Delray Investment Portfolio · 2020. 9. 4. · Delray Investment Portfolio CONTENTS Exclusively...

Delray Investment PortfolioWest Atlantic Avenue Submarket, Delray Beach FL 33444

O F F E R I N G M E M O R A N D U M

Delray Investment PortfolioCONTENTS

Exclusively Marketed by:

Don Ginsburg(561) [email protected]

We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions,change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of theproperty. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

01 Executive Summary Investment Summary 5 Location Summary 6

02 Property Description Property Features 8 Property Images 9

03 Rent Roll Rent Roll 18

04 Sale Comps Sale Comparables 20

05 Demographics Demographics 24

Delray Beach Investment Portfolio

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be

reviewed only by the party receiving it from Katalyst Real Estate & Development, LLC and it should not be made available to

any other person or entity without the written consent of Katalyst Real Estate & Development, LLC.

By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such

information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of

the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum

to Katalyst Real Estate & Development, LLC. This offering memorandum has been prepared to provide summary, unverified

financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject

property.

The information contained herein is not a substitute for a thorough due diligence investigation. Katalyst Real Estate &

Development, LLC has not made any investigation, and makes no warranty or representation with respect to the income or

expenses for the subject property, the future projected financial performance of the property, the size and square footage

of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance

with local, state and federal regulations, the physical condition of the improvements thereon, or financial condition or

business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property.

The information contained in this offering memorandum has been obtained from sources we believe reliable; however,

Katalyst Real Estate & Development, LLC has not verified, and will not verify, any of the information contained herein, nor has

Katalyst Real Estate & Development, LLC conducted any investigation regarding these matters and makes no warranty or

representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take

appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs

and expenses of investigating the subject property.

DO NOT GO ON PROPERTY WITHOUT PERMISSION FROM BROKER. SHOWINGS ARE BY APPOINTMENT ONLY. DO NOT DISTURB OR CONTACT TENANTS FOR ANY REASON, AND DO NOT DISCUSS THESE PROPERTIES WITH ANY GOVERNMENTAL OR MUICIPAL AGENCY.

PLEASE CONTACT KATALYST REAL ESTATE & DEVELOPMENT, LLC FOR MORE DETAILS.

Copyright © 2020 CREOP, LLC. All Rights Reserved.

Delray In

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Executive Summary

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Location Summary

Delray Investment Portfolio Investment Summary | 05

OFFERING SUMMARYADDRESS West Atlantic Avenue Submarket

Delray Beach FL 33444

FINANCIAL SUMMARYOFFERING PRICE $7,100,000

OCCUPANCY 75.00 %

Multi-Asset Investment Portfolio in Delray Beach

Diverse Tenant Base among a Variety of PropertyTypesWithin Immediate Proximity to the Major MixedUse Development - Alta West

All Properties sit Within a Opportunity Zone

Existing Cash Flow with Value-Add Opportunity

Katalyst Real Estate is pleased to present this fully renovatedmulti-asset portfolio in the desirable Delray Beach market. Allproperties have undergone extensive capital improvements andare in a Qualified Opportunity Zone.

There are three assets in the portfolio that offer an array of assettypes and a combination of unique tenant bases. All threeproperties appeal to the strongest markets in Delray Beach: MultiFamily, Retail, and Bar & Restaurants. These Properties can bepurchased together or separately and consist of the following:

1) 18-Unit Apartment Building - 11-21 SW 6th Avenue - Thiscompletely renovated apartment building consists entirely of 2Bedroom Units with capital improvements that include: newroofs, conversion from wall units to Central AC, Impact Glass,completely gut-renovated interiors, and exterior renovations.

2) "Pour & Famous" - Bar/Retail - 524 West Atlantic Avenue - Thislongstanding Delray Beach Bar has been completely renovatedby the current owners. Improvements include a newly createdoutdoor space equipped with artificial grass and seating.Purchase is solely for the Real Estate and the Business is notincluded.

