River Lofts Apartments
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River Lofts Apartments OFFERING MEMORANDUM | 43 UNIT WATERFRONT MULTI-FAMILY PORTFOLIO - UPPER EAST SIDE 500-522 NE 78 Street Miami, FL 33138 River Lofts Apartments CONTENTS 01 Executive Summary 05 Rent Roll 08 Additional Information Investment Summary 4 Rent Roll Details 42 River Lofts- Financial Analysis - Short 53 Unit Mix Summary 6 Term Rental FINAL Location Summary 7 AIR DNA Summary - River Lofts - FINAL 54 Triton Center 56 06 Financial Analysis T4R Zoning Table 58 02 Property Description Income & Expense Analysis 47 T5 Zoning - Miami 21 60 Property Features 9 Miami 21 - Waterfront Design Guidelines 63 Aerial 10 07 Demographics Permitting Procedures 72 Zoning Map 13 Demographics 49 Transit Oriented Development Map - 73 Miami 21 Transit Hub 14 Demographic Charts 50 79 Street Train Station 74 03 Rent Comps Rent Comparables Summary 16 Rent Comparables Map 33 04 Sale Comps Sale Comparables Summary 35 Sale Comparables Charts 39 Sale Comparables Map 40 Exclusively Marketed by: David Fermoselle Jose Ramos Rafael Fermoselle Associate Associate Director of Multi-Family Sales 305-299-4124 7865565515 305-299-4136 License # 3306806 License # SL3344854 [email protected] [email protected] [email protected] We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. River Lofts Apartments | Executive Summary 01 Executive Summary Investment Summary Unit Mix Summary Location Summary RIVER LOFTS APARTMENTS ................................................ River Lofts Apartments Investment Summary | 04 OFFERING SUMMARY Value Add / Development Opportunity in Miami's Upper East Side ADDRESS 500-522 NE 78 Street Miami FL 33138 Waterfront Property COUNTY Miami-Dade Current Cap Rate: 3.4% MARKET Miami SUBMARKET Upper East Side Pro Forma Cap Rate: 6% BUILDING SF 19,526 Short Term Rental Pro Forma Cap Rate: 9.8% LAND SF 41,575 Zoning: T4-R with opportunity up zone to T5 (Build NUMBER OF UNITS 43 5 stories/61 units) YEAR BUILT 1936/1949 Minutes Away from Miami Ironside District, YEAR RENOVATED 2018-2019 Wynwood/Design District, Miami Beach and Downtown Miami APN 01-3207-040-0211 OWNERSHIP TYPE Fee Simple New Hurricane Impact Windows Walking distance from 79th Street/Biscayne Blvd. FINANCIAL SUMMARY Commercial Corridor OFFERING PRICE $7,750,000 Walking Score: 92 / Transit Score: 54 / Biking Score: PRICE PSF $396.91 69 PRICE PER UNIT $180,233 Close Proximity to 79 St. Transit Hub (Tri- Rail/Amtrak/Bus) OCCUPANCY 85.00 % NOI (CURRENT) $265,726 New Mini Split HVAC Systems NOI (Pro Forma) $475,870 New Roofs CAP RATE (CURRENT) 3.43 % CAP RATE (Pro Forma) 6.14 % GRM (CURRENT) 13.91 GRM (Pro Forma) 10.58 DEMOGRAPHICS 1 MILE 3 MILE 5 MILE 2017 Population 25,631 172,067 502,953 2017 Median HH Income $34,139 $37,376 $37,914 2017 Average HH Income $57,822 $60,255 $62,922 River Lofts Apartments Investment Summary | 05 Another option for an owner/developer can take advantage of this rare waterfront site and combine both parcels, request a zoning change to T5, and build a new five (5) story mixed-use development project with 61 apartment units. Eleventrust is proud to present, its newest exclusive listing, the River Lofts Apartments, located at 500-522 NE 78th Street, in the Upper East Side neighborhood of Miami, Florida. The waterfront property is centrally located and is in close proximity to Miami Beach, Mimo District, Wynwood Arts District, Ironside District, Design District, and Downtown Miami/Brickell Financial District. The opportunity allows for an investor to acquire a portfolio of four (4) buildings, with a total of 43 apartment units, on two (2) contiguous parcels, facing Little River. All buildings are two- stories, and have been renovated over the past 18 months (featuring hurricane impact windows, new kitchens, new bathrooms, new floors and new mini split HVAC systems). The apartments range in size between 460-690 square feet. The units are currently generating between $700 and $1,300 a month ($1.52 - $2.83 a sq. ft.) in gross rental income at a cap rate of 3.43%. Market rate rents in the area are currently at $2.44 -$2.91 a sq. ft. for new or recently renovated units. With a well implemented capital improvement plan, the Net Operating Income can be improved from $265,726 to $475,870 at a cap rate of 6.03% (if operating as traditional multi-family). Assuming 43% of the property is operated as a short-term rental (Air BNB), conservative estimates show a potential to generate $766,989 in net operating income at cap rate of 9.8% (see detailed Short- Term Rental