beacon hill property group - 310 meridian presentation ...€¦ · beacon hill property group - 310...
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310 Meridian AvenueMiami Beach, FL 33139
Presented - May 21, 2018
Confidentiality & Disclaimer Statement
This Presentation has been prepared by Beacon Hill Property Group. The information contained herein is confidential and furnished solely for the purpose of your consideration of engaging Beacon Hill Property Group to provide real estate services. It is not to be used for any other purpose or made available to any other person without the written consent of Beacon Hill Property Group. The information contained in this Presentation was obtained from sources we deem reliable. That said, you should conduct your own independent evaluation and not depend solely on the information contained herein.
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Table of Contents
4-5
6
7-9
10-12
Why Beacon Hill.………………………………………...
Executive Summary.………………………………….…
The Property……………………………………………….
The Market…………………………………..………........
Sales Strategy & Investor Perspective…….....…..
13-14
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Executive Summary
SALES STRATEGY
• List at $5,000,000 ($713/SF)
• Market the property as a short-term rental investment opportunity
• Execute a multi-channel marketing campaign:
1. Direct targeting
2. Proprietary database
3. Online sale platforms
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Executive Summary
Short-Term Rental Thesis
Investor Returns
Profit $3,369,463
ROI 55.81%
IRR 25.28%
Stabilized Yield 8.99%
Year 0 1 2
Capital InvestmentPurchase + Improvements ($6,037,500)
Asset P&L 50% Stabilized 100% Stabilized
Net Operating Income $271,354.69 $542,709
DispositionSale Price $9,045,156
Sale Costs 5.00% ($452,258)
Net Proceeds $8,592,898
Project Total Cash Flow ($6,037,500) $271,355 $9,135,608
2 Year Project Cash Flow
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The Property
1820 NE 146th St
• 310 Meridian is a 17 unit multi-family apartment building ideally positioned in the heart of South Beach’s coveted SoFi neighborhood.
• Required hotel entitlements in place to operate as a short-term rental property.
• Modest $1.037M CapEx investment required to reposition this asset as a short-term rental property.
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The South of Fifth neighborhood has experienced consistent development growth, including multiple boutique luxury residential development projects.
SoFi now boasts seven unique and recently completed luxury projects including 321 Ocean, 350 Meridian, Glass, Louver House, Marea South Beach, One Ocean and Three Hundred Collins. As increased density reduces development opportunity, owners will benefit from heightened barriers-to-entry.
The South of Fifth neighborhood has established itself as the preeminent neighborhood for tourism and luxury living in South Florida.
The Market
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• 58.5% of 15.9M annual visitors to the greater Miami area lodge in Miami Beach
• 86.2% of visitors come for leisure
• Miami Beach Hotel occupancy is 86%
• Miami Beach average room rate is $350.66
• Market share of short-term residence rentals increased 480% from 2013 - 2017
*Source is Greater Miami Convention & Visitors Bureau. Based upon February 2018 Data
Miami is a Top 5 Hotel Market Nationally
The Market
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The Market
Available For Sale
Closed Sale Transactions
Address Asking Price Building SF Land SF PSF Building PSF Land Description
251 Washington $7,700,000.00 13,000 $592.31 Raw Land; Development opportunity.
334 Ocean Dr 7,631 5,750 $0.00 28 room hotel; 192 SF avg room; 2 story;
304 Ocean Dr $11,000,000.00 10,125 11,325 $1,086.42 $971.30
Could develop up to 20,1225 SF residential or hotel.
Currently raw land.
226 Jefferson Ave $4,490,000.00 4,299 7,000 $1,044.43 $641.43 9 units multi-family property, 1 story. 4% cap.
412 Ocean Dr $8,000,000.00 12,360 17,424 $647.25 $459.14
23 Unit Multi-Family Building and parking lot over 3
folios; property currrently leased for 26 years.
735 Meridian Ave $3,900,000.00 7,313 6,970 $533.30 $559.54 13 units multifamily building. 2 stories.
848 Jefferson Ave $3,500,000.00 6,895 6,970 $507.61 $502.15
15 metered units, currently all furnished. 2 stories.
Listed since Dec 2015.
825 Michigan Ave $3,975,000.00 9,406 6,970 $422.60 $570.30
7 units apartments property. 3 stories buidling. 100%
occupied. 4.57% cap rate.
