Embed Size (px)
Citation preview
Benny Spensieri, Managing Partner
CRES Corp International, LLC
Commercial Real Estate-Financial Services
1228 E 7th Avenue, Tampa, FL 33605
813-391-1545 [email protected]
www.CRESCorpINTL.com
3227 Bell Shoals & 1029 Knowles Rd, Brandon, FL
1
Statement of Confidentiality and Disclaimer
CRES Corp International, LLC has agreed to represent Paul D Zugay, the Owner of the Properties located
3227 Bell Shoals Bv & 1029 Knowles Rd, Brandon, Fl 33511, with the promotion and sale of said
Property. No contact shall be made directly to the Owner, or any associates to Owner, by any
prospective purchaser or agent of purchaser regarding said Property.
This brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner
expressly reserves the right, at its sole discretion, to reject any or all expression of interest to purchase
the Property and expressly reserves the right, at its sole discretion, to terminate discussions with any
entity at any time with or without notice. The Owner shall have no legal commitment or obligation to
entity reviewing the brochure or making an offer to purchase the Property unless and until the Owner
executes and delivers a signed purchase agreement on terms acceptable to the Owner, at Owners sole
discretion. By submitting an offer a prospective purchaser will be deemed to have acknowledged the
foregoing and agrees to release the Owner from any liability with respect hereto.
The enclosed materials are being provided solely to facilitate the interested Party’s own due diligence
for which the interested Party shall be fully and solely responsible.
Neither CRES Corp International, LLC nor the Owner make any representation or warranty, expressed or
implied, as to the accuracy or completeness from the information contained herein, and nothing
contained herein shall be relied upon as a promise or representation as to the future performance of the
Property. This brochure may include certain statements and estimates by CRES Corp International, LLC
Agents/Associates with respect to the projected future performance of the Property. These assumptions
may or may not be proven to be correct and there can be no assurance that such estimates will be
achieved. Further, CRES Corp International, LLC disclaims any and all liability for representations or
warranties, expressed or implied, contained in or omitted from this brochure, or any other written or
oral communication transmitted or made available to the recipient. The recipient shall be entitled to
rely solely on those representations and warranties that may be made to it in any finale, fully executed
and delivered, Purchase Agreement between it and the Owner.
The information contained herein is subject to change without notice and the recipient of these
materials shall not look to the Owner or CRES Corp International, LLC, nor any of their officers,
employees, representatives, independent contractors or affiliates, for the accuracy or completeness
thereof. Recipients of this brochure are advised and encouraged to conduct their own comprehensive
review and analysis of the Property.
Prospective Purchaser understands and agrees that all dealings concerning the above opportunity will
be handled through CRES Corp International, LLC.
Prospective Purchaser ____________________________________Date____________________
Print Name________________________________
Address__________________________________________________Phone #______________________
2
__________________________________________________________Table of Contents
I. Introduction - Property……………………………………………………………..3
II. Introduction – Project…………………………………………………………….…4
III. Demographics………………………………………………………………….……..…5
IV. ALF - Project Summary & Financial Projections……………….……..… 6
V. ALF - Development Construction Cost Budget………….……..….…….8
CCI “Preferred Investor Program” PIP – Off-Market Property…………………….9
1031-Exchange Assistance…………………………………………………………………………10
CCI Financing Options ………………….…………………………………….…………….………11
A. Variable Rate Demand Bond Program
Commercial Property Management…………………….…………………………………..13
CRES Corp International, LLC………….…………………………………….………..………..14
3
I. UIntroduction – Property
Property Overview - Located off Bloomingdale Ave, with property access from Bell Shoals Rd and
Knowles Rd. These properties are situated directly behind Resurrection Community Church, Plaza Bella
Retail, and newly constructed apartments. These properties provide an opportunity to develop in a
rapid growth area that, at this particular time, offers minimal competition in health care.
Note: 3221 Bell Shoals Rd, is also available for sale, offering an additional 4.25-acres.
The Bell Shoals property includes a 4000-sf residential home. The building is structurally sound and
would make a great office/reception, rental or live-in if the developer chose to keep it.
Area Competition - There are 4 major ALF located within 3 miles radius from subject Property - The
Bridges, Brookdale, Hawthorn Inn, Superior Residences Memory Care. Most ALF/Memory Care Facilities
in the Brandon area are located in the NE area with room for growth Northern region of Brandon.
