Hollywood Industrial Property 5770 Funston St Hollywood, FL 33023

Transcription

1 Hollywood Industrial Property Amazing investment opportunity 34 tenants, with 33,580 leasable square footage 9.54% Actual Capitalization rate Automotive uses allowed Sponsored By: JOHN DEMARCO, ACP Each office is independently owned and operated. RE/MAX 5 STAR REALTY 4151 Hollywood Blvd Hollywood, FL (954) Each office independently owned and operated

2 INVESTMENT DETAILS Analysis Analysis Date October 2017 Property Property Property Address Hollywood Industrial Property 5770 Funston St Hollywood, FL Year Built 1960 Purchase Information Property Type Purchase Price Tenants Total Rentable Sq. Ft. Financial Information Industrial $3,900, ,580 Down Payment Closing Costs $975,000 $20,000 Loans Type Fixed Debt $2,925,000 Term 15 years Amortization 15 years Income & Expenses Gross Operating Income Monthly GOI Total Annual Expenses Monthly Expenses Rate 4.0% Payment $21,636 Contact Information $440,426 $36,702 ($68,448) ($5,704) John DeMarco, ACP P. 2 LO Costs $29,250

3 EXECUTIVE SUMMARY Acquisition Costs Purchase Price, Points and Closing Costs Investment - Cash First Loan $3,949,250 $1,024,250 $2,925,000 Investment Information Purchase Price Price per Tenant Price per Sq. Ft. $3,900,000 $114,706 $ Income, Expenses & Cash Flow Gross Scheduled Income Total Vacancy and Credits Operating Expenses Net Operating Income Debt Service Cash Flow Before Taxes $440,426 $0 ($68,448) $371,979 ($259,630) $112,348 Financial Indicators Cash on Cash Return Before Taxes Debt Coverage Ratio Capitalization Rate Gross Income / Square Feet Gross Expenses / Square Feet Operating Expense Ratio % $13.12 ($2.04) 15.54% P. 3

4 PROPERTY DESCRIPTION Hollywood Industrial Portfolio John DeMarco with Re/Max 5 Star Realty is pleased to present the sale of this Hollywood Industrail Portfolio. Consisting of 4 concurrent parcels totaling 33,580 leasable square feet, with 34 tenants, on a lot size exceeding 1 acre. All automtive uses allowed by city makes this an ideal investment choice. Property currently is 96% occupied with 1 vacancy, and it maintains a historic occupancy rate of 100%. This property is currently grossing $440,426 per year, netting $371,979. This Noi provides an investor with a very strong and stable capitalization rate of 9.54%. Full management services and systems will stay in place making it an easy property to take over. Enclosed in this package are recent comparable sales well exceeding the price per foot of this property. Property is in excellent overall condition with no major deferred maintenance coming up. Please remember to not disturb existing tenants, for additional information and for all showings please call John DeMarco. P. 4

5 MAPS AND AERIALS P. 5 and should be personally verified through personal inspection by and/or with the appropriate professionals.

6 DETAILED GENERAL EXPENSES Description Year 1 Year 2 Year 3 Year 4 Year 5 Total Expenses ($68,448) ($68,448) ($68,448) ($68,448) ($68,448) Building Insurance ($14,959) ($14,959) ($14,959) ($14,959) ($14,959) Taxes - Real Estate ($38,028) ($38,028) ($38,028) ($38,028) ($38,028) Trash Removal ($3,763) ($3,763) ($3,763) ($3,763) ($3,763) Utility - Electricity ($1,065) ($1,065) ($1,065) ($1,065) ($1,065) ($10,632) ($10,632) ($10,632) ($10,632) ($10,632) Utility - Water P. 6 and should be personally verified through personal inspection by and/or with the appropriate professionals.

