Short-term vacation property in Clearwater Beach, FL

Table of Contents

Execut ive Summary 3

Proper ty Overv iew 6

F inanc ia l Analys i s 10

Market Overv iew 13

Appendix 21

Contact Informat ion 22

2 331 Coronado Dr, Clearwater Beach, FL


Exe

cu

tiv

e S

um

ma

ry


EXECUTIVE SUM MARY

Safety Harbor

Oldsmar

Seminole

DunedinPlant City

Pinellas Park

Davis Islands

Tampa Heights

Treasure Island

Belleair Beach

Kenneth City

Indian Shores

RedingtonShores

St. Pete Beach

Belleair

SouthPasadena

RedingtonBeachMadeira Beach

Indian RocksBeach

Lutz

Brandon

Largo

TampaClearwater

St. Petersburg

TempleTerrace

Clearwater Beach Vacat ion Renta l There is little question as to why Clearwater Beach experiences thriving development activity focused on hospitality, vacation rentals, and second homes. Top travel industry leaders have repeatedly recognized Clearwater Beach as the top beach destination in the US. The area benefits from a continual flow of

Compass is pleased to offer for sale 331 Coronado Drive, Clearwater Beach, a rare opportunity to acquire a prime short-term vacation rental property perfectly positioned in world renowned Clearwater Beach, Florida. The Property is an existing 5-unit vacation rental property that sleeps 15 adults in 5 separate rooms. Historical revenues provide reliable income, with multiple recurring reservations each year. Existing ownership accomplishes strong occupancy rates while managing the property from out of town, offering increased operating efficiencies for local ownership. Existing ownership also blocks out more than 50% of the prime vacation days for friends and family, providing more upside potential for a new buyer.

The Property offers an excellent market presence located less than 1,000 feet from pristine beaches and walking distance to Clearwater Beach’s newest development area. Situated less than one block from the new 259-room Marriott and across from the Hyatt Regency Hotel and Spa, this site offers individual developers the opportunity to participate in the ongoing development boom associated with the Southern portion of Clearwater Beach. A high number of dining, shopping and entertainment options surround the site, allowing for an authentic vacation experience for visitors.


There is little question as to why Clearwater Beach experiences thriving development activity focused on hospitality, vacation rentals, and second homes. Top travel industry leaders have repeatedly recognized Clearwater Beach as the top beach destination in the US. The area benefits from a continual flow of beach goers and vacationers, providing year-round demand for upscale hospitality and residential units. The recent introduction of vacation rental properties has vastly in-creased profitability and demand for smaller, more manageable properties - particularly on the Southern end of the Clearwater Beach strip.

Clearwater Beach’s prominence in the Tampa MSA is underscored by its tremendous growth in newly developed buildings and attractions geared towards higher-end visi-tors. The number of hotel rooms in Clearwater Beach has more than doubled since 2011, with few signs of slowing down as demand swells west from Tampa suburbs. Clearwa-ter Beach’s southern parcels link directly to Tampa and significant employment centers while maintaining a relaxed and luxurious way of life to its residents. These attributes have contributed to the increasing popularity of Clearwater Beach as one of Florida’s most desirable beach enclaves.

The site has conceptual allowances for a variety of potential conforming uses, including a private residence, boutique hotel, vacation rental, or luxury condominium structure. This height and density lie entirely within current zoning, and aggressive developers can likely achieve higher density through direct work with planning and zoning offi -cials. The use-by-right provides for 16 residential units, two commercial spaces totaling ±3,155 square feet, 19 parking spaces, 12 bike parking spaces, a rooftop terrace & resident multipurpose room or lobby.

EXECUTIVE SUM MARY

This opportunity rarely presents a prominent location within one of the country’s top beach destinations. All investors and developers are encouraged to inquire further about the unique opportunity to acquire 331 Coronado Drive in Clearwater Beach.


