HAVANA PALMS II - Spear Capital Group...Apartments Average Price Per Square Foot Avg. $168,407 $0...
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HAVANA PALMS II 931 SW 3RD STREET | MIAMI, FL 33130 | OFFERING MEMORANDUM
Transcript of HAVANA PALMS II - Spear Capital Group...Apartments Average Price Per Square Foot Avg. $168,407 $0...
HAVANA PALMS II
931 SW 3RD STREET | MIAMI, FL 33130 | OFFERING MEMORANDUM
CONTACTS
ARTHUR POROSOFF Senior Vice President Investments 786.522.7058 [email protected]
DAVID COHEN Senior Associate 786.522.7075 [email protected]
FERNANDO POLANCO Senior Associate 305.879.9916 [email protected]
JAVIER UBEDA Associate 786.522.7039 [email protected]
RYAN SHAW First Vice President Investments 786.522.7087 [email protected]
5201 BLUE LAGOON DRIVE #100
MIAMI, FL 33126
WWW.POROSOFF.COM
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party re-
ceiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap.
This Marketing Brochure has been prepared to provide summary, unverified 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. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or ex-
penses 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, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the 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 Marketing Brochure
has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained
herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regard-ing the accuracy or completeness of the information provided. All potential
buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc.© 2018 Marcus & Millichap. All rights reserved.
NON-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any
commercial tenant or lessee identified in thismarketing 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 lesseeinformation about this listing to prospective customers.
CONFIDENTIALITY & CONDITIONS
2 HAVANA PALMS II
HAVANA PALMS II 3
TABLE OF CONTENTS
4 PROPERTY OVERVIEW
14 FINANCIAL ANALYSIS
26 SALE COMPARABLES
32 RENT COMPARABLES
PROPERTY OVERVIEW
Marcus & Millichap has been selected to exclusively market for sale the Havana Palms II Portfolio located at 931 SW 3rd Street and 910 SW 2nd Street in Miami, Florida. This is a rare investment opportunity with economies of scale in Miami’s booming Little Havana area, just west of downtown Miami and the Brickell area. The portfolio consists of 10 two-story buildings sitting on a 94,134-square-foot lot and has a combined rentable square footage of 51,774 square feet. The buildings consist of three studio/one-bathroom apartments, 48 one-bedroom/one-bathroom apartments and 28 two-bedroom/one-bathroom apartments, totaling 79 units. The average unit size is 651 square feet. As prices continue to rise in downtown Miami and the surrounding Brickell area, investors have seized on the opportunity to revitalize and redevelop Little Havana, pushing rents up while maintaining a high level of demand due to limited affordable rental inventory. This has resulted in nearly 100 percent occupancy in the market, with demand higher than ever. Little Havana offers a stable single-family, middle income, residential neighborhood and an overall residential mix that includes a diverse blend of low- and high-rise multifamily apartment buildings, duplexes and single-family homes. The centrally located business district is comprised of offices, restaurants, entertainment and diverse shopping opportunities. The portion of 8th street that runs west of 17th Avenue, Calle Ocho, as it has become known to the world, is the social and commercial Main Street of Little Havana. This cultural melting pot of Miami is undergoing a transformation with a growing arts scene, new nightclubs, restaurants, bars and retail offerings, in addition to existing landmarks such as the world famous Versailles Restaurant and Domino Park. Many of the businesses along Calle Ocho have undergone renovations that have resulted in a thriving nightlife scene. The plan for downtown is to create jobs through seven different industries. Those seven industries include financial services (international banking and venture capital), international trade, motion picture/media production, urban tourism, biomedical, and IT/telecommunications. The projection is that by 2030, 31,000 new residents will reside in the CBD. This population growth will focus on the seven core industries. In addition to urban growth, the city of Miami is exploring ways to make the main corridor on 8th Street more accessible and street friendly by slowing down the flow of traffic and up-zoning the area to foster more development. This investment opportunity should be on the radar of every investor who is looking for a value-add opportunity in a submarket with rare economies of scale in an area seeing explosive growth as Miami expands.
