Jefferson Suites Hotel 927 Jefferson Avenue Miami Beach, Florida, 33139

Transcription

1 Jefferson Suites Hotel 927 Jefferson Avenue Miami Beach, Florida, OFFERING MEMORANDUM A Licensed Hotel Complex in the Heart of South Beach $2,950,000 Neal R. Deputy 690 Lincoln Road Miami Beach, FL C: (305) nealdeputy@gmail.com

2 CONTENTS CONTENTS Existing Street Elevation Cover Contents Introduction Location & Environs Map Site Plan Floor Plans Exterior Photographs Interior Photographs 2016 Income & Expense Analysis 2015 & 2016 Monthly Income Comparable Sales Activity Press Hotel & Rooming House Codes About South Beach About Miami Notes to Bidders

3 INTRODUCTION INTRODUCTION Legal Short-Term Rental properties are exceedingly rare in the Art Deco Historic District of South Beach and The Jefferson Suites provide extraordinary potential for a variety of enterprises. Built in 1924 in the Craftsman Bungalow style, this 7,000 square foot complex is comprised of five Short Term Rental Suites disposed around a central courtyard. The Main House at Street Front provides two 4-bedroom 2-bath suites (one upstairs, one downstairs) along with one studio unit. The Courtyard Building to the rear of the site provides two 1-Bedroom 1-Bath Suites. All Suites are complete with private kitchens, lounges, dining areas, and private entries. Fine furniture and finishes define these extraordinary Vacation homes. The complex comprises eleven total bedrooms and sleeps thirty-four. Suites vary from one to four bedrooms and sleep between two and ten. There are also four parking spaces for Guest use. Courtyards and lush tropical gardens provide privacy, color, and a sense of repose. The beautifully appointed Suites provide provide a quiet oasis amidst the hustle and bustle of busy South Beach. Originally built as a single-family home, 927 Jefferson Avenue was converted to a Rooming House in the early 1940s as tourism diminished and many of Americas Armed Forces trained in South Florida during WWII. Troops would train on the beaches by day and relax in the inviting tropical environs of this and other Rooming Houses by night. Known as Sytten House in the 1940s, 927 Jefferson Avenue has been in continuous operation as a center for hospitality to this day. Stair to Courtyard Building B Note that the Rooming House designation for the subject property allows for remote management- free from the cumbersome demands of other short-term rental properties. Also, the ability to serve Food and Beverages to guests round-the-clock adds significantly to potential income and is a more liberal use than is allowed for Bed & Breakfast Inns and many hotels. Finally, commercial signage to advertise the establishment is allowable on site of up to 20 square feet. See pages for Income and Expense Analyses and YoY performance for 2016 & Renovations were recently completed in

4 LOCATION & ENVIRONS MAP Sailing the Bay Lincoln Road Mall Fun in the Sun Tennis? Miami Beach Convention Center South Beach Art Deco Historic District 927 Jefferson Suites Collins Avenue Shopping District Alton Road Cultural District 5 th Street to Miami World Famous Ocean Drive 04

5 SITE PLAN SITE PLAN 05

6 GROUND FLOOR PLAN BUILDING A GROUND FLOOR PLAN BUILDING A 06

7 SITE PLAN SECOND FLOOR PLAN BUILDING A SECOND FLOOR PLAN BUILDING A

8 GROUND FLOOR PLAN BUILDING B GROUND FLOOR PLAN BUILDING B 08

9 EXTERIOR PHOTOGRAPHS 06 View of the Jefferson Suites Hotel from Jefferson Avenue Stair Leads to Upstairs Suite #2 and Provides Outdoor Shower Outdoor Breakfast Area can be used Throughout the Day

10 EXTERIOR PHOTOGRAPHS Lush Tropical Foliage Surrounds the Jefferson Suites Hotel Small Courtyard at Entry to Suite #3 Entry Gate from Jefferson Avenue provides Privacy and Security 10

11 EXTERIOR PHOTOGRAPHS Brick Walkways and Tropical Plants Throughout the Grounds View of Breakfast Area with Courtyard and Building B Beyond Main Courtyard with Parking Area Beyond 11

