SPARK. Offering Memorandum. Shovel Ready Project

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1 SPARK Offering Memorandum Shovel Ready Project

2 NON-ENDORSEMENT AND DISCLAIMER NOTICE NON-ENDORSEMENTS 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 Marcus & Millichap. All rights reserved. W OFFICES NATIONWIDE AND THROUGHOUT CANADA

3 SPARK SHOVEL READY PROJECT PRESENTED BY

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5 SPARK Shovel Ready Project TABLE OF CONTENTS 06 PROPERTY ANALYSIS 24 MARKET ANALYSIS 12 INVESTMENT OVERVIEW 36 MARKET ANALYSIS 14 FINANCIAL ANALYSIS 50 OVERVIEW 18 SALES COMPARABLES PRESENTED BY

6 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID Z

7 PROPERTY ANALYSIS SPARK spark g

8 INVESTMENT OVERVIEW Marcus & Millichap is pleased to present, Spark a 56 unit condominium project located at 534 NE 34th St. Spark is designed for the person that wants luxury living in Miami with an intimate feel. There are only three units per floor and 56 totals in the building. This offers people a more exclusive setting with several amenities including yoga garden, gym, BBQ area with summer kitchen, screening room, music room, and indoor/outdoor social room. The building offers a tranquil setting with a modern and leek design with industrial touches and artwork that inspires. spark This is a shovel ready project, meaning that a developer needs to pay the permit and impact fees and start construction, all plans have been approved. The project consists of ground floor retail, four levels of parking on floors two through five, recreation level with pool on sixth floor, units start on floor seven through 25, two penthouses on floor 26 and the sky terrace at the roof top. There are three types of units, three beds three bath at 1,862 square feet, two-bedroom two bath with a den at 1,490 square feet and one bedroom one bath at 955 square feet. Located close to Design District/Midtown, Wynwood, Downtown and Miami Beach. The project located in the Edgewater district of Miami, which runs along Biscayne Bay. The project sits approximately 500 feet from the water where the city plans to build a boardwalk along the bay. The area is mostly made up of new condominium projects that are bringing in thousands of new residences. The area is within blocks of the Design District, Midtown Shops, Wynwood and the Arts and Entertainment area home to the Adrienne Arsht Center for the Performing Arts. This location offers ease of access to the I-195 which leads to the Miami International Airport and Miami Beach, each about 15 minutes away. 8

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10 PROPERTY DETAILS SPARK Shovel Ready Project Price for Project $7,000,000 Property Address 522 NE 34th Street, Miami, Fl, Number of Units 56 Number of Buildings 1 Property Type Lot Size Land Acres / 16,465 sf spark Parking 99 Max Height 27 Stories Bicycle Parking 9 FAR 12 10

11 Regional Map Delete this after map is inserted spark 11

12 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID Z

13 FINANCIAL ANALYSIS SPARK spark 13

14 SALES PROJECTIONS spark 9% Type Unit # Units SQF SQFT Price x SQF Average Unit Price Gross Revenue Commissions Net Income 3BR/3BA 18 1,862 33,516 $ 550 $ 1,024,100 $ 18,433,800 $ 1,659,042 $ 16,774,758 2BR/2BA+DEN 18 1,490 26,820 $ 575 $ 856,750 $ 15,421,500 $ 1,387,935 $ 14,033,565 1BR/2BA ,190 $ 600 $ 573,000 $ 10,314,000 $ 928,260 $ 9,385,740 PH1 1 4,634 4,634 $ 775 $ 3,591,350 $ 3,591,350 $ 323,222 $ 3,268,129 PH2 1 4,422 4,422 $ 775 $ 3,427,050 $ 3,427,050 $ 308,435 $ 3,118,616 Commercial 1 2,000 2,000 $ 450 $ 900,000 $ 900,000 $ 81,000 $ 819,000 $ 52,087,700 $ 4,687,893 $ 47,399,807 Extras Parking (14) $ 490,000 $ 44,100 $ 455,700 Warehouse (30) $ 150,000 $ 13,500 $ 139,500 Extras Total $ 640,000 $ 57,600 $ 595,200 Total $ 52,727,700 $ 4,745,493 $ 47,982,207 Commissions includes marketing 14