• Rare multifamily investment opportunity in Miami’s booming Little Havana area
• 10 two-story buildings on a 94,134-square-foot lot
• Combined rentable square footage of 51,774 square feet
• Value-add opportunity in a submarket with rare economies of scale in an area
INVESTMENT OVERVIEW
INVESTMENT HIGHLIGHT
6 HAVANA PALMS II
HAVANA PALMS II 7
8 HAVANA PALMS II
HAVANA PALMS II 9
10 HAVANA PALMS II
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12 HAVANA PALMS II
PROPERTY SUMMARY
Address:931 SW 3rd StreetMiami, FL 33130
Total Number of Units: 79
Year Built: 1947
Total Rentable Square Feet: 51,400
Lot Size: 1.95
Parcel Number: 01-4138-003-1340 01-4138-003-1330
Number of Buildings: 10
MAST DEVELOPMENT
HAVANA PALMS II 13
FINANCIAL ANALYSIS
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RENT ROLL DETAIL
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RENT ROLL
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RENT ROLL
HAVANA PALMS II 19
RENT ROLL
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PRICING DETAIL
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OPERATING STATEMENT
Parking Income 12,600
9,679
Notes: Pro Forma Laundry / $18 per unit a month Pro Forma Parking / $50 per spot a month Pro Forma Taxes / Assessed at 64% of market value Water / Water is lowered due to leak
TRASH QUOTE
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INSURANCE QUOTE
HAVANA PALMS II 23
T4R-ZONING
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HAVANA PALMS II 25
SALES COMPARABLE PROPERTIES
28 HAVANA PALMS II
610 SW 14TH AVENUE
610 SW 14th Ave
Miami, FL 33135
Close of Escrow:
11/22/2017
Sales Price: $1,100,000
Price/Unit: $183,333
Price/SF: $209.52
No. of Units: 6
Year Built: 2002
Zoning: T4
971 FLAGLER
971 W Flagler St
Miami, FL 33130
Close of Escrow: 2/9/2018
Sales Price: $4,600,000
Price/Unit: $164,286
Price/SF: $210.05
No. of Units: 28
Year Built: 2017
Zoning: T6
1740-1750 SW 6TH STREET
1740-1750 SW 6th St
Miami, FL 33135
Close of Escrow: 01/18/2018
Sales Price: $1,800,000
Price/Unit: $150,000
Price/SF: $242.52
No. of Units: 12
Year Built: 1975
Zoning: T4
SALES COMPARABLE PROPERTIES
1 2 3
HAVANA PALMS II 29
427 SW 7TH STREET
427 SW 7th St.
Miami, FL 33130
Close of Escrow:
11/17/2017
Sales Price: $1,050,000
Price/Unit: $210,000
Price/SF: $219.71
No. of Units: 6
Year Built: 1980
Zoning: T5
LAS PALMAS CONDOMINIUMS
2120 W Flagler St
Miami, FL 33135
Close of Escrow:
09/29/2017
Sales Price: $2,225,000
Price/Unit: $171,154
Price/SF: $226.28
No. of Units: 13
Year Built: 2007
Zoning: T6
NATHANIEL APARTMENTS
921 SW 7th St
Miami, FL 33130
Close of Escrow: 03/30/2017
Sales Price: $1,000,000
Price/Unit: $166,667
Price/SF: $211.01
No. of Units: 6
Year Built: 1974
Zoning: T5
4 5 6
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COMPARABLE SALE PROPERTIES MAP
