Waterfront Land Fund Management, LLC, is an investment company currently managing two distinct fund families that finance the acquisition and development of waterfront area property.
Through its land investment funds, the company seeks to generate long-term capital appreciation and increase returns by acquiring parcels of prime property that are in the immediate vicinity of the ocean, the Intracoastal Waterway, large recreational lakes and rivers.
This is attractive for investors, as the demand for waterfront area property – and ultimately for resort home developments, waterfront estate living and amenities – is quickly exceeding supply. The company does not engage in physical development activities on the acquired parcels, but only in driving capital appreciation by purchasing land in the most desirable locations. Before acquiring any property, the company performs due diligence and analyzes the area for zoning, permitting and environmental issues that could affect appreciation. Once land is purchased, the company executes critical pre-development tasks before sale, such as obtaining permits and entitlements. These efforts, combined with our purchase price at the most favorable market conditions, result in an exceptional property that is highly valuable and ready for development.
Since 1994, corporate leadership has used private investment capital for the Waterfront Development Funds to finance, acquire and develop 36 upscale residential waterfront communities across the southern United States. Investments range between $30 and $60 million for our community development funds. Located on pristine waterfront area properties in the immediate vicinity of the ocean, Intracoastal Waterway, lakes and rivers, all communities completed to date have attracted predominantly a baby boomer population seeking waterfront communities, recreation and excellent amenities. The average annual growth rate has exceeded 35% over the past 14 years, increasing sales from $2 million in 1994 to over $1 billion in cumulative sales through 2007. Investors have realized a 20% per annum return on their investment.
Through its Waterfront Community Lot Funds, management provides investors an equity fund that forecasts a 13.80% to 20.25% per annum net return on investment with a hold of up to five years. This fund is uniquely positioned to take advantage of options that management holds on deeply discounted purchase prices available on waterfront community home sites. This fund purchases home sites at a 60% mark down in select, upscale, gated, waterfront communities where all amenities and infrastructure have been fully completed and the development has no debt. Management seeks to hold home sites for re-sale at a time when the waterfront retail market has normalized and when profits to investors can be maximized. The profits from this investment should be treated as long term capital gains. All purchases and carrying costs are made with cash so there is no additional debt or leveraging.