In 2018, Copperline Partners, commenced a business plan to acquire two properties in Palm Beach, FL.  The first property was The Ambassador Hotel and Apartment Cooperative.  Built in two phase, 1947 and 1968, the property was an operating hotel coop of 110 keys with individual share ownership made up primarily of owners from the Northeastern United States.  The property is well-located on the ocean with operating licenses for hotel, restaurant, and apartments.  Initially met with extreme resistance from the coop board, Copperline’s team spent almost two years, meeting individually with many of the multi-generational owners and eventually came to a satisfactory deal for all of them.  Once closings occurred, a light renovation of the asset commenced.  Although many of the units had been upgraded and modernized over the years, most had not.  Copperline’s inhouse construction division began with cosmetic enhancements to the individual units as well as the common area hallways and fitness center.   A significant renovation was then completed to the pool deck and restaurant area.

While closings for the Ambassador Hotel units were being negotiated, Copperline began to focus on the Edgewater Apartment Coop located directly across the street.  The Edgewater is located directly on the intracoastal and is made up of 34 apartment units ranging from one to three bedroom floor plans.  The three story elevatored building was built in 1968 and sits on a wide portion of the Intracoastal Waterway.  Purchase negotiations were successfully concluded and closings took place shortly after the Ambassador closings.  Many of the units were already upgraded and required very little follow-on renovations were required.

The combined unit purchase price for the Ambassador was $63,000,000 with a renovation cost of $3,000,000.  The Edgewater unit purchase price was a combined $22,000,000 for the 34 units.  In addition, Edgwater was encumbered by a land lease, which Copperline purchased for an additional $11,000,000.

As Copperline Partners began a process with the municipality to execute its long-term business plan, an international hotel/condominium developer purchased the assets for $147,500,000.  The purchase was completed in 2021.  The resulting IRR was 32%.