Traditions Investor Package

WHY INVEST IN THIS DEAL?
OFF-MARKET DEAL BASED ON PRIOR RELATIONSHIPS
Even though Blue Lake was NOT the highest bidder on the property, it was awarded to us at price
lower by $744,000 than asking price, based on Ellie Perlman – Blue Lake’s ECO and founder’s,
prior relationship with the broker.
STRONG A+ LOCATION
Tradition at Palm Aire is located in the highly desirable, affluent submarket of Sarasota submarket
where rent growth in the past 12 months was 5.5%, and is expected to be 5.1% in 2020,
outperforming Tampa as a whole of 2.9%. Additionally, the property is strategically located only 3
miles from the Mall at University Town Center, a world-class fashion and dining destination that
features approximately 880,000 square feet of retail stores and restaurants. In addition, Tradition
at Palm Aire is located a few miles from the i-75 road, allowing quick access to jobs, restaurants,
retail and the Nathan Benderson Park.
TRUE VALUE ADD OPPORTUNITY
Tradition at palm Aire is a very well maintained property with a substantial value-add component.
Though the asset is of institutional quality and built in 1991, interiors finish-outs are more closely
comparable to an early 200’s year of construction; 88% of units are classic and many still have
white appliances without a microwave, old fixtures, dated countertops, and carpet throughout
the unit. Blue Lake will install modern apartment unit finishes such as stainless steel appliances,
vinyl plan flooring, new lighting and hardware, microwave, etc.
PROVEN TRACK RECORD
Together with our strategic partners, Blue Lake Capital owns over 2,000 units across the U.S. and
has successfully implemented value-add strategy throughout the Southeast. The Blue Lake team
has diverse background in multifamily acquisitions, lending, asset management, and value-add
execution.
SOLID RETURNS & COMMITMENT TO OUR INVESTORS
Investors will receive 7% Preferred Return. Thereafter, proceeds shall be split 75% to Investors
and 25% to the Managers.
We are projecting 7% Cash on Cash Returns (5 Year Average). Distributions will be paid monthly.
Blue Lake provides transparency and fully auditable operations.
CONSERVATOVE UNDERWRITING AND LOW RISK FINANCING: Blue Lake will secure a low
leveraged agency loan of 65% LTV with a fixed interest rate of approximately 3.6% with 5 full
years of interest only payments. This fixed-rate loan tremendously lowers the risk of interest rate
rise. Blue Lake Capital is raising $23M in funding for capital improvements and for contingency
and unexpected repairs.
EXIT STRATEGY: Blue Lake plans to hold the property for 5 years, and then to sell it to an
institutional buyer. Blue Lake will also examine refinancing prior to selling the property, as long as
it attainable. This is a conservative deal. We underwritten the deal at 50 basis points higher cap
rate at exit, to account for market fluctuations.