INVESTMENT OPPORTUNITY

Transcription

1 INVESTMENT OPPORTUNITY LUXURY CONDOMINIUM PROJECT Sarasota, Florida I N VESTOR P R OSPECTUS PROMANAS 2433 OAK VALLEY DR., SUITE 500 PROMANAS.COM REAL ESTATE INVESTMENT ANN ARBOR, MICHIGAN

2 April 23, 2018 Dear Accredited Investor, I am extremely pleased to introduce our latest commercial real estate investment opportunity: a strategically located, to-be-built luxury condominium project in the exclusive market of downtown Sarasota, Florida with over $45M in pre-sold units! THE PROJECT Promanas has partnered with developer Core Development Incorporated ( Core ) for the purpose of constructing BLVD Sarasota ; an 18-story high-rise with 49 luxury residences, ideally located on the famed Boulevard of the Arts, in the heart of downtown Sarasota, in the culturally rich Rosemary District. Resting at the corner of Boulevard of the Arts and Tamiami Trail, the tower s architectural personality is expressed with floor-to-ceiling glass, sumptuous interior appointments, and advanced coastal construction and design. Units range from 3,550 SF to 5,250 SF and showcase panoramic waterfront and city views from truly expansive private terraces. Residents will enjoy unprecedented resort-style amenities, be served and accessed by dedicated lobbies, private elevators, and gated garage parking to ensure privacy and security. The price point is $520-$895/SF. All construction costs have been quantified, all approvals and entitlements to build the project are in place and we expect to break ground on the project in early June RETURNS AND RISK Investor returns from BLVD Sarasota are projected to be in the 20%+ per annum range and the project is expected to be built and sold out within 24 months. The risk profile is extremely low due to the fact that approximately 16 of the 49 units are pre-sold with 20% non-refundable deposits. Total sales in hand prior to our money being contributed will be $45M. Our equity will NOT be at risk until these sales are firm by April 30, Additionally, the developer is contributing $4M into the project (on the exact same basis as we are), which speaks volumes to their confidence. As Kevin Daves, Core CEO told us, Where else am I going to put my money to get this type of return? INVESTMENT DETAILS Promanas will be raising $16M of equity for the project. Shares are $250,000 each with many already reserved. Our equity raise will be paired with the $4M from Core, excess purchaser deposits* of approximately $4.5M, as well as a $79.5M loan to cover the total project cost of $104M. Our equity will be the first cash out once the construction loan has been paid off. Lender interest in funding this project has been very high, primarily due to market demand for this type of product (evidenced by the large number of presales) and the ideal location. Altos Groups, an experienced financial services company with a focus on commercial real estate, has been selected as the lender. * In Florida, a purchaser s non-refundable deposit in excess of 10% can be used by a developer toward the equity for a project. In the case of the BLVD Sarasota, all purchasers are required to put down 20% non-refundable deposits. As a result of the presales, we expect to have $4-$6M in excess deposits that can be used as equity in the project. PROMANAS 2433 OAK VALLEY DR., SUITE 500 PROMANAS.COM REAL ESTATE INVESTMENT ANN ARBOR, MICHIGAN