7 LEASE RENT ROLL Suite Tenant Annualized Tenant Renewal Commissions Rent Improvement Term Renewal Increase Start Date Expire Date RSF $/RSF 5771 Work Shop 03/01/ /28/2017 1,340 $12.09 $16, /31/ /31/2017 1,340 $12.09 $16,200 02/28/2017 1,340 $14.78 $19, /16/ /15/2018 1,340 $12.99 $17, Work Shop 01/01/ /28/2017 1,340 $14.78 $19, /01/ /28/2018 1,135 $11.89 $13, /18/ /31/2018 1,135 $11.89 $13, Auto Dealer 10/01/ /30/2018 1,135 $11.89 $13, & &2 Storage / Office 11/01/ /28/2018 1,150 $11.74 $13,500 03/24/ /31/ $13.85 $9,000 Tire Shop 11/01/ /30/ $13.85 $9,000 Locksmith 08/01/ /30/ $13.85 $9,000 01/31/ $12.67 $11,400 11/18/ /17/ $13.00 $11,700 Car Storage 05/12/ /30/ $15.27 $8,400 11/01/ /31/ $14.73 $8,100 06/01/ /10/ $15.27 $8,400 04/01/ /28/ $12.40 $9,300 Storage / Office 04/01/ /28/ $12.40 $9,300 05/01/ /31/2018 1,700 $12.71 $21, Work Shop Storage P. 7 and should be personally verified through personal inspection by and/or with the appropriate professionals. Notes

8 LEASE RENT ROLL Suite & A 5740 B 5740 C 5740 D 5740 E RSF $/RSF Annualized Tenant Renewal Commissions Rent Improvement Term Renewal Increase Tenant Start Date Expire Date 12/06/ /05/ $14.31 $9,300 12/12/ /11/ $13.38 $8,700 Cabinet Manufacture 06/01/ /01/ $13.85 $9,000 Real Estate 01/11/ /16/ $16.36 $9,000 Office / Storage 10/10/ /31/ $14.18 $7,800 Car Dealer Storage 06/15/ /30/ $15.27 $8,400 Cleaning Supplies 11/01/ /01/ $11.68 $8,762 Custom Cars 06/15/ /08/ $12.80 $9,600 Car Dealer 07/01/ /31/2018 1,750 $13.37 $23,400 Work Shop 08/15/ /28/2017 1,375 $13.96 $19,200 12/01/ /01/2017 1,375 $10.91 $15,000 N/A Vacant 12/01/ /28/2017 1,375 $0 06/01/ /28/2017 1,375 $10.47 $14,400 Paint & Accessories 06/01/ /31/2018 1,375 $13.09 $18,000 P. 8 and should be personally verified through personal inspection by and/or with the appropriate professionals. Notes

9 FINANCIAL INDICATORS Description Year 1 Year 2 Year 3 Year 4 Year % 9.54% 9.54% 9.54% 9.54% Cash On Cash Return b/t Cash On Cash Return a/t Gross Income per Sq. Ft. $13.12 $13.12 $13.12 $13.12 $13.12 Expenses per Sq. Ft. ($2.04) ($2.04) ($2.04) ($2.04) ($2.04) Net Income Multiplier Operating Expense Ratio 15.54% 15.54% 15.54% 15.54% 15.54% Loan To Value Ratio 60.43% 57.14% 53.72% 50.16% 46.46% Gross Rent Multiplier Capitalization Rate Debt Coverage Ratio * b/t = before taxes; a/t = after taxes P. 9 and should be personally verified through personal inspection by and/or with the appropriate professionals.

10 INVESTMENT RETURN ANALYSIS Description Year 1 Year 2 Year 3 Year 4 Year 5 $112,348 $224,696 $337,045 $449,393 $561,741 $1,796,196 $1,922,262 $2,054,488 $2,193,125 $2,339,477 ($1,024,250) ($1,024,250) ($1,024,250) ($1,024,250) ($1,024,250) $884,294 $1,122,709 $1,367,283 $1,618,268 $1,876,968 Internal Rate of Return 86.34% 46.53% 35.06% 29.53% 26.24% Modified IRR 86.34% 44.78% 32.67% 26.74% 23.15% $908,373 $1,171,914 $1,441,616 $1,717,728 $2,000,512 $4,971,979 $5,343,957 $5,715,936 $6,087,915 $6,459,894 Cash Flow - To Date Net Resale Proceeds Invested Capital Net Return on Investment NPV (cash flow + reversion) PV (NOI + reversion) * a/t = after taxes; Modified IRR = Modified Internal Rate of Return; PV = Present Value; NPV = Net Present Value; NOI = Net Operating Income P. 10 and should be personally verified through personal inspection by and/or with the appropriate professionals.

