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SORRENTO VILLAS7510 Harding Ave, Miami Beach FL 33141

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

SORRENTO VILLASCONTENTS

Exclusively Marketed by:

Marilina ApfelbaumLicensed Real Estate Associate

(786) 287-3633

[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 3

Location Summary 5

02 Property Description Property Features 6

Aerial Map 7

Property Images 8

04 Sale Comps Sale Comparables 9

Sale Comparables Charts 11

Sale Comparables Map 12

05 Room Rates Room Rate Summary 13

06 Financial Analysis Income & Expense Analysis 14

Multiyear Cash Flow Assumptions 15

Cash Flow Analysis 16

Disposition Sensitivity Analysis 18

07 Demographics Demographics 19

Demographic Charts 20

SORRENTO VILLAS Investment Summary | 03

OFFERING SUMMARY

ADDRESS 7510 Harding AveMiami Beach FL 33141

COUNTY Miami Dade

MARKET Miami Beach

SUBMARKET North Beach Town Center

BUILDING SF 8,349

TOTAL ROOMS 21

LAND SF 11,000 SF

YEAR BUILT 1956

YEAR RENOVATED 2015

APN 02-3202-007-0790

OWNERSHIP TYPE Fee Simple

FINANCIAL SUMMARY

OFFERING PRICE $5,000,000

PRICE PER KEY $238,095

PRICE PSF $598.87

OCCUPANCY 80.00 %

NOI (CURRENT) $446,567

CAP RATE (CURRENT) 8.93 %

CAP RATE (Today's Market) 13.92 %

ADR (CURRENT) $103

ADR (Today's Market) $122

REV PAR (CURRENT) $103

REV PAR (Today's Market) $122

DEMOGRAPHICS 1 MILE 3 MILE 5 MILE

2019 Population 25,479 74,815 207,546

2019 Median HH Income $41,966 $58,464 $51,038

2019 Average HH Income $69,372 $98,882 $85,649

Marilina Apfelbaum presents the 21-room Sorrento Villas Hotel.

The hotel is located in Miami Beach, Florida, two blocks west ofNorth Beach and situated a few blocks away from the future re-development of North Beach Town Center.

The Sorrento Villas is currently operating below competitive setADR and Occupancy.

The Hotel will be offered unencumbered by management,allowing a new operator to employ more aggressive sales,marketing, and revenue management techniques.

Location of zoning change is between Indian Creek Drive,Dickens Avenue, 72nd Street, Collins Avenue, and 69th Street.

• Developer plans to build two 220-foot-tall buildings at 71stStreet and Abbot Avenue that will be geared toward recentcollege graduates.

• The zoning also allowed developers to build small hotel rooms

and apartment units in order to encourage market-rate

affordable units.

SORRENTO VILLAS Investment Summary | 04

SORRENTO VILLAS Location Summary | 05

North Beach is the new South Beach.North Beach Master Plan Draft Revealed: What youneed to knowOn Tuesday, June 7, urban planning agency Dover,Kohl & Partners presented their North Beach masterplan draft to a packed room that included residents,community leaders and business owners. SinceDecember 2015, the firm has been diligentlycollecting data for the study that stretches from theAtlantic Ocean to the Bay and from 63rd Street to87th Terrace.

The agency synthesized all the information theygathered into five distinct “big ideas” that wouldcompletely reshape the area.

At the top of that list was the redesign of TownCenter that would make 71st street more walkableand include more mix use buildings. Additional partsof this plan includes more parking, an extension ofthe beachwalk and even revamping the ByronCarlyle Theater.

“My business is growing and eventually I will needmore office space,” said Megan Fitzpatrick, whoattended the meeting and will eventually need officespace for her consulting business. “I love the idea ofgrowing my business in area that is also growing. Iwould consider having my business headquartered inthis area.”

