ANNA MARIA ISLAND – At a time when some Anna Maria Island property owners are trying to save their hurricane-damaged homes, developer Shawn Kaleta is seeking investors to help him redevelop Anna Maria Island with a focus on luxury accommodations.
On Nov. 8, The Sun obtained a copy of a prospectus-like document containing the title: “Anna Maria Island Development Fund.” The seven-page PDF document that references Kaleta and his business endeavors includes the following quote: “Our vision is to revitalize and elevate Anna Maria Island, enhancing its appeal as a premier luxury destination. Similar Destinations: Naples, Florida.”
The document also states, “Outdated homes have been impacted in the storms, leaving room for only new, safer luxury construction.”
AMI Development Fund
The second page of the AMI Development Fund document bears the title “Developer Shawn Kaleta and Team” and states: “Leading the Island Development Fund is Shawn Kaleta, a seasoned 20+ year Anna Maria Island real estate developer who owns over 1 Billion in real estate assets and is Anna Maria’s largest real estate holder. Over the past 20 years, Shawn has owned, developed and constructed over 1000 homes on the island and has played an integral role in building Anna Maria into the luxury vacation destination it is today. On top of his personal holdings and developments, Shawn and his companies own and operate many businesses on Anna Maria including 3 property management companies, 3 hotels, 2 restaurants, a real estate brokerage, and a marina as well as many other businesses in Key West, Siesta Key, Lido Key and Casey Key.
“Due to Shawn’s insatiable appetite for the continued improvement and growth of Anna Maria Island, property values will continue to rise as they have under his influence for the past 20 years while he continues to transform the island into one of the top vacation destinations in the country.”
The third page, titled Market Outlook and Future Vision, states in part: “Growth of Real Estate Prices on Anna Maria: The vast improvement of housing quality on the island will lead real estate values to appreciate rapidly. Projected FED (federal) interest rate reductions will see an increase in property values of real estate at a 15-20% rate. Vacation Rental market provides high rental rates for end users to capitalize on.”
Page 4, titled “Investment Details,” notes that the goal is to raise $50 million in the next 3 to 3.5 years, with 10% of the funding to come from the general partner (Kaleta) and 90% to come from the limited partner investors with a 50-50 general partner/limited partner profit split. Apparently, in exchange for his 10% investment, Kaleta would receive 50% of the profits and the other investors would share the remaining 50% of the profits.
Page 4 contains the following bullet points:
- “Investment and returns to be distributed upon sale of each home;
- Each home treated as its own individual deal;
- Sale of home for investment and leisure purposes;
- Investments will be redistributed at a first in first out basis;
- No management fee.”
Page 4 also states: “18-22% expected yearly IRR” regarding the internal rate of return on the investment.
Targets
Page 5 contains a cash flow analysis for two residential properties located on Anna Maria Island.
The cashflow analysis of the first property is for an “Inland Lot – New Build” at 110 Ninth St. N. As of Nov. 4, the 110 9th St LLC was registered as a Florida Limited Liability Company with the Florida Division of Corporations. The LLC lists attorney Louis Najmy as its registered agent and Kaleta as its manager.
According to the Manatee County Property Appraiser’s Office, the only property with that address on Anna Maria Island is located in Bradenton Beach, not Anna Maria, as the prospectus claims. The FEMA market value of that home was $787,128 as of Jan. 1. The owner is listed as the Constance C. Novak Trust.
FEMA market value is the improvement value (the structure or structures on the property) plus 15%, according to Bradenton Beach Building Inspector Darin Cushing.
The cost analysis lists a $900,000 land purchase price, an additional $10,000 in closing costs and $910,000 as the capital required. Regarding the construction costs, the cashflow analysis lists $50,000 for design and permitting, $1.325 million for hard costs and $325,000 for soft costs, totaling $1.7 million on construction costs.
The cashflow analysis includes an additional $170,000 in construction loan interest expenses, bringing the total estimated construction cost to $2.78 million, with an estimated sale value of $4.5 million. The cashflow analysis does not provide any additional details on the design and permitting costs or the hard costs and soft costs.
The cashflow analysis for the second property is for an “Inland Lot – Renovation” at 709 Fern St., Anna Maria. As of Nov. 4, the 709 Fern LLC was registered with the Florida Division of Corporations. The LLC lists Najmy as its registered agent and Kaleta as its manager.
According to the Manatee County Property Appraiser’s office, that property contains a ground-level, single-story residential structure with a FEMA market value of $626,678 as of Jan. 1. The owner is listed as the Karen E. Sparks Declaration of Trust.
The cost analysis lists an $800,000 land purchase price, with an additional $10,000 in closing costs totaling $810,000 for the capital required. According to the Stellar MLS listing, the home and property at 709 Fern St. sold on Nov. 8 for $855,000, which is $55,000 more than the purchase price listed on AMI Development Trust document.
The MLS listing includes this note: “Storm damaged selling as is. Options available: remove structure and build new on a beautiful island location or maybe restore this charming beach cottage to its original state adding flood proofing technology.”
The cashflow analysis for the 709 Fern St. property lists $5,000 for design and permitting, $50,000 for hard costs and $95,000 for soft costs, totaling $150,000 for projected construction costs. The analysis lists $960,000 as the total project cost, with an estimated sale value of $1.5 million.
For the 110 Ninth St. property, the “Investor IRR Analysis” lists no anticipated capital return in year one and a $1.202 million capital return in year two. Regarding the 709 Fern St. property, the Investor IRR Analysis lists a $729,000 investment and a $961,500 capital return in year one.
The final page of the seven-page document is a “build gallery” that contains six renderings of interior views and patio and pool views of a non-specified property or properties.
On Friday afternoon, The Sun reached out to Kaleta and Najmy seeking seeking comment on the Anna Maria Island Development Fund. No response was given.
Asset amendments
The AMI Development Fund document states that Kaleta owns three property management companies and a real estate brokerage.
According to the Florida Division of Corporations, the Prime Vacations LLC created for that property management company in 2021 still listed Kaleta as its LLCs authorized person and Najmy as its registered agent as of April 25.
On Oct. 30, an amendment to the articles of organization for the Prime Vacations LLC was filed and now lists the Plantation, Florida-based CT Corporation System as LLC’s current registered agent and the New York City/Park Avenue-based GSP Prime Buyer LLC as the LLC’s manager. Kaleta’s managerial status with Prime Vacations LLC is now listed as “removed.”
On April 25, the AMI Locals LLC associated with the AMI Locals real estate company listed Kaleta as its manager and Najmy as its registered agent. On Oct. 30, those articles of organization were amended in a similar manner which now lists CT Corporation System as the LLCs current registered agent and GSP Prime Buyer LLC as the LLC’s manager, with Kaleta’s managerial status “removed.”
It is not known what, if any, ownership share Kaleta still has in AMI Locals and Prime Vacations.
