20 units 8260 byron avenue miami beach, fl 33141 · it is intended to be reviewed only by the party...

20 Units | 8260 Byron Avenue | Miami Beach, FL 33141

NON-ENDORSEMENT & D ISCLA IMER NOT ICE

CONF IDENT IAL ITY & D ISCLA IMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap Real Estate Investment Services of Florida, Inc. (“Marcus & Millichap”) and

should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary

level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or

expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State

and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this

Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these

matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Activity ID Y0240200.

NON-ENDORSEMENT NOT ICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or

sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee

information about this listing to prospective customers.

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PLEASE CONSULT YOUR MARCUS & M ILL ICHAP AGENT FOR MORE DETA ILS

FORT LAUDERDALE OFFICECypress Financial Center | 5900 North Andrews Avenue | Fort Lauderdale, Florida 33309

TABLE OF CONTENTS

PROPERTY ANALYSIS

Property Details & Assessments 7

Investment Highlights 8

Investment Overview 9

Amenities 10

List of Renovations and Replacements 12

Area Map 14

Neighborhood Map 15

Location Highlights 16

Nearby Points of Interest 17

RENT COMPARABLES

Rent Comparables 19

SALES COMPARABLES

Sales Comparables 31

FINANCIAL ANALYSIS

Rent Roll Summary 42

Operating Statement 43

Pricing Detail 44

MARKET OVERVIEW

Demographics 46

Miami-Dade County Market Overview 48

OFFERINg MEMORANduM

20 units

8260 Byron Avenue

Miami Beach, FL 33141

Exclusively Listed By:

FELIPE J. ECHARTESenior Vice President Investments

Fort Lauderdale

(954) 245-3444

[email protected]

License: FL: SL696115

EVAN P. KRISTOLExecutive Managing Director Investments

Fort Lauderdale

(954) 245-3459

[email protected]

License: FL SL640466

PROPERTY ANALYSIS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap. 7

PROPERTY DETAILS & ASSESSMENTS OCEAN BAY HOUSE

THE OFFERINg

Property Name OCEAN BAY HOUSE

Address 8260 Byron Avenue, Miami Beach, FL 33141

Assessor’s Parcel Number 02-3202-010-0380

Price $3,950,000

SITE dESCRIPTION

Number of Units 20

Number of Buildings 1

Number of Stories 2

Year Built/Renovated 1946/2017

Net Rentable Square Feet 8,830 SF

Average Unit Size 442 SF

Zoning RM-1

Lot Size 0.21 Acres

Density (Units/Acre) 95 Units per Acre

Landscaping Mature

Topography Level

uTILITIES

Water & Sewer City of Miami Beach - Paid by Owner

Electricity FPL - Paid by Owner

CONSTRuCTION

Foundation Pier Wall

Framing Concrete Block

Exterior Painted Concrete Stucco

Roof Flat Built-Up

Stairs Concrete

MECHANICAL

HVAC Individual Wall-Unit Air-Conditioning

Fire and Safety Fire Alarms and Smoke Detectors

8 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Activity ID Y0240200. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2018 Marcus & Millichap.

INVESTMENT HIGHLIGHTS OCEAN BAY HOUSE

t Completely Renovated Building Occupied in 2017

t Rare Waterfront Rental Building

t Four Units Licensed for Hotel Suites

t Gated and Secured Building

t Stabilized Income in Place with Upside

t Very Low Operating Costs Due to Renovations


INVESTMENT OVERVIEW OCEAN BAY HOUSE

The Ocean Bay House which is in the North Beach

neighborhood of Miami Beach, Florida is a 20-unit,

waterfront apartment building. The building

underwent an extensive renovation and remodeling

in 2016 and was put back into

service in 2017. The property

has a mix of long term and

short-term rental units

which is rare in the Miami

Beach area. The property

has 15 large studios, four

studios that are licensed

for short terms rentals and

one, one-bedroom and

two-bathroom unit. The

landlord pays for water,

sewer, WiFi and trash

removal. The building was

developed in 1946 and completely renovated in

2016/2017.

The Ocean Bay House underwent extensive

renovations including replacing all plumbing and

sewer lines, upgrading all the electric, reconfiguring

floor plans and units, installing impact resistant

windows, structural work replacing floor joists

and beams as well as many other upgrades. The

property is also located on the Tatum Waterway

which allows property owners to build private

dockage. This property is approved for five boat

docks that can be sold to individuals or rented. The

property also has a license for four hotel rooms

which allows the owner to lease four of the 20 units

on a short-term basis which is very rare in this area.

The property is in the highly sought-after North

Beach area of Miami Beach. This area is in the

process of major regentrification with the recent

addition of the Miami Beach Town Center District that

spans from 69th Street

to 72nd Street and

from Collins Avenue to

Dickens Avenue. This

area allows for much

denser development

than the surrounding

area which has attracted

major investment in the

immediate area and

will greatly enhance the

neighborhood. There

are several other major

developments in the

area including Terra Groups Eighty-Seven Park as

well as the Ocean Terrace property which has been

in planning and approval stages for over a year. The

property is also less than a mile south of Surfside

and the Bal Harbour Shops.


AMENITIES OCEAN BAY HOUSE

unit Amenities Include:

t Completely Renovated Kitchens and Bathrooms

t Wi-Fi Connections

t Large Impact Resistant Windows

t Stainless Steel Appliances and Wood Cabinets

t Wood Floors and High-End Fixtures

t Large Closets and Ample Storage


AMENITIES OCEAN BAY HOUSE

Common Area Amenities Include:

