VERO BEACH REDEVELOPMENT

Transcription

1 965 E Causeway Blvd Vero Beach, FL VERO BEACH REDEVELOPMENT Market Positioning and Pricing Analysis 1

2 N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E Non-Endorsements Marcus & Millichap Real Estate Investment Services of Florida, Inc. ("Marcus & 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. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Disclaimer THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â 2017 Marcus & Millichap. All rights reserved. VERO BEACH REDEVELOPMENT Vero Beach, FL ACT ID Y

3 P R E S E N T E D B Y Ahmed Kabani First Vice President Investments Senior Director - National Hospitality Group Miami Office Tel: (786) Fax: (786) ahmed.kabani@marcusmillichap.com License: FL SL Garrick Benabe Agent Candidate Miami Office Tel: (786) Fax: (786) garrick.benabe@marcusmillichap.com License: FL SL Jesse Bajaj SIP Member - National Hospitality Group Miami Office Tel: (786) Fax: (786) jesse.bajaj@marcusmillichap.com License: FL SL

4 TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Property Overview Regional Map Local Map Aerial Photo FINANCIAL ANALYSIS 02 STR Historical P&L 5 Year Pro Forma 5 Year Return MARKET COMPARABLES 03 Sales Comparables MARKET OVERVIEW 04 Market Analysis Demographic Analysis 4

5 INVESTMENT OVERVIEW 5

6 PROPERTY DETAILS PROPERTY DETAILS Name: Sea Spray Inn Price: $3,400,000 Cap Rate: 8.58% Address: 965 E Causeway Blvd. Vero Beach, FL APN: County: Indian River County Number of Rooms: 17 Building Area: 9,042 SF Lot Area: 14,810 SF (0.34 Acres) Building/Lot Ratio: 0.61 Year Built: 1987 Steps From the Ocean Upside in Room Revenue by Adding 8-10 Rooms Walkable Vero Beach Neighborhood Unencumbered by Brand and Management Rare Opportunity, Ideal for Owner-Operators Zoning: RM-13 Property Taxes: $13,414 (2016) 6

7 PROPERTY OVERVIEW PROPERTY OVERVIEW Marcus & Millichap has been chosen to exclusively market for sale the Sea Spray Inn Vero Beach, a charming 17 room motel located just a block from one of the best beaches in Florida. The Inn consists of 17 exterior-corridor studio and one bedroom suites, and is conveniently located right between A1A and Ocean Drive. Amenities include a heated pool, large rooftop deck, tropical courtyard, fully equipped kitchens, barbecue grill, complimentary WiFi and HBO, and guest laundry facilities. The Sea Spray Inn is ideally located in a very walkable Vero Beach neighborhood, just a short distance from boutique shops as well as plenty of dining options. Vero Beach, known for its beautiful beaches and water sport activities, also attracts tourists because of the town's unique dining and boutique shopping options. Tourists also have the opportunity to see a show at the nearby Riverside Theater, visit the Vero Beach Museum of Art, or stop by a number of local art galleries filled with famous and local artists alike. The Sea Spray Inn is unencumbered by brand and management, making it ideal for an owner-operator. In addition, an owner has the opportunity to significantly boost the Sea Spray's room revenue by adding 8 to 10 more rooms, without completely redeveloping the entire motel itself. PROPERTY OVERVIEW Steps From the Ocean Upside in Room Revenue by Adding 8-10 Rooms Walkable Vero Beach Neighborhood Unencumbered by Brand and Management Rare Opportunity, Ideal for Owner-Operators 7

8 REGIONAL MAP 8

9 LOCAL MAP 9

10 AERIAL PHOTO 10

11 PROPERTY PHOTOS 11

12 ROOM PHOTOS 12

13 Vero Beach Photo 13

14 FINANCIAL ANALYSIS 14

15 STR FINANCIAL ANALYSIS 15

16 HISTORICAL P&L FINANCIAL ANALYSIS 16

17 HISTORICAL P&L FINANCIAL ANALYSIS 17

18 5 YEAR PRO FORMA FINANCIAL ANALYSIS 18

19 5 YEAR PRO FORMA FINANCIAL ANALYSIS 19

20 MARKET COMPARABLES 20

21 SALES COMPARABLES MAP VERO BEACH REDEVELOPMENT (SUBJECT) Blue View Resorts SeaGlass Inn B & B Sea View Inn Delmar Motel The Nevada 21

