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20 Units | 8260 Byron Avenue | Miami Beach, FL 33141
NON-ENDORSEMENT & D ISCLA IMER NOT ICE
CONF IDENT IAL ITY & D ISCLA IMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap Real Estate Investment Services of Florida, Inc. (“Marcus & Millichap”) and
should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary
level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or
expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State
and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this
Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these
matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Activity ID Y0240200.
NON-ENDORSEMENT NOT ICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or
sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee
information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPO INTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & M ILL ICHAP AGENT FOR MORE DETA ILS
FORT LAUDERDALE OFFICECypress Financial Center | 5900 North Andrews Avenue | Fort Lauderdale, Florida 33309
TABLE OF CONTENTS
PROPERTY ANALYSIS
Property Details & Assessments 7
Investment Highlights 8
Investment Overview 9
Amenities 10
List of Renovations and Replacements 12
Area Map 14
Neighborhood Map 15
Location Highlights 16
Nearby Points of Interest 17
RENT COMPARABLES
Rent Comparables 19
SALES COMPARABLES
Sales Comparables 31
FINANCIAL ANALYSIS
Rent Roll Summary 42
Operating Statement 43
Pricing Detail 44
MARKET OVERVIEW
Demographics 46
Miami-Dade County Market Overview 48
OFFERINg MEMORANduM
20 units
8260 Byron Avenue
Miami Beach, FL 33141
Exclusively Listed By:
FELIPE J. ECHARTESenior Vice President Investments
Fort Lauderdale
(954) 245-3444
License: FL: SL696115
EVAN P. KRISTOLExecutive Managing Director Investments
Fort Lauderdale
(954) 245-3459
License: FL SL640466
PROPERTY ANALYSIS
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 7
PROPERTY DETAILS & ASSESSMENTS OCEAN BAY HOUSE
THE OFFERINg
Property Name OCEAN BAY HOUSE
Address 8260 Byron Avenue, Miami Beach, FL 33141
Assessor’s Parcel Number 02-3202-010-0380
Price $3,950,000
SITE dESCRIPTION
Number of Units 20
Number of Buildings 1
Number of Stories 2
Year Built/Renovated 1946/2017
Net Rentable Square Feet 8,830 SF
Average Unit Size 442 SF
Zoning RM-1
Lot Size 0.21 Acres
Density (Units/Acre) 95 Units per Acre
Landscaping Mature
Topography Level
uTILITIES
Water & Sewer City of Miami Beach - Paid by Owner
Electricity FPL - Paid by Owner
CONSTRuCTION
Foundation Pier Wall
Framing Concrete Block
Exterior Painted Concrete Stucco
Roof Flat Built-Up
Stairs Concrete
MECHANICAL
HVAC Individual Wall-Unit Air-Conditioning
Fire and Safety Fire Alarms and Smoke Detectors
8 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
INVESTMENT HIGHLIGHTS OCEAN BAY HOUSE
t Completely Renovated Building Occupied in 2017
t Rare Waterfront Rental Building
t Four Units Licensed for Hotel Suites
t Gated and Secured Building
t Stabilized Income in Place with Upside
t Very Low Operating Costs Due to Renovations
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 9
INVESTMENT OVERVIEW OCEAN BAY HOUSE
The Ocean Bay House which is in the North Beach
neighborhood of Miami Beach, Florida is a 20-unit,
waterfront apartment building. The building
underwent an extensive renovation and remodeling
in 2016 and was put back into
service in 2017. The property
has a mix of long term and
short-term rental units
which is rare in the Miami
Beach area. The property
has 15 large studios, four
studios that are licensed
for short terms rentals and
one, one-bedroom and
two-bathroom unit. The
landlord pays for water,
sewer, WiFi and trash
removal. The building was
developed in 1946 and completely renovated in
2016/2017.
The Ocean Bay House underwent extensive
renovations including replacing all plumbing and
sewer lines, upgrading all the electric, reconfiguring
floor plans and units, installing impact resistant
windows, structural work replacing floor joists
and beams as well as many other upgrades. The
property is also located on the Tatum Waterway
which allows property owners to build private
dockage. This property is approved for five boat
docks that can be sold to individuals or rented. The
property also has a license for four hotel rooms
which allows the owner to lease four of the 20 units
on a short-term basis which is very rare in this area.
The property is in the highly sought-after North
Beach area of Miami Beach. This area is in the
process of major regentrification with the recent
addition of the Miami Beach Town Center District that
spans from 69th Street
to 72nd Street and
from Collins Avenue to
Dickens Avenue. This
area allows for much
denser development
than the surrounding
area which has attracted
major investment in the
immediate area and
will greatly enhance the
neighborhood. There
are several other major
developments in the
area including Terra Groups Eighty-Seven Park as
well as the Ocean Terrace property which has been
in planning and approval stages for over a year. The
property is also less than a mile south of Surfside
and the Bal Harbour Shops.
10 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
AMENITIES OCEAN BAY HOUSE
unit Amenities Include:
t Completely Renovated Kitchens and Bathrooms
t Wi-Fi Connections
t Large Impact Resistant Windows
t Stainless Steel Appliances and Wood Cabinets
t Wood Floors and High-End Fixtures
t Large Closets and Ample Storage
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 11
AMENITIES OCEAN BAY HOUSE
Common Area Amenities Include:
t Waterfront Community with Potential for Boat Dockage
t Secured Building with Tranquil Setting
t Laundry Facilities On-Site
t Wi-Fi Connections
t Sitting Areas with Fire Pit
12 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
OCEAN BAY HOUSE LIST OF RENOVATIONS AND REPLACEMENTS OCEAN BAY HOUSE
Exterior
t New Impact Resistant Windows
t Replaced All Exterior Doors with Hurricane Rated Doors
t Replaced Entire Electric System
t Replaced All Water Lines with Copper
t Replaced All Sewer Lines with PVC
t Replaced Entire Roofing System
t Replaced All Railings with Modern Up-to-Code Railings
t Replaced All Exterior Lighting with Recessed Lighting in Walkways
t Added Attractive Sconces to Entrance of Building
t Installed New Landscaping and Created New Exterior Design
t New Concrete Stucco on Entire Building
t Resurfaced and Restored All Exterior Walkways
t Painted Exterior of Building
t Created Seating Areas
t Added Barbeque Area in Rear of Property
t Added Modem Gates and Secured Entrance Gates
t Added Fire Alarm System
t Updated Laundry Room
t Added New Exterior Signage
t Replaced All Soffits
t Extensive Structural Work
