Florida Hard Money Deal - Close

670

30 deals

Yes

Port Charlotte

Florida

$8,000,000

$4,000,000

Background Summary:

The Project location is between Sarasota and Ft. Myers on Florida’s West Coast. The area is highly desirable as demonstrated by Allegiant Airlines investing $700M to create a 786-room resort called “The SunSeeker Resort” which resides next door to this property and opened 12/2023. The US Census Bureau raised Sarasota to #10 fastest growing city in the US with Ft. Myers jumping to #1. This Project is center stage between the two cities, only 30-minutes to each (one North, one South) on the 2nd largest inland bay in Florida, Charlotte Harbor.

DILAURA DEVELOPMENT, LLC (DD) purchased a series of parcels between 2019-2020 on Charlotte Harbor, in Port Charlotte which culminated into 14.5-acres of waterfront property that was appraised in 2/2022 at $4.2M in its raw land state and sold to Tarpon Waterfront Village, LLC (TWV) in 2023.

In April, 2023, TWV purchased the property of Charlotte Harbor Yacht Club (CHYC) for $4.95M. It is comprised of 5.8 acres of land across 3 parcels, bringing the total acreage to 20.3-acres. It includes a 15,500 SF building that seats 325 people, a 29-slip marina with submerged land lease through 2029 (renewable in 10-year intervals), a Coast Guard approved entrance with grandfathered dredge rights, and outdoor entertainment courts. The property was purchased just prior to bankruptcy at a steep discount to value and therefore required about $6.2M in various CapEx renovations and pre-development expenses including but not limited to, (100% new roof, 95% paint in/out, 50% new HVACs, 75% new kitchen appliances, updated electric, new 2nd sports bar/room, outdoor deck improvements, new entertainment courts, new marina docks, new marina electric, new rear yard landscaping, new pavers, among many others). This valuable asset is intended to be an amenity to the main project of developing a waterfront, condo campus.

Since then the property went through entitlement for a consolidation to a mixed use, commercial property with a PD. A third party appraisal was order by a lender and updated 3/2025 and valued the asset at $47M. Comparison properties ranged from $2.1M per acre to as much as $4.2M per acre. There is currently about $8M in total debt and another $1M in convertible, therefore there is about $38M in net equity.

The intent is to build 110-units of for sale condos and include membership to the CHYC built into the purchase price and the HOA fee of each unit. Each condo is 1,783 under air but totaling 2,264 SF all as 3BR | 2 BTH. Almost all units will face the open water as illustrated throughout the Executive Summary deck. The 60-unit buildings are 5-story over garage at the new FEMA 12’ first floor requirement. The campus has world class amenities as part of the Yacht Club including multiple family and adult only pools and golf cart paths to the beach area / 450’ fishing pier and a second path to the CHYC. There is also a planned Heath Center of another 15,000 SF which will include a full SPA, steam rooms, cards rooms, 6,000 SF gym, 2 golf simulator rooms, outdoor 18-hole miniature golf. Post construction of condos and health center, the marina will expand to upwards of 95 slips, doing so by building inland to avoid any regulatory objections. At a proposed average sales price of $899,000 per unit ($504 per SF) the condo units are the least expensive new construction, waterfront condos with deep water access in the State of Florida. At a hard construction cost of $420k per unit, therefore project is over a 2x equity multiple.

There is an option to increase the property by adding another +/- 24-acres of almost all waterfront property next door which would triple all unit counts (360-units of condos, plus 360-units of boat slips, plus 360-self storage/parking/boat storage units. This requires an additional $15M of capital for the acquisition of the land.

This due diligence package includes but is not limited to the terms sheet for the loan that will payoff this $12M hard money loan request. The $30M bridge is a pre-cursor to the $100M construction loan; however, the borrower is open to receiving offers from other lenders.