22 PROPERTY VERO BEACH NAME REDEVELOPMENT SALES COMPARABLES Average Price Per Room $300,000 $270,000 $240,000 $210,000 Avg. $181,626 $180,000 $150,000 $120,000 $90,000 $60,000 $30,000 $0 Sea Spray Inn Blue View Resorts SeaGlass Inn B & B Sea View Inn Delmar Motel The Nevada 22

23 PROPERTY VERO BEACH NAME REDEVELOPMENT SALES MARKETING COMPARABLES TEAM SEA SPRAY INN 965 E Causeway Blvd, Vero Beach, FL, BLUE VIEW RESORTS 5815 S Highway A1A, Melbourne Beach, FL, SEAGLASS INN B & B 514 Ocean Ave, Melbourne Beach, FL, rentpropertyname1 rentpropertyname1 rentpropertyname1 Interest Fee Simple Total No. of Rooms 17 Year Built / Renovated 1987 Close of Escrow 4/11/2017 Asking Price $2,100,000 Price/Room $140,000 Price/SF $ Total No. of Rooms 15 Year Built / Renovated 1978 Close of Escrow 5/1/2017 Asking Price $1,330,000 Price/Room $147,778 Price/SF $ Total No. of Rooms 9 Year Built / Renovated 1915 rentpropertyaddress1 Underwriting Criteria Room Revenue $587,505 Occupancy 58% Total Revenue $587,505 ADR $ NOI $291,821 Rev PAR $9,396 rentpropertyaddress1 rentpropertyaddress1 23

24 PROPERTY VERO BEACH NAME REDEVELOPMENT SALES MARKETING COMPARABLES TEAM SEA VIEW INN 4215 S Highway A1A, Melbourne Beach, FL, DELMAR MOTEL 315 Arthur St, Hollywood, FL, THE NEVADA 322 Nevada St, Hollywood, FL, rentpropertyname1 rentpropertyname1 rentpropertyname1 Close of Escrow 4/20/2016 Asking Price $1,042,800 Price/Room $130,350 Price/SF $ Total No. of Rooms 8 Year Built / Renovated 1950 Close of Escrow 5/2/2017 Asking Price $3,850,000 Price/Room $256,667 Price/SF $ Total No. of Rooms 15 Year Built / Renovated 1955 Close of Escrow 3/4/2017 Asking Price $3,500,000 Price/Room $233,333 Price/SF $ Total No. of Rooms 15 Year Built / Renovated 1970 rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 24

25 MARKET OVERVIEW 25

26 MARKET OVERVIEW FLORIDA Occupancy Rises in Florida Hotels, Bolstering Growth in Revenue Metrics Orlando drives occupancy and revenue metric growth in Sunshine State. Healthy tourism in the state of Florida and job growth in many of the major metros have benefited occupancy and spurred increases in statewide revenue metrics during the year ending in June. Nearly all of the state s largest metros contributed to occupancy increases, with the Orlando market posting the largest gains. The metro is one of the largest tourist destinations in the United States and received a record 68 million visitors in 2016, underpinning hotel room demand. Additionally, above-average hiring in professional sectors has driven business travel to the area, benefiting occupancy rates during the workweek. Hiring in office-using sectors rose 4.1 percent during the last 12 months as 12,500 positions were created in Orlando. Healthy room demand and limited completions not only boosted occupancy rates but accelerated growth in revenue metrics. As a result, investors remained interested in Orlando s hotel assets, targeting properties in the Tourist Corridor submarket and near major attractions including Disney World. Many of the hotels that changed hands are independent or in the upper midscale segment. Residents take shelter in hotels after hurricane evacuations. Hurricane Irma impacted the entire state of Florida and caused residents and visitors to seek shelter, elevating occupancy levels in the short term in areas outside of the evacuation zones. Roughly 6.4 million people were ordered to evacuate parts of southeast Florida, plummeting hotel occupancies and revenue metrics in metros including Miami-Hialeah and Fort Lauderdale as the hurricane made landfall. Occupancy in hotels in Orlando rose considerably during this time as residents sought shelter farther north and inland. As evacuation orders were lifted, many residents may turn to hotels as they assess damage or wait for power to be restored, increasing occupancy levels and generating RevPAR growth. FEMA workers and volunteers will also occupy available hotel rooms as rebuilding occurs, further helping occupancy and revenue growth. Hotel investors will begin assessing their portfolios and determining next steps. Some owners may elect to place their property on the market in hopes of capturing a higher price amid higher occupancy and revenue growth. Several buyers will seek damaged properties in hopes of restoring and renovating to capture higher average daily rates. 26

