Our Plan

Canterbury Condo Partners, LLP, has understood the latest condo-conversion trends that reflect the continued strength of the U.S. housing market, which has been the economy's pillar over the past three years. It also reflects the extent to which condos have become a major force in the nation's housing market. Condominiums have been a fast- rising segment of the overall housing market, especially as interest rates fell, making them more affordable. Interaktion is seeking partners to participate in the Partnership in pursuit of the goals set forth in this Business Plan, which, in sum, is to purchase, at successive intervals, existing apartment complexes in a geographical area where the Partnership believes it can obtain the highest returns on its investment. 

At these successive intervals, the Partnership intends to either: (1) purchase an apartment complex and make improvements to and renovate the complex for the purpose of converting the apartments to condominium units which may be offered for sale; or (2) purchase the apartment complex and take actions which may be necessary for the complex to be "ripe" for a conversion by an interested purchaser. The Partnership intends to be involved in all phases from purchasing, renovation, and resale on condo units. All portions of the acquired property's anticipated net profits, less what the Partnership may require to further pursue its business plan, will be shared with the partners on a pro rata basis.

Partnership Description
In December 2003 Interaktion Properties Inc., (a partner) a Florida corporation, was formed. The purpose of Interaktion Properties is to exploit multiple areas of real estate investment opportunities. The Partnership was formed by Interaktion Properties in May 2005 for the purpose of exploiting the "condo conversion" area of real estate investment opportunities.

There has been a recent movement toward converting apartment complexes into condominium units. Often times these conversions are resold as condos 'as is," that is, without any modification to the apartment for use as a condominium unit. The Partnership intends to make improvements to the apartment complex to give it an anticipated advantage over those apartments which have been converted to condos without renovations and are being sold "as is."

The Partnership and Interaktion Properties have been studying the condo conversion movement that highlights the ever-increasing profitability of real estate investment opportunities. The Partnership's focus will be on the purchase and resale of one or more apartment communities in order to convert them to condominiums.

Mission Statement
Interaktion is an innovative real estate investment company that seeks to profit from the ever-burgeoning real estate market. Interaktion is committed to work with its partners in building Canterbury Condo Partners into a successful real estate venture. By working together with its partners, it will endeavor to turn the current turbulence of today's business market into lucrative real estate investment opportunities, by purchasing apartment communities at attractive prices and then converting them to condominiums for sale to the public for profit. Interaktion values integrity and honesty and respects its relationships with its partners, its business relationships and with each person and company with whom it conducts business.

Industry Analysis
The low interest rate affliction that has crippled apartment fundamentals for several quarters is driving the biggest condominium conversion boom in two decades. Condo developers are swarming markets across the country, paying a premium to acquire and transform rental properties into condos.

While the successful sale of condos can generate cash-on-cash returns in a matter of months for converters, the trend also enables apartment owners to cash out at the top of the market. In addition, conversions create more affordable housing in areas famous for steep single-family home prices.

The Partnership's initial partners believe that the apartment-to-condo conversion trade is a hot market, and their belief is supported by certain statistics published by disinterested third parties. Through mid-May of this year, condo converters paid $1.6 billion, or $155,400 a unit, according to New York-based Real Capital Analytics. If that pace continues for the balance of the year, the dollar amount paid by converters to acquire apartments will easily surpass last year's total of nearly $2 billion, or $123,575 per unit.

"There's hardly any major or quasi-major market where condo conversions - even downtown loft-type of conversions - haven't caught on," says Arthur Nevid, managing director of investment and lending for Charlotte, N.C.-based Mountain Funding. The firm provides senior and mezzanine debt, as well as preferred equity, to opportunistic developers for condo conversions and other property types. "Everybody's jumping on the bandwagon to get into the conversion business because it seems so exciting and so robust," says Nevid. "It's a fever, and it's all over."

In fact, some conversions ultimately end up as rentals and compete with apartments, say both Chase and Linwood Thompson, managing director of Marcus & Millichap's national multifamily group. Speculators may buy condo units, intending to sell them at a higher price a short time later, for example.

Marketing & Sales Strategy
The Partnership is focused on the successive purchases of existing apartment communities to be renovated and resold as condominiums. The Partnership intends to distribute profits, if any, from the sale of the converted condominium units, to its partners on a pro rata basis.

Target Market
The Partnership recognizes that there is an enormous unmet need for persons who want to take advantage of real estate investments but who cannot (or will not), by themselves, invest in the purchase of an entire apartment complex.

The Partnership also believes that nowhere is the conversion craze hotter than in Florida, which is enjoying an influx of young, educated workers and second-home buyers from South America and Europe along with the northern snow birds that routinely flock to the state in winter. Combined, the Miami/Dade, Broward/Palm and Tampa markets in that state represented 30% of the $2.6 billion of apartment acquisitions targeted for conversion between early 2003 and early 2004 in the U.S., according to Real Capital Analytics. Northern Virginia ($341 million), San Diego ($175 million), Chicago ($135 million) and Atlanta ($99 million) followed. Therefore, Interaktion is partnering up with individual investors so that each of its partners can (1) participate in the exciting world of real estate investment opportunities and (2) can share in the anticipated profits to be derived from the ever-increasing demand for apartments-turned-condo in the state of Florida.

Operations
The Partnership shares office space with Interaktion and other real estate ventures of which Interaktion is a party. The office is located at 6700 Pines Blvd., Pembroke Pines, Florida, 33024.

Benefits of Partnering with Interaktion Properties
Some of the most attractive features of becoming a partner in the Partnership are that the partner is regularly kept up to date and has the opportunity to participate in important business decisions, which may include the purchase and sale of particular properties. The Partnership intends to have an open line of communication with its partners via the Internet and other sources of communication. The Partnership is creating a "partner forum" section for its website, which will provide each partner with the opportunity to communicate with each of the other partners via the Company's website.

Long-Term Goals
Real estate investments are often total return investments that may provide high dividends plus the potential for long-term capital appreciation. The Company, by a vote of its partners, may decide the hold any converted condos for long-term capital appreciation. While the Company's short term goals are to purchase apartment complexes, quickly convert them to condos and immediately put them on the market for sale (for at least three rounds as described elsewhere in this Business Plan), the Partnership may look for other convertible properties which may benefit by long term appreciation as opposed to a quick sale. The Partnership will look for input from its partners and advisors regarding whether any particular real estate purchase should be held for the long term.

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