t Waterfront Community with Potential for Boat Dockage

t Secured Building with Tranquil Setting

t Laundry Facilities On-Site

t Wi-Fi Connections

t Sitting Areas with Fire Pit


OCEAN BAY HOUSE LIST OF RENOVATIONS AND REPLACEMENTS OCEAN BAY HOUSE

Exterior

t New Impact Resistant Windows

t Replaced All Exterior Doors with Hurricane Rated Doors

t Replaced Entire Electric System

t Replaced All Water Lines with Copper

t Replaced All Sewer Lines with PVC

t Replaced Entire Roofing System

t Replaced All Railings with Modern Up-to-Code Railings

t Replaced All Exterior Lighting with Recessed Lighting in Walkways

t Added Attractive Sconces to Entrance of Building

t Installed New Landscaping and Created New Exterior Design

t New Concrete Stucco on Entire Building

t Resurfaced and Restored All Exterior Walkways

t Painted Exterior of Building

t Created Seating Areas

t Added Barbeque Area in Rear of Property

t Added Modem Gates and Secured Entrance Gates

t Added Fire Alarm System

t Updated Laundry Room

t Added New Exterior Signage

t Replaced All Soffits

t Extensive Structural Work

t 40-Year Recertification Completed in 2018


OCEAN BAY HOUSE LIST OF RENOVATIONS AND REPLACEMENTS OCEAN BAY HOUSE

Interior

t Installed Custom New High-Quality Kitchens

t Installed All New Stainless Appliances Including Microwaves

t Installed Stainless Hood Vents in Kitchens

t Completely Replaced Entire Bathrooms

t New Subway Tile in Bathrooms

t New Pedestal Sinks, Bathtubs and Toilets in Bathrooms

t New Low-Profile A/C Units and Mini Split Systems

t New Interior Doors and Hardware

t New Flooring Throughout

t Created Large Closets and Storage Areas

t Installed Recessed Lighting in Units

AR

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LOCATION HIGHLIGHTS OCEAN BAY HOUSE


t Waterfront Location in North Beach

t Highly Sought-After North Beach Location

t Several Blocks From the Beach

t Many New Developments in the Immediate Location

t Close to New City Center District, Surfside and Bal Harbour Shoppes

t Many Shops, Restaurants and Bars in the Immediate Area


NEARBY POINTS OF INTEREST OCEAN BAY HOUSE

1

2

3

4

5

78

6

9

10

« OCEAN BAY HOUSE

1. Biscayne Elementary School

2. Mesivta Yeshiva Elementary

3. Publix Super Market at North Shore

4. Bal Harbour Shops

5. North Shore Branch Library

6. Miami Beach Tennis Academy

7. Miami Beach Parking Lot

8. North Shore Open Space Park

9. Indian Creek Country Club

10. Normandy Shores Golf Course

RENT COMPARABLES

RENT COMPARABLES OCEAN BAY HOUSE


12 3

4

5

7

8

6

9

« OCEAN BAY HOUSE

1. 8350 Byron Avenue


3. 330 84th Street

4. 8227 Crespi Boulevard




8. 540 74th Street

9. 610 74th Street



100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 93.8%

Average: 100.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

8350 ByronAvenue

8330-8340Byron Avenue

330 84th Street 8227-8235Crespi

Boulevard

8035 CrespiBoulevard


7510 ByronAvenue

540 74th Street 610 74th Street Ocean BayHouseOcean Bay House Market Survey

YEAR # OF %PROPERTY NAME BUILT UNITS OCCUPIED PER UNIT PER SQ. FT.8350 Byron Avenue 1951 8 100.0% $1,800 $2.098330-8340 Byron Avenue 1951 16 100.0% $1,613 $1.88330 84th Street 1955 24 100.0% $1,417 $1.858227-8235 Crespi Boulevard 1953 8 100.0% $1,700 $1.948035 Crespi Boulevard 1959 14 100.0% $1,714 $2.047805 Crespi Boulevard 1956 12 100.0% $1,517 $1.697510 Byron Avenue 1949 8 100.0% $1,413 $2.22540 74th Street 1951 16 100.0% $1,388 $2.29610 74th Street 1953 16 100.0% $1,319 $2.73Ocean Bay House 1946 20 93.8% $1,548 $3.51

AVERAGE 1953 14 100.0% $1,542 $2.08

RANKED BY % OCCUPIEDNET MARKET RENT

OCCuPANCY COMPARISON



$1,800 $1,714 $1,700 $1,613 $1,548 $1,517 $1,417 $1,413 $1,388 $1,319

Average: $1,542

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

$1,800

$1,900

8350 ByronAvenue


8227-8235Crespi

Boulevard

8330-8340Byron Avenue

Ocean BayHouse


330 84th Street 7510 ByronAvenue

540 74th Street 610 74th StreetOcean Bay House Market Survey

YEAR # OF %PROPERTY NAME BUILT UNITS OCCUPIED PER UNIT PER SQ. FT.8350 Byron Avenue 1951 8 100.0% $1,800 $2.098035 Crespi Boulevard 1959 14 100.0% $1,714 $2.048227-8235 Crespi Boulevard 1953 8 100.0% $1,700 $1.948330-8340 Byron Avenue 1951 16 100.0% $1,613 $1.88Ocean Bay House 1946 20 93.8% $1,548 $3.517805 Crespi Boulevard 1956 12 100.0% $1,517 $1.69330 84th Street 1955 24 100.0% $1,417 $1.857510 Byron Avenue 1949 8 100.0% $1,413 $2.22540 74th Street 1951 16 100.0% $1,388 $2.29610 74th Street 1953 16 100.0% $1,319 $2.73

AVERAGE 1953 14 100.0% $1,542 $2.08

NET MARKET RENTRANKED BY NET MARKET RENT / UNIT

NET MARKET RENT COMPARISON



$1,546 $1,225 $1,200 $1,150 $1,000

Average: $1,144

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

Ocean Bay House 610 74th Street 540 74th Street 330 84th Street 7805 Crespi BoulevardOcean Bay House Market Survey

YEAR # OF AVERAGEPROPERTY NAME BUILT UNITS UNIT SIZE NET MARKET PER SQ. FT.Ocean Bay House 1946 19 432 $1,546 $3.58610 74th Street 1953 12 420 $1,225 $2.92540 74th Street 1951 6 450 $1,200 $2.67330 84th Street 1955 8 498 $1,150 $2.317805 Crespi Boulevard 1956 2 750 $1,000 $1.33

AVERAGE 1954 7 530 $1,144 $2.31

STUDIO RENT COMPARABLESSTUDIO - AVERAGE RENT

STudIO COMPARISON



$1,600 $1,600 $1,600 $1,500 $1,500 $1,500 $1,425 $1,413 $1,400 $1,200

Average: $1,460

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

Ocean BayHouse

8350 ByronAvenue

610 74th Street 8227-8235Crespi

Boulevard


540 74th Street 8330-8340Byron Avenue

7510 ByronAvenue

330 84th Street 7805 CrespiBoulevardOcean Bay House Market Survey

YEAR # OF AVERAGEPROPERTY NAME BUILT UNITS UNIT SIZE NET MARKET PER SQ. FT.Ocean Bay House 1946 1 630 $1,600 $2.548350 Byron Avenue 1951 4 800 $1,600 $2.00610 74th Street 1953 4 670 $1,600 $2.398227-8235 Crespi Boulevard 1953 4 700 $1,500 $2.148035 Crespi Boulevard 1959 8 720 $1,500 $2.08540 74th Street 1951 10 700 $1,500 $2.148330-8340 Byron Avenue 1951 8 715 $1,425 $1.997510 Byron Avenue 1949 8 635 $1,413 $2.22330 84th Street 1955 8 684 $1,400 $2.057805 Crespi Boulevard 1956 2 850 $1,200 $1.41

