sorrento villas miami beach fl 33141 · 3 villa italia hotel 354 washington ave miami beach, fl...
TRANSCRIPT
SORRENTO VILLAS 7510 Harding AveMiami Beach FL 33141
OFFERING MEMORANDUM
SORRENTO VILLASCONTENTS
Exclusively Marketed by:
01 Executive Summary Investment Summary 3
Location Summary 5
02 Property Description Property Features 6
Aerial Map 7
Property Images 8
03 Comps Comparables 9
Comparables Map 11
04 Room Rates Room Rate Summary 12
05 Financial Analysis Income & Expense Analysis 13
Multiyear Cash Flow Assumptions 14
Cash Flow Analysis 15
Disposition Sensitivity Analysis 17
06 Demographics Demographics 18
Demographic Charts 19
Advisor Profile 21
MARILINA APFELBAUM
(786)2873633
SORRENTO VILLAS Investment Summary | 03
OFFERING SUMMARY
ADDRESS 7510 Harding AveMiami Beach FL 33141
COUNTY Miami Dade
MARKET Miami Beach
SUBMARKET North Beach Town Center
BUILDING SF 8,349 SF
TOTAL ROOMS 21
LAND SF 11,000 SF
YEAR BUILT 1956
YEAR RENOVATED 2015
APN 02-3202-007-0790
OWNERSHIP TYPE Fee Simple
FINANCIAL SUMMARY
OFFERING PRICE5000000 $4,550,000
PRICE PER KEY $216,667
PRICE PSF $544.98
OCCUPANCY 80.00 %
NOI (CURRENT) $446,567
CAP RATE (CURRENT) 9.81 %
CAP RATE (Today's Market) 15.30 %
ADR (CURRENT) $103
ADR (Today's Market) $122
REV PAR (CURRENT) $103
REV PAR (Today's Market) $122
DEMOGRAPHICS 1 MILE 3 MILE 5 MILE
2019 Population 25,479 74,815 207,546
2019 Median HH Income $41,966 $58,464 $51,038
2019 Average HH Income $69,372 $98,882 $85,649
The Deco Group is pleased to presents the 21-room SorrentoVillas Hotel.
The hotel is located in Miami Beach, Florida, two blocks west ofNorth Beach and situated a few blocks away from the future re-development of North Beach Town Center.
The Sorrento Villas is currently operating below competitive setADR and Occupancy.
The Hotel will be offered unencumbered by management,allowing a new operator to employ more aggressive sales,marketing, and revenue management techniques.
Location of zoning change is between Indian Creek Drive, DickensAvenue, 72nd Street, Collins Avenue, and 69th Street.
• Developer plans to build two 220-foot-tall buildings at 71stStreet and Abbot Avenue that will be geared toward recentcollege graduates.
• The zoning also allowed developers to build small hotel rooms
and apartment units in order to encourage market-rate
affordable units.
