Ashford Lakes Estates

Ashford Lakes Estates

Ormond Beach, FL
Residential Subdivision

Purchase

The property consists of 77 single-family estate sized lots that are developed and located within the master planned community of Hunters Ridge. The property was originally purchased by a developer. After the project was developed, the housing market collapsed and only nine lots out of the 77 were sold, as the investment basis was not sustainable at the pricing that builders and retail buyers can afford to pay in today’s market. TRG negotiated an acquisition of the property at a price well below replacement cost.

Value Creation

TRG negotiated a seller financing structure (triggered only through lot sales) in which we were able to reduce our upfront capital requirement with friendly zero-interest debt. This type of low risk leverage for the finished lots allows TRG to sell lots within an anticipated 3-year horizon at pricing that is a win-win for the builders and our investors.  TRG has contracted to sell these lots to one builder who is acquiring lots on a scheduled take-down basis. This builder has a model home and a steady supply of spec home inventory in the community.

Total Investment: $2,200,000
Projected Timeline: 51 months
Original Projected ROI: 60%
Revised ROI: 58%

For more information, visit www.ashfordlakesormondbeach.com