Holliday Fenoglio Fowler, L.P. ( HFF ) a Florida licensed real estate broker.

Transcription

1 Holliday Fenoglio Fowler, L.P. ( HFF ) a Florida licensed real estate broker.

2 investment overview HFF is pleased to offer, on an exclusive basis, the opportunity to acquire the leasehold interest in the Aloft Sarasota (the Hotel or the Property ). Constructed in 2016 in conjunction with the One Palm Apartments, the 139-key select-service hotel enjoys an irreplaceable location in the heart of Downtown Sarasota with luxurious amenities, sweeping downtown and water views from the rooftop pool, and unparalleled access to a plethora of shopping, dining, and entertainment options. Prominently situated between Ringling Boulevard and McAnsh Square, the Aloft Sarasota benefits from a thriving downtown that has seen approximately 1,900 multifamily units recently delivered or under construction; record tourism with 2.7 million visitors in FY 2017; and an employment growth rate that is among the best in the country. The Hotel is directly adjacent to the 128,000-square-foot BMO Bank Building, and draws corporate demand from the approximately four million square feet of office space within a one mile radius of the Property. The Hotel is also being offered unencumbered of management, allowing a new owner the flexibility to enact a unique business plan in order to drive cash flow and grow operating margins. PROPERTY SUMMARY ADDRESS: 1401 Ringling Blvd, Sarasota, FL YEAR BUILT: 2016 GUESTROOMS: 139 MEETING SPACE: OWNERSHIP STRUCTURE: FOOD & BEVERAGE: AMENITIES: 2,395 Square Feet Leasehold (99 Years Remaining) W XYZ Bar & Lounge Refuel Grab and Go Rooftop Pool 24 Hour Fitness Center SPG Keyless Courtyard with Fire Pits Live Music Performances Pet Friendly BAYFRONT DRIVE RINGLING BOULEVARD MCANSH SQUARE 2

3 SARASOTA MSA ECONOMIC OVERVIEW RANKINGS & ACCOLADES POPULATION & DEMOGRAPHICS 808,000 residents in Sarasota Bradenton, North Port BUSINESS $82,848 Avg. HH Income 15.1 PERCENT population growth since 2010 Companies with HQ in Sarasota/Bradenton: #4 in the Nation for homeprice growth in 2017 SOURCE: BLS, SPOTLIGHT EMPLOYMENT 3.2% unemployment rate SOURCE: BLS TOURISM visitors in ,179 jobs were created in the market from Oct 2016 to Sep M +$3.0 B +10% increase over % JOB GROWTH beats Orlando, the #1 major market in the US economic impact #1 #1 #6 74.9% $184 $141 SOURCE: VISIT SARASOTA COUNTY BEST BEACH IN AMERICA: SIESTA KEY TRIP ADVISOR JANUARY 2017 LARGEST GREEN-CERTIFIED COMMUNITY IN U.S: LAKEWOOD RANCH U.S. METRO WELL-BEING INDEX GALLUP, MARCH 2017 FY 2017 HOTEL FUNDAMENTALS - SARASOTA COUNTY OCCUPANCY AVERAGE DAILY RATE REVPAR MAJOR ANNUAL EVENTS GLOBAL EVENTS IN SARASOTA Baltimore Orioles Spring Training $89 Million 2017 Economic Impact Economic Impact Increased 75% Since World Sailing Conference 1 st time the event will take place in the U.S. Sarasota Powerboat Grand Prix $36.2 Million 2017 Economic Impact 18,500 Room Nights 2017 World Rowing Championships $22.6 Million Economic Impact 25,491 Room Nights 3 SOURCE: VISIT SARASOTA COUNTY. THE FISCAL YEAR FOR SARASOTA COUNTY RUNS FROM OCTOBER 1 TO SEPTEMBER 30 OF THE FOLLOWING YEAR.

