Accounting Paper

Accounting Paper

Grand Slam Real Estate Investment Group’s Financial Condition
By way of introduction, I am the CFO of Grand Slam Real Estate Investment Group.   This correspondence serves as a follow up to your recent business meeting with company CEO, John Smallthinker.
First, as a matter of clarification, our company’s financial statements, including but not limited to the financial viability of our company, is best illustrated by closely reviewing our unencumbered and cumbered real estate holdings.   Currently, we own a $25 million dollar downtown office building.   This building will be the home to our new offices.   The remaining office space shall be rented to revenue-producing tenants.   This property appraised at the time of closing at approximately $30 million dollars.   Prior to this closing, our firm placed a $100 million dollar deposit on newly developed land next to 1-95.   This underdeveloped tract of land is zoned for commercial development.   Closing on this parcel is set for September 1, 2009.   The remaining $14 million for this land is due from the line of credit we have secured with your institution.
Second, existing real estate across the United States was purchased for $50 million.   The appraised resale value of this land is approximately $90 million dollars.   Conversely, however, attendant with this ownership of realty are daily, weekly, monthly, and yearly operating expenses.   A close review of our balance sheet clearly indicates that all liability obligations are performing.   In fact, this has been true for the ten years our business has been in existence.
Next, it is anticipated that due to its vibrant location to vehicular traffic, this parcel has tremendous potential for commercial retail development.   The existing parcel is 30 acres.   The land is capable of being subdivided into freestanding buildings or alternatively kept together in strip mall fashion.   Either way, it is anticipated that major retailers will vie for the premier realty.   As a result, the...