Sunset Bay Club, New Port Richey, Florida

Asset Acquired:

138 Condominium Units

Location:

New Port Richey, Florida

Investment Year:

2010-2011

Equity Returned:

100%

Investor Cash-on-Cash Return:

62.88%

Investor annualized (IRR) return:

14.84%

Sunset Bay Club was a 144 unit Senior Living Property in New Port Richey, FL. The project was particularly unique with each individual unit consisting of a 5 bedroom and 5 bathroom “shared living” design.  Built in 2003, the project was considerably distressed due to developer mishandling and poor business execution.

In 2010, Bank of American approached G8 about purchasing their 60 units which they had taken back through foreclosures. G8 negotiated with Bank of America and several other banks that owned numerous units and/or defaulted loans and in 2010 began purchasing units and defaulted loans secured by units.  G8 was ultimately able to acquire fee interest in 138 of the 144 total units.  Once in a control position, G8 reconstituted and funded the defunct HOA, normalized operations, and rebranded the property to Summer Lake Villas. In addition to re-establishing the HOA services to meet the needs of the community and establishing on-site meal and transportation services for the existing senior residents, G8 successfully developed a market rate and family-leasing plan.

In early 2013, G8 sold the entire project for $9.5 Million. Distributions from the final sale of the property provided overall cash-on-cash returns to investors of approximately 60%.