15 CONSTRUCTION COST Hard Cost General Conditions $ 2,377,635 Site Work $ 1,404,323 Concrete $ 7,406,641 Metals $ 930,167 Carpentry $ 1,153,600 Waterproofing & Damp proofing $ 305,616 Doors & Frames $ 3,407,536 Plaster - Title - Lath - Stucco $ 1,719,800 Specialties $ 126,400 Equipment $ 296,800 Pool & Spa $ 185,000 Elevator $ 869,000 Mechanical $ 2,919,707 Electrical $ 2,002,000 Total $ 25,104,225 spark Soft Cost Architects & Engineers Fees** $ 90,000 Civic General Liability $ 263,594 Real Estate Taxes 2 Yr. Est. $ 150,000 Legal Services $ 250,000 Consulting Fees* $ 150,000 Total Impact & Permits Fees* $ 1,035,803 Finance 5.5% on $15M for 18 Months $ 1,125,000 General Overhead Costs $ 200,000 Contingency 5% $ 1,250,000 *estimate $ 4,514,397 **mostly paid with plans and approvals Total Construction $ 29,618,622 15

16 INVESTMENT SUMMARY spark 16

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18 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID Z

19 COMPARABLES SPARK spark 19

20 SALES COMPARABLES SALES COMPARABLES SALES COMPS AVG 2020 N BAYSHORE DR 2020 N Bayshore Dr, Miami, FL, Sales Price: $665,000 Price/Unit: $665,000 Price/SF: $ Total No. of Units: 1 Year Built: 2010 spark BISCAYNE BEACH 2900 NE 7th Ave #505, Miami, FL, Sales Price: $865,000 Price/Unit: $865,000 Price/SF: $ Total No. of Units: 1 Year Built: N BAYSHORE DR 2020 N Bayshore Dr, Miami, FL, Sales Price: $980,000 Price/Unit: $980,000 Price/SF: $ Total No. of Units: 1 Year B uilt:

21 SALES COMPARABLES BISCAYNE BEACH 2900 ne 7th Ave #3007, Miami, FL, Sales Price: $1,350,000 Price/Unit: $ 1,3 50,000 Price/SF: $ Total No. of Units: 1 Year B uilt: 2017 BISCAYNE BEACH 2900 NE 7th Ave #3307, Miami, FL, Sales Price: $1,250,000 Price/Unit: $ 1,250,000 Price/SF: $ Total No. of Units: 1 Year B uilt: 2017 spark 21

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24 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID Z

25 MARKET ANALYSIS SPARK spark 25

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28 DEMOGRAPHICS HIGHLIGHTS 2.7 Million POPULATION STATISTIC spark $46,036 $44,300 INCOME STATISTIC HOUSING STATISTIC 28

29 OVERVIEW Miami-Dade County includes 35 incorporated towns and cities and many unincorporated areas. The 2,400-square-mile county extends from the Florida Everglades east to the Atlantic Ocean. It is bordered to the north by Broward County and to the south by Monroe County. The main portion of the city of Miami lies on the shores of Biscayne Bay and is separated from the Atlantic Ocean by barrier islands, the largest of which holds the city of Miami Beach. The metro, with a population of roughly 2.7 million, is located entirely within Miami-Dade County. Miami is the most populous city, with slightly more than 400,000 residents, followed by Hialeah and Miami Gardens. METRO HIGHLIGHTS spark BUSINESS-FRIENDLY ENVIRONMENT The metro has no local business or personal income taxes, which attracts businesses and residents to the area. INFRASTRUCTURE GATEWAY Miami is a gateway for international trading activities and immigration, connecting to ports to the south and beyond. MEDICAL COMMUNITY The county contains the largest concentration of medical facilities in Florida, drawing residents needing services throughout the state. 29

