Update on 316 N Ocean, 322 N Ocean & 1238 Lainge
December 11, 2018
On 316 Ocean, 322 Ocean & 1238 Lainge- 316 & 322 Ocean have two interested parties returning to review an offer to possibly buy the first 2 of 3 lots in this PPM property group.
If we sell those in the $7.5 M range likely by year end time - that will pay off the Senior Lender and leave us with the last lot -1239 Lainge St - Free & Clear for the LLC Partners. These lots are getting a lot of attention now because they are fully entitled with approved zoning and building site plans approved and the key 6 month busy season about to start!
YOUR minimum return pay out here is 12% Guaranteed annualized return as protection here. Also, we haven’t sold these lots as is yet but could do so at a lower price and pay everyone off at just the minimum return. However, it is better for all to receive their maximum 14% to 16% returns by us building them if they don’t sell soon. If they don’t sell by year end we will build all 3 . On this block built homes sell at much higher multiples and faster. Profits for you will be much higher - and we will be able to pay investors a full 14-16% rate of return - which is accruing now.
Since this is near the last close ocean lot in Delray it will be an extremely desirable group of spec homes and a buyer will be eager to be able to move right in without the hassle of building it themselves from scratch.
Private Single Family near Ocean Town Homes like Lainge, 316 & 322 N Ocean Blvd go for over $900 + per “under AC square foot” in Delray Beach proper.
Cost to build each here is only $312 a foot vs $ 900 a foot to sell. Thus, the spreads are very strong so that investors are currently very secure and will get paid full 14% TO 16% accrued ROI.
We have arranged for construction budgets, financing and permits on all 3 and are ready to build all starting November.