Croft Axsen's past real estate investment projects have been guided by three very straight forward principals which inevitably calculate a properties current valuation as well as help us predict its future potential.
Supply – We carefully consider the surrounding area and determine the number of sales or availability of comparable property, sale price and volume are critical factors here.
Demand – Then we determine what driving forces are responsible for demand in the area and evaluate the relation this demand has on available supply. We conclude with a supply and demand relationship to evaluate the viability of our projects.
Location – Once viable many factors can influence selecting a location that meets the supply and demand requirements; area structure plans and zoning, accessibility, political will and bylaws to name just a few. Armed with this background we will either carry out the age old tradition of prospecting or more often then not we are already aware of a subject property and we will proceed directly to the acquisition phase.
Our founder and principal, Croft Axsen, has been successfully completing real estate projects with limited partnerships since 1996 as well as being president of Calgary’s largest independent Mortgage Brokerage. Below are the highlights of his numerous real estate developments in Alberta and Hawaii involving acquisition of land, construction and condominium conversions:
This thirty unit apartment complex was purchased for its location in Calgary’s inner city as well as this community’s redevelopment potential and future demand. Today, this community is highly sought after and rivals any inner metro community for convenience and esthetic appeal. Being an early visionary in the area our principal foresaw the future and purchased this property for $1.2M, invested $300K in the renovation of each unit, prepared and incorporation the condominium association, and exited this project selling each unit for between $65-82K. This represents a 30-64% profit per unit and recently similar property in the area sold for well over $225K.
Ocean Front Estate Homes 1999 – 2002
This $9.5M USD project was a favorite that saw the sub-division and development of three luxury Pacific ocean front homes, all overlooking the beautiful tropical bay Poipu. Each with a private outdoor pool and hot-tub, gourmet kitchen and fully furnished in contemporary Hawaiian style, this project realized investors a $3.5M profit and was sold in the height of a worldwide economic crisis following September 11, 2001.
With over 2000ft of lakefront footage this 160 acre undeveloped parcel was believed undervalued and purchased for $8M. Within 8 months this property sold for $12.5M, our partners realized a 56% return on investment during this brief holding.
In this project we purchased two above average size lots in Calgary’s Hillhurst community. After subdividing the lots we developed four custom executive homes and sold each property prior to the recent slowdown realizing an above average return on investment for our partners.
This industrial holding of 160 acres has been confirmed to hold very high density deposits of gravel and is situated adjacent to three commercial gravel operations. The property was purchased for $7.25 million dollars in 2007 and sold in the fall of 2008 for $12.25 million providing a 68% return for investors in under 2 years.
|