27 MARKET OVERVIEW FLORIDA 2017 Forecast Revenue jumps in short term. In the aftermath of Hurricane Irma, statewide occupancy will move up amid recovery efforts. As a result, the average daily rate will climb 5.6 percent to $ and drive a 10 percent increase in RevPAR to $ Occupancy and revenue metrics should adjust back to normal levels by next year. Office-using job growth persists. Many of the major Florida markets registered employment gains in professional sectors above the national rate of growth. Job growth can spur occupancy gains during weekdays as individuals attend business meetings and interviews. Fort Lauderdale registered the largest increase in office-using hiring during the last four quarters, rising 5.4 percent as 12,000 positions were created. Tampa also posted strong growth, climbing 4.2 percent with the addition of 15,300 workers. Construction rises in Miami. Nearly 12,500 rooms are under construction in Florida and another 15,600 are making their way through the planning stage and expected to break ground in the next 12 months. Of these deliveries, the Miami-Hialeah metro has 4,900 rooms under construction. Metrics * Occupancy 71.6% 74.6% Demand Growth -0.9% 5.9% Supply Growth 1.5% 1.6% Average Daily Rate $ $ Annual Change 2.2% 5.6% RevPAR $96.35 $ Annual Change 1.6% 10.0% Revenue Growth -2.9% 11.8% * Forecast Sources: Marcus & Millichap Research Services; STR, Inc. 27

28 MARKET OVERVIEW FLORIDA Occupancy Trends After a 20-basis-point decrease in the prior year, occupancy in Florida climbed 130 basis points during the last 12 months to 73.2 percent in June. Room nights in the state rose 3.8 percent during this time, outpacing a supply increase of 1.8 percent. The majority of major metros in Florida registered occupancy increases during the last four quarters. Orlando posted the largest gain, with occupancy in the metro rising 330 basis points during the year to 78.9 percent at the end of the second quarter, the highest rate among the major markets. Limited completions and a 5.2 percent increase in room nights contributed to the spike in year-over-year occupancy. Occupancy in Miami-Hialeah and Fort Lauderdale climbed more than 100 basis points in each metro. In June, occupancy in Miami-Hialeah rested at 72.8 percent while Fort Lauderdale had a 73.9 percent occupancy rate. The Tampa-St. Petersburg market registered the only decline as the rate fell 110 basis points to 71.8 percent. Supply additions of 2.9 percent outpaced a room nights increase of 1.6 percent. Revenue Trends The average daily rate in Florida rose 3.4 percent during the last four quarters to $ in June. The increase in ADR coupled with rising occupancy lifted statewide RevPAR up 5.4 percent during this same time period to $ The significant jump in occupancy in Orlando aided in a 6.8 percent increase in the metro s ADR to $ As a result, RevPAR in Orlando soared 11.5 percent year over year to $ In Fort Lauderdale, the average daily rate ticked up slightly to $ while RevPAR climbed 3.0 percent during the last four quarters to $ Declining occupancy in the Tampa-St. Petersburg metro did not hamper improvement in the area s revenue metrics. ADR in the market rose 3.3 percent during the previous 12 months to $ in June. The increase in the rate drove a 1.8 percent advance in RevPAR to $ In Miami/Hialeah, ADR ticked down 0.7 percent but rising occupancy led to a 1.2 percent increase in RevPAR to $ * Forecast Sources: CoStar Group, Inc.; STR, Inc.; Real Capital Analytics 28

29 MARKET OVERVIEW FLORIDA Sales Trends Transaction velocity fell 9 percent in Florida during the year ending in the second quarter as fewer listings were available. The competitive bidding environment for available properties during this time lifted the average price up 15 percent to approximately 143,000 per key. Independent hotels comprised a significant chunk of all transactions, particularly in coastal locations including Miami Beach and oceanside hotels in Tampa-St. Petersburg. Increased competition for independent hotels lifted the average price up 14 percent statewide to $180,000 per key. During the last four quarters, transaction volume for hotels in Jacksonville rose notably from the prior year. Limited service assets were a primary target for investors in the Jacksonville metro. * Forecast Sources: Marcus & Millichap Research Services; STR, Inc. 29