t 40-Year Recertification Completed in 2018
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 13
OCEAN BAY HOUSE LIST OF RENOVATIONS AND REPLACEMENTS OCEAN BAY HOUSE
Interior
t Installed Custom New High-Quality Kitchens
t Installed All New Stainless Appliances Including Microwaves
t Installed Stainless Hood Vents in Kitchens
t Completely Replaced Entire Bathrooms
t New Subway Tile in Bathrooms
t New Pedestal Sinks, Bathtubs and Toilets in Bathrooms
t New Low-Profile A/C Units and Mini Split Systems
t New Interior Doors and Hardware
t New Flooring Throughout
t Created Large Closets and Storage Areas
t Installed Recessed Lighting in Units
AR
EA
MA
P
NE
IgH
BO
RH
OO
d M
AP
LOCATION HIGHLIGHTS OCEAN BAY HOUSE
16 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
t Waterfront Location in North Beach
t Highly Sought-After North Beach Location
t Several Blocks From the Beach
t Many New Developments in the Immediate Location
t Close to New City Center District, Surfside and Bal Harbour Shoppes
t Many Shops, Restaurants and Bars in the Immediate Area
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 17
NEARBY POINTS OF INTEREST OCEAN BAY HOUSE
1
2
3
4
5
78
6
9
10
« OCEAN BAY HOUSE
1. Biscayne Elementary School
2. Mesivta Yeshiva Elementary
3. Publix Super Market at North Shore
4. Bal Harbour Shops
5. North Shore Branch Library
6. Miami Beach Tennis Academy
7. Miami Beach Parking Lot
8. North Shore Open Space Park
9. Indian Creek Country Club
10. Normandy Shores Golf Course
RENT COMPARABLES
RENT COMPARABLES OCEAN BAY HOUSE
20 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
12 3
4
5
7
8
6
9
« OCEAN BAY HOUSE
1. 8350 Byron Avenue
2. 8330 Byron Avenue
3. 330 84th Street
4. 8227 Crespi Boulevard
5. 8035 Crespi Boulevard
6. 7805 Crespi Boulevard
7. 7510 Byron Avenue
8. 540 74th Street
9. 610 74th Street
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 21
RENT COMPARABLES OCEAN BAY HOUSE
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 93.8%
Average: 100.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
60.0%
65.0%
70.0%
75.0%
80.0%
85.0%
90.0%
95.0%
100.0%
8350 ByronAvenue
8330-8340Byron Avenue
330 84th Street 8227-8235Crespi
Boulevard
8035 CrespiBoulevard
7805 CrespiBoulevard
7510 ByronAvenue
540 74th Street 610 74th Street Ocean BayHouseOcean Bay House Market Survey
YEAR # OF %PROPERTY NAME BUILT UNITS OCCUPIED PER UNIT PER SQ. FT.8350 Byron Avenue 1951 8 100.0% $1,800 $2.098330-8340 Byron Avenue 1951 16 100.0% $1,613 $1.88330 84th Street 1955 24 100.0% $1,417 $1.858227-8235 Crespi Boulevard 1953 8 100.0% $1,700 $1.948035 Crespi Boulevard 1959 14 100.0% $1,714 $2.047805 Crespi Boulevard 1956 12 100.0% $1,517 $1.697510 Byron Avenue 1949 8 100.0% $1,413 $2.22540 74th Street 1951 16 100.0% $1,388 $2.29610 74th Street 1953 16 100.0% $1,319 $2.73Ocean Bay House 1946 20 93.8% $1,548 $3.51
AVERAGE 1953 14 100.0% $1,542 $2.08
RANKED BY % OCCUPIEDNET MARKET RENT
OCCuPANCY COMPARISON
RENT COMPARABLES OCEAN BAY HOUSE
22 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
$1,800 $1,714 $1,700 $1,613 $1,548 $1,517 $1,417 $1,413 $1,388 $1,319
Average: $1,542
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
$1,300
$1,400
$1,500
$1,600
$1,700
$1,800
$1,900
8350 ByronAvenue
8035 CrespiBoulevard
8227-8235Crespi
Boulevard
8330-8340Byron Avenue
Ocean BayHouse
7805 CrespiBoulevard
330 84th Street 7510 ByronAvenue
540 74th Street 610 74th StreetOcean Bay House Market Survey
YEAR # OF %PROPERTY NAME BUILT UNITS OCCUPIED PER UNIT PER SQ. FT.8350 Byron Avenue 1951 8 100.0% $1,800 $2.098035 Crespi Boulevard 1959 14 100.0% $1,714 $2.048227-8235 Crespi Boulevard 1953 8 100.0% $1,700 $1.948330-8340 Byron Avenue 1951 16 100.0% $1,613 $1.88Ocean Bay House 1946 20 93.8% $1,548 $3.517805 Crespi Boulevard 1956 12 100.0% $1,517 $1.69330 84th Street 1955 24 100.0% $1,417 $1.857510 Byron Avenue 1949 8 100.0% $1,413 $2.22540 74th Street 1951 16 100.0% $1,388 $2.29610 74th Street 1953 16 100.0% $1,319 $2.73
AVERAGE 1953 14 100.0% $1,542 $2.08
NET MARKET RENTRANKED BY NET MARKET RENT / UNIT
NET MARKET RENT COMPARISON
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 23
RENT COMPARABLES OCEAN BAY HOUSE
$1,546 $1,225 $1,200 $1,150 $1,000
Average: $1,144
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
$1,300
$1,400
$1,500
$1,600
$1,700
Ocean Bay House 610 74th Street 540 74th Street 330 84th Street 7805 Crespi BoulevardOcean Bay House Market Survey
YEAR # OF AVERAGEPROPERTY NAME BUILT UNITS UNIT SIZE NET MARKET PER SQ. FT.Ocean Bay House 1946 19 432 $1,546 $3.58610 74th Street 1953 12 420 $1,225 $2.92540 74th Street 1951 6 450 $1,200 $2.67330 84th Street 1955 8 498 $1,150 $2.317805 Crespi Boulevard 1956 2 750 $1,000 $1.33
AVERAGE 1954 7 530 $1,144 $2.31
STUDIO RENT COMPARABLESSTUDIO - AVERAGE RENT
STudIO COMPARISON
RENT COMPARABLES OCEAN BAY HOUSE
24 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
$1,600 $1,600 $1,600 $1,500 $1,500 $1,500 $1,425 $1,413 $1,400 $1,200
Average: $1,460
$0
$100
$200
$300
$400
$500
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$800
$900
$1,000
$1,100
$1,200
$1,300
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$1,600
$1,700
Ocean BayHouse
8350 ByronAvenue
610 74th Street 8227-8235Crespi
Boulevard
8035 CrespiBoulevard
540 74th Street 8330-8340Byron Avenue
7510 ByronAvenue
330 84th Street 7805 CrespiBoulevardOcean Bay House Market Survey
YEAR # OF AVERAGEPROPERTY NAME BUILT UNITS UNIT SIZE NET MARKET PER SQ. FT.Ocean Bay House 1946 1 630 $1,600 $2.548350 Byron Avenue 1951 4 800 $1,600 $2.00610 74th Street 1953 4 670 $1,600 $2.398227-8235 Crespi Boulevard 1953 4 700 $1,500 $2.148035 Crespi Boulevard 1959 8 720 $1,500 $2.08540 74th Street 1951 10 700 $1,500 $2.148330-8340 Byron Avenue 1951 8 715 $1,425 $1.997510 Byron Avenue 1949 8 635 $1,413 $2.22330 84th Street 1955 8 684 $1,400 $2.057805 Crespi Boulevard 1956 2 850 $1,200 $1.41
AVERAGE 1953 6 719 $1,460 $2.05
ONE BEDROOM RENT COMPARABLES1 BR - AVERAGE RENT
ONE BEdROOM COMPARISON
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 25
RENT COMPARABLES OCEAN BAY HOUSE
Ocean Bay House Market RentsAddress 8260 Byron Avenue
Miami Beach, FL 33141Date SurveyedNo. of Units 20Year Built 1946 Water/Sewer Paid by OwnerOccupancy 94% Trash Removal Paid by Owner
UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.Studio 15 75.0% 440 $1,350 $3.07Studio Short-Term 4 20.0% 400 $2,279 $5.701 Bed / 2 Bath 1 5.0% 630 $1,600 $2.54
TOTAL / AVERAGE 20 100.0% 442 $1,548 $3.51
COMMENTS
September 21, 2018
UNIT MIX AND RENTAL RATES
Amenities include waterfront views, recently renovated units, and individual wall-unit air-conditioning. The property operates 16 units as yearly rentals and four as short-term rentals.
