OFFERING MEMORANDUM HOTEL INVESTMENT OPPORTUNITY IN FORT LAUDERDALE,

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. 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 ...... JUNE 2024

STABILIZED NOI TOTAL COST COST/KEY EXIT CAP EQUITY MULTIPLE GROSS PROCEEDS | xIRR | mIRR SALES/KEY $1.9M $24.86M $224K 6.0% 2.33x $36.6M | 19.4% | 15.40% $329K 6 WWW.CREFLORIDAPARTNERS.COM FINANCIAL SUMMARY

BUDGET INCOME SUMMARY PROFORMA COST ANALYSIS AMOUNT Per Key PSF INCOME | (Yr. 4) TOTAL % Net Rev Land: (Fully Entitled w/ all approvals $3,100,000 $27,928 $26.3 Gross Revenues $5,976,698 116.1% Due Diligence $176,000 $1,586 $1.5 Less: Vacancy ($896,505) -17.4% Architectural & Engineering $400,000 $3,604 $3.4 Other Income $65,564 1.3% Construction Costs $17,799,764 $160,358 $150.8 NET EFFECTIVE INCOME $5,145,757 100.0% Government Fees $230,000 $2,072 $1.9 Loan Costs & Interest Reserve $1,272,176 $11,461 $10.8 General Administrative $287,382 $2,589 $2.4 Marketing $33,000 $297 $0.3 EXPENSES Legal Fees & Other $276,560 $2,492 $2.3 Rooms $965,237 18.8% Development Fees $670,558 $6,041 $5.7 Telecommunications $3,769 0.1% Pre-Opening. & Working Capital $285,000 $2,568 $2.4 Other Department $13,461 0.3% Contingency $330,608 $2,978 $2.8 Administrative & General $360,203 7.0% TOTAL PROJECT COST $24,861,048 $223,973 $210.7 Marketing $205,830 4.0% FINANCING 65% $16,159,681 Repair & Maintenance $154,373 3.0% EQUITY REQUIRED 35% $8,701,367 Utilities $174,956 3.4% Marriott Franchise Fees [1] $566,033 11.0% Asset Mangement Fee $152,406 3.0% PROPOSED PROJECT CAPITALIZATION Property Tax $265,000 5.1% SOURCE AMOUNT % Insurance $85,000 1.7% Outside Equity $7,831,230 90% TOTAL OPERATING EXPENSES $2,946,268 57.3% Sponsor Equity $870,137 10% NET OPERATING INCOME $2,199,489 42.7% TOTAL EQUITY $8,701,367 100% RETURN ON COST 8.85% [1] Program fees, Loyal fees, Marriott Honor Fees, Regional Marketing, Franchise Fees

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Confidential 11/1/2019 Confidential Page11/1/2019 1 Page 1 FINANCIAL SUMMARY PROJECT SALE PROJECT REFINANCE

SALE SUMMARY - PROJECT HOLD SUMMARY | INVESTOR SUMMARY REFINANCE REFINANCING LOAN ASSUMPTIONS DESCRIPTION TOTAL DESCRIPTION TOTAL DESCRIPTION TOTAL Exit Cap Rate 6.00% Initial Equity Contributions $8,701,367 NOI | (Yr. 4) $2,199,489 NOI at Sale $2,199,489 Less Proceeds From Refinancing ($3,324,296) CAP Rate 7.75% SALE PRICE $36,658,150 EQUITY INVESTMENT REMAINING $5,377,071 Valuation $28,380,504 Less: Cost of Sale ($641,518) Loan to Value 65.0% NOI | (YR. 5) $2,273,974 Proposed Loan Amoun $18,447,327 NET SALES PROCEEDS $36,016,633 Debt Service ($1,460,296) Closing Costs (1.25%) ($230,592) Less: Project Costs ($24,861,048) Other expenses before FCF ($107,541) NET LOAN PROCEEDS $18,216,736 PROFIT ON SALE $11,155,585 Company reserves ($22,740) Existing Loan Balance ($14,892,440) Plus: Cashflow $2,570,029 NET CASH FLOW $683,396 CASH PROCEEDS $3,324,296 Plus: Loan Amortization $1,267,241 Less Preferred Return (7%) ($430,166) Less: Preferred Return ($2,570,029) NET PROFIT TO DISTRIBUTE $253,230 NET PROFIT TO DISTRIBUTE $12,422,827 EQUITY MULTIPLE 2.72x NEW LOAN ASSUMPTIONS PROJECT IRR 23.25% NEW INVESTOR CASHFLOW DESCRIPTION TOTAL Rate 6.25% INVESTOR RETURN SUMMARY DESCRIPTION TOTAL Limited Partner Preferred Return $430,166 Amortization 25 DESCRIPTION TOTAL Limited Partner Additional Distribution $177,261 Payment (Year) $1,460,296 Investor Profit on Sale $8,695,979 LIMITED PARTNER TOTAL CASH DISTRIBUTIONS $607,427 Debt Coverage Ratio 1.51 Preferred Return $2,570,029 LIMITED PARTNER YIELD ON INVESTED EQUITY 11.30% Equity Reimbursement $8,701,367 TOTAL PROCEEDS $19,967,374 EQUITY MULTIPLE 2.33x INVESTOR IRR 19.40%

