Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
Dolce Suites South Beach
Licensed Short-Term Rentals in the Heart of the World’s Vacation Destination
1330 15th Street, Miami Beach, FL 33139
Introduction
Introduction
Location Map
Asset Overview
Comparable Market Activity
Pro Forma
Monthly Financial Projections
Boundary Survey
Building Photographs
Building Floor Plans
Appraisal Synopsis
About Miami Beach
About Miami
Disclaimers
1330 15th Street is a recently completed Suite Hotel in South Beach. The true value of this investment derives
from a new owner's ability to legally operate and stabilize a newly licensed Hotel in South Beach- building
significant ROI and cash flow. Monthly financial projections are included herein as well as an associated
pro forma. In addition, and a recent appraisal is included.
Suite Hotels have become the “go-to” destinations for vacationers, business travelers, families, and those
seeking a non-traditional hotel experience. The Dolce Suites South Beach offers six Two-Bedroom and two
One-Bedroom Suites, each with full kitchen, living room, dining area, and all the comforts of home. Perfect
for groups, savvy travelers, and getaways, the Suite Hotel is here to stay.
The Dolce Suites South Beach is a licensed, legal hotel just two blocks from World Famous Lincoln Road
Mall. It is easy walking distance to Flamingo Park, Alton Road, and the Beach. Each of the Suites has been
lovingly restored and meticulously maintained- both inside and out. All Suites have been gut renovated
and fully modernized with custom kitchens and baths, finishes, furnishings, impact windows and doors, and
fire safety systems. The Dolce Suites South Beach is fully ADA compliant, includes a small lobby, and is fully
operational.
HIGHLIGHTS:
- Exceptional South Beach Location
- All Suites are Beautifully Renovated
- Six 2BR Suites and two 1BR Suites
- Use AirBnB, Bookings.com, Expedia, etc,
- Multiple Additional Income Streams
02
03
04
05
06
07
08
09
10
12
14
15
16
02
$3,200,000
$27,500,000
Location Map
Bayshore Municipal Golf Course
Flamingo Park
Alton Road Commercial District
New Convention Center
Lincoln Road Mall
Fun in the Sun
World Famous Ocean Drive
Collins Avenue Shopping District
Alton Road to Miami Causeway
L I N C O L N R O A D M A L L
Tree Lined Meridian Boulevard
Sailing the Bay
1330 15
Asset Overview
04
Address
Folio Number
Zoning Classification
Allowable FAR
Total Site Area
Total Buildable Area
Existing Building Area
Latent FAR
Historic District
Historic Status
Price per Square Foot of Land
Price Per Square Foot of Building
Price Per FAR Square Foot
1330 15th Street, Miami Beach, FL 33139
02-3233-016-0200
RM-1 (West Avenue Bay Front Overlay)
1.25
5,600 SF
7,000 SF
3,817 SF
3,183 SF
None
Non-Contributing
$ 571
$ 838
$ 457
Asking Price
Number of Suites
Number of One-Bedroom Suites
Number of Two-Bedroom Suites
Price per Suite
Projected Gross Income 2020
Projected Expenses 2020
Projected NOI 2020
Margin
Stabilized Cap Rate
ADR Blended One-Bedroom
ADR Blended Two-Bedroom
Occupancy
$3,200,000
8
2
6
$ 400,000
$ 578,215
$ 257,305
$ 320,910
56%
10.03%
$175
$264
77%
1355 & 1357 Drexel Ave. Closed Sales- Suites Hotels
SIMILAR PROPERTY SALE DATE SALE PRICE # SUITES TOTAL SF COST/SUITE COST/SF MVR
ROYAL STAYS- BULK SALE 12/15 $12,500,000 30 24,813 $416,667 $504
1534 Euclid Ave. 4 3,611 1.40
1032 Michigan Ave. 5 4,692 1.00
1440 Pennsylvania Ave. 5 4,331 1.90
1536 Jefferson Ave. 16 12,179 2.80
LA COSTA SUITES 5/16 $8,200,000 19 14,788 $431,579 $555 3.60
3003 Indian Creek Dr.
CREST SUITES 9/16 $10,800,000 24 11,952 $450,000 $904 N/A
1966 James Ave.
SADIGO APT. HOTEL 10/16 $12,976,000 30 24,200 $432,533 $536 2.75
347 Washington Ave.
VILLA ITALIA 5/17 $5,150,000 13 5,916 $396,154 $871 2.10
354 Washington Ave.
Total Cost= $49,626,000 Total SF= 81,669 Avg Cost/SF= $608
Total Suites= 116 Avg. Cost/Suite= $427,810 2.22
SUBJECT PROPERTY $3,200,000 8 3,817 $400,000 $838 2.59
Similar Suite Hotel Activity
Comparable Market Activity
The subject property was built in 1946 and was constructed of reinforced concrete
block with wood framed floors and roof structure. The building comprises six Two-
Bedroom Suites and two One-Bedroom Suites totaling 3,817 square feet.