4 investment highlights Newly-Constructed Aloft Hotel Situated in the Heart of Downtown Sarasota While all of the existing hotels in Sarasota are situated along Tamiami Trail on the western edge of the central business district, the Aloft Sarasota s unique location on Ringling Boulevard and Palm Avenue provides guests an immersive urban experience that is walking distance from the city s restaurants, shops, office space, and waterfront. The wave of highrise luxury condominium development after the recession has revitalized the local economy and broadened Sarasota s tourism reach to a global audience. As one of the newest and most well-positioned hotels in this rapidly growing CBD, the Aloft Sarasota is poised to continue its already impressive performance and benefit from the city s many expanding demand drivers. 10-Story Construction and First-Class Amenities Stand Out From the Competition Developed by One Palm, LLC, a joint venture between JWM Management and istar, the Aloft Sarasota s 10-story reinforced concrete frame provides guests sweeping city and partial water views from rooms that are wellprotected from hurricane impacts. The Hotel s unique architecture allows many guests to enjoy corner unit views, while many of the premium Splash Rooms open directly to the rooftop pool level for a resort-like experience. The building s internal structured parking, inviting lobby lounge, state-of-the-art fitness center, unique ground-floor courtyard, wxyz bar, and rooftop pool with striking views of the city s evolving skyline set it apart from the competition. Downtown Sarasota s Multi-Housing Boom Generates Ample Lodging Demand to Mitigate the Impact of New Hotel Supply Since emerging from the recession, downtown Sarasota has experienced an urban renaissance with 786 multifamily units completed in the past two years and another 1,085 units currently under construction. This fervent pace of development also includes five 18-story luxury condominium projects, many of which feature half and full-floor units that are valued well above the million dollar mark. This wave of luxury housing has attracted affluence from around the globe, which directly benefits the local economy with an infusion of discretionary spending. As these projects are delivered, Sarasota s tourism economy has continued to grow with the city s broadening exposure. This is evidenced in the notable pace of new hotel construction currently underway. The 164-key Art Ovation, 180-key Embassy Suites Sarasota, and the 89-key Sarasota Modern are projected to open in 2018, while the Westin Sarasota recently delivered in August While some of these are competitive with the Aloft Sarasota, any impacts to performance are expected to be temporary as strengthening tourism demand is absorbed into the new supply. Additionally, nearly all of the new hotel development is occurring along Tamiami Trail and Cocoanut Ave. The Aloft Sarasota s excellent location on the eastern side of Sarasota s CBD is a differentiating factor that further mitigates the potential impacts of new hotel supply. 4

5 downtown sarasota multifamily development Sarasota-Bradenton International Airport 1.2 Million Passengers Downtown Sarasota Condo/Multifamily Development # Stage Opening Name # Stories # Units 1 Open Feb 2016 The Jewel Open Mar 2016 One Palm Apartments Open Dec 2016 Cityside Apartments Open Jan 2017 Sansara Open Oct 2017 The DeSota Open Oct 2017 The Q Townhomes Open Dec State Street Open Dec 2017 The Vue In Construction Mar 2018 Arcos (Urban Flats) In Construction Mar 2018 Echelon In Construction Apr 2018 Elan Rosemary In Construction Jul 2018 DeMarcay In Construction Sep 2018 BOLD Lofts In Construction Mid 2019 The Mark In Construction Mid 2019 Cityside Apartments Phase II Final Planning Late 2019 BLVD Sarasota Total 1,920 8 TAMIAMI TRAIL 16 1 FRUITVILLE ROAD BAYFRONT DRIVE 2 RINGLING BOULEVARD 4 PINEAPPLE AVENUE Sarasota Bay 10 5