3) Mixed Use Asset - 105 NW 5th Avenue - This property is 100%occupied and consists of renovated residential units with aground-floor retail suite. These units are the lowest priced in themarket and at 100% Occupancy which allows for an owner topush rents and increase NOI.

This portfolio will provide a Buyer with Day 1 Cash-Flow and apositive return on investment with ample opportunity to createadditional added value through pushing rents, executing aneffective leasing program, or utilizing the robust seasonal rentalmarket in Delray Beach.

The Portfolio all sits within immediate vicinity of the upcoming,intensive mixed-use development Alta-West. Alta-West isscheduled to include 165+ Units, 40,000SF of Open Public Space,and over 740 Parking Spaces.

Alta-West will bring a level of investment and development toDelray that has only been done once in the Downtown Core viaAtlantic Crossing.

The City of Delray Beach is a boutique market with high barriersto entry. Attractive opportunities to enter the market with a pathto a strong, desirable yield are few and far between. This portfoliois an opportunity to position yourself in an emerging corridordirectly adjacent to major growth drivers in an exclusive DelrayBeach market.

Delray Investment Portfolio Location Summary | 06

Location & Nearby Developments• The Subject Portfolio sits only a half mile from Pineapple

Grove and Downtown Delray Beach

• Hundreds of Units and Hundreds of Thousands Square Feetof Commercial Space currently under construction withmore in the Planning Stages

• Delray Beach is high barriers to entry market whoseDowntown only spans 340 Acres with nationwide notorietyfor its restaurant and retail scene

"Fabrick Delray" Previously Alta West• Mixed Use Project spanning 6 acres in the Southwest

Delray Beach Market

• Plans include over 150 Residences, a Supermarket, and anOpen Walkway deemed "Frog Valley"

• This project is directly adjacent to the Subject Portfolio andwill dramatically enhance the Southwest Delray Submarket

Atlantic Crossing• Largest Mixed Use Project in the history of Downtown

Delray

• Currently Under Construction with over 300 Residencesand 150,000 Square Feet of Class A Office & Retail Space

• The Subject Portfolio is less than 1 Mile from this majorMixed Use Development

The Ray• High-end Boutique Hotel in in Pineapple Grove opening

Summer 2021

• $72 Million Dollar Project to even further expand theSeasonal Rental and Tourism market in Downtown Delray

• Pineapple Grove is a 10 Minute Walk from our SubjectPortfolio and serves as the Heart of Downtown DelrayBeach

Regional Map

Locator Map

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Property Description

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Pictures with Captions

Delray Investment Portfolio Property Features | 08

1) MULTI-FAMILY - 11-21 SW 6TH AVENUENUMBER OF UNITS 18

LAND SF 27,000 SF

BUILDING SF 10,372 SF

BEDROOMS 36

BATHROOMS 18

MARKET RENT $1,500

YEAR BUILT 1960

YEAR RENOVATED 2020

PRICE $3,950,000

2) MIXED USE - 105 NW 5TH AVENUENUMBER OF UNITS 10 Residential + 1 Retail

LAND SF 10,373 SF

BUILDING SF 4,816 SF

RETAIL SF 1,120 SF

LEASE TYPE NNN

BEDROOMS 11

BATHROOMS 5

PRICE $1,650,000

3) "POUR & FAMOUS" - BAR/RETAIL - 524 W ATLANTIC AVETENANT Owner Occupied

BUILDING SF 1,280

MARKET RENT $45 NNN

PRICE $1,500,000

Delray Investment Portfolio Property Images | 09

Delray In

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11-21 SW 6th Avenue, Delray Beach

