Marriott Offering Memorandum
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OFFERING MEMORANDUM HOTEL INVESTMENT OPPORTUNITY IN FORT LAUDERDALE, FLORIDA Photo is illustrative of proposed development MARRIOTT TOWN PLACE SUITES Photo is illustrative of proposed development1 WWW.CREFLORIDAPARTNERS.COM OFFERING MEMORANDUM EXCLUSIVELY OFFERED BY Dan Casey, CCIM Senior Vice President - Investment Properties Tel: (954) 232.4763 [email protected] & Michael Rauch Senior Managing Partner Tel: (954) 242.2806 [email protected] 301 CRAWFORD BOULEVARD SUITE 200 BOCA RATON, FLORIDA 33432 www.crefloridapartners.com Photo is illustrative of proposed development 2 WWW.CREFLORIDAPARTNERS.COM CONFIDENTIALITY AND DISCLAIMER THIS CONFIDENTIAL MEMORANDUM has been prepared by Rauch, Robertson & Co., CRE Florida Partners (“ADVISOR”) on behalf of Resecom LLC and its affiliates (“PRINCIPAL”), and is being furnished on a confidential basis for the sole purpose of review by a limited number of prospective developers and hotel operators (independently and collectively referred to as “RECIPIENT(S)”) that may have an interest in the property and proposed development described herein (“PROPERTY”). By its acceptance hereof, RECIPIENT agrees it will not copy, reproduce or distribute to others this document, in whole, or in part, at any time without the prior written authorization of ADVISOR or PRINCIPAL. Each RECIPIENT will use this Memorandum only for the purpose of evaluating the PROPERTY and development outlined herein, and not in any manner detrimental to the interests of ADVISOR or PRINCIPAL. This Memorandum is the property of ADVISOR and PRINCIPAL and may be used only by parties approved by ADVISOR and PRINCIPAL. All information contained herein is preliminary and subject to change. The information provided in this offering is confidential and will be held and treated in the strictest confidence. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of ADVISOR and PRINCIPAL. No warranty or representation, expressed or implied, is made by ADVISOR or PRINCIPAL, as to the accuracy or completeness of the information contained herein or set forth in any other written or oral communication transmitted by ADVISOR or PRINCIPAL to RECIPIENT in the course of its evaluation of the proposed PROPERTY. Nothing contained herein constitutes investment, legal or tax advice or an offer to sell or a solicitation of an offer to buy any security. Prospective investors should make their own projections and conclusions without reliance upon the material contained herein. Further, RECIPIENT should not look to PRINCIPAL or ADVISOR for any liability relating to the accuracy or completeness of any such information contained herein. Certain documents are described in summary form in this Memorandum. The summaries do not purport to be complete, accurate descriptions of the full agreements involved, nor do they purport to constitute a legal analysis of the provisions of the documents and such summaries are qualified in their entirety by reference to such documents. ADVISOR and PRINCIPAL expressly reserve the right, at their sole discretion, to pre-qualify and/or reject any or all expressions of interest in the PROPERTY and proposed Development, and/or to terminate discussions with any RECIPIENT at any time with or without notice. PRINCIPAL shall have no legal commitment or obligation to any RECIPIENT reviewing this Memorandum or making an offer for the PROPERTY unless and until a written agreement for such has been fully executed, delivered, and approved by PRINCIPAL and any conditions to PRINCIPAL’s obligations thereunder have been satisfied or waived. ADVISOR presents this CONFIDENTIAL MEMORANDUM on an exclusive basis to RECIPIENT and by acceptance of the Memorandum, the RECIPIENT hereby acknowledges that it was introduced to the PROPERTY, the Proposed Development and PRINCIPAL solely through ADVISOR and not through any other individual(s) or companies(s). Photo is illustrative of proposed development 3 WWW.CREFLORIDAPARTNERS.COM TABLE OF CONTENTS Confidentiality Agreement ........................................ 3 Section 1: Executive Summary ................................. 6 Section 2: Financial Summary .................................. 7 Section 3: Project Timeline ....................................... 11 Section 4: Site and Floor Plan .................................. 12 Section 5: Rendering ............................................... 14 Section 6: Locations ................................................ 15 Section 7: Area Demographics ................................. 18 Section 8: About The Operator .................................. 25 Section 9: About The Development Team .................. 