AVERAGE 1953 6 719 $1,460 $2.05

ONE BEDROOM RENT COMPARABLES1 BR - AVERAGE RENT

ONE BEdROOM COMPARISON



Ocean Bay House Market RentsAddress 8260 Byron Avenue

Miami Beach, FL 33141Date SurveyedNo. of Units 20Year Built 1946 Water/Sewer Paid by OwnerOccupancy 94% Trash Removal Paid by Owner

UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.Studio 15 75.0% 440 $1,350 $3.07Studio Short-Term 4 20.0% 400 $2,279 $5.701 Bed / 2 Bath 1 5.0% 630 $1,600 $2.54

TOTAL / AVERAGE 20 100.0% 442 $1,548 $3.51

COMMENTS

September 21, 2018

UNIT MIX AND RENTAL RATES

Amenities include waterfront views, recently renovated units, and individual wall-unit air-conditioning. The property operates 16 units as yearly rentals and four as short-term rentals.

8350 Byron Avenue Market RentsAddress 8350 Byron Avenue


UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.1 Bed / 1 Bath 4 50.0% 800 $1,600 $2.002 Bed / 2 Bath 4 50.0% 920 $2,000 $2.17

TOTAL / AVERAGE 8 100.0% 860 $1,800 $2.09

COMMENTS

September 21, 2018


Amenities include waterfront views, recently renovated units, and individual wall-unit air-conditioning.



8330-8340 Byron Avenue Market RentsAddress 8330-8340 Byron Avenue


UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.1 Bed / 1 Bath 8 50.0% 715 $1,400 - $1,450 $1.992 Bed / 2 Bath 8 50.0% 1,000 $1,800 $1.80

TOTAL / AVERAGE 16 100.0% 858 $1,613 $1.88

COMMENTS

September 21, 2018


Amenities include waterfront views, recently renovated units, and individual wall-unit air-conditioning.

330 84th Street Market RentsAddress 330 84th Street


UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.Studio 8 33.3% 498 $1,100 - $1,200 $2.311 Bed / 1 Bath 8 33.3% 684 $1,400 $2.052 Bed / 2 Bath 8 33.3% 1,114 $1,700 $1.53

TOTAL / AVERAGE 24 100.0% 765 $1,417 $1.85

COMMENTS


Amenities include individual wall-unit air-conditioning.

September 21, 2018



8227-8235 Crespi Boulevard Market RentsAddress 8227-8235 Crespi Boulevard


UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.1 Bed / 1 Bath 4 50.0% 700 $1,500 $2.142 Bed / 2 Bath 4 50.0% 1,050 $1,800 - $2,000 $1.81

TOTAL / AVERAGE 8 100.0% 875 $1,700 $1.94

COMMENTSAmenities include waterfront views, recently renovated units, and central air-conditioning.


September 21, 2018

8035 Crespi Boulevard Market RentsAddress 8035 Crespi Boulevard


UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.1 Bed / 1 Bath 8 57.1% 720 $1,500 $2.082 Bed / 1 Bath 6 42.9% 1,005 $2,000 $1.99

TOTAL / AVERAGE 14 100.0% 842 $1,714 $2.04

COMMENTSAmenities include a swimming pool, waterfront views, recently renovated units, and central air-conditioning.


September 21, 2018



7805 Crespi Boulevard Market RentsAddress 7805 Crespi Boulevard


UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.Studio 2 16.7% 750 $1,000 $1.331 Bed / 1 Bath 2 16.7% 850 $1,200 $1.412 Bed / 1 Bath 2 16.7% 900 $1,500 $1.672 Bed / 2 Bath 4 33.3% 900 $1,600 $1.783 Bed / 2 Bath 2 16.7% 1,100 $2,200 $2.00TOTAL / AVERAGE 12 100.0% 900 $1,517 $1.69

COMMENTSAmenities include waterfront views and individual wall-unit air-conditioning.


September 21, 2018

7510 Byron Avenue Market RentsAddress 7510 Byron Avenue


UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.1 Bed / 1 Bath 8 100.0% 635 $1,400 - $1,425 $2.22

TOTAL / AVERAGE 8 100.0% 635 $1,413 $2.22

COMMENTS

September 21, 2018


Amenities include recently renovated units and individual wall-unit air-conditioning.





UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.Studio 6 37.5% 450 $1,200 $2.671 Bed / 1 Bath 10 62.5% 700 $1,400 - $1,600 $2.14

TOTAL / AVERAGE 16 100.0% 606 $1,388 $2.29

COMMENTSAmenities include recently renovated units and individual wall-unit air-conditioning.

September 21, 2018




UNIT % OF UNIT NET MARKET RENT PERTYPE UNITS TOTAL SQ. FT. UNIT SQ. FT.Studio 12 75.0% 420 $1,200 - $1,250 $2.921 Bed / 1 Bath 4 25.0% 670 $1,500 - $1,700 $2.39

TOTAL / AVERAGE 16 100.0% 483 $1,319 $2.73

COMMENTS

September 21, 2018


Amenities include recently renovated units and individual wall-unit air-conditioning. One bedroom units asking $1,700 per month are fully furnished.