The study also included more transportation optionsfor residents and guests to get around with ease. Onthe heels of the City of Miami Beach TransportationMaster Plan, the draft would hope to create a trolleyservice that connects to Mid-Beach and South Beachand create dedicated bus lanes, to name a few of thesuggestions.

The draft also addressed Sea Level Rise concernsand stressed the importance of making “resilientinvestments,” implementing beach replenishmentprograms, developing storm water infrastructuresand building dikes-in-dunes. They would also like toraise streets, sea walls, and buildings.

One of the most controversial parts of the study wasto create two new local historic districts: The NorthShore Local Historic District and the Normandy IslesLocal Historic District. This would protect historicstructures from demolition. Additionally, they hopeto add two Conservation districts that would protectthe scale of an area but allow owners to replacebuildings that are dilapidated. At the meeting, therewas discussion over Transfer of Development Rights(TDR), which means development rights would betransferred from one district to another with theobjective of enhancing the “receiving” district. Therewere also talks of holding workshops to discussadaptive reuse of areas and new constructionprojects. They spoke of including affordable housing,transforming the area around the fountain into apedestrian oriented shopping district and creating aBID to help with shaping the area.

However, some had their doubts regarding someparts of the plan. “It’s great that Miami Beachrecalibrates its narrative but we need moreincentives for developers instead of furtherrestrictions,” said President of the North BeachProperty Owners Association Matis Cohen. “We haveto look at sea level rise as a matter fact and stoparguing about it. The majority of housing is 3 to 4feet below sea level. How do you protect propertythat is below sea level? The city has to raise the landand incentivize new development.”

The master planners also included a section on theredesign of public lands. One area that would beredeveloped is the 72nd Street Parking lot. Theyenvision adding green space, a recreational field andeven a skate park to the space.

The enhancement of the West Lots, which consistsof eight half blocks fronting Collins Avenue acrossfrom North Shore Open Space Park, was addressed.The most popular idea for this area would be thedevelopment of it into a low scale residential section,which would include public use as well.

On Wednesday, June 8, the Miami Beach CityCommission imposed a six-month moratorium ondemolition in North Beach. This would protectstructures from being destroyed until the historicdistricts were approved.

Regional Map

Locator Map

SORRENTO VILLAS Property Features | 06

PROPERTY FEATURES

TOTAL ROOMS 21

BUILDING SF 8,349

LAND SF 11,000

YEAR BUILT 1956

YEAR RENOVATED 2015

# OF PARCELS 1

ZONING TYPE 3900 MULTI-FAMILY - 38-62 U/A

BUILDING CLASS B

LOCATION CLASS A

NUMBER OF STORIES 2

NUMBER OF BUILDINGS 1

LOT DIMENSION 100.000 X 110

NUMBER OF PARKING SPACES 4

MECHANICAL

HVAC Split

CONSTRUCTION

EXTERIOR CBS

PARKING SURFACE ASPHALT

ROOF FLAT

WINDOWS IMPACT

AMENITIES

ICE/VENDING MACHINES YES

WIFI YES

SORRENTO VILLAS Aerial Map | 07

SORRENTO VILLAS Property Images | 08

SORRENTO VILLAS Sale Comparables | 09

1

Villa Italia Hotel354 Washington AveMiami Beach, FL 33139

# OF KEYS 14

YEAR BUILT 1926

SALE PRICE $5,150,000

SALE PER SF $784

CLOSING DATE 5/30/2017

DISTANCE 7.2 miles

Price/Key $238,095 - $383,333

LOW HIGH

ADR

LOW HIGH

Notes Built on 1926 & Renovated 2015

2

Hotel Ipala1221 Collins AveMiami Beach, FL 33139

# OF KEYS 17

YEAR BUILT 1931


SALE PER SF $535


DISTANCE 5.9 miles

Price/Key $238,095 - $383,333

LOW HIGH

ADR

LOW HIGH

SORRENTO VILLAS Sale Comparables | 10

3

Sogno Di Mare8118 HardingMiami Beach, FL 33141

# OF KEYS 12

YEAR BUILT