Miami Suites South Beach

Licensed Short-Term Rentals in the Heart of the World’s Vacation Destination

1321 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

1321 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-

significantly building cap rate and cash flow. Monthly financial projections are included herein as well as

an associated pro forma, and a recent appraisal.

Suite Hotels have become the “go-to” destinations for vacationers, business travelers, and those seeking a

non-traditional hotel experience. The Miami Suites South Beach offers fourteen stand-alone One-Bedroom

and Two-bedroom Suites, each with full kitchen, living room, dining area, and all the comforts of home.

Perfect for families, groups, or getaways, the Suite Hotel is here to stay.

The Miami Suites South Beach is a legal short-term rental asset just two blocks from Lincoln Road Mall and

Alton Road. It is easy walking distance to flamingo Park and the Beach. Each of the Suites has been lovingly

restored and meticulously maintained- both inside and out. All Suites have been renovated with new

kitchens and baths, finishes, furnishings, impact windows and doors, and fire safety systems. The Miami Suites

South Beach is fully ADA compliant, includes a small lobby, is appropriately licensed for daily rentals, and

is fully operational.

HIGHLIGHTS:

- Exceptional South Beach Location

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- All Suites are Beautifully Renovated

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- Eight 2BR Suites & Six 1BR Suites

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- Use AirBnB, Bookings.com, Expedia, etc,

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- Multiple Additional Income Streams

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$6,300,000

$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

1321 15

Asset Overview

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Address

Building Composition

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

1321 15th Street, Miami Beach, FL 33139

14 Condominiums

RM-1 (West Avenue Bay Front Overlay)

1.25

7,470 SF

9,337 SF

8,762 SF

575 SF

None

Non-Contributing

$ 843

$ 719

$ 702

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

Projected Cap Rate 2020

ADR Blended One-Bedroom

ADR Blended Two-Bedroom

Occupancy

$6,300,000

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$ 450,000

$ 946,888

$ 436,804

$ 510,084

54%

8.10%

$175

$264

80%

Suite Hotels in Miami Beach will soar in value due to recent restrictions passed by the City of

Miami Beach outlawing the operation of unlicensed short-term rentals in Residential districts

and prohibiting the use of AirBnB, Bookings.com, VRBO, HomeAway, etc. Fines for first time

offenses are $20,000.00.

Comparable Market Activity

The subject property was built in 1951 and was constructed of reinforced concrete

block with wood framed floors and roof structure. The building comprises 6 one-

bedroom units totaling 3,042 square feet and 8 two-bedroom units totaling 5,451

square feet. The total County Adjusted building area equals 8,762 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

upgraded with new impact windows and doors, a fire suppression and fire alarm

system, new kitchens and baths, floor and wall finishes, new MEP, landscaping, and is

fully ADA compliant. The property is appropriately licensed as a Suite 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 several 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 cap rate and other

metrics.

METHOD: Metric: Value: Total:

1. Average Suite Cost: 18 x $427,810 = $5,989,340

2. Average Cost per SF: 8,762 SF x $608/SF = $5,327,296

3. Pro Forma Financial Model: See Page 06 = $6,550,000

4. Market Value Ratio: 2.22 x $3,696,836 = $8,206,975

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Similar Suite Hotel Activity

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 $6,300,000 14 8,762 $450,000 $719 1.7

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.

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Drexel Ave.Sales Price $6,300,000 No.Units SF Monthly Total Per Year

No. of Suites 14 14 626 $5,429 $76,010 $946,888

Price per Suite $450,000 Totals 8,762 $5,429 $76,010 $946,888

Gross Income $946,888 Based on annual projections. Includes Cleaning fees

Vacancy factor 20% Already deducted from monthly income Occupancy is projected at 80%

Other income $0

Operating Expenses $436,804

*RE Taxes-reassesed $95,977

Electric $14,000

Legal/Acct $2,500

Pest/Termite $1,800 Currently no issues. Fees are for preventative measures.

**Insurance $14,000

***Management Fee $90,014 15% of net revenue ($600,098). Employees are paid by management company

CC Commissions $18,938 2% Based on Current Fees

Water/Sewer $8,400

OTAs Commissions $106,815 12% average of primary OTAs employed: AirBnB, Booking, & Expedia

Cable/Internet/Phone $12,600 Represents competitive bulk agreement in place.

Capital Reserves $7,000 Estimated. Building is completely renovated.

Linen $13,440 Based on curent operations.

Repairs & Maintenance $7,000 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 $28,200 Based on existing agreements with cleaning service.

Customer Care $15,120 Based on current costs

Food Supplies $0 Not applicable at this time.

Licenses & Permits $1,000 Typical annual license renewal fees.

NOI Prior to DS $510,084 $42,507 monthly

Cap Rate 8.10%

Equity required $3,150,000 DSCR

Loan Amt $3,150,000 2.31

P&I annualized $220,975 $18,415 monthly

NOI after DS $289,109 $24,092 monthly

Cash on Cash 9.18%

Monthly Financial Projections 8 Two-Bedroom Suites & 6 One-Bedroom Suites TOTALS:

Monthly Financial Projections

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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

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Interior Photographs

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First Floor Plan

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Second Floor Plan

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Appraisal Synopsis

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Appraisal Synopsis

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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.

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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.

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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