Neal R. Deputy

690 Lincoln Road

Miami Beach, FL 33139

Cell: (305) 467-4026

nealdeputy@gmail.com

Offering Memorandum

1545 Meridian Avenue Offered for Sale for a Limited Time

$5,735,000

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 Proforma Income & Expenses

Comparable Market Activity

About South Beach

About Miami

Notes to Bidders

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CONTENTS

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 business- B&B Inn, Event Space, and Luxury Getaway- for the past five years and its performance is reflected in a Gross Income for the first half of 2017 of $260,525 USD. See Income & Expense Report page 15 for substantiation of a true 7.0% Cap rate in place at asking price with extraordinary upside potential.

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The property’s unbelievable location, extraordinary level of finish and impressive income stream make this a 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 home.

No detail has been omitted in ensuring that all municipal codes, licenses, and taxes have been fully honored, fulfilled, and complied with. Final additions to this masterpiece are completed including an enlarged rear patio, new ADA accessible ramp and bathroom, and upgrades to the fire safety system. All Certificates of Completion have been issued by by the City of Miami Beach including approval as a Bed & Breakfast Inn. Included with the property and building are some select furnishings, along with a high design website, and impressive income track record.

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In addition to the existing villa, more development is allowed on the property by-right. Zoned RM-1 the allowable FAR = 1.25 times the site area of 7,500 SF for a total of 9,375 SF. Thus, 6,175 SF of additional construction over and above the existing 3,200 SF of the existing villa is permitted. Possible uses include private villas, townhomes, apartments, or more B&B rooms with proper City approvals.

Miami Beach Convention Center

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Sailing the Bay Miami Beach

Bayshore Municipal Golf Course

Tennis?

MERIDIAN HOUSE

Collins Avenue

Alton Road Lincoln Road Mall 04 Ocean Drive

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.

SITE PLAN S

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FIRST FLOOR PLAN

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SECOND FLOOR PLAN

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New operable

windows allow for

nighttime breezes

and ease of

maintenance

Meridian

House from

the street

with ample

on-site

parking

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

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Second Floor Lounge/Media

Roof with adjacent Wet

Bar

Second Floor Bedroom #3

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Second Floor Wet Bar centrally

located to Media Room,

Salon, and Bedrooms

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Second Floor Salon with Business Services

designed for quiet relaxation

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Four Bedrooms are corner located for

maximum light, breeze, and

views

Luxurious Master

Bathroom features

Oversized Shower Room

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Entry Foyer retains

original iron railings and

wood detailing

Second Floor Bedroom #2

Powder Room

On First Floor with Steam

Feature

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Income: Expenses:2017 2017

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

SALES TAX $9,118

RESORT TAX $3,907

INSURANCE $6,205

2017 Weekly Rates LICENSING FEES $300

High Season $9,500 WATER & SEWER $2,250

Mid Season $8,500 NATURAL GAS $600

Low Season $7,500 ELECTRIC $2,449

HOUSEKEEPING $7,200

Event Weekends Add $185,000 LAUNDRY $3,600

REPAIRS $3,000

Blended Rate at 90% $12,500 LANDSCAPE $2,100

POOL GUY $1,500

PEST CONTROL $360

INTERNET $1,680

MGMT @ 5% GROSS $11,925

Total Income: Total Expenses:

Monthly Average $43,421 Monthly Average $9,972

Annually (2013) $260,525 Annually (2013) $59,830

NOI= $200,695 CAP @ Asking Price= 7.00%

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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 (FIRST HALF) INCOME & EXPENSES

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ADDRESS STATUS PRICE SF $/ SF BDs/Bs BUILT

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

Inferior LocationNo PoolNo ParkingLoud Environs

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

Inferior LocationSpatially InefficientEvent Space Only

354 Washington Ave Active $6,800,000 5,916 $1,149 13/14 1935

Inferior LocationNo ParkingLacks Privacy

1018 Jefferson Ave Active $6,500,000 3,956 $1,643 11/11 1930

Inferior LocationNo ParkingRestricted Use

1545 Meridian Ave Subject $6,380,000 3,324 $1,919 5/5 1935

Superior LocationExquisite PoolParking for 8 CarsTotally Private

TOTAL: $44,105,000 31,520

AVERAGE: $8,821,000 7,880 $1,489

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 Moderne, 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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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 a

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