CASH ON CASH CASH ON CASH Yr.1 Yr.2 Yr.3 Yr.4 Yr.5 Yr.6 Yr.7 Yr.8 Yr.9 Yr.10 4.9% 7.4% 8.2% 9.0% 12.7% 13.7% 14.9% 13.9% 14.9% 15.9%

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Confidential 11/1/2019 Page 1

Confidential 11/1/2019 Page 1 Confidential 11/1/2019 Page 1

Confidential Confidential 11/1/2019 11/1/2019 Page 1 Page 1 FINANCIAL SUMMARY

MARRIOTT HOTEL DANIA BEACH FLORIDA

TAXABLE INCOME Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Keys 111 111 111 111 111 111 111 111 111 111 Rooms Occupied 30,386 34,438 34,438 34,438 34,438 34,438 34,438 34,438 34,438 34,438 Rooms Available/Year 40,515 40,515 40,515 40,515 40,515 40,515 40,515 40,515 40,515 40,515 Occupancy 75.00% 85.00% 85.00% 85.00% 85.00% 85.00% 85.00% 85.00% 85.00% 85.00% ADR $135.00 $139.05 $143.22 $147.52 $151.94 $156.50 $161.20 $166.03 $171.01 $176.14 RevPar $101.25 $118.19 $121.74 $125.39 $129.15 $133.03 $137.02 $141.13 $145.36 $149.72 % Change from prior year $0 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% REVENUE Rooms $4,102,144 $4,788,569 $4,932,226 $5,080,193 $5,232,599 $5,389,577 $5,551,264 $5,717,802 $5,889,336 $6,066,016 Other Department $60,000 $61,800 $63,654 $65,564 $67,531 $40,000 $40,000 $40,000 $40,000 $40,000 Total Revenue $4,162,144 $4,850,369 $4,995,880 $5,145,757 $5,300,129 $5,429,577 $5,591,264 $5,757,802 $5,929,336 $6,106,016 % Change from prior year $0.2 3.0% 3.0% 3.0% 2.4% 3.0% 3.0% 3.0% 3.0% DEPARTMENTAL EXPENSES Rooms $779,407 $861,942 $887,801 $965,237 $994,194 $1,024,020 $1,054,740 $1,086,382 $1,118,974 $1,152,543 Telecommunications $3,500 $3,588 $3,677 $3,769 $3,882 $3,500 $3,500 $3,500 $3,500 $3,500 Other Department $12,500 $12,813 $13,133 $13,461 $13,865 $12,500 $12,500 $12,500 $12,500 $12,500 Total Operating Expense $795,407 $878,342 $904,611 $982,467 $1,011,941 $1,040,020 $1,070,740 $1,102,382 $1,134,974 $1,168,543

DEPARTMENTAL PROFIT $3,366,736.4 $3,972,026.7 $4,091,269.5 $4,163,289.7 $4,288,188.4 $4,389,557.2 $4,520,523.9 $4,655,419.6 $4,794,362.2 $4,937,473.1 % Change from prior year 18% 3.0% 1.8% 3.0% 2.4% 3.0% 3.0% 3.0% 3.0% Administrative & General $374,593 $388,030 $399,670 $360,203 $371,009 $380,070 $391,388 $403,046 $415,054 $427,421 Marketing $166,486 $194,015 $199,835 $205,830 $212,005 $217,183 $223,651 $230,312 $237,173 $244,241 Repair & Maintenance $124,864 $145,511 $149,876 $154,373 $159,004 $162,887 $167,738 $172,734 $177,880 $183,180 Utilities $145,675 $169,763 $169,860 $174,956 $180,204 $184,606 $190,103 $195,765 $201,597 $207,605 Total General Expenses $811,618 $897,318 $919,242 $895,362 $922,223 $944,746 $972,880 $1,001,858 $1,031,704 $1,062,447