30 DEMOGRAPHICS The metro is expected to add nearly 117,400 people over the next five years. During the same period, approximately 64,000 households will be formed, generating demand for housing. The homeownership rate of 53 percent is below the national rate of 64 percent, maintaining a strong rental market. The cohort of 20- to 34-year-olds composes 21 percent of the population. SPORTS 2017 Population by Age 6% 0-4 YEARS 17% 5-19 YEARS 7% YEARS 28% YEARS 27% YEARS 16% 65+ YEARS spark 2017 POPULATION: 2.7M Growth * 4.3% 2017 HOUSEHOLDS: 940K Growth *: 6.7% 2017 MEDIAN AGE: 39.7 U.S. Median: 37.8 QUALITY OF LIFE 2017 MEDIAN HOUSEHOLD INCOME: $44,300 U.S. Median: $56,300 Miami-Dade County has developed into a cosmopolitan urban area offering a vibrant business and cultural community. The metro has an abundance of popular attractions. Miami hosts the Capital One Orange Bowl and is home to several professional sports teams, including the Miami Dolphins, the Miami Marlins and the Miami Heat. The county has a broad array of cultural attractions, historic sites and parks. These include the Adrienne Arsht Center for the Performing Arts, Zoo Miami and Everglades National Park. The region is home to a vibrant and diverse culture, family-friendly neighborhoods, a plethora of shops and restaurants, and beautiful weather and beaches. It also offers easy access to Latin America and the Caribbean. ARTS & ENTERTAINMENT * Forecast S ources: Marcus & Millichap Research S ervices; BLS ; Bureau of Econom ic Analysis; Experian; Fortune; Moody s Analytics; U.S. Census Bureau 30

31 ECONOMY Various industries provide a diverse economy. Trade, international finance, healthcare and entertainment have become major segments in the local business community. A strong tourism industry has developed, with ties to Latin America and the Caribbean. Tourism and trade depend on a large transportation sector. PortMiami and Miami International Airport are both major contributors to employment and the economy. The Miami metro gross metropolitan product (GMP) expansion is expected to outpace the U.S. GDP in 2017 and retail sales for the county are also rising. MAJOR AREA EMPLOYERS Baptist Health South Florida University of Miami American Airlines Precisions Response Corp. Publix Supermarkets Winn-Dixie Stores Florida Power & Light Co. Carnival Cruise Lines AT&T Mount Sinai Medical Center * Forecast spark SHARE OF 2016 TOTAL EMPLOYMENT 3% MANUFACTURING 15% 12% 12% 7% PROFESSIONAL AND BUSINESS SERVICES GOVERNMENT LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES 26% TRADE, TRANSPORTATION AND UTILITIES CONSTRUCTION + EDUCATION AND HEALTH SERVICES 2% INFORMATION 5% OTHER SERVICES 31

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36 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID Z

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50 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID Z

51 MIAMI DISTRICTS SPARK spark 51

52 Edgewater is primarily a residential neighborhood, with many historic early 20th century homes. The neighborhood has many high-rise residential towers to the east along Biscayne Bay, and historic homes elsewhere in the neighborhood. Since 2000, the area has grown in popularity, due to its proximity to Downtown and neighborhoods such as the Design District spark 52

53 The Miami Design District is a neighborhood north of Midtown in Miami, Florida. The Design District is home to over 130 art galleries, showrooms, creative services, stores, antiques dealers, eateries and bars. The Design District isn t just home to funky galleries and unusual art; it is also a high end shopping mecca. Stroll through luxury closet staples like Christian Louboutin, Prada, Louis Vuitton and Hermes, next to carefully curated boutiques and home décor stores. spark 53

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55 Midtown Miami presents sidewalks filled with boutiques, cafes, lounges, restaurants, and more. Twenty years ago, the area was just a train yard. Art and culture has made the area the heart of this neighborhood. Special installations and exhibits adorn the streets in a urban meets chic, indoor-outdoor setting. Miami s newest lifestyle and entertainment destination has officially arrived. spark 55

56 The Arts & Entertainment District is an emerging, urban residential neighborhood connecting The Wynwood Arts District and Design District to Downtown Miami. Because of the recent explosive growth in these bordering districts, The Arts and Entertainment District has seen a renaissance in its residential, culinary, entertainment and nightlife offerings. spark 56

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59 The Wynwood Arts District is home to over 70 Art Galleries, Retail Stores, Antique Shops, Eclectic Bars, and one of the largest open-air street-art installations in the world. Taking over what used to be the warehouse and manufacturing district of Greater Miami, developers have rehabilitated neglected warehouses, shuttered factories, and other unused buildings, transforming them into the numerous art complexes, galleries, performing art spaces, restaurants, cafes, and other creative businesses.

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62 SPARK PRESENTED BY