CustomSpecSeries2018 -2021Preferred Equity16% Yield$29.4 Million$100K+ A/C
Welcome to the Wynn Development Team 30 Years industry leadership in building custom homes that set many standards We build for discerning buyers from around the world, including Fortune 500 executives and celebrities who stand among the fortunate proud owners of our award-winning custom homes, including Smart Homes with WI-FI interactivity throughout the home, soaring 3-story entry ways, elevators, glass stairways and many other award-winning featuresInteriors & Furnishings Network TV Broadcast CorpOur Building Arm G.C. Industry Leader – IntelAE Architects
HIGHLY SECURED INSURED 3X TO 1X Secured Undisbursed $5 M Umbrella Insurance for InsuredFunds Remain in Attorney Trust every $1.5 Million Strong Yield Account in equity Decades ofDECADES OF EXPERIENCE Experience 30 Years Leadership Experience … above the crowd 16% Yield
Preferred Equity Offering of $29.4 million Fully Secured Above-Market Yield with 3x to 1x Insurance 95% of Limited Partner funds remain in attorney trust account (interest-bearing)* 100% Funds Insured – $5 million Umbrella insurance for each property/home, a total of $20 million/year; $80 million for the 4 years of this offering Above Market Yield of 16% + 10% Profit Split Sharing (pari passu at full subscription), versus market average ranges for equity of 10-12%. - 35% Equity to Total Cost (land + construction); 1.86 leverage - All 1st Mortgages secured at 65% of Total Cost per property - 48 month hold - Balloon payment of yield at maturity; roll-over option *5.5 % budgeted Administrative Cost for legal disbursements, and related 3rd party professional fees and expenses
Dream Home Series – Custom Spec Series 2018 Our homes are being televised by BYL TV Network and Danielle Silverman, to kick off theDream Home Series®, a reality TV series featuring Chase Fleming and myself, Dave Wynn, for our4-home luxury waterfront spec building mandate, being televised in 19 major markets across theUnited States commencing July, 2018. We are also partnered with Daniel Lubner of Clive DanielHome ®. Clive Daniel Home is considered by many in the industry to be the ultimate in luxury –defining the standard, winning best showroom in the USA for the last five years running. Ourindustry-leading architect is Ronald Rickert II AIA of Intellae®, whose designs include homes forsuch celebrities as Tony Robbins’ $45 million home and Greg Norman’s home, in the same areaof Manalapan, Palm Beach (in 2017 alone).
Custom Spec Home Series 1-4X for 2018; 32 Homes will be built over 4 years in this series, as follows:• Custom Spec Home 1: 1177 Lands End Rd, Manalapan FL 33462 (land purchased by General Partner)• Custom Spec Home 2 (planned): 4205 Intracoastal Dr, Highland Beach, FL 33487• Custom Spec Home 3 (planned): 3 Beachway N, Ocean Ridge, FL 33435• Custom Spec Home 4 (planned): 120 Marlin Dr, Ocean Ridge, FL 33435Address Land Purchase Price SF Build Build $ Total Sale Profit Profit % 6,748 A/C $2.4 m $4.1m $6.7m $2.6m 63%1177 Lands End Rd Purchase 12-8-17Point Manalapan, FL 33462 $1,700,0004205 Intracoastal Dr, Highland LIST $2,500,000 8,500 A/C $2.6 m $4.9 m $7.9 m $3.0 m 61%Beach, FL 33487 Est. Purchase $2,300,0003 Beachway N LIST $3,275,000 8,500 A/C $2.6 m $5.35 m $8.9 m $3.55 m 66%Ocean Ridge, FL Est. Purchase $3.75 m $7.4 m $11.5 m33435 $2,750,000 $2.7 m $5.4 m $7.95 m1 Harbourage Isle Dr LIST & Est. Purchase 10,900 A/C $4.1 m 55%Fort Lauderdale, FL $3,650,00033316 LIST $3,250,000 7,450 A/C $2.55 m 47%120 Marlin Dr,Ocean Ridge, FL 33435 Est. Purchase $2,700,000
Custom Spec Home #1 - In Escrow (Re-Platting) currently):1177 Lands End Rd – In Re-Platting from adjacent property of 1199 LANDS END RD)Manalapan, Florida 33462 [Architect Rendering Below 6,748 A/C and 9,182 Total S/F
Time Line for Building each of the 32 Homes / Projects in Series● 5-7 weeks for design and construction docs● 6-8 weeks permitting● 8-10 months residential construction
Property Locations throughout Palm Beach County, Florida
Wynn Development & Southeast Construction Excellence
