Offering Memorandum

1545 Meridian Avenue Offered for Sale for a Limited Time

$4,995,000

MERIDIAN HOUSE H O T E L

The Ultimate South Beach Luxury Rental Villa

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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

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CONTENTS

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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.

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Sailing the Bay MERIDIAN HOUSE Miami Beach

Bayshore Municipal Golf Course Miami Beach Convention Center

Tennis? Collins Avenue

Lincoln Road Mall Alton Road Ocean Drive

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PROPERTY DESCRIPTION The Meridian House was designed by Architect B. K. Hall and built by Bristol

Construction in 1935. 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.

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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. -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.

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SITE

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SITE PLAN

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FIRST FLOOR PLAN F

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SECOND FLOOR PLAN

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EX

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Meridian

House from

the street

with ample

on-site

parking

New operable

windows (impact

rated) allow for

nighttime

breezes and ease

of maintenance

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Lushly

Landscaped

Courtyard

and Heated

Pool

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Beautifully appointed

Ground Floor Living

Room

Modern

Chef’s Kitchen

with Bar

overlooks the

Dining Room

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Pantry with all

of life’s

essentials

adjacent to

Kitchen

Second Floor Lounge/Media

Room with adjacent Wet

Bar

Second Floor Bedroom #3

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Second Floor Wet Bar centrally

located to Media Room,

Salon, and Bedrooms

Second Floor Salon with Business Services

designed for quiet relaxation

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Luxurious Master

Bathroom features

Oversized Shower Room

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Four Bedrooms are corner located for maximum light, breeze,

and views

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Entry Foyer retains

original iron railings and

wood detailing

Powder Room

On First Floor with Steam

Feature

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Second Floor Bedroom #2

Income: Expenses:2017 2Q 2017 2Q

Rental Income 2Q $260,525 PROPERTY TAXES $3,636

Projected Annual $520,000 INSURANCE $6,205

LICENSING FEES $300

WATER & SEWER $2,250

2017 Weekly Rates NATURAL GAS $600

High Season $9,500 ELECTRIC $2,449

Mid Season $8,500 HOUSEKEEPING $5,400

Low Season $7,500 LAUNDRY $3,600

REPAIRS & MAINT $7,500

Event Weekends Add $185,000 LANDSCAPE $2,100

POOL SERVICE $1,500

Blended Rate at 90% $12,500 PEST CONTROL $360

INTERNET $1,680

BOOKING SYSTEM $750

SUPPLIES $300

ACCOUNTING $500

MGMT @ 5% GROSS $6,513

Total Income: Total Expenses:

Monthly Average $43,421 Monthly Average $7,607

2017 2Q $260,525 2017 2Q $45,643

Projected Annual $520,000 Projected Annual $91,286

Projected 2017 NOI = $428,714 CAP @ Asking Price= 8.58%

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Restart following 2016 renovations was 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.

2017 INCOME & EXPENSES

ADDRESS STATUS PRICE SF $/ SF BDs/Bs BUILT

1350 Collins Ave SOLD $7,500,000 5,188 $1,446 5/5 1930

Inferior Location

No Pool

No Parking

Loud Environs

1415 Euclid Aave Active $16,925,000 13,136 $1,288 5/5 1935

Inferior Location

Spatially Inefficient

Event Space Only

354 Washington Ave SOLD $5,150,000 5,916 $871 13/14 1935

Inferior Location

No Parking

Lacks Privacy

1018 Jefferson Ave Active $4,500,000 3,956 $1,138 11/11 1930

Inferior Location

No Parking

Restricted Use

1545 Meridian Ave Subject $5,735,000 3,324 $1,725 5/5 1935

Superior Location

Exquisite Pool

Parking for 8 Cars

Totally Private

TOTAL: $39,810,000 31,520

AVERAGE: $7,962,000 7,880 $1,293

Orchid House

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COMPARABLE MARKET ACTIVITY

Temple House

VILLA ITALIA

So Be It

Meridian House

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 1943. 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: 38.9 yrs Median Resident Age in FL: 40.5 yrs Average household size in 33139: 1.7p Average household size in FL: 2.6p Average AGI in 2010 in 33139 $89,607 Average AGI in 2010 in FL $50,523 Average Wages filed in 33139: $52,304 Average Wages filed in FL: $39,563 33139 population in 2010: 32,255 33139 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 : 117.2 Well above U.S. average: 100.0 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

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ABOUT SOUTH BEACH

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MI

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.

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ABOUT MIAMI

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.

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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.

NOTES TO BIDDERS