GROSS OPERATING PROFIT $2,555,118 $3,074,708 $3,172,028 $3,267,928 $3,365,966 $3,444,811 $3,547,644 $3,653,562 $3,762,658 $3,875,026 Management Fees Marriott Franchise Fees [1] $457,836 $533,541 $549,547 $566,033 $583,014 $597,253 $615,039 $633,358 $652,227 $671,662 Asset Mangement Fee $123,064 $143,657 $147,967 $152,406 $156,978 $161,687 $166,538 $171,534 $176,680 $181,980 Property Tax $245,000 $258,000 $262,000 $265,000 $267,000 $272,340 $277,787 $283,343 $289,009 $294,790 Insurance $80,000 $82,000 $83,000 $85,000 $85,000 $86,700 $88,434 $90,203 $92,007 $93,847 Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Fees & Other $905,900 $1,017,198 $1,042,514 $1,068,439 $1,091,992 $1,117,981 $1,147,798 $1,178,437 $1,209,923 $1,242,279

=NET OPERATING INCOME (NOI) $ 1,649,218 $ 2,057,511 $ 2,129,514 $ 2,199,489 $ 2,273,974 $ 2,326,830 $ 2,399,846 $ 2,475,125 $ 2,552,735 $ 2,632,748 % Revenues 39.6% 42.4% 42.6% 42.7% 42.9% 42.9% 42.9% 43.0% 43.1% 43.1% % Change from prior year $0.2 3.5% 3.3% 3.4% 2.3% 3.1% 3.1% 3.1% 3.1% [1] Program fees, Loyalty fees, Marriott Honor Fees, Regional Marketing, Franchise Fees

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Confidential 11/1/2019 Page 1 FINANCIAL SUMMARY MARRIOTTMARRIOTT HOTEL HOTEL DANIA DANIA BEACH BEACH FLORIDA FLORIDA

TAXABLETAXABLE INCOME INCOME YearYear 1 1 YearYear 2 2 YearYear 3 3 YearYear 4 4 YearYear 5 5 YearYear 6 6 YearYear 7 7 YearYear 8 8 YearYear 9 9 YearYear 10 10 CASHFLOW CASHFLOW NET OPERATING INCOME $ 1,649,218 $ 2,057,511 $ 2,129,514 $ 2,199,489 $ 2,273,974 $ 2,326,830 $ 2,399,846 $ 2,475,125 $ 2,552,735 $ 2,632,748 (-)NET Annual OPERATING Debt Service INCOME $ 1,649,218 $ 1,918,079 $ 2,129,514 $ 2,199,489 $ 2,273,974 $ 2,326,830 $ 2,399,846 $ 2,475,125 $ 2,552,735 $ 2,632,748 (-) AnnualInterest Debt Expense Service $ 929,182 $ 912,463 $ 894,783 $ 876,087 $ 1,152,958 $ 1,133,749 $ 1,113,340 $ 1,091,655 $ 1,068,615 $ 1,044,135 PrincipalInterest AmortizationExpense $ $ 290,757 879,750 $ $ 307,476 863,921$ $ 325,156 847,182 $ $ 343,852 829,480$ $ 307,338 1,152,958 $ $ 326,547 1,133,749 $ $ 346,956 1,113,340$ $ 368,641 1,091,655 $ $ 391,681 1,068,615 $ $ 416,161 1,044,135 (-) ManagementPrincipal Amortization Fees 2.00% $ $ 275,289 - $ $ 174,027 291,118$ $ 174,027 307,858 $ $ 174,027 325,560$ $ 107,541 307,338$ $ 107,541 326,547$ $ 107,541 346,956 $ $ 107,541 368,641$ $ 107,541 391,681 $ $ 107,541 416,161 (-) Reserves 1.00%MARRIOTT$ - $ HOTEL 20,575 $DANIA 21,295 BEACH$ 21,995 FLORIDA$ 22,740 $ 23,268 $ 23,998 $ 24,751 $ 25,527 $ 26,327 (-) Management Fees 2.00% $ - $ 166,519 $ 166,519 $ 166,519 $ 84,188 $ 84,188 $ 84,188 $ 84,188 $ 84,188 $ 84,188 = CASH FLOW BEFORE TAXES $ 429,279 $ 642,969 $ 714,252 $ 783,528 $ 683,396 $ 735,724 $ 808,010 $ 882,535 $ 959,369 $ 1,038,582 (-) Reserves 1.00% $ - $ 19,181 $ 21,295 $ 21,995 $ 22,740 $ 23,268 $ 23,998 $ 24,751 $ 25,527 $ 26,327 =TAXABLE CASH FLOW INCOME BEFORE TAXES $ 494,179 $ 577,340Year 1$ 786,660 Year$ 2 855,936 $ Year 706,750 3 $ 759,078Year$ 4 831,363 $ 905,889 $ 982,723 $ 1,061,936 EXIT BEFORE TAX EXITNOI BEFORE TAX Sale/Key $ 2,199,489 NOI Sale/Key $ 2,199,489 (/)(/) CAP CAP Rate Rate 6.00% 6.00% (=)(=) Sale Sale Price Price $ 330,254 $ 36,658,150 $ 330,254 $ 36,658,150 (-)(-) Debt Debt Balance Balance $ (14,100,175) $ (14,892,440) (-) Commission 1.00% $ (366,582) (-)(-) Closing Commission Costs 0.75% 1.00% $ (274,936) $ (366,582) (=)(-) Sales Closing Proceeds Costs MARRIOTT0.75% HOTEL DANIA BEACH$ 21,916,458 FLORIDA $ (274,936) (=) Sales Proceeds $ 21,124,193 TAXABLE INCOME Year 1 Year 2 Year 3 Year 4 Investor Return Invest. Year 1 Year 2 Year 3 Year 4 | Exit Equity $ (8,701,367) $ - $ - $ - $ - Equity Release $ 9,611,885 Distributable Cashflow $ 429,279 $ 642,969 $ 714,252 $ 783,528 Sale Proceeds $ 8,058,616 Carried Interest