8350 Byron Avenue Market RentsAddress 8350 Byron Avenue
Miami Beach, FL 33141Date SurveyedNo. of Units 8Year Built 1951 Water/Sewer Paid by OwnerOccupancy 100% Trash Removal Paid by Owner
UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.1 Bed / 1 Bath 4 50.0% 800 $1,600 $2.002 Bed / 2 Bath 4 50.0% 920 $2,000 $2.17
TOTAL / AVERAGE 8 100.0% 860 $1,800 $2.09
COMMENTS
September 21, 2018
UNIT MIX AND RENTAL RATES
Amenities include waterfront views, recently renovated units, and individual wall-unit air-conditioning.
RENT COMPARABLES OCEAN BAY HOUSE
26 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
8330-8340 Byron Avenue Market RentsAddress 8330-8340 Byron Avenue
Miami Beach, FL 33141Date SurveyedNo. of Units 16Year Built 1951 Water/Sewer Paid by OwnerOccupancy 100% Trash Removal Paid by Owner
UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.1 Bed / 1 Bath 8 50.0% 715 $1,400 - $1,450 $1.992 Bed / 2 Bath 8 50.0% 1,000 $1,800 $1.80
TOTAL / AVERAGE 16 100.0% 858 $1,613 $1.88
COMMENTS
September 21, 2018
UNIT MIX AND RENTAL RATES
Amenities include waterfront views, recently renovated units, and individual wall-unit air-conditioning.
330 84th Street Market RentsAddress 330 84th Street
Miami Beach, FL 33141Date SurveyedNo. of Units 24Year Built 1955 Water/Sewer Paid by OwnerOccupancy 100% Trash Removal Paid by Owner
UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.Studio 8 33.3% 498 $1,100 - $1,200 $2.311 Bed / 1 Bath 8 33.3% 684 $1,400 $2.052 Bed / 2 Bath 8 33.3% 1,114 $1,700 $1.53
TOTAL / AVERAGE 24 100.0% 765 $1,417 $1.85
COMMENTS
UNIT MIX AND RENTAL RATES
Amenities include individual wall-unit air-conditioning.
September 21, 2018
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 27
RENT COMPARABLES OCEAN BAY HOUSE
8227-8235 Crespi Boulevard Market RentsAddress 8227-8235 Crespi Boulevard
Miami Beach, FL 33141Date SurveyedNo. of Units 8Year Built 1953 Water/Sewer Paid by OwnerOccupancy 100% Trash Removal Paid by Owner
UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.1 Bed / 1 Bath 4 50.0% 700 $1,500 $2.142 Bed / 2 Bath 4 50.0% 1,050 $1,800 - $2,000 $1.81
TOTAL / AVERAGE 8 100.0% 875 $1,700 $1.94
COMMENTSAmenities include waterfront views, recently renovated units, and central air-conditioning.
UNIT MIX AND RENTAL RATES
September 21, 2018
8035 Crespi Boulevard Market RentsAddress 8035 Crespi Boulevard
Miami Beach, FL 33141Date SurveyedNo. of Units 14Year Built 1959 Water/Sewer Paid by OwnerOccupancy 100% Trash Removal Paid by Owner
UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.1 Bed / 1 Bath 8 57.1% 720 $1,500 $2.082 Bed / 1 Bath 6 42.9% 1,005 $2,000 $1.99
TOTAL / AVERAGE 14 100.0% 842 $1,714 $2.04
COMMENTSAmenities include a swimming pool, waterfront views, recently renovated units, and central air-conditioning.
UNIT MIX AND RENTAL RATES
September 21, 2018
RENT COMPARABLES OCEAN BAY HOUSE
28 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
7805 Crespi Boulevard Market RentsAddress 7805 Crespi Boulevard
Miami Beach, FL 33141Date SurveyedNo. of Units 12Year Built 1956 Water/Sewer Paid by OwnerOccupancy 100% Trash Removal Paid by Owner
UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.Studio 2 16.7% 750 $1,000 $1.331 Bed / 1 Bath 2 16.7% 850 $1,200 $1.412 Bed / 1 Bath 2 16.7% 900 $1,500 $1.672 Bed / 2 Bath 4 33.3% 900 $1,600 $1.783 Bed / 2 Bath 2 16.7% 1,100 $2,200 $2.00TOTAL / AVERAGE 12 100.0% 900 $1,517 $1.69
COMMENTSAmenities include waterfront views and individual wall-unit air-conditioning.
UNIT MIX AND RENTAL RATES
September 21, 2018
7510 Byron Avenue Market RentsAddress 7510 Byron Avenue
Miami Beach, FL 33141Date SurveyedNo. of Units 8Year Built 1949 Water/Sewer Paid by OwnerOccupancy 100% Trash Removal Paid by Owner
UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.1 Bed / 1 Bath 8 100.0% 635 $1,400 - $1,425 $2.22
TOTAL / AVERAGE 8 100.0% 635 $1,413 $2.22
COMMENTS
September 21, 2018
UNIT MIX AND RENTAL RATES
Amenities include recently renovated units and individual wall-unit air-conditioning.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 29
RENT COMPARABLES OCEAN BAY HOUSE
540 74th Street Market RentsAddress 540 74th Street
Miami Beach, FL 33141Date SurveyedNo. of Units 16Year Built 1951 Water/Sewer Paid by OwnerOccupancy 100% Trash Removal Paid by Owner
UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.Studio 6 37.5% 450 $1,200 $2.671 Bed / 1 Bath 10 62.5% 700 $1,400 - $1,600 $2.14
TOTAL / AVERAGE 16 100.0% 606 $1,388 $2.29
COMMENTSAmenities include recently renovated units and individual wall-unit air-conditioning.
September 21, 2018
UNIT MIX AND RENTAL RATES
610 74th Street Market RentsAddress 610 74th Street
Miami Beach, FL 33141Date SurveyedNo. of Units 16Year Built 1953 Water/Sewer Paid by OwnerOccupancy 100% Trash Removal Paid by Owner
UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.Studio 12 75.0% 420 $1,200 - $1,250 $2.921 Bed / 1 Bath 4 25.0% 670 $1,500 - $1,700 $2.39
TOTAL / AVERAGE 16 100.0% 483 $1,319 $2.73
COMMENTS
September 21, 2018
UNIT MIX AND RENTAL RATES
Amenities include recently renovated units and individual wall-unit air-conditioning. One bedroom units asking $1,700 per month are fully furnished.
