Project Description

This asset consisted of an entire portfolio of vacant land, buildings and an operating business owned by Avatar Holdings, Inc. Avatar (NASDAQ-AVTR) is a national builder and developer headquartered in Coral Gables, Florida.

Avatar had identified the Cape Coral assets as non-strategic and approached Private Equity Group as a qualified and selected purchaser who could examine and value a diverse portfolio quickly and in complete confidence. The portfolio consisted of a shopping center, two golf courses, three marinas, warehouses, over 5,000 vacant lots, and 2,000 acres of development parcels. We were able to negotiate an agreement and close in 60 days.

Private Equity Group determined the portfolio had a retail value of approximately $125 million to be realized over a 10 year period. However, senior management devised plans to reposition certain prime waterfront assets in an upscale market venue previously thought not attainable in Cape Coral. Other assets with high carrying costs were sold in bulk and a retail sales program was initiated for builders and the public to maximize the value of the more desirable vacant lots. Our plan accomplished the disposition of the portfolio in four years rather than 10 and achieved a sellout of $400 million.