Although originally constructed as a multifamily apartment building, the property has
been converted to a legal Suite (Apartment) Hotel. New City ordinances governing
properties within the West Avenue Bay Front Overlay District encourage the conversion
of existing multifamily stock into Suite Hotels. The property has been fully gut renovated
and upgraded with new impact windows and doors, a fire suppression and fire alarm
system, custom kitchens and baths, floor and wall finishes, new MEP, landscaping, and
is fully ADA compliant. The property is appropriately licensed as a Hotel and is fully
operational.
The most significant feature of the property’s location is its close proximity to Lincoln
Road Mall, Flamingo Park, and the Alton Road Commercial District. It lies
approximately 8/10 mile from Ocean Drive, the Beach, and Atlantic Ocean. The
property has only been operating as a short-term rental enterprise for a few months
and, thus, it is essential that the new owner be able to provide their own underwriting.
However, for purposes of this valuation, professional projections, comparable sales,
and a recent appraisal have all been utilized in the calculations of price, cap rate,
and other metrics.
METHOD: Metric: Value: Total:
1. Average Suite Cost: 8 x $427,810 = $3,422,480
2. Average Cost per SF: 3,817 SF x $608/SF = $2,320,736
3. Pro Forma Financial Model: See Page 06 = $3,550,000
4. Market Value Ratio: 2.22 x $1,233,718 = $2,738,853
05
Pro Forma
*Dade County Property Taxes indicated have been calculated using the Dade County
Property Appraiser’s Property Tax Calculator. However, RE taxes can be reduced
substantially by separating cost of business from purchase price.
** Insurance costs can vary significantly based on lender, carriers, required coverages,
business liability, etc. Cost reflected in proforma is indicative of similar sized facilities in the
area ($1,000 per Suite).
*** Management Fee is based on an assumed 15% of Net Income. However, this figure can
be increased or decreased depending on desired level of service or eliminated altogether
by an owner/operator.
06
Drexel Ave.Sales Price $3,200,000 No.Units SF Monthly Total Per Year
No. of Suites 8 8 477 $5,429 $43,434 $578,215
Price per Suite $400,000 Totals 3,817 $5,429 $43,434 $578,215
Gross Income $578,215 Based on Annual projections. Includes Cleaning fees
Vacancy factor 20% Already deducted from monthly income Occupancy is projected at 80%
Other income $0 Alternate potential revenue streams exist.
Operating Expenses $257,305
*RE Taxes-reassesed $48,750
Electric $8,000
Legal/Acct $2,500
Pest/Termite $1,800 Currently no issues. Fees are for preventative measures.
**Insurance $8,000
***Management Fee $56,631 15% of net revenue ($377,541). Employees are paid by management company
CC Commissions $11,564 2% Based on Industry Standards.
Water/Sewer $4,800 City of Miami Beach. Includes Trash Removal and Recycling
OTAs Commissions $65,340 12% average of primary OTAs employed: AirBnB, Booking, & Expedia
Cable/Internet/Phone $7,200 Represents competitive bulk agreement in place.
Capital Reserves $4,000 Estimated. Building is completely renovated.
Linen $7,680 Current rates
Repairs & Maintenance $4,000 Estimated. Buildings are fully renovated.
Marketing $0 Sales and bookings are driven by OTAs.
Tourist/Resort Tax $0 Pass-through entity not factored into pro forma.
Cleaning $17,400 Based on existing agreements with cleaning service.
Customer Care $8,640 Based on Experience to date
Food Supplies $0 Not applicable at this time.
Licenses & Permits $1,000 Typical annual license renewal fees.
NOI Prior to DS $320,910 $26,742 monthly
Cap Rate 10.03%
Equity required $1,600,000 DSCR
Loan Amt $1,600,000 2.86
P&I annualized $112,241 $9,353 monthly
NOI after DS $208,669 $17,389 monthly
Cash on Cash 13.04%
Monthly Financial Projections
Monthly Financial Projections Six Two-Bedroom Suites & Two One-Bedroom Suites TOTALS:
07
Figures above are provided by one of the world’s leading hospitality consulting firms providing
analysis, design, recommendations, and income projections from their offices in New York, Rome,
Miami, Chicago, London, San Francisco, Montreal, Houston, and Boston.
Boundary Survey
08
Building Photographs
09
First Floor Plan
10
Second Floor Plan
11
Appraisal Synopsis
12
V
Appraisal Synopsis
13
Miami Beach is a coastal resort city located in Miami-Dade County, Florida.
Incorporated on March 26, 1915, it is located on a series of natural and man-
made barrier islands between the Atlantic Ocean and Biscayne Bay, the latter
separates the Beach from Miami city proper. The historic neighborhood of
South Beach, comprising the southern-most 2.5 square miles of Miami Beach,
along with Downtown Miami and the port, collectively form the commercial
center of South Florida. The current total population is 91,562, however,
Miami Beach hosted over 8.6 million visitors in 2016 and boasts 23,138 hotel
rooms. Miami Beach has remained one of America's pre-eminent beach
resorts for the past 100 years.
