hollywood - loopnet · 2018. 11. 9. · cc oo mm mm ee nn ttss oo ff tthh ee ss uu bb jjee cc tt pp...

1947 BUCHANAN STHOLLYWOOD, FLORIDA

OFFERING MEMORANDUM$ 9 9 0 , 0 0 0

PeterDackoMedia Realty & Advisors

954-923-2325

954-328-8248

[email protected]

8-P

lex H

olly

wood

mailto:[email protected]

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Offering Memorandum isproprietary and strictly confidential. It is intended to be reviewedonly by the party receiving it from Media Realty & Advisors, Inc.(Media Realty)and should not be made available to any other personor entity without the written consent of Media Realty. This MarketingBrochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only apreliminary level of interest in the subject property. The informationcontained herein is not a substitute for a thorough due diligenceinvestigation. Media Realty has not made any investigation, andmakes no warranty or representation, with respect to the income orexpenses for the subject property, the future projected financialperformance of the property, the size and square footage of theproperty and improvements, the presence or absence ofcontaminating substances, PCB's or asbestos, the compliance withState and Federal regulations, the physical condition of theimprovements thereon, or the financial condition or business prospectsof any tenant, or any tenant’s plans or intentions to continue itsoccupancy of the subject property. The information contained in thisMarketing Brochure has been obtained from sources we believe to bereliable; however, Media Realty has not verified, and will not verify,any of the information contained herein, nor has Media Realtyconducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy orcompleteness of the information provided. All potential buyers musttake appropriate measures to verify all of the information set forthherein.

2

TABLE OF CONTENTS

3 Forward

7Market Report

8Subject Property

15Development Code

19 Rent Survey

22Sale Comparables

25Financials

3

EXECUTIVE SUMMARY

Current Year 1

Price $990,000 Cap Rate 5.27% 6.93%

Down Payment $247,500 G R M 10.7 9

Loan Amount $742,500 Net Operating Income $48,573 $81,474

Loan Type New Posposed Cash Flow Before Tax ($16,395) $22,192

Interest Rate 4.75%

Amortization 30 Years

Number of Office Suites 8 # of Units Type Rent

Net Rentable SQFT 4084 1 3/1 $1,360

Number of Buildings 2 1 2/1 $1,200

Price/Unit $123,750 4 1/1 $1,195

Price/SF $242.41 2 0/1 $960-$1182

Number of Stories 2

Year Built 1964

Sailent Data

Unit Bearkdown

This analysis has been prepared solely for informational purposes to assist the investor(s) in determining whether to proceed with the sale of the property. No representation as to

the accuracy or appropriateness of the information is made. Although we believe the information to be reliable, we will not be liable for misstatements of facts, errors, omissions, or

prior sale of the property. Owners must verify the information when determining their best choice of action.4

INTRODUCTION TO BROWARD COUNTY

5

Broward County is well known for its brilliant sunshine in the winter, and ocean

breezes in the summer, but it is also a vibrant, diverse destination for many growing

businesses, corporations and others who seek the unique South Florida lifestyle.

Currently, the County consists of thirty-one (31) unique municipalities, from the

bustling urban center of the City of Fort Lauderdale, to the tranquil rural lifestyle

found in the Town of Southwest Ranches. The diversity of lifestyles and tremendous

population growth has positioned Broward County to become the second most

populated county in the State of Florida. Broward County is an urbanized county

located in southeast Florida. It is bounded by Palm Beach County to the north,

Miami-Dade County to the south, Hendry and Collier Counties to the west, and the

Atlantic Ocean on the east. The County population has increased steadily from

5,135 in 1920 to more than 1.7 million in 2011. This dramatic increase has made

Broward County the 15th largest County (in terms of population) in the United States

and the second largest in the State of Florida, just behind Miami-Dade

One of the challenges residents of Broward County will face with is build-out.