30 MARKET OVERVIEW HOSPITALITY RESEARCH MIDYEAR 2017 Investors Maintain Confidence in Hospitality Market As Occupancy and Revenue Metrics Improve Hotel room demand persists. The U.S. hospitality sector has recorded increases in occupancy and revenue metrics during the year ending in June as room demand remained healthy. Employment growth nationwide and the rising median household income will support travel in the near future. Both domestic and international travel continue to rise, further benefiting room demand. Potential headwinds do exist including the growing construction pipelines in many major markets that may place downward pressure on occupancy, the average daily rate and RevPAR this year and into During the last 12-month period, hiring in office-using sectors rose 2.4 percent nationwide as 734,000 workers were added to staffs. Healthy job growth and a tight employment rate of 4.4 percent bolstered medium household incomes by 2.8 percent during this time. The rising incomes may spur additional leisure travel while increased jobs may further business travel. Domestic and international passenger travel in the United States rose 3.8 percent during In particular, international travel provides hotel operators opportunities for stronger demand drivers as passengers more than doubled in the last three years. Texas and California have more than 20,000 rooms each that are expected to break ground in the next 12 months. The increased supply may place downward pressure on occupancy in the coming years. 30

31 MARKET OVERVIEW HOSPITALITY RESEARCH MIDYEAR 2017 Investors increasingly targeting hotels as demand drivers improve. Hotel operations that spur revenue growth have kept buyers active in this sector. Transaction velocity rose roughly 10 percent nationwide as demand picked up for properties in many of the country s smaller markets. On average, hotel assets changed hands for nearly $100,000 per key, down slightly year over year as fewer properties in upper chain scales changed hands. Among chain scales, lower-tier hotels garnered significant investor attention. Trades increased considerably for economy and upper midscale assets during the previous four quarters. Demand for upscale assets held steady with the majority of trades in Marriott and Hilton branded properties. Several regions posted significant increases in transaction volume during the last 12 months. The Carolinas and the Central Midwest region led the nation, with the Mid Atlantic, Mid South and Southwest regions following. In prior years, coastal regions typically led sales volume. Sales velocity picked up for independent properties during the year ending in June as buyers widened their acquisition expectations. The increased demand for soft brand hotels may further intensify bidding for their properties moving forward as visitors seek experience oriented hotels. 31

32 MARKET OVERVIEW HOSPITALITY RESEARCH MIDYEAR 2017 Hotel construction pipeline on the rise. Roughly 111,000 rooms in more than 950 hotel projects were completed nationwide during the last 12 months up to June. Moving forward, nearly 187,000 rooms are under development and an additional 222,000 are expected to break ground in the next four quarters. The growing supply additions may place downward pressure in occupancy over the coming year. The metros of Houston and New York City received the largest number of rooms as 4,200 and 5,400 rooms were completed within July to June, respectively. Hilton Worldwide and Marriott International boosted their inventory during the last 12 months. Both companies averaged between 27 percent and 28 percent increases of new hotel rooms over all supply additions. Among chain scales, the bulk of new completions were in the upscale and upper midscale segments with a combined total of 77,000 rooms. Roughly 10,500 unaffiliated rooms were also constructed during this time. * Trailing 12 months through 2Q 32

33 MARKET OVERVIEW HOSPITALITY RESEARCH MIDYEAR 2017 Occupancy climbs amid healthy room demand. Since last June, demand for hotel rooms continued to outpace supply growth, lifting occupancy in the United States 50 basis points to 73.4 percent at the end of the second quarter. First half occupancy rose 40 basis points from the same time period last year to 65.3 percent. Large markets that demonstrated significant occupancy increases from last year include Norfolk-Virginia Beach, Orlando and Atlanta. On the other hand, mounting supply pressures in metros including Dallas, Houston and Nashville weighed on vacancy improvement in the last 12 months. Nearly all hotel chain scales posted occupancy improvements over the year ending in June. Economy chains boasted the greatest improvement with occupancy increasing 90 basis points to 65.4 percent. The upscale segment posted the only occupancy decrease as the rate ticked down 20 basis points year over year to 80.5 percent. Based on location, occupancy in properties in proximity to major thoroughfares climbed 100 basis points during the previous four quarters to 66.6 percent. Room demand in these hotels typically comes from travelers passing by. The highest occupancy rate remains in urban hotels at 80.4 percent, up 50 basis points year over year. 33

