Navigator completes due diligence on Florida Real Estate investment opportunities

According to the US National Association of realtors, international sales of US property rose to $ 82 billion between April 2010 – March 2011, up from $ 62 billion in the previous year.  By our estimates, approximately $ 25 billion has been invested by foreign investors in Florida in the past 2 years.


Some characteristics of the market under study included:

  • Focus on rental residential real estate with focus on suburban properties with 100 – 300 units. These properties have seen occupancies decline from 90% to 70-75%, and rents for 1-bedroom / 1 bathroom apartments set at between $ 550 - $ 650.

  • Despite this decline, average EBITDA values remain high, with returns of 40-50% possible.

  • Most properties are managed on a stand-alone basis; there is abundant potential for cost savings through economies of scale, synergies and application of modern customer relationship management (CRM) and software monitoring techniques.

  • The property rebound is only just beginning to touch this segment: most foreign property investment remains concentrated in urban high-rise developments, where prices are recovering quickly.

  • Mortgage finance remains available, with 25-30 year loans at interest rates between 5.5-6.5% common.

Navigator is currently promoting investment in a group of three high quality residential properties in Tampa, Florida. Total units number 544 with a target sales price of $ 36,000 per unit. The total investment amount is $ 19.5 million before closing costs. Annual income is forecast at $ 3.2 million; annual operating costs are $ 1.6 million.


Interested investors are requested to contact Philip Ammerman on pga@navigator-consulting.com