The Reserve at Chelsea Oaks and Pines at Lake Saunders


 

 

The Reserve at Chelsea Oaks and Pines at Lake Saunders

Tavares, FL

Residential Subdivision

Purchase

The property consists of two adjacent communities, 138 lots in Chelsea Oaks and 47 lots at Pines at Lake Saunders. The land for both properties was fully developed by a homebuilder and sold to an investment group as the investment basis in the land was not sustainable for the homebuilder to build and sell homes during the economic downturn. TRG negotiated an acquisition price to acquire the lots from the seller in a win-win scenario that allowed the seller to receive capital gains tax treatment on the sale and sufficient margin for TRG to be able to sell lots to builders on a takedown basis at today’s pricing.

Value Creation

TRG invested in community enhancements that included significant landscape upgrades, rectify deficiencies to ensure we were in compliance with the approved development plan and install new community signs to provide a strong sense of arrival. TRG hired a third party management company to ensure these communities are maintained to TRG’s highest standards. TRG is selling the 138 lots to a national homebuilder on an aggressive takedown schedule over 6 quarters. TRG is selling the 47 lots to two separate regional builders.

Total Investment: $4,200,000
Projected Timeline: 38 months
Original Projected ROI: 40%
Revised ROI: 24%