SPRING / SUMMER 2007 NEWSLETTER
INVESTMENT FUND UPDATES
Paradise Investment Fund
The Paradise Investment Fund’s 2006 Capital Campaign
generated $550,000 in new capital from several new investors.
Overall the Fund generated a return on investment totaling
24.8%. A cash dividend totaling 12.4% was paid to investors
while another 12.4% was reinvested in the Fund.
Last year $322,400 was distributed to investors and over
$500,000 has been paid to investors since the Fund’s inception.
The Paradise Investment Fund’s holdings increased $2,130,402 going from $11,112,771 to $13,243,173, while
net equity exceeded $4.5 million.
As market conditions change, we are implementing new strategies to continue growing the Fund. These
strategies include building homes for sale to end-users on three properties owned by the Fund. To accomplish
this, joint ventures have been formed with Brentwood Custom Homes and Celebration Homes.
During the ﬁrst quarter, the Paradise Investment Fund closed on ﬁve new condominiums. This includes
two units in Centre Court Ridge and one unit in the Reunion Grande, both located in Reunion Resort and
Club. Two other condominiums were purchased in the Tidelands, located in the Palm Coast of Florida. All of
the closings are a result of contracts for purchase that occurred several years ago and construction is just now
Our strategy for this year includes the continuation of our capital campaign to close the Fund and to continue
seeking proﬁtable investments, with a particular focus on land acquisitions.
We will continue to generate returns for investors through the
timely sale of assets while reducing Fund expenses by negotiating
the best ﬁnancial deals that reduce interest rates, ﬁnancing fees,
closing costs, commissions and operating expenses.
There are opportunities to increase your current investment or
become a new investor. To learn more about these opportunities,
please contact Ralph Dickerson, Managing Director of Private
Equity (firstname.lastname@example.org), or Eric J. Waddell at
INVESTMENT FUND UPDATES
Paradise Series II Grey Oaks
W addell, Williams & Associates expects the Paradise Series II Grey Oaks project, ofﬁcially called Traditions, the Golf
Residences at Grey Oaks, to gain tremendous speed this year. All permitting and approval delays that occurred last year
have been resolved, and all construction and loan documents were signed in the third quarter of last year as a result.
The Landmark Development Group held the ofﬁcial groundbreaking on February 5, 2007 for the launch of media
and advertising campaigns. Since then, six buildings are under construction (including 2 models). This represents 24
individual coach homes of the 44 coach homes released for sale.
Despite the delays with permitting and approvals, the project cost actually decreased which resulted in a reduction in
the amount of money required for construction. This loan reduction leads to revised ﬁnancials that increased the projected
proﬁt of the project by $9.8 million. As mentioned in prior communications, the appraised land value doubled resulting
in an appraised value of $46 million, thus reducing the need for ﬁnancing reserves and further reducing loan interest.
As marketing and advertising increased with ads in local newspapers and realtor events, sales increased and 13 units are
now sold with several other contracts pending. Landmark Development Group projects sales will continue to increase as
the models are completed and market events continue.
Conservatory Growth Fund
W addell, Williams & Associates recently launched phase one of the Conservatory Growth Fund which is designed to
generate returns for investors through the construction and sale of homes in the Conservatory at Hammock Beach.
The Fund is a $15,000,000 -$18,000,000 fund with the ﬁrst phase of capital investment totaling $5,000,000. Several
strategic alliances have been formed with the launch of the Conservatory Growth Fund, including joint ventures with
Bova Construction and Brentwood Custom Homes.
The Conservatory at Hammock Beach is a Ginn Company community located on the Palm Coast of Florida. The
community has approximately 342 home sites and features an 18-hole
Tom Watson designed golf course.
In addition to membership in the Conservatory, owners have the
privilege of membership in the Club at Hammock Beach, The Ocean
Club, and the Yacht Harbor Village.
The Ocean Hammock Golf Course was designed by Jack Nicklaus
and is situated along the Atlantic Ocean. It features a driving range,
practice putting greens, clubhouse and dining facilities.
Conservatory members, through the Club at Hammock Beach, Ocean
Club and Yacht Harbor Village, have access to a beach club complete with distinct pools, water slides, lazy rivers and kid’s
pool areas. Also included is beach access, various restaurants and bars, a 4,000 square foot ﬁtness facility, a 10,000
square foot spa facility, a 9 hole putting course and tennis facilities at Yacht Harbor Village.
ANNUAL INVESTOR MEETING
On March 16th and 17th, Waddell, Williams & Associates Celebration Homes was featured during the Ginn OPEN
welcomed over 50 people to the annual investor meeting. A with a booth that displayed our custom homes. Celebration
cocktail reception was held on Friday the 16th on the 11th Homes is also linked with Countrywide and SunTrust in
ﬂoor of the newly opened Reunion Grande. seminars on ﬁnancing and building a second home.