Custom Home 1 Spec Series 2018 - Project Breakdown: $1.7 million land under contract 12-8-2017 – closing after re-plat complete (est. June, 2018) $2.4 million construction cost for 6,748 A/C and 9,182 Total SF --------------------------------------------------------------------------------------------------------------- $4.1 million total Built Cost $6.7 million planned listing price, or $993 per AC square foot (below market range $889-1,628 per AC SF) Lantana and Manalapan – Hypoluxo Island comparable listings 2016 and early 2017. There is no waterfront luxury new construction at this time, and we will have the only waterfront for sale in the coveted Hypoluxo Island this year, 2018. In December 2017, National Custom Homes (built one block away) sold in 2 weeks, 6 months before completion11609 Charisma Way, Palm Beach Gardens, FL: Total: 9364 SFList Price: $7,250,00013750 Old Prosperity, Palm Beach Gardens, FL: 5 beds 4.5 baths Living: 5985 SFList Price: $6,995,000 ($1,169/AC SF)1208 Seminole Blvd, North Palm Beach, FL: 7 beds 7.5 baths SF Total: 11,658 SFList Price: $6,990,000110 Wells Rd, Palm Beach, FL: 5 beds 6.2 baths: 6493 SFList Price: $7,250,000 ($1,117/AC SF)970 N Ocean Blvd, Palm Beach, FL: 3 beds 2.5 baths 4054 SFList Price: $6,600,000 ($1,628/AC SF)246 Eden Rd, Palm Beach, Florida: 6 beds 5.5 baths 5,661 SFList Price: $6,700,000 ($1,184/AC SF)1545 Lands End Road, Manalapan, FL 33462: 6 Beds 8 Baths Living: 7870 SF Total: 9630 SFList Price $6,995,000 ($889/AC SF)719 Pelican Lane, Lantana, FL 33462: 5 beds 6.5 baths Living: 4736 SF Total: 7060 SFList Price: $4,495,000 ($949/AC SF)501 S Atlantic Drive, Lantana, Florida 33462: 5 beds 6 baths Living: 5752 SF Total: 9291 SFList Price: $5,950,000 ($1,034/AC SF)
1177 Lands End Road: Currently Vacant Land with Fully Sound 60 Foot Concrete Dock and seawall,on beach waterfront lot in coveted Hypoluxo Island. Security cameras are locatedon the north and south entries/exits. White sand beach facing widest Intracoastal Waterwayin all south Florida north of Miami, of almost one-mile wide.List Price: $1,750,000 – SOLD $1,700,000 to General Partner on 12/8/2017.1199 Lands End Rd (re-platted to 1177) New Construction: 3 Story, open floor plan, transitional smart home.Purchase Contract Received from Brown Harris Stevens, broker Jennifer Spitznagel,12-4-2017, fully executed Friday, Dec 8th, 2017. SEE MP4 HOME VIDEO & Architect Drawings.Below-market construction cost rate of $356 per square feet under air from our construction partner. Forecast sale at $993 /SF.(see Architect Drawings, Architect Cost Sheet & MP4 Home Video).Price below will be actual listing price based on inventory and recent sales at today’s prices. These prices increaseat minimum 3-4% annually, hence profits will increase accordingly.Home Listing Price: $6,700,000Gross Cost: $4,100,000Gross Profit: $2,600,000 (63% gross profit) 5 beds Average Luxury Waterfront Sold per Sq Ft $1,100.00 5.5 baths 6,748 Living X $993 / SF = $6,700,000 Luxurious Pool 4 Car Garage Total Investment of land $1,700,000 6,748 A/C / 9,182 Total + Construction at under air at $356/ SF + 2,400,000 = $4,100,000Profit based on past sales $6,700,000 Price below will be the actual listing Selling $4,100,000 price based on inventory and recent Cost $2,600,000 sales: Estimated Gross Profit LIST PRICE $6,700,000 PROFIT at LIST $2,600,000
Custom Home 2 (planned) in Spec Series 2018:3 Beachway N, Ocean Ridge – absolute ocean front, with deeded access and rights to buildsmall structures such as cabanas.
Custom Home 2 (planned) Spec Series 2018
Custom Spec Home 3 (planned) in 2018 Series
Custom Home 4 (planned) Spec Series2018:120 Marlin Dr, Ocean Ridge, FL 33435
Our Commitment to Excellence Every Wynn Development / Southeast Construction project begins with a commitment to excellence.Southeast has been building luxury custom homes for over 30 years. This commitment is the same whether thecontract is initiated through negotiations, Design Build or competitively bid. We welcome the opportunity tonegotiate with an owner in the planning stage, as we believe this approach ensures the owner the most fair andequitable project value. In a negotiated contract arrangement, Southeast Construction books and estimated costsare open and available for the Owner’s review. The negotiated contract assigns a single point of responsibility forquality, cost control, and scheduling which requires a team approach. Trust in a contractor comes with historybetween the owner, design team and contractor. Southeast Construction is committed to do whatever it takes tobuild lasting relationships, focusing on the future.
According to the National Association of Realtors,home prices in the U.S. continue a steady upwardtrend, with volatility from quarter-to-quarter.
America continues to have aHousing Shortage that showsno sign of abatement. TheInteresting trend here is thatthe length of time people arestaying in their homes issteadily increasing.
