Miami Suites South Beach 1321 15Th Street, Miami Beach, FL 33139
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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.