our margins are enhanced by Our vertically integrated model of development
the attraction of ArCOS BEACH is unrivaled real estate appreciation
Our vertically integrated model puts Arcos Beach and capital partners in a strong economic position with strong cash flows, IRR and equity values upon completion. We believe the market value of completed properties and cash flows support an internal plan to construct and own the condominiums, and the luxury hotel.
The anticipated net profits upon completion of the buildout of our gated residences, condos, luxury hotel and commercial retail space is $35,000,000. The anticipated gross annual cash flows from the condos, luxury hotel and commercial retail space is $7,800,000.
The capital needed to launch the development of Arcos Beach is $25,000,000. The anticipated capital needed to build, own and operate the condos, luxury hotel and commercial retail space is an additional $30,000,000. The combined anticipated equity value of these three real estate components if we build, own and operate the condos, luxury hotel and commercial retail space is $78,000,000.
At the end of the day, our vision is to secure $55,000,000 of capital from investment partners for the execution of our vertically integrated real estate model.
With execution of all phases and leveraging the $61,000,000 “As Is Value” of the Arcos Beach development parcel and $55,000,000 of capital, we anticipate building a niche real estate portfolio in beautiful Northwest Florida that delivers these economic benefits:
(1) $35,000,000 of net profits from the gated residential component with the 72 to 73 homesites,
(2) $8,000,000 of annual cash flows, and
(3) $48,000,000 of equity in the condo, hotel and commercial retail components in the portfolio.
As a reminder, 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. In addition, this is the last development parcel on this insanely popular beach destination with the best beaches in America. Let’s not fail to mention that a major commercial airport with direct flights from Nashville, Charlotte, St. Louis, Dallas, Houston, Austin, Atlanta, Memphis, Tulsa and Birmingham is just 20 minutes drive by car.
RESIDENces.
The gated residential element in our plan includes 72 to 73 homesites with gross lot sales of $43,000,000 with $15,000,000 of net profits. The Arcos Beach team is committed to construct the residential houses with expectations that doing so creates $20,000,000 of gross profits.
The vertically integrated model creates $35,000,000 of anticipated net profits.
condo & hotel
The condominium design includes 40,000+/- of prime property with 30 upscale units that will create $2,600,000 rental revenue annually. Upon completion of the 30 condos, the anticipated appraised value of the 40,000 square feet of space is $26,000,000.
The luxury hotel design includes 126 rooms and 40,000+/- of prime property producing long-term revenue and gross profits annually of $3,6000,00. Upon completion of the hotel, the anticipated appraised value of the 40,000 square feet of space is $26,000,000.
commercial
The commercial retail space design includes 40,000+/- of prime property that will command $40 per square foot and triple net leasing. Upon completion, the anticipated equity valuation of the 40,000 square feet of space is $26,000,000.
The commercial retail space is anticipated to deliver gross annual rental revenues of $1,600,000.