1311 US Hwy 92, Auburndale, FL 33823 · Commercial Real Estate-Development-Financial Services 1228...

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Benny Spensieri, Managing Partner

CRES Corp International, LLC

Commercial Real Estate-Development-Financial Services

1228 E 7th Avenue, Tampa, FL 33605

813-391-1545 [email protected]

www.CRESCorpLLC.com

Charbel Joseph, Managing Partner

C-J Group, LLC - The Joseph Group

Commerical-Residential Development

2525 Harrodsburg Rd, Suite 105 Lexington, KY 40504

859-523-8541 [email protected]

www.JosephGroupLLC.com

1311 US Hwy 92, Auburndale, FL 33823

https://email17.godaddy.com/search.php

https://goo.gl/maps/vCHM7sooyV82


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Statement of Confidentiality and Disclaimer

CRES Corp International, LLC has agreed to represent Happy Days Enterprises of Polk County, the Owner of

the Property located 13301-1311Hwy 92 W, Auburndale, FL 33823, with the marketing and sale of said

Property. No contact shall be made directly to the Owner, or any associates to Owner, by any prospective

purchaser or agent of purchaser regarding said Property.

This brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly

reserves the right, at its sole discretion, to reject any or all expression of interest to purchase the Property

and expressly reserves the right, at its sole discretion, to terminate discussions with any entity at any time

with or without notice. The Owner shall have no legal commitment or obligation to entity reviewing the

brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a

signed purchase agreement on terms acceptable to the Owner, at Owners sole discretion. By submitting an

offer a prospective purchaser will be deemed to have acknowledged the foregoing and agrees to release the

Owner from any liability with respect hereto.

The enclosed materials are being provided solely to facilitate the prospective purchaser’s own due diligence

for which the purchaser shall be fully and solely responsible.

Neither CRES Corp International, LLC nor the Owner make any representation or warranty, expressed or

implied, as to the accuracy or completeness from the information contained herein, and nothing contained

herein shall be relied upon as a promise or representation as to the future performance of the Property. This

brochure may include certain statements and estimates by CRES Corp International, LLC Agents/Associates

with respect to the projected future performance of the Property. These assumptions may or may not be

proven to be correct and there can be no assurance that such estimates will be achieved. Further, CRES Corp

International, LLC disclaims any and all liability for representations or warranties, expressed or implied,

contained in or omitted from this brochure, or any other written or oral communication transmitted or made

available to the recipient. The recipient shall be entitled to rely solely on those representations and

warranties that may be made to it in any finale, fully executed and delivered, Purchase Agreement between

it and the Owner.

The information contained herein is subject to change without notice and the recipient of these materials

shall not look to the Owner or CRES Corp International, LLC, nor any of their officers, employees,

representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients

of this brochure are advised and encouraged to conduct their own comprehensive review and analysis of the

Property.

Prospective Purchaser understands and agrees that all dealings concerning the above opportunity will be

handled through CRES Corp International, LLC.

Prospective Purchaser ____________________________________Date____________________ Print

Name________________________________

Address__________________________________________________Phone #______________________

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Contents

1. Property Introduction………………………………………………………………….…….4

2. Project Introductions – 140-Bed ALF-Memory Care…………………………….6

3. Financial Projections……………………....………………………………………….……..7

4. Construction Budget…………………………………………………………………………..9

5. Photos…………………..……….………….…………………………………………...………..11

6. Demographics……………….…………………………………………………………………..12

CCI Development Funding Options…………………………….………………….……………….……..13

A. Build-To-Lease Program

B. Variable Rate Demand Program

C. Foreign Investment Funds - BTL Immigration Law Firm - EB-5

Construction & Development Services….…………………………………………………….………..18

CRES Corp International, LLC…………………………………………………….…….………….………..19

Auburndale, FL – 30-acre Site – Commercial/Industrial/Multifamily

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1. Property Introduction

This project incorporates an assemblage of 4-8 contiguous lots that constitute 30-acres MOL, with the

core properties contributing 26-acres MOL.

Currently the property is an operating 128-sp MHP/RV/SFR, known as “Happy Day” MHP/RV Resort,

which also includes 18 homes that are leased.