Broward County is the first County in the State to face the issue of build-out. Build-

out occurs when available vacant or undeveloped land no longer exists. New

development cannot occur without the demolishing, reconstructing, or subdividing of

existing properties. As build-out becomes a reality, redevelopment within Broward

County will be the future focus of how the County manages and directs growth,

while protecting existing residential neighborhoods.




INTRODUCTION TO HOLLYWOOD FL

6

The City of Hollywood is a mature and built-out community, where rapid

population growth in the 1950s and 1960s has given way to a population that is

stable in size but undergoing significant changes in its composition. The

October 1997 issue of Money Magazine noted that Hollywood's demographics

best represent what the United States will look like in the year 2022.

Hollywood's racial diversity, cultural variety, and blend of the old and young are

where the country is headed. Twenty-seven percent of Hollywood's residents

are 55 or older; thirteen percent are 45 to 54; and thirty-one percent are 25 to

44. Hispanics make up seventeen percent; African Americans thirteen percent;

Whites sixty-eight percent; and Asian Americans two percent of the population.

A coastal city of over 130,000 residents located in Broward County, Hollywood

is nestled between Fort Lauderdale and Miami. Fort Lauderdale-Hollywood

International Airport abuts the city, while Port Everglades, the second busiest

cruise port in the world, is partially within its municipal boundaries. Interstate 95,

the Florida Turnpike, Tri-County Commuter Rail, and two major railroads cut

through the city in a north-south direction. Miami International Airport and the

Port of Miami are less than twenty-five miles away, providing further

opportunities for Hollywood residents and companies to have access to the

global marketplace. The region is served by a substantial post-secondary

educational infrastructure, including Florida Atlantic University, Florida

International University, the University of Miami, a number of smaller private

universities and colleges, and a community college system.




HOLLYWOOD/DANIA SUBMARKETA P A R T M E N T S

The Hollywood/Dania Beach Submarket is beginning to grow in popularity, and developers are helping the landscape evolve with the times.

The submarket’s lower rents have made it desirable to renters seeking affordable

alternatives to downtown Fort Lauderdale or expensive premier suburban

submarkets that lie to the west, such as Pembroke Pines/West Miramar. As a

result, vacancies have remained below the metro average and rent growth has

performed well relative to the metro. The area is home to multiple large mixed-use

projects in all stages of the pipeline, and could soon attract residents in droves

when these major developments begin to deliver.

Despite sparse apartment development over the last cycle, this submarket recently

had its first opening of a 4 Star apartment property in more than five years when

Parc Station came on line. The property’s second phase is one of the only

apartment projects under construction, along with the highly anticipated Hollywood

Circle high-rise.

Hollywood/Dania Beach has historically been one of the tighter submarkets in the

metro area, and was still below the metro average as of September 2017, despite

vacancies rising in step with the overall Fort Lauderdale metro. Hollywood/Dania

Beach hasn’t benefited from much of the impressive population growth seen in the

Fort Lauderdale metro over the past few years. Population growth in the submarket

was just under 3% compared with a 9% average for the metro over the past five

years. While the renting population here is above average at 42%, median incomes

are below the metro average at approximately $43,000.

Click Here to View Full CoStar Market Report for the Hollywood Apartment Sub-Market




https://www.dropbox.com/s/m8nc8wbuhp5ohol/costar Hollywood apartment submarket report.pdf?dl=0

SUBJECT PROPERTY

8

COMMENTS ON SUBJECT PROPERTY

CCoommmmeennttss ooff tthhee SSuubbjjeecctt PPrrooppeerrttyy:: The property located at 1943-1947 is a unique

investment opportunity. It consists of eight rental units and is located in area which is

experiencing a rebirth. The property itself consists of two structures totaling 4,078 square

feet and was constructed in 1953. The building on the east side consists of a two story

building containing 1 (3/1) and 2 (1/1)’s. The other structure contains the five units. This

location is desirable due to the proximity of the redevelopment of the downtown corridor of

Hollywood and its low density multi-family zoning.

Currently the subject property is rented on a weekly basis with utilities included.