The Paradise Investment Fund owns a unit in the Reunion Attendees had the opportunity to meet and speak with Art
Grande, and it was a great opportunity to showcase the site and Lou Shafran, the owners of Landmark Development
to investors. The Friday event took place on the 11th ﬂoor, Group (the developers of Traditions, the Golf Residences
featuring a Tapas Restaurant, bar and pool. The views at Grey Oaks). In addition to speaking with the Landmark
overlooking the Reunion Resort and Club community were Development Group owners, attendees had the opportunity
breathtaking, with distant views of Epcot Center, where to talk with Mike Diamond, the Vice President of Sales for
you can see ﬁreworks nightly at 9:00 pm. Landmark Development Group.
Saturday began with a breakfast buffet followed by a Over the last year, several people have asked when our next
meeting in the Reunion Grande ballroom. During the investment fund was going to be launched. Attendees had the
meeting, guests were provided updates on the investment opportunity to see Landmark Development Group’s plans for
funds. (For those unable to attend the event, these updates developing and building homes, coach homes and multiple-
are included in this newsletter.) family structures in the Lake Club in
Several major announcements were
released at the meeting including the We anticipate launching an
establishment of Waddell, Williams investment fund with Landmark
and Delano Development Group, Development Group to support
the funding source of Celebration the multiple projects targeted for
Homes (which became a featured construction in the Lake Club in
builder in Reunion Resort and Club August 2007. The early projections
in January 2007) and the ofﬁcial indicate the capital needed for this
launch of the Waddell, Williams & investment fund will range from $10-
Associates Foundation. $20 million and the project debt is
From Left to Right:
expected to exceed $100 million for
Attending the event, representing Michael Borders, Steve Gulotta, construction and expenses.
Waddell, Williams and Delano Development Group and Lisa Fletcher, Steve Fletcher
Celebration Homes, were Steve Fletcher and his wife Lisa. Overall the project should exceed $250 million in sales
Steve is our partner in Waddell, Williams and Delano upon completion. Interested investors will receive updates
Development Group and he is the Director of International and executive summaries as we move closer to launch the next
Sales for Celebration Homes. investment fund.
Steve and Lisa have residences in the United Kingdom The annual event concluded with the attendees participating
and Reunion Resort and Club. They bring a tremendous in the charity golf tournament for the Foundation. Over
amount of experience to our international marketing group $4,000 was raised from the attendees and the silent auction
with their knowledge of the European markets. that was held where several attendees purchased golf and
Celebration Homes was also represented by Steve Gulotta,
Director of Sales. Since the inception of the joint venture Our annual investor meeting for next year will be held in
with Celebration Homes in January of this year, numerous May or June as a convenience to investors. Hopefully the
contracts have been signed to build homes, including a schedule change will eliminate conﬂicts with Spring Break,
home for one of Michigan’s “Fabulous Five”. Easter and the Ginn OPEN golf tournament.
THE WADDELL WILLIAMS & ASSOCIATES FOUNDATION
The Waddell, Williams & Associates Foundation began several years
ago when the original business plan for the company was written. Our
goal was to create a company that supported our core values of helping
others create generational wealth. Along with creating wealth, we
wanted to utilize that wealth to help the people of our community grow
It is this desire that lead to developing and implementing the initiatives that
ultimately lead to the launching of The Waddell, Williams & Associates Foundation.
At our 2007 annual investor meeting, Osceola County Commissioner Ken Smith was
the guest speaker during the inaugural public introduction of the Foundation.
Our Mission Osceola County Commissioner Ken Smith
Our mission is simple: The Waddell, Williams & Associates Foundation is a charitable resource that ﬁnancially
supports other charitable organizations that have a focus on improving the lives, health, welfare and education in the
communities of our customers, investors, partners, associates and members.
Our volunteers research and investigate charities in the communities that support our core values and during the
year we have visited and volunteered with many of these organizations. As a result we have touched and supported
numerous organizations including the Boy Scouts of America, the Urban League, Osceola County Education
Foundation, the First Tee Program, Give Kids the World and the American Cancer Society, just to name a few.
Our efforts have lead to several major donations to the Osceola Education Foundation, Dayton Public School
System and the “I Have A Dream” Foundation. The “I Have A Dream” Foundation is an organization that provides
free college tuition to elementary and pre-school students that graduate from high school and participate in their
mentoring, coaching and development programs.
Over the next several months and years, the Waddell, Williams & Associates
Foundation will continue to seek out charitable organizations to support and
ways to raise capital for supporting these organizations. For further information
about the foundation please go to www.wwafoundation.org or contact
Lawrence Williams at 321-559-1107.
From Left to Right: Virginia Shelton,
Lawrence Williams (Foundation Chairman),
and Jim Shelton (Foundation Treasurer)
THE PRIVATE EQUITY MARKET
2006 proved to be another record year as 684 new Waddell, Williams & Associates’ strategy is to expand
Private Equity Funds achieved ﬁnal closes, raising a our real estate investment funds as we expand our investor
massive $432 billion. This represents a 38% increase base to include Pension funds (public and corporate),
over the $314 billion raised in 2005. Foundations, Endowments and Taft-Hartley’s.