Pro

pe

rty

Ov

erv

iew


About the Proper t y

HOUSE

2,605 SFBATHROOMS

6MINIMUM STAY

1-3 nights

SLEEPS

15BEDROOMS

5An oasis retreat in the heart of South Clearwater Beach. A private compound in the middle of the hustle and bustle that is Clearwater Beach. The white sandy beaches and beautiful Gulf of Mexico are across the street.

“

“from listing on vrbo.com

PROPERT Y OVERVIEW


Exter io r Photos

PROPERT Y OVERVIEW


I nter io r Photos

PROPERT Y OVERVIEW


Fin

an

cia

l A

na

lysi

s


Renta l Ana lys i s ANNUAL REVENUE

$146,783PURCHASE PRICE

$1,690,000AVERAGE DAILY RATE

$777OCCUPANCY RATE

52%

LOAN INFORMATION

Purchase Price: $1,690,000.00

Down Payment: $1,690,000.00

Interest Rate on Loan: 4.50% annually

Term of Loan: 30 years

Approximate Closing Costs: 1.00%

INCOME (PROJECTED)

Projected Daily Rent: $535.00

Vacancy Rate: 25.00% annually

Projected Rent Increase: 2.50% annually

TAX INFORMATION

# of Years of Depreciation: 27.5 years

Improvement Ratio: 75.00% *

Investor's Tax Bracket: 30.00% annually

ACQUISITION ANALYSIS

Loan Amount: $0.00

Closing Costs: $16,500.00

Monthly Principal & Interest (P&I): $0.00

Annual Principal & Interest (P&I): $0.00

DEPRECIATION ANALYSIS:

Land Value: $412,500.00

Dwellings Value: $1,237,500.00

Annual Depreciation: $45,000.00

Annual Principal & Interest (P&I): $0.00

EXPENSES (PROJECTED)

Property Taxes: $10,465.00 annually

Insurance: $2,904.00 annually

Electricity: $389.58 monthly

Gas: $0.00 monthly

Water/Sewer: $389.58 monthly

Trash: $0.00 monthly

Cable/Wifi: $218.33 monthly

Pool Expense: $103.33 monthly

Telephone: $0.00 monthly

Property Management: 7.00% of income

Repairs/Maintenance: 13.50% of income

Licensing $7.00 monthly

Cleaning: $493.33 monthly

Advertising: $41.58 monthly

Projected Expense Increase: 5.00% annually

*percentage of dwelling to total property value

F INANCIAL ANALYSIS


Annual Income & ExpensesANNUAL OPERATING INCOME

Year: 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year 8th year 9th year 10th year

Expected Gross Income: $195,275.00 $200,156.88 $205,160.80 $210,289.82 $215,547.06 $220,935.74 $226,459.13 $232,120.61 $237,923.63 $243,871.72

Less Vacancies: $48,818.75 $50,039.22 $51,290.20 $52,572.45 $53,886.77 $55,233.93 $56,614.78 $58,030.15 $59,480.91 $60,967.93

Effective Gross Income: $146,456.25 $150,117.66 $153,870.60 $157,717.36 $161,660.30 $165,701.80 $169,844.35 $174,090.46 $178,442.72 $182,903.79

ANNUAL OPERATING EXPENSES


Property Taxes: $10,465.00 $10,988.25 $11,537.66 $12,114.55 $12,720.27 $13,356.29 $14,024.10 $14,725.31 $15,461.57 $16,234.65

Insurance: $2,904.00 $3,049.20 $3,201.66 $3,361.74 $3,529.83 $3,706.32 $3,891.64 $4,086.22 $4,290.53 $4,505.06

Electricity: $4,675.00 $4,908.75 $5,154.19 $5,411.90 $5,682.49 $5,966.62 $6,264.95 $6,578.19 $6,907.10 $7,252.46

Gas: $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Water/Sewer: $4,675.00 $4,908.75 $5,154.19 $5,411.90 $5,682.49 $5,966.62 $6,264.95 $6,578.19 $6,907.10 $7,252.46

Trash: $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Cable/Satellite: $2,620.00 $2,751.00 $2,888.55 $3,032.98 $3,184.63 $3,343.86 $3,511.05 $3,686.60 $3,870.93 $4,064.48