Net Cashflow (Before Tax & After Fees) $ (8,701,367) $ 429,279 $ 642,969 $ 714,252 $ 18,454,028

xIRR 19.40% mIRR MARRIOTT HOTEL15.40% DANIA BEACH FLORIDA Multiple 2.33x TAXABLE INCOME Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 RATIOS Debt Coverage Ratio 1.35 1.69 1.75 1.80 1.56 1.59 1.64 1.69 1.75 1.80 CAP Rate 6.6% 8.3% 8.6% 8.8% 9.1% 9.4% 9.7% 10.0% 10.3% 10.6% Cash on Cash (yield) 4.9% 7.4% 8.2% 9.0% 12.7% 13.7% 14.9% 13.9% 14.9% 15.9% Total Cash on Cash (Yield Incl. Deb Amort.) 8.3% 10.9% 11.9% 13.0% 18.4% 19.8% 21.3% 20.7% 22.2% 23.7%

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Confidential 11/1/2019 Page 1 PROJECT TIMELINE Construction FF&E OPENING STABILIZATION SALE/REFI Start Construction drawings & permitting Construction Start up YR 1

Partnership closing

OCT. JUNE NOV. JAN. JUNE 2019 2020 2021 2022 2024

Photo is illustrative of proposed development 11 WWW.CREFLORIDAPARTNERS.COM SITE PLAN SITE PLAN TYPICAL FLOOR PLAN

Photo is illustrative of proposed development 12 WWW.CREFLORIDAPARTNERS.COM ROOM FLOOR PLANS QUEEN ONE BEDROOM

KING TWO BEDROOMS

UNITY TYPE NO. UNITS % OF TOTAL SIZE | WEIGHTED AVG. STUDIO 90% 33,855 305 SF ONE BEDROOM 3% 1,796 449 SF TWO BEDROOM 7% 4,077 453 SF TOTAL/AVG. 100% 39,728 320 SF

13 WWW.CREFLORIDAPARTNERS.COM RENDERINGS

14 WWW.CREFLORIDAPARTNERS.COM LOCATIONS, BROWARD COUNTY

G F

C

A E B

D

LEGEND A. Fort Lauderdale Airport - ± 1.8 Miles C. Port Everglades Cruise Ship Terminals - ± 3.9 Miles E. Seminole Hard Rock Casino - ± 5 Miles 100 Terminal Dr, Fort Lauderdale, FL 33315 1800 SE 20th Street, Fort Lauderdale, FL 33316 1 Seminole Way, Hollywood, FL 33314

B. Dania Pointe Shops, Restaurant and D. Hollywood Beach Boardwalk - ± 4.3 Miles F. Fort Lauderdale Beach - ± 6.5 Miles Entertainment - ± 1.2 Miles 1100 N Broadwalk, Hollywood, FL 33019 1005 Seabreeze Blvd, Fort Lauderdale, FL 33316 139 S Compass Way, Dania Beach, FL 33004 G. Sawgrass Outlet Mall - ± 16.5 Miles 2604 Cir, Sunrise, FL 33323

15 WWW.CREFLORIDAPARTNERS.COM FORT LAUDERDALE-HOLLYWOOD INTERNATIONAL AIRPORT (FLL)

Fort Lauderdale–Hollywood International Airport (FLL) is in Broward County, Florida, The airport is off , U.S. Route 1, , and Florida State Road 5 surrounded by the cities of Fort Lauderdale, Hollywood and Dania Beach,three miles southwest of downtown Fort Lauderdale and just 21 miles North of . The airport is near the cruise line terminals at Port Everglades. With over 700 daily flights to 135 domestic and international destinations, FLL has become an intercontinental gateway since the late 1990s.