6 investment highlights Impressive Sarasota Lodging Market Performance With excellent year-round weather, renowned Gulf of Mexico beaches, crystal blue waterways, and numerous cultural and entertainment attractions, the Sarasota lodging market attracts a spectrum of visitors from across the country and increasingly the world. Strong population in-migration coupled with a diversifying business climate has reduced the impact of seasonality, while attractions from the Mote Marine Laboratory and Marie Selby Botanical Gardens to the John & Mable Ringling Museum of Art and Van Wezel Performing Arts Center offer unique experiences for all types of visitors. Global events such as the 2017 World Rowing Championships and 2018 World Sailing Conference have identified Sarasota as their destination of choice, further highlighting the area s emergence as a major destination. Hotel fundamental performance has staged a remarkable improvement since the recession, with RevPAR in the MSA growing by an 11.6% CAGR since 2010, while Visit Sarasota lists current occupancy at 75% with RevPAR at an impressive $141 for FY The city s increasingly global reach combined with new and growing demand drivers should allow Sarasota s lodging market to continue its healthy expansion. Strong In-Place Cash Flow in Second Year of Operations Following its opening in February 2016, the Aloft Sarasota has quickly emerged as one of the most desirable hotels in downtown Sarasota. Its beautifully designed finishes and central location are complemented by a strong lodging market that has resulted in highly efficient operating margins and a YE2017 RevPAR that ranks number one within the Hotel s competitive set. With a proven cash flow and tangible upside as the downtown area expands, the Aloft Sarasota is well-positioned to continue its robust performance throughout 2018 and beyond. 3,965-Square Foot, Ground-Floor Blank Canvas Space Included in the Offering A new owner will have the opportunity to drive value at the Hotel by leasing the included hard corner retail stall to a renowned restaurant concept, or attract more group business by converting the area into additional meeting space. Downtown Sarasota enjoys extremely favorable retail fundamentals with average vacancy currently at 4.4% with several recent leases signed in the low $30 s per square foot (NNN) range. A full-service restaurant, for example, would not only serve as an amenity for guests at the Hotel, but it would also draw demand from the One Palm Luxury Apartments and surrounding office buildings. The meeting space option would also help drive business at the Hotel by appealing to a broader segmentation of guests. Affiliation with a Top Boutique Select-Service Flag by Marriott, the World s Largest and Most Coveted Franchise System The Property benefits from the most well-recognized and largest brand system in the world, Marriott. With a membership program that has grown by nearly 300% to more than 85 million members worldwide following the addition of Starwood Hotels & Resorts in 2016, the Aloft brand s far-reaching acclaim attracts new and repeat visitation alike. Through the integration of Starwood Hotels and the leadership of the Marriott brand, the Aloft flag has expanded rapidly with over 130 hotels in 20 countries, and another 130+ hotels in the pipeline. 6

7 Gulf of Mexico St. Armands Key Lido Key Longboat Key Mote Marine Laboratory & Aquarium RINGLING CAUSEWAY Golden Gate Point Sarasota Bay Van Wezel Performing Arts Hall Bird Key Median Home Value $1.5M Bayfront Marina Sarasota Orchestra Bayfront Park TAMIAMI TRAIL BAYFRONT DRIVE PALM AVENUE PINEAPPLE AVENUE RINGLING BOULEVARD Main Street Shopping District FRUITVILLE ROAD ORANGE AVENUE hfflp.com HFF Tampa 101 E Kennedy Boulevard Suite 3905 Tampa, FL (T): (813) INVESTMENT SALES Preston Reid Director (813) preid@hfflp.com Wyatt Krapf Associate (813) wkrapf@hfflp.com Ashley Rosenberg Analyst (813) arosenberg@hfflp.com CAPITAL MARKETS Scott Wadler Senior Director (305) swadler@hfflp.com HFF Miami 1450 Brickell Avenue Suite 2950 Miami, FL (T): (305) Max Comess Managing Director (305) mcomess@hfflp.com Alexandra Lalos Director (305) alalos@hfflp.com HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change Holliday Fenoglio Fowler, L.P. ( HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 25 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, loan sales and commercial loan servicing. For more information, please visit hfflp.com or follow HFF on