Unit # Unit Type Lease Start Rent Market Rent

11-1 2 BR 1 BA 4/1/2020 $1,270 $1,500

11-2 2 BR 1 BA Model Unit $1,500

11-3 2 BR 1 BA 6/8/2020 $1,500 $1,500

11-4 2 BR 1 BA 5/1/2020 $1,232 $1,500

11-5 2 BR 1 BA 6/15/2020 $1,235 $1,500

11-6 2 BR 1 BA 7/1/2020 $1,400 $1,500

11-7 2 BR 1 BA 5/1/2020 $1,232 $1,500

11-8 2 BR 1 BA 4/13/2020 $1,232 $1,500

11-9 2 BR 1 BA 5/1/2020 $1,232 $1,500

21-1 2 BR 1 BA 6/1/2020 $1,500 $1,500

21-2 2 BR 1 BA Vacant $1,500

21-3 2 BR 1 BA 8/1/2020 $1,400 $1,500

21-4 2 BR 1 BA 5/1/2020 $1,323 $1,500

21-5 2 BR 1 BA 7/27/2020 $1,267 $1,500

21-6 2 BR 1 BA 6/1/2020 $1,232 $1,500

21-7 2 BR 1 BA 6/1/2020 $1,450 $1,500

21-8 2 BR 1 BA Vacant $1,500

21-9 2 BR 1 BA Vacant $1,500

Totals: $18,505 $27,000

105 NW 5th Avenue, Delray Beach

Unit # Unit Type Lease Start Rent Market Rent

101 Large Studio $950 $1,000

102 2 BR 1 BA $1,280 $1,300

201 Large Studio $950 $1,000

Suite 1 Dorm $450 $600







Commercial Suite Retail Jan-20 $2,583 $3,266 ($35 per Foot)

Totals $8,913 $10,766

Delray Investment Portfolio Rent Roll | 18

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Delray Investment Portfolio Sale Comparables | 20

1

Sail Inn657 NE 8th StreetDelray Beach, FL

BUILDING SF 1,204

SALE PRICE $750,000

PRICE/SF $622.92

CLOSING DATE 8/15/2019

DISTANCE 1.9 miles

Price/Square Ft $233 - $623

LOW HIGH

Notes Sail Inn Bar/Nightclub

2

111 SW 4th StreetDelray Beach, FL

TOTAL UNITS 12

YEAR BUILT 1950

SALE PRICE $2,088,888

PRICE/UNIT $174,074

PRICE/SF $270.72

CAP RATE 6.50 %

BUILDING SF 7,716


DISTANCE 1.0 miles

Cap Rate Range 4.50 % - 6.50 %

LOW HIGH

Price/Unit Range $162,500 - $394,444

LOW HIGH


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1211 NE 8th AvenueDelray Beach, FL

TOTAL UNITS 8

YEAR BUILT 1955


PRICE/UNIT $162,500

PRICE/SF $430.18

CAP RATE 5.00 %

BUILDING SF 3,022


DISTANCE 2.2 miles


LOW HIGH

Price/Unit Range $162,500 - $394,444

LOW HIGH

4

239 NW 1st AvenueDelray Beach, FL

TOTAL UNITS 7

YEAR BUILT 1957


PRICE/UNIT $200,000

PRICE/SF $233.33

BUILDING SF 6,000


DISTANCE 1.0 miles

Price/Unit Range $162,500 - $394,444

LOW HIGH


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342 NE 3rd AvenueDelray Beach, FL

TOTAL UNITS 6

YEAR BUILT 1946


PRICE/UNIT $241,667

PRICE/SF $351.69

CAP RATE 4.50 %

BUILDING SF 4,123


DISTANCE 1.3 miles


LOW HIGH

Price/Unit Range $162,500 - $394,444

LOW HIGH

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Delray Investment PortfolioWest Atlantic AvenueSubmarketDelray Beach, FL 33444

ASKING PRICE $7,100,000

OCCUPANCY 75.00 %

Delray In

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Delray Investment Portfolio Demographics | 24

