BEACHSIDE HIGH DENSITY REDEVELOPMENT OPPORTUNITY

Transcription

1 FOR SALE BEACHSIDE HIGH DENSITY REDEVELOPMENT OPPORTUNITY WITH CASH FLOW POSITIVE CLASS A OFFICE BUILDING PRESENTED BY: JOHN W.. TROST,, CCIMCIM Principal Senior Advisor john.trost@svn.com FL #BK PROPERTY HIGHLIGHTS 2.23+/- Acres Beashside Redevelopment Site Class A building on site with over 40,000 SF with current positive cash flow Across from the new oceanfront 501 room Daytona Beach Convention Hotel plus 128 Condominiums, under construction High visibility in the center of Beachside Business District Zoning is BR-2 (Business Retail-2), Estimate 500,000 SF Potential Located one block to the beach Walking distance to 109,600+ SF Ocean Walk Shoppes, Ocean Center, Sapporo Japanese Steak House, and Oyster Pub

2 DISCLAIMER The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of the SVN Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor. Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. This Offering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and Owner. The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the SVN Advisor nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto. To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk.

3 TABLE OF CONTENTS 1. PROPERTY INFORMATION 4 Executive Summary 5 2. LOCATION INFORMATION 6 Location Maps 7 Location Overview 8 Retailer Map 11 Map of Daytona Beach's Explosive Growth 12 Submarket Overview DEMOGRAPHICS 17 Demographics Map ADDITIONAL INFORMATION 19 News Articles 20 Additional Photos 27 Floor Plans 28 Floor Plans 29 Floor Plans ADVISOR BIO 31 Advisor Bio 32

4 1 PROPERTY INFORMATION

5 SECTION 1 PROPERTY INFORMATION Executive Summary SALE OVERVIEWVIEW SALE PRICE: $6,988,000 LOT SIZE: BUILDING SIZE: YEAR BUILT: /- Acres 500,000 Buildable SF PARCEL NO: ZONING: BR-2 Business Retail-2' PROPERTY DESCRIPTION Unique 2.23+/- Acre Beachside Redevelopment Site. Class A building on site with over 40,000 SF with current positive cash flow. Estimate 500,000 SF Redevelopment Potential. Across from the new oceanfront 501 room Daytona Beach Convention Hotel plus 128 Condominiums, under construction. High visibility in the center of Beachside Business District. Walking distance to 109,600+ SF Ocean Walk Shoppes, Ocean Center, Sapporo Japanese Steak House, and Oyster Pub. Located one block to the beach in an area of significant redevelopment. Approximately 7 miles to Interstate 95 and 1 mile to International Speedway Boulevard. LOCATION OVERVIEWVIEW Located at the northwest corner of Grandview Avenue and Oakridge Boulevard one block west of Atlantic Avenue. Just one block walk to the World's Most Famous Daytona Beach and beach access ramp. Located in NW quadrant of Atlantic Avenue and Oakridge Boulevard. Zoning is BR-2 (Business Retail-2). Non-Residential Development FAR 3.0 Residential Density 40 units per acre. 5

6 2 LOCATION INFORMATION

7 SECTION 2 LOCATION INFORMATION Location Maps 7

8 SECTION 2 LOCATION INFORMATION Location Overview LOCATED JUST MINUTES TO: $192,000,000 Daytona Beach Convention Hotel & Condominiums 501 hotel rooms & 128 condo units. 1.1 Million SF on 4.5 acres, plus 517 space parking garage. Across Atlantic Avenue from the Redevelopment Site. Proposed $40,000, room Hard Rock Hotel at 900 N. Atlantic Avenue, approximately 4 blocks north of the Redevelopment Site Daytona International Speedway and International Speedway Corporation 190,000 SF Headquarters 8

9 SECTION 2 LOCATION INFORMATION $46,000,000 Tanger Factory Outlet Center - 350,000 SF built on 39 acres projected to generate 900 full and parttime jobs. Opened $800,000,000 One Daytona mixed-use project, estimated 7,200 new jobs. Projected open November Bass Pro Shops and Cobb Daytona Luxury Theatres now open. LPGA Golf Course & Jimmy Buffett's Latitude Margaritaville proposed 6,900 new homes 9

