The deal gives Raintree an option to buy 2.1 million shares of Royal Acquisitions stock over time at $1.25 per share or up to an investment of $2.63 million. The total retail value of the development is about $15 million, Royal Acquisitions says in a prepared statement.
Thirty of the 85 planned townhomes are pre-sold in a price range of $160,000 to $200,000. The project is expected to be ready for occupancy by year end 2006. The joint venture is developing the project next to the University of South Florida campus where it anticipates some of the sales will be coming from.
Other sales will be emanating from the yearly influx of 200,000 new residents to the Tampa Bay market, the company states. "This increase in population contributes to a very healthy real estate market where people continuously are looking for quality homes to own in all price categories," according to Royal Acquisitions' statement.
Besides second-home development and redevelopment projects, the company is also looking to buy and develop resort properties in the US and abroad.
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