SORRENTO VILLAS Investment Summary |04
SORRENTO VILLAS Location Summary | 05
Location Summary Regional Map
Locator Map
SORRENTO VILLAS Property Features |06
PROPERTY FEATURES
TOTAL ROOMS 21
BUILDING SF 8,349
LAND SF 11,000
YEAR BUILT 1956
YEAR RENOVATED 2015
# OF PARCELS 1
ZONING TYPE 3900 MULTI-FAMILY - 38-62 U/A
BUILDING CLASS B
LOCATION CLASS A
NUMBER OF STORIES 2
NUMBER OF BUILDINGS 1
LOT DIMENSION 100.000 X 110
NUMBER OF PARKING SPACES 4
MECHANICAL
HVAC Split
CONSTRUCTION
EXTERIOR CBS
PARKING SURFACE ASPHALT
ROOF FLAT
WINDOWS IMPACT
AMENITIES
ICE/VENDING MACHINES YES
WIFI YES
SORRENTO VILLAS Aerial Map | 07
SORRENTO VILLAS Property Images | 08
SORRENTO VILLAS Comparables |09
1
Sogno Di Mare8118 HardingMiami Beach, FL 33141
# OF KEYS 12
YEAR BUILT 1946
SALE PRICE $4,600,000
SALE PSF $334.55
PRICE/KEY $383,333
CLOSING DATE 5/13/2019
BUILDING SF 13,750
DISTANCE 0.6 miles
Price/Key $216,667 - $383,333
LOW HIGH
2
Hotel Ipala1221 Collins AveMiami Beach, FL 33139
# OF KEYS 17
YEAR BUILT 1931
SALE PRICE $4,500,000
SALE PSF $534.82
PRICE/KEY $264,706
CLOSING DATE 10/19/2016
BUILDING SF 8,414
DISTANCE 5.9 miles
Price/Key $216,667 - $383,333
LOW HIGH
SORRENTO VILLAS Comparables | 10
3
Villa Italia Hotel354 Washington AveMiami Beach, FL 33139
# OF KEYS 14
YEAR BUILT 1926
SALE PRICE $5,150,000
SALE PSF $784.34
PRICE/KEY $367,857
CLOSING DATE 5/30/2017
BUILDING SF 6,566
DISTANCE 7.2 miles
Price/Key $216,667 - $383,333
LOW HIGH
Notes Built on 1926 & Renovated 2015
S
SORRENTO VILLAS7510 Harding AveMiami Beach, FL 33141
# OF KEYS 21
YEAR BUILT 1956
SALE PRICE $4,550,000
CAP RATE 9.81 %
ADR $103
REV PAR $103
OCCUPANCY 80.00 %
BUILDING SF 8,349
Cap Rate Range 9.81 % - 9.81 %
LOW HIGH
Price/Key $216,667 - $383,333
LOW HIGH
ADR $103 - $103
LOW HIGH
SORRENTO VILLAS Comparables Map | 11
# Property Name Address City
S SORRENTO VILLAS 7510 Harding Ave Miami Beach
1 Sogno Di Mare 8118 Harding Miami Beach
2 Hotel Ipala 1221 Collins Ave Miami Beach
3 Villa Italia Hotel 354 Washington Ave Miami Beach
SORRENTO VILLAS Room Rate Summary | 12
Number OfUnits
Units SF Room Type In-Season Price Off-Season Price Notes
9 700 Big Studio with Kitchen $120 $100
8 300 Studio with fridge andmicro on closet
$100 $80
4 1200 Giant one Bedroom $150 $120
SORRENTO VILLAS Income & Expense Analysis | 13
INCOME CURRENT TODAY'SMARKET
Gross Room Revenue $790,800 $938,050
Restaurant Income $20,000
Parking $6,000
Other Income $12,000
Gross Potential Income $790,800 $976,050
Less: General Vacancy $158,160 $93,805
Effective Gross Income $632,640 $882,245
Less: Expenses $186,073 $186,073
Net Operating Income $446,567 $696,172
EXPENSES CURRENT TODAY'SMARKET
Real Estate Taxes $33,207 $33,207
Insurance $22,500 $22,500
Salaries $92,506 $92,506
Repairs & Maintenance $8,000 $8,000
Water / Sewer $11,000 $11,000
Landscaping $1,560 $1,560
Utilities $17,300 $17,300
Total Operating Expense $186,073 $186,073
Expense / SF $22.28 $22.28
% of EGI 29.41 % 21.09 %
REVENUE ALLOCATION
CURRENT
DISTRIBUTION OF EXPENSES
CURRENT
SORRENTO VILLAS Multiyear Cash Flow Assumptions | 14
GLOBAL
Offering Price5000000 $4,550,000
Analysis Period 10 year(s)
SORRENTO VILLAS Cash Flow Analysis | 15
CASH FLOW
Calendar Year CURRENT Today'sMarket
Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Gross Potential RevenueGross Room Revenue $790,800 $938,050 $966,192 $995,177 $1,025,033 $1,055,784 $1,087,457 $1,120,081 $1,153,683 $1,188,294
