Ft.Delaware RV project- Preliminary

EYEHEART PROPERTIES

Preliminary Investor Report & Business Proposal

Fort DuPont RV & Campground Resort Development

Delaware City, Delaware

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1. Executive Overview

EyeHeart Properties presents a preliminary investment opportunity to participate in the development of a fully approved 135-acre RV and campground resort adjacent to Fort DuPont in Delaware City, Delaware.

The site has previously secured development approvals for:

• 347 RV sites
• 55 cottages
• 20 tent sites

This scale positions the project as one of the most significant outdoor hospitality developments in the Mid-Atlantic corridor.

The project benefits from:

• Strategic proximity to Interstate 95 (I-95)
• Accessibility to major metropolitan markets
• Established tourism drivers
• Approved master plan status

This report outlines the investment rationale, location advantages, revenue potential, and projected return profile.

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2. Strategic Location Advantage

Proximity to I-95: A Core Investment Driver

The property is located within convenient driving distance of Interstate 95, the primary north–south corridor of the Eastern Seaboard.

I-95 provides direct connectivity to:

• Philadelphia (~1 hour)
• Baltimore (~1.5 hours)
• Washington, D.C. (~2.5 hours)
• New York City (~3 hours)

This proximity provides three critical investment advantages:

1. High Travel Visibility & Accessibility
   RV travelers prioritize convenient interstate access. Easy ingress and egress significantly increase occupancy probability.

2. Large Addressable Market
   Within a 3-hour drive radius, the population base exceeds 30 million residents. This creates consistent weekend and seasonal demand.

3. Interstate Travel Capture
   Long-distance RV travelers along the East Coast corridor require overnight and short-stay options near major routes. This project is positioned to capture that transient demand.

In outdoor hospitality, accessibility directly correlates with occupancy stability and revenue resilience.

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3. Market Opportunity

Industry Fundamentals

The RV and outdoor recreation sector has demonstrated strong growth over the past decade, supported by:

• Increased RV ownership
• Demand for experiential travel
• Preference for flexible accommodations
• Growth in seasonal and remote-work travel

Outdoor hospitality assets benefit from:

• Lower operating costs relative to traditional hotels
• Flexible pricing structures
• Seasonal premium pricing capability
• High-margin ancillary revenue streams

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4. Project Scale & Revenue Mix

Approved Plan Includes:

Accommodation Type	Quantity
RV Sites	347
Cottages	55
Tent Sites	20
Total Units	422

This diversified lodging mix supports:

• Nightly transient guests
• Seasonal renters
• Extended stay RV tenants
• Premium cottage stays
• Event-based bookings

Diversification mitigates revenue volatility.

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5. Preliminary Financial Model (Illustrative)

Stabilized Year Assumptions (Conservative)

• Average RV nightly rate: $60–$85
• Cottage nightly rate: $110–$160
• Average annual occupancy (blended): 60–70%
• Operating expense ratio: 45–50%

Estimated Stabilized Annual Revenue

Category	Estimated Revenue
RV Sites	$1.8M – $2.3M
Cottages	$500K – $750K
Tent Sites	$120K – $180K
Ancillary (events, add-ons)	$150K – $250K
Total Revenue	$2.6M – $3.4M

Estimated Stabilized Net Operating Income (NOI)

Projected NOI range:
$1.2M – $1.6M annually

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6. Capital Investment & ROI Outlook

Estimated Development Capital

(Preliminary estimate; subject to engineering review)

• Infrastructure & utilities
• Site work & grading
• Roads and pads
• Cottage construction
• Amenities & common areas
• Working capital

Estimated total development: $12M – $18M * see revised section

Stabilized ROI Estimate

Scenario	Annual NOI	Estimated Yield
Conservative	$1.2M	8–10%
Base Case	$1.4M	12–15%
Optimized	$1.6M	15–18%+

Long-term exit valuation (at 7–8% cap rate) suggests significant appreciation potential once stabilized.

Please see revised Section 6 — upgraded to institutional quality and aligned with:

✔ Sheriff sale acquisition scenario
✔ Tiered / phased development (“actuator model”)
✔ EyeHeart Properties long-term ecosystem vision
✔ Clear capital staging + cost layering
✔ Improved ROI profile

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6. Capital Investment & ROI Outlook (Revised – Tiered Development Model)

Strategic Acquisition Opportunity

The Fort DuPont RV & Campground Resort site is anticipated to be available via sheriff sale at an estimated acquisition price of approximately:

$2,000,000 (±)

This represents a significant basis advantage relative to comparable entitled land assets, dramatically improving:

• Yield potential
• Capital efficiency
• Downside protection
• Exit valuation multiples

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Tiered Development Strategy (“Actuator Model”)

EyeHeart Properties proposes a phased capital deployment strategy designed to:

✔ Activate revenue early
✔ Reduce upfront capital exposure
✔ Validate market demand incrementally
✔ Scale infrastructure in alignment with cash flow

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PHASE 0 — Acquisition & Site Control (Months 0–3)

Objective: Secure asset and prepare for activation

Estimated Cost:

• Land Acquisition (Sheriff Sale): $2,000,000
• Legal, closing, due diligence: $150,000 – $300,000

Phase 0 Total: $2.15M – $2.3M

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PHASE 1 — Initial Activation (Revenue-On Strategy)

(Months 3–12)

Objective: Launch operational RV park quickly with minimal infrastructure

Scope:

• Basic grading & clearing
• Gravel roads & pads
• 75–125 RV sites (initial rollout)
• Temporary utility hookups (power/water)
• Septic / interim sanitation solutions
• Entry gate, signage, basic office
• Security, lighting, WiFi (basic deployment)

