Contact:    Andrew Shook e: andrew@brightlightcre.com  p: 919.659.5CRE (5273)

Senior Loan Request: $10,500,000
66% LTC - 51% LTV 

Appraised Value: $20,600,000

Appraised By: HVS Orlando

appraisal Date: 11 March 2017

Subject Property

227 Key  Beachfront Hotel Redevelopment

Treasure Island Hotel

2 Parcels:

2025 South Atlantic Ave
Daytona Beach Shores, FL

2037 South Atlantic Ave
Daytona Beach Shores, FL


Property Type:  Hotel

Transaction:  Acquisition

Sponsor: Jaymor Group

Flag: Hyatt Regency (pending)

Management Company:  Interstate Hotels & Resorts

Property Class:  Class A as completed

Metro Area:  Daytona Beach, FL

MSA Rank:  Deltona-Daytona Beach-Ormond Beach, FL Metropolitan Statistical Area - #90

Population:  ~623,000 | +5.60% growth

 

 

Requested Loan Amount & Structure

CAPITAL STACK
PURCHASE PRICE





Senior Loan Request $10,500,000
Contract Price $11,500,000
Seller Financing* $3,500,000
Concrete Repairs** $4,500,000
Buyer Deposit $900,000


Additional Buyer Equity $1,100,000








$16,000,000

$16,000,000





REQUESTED LOAN STRUCTURE


Senior Loan Request $10,500,000


LTC 65.6%


Appraised Value $20,600,000


LTV 51.0%


Term 1 year


Extensions 2 @ 6 months each


Recourse Negotiable







Exposure



Loan PSF Structure + Land $66


Loan PSF Land Only $97


* Seller Financing
$3,500,000 to be secured by a $1,500,000 first mortgage lien on the Sunny Shore parcel located at 2037 S. Atlantic Ave., Daytona Beach Shores, Florida and a $2,000,000 second mortgage lien on Treasure Island  (2025 S. Atlantic Ave., Daytona Beach Shores, FL). The duration of the seller financing note will be for 24 months at a rate of 4% per annum.

**Concrete Repairs
Seller currently repairing concrete balconies on existing structure that were previously damaged. Purchase contract calls for Buyer to reimburse Seller for cost of concrete repairs.

 

Business plan

  • Acquire Existing land and structure
  • Complete Structural Repairs
  • Finalize Hotel Flag
  • Secure Construction Loan
  • Payoff Bridge Lender

Transaction Summary & Historical Timeline:

  • 2.5 Acres
  • 227 keys
  • 160,000 sf
  • 11 story beachfront hotel
  • 300 feet of beach frontage
  • Timeline
    • Constructed in 1974 as an upper-scale resort.
    • Addition of penthouses, conference and banquet facilities.
    • Was a top resort in the area; a place to “see and be seen”.
    • Enjoyed tremendous success for decades.
    • Sold to high-profile area developers, Bray & Gillespie.
    • Sustained substantial damage due to hurricanes in 2004.
    • Property fell into legal and operational difficulties
    • Property ceased its operations
    • Hotel site and associated properties for sale in 2016
    • Jaymor successfully negotiates with owner (bank) to purchase hotel site and all other parcels for below market value
    • May 2016 - Restoration work commences on hotel’s structure. 
    • Currently in REO portfolio of current lender, RAIT Financial Trust
  • Jaymor found the opportunity compelling
    • Developed full business plan
    • Secured Hyatt Regency Flag
    • Secured International Hotel & Resort as management company

 

collateral

 A first mortgage lien on the real property located at 2025 S. Atlantic Ave., Daytona Beach Shores, FL together with all improvements on the property (the “Mortgaged Premises”), a security interest in all personal property situated on the property and owned by the Borrower. Second collateral mortgage on the Sunny Shore parcel located at 2037 S. Atlantic Ave., Daytona Beach Shores, Florida.

 

key TRANSACTION dates

  • Contract Hard Date:  The contract is currently hard.
  • Closing Date:  May 11, 2017

 

All Entitlements / permitting in place

 

Bridge lender takeout

  • Construction Lender

 

Supporting Documentation AVAILABLE:

  • Full Due Diligence Files
  • Current Appraisal from HSA
  • Request access via email: andrew@brightlightcre.com

Sponsor - Jaymor Group

Jaymor Group Website

SUMMARY

• Real estate Acquisitions, Development and Asset management
• Specialists in the multifamily sector and high-quality student properties
• Canadian and U.S. developments include: multifamily, student, condominium and resort properties • Head Office in Ontario; Asset and Property Management based in Orlando, Florida
• North American portfolio includes over 3,000 apartment suites
• Over $500 million of real estate projects throughout the U.S. Sunbelt region
• Expertise in acquisition, development, construction and project management

COMPANY STRATEGIES

The company’s operating and investment mandates and activities include:

• Capitalize on existing value opportunities within the multifamily asset class • Utilize assets for real estate-backed investment funds and partnerships
• Identify unique development and redevelopment opportunities
• Joint-ventures

• Customize real estate investment opportunities for either domestic or foreign interests
• Actively manage portfolio of assets via proprietary management platform
• Continue to grow our operations through acquisitions and development activities, as well as new global partnerships and initiatives

DEVELOPMENTS

• Development divisions and activities in USA and Canada
• Fully integrated land development, design and construction management divisions
• Projects include luxury condominiums, townhomes, waterfront recreational and resort properties • Planned and proposed North American developments valued at close to $1 Billion