Pool Expense: $1,240.00 $1,302.00 $1,367.10 $1,435.46 $1,507.23 $1,582.59 $1,661.72 $1,744.80 $1,832.04 $1,923.65

Telephone: $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Property Management: $10,251.94 $10,764.53 $11,302.76 $11,867.90 $12,461.29 $13,084.36 $13,738.58 $14,425.51 $15,146.78 $15,904.12

Repairs/Maintenance: $19,771.59 $20,760.17 $21,798.18 $22,888.09 $24,032.50 $25,234.12 $26,495.83 $27,820.62 $29,211.65 $30,672.23

Licensing: $84.00 $88.20 $92.61 $97.24 $102.10 $107.21 $112.57 $118.20 $124.11 $130.31

Cleaning: $5,920.00 $6,216.00 $6,526.80 $6,853.14 $7,195.80 $7,555.59 $7,933.37 $8,330.03 $8,746.54 $9,183.86

Advertising: $499.00 $523.95 $550.15 $577.65 $606.54 $636.86 $668.71 $702.14 $737.25 $774.11

Total Operating Expenses: $63,105.53 $66,260.81 $69,573.85 $73,052.54 $76,705.17 $80,540.43 $84,567.45 $88,795.82 $93,235.61 $97,897.39

Expenses as %age of Income 43.09% 44.14% 45.22% 46.32% 47.45% 48.61% 49.79% 51.01% 52.25% 53.52%

NET OPERATING INCOME (NOI)


NOI: $83,350.72 $83,856.85 $84,296.75 $84,664.82 $84,955.13 $85,161.38 $85,276.90 $85,294.64 $85,207.11 $85,006.40

CASH FLOW (BEFORE TAXES)


Cash Flow: $83,350.72 $83,856.85 $84,296.75 $84,664.82 $84,955.13 $85,161.38 $85,276.90 $85,294.64 $85,207.11 $85,006.40

Cash-On-Cash Return: 5.052% 5.082% 5.109% 5.131% 5.149% 5.161% 5.168% 5.169% 5.164% 5.152%

F INANCIAL ANALYSIS


Ma

rke

t O

ve

rvie

w


Vacat ion Renta l Indust r y S tat i st ics

MARKET OVERVIEW

PROJECTED VACATION RENTAL REVENUE FOR 2019

*THE MARKET’S GROWTH RATE IS 6.9%

$57.669 billion

TOTAL VACATION RENTAL USERS WORLDWIDE

297.17 million

VACATION RENTAL COMPANIES IN THE U.S.

23,000

AIRBNB USERS WORLDWIDE

150 million

in m

illio

ns

40.0

27.5

2017

30.0

20.0

10.0

0

2018

29.8

2019

31.9

2020

33.8

2021

35.6

2022

37.1

2023

38.4

GROWTH IN NUMBER OF USERS OVER TIME IN U.S.


