Drexel Suites 440 14th Street & 1355-57 Drexel Avenue

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

Suite Hotels have quickly become the “go-to” destinations for vacationers, business travelers, and Introduction 02 those seeking a non-traditional hotel experience. Each Suite comprises a stand-alone apartment Location Map 03 complete 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. Asset Overview 04 Suite Hotels in Miami Beach will soar in value due to recent restrictions passed by the City of Miami Comparable Market Activity 05 Beach outlawing the operation of unlicensed short-term rentals in Residential districts, prohibiting Pro Forma 06 the use of AirBnB, Bookings.com, VRBO, HomeAway, etc. Fines for first time offenses are $20,000.

Derson Monthly Projections 07 The Drexel Suites South Beach present a remarkable investment opportunity. Each of the eighteen

Site Plan 08 Suites has been lovingly restored and meticulously maintained- both inside and out. There are twelve Two-Bedroom Suites and six One-Bedroom Suites to maximize both occupancy and ADR. Building Photographs 09 All Suites have been renovated with new kitchens and baths, finishes, furnishings, central A/C, 440 14th- Ground Floor Plan 10 impact windows and doors, and fire safety systems. The Drexel Suites South Beach is fully ADA 1335 Drexel- Ground Floor Plan 11 compliant, includes a small lobby, is legally licensed for daily rentals, and is fully operational.

About Miami Beach 12 HIGHLIGHTS: About Miami 13 - All Suites Licensed for Daily Rentals - Exceptional South Beach Location - All Suites are Beautifully Renovated

- Twelve 2BR Suites & Six 1BR Suites

- Use AirBnB, Bookings.com, Expedia, etc, Introduction - Multiple Additional Income Streams $8,850,000 - CD-2 Commercial Zoning $27,500,000

02 Location Map

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

440 14th Street Bayshore Municipal Golf Course New Convention Center

1355-57 Drexel

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 440 14th Street, 1355-57 Drexel Avenue Asking Price $8,850,000

Building Composition 18 Condominiums Number of Suites 18

Number of One-Bedroom Suites 6

Zoning Classification CD-2: Commercial Medium Intensity Number of Two-Bedroom Suites 12 Allowable FAR 1.5 Price per Suite $472,222 Total Site Area 9,326 SF

Total Buildable Area 13,989 SF Projected Gross Income 2019 $1,172,718 Existing Building Area 10,694 SF Projected Expenses 2019 $552,039 Latent FAR 3,295 SF Projected NOI 2019 $620,679

Margin 53% Historic District Flamingo Park Historic District Cap Rate 7.01% Historic Status Contributing

Price per Square Foot of Land $949 ADR Blended One-Bedroom $175 Price Per Square Foot of Building $828 ADR Blended Two-Bedroom $237 Price Per FAR Square Foot $633 Occupancy 77%

Asset Overview

04 Similar Suite Hotel Activity The subject property consists of two buildings; 440 14th Street and 1355-57 Drexel Avenue. Both 1355 & 1357 Drexel Ave. Closed Sales- Suites Hotels buildings were constructed as garden apartments in 1935 of reinforced concrete block with wood framed floors and roof structure. 440 14th Street is comprised of eight two-bedroom Suites totaling SIMILAR PROPERTY SALE DATE SALE PRICE # SUITES TOTAL SF COST/SUITE COST/SF MVR 4,548 square feet. 1355-57 Drexel Avenue comprises ten units with four two-bedroom Suites and six one-bedroom Suites totaling 6,164 square feet. The total County Adjusted building area equals 10,694 ROYAL STAYS- BULK SALE 12/15 $12,500,000 30 24,813 $416,667 $504 1534 Euclid Ave. 4 3,611 1.40 square feet. 1032 Michigan Ave. 5 4,692 1.00 The most significant feature of the property’s location is its proximity to South Beach’s primary 1440 Pennsylvania Ave. 5 4,331 1.90 Commercial District comprised of Collins Avenue and Washington Avenue as well as Ocean Drive, the 1536 Jefferson Ave. 16 12,179 2.80 Beach, and Atlantic Ocean. It is also walking distance (three blocks) to Lincoln Road Mall and the new LA COSTA SUITES 5/16 $8,200,000 19 14,788 $431,579 $555 3.60 Convention Center. 3003 Indian Creek Dr. The property lies in a CD-2 (Commercial- Medium Intensity) zoning district which allows for hotels as CREST SUITES 9/16 $10,800,000 24 11,952 $450,000 $904 N/A a main permitted use. The property has been fully upgraded with new impact windows and doors, a 1966 James Ave. fire suppression and fire alarm system, new kitchens and baths, finishes, furnishings hardscape, landscaping, and is fully ADA compliant. The property is appropriately licensed as a Hotel and is fully ST. AUGUSTINE HOTEL 4/17 $9,000,000 24 6,566 $375,000 $1,371 2.10 operational. 347 Washington Ave. Significant upside exists through the introduction of additional amenities such as Food & Beverage VILLA ITALIA 5/17 $5,150,000 13 5,916 $396,154 $871 2.10 Service, a plunge pool, vending, laundry, valet service, zip cars, scooters, bicycles, as well as on-call 354 Washington Ave. specialty vendors such as chefs, masseuses, and yoga instructors. Additionally, significant latent FAR allows for additional construction. Property valuation methods are illustrated below; REDBURY HOTEL 10/17 $32,000,000 69 42,611 $463,768 $751 1.62 1776 Collins Ave. METHOD: Metric: Value: Total:

Villa Paradiso ACTIVE $7,500,000 17 8,379 $441,176 $895 2.87 1. Average Suite Cost: 18 x $434,439 = $7,819,902 1415 Collins Ave. 2. Average Cost per SF: 10,694 SF x $740/SF = $7,913,560

Total Cost= $85,150,000 Total SF= 115,025 Avg Cost/SF= $740 3. Pro Forma Financial Model: See Page 06 = $8,850,000

Total Suites= 196 Avg. Cost/Suite= $434,439 2.15 4. Market Value Ratio: 2.15 x $4,311,143 = $9,268,957

Comparable Market Activity

05

Drexel Ave. Sales Price $8,850,000 No.Units SF Monthly Total Per Year No. of Suites 18 18 594 $5,429 $97,727 $1,172,718 Price per Suite $491,667 Totals 10,694 $5,429 $97,727 $1,172,718 Gross Income $1,172,718 Based on Derson 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, such as F&B, valet, vendors, etc. Operating Expenses $552,039 *RE Taxes-reassesed $134,824 Electric $15,626 Legal/Acct $2,500 Pest/termite $1,800 Currently no issues. Fees are for preventative measures. **Insurance $18,000 ***Mgmt Fee $109,531 15% of net revenue ($730,210). Employees are paid by management company CC Commissions $23,454 2% Based on Derson Projections Water/Sewer $10,800 OTAs Commissions $131,784 12% average of primary OTAs employed: AirBnB, Booking, & Expedia *Dade County Property Taxes indicated have been calculated using the Dade County Property Appraiser’s Cable/Internet/phone $16,200 Represents competitive bulk agreement in place. Property Tax Calculator. However, RE taxes can be reduced substantially by separating cost of business from Capital Reserves $6,000 Estimated. Building is completely renovated. Linen $17,280 Based on Derson projections purchase price. Repairs & Maintenance $6,000 Estimated. Buildings are fully renovated. Marketing $0 Sales and bookings are driven by OTAs. ** Insurance costs can vary significantly based on lender, carriers, required coverages, business liability, etc. Tourist/Resort Tax $0 Pass-through entity not factored into pro forma. Cleaning $37,800 Based on existing agreements with cleaning service. Cost reflected in proforma is indicative of similar sized facilities in the area ($1,000 per Suite). Customer Service $19,440 Based on Derson projections Food Supplies $0 Not applicable at this time. *** Management Fee is based on an assumed 15% of Net Income. However, this figure can be increased or Licenses & Permits $1,000 Typical annual licene renewal fees. NOI prior to DS $620,679 $51,723 monthly decreased depending on desired level of service or eliminated altogether by an owner/operator. Cap rate 7.01% Equity required $3,097,500 DSCR Significant upside exists through the introduction of additional amenities such as Food & Beverage Service, Loan Amt $5,752,500 1.54 a plunge pool, vending, laundry, valet service, zip cars, scooters, bicycles, as well as on-call specialty vendors P&I annualized $403,543 $33,629 monthly NOI after DS $217,136 $18,095 monthly such as chefs, masseuses, and yoga instructors. Cash on Cash 7.01%

Pro Forma Figures in the Pro Forma at left are derived from projections provided by Derson along with additional Income and Expense information provided by the Owner/Operator.

06

Derson Monthly Projections 12 Two-Bedroom Suites & 6 One-Bedroom Suites TOTALS:

Figures above are provided by Derson exclusively for the Drexel Suites South Beach. Derson is the leading Derson Monthly Projections Suite Hotel and Apartment Hotel consulting firm providing analysis, design, recommendations, and income projections from their offices in New York, Rome, Miami, Chicago, London, San Francisco, Montreal, Houston, and Boston. 07

440 14th Street

1355 & 1357 Drexel Avenue

Site Plan

08

Building Photographs

09

BEDROOM BEDROOM BEDROOM BEDROOM

Suite 1 Suite 3 500 SF 504 SF

Suite 4 Suite 2 476 SF 478 SF

BEDROOM BEDROOM BEDROOM

th 440 14 Street- Ground Floor Plan

Second Floor is Identical

10

Suite 5 570 SF Suite 1 Suite 2 Suite 7 816 SF 414 SF 448 SF

Suite 6 448 SF

1355-57 Drexel Avenue- Ground Floor Plan Second Floor is Similar

11

Miami Beach is a coastal resort city located in Miami-Dade County, . 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 , 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..

12

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.

13

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 by The Keyes Company and cannot be reproduced, distributed, or otherwise disseminated without the expressed written consent of the Keyes Company