The most exciting development opportunity that I know of right now in Naples is located in the Kings Lake community off Davis Blvd and about 7 minutes from 5th Ave. This highly desirable community is very well-kept, peaceful, and beautifully located for the thousands of Naples residents who help keep up the pulse of the vibrant Naples culture. With a mix of single family homes, townhomes and condos, Kings Lake is home to many full time residents who work year round supporting Naples’ on and off season economy. Sales prices for housing follow, fairly closely, the median sales price for the greater Overall Naples Market. Rents for most of the 40-year old, 2 bedroom, 2 bathroom condos hover round $2500/mo – $2800/mo. Pretty much the going rate these days. Many of the homes and condos in this lovely community were built in the early 80’s through the early 90’s, so when an opportunity to own the last vacant lots in the whole community comes up, you might not be surprised at the alarm bells that go off. Looking around town, $3200/mo is common for newer 2-3 bedroom apartments around 1100 square feet.
So how many units has Collier County approved for these vacant lots in Kings Lake?
Santa Cuz Blvd | Kings Lake – Parcel Outline
The Last Units in Kings Lake
Twenty-Five (25) units have now been confirmed by Collier County for the parcels off of the private Santa Cruz Blvd in Kings Lake. I mentioned 2 vacant parcels in the paragraph above, but really there are 7 parcels with county PID numbers. 2 parcels are vacant raw land with the 3rd land parcel providing the foundation of four townhomes. All four townhomes are right around 1,100 sq with 2 bedrooms and 2 bathrooms, detached garages, have annual leases and are generating income. Two of the townhomes have dens and all four enjoy the use of the private pool.
In preparation for passing this incredible property on to an investor/developer, the sellers have engaged Davidson Engineering, a highly respected and widely used Naples site civil engineering company, to confirm with Collier County the exact number of units that can be built and to also provide conceptual drawings for how the new buildings can be placed on the parcels. Once these units are completed, that would wrap it up for Kings Lake development. Keeping in mind the requirements for parking, emergency ingress and egress and retention ponds, a couple of ideas have been provided by Davidson Engineering.
If the four existing townhomes were to stay, then you only get to add about 17, roughly 1100sf, units. This is due to how the existing units are located right smack dab in the middle of the middle parcel. While 17 brand new, 2bd/2ba units could generate a healthy cash flow, 25 new and bigger units that could accommodate even a 3rd bedroom, would put the NET Operating Income (NOI) into “no-brainer” territory. The $3.750,000 price tag on these 7 parcels has made sense to everyone this REALTOR® has shown the property to. Maybe it’s the inspiring view of the lake and walking path that bring up child-like hope and wonder in the eyes of prospects when I walk them around the property that could launch them into the next chapter of their life. It’s like a perfectly wrapped present from grandma with the aroma of freshly baked cookies wafting about.
Santa Cruz Blvd | Kings Lake
Show Me The Money
This project is raising eyebrows as the NOI pushes $800,000, and in my very best 1980’s infomercial voice, “That’s not all!”. Experienced investors will go into a project with an exit strategy. In fact, the exit strategy is essential to the entrance strategy. As an approximation, there are probably 50% to 100% more investors who would be interested in this property if it were all built and fully leased and had a year or two of proven income. The work is in building the project up. Any investor/developer who takes this project on will have their sights set on stabilization of the property (fully leasing out every unit), and then selling the product as a whole for a profit, after receiving a year, two or three of cash flow. It is a nice treat at the end of the project to earn a little coin on top of the cash flow that sustained it while in the process. What can be expected? Maybe a million or two, I suppose.
Santa Cruz Blvd Pool | Kings Lake
Investors, by definition, tend to poke holes in ideas that are presented to them as a testing phase. All investing is a risk, and the need to temper the thought process is part of the journey. If the fears of an investor can honestly, authentically and logically be addressed and moved into the “win” column for that investor, then the chances of moving forward go way up. Money doesn’t do anything when it just sits around and successful investors know this. For real estate development, there are a lot of moving parts. Getting the right builder and site manager, having the right exit strategy in mind, having a plan B, and the most important item we all have heard before; Location, Location, Location! For the price, nothing beats this Kings Lake opportunity right now.
With a multi-family income property like this one on Santa Cruz Blvd in Kings Lake, an investor will want to have a very comfortable feeling on how quickly the units will be able to be filled, since vacancies don’t produce fruit. I will share with you that the seller was able to fill one unit within less than a week, for full asking rent, 3 months before an existing lease was going to end. Kings Lake is hot is will remain very hot for decades to come. Every one of these new units an investor builds will lease likely before they are even completed. Need a builder? I have one who has been building in Naples for over 30 years, with a reliable crew, and who will probably give you a better builders fee of any other builder in Naples.
For more on the parcels on Santa Cruz Blvd, click on one of the images below and contact me for details on financials and showings.
2708-2714 Santa Cruz Blvd | Listing
2708-2714 Santa Cruz Blvd | Video
Josh Amolsch
REALTOR® | SRS
Premiere Plus Realty, Co. | #SL3522310
1100 5th Ave S #101B, Naples, FL 34102
239.302.8475 | [email protected] | joshamolsch.com
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Josh Amolsch Naples REALTOR
Naples Seller’s Agent | REALTOR®
