WHY INVEST IN THIS DEAL?OFF-MARKET DEAL BASED ON PRIOR RELATIONSHIPSEven though Blue Lake was NOT the highest bidder on the property, it was awarded to us at pricelower by $744,000 than asking price, based on Ellie Perlman – Blue Lake’s ECO and founder’s,prior relationship with the broker.STRONG A+ LOCATIONTradition at Palm Aire is located in the highly desirable, affluent submarket of Sarasota submarketwhere 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 3miles from the Mall at University Town Center, a world-class fashion and dining destination thatfeatures approximately 880,000 square feet of retail stores and restaurants. In addition, Traditionat 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 OPPORTUNITYTradition 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 closelycomparable to an early 200’s year of construction; 88% of units are classic and many still havewhite appliances without a microwave, old fixtures, dated countertops, and carpet throughoutthe 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 RECORDTogether with our strategic partners, Blue Lake Capital owns over 2,000 units across the U.S. andhas successfully implemented value-add strategy throughout the Southeast. The Blue Lake teamhas diverse background in multifamily acquisitions, lending, asset management, and value-addexecution.SOLID RETURNS & COMMITMENT TO OUR INVESTORSInvestors will receive 7% Preferred Return. Thereafter, proceeds shall be split 75% to Investorsand 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 lowleveraged agency loan of 65% LTV with a fixed interest rate of approximately 3.6% with 5 fullyears of interest only payments. This fixed-rate loan tremendously lowers the risk of interest raterise. Blue Lake Capital is raising $23M in funding for capital improvements and for contingencyand unexpected repairs.EXIT STRATEGY: Blue Lake plans to hold the property for 5 years, and then to sell it to aninstitutional buyer. Blue Lake will also examine refinancing prior to selling the property, as long asit attainable. This is a conservative deal. We underwritten the deal at 50 basis points higher caprate at exit, to account for market fluctuations.
INVESTMENTHIGHLIGHTS