ACAdar Construction
Luxury waterfront residence at dusk near Biscayne Bay and the Miami canal

Private Investment Opportunity

Waterfront Residences.  One Compelling Investment Opportunity.

An acquisition, development, and resale opportunity involving two luxury homes with approximately 10,000 square feet of combined living space.

Review Capital Structure
Total project cost
$13,099,035
Equity required
$2,830,035
Projected net profit
$1,940,965
Illustrative duration
24 months

Project Overview

Two ground-up luxury residences, developed and sold as a single program.

The project consists of the acquisition of the property in Miami, FL, followed by the design, permitting, and construction of two luxury residences of approximately 5,000 square feet each. Both homes are then marketed and sold, with proceeds used to repay the senior loan, return investor capital, and distribute profit.

Residences
2 luxury homes
Size per home
Approximately 5,000 sq ft
Combined living space
10,000 sq ft
Construction cost
$575 per sq ft
Projected sale price
$1,600 per sq ft
Illustrative project duration
24 months
Aerial view of two luxury waterfront residences on a Miami canalInterior view of a luxury waterfront residence with canal views

Investment Highlights

Why the structure of this project is worth a closer look.

Built-in margin

$575 / sq ft construction cost against a projected $1,600 / sq ft sale price.

Two-home exit

Two separate residences allow sequential sales rather than a single all-or-nothing closing.

Contingency in the budget

A $1,000,000 construction reserve is capitalized at closing, not added later.

Leverage in place

A $10,269,000 senior loan covers approximately 78.4% of total project cost.

Investor return guarantee

A projected $1,415,000 return, equal to 50% of invested capital.

Share of net profit

The investor return guarantee represents approximately 73% of projected net profit.

Detailed Development Budget

Every dollar capitalized at closing.

  • Property acquisition$5,865,000
    44.8%
  • Hard construction costs$5,750,000
    43.9%
  • Construction reserve$1,000,000
    7.6%
  • Soft costs$200,000
    1.5%
  • Insurance$30,000
    0.2%
  • Lender fees$154,035
    1.2%
  • Closing costs$100,000
    0.8%
Total project cost$13,099,035

Capital Structure

Senior debt and investor equity.

Senior loan (debt)

$10,269,000

78.4% of total project cost

Investor equity required (cash to close)

$2,830,035

21.6% of total project cost, including the $2,346,000 down payment

How the sources reconcile

Senior loan
$10,269,000
Down payment
$2,346,000
Insurance
$30,000
Lender fees
$154,035
Closing costs
$100,000
Cash advance / working capital
$200,000
Total investor equity
$2,830,035
Total sources
$13,099,035

Total sources equal the total project cost of $13,099,035. The investor equity line represents the full cash-to-close requirement, targeted for closing within 45 days of commitment.

Projected Exit

From gross sales to projected net profit.

Projected gross sales$16,000,000
Estimated selling costs (6%)($960,000)
Projected net sales proceeds$15,040,000
Total project cost($13,099,035)
Projected net profit$1,940,965

Projected sale price

$1,600 / sq ft

Applied across 10,000 combined square feet.

Projected gross sales

$16,000,000

10,000 sq ft × $1,600 per sq ft.

Projected net profit

$1,940,965

Net proceeds of $15,040,000 less total project cost of $13,099,035.

Investor Return Projection

Return of capital plus a guaranteed return.

Investor return guarantee

$1,415,000

Approximately 50% of invested capital over the illustrative period.

Return on invested capital

50%

Based on the $2,830,035 total investor capital.

Share of projected net profit

73%

The guarantee equals approximately 73% of projected net profit.

Projected investment return

Projected net profit
$1,940,965
Investor return guarantee
$1,415,000
Total projected investor return
$1,415,000

This figure is the projected investment return only. It excludes the return of original invested capital, shown alongside.

Total projected cash returned

Return of original investor capital
$2,830,035
Projected investment return
$1,415,000
Total projected cash returned
$4,245,035

Illustrative investment period of 24 months. The $2,830,035 of original capital is returned separately from the $1,415,000 projected return.

Four-Stage Project Timeline

An illustrative 24-month program.

  1. Stage 01

    Acquisition and closing

    Property acquisition and senior loan closing funded by investor equity, targeted for completion within 45 days of commitment.

  2. Stage 02

    Design, engineering and permitting

    Architectural and design plans, engineering, surveys, permit applications, and municipal approvals.

  3. Stage 03

    Construction of both residences

    Vertical construction of two residences of approximately 5,000 square feet each, managed against the hard cost budget and construction reserve.

  4. Stage 04

    Marketing, sale and distribution

    Listing and sale of both homes, repayment of the senior loan, return of investor capital, and distribution of profit participation.

Stage sequencing is illustrative and not tied to specific calendar dates.