The airport currently is in the middle of $3.2 billion in improvements that has added gates, xtended a runway to accommodate wide-body international flights, added new parking, stores and shops, and which will internally connect all the terminals so travelers will no longer have to go outside to get from one terminal to another.

The current improvements were designed to keep pace with growth that has seen annual airport traffic increase from 23.6 million to 35.9 million passengers since 2013. The new master plan, expected to be completed in 2019, lays out a plan to handle growth that is expected to add another 20 million passengers annually by 2035 — roughly 52 million travelers a year.

By Larry Barszewski, South Florida Sun Sentinel

About 1.8 Miles to the Fort Lauderdale-Hollywood International Airport

16 WWW.CREFLORIDAPARTNERS.COM LOCATIONS, MIAMI-DADE COUNTY

C

B A

LEGEND

A. Downtown Miami - ± 23 Miles B. Mall, - ± 25 Miles C. Hardrock Stadium - ± 35 Miles 901 S Miami Ave, Miami, FL 33130 1120 Lincoln Rd Mall, Miami Beach, FL 33139 347 Don Shula Dr, Miami Gardens, FL 33056

17 WWW.CREFLORIDAPARTNERS.COM AREA DEMOGRAPHICS

The hotel site is located just ½ Demographicmile south of Market Fort Lauderdale’s Comparison Report international airport on 158 North Federal Hwy, Dania3 mile radius Beach Florida. Fort Lauderdale is a city in Dania Beach Hotel the U.S. state of Florida, 28 miles (45 km) north of Miami. It is the158 county N Federal seat Hwy, of Dania, Broward FL 33004 County, and a principal city of the . Type: Land 3 Mile DEMOGRAPHICCounty: Broward MARKET COMPARISON - COSTAR REPORT County Population Growth Household Growth

2019 Med Household Inc 2019 Households by Household Income

2019 Median Age 2019 Population by Race

2019 Renter vs. Owner 2019 Employed vs. Unemployed

Type: Land 9/25/2019 Copyrighted report licensed to CRE Rauch, Robertson & Co. - 243074. 18 WWW.CREFLORIDAPARTNERS.COM Page 6 AREA DEMOGRAPHICS DEMOGRAPHIC SUMMARY - COSTAR REPORT Demographic Summary Report Dania Beach Hotel 158 N Federal Hwy, Dania, FL 33004 Building Type: Land Total Available: 0 SF Class: - % Leased: 0% RBA: - Rent/SF/Yr: - Typical Floor: -

Radius 1 Mile 3 Mile 5 Mile Population 2024 Projection 13,710 83,965 274,041 2019 Estimate 12,836 79,646 260,986 2010 Census 10,293 70,218 236,381 Growth 2019 - 2024 6.81% 5.42% 5.00% Growth 2010 - 2019 24.71% 13.43% 10.41% 2019 Population by Hispanic Origin 2,398 22,641 77,107 2019 Population 12,836 79,646 260,986 White 7,797 60.74% 58,105 72.95% 188,062 72.06% Black 4,571 35.61% 17,593 22.09% 59,705 22.88% Am. Indian & Alaskan 41 0.32% 393 0.49% 1,066 0.41% Asian 211 1.64% 1,840 2.31% 6,304 2.42% Hawaiian & Pacific Island 8 0.06% 125 0.16% 373 0.14% Other 208 1.62% 1,589 2.00% 5,476 2.10% U.S. Armed Forces 0 69 172

Households 2024 Projection 6,077 36,969 118,544 2019 Estimate 5,695 35,219 113,400 2010 Census 4,542 31,562 104,417 Growth 2019 - 2024 6.71% 4.97% 4.54% Growth 2010 - 2019 25.39% 11.59% 8.60% Owner Occupied 2,933 51.50% 17,320 49.18% 61,629 54.35% Renter Occupied 2,762 48.50% 17,899 50.82% 51,771 45.65%

2019 Households by HH Income 5,695 35,221 113,399 Income: <$25,000 1,909 33.52% 9,714 27.58% 27,433 24.19% Income: $25,000 - $50,000 1,537 26.99% 9,480 26.92% 28,139 24.81% Income: $50,000 - $75,000 931 16.35% 5,770 16.38% 19,750 17.42% Income: $75,000 - $100,000 546 9.59% 3,591 10.20% 12,107 10.68% Income: $100,000 - $125,000 324 5.69% 2,473 7.02% 8,018 7.07% Income: $125,000 - $150,000 132 2.32% 1,642 4.66% 4,906 4.33% Income: $150,000 - $200,000 252 4.42% 1,306 3.71% 4,911 4.33% Income: $200,000+ 64 1.12% 1,245 3.53% 8,135 7.17% 2019 Avg Household Income $54,297 $64,701 $76,457 2019 Med Household Income $42,485 $45,706 $51,363