34 MARKET OVERVIEW HOSPITALITY RESEARCH MIDYEAR 2017 Room demand drives increases in revenue metrics. Rising occupancy nationwide is driving growth in revenue metrics. During the year ending in the second quarter, the average daily rate advanced 2.1 percent to $ The increase in ADR and occupancy generated a 2.8 percent rise in RevPAR during this time to $ ADR and RevPAR in independent hotels outperformed all other chain scales, rising 2.7 percent and 3.9 percent, respectively. Economy hotels followed as strong occupancy improvement and a 2.2 percent increase in ADR drove a 3.5 percent climb in RevPAR during the last 12 months. Despite higher occupancy in urban areas, suburban hotels outperformed their counterparts in ADR and RevPAR growth during the previous four quarters. ADR in urban hotels rose 0.3 percent while RevPAR inched up 0.9 percent during this time. In the suburbs, ADR climbed 2.3 percent and RevPAR posted a 2.8 percent advance. Major markets with RevPAR growth near or above 10 percent include Norfolk-Virginia Beach, Orlando, and San Diego. * Trailing 12 months through 2Q 34

35 MARKET OVERVIEW HOSPITALITY RESEARCH MIDYEAR 2017 Total Airport Passengers in Major Markets Travel Highlights 2016 International Visitation Passenger travel in the many of the nation s largest airports can highlight up-and-coming travel destinations and the potential for improvement in hotel occupancy and revenue metrics. The Los Angeles International Airport registered an 8 percent increase in passenger volume in 2016 from the prior year, making it the second most traveled airport in the nation. During this same time, hotel occupancy increased 100 basis points in the Los Angeles metro while RevPAR jumped 10.9 percent year over year. Additionally, hotels located near airports tend to have some of the highest occupancy rates, compared with interstate, resort, suburban and small metro hotels. One of U.S. largest contributors to international visitation, Brazil, was battered with political turmoil and a recession leading to a 24 percent drop in arrivals in Many Florida markets are impacted from fewer tourists visiting from the country and several of these metros, including Orlando, registered occupancy declines last year. On the other hand, the number of tourists from China grew 15 percent in 2016 from the prior year and that number is expected to increase. As a result, many hotels are customizing amenities to entice these travelers, including a hotel chain in California that will now accept Chinese mobile payments. 35

36 MARKET OVERVIEW HOSPITALITY RESEARCH MIDYEAR 2017 Capital Markets Monetary policy in transition. Despite the Fed raising its benchmark short-term rate three times in seven months and signaling another rise before the end of the year, long-term rates have remained stable. The yield on the 10-year U.S. Treasury bond remained in the low- to mid-2 percent range throughout the third quarter of The Federal Reserve wants to normalize monetary policy and, in addition to raising its funds (or overnight lending) rate, has announced it will begin to taper its balance sheet by allowing an initial $10 billion in securities to mature without reinvestment. By reducing its acquisitions of securities, 10-year Treasury rates should drift upward, thereby widening the spread between short- and long-term rates. Increase in interest rates over the course of the year, pushing up the cost of capital. While commercial real estate fundamentals remain strong, rising costs associated with debt financing will tighten the spread between cap rates and lending benchmarks. This environment could weigh on transaction activity as investors evaluate their yield options. Cap rates have remained relatively stable over the last year, but upward movement in Treasury rates has amplified the expectation gap between buyers and sellers. Capital markets remain highly competitive, with a broad assortment of fixed-rate products available. Year to date, CMBS market share has moved from a quarter of the market up to comprising one-third of hotel lending. Loan-to-value for CMBS typically is in the low-60 percent range. Lending by national and regional/local banks comprises a quarter of the lending activity this year with smaller loan sizes and LTV averaging from 60 percent to upwards of 90 percent for SBA products. 36

37 MARKET OVERVIEW HOSPITALITY RESEARCH MIDYEAR Marcus & Millichap Transactions Name State Rooms Wyndham Garden Hotel Newark NJ 349 Clarion Orlando International Airport FL 330 Surfside Marina TX 281 Clarion Conversion KS 257 Holiday Inn & Suites Beaumont TX 253 Atrium Hotel & Conference Center KS 216 Cabot Lodge Jackson North MS 200 Crowne Plaza OH 200 A2B Budget Hotel GA 196 Fontana Village Resort NC 194 Denver s Best Inn & Suites CO 190 Ramada Florence Center SC 190 Days Inn Birmingham South AL 159 Red Roof Inn St. Louis Westport MO 158 Holiday Inn & Suites WI 146 Clarion Inn & Suites Syracuse NY 143 Days Inn New Orleans LA 138 The Hotel Blue NM 140 Best Western Plus Westbank LA 138 Roadway Inn FL 125 Suburban Extended Stay South Bend IN 117 Days Inn Knoxville East TN 116 Holiday Inn Yakima WA 114 Motel 6 Tulsa South OK