12 INTERIOR HOTOGRAPHS Entry at Suite #1. Comfort is the Keynote of the Jefferson Suites Hotel Family Sized Kitchen in Suite #1 with all the Essentials Suite # SF Wood Floors Throughout with Tasteful Furnishings 12

13 INTERIOR PHOTOGRAPHS Antiques and Artwork Create an Elegant Environment Full Kitchen in Suite #2 Suite # SF Beautifully Renovated Baths in all Suites 13

14 INTERIOR PHOTOGRAPHS Cable, Wifi, and Many Modes of Entertainment are Ever Present Large Baths with all new Fittings and Fixtures Characterize these Lovely Vacation Homes. Suite #3 583 SF Thoughtful and Tasteful Furnishings Provide Comfort and Relaxation 14

15 INTERIOR PHOTOGRAPHS Beautiful Custom Kitchen in Suite #4 Eccentric Furnishings provide Character and Charm Suite #4 578 SF No Detail has been Overlooked in Providing a Phenomenal Guest Experience 15

16 INTERIOR PHOTOGRAPHS Garden Kitchen with all the Essentials Beautifully Restored Baths with all New Fixtures and Fittings in All Suites Suite #5 215 SF Clean, Cool, and Comfortable Interiors Define the Jefferson Suites 16

17 2016 INCOME & EXPENSE ANALYSIS List Price $2,950,000 No. of Bedrooms 11 Price per Bedroom $268,182 Gross Income $448,835 GI is after OTA and CC Commissions, Resort Tax and Sales Tax Lodging Sales Inc. Occupancy is currently 85% and is reflected in Gross Income Other Income Inc. Parking Fees, Location and Event Fees, etained Deposits, Laundry Operating Expenses $160,173 *RE Taxes-Reassesed $59,000 Marketing $0 Marketing is handled primarily by OTAs Legal/Acct $2,500 Estimated **Insurance $15,000 Estimated ***Management Fee $33, % of Gross Income unless self-managed by Owner Cleaning $19,500 Water/Sewer $4,200 Laundry $0 Included in Housekeeping Cable/Wifi/Phone $4,500 Waste Management $2,400 Repairs & Maint $3,600 Budget Gas $960 Electric $4,200 Capital Reserves $6,000 Budget Pest & Termite $1,200 Hotel Supplies $3,000 # Suites SF/Suite Rent Month Year Food Supplies $ $7,481 $37,403 $448,835 Licenses & Permits $450 Totals 3,388 $133 $37,403 $448,835 Micellaneous $0 NOI prior to DS $288,662 $24,055 month ****Cap Rate 9.79% Equity required $1,475,000 Loan Amt $1,475,000 P&I annualized $103,472 $8,623 month DSCR NOI after DS $185,190 $15,432 month Cash on Cash 12.56% *Dade County Property Taxes indicated have been adjusted to reflect millage of 0.02 on a Purchase Price of $2,950,000. ** Insurance costs can vary significantly based on lender, carriers, required coverages, business liability, etc. Cost reflected in proforma is indicative of similar sized facilities in the area. *** Management Fee is based on a standard 7.5% of Gross Income. However, this figure can be increased depending on desired level of service or eliminated altogether by an owner/operator. **** Cap Rate indicated is based on a Purchase Price of $2,950,000

18 \ 2015, 2016 MONTHLY INCOME COMPARISON $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 JAN Lodging Revenue Comparison- 2015, 2016, & 2017 Does not include management or miscellaneous income FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC $368,570 $25,478 $19,972 $35,305 $28,763 $25,779 $15,774 $19,297 $27,750 $33,464 $37,143 $47,206 $52,639 $448,835 $44,786 $60,032 $50,084 $31,830 $32,352 $33,821 $30,815 $36,220 $26,945 $35,892 $22,856 $43,202