9/25/2019 Copyrighted report licensed to CRE Rauch, Robertson & Co. - 243074. 19 WWW.CREFLORIDAPARTNERS.COM Page 8 AREA DEMOGRAPHICS DEMOGRAPHIC DETAIL - COSTAR REPORT Demographic Detail Report Dania Beach Hotel 158 N Federal Hwy, Dania, FL 33004 Radius 1 Mile 3 Mile 5 Mile 2019 Population by Occupation 11,735 75,606 248,814 Real Estate & Finance 491 4.18% 2,951 3.90% 11,130 4.47% Professional & Management 2,286 19.48% 19,281 25.50% 68,820 27.66% Public Administration 270 2.30% 1,786 2.36% 4,977 2.00% Education & Health 1,229 10.47% 7,287 9.64% 25,122 10.10% Services 1,175 10.01% 8,589 11.36% 28,216 11.34% Information 30 0.26% 673 0.89% 2,163 0.87% Sales 2,280 19.43% 11,596 15.34% 34,742 13.96% Transportation 205 1.75% 1,885 2.49% 5,710 2.29% Retail 1,044 8.90% 5,088 6.73% 15,939 6.41% Wholesale 210 1.79% 1,642 2.17% 4,749 1.91% Manufacturing 273 2.33% 2,172 2.87% 6,258 2.52% Production 829 7.06% 4,202 5.56% 12,064 4.85% Construction 395 3.37% 3,136 4.15% 12,076 4.85% Utilities 527 4.49% 2,878 3.81% 7,912 3.18% Agriculture & Mining 27 0.23% 101 0.13% 442 0.18% Farming, Fishing, Forestry 77 0.66% 121 0.16% 274 0.11% Other Services 387 3.30% 2,218 2.93% 8,220 3.30%

2019 Worker Travel Time to Job 6,254 39,573 127,685 <30 Minutes 3,191 51.02% 22,906 57.88% 74,373 58.25% 30-60 Minutes 2,529 40.44% 12,809 32.37% 42,032 32.92% 60+ Minutes 534 8.54% 3,858 9.75% 11,280 8.83%

2010 Households by HH Size 4,541 31,562 104,417 1-Person Households 1,659 36.53% 11,395 36.10% 37,517 35.93% 2-Person Households 1,577 34.73% 10,771 34.13% 35,277 33.78% 3-Person Households 586 12.90% 4,514 14.30% 14,457 13.85% 4-Person Households 417 9.18% 2,923 9.26% 9,843 9.43% 5-Person Households 164 3.61% 1,219 3.86% 4,371 4.19% 6-Person Households 75 1.65% 479 1.52% 1,770 1.70% 7 or more Person Households 63 1.39% 261 0.83% 1,182 1.13%

2019 Average Household Size 2.10 2.20 2.20

Households 2024 Projection 6,077 36,969 118,544 2019 Estimate 5,695 35,219 113,400 2010 Census 4,542 31,562 104,417 Growth 2019 - 2024 6.71% 4.97% 4.54% Growth 2010 - 2019 25.39% 11.59% 8.60%

9/25/2019 Copyrighted report licensed to CRE Rauch, Robertson & Co. - 243074. 20 WWW.CREFLORIDAPARTNERS.COM Page 4 AREA DEMOGRAPHICS DEMOGRAPHIC EMPLOYMENT - COSTAR REPORT Daytime Employment Report 3 Mile Radius Dania Beach Hotel 158 N Federal Hwy, Dania, FL 33004 Building Type: Land Total Available: 0 SF Class: - % Leased: 0% RBA: - Rent/SF/Yr: - Typical Floor: -

Business Employment by Type # of Businesses # Employees #Emp/Bus Total Businesses 5,807 59,470 10 Retail & Wholesale Trade 1,433 16,440 11