In 1979, Miami Beach's Art Deco Historic District was listed on the National
Register of Historic Places. The Art Deco District is the largest collection of Art
Deco architecture in the world comprising hotels, apartments and other
structures erected between 1923 and 1943. Mediterranean, Streamline
Moderne, and Art Deco are all represented in the District. South Beach is
bounded by the Atlantic Ocean on the East, Lenox Court on the West, 6th
Street on the South and Dade Boulevard along the Collins Canal to the North.
The movement to preserve the Art Deco District's architectural heritage was
led by former interior designer Barbara Capitman, who now has a street in
the District named in her honor.
Miami Beach has a tropical climate with hot humid summers and warm dry
winters. Other than the Florida Keys, Miami Beach has the warmest winter
weather in the United States (mainland). The warm and sunny weather in Miami
Beach and South Florida attracts millions of travelers from around the world from
November through April. Sea surface temperatures range from 75 F in winter to
86 F in the summer/fall months. Miami Beach has the warmest ocean surf in the
U.S. annually. South Beach is well known as the playground of the rich and
famous as well as the world’s entertainment mecca. Real estate values continue
their upward climb.
Mean Resident age 33139: 38.9 yrs Mean Resident Age in FL: 40.5 yrs Avg. household size 33139: 1.7p Avg. household size in FL: 2.6p Avg. AGI in 2010 in 33139 $89,607 Avg. AGI in 2010 in FL $50,523 Avg. Wages filed in 33139: $52,304 Avg. Wages filed in FL: $39,563 33139 population 2010: 32,255 33139 population 2000: 38,441 Houses and Condos: 36,412 Renter-occupied Apts: 16,452
March 2012 COL index: 117.2 Well above U.S. average: 100.0 Land area in square miles: 2.7 Water area in square miles: 3.3 RE property taxes for housing units 2010 in 33139: (1.2%) $4,175
Florida: ( 1.0%) $1,882 Median RE property taxes paid for housing with mortgages in 2010: 5 (1.4%) $4,665 Median RE property taxes paid for housing with no mortgage in 2010: 5 5 (1.1%) $3,466
About Miami Beach Note: Please be aware that the information included herein is deemed accurate but is not guaranteed or warranted in
any way. Also, this information is subject to change at any time without notice to recipients.
14
About Miami
Miami is a city located on the Atlantic coast in southeastern Florida and the
county seat of Miami-Dade County. The 42nd largest city proper in the United
States, with a population of 408,568, it is the principal, central, and most
populous city of the Miami metropolitan area, and the most populous metropolis
in the Southeastern United States. According to the U.S. Census Bureau, Miami's
metro area is the seventh most populous and fourth-largest urban area in the
United States, with a population of around 5.5 million.
Miami is a major center and a leader in finance, commerce, culture, media,
entertainment, the arts, and international trade. In 2010, Miami was classified as
a Alpha- World City in the World Cities Study Group’s inventory. In 2010, Miami
ranked seventh in the United States in terms of finance, commerce, culture,
entertainment, fashion, education, and other sectors. Ranked thirty-third among
global cities. In 2008, Forbes magazine ranked Miami "America's Cleanest City",
for its year-round good air quality, vast green spaces, clean drinking water, clean
streets and city-wide recycling programs. According to a 2009 UBS study of 73
world cities, Miami was ranked as the richest city in the United States, and the
world's fifth-richest city in terms of purchasing power. Miami is nicknamed the
"Capital of Latin America", is the second-largest U.S. city with a Spanish-speaking
majority, and the largest city with a Cuban-American plurality.
Downtown Miami and South Florida are home to the largest concentration of
international banks in the United States, and is home to many large companies
both nationally and internationally. The Civic Center is a major center for
hospitals, research institutes, medical centers, and biotechnology industries.
For more than two decades, the Port of Miami, known as the "Cruise Capital
of the World," has been the number one cruise passenger port in the world,
accommodating some of the world's largest cruise ships and operations, and
is currently the busiest in both passenger traffic and cruise lines
Miami has a tropical monsoon climate with hot and humid summers and short,
warm winters, with a marked drier season in the winter. Its sea-level elevation,
coastal location, position just above the Tropic of Cancer, and proximity to the
Gulf Stream shapes its climate. The wet season begins sometime in May,
ending in mid-October. During this period, temperatures are in the mid 80s to
low 70s. Much of the year's 55.9 inches (1,420 mm) of rainfall occurs during
this period.
Risks are involved in any real estate purchase. It is the investor’s responsibility to independently verify any data relied
upon for an investment using qualified legal, financial, and operations advisors. Prior to investing in real estate, investors
should also carefully consider possible tax consequences and legal requirements.
15
Presented by
Neal R. Deputy, Architect
305-467-4026
Note: Please be aware that the information included herein is deemed accurate but is not guaranteed or warranted in any way.
Also, this information is subject to change at any time without notice to recipients.
All material in this brochure is copyrighted and cannot be reproduced, distributed, or otherwise disseminated without the
expressed written consent of the Owner.