MERIDIAN HOUSE. Offering Memorandum H O T E L Meridian Avenue Offered for Sale for a Limited Time $4,995,000. Neal R. Deputy

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1 MERIDIAN HOUSE H O T E L illa Offering Memorandum Neal R. Deputy 1545 Meridian Avenue Offered for Sale for a Limited Time $4,995, Lincoln Road Miami Beach, FL Cell: (305) Fax: (305) nealdeputy@gmail.com

2 CONTENTS CONTENTS Meridian House- Heated Pool Cover Contents Introduction Location & Environs Map Property Description Site Plan Building Plans Exterior Photographs Interior Photographs 2017 Income & Expenses Comparable Market Activity About South Beach About Miami Notes to Bidders

3 INTRODUCTION INTRODUCTION The Meridian House offers the Investor, Developer, or Connoisseur the rare opportunity to own the ultimate Private Villa in South Beach- Playground to the rich and famous and the world s entertainment mecca. Meridian House has been operating as an income generating hospitality business for the past five years, and the property has been renovated in the last year to secure a City of Miami Beach short-term rental license as a Hotel/B&B Inn. All the infrastructure of the property has been updated to current code, including new impact windows, sprinkler system, fire alarm system, and ADA compliant facilities. The Meridian House facilitates several service offerings for an operator to provide to guests seeking privacy and luxury accommodations: Exclusive Luxury guest house for established hotel groups in South Beach Bed and Breakfast Inn (owner Occupied or Stand Alone) Vacation Rental Programs such as Hilton Vacations and Luxury Living Corporate retreats and team building accommodations Specialty operators such as Holistic Lifestyle and Life Cleansing Programs Special Events facility adjunct to local hotel operators Seasonal Owner User, allowing for off season short term rentals The property s unbelievable location, extraordinary level of finish and impressive income stream make this an once-in-a-lifetime opportunity. As home to the current owner for 15 years a staggering amount of love and care have gone into making this a one-of-a-kind showpiece. Pride of place is evident in every aspect of this luxurious hospitality property. All operating licenses for city, county, and state are current and provides the operator a rare opportunity to be one of 5 licensed B&B operators in Miami Beach. In Fact, there are only 20 legal short term rental properties in the City of Miami Beach with current regulations. This opportunity provides a new operator an immense green field for enhancing the current offering tailored to your business needs and objectives, while having limited competition (if any at this level). While operating for the past five years, its financial performance was enhanced with the recent renovations. The current Gross Income for the first half of 2017 was $260,525 USD, with annual projection of $520,000. In light of limited marketing and competition, the property offers a tremendous upside for product specific accommodations. Additionally, many client services, luxury products, food and beverage can layer considerable income for increased revenue. 03

4 LOCATION & ENVIRONS MAP Sailing the Bay MERIDIAN HOUSE Miami Beach Bayshore Municipal Golf Course Miami Beach Convention Center Tennis? Collins Avenue Alton Road Lincoln Road Mall Ocean Drive 04

5 PROPERTY DESCRIPTION The Meridian House was designed by Architect B. K. Hall and built by Bristol Construction in B. K. Hall was responsible for numerous designs in the Art Deco Historic District most notably the Villa Mara and the St. George Hotel. Known for his spacious rooms and elegant floor plans the Meridian House does not disappoint. From the first glimpse of Meridian House one is captivated by the opulent charm and ease that permeate the building and grounds. No expense was spared in the total renovation of this historic masterpiece and it is the product of years of careful research and restoration by the current owner. Extraordinary craftsmanship and an almost obsessive attention to detail are the hallmark of this historic home. The exquisite materials, finishes, and fixtures make every room, every space, every nook and cranny an absolute delight. There is absolutely nothing else like it available in today s marketplace. HIGHLIGHTS -The first floor of the Meridian House comprises the Master Bedroom and Master Bath along with the expansive Living Room and Dining Room overlooking the Pool. The modern Chef s Kitchen, Pantry, and Steam/Powder Room complete this entertainment wonderland. PROPERTY DESCRIPTION & HIGHLIGHTS 05 -The second floor of the Meridian House comprises four generous bedrooms and two sumptuous baths. Guests may also relax in the Media Room, Bar, Parlor, or Florida Room. There is a place for everyone and no guest s needs have been overlooked. -The grounds have been meticulously maintained and are characterized by mature tropical landscape. The heated sculptural pool forms the centerpiece of the private garden with ample deck space for taking the sun, dining, or just enjoying the resplendent environment. -The home is fully outfitted with central heat and A/C, broadband cable, and wireless internet. -High ceilings, exquisite furnishings, floors, and artwork create a uniquely inviting environment where comfort and repose are inescapable. -Add to this its central location, just steps from everything South Beach has to offer and this is truly a one-of-a-kind, once-in-a-lifetime opportunity to own the very, very best.