3 STRUCTURE All equity contributed by Core ($4M) and raised by Promanas ($16M) will be treated the same, with the only exception being that the Promanas Equity will be the first to be paid back once the construction loan has been paid off. Again, approximately 16 condo units will be sold with nonrefundable deposits before any equity is contributed. The total equity ($20M) will receive: 1) an 18% accrued, preferred return 2) 15% of profits in excess of the preferred return With projected sales in the $136M range, returns in excess of the 18% preferred return are expected to be in the $17M+ range. Using the low end of the projections, this would add another 13% in return over 24 months, above and beyond the 18% preferred return. Very conservative projections are for an overall 20% annual return, although the return is penciling out in the 20-24% range. One of the reasons I believe this deal to be incredibly solid is due to the presale situation. Another reason is that it s very difficult to get projects approved in this area and pent up demand will reward anyone who can get out of the ground and go vertical. I believe the project will be 100% sold out prior to completion. However, it s nice to know that we could survive and thrive through rental if we hit a downturn. Promanas will be accepting accredited investors, as defined by the U.S. Securities and Exchange Commission (SEC), on a first-come, first-served basis. Contingent upon your satisfactory review of our private placement memorandum (PPM), if you are interested in reserving space as a BLVD Sarasota investor, please let us know immediately. We expect this opportunity to fill quickly. Thank you for your prompt response. Please do not hesitate to call or with any questions. Sincerely, John Bogdasarian, CCIM PROMANAS 2433 OAK VALLEY DR., SUITE 500 PROMANAS.COM REAL ESTATE INVESTMENT ANN ARBOR, MICHIGAN

4 FINANACIALS INVESTMENT OVERVIEW Projected Investment Period Investor Capital Required $20M Months Minimum Investor Commitment $250,000 Projected Overall Investor Return 20%+ Preferred Return to Investors 18% Additional Return to Investors PROFORMA CAPITAL STRUCTURE Equity Required $24,500,000 $4.5M from excess purchaser deposits $20M cash equity ($16M from Investors, $4M left in by Core) Core equity subordinate to Investor equity Bank Financing (77% of Cost) $79,500,000 15% of Profits in Excess of the Preferred Return Total Project Cost $104,000,000 PROJECT SUMMARY Gross Projected Sales $136,000,000 Total Project Costs (includes cost of sales) $111,500,000 Estimated Net Profit $24,500,000 ALLOCATION OF PROJECTED NET PROFIT Net Profit $24,500,000 Preferred Return on $20M of Capital (18% - 2 years) $7,310,000 Profits in Excess of Preferred Return $17,190,000 Investor Capital Portion of Excess Return (15%) $2,578,500 Promanas Group Portion of Excess Return (10%) $1,719,000

5 MARKETS THE SARASOTA MARKET Known as the "Crown Jewel of Florida's Cultural Coast", Sarasota is a dynamic, growing, high income, upscale community on the southwest coast of Florida, a short 45-minute drive south from Tampa. Positioned on Sarasota Bay overlooking miles of barrier islands (the "keys"), the area features a subtropical climate and over 35 miles of beach front and many public beaches featuring the keys' famous white sand. Sarasota is also known for its rich and vibrant entertainment and arts culture including a professional symphony, ballet, opera, and more than 10 theaters and 30 art galleries. The Sarasota MSA outlook is positive with job growth anticipated to outpace the national level. Key factors include the area's tourism industry, an increase in high net-worth household income and spending, retiree inflows, a favorable climate and quality of life, excellent health care, good regional and local transportation and infrastructure. The area's per capita income is considerably higher than the state and national average, with the area particularly attractive to wealthy retirees. In summary, Sarasota is a growing, affluent community suitable for and supportive of BLVD Sarasota.

6 MARKETS THE CONDOMINIUM MARKET After surveying the existing residential market and planned projects in the area, the site is well suited for residential development. The nearby amenities and supporting retail make for an attractive environment. In addition, access to BLVD Sarasota is excellent, with easy access to major highways, downtown shopping, dining and entertainment, the Cultural district, the airport, and the many Sarasota beaches. Downtown Sarasota is a walkable community and many restaurants, entertainment venues and services can be accessed within a short distance; a true urban experience. Also, the many residential projects developed since 2000 indicate that downtown Sarasota is a growing and vibrant area. Although very few condominiums in the area are now for sale, these projects, as well as numerous other entertainment and cultural options, make downtown an attractive place to live. With the location near the waterfront and downtown, complete with the perpetual view corridor easement, the BLVD Sarasota s views are competitive with other projects in the area and provide a competitive advantage to many without similar height. With the lack of comparable units available for sale in the downtown area (see market review below), the timing is perfect for the introduction of BLVD Sarasota. S A R A S O T A D O W N T O W N M A R K E T A C T I V I T Y

