Pure Cycle Corp (NASDAQ:PCYO) Q3 2020 Earnings Conference Call - Final Transcript
Jul 07, 2020 • 04:00 pm ET
Thank you. [Operator Instructions] Thank you. Our first question comes from Geoffrey Scott with Scott Asset Management. Please state your question.
Good afternoon, Mark
Hi Geoff, how are you?
Good, thank you. I had to hop off for a minute or two. I hope I didn't miss it. Could you talk about the commercial development, the timing of it, and kind of what your expectations are for the -- what's going to move in there? Thanks.
Yeah. Good, good call. Good question. You know the key element of commercial, where you're selling lots you might be selling large lots, couple of lots to the acre that type of stuff. When you -- when you really get a good commercial development you sell your land in the square foot range. One of the things that the company recognized is that it did not have adequate expertise either at the managerial level or at the Board level to evaluate commercial deal. So our newest Board member, Mr. Jeff Sheets certainly brought with him about 25 years of Denver-based commercial real estate development expertise. So we're very delighted to welcome him to the Board and his -- his recruitment was very specific to that opportunity, Geoff. We really wanted to make sure that the company does capitalize on that.
If I were really to highlight one of the advantages of being debt free is the fact that we have the flexibility to be patient on the commercial stuff and realize the significant value, the full value of that. We've been approached by a number of folks that have an interest in the commercial development, but they've been the type of players that would buy it and then sell it to somebody else, who specialize in commercial real estate development as opposed to actually developing the commercial real property. And so we would like to eliminate that middle man by bringing on someone like Jeff with some expertise to do that. I would say that we're probably maybe a year out from being the guy in getting that commercial real -- the commercial accounts that have an interest in there and that's mostly because of trip traffic and things like that. So as we start to balance out the rest of Phase 1, say getting closer to that 500 unit development. And really we are the only -- we're the only development and really the only interchange on the Interstate within kind of a geometry of -- three directions. Going west towards Denver, the nearest commercial development is about eight miles away. If you go east farther out of Denver, there is some commercial activity really just mostly a grocery store, not a lot of other retail. That's about 11 miles and then you'd have to go about 10 miles or 11 miles south to pick up that. So triangulating ourselves, we are in an ideal position for that commercial development.
And then I think what they're looking for is a little bit more density,