SOURCE: Omega Commercial Finance Corporation

Omega Commercial Finance Corporation

July 11, 2016 06:00 ET

Omega Commercial Finance Corporation Secures $650,000 for Omega FLK Property LLC to Reposition Hospitality Property

MIAMI, FL--(Marketwired - Jul 11, 2016) - Omega Commercial Finance Corporation (OTC PINK: OCFN) through its subsidiary Omega FLK Property LLC herein referenced (FLK) has secured a $650,000 capital contribution in exchange for a 10% equity stake in FLK for a silent "individual" partner.

These funds will be used to support the repositioning of a 23-room boutique hotel property containing a 15-boat slip marina located on 3.4 acres in the Florida Keys. The property was recently acquired through a 5-year lease purchase contract as previously announced in a May 24th 2016 press release. Management's strategy is to upgrade the property with 4-star high-end décor and upgraded amenities. FLK believes from its historical analysis of industry STAR reports for the Marathon hotel market that this value-add approach coupled with offering rates at competitive price points could enable FLK to be an ideal sought after tropical destination and major player in the Florida Key's boutique hospitality market.

Management believes they can increase the average daily rates (ADR's) as a result of the renovations and upgrades, which in turn typically increase net operating income (NOI) levels that could yield a stabilized value well over the lease agreement's option purchase price of $6,500,000. Fundamentally based on the STAR report's average seasonal occupancy rate of 77% coupled with the proposed renovations and anticipated demand for the tranquil 7 standalone villas resting along the waterfront, management estimates these select units can allow for an overall ADR to reach over $200 per night; which they project in a 12-month trailing cash flow Stabilized Valuation model. Based on this model the property could appraise for a value of $18,500,000 or 2.8x the option price. The property is currently operating at a 95% occupancy rate as a month-to-month short-term rental property generating income to FLK in the interim.

The goal for FLK is to transition the property over the next six (6) months to a 4-star resort destination rebranded under the name Bluewater Cay Hotel & Marina Resort. As Eran Danino President of OCFN stated in "The Real Deal's" May 25th 2016 article, "Ultimately our macro view is that by repositioning this asset it will become one of the pieces to the puzzle incorporated into our plan to migrate to the NYSE in the near future."

About Us:
Ωmega Commercial Finance Corporation is a publicly traded holding company trading under ticker symbol (OTC PINK: OCFN) and owner of an umbrella of diversified related companies consolidating their assets and cash flow to its balance sheet to build value for shareholders. Collectively, OCFN is capable of providing CRE financing, capital markets services, and institutional finance coupled with real estate property ownership. As a holding company, we do not directly produce goods or services within that specific entity; rather its purpose and function is to generate revenue and shareholder value through creating an umbrella of synergistic companies via a merger and acquisition growth strategy to form a corporate group of operating commercial real estate & capital markets subsidiaries.

Safe Harbor
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Omega Commercial Finance Corp., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential", "project" and similar expressions are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those projected in the forward-looking statements.

Contact Information