10 SECTION 2 LOCATION INFORMATION Buc-ee s planned 120-pump, 50,000 SF convenience store on LPGA Boulevard LandShark Bar & Grill and Cocina 214 restaurants planned for beachside Embry-Riddle Aeronautical University and Embry Riddle $12,000,000 Research and Technology Park 944 Bed Halifax Health Medical Center Daytona International Auto Mall 18 Auto Dealerships including Ford, Dodge, BMW, Maserati, Infiniti & Mini Cooper Trader Joe s $80,000, ,000 SF distribution warehouse 450 new jobs being created Daytona Beach International Airport Daytona State College - more than 33,000 Students annually and 1,797 employees Bethune-Cookman University - Faculty and Student Body of more than 3,500 International Speedway Boulevard Commercial Corridor and Interstate 95 $246,300,000 new Interchange - under construction 10

11 SECTION 2 LOCATION INFORMATION Retailer Map 11

12 SECTION 2 LOCATION INFORMATION Map Of Daytona Beach's Explosive Growth 12

13 Submarket Overview Daytona Beach, FL Home of the World s Most Famous Beach. Located just a short distance from the Redevelopment Site was once the home to presidents and wealthy entrepreneurs, Downtown Daytona Beach is the core of this historic city. Downtown's main promenade Beach Street is lined with over 60 shops and eateries. Every season fans fill up the stands to see Daytona Tortugas play in the historic Jackie Robinson Stadium on the waterfront. Beach Street has museums, exhibits, outdoor festivals, water activities, nightclubs, cafes and Florida's oldest Saturday Farmer's Market. Downtown Daytona Beach is the only neighborhood in Daytona Beach where you can see a Broadway play, stop by the Halifax Historical Museum, enjoy the Daytona Beach International Festival, catch a baseball game, photograph the manatees, launch your boat, shop and dine out with friends all within walking distance. Daytona International Speedway has completed a $400 million renovation. The home to Daytona 500 and several other NASCAR events including the Nextel Cup and Pepsi 400. Its 480 acre complex makes it the largest venue for motor sports in the world. It s also one of the busiest with 10 major racings weekends a year, not to mention many civic functions, bike and car shows. A 200 room Hard Rock Hotel and Café is planned for the oceanfront opening in Projected to cost over $40 million. Protogroup Inc. has under construction a $192 million 501 room hotel and 128 condominiums near the Ocean Center. The One Daytona $800 million mixed-use project of shops, restaurants, hotels, and apartments across the street from Daytona International Speedway that promises to lure big-name businesses and create more than 7,200 new jobs. The first phase of the project will include 300,000 SF of retail, dining, and entertainment including Bass Pro Shops, Cobb Theatres, two hotels, and 300 apartment units. Tanger Factory Outlet Center has built a 350,000 SF outlet center providing more than 900 full and part-time jobs. National grocery store chain Trader Joe s has built an 800,000 SF distribution center providing more than 450 jobs to the area. Minto Communities purchased 3,300 acres at LPGA Boulevard for 6,900 plus proposed homes at Jimmy Buffett s Latitude Margaritaville. The Halifax River Yacht Club has over 600 members. The Grand Old Lady that had served so well for over a century was demolished in 2005 and the over $2,000,000 new 20,000 plus square foot 2 story clubhouse was constructed to serve the larger membership. The Daytona International Auto Mall 18 Auto Dealerships including Ford, Dodge, BMW, Maserati, Infiniti, Mini Cooper, and more. Proposed 140,000 sf Sam s Club within the 186+/- acre in Tomoka Town Center. $246.3 million for a new interchange at Interstate 95 and Interstate 4, under construction. SECTION 2 LOCATION INFORMATION Proposed Buc-ee s 50,000 SF store with 120 gas pumps on the north side of LPGA Blvd just east of I