11 PROPERTY PHOTOS PP-1.jpg PP-2.jpg PP-3.jpg PP-4.jpg PP-5.jpg PP-6.jpg P. 11

12 1 Multi-Property SOLD 4 Class C Industrial buildings in Fort Lauderdale, FL, having total size of 64,200 SF. Sale Date: 08/22/2016 (195 days on mkt) # Properties: 4 Sale Price: $12,400,000 - Confirmed Total Size: 64,200 SF Price/SF: $ Total Land Area: 2.90 AC Pro Forma Cap Rate: Comp ID: Research Status: Confirmed 2 Sale Conditions: Redevelopment Project Multi-Condo SOLD 6 Class A Industrial Condo Units in Dania Beach, FL, having total size of 29,940 SF. Sale Date: 05/04/2016 (91 days on mkt) # Properties: 6 Sale Price: $3,443,100 - Full Value Total Size: 29,940 SF Price/SF: $ Total Land Area: Pro Forma Cap Rate: Comp ID: Research Status: Full Value 3 Sale Conditions: NW 7th Ave SOLD Miami/Dade County Miami, FL Sale Date: 06/15/2016 (463 days on mkt) Bldg Type: Class C IndustrialWarehouse Sale Price: $3,539,300 - Confirmed Year Built/Age: Built 1969 Age: 47 Price/SF: $ RBA: 23,714 SF Pro Forma Cap Actual Cap Rate: Comp ID: Research Status: Confirmed Parcel No: Sale Conditions: NW 64th St - Florida Fruit Land Co Miami/Dade County Miami, FL Sale Date: 08/18/2016 Sale Price: $2,995,000 - Confirmed Price/SF: $ Pro Forma Cap Actual Cap Rate: Comp ID: Research Status: 5 SOLD 6.00% Confirmed Bldg Type: Class C IndustrialWarehouse Year Built/Age: Built 1990 Age: 26 RBA: 23,985 SF Parcel No: Sale Conditions: NW 97th Ave, Unit Building C SOLD Miami/Dade County Miami, FL Sale Date: 10/17/2016 (251 days on mkt) Condo Type: 34,400 SF Industrial Condo Sale Price: $4,337,000 - Confirmed Year Built/Age: Built 2003 Age: 13 Price/SF: $ RBA: 34,400 SF Pro Forma Cap Actual Cap Rate: Comp ID: Research Status: Confirmed Parcel No: , , , [Partial List] Sale Conditions: NW 107th St, Unit Flagler Station Building 3 Phase III Miami/Dade County Miami, FL Sale Date: 05/17/2016 Sale Price: $5,676,200 - Confirmed Price/SF: $ Pro Forma Cap Actual Cap Rate: Comp ID: Research Status: SOLD Confirmed Condo Type: 40,000 SF Industrial Condo Year Built/Age: Built 2016 RBA: 40,000 SF Parcel No: Sale Conditions: - P. 12 Copyrighted report licensed to Re/Max 5 Star Realty /20/2017 Page 1

13 NW 159th St - CE 228B Miami/Dade County Miami, FL Sale Date: 01/17/2017 Sale Price: $11,404,300 Price/SF: $ Pro Forma Cap Actual Cap Rate: Comp ID: Research Status: 8 SOLD In Progress Bldg Type: Class C IndustrialWarehouse Year Built/Age: Built 1972 Age: 45 RBA: 78,235 SF Parcel No: Sale Conditions: NW South River Dr SOLD Miami/Dade County Miami, FL Sale Date: 09/06/2016 (547 days on mkt) Bldg Type: Class C IndustrialWarehouse Sale Price: $5,300,000 - Confirmed Year Built/Age: Built 1958 Age: 58 Price/SF: $ RBA: 29,797 SF Pro Forma Cap Actual Cap Rate: Comp ID: Research Status: Confirmed Parcel No: Sale Conditions: - P. 13 Copyrighted report licensed to Re/Max 5 Star Realty /20/2017 Page 2

14 Trend Report Dollar Volume Report Time Frame: 4/1/2016-2/20/2017 Legend: Sold Transactions Current Survey Sold Transactions Time Interval - Quarterly Number of Transactions Total Dollar Volume Total Bldg Square Feet Total Land in Acres Total Land in SF Average Price Average Number of SF Average Price Per Bldg SF Median Price Per SF Average Number of Acres Average Number of SF(Land) Average Price Per Unit Median Price Per Unit Average Number of Units Actual Cap Rate 8 $49,094, , ,199 $6,136,862 37,153 $ $ , % P. 14 Copyrighted report licensed to Re/Max 5 Star Realty /20/2017 Page 3