SALES COMPARABLES
1
SALES COMPARABLES OCEAN BAY HOUSE
32 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
3
4
5
6
78 « OCEAN BAY HOUSE
1. 690 Bay Drive
2. 1725 & 1795 Normandy Drive
3. 331 85th Street
4. 610 74th Street
5. 8201 Harding Avenue
6. 1910 Biarritz Drive
7. 8227-8235 Crespi Boulevard
8. Tatum Waterway Apartments
2
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 33
SALES COMPARABLES OCEAN BAY HOUSE
Sales Comparables | Charts | Printed to PDF on 3/27/2019 at 3:13 PM | Page 1 of 12
$459 $375 $323 $316 $314 $299 $299 $209
Average: , $324
$0$20$40$60$80
$100$120$140$160$180$200$220$240$260$280$300$320$340$360$380$400$420$440$460
8201 HardingAvenue
610 74th Street 1910-1920 BiarritzDrive
331 85th Street 1725 & 1795Normandy Drive
Tatum WaterwayApartments
8227-8235 CrespiBoulevard
960 Bay Drive
Sales Comparables | Charts | Printed to PDF on 3/27/2019 at 3:13 PM | Page 1 of 12
Sales Comparables | Tables | Printed to PDF on 3/27/2019 at 3:13 PM | Page 3 of 12
YEAR # OF CLOSE OFPROPERTY NAME BUILT UNITS SQ. FT. UNIT ESCROW
8201 Harding Avenue 1950 6 $459 $206,667 $1,240,000 May 2018
610 74th Street 1953 16 $375 $196,094 $3,137,500 May 2018
1910-1920 Biarritz Drive 1948 8 $323 $196,875 $1,575,000 May 2018
331 85th Street 1945 25 $316 $224,000 $5,600,000 June 2018
1725 & 1795 Normandy Drive 1949 8 $314 $262,500 $2,100,000 September 2018
Tatum Waterway Apartments 1951 16 $299 $256,250 $4,100,000 June 2017
8227-8235 Crespi Boulevard 1953 8 $299 $250,000 $2,000,000 January 2018
960 Bay Drive 1951 14 $209 $200,000 $2,800,000 February 2019
AVERAGE 1950 13 $324 $224,048 $2,819,063
PRICE PER
RANKED BY PRICE PER SQUARE FOOT
SALE PRICE
Sales Comparables | Tables | Printed to PDF on 3/27/2019 at 3:13 PM | Page 3 of 12
AVERAgE PRICE PER SQuARE FOOT
SALES COMPARABLES OCEAN BAY HOUSE
34 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
Sales Comparables | Charts | Printed to PDF on 3/27/2019 at 3:13 PM | Page 2 of 12
$262,500 $256,250 $250,000 $224,000 $206,667 $200,000 $196,875 $196,094
Average: , $224,048
$0$10,000$20,000$30,000$40,000$50,000$60,000$70,000$80,000$90,000
$100,000$110,000$120,000$130,000$140,000$150,000$160,000$170,000$180,000$190,000$200,000$210,000$220,000$230,000$240,000$250,000$260,000$270,000
1725 & 1795Normandy Drive
Tatum WaterwayApartments
8227-8235 CrespiBoulevard
331 85th Street 8201 HardingAvenue
960 Bay Drive 1910-1920 BiarritzDrive
610 74th Street
Sales Comparables | Charts | Printed to PDF on 3/27/2019 at 3:13 PM | Page 2 of 12
Sales Comparables | Tables | Printed to PDF on 3/27/2019 at 3:13 PM | Page 4 of 12
YEAR # OF CLOSE OFPROPERTY NAME BUILT UNITS SQ. FT. UNIT ESCROW
1725 & 1795 Normandy Drive 1949 8 $314 $262,500 $2,100,000 September 2018
Tatum Waterway Apartments 1951 16 $299 $256,250 $4,100,000 June 2017
8227-8235 Crespi Boulevard 1953 8 $299 $250,000 $2,000,000 January 2018
331 85th Street 1945 25 $316 $224,000 $5,600,000 June 2018
8201 Harding Avenue 1950 6 $459 $206,667 $1,240,000 May 2018
960 Bay Drive 1951 14 $209 $200,000 $2,800,000 February 2019
1910-1920 Biarritz Drive 1948 8 $323 $196,875 $1,575,000 May 2018
610 74th Street 1953 16 $375 $196,094 $3,137,500 May 2018
AVERAGE 1950 13 $324 $224,048 $2,819,063
PRICE PER
RANKED BY PRICE PER UNIT
SALE PRICE
Sales Comparables | Tables | Printed to PDF on 3/27/2019 at 3:13 PM | Page 4 of 12
AVERAgE PRICE PER uNIT
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 35
SALES COMPARABLES OCEAN BAY HOUSE
Sales Comparables | Profiles | Printed to PDF on 3/27/2019 at 3:13 PM | Page 5 of 12960 Bay Drive
960 Bay DriveMiami Beach, FL 33141
No. of Units 14 Units Unit TypeYear Built 1951 10 1 Bed / 1 BathLot Size 0.39 Acres 4 2 Bed / 1 BathSales Price $2,800,000Price/Unit $200,000Price/Square Foot $208.96Close of Escrow February 14, 2019
Comments
This was a private-party transaction. The property was vacant at time of sale and inneed of gut renovation.
Printed to PDF on 3/27/2019 at 3:13 PM | Page 5 of 12
Sales Comparables | Profiles | Printed to PDF on 3/27/2019 at 3:13 PM | Page 6 of 121725 & 1795 Normandy Drive
1725 Normandy DriveMiami Beach, FL 33141
No. of Units 8 Units Unit TypeYear Built 1949 4 1 Bed / 1 BathLot Size 0.15 Acres 4 2 Bed / 1 BathSales Price $2,100,000Price/Unit $262,500Price/Square Foot $313.62Close of Escrow September 20, 2018
Comments
This was a private-party transaction. The property was recently renovated.
Printed to PDF on 3/27/2019 at 3:13 PM | Page 6 of 12
SALES COMPARABLES OCEAN BAY HOUSE
36 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
Sales Comparables | Profiles | Printed to PDF on 3/27/2019 at 3:13 PM | Page 7 of 12331 85th Street
331 85th StreetMiami Beach, FL 33141
No. of Units 25 Units Unit TypeYear Built 1945 1 StudioLot Size 0.41 Acres 16 1 Bed / 1 BathSales Price $5,600,000 7 2 Bed / 2 BathPrice/Unit $224,000 1 2 Bed / 2.5 BathPrice/Square Foot $316.04Close of Escrow June 13, 2018
Comments
This was a private-party transaction. The property was recently renovated.
Printed to PDF on 3/27/2019 at 3:13 PM | Page 7 of 12
Sales Comparables | Profiles | Printed to PDF on 3/27/2019 at 3:13 PM | Page 8 of 12610 74th Street
610 74th StreetMiami Beach, FL 33141
No. of Units 16 Units Unit TypeYear Built 1953 12 StudioLot Size 0.02 Acres 4 1 Bed / 1 BathSales Price $3,137,500Price/Unit $196,094Price/Square Foot $375.12Close of Escrow May 24, 2018
Comments
This was a private-party transaction. The property was recently renovated.