Renta l Market Overv iew

CLEARWATER BEACH, FL

AVG. OCCUPANCY RATE

55%

AVG. RATE FOR ENTIRE HOME

$240AVG. REVENUE FOR ENTIRE HOME

TOP GUEST CITY

AVG. REVENUE FOR PRIVATE HOME

$3,207

New York

BOOKING LEAD TIME

95 days

AVG. RATE FOR PRIVATE ROOM

$136

$1,596

ACTIVE LISTINGS

1258

Studio

300

200

100

01 2 3 4 5+

Rooms

AVG RENTAL SIZE 2.2 Bedrooms / 6.2 Guest of Average

MARKET OVERVIEW

*Data from AirDNA


Reservat ion Status and H istor y

Sun Mon Tue Wed Thu Fri Sat

8 9 10 11 12 13 14

1 2 3 4 5 6 7

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30

SEPTEMBER 2019Sun Mon Tue Wed Thu Fri Sat

7 8 9 10 11 12 13

1 2 3 4 5 6

14 15 16 17 18 19 20

21 22 23 24

30 31

25 26 27

28 29

JULY 2019Sun Mon Tue Wed Thu Fri Sat

3 4 5 6 7 8

1

9

2

10 11 12 13 14 15 16

17 18 19 20 21 22 23

27 28 29 3024 25 26

NOVEMBER 2019


3 4 5 6 7 8

1

9

2

10

17

11 12 13 14 15 16

18 19 20 21 22 23

27 28 29 3024 25 26

MARCH 2019Sun Mon Tue Wed Thu Fri Sat

7 8 9 10 11 12 13

1 2 3 4 5 6

14 15 16 17 18 19 20

21 22 23 24

30

25 26 27

28 29

APRIL 2019

31


3 4 5 6 7 8

1

9

2

10

17

11 12 13 14 15 16

18 19 20 21 22 23

27 2824 25 26

FEBRUARY 2019

Sun Mon Tue Wed Thu Fri Sat1

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30

2 3 4

APRIL 2020


5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30 31

2 3 4

MAY 2019

RESERVED

BLOCKED


6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30 31

2 3 4 5

OCTOBER 2019


6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30 31

2 3 4 5

JANuARY 2019


8 9 10 11 12 13 14

1 2 3 4 5 6 7

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

MARCH 2020


2 3 4 5 6 7 8

1

9 10 11 12 13 14 15

16 17 18 19 20 21 22

26 27 28 2923 24 25

FEBRUARY 2020


2 3 4 5 6 7 8

1

9 10 11 12 13 14 15

16 17 18 19 20 21 22

26 27 28 29 3023 24 25

JUNE 2019


5 6 7 8 9 10

1 2 3

11

4

12 13 14 15 16 17 18

19 20 21 22 23 24 25

29 30 3126 27 28

JANUARY 2020


54

11

6 7 8 9 10

1 2 3

12 13 14 15 16 17

18 19 20 21 22 23 24

28 29 30 3125 26 27

AUGUST 2019


DECEMBER 2019

8 9 10 11 12 13 14

1 2 3 4 5 6 7

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

MARKET OVERVIEW

AS OF JANUARY 31, 2020


So ld Comparab les

Address Sale Date Sale Price Price/SF Year Built Building Type GBA

Falcon Apartment Motel415 Coronado Dr Clearwater Beach, FL

02/10/2017 $2,519,091 $302.48 1960Hospitality

Motel8,328 SF

Sands Point Motel433 Coronado Dr Clearwater Beach, FL

10/25/2017 $2,200,000 $396.47 1954Hospitality

Single Room Occupancy

5,549 SF

332 Hamden Dr Clearwater, FL 08/02/2018 $2,450,000 $321.69 1957Hospitality

Motel7,616 SF

433 Coronado Dr

332 S Hamden Dr

415 Coronado Dr

Memorial Causeway Trail

Beachwalk

Beac

hwal

k

Brightwater Dr

Fifth St

Bayside Drive

Ham

den

Dr

Devon Drive

Third St

Second St

Memorial Causeway

Ham

den

Dr

Cor

onad

o D

r

S Gulfview Blvd

MARKET OVERVIEW


Awards

Best Beach in

America

Voted Top 10Beach in the World

Best Spring Break Beaches

TOP 10Beaches in U.S.

MARKET OVERVIEW


331 Coronado Drive

Coronado Dr

S Hamden Dr

S Gulfview Blvd

Clearwater Bay

Gulf of Mexico

Nearby Hote l s

MARKET OVERVIEW


C L E A RWAT E R

Pier 60

Beach Walk

Sand Key Park

Ameni t ies

Beach Walk

Pier 60

Clearwater Marine Aquarium

MARKET OVERVIEW


Potent ia l Deve lopment Opt ions

Private ResidencePrivate Residence Boutique Hotel

APPENDIX

BRAD KUSKINFounding Principal

(561) [email protected]

Short-term vacation property in Clearwater Beach, FL · Redington Beach Madeira Beach Indian Rocks...

Documents

Transcript of Short-term vacation property in Clearwater Beach, FL · Redington Beach Madeira Beach Indian Rocks...