Our Margins
This real estate portfolio we aim to build is the most envious of all real estate parcels in Northwest Florida.
A Rare Development Parcel With Strong Margins:
This is the last development parcel on this insanely popular beach destination with the best beaches in America. We have developed three distinct economic models and the margins are attractive across each model. The range of investment is between $65M to $145M with the three models of development.
The internal rate of return over a 7 year period using a discount rate of ten percent (10.0%) is just north of 16% with the high side IRR of 32%.
The Unrivaled Development Model:
We have three development models for this project with variances of capital needed, and cash flows. Model A, Model B and Model C.
Regardless the model chosen, Unrivaled Development Group as an Arcos Beach project partner brings about two very distinct financial advantages that extend to capital partners and all stakeholders. Arcos Beach will delivers an IRR that is 2 to 3 points higher than the typical commercial real estate project. In addition, our most ambitious model delivers an accelerated depreciable benefit of $49.7M on a $142M cost basis. This model assumes that capital partners retain all of the real property including the luxury residences.
[ Development Modeling - Three Considerations ]
Market Value, Cost Basis & Equity Value Upon Completion
Factors of Consideration Plan A Plan B Plan C
Anticipated Market Value: $304.5M
Investment Cost Basis Investment: $142.1M
Equity Value Upon Completion: $162.4M
Annual PreTax Earnings Upon Stabilization: $ 33.0M
Pre-Tax Earnings (Year One thru Four): $137.0M
[ Four Year Depreciation Benefit, Unrivaled Dev Group ] $ 49.7M
Pre-Tax Earnings (Year One thru Seven): $270.2M
[ Four Year Depreciation Benefit, Unrivaled Dev Group ] $ 49.7M
Historically High Real Estate Appreciation:
The real estate appreciation of Northwest Florida ranks it as the #1 real estate market over Las Vegas, Santa Barbara, New York, Miami, etc. when the agricultural lands are removed from the economic analysis. This real estate portfolio we aim to build is located in the hottest real estate market in America, and is positioned as the most envious of all real estate parcels in Northwest Florida. The convenient direct access into Arcos Beach from state Highway 98 with Highway 30A converging into our property makes this a dynamic opportunity.
Major Airport Within 20 Minutes of Arcos Beach:
Let’s not fail to mention that a Northwest Florida Beaches International Airport is a major commercial airport offering direct flights from Nashville, Charlotte, St. Louis, Dallas, Houston, Austin, Atlanta, Memphis, Tulsa and Birmingham is just 20 minutes drive by car.
our development strategy elevates the economic viability of arcos beach for everyone.
The Arcos Beach development team has a vision is to creatively capitalize the 72-73 luxury residences as a key component in our development with what we have defined as Economic Model C. In this scenario, our capital partners would provide $65M of investment capital, while we would secure $77,000,000 of outside capital from a 3rd party for the construction of and permanent ownership of the residences. The original investment partners providing the $65M would enjoy 14% of the $32M of annual rental income from the 72 residences. This revenue stream would limit the original investment partners capital contribution to $65M while creating additional annual pre-tax earnings of $4.4M. In this scenario we define a Economic Model C, there would be no property tax obligations to the original investment partners who provide the $65M.
The luxury residences in our development plan includes a $25,000,000 capital investment that brings into existence the Arcos Beach town center, gated residential community with 72 to 73 homesites.
Our team sees another long play opportunity where with additional capital, Arcos Beach and investors would own 100% of the luxury residences, condos, luxury hotel, and retail commercial space due to the long-term equity value and cash flows derived from our plan.
For details click here for a short slide show. Confidential details are available upon request if you click here.