Note: There are no leases in place. Residents are on a month-to month rent schedule.

Zoning: Properties are zoned Commercial/Industrial and Residential, allowing for a multitude of

development opportunities, to include:

Assisted Living/Independent Living

Medical Facility-Offices

Apartment Complex

Retail Shopping Center

Manufacturing/Warehouse/Distribution Center

Impervious Surface Ratio: .60

FAR: .25

Minimum Setbacks: Side 15, Rear 20,

Maximum Height: 50 ft

Healthcare: This Report includes the development of a 140-Bed Enhanced Independent Living. The

Enhanced IL offers all the amenities of Assisted Living and Memory care. The proposed development

includes 70 AL beds and 70 MC units.

Medical: It is estimated the IL will occupy approximately 8-acres, leaving approximately 22 acres

available for further development. We have included the development of medical facilities and offices to

accommodate the IL residents as well as the residents within the surrounding area.

Retail: There is approximately 1600 ft of Hwy 92 frontage offered that would perfectly accommodate a

retail strip center with outer parcels available for restaurants and a bank.

Hospitality: Outer parcels are available for self-standing restaurants and a hotel or motel.

Assisted Living in the area: There are four ALF’s located within a 5-mile radius from the subject site –

Spring Haven Retirement Community, Lake Alfred ALF, Southern Gardens ALF, and Lake Howard Heights

ALF. These facilities accommodate 50-120 residents. Spring Haven offers memory care and independent

living services.

Hospitals in the area: Winter Haven Hospital is located approximately 5.5miles from the site.


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Current Use: Currently the property is a functioning income producing MHP/RV/Multifamily park

(“Happy Day”) that includes 128-spaces for mobile homes and RV’s and 18 rented residential homes.

The current status of the park business is:

Occupancy: 60% (approximately)

Gross Revenue: $351,852

NOI: $191,000 (Approximately)


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2. Project Introduction - 140-bed Assisted Living -Memory Care Facility

The Proposed Development Project (PDP) indicated for the subject Property is a 140-Bed ALF-Memory

Care Facility consisting of 70-ALF-Beds and 70-Memory Care units.

This Proposed Development Project Includes:

A. Assisted Living Facility-Memory Care

70-bed ALF

70-Unit Memory Care

31,800/htd sf

2-Story

A zoning change would be necessary for this type of development. The owner of the property is an

experienced electrical engineer with involvement in the construction industry and has consulted with an

attorney who specializes in zoning and the consensus is a zoning change to permit a health care facility

is feasible.

Assisted Living in the area: There are four ALF’s located within a 5-mile radius from the subject site –

Spring Haven Retirement Community, Lake Alfred ALF, Southern Gardens ALF, and Lake Howard Heights

ALF. These facilities accommodate 50-120 residents. Spring Haven offers memory care and independent

living services.

There is a current demand for ALF/Memory Care beds as Florida is 20% short on supply. That number

remains stagnant as the population of over 60 years old becomes greater.

The ALF per bed rate in this area is between $2800-$4000/bed (ALF) and $3200-$4500/Memory Care

Unit. However, for the purposes of this Report, it is indicated the ALF will charge $3800/bed, Memory

Care $4500/unit.


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3. Financial Projections – ALF-Memory Care

Location: Located on Hwy 92, with over 1300 of Hwy frontage, this property is ideal for a multitude of

development opportunities. It is anticipated the ALF component will require approximately 6-acres of

the 30-acres that is available, leaving the additional property for further development that may include

medical, retail, hospitality and multifamily.

Project: Proposed Development – Phase I - 2-story, 140-Bed, 31,800 sf Assisted Living Facility/Memory

Care situated on 6-acres.

