Miami Suites South Beach 1321 15th Street, Miami Beach, FL 33139

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

1321 15th Street is a recently completed Suite Hotel in South Beach. The true value of this investment derives

Introduction 02 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 Location Map 03 an associated pro forma, and a recent appraisal.

Asset Overview 04 Suite Hotels have become the “go-to” destinations for vacationers, business travelers, and those seeking a Comparable Market Activity 05 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. Pro Forma 06 Perfect for families, groups, or getaways, the Suite Hotel is here to stay. Monthly Financial Projections 07 The Miami Suites South Beach is a legal short-term rental asset just two blocks from Lincoln Road Mall and Boundary Survey 08 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 Building Photographs 09 kitchens and baths, finishes, furnishings, impact windows and doors, and fire safety systems. The Miami Suites Building Floor Plans 10 South Beach is fully ADA compliant, includes a small lobby, is appropriately licensed for daily rentals, and is fully operational. Appraisal Synopsis 12

About Miami Beach 13 HIGHLIGHTS: About Miami 14 - Exceptional South Beach Location - - All Suites are Beautifully Renovated - - Eight 2BR Suites & Six 1BR Suites - - Use AirBnB, Bookings.com, Expedia, etc, - $6,300,000 Introduction - Multiple Additional Income Streams

$27,500,000

02

Location Map

L I N C O L N R O A D M A L L

1321 15

Bayshore Municipal Golf Course New Convention Center

Sailing the Bay Lincoln Road Mall

Alton Road Commercial District Fun in the Sun

Flamingo Park Tree Lined Meridian Boulevard

Alton Road to Miami Causeway Collins Avenue Shopping District World Famous Ocean Drive

Address 1321 15th Street, Miami Beach, FL 33139 Asking Price $6,300,000

Building Composition 14 Condominiums Number of Suites 14

Number of One-Bedroom Suites 6

Zoning Classification RM-1 (West Avenue Bay Front Overlay) Number of Two-Bedroom Suites 8 Allowable FAR 1.25 Price per Suite $ 450,000 Total Site Area 7,470 SF

Total Buildable Area 9,337 SF Projected Gross Income 2020 $ 946,888 Existing Building Area 8,762 SF Projected Expenses 2020 $ 436,804 Latent FAR 575 SF Projected NOI 2020 $ 510,084

Margin 54% Historic District None Projected Cap Rate 2020 8.10% Historic Status Non-Contributing

Price per Square Foot of Land $ 843 ADR Blended One-Bedroom $175 Price Per Square Foot of Building $ 719 ADR Blended Two-Bedroom $264 Price Per FAR Square Foot $ 702 Occupancy 80%

Asset Overview 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 04 offenses are $20,000.00.

The subject property was built in 1951 and was constructed of reinforced concrete Similar Suite Hotel Activity 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. SIMILAR PROPERTY SALE DATE SALE PRICE # SUITES TOTAL SF COST/SUITE COST/SF MVR Although originally constructed as a multifamily apartment building, the property has been converted to a legal Suite (Apartment) Hotel. New City ordinances governing ROYAL STAYS- BULK SALE 12/15 $12,500,000 30 24,813 $416,667 $504 properties within the West Avenue Bay Front Overlay District encourage the 1534 Euclid Ave. 4 3,611 1.40 conversion of existing multifamily stock into Suite Hotels. The property has been fully 1032 Michigan Ave. 5 4,692 1.00 upgraded with new impact windows and doors, a fire suppression and fire alarm 1440 Pennsylvania Ave. 5 4,331 1.90 system, new kitchens and baths, floor and wall finishes, new MEP, landscaping, and is 1536 Jefferson Ave. 16 12,179 2.80 fully ADA compliant. The property is appropriately licensed as a Suite Hotel and is fully operational. LA COSTA SUITES 5/16 $8,200,000 19 14,788 $431,579 $555 3.60 3003 Indian Creek Dr. 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 CREST SUITES 9/16 $10,800,000 24 11,952 $450,000 $904 N/A approximately 8/10 mile from Ocean Drive, the Beach, and Atlantic Ocean. The 1966 James Ave. 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. SADIGO APT. HOTEL 10/16 $12,976,000 30 24,200 $432,533 $536 2.75 However, for purposes of this valuation, professional projections, comparable sales, 347 Washington Ave. and a recent appraisal have all been utilized in the calculations of cap rate and other metrics. VILLA ITALIA 5/17 $5,150,000 13 5,916 $396,154 $871 2.10

354 Washington Ave. METHOD: Metric: Value: Total:

1. Average Suite Cost: 18 x $427,810 = $5,989,340 Total Cost= $49,626,000 Total SF= 81,669 Avg Cost/SF= $608 2. Average Cost per SF: 8,762 SF x $608/SF = $5,327,296 Total Suites= 116 Avg. Cost/Suite= $427,810 2.22 3. Pro Forma Financial Model: See Page 06 = $6,550,000

SUBJECT PROPERTY $6,300,000 14 8,762 $450,000 $719 1.7 4. Market Value Ratio: 2.22 x $3,696,836 = $8,206,975