Printed to PDF on 3/27/2019 at 3:13 PM | Page 8 of 12
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 37
SALES COMPARABLES OCEAN BAY HOUSE
Sales Comparables | Profiles | Printed to PDF on 3/27/2019 at 3:13 PM | Page 9 of 128201 Harding Avenue
8201 Harding AvenueMiami Beach, FL 33141
No. of Units 6 Units Unit TypeYear Built 1950 6 1 Bed / 1 BathLot Size 0.08 AcresSales Price $1,240,000Price/Unit $206,667Price/Square Foot $458.58Close of Escrow May 10, 2018
Comments
This was a private-party transaction. The property was recently renovated.
Printed to PDF on 3/27/2019 at 3:13 PM | Page 9 of 12
Sales Comparables | Profiles | Printed to PDF on 3/27/2019 at 3:13 PM | Page 10 of 121910-1920 Biarritz Drive
1910-1920 Biarritz DriveMiami Beach, FL 33141
No. of Units 8 Units Unit TypeYear Built 1948 8 1 Bed / 1 BathLot Size 0.31 AcresSales Price $1,575,000Price/Unit $196,875Price/Square Foot $323.28Close of Escrow May 8, 2018
Comments
This was a private-party transaction. The property was recently renovated.
Printed to PDF on 3/27/2019 at 3:13 PM | Page 10 of 12
SALES COMPARABLES OCEAN BAY HOUSE
38 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
Sales Comparables | Profiles | Printed to PDF on 3/27/2019 at 3:13 PM | Page 11 of 128227-8235 Crespi Boulevard
8227-8235 Crespi BoulevardMiami Beach, FL 33141
No. of Units 8 Units Unit TypeYear Built 1953 4 1 Bed / 1 BathLot Size 0.13 Acres 4 2 Bed / 2 BathSales Price $2,000,000Price/Unit $250,000Price/Square Foot $298.95Close of Escrow January 24, 2018
Comments
This was a private-party transaction. The property was recently renovated and iswaterfront.
Printed to PDF on 3/27/2019 at 3:13 PM | Page 11 of 12
Sales Comparables | Profiles | Printed to PDF on 3/27/2019 at 3:13 PM | Page 12 of 12Tatum Waterway Apartments
8330-8340 Byron AvenueMiami Beach, FL 33141
No. of Units 16 Units Unit TypeYear Built 1951 8 1 Bed / 1 BathLot Size 0.34 Acres 8 2 Bed / 2 BathSales Price $4,100,000Price/Unit $256,250Price/Square Foot $299.36Close of Escrow June 14, 2017
Comments
This was a private-party transaction. The property was recently renovated and iswaterfront.
Printed to PDF on 3/27/2019 at 3:13 PM | Page 12 of 12
FINANCIAL ANALYSIS
42 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
RENT ROLL SUMMARY OCEAN BAY HOUSE
S SCHEDULED POTENTIAL
UNIT TYPE# OF
UNITSAVG SQ FEET*
AVERAGE RENT
AVERAGE RENT / SF
MONTHLY INCOME
AVERAGE RENT
AVERAGE RENT / SF
MONTHLY INCOME
Studio 15 440 $1,283 $2.92 $19,250 $1,350 $3.07 $20,250
Studio - Short-Term 4 400 $1,853 $4.63 $7,412 $2,279 $5.70 $9,116
1 Bdr 2 Bath 1 630 $1,550 $2.46 $1,550 $1,600 $2.54 $1,600
Totals/Weighted Averages 20 442 $1,411 $3.20 $28,212 $1,548 $3.51 $30,966
Gross Annualized Rents $338,544 $371,592
$1,350 $2,279 $1,600
$67
$426
$50
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
$2,200
$2,400
$2,600
$2,800
$3,000
Studio Studio - Short-Term 1 Bdr 2 Bath
Average Pro Forma Rent Loss To Lease
Studio75%
Studio - Short-Term20%
1 Bdr 2 Bath5%
* Unit square footages are approximate values
Rent roll as of September, 2018
Unit Distribution Unit Rent
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 43
OPERATING STATEMENT OCEAN BAY HOUSE
INCOME STABILIZED PRO FORMA NOTES PER UNIT PER SF
Gross Potential Rent 338,544 371,592 18,580 42.08
Gross Scheduled Rent 338,544 371,592 18,580 42.08
Physical Vacancy (16,927) 5.0% (18,580) 5.0% (929) (2.10)
Total Vacancy ($16,927) 5.0% ($18,580) 5.0% ($929) ($2)
Economic Occupancy 95.00% 95.00%
Effective Rental Income 321,617 353,012 17,651 39.98
Other Income
Laundry Income 2,400 2,400 120 0.27
Total Other Income $2,400 $2,400 $120 $0.27
Effective Gross Income $324,017 $355,412 $17,771 $40.25
EXPENSES STABILIZED PRO FORMA NOTES PER UNIT PER SF
Real Estate Taxes 36,048 57,044 [1] 2,852 6.46
Insurance 20,244 20,244 1,012 2.29
Utilities - Electric 6,404 6,404 320 0.73
Utilities - Water and Sewer 12,656 12,656 633 1.43
Utilities - Gas 1,938 1,938 97 0.22
Trash Removal 4,632 4,632 232 0.52
Repairs & Maintenance 8,000 8,000 400 0.91
Landscaping 1,800 1,800 90 0.20
Telephone 350 350 18 0.04
Cable TV and Internet 5,520 5,520 276 0.63
Operating Reserves 5,000 5,000 250 0.57
Management Fee 16,201 5.0% 17,771 5.0% 889 2.01
Total Expenses $118,793 $141,359 $7,068 $16.01
Expenses as % of EGI 36.7% 39.8%
Net Operating Income $205,224 $214,053 $10,703 $24.24
Notes to Operating Statement
[1] Real estate taxes are reassessed based on 80 percent of list price, times the 2018 proposed millage rate (18.8042), minus 4 percent for early tax payment. 2017 real estate taxes were $22,551.65. Proposed 2018 real estate taxes are $36,048.01.