POPULATION 1 MILE 3 MILE 5 MILE

2000 Population 12,070 77,045 165,892

2010 Population 11,165 78,696 174,840

2019 Population 15,016 89,024 196,628

2024 Population 16,450 94,936 208,942

2019 African American 9,387 24,299 38,576

2019 American Indian 27 181 316

2019 Asian 141 2,013 3,917

2019 Hispanic 1,662 11,864 24,004

2019 Other Race 509 2,672 4,611

2019 White 4,706 57,849 145,381

2019 Multiracial 234 1,948 3,722

2019-2024: Population: Growth Rate 9.20 % 6.45 % 6.10 %

2019 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE

less than $15,000 706 4,131 11,046

$15,000-$24,999 439 3,319 9,435

$25,000-$34,999 457 3,507 9,233

$35,000-$49,999 769 4,922 12,579

$50,000-$74,999 1,101 7,272 17,177

$75,000-$99,999 462 4,420 10,222

$100,000-$149,999 641 5,753 12,235

$150,000-$199,999 306 2,780 6,356

$200,000 or greater 559 3,846 8,798

Median HH Income $55,823 $61,700 $56,970

Average HH Income $90,086 $95,158 $90,817

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

2000 Total Housing 4,089 41,159 100,419

2010 Total Households 3,904 35,680 87,330



2019 Average Household Size 2.74 2.19 2.00

2000 Owner Occupied Housing 2,145 25,629 65,162

2000 Renter Occupied Housing 1,712 8,924 16,796



2019 Vacant Housing 584 8,469 24,275

2019 Total Housing 6,024 48,418 121,355



2024 Vacant Housing 614 8,560 24,721

2024 Total Housing 6,605 51,174 127,534

2019-2024: Households: Growth Rate 9.75 % 6.50 % 5.75 %

Source: esri

Delray Investment Portfolio Demographics | 25

2019 POPULATION BY AGE 1 MILE 3 MILE 5 MILE

2019 Population Age 30-34 1,142 5,209 9,112

2019 Population Age 35-39 1,031 4,998 8,841

2019 Population Age 40-44 924 4,855 8,288

2019 Population Age 45-49 914 5,066 8,787

2019 Population Age 50-54 937 5,394 9,735

2019 Population Age 55-59 1,023 6,256 12,349

2019 Population Age 60-64 1,000 6,677 14,675

2019 Population Age 65-69 822 6,437 16,888

2019 Population Age 70-74 640 5,734 17,548

2019 Population Age 75-79 422 4,624 15,404

2019 Population Age 80-84 282 3,801 13,461

2019 Population Age 85+ 267 5,673 19,497

2019 Population Age 18+ 11,943 75,561 173,217

2019 Median Age 39 50 60

2019 INCOME BY AGE 1 MILE 3 MILE 5 MILE

Median Household Income 25-34 $64,897 $64,541 $62,242

Average Household Income 25-34 $95,330 $85,813 $83,761









Average Household Income 75+ $48,583 $68,721 $69,207

2024 POPULATION BY AGE 1 MILE 3 MILE 5 MILE

2024 Population Age 30-34 1,304 5,527 9,365

2024 Population Age 35-39 1,171 5,370 9,397

2024 Population Age 40-44 1,078 5,159 9,213

2024 Population Age 45-49 969 5,102 8,765

2024 Population Age 50-54 979 5,397 9,593

2024 Population Age 55-59 976 5,832 11,207

2024 Population Age 60-64 1,023 6,965 15,249

2024 Population Age 65-69 1,014 7,534 18,641

2024 Population Age 70-74 778 6,673 19,482

2024 Population Age 75-79 569 5,855 19,297

2024 Population Age 80-84 357 4,481 15,493

2024 Population Age 85+ 312 5,728 19,653

2024 Population Age 18+ 13,111 80,685 184,196

2024 Median Age 39 51 61

2024 INCOME BY AGE 1 MILE 3 MILE 5 MILE











Average Household Income 75+ $58,170 $77,007 $78,015

Delray Investment Portfolio

Exclusively Marketed by:

Don Ginsburg(561) [email protected]

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Delray Investment Portfolio · 2020. 9. 4. · Delray Investment Portfolio CONTENTS Exclusively...

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