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Beachfront Development in TOP-Lage in Südwestflorida

1. April 2011 Veröffentlicht in Investmentprojekte Florida ¦ Keine Kommentare

Exclusive investment opportunity in Southwest Florida


0.93 acres with 250 feet beach front in top-location of Southwest Florida

One of the leading real estate developers in Southwest Florida – citizen of UK – (track record with over 100 units completed and sold including one waterfront luxury unit under construction now for $1.8 million) offers an investment opportunity as follows:

0.93 acres with 250 feet beach front in top-location of Southwest Florida

Although the real estate market is picking up again, banks are still very restrictive. Therefore, the developer has to find other sources of funding for construction financing. Currently there is a unique real estate purchase opportunity on the market:

We offer a unique piece of land of 0.93 acres with 250 feet beach front in top-location of Southwest Florida. The land is owned by an independent agency of the federal government to promote and preserve public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions.

Before the financial crisis the land was sold to a developer for $12 million. It was foreclosed and is now owned by an agency of the federal government. They had it appraised and on the market for $5 million. The developer put in an offer for $3.5 million, which was accepted. The developer has 30 days for DD and another 30 days for closing.

The developer had a conversation with the City last week. He can build 22 units of 1400 sq ft to be sold @ $700 per sq ft or $980,000 a unit, which is a reasonable price for a beach front unit of this size in top-location of Southwest Florida. If we price them at $600 per sq ft for the first off-plan buyers the resulting price of $840,000 is very competitive, and we will still generate a good profit. To build 22 units of 1400 sq ft @ approx $225 costs $7 million plus $3.5 million for the land plus $500,000 for furnishings. The total investment is $11 million or $500,000 per unit. The projected profit after sales cost is between $6 million and $9 million.

It would be ideal if the developer could draw down between $5 million and $10 million in three stages as needed. Off-plan sales and sales during construction will determine how much construction financing is needed.

Worst-case calculation: While construction loans are still difficult to get in Florida, a project company controlled by foreign investors can get a 50% mortgage @ 6.5%. Experts feel that you can rent the units in high season for $2500 (22 weeks, 80% occupancy) generating $44,000 and for $2000 in the rest of the year (30 weeks, 30% occupancy conservatively) generating $18,000; total $62,000 per unit or $1,364,000 for 22 units. If you take a 50% mortgage @ 6.5% your net return after interest is $1,006,500 or 18.3% on the equity of $5,500,000 invested.

So we are looking for an equity investor for the $ 5 million to $10 million.

The market has bottomed out, and the demand is increasing again. Especially the market for vacation homes is rapidly on the rise:

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Please contact us for detailed information – only qualified investors.