Commercial Alliance Group Pays Investors Ahead of Schedule
Palm Coast Resort, Central Avenue Townhomes Earn Early Returns
Palm Coast, Florida – August 13, 2008 – The company that purchased the remaining completed condominiums in the Palm Coast Resort project from Centex announced some good news in a press release issued from their Sanford-based headquarters. Portions of the release of particular interest to Palm Coast residents are highlighted.
SANFORD, Fla., Aug 05, 2008 (BUSINESS WIRE) — Commercial Alliance Group (CAG), a Central Florida real estate development and financial services firm, has made early distributions to its individual and institutional accredited investors in two private offerings. The early distributions are related to the company’s positions in Central Florida real estate development projects. The projects include a moderately priced commercial/residential development in the Orlando suburb, Oviedo, FL and the Palm Coast Resort, a luxurious waterfront condominium resort in Palm Coast, FL.
Commercial Alliance Group Vice President Scott Colon noted that the final redemption distribution on the Central Avenue Townhomes private offering was nearly two years ahead of schedule. The first distribution to Palm Coast Resort investors came from new condominium inventory resale proceeds less than three months after the company acquired the waterfront condos in a bulk purchase from Centex Homes, a publicly traded national homebuilder.
Central Avenue Townhomes: Oviedo, Florida
Commercial Alliance Group was the exclusive senior capital placement agent for the townhomes and office project, and directly funded a mezzanine loan facility of up to $1 million. Since funding the project in November 2006, CAG worked with the developer to acquire an adjoining parcel and expand the townhome project from 52 to 58 units.
"As a result of a project refinancing concluded during the tenure of our exclusive senior capital placement agency, our mezzanine loan was prepaid in July. In accordance with the terms of our private offering related to the mezzanine loan, our investors’ interests in the loan were fully redeemed earlier than forecast," CAG Vice President Scott Colon said. "This deal was expected to mature in June 2010 but went full cycle for our investors in approximately one-half of the contract term. While this transaction was small in terms of the typical transaction in our portfolio, we are very pleased with the results."
Palm Coast Resort: Palm Coast, Florida
Commercial Alliance Group made its first distribution to investors from its first condominium inventory resale proceeds in accordance with the terms of the company’s private offering.
Commercial Alliance Group purchased 31 of the 72 luxury condominiums on the Intracoastal Waterway from Centex Homes, which completed the project in 2007. All condominiums at the Palm Coast Resort range in size from 1,350+/- to 2,000+/- square feet of living space and feature upgraded finishes, stainless steel appliances, granite countertops, screened patios, and views of the Intracoastal Waterway. Palm Coast Resort also includes a 96-slip marina.
Each of the company’s purchasers may apply for membership in The Ocean Club at Hammock Beach, an exclusive Ginn Resorts facility located within 3 miles of the Palm Coast Resort. Memberships are restricted to property owners in select Ginn and Centex communities. The Ocean Club at Hammock Beach members may enjoy fine dining, the oceanfront complex of five pools, and indulge in the 10,000-square-foot spa. Members may enjoy world-class golf on the Jack Nicklaus-designed Ocean Course and the Tom Watson-designed Conservatory Course. Equity golf membership upgrades are available.
Centex released these units for preconstruction sale in August 2006 at prices ranging from $875,000 to $1,345,000. CAG has opened a sales office at the Florida resort located approximately 80 miles northeast of Orlando situated on the Atlantic coast midway between St. Augustine and Daytona Beach, where prices now start at $430,000. Stirling Sotheby’s International Realty has been appointed as CAG’s exclusive sales and marketing representative for Palm Coast Resort. For details visit www.livethedreamfla.com, or contact sales director, Luke O’Reilly, loreilly@commercialalliancegroup.com.
More Florida Projects Sought
Scott Colon noted that Commercial Alliance Group is experiencing growth in both its financing and real estate development divisions. With its portfolio performing well, CAG is looking for more acquisitions and finance opportunities.
"The liquidity crisis in the banking industry has contributed to our growth," Colon said. "Our lending and financing operations are expanding to provide senior acquisition and development credit in addition to our traditional subordinate debt and equity products.
"We continue to look at and acquire world-class properties in Florida and other markets previously characterized by high growth and rising asset values. We are especially interested in resort, waterfront communities with marinas and hospitality and gaming projects. We are positioning the company to be an important player now and in the future as real estate market conditions improve. We are enjoying a time of opportunity and prosperity which we are sharing with our investors."
About Commercial Alliance Group
Commercial Alliance Group, Inc. ( www.commercialalliancegroup.com) is an integrated real estate development and financial services advisory firm providing capital and consulting services to qualified developers. In addition to being a real estate development company, it is a direct provider of senior and subordinate debt and equity capital. Commercial Alliance Group, Inc. provides business, financial and strategic planning services to its real estate developer clientele. The company’s real estate development ventures and debt and equity-financing products form the platform for investment opportunities available to individual and institutional accredited investors through its Broker-Dealer representatives, an innovation developed by the principals of Commercial Alliance Group. The Sanford, FL-based company serves as the bridge between the real estate development project concept and the capital necessary for the project’s success.
For more information, visit www.commercialalliancegroup.com or call Scott Colon, Vice President of Commercial Alliance Group, at (407) 330-3062. For Broker-Dealer information contact Mark Arnold, marnold@commercialalliancegroup.com.
SOURCE: Commercial Alliance Group, Inc.
Commercial Alliance Group, Inc., Sanford
Scott Colon, Vice President, 407-330-3062
www.commercialalliancegroup.com
or
Mark Arnold
Copyright Business Wire 2008
Land aquisition.
Toby
Was there any talk in regards to the future of the remaining land-development of PCR?
Did CAG purchase remaining parcels as well?, or does Centex still own?
If CAG did purchase are they going to continue to resell for profit, or are there plans for some sort of future for PCR other than milking those condo’s dry?
Remember there is a HOTEL that supposed ot be included in condo-hotel.
jmay
Reply to J.
CAG has an interest in acquiring the rest of the Palm Coast Resort property from Centex, but there is no contract at this point. This would include two more condo pads and a hotel pad as well as the existing marina. The PUD agreement does not give a lot of flexibility to who ever develops the property. The hotel will have to be a hotel (condo or traditional).