6 SITE PLAN SITE PLAN 06 06

7 FIRST FLOOR PLAN FIRST FLOOR PLAN 07 07

8 SECOND FLOOR PLAN SECOND FLOOR PLAN 08 08

9 EXTERIOR PHOTOGRAPHS Meridian House from the street with ample on-site parking New operable windows (impact rated) allow for nighttime breezes and ease of maintenance Lushly Landscaped Courtyard and Heated Pool 09 09

10 EXTERIOR INTERIOR PHOTOGRAPHS Beautifully appointed Ground Floor Living Room Modern Chef s Kitchen with Bar overlooks the Dining Room Pantry with all of life s essentials adjacent to Kitchen 10

11 INTERIOR PHOTOGRAPHS Second Floor Lounge/Media Room with adjacent Wet Bar Second Floor Wet Bar centrally located to Media Room, Salon, and Bedrooms Second Floor Bedroom #3 11

12 INTERIOR PHOTOGRAPHS Second Floor Salon with Business Services designed for quiet relaxation Four Bedrooms are corner located for maximum light, breeze, and views Luxurious Master Bathroom features Oversized Shower Room 12

13 INTERIOR PHOTOGRAPHS Entry Foyer retains original iron railings and wood detailing Second Floor Bedroom #2 Powder Room On First Floor with Steam Feature 13 13

14 2017 INCOME & EXPENSES 2017 INCOME & EXPENSES Income: Expenses: Rental Income $314,537 PROPERTY TAXES $7,272 INSURANCE $12,410 LICENSING FEES $600 WATER & SEWER $4, Weekly Rates NATURAL GAS $1,200 High Season $9,500 ELECTRIC $4,898 Mid Season $8,500 HOUSEKEEPING $10,800 Low Season $7,500 LAUNDRY $7,200 REPAIRS & MAINT $6,000 Event Weekends Add $185,000 LANDSCAPE $1,200 POOL SERVICE $2,400 Blended Rate at 90% $12,500 PEST CONTROL $720 INTERNET $1,680 LEGAL/ACCOUNTING $500 MANAGEMENT $20,000 Total Income: Total Expenses: Monthly Average $52,423 Monthly Average $13, Total $314, Total= $81, NOI = $233,157 Asking Price= 4.67% Hurricane Irma in September of 2017 eliminated significant revenue thru December Additionally, restart following 2016 renovations was also somewhat slow as anticipated. However, the Meridian House s expanding global popularity, repeat clientele, and singular allure produced a quick recovery and restabilization at robust levels of return. 14

15 COMPARABLE MARKET ACTIVITY. COMPARABLE MARKET ACTIVITY ADDRESS STATUS PRICE SF $/ SF BDs/Bs BUILT 1350 Collins Ave SOLD $7,500,000 5,188 $1,446 5/ Inferior Location No Pool No Parking Loud Environs Orchid House 1415 Euclid Aave Active $16,925,000 13,136 $1,288 5/ Inferior Location Spatially Inefficient Event Space Only 354 Washington Ave SOLD $5,150,000 5,916 $871 13/ Inferior Location No Parking Lacks Privacy Temple House 1018 Jefferson Ave Active $4,500,000 3,956 $1,138 11/ Inferior Location No Parking Restricted Use 1545 Meridian Ave Subject $5,735,000 3,324 $1,725 5/ Superior Location Exquisite Pool Parking for 8 Cars Totally Private VILLA ITALIA So Be It Meridian House TOTAL: $39,810,000 31,520 AVERAGE: $7,962,000 7,880 $1,293 15

16 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 Modern, 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 16

17 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 an 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. 17

18 NOTES TO BIDDERS NOTES TO BIDDERS Guests are not to be disturbed. Viewings of the interiors will only be arranged following an owner accepted Letter of Intent. See attachments. 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 very profitable investment opportunity in one of South Beach s most exclusive and sought-after locations. Furthermore, the unused FAR and additional development rights add significant value to the subject property as up to 6,175 square feet are allowable by-right on the site. Real Estate deals in South Beach tend to fall into very low cap rate long term equity plays. Furthermore, available inventory is virtually nonexistent in South Beach and most deals currently being presented produce very low returns. The Meridian House provides a solid investment for the discerning investor with tremendous upside potential and long-term value. 18