Flamingo Park Apartments LLC
Very Limited Equity Remains
Tidegate Capital recently acquired this mixed-use multifamily and commercial space investment opportunity located in West Palm Beach, Florida
This Property represents an exceptional opportunity to invest in a combination apartment community and commercial space building. Located in one of Florida’s premier cities, West Palm Beach, and less than 1/4 mile from Flagler Drive and the IntraCoastal Waterway this property is surrounded by numerous restaurant, retail and commercial options and higher-end residences.
Projected IRR for 3 year hold: 21-22% *
Preferred Dividend: 8% *
Cash-on-cash projected for holding period: < 5% *
-
This property will benefit from a substantial Value-Add program and much of the investor return may be realized when the property has been stabilized.
Courtyard
Rendering
Preliminary Projections
Return: 8% preferred dividend plus 70% of net profit upon disposition
Disposition expected circa year 3
Projected IRR: 22%
Cash-on-cash during holding period: Approx 7%
(50% Split on return above 20% IRR has been paid to investors)
Funding and Important Dates
-
Acquired: October 4, 2019
Cost: Approx $2,300,000 total project cost inclusive of:
-
$1,900,000 Acquisition price
-
Nearly $310,000 Capital Improvements to be made to include:
-
Full renovation of two units to “Condo Quality”
-
Exterior Improvements and landscaping for enhanced curb appeal
-
A/C Units
-
Kitchen and Bath Upgrades
-
Investor Equity: Approx. $800,000
Bridge Loan: Approx $1,500,000
Permanent loan implemented between years 1 and 2
Subject Property
Flamingo Park Apartments LLC presents a highly desirable combination of a 16 unit rental community and a 4-unit special purpose commercial building, which is zoned to be used as office space, workspace, storage, garage etc.
All apartment units are currently well below market; adding quality upgrades will significantly enhance rent potential.
Flamingo Park Apartments represents a classic value-add proposition as a result of its superb location in a vibrant and growing area of West Palm Beach, Florida.
Rental Market
The property offers tremendous upside as monthly rents are more than 20% below market for nearby renovated units of similar quality and finish. The property currently has 4 units along with 4 commercial spaces that are not generating revenue at this time. As leases turn over, Tidegate will implement strategic renovations and enhance the curb appeal with corresponding increases in rent.
Time Horizon
The holding period will be approximately 3 years, at which time disposition is expected.
Preliminary projections, subject to revision. Real Estate investing involves risk,
including the potential for complete loss of principal.