Hospitality & Food Service 374 6,334 17

Real Estate, Renting, Leasing 397 3,655 9

Finance & Insurance 275 2,383 9

Information 109 1,182 11

Scientific & Technology Services 736 4,691 6

Management of Companies 23 124 5

Health Care & Social Assistance 518 4,225 8

Educational Services 77 2,397 31

Public Administration & Sales 59 2,293 39

Arts, Entertainment, Recreation 152 1,293 9

Utilities & Waste Management 307 1,972 6

Construction 486 3,261 7

Manufacturing 313 6,018 19

Agriculture, Mining, Fishing 3 4 1

Other Services 545 3,198 6

9/25/2019 Copyrighted report licensed to CRE Rauch, Robertson & Co. - 243074. 21 WWW.CREFLORIDAPARTNERS.COM Page 1 AREA DEMOGRAPHICS TRAFFIC COUNT - COSTAR REPORT Traffic Count Report Dania Beach Hotel 158 N Federal Hwy, Dania, FL 33004 Building Type: Land Class: - RBA: - Typical Floor: - Total Available: 0 SF % Leased: 0% Rent/SF/Yr: -

Count Avg Daily Volume Miles from Street Cross Street Cross Str Dist Year Volume Type Subject Prop 1 N Federal Hwy NE 2nd St 0.04 N 2018 38,787 MPSI .03 2 E Dania Beach Blvd NE 1st Ave 0.02 E 2018 19,242 MPSI .23 3 N Federal Hwy Old Griffin Rd 0.07 S 2018 33,047 MPSI .32 4 Old Griffin Rd NW 6th Ave 0.02 W 2018 5,107 MPSI .32 5 S Federal Hwy SW 1st St 0.02 N 2018 40,449 MPSI .38 6 Stirling Rd SW 3rd Ave 0.02 W 2018 28,708 MPSI .51 7 N Federal Hwy Griffin Rd 0.03 NE 2018 5,043 MPSI .51 8 Perimeter Rd Apron Access Rd 0.35 NE 2018 8,834 MPSI .54 9 NW 10th St NW 4th Ave 0.17 E 2016 17,600 MPSI .57 10 NW 10th St NW 4th Ave 0.17 E 2018 15,928 MPSI .57

9/25/2019 Copyrighted report licensed to CRE Rauch, Robertson & Co. - 243074.

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22 WWW.CREFLORIDAPARTNERS.COM MARRIOT TOWN PLACE SUITES HOTEL | INVESTMENT OPPORTUNITY LOCALSTATISTICS AREA STATISTICS Local Area

OCCUPANCYOCCUPANCY – - ADRADR-REVPAR – REVPAR $180 94.0% $160 92.3% 92.0% $140 90.9% 91.0% 91.1% 90.6% 90.0% $120 $100 87.6% 88.0% $80 86.0% 85.4% $60 84.0% $40 $20 82.0% $- 80.0% 2012 2013 2014 2015 2016 2017 2018 ADR RevPar Occupancy Source: STR.com

SUPPLYSUPPLY VS. vs. DEMANDDEMAND $160 $250,000 $134 $138 $140 $126 $129 $200,000 $116 $120 $105 $97 $100 $150,000 $80 $100,000 $60 $40 $50,000 $20 $- $- 2012 2013 2014 2015 2016 2017 2018 Supply Demand RevPar SOURCE:Source: STR.com STR.COM

DEMOGRAPHICS 1523 WWW.CREFLORIDAPARTNERS.COM AREA DEMOGRAPHICS

FORT LAUDERDALE PORT EVERGLADES DANIA POINTE THE CASINO AT INT AIRPORT DANIA BEACH • 32 Million • 4 Million • 1.3 Billion in • Recently Passengers Passengers Investments Re-opened with Per Year Per Year $50 Million Dollars in Renovations

24 WWW.CREFLORIDAPARTNERS.COM ABOUT THE OPERATOR - MARRIOTT INTERNATIONAL A BRAND LEADER Marriott International is the world’s largest travel company, offering unmatched choice for guests and driving unrivaled value for owners. With our expansive portfolio of brands, dynamic sales and marketing platform, and a global scale that drives efficiencies, our owners benefit from a clear competitive advantage and opportunity to maximize each hotel investment.

WORLD’S LEADING PORTFOLIO OF HOTEL BRANDS Our 30 distinct brands deliver tremendous RevPAR premiums and range of development options globally. Differentiated by visionary design and signature programming and services, our powerful portfolio offers guests and owners the right brand in the right place worldwide.

LOYALTY - MARRIOTT BONVOY™ New Name. Fresh Look. Same Great Loyalty Program. Marriott’s three loyalty programs – Marriott Rewards®, The Ritz-Carlton Rewards® and SPG® – are now one powerful, unified program. Introducing Marriott Bonvoy, the world’s largest loyalty program, which allows our 133 million members to earn, book, and redeem across our vast https://hotel-development.marriott.com global portfolio.