14 Submarket Overview Daytona Beach, FL SECTION 2 LOCATION INFORMATION The $13 million Cici and Hyatt Brown Art Museum will be the new 26,000 SF home for the Brown s extensive collection of more than 2,700 Florida oil and watercolor paintings. The Halifax River Yacht Club has over 600 members. The Grand Old Lady that had served so well for over a century was demolished in 2005 and the over $2,000,000 new 20,000 plus square foot 2 story clubhouse was constructed to serve the larger membership. The Halifax Harbor Marina is a 550 slip, wet slip marina located in Daytona Beach, Florida. The marina is owned by the City of Daytona Beach. HH provides year round docking facilities for boaters seeking a permanent slip. Halifax Harbor Marina is considered one of America s finest marina facilities. It has been honored as Marina of the Year by Marina Dock Age, a marina business publication. The $20 million Daytona State College - News Journal Center is situated on the banks of the Halifax River in historic downtown Daytona Beach. The News-Journal Center is the perfect venue for medium-scale musical and theatrical performances, as well as conferences, graduations and other mid-sized events. With its striking façade and 40 foot windows overlooking the Halifax River, the News Journal Center serves both as a riverfront landmark and an economic engine for downtown. The three-story, 98,000 SF building has a visual arts gallery, an 860 seat proscenium theater with orchestra pit, and a 260 seat studio theater. Daytona State College is committed to providing our community high quality entertainment and educational experiences in this unique downtown venue. The entire theater is equipped with state-of-the-art theatrical, communication and data technology. The main DSC campus serves more than 33,000 students annually and employs 1,797 people. The ever expanding Bethune-Cookman University with a faculty and student body of more than 3,500. Founded in 1904 as training school, then 1923 it became a co-ed high school. Embry-Riddle Aeronautical University which boasts over 6,000 faculty and student body is located on the edge of Daytona International Airport. Construction has begun on the $30 million Aerospace Research and Technology Park adjacent to the airport on approximately 90 acres, in addition to the $28 million College of Arts and Sciences building on campus and will house the largest university owned telescope in Florida Halifax Health Medical Center of Daytona Beach a 944-bed hospital. All major medical and surgical services are available. The 24-hour emergency department (ED) includes the area's only Level II Trauma Center and the only Pediatric ED. It also features "fast-track" services for less critical injuries. The 4th largest employer in the area with 3,957 employees. Nearly 500,000 residents in the Daytona Beach metro area and 8 million visitors enjoy moderate weather, quality educational choices, exceptional recreational activities, an active arts community and, of course, one of the most beautiful, family-friendly beaches in Florida. 14

15 Submarket Overview Daytona Beach, FL SECTION 2 LOCATION INFORMATION Education, health care and government are the area s largest employers. Among the numerous corporate partners that call Daytona Beach home are: NASCAR and International Speedway Corporation - ISCA Ladies Professional Golf Association LPGA International Gambro-Renal Products (medical manufacturing) Brown & Brown, Inc. (insurance) - BRO Enrichment Industries (Vocational rehabilitation/manufacturing/assembly) Teledyne Oil and Gas (Engineered solutions for sub/sea pipeline) - TDY Advanced Ordnance (military Hardware) X1R (auto lubricants) Raydon (simulators) Piedmont Plastics, Inc. (plastics manufacturing) Embry-Riddle Aeronautical University (aviation-aerospace education) Halifax Community Health Systems (hospitals/health care) Florida Hospital Volusia-Flagler (hospitals/health care) Consolidated-Tomoka Land Co. (land development) - CTO Ocean Design (subsea Electrical and fiber-optic interconnect systems) Stonewood Holdings (Restaurant management) 15

16 Employment Drivers SECTION 2 LOCATION INFORMATION Part of a greater metropolitan area of East Central Florida, the City of Daytona Beach is situated at the confluence of two major interstate highways that provide quick, easy access to the third largest consumer region in the United States with a population of more than 17 million. International airports in Daytona Beach and Orlando, railroad and nearby port facilities enhance Daytona Beach s efforts to provide a cost-effective and logistically important location to do business while providing an exceptional quality of life. Daytona Beach is the regional commercial and cultural hub of the Deltona-Daytona Beach-Ormond Beach MSA with a population of 545,451. Beautiful ocean beaches bring worldwide acclaim. More than eight million tourists a year visit the area. Quality roads, miles of beautiful tree-lined streets through picturesque neighborhoods and street beautification programs are national models and reflect the pride of residents. Based on the 2004 Survey of Buying Power, the Orlando/Daytona Beach/ Melbourne, Florida media market is ranked 20th in population with 3.24 million people. It is also ranked 20th in Total Effective Buying Income (EBI) with $61.3 billion. Daytona Beach is a regional marketplace, giving way to a diverse group of highly successful retail businesses, manufacturing plants and associations. The city is an integral segment of the I-4 high-tech corridor with specialized industries in aerospace, automotive and manufacturing. Companies and their employees profit from a relatively low cost of living, steady economic growth and the benefits of well-planned development. Companies profit from available labor; training; an area designated as an enterprise zone; and quality public services. VOLUSIA COUNTY MAJOR EMPLOYERS COMPANY INDUSTRY EMPLOYMENT Volusia County Schools Education 8,080 Florida Hospital Volusia-Flagler Market Healthcare 4,248 Halifax Health Healthcare 3,957 Volusia County Government Government 3,280 Publix Grocery 2,486 State of Florida Education 2,361 U.S Governement Government 1,422 Embry-Riddle Aeronautical University Education 1,176 16