Property Description: Parcel ID: 25 28 10 000000 041110, 25 28 10 000000 041130, 25 28 10 000000 041150, 25 28 10 000000 041100, 25 28 10 000000 041030 Zoning: Commercial-Industrial-Multifamily – FLU – RS, BPL-2, IND

Land Price: $4,500,000 The following is based on 95% Occupancy in Year 5 of Ownership and after three years of business operation, after construction completion, when the ALF would be considered to be fully seasoned. Projected Gross Income: $6,278,160 Projected Expenses: $4,130,844 Projected NOI: $1,729,348 Projected Debt Service: $584,238* Projected BTCF: $1,145,500

Projected Cap Rate: 12.74% Cost Basis/7.0% Resale basis

Projected Cash Return: 10.82% (with equity) 33.74% (Before Taxes)

Risk Factor: Medium


http://mfr.propertykey.com/imapp/pages/system/public/extlink.html?type=AS&upin=US12105102825000000041110






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*Debt Service based on initial construction loan utilizing VRDB bond structured financing on a loan

amount of $10,181,250 with 2.5% Interest Rate amortized over 25-yrs. 3-yr Balloon.

When Construction loan comes to term it is replaced with a permanent HUD structured loan on the

$9,608,985 loan balance with a 4.5% Interest Rate amortized over 30-yrs, 35-yr balloon.

Project Costs –

$4,500,000 Land Cost,

$11,000,000 Construction Costs (Hard/Soft/Holding, Property Prep/Infrastructure/Site Work/Paving)

$682,250 - Closing Costs/Finance Points

Total Costs: $13,982,250

Initial Investment = $3,393,750


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20-Jan-16

PHASE I

25,200 sq/ft _____Rooms 140-Beds 165/sf 4,158,000$ 0%

4500 sq/ft Lobby-Office-Rental Space 150/sf 675,000$ 0%

2100 sq/ft Cafeteria/Restaurant/Eqmt 246/sf 516,557$ 0%

_____ sq/ft Other -$ 0%

Site Work 600,000$ 0%

Parking (Surface) 88,000$ 0%

Parking (Stuctures) -$ 0%

Elevator 175,000$ 0%

TOTAL 6,212,557$ 0%

ESCALATION CONTINGENCY 124,251$ 2%

HARD COST CONTINGENCY 310,628$ 5%

TOTAL HARD - PHASE ONE 6,647,436$ 0%

Real Estate Taxes 1,200$ 0%

Bonds 62,126$ 1%

Permits & Licenses & Fees 62,126$ 1%

Arch, MESP, Struct, other consult 1,242,511$ 20%

Development Costs @ 8% 621,256$ 10%

Construction Mgmt. Fee@8% 621,256$ 10%

Accounting/Legal 124,251$ 2%

Zoning & Condo Docs 124,251$ 2%

Finance & Closing Costs 248,502$ 4%

Pre-opening Expense 50,000$ 0%

Insurance 186,377$ 3%

FFE/OSE 497,005$ 8%

Lease Commissions -$ 0%

TOTAL SOFT - PHASE ONE 3,840,860$ 0%

10,488,296$ 0%

Soft Cost Contingency 524,415$ 5%

TOTAL HARD & SOFT - PHASE ONE

Tampa ALF/Memory Care

%

PHASE ONE HARD COSTS

PHASE ONE SOFT COSTS

4. Construction Budget

The Proposed ALF Development factors an overall hard cost of $165/sf for the vertical structure. The

utilization of our cost saving Fully Integrated Structural Building System (FISBS) there would be additional

savings on construction costs and completion time. Our Development Team offers the utilization of Steel

Frame-Aerated board structures and/or Precast Concrete structures that are cost effective and time

efficient and add an overall reduced cost of from 10% on up, depending on the project size.


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ALF-IL-Memory Care

)


Retail-Restaraunts-Hotel

Medical Facility-Office

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5. Demographics

Demographic Overview For A 10 Mile Radius from Subject Property*

Persons 291,867 Families 76,427

Households 111,699 Persons Per Household 2.6

Percent Children 23.75 %

Source: 2010 Census / US Census Bureau

House Median Year Built 1978 Per Capita Income $21,417

Average Home Value $112,437 Average Household Income $43,480

Average Rent $894


http://www.census.gov/2010census/

http://www.census.gov/2010census/

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Source: 2013 American Community Survey, 5 year estimates / US Census Bureau

http://www.census.gov/acs/www/about_the_survey/american_community_survey/

http://www.census.gov/acs/www/about_the_survey/american_community_survey/

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CCI Project Development Funding Options

A. CCI Build-Buy Program

CRES Corp International is offering a program to our Clients who are seeking to expand their business

operations through development and acquisitions, by supplying development services, construction funds

and providing a lease with an option to purchase or a sale of the completed structure and land upon the

granting of Certificate of Occupancy.