Area Hospitals – The Brandon Regional Medical Center is located within 2.5 miles of the subject
property. St Joseph’s Hospital is locate about 8-miles from subject property.
Parcel – U 01 30 20 ZZZ 000002 75840.0 & U 01 30 20 ZZZ 000002 75760.0:
• 7.84-acres
• Zoning – CMU-12 (Future Zoning) - permits health care, medical, commercial
• Density – 12-Units/acres
• Max Height – No Restrictions
Price: $1,350,000.00
Brandon, FL - 160-Bd ALF/Memory Care Proposed Development
1029 Knowles Rd
3.9-acres
3227 Bell Shoals Rd
3.94-acres 3221 Bell Shoals Rd
4.2-acres
4
II. Introduction - Project - Development - 160-bed ALF/Memory Care
The Proposed Development Project (PDP) indicated for the subject Property is ground-up 120-Bd
Assisted Living facility & 40-Unit Memory Care facility.
This Proposed Development Project Includes:
Phase I
A. Assisted Living Facility/Memory Care
• 120-bed (25/75 Distribution Single/Double Occupancy – 37-Units S - 45-Units - D )
• 40 Memory Care Units
• 105K/sf
• 3- 4 Stories
This PDP is well within the county/zoning limits and complies with the current market.
There are currently 50 ALF’s within a 9 mile radius of the Property, with six providing over 60 beds.
There is a current demand for ALF/Memory Care beds as Florida is 20% short on supply. That number
remains stagnant as the population of over 60 years old becomes greater.
The ALF per bed rate in this area is between $2800-$4000/bed (ALF) and $3200-$4500/Memory Care
Unit. Some ALF/ILF are getting less and some more, however, for the purposes of this Report, it is
indicated the ALF will charge $3200/bed, Memory Care $4100/unit.
Brandon, FL - 160-Bd ALF/Memory Care Proposed Development
5
III. Demographic Overview For A 5 Mile Radius from Subject Property* Persons 216,042 Families 57,299
Households 79,165 Persons Per Household 2.7
Percent Children 26.12 %
Source: 2010 Census / US Census Bureau
House Median Year Built 1989 Per Capita Income $28,398
Average Home Value $162,673 Average Household Income $66,174
Average Rent $1,238
Brandon, FL - 160-Bd ALF/Memory Care Proposed Development
6
IV. ALF - Project Summary & Financial Projections
Location: 3227 Bell Shoals Rd & 1029 Knowles Rd, Brandon, FL 33511
Project: Proposed Development – 3-4-story, 122-Bed, 105K sf Assisted Living Facility that includes 82 ALF Units (120-bds) and 40 Memory Care Units situated on 5.62-acres. Property Description: 5.62-acres, vacant Parcel ID: U 01 30 20 ZZZ 000002 75840.0 & U 01 30 20 ZZZ 000002 75760.0 Zoning: CMU-12 (Future Zoning) - Commercial, ALF/Memory Care, Hospital, Group Housing, Storage
• 7.98-acres
• 7.50-acres Buildable
• 1.0-acres Site Variables
• 6.98-acres Core Development Area
• 105,000-sf - Proposed Development Project
• 3-4 Stories
Land Price: $1,350,000 The following is based on 95% Occupancy in Year 6 of Ownership and after three years of business operation, after construction completion, when the ALF would be considered to be fully seasoned. Projected Gross Income: $6,474,000 Projected Expenses & Reserves: $4,302,863 Projected NOI: $1,689,786 Projected Debt Service: $934,110* Projected BTCF: $851,786
Projected Cap Rate: 8.05% Cost Basis/6.0% Resale basis
Projected Cash Return: 12.13% (with equity) 17.08% (Before Taxes)
Risk Factor: Medium
Brandon, FL - 160-Bd ALF/Memory Care Proposed Development
7
*Financing
This Report includes the initial funding to be an 75% contribution from VRDB’s ($16,64,000) offering
7.0% Interest Rate, amortized over 25-yrs and due in 3 years.
An Interest Reserve in the amount of f $150,000 is indicated in this scenario.