38 PROPERTY VERO BEACH NAME REDEVELOPMENT Created on November 2017 POPULATION 1 Miles 3 Miles 5 Miles 2021 Projection Total Population 2,283 20,929 59, Estimate Total Population 2,255 20,251 56, Census Total Population 2,159 19,540 54, Census Total Population 2,343 20,784 52,566 Daytime Population 2016 Estimate 2,544 33,177 71,395 HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2021 Projection Total Households 1,133 10,968 27, Estimate Total Households 1,108 10,577 26,598 Average (Mean) Household Size Census Total Households 1,050 10,118 25, Census Total Households 1,086 10,866 24,166 HOUSING UNITS 1 Miles 3 Miles 5 Miles Occupied Units 2021 Projection 1,133 10,968 27, Estimate 1,521 14,170 33,649 MARKETING DEMOGRAPHICS TEAM HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2016 Estimate $200,000 or More 25.56% 8.11% 7.03% $150,000 - $199, % 3.51% 3.60% $100,000 - $149, % 10.72% 10.99% $75,000 - $99, % 7.17% 8.50% $50,000 - $74, % 14.18% 16.87% $35,000 - $49, % 11.77% 12.79% $25,000 - $34, % 12.58% 12.23% $15,000 - $24, % 17.11% 15.39% Under $15, % 14.84% 12.60% Average Household Income $175,754 $83,706 $81,531 Median Household Income $111,948 $41,375 $46,069 Per Capita Income $86,356 $43,893 $38,250 POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population 25+ by Education Level 2016 Estimate Population Age 25+ 1,859 16,349 43,958 Elementary (0-8) 0.07% 2.24% 2.47% Some High School (9-11) 0.77% 6.26% 7.31% High School Graduate (12) 10.52% 24.64% 25.74% Some College (13-15) 19.90% 22.36% 23.50% Associate Degree Only 4.84% 6.75% 7.82% Bachelors Degree Only 39.06% 23.06% 20.35% Graduate Degree 24.75% 13.64% 11.66% Source: 2016 Experian 38

39 PROPERTY VERO BEACH NAME REDEVELOPMENT MARKETING DEMOGRAPHICS TEAM Population In 2016, the population in your selected geography is 2,255. The population has changed by -3.76% since It is estimated that the population in your area will be 2, five years from now, which represents a change of 1.24% from the current year. The current population is 49.58% male and 50.42% female. The median age of the population in your area is 60.53, compare this to the US average which is The population density in your area is people per square mile. Race and Ethnicity The current year racial makeup of your selected area is as follows: 97.79% White, 0.20% Black, 0.00% Native American and 0.88% Asian/Pacific Islander. Compare these to US averages which are: 70.77% White, 12.80% Black, 0.19% Native American and 5.36% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 3.07% of the current year population in your selected area. Compare this to the US average of 17.65%. Households There are currently 1,108 households in your selected geography. The number of households has changed by 2.03% since It is estimated that the number of households in your area will be 1,133 five years from now, which represents a change of 2.26% from the current year. The average household size in your area is 2.08 persons. Housing The median housing value in your area was $450,267 in 2016, compare this to the US average of $187,181. In 2000, there were 959 owner occupied housing units in your area and there were 126 renter occupied housing units in your area. The median rent at the time was $677. Income In 2016, the median household income for your selected geography is $111,948, compare this to the US average which is currently $54,505. The median household income for your area has changed by 5.91% since It is estimated that the median household income in your area will be $124,578 five years from now, which represents a change of 11.28% from the current year. Employment In 2016, there are 709 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 89.27% of employees are employed in white-collar occupations in this geography, and 15.14% are employed in blue-collar occupations. In 2016, unemployment in this area is 1.18%. In 2000, the average time traveled to work was minutes. The current year per capita income in your area is $86,356, compare this to the US average, which is $29,962. The current year average household income in your area is $175,754, compare this to the US average which is $78,425. Source: 2016 Experian 39

40 8 DEMOGRAPHICS 40

41 P R E S E N T E D B Y Ahmed Kabani First Vice President Investments Senior Director - National Hospitality Group Miami Office Tel: (786) Fax: (786) ahmed.kabani@marcusmillichap.com License: FL SL Garrick Benabe Agent Candidate Miami Office Tel: (786) Fax: (786) garrick.benabe@marcusmillichap.com License: FL SL Jesse Bajaj SIP Member - National Hospitality Group Miami Office Tel: (786) Fax: (786) jesse.bajaj@marcusmillichap.com License: FL SL