Gabriel Souza, partner and real estate director of IBC - details the partnership with BDG
The industrialization process of civil construction in the United States has been the main attraction for investors in the American real estate market, especially Brazilians.
One of the main factors that attract investors is the use of the monolithic system, which makes the raising of entire floors much faster, guaranteeing celerity in the launching of the enterprises.
Gabriel Souza, partner and real estate director of IBC - International Business Consulting, a consulting firm specializing in real estate business in the United States, details the partnership with BDG - Brickless Developers Group, a construction company that develops monolithic systems, and Odagled Investment, a real estate investment platform, in the launching of a new project in Florida, the Napoli Towers, two six-story buildings with 152 apartments and one commercial space.
According to Souza, the project should be delivered in one year and IBC and BDG will operate the condominium in the lease model for another four years.
He presents some data to justify this investment model with a medium-term return:
- In the face of the pandemic, the much talked about "mass defaults" did not happen, due to the economic stimulus package from the American government. We have noticed a slight increase in the vacancy rate, but this is due to new supply.
- The demand for rental properties remains strong, and for good reason, South Florida remains a good place to live and work. The population has grown by more than 300,000 in the last five years, with 75% of these coming from other states and countries. Over the next three years, the region is expected to have an average migration of 5.7% or about 350,000 new residents. The formation of new homes for the next five years is expected to increase by 45 thousand per year, and if we maintain the current ratio of 60% new owners and 40% new tenants, the expectation is 18 thousand new tenants per year for the next five years.
The businessman adds that there is a trend of building rental apartment buildings in Miami for an income bracket equivalent to the Brazilian lower middle class, and the development being built by BDG has an average cost of $570 per square meter, which is half the cost and half the construction time of the traditional model.
The three companies involved in the project are creating a crowdfunding investment fund worth $8.3 million, with initial capital injections starting at $25,000. The investor has a percentage return on the entire project. "He does not acquire a unit of the enterprise, he becomes a partner in 70% of it. The remaining 30% is related to the participation of the three organizations that are erecting the buildings", he details.
During the construction phase, the investor will receive 1% per month of the invested value, to be paid after the third year of the project's operation. "It is a counterpart to the investment so that the money does not stand still," he justifies.
Souza recommends those who are thinking about investing in the American real estate market to filter the opportunities that present the best numbers to meet their expectations. "Our group has been working with solid partners to guarantee safer, more productive, and attractive investments for our clients," he says.
High construction technology
Gabriel Souza highlights that IBC signed a partnership with BDG due to the high technology employed in the monolithic system. Everything is done by means of monolithic concrete, from the foundation to the electrical and hydraulic structures.
He guarantees that, with this industrialized construction model, it is possible to build an entire floor in only five days. "It is the maximum industrialization of what can be done in a project, and we don't stop there. With each new building that is built, we seek to optimize and improve", points out Souza.
The entrepreneur compares the launching buildings that are being built to cite an example. Modern Towers is an ongoing project that is in the fourth tower of the first phase, with the optimization process, it is taking 25% less time to be erected compared to the third tower, with a cost that is also 25% less.
Souza predicts that the partnership with BDG and Odagled will generate a profitability of around 248% in five years. "It is something unseen in the American market, because the profitability of the traditional method averages 6-8% per year, while ours generates 29% per year," he estimates.
*Gabriel Souza lives in Miami where he has been a real estate broker for 17 years.