NAI BLUESTONE REAL ESTATE CAPITAL INVESTS IN SOUTH FLORIDA MARINA AND HOTEL PORTFOLIO
NAI Bluestone Real Estate Capital, a Philadelphia based real estate investment bank and advisory firm, has invested in the Mangrove Marina and Sombrero Resort and Marina portfolio for $15,000,000 from one of South Florida’s largest, privately held community banks. The portfolio includes two operational marinas and a 124-key hotel and resort in Marathon Key and Tavernier Key, Florida. The acquisition was made on behalf of NAI Bluestone’s principal investment arm, Bluestone Equity Partners, and Summit Development, a Southport, CT based real estate development company. The NAI Bluestone/Summit Development partnership was formed in 2008 to focus on sourcing and investing in income producing real estate assets at distressed pricing in the South Florida market.
“This was a particularly challenging acquisition because we had to negotiate the terms without full knowledge of the previous ownership and close within a tight timeframe,” said Matthew McManus, chairman of NAI Bluestone Real Estate Capital. “As a result of our efforts on this transaction, NAI Bluestone and Summit Development have become preferred partners with the bank to help them resolve other problem loans in the South Florida market.”
Mangrove Marina and Sombrero Resort and Marina were formerly owned by Cay Club Properties, a Florida development company that purchased the portfolio 2007 for $34,000,000 and recently went into foreclosure on the properties with the bank. Mangrove Marina has 130 boat slips plus rack storage and boat yard facilities, while Sombrero Resort includes a 54-slip marina, 124 one-bedroom suites and eight detached villas. NAI Bluestone and Summit plan to rebrand and reposition the properties via aggressive marketing and physical improvements to the site.
“We see tremendous opportunities to reposition and improve these properties,” said Felix Charney, president of Summit Development. “We have spent the last 15 months looking at underperforming assets in South Florida and these two locations clearly stood out.”
The South Florida bank provided $13,850,000 million in non-recourse, fixed rate financing for 10 years priced at 5% amortized over 25 years. Summit and NAI Bluestone provided the remaining bridge equity for the acquisition.
“This portfolio represents a terrific investment for equity partners looking for opportunities in the South Florida market,” added McManus. “Given the strength of the portfolio and the impact of the capital improvements program, we expect to recover 100% our investment within the next two years and realize a 3-5 time multiple return on the equity investment the following three years,” said McManus.