719 7th St $2,750,000.00 7,138 6,970 $385.26 $394.55 16 unit apartment building. 2 stories.
65-75 Washington Ave
26 unit multi-family that is being marketed as laa
redevelopment opportunity for high-end retail
Address Asking Price
Building
SF Land SF PSF Building PSF Land Description Date
354 WASHINGTON
AVE $5,150,000.00 6,566 6,000 $784.34 $858.33
14 rooms hotel. Average daily rate $297. RevPar $270.
2 stories. Land use is hotel. Corner lot. 5/30/2017
321 Collins $6,800,000.00 8,766 6,500 $775.72 $1,046.15
26 room Hostel; 2 story; 196 beds; Zoned Multi-Family;
Land use is Hotel 4/11/2018
250 Collins $14,600,000.00 22,844 13,000 $639.12 $1,123.08 27 unit Multi-Family Building; 3 stories; Built 1959 3/6/2018
347 Washington Ave $5,750,000 11,228 13,000 $512.11 $442.31
355 & 347 washington ave, 2 lots.
24 rooms hotel, 2 stories. 4/26/2017
900 Pennsylvania Ave $2,825,000.00 7,632 7,000 $370.15 $403.57 14 units multi-family property. 2 stories. 10/27/2017
920 Pennsylvania Ave $2,300,000.00 6,505 7,000 $353.57 $328.57 12 units multi-family property. 5/30/2017
803 fifth st $5,965,000.00 9,000 $662.78
raw land on 5th at northwest corner of intersection
with Meridian. 6/9/2017
161 Washington $4,150,000.00 6,500 $638.46 raw land 3/31/2017
Sales Strategy
We recommend bringing 310 Meridian to market at $5,000,000. We wouldactively market the property as a short-term rental opportunity in the heart ofSoFi. A moderately aggressive asking price will ensure that we attract the largestpossible pool of prospective buyers while not leaving any money on the table.
Proprietary Database
Direct Targeting Online Sales Platforms
• Co-Star
• LoopNet
• Crexi
• RealConnex
• Beacon Hill Website
• Digital marketing campaign to more than 8,000 subscribers to our proprietary database
• South Florida focused digital campaigns
• Active Miami Beach Multi-family and hotel investors
• Strategic short-term rental operators
• All property owners in close proximity to property
Investor Perspective
Our analysis highlights the investment thesis we would utilize to support a $5M purchaseprice based on the value creation potential upon repositioning the asset as a short-termrental property.
Daily Occupancy Monthly Revenue Annual Revenue
14 Studios $175 75.00% $55,125 $670,688
Three 1 beds $200 75.00% $1,800 $164,250
Gross Income $834,938
OPEX 35.00% ($292,228)
NOI $542,709
Value Cap Rate 6.00% $9,045,156
Pro-Forma Income Statement
Capital Improvement BudgetPer Unit Upgrade $30,000 510,000.00$
Structural, roofing,
common areas 400,000.00$
Soft costs % of hard
costs 20.00% 102,000.00$
Contingency 5.00% 25,500.00$
Total Renovation Expense 1,037,500.00$
Investor Project Returns
Profit $3,369,463
ROI 55.81%
IRR 25.28%
Stabilized Yield 8.99%
Year 0 1 2
Capital InvestmentProperty Acquisition ($5,000,000)
Capital Improvements Per Door ($510,000)
Structural, roofing, common areas ($400,000)
Soft costs @ 25% of hard costs ($102,000)
Contingency ($25,500)
Total Renovation Expense ($1,037,500)
Total Project ($6,037,500)
Asset P&L 50% Stabilized 100% Stabilized
14 Studios $335,343.75 $670,688
Three 1 beds $82,125.00 $164,250
Gross Income $417,468.75 $834,938
OPEX 35.00% ($146,114.06) ($292,228)
Net Operating Income $271,354.69 $542,709
DispositionSale Price $9,045,156
Sale Costs 5.00% ($452,258)
Net Proceeds $8,592,898
Project Total Cash Flow ($6,037,500) $271,355 $9,135,608
2 Year Project Cash Flow
Investor Perspective
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Testimonials
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www.beaconhillpg.com
Lisa BolivarVice President
305-798-7218
305-798-2223
Matthew MartinezPresident
David RothensteinManaging Director
305-851-8820