26 Photo is illustrative of proposed development 4 WWW.CREFLORIDAPARTNERS.COM Street View: Site From N Federal Highway SE Street View: Site From N. Federal Hwy SW Aerial View: Site From N Federal Highway SW Aerial View: Site From NE 2nd Street NE 5 WWW.CREFLORIDAPARTNERS.COM EXECUTIVE SUMMARY CRE Florida Partners is pleased to present the proposed development of a Marriott The Port of Everglades, located just 3 miles from the property, is the second largest Town Place Suites Hotel, located just 1.2 miles South of the Fort Lauderdale-Hollywood cruise ship terminal in the United States and is home to ten cruise lines operating 37 International Airport Terminals. In addition to an outstanding location, this proposed ships. In 2018, over 3.8 million passenger embarked on daily and weekly excursions 10-story, 118,000-square-foot hotel will feature 111 apartment-styled guest rooms throughout the Caribbean, South America and across the Atlantic. The Port of and an integrated parking structure. Designed to appeal to extended-stay travelers Everglades is also one of nation’s largest container shipping ports. Port Everglades that want to feel at home and stay productive, the TownePlace brand attracts a diverse exceeded one-million TEUs (20-foot equivalent units, the industry’s standard container range of guests; from vacationers to business travelers. measurement), for the fourth consecutive year, reporting a total of 1,108,465 TEUs shipped or received in Fiscal Year 2018, making it Florida’s number one container port The development offers an extraordinary opportunity to build a Marriott-branded hotel and the 10th leading container port in the United States, serving more than 150 ports in an exceptionally tight market with a severe shortage of newly constructed hotel and 70 countries. The Port of Everglades’ Cruise Ship and Cargo Operations account properties and rapidly expanding demand driven by major infrastructure improvements for over 4 million visitors to the area annually. in the immediate area and throughout Broward County. This infrastructure investment is really paying of as the area’s business, housing and tourism industries see long term The city of Dania Beach has implemented an impressive redevelopment plan to attract growth continuing for years to come. new development with major street and utilities infrastructure improvements which are driving new private development that is making Dania Beach a great place to live, work The Fort Lauderdale - Hollywood International Airport is less than a half mile from the and play. Notable projects include: the $64 million expansion and redevelopment of development site with the airline passenger terminals conveniently located just a short The Casino @ Dania Beach, a mixed-use venue featuring gaming, Jai Alai and a concert drive north on Federal Highway (US-1). The airport is currently in the midst of a $3.2 venue, as well as, Avery Dania Pointe - a new $1.3 billion, 52-acres upscale mixed-use billion expansion/modernization master plan the began with the extension of one of development featuring one million square feet of shopping, dining & entertainment, its runways in order to accommodate large wide-body international jets. Over the next 264 luxury apartments, 500,000-1,000,000 square feet of prime, Class A office several years, the passenger terminals will be expanded and modernized to increase space and two upscale business/resort style hotel properties. These, and future the number of gates from 62 to 95 in order to allow hundreds of more flights per day. development projects currently in planning, are reshaping Dania Beach as one of Over the past five years, annual airport traffic has increased from 23.6 million travelers South Florida’s most active markets for residential and tourist oriented development. annually to 35.9 million in 2018; a 52% increase. By 2035, it’s estimated that annual passenger traffic will increase an additional 45% reaching 52 million travelers. OVERVIEW FLOORS ....................................................................................... 10 CONSTRUCTION COMMENCEMENT .................................... JUNE 2020 NUMBER OF ROOMS .................................................................... 111 CONSTRUCTION COMPLETION ........................................... NOV. 2021 AVERAGE PER SQ. FT. ................................................................... 320 PROJECT DURATION ........................................................... 18 MONTHS AVERAGE DAILY RATE (ADR) .......................................................... $140 PROJECT STABILIZATION DATE ............................................ JAN. 2023 REVENUE/AVAILABLE ROOM (RevPAR) ......................................... $120 PROJECT SALE DATE ..........................................................