Still not an expert on development, but if this was my project (and I'm in the industry), I would consider this a rehab/condo conversion. The best that I can tell from local realtors is that the property started as an apartment complex, and then in its decline, was sold as individual condo/townhome units.
What confuses me is that based on other records, there are 81 total units, so perhaps these 30 some odd units were the last remaining apartments, I can't know for sure.
Either way, these kind of projects can be tricky. There can be hidden costs like structural/engineering issues and environmentals since it so close to water. Hopefully they really did their homework, and while RB is gruff, he's pretty competent at that. Plus, he was a member of the HOA board for years at Harbour Townhomes, so he should know that property in and out.
Short Answer: if they did good DD and knew what they were getting into, don't get fancy, and do just a "skim fix and flip" to bring it up to average market comps, modernize the marina and build some new townhome units or multi-use Commercial piece on the raw land, they could probably swing $8-10 million base case scenario profit. Remember, wil inhouse builders, all this can be done at cost, which is typically 50-70% of retail.
Long Answer: Every project is different, who knows what the zoning is, how tough it is to get variances, what the real "best-use" of the property is etc etc. If they do a complete tear down and start from scratch, the sky is the limit on costs, but also potential profits. Shoot, we don't know if Madisonville might even let them build some kind of condo high rise, whatever. Thankfully, they know that market better than we do.
Ren
"Experience: that most brutal of teachers. But you learn, my God do you learn." C.S. Lewis
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