Portfolio Snapshot

Located just four blocks from Columbia University in an increasingly popular submarket of Manhattan, this building contained an impressive combination of current cash flow and untapped value in the form of drastically below-market rents. 7 of the 10 units were averaging $700/month rent at a time when comparable units were renting for as much as $1,800. The Company sold the property in April 2008.

 Cardinal purchased a vacant commercial building in May 2005. The development plan called for adding 6 stories to the existing building and converting the space into loft condominiums.

Since closing escrow in May 2004, 2 apartment units have been gutted, renovated, and leased, raising the income by $7,700/month. Further, a redesign of the first-floor commercial space will result in additional income and contribute to a very successful transaction.

We purchased 3 not entitled Fijian Islands in March 2005.   We have entitled a master planned community consisting of a 20 room Hotel, a Marina, and 59 (.25-1.5 acre) Home sites. 

Cardinal acquired 2 lots at the corner of Mulberry and Houston Street in December 2005. The property is located at the edge of SOHO and NOLITA. The development plan is to merge the two lots, and design build a ground up mixed-use development of approximately 24,000 gross square feet, consisting of up to 3 commercial spaces and 9 for-sale condominiums.

We purchased a multifamily property in the rapidly improving Morningside Heights neighborhood, just 3 blocks from Columbia University.  The plan is to convert the existing 20 unit rental building into 20 for-sale condominiums.

We purchased a multifamily property in the most established and prestigious neighborhood in New York City.  The plan is to convert the existing 16 residential units into 16 for-sale condominiums, and manage the 1 commercial unit.

Cardinal purchased this vacant building for $170,000 and invested approximately $66,000 in rehabilitation and carrying costs. After six months of construction, Cardinal leased all of the units and refinanced all original capital plus an additional $52,000. The property continues to create cash flow for the partners.

This property fit all of Cardinal's acquisition criteria: its location in a transitional, up-and-coming neighborhood; and a reposition opportunity via improvements. Cardinal took the property down to the studs and rebuilt it with Spanish-style architecture.

Cardinal recognized an opportunity to increase the rental income from the building through investment in improvements consistent with the existing character of the building. The renovation included refinishing the hard wood floors under the carpet, replacing linoleum with tile, and giving each unit a custom paint job. Within 4 months of closing escrow on this 20-unit complex, Cardinal was able to increase scheduled annual rental income from $163,361 to $213,420. As a result, the partnership achieved a cash-out refinance in the first year of the investment.

This was an all-cash transaction for $184,000 plus $36,000 for renovation of the units in April 2002.  In June of 2004, the building was appraised for $425,000, and a new cash-out loan of $265,000 was taken against the property.

Cardinal was able to purchase this building located within walking distance of the planned Metro Gold Line public transportation station.  At an initial cap rate of 8.9%, the initial cash-on-cash return was in the low teens, and the units were almost 50% below 2002 market rents. Through diligent management and significant capital improvements to the building, Cardinal has been able to raise rents by over 50%.

At purchase, this property was generating a limited amount of annual income due to two vacant units and rents significantly below market. Within one year, Cardinal brought 6 of the 10 units to market and made significant investments in building improvements. This reposition produced a 53% increase in the annual income of the property, and allowed the partnership to refinance out the original investment at an attractive long-term interest rate.

Cardinal closed escrow on a 20 unit multifamily property located in the East Village in November 2005. With the intent to keep with the business plan of rehabbing and raising the rents on the units, we expect to have returns similar to our historical company returns.

Cardinal has purchased and assembled 450 acres of beachfront, riverfront, and view land close to the town of Savusavu in the Fiji Islands. The development plan is to entitle the property to be subdivided in to approximately 200-250 1-acre lots for a unique residential estate community.