44 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
PRICING DETAIL OCEAN BAY HOUSE
SUMMARY
Price $3,950,000
Down Payment 100% $3,950,000
Number of Units 20
Price Per Unit $197,500
Price Per SqFt $447.34
Gross SqFt 8,830
Lot Size 0.21 Acres
Approx. Year Built/Renovated 1946/2017
Returns Stabilized Pro Forma
CAP Rate 5.20% 5.42%
GRM 11.67 10.63
OPERATING DATA
Income Stabilized Pro Forma
Gross Scheduled Rent $338,544 $371,592
Less: Vacancy/Deductions (GPR) 5.0% $16,927 5.0% $18,580
Total Effective Rental Income $321,617 $353,012
Other Income $2,400 $2,400
Effective Gross Income $324,017 $355,412
Less: Expenses 36.7% $118,793 39.8% $141,359
Net Operating Income $205,224 $214,053
Expenses Stabilized Pro Forma
Real Estate Taxes $36,048 $57,044
Insurance $20,244 $20,244
Utilities - Electric $6,404 $6,404
Utilities - Water and Sewer $12,656 $12,656
Utilities - Gas $1,938 $1,938
Trash Removal $4,632 $4,632
Repairs & Maintenance $8,000 $8,000
Landscaping $1,800 $1,800
Telephone $350 $350
Cable TV and Internet $5,520 $5,520
Operating Reserves $5,000 $5,000
Management Fee $16,201 $17,771
Total Expenses $118,793 $141,359
Expenses/Unit $5,940 $7,068
Expenses/SF $13.45 $16.01
# Of Units Unit Type SqFt/Unit* Stabilized Rents Market Rents
15 Studio 440 $1,283 $1,350
4 Studio - Short-Term 400 $1,853 $2,279
1 1 Bdr 2 Bath 630 $1,550 $1,600
* Unit square footages are approximate values
MARKET OVERVIEW
DEMOGRAPHICS OCEAN BAY HOUSE
46 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
Source: © 2017 Experian
Created on September 2018
POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection
Total Population 25,037 79,509 239,090
2017 Estimate
Total Population 24,532 76,006 233,516
2010 Census
Total Population 22,685 69,763 213,756
2000 Census
Total Population 23,580 69,846 209,345
Daytime Population
2017 Estimate 16,890 56,542 217,105
HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection
Total Households 12,256 38,263 101,344
2017 Estimate
Total Households 11,831 36,261 96,447
Average (Mean) Household Size 2.07 2.09 2.34
2010 Census
Total Households 10,923 33,196 88,686
2000 Census
Total Households 10,758 32,774 86,555
Growth 2015-2020 3.59% 5.52% 5.08%
HOUSING UNITS 1 Miles 3 Miles 5 Miles Occupied Units
2022 Projection 12,256 38,263 101,344
2017 Estimate 14,024 48,088 121,121
Owner Occupied 4,225 17,170 43,965
Renter Occupied 7,606 19,091 52,481
Vacant 2,193 11,827 24,675
Persons In Units
2017 Estimate Total Occupied Units 11,831 36,261 96,447
1 Person Units 40.22% 38.88% 35.31%
2 Person Units 32.74% 34.23% 31.02%
3 Person Units 13.64% 13.42% 14.59%
4 Person Units 8.77% 8.69% 10.01%
5 Person Units 3.25% 3.36% 5.02%
6+ Person Units 1.39% 1.43% 4.05%
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate
$200,000 or More 5.60% 9.14% 6.70%
$150,000 - $199,000 3.55% 4.44% 3.98%
$100,000 - $149,000 7.35% 10.39% 9.19%
$75,000 - $99,999 8.20% 9.02% 8.99%
$50,000 - $74,999 13.96% 15.50% 15.05%
$35,000 - $49,999 13.67% 12.49% 13.44%
$25,000 - $34,999 12.13% 10.32% 10.62%
$15,000 - $24,999 16.71% 13.86% 14.25%
Under $15,000 18.82% 14.87% 17.77%
Average Household Income $68,421 $89,295 $76,859
Median Household Income $37,349 $47,910 $42,480
Per Capita Income $33,014 $42,621 $31,994
POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age
2017 Estimate Total Population 24,532 76,006 233,516
Under 20 17.18% 17.63% 21.06%
20 to 34 Years 18.89% 18.29% 20.98%
35 to 39 Years 7.71% 8.05% 7.12%
40 to 49 Years 16.46% 16.10% 14.50%
50 to 64 Years 21.10% 20.82% 20.57%
Age 65+ 18.63% 19.09% 15.77%
Median Age 43.66 43.59 40.57
Population 25+ by Education Level
2017 Estimate Population Age 25+ 19,106 59,166 169,847
Elementary (0-8) 6.92% 5.13% 6.87%
Some High School (9-11) 7.86% 5.74% 8.17%
High School Graduate (12) 24.16% 21.34% 23.67%
Some College (13-15) 16.86% 17.44% 17.94%
Associate Degree Only 9.76% 8.76% 8.35%
Bachelors Degree Only 21.11% 23.24% 19.37%
Graduate Degree 11.82% 17.18% 13.61%
Population by Gender
2017 Estimate Total Population 24,532 76,006 233,516
Male Population 49.14% 48.38% 48.75%
Female Population 50.86% 51.62% 51.25%
Source: © 2017 Experian
Created on September 2018
POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection
Total Population 25,037 79,509 239,090
2017 Estimate
Total Population 24,532 76,006 233,516
2010 Census
Total Population 22,685 69,763 213,756
2000 Census
Total Population 23,580 69,846 209,345
Daytime Population
2017 Estimate 16,890 56,542 217,105
HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection
Total Households 12,256 38,263 101,344
2017 Estimate
Total Households 11,831 36,261 96,447
Average (Mean) Household Size 2.07 2.09 2.34
2010 Census
Total Households 10,923 33,196 88,686
2000 Census
Total Households 10,758 32,774 86,555
Growth 2015-2020 3.59% 5.52% 5.08%
HOUSING UNITS 1 Miles 3 Miles 5 Miles Occupied Units
2022 Projection 12,256 38,263 101,344
2017 Estimate 14,024 48,088 121,121
Owner Occupied 4,225 17,170 43,965
Renter Occupied 7,606 19,091 52,481
Vacant 2,193 11,827 24,675
Persons In Units
2017 Estimate Total Occupied Units 11,831 36,261 96,447
1 Person Units 40.22% 38.88% 35.31%
2 Person Units 32.74% 34.23% 31.02%
3 Person Units 13.64% 13.42% 14.59%
4 Person Units 8.77% 8.69% 10.01%
5 Person Units 3.25% 3.36% 5.02%
6+ Person Units 1.39% 1.43% 4.05%
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate
$200,000 or More 5.60% 9.14% 6.70%
$150,000 - $199,000 3.55% 4.44% 3.98%
$100,000 - $149,000 7.35% 10.39% 9.19%
$75,000 - $99,999 8.20% 9.02% 8.99%
$50,000 - $74,999 13.96% 15.50% 15.05%
$35,000 - $49,999 13.67% 12.49% 13.44%
$25,000 - $34,999 12.13% 10.32% 10.62%
$15,000 - $24,999 16.71% 13.86% 14.25%
Under $15,000 18.82% 14.87% 17.77%
Average Household Income $68,421 $89,295 $76,859
Median Household Income $37,349 $47,910 $42,480
Per Capita Income $33,014 $42,621 $31,994
POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age
2017 Estimate Total Population 24,532 76,006 233,516
Under 20 17.18% 17.63% 21.06%
20 to 34 Years 18.89% 18.29% 20.98%
35 to 39 Years 7.71% 8.05% 7.12%
40 to 49 Years 16.46% 16.10% 14.50%
50 to 64 Years 21.10% 20.82% 20.57%
Age 65+ 18.63% 19.09% 15.77%
Median Age 43.66 43.59 40.57
Population 25+ by Education Level
2017 Estimate Population Age 25+ 19,106 59,166 169,847
Elementary (0-8) 6.92% 5.13% 6.87%
Some High School (9-11) 7.86% 5.74% 8.17%
High School Graduate (12) 24.16% 21.34% 23.67%
Some College (13-15) 16.86% 17.44% 17.94%
Associate Degree Only 9.76% 8.76% 8.35%
Bachelors Degree Only 21.11% 23.24% 19.37%
Graduate Degree 11.82% 17.18% 13.61%
Population by Gender
2017 Estimate Total Population 24,532 76,006 233,516
Male Population 49.14% 48.38% 48.75%
Female Population 50.86% 51.62% 51.25%
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 47
DEMOGRAPHICS OCEAN BAY HOUSE
IncomeIn 2017, the median household income for your selected geography is$37,349, compare this to the US average which is currently $56,286.The median household income for your area has changed by 55.43%since 2000. It is estimated that the median household income in yourarea will be $43,234 five years from now, which represents a changeof 15.76% from the current year.