19 COMPARABLE SUITES HOTEL SALES COMPARABLE SUITES HOTEL ACTIVITY Address Month Sale Price #Suites SF BRs Cost/BR Name BULK PURCHASE 12/15 $13,900, , $397,143 Royal Stays 1534 Euclid 4 3, Michigan 5 4, Pennsylvania 5 4, Jefferson 16 12, Indian Creek 5/16 $8,200, , $431,579 La Costa Suites th 10/16 $12,976, , $432,533 Sadigo Suites 354 Washington 5/17 $5,150, , $343,333 Villa Italia 1018 Jefferson ACTIVE $4,500, , $375,000 So Be You 1415 Collins ACTIVE $7,950, , $467,647 Villa Paradiso TOTAL: $52,676, AVERAGE: Unit= $353,530 Bedroom= $411,531 $500,000 Sold & Active Comparables- Cost Per Suite Room $450,000 $400,000 $411,531 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Royal Stays La Costa Suites Sadigo Suites Villa Italia So Be You Villa Paradiso Jefferson Suites $397,143 $431,579 $432,533 $343,333 $375,000 $467,647 $268,182 19

20 RECENT SOUTH BEACH HOTEL SALES (Non-Oceanfront) Address Month Sale Price SF Rooms $/Room Name 1120 Collins 10/17 $17,500,000 30, $324,074 Stiles Hotel 354 Washington 5/17 $5,150,000 6, $396,154 Villa Italia 347 Washington 4/17 $9,000,000 11, $375,000 St. Augustine 1775 James 1/17 $13,750,000 15, $312,500 Hotel Collins 10/16 $4,500,000 8, $264,706 Impala Hotel 1666 James 9/16 $24,000,000 27, $347,826 Crest Hotel th 6/15 $13,000,000 15, $433,333 Sadigo Court 825 Washington 5/15 $28,500,000 40, $323,864 Clinton Hotel TOTAL: $115,400, AVERAGE: Room= $340,413 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Recent South Beach Hotel Sales- Cost per Room Stiles Hotel Villa Italia Hotel 18 $340,413 Impala Hotel Crest Hotel Sadigo Court Clinton Hotel Jefferson Suites Series1 $324,074 $396,154 $312,500 $264,706 $347,826 $433,333 $323,864 $268,182 RECENT SOUTH BEACH HOTEL SALES 20

21 PRESS PRESS Curbed Magazine voted 927 Jefferson Suites the #8 hottest Hotel in Miami Beach see; /maps/mapping-the-10- hottest-hotels-in-miamibeach Here s what Eccentric Rich had to say about us jefferson-suites-miamibeach/ 21

22 HOTEL & ROOMING HOUSE CODE HOTEL & ROOMING HOUSE CODE 22

23 ABOUT SOUTH BEACH ABOUT SOUTH BEACH Miami Beach is a coastal resort city located in Miami-Dade County, Florida. Incorporated on March 26, 1915, it is located on a series of natural and man-made barrier islands between the Atlantic Ocean and Biscayne Bay, the latter separates the Beach from Miami city proper. The historic neighborhood of South Beach, comprising the southern- most 2.5 square miles of Miami Beach, along with Downtown Miami and the port, collectively form the commercial center of South Florida. As of the 2010 census, the city had a total population of 87,779. Miami Beach has remained one of America's pre-eminent beach resorts for the past 100 years. In 1979, Miami Beach's Art Deco Historic District was listed on the National Register of Historic Places. The Art Deco District is the largest collection of Art Deco architecture in the world comprising hotels, apartments and other structures erected between 1923 and Mediterranean, Streamline Moderne, and Art Deco are all represented in the District. South Beach is bounded by the Atlantic Ocean on the East, Lenox Court on the West, 6th Street on the South and Dade Boulevard along the Collins Canal to the North. The movement to preserve the Art Deco District's architectural heritage was led by former interior designer Barbara Capitman, who now has a street in the District named in her honor. Miami Beach has a tropical climate with hot humid summers and warm dry winters. Other than the Florida Keys, Miami Beach has the warmest winter weather in the United States (mainland). The warm and sunny weather in Miami Beach and South Florida attracts millions of travelers from around the world from November through April. Sea surface temperatures range from 75 F in winter to 86 F in the summer/fall months. Miami Beach has the warmest ocean surf in the United States annually. Median Resident age in 33139: Median Resident Age in FL: 38.9 yrs 40.5 yrs Average household size in 33139: 1.7p Average household size in FL: 2.6p Average AGI in 2010 in $89,607 Average AGI in 2010 in FL $50,523 Average Wages filed in 33139: $52,304 Average Wages filed in FL: $39, population in 2010: 32, population 2000: 38,441 Houses and Condos: 36,412 Renter-occupied Apts: 16,452 % of Renters in 33139: 69% % of Renters in FL: 31% March 2012 COL index : Well above U.S. average: Land area in square miles: 2.7 Water area in square miles: 3.3 RE property taxes for housing units in 2010 in 33139: (1.2%) $4,175 Florida: ( 1.0%) $1,882 Median RE property taxes paid for housing with mortgages in 2010: 5 (1.4%) $4,665 Median RE property taxes paid for housing with no mortgage in 2010: 5 5 (1.1%) $3,466 23