SALES COMPARABLES

1

SALES COMPARABLES OCEAN BAY HOUSE


3

4

5

6

78 « OCEAN BAY HOUSE

1. 690 Bay Drive

2. 1725 & 1795 Normandy Drive

3. 331 85th Street

4. 610 74th Street

5. 8201 Harding Avenue

6. 1910 Biarritz Drive

7. 8227-8235 Crespi Boulevard

8. Tatum Waterway Apartments

2



Sales Comparables | Charts | Printed to PDF on 3/27/2019 at 3:13 PM | Page 1 of 12

$459 $375 $323 $316 $314 $299 $299 $209

Average: , $324

$0$20$40$60$80

$100$120$140$160$180$200$220$240$260$280$300$320$340$360$380$400$420$440$460

8201 HardingAvenue

610 74th Street 1910-1920 BiarritzDrive

331 85th Street 1725 & 1795Normandy Drive

Tatum WaterwayApartments

8227-8235 CrespiBoulevard

960 Bay Drive


Sales Comparables | Tables | Printed to PDF on 3/27/2019 at 3:13 PM | Page 3 of 12

YEAR # OF CLOSE OFPROPERTY NAME BUILT UNITS SQ. FT. UNIT ESCROW

8201 Harding Avenue 1950 6 $459 $206,667 $1,240,000 May 2018

610 74th Street 1953 16 $375 $196,094 $3,137,500 May 2018

1910-1920 Biarritz Drive 1948 8 $323 $196,875 $1,575,000 May 2018

331 85th Street 1945 25 $316 $224,000 $5,600,000 June 2018

1725 & 1795 Normandy Drive 1949 8 $314 $262,500 $2,100,000 September 2018

Tatum Waterway Apartments 1951 16 $299 $256,250 $4,100,000 June 2017

8227-8235 Crespi Boulevard 1953 8 $299 $250,000 $2,000,000 January 2018

960 Bay Drive 1951 14 $209 $200,000 $2,800,000 February 2019

AVERAGE 1950 13 $324 $224,048 $2,819,063

PRICE PER

RANKED BY PRICE PER SQUARE FOOT

SALE PRICE


AVERAgE PRICE PER SQuARE FOOT




$262,500 $256,250 $250,000 $224,000 $206,667 $200,000 $196,875 $196,094

Average: , $224,048

$0$10,000$20,000$30,000$40,000$50,000$60,000$70,000$80,000$90,000

$100,000$110,000$120,000$130,000$140,000$150,000$160,000$170,000$180,000$190,000$200,000$210,000$220,000$230,000$240,000$250,000$260,000$270,000

1725 & 1795Normandy Drive

Tatum WaterwayApartments

8227-8235 CrespiBoulevard

331 85th Street 8201 HardingAvenue

960 Bay Drive 1910-1920 BiarritzDrive

610 74th Street



YEAR # OF CLOSE OFPROPERTY NAME BUILT UNITS SQ. FT. UNIT ESCROW

1725 & 1795 Normandy Drive 1949 8 $314 $262,500 $2,100,000 September 2018

Tatum Waterway Apartments 1951 16 $299 $256,250 $4,100,000 June 2017

8227-8235 Crespi Boulevard 1953 8 $299 $250,000 $2,000,000 January 2018

331 85th Street 1945 25 $316 $224,000 $5,600,000 June 2018

8201 Harding Avenue 1950 6 $459 $206,667 $1,240,000 May 2018

960 Bay Drive 1951 14 $209 $200,000 $2,800,000 February 2019

1910-1920 Biarritz Drive 1948 8 $323 $196,875 $1,575,000 May 2018

610 74th Street 1953 16 $375 $196,094 $3,137,500 May 2018

AVERAGE 1950 13 $324 $224,048 $2,819,063

PRICE PER

RANKED BY PRICE PER UNIT

SALE PRICE


AVERAgE PRICE PER uNIT



Sales Comparables | Profiles | Printed to PDF on 3/27/2019 at 3:13 PM | Page 5 of 12960 Bay Drive

960 Bay DriveMiami Beach, FL 33141

No. of Units 14 Units Unit TypeYear Built 1951 10 1 Bed / 1 BathLot Size 0.39 Acres 4 2 Bed / 1 BathSales Price $2,800,000Price/Unit $200,000Price/Square Foot $208.96Close of Escrow February 14, 2019

Comments

This was a private-party transaction. The property was vacant at time of sale and inneed of gut renovation.

Printed to PDF on 3/27/2019 at 3:13 PM | Page 5 of 12

Sales Comparables | Profiles | Printed to PDF on 3/27/2019 at 3:13 PM | Page 6 of 121725 & 1795 Normandy Drive

1725 Normandy DriveMiami Beach, FL 33141

No. of Units 8 Units Unit TypeYear Built 1949 4 1 Bed / 1 BathLot Size 0.15 Acres 4 2 Bed / 1 BathSales Price $2,100,000Price/Unit $262,500Price/Square Foot $313.62Close of Escrow September 20, 2018

Comments

This was a private-party transaction. The property was recently renovated.




Sales Comparables | Profiles | Printed to PDF on 3/27/2019 at 3:13 PM | Page 7 of 12331 85th Street

331 85th StreetMiami Beach, FL 33141

No. of Units 25 Units Unit TypeYear Built 1945 1 StudioLot Size 0.41 Acres 16 1 Bed / 1 BathSales Price $5,600,000 7 2 Bed / 2 BathPrice/Unit $224,000 1 2 Bed / 2.5 BathPrice/Square Foot $316.04Close of Escrow June 13, 2018

Comments



Sales Comparables | Profiles | Printed to PDF on 3/27/2019 at 3:13 PM | Page 8 of 12610 74th Street

610 74th StreetMiami Beach, FL 33141

No. of Units 16 Units Unit TypeYear Built 1953 12 StudioLot Size 0.02 Acres 4 1 Bed / 1 BathSales Price $3,137,500Price/Unit $196,094Price/Square Foot $375.12Close of Escrow May 24, 2018

Comments





Sales Comparables | Profiles | Printed to PDF on 3/27/2019 at 3:13 PM | Page 9 of 128201 Harding Avenue

8201 Harding AvenueMiami Beach, FL 33141

No. of Units 6 Units Unit TypeYear Built 1950 6 1 Bed / 1 BathLot Size 0.08 AcresSales Price $1,240,000Price/Unit $206,667Price/Square Foot $458.58Close of Escrow May 10, 2018

Comments



Sales Comparables | Profiles | Printed to PDF on 3/27/2019 at 3:13 PM | Page 10 of 121910-1920 Biarritz Drive

1910-1920 Biarritz DriveMiami Beach, FL 33141

No. of Units 8 Units Unit TypeYear Built 1948 8 1 Bed / 1 BathLot Size 0.31 AcresSales Price $1,575,000Price/Unit $196,875Price/Square Foot $323.28Close of Escrow May 8, 2018

Comments





Sales Comparables | Profiles | Printed to PDF on 3/27/2019 at 3:13 PM | Page 11 of 128227-8235 Crespi Boulevard

8227-8235 Crespi BoulevardMiami Beach, FL 33141

No. of Units 8 Units Unit TypeYear Built 1953 4 1 Bed / 1 BathLot Size 0.13 Acres 4 2 Bed / 2 BathSales Price $2,000,000Price/Unit $250,000Price/Square Foot $298.95Close of Escrow January 24, 2018

Comments

This was a private-party transaction. The property was recently renovated and iswaterfront.