The current year per capita income in your area is $33,014, comparethis to the US average, which is $30,982. The current year averagehousehold income in your area is $68,421, compare this to the USaverage which is $81,217.
PopulationIn 2017, the population in your selected geography is 24,532. Thepopulation has changed by 4.04% since 2000. It is estimated that thepopulation in your area will be 25,037.00 five years from now, whichrepresents a change of 2.06% from the current year. The currentpopulation is 49.14% male and 50.86% female. The median age ofthe population in your area is 43.66, compare this to the US averagewhich is 37.83. The population density in your area is 7,820.38 peopleper square mile.
HouseholdsThere are currently 11,831 households in your selected geography.The number of households has changed by 9.97% since 2000. It isestimated that the number of households in your area will be 12,256five years from now, which represents a change of 3.59% from thecurrent year. The average household size in your area is 2.07 persons.
EmploymentIn 2017, there are 4,940 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that59.44% of employees are employed in white-collar occupations inthis geography, and 41.05% are employed in blue-collar occupations.In 2017, unemployment in this area is 3.79%. In 2000, the averagetime traveled to work was 35.00 minutes.
Race and EthnicityThe current year racial makeup of your selected area is as follows:86.53% White, 4.77% Black, 0.05% Native American and 1.41%Asian/Pacific Islander. Compare these to US averages which are:70.42% White, 12.85% Black, 0.19% Native American and 5.53%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.
People of Hispanic origin make up 68.46% of the current yearpopulation in your selected area. Compare this to the US average of17.88%.
HousingThe median housing value in your area was $332,055 in 2017,compare this to the US average of $193,953. In 2000, there were4,029 owner occupied housing units in your area and there were6,729 renter occupied housing units in your area. The median rent atthe time was $532.
Source: © 2017 Experian
48 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
MIAMI-DADE COUNTY MARKET OVERVIEW OCEAN BAY HOUSE
MIAMI-DADEOVERVIEW
Miami-Dade County is a gateway to South American and Caribbeanmarkets and a tourist destination. The 2,400-square-mile countyextends from the Florida Everglades east to the Atlantic Ocean. It isbordered to the north by Broward County and to the south by theFlorida Keys. The main portion of the city of Miami lies on the shoresof Biscayne Bay and is separated from the Atlantic Ocean by barrierislands, the largest of which holds the city of Miami Beach. The metro,with a population of roughly 2.7 million, is located entirely withinMiami-Dade County. Miami is the most populous city, with slightlymore than 440,700 residents, followed by Hialeah and Miami Gardens,each with more than 100,000 people.
METRO HIGHLIGHTS
BUSINESS-FRIENDLY ENVIRONMENTThe metro has no local business or personal income taxes, which attracts businesses and residents to the area.
INTERNATIONAL GATEWAYMiami is a gateway for international trading activities, tourism and immigration, connecting to airports and ports around the world.
MEDICAL COMMUNITY The county contains the largest concentration of medical facilities in Florida, drawing residents needing services throughout the state.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 49
MIAMI-DADE COUNTY MARKET OVERVIEW OCEAN BAY HOUSE
ECONOMY Various industries provide a diverse economy. Trade, international finance, healthcare and
entertainment have become major segments in the local business community. A strong tourism industry has developed with ties to Latin America and the Caribbean. Tourism and trade depend on a large transportation sector. PortMiami and Miami
International Airport are both major contributors to employment and the economy. The Miami metro gross metropolitan product (GMP) expansion is expected to outpace the
U.S. GDP in 2018 and retail sales for the county are also rising.
SHARE OF 2017 TOTAL EMPLOYMENT
MAJOR AREA EMPLOYERS
Baptist Health South Florida
University of Miami
American Airlines
Miami Children’s Hospital
Publix Supermarkets
Winn-Dixie Stores
Florida Power & Light Co.
Carnival Cruise Lines
AT&T
Mount Sinai Medical Center* Forecast
MANUFACTURING4%
GOVERNMENT
HEALTH SERVICESEDUCATION AND
+OTHER SERVICES
5%
LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES
25%AND UTILITIES
TRADE, TRANSPORTATION CONSTRUCTION
PROFESSIONAL ANDBUSINESS SERVICES
2%INFORMATION
14%
4%
12% 12% 7%
16%
OCEAN BAY HOUSE
50 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
MIAMI-DADE COUNTY MARKET OVERVIEW OCEAN BAY HOUSE
DEMOGRAPHICS
SPORTS
EDUCATION
ARTS & ENTERTAINMENT
The metro is expected to add nearly 117,400 people over the next five years. During the same period, approximately 64,000 households will be formed, generating demand for housing.
The homeownership rate of 53 percent is below the national rate of 64 percent, maintaining a strong rental market.
The cohort of 20- to 34-year-olds composes 21 percent of the population.
Miami-Dade County has developed into a cosmopolitan urban area offering a vibrant
business and cultural community. The metro has an abundance of popular attractions.
Miami hosts the Capital One Orange Bowl and is home to several professional sports
teams, including the Miami Dolphins, the Miami Marlins and the Miami Heat. The county
has a broad array of cultural attractions, historic sites and parks. These include the
Adrienne Arsht Center for the Performing Arts, Zoo Miami and Everglades National Park.
The region is home to a vibrant and diverse culture, family-friendly neighborhoods, a
plethora of shops and restaurants, and beautiful weather and beaches. It also offers easy
access to Latin America and the Caribbean.
QUALITY OF LIFE
2017 Population by Age
0-4 YEARS
6%5-19 YEARS
17%20-24 YEARS
7%25-44 YEARS
28%45-64 YEARS
27%65+ YEARS
16%
* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau
OCEAN BAY HOUSE
39.72017
MEDIAN AGE:
U.S. Median:
37.8
$44,300 2017 MEDIAN
HOUSEHOLD INCOME:
U.S. Median:
$56,300
2.7M2017
POPULATION:
Growth2017-2022*
4.3%
940K2017
HOUSEHOLDS:
6.7%
Growth2017-2022*:
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 51
MIAMI-DADE COUNTY MARKET OVERVIEW OCEAN BAY HOUSE
OCEAN BAY HOUSE
Rental demand holds strong as suitable single-family homes remain out of reach foryoung buyers. Strong in-migration trends and stable job growth across South Floridaare boosting household formation beyond that of many other major metros this year,bolstering the multifamily sector. Homeownership in the most desired areas remainsa challenge for many entry-level buyers, driving apartment demand in the region’surban cores and also in smaller neighborhoods near employment hubs. Over the pastyear, tenant demand was highest in the submarkets of West Miami/Doral, FortLauderdale and Boynton Beach/Delray Beach, areas that ramped up revitalizationefforts in recent years.
More than 30 new complexes anticipated to open in 2018. Following several years ofrobust construction activity, deliveries will begin to slow this year as 9,700apartments are scheduled to open in 2018. Rental inventory grows by 4,300 units inMiami-Dade County, the highest amount in the region, led by Mila at 684 doors inNorth Miami Beach. In Lauderdale Lakes, the Atlantic Cypress Creek will be BrowardCounty’s largest completion of the year with 422 units across 25 stories, contributingto the addition of 3,500 apartments in the market. Palm Beach County records thegreatest slowdown in deliveries in 2018, down by almost half to 1,900 rentals. Thelargest project forecast to open this year is the 353-unit Atlantico at Alton in PalmBeach Gardens.