17 3 DEMOGRAPHICS

18 SECTION 3 DEMOGRAPHICS Demographics Map POPULATION 3 MILES 5 MILES 10 MILES TOTAL POPULATION 46,839 10, ,842 MEDIAN AGE MEDIAN AGE (MALE) MEDIAN AGE (FEMALE) HOUSEHOLDS & INCOME 3 MILES 5 MILES 10 MILES TOTAL HOUSEHOLDS 1,960 17,055 40,133 # OF PERSONS PER HH AVERAGE HH INCOME $44,841 $48,140 $59,770 AVERAGE HOUSE VALUE $259,746 $175,775 $176,330 18

19 4 ADDITIONAL INFORMATION

20 Sky High: Work begins on Daytona s tallest, most expensive hotel/condo project By Clayton Park Posted Mar 7, 2017 at 12:26 PM Updated Mar 7, 2017 at 9:44 PM Protogroup s 2-tower convention hotel/condo complex to have 380-foot tower DAYTONA BEACH The rumble of earth-moving machines can be heard at the east end of Oakridge Boulevard as excavation work is now underway for the most expensive and tallest beachside development ever built in Daytona Beach. Protogroup s planned nearly $192 million Daytona Beach Convention Hotel & Condominiums complex will consist of two towers, one rising 380 feet, the other rising 320 feet, confirmed Gregory Portman, president of Atlanta-based PFVS Architecture, the project s designer. The north tower of the Protogroup project would also be significantly higher than the 342-foot-tall Peck Plaza in Daytona Beach Shores, currently the greater Daytona area s tallest building. Peck Plaza includes the Top of Daytona restaurant.

21 In terms of cost, the Volusia County-run Ocean Center convention complex, by comparison cost $76 million to build in 1985 and was expanded in 2009 at a cost of an additional $82 million, putting its total cost at $158 million. The total cost of the Protogroup project, including the $6.9 million six-story 517-stall parking garage nearing completion across the street from the future Daytona Beach Convention Hotel & Condominiums, would bring the total cost of the project to nearly $199 million. Graham Currie, project executive for Yates Construction, the general contractor for the Protogroup hotel/condo complex, said excavation work on the 4½ acre site began Saturday. The pouring of the 100- foot-deep concrete-and-rebar piles that will anchor the foundation is expected to begin next week with vertical construction of the 27- story south tower, where the majority of the 501-room hotel will be, expected to begin 5½ months from now. Everything s on track, said Currie of the timeline for completing the 27-story south tower by summer The 31-story north tower, which will include 42 hotel rooms and all 122 units of the condo portion of the project is slated to be completed in The 1.13 million-square-foot complex roughly the same size as Volusia Mall will be connected by an enclosed, air-conditioned pedestrian walkway that will be built over the existing beach access road at the east end of Oakridge Boulevard. The complex will include an 11-story mid-rise connected to the south tower.

22 The complex will also feature street-level retail shops along State Road A1A, a 7,000- square-foot hotel restaurant and 18,000 square feet of banquet and meeting space. By comparison, the Hilton Daytona Beach Oceanfront Resort offers 60,000 square feet of meeting space. The north tower will include 276 parking spaces, primarily for condo residents, said Portman. Both towers will also have swimming pools on the east side, between the towers and the beach, he added. Protogroup is a Palm Coast-based family-run company whose owners are Alexey Lysich, vice president, and his father and brother. All three are Russian citizens, but Lysich moved to Palm Coast with his family six years ago and is a full-time resident here who plans to become a U.S. citizen. Lysich s father and brother also have homes in Palm Coast, but split their time between here and St. Petersburg, Russia, where they maintain their primary residences. Protogroup also owns a Day s Inn hotel in Palm Coast. The family separately owns several businesses in Russia, including supermarkets and hotels, but those businesses are not affiliated with the Palm Coast company, Lysich said in an interview earlier this month. Several area business and civic leaders commissioned a study by Fishkind & Associates in 2012 that determined a need for a second convention hotel to be built next to the Ocean Center, in addition to the 744-room Hilton Daytona Beach Oceanfront Resort, across the street to the east. Frank Bruno, the then-volusia County chair, was one of those local leaders. Bruno, now a Realtor with Keller Williams in Port Orange, said the Protogroup project goes a long way toward fulfilling that study, adding, I like the fact that it s going to be only a five-minute walk to the Ocean Center. That said, Bruno added: I still maintain that the city and county should come together to build a parking garage and convention hotel that could directly connect to the Ocean Center on the south side, either to the east or west of the Peabody Auditorium. With conventions like the Shriners coming to town, there will be a need (for more hotels).