Financial Analysis). River Lofts Apartments Unit Mix Summary | 06 Actual Market Unit Mix # Units Square Feet Current Rent Rent PSF Monthly Market Rent Market Rent Market Income PSF Income 2 bd / 1 ba 1 690 $1,300 $1.88 $1,300 $1,450 $2.10 $1,450 1 bd / 1 ba 6 650 $1,150 $1.77 $6,900 $1,425 $2.19 $8,550 Studio / 1 ba 34 470 $925 $1.97 $31,450 $1,380 $2.94 $46,920 1 bd / 1.5 ba 2 625 $1,222 $1.96 $2,444 $1,475 $2.36 $2,950 Totals/Averages 43 507 $979 $1.94 $42,094 $1,392 $2.79 $59,870 River Lofts Apartments Location Summary | 07 Regional Map UPPER EAST SIDE / 79 STREET CORRIDOR / BISCAYNE CORRIDOR River Lofts Apartments is located in the intersection of two large commercial corridors in Miami's Urban Core - Biscayne Boulevard (from North to South) and 79th Street (from East to West). At the intersection of these two corridors is the Upper East Side neighborhood of Miami, which has been going through a major renaissance in recent years. RESTAURANTS, GALLERIES, AND BOUTIQUES There is no shortage of things to do in the Upper East Side. The shops, restaurants, boutiques, cafes and bars in the Mimo District, Ironside District, and 79th/Biscayne Corridor are all within a short distance of River Lofts. Ironside Pizza Citadel Food Hall Sherwoods Bistro & Bar Starbucks Bank of America CVS You Fit T Mobile Soykas Locator Map Andiamo's Pizza Bar Meli 69 Cross Fit Chase Bank Tropical Supermarket UPCOMING DEVELOPMENT PROJECTS The Upper East Side has been drawing continued interest from locals, tourists and investors/developers who are seeing the future potential of this eclectic sub market. Here are a few projects coming to this transitioning neighborhood: Triton Center (Mixed Use Hotel, Apartment, Office and Retail development immediately in front of subject property) 79th Street Transportation Hub - Virgin Trains/Brightline & Tri-Rail Legion Park Apartments Shorecrest Place Apartments Bayshore Point Metronomic Place Dos River Lofts Apartments | Property Description 02 Property Description Property Features Aerial Map Parcel Map Additional Maps RIVER LOFTS APARTMENTS ................................................ River Lofts Apartments Property Features | 09 Site Description NUMBER OF UNITS 43 BUILDING SF 19,526 LAND SF 41,575 LAND ACRES 0.95 YEAR BUILT 1936/1949 YEAR RENOVATED 2018-2019 # OF PARCELS 2 ZONING TYPE T4-R BUILDING CLASS C LOCATION CLASS C NUMBER OF STORIES 2 NUMBER OF BUILDINGS 4 NUMBER OF PARKING SPACES 21 WASHER/DRYER Common Areas FEES & DEPOSITS SECURITY DEPOSIT 1100 PET FEE $200.00 MECHANICAL HVAC Wall Units & Mini Split HVAC Systems UTILITIES WATER Landlord TRASH Landlord ELECTRIC Tenant CONSTRUCTION PARKING SURFACE Asphalt River Lofts Apartments Aerial | 10 River Lofts Apartments Aerial | 11 River Lofts Apartments Aerial | 12 River Lofts Apartments Zoning Map | 13 River Lofts Apartments Transit Hub | 14 River Lofts Apartments | Rent Comps 03 Rent Comps Rent Comparables Rent Comparables Map RIVER LOFTS APARTMENTS ................................................ River Lofts Apartments Rent Comparables Summary | 16 Unit Mix and Rent Schedule 1 Unit Mix # of Units Square Feet Rent Rent per SF 1 bd + 1 ba 1 524 $1,378 $2.62 Total/Avg 1 524 $1,378 $2.62 Unit Mix Breakdown The Corridor 760 NE 85 Street, Miami, FL 33138 Comparables Rent Analysis Property Summary 1 bd / 1 ba $1,150 - $1,818 UNITS 1 LOW HIGH YEAR BUILT 2018 OCCUPANCY 100.00 % Notes 2018 new construction. Modern Kitchen (granite counter tops, new appliances), modern bathroom, new tile floors, in unit washer/dryer, parking and impact windows/doors. Waterfront: No. River Lofts Apartments Rent Comparables Summary | 17 Unit Mix and Rent Schedule 2 Unit Mix # of Units Square Feet Rent Rent per SF Studio + 1 ba 1 533 $1,450 $2.72 Studio + 1 ba 1 558 $1,450 $2.59 Studio + 1 ba 1 640 $1,350 $2.10 Total/Avg 3 577 $1,417 $2.47 Unit Mix Breakdown 8101 Biscayne Boulevard, Miami, FL 33138 Property Summary UNITS 3 Comparables Rent Analysis YEAR BUILT 1968 OCCUPANCY 100.00 % Studio / 1 ba $925 - $1,450 LOW HIGH Notes [Data for Apt. R-510, R-612, R-203] DOM: 38, 42 & 8] (Leased: June 15, August 1 & November 29, 2018). Unit features: Industrial style lofts with polished Studio / 1 ba $925 - $1,450 concrete floors, modern kitchen (cabinets, stainless steal appliances including dishwasher, granite LOW HIGH countertops), Central HVAC, Impact Windows, in unit washer/dryer, updated modern bathroom (including finishes). Amenities: Elevator, Key card Studio / 1 ba $925 - $1,450 entry system, gym and rooftop deck with spa. Parking: Yes. Sub-market: Upper East Side.