24 ABOUT MIAMI ABOUT MIAMI ABOUT MIAMI Miami is a city located on the Atlantic coast in southeastern Florida and the county seat of Miami-Dade County. The 42nd largest city proper in the United States, with a population of 408,568, it is the principal, central, and most populous city of the Miami metropolitan area, and the most populous metropolis in the Southeastern United States. According to the U.S. Census Bureau, Miami's metro area is the seventh most populous and fourth-largest urban area in the United States, with a population of around 5.5 million. Miami is a major center and a leader in finance, commerce, culture, media, entertainment, the arts, and international trade. In 2010, Miami was classified as a Alpha- World City in the World Cities Study Group s inventory. In 2010, Miami ranked seventh in the United States in terms of finance, commerce, culture, entertainment, fashion, education, and other sectors. It ranked thirty-third among global cities. In 2008, Forbes magazine ranked Miami "America's Cleanest City", for its year-round good air quality, vast green spaces, clean drinking water, clean streets and city-wide recycling programs. According to a 2009 UBS study of 73 world cities, Miami was ranked as the richest city in the United States, and the world's fifth-richest city in terms of purchasing power. Miami is nicknamed the "Capital of Latin America", is the second-largest U.S. city (after El Paso, Texas) with a Spanish-speaking majority, and the largest city with a Cuban-American plurality. Downtown Miami and South Florida are home to the largest concentration of international banks in the United States, and is home to many large companies both nationally and internationally. The Civic Center is a major center for hospitals, research institutes, medical centers, and biotechnology industries. For more than two decades, the Port of Miami, known as the "Cruise Capital of the World," has been the number one cruise passenger port in the world, accommodating some of the world's largest cruise ships and operations, and is currently the busiest in both passenger traffic and cruise lines Miami has a tropical monsoon climate with hot and humid summers and short, warm winters, with a marked drier season in the winter. Its sea-level elevation, coastal location, position just above the Tropic of Cancer, and proximity to the Gulf Stream shapes its climate. The wet season begins sometime in May, ending in mid-october. During this period, temperatures are in the mid 80s to low 70s. Much of the year's 55.9 inches (1,420 mm) of rainfall occurs during this period. 24

25 NOTES TO BIDDERS NOTES TO BIDDERS Please do not explore the premises without the Listing Agent. Viewings of the site and interiors will be promptly arranged following receipt of an acceptable Letter of Intent. This brochure is intended solely for informational purposes to assist in determining if one wishes to proceed with further due diligence investigation of the property. The information included herein has been obtained from sources deemed to be reliable but no representations, guarantees, or warranties with respect to this information are being made. Additionally, this information is subject to change at any time without notice to recipients. Risks are involved in any real estate purchase. It is the investor s responsibility to independently verify any data relied upon for an investment using qualified legal, financial, and operations advisors. Projections, opinions, assumptions, or estimates used in this memorandum are illustrative examples only. Prior to investing in real estate, investors should also carefully consider possible tax consequences and legal requirements. In conclusion, the subject property offers a rare and singular opportunity to own and operate a highly desirable short-term rental facility in the heart of South Beach- America s playground and the world s entertainment mecca. Furthermore, additional upside can be anticipated in the development of on-site amenities, food and beverage operations, and the full range of services available in close proximity. Real Estate deals in South Beach tend to fall into very low cap rate long term equity plays. Further, available inventory is virtually nonexistent in the Art Deco District and most deals currently being presented produce very low returns. 927 Jefferson Avenue provides a solid investment for the discerning investor, developer, or operator with tremendous upside potential and long term value. 25