Background & Strategy:
Legacy on the Bay is a class-A, 300 unit rental community located in Destin, Florida. Built to condo standards, the majority of the units have views of Regatta Bay Golf & Country Club, an award winning 18-hole championship course, and surrounding lakes. The property is located ½ mile from the Gulf of Mexico beaches, and part of the master-planned community that includes Destin Commons shopping center. The community offers spacious 1, 2, 3 & 4 bedroom apartments.
Off-market Transaction: due to the seller’s desire for speed and discretion, the property was not widely marketed, offering the Sponsor an opportunity to exclusively negotiate very attractive terms.
High Barrier to Entry Market: the Destin area, with significant natural barriers, and the presence of some of the world’s largest military bases, limits available land for future development.
Priced Well Below Replacement Cost: the negotiated purchase price represented approximately 65% of replacement cost.
Purchase Price: $27 million ($90k/unit) (July 2008)
Debt: $19.6 million (Fannie Mae)
Equity Partner: Strategic Capital Partners, LLC