23 Hard Rock Hotel back with new Daytona plan By Clayton Park Follow Posted Apr 6, 2017 at 9:20 AM Updated Apr 6, 2017 at 11:16 AM DAYTONA BEACH A Hard Rock Hotel may be coming to the World s Most Famous Beach after all. Eight months after Canadian developer Bayshore Capital suspended plans to develop an oceanfront hotel/condominium complex that would have included a Hard Rock Hotel, another developer has stepped up with plans to bring the iconic hotel brand to Daytona Beach. The local developers who have been renovating the former Desert Inn with plans to reopen it as a four-star Westin Hotel this summer went to the Volusia County Council Thursday seeking approval to convert the oceanfront property instead to a Hard Rock Hotel. Summit Hospitality Management Group is also seeking approval to extend their May 7 deadline with the county for opening the new 200-room hotel at 900 N. Atlantic Ave. to Dec. 31. Council members, who applauded the news of the Daytona Beach-based hotel development company s plans at their meeting Thursday, are expected to decide the matter at their April 20 meeting.

24 Volusia County Chair Ed Kelley is already on board, noting that the proposed switch still brings a highend luxury hotel to Daytona Beach s beachside, an area that has been in great need of revitalization. You d be getting a quality brand that would be a destination, Kelley said, adding that it could give the beachside area a much-needed lift. This will be so exciting that it will drive tourism to a level we ve never seen before. Fellow council members quickly added their support. This is something that can get things (on the beachside) really going, Councilman Pat Patterson added. Summit managing member Abbas Abdulhussein said his company had a letter of intent with Hard Rock and hoped to complete the deal soon, after the county signs off on the change. The goal, he said, remained securing a high-quality hotel for the Daytona area. The Hard Rock, like the Westin, would be just the second four-star hotel in the area. We invested and believed in Daytona when pretty much nobody else did, Abdulhussein said. We saw a flight toward quality.... People were willing to pay more for quality. Summit has been doing business in Daytona Beach since 2007 when it purchased what was then the Inn on the Beach at 1615 S. Atlantic Ave. Since then it has acquired several other area hotels and recently proposed a plan to renovate the historic Putnam Inn in DeLand. Kelley and Abdulhussein met Wednesday with The News-Journal s editorial board to discuss the proposed changes along with a few others close to the project. Abdulhussein said his family-run company decided to terminate its agreement with Westin after Starwood Hotels & Resorts, which owns that hotel brand, was sold in September to Marriott International. Marriott already owns several hotels in the Daytona Beach area, with plans to add more. Abdulhussein said it was important to his company to align with a luxury hotel brand that would be exclusive to the area, something that Starwood, which had no hotels here, could have provided, but not Marriott. Hard Rock, on the other hand, fits that bill as it has only 24 hotels worldwide, including three in Florida: in Orlando, where the hotel chain is based, Tampa and Hollywood, he said. We found the one brand we re comfortable with and that s already approved by the County Council, Abdulhussein said. We re going to be a Hard Rock moving forward. Daytona Beach was in line to get a Hard Rock Hotel until last August when Bayshore Capital halted efforts to develop its proposed oceanfront hotel/condo complex just south of SunSplash Park. The reasons: slower-than-hoped for presales of the condo units as well as lengthy delays caused by lawsuits from citizens groups opposed to the county s agreements to make the sections of beach trafficfree behind both Bayshore and Summit s planned hotels.

