Sale Of 53 Acres In Miami-Dade

CIG International, a subsidiary of Capital Source Bank, hired me to provide a broker’s
price opinion when it took over the 53 acres from Miami developer RL Homes through foreclosure in
June 2010.

While trying to assess the value of the land, I contacted Hoyer Investment, a real estate fund
backed by European investors. Hoyer indicated it would be interested in acquiring the property and soon
agreed to a deal.

The site, which is approved for 92 single-family homes, is the second phase of a project called Bonita
Grand Estates South in the Redlands area in Southwest Miami-Dade.

Ninety-percent of the site’s infrastructure work, including sewer, and electricity, is complete. Hoyer plans to finish the infrastructure work and resell the lots.  Hoyer has a contract with a publicly traded builder to purchased the lots in increments over time.

“The publicly traded development companies are always being evaluated on their equity, so they like arrangements like this.”
Hoyer will resell the lots for an average of about 25 percent more than its purchase price. “It’s land banking. Investors who are patient and have the capital can make money on deals.”

The deal closed December 12, 2010.

Reese Stigliano / 954.562.3430