Grand Navarre Beach Residential Development
Two partners own approximately 12 Acres of land in Navarre Beach, FL, located in Santa Rosa County about 15 miles east of Pensacola in the Gulf of Mexico. One of the partners (Steve) holds the title to the land, appraised to be approximately $17 Million. He owes about $4 Million on the property. The other partner (Tony), is a successful developer using proprietary technology to build 93 Strong Steel homes. These homes use a patented technology to ensure resistance to 260 mph winds (Category 6 hurricanes), they are fire rated, and are faster and cheaper to build than conventional methods.
2017 Hurricane season has been one of the worst on record with Harvey, Irma, and Maria making major damage to different U.S. coasts. The need to have a hurricane ready residential and commercial solution is a must for areas affected by potential flooding and hurricane impact. Tony has over forty years of experience on building commercial, residential, and government buildings, both in the U.S. and internationally. His experience is backed by a number of projects directly with the World Bank, and International Monetary Fund (IMF) as well as private international companies. Due to a failed attempt by Tony to start a new venture in 2007 with the former governor of Florida, Tony no longer has the cash position to take on this project on his own.
Tony owns 100% of IBS Hexaport International, which signed a multi-million dollar contract with a Zambia customer to build a large number of homes. Positive cash flow is expected from that contract alone in the coming years. A larger deal is on the making with an Arabia Saudi firm.
Steve decided to hold to the property and do a joint venture with Tony through IBS Hexaport to develop his land, but time is of the essence, since Steve has offers on the table from other developers to buy the land and develop it on their own. Homes will be sold for prices ranging $750,000 to $1.2 Million, and some of the homes will be retained for lease. Current average lease rates are $3,500 per week as this is a hot vacationing spot. Average net income of a rental income is approximately $130,000 per home.
Return on Investment
Investors interested on coming on board to this project will have the opportunity to become equity partners on IBS Hexaport International, securing their position with the contracts in Africa and the Middle East for construction homes. The liquidity obtained by IBS Hexaport will be used to develop the land in Navarre Beach using this proprietary technology.
Tony is looking to provide investors with a minimum of 10% return on investment per year with potential additional benefits if the equity position is held for longer periods.
Risk Reduction Factors
• Lack of new homes inventory in Navarre Beach. There are no new homes available, only a few old homes are available right now.
• Steve owns the majority of the remaining land available for build out.
• Tony has proprietary, patented, construction process for building these super strength homes. Nobody else in the World has similar technology