POWERFUL ENGINES - SEIZE THE POWER OF MARRIOTT Each Marriott International-branded hotel is supported by a robust global distribution platform and an innovative sales and marketing network that delivers high-value guests through state-of-the-art technology, global negotiating power, and extensive shared services to ensure more return on investment for our owners.

PARTNERSHIPS - OWNER-FOCUSED APPROACH The most experienced team in the industry provides robust owner and franchisee benefits and services, from development through ongoing operations to help you achieve your business objectives. Our commitment to communication and transparency builds mutually beneficial long-term relationships, evidenced by the fact that the majority of our pipeline is owned by multi-unit partners. We succeed when you do.

25 WWW.CREFLORIDAPARTNERS.COM ABOUT THE DEVELOPMENT TEAM THE RESECOM GROUP Resecom Group (“PRINCIPAL”) is a holding company headquartered in Fortaleza, Brazil whose subsidiaries provide real estate development, construction, building materials and acquisition services. Through innovative and contemporary design of high quality affordable multi-family and single-family housing. Resecom has made homeownership a reality for over one hundred thousand customers. Since its inception more than 30 years ago, Resecom Construction has built over 25,500 homes throughout the northern states of Brazil. Today RESECOM GROUP conducts business in the states of Pará, Mato Grosso, Ceará and Rondônia and is expanding its reach every day. Its subsidiary, Lotecom has developed over 1,450 acres of home communities and sold 15,000 vacant lots. Another subsidiary, Resecom Mix, is a cement mixing that produces over 125,500 cubic yards of cement. In the U.S., the Resecom Development Group has holdings in New Jersey, New York and Florida with active residential and hotel development projects currently underway. Our focus has been in the contemporary design of high quality affordable housing, single and multi-family. This view reflects the satisfaction of more than 108,000 customers and over 25,000 homes developed and built by Resecom, not including over 2,000 commercial properties built by Lotecom. VISION MISSION VALUES • To be a benchmark of excellence in productivity, quality and profitability • To build futures through real estate ventures that bring people and cities together • Quality, Commitment, Honesty and Ethics, Outcome, Discipline, Innovation and Simplicity KEY METRICS More Thank 108,800 Developed Over Commercialized Over Customers Satisfied 62 Million Square Feet 2,200 Parcels Of Land Built Over 15 Million Built Over 25,000 6 Awards For High Quality Square Feet Of Residential And Customer Service And Commercial Projects Residential Units

HOUSES MULTIFAMILY HOTELS

26 WWW.CREFLORIDAPARTNERS.COM CRE FLORIDA PARTNERS CRE FLORIDA PARTNERS (“CRE”) is a Florida based full service commercial real estate firm with a rich heritage, uncompromising integrity, and business longevity dating back to 1967. Our associates and staff are the best in the business and the foundation of our success. We locate our offices within the MSA’s we serve and are never far from the clients we value and respect. CRE Florida Partners is an exceptional group of talented commercial real estate professionals primarily operating in five (5) Florida counties including Florida’s gold coast, and the space coast MSA’s representing about 7 million Florida residents. Offering a full–range of commercial real estate Dan Casey, CCIM services we maintain deep professional and social “roots” in the markets we serve and maintain a leading Senior Vice President - Investment Properties edge presence in all aspects of our expertise. Perhaps the biggest differentiator of CRE Florida Partners is 954.232.4763 the way we value our relationships with our clients, associates, staff, and vendors, many of whom we’ve [email protected] worked with for many decades. We know what it takes to get the job done and we rise to any challenges that stand in our way. The vision for CRE Florida Partners emerged in 2011 and the firm was founded in 2012 by two energetic veteran brokers who saw the need for a new kind of commercial real estate firm, different from any other. A firm with a broad vision to build a network of offices throughout Florida and a deep commitment to bring our experience and focus to each assignment for our clients. Coming from two of the most deeply rooted commercial real estate firms in Florida, Tom Robertson and Michael Rauch each bring unique strengths, values and perspectives to CRE. Mr. Rauch was most recently a Partner/Principal with NAI Rauch, Weaver, Norfleet, Kurtz, an established industry leader in Broward County since 1967. Mr. Robertson, a Sr. Vice President with Jones Lang LaSalle (NYSE:JLL) and the second largest commercial firm in the US, has over 20 years of experience in commercial real estate and was also a partner/principal with Coldwell Banker Commercial in Boca Raton. Joining forces, their shared vision for CRE emerged to form the basis for a firm founded on four fundamental principles; “Passion. Performance. Results. Integrity”. Ask our clients! We are pleased to offer our references. Michael Rauch Senior Managing Partner 954.242.2806 [email protected]

301 CRAWFORD BOULEVARD SUITE 200, BOCA RATON, FLORIDA 33432

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