Cole Development & Realty, LLC

DEVELOPMENT AND REAL ESTATE CONSULTANTS
 

DIRECT 352-871-5354    OFFICE 352-871-1549

2233 NW 41ST STREET GAINESVILLE,  FL 32606

 
 
 
For a PDF of this report, please click on:

virtualoffice_files/Villages%20of%20Hawthorne%20investment%20opportunity.pdf


Villages of Hawthorne, LLC

An 800-unit active adult residential community


Presented by Cole Development & Realty, LLC

Julie Cole, Broker • Brenda Newman, Agent • www.sellingnorthflorida.com


The City of Hawthorne is a charming North Florida town, incorporated in 1881. The founders changed their destiny when they enticed the Florida and Southern Railroad to build a depot in town and that helped populate this quaint Florida cracker town of farmers and cowboys. Hawthorne is still small town Americana at its best. With just 1,500 residents and mom and pop businesses, Hawthorne is a throw-back to a simpler, easier time. And yet, with Gainesville just 15 miles to the west, Hawthorne residents have access to several major medical centers including the world-renown Shands Hospital, the culture created by the University of Florida and the waters of both the Atlantic Ocean and the Gulf of Mexico. Both are less than a 90 minute drive away. Hawthorne’s charm was enjoyed by its famous former residents Bo Diddley, Marjorie Kinnan Rawlings and athlete Cornelius Ingram. It is poised to be rediscovered as an incredible Florida vacation spot, second home community, and retirement destination.

The plan

The Villages of Hawthorne is an approved 800-unit planned use development (PUD) within the city limits of Hawthorne, in Alachua County, FL. The lots will be leased to the homeowners at a price of $350 a month and $380 for premium lots.

 The homes will be affordable manufactured houses priced from $99,000 to $120,000 and will be constructed by a contractor who specializes in that product. They will also handle all the financing of the housing on the pre-sales of the homes. No spec building is planned.

The Villages of Hawthorne is located on a 219-acre site on Little Orange Lake. There is a preliminary site plan for the entire project. Phase I will create 220 lots, including 16 premium lake-front lots, on 66 acres. The development costs will be funded by a $6.6 million HUD-backed, 40-year amortized loan at a fixed rate. The rate will be locked within four weeks of closing.

Projected Revenue

Based on an independent market study conducted in June 2010 by a HUD-certified company, there is an expected occupancy rate of 94% and stronger demand for the current supply. There are no other age-restricted, manufactured housing communities planned for Alachua County, Hawthorne or the neighboring communities. The independent demographic study shows that the buying population for this product is expected to grow 20.6% by 2014 in the primary market area  Alachua County. Also, there are 78 million Baby Boomers reaching retirement age within the next 10 years, causing growth in the secondary market of out-of-state buyers (“snowbirds”).

The independent study revealed that based on the demographics, demand, current supply and comparable properties, the project’s first phase will sell out within 3 years at a rate of 6 units per month.

There are two streams of revenue that include the lot leases and home sales.

Phase I (220 units)

Potential Rental Gross Income per unit                                                   $4,200 annually 

Potential Rental Gross Revenue, for phase 1 (220                    $924,000 annually

Developer’s revenue from home sales per unit                                    $10,000

Developer’s revenue from home sales, for phase I                      $2,200,000


Remaining phases (580 units)

Remaining EGI for remaining phases (580 units)       $2,436,000 annually

Percentage of home sales per unit                                                  $15,500

Developer’s revenue from home sales                                    $8,990,000


Total EGI at build out (800 units), rental fees                  $3,360,000 annually

Total developer’s revenue from home sales (800 units)        $11,190,000


Development and Construction timetable

Phase I is expected to begin in the first quarter of 2011 and should take 12 months to complete. Pre-sales of lots/homes will begin approximately 90 days from the development start date with the first closings to begin in the second quarter of 2012.

Phase I begins        1st quarter 2011

Vertical construction begins3rd quarter 2011

Revenue stream begins2nd quarter 2012


Return on Investment timeframe

Revenue is expected to begin in the 2nd quarter of 2012 and increase 6 units a month through the next 36 months. The total revenue collected at the end of the 36 months is expected to be  $2,200,000 in home sales revenue and lot rentals of $2,100 per month for every 6 units sold until all 220 units are occupied. A sold out Phase I will continue to produce $924,000 annual in lot rentals thereafter. Upon completion of all remaining phases, $3,360,000  will be collected annually in rental fees and $11,190,000 will have been collected in developer’s revenue from home sales. 


Investor participation

The developers are seeking a 25% partner who will buy in for $1.5 million in the Villages of Hawthorne, LLC.

There are currently three partners leading the development team who will continue with the project and take it to completion. They have many years of development experience between them and an excellent knowledge of the area. They have already begun the process of building the team of subcontractors and consultants necessary to effectively build and market this incredible development.

Additional information

Additional information to support the data above will be supplied to all serious investors, including the independent market study, the comparable market analysis, the pro forma, partner resumes and any additional information needed.







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Julie Cole
Cole Development & Realty, LLC
Ph: 352-871-1549  -  Fax: 866-853-8421
2233 NW 41st Street
Gainesville, FL 32606
www.sellingnorthflorida.com

 

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