7 MAPS DOWNTOWN SARASOTA AREA AMENTITIES (click links below for more info) ARTFUL NEIGHBORHOODS BEACHES SHOPPING & DINING ENTERTAINMENT & NIGHTLIFE

8 PROJECT OVERVIEW FLOOR PLANS (click to view)

9 THE DEVELOPER CORE Development, Incorporated was created in 1995 with the goal of development landmark real estate projects. Since that time, they have continued to fulfill this mission with projects such as the Ritz-Carlton, Sarasota and The Concession Golf Club and Residences. No matter what project CORE is working on, they are dedicated to providing their clients with un compromising excellence, innovation, and efficiency. CORE s diverse portfolio includes new construction, historic renovation and projects for the health care, hotel, single-family, and luxury home markets. The Blvd Sarasota virtual reality sales center on the site for pre-sale reservations is through Key Solutions Real Estate, Inc., Cotton & Company is the marketing company, and Imerza is providing virtual reality software for sales efforts. The architect and civil engineer is Stantec and the general contractor is BCBE Construction out of Naples, Florida.

10 FREQUENTLY ASKED QUESTIONS Does BLVD Sarasota pay out monthly or does the return accrue? BLVD Sarasota does NOT pay out monthly because there is no income while the building is being constructed. This is NOT passive income in the sense that you get a monthly distribution. It IS passive income in the sense you don t have to do anything. BLVD Sarasota should pay out mid to late Principal and accrued profit. Is the 18% preferred return annual? Or is it 18% over months? It is 18% annual and the 18% accrues until your capital has been returned. How does Promanas get paid? Promanas receives 10% of profits AFTER 100% return of investor capital, plus the 18% preferred annual return. Promanas also participates in developer fees, receiving 40%. On a deal this size, developer fees are substantial, about $3.2M in total. So, Promanas receives about $1.2M along the way over the 24-month construction period. As with all of our deals to date, we DO NOT bill for our time, flights, hotels, or other expenses. The developer fee should cover those expenses, plus office overhead, salaries, etc. Promanas has spent about six months on this deal thus far with multiple site visits, etc. How do I get PF4 share(s)? And, which deal is better? Read the PF4 Investor Prospectus, call or us and we'll get you going. As to which deal is better... Tell me, which of your kids is your favorite? Just kidding! They are both unique and I obviously like both deals or I wouldn t be doing them. I think PF4 might have more upside, but it s too soon to tell..

11 DISCLAIMER Shares will be offered and sold only pursuant to Private Placement Memorandum and only to accredited investors, as that term is defined in Regulation D promulgated under the Securities Act of An investment in BLVD Sarasota carries a high degree of risk. There can be no assurance that the stated investment objectives will be achieved. Investment losses may occur, and investors could lose some or all of their investment. This document contains forward-looking statements which include all projections and all statements other than historical fact. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of BLVD Sarasota which could cause actual financial results of BLVD Sarasota to be materially different from financial results expressed or implied by the forward-looking statements.

12 Promanas is a privately-held commercial real estate investment and management firm. We create investment vehicles designed specifically for accredited investors and manage these investments with tight controls. We attract and retain investors by operating with 100% transparency and following conservative investing practices. We have a proven track record and have consistently delivered substantial returns to our investors since our inception. Learn more about our offerings, visit promanas.com John Bogdasarian, CCIM President & CEO john@promanas.com Brad McFarlane, CCIM EVP & COO brad@promanas.com Eric McClelland, CPA CFO eric@promanas.com Laurel Office Park II PROMANAS 2433 OAK VALLEY DR., SUITE 500 PROMANAS.COM REAL ESTATE INVESTMENT ANN ARBOR, MICHIGAN