Sales Comparables | Profiles | Printed to PDF on 3/27/2019 at 3:13 PM | Page 12 of 12Tatum Waterway Apartments

8330-8340 Byron AvenueMiami Beach, FL 33141

No. of Units 16 Units Unit TypeYear Built 1951 8 1 Bed / 1 BathLot Size 0.34 Acres 8 2 Bed / 2 BathSales Price $4,100,000Price/Unit $256,250Price/Square Foot $299.36Close of Escrow June 14, 2017

Comments

This was a private-party transaction. The property was recently renovated and iswaterfront.


FINANCIAL ANALYSIS


RENT ROLL SUMMARY OCEAN BAY HOUSE

S SCHEDULED POTENTIAL

UNIT TYPE# OF

UNITSAVG SQ FEET*

AVERAGE RENT

AVERAGE RENT / SF

MONTHLY INCOME

AVERAGE RENT

AVERAGE RENT / SF

MONTHLY INCOME

Studio 15 440 $1,283 $2.92 $19,250 $1,350 $3.07 $20,250

Studio - Short-Term 4 400 $1,853 $4.63 $7,412 $2,279 $5.70 $9,116

1 Bdr 2 Bath 1 630 $1,550 $2.46 $1,550 $1,600 $2.54 $1,600

Totals/Weighted Averages 20 442 $1,411 $3.20 $28,212 $1,548 $3.51 $30,966

Gross Annualized Rents $338,544 $371,592

$1,350 $2,279 $1,600

$67

$426

$50

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200

$2,400

$2,600

$2,800

$3,000

Studio Studio - Short-Term 1 Bdr 2 Bath

Average Pro Forma Rent Loss To Lease

Studio75%

Studio - Short-Term20%

1 Bdr 2 Bath5%

* Unit square footages are approximate values

Rent roll as of September, 2018

Unit Distribution Unit Rent


OPERATING STATEMENT OCEAN BAY HOUSE

INCOME STABILIZED PRO FORMA NOTES PER UNIT PER SF

Gross Potential Rent 338,544 371,592 18,580 42.08

Gross Scheduled Rent 338,544 371,592 18,580 42.08

Physical Vacancy (16,927) 5.0% (18,580) 5.0% (929) (2.10)

Total Vacancy ($16,927) 5.0% ($18,580) 5.0% ($929) ($2)

Economic Occupancy 95.00% 95.00%

Effective Rental Income 321,617 353,012 17,651 39.98

Other Income

Laundry Income 2,400 2,400 120 0.27

Total Other Income $2,400 $2,400 $120 $0.27

Effective Gross Income $324,017 $355,412 $17,771 $40.25

EXPENSES STABILIZED PRO FORMA NOTES PER UNIT PER SF

Real Estate Taxes 36,048 57,044 [1] 2,852 6.46

Insurance 20,244 20,244 1,012 2.29

Utilities - Electric 6,404 6,404 320 0.73

Utilities - Water and Sewer 12,656 12,656 633 1.43

Utilities - Gas 1,938 1,938 97 0.22

Trash Removal 4,632 4,632 232 0.52

Repairs & Maintenance 8,000 8,000 400 0.91

Landscaping 1,800 1,800 90 0.20

Telephone 350 350 18 0.04

Cable TV and Internet 5,520 5,520 276 0.63

Operating Reserves 5,000 5,000 250 0.57

Management Fee 16,201 5.0% 17,771 5.0% 889 2.01

Total Expenses $118,793 $141,359 $7,068 $16.01

Expenses as % of EGI 36.7% 39.8%

Net Operating Income $205,224 $214,053 $10,703 $24.24

Notes to Operating Statement

[1] Real estate taxes are reassessed based on 80 percent of list price, times the 2018 proposed millage rate (18.8042), minus 4 percent for early tax payment. 2017 real estate taxes were $22,551.65. Proposed 2018 real estate taxes are $36,048.01.


PRICING DETAIL OCEAN BAY HOUSE

SUMMARY

Price $3,950,000

Down Payment 100% $3,950,000

Number of Units 20

Price Per Unit $197,500

Price Per SqFt $447.34

Gross SqFt 8,830

Lot Size 0.21 Acres

Approx. Year Built/Renovated 1946/2017

Returns Stabilized Pro Forma

CAP Rate 5.20% 5.42%

GRM 11.67 10.63

OPERATING DATA

Income Stabilized Pro Forma

Gross Scheduled Rent $338,544 $371,592

Less: Vacancy/Deductions (GPR) 5.0% $16,927 5.0% $18,580

Total Effective Rental Income $321,617 $353,012

Other Income $2,400 $2,400

Effective Gross Income $324,017 $355,412

Less: Expenses 36.7% $118,793 39.8% $141,359

Net Operating Income $205,224 $214,053

Expenses Stabilized Pro Forma

Real Estate Taxes $36,048 $57,044

Insurance $20,244 $20,244

Utilities - Electric $6,404 $6,404

Utilities - Water and Sewer $12,656 $12,656

Utilities - Gas $1,938 $1,938

Trash Removal $4,632 $4,632

Repairs & Maintenance $8,000 $8,000

Landscaping $1,800 $1,800

Telephone $350 $350

Cable TV and Internet $5,520 $5,520

Operating Reserves $5,000 $5,000

Management Fee $16,201 $17,771

Total Expenses $118,793 $141,359

Expenses/Unit $5,940 $7,068

Expenses/SF $13.45 $16.01

# Of Units Unit Type SqFt/Unit* Stabilized Rents Market Rents

15 Studio 440 $1,283 $1,350

4 Studio - Short-Term 400 $1,853 $2,279

1 1 Bdr 2 Bath 630 $1,550 $1,600

* Unit square footages are approximate values

MARKET OVERVIEW

DEMOGRAPHICS OCEAN BAY HOUSE


Source: © 2017 Experian

Created on September 2018

POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection

Total Population 25,037 79,509 239,090

2017 Estimate


2010 Census


2000 Census


Daytime Population

2017 Estimate 16,890 56,542 217,105

HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection

Total Households 12,256 38,263 101,344

2017 Estimate


Average (Mean) Household Size 2.07 2.09 2.34

2010 Census


2000 Census


Growth 2015-2020 3.59% 5.52% 5.08%

HOUSING UNITS 1 Miles 3 Miles 5 Miles Occupied Units

2022 Projection 12,256 38,263 101,344

2017 Estimate 14,024 48,088 121,121

Owner Occupied 4,225 17,170 43,965

Renter Occupied 7,606 19,091 52,481

Vacant 2,193 11,827 24,675

Persons In Units

2017 Estimate Total Occupied Units 11,831 36,261 96,447

1 Person Units 40.22% 38.88% 35.31%

2 Person Units 32.74% 34.23% 31.02%

3 Person Units 13.64% 13.42% 14.59%

4 Person Units 8.77% 8.69% 10.01%

5 Person Units 3.25% 3.36% 5.02%

6+ Person Units 1.39% 1.43% 4.05%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate

