Summer Edition 2012
Commercial &Residential
Investing
Current Project:
Cumberland Harbour
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We are proud to announce our latest major development acquisition; Cumberland Harbour was acquired in late 2011 and is located on the intercoastal waterway in St. Marys, Georgia. We are very excited about our investment as this development is regularly described as “a premier community for the South”. Cumberland Harbour is a gated, waterfront community that offers privacy and prestige. It encompasses 1,012 acres and lies along the western section of the eastern coastline. The development includes the 2004 HGTV dream home and is a highly sought after luxury subdivision due to its deepwater access and close proximity to the Atlantic Ocean.
/HGTV
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Existing amenities include an Entertainment Pavilion for social gatherings and cookouts, Activity Lawns for children, Gym, Aerobics Room, 6 Har-Tru Tennis Courts, Jr. Olympic Pool, Adult Soaking Pool, Children’s Pool with Water Features and an Aquatics Center.
Planned amenities include a recently permitted marina along with dry-stack vessel storage facilities and boat launching will also be available in the near future. The marina was permitted in February 2012 after 9 years of permitting issues. The permit includes docking for approximately 400 boats (dry stack) and 400 wet slips. This is the largest permitted marina in the state of Georgia. These amenities take into consideration every possible desire for recreation and relaxation. Boaters and all who enjoy nature and water will enjoy this paradise. Cumberland Harbour maintains the natural beauty and balance of the surrounding landscape and offers a limited number of home sites. Thickly wooded nature and beautiful lake view home sites are offered as well as magnificent eastern-view home sites,
which look out towards Cumberland Island and on to the Point Peter Creek and St. Marys River. Other views include the Intercoastal Waterways and the Atlantic Inlet. Properties located on Point Peter Creek are permitted to have their own personal docks. Three miles west of Cumberland Harbour lies historic St. Marys, Georgia which was named the “Number 1 Small Town in America” by Money Magazine. Due South are Amelia Island and Fernandina Beach, Florida, where countless shops, restaurants and waterfront activities can be found. 35 minutes away is Jacksonville, Florida with diverse cultural offerings, pro sports, an international airport and premier medical facilities. Just north, along Interstate 95, are the beaches, golf, history and recreational delights of Georgia’s Golden Isles
- St. Simons Island, Little St. Simons Island, Sea Island and Jekyll Island. Eastward, across the marsh from Cumberland Harbour, lies boating and fishing along the Intracoastal Waterway. Just beyond, is the wilderness and beaches of Cumberland National Seashore. No matter if you prefer recreation or relaxation, Cumberland Harbour is a place where you can breathe in and set a course for whatever you choose. In the next publication, we will share with you how this tax assessed appraisal of $19.75m project was acquired for only $2.15m and the progress to date. We appreciate the investors who participated in this project with us. By: Coilin McManus Atlantic Development Group
From the desk of Rick Melero
One of the best ways to buy Commercial Real Estate Today!
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met with a very aff luent international investor a few years ago that owns about 28 hotels around the world. We were talking about a few of the projects we were working on at the moment (Which HE LOVED the NUMBERS!!!) and he was very impressed with our tactic. What I found most interesting was his confession later in our conversation that he too used this same tactic to purchase his last 9 hotels.
This international investor shared with me that he just purchased a note in default for $1.8M on a building that based on income is worth $8.5M. Still not convinced?
So here is a quick tip on the best way to buy commercial real estate right now!
1. You can get out there and make offers on non-performing
Buy a note that is in default: Any real investor and or investment group in Today’s economy has the opportunity to work with distressed first position note holders with non-performing asset(s). TODAY you can negotiate very solid deals based on true fundamentals (CASH FLOW). YES, both traditional and private lenders are starting to open up and entertain discounted offers to help offset some of their book losses due to the down market and lack of retail funding. The time to buy commercial real estate is now! Let me give you some perspective... One of my partners sold a hotel in the Orlando area about 15 years ago for $15M. The new owner who managed this asset was offered $150M for it about 5 years ago. Instead of cashing out, he took out a big loan to renovate the building and well... the rest is history. Another contact of ours just purchased the note in default for $5M. Not convinced?
One of the projects we completed a few years ago is a note in default for less than $5M with a value of over $12M in today’s market. Here are your options: commercial assets. Negotiate your deals and partner with equity investors to take down these great opportunities.