We will consider the following properties:

Health Care/Medical

Multi-Family/Mixed Use

Hospitality

Office/Retail

The following is the criteria for this program:

Property/Project Value: Minimum $10 million with no maximum value

Client must have field experience

Property must be owned outright with no attached liens or;

Property must be in contract, option or lease

Minimum 10-yr lease with 5-yr Options or Purchase (Upon Completion)

Lease Deposit Required

Must Submit Underwriting Documents for Approval

We Build-You Buy!

We bring the property and project to our Client who contracts to lease or purchase the completed project.

The sale is consummated upon receiving the Certificate of Occupancy.

The Build-to-Buy program offers our Clients the opportunity to place all of development into our hands while

receiving a new building and business in the end.

For further information please contact Benny Spensieri – 813-391-1545 or [email protected] .

CRES Corp International, LLC - Development & Funding Options

mailto:[email protected]

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B. Variable Rate Demand Bond Funding

CRES Corp International offers our Clients the opportunity to receive low rates and low down payment loan

structures for their development and acquisition through our Variable Rate Demand Bond (“VRDB”) funding

program:

95%-75% LTV/LTC

2.25%-3.5% Interest Rate

25-30 Year Amortization

Recourse/Non-Recourse

No Prepayment Penalty

The following is the criteria for this program:

Acquisition/Construction/Refinance

Health Care/Medical Related Projects

Property/Project Value: Minimum $5 million with no maximum value

Must Submit Underwriting Documents for Approval

Our VRDB are AAA rated bonds secured by a Direct Pay Letter of Credit provided by our National Banks. The

underwriting process is almost identical to the typical process a borrower goes through when obtaining a

conventional construction and/or permanent loan however, rather than using the bank’s funds to fund the

loan, the loan is funded via the issuance of the VRDBs in the capital markets. This allows the project to be

funded at much lower rates based on the current 30-day LIBOR rate.

In example, in today’s interest rate environment, taxable VRDBs are trading at approximately 18 basis points

(0.18%). In addition, the borrower is obligated to pay the annual bank letter of credit fee estimated at 1.75%

to 2.25% for an all-in rate of 1.93% to 2.43%.

The rates and terms are negotiated with our Banks but the outcome is always much better than what the

bank would offer through conventional lending.

Our VRDB program also offers no pre-payment penalty. The VRDBs can be pre-paid at par with 30 days

notice. Non-Recourse loan structures are usually accepted.

For further information please contact Benny Spensieri – 813-391-1545 or [email protected] .



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C. Foreign Investment Funds

CRES Corp International is working in accordance with BTL Immigration in offering our Clients a means

to obtain foreign investment funds to be used for their projects and acquisitions.

Our Company has foreign Investors who invest their funds in U.S. real estate acquisitions and business.

Our investors are sole investors who participate as Joint Venture or Equity Stake partners, providing

capital for our Clients projects and earning a return on their investment.

Some of our foreign investors contribute capital as a means to obtain U.S. citizenship.

One of the more popular government programs is the EB-5 Immigrant Investor program that provides a

means for foreigner to obtain U.S. citizenship through their financial contribution into U.S. investments.

The EB-5 program introduced by Congress in 1990 as a means to stimulate the U.S. economy by

providing a path to obtain funds to be used by investors who would provide job creating opportunities

with the use of the funds. The EB-5 funds are obtained by foreign investors seeking to obtain visas and

become U.S. citizens.

The minimum capital investment, cash or otherwise, required by the foreign investor is $1,000,000, or

$500,000 if the area the project is located is determined to be a rural or high unemployment area.