3
1
6
5
HAVANA PALMS II
610 SW 14TH AVE
971 FLAGLER LAS PALMAS CONDOMINIUMS
NATHANIEL APARTMENTS
2
1740-1750 SW 6TH ST
427 SW 7TH ST4
Avg. $219.85
$0.00
$30.00
$60.00
$90.00
$120.00
$150.00
$180.00
$210.00
$240.00
$270.00
$300.00
HavanaPalms II
971 Flagler 1740-1750SW 6th St
610 SW 14thAvenue
427 SW 7thStreet
2120 WestFlaglerStreet
NathanielApartments
Average Price Per Square Foot
Avg. $168,407
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
HavanaPalms II
971 Flagler 1740-1750SW 6th St
610 SW 14thAvenue
427 SW 7thStreet
2120 WestFlaglerStreet
NathanielApartments
Average Price Per Unit
HAVANA PALMS II 31
RENT COMPARABLE PROPERTIES
COMPARABLE RENTAL PROPERTIES SUMMARY
PROPERTY ADDRESSYEAR BUILT
# OF UNITS
AVERAGE SF
MARKET RENT
MARKET RENT / SF
HAVANA PALMS II 1947 79 651 $1,040 $1.60
1. Villa La Pinta Apartments 1925 1 554 $1,100 $1.99
2. 1752 NW 1st St 1920 1 425 $1,100 $2.59
3. 3237 SW 4th St 1925 1 490 $990 $2.02
4. 450 SW 3rd St 2006 1 555 $1,300 $2.34
5. 102 SW 6th Ave 2005 1 594 $1,230 $2.07
6. 401 SW 17th Ave 2016 1 643 $1,550 $2.41
7. 446 SW 3rd St 2017 1 450 $1,200 $2.67
8. 856 SW 6th St 1937 1 479 $1,200 $2.51
9. 680 SW 10th St 1968 1 555 $1,250 $2.25
10. 120 SW 8th Ave 2010 1 846 $1,600 $1.89
11. 1000 SW 12th Ct 1924 1 772 $1,500 $1.94
12. 940 SW 6th St 1997 1 779 $1,550 $1.99
13. 1530 SW 2nd St 1973 1 656 $1,500 $2.29
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COMPARABLE RENTAL PROPERTIES MAP
1
2
4
11
313
57
9
12
8
10
6
HAVANA PALMS II 35
3237 SW 4TH ST
1752 NW 1ST ST
VILLA LA PINTA APARTMENTS
102 SW 6TH AVE
940 SW 6TH ST
401 SW 17TH AVE
1000 SW 12TH CT
450 SW 3RD ST
120 SW 8TH AVE
1530 SW 2ND ST
856 SW 6TH ST
680 SW 10TH ST
HAVANA PALMS II
446 SW 3RD ST
AVERAGE RENT - MULTIFAMILY
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
HavanaPalms II
450SW 3rd St
102 SW 6thAve
446SW 3rd St
856SW 6th St
680SW 10th St
1 Bedroom
Avg. $1,236
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
HavanaPalms II
1063SW 2nd St
Villa LaPinta
Apartments
428SW 9th St
1565SW 6th St
1752 NW1st Street
Studios
Avg. $1,018
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
HavanaPalms II
Villa LaPinta
Apartments
1752 NW1st Street
3237SW 4th St
Studios
Avg. $1,083
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AVERAGE RENT - MULTIFAMILY
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
HavanaPalms II
401 SW 17thAve
120 SW 8thAve
1000 SW12th Ct
940SW 6th St
1530SW 2nd St
2 Bedroom
Avg. $1,540
HAVANA PALMS II 37
1 VILLA LA PINTA APARTMENTS501 SW 6TH CT Miami, FL 33130
UNIT TYPENO. OF UNITS UNIT SF
MARKET RENT
MARKET RENT / SF YEAR BUILT
Studio 1 554-554 $1,100 $1.99 1925
TOTAL / AVG. 1 554 $1,100 $1.99
38 HAVANA PALMS II
2 1752 NW 1ST STMiami, FL 33125
UNIT TYPENO. OF UNITS UNIT SF