Restaurant Income $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Parking $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
Other Income $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000
Gross Potential Income $790,800 $976,050 $1,004,192 $1,033,177 $1,063,033 $1,093,784 $1,125,457 $1,158,081 $1,191,683 $1,226,294
General Vacancy $158,160 $93,805 $96,619 $99,518 $102,503 $105,578 $108,746 $112,008 $115,368 $118,829
Effective Gross Income $632,640 $882,245 $907,572 $933,660 $960,529 $988,205 $1,016,711 $1,046,073 $1,076,315 $1,107,464
Operating ExpensesReal Estate Taxes $33,207 $33,207 $33,207 $33,207 $33,207 $33,207 $33,207 $33,207 $33,207 $33,207
Insurance $22,500 $22,500 $22,500 $22,500 $22,500 $22,500 $22,500 $22,500 $22,500 $22,500
Salaries $92,506 $92,506 $92,506 $92,506 $92,506 $92,506 $92,506 $92,506 $92,506 $92,506
Repairs & Maintenance $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000
Water / Sewer $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000
Landscaping $1,560 $1,560 $1,560 $1,560 $1,560 $1,560 $1,560 $1,560 $1,560 $1,560
Utilities $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300
Total Operating Expense $186,073 $186,073 $186,073 $186,073 $186,073 $186,073 $186,073 $186,073 $186,073 $186,073
Net Operating Income $446,567 $696,172 $721,499 $747,587 $774,456 $802,132 $830,638 $860,000 $890,242 $921,391
Effective Gross Income vs Operating Expenses Cash Flow
SORRENTO VILLAS Cash Flow Analysis | 16
Calendar Year CURRENT Today'sMarket
Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Financial MetricsCash on Cash Return b/t 9.81 % 15.30 % 15.86 % 16.43 % 17.02 % 17.63 % 18.26 % 18.90 % 19.57 % 20.25 %
CAP Rate 9.81 % 15.30 % 15.86 % 16.43 % 17.02 % 17.63 % 18.26 % 18.90 % 19.57 % 20.25 %
Operating Expense Ratio 29.41 % 21.09 % 20.50 % 19.92 % 19.37 % 18.82 % 18.30 % 17.78 % 17.28 % 16.80 %
Gross Multiplier (GRM) 5.75 4.66 4.53 4.40 4.28 4.16 4.04 3.93 3.82 3.71
Breakeven Ratio 29.41 % 21.09 % 20.50 % 19.93 % 19.37 % 18.83 % 18.30 % 17.79 % 17.29 % 16.80 %
Price / SF $544.98 $544.98 $544.98 $544.98 $544.98 $544.98 $544.98 $544.98 $544.98 $544.98
Income / SF $75.77 $105.67 $108.70 $111.82 $115.04 $118.36 $121.77 $125.29 $128.91 $132.64
Expense / SF $22.28 $22.28 $22.28 $22.28 $22.28 $22.28 $22.28 $22.28 $22.28 $22.28
ADR $103.17 $122.38 $126.05 $129.83 $133.73 $137.74 $141.87 $146.13 $150.51 $155.03
Rev Par $103.17 $122.38 $126.05 $129.83 $133.73 $137.74 $141.87 $146.13 $150.51 $155.03
SORRENTO VILLAS Disposition Sensitivity Analysis | 17
5 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES
PRICESALES PRICE/KEY PROCEEDS AFTER
LOAN PAYOFFIRR
0.25% $309,782,522 $37,104 $309,782,522 136.93%
0.50% $154,891,261 $18,552 $154,891,261 107.45%
0.75% $103,260,841 $12,368 $103,260,841 92.14%
1.00% $77,445,631 $9,276 $77,445,631 82.09%
1.25% $61,956,504 $7,421 $61,956,504 74.74%
1.50% $51,630,420 $6,184 $51,630,420 69.00%
1.75% $44,254,646 $5,301 $44,254,646 64.35%
2.00% $38,722,815 $4,638 $38,722,815 60.45%
2.25% $34,420,280 $4,123 $34,420,280 57.12%
10 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES
PRICESALES PRICE/KEY PROCEEDS AFTER
LOAN PAYOFFIRR
0.25% $368,556,523 $44,144 $368,556,523 59.30%
0.50% $184,278,262 $22,072 $184,278,262 49.62%