In year 4 of ownership, the VRDB and Investor Funds will be replaced with a permanent loan in the
amount of $15,823,583, which is the combined balance left on the loan. The loan amount includes
a fixed interest rate of 4.25% with an amortization schedule of 30-yrs. The Debt Service payment is
$934,110/an
Project Costs –
$20,842,000 Construction Costs (Hard/Soft/Holding, Property Prep/Infrastructure/Site Work/Paving)
$150,000 Closing/Finance Costs
$1,350,000 Land Acquisition Costs
Total Costs: $22,324,000
Brandon, FL - 160-Bd ALF/Memory Care Proposed Development
8
31-Aug-18
PHASE I
105,000 sq/ft 122-Units - $140/sf 14,700,000$ 0%
Kitchen/Cafeteria/Laundry Equipment 350,000$ 0%
0%
_____ sq/ft Other -$ 0%
Site Work 200,000$ 0%
Parking (Surface) 220,000$ 0%
Parking (Stuctures) -$ 0%
Elevator 200,000$ 0%
TOTAL 15,670,000$ 0%
ESCALATION CONTINGENCY 313,400$ 2%
HARD COST CONTINGENCY 783,500$ 5%
TOTAL HARD - PHASE ONE 16,766,900$ 0%
Real Estate Taxes 1,026$ 0%
Bonds 156,700$ 1%
Permits & Licenses & Fees 626,800$ 4%
Arch, MESP, Struct, other consult 626,800$ 4%
Development Costs @4% 626,800$ 4%
Construction Mgmt. Fee@4% 626,800$ 4%
Accounting/Legal 156,700$ 1%
Zoning & Condo Docs 156,700$ 1%
Finance & Closing Costs 156,700$ 1%
Pre-opening Expense
Insurance 156,700$ 1%
FFE/OSE 783,500$ 5%
Lease Commissions -$ 0%
TOTAL SOFT - PHASE ONE 4,075,226$ 0%
20,842,126$ 0%
Soft Cost Contingency 1,042,106$ 5%
TOTAL HARD & SOFT - PHASE ONE
Bell Shoals 160-Bed ALF
%
PHASE ONE HARD COSTS
PHASE ONE SOFT COSTS
V. ALF Development - Construction Cost Budget
The Proposed Development factors an overall cost of $190/sf to include land acquisition costs,
construction hard/soft costs, holding costs, escalations/errors, and closing/ finance costs. Site
preparation and vertical construction are both considered in this budget.
Brandon, FL - 160-Bd ALF/Memory Care Proposed Development
9
CRES Corp International
For those who are interested in “Off-Market” property, we offer our ”Preferred Investor Program” (PIP)!
CRES Corp International is one of the few commercial companies specializing in “Off-Market” properties;
properties available for sale but not offered to the public. Owners of these properties choose to keep the
sale discreet and, therefore, they do no list their property with any real estate company.
The problem most sellers have trying to sell their property “Off-Market” is locating legitimate Investors, who
are financially capable and who will make reasonable offers. Our Company has had tremendous success
assisting our sellers by introducing them to our Investors, who are Members of our “Preferred Investor
Program”.
Our Preferred Investor Program Members are Investor and Investment organizations, prequalified through
CRES Corp International, so the seller is confident the Investor we introduce not only has the financial ability
to purchase their property but also has a successful investment history and will make a serious offer.
A property not disclosed to the public provides our PIP Members the luxury of limited competition, a
comfortable examination of the property, and ample time to work with the seller structuring a deal. Our
Investors usually end up with a very good to great deal.
Investor? For further information on our Preferred Investor Program and our available “Off-Market”
properties, feel free to call or send an email.
Selling a Commercial Property? Don’t want to list? Send an email or call. Our Investors are ready to make an
offer on your property.
Benny Spensieri – 813-391-1545 or [email protected].
CRES Corp International “Preferred Investor Program” (PIP)
10
From this…
to this…
…to this! After you sell your property you have two choices - Pay Yourself or Pay the Government?
Capital Gains Taxes will have to be paid – Unless…
1031-Exchange Did you know you can defer paying your Capital Gains taxes on the money you earn from the sale of your Property by simply
buying another Property through a 1031-Exchange?
CRES Corp International has successfully assisted our Clients who have gone from owning duplexes and quadraplexes to owning:
• Apartment Complexes
• Hotels/Resorts
• Retail Strip Centers
• Office Complexes
• Medical Centers and more!
Contact a CRES Corp International Representative today to find out how to save on Capital Gains and expand your portfolio!