Investors Dig Deeper to Find Remaining Upside, Increase Activity Beyond the Core
SOUTH FLORIDA
* Cap rate trailing 12-month average through 2Q; Treasury rate as of June 28.Includes sales $1 million and greater for Miami, Fort Lauderdale and West Palm Beach.Sources: CoStar Group, Inc.; Real Capital Analytics
Investment Trends
Miami• High pricing east of I-95 has spurred investors to seek more affordable
assets with greater upside potential in areas such as Hialeah, where pricesaverage nearly $130,000 per unit.
• First-year yields declined 10 basis points over the past year to the upper-5percent territory and neared the mid-6 percent area in the Hialeah and MiamiGardens submarkets.
Fort Lauderdale• Revitalization efforts in Fort Lauderdale proper support substantive tenant
demand over the past year, holding investor interest elevated in the highestrent submarket of the county.
• Resting in the upper-5 percent area over the past year, the average cap ratefell 20 basis points from the prior period. Class A properties traded in themid-4 percent to mid-5 percent band.
West Palm Beach• Going-in cap rates above the rest of South Florida have more yield-driven
buyers scouring the county, particularly for Class C assets that often trade inthe upper-5 to upper-7 percent range.
• The region-leading expansion of the traditional renter cohort leads investorsto hurry to acquire assets near employment hubs.
Multifamily 2018 Outlook
VacancyY-O-Y
BasisPointChange
MetroEffective
RentY-O-Y
Change
Miami 3.5% -10 $1,620 6.1%
Fort Lauderdale 4.2% -80 $1,528 2.2%
West Palm Beach 5.0% -80 $1,514 2.0%
52 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
MIAMI-DADE COUNTY MARKET OVERVIEW OCEAN BAY HOUSE
• Miami added 11,800 jobs in the second quarter, capping a 12-month gain of 15,700 jobs despite hurricane-related job losses last summer. The manufacturing sector led employment growth over the past year, adding nearly 7,000 jobs.
• The unemployment rate declined 30 basis points over the year ended in June to 4.5 percent.
EMPLOYMENT
• More than 2,800 units were delivered during the first half of 2018, keeping the year-over-year sum below the 5,800 units completed in the prior yearlong period.
• Construction was greatest in the downtown and immediate neighborhoods over the past year, led by the 821-unit Panorama Tower, which was finished in the second quarter and is now Miami’s tallest building.
CONSTRUCTION
• Net absorption totaled 6,260 rentals during the 12 months ended in June, bringing the vacancy rate down to 3.7 percent at midyear and reversing the 50-basis-point climb posted one year earlier.
• Apartment demand was highest in the Downtown Miami/South Beach submarket with net absorption of 2,100 units, followed by West Miami/Doral at 1,500 rentals.
VACANCY
• The average effective rent climbed to $1,583 per month in June, building on a 3.4 percent rise recorded last June.
• Class C complexes led rent growth, rising 5.2 percent from one year earlier to $1,025 per month, followed by a 4.0 percent increase in the Class B segment to $1,542 per month. Class A apartments raised the average rent to $2,109 monthly, up 2.3 percent.
RENTS
SOUTH FLORIDA: MIAMI
increase in effective rents Y-O-Y5.1%basis point decrease
in vacancy Y-O-Y30units completed Y-O-Y5,660increase in total
employment Y-O-Y1.3%
* Forecast
OCEAN BAY HOUSE
2Q18 – 12-Month Period
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 53
MIAMI-DADE COUNTY MARKET OVERVIEW OCEAN BAY HOUSE
Robust Sales Activity in Areas of Greater Affordability Drops the Per Unit Price
Outlook: Investors are extending theirsearches to areas such as North Miamiand Hialeah for lower entry costs andremaining upside. Minimal constructionhas kept vacancy low and boosted rentsin these areas.
VacancyRate
Y-O-YBasisPoint
ChangeSubmarket
EffectiveRent
Y-O-Y %Change
North Central Miami 1.2% -70 $1,010 7.6%
Homestead/South Dade County
2.1% -70 $1,114 6.5%
Hialeah/Miami Lakes 2.3% 20 $1,410 1.7%
Downtown Miami/South Beach
3.4% -40 $2,098 5.1%
Miami Gardens 3.5% 50 $1,192 7.7%
Westchester/Kendall 4.0% 20 $1,501 3.2%
Coral Gables/South Miami
4.3% -40 $1,882 1.1%
West Miami/Doral 4.7% -280 $1,851 6.2%
Northeast Miami 5.2% 30 $1,698 5.7%
Overall Metro 3.7% -30 $1,583 5.1%
Submarket Trends
Lowest Vacancy Rates 2Q18
Sales Trends
SOUTH FLORIDA: MIAMI
• Deal flow held stable over the past year from the prior period, with buyers especiallyactive in the submarkets south of the Miami River and east of Brickell, including eastLittle Havana and Coral Way.
• The average price recorded over the past year was down 2 percent from the prioryearlong stretch, reaching $171,600 per unit.
* Trailing 12 months through 2Q18Pricing trend sources: CoStar Group, Inc.; Real Capital Analytics
OCEAN BAY HOUSE
* 20t17-2022 **2016
54 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.
MIAMI-DADE COUNTY MARKET OVERVIEW OCEAN BAY HOUSE
OCEAN BAY HOUSE
SOUTH FLORIDA
• Healthy economy and inflationary pressure drive rate increases. The Federal Reserve
appears committed to normalizing the fed funds rate, but further action could be restrained
this year as headwinds could weigh on the economy. Economic growth and inflation have
had a dramatic effect on the 10-year Treasury rate, which has more than doubled over the
past two years to 2.85 percent. However, capital inflows as investors seek alternative
investment options are holding the rate below 3 percent.
• Borrowing costs rise, cap rates remain compressed. Debt providers are facing a rising
cost of capital, leading to higher lending rates for investors. To compete for loan demand,
some lenders may choose to absorb a portion of the cost increases while others will require
higher equity stakes up front. More complex and creative approaches to financing properties
may begin to emerge as investors seek to reach return objectives.
• Lending market remains competitive as interest rates rise. Government agencies
continue to consume the largest share, just slightly over 50 percent, of the apartment lending
market. National and regional banks control approximately a quarter of the market.
Multifamily interest rates currently reside in the mid-4 percent to mid-5 percent realm with
maximum leverage of 75 percent. Portfolio lenders will typically require loan-to-value ratios
closer to 70 percent with interest rates in the low-4 percent to low-5 percent span.
Include sales $2.5 million and greaterSources: CoStar Group, Inc.; Real Capital Analytics
Capital Markets
OFFERINg MEMORANduM
20 units
8260 Byron Avenue
Miami Beach, FL 33141
Exclusively Listed By:
FELIPE J. ECHARTESenior Vice President Investments
Fort Lauderdale
(954) 245-3444
License: FL: SL696115
EVAN P. KRISTOLExecutive Managing Director Investments
Fort Lauderdale
(954) 245-3459
License: FL SL640466