0.75% $122,852,174 $14,715 $122,852,174 44.39%
1.00% $92,139,131 $11,036 $92,139,131 40.88%
1.25% $73,711,305 $8,829 $73,711,305 38.28%
1.50% $61,426,087 $7,357 $61,426,087 36.23%
1.75% $52,650,932 $6,306 $52,650,932 34.56%
2.00% $46,069,565 $5,518 $46,069,565 33.15%
2.25% $40,950,725 $4,905 $40,950,725 31.94%
SORRENTO VILLAS Demographics | 18
POPULATION 1 MILE 3 MILE 5 MILE
2000 Population 26,546 66,218 188,156
2010 Population 24,514 66,359 188,927
2019 Population 25,479 74,815 207,546
2024 Population 26,338 78,807 218,313
2019 African American 1,232 3,476 53,630
2019 American Indian 106 177 693
2019 Asian 344 1,337 4,027
2019 Hispanic 18,989 46,845 98,955
2019 White 21,899 65,534 135,324
2019 Other Race 1,108 2,300 7,104
2019 Multiracial 778 1,960 6,678
2019-2024: Population: Growth Rate 3.35 % 5.25 % 5.10 %
2019 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
less than $15,000 2,004 4,287 12,865
$15,000-$24,999 1,926 3,707 9,978
$25,000-$34,999 1,400 2,787 7,962
$35,000-$49,999 1,672 4,271 11,996
$50,000-$74,999 2,212 5,904 13,732
$75,000-$99,999 1,099 3,670 8,576
$100,000-$149,999 1,010 4,293 9,824
$150,000-$199,999 334 1,921 4,232
$200,000 or greater 816 4,310 8,086
Median HH Income $41,966 $58,464 $51,038
Average HH Income $69,372 $98,882 $85,649
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2000 Total Housing 14,815 41,011 98,210
2010 Total Households 12,093 31,681 80,467
2019 Total Households 12,473 35,149 87,251
2024 Total Households 12,845 36,843 91,400
2019 Average Household Size 2.04 2.12 2.33
2000 Owner Occupied Housing 4,142 14,409 37,100
2000 Renter Occupied Housing 8,153 16,846 42,230
2019 Owner Occupied Housing 3,753 15,543 35,763
2019 Renter Occupied Housing 8,720 19,606 51,488
2019 Vacant Housing 3,732 15,117 28,409
2019 Total Housing 16,205 50,266 115,660
2024 Owner Occupied Housing 3,965 16,646 38,095
2024 Renter Occupied Housing 8,879 20,197 53,305
2024 Vacant Housing 3,849 15,648 29,343
2024 Total Housing 16,694 52,491 120,743
2019-2024: Households: Growth Rate 2.95 % 4.75 % 4.65 %
Source: esri
SORRENTO VILLAS Demographic Charts | 19
1 Mile Radius 3 Mile Radius 5 Mile Radius
2019 Household Income
1 Mile Radius 3 Mile Radius 5 Mile Radius
2019 Population by Race
SORRENTO VILLAS Demographic Charts | 20
2019 Household Occupancy - 1 Mile Radius
Average Income Median Income
2019 Household Income Average and Median
Deco Group Commercial is a vertically integrated Real Estate Brokerage team within the Tri-County
area with its main focus in Miami Dade County. With over 50 years in combined experience, The
Deco Group is committed to providing its clients with professional expertise during all aspects of real
estate transactions. Whether it is during the acquisition, financing, repositioning or disposition, the
Deco Group is always there to assist its clients every step of the way.
The Deco Group provides a boutique friendly experience with corporate knowledge and
resources, with an emphasis on long term client relations. We offer a service specifically tailored to
the need of our investors in all areas of commercial real estate. Each property acquired by our
clients is carefully selected and thoroughly studied.
SORRENTO VILLAS Advisor Profile | 21
Mindy Kurkin
SORRENTO VILLAS
Exclusively Marketed by:
Marilina ApfelbaumLicensed Real Estate Associate
(786) [email protected]