2. You
can join investment groups (like ours) with a solid track record and become one of the passive investors. Many everyday investors are taking their retirement accounts out of the stock market and putting their money to work with tangible commercial cash flow real estate. We have many clients taking their extra funds out of their 1.25% Money Market Accounts or CD Accounts and putting their money to work right now.
3. You can do nothing and watch everyone else get wealthy over the next 5 to 10 years.
I strongly urge you to go out there and make sound investment decisions. Buy or passively invest based on income and you will enjoy the benefits of building long term wealth. I wish you the best in your ventures. By: Rick Melero HIS Capital Group | Atlantic Development Group
Real Estate News:
: y e v r u S g in d n e L te Commercial Real Esta
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ccording to the annual report from the National Association of Realtors, economic activity closed 2011 with a moderately positive performance. Consumer spending kept a steady pace over the year. Corporate profits reached record highs, as companies continued to trim expenses. Businesses increased their spending by nearly 10 percent, and private payroll employment grew by more than 2 million in 2011. Exports grew at a healthy pace, as did imports. Even with no measurable change to the net position, the rise in international trade naturally brought additional demand for commercial properties. Regulatory and economic uncertainties, however, have been forcing companies to hold on to high cash reserves. Employment remained hampered and continued to require the addition of more than 4 million jobs just to recover the jobs lost during the harsh recession of 2008-09.Consumers embraced the end of 2011 and start of 2012 with a cautious sense of optimism. However, the direction of labor markets remained a concern, casting a long shadow over the economic outlook. Commercial real estate markets turned the corner in 2011. Demand stabilized and is expected to grow in 2012 for all property types. Vacancy rates declined and rents began rising. With growing households and a tight supply pipeline, the apartment sector is especially well positioned for 2012. Investment activity recorded a positive 2011.
Based on data from Real Capital Analytics, more than 13,000 major properties traded hands during 2011, totaling $205.8 billion in sales, representing a 51.0 percent increase from 2010.With corporate profits at record highs, major economic centers like Washington, D.C., New York, Boston and San Francisco were attractive investment targets. In addition, declining cap rates for trophy properties lured investors towards stable secondary markets, where returns proved more appealing. Against this backdrop, the National Association of REALTORSÂŽ conducted a national survey of commercial real estate members, focused on lending conditions. The results are based on 474 survey respondents. This commercial lending survey clearly illustrates that while the market is seeing some stabilization from 20102011, the lack of available financing is proving to be a large obstacle for many retail buyers. Because our investment firm primarily works with private investors, these obstacles only present opportunities. We feel the best way to capitalize on these down market conditions is to work together with likeminded entrepreneur investors willing to participate in a proven business model. Working together creates the leverage needed to acquire some of these incredible assets at deeply discounted prices. By: Luis Roque HIS Capital Group | Atlantic Development Group
Progress Report
We want to congratulate Mr. and Mrs. Sparks for their purchase of one of our 44 waterfront lots and building a beautiful custom estate on it. This stunning property will add so much value to our luxury community. This was truly a “win” “win” scenario where the buyer and developer/owners both came out on top. It is our personal aim to continue working towards building out the remaining infrastructure along with the marinas. We look forward to working with the Sparks in future endeavors.
Under Construction
Contact Us Passive Investors Tired of earning low interest rates in CD’s, Stocks or Bonds? Let us show you how to make your money work for you safely through income producing real estate. Please call (877) 452-6569 Option 1 for the Investor Relations Department or go to investor@hiscapitalgroup.com or access our website at www.hiscapitalgroup.com
Customer Support Do you have questions regarding your investment statements or online portfolio access? We have many resources available for you, so give our Support Department a call at (877) 452-6569 Option 4 or send your questions to support@hiscapitalgroup.com.
Win a Royal Caribbean Cruise! We are very fortunate to have grown exceptionally these last few years, so we have opened up some incredible opportunities to share with each of you by giving away (3) Royal Caribbean Cruises to the top (3) individuals who provide us the most names of friends or colleagues in the next (60) days. The steps are very simple and we will take care of the rest and update you on the referrals send our way. The cruises will take place over a (3) day weekend and more details can be provided by calling (877) 452-6569 Extension# 118.
The Bottom Line:
We provide everything you need! We provide you the education, research, maps, data, tools, opportunities, process, due diligence checklists, and contacts, along with personal, financial, and asset portfolio tracking and analysis to help you chose the right income-producing assets to add to your portfolio.
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