market opportunity

GDR’s market opportunity lies in capitalizing on the expected migratory behavior patterns of the baby-boomer generation over the next ten years. The sheer magnitude of this market segment will create a demand for lifestyle real estate development properties that GDR will capitalize on by acquiring, developing or lending on properties located within these targeted geographical areas.

market segment & migratory behavior pattern information for the baby-boomer generation

The Baby-Boomer generation, defined as those born between the years of 1946 to 1964, has approached a point in time where they are beginning to reposition their assets in such a way as to allow themselves lifestyle options not enjoyed in earlier years. The impact of this generation turning its enthusiasm on a particular market segment has already been evidenced in the automobile industry with the overwhelming success of the Sports Utility Vehicles. The popularity of the S.U.V.’s with this generation has driven the price for the upper end vehicles in this class to more than most of the Baby-Boomers paid for their first homes thirty years ago. This is the largest generation of consumers in history. During the above referenced 19-year period, nearly 76 million children were born in the U.S. This is an astonishing statistic when one recognizes that the entire U.S. population in 1945 totaled just less than 140 million. This is the most active, health conscious generation ever, with a propensity to get what they want and pay what it costs. Not only are they willing to pay for what they want, they are also able to pay what it takes. In an article published by the University of Alabama’s Cooperative Extension System it noted that persons over fifty years of age in the United States:

       • Own 68% of all money market accounts
       • Earn 42% of the total after-tax income
       • Own their homes in 80% of the cases, with 80% of those mortgage free
       • Have financial assets that are 80% larger than the national average
       • Have savings accounts that are 90% larger than the national average
       • Own nearly 50% of all corporate stocks

According to a report by Theodore Roszak produced for the United States Department of State, as of the turn of the year 2000 nearly a quarter of the U.S. population is fifty years of age or older and have a combined annual personal income of nearly a trillion dollars. This same age group controls half of America’s disposable income, 75% of its financial assets (worth more than $8 trillion) and 80% of the country’s savings and loan accounts. Using standard actuarial charts, we can expect that the number of people fifty years old will increase by approximately 3.5 million people per year for the next 14 years.

Based on a recent study carried out by the AARP (American Association of Retired People) when asked to respond to the question do you “expect to move away from this area to another”, 48% responded that it is more likely than not that they will relocate. Taking into account that approximately 55 million of the original 76 million Baby-Boomers will survive to age 65, this results in some 26.5 million people relocating. According to Daniel Perry, executive director of the Alliance for Aging Research in Washington, D.C., “Retirement is becoming an outmoded concept”. Wellen McLean of Brownlyn Associates, says that with the “telecommuting phenomenon” someone might have their permanent residence in a place of their choosing “but only visit the company’s main office in New York or Chicago once or twice a month. This new found “freedom” of residency is even further facilitated by the transition of the U.S. from manufacturing to professional services, banking, high-tech companies, etc. Most of these services do not require that upper management be physically located in a particular location.

It has become evident that North America is at the beginning of a ground swell of relocation migration by the largest most affluent generation in history. A careful study of the relocation criteria that has been established by those making these changes in residency, will begin to define certain geographic areas that will provide the residential elements required to fulfill their lifestyle objectives. GDR is constantly updating and improving its methods of determining the elements most important to the relocation of this significant number of consumers. While the order of importance changes somewhat from one study to the next the basic outline of objectives remain consistent. Those requirements are as follows:

       • Excellent healthcare, medical and emergency facilities
       • Cultural attractions
       • Mild four season climate
       • Outdoor recreational areas
       • Restaurants
       • Opportunity for ongoing educational opportunities
       • Accessible transportation (Four lane highways and regional airport access)

One of the essential elements of GDR’s business plan is to establish a presence in the form of real estate ownership, development and lending in as many markets as possible that match up closely with this predetermined set of criteria.

GDR has initially targeted the area of Asheville, North Carolina for development operations. This area, surrounded by the Pisgah National Forest and the Blue Ridge Parkway, has achieved the status of “The 20 Best Places to Retire in the World” (Barron’s Magazine, March 2002), the “Top Ten Towns for Second-Home Investments” (Escapehomes.com 2004) and “Best Places to Retire, Top Pick” (Money Magazine, June 2000). It is GDR’s intention to utilize the Asheville area in order to establish a template for real estate ownership, development and lending. The duplication of this model by GDR will enable the establishment of operating entities in other rapidly growing markets across the United States and North America.