MARKET RENT
MARKET RENT / SF YEAR BUILT
Studio 1 425-425 $1,100-$1,100 $2.59 1920
TOTAL / AVG. 1 425 $1,100 $2.59
HAVANA PALMS II 39
3 3237 SW 4TH STMiami, FL 33135
UNIT TYPENO. OF UNITS UNIT SF
MARKET RENT
MARKET RENT / SF YEAR BUILT
Studio 1 525-525 $1,050-$1,050 $2.00 1925
TOTAL / AVG. 1 525 $1,050 $2.00
40 HAVANA PALMS II
4 450 SW 3RD STMiami, FL 33130
UNIT TYPENO. OF UNITS UNIT SF
MARKET RENT
MARKET RENT / SF YEAR BUILT
1 Bed / 1 Bath 1 555-555 $1,300-$1,300 $2.34 2006
TOTAL / AVG. 1 555 $1,300 $2.34
HAVANA PALMS II 41
5 102 SW 6TH AVEMiami, FL 33130
UNIT TYPENO. OF UNITS UNIT SF
MARKET RENT
MARKET RENT / SF YEAR BUILT
1 Bed / 1 Bath 1 594-594 $1,230 $2.07 2005
TOTAL / AVG. 1 594 $1,230 $2.07
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6 401 SW 17TH AVEMiami, FL 33135
UNIT TYPENO. OF UNITS UNIT SF
MARKET RENT
MARKET RENT / SF YEAR BUILT
2 Bed / 1 Bath 1 643-643 $1,550-$1,550 $2.41 2016
TOTAL / AVG. 1 643 $1,550 $2.41
HAVANA PALMS II 43
7 446 SW 3RD STMiami, FL 33130
UNIT TYPENO. OF UNITS UNIT SF
MARKET RENT
MARKET RENT / SF YEAR BUILT
1 Bed / 1 Bath 1 450-450 $1,200-$1,200 $2.67 2017
TOTAL / AVG. 1 450 $1,200 $2.67
44 HAVANA PALMS II
8 856 SW 6TH ST Miami, FL 33130
UNIT TYPENO. OF UNITS UNIT SF
MARKET RENT
MARKET RENT / SF YEAR BUILT
1 Bed / 1 Bath 1 479-479 $1,200-$1,200 $2.51 1937
TOTAL / AVG. 1 479 $1,200 $2.51
HAVANA PALMS II 45
9 680 SW 10TH STMiami, FL 33130
UNIT TYPENO. OF UNITS UNIT SF
MARKET RENT
MARKET RENT / SF YEAR BUILT
1 Bed / 1 Bath 1 555-555 $1,250-$1,250 $2.25 1968
TOTAL / AVG. 1 555 $1,250 $2.25
46 HAVANA PALMS II
10 120 SW 8TH AVEMiami, FL 33130
UNIT TYPENO. OF UNITS UNIT SF
MARKET RENT
MARKET RENT / SF YEAR BUILT
2 Bed / 1 Bath 1 846-846 $1,600-$1,600 $1.89 2010
TOTAL / AVG. 1 846 $1,600 $1.89
HAVANA PALMS II 47
11 1000 SW 12TH CTMiami, FL 33135
UNIT TYPENO. OF UNITS UNIT SF
MARKET RENT
MARKET RENT / SF YEAR BUILT
2 Bed / 1 Bath 1 772-772 $1,500-$1,500 $1.94 1924
TOTAL / AVG. 1 772 $1,500 $1.94
48 HAVANA PALMS II
12 940 SW 6TH ST Miami, FL 33130
UNIT TYPENO. OF UNITS UNIT SF
MARKET RENT
MARKET RENT / SF YEAR BUILT
2 Bed / 1 Bath 1 779-779 $1,550-1,550 $1.99 1997
TOTAL / AVG. 1 779 $1,550 $1.99
HAVANA PALMS II 49
13 1530 SW 2ND STMiami, FL 33135
UNIT TYPENO. OF UNITS UNIT SF
MARKET RENT
MARKET RENT / SF YEAR BUILT
2 Bed / 1 Bath 1 656-656 $1,500-$1,500 $2.29 1973
TOTAL / AVG. 1 656 $1,500 $2.29
50 HAVANA PALMS II
CONTACTS
ARTHUR POROSOFF Senior Vice President Investments 786.522.7058 [email protected]
DAVID COHEN Senior Associate 786.522.7075 [email protected]
FERNANDO POLANCO Senior Associate 305.879.9916 [email protected]
RYAN SHAW First Vice President Investments 786.522.7087 [email protected]
JAVIER UBEDA Associate 786.522.7039 [email protected]
5201 BLUE LAGOON DRIVE #100 MIAMI, FL 33126
WWW.POROSOFF.COM
