Traditions Investor Package

INVESTMENT SUMMARY
ING
Blue Lake Capital has identified Traditions at Palm Aire, a 248-unit multi-family property located in 8445 Garden Circle,
Sarasota, FL 34243 for acquisition (“Property”). Blue Lake Capital is extending Investors the opportunity to invest in a BLC
Tradition Investors LLC, an entity that has been created to acquire the fee simple interest of the Property.
The Property is a 1991 institutional-quality asset that enjoys an exceptional A location, newly-renovated amenities, and an
interior renovation opportunity. The business plan is to renovate and modernize the unit interiors and common areas in
order to better compete with high-end luxury product while increasing rental rates and mitigating risk by pursuing a lowleveraged
agency loan of 65% LTV while capitalizing on today’s disproportionately low interest rates.
This private investment will be structured to be a turn-key solution for our investors and give them the opportunity to
participate in real estate partnerships. Cash flow distribution will be available monthly from rental and other operation
incomes of the Property to the extent after expenses, working capital reserves have been allocated. Our investors will
receive the cash distribution first. Blue Lake will be paid after an 8% annualized cash return are distributed to our
investors.
Property Information
Purchase Price $48,856,000
Units 248
Year Built 1991
Occupancy 94%
Hold Period
5 years
Investor Returns
Equity Multiple 1.78X
Average Annual Return* 25%
Cash on Cash** 7%
Internal Rate of Return (IRR) 16%
* includes proceeds from sale ** excludes proceeds from sale
The plan is to hold the Property for 5 years to maximize growth in equity value from operating income. Alternatively, Blue
Lake may refinance the acquisition debt in order to return most investor equity while continuing to realize returns over 8%.
The increase to the net operating income is anticipated to come from rent premiums from an interior renovation program
that has already been initiated by the current owner. Built in 1991, the Property benefits from quality construction and an
appealing amenity program that will help produce long-term sustainable leasing momentum.