CRES Corp International – 1031-Exchange Assistance
11
Commercial Financing Arrangement
CRES Corp International assists our Clients with the provision of project funding:
• Acquisition Funding
• Multi-Family
• Hotels
• Retail
• Healthcare
• Medical
• Development Funding
Our Company strives to beat the current loan products offered by financial institutions, private capital and
other lending resources. We bring the best loan scenarios to our Clients:
• Lower Interest Rates
• Higher Leverage
• Longer Terms
• Non-Recourse
• No Prepayment
Financing is supplied through various sources to include:
• Bond Structured Financing
• Insurance Companies
• Private Capital
• Partnership Structuring
• Senior Life Settlement Policies
For further information on financing contact
Dave Syraski, Director, Financing Division - 727-744-3444 or [email protected]
Benny Spensieri, CCI Managing Partner - 813-391-1545 or [email protected]
CRES Corp International - Financing Options
12
A. Variable Rate Demand Bond Funding
CRES Corp International offers our Clients the opportunity to receive low rates and low down payment loan
structures for their development and acquisition through our Variable Rate Demand Bond (“VRDB”) funding
program:
• 95%-75% LTV/LTC
• 2.25%-3.5% Interest Rate
• 25-30 Year Amortization
• Recourse/Non-Recourse
• No Prepayment Penalty
The following is the criteria for this program:
• Acquisition/Construction/Refinance
• Health Care/Medical Related Projects
• Property/Project Value: Minimum $5 million with no maximum value
• Must Submit Underwriting Documents for Approval
Our VRDB are AAA rated bonds secured by a Direct Pay Letter of Credit provided by our National Banks. The
underwriting process is almost identical to the typical process a borrower goes through when obtaining a
conventional construction and/or permanent loan however, rather than using the bank’s funds to fund the
loan, the loan is funded via the issuance of the VRDBs in the capital markets. This allows the project to be
funded at much lower rates based on the current 30-day LIBOR rate.
In example, in today’s interest rate environment, taxable VRDBs are trading at approximately 18 basis points
(0.18%). In addition, the borrower is obligated to pay the annual bank letter of credit fee estimated at 1.75%
to 2.25% for an all-in rate of 1.93% to 2.43%.
The rates and terms are negotiated with our Banks but the outcome is always much better than what the
bank would offer through conventional lending.
Our VRDB program also offers no pre-payment penalty. The VRDBs can be pre-paid at par with 30 days
notice. Non-Recourse loan structures are usually accepted.
For further information please contact Benny Spensieri – 813-391-1545 or [email protected] .
CRES Corp International, LLC - Development & Funding Options
13
Absolute Commercial Property Management, LLC For our Clients seeking professional property management services for their new construction or
property acquisition, Absolute Commercial Property Management, LLC, is available for the following:
• Retail/Office
• Apartments
• Hotels
• MHP/RV
Let Absolute Property Management, LLC, take over the daily business of management. We offer our
Clients the very best management services:
• Leasing & Management
• Tenant Communication
• Billing & Collections
• Record Keeping
• Account Report Preparation – Monthly-Quarterly-Annual
• 24/7 On-Call Maintenance Support
• Grounds Upkeep
• Site Inspections
For further information contact:
Dave Syraski - 727-744-3444 (Department Head)
Benny Spensieri - 813-391-1545 (Leasing & Sales)
CRES Corp International, LLC/Absolute Commercial Property Management
14
CRES Corp International, LLC
Commercial Real Estate Services - Financial Services – Management & Leasing Services
CRES Corp International, LLC (CCI) is a Commercial Real Estate firm offering brokerage, finance and
management services.
Our unique business model brings to our property owners and investors the means to get transactions
completed where all parties are satisfied.
CRES Corp International offers the Preferred Investor Program (PIP), where our Clients receive the
following benefits:
Property Owners
• No Exclusive Listing Agreement
• Property introduced only to Pre-Qualified Investors who:
• Have Sufficient Funds for RE Purchases
• Have Experience in Investing
• Make Reasonable Offers
Investors
• Receive Information on “Off-Market” Property
• Receive information on “Pre-Listed” Property
• Minimal Competition
• Great Price on their RE Purchases
CRES Corp International specializes in the following commercial property:
• Apartments
• Hotels
• MHP/RV
• Office Buildings/Complexes
• Medical Offices & Centers
• Vacant Land (Development)
For further information contact Benny Spensieri – 813-391-1545 or [email protected]
CRES Corp International, LLC
