Fenix Opportunity
Fenix Real Estate Opportunity Partnership is a Toronto-based private real estate investment fund, focused on distressed multi-family residential developments, commercial properties, hospitality assets and land in the United States, with an emphasis on Florida. The Strategic Sponsors, Bayshore Capital or persons affiliated with them have made a capital commitment of not less than US$20 million.
STRATEGY
Environment for the Strategy
Fenix Opportunity is well positioned to take advantage of the current economic challenges facing the United States real estate market and to acquire properties at significantly discounted prices. Further, new supply of properties entering the market is expected to remain at historically low levels due to limited availability of financing and the erosion of consumer confidence resulting from the economic downturn. Once consumer confidence and long-term growth return, the Fenix Opportunity expects that emerging inflationary forces will make any new supply of properties significantly more expensive.
Investment Strategy
Exit Strategy
In evaluating any potential investment opportunity, the primary consideration is the optimal exit strategy. Fenix Opportunity is focussed on investing in well-conceived and well-located properties that are expected to appeal to a wide group of subsequent buyers. Refinancing opportunities will also be considered to improve risk-adjusted returns.
Daytona Ocean Front Properties
Opus Condominiums
2701 South Atlantic Avenue - Daytona Beach Shores
The Opus Condominium is a brand new, 11 story condominium tower located on the beautiful shores of Daytona Beach. It is anticipated that this investment will yield an unleveraged IRR of 25 to 30%. The project was completed in late 2009 and has never been occupied. It contains 53 units ranging from 1700 – 3800 sf, as well as resort amenities, including a work-out room, club room and an oceanfront pool and hot tub. It is a beachfront location, in convenient proximity to popular venues like the International Speedway Blvd. and the Ocean Walk shops. The original developer, well known throughout the area, invested $27M into its construction and Wells Fargo had a $23M First Mortgage on which they recently foreclosed. Fenix purchased the Foreclosure Judgment for $12M and acquired the property at the Foreclosure Sale on October 20, 2010. We have been actively marketing these units for sale and have the dominate market share for condominium sales in Daytona Beach.
1751 South Atlantic Avenue - Daytona Beach
This vacant parcel of oceanfront land located just north of the Daytona Beach Shores city limit and just over a mile south of the International Speedway Blvd. It was purchased by WCI for development in 2005 for the sum of $23.5M. Fenix recently acquired the site and entitlements for $2.5M. The parcel is over 3.82 acres and boasts 370 ft of ocean frontage. The land has T-1 zoning, which allows for high density hotel, resort or condominium, as well as other tourist related uses. The original plans proposed by WCI and approved by the City of Daytona called for a 19 story condominium tower with 128 units, as well as luxury amenities. Its superb location, attractive zoning, and large size will provide Fenix with a number of possibilities to develop or otherwise monetize this choice site.
1110 North Atlantic Avenue - Daytona Beach
This vacant parcel of oceanfront land is comprised of approximately 4.5 acres with 410’ of prime beach frontage. It is located at the intersection of North Atlantic Ave. and Driftwood Ave., just over 1 mile north of Main St. Like 1751 South Atlantic Ave, this site is also zoned T-1. The previously approved development plan called for a 110 unit residential condominium building. The land, acquired for $15.4M in 2005, was recently purchased from Fifth Third Bank by Fenix for $3.1M. Its beachfront location, favourable zoning, and large size provide numerous possibilities for the optimal development or sale of this site.
1405-1431 S. Atlantic Avenue - Daytona Beach
This vacant parcel of prime beachfront land is approximately 4.5 acres, and provides over 430’ of ocean frontage. The property is zoned T-1, which allows for high density hotel, resort and condominium developments. Originally purchased for $13.6m in 2005, we recently acquired this piece of land for $2.4m. The original development, named Milan, was approved for a 22 floor, 120-unit condominium tower. There is only a finite amount of prime Daytona Beach ocean frontage available; and we believe that the value of this parcel, as well as the other plots we have acquired, can only appreciate.