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TRADEWINDS ISLAND GRAND & RUMFISH RESORT ACQUISITION

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Off-market acquisition

Transaction

Acquisition and management of one of the largest resort complexes in Florida (759 units on more than 30 acres of oceanfront beach)

In-place Cash on Cash Yields from Operating Hotels

  • 15% ROI In-place on temporary low performance of hotel

  • 20%+ stabilized ROI to equity

  • Rooms just renovated- negotiated to be at seller's cost

Timeshare Receivables Paper

  • Approximately 20% IRR

 

Significant Future Potential from Land

  • Acquired vacant land on site with rights to develop several hundred more units

  • Bought asset at temporary low point due to red tide effect on business

  • Reduced operating expenses by several million per year through active management

  • Approximately 30% IRR on hotel investment

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