$200,000 or More 5.60% 9.14% 6.70%

$150,000 - $199,000 3.55% 4.44% 3.98%

$100,000 - $149,000 7.35% 10.39% 9.19%

$75,000 - $99,999 8.20% 9.02% 8.99%

$50,000 - $74,999 13.96% 15.50% 15.05%

$35,000 - $49,999 13.67% 12.49% 13.44%

$25,000 - $34,999 12.13% 10.32% 10.62%

$15,000 - $24,999 16.71% 13.86% 14.25%

Under $15,000 18.82% 14.87% 17.77%

Average Household Income $68,421 $89,295 $76,859

Median Household Income $37,349 $47,910 $42,480

Per Capita Income $33,014 $42,621 $31,994

POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age

2017 Estimate Total Population 24,532 76,006 233,516

Under 20 17.18% 17.63% 21.06%

20 to 34 Years 18.89% 18.29% 20.98%

35 to 39 Years 7.71% 8.05% 7.12%

40 to 49 Years 16.46% 16.10% 14.50%

50 to 64 Years 21.10% 20.82% 20.57%

Age 65+ 18.63% 19.09% 15.77%

Median Age 43.66 43.59 40.57

Population 25+ by Education Level

2017 Estimate Population Age 25+ 19,106 59,166 169,847

Elementary (0-8) 6.92% 5.13% 6.87%

Some High School (9-11) 7.86% 5.74% 8.17%

High School Graduate (12) 24.16% 21.34% 23.67%

Some College (13-15) 16.86% 17.44% 17.94%

Associate Degree Only 9.76% 8.76% 8.35%

Bachelors Degree Only 21.11% 23.24% 19.37%

Graduate Degree 11.82% 17.18% 13.61%

Population by Gender


Male Population 49.14% 48.38% 48.75%

Female Population 50.86% 51.62% 51.25%


Created on September 2018

POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection


2017 Estimate


2010 Census


2000 Census


Daytime Population

2017 Estimate 16,890 56,542 217,105

HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection


2017 Estimate


Average (Mean) Household Size 2.07 2.09 2.34

2010 Census


2000 Census


Growth 2015-2020 3.59% 5.52% 5.08%

HOUSING UNITS 1 Miles 3 Miles 5 Miles Occupied Units

2022 Projection 12,256 38,263 101,344

2017 Estimate 14,024 48,088 121,121

Owner Occupied 4,225 17,170 43,965

Renter Occupied 7,606 19,091 52,481

Vacant 2,193 11,827 24,675

Persons In Units

2017 Estimate Total Occupied Units 11,831 36,261 96,447

1 Person Units 40.22% 38.88% 35.31%

2 Person Units 32.74% 34.23% 31.02%

3 Person Units 13.64% 13.42% 14.59%

4 Person Units 8.77% 8.69% 10.01%

5 Person Units 3.25% 3.36% 5.02%

6+ Person Units 1.39% 1.43% 4.05%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate

$200,000 or More 5.60% 9.14% 6.70%

$150,000 - $199,000 3.55% 4.44% 3.98%

$100,000 - $149,000 7.35% 10.39% 9.19%

$75,000 - $99,999 8.20% 9.02% 8.99%

$50,000 - $74,999 13.96% 15.50% 15.05%

$35,000 - $49,999 13.67% 12.49% 13.44%

$25,000 - $34,999 12.13% 10.32% 10.62%

$15,000 - $24,999 16.71% 13.86% 14.25%

Under $15,000 18.82% 14.87% 17.77%

Average Household Income $68,421 $89,295 $76,859

Median Household Income $37,349 $47,910 $42,480

Per Capita Income $33,014 $42,621 $31,994

POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age


Under 20 17.18% 17.63% 21.06%

20 to 34 Years 18.89% 18.29% 20.98%

35 to 39 Years 7.71% 8.05% 7.12%

40 to 49 Years 16.46% 16.10% 14.50%

50 to 64 Years 21.10% 20.82% 20.57%

Age 65+ 18.63% 19.09% 15.77%

Median Age 43.66 43.59 40.57

Population 25+ by Education Level

2017 Estimate Population Age 25+ 19,106 59,166 169,847

Elementary (0-8) 6.92% 5.13% 6.87%

Some High School (9-11) 7.86% 5.74% 8.17%

High School Graduate (12) 24.16% 21.34% 23.67%

Some College (13-15) 16.86% 17.44% 17.94%

Associate Degree Only 9.76% 8.76% 8.35%

Bachelors Degree Only 21.11% 23.24% 19.37%

Graduate Degree 11.82% 17.18% 13.61%

Population by Gender


Male Population 49.14% 48.38% 48.75%

Female Population 50.86% 51.62% 51.25%


DEMOGRAPHICS OCEAN BAY HOUSE

IncomeIn 2017, the median household income for your selected geography is$37,349, compare this to the US average which is currently $56,286.The median household income for your area has changed by 55.43%since 2000. It is estimated that the median household income in yourarea will be $43,234 five years from now, which represents a changeof 15.76% from the current year.

The current year per capita income in your area is $33,014, comparethis to the US average, which is $30,982. The current year averagehousehold income in your area is $68,421, compare this to the USaverage which is $81,217.

PopulationIn 2017, the population in your selected geography is 24,532. Thepopulation has changed by 4.04% since 2000. It is estimated that thepopulation in your area will be 25,037.00 five years from now, whichrepresents a change of 2.06% from the current year. The currentpopulation is 49.14% male and 50.86% female. The median age ofthe population in your area is 43.66, compare this to the US averagewhich is 37.83. The population density in your area is 7,820.38 peopleper square mile.

