Happy Holidays and Q4 Update from the Coconut Villas Team!

Coconut Villas Investors and friends of Skytian:

BLUF:  Coconut Villas is performing very strongly, with both condo sales and unit rents exceeding our business plan projections.  We’ll be making our second quarterly distribution on A1 units before the end of the year and plan on returning A1 capital in Q1!    We’ve also got an exciting new Tampa deal to tell you about.

Condo Sales Only ~5 months into owning the property, we’ve sold 5 of the 8 planned condos and paid the loan in full associated with those 8 units!  Not only have we done this faster than planned, but we’ve sold the 5 units to date for a total of $70,000 above our projections.  Two additional units are under contract and scheduled to close in January above our proforma.  The remaining unit is currently being renovated and will hit the market before the end of the year.

Rental Units We’ve successfully increased in-place rents by 13% since takeover (avg. $2146/unit as of January 1st vs. avg. $1900/unit at takeover in July).  The property is 100% occupied and the tenants are happy with the property improvements we’ve made since taking over.

Distributions We’re going to initiate Q4 distributions before Christmas so that the income can be reported in 2021, which will be offset by the depreciation we plan on assigning for the 2021 tax year once the cost segregation study is complete.  This is the 4th quarter distribution on A1 units (paid at 12% annually, 3% quarterly).  We anticipate returning 100% of A1 capital in February upon the completed sale of the next 2 condos, after which we will pay distributions on A2 shares quarterly as cash flow permits.

Thank you to my talented co-sponsors Jim & Rhina Pinciotti and Josh Awad for their great team work.    We are actively investing in Tampa and other hot markets, to learn more and to join our mailing list please subscribe here.