Admiral Realty Capital’s Latest Program is Financing One of the Largest Master-Planned Communities in Hawai’i
ACCESS Newswire
SAN FRANCISCO, CA and HONOLULU, HI / ACCESSWIRE / February 6, 2019 / Admiral Realty Capital's new series of Real Estate Funds are engaged in providing financing to Puainako Heights Land Investment, the master-developer of one of the largest subdivisions in the Western United States. The offering is featured on the Boston-based real estate investment platform Investors' Harbour: investorsharbour.com.
The first phase of a productive investment program
Admiral's new offering, Admiral Real Estate Fund V, is actually the first installment in a seven-phase program. Fund V is financing "Pacific Ola'' which is the first community within the 160-acres Puainako Heights Subdivision that includes over 330 fee simple lots. Admiral's Fund V will be followed immediately by spin-off offerings that are going to finance the following phases of the master plan on the Big Island, which is being developed in seven phases.
Strong project means strong investment opportunity.
Due to the increasing demand for new homes in the area, the targeted development project of Fund V is receiving strong interest from the local community as well as buyers in Asia. One of the principals of Admiral Realty Capital, David Wilson mentioned that the growing interest list for the Pacific Ola home-sites solidifies the exit strategy of the investment program. ''Our partners and members of our investment program really like the idea that the new development we are financing is located at a hot market, because that means strength for the developer, and that's ideal for us as lenders'' said Mr. Wilson who had been directly involved in real estate development for over 35 years, prior to focusing on real estate finance.
"A much-needed project for the Island of Hawai'i" - Jerry Chang
According to Jerry Chang, who served as a State Representative for the district for 24 years, the project holds great significance given the housing demand in the region, and the fact that the Land Use Division of the State of Hawaii allows only 5% of the islands' lands to be urbanized. ''The limited space makes it very challenging to acquire and entitle land, while increasing the value of approved sites for construction'' said Jerry Chang, who is also the President of Puainako Heights Homeowners Association and former Director of University Relations at University of Hawai'i at Hilo. ''The Big Island is my home and I'm very excited to be a part of this once-in-a-lifetime experience. We are basically establishing a whole new neighborhood - from naming the streets to building living spaces that will hosts many generations to come.''
Chang also states that Admiral's offering provides the perfect opportunity for "the residents as well as true fans of Hawaii, who want to invest in the ever-fruitful Hawaiian land and benefit from its profitable real estate market but don't necessarily want to purchase property.'' Jerry Chang also commented that, ''It's exciting to envision investors receiving a significant return on their capital while contributing to the development of Big Island's newest master-planned community.''
Real Estate Crowdfunding From Veteran Developers
Prior to bringing their expertise into the real estate investment space, founders of Admiral Realty Capital had been involved in development for over 35 years. The two companies owned and managed by David Wilson built over 6,000 multi-family units, over 750 single-family homes, 10 multiplex theaters, 12 hotels, 4 assisted-living facilities, 3 master-planned community plans, and over 150,000 sq. ft. of designed & built medical space in the states of California and Hawai'i. The total value of the residential, commercial, retail and master-planned community development projects that they have completed together is over $2 Billion.
"Development is the key to this entire mechanism."
Wilson states that "what we simply call real estate crowdfunding these days is made up of several older disciplines. And because there are relatively new rules and technologies are involved, it is easy to get distracted and see this venture merely as a FinTech one." However, "real estate development is the key to this whole mechanism" Wilson said. As a real estate finance and fund management firm with boots-on-the-ground experience as builders, Admiral Realty Capital places construction and development at the center of the multi-disciplinary RE Crowdfunding cycle.
Company's principal advisor Wilson states that the underwriting principles of Admiral's offerings are very similar to those of banks. ''Providing the real estate investors with secured debt offerings like these, through which they can lend directly to qualified developers and enjoy the benefits of a structured loan mechanism, is like a fresh breath of air'' said Wilson. He further suggests that ''unlike most projects that seek funding out there, Admiral Real Estate Funds' success is not tied to the success of a value-added property.'' Wilson said, ''In most deals, investors hope that the project turns out okay so that it brings in tenants, generates income, and finally pays them back through dividends. In Admiral's funds, the investors are in-and-out within a certain period of time. There is a maturity date to the loan, and by the end of the loan term our Fund is paid back by the developer and all the members know exactly what their return is.''
"We call it Collective Lending" - David Wilson
One of the founders of Investors' Harbour, Dr. Alpie Atabay states that "this is the kind of passive income opportunities that the independent investors are looking for." Accoring to Dr. Atabay "experienced investors does not want to be an equity partner in the real estate project itself. They want to be the lender. That's exactly what Admiral's offerings present - a structure in which the investors collectively lend to a qualified commercial developer and get paid back with the pre-calculated interest by the end of the loan term."
Admiral Realty Capital is the principal sponsor of the offerings featured on Investors' Harbour. Different than most existing crowdfunding platforms, the nautical-themed platform does not feature an avalanche of small ''fix-and-flip'' projects handled by real estate enthusiasts. With over 50 years of joint experience in development, construction management and real estate syndication, Admiral Realty Capital presents members of the Harbour with competitive returns due to the advantage of financing ground-up construction in strategic locations. This not only gives the members access to industry-insider deals with above-market ROIs but also provides developers with an alternative to traditional financing from banks.
More to come from the Admiral - Harbour partnership
Concurrently with the funds under the seven-phase Hawaii investment program, Admiral Realty Capital will be launching several offerings that are located in Qualified Opportunity Zones (QOZ) in New England and California. To find out more, visit: admiralrealty.capital.