HouseholdsThere are currently 11,831 households in your selected geography.The number of households has changed by 9.97% since 2000. It isestimated that the number of households in your area will be 12,256five years from now, which represents a change of 3.59% from thecurrent year. The average household size in your area is 2.07 persons.

EmploymentIn 2017, there are 4,940 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that59.44% of employees are employed in white-collar occupations inthis geography, and 41.05% are employed in blue-collar occupations.In 2017, unemployment in this area is 3.79%. In 2000, the averagetime traveled to work was 35.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows:86.53% White, 4.77% Black, 0.05% Native American and 1.41%Asian/Pacific Islander. Compare these to US averages which are:70.42% White, 12.85% Black, 0.19% Native American and 5.53%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 68.46% of the current yearpopulation in your selected area. Compare this to the US average of17.88%.

HousingThe median housing value in your area was $332,055 in 2017,compare this to the US average of $193,953. In 2000, there were4,029 owner occupied housing units in your area and there were6,729 renter occupied housing units in your area. The median rent atthe time was $532.



MIAMI-DADE COUNTY MARKET OVERVIEW OCEAN BAY HOUSE

MIAMI-DADEOVERVIEW

Miami-Dade County is a gateway to South American and Caribbeanmarkets and a tourist destination. The 2,400-square-mile countyextends from the Florida Everglades east to the Atlantic Ocean. It isbordered to the north by Broward County and to the south by theFlorida Keys. The main portion of the city of Miami lies on the shoresof Biscayne Bay and is separated from the Atlantic Ocean by barrierislands, the largest of which holds the city of Miami Beach. The metro,with a population of roughly 2.7 million, is located entirely withinMiami-Dade County. Miami is the most populous city, with slightlymore than 440,700 residents, followed by Hialeah and Miami Gardens,each with more than 100,000 people.

METRO HIGHLIGHTS

BUSINESS-FRIENDLY ENVIRONMENTThe metro has no local business or personal income taxes, which attracts businesses and residents to the area.

INTERNATIONAL GATEWAYMiami is a gateway for international trading activities, tourism and immigration, connecting to airports and ports around the world.

MEDICAL COMMUNITY The county contains the largest concentration of medical facilities in Florida, drawing residents needing services throughout the state.



ECONOMY Various industries provide a diverse economy. Trade, international finance, healthcare and

entertainment have become major segments in the local business community. A strong tourism industry has developed with ties to Latin America and the Caribbean. Tourism and trade depend on a large transportation sector. PortMiami and Miami

International Airport are both major contributors to employment and the economy. The Miami metro gross metropolitan product (GMP) expansion is expected to outpace the

U.S. GDP in 2018 and retail sales for the county are also rising.

SHARE OF 2017 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

Baptist Health South Florida

University of Miami

American Airlines

Miami Children’s Hospital

Publix Supermarkets

Winn-Dixie Stores

Florida Power & Light Co.

Carnival Cruise Lines

AT&T

Mount Sinai Medical Center* Forecast

MANUFACTURING4%

GOVERNMENT

HEALTH SERVICESEDUCATION AND

+OTHER SERVICES

5%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

25%AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL ANDBUSINESS SERVICES

2%INFORMATION

14%

4%

12% 12% 7%

16%

OCEAN BAY HOUSE



DEMOGRAPHICS

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

The metro is expected to add nearly 117,400 people over the next five years. During the same period, approximately 64,000 households will be formed, generating demand for housing.

The homeownership rate of 53 percent is below the national rate of 64 percent, maintaining a strong rental market.

The cohort of 20- to 34-year-olds composes 21 percent of the population.

Miami-Dade County has developed into a cosmopolitan urban area offering a vibrant

business and cultural community. The metro has an abundance of popular attractions.

Miami hosts the Capital One Orange Bowl and is home to several professional sports

teams, including the Miami Dolphins, the Miami Marlins and the Miami Heat. The county

has a broad array of cultural attractions, historic sites and parks. These include the

Adrienne Arsht Center for the Performing Arts, Zoo Miami and Everglades National Park.

The region is home to a vibrant and diverse culture, family-friendly neighborhoods, a

plethora of shops and restaurants, and beautiful weather and beaches. It also offers easy

access to Latin America and the Caribbean.

QUALITY OF LIFE

2017 Population by Age

0-4 YEARS

6%5-19 YEARS

17%20-24 YEARS

7%25-44 YEARS

28%45-64 YEARS

27%65+ YEARS

16%

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

OCEAN BAY HOUSE

39.72017

MEDIAN AGE:

U.S. Median:

37.8

$44,300 2017 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:

$56,300

2.7M2017

POPULATION:

Growth2017-2022*

4.3%

940K2017

HOUSEHOLDS:

6.7%

Growth2017-2022*:



OCEAN BAY HOUSE

Rental demand holds strong as suitable single-family homes remain out of reach foryoung buyers. Strong in-migration trends and stable job growth across South Floridaare boosting household formation beyond that of many other major metros this year,bolstering the multifamily sector. Homeownership in the most desired areas remainsa challenge for many entry-level buyers, driving apartment demand in the region’surban cores and also in smaller neighborhoods near employment hubs. Over the pastyear, tenant demand was highest in the submarkets of West Miami/Doral, FortLauderdale and Boynton Beach/Delray Beach, areas that ramped up revitalizationefforts in recent years.

More than 30 new complexes anticipated to open in 2018. Following several years ofrobust construction activity, deliveries will begin to slow this year as 9,700apartments are scheduled to open in 2018. Rental inventory grows by 4,300 units inMiami-Dade County, the highest amount in the region, led by Mila at 684 doors inNorth Miami Beach. In Lauderdale Lakes, the Atlantic Cypress Creek will be BrowardCounty’s largest completion of the year with 422 units across 25 stories, contributingto the addition of 3,500 apartments in the market. Palm Beach County records thegreatest slowdown in deliveries in 2018, down by almost half to 1,900 rentals. Thelargest project forecast to open this year is the 353-unit Atlantico at Alton in PalmBeach Gardens.

Investors Dig Deeper to Find Remaining Upside, Increase Activity Beyond the Core

SOUTH FLORIDA

* Cap rate trailing 12-month average through 2Q; Treasury rate as of June 28.Includes sales $1 million and greater for Miami, Fort Lauderdale and West Palm Beach.Sources: CoStar Group, Inc.; Real Capital Analytics

Investment Trends

Miami• High pricing east of I-95 has spurred investors to seek more affordable

assets with greater upside potential in areas such as Hialeah, where pricesaverage nearly $130,000 per unit.