Home sales since the recession show asteady growth trend with smallfluctuations.Mortgage rates have risen moderately,yet hover near historic lows, averaging4.2 percent nationally.
The wealthy continue to lead the U.S. economyalong with the housing markets. The average timeon the market for SFH in FL is 31-45 days.
Florida continues to be one of theleading real estate markets forhighest values, as well as salesgrowth in SFH’s.
SFH construction leads the county in job growthin 2017 and Quarter 1 2018 (NAR).
According to Quarter 1 2018 NationalAssociation (NAR) surveys, AmericansBelieve it is a very good time to buyhomes.
Residential sales over thepast 12 months is amongthe strongest sectors of oureconomy, with projections fromNAR for the same continuedgrowth.
Housing Price Expectations are for continuedrising prices and strong new construction asthe market continues to accommodate thehousing shortage.
Florida sales continue to grow as fast as the top 3 states,with luxury leading the way.
Statistics on the real estatemarkets south Florida withlinks to additional relatedresearch.
Prices in our Palm Beach County market are up12.4% in 2018. The luxury end of the localmarket should substantially out-perform lowertiers, as affluent buyers relocate from high-taxstates disadvantaged by the 2018 tax law.
trust our long history of outstanding performance For over 30 years we have been building the same high quality of custom homes that we are building in this series. The only difference is we added a Spec Series to capture more of this highly lucrative sector of the market. By building on spec, in fact, we realize an additional 20-25% margin above the 35% industry norm. Discerning buyers, celebrities and leaders of industry choose us foremost for our uncompromising dedication to exacting standards of quality and attention to detail. We remain true to the highest standards of craftsmanship and design that we built our reputation and standing upon.
Sources of Funds: $2,900,000General Partner equity contribution 29,400,000Limited Partner equity contributions 57,200,000Construction loans at 65% LTC (16 homes @ $5.5MM x .65) 117,760,000Home sales – net (16 @ $8MM less 8% closing costs)Interest income on capital contributions ($29MM/2 @ 2% for 4 yrs.) 1,000,000 $208,260,000 Total Sources of Funds $40,000,000Uses of Funds: 48,000,000Land acquisition (16 @ $2.5MM) 5,720,000Development & Construction costs (16 @ $3MM) 1,617,000Construction loan interest (see A below) 10% x 1 yr. avg. term 57,200,000Legal, Professional Fees and Administration at 5.5% budget 18,816,000Repay construction loan principal 29,400,000Preferred Return to Limited Partners (B) 2,900,000Return of Capital to Limited Partners 203,653,000Return of Capital to General PartnerTotal Uses of Funds before Profit Distributions 4,146,300Profits to General Partner @90% (B) 460,700Profits to Limited Partner at 10% (B) $208,260,000 Total Uses of Funds
Luxury residential enjoys the strongest margins in real estate, quicker turns, and significantlyfewer permitting delays and risks versus our commercial counterpart.We invite you to request a copy of our Private Placement Memorandum (filed with the SEC) andLimited Partnership Operating Agreement. We have an open-book policy, and are truly dedicated toour love of real estate. We are standing behind our 2018 Spec Series with a General Partner capitalcommitment in excess of $2 million, which would allow us to fully construct and sell our first 2018Series home without any outside investment, and retain the entire expected profit on sale of $2.1million; however, our Limited Partner investors will share in 10% of our profits on all homes in the2018 Series (in addition to their 16% preferred returns on invested capital).$29,400,000 Limited Partner interests available ($100,000 minimum investment)Commitment required by June 26, 2018Funding required by June 28 , 2018Thank you for your interest, and invite you to schedule a meeting with our team.Sincerely Yours,Dave WynnPresidentWynn Development LLCCell: 954.465.1786 E: [email protected] Place 1200 N. Federal Hwy, 2nd FL Boca Raton, FL 33432Toll Free: 800.521.5460 Fax: 888.434.0979, WynnDev.com
The Wynn Development TeamJames Wiberg Dave Wynn Danielle SilvermanPresident President COO & Executive ProducerTriode Real Estate Advisory Corp Wynn Development LLC ® BYL Network ®Capital Markets Advisor T. 954.465.1786 T. 561.715.1774$20 Billion in capitalizations since 1998 F. 888.434.0979 E. [email protected]. 954.401.0962 E. [email protected] BYLNetwork.comE. [email protected] WynnDev.comFP&A, Capital Markets, Daniel LubnerInvestor Relations Ronald Rickert PresidentTriodeRA.com Architect & President Clive Daniel HOME ® IntelAE Architects ® T. 239.213.7816 C. 561.239.0135 C. 239.292.3717 O. 561.672.7124 E. [email protected] E. [email protected] CliveDaniel.com ItelAE.com Edison Sanchez Peter Giaquinto, Jr. Managing Partner President Monacos Capital Southeast Construction, LLC ® T. 305.905.9215 C. 561.441.2721 E. [email protected] O. 561.393.3150 E. [email protected] SEConstructionfl.com
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