Comparable Market Activity

05

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. *Dade County Property Taxes indicated have been calculated using the Dade County Capital Reserves $7,000 Estimated. Building is completely renovated. Linen $13,440 Based on curent operations. Property Appraiser’s Property Tax Calculator. However, RE taxes can be reduced Repairs & Maintenance $7,000 Estimated. Buildings are fully renovated. substantially by separating cost of business from purchase price. 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. ** Insurance costs can vary significantly based on lender, carriers, required coverages, Customer Care $15,120 Based on current costs business liability, etc. Cost reflected in proforma is indicative of similar sized facilities in the Food Supplies $0 Not applicable at this time. Licenses & Permits $1,000 Typical annual license renewal fees. area ($1,000 per Suite). NOI Prior to DS $510,084 $42,507 monthly Cap Rate 8.10% *** Management Fee is based on an assumed 15% of Net Income. However, this figure can Equity required $3,150,000 DSCR Loan Amt $3,150,000 2.31 be increased or decreased depending on desired level of service or eliminated altogether P&I annualized $220,975 $18,415 monthly NOI after DS $289,109 $24,092 monthly by an owner/operator. Cash on Cash 9.18%

Pro Forma

06

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

Monthly Financial Projections 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.

07

Boundary Survey

08

Interior Photographs

09

First Floor Plan

10

Second Floor Plan

11

Appraisal Synopsis

12

Appraisal Synopsis

13

Miami Beach is a coastal resort city located in Miami-Dade County, Florida. Miami Beach has a tropical climate with hot humid summers and warm dry

Incorporated on March 26, 1915, it is located on a series of natural and man- winters. Other than the Florida Keys, Miami Beach has the warmest winter

made barrier islands between the Atlantic Ocean and Biscayne Bay, the latter weather in the United States (mainland). The warm and sunny weather in Miami

separates the Beach from Miami city proper. The historic neighborhood of Beach and South Florida attracts millions of travelers from around the world from

South Beach, comprising the southern-most 2.5 square miles of Miami Beach, November through April. Sea surface temperatures range from 75 F in winter to along with Downtown Miami and the port, collectively form the commercial 86 F in the summer/fall months. Miami Beach has the warmest ocean surf in the center of South Florida. The current total population is 91,562, however, U.S. annually. South Beach is well known as the playground of the rich and Miami Beach hosted over 8.6 million visitors in 2016 and boasts 23,138 hotel famous as well as the world’s entertainment mecca. Real estate values continue rooms. Miami Beach has remained one of America's pre-eminent beach their upward climb. resorts for the past 100 years.

Mean Resident age 33139: 38.9 yrs March 2012 COL index: 117.2 Mean Resident Age in FL: 40.5 yrs In 1979, Miami Beach's Art Deco Historic District was listed on the National Well above U.S. average: 100.0

Register of Historic Places. The Art Deco District is the largest collection of Art Avg. household size 33139: 1.7p Land area in square miles: 2.7 Avg. household size in FL: 2.6p Water area in square miles: 3.3 Deco architecture in the world comprising hotels, apartments and other Avg. AGI in 2010 in 33139 $89,607 RE property taxes for housing units structures erected between 1923 and 1943. Mediterranean, Streamline Avg. AGI in 2010 in FL $50,523 2010 in 33139: (1.2%) $4,175 Moderne, and Art Deco are all represented in the District. South Beach is Florida: ( 1.0%) $1,882 bounded by the Atlantic Ocean on the East, Lenox Court on the West, 6th Avg. Wages filed in 33139: $52,304 Avg. Wages filed in FL: $39,563 Median RE property taxes paid for Street on the South and Dade Boulevard along the Collins Canal to the North. housing with mortgages in 2010: The movement to preserve the Art Deco District's architectural heritage was 33139 population 2010: 32,255 5 (1.4%) $4,665 33139 population 2000: 38,441 led by former interior designer Barbara Capitman, who now has a street in Median RE property taxes paid for Houses and Condos: 36,412 housing with no mortgage in 2010: the District named in her honor. Renter-occupied Apts: 16,452 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

Miami is a city located on the Atlantic coast in southeastern Florida and the Downtown Miami and South Florida are home to the largest concentration of county seat of Miami-Dade County. The 42nd largest city proper in the United international banks in the United States, and is home to many large companies States, with a population of 408,568, it is the principal, central, and most both nationally and internationally. The Civic Center is a major center for hospitals, research institutes, medical centers, and biotechnology industries. populous city of the Miami metropolitan area, and the most populous metropolis For more than two decades, the Port of Miami, known as the "Cruise Capital in the Southeastern United States. According to the U.S. Census Bureau, Miami's of the World," has been the number one cruise passenger port in the world, metro area is the seventh most populous and fourth-largest urban area in the accommodating some of the world's largest cruise ships and operations, and United States, with a population of around 5.5 million. is currently the busiest in both passenger traffic and cruise lines

Miami is a major center and a leader in finance, commerce, culture, media, Miami has a tropical monsoon climate with hot and humid summers and short, entertainment, the arts, and international trade. In 2010, Miami was classified as warm winters, with a marked drier season in the winter. Its sea-level elevation, a Alpha- World City in the World Cities Study Group’s inventory. In 2010, Miami coastal location, position just above the Tropic of Cancer, and proximity to the ranked seventh in the United States in terms of finance, commerce, culture, 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 entertainment, fashion, education, and other sectors. Ranked thirty-third among low 70s. Much of the year's 55.9 inches (1,420 mm) of rainfall occurs during global cities. In 2008, Forbes magazine ranked Miami "America's Cleanest City", this period. 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.

About Miami 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

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