CCoommmmeennttss oonn SSuubbjjeecctt SSiittee:: The subject site is located within the boundaries of the

Community Redevelopment Agency and measures +/- 12770 SF or .28 Acres.

Address Legal Description Folio Number Property

Type Site Area

1947 BUCHANAN ST HOLLYWOOD 1-21 B LOT 4,5,6 LESS

E 30 BLK 18 5142 15 01 2970 8-Plex 12,240 SF




CLICK HERE TO VIEW BCPA PROPERTY CARD




http://www.bcpa.net/RecInfo.asp?URL_Folio=514215012970

COMMENTS ON LOCATION

The subject neighborhood is located in the area known as East Hollywood. It is geographically defined

by the Intracoastal Waterway to the east, Dixie Highway to the west, Sheridan Street to the north and

Pembroke Road to the south. This area includes the

residential neighborhood of the Lakes, West Lake and the

ill-defined residential areas between Federal and Dixie

Highways. The main north-south access in Sub-Area 2 is

US 1, which provides linkage from areas outside the City

to Young Circle, a city wide and regional destination point.

Sub-Area 2 contains three neighborhoods, Hollywood

Lakes, Dixie Highway Corridor (North and South) and

Downtown Hollywood. The Hollywood Lakes

neighborhood was planned as a part of Joseph Wesley

Young’s original 1925 city vision. The neighborhood was

designed to be an upscale residential community with access

to the beach and central business district. The Dixie Highway Corridor-North neighborhood has developed

as a result of its location to the Florida East Coast Railroad. Businesses have been located along the railroad

tracks since the establishment of the City. Downtown Hollywood is an important part of Sub- Area 2 as

well as the City as a whole. Downtown was first established in 1921 as a business district and main street.

The recent revitalization of Downtown has renewed residents appreciation of the street side dining,

sidewalk strolling, window shopping and other amenities Downtown has to offer. The residential

neighborhoods are mix of single-family, multi-family and motels. The single-family areas east of Federal

Highway have expressed an interest in preserving the existing housing stock. These areas are somewhat

buffered from commercial activities due to the transitional multi-family uses. However the areas west of

Federal Highway are still permeable to the adverse impacts from cut-through traffic and crime. The

primary commercial corridors and nodes within Sub-Area 2 are Downtown Hollywood and Federal

Highway. Redevelopment in this area has been the subject of several planning activities including the

development of a Community Redevelopment Agency for the Downtown, parking studies and the recent

Downtown Hollywood, ULI report which recommends several strategies for redevelopment of the

Downtown. Since its adoption, the City has actively pursued implementation by, for example, encouraging

new residential uses downtown and conducting a study to redesign Young Circle Park.




AERIAL VIEW

Subject




SKETCH




LOCATION MAPClick Here to view Google Maps




https://www.google.com/maps/place/1947+Buchanan+St,+Hollywood,+FL+33020/@26.0113478,-80.1432505,15z/data=!4m5!3m4!1s0x88d9aba1334b6507:0x268fea0170427b24!8m2!3d26.0172631!4d-80.1465872