The foreign investment funds must be used for a commercial enterprise that is established after

November 20, 1990 or established on, or before, November 29, 1990 if:

1. The property/business is purchased and the existing business is repositioned in such a way that

a new commercial enterprise is created

2. The property/business is expanded to create a 40% increase in the net worth or number of

employees

The Commercial Enterprise is a ”for-profit” business that includes, but is not limited to:

A Sole Proprietorship

Partnership

Holding Company

Joint Venture

Corporation

Publicly or privately own Business Trust or Entity

The commercial enterprise must create a minimum 10 full time direct or indirect jobs within a time

frame mandated by the U.S. government.

The above offers a simplified explanation of the EB-5 program. Please visit www.uscis.gov/eb-5, or

contact DK Kim, Attorney for BTL Immigration, for a detailed explanation.

Dohyun “DK” Kim, Attorney at Law, BTL Immigration, 5401 S Kirkman Rd, Orlando, Fl 32819

407-227-8465 or 813-789-8668 - [email protected]


http://www.uscis.gov/eb-5


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Student Visa & Other Immigration Services

CRES Corp International and the BTL Immigration Law firm has relationships with foreign nationals in

China, South America, France and Australia. Our relationships include those who are seeking permanent

or temporary access to the U.S. as Investors, Students or Workers.

With offices in Orlando and Brazil, BTL Immigration is able to assist our foreign clients with obtaining the

appropriate visas. CRES Corp International provides our Clients with the investment opportunity.

For our Education Institution Clients seeking students to fill their seats, we offer access to our available

visa programs and foreign national students.

For further information please contact:

BTL Immigration

5401 S Kirkman Rd

Orlando, Fl 32819

Dohyun “DK” Kim, Attorney at Law (Bilingual – Korean)

813-789-8668

[email protected]

Elana J Laverty, Attorney at Law (Lic. In MA)

716-307-4513

[email protected]

Francis J Brink, Attorney at Law (Bilingual – Spanish)

407-227-8465

[email protected]

Erica Fernanda Teixeira , Attorney at Law (Brazil Office)

International Business & Trade Law

407-227-8465

321-594-0774

[email protected]






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C-J Group, LLC - Development Services – Project Planning, Organizing & Management

CRES Corp International is working in accordance with The Joseph Group, a Development firm with over

30years experience, based in Lexington, KY. Both organizations have combined efforts to produce

construction and development services from inception through completion.

Property/Project Offering

Predevelopment Services – Planning, Projecting, Budgeting, etc.

Architecture – Site Plans, Structure Floor Plans, Renderings, Designs

Financing Arrangement

Construction Management

Leasing, Management, Sales

Health Care/Medical

Multi-Family/Mixed Use

Hospitality

Office/Retail

For further information regarding construction and development contact:

Charbel Joseph: 859-225-0901, [email protected]

Benny Spensieri: 813-391-1545, [email protected]




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CRES Corp International, LLC

CRES Corp International, LLC (CCI) is a Commercial Finance and Consulting Company that specializes in

health care and medical acquisitions and development. CCI provides for their Clients the means to

obtain funding for their various Real Estate projects to include:

Construction & Development Project Planning

Property Conversion and Repositioning

Investor Syndicating & Joint Venture Structuring

Medical/Health Care Property Management

Financial Arrangement & Consulting

Business Start-ups and Expansions

Primo Sports SMART Centers -Sports Medicine & Training Centers

To assist our Clients with their development projects and acquisitions we offer affordable financing

alternatives to conventional financing methods:

Variable Rate Demand Bonds

Industrial Revenue & Municipal Bonds

Build-to Lease Program

Foreign Investment Funds

Joint Venture/Equity Partnership Arrangements

Government Subsidy Assistance

Fully Assumable/No Prepayment Penalty

Our goal is to bring our Clients the lowest interest rates and best leverage on their purchases and

projects.

Our Development Team consists of licensed and bonded professionals that utilize the most recent

sustainable technology in their construction, offering considerable savings in construction costs and

costs over time.

We will consider the following properties and projects:

Health Care/Medical

Offices

Retail

Schools/Universities

Hospitality

For further information contact Benny Spensieri – 813-391-1545 or [email protected]


1311 US Hwy 92, Auburndale, FL 33823 · Commercial Real Estate-Development-Financial Services 1228...

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