|LAKESHORE, Fla., Nov. 12 , 1998 - Sunvest Resorts,
Inc. (OTC Bulletin Board: SUNE) announced the completion of the purchase
of its first "Active Adult Community" ("AAC").
Sunvest Resorts, Central Florida's largest condominium conversion organization, has entered the burgeoning, active adult community (AAC) development field by acquiring Lakeshore Club Villas, a 500-unit 110-acre complex located just east of Lake Wales, 50 minutes South of Disney World and Orlando. The acquisition heralds a major diversification by Sunvest into the business of developing AACs, a new and promising direction for Sunvest's diversification efforts.
AACs are a segment of the real estate market which is experiencing very
significant growth due to increased demand for this product among aging
"baby boomers." A typical AAC is a complex of garden-style, individually
owned residences containing resort-type amenities for the active adult,
such as swimming pool, tennis courts, mini golf course, community clubhouse,
hobby rooms and fitness center. These amenities appeal to retirees and
couples who are within five years of retirement and wish to establish a
second home in a resort area with the intent of spending increasing amounts
of time utilizing it and eventually turning it into their primary residence
"There is an increasing demand for AACs," says Herbert Hirsch, Sunvest President. "The number of Americans 55 and older is currently over 50 million and is expected to grow to 75 million by the year 2010. This segment of the real estate market is growing dramatically, and Sunvest intends to become a significant player therein."
Lakeshore Club Villas is located on the 7,500-acre lake "Walk-in-the-Water," renowned for bass fishing. The first phase of Lakeshore Club Villas will contain 500 single-story villas featuring sports/activity- related amenities, including a fishing pier, marina, lakefront promenade, tennis courts, miniature golf course, driving range, basketball, softball, shuffleboard, vita-course and more. The community also features an "on-site" town center including a bank, post office, beauty salon, laundromat, restaurant, and convenience store. As a major feature at Lakeshore Club, and of great importance to Sunvest's targeted market, there will be a full-service medical center that also provides home health care. There is also a 24-hour on-call paramedic emergency service and an on-site fire department. Sunvest plans to sell these units individually: 1, 2 3 bedroom villas will be offered from $39,990 to $69,990. These prices are well below "competitive" developments in the marketplace and should give Lakeshore a market price advantage.
"Our 'Buy a Villa -- Get a Boat' sales theme should enhance our selling when we open for sales in March," states Harvey Birdman, Sunvest Executive Vice President, who created the exclusive merchandising idea. Lakeshore owners will have use of an 8-passenger pontoon boat for bass fishing or sightseeing twice monthly to enjoy Polk County's largest lake with friends and family. The user's only expense will be a nominal gas fee. No rental fee or repair bills will be charged. The three-year sell-out program (beginning in March 1999) is expected to generate revenues of approximately $26 million.
"After a sellout of a substantial portion of the existing villas at the Lakeshore Club, Sunvest plans to take advantage of the existing infrastructure. Phase 2, would contain 200 more villas to be constructed on the initial 110-acre parcel, thereby further amortizing the costs of the infrastructure, and should create better-than-average income returns on the sale of the new villas," says Hirsch.
Sunvest is negotiating to acquire a 425-acre unimproved parcel contiguous to the Lakeshore Club for developing additional phases with up to 2,000 units and a golf course. These units will be marketed as recreational vehicle and mobile home sites for sale and for lease and their sellout would generate an additional $100 million in revenue.
Sunvest acquires, renovates and converts hotels into resort hotel condominium "Condotels" and multi-family rental projects into primary and 2nd home communities. Together with its affiliates, Sunvest has, since 1990, completed the conversion of over 3,000 units.
||Assisted Living: New Opportunities for Hospitality as Demographics Change / Arthur Andersen / Winter 1998|