PHOTO ADDENDUM




HIGHEST & BEST Revised Zoning 10/2016

16

ZONING MAP




ZONING MAPREVISED ND-2OLD ZONING RMCRA-54

1.75 FAR

Max Height 45 Ft or 4 Stories




RENT SURVEY Section 2

RENT SURVEY STUDIO APTS

20

AddressCurrent

PriceSale Price

Closing

DateBed/Bath Pool

SqFt

Liv

Area

Year

Built

1843 Dewey Street Unit#111 $900 Studio No 1956

2330 Grant St Unit#2330S $700 $700 11/1/2017 Studio No 275 1976

2305 Monroe St Unit#13 $715 $715 8/18/2017 Studio No 400 1967

1815 Buchanan St Unit#3 $750 $750 11/1/2017 Studio No 1948

2222 VAN BUREN ST Unit#24 $750 $750 7/14/2017 Studio Yes 450 1958

2401 Van Buren St Unit#25 $750 $750 9/2/2017 Studio No 1987

505 N 20th Ave Unit#8 $765 $765 10/17/2017 Studio No 1964

2303 Adams St Unit#2 $775 $775 10/13/2017 Studio No 1969

1747 FUNSTON ST Unit#4 $790 $790 6/16/2017 Studio No 550 1982

836 NW 10th St Unit#2 $795 $795 8/11/2017 Studio No 440 1958

2230 Madison St Unit#10 $800 $800 11/4/2017 Studio No 350 1960

2440 Hayes St Unit#2 $800 $800 8/30/2017 Studio No 1968

2222 VAN BUREN ST Unit#20 $830 $830 10/26/2017 Studio Yes 1958




927 18 CT Unit#16 $875 $875 10/13/2017 Studio No 1965

2225 Van Buren St Unit#2 $875 $875 9/27/2017 Studio No 1960

1843 Dewey Street Unit#109 $875 $875 8/1/2017 Studio No 550 1956

1843 Dewey Street Unit#101 $875 $875 10/1/2017 Studio Yes 550 1956


2401 Taft St Unit#4 $899 $899 10/20/2017 Studio No 680 1960


1823 Dewey Street Unit#I $925 $925 7/3/2017 Studio No 425 1956

1843 Dewey Street Unit#110 $925 $925 6/5/2017 Studio No 350 1956



$838 $835

RENT SURVEY 2 BEDROOM APT UNIT

21

AddressList

Price

Rented

PriceBed Bath

Living

Area

Year

BuiltPool DOM

1959 Pierce St $1,600 2 1 1,032 1935 75

1341 SE 3RD AVE Unit#308 $1,695 2 2 1,022 1998 Yes 15

2506 PIERCE STREET Unit#1B $895 2 1 743 1968 373

2345 Farragut St Unit#APT B $1,100 $1,100 2 1 650 1965 4

1625 Taft St Unit#Back $1,100 $1,100 2 1 700 1957 7

1950 Fillmore St $1,100 $1,100 2 1 950 1943 44

1750 N 17th Ct Unit#208 $1,200 $1,200 2 1 814 1967 Yes 17

1826 Cleveland St Unit#4 $1,250 $1,250 2 1 733 1974 19

1210 N 16TH CT $1,300 $1,300 2 2 953 1961 47

1917 LINCOLN ST Unit#10 $1,350 $1,350 2 1 900 1962 55

1210 N 16TH CT $1,375 $1,375 2 2 953 1961 44

2230 Garfield St Unit#A $1,400 $1,400 2 1 850 1971 10

1820 Fillmore St $1,500 $1,500 2 1 905 1976 Yes 76

1341 SE 3RD AVE Unit#308 $1,500 $1,500 2 2 1,022 1998 Yes 82

$1,312 $1,289

COMPARABLE SALES

COMMENTS DIRECT SALES COMPARISON

A comparable sale is property that is similar to the subject property in most

respects. It is located in a nearby location. It has recently sold for a fair market

value. The selection of comparable sales is in most appraisals is the single most

determining factor in establishing the value. The responsibility is to fully research

the local real estate market and determine which comparable sales represent the

best value characteristics of the subject property.

The market or direct sales comparison approach to an estimate of value is a

process of comparing market data, that is, prices paid for similar properties, prices

asked by owners, and offers made by prospective buyers or the tenants willing to

buy or lease. Typically a comparison grid is used and adjustments are made to

each comparable sales used for major differences between the comparable and

the subject property for such items as location, construction quality and significant

amentias, etc. In the market approach, the attempts are made to both gauge and

reflect the anticipated reaction by a typical purchaser to the subject property.