Estimated Cost:

Category	Cost
Site work & grading	$500,000
Roads & pads	$600,000
Utilities (initial)	$400,000
Temporary facilities	$150,000
Operations setup	$150,000
Total Phase 1	$1.8M – $2.0M

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Phase 1 Revenue Potential

• 75–125 RV sites
• Avg. $55–$75/night or seasonal mix

Projected Annual Revenue:
➡ $800K – $1.4M

Goal: Early cash flow within first 12 months

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PHASE 2 — Core Infrastructure & Expansion

(Months 12–30)

Objective: Transition to full-service campground

Scope:

• Expand to 200–275 RV sites
• Permanent utility infrastructure
• Internal paved roads
• Drainage systems
• Bathhouses & laundry facility
• WiFi expansion + fiber backbone
• Solar infrastructure (partial deployment)
• Convenience store / camp retail
• Playground + recreation areas

Estimated Cost:

Category	Cost
Utilities (permanent)	$2.0M – $3.0M
Roads & infrastructure	$1.5M – $2.0M
Buildings (bath/laundry/store)	$1.2M – $1.8M
Solar + tech infrastructure	$500K – $1.0M
Landscaping & recreation	$500K – $800K
Total Phase 2	$5.7M – $8.6M

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Phase 2 Revenue Potential

➡ $1.8M – $2.8M annually

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### PHASE 3 — Destination Resort Buildout

(Months 24–48)

Objective: Elevate to premium destination resort

Scope:

• Expand to full 347 RV sites + cottages
• Lake / pond development (water feature + recreation)
• In-ground pool complex
• Recreation center + business center
• Amphitheater / performance stage
• Event programming infrastructure
• Premium landscaping & waterfront activation

Estimated Cost:

Category	Cost
Cottage construction (55 units)	$1.0M – $3.0M
Lake / pond development	$800K – $1.5M
Pool & recreation complex	$1.0M – $1.8M
Amphitheater & stage	$500K – $1.0M
Clubhouse / business center	$1.2M – $2.0M
Final infrastructure & upgrades	$1.0M – $1.5M
Total Phase 3	$5.5 M – $10.3M

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Phase 3 Revenue Potential

➡ $2.8M – $4.2M annually

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Total Project Capital (Phased)

Stage	Cost
Phase 0 (Acquisition)	$2.15M – $2.3M
Phase 1 (Startup)	$1.8M – $2.0M
Phase 2 (Core Buildout)	$5.7M – $8.6M
Phase 3 (Full Resort)	$8.5M – $14.3M
Total Investment	$18.1M – $27.2M

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Blended ROI Outlook (Enhanced by Low Acquisition Basis)

Stabilized NOI (Post Phase 3)

➡ $1.5M – $2.4M annually

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Return Scenarios

Scenario	NOI	Total Cost	Yield
Conservative	$1.5M	$25M	6–8%
Base Case	$1.9M	$22M	9–13%
Optimized	$2.4M	$20M	12–18%+

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Key Investment Advantage: Low Basis Multiplier Effect

Because of the $2M acquisition vs typical $6M–$10M entitled land value, investors benefit from:

✔ Higher yield on cost
✔ Stronger exit multiples
✔ Faster break-even timeline
✔ Increased IRR potential

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Exit Valuation Potential

At stabilization:

Cap Rate	NOI	Valuation
8%	$1.8M	$22.5M
7%	$2.0M	$28.5M
6.5%	$2.2M	$33M+

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Strategic Takeaway

This opportunity is no longer just a development play — it becomes:

A High-Leverage Acquisition + Phased Yield Asset

The combination of:

• Discounted acquisition
• Approved site
• Interstate location
• Phased development
• Multi-revenue model

creates a compelling institutional-grade investment with strong upside and controlled risk.

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7. Risk Profile & Mitigation

Strengths

• Approved master plan reduces entitlement risk
• Strategic interstate proximity
• Large regional population base
• Diversified lodging mix
• Scalable 135-acre footprint

Mitigated Risks

• Demand volatility mitigated by proximity to I-95
• Seasonal fluctuations offset by cottage rentals and event programming
• Development scale allows phased buildout

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8. Competitive Advantage

Unlike remote campground developments, this site combines:

• Interstate proximity
• Waterfront adjacency
• Historical tourism appeal
• Major metropolitan accessibility

Few projects in the Mid-Atlantic offer this combination at scale.

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9. Strategic Alignment with EyeHeart Properties

EyeHeart Properties focuses on:

• Scalable real estate assets
• Regenerative tourism infrastructure
• Community-centered economic ecosystems
• Long-term value creation

This project supports:

• Regional economic stimulation
• Hospitality-driven asset appreciation
• Sustainable travel infrastructure
• Mixed-use expansion opportunities (future phases)

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10. Investment Structure Options

Potential structures include:

• Equity partnership
• Preferred return structure (8–10% pref + profit participation)
• Joint venture model
• Phased capital deployment
• Strategic operating partnership

Detailed pro forma and capitalization model available upon NDA.

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11. Preliminary Conclusion

The Fort DuPont RV & Campground Resort represents:

• A shovel-ready large-scale hospitality asset
• A strategically positioned interstate corridor investment
• A diversified revenue model with multiple yield drivers
• A strong long-term appreciation candidate

Given current macro trends in experiential travel and outdoor recreation, this asset class continues to outperform many traditional hospitality segments.

EyeHeart Properties believes this project warrants serious capital consideration.

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