard to covariance with other forms of investment. The average annualized internal rate of return for the unsold properties, if sold at appraised value, is 91.1% non-leveraged.
Over the past 43 years numerous cities have been researched at considerable cost, where no land was purchased. Either the land was already too expensive at the time it was being researched, or the area simply was premature and unsuitable for considerations (This was the case with Houston, Phoenix and other cities).
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