US ﬁrms raised $295 billion, an increase of 32% which While expanding our investor base we are also
accounts for 68% of the global total in funds raised. broadening our investment strategy, scope and criteria
These funds crossed all sectors including the following: to the following:
• Buyout funds up 45% • Investment Size: $10-$25 million equity
• Real estate funds increased 30% • Project size of $50-$200 million (equity and debt)
• Mezzanine funds up 69% • Commercial projects that are cap rate driven such as:
• Distressed debt funds grew 19% • Lodging/hotels
• Fund of funds increased 30% • Multi-family
• Venture funds declined 10% • Retail
The industry refers to last year as the “Year of the Mega Waddell, Williams & Associates is also considering co-
Fund” as the ten largest funds rose over $100 billion investment and partnership opportunities with several
and six of the ten largest private equity funds in history Fortune 100 ﬁnancial institutions and investment
were created in 2006. Waddell, Williams & Associates companies. We are actively engaging with these partners
forecasts another record fundraising year for 2007, with to co-invest capital totaling $20 - $50 million for projects
as much as $450 - $500 billion in new capital. in excess of $200 – $250 million.
The real estate market had a record year with a total Waddell, Williams & Associates is evaluating
of 96 new funds raising $57 billion in 2006, which commercial, resort and residential projects in both
is a 30% increase over the $44 billion raised in 2005. domestic and international markets. These projects
The driving factor behind the burgeoning fundraising include the development of commercial ofﬁce and retail
in the real estate private equity market is strong stable space, in addition to the development of large multi-
performance. Despite changes in the market, real estate unit and multi-family residential facilities.
funds have a lower risk proﬁle (standard deviation
between better- and worse-performing funds than other
Meet two very interesting people: Mike and Vicky Crawford. They are a powerful couple from
Maryland with strong ties to their church and community with the desire to serve, help and assist
family, friends and persons in need.
Mike became a Computer Information Technology Manager for the
Department of Treasury after ending his ten year career in the Air Force.
Vicky has spent over twenty eight years in the Federal government with
various agencies. Vicky served many years as an Equal Employment
Opportunity (EEO) counselor with the Department of the Interior.
After receiving a recent promotion, she moved to the Department of
Homeland Security as an Equal Opportunity Specialist. As young as they
both look, they will be eligible to retire from the Federal government after
each committing over thirty years of service in 2013 (Vicky) and 2014
They are the proud parents of two sons (Xavian & Michael, wife Kenya) and grandparents of two
beautiful grandchildren (Xana & Kaden). Both are heavily involved in their church and are active
volunteers for charitable organizations in the Maryland, Virginia and Washington DC areas.
Mike and Vicky have been investors for several years and are also members of other investment
groups. Their goal is to continue building their retirement nest egg along with passing on generational
wealth to their children and grandchildren.
PLEASE VISIT OUR WEBSITES AND OUR PARTNER WEBSITES:
A Message from the Manager
Our annual investor meeting was held in the Reunion Resort and Club located on approximately 2300 acres, and just
minutes from Walt Disney World. Waddell, Williams & Associates’ reason for holding the meeting in Reunion Resort and
Club is to give the Paradise Investment Fund members the opportunity to see some of their investment dollars at work and
to allow them to enjoy the amenities of Reunion Resort and Club.
As the Reunion Resort and Club continues to grow and improve, the value of our investments will also continue to grow.
The resort experience extends from three Signature Golf Courses, the Jack Nicklaus, Arnold Palmer and Tom Watson, to the
multimillion dollar Water Park, boutique Spa, Fitness Facilities and Tennis Courts, with pro shops for both golf and tennis.
The resort also features ﬁne and casual dining with the opening of Reunion Grande condominiums, located in the heart
of Reunion Resort and Club. Reunion Grande features formal dining at Forte and casual dining at Eleven (on the eleventh
ﬂoor) which features a swimming pool and tapas bar overlooking Reunion and the Disney resorts.
Future plans include the opening of Horse Stables and Riding Trail, and the construction of Reunion Square which will
feature a village with sidewalk cafes and boutiques. In the resort, guests can stay at any of the numerous condominiums and
homes available for rent.
Orlando itself offers an array of entertainment for all ages with its nightlife, shopping, concert venues and athletic facilities.
All of this is within minutes of the Reunion Resort and Club including the four Disney Theme Parks of Magic Kingdom,
Epcot Center, Disney-MGM Studios and Animal Kingdom. Also located nearby is Universal Studios, SeaWorld and
professional sports including the Orlando Magic basketball team. Reunion Resort and Club is home to the Ginn OPEN
which is one of the largest LPGA events in the country. The Atlanta Braves and the Houston Astros baseball teams call the
resort home during spring training season. Rumor is that other professional teams holding training camps in the area are
planning to move their training camp headquarters to Reunion Resort and Club.
Waddell, Williams & Associates welcomes all Paradise Investment Fund members, friends and newsletter readers to
consider vacationing in Reunion Resort and Club. We have found that many of our friends and associates have enjoyed
the resort so much that they have decided to invest in the Paradise Investment Fund which owns a signiﬁcant amount of
property in the resort. Sometimes a person has to see the opportunity, to understand the vision. We welcome the opportunity
to help you understand our vision. Please let us know when you visit Florida so that we may provide you with a tour of the
Reunion Resort and Club and introduce you to our investment strategies.
Eric J. Waddell