COMPARABLE SALES GRID5+ UNITS PRIMARY EMPHASIS

24

Click Here to Access Full Comp Report

AddressCurrent

Price

Sale

Price

Closing

Date

Days

on

Market

No

Units

Unit Breakdown

and Rent Analysis

Adj

Area

SF

Year

Built$/Unit $/SF G R M

Cap

Rate

101 SW 4th Ave Hallandale $710,000 39 5 4 (2/1) $1150 (1/1) $850 3020 1956 $142,000 $235.10 11.27 5.5%

417 NE 3rd Ave Unit#1-8 Hallandale $799,000 26 8 2(2/1) 2(1/1) 4 (0/1) 4772 1975 $99,875 $167.44 9.08 6.8%

1960 Rodman St Hollywood $995,000 33 10 10 (0/1) $850 2535 1951 $99,500 $392.50 9.85 6.3%

600 N 20th Ave Hollywood $1,225,000 $1,050,000 Jul-18 76 11 13 (0/1) $950 (1/1) $900 6103 1957 $111,364 $200.72 7.49 8.3%

2428 Hayes St Unit#1-6 Hollywood $649,900 $640,000 Jul-18 175 5 5 (2/1) $1200 (0/1) $450 4514 1957 $129,980 $143.97 9.03 6.9%

2247 Simms St Hollywood $549,900 $525,000 Oct-17 155 7 7 (1/1) $750 3232 1956 $75,000 $162.44 8.58 7.2%

2222 Van Buren St Hollywood $2,900,000 $2,500,000 Mar-18 156 27 13 (0/1) 13 (1/1) (2/1) 7755 1952 $92,593 $322.37 8.18 7.6%

$107,187 $232.08 9.07 6.9%




https://sef.mlsmatrix.com/DE.asp?k=1095185XWD8L&p=DE-27321314-9

FINANCIALS Section 4

CASH FLOW ANALYSIS

equals CASH ON CASH RETURN

less DEBT SERVICE

equals NET OPERATING

INCOME (NOI)

less OPERATING EXPENSES

Equals EFFECTIVE GROSS

INCOME (EGI)

less VACANCIES

POTENTIAL GROSS

INCOME (PGI)




27

Price:

25.00% $242,500

8

$121,250

8.4

7.46%

8.2

7.73%

$28.14

1964

12,277.0

4,084

$237.51

$114,940

4,023

110,917$

38,531

72,386$

Current Rents Taxes: 13,281$

UNIT BDRMS/ Unit Weekly Monthly Monthly 6,000

NUM BATHS Size Rent/Unit Income Income 3,500

1 1/1 464 $275 $1,192 $1,192 6,000

2 0/1 300 $275 $1,192 $1,192 Landscaping 1,350

3 1/1 410 $275 $1,192 $1,300 200

4 1/1 410 $275 $1,192 $1,300 Electric 6,000

5 1/1 464 $275 $1,192 $1,300 2,200

6 0/1 160 $960 $960

7 3/1 824 $1,360 $1,360

8 2/1 774 $1,200 $1,200

$9,478 $9,803

Laundry 100 100 38,531$

$9,578 $9.43

Annual Scheduled Gross Income: $114,940 $117,640 Per Unit: $4,816.38

Market Rent

Weekly

Rent/Unit

Water & Sewer

Total Expenses:

Per Net Sq.Ft.:

Maintenance:

Monthly Scheduled Gross Income:

Total Scheduled Rent:

$9,803

$275

Insurance:

$275

$300

$300 Trash

113,523$

38,531

3.50%

33.94%

74,992$ Net Operating Income:

*As Percent of Down Payment

$300 Licenses

Annualized ExpensesScheduled Income

3.50%

Market Rent

4,117

$117,640

Summary Proposed Financing

Down Payment:

Price per Unit

Current GRM:

$970,000

Number of Units:

Current CAP:

Approximate Net RSF:

Cost per Net RSF:

Gross Operating Income:

Less Expenses:

Current Rents

Scheduled Gross Income:

Market GRM:

Market CAP:

SQ FTApproximate Lot Size:

Less Vacancy Rate Reserve:

Annual Rent per Square Foot:

Approximate Age:

Annualized Operating Data

33.52%

FINANCIALS




hollywood - loopnet · 2018. 11. 9. · cc oo mm mm ee nn ttss oo ff tthh ee ss uu bb jjee cc tt pp...

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