25 Unlike Bayshore s now-scrapped development, Summit s project will remain strictly a hotel, Abdulhussein said. Abdulhussein added that Bayshore Capital Chairman and CEO Henry Wolfond in recent months encouraged his company to pursue the Hard Rock Hotel brand. Summit needs county approval to change the brand of its planned hotel and to extend the deadline for opening to satisfy the council s conditions for designating the beach behind the hotel traffic free, said Jamie Seaman, the deputy attorney for the county who also met with The News-Journal s editorial board. Abdulhussein said his company s hotel would be operated by Hard Rock Cafe International Inc., with his company remaining the owners of the property. The hotel under the new flag would also remain for the most part the same as originally planned: with 200 rooms and two restaurants; nearly 20,000 square feet of meeting space that will include a 6,300-square-foot banquet hall capable of hosting special events and concerts; a 5,000-square-foot spa; and a kids activity area. The rear of the hotel facing the beach will include a large deck stretching most of the length of the building, as well as outdoor gazebos and cabana suites with direct pool access and private hot tubs. The hotel will include underground parking that can accommodate up to 250 vehicles. Abdulhussein said some of the hotel s indoor public areas would need to be reconfigured to meet Hard Rock s requirements. According to its website, Hark Rock Hotels typically include amenities such as a Rock Spa that offers a full-service spa with a musical twist; kids and teen activities; a Rock Shop that includes clothing, accessories and music-inspired souvenirs; the ability for guests to create personalized music playlists in their rooms; and dining and nightlife activities. Some of the chain s locations include a Hard Rock Hotel club featuring live music. In a letter to the county explaining Summit s requested changes, Alex Ford, the developer s attorney, wrote, My client feels Hard Rock is a better fit for this project and for this community. In fact, it was originally my client s desire to pursue an affiliation with Hard Rock, but that brand was not available at the time. Hard Rock provides a level of exclusivity as was originally contemplated with Westin. Ford added that the proposed change of brand would be a great win for the county that builds on the legacy of Daytona Beach. The request to extend the deadline for completing the new hotel stems from Summit s need to make more extensive repairs to the aging former Desert Inn than initially anticipated as well as delays caused by construction labor shortages and a power outage related to Hurricane Matthew. Abdulhussein said the cost of construction, originally projected to be around $30 million, is now expected to exceed $40 million.

26 Summit paid $6 million to acquire the 1950s-era Desert Inn in September 2013 and closed it later that year to begin renovation work. The Desert Inn, prior to Summit s purchase, had become rundown with a reputation for crime including the 2011 arrest of the then-owner s son. That same year, travel website TripAdvisor ranked the Desert Inn the third dirtiest hotel in the United States. Abdulhussein said his company bought the Desert Inn because they believed in Daytona but saw a dearth of quality (hotels) on the beach. He said he believes people would be willing to pay a little extra to stay at a quality hotel. We ve got an immense asset here... a beautiful beach and an affordable place to go for families. After the original Hard Rock deal fell through, Dinneen said he sensed skepticism from some in the community that the area could attract the kind of top-flight development that could be a catalyst for improvement along Daytona Beach s beleaguered beachside. This deal will change that perception, Dinneen predicted, though he resisted calling it a game-changer. This will be a name-changer, he said. Staff Writer Dustin Wyatt contributed to this report.

27 SECTION 4 ADDITIONAL INFORMATION Additional Photos 27

28 SECTION 4 ADDITIONAL INFORMATION Floor Plans 1 FIRST FLOOR PLAN 2 SECOND FLOOR PLAN 28

29 SECTION 4 ADDITIONAL INFORMATION Floor Plans 3 THIRD FLOOR PLAN 4 FOURTH FLOOR PLAN 29

30 SECTION 4 ADDITIONAL INFORMATION Floor Plans 5 FIFTH FLOOR PLAN 30

31 5 ADVISOR BIO

32 SECTION 5 ADVISOR BIO Advisor Bio John W. Trost, CCIM Principal Senior Advisor SVN Alliance Commercial Real Estate Advisors WORKING IN COMMERCIAL REAL ESTATE SINCE 1985 IT IS ALL ABOUT YOU! Your dreams, your needs, and your time. Working with you, on your team as agent and advocate from the beginning through to closing. Seasoned professional with the education, designation, and experience. Bachelor of Business Administration - Degree in Finance from the University of Central Florida, the coveted Certified Commercial Investment Member (CCIM) designation, and the hands-on experience working with business professionals, developers, and investors. Memberships & Affiliations International Council of Shopping Centers CCIM Institute FL #BK Phone: Fax: Cell: john.trost@svn.com Address: 1275 West Granada Boulevard Suite 5B Ormond Beach, FL A recognized leader with over 30 years experience in Commercial Real Estate Sales and Leasing. During that time working with developers, financial institutions, and property owners to maximize their returns and leverage their time in land and investment property sales from multifamily sites and subdivisions, to large and small retail shopping centers and office complexes, and church properties across Florida. As well as extensive experience in office and retail leasing to numerous national, regional, and local tenants. Involved and a tremendous supporter of various youth and high school sporting activities, including weightlifting, football, basketball, and golf. Served on the board of local Pop Warner Football, High School Quarterback Club, and other non-profit organizations. With tremendous growth and interest in the Volusia-Flagler market, you too can benefit from the strength of a commercial broker with the expertise and integrity to maximize your dollars and your time. 32