15 Trend Report Number of Transactions Total Dollar Volume Total Bldg Square Feet Total Land in Acres Total Land in SF Average Price Average Number of SF Average Price Per Bldg SF Median Price Per SF Average Number of Acres Average Number of SF(Land) Average Price Per Unit Median Price Per Unit Average Number of Units Actual Cap Rate 2Q16 04/1-6/30/16 3Q16 07/1-9/30/16 4Q16 10/1-12/31/16 1Q17 01/1-2/20/17 Sold Transaction Sold Transaction Sold Transaction Sold Transaction 3 $12,658,600 93, ,844 $4,219,533 31,218 $ $ ,844-3 $20,695,000 53, ,931 $6,898,333 26,891 $ $ , % 1 $4,337,000 34,400 $4,337,000 34,400 $ $ P. 15 Copyrighted report licensed to Re/Max 5 Star Realty $11,404,300 78, ,424 $11,404,300 78,235 $ $ ,424-2/20/2017 Page 4

16 LOCATION MAP P. 16

17 DEMOGRAPHICS Population 1 Mile 3 Mile 5 Mile Male 9,118 (47.14 %) 84,055 (47.66 %) 214,921 (47.85 %) Female 10,226 (52.86 %) 92,309 (52.34 %) 234,202 (52.15 %) Total Population 19, , ,123 Age Breakdown 1 Mile 3 Mile 5 Mile Ages 0-4 1,105 (5.71 %) 10,266 (5.82 %) 25,091 (5.59 %) Ages 5-9 1,412 (7.30 %) 13,017 (7.38 %) 31,863 (7.09 %) Ages ,311 (6.78 %) 12,341 (7.00 %) 30,114 (7.09 %) Ages ,262 (6.52 %) 11,766 (6.67 %) 29,024 (6.46 %) Ages ,263 (6.53 %) 11,632 (6.60 %) 28,912 (6.44 %) Ages ,237 (6.39 %) 11,340 (6.43 %) 28,352 (6.31 %) Ages ,179 (6.09 %) 10,985 (6.23 %) 27,680 (6.16 %) Ages ,196 (6.18 %) 11,042 (6.26 %) 27,941 (6.22 %) Ages ,254 (6.48 %) 11,720 (6.65 %) 29,598 (6.59 %) Ages ,323 (6.84 %) 12,312 (6.98 %) 31,311 (6.97 %) Ages ,309 (6.77 %) 11,976 (6.79 %) 30,792 (6.86 %) Ages ,199 (6.20 %) 10,893 (6.18 %) 28,682 (6.39 %) Ages ,014 (5.24 %) 9,287 (5.27 %) 25,009 (5.57 %) Ages (4.31 %) 7,465 (4.23 %) 20,413 (4.55 %) Ages (3.54 %) 5,936 (3.37 %) 16,248 (3.62 %) Ages (2.71 %) 4,537 (2.57 %) 12,390 (2.76 %) Ages (2.02 %) 3,273 (1.86 %) 8,812 (1.96 %) Ages (4.38 %) 6,576 (3.73 %) 16,891 (3.76 %) P. 17

18 DEMOGRAPHICS Household Income 1 Mile 3 Mile 5 Mile Median Income $36,608 $47,293 $47,849 Less than $10, ,092 13,599 $10,000 -$14, ,596 10,029 $15,000 - $19, ,698 9,957 $20,000 -$24, ,906 10,129 $25,000 - $29, ,128 11,031 $30,000 - $34, ,993 10,145 $35,000 - $39, ,455 9,849 $40,000 - $44, ,923 9,041 $45,000 - $49, ,313 8,304 $50,000 - $59, ,089 14,711 $60,000 - $74, ,932 18,708 $75,000 - $99, ,927 18,519 $100,000 - $124, ,750 10,412 $125,000 - $149, ,882 4,714 $150,000 - $199, ,614 4,549 Greater than $200, ,516 Housing 1 Mile 3 Mile 5 Mile Housing Units 8,029 71, ,671 Occupied Units 6,991 63, ,746 Owner Occupied Units 4,637 41, ,672 Renter Occupied Units 2,354 21,285 61,074 Vacant Units 1,038 7,946 25,925 Race Demographics 1 Mile 3 Mile 5 Mile Population Non Hispanic White 9,850 90, ,842 Population Black 7,731 70, ,001 Population Am In/Ak Nat N/A P. 18

19 CUMULATIVE WEALTH ANALYSIS $2,100,000 $1,890,000 $1,680,000 $1,470,000 $1,260,000 $1,050,000 $840,000 $630,000 $420,000 $210,000 Year Legend Equity (loan reduction) Equity (appreciation) CASH FLOW (a/t) P. 19 and should be personally verified through personal inspection by and/or with the appropriate professionals. 5