• First-year yields declined 10 basis points over the past year to the upper-5percent territory and neared the mid-6 percent area in the Hialeah and MiamiGardens submarkets.

Fort Lauderdale• Revitalization efforts in Fort Lauderdale proper support substantive tenant

demand over the past year, holding investor interest elevated in the highestrent submarket of the county.

• Resting in the upper-5 percent area over the past year, the average cap ratefell 20 basis points from the prior period. Class A properties traded in themid-4 percent to mid-5 percent band.

West Palm Beach• Going-in cap rates above the rest of South Florida have more yield-driven

buyers scouring the county, particularly for Class C assets that often trade inthe upper-5 to upper-7 percent range.

• The region-leading expansion of the traditional renter cohort leads investorsto hurry to acquire assets near employment hubs.

Multifamily 2018 Outlook

VacancyY-O-Y

BasisPointChange

MetroEffective

RentY-O-Y

Change

Miami 3.5% -10 $1,620 6.1%

Fort Lauderdale 4.2% -80 $1,528 2.2%

West Palm Beach 5.0% -80 $1,514 2.0%



• Miami added 11,800 jobs in the second quarter, capping a 12-month gain of 15,700 jobs despite hurricane-related job losses last summer. The manufacturing sector led employment growth over the past year, adding nearly 7,000 jobs.

• The unemployment rate declined 30 basis points over the year ended in June to 4.5 percent.

EMPLOYMENT

• More than 2,800 units were delivered during the first half of 2018, keeping the year-over-year sum below the 5,800 units completed in the prior yearlong period.

• Construction was greatest in the downtown and immediate neighborhoods over the past year, led by the 821-unit Panorama Tower, which was finished in the second quarter and is now Miami’s tallest building.

CONSTRUCTION

• Net absorption totaled 6,260 rentals during the 12 months ended in June, bringing the vacancy rate down to 3.7 percent at midyear and reversing the 50-basis-point climb posted one year earlier.

• Apartment demand was highest in the Downtown Miami/South Beach submarket with net absorption of 2,100 units, followed by West Miami/Doral at 1,500 rentals.

VACANCY

• The average effective rent climbed to $1,583 per month in June, building on a 3.4 percent rise recorded last June.

• Class C complexes led rent growth, rising 5.2 percent from one year earlier to $1,025 per month, followed by a 4.0 percent increase in the Class B segment to $1,542 per month. Class A apartments raised the average rent to $2,109 monthly, up 2.3 percent.

RENTS

SOUTH FLORIDA: MIAMI

increase in effective rents Y-O-Y5.1%basis point decrease

in vacancy Y-O-Y30units completed Y-O-Y5,660increase in total

employment Y-O-Y1.3%

* Forecast

OCEAN BAY HOUSE

2Q18 – 12-Month Period



Robust Sales Activity in Areas of Greater Affordability Drops the Per Unit Price

Outlook: Investors are extending theirsearches to areas such as North Miamiand Hialeah for lower entry costs andremaining upside. Minimal constructionhas kept vacancy low and boosted rentsin these areas.

VacancyRate

Y-O-YBasisPoint

ChangeSubmarket

EffectiveRent

Y-O-Y %Change

North Central Miami 1.2% -70 $1,010 7.6%

Homestead/South Dade County

2.1% -70 $1,114 6.5%

Hialeah/Miami Lakes 2.3% 20 $1,410 1.7%

Downtown Miami/South Beach

3.4% -40 $2,098 5.1%

Miami Gardens 3.5% 50 $1,192 7.7%

Westchester/Kendall 4.0% 20 $1,501 3.2%

Coral Gables/South Miami

4.3% -40 $1,882 1.1%

West Miami/Doral 4.7% -280 $1,851 6.2%

Northeast Miami 5.2% 30 $1,698 5.7%

Overall Metro 3.7% -30 $1,583 5.1%

Submarket Trends

Lowest Vacancy Rates 2Q18

Sales Trends

SOUTH FLORIDA: MIAMI

• Deal flow held stable over the past year from the prior period, with buyers especiallyactive in the submarkets south of the Miami River and east of Brickell, including eastLittle Havana and Coral Way.

• The average price recorded over the past year was down 2 percent from the prioryearlong stretch, reaching $171,600 per unit.

* Trailing 12 months through 2Q18Pricing trend sources: CoStar Group, Inc.; Real Capital Analytics

OCEAN BAY HOUSE

* 20t17-2022 **2016



OCEAN BAY HOUSE

SOUTH FLORIDA

• Healthy economy and inflationary pressure drive rate increases. The Federal Reserve

appears committed to normalizing the fed funds rate, but further action could be restrained

this year as headwinds could weigh on the economy. Economic growth and inflation have

had a dramatic effect on the 10-year Treasury rate, which has more than doubled over the

past two years to 2.85 percent. However, capital inflows as investors seek alternative

investment options are holding the rate below 3 percent.

• Borrowing costs rise, cap rates remain compressed. Debt providers are facing a rising

cost of capital, leading to higher lending rates for investors. To compete for loan demand,

some lenders may choose to absorb a portion of the cost increases while others will require

higher equity stakes up front. More complex and creative approaches to financing properties

may begin to emerge as investors seek to reach return objectives.

• Lending market remains competitive as interest rates rise. Government agencies

continue to consume the largest share, just slightly over 50 percent, of the apartment lending

market. National and regional banks control approximately a quarter of the market.

Multifamily interest rates currently reside in the mid-4 percent to mid-5 percent realm with

maximum leverage of 75 percent. Portfolio lenders will typically require loan-to-value ratios

closer to 70 percent with interest rates in the low-4 percent to low-5 percent span.

Include sales $2.5 million and greaterSources: CoStar Group, Inc.; Real Capital Analytics

Capital Markets

OFFERINg MEMORANduM

20 units

8260 Byron Avenue

Miami Beach, FL 33141

Exclusively Listed By:

FELIPE J. ECHARTESenior Vice President Investments

Fort Lauderdale

(954) 245-3444

[email protected]

License: FL: SL696115

EVAN P. KRISTOLExecutive Managing Director Investments

Fort Lauderdale

(954) 245-3459

[email protected]

License: FL SL640466

20 units 8260 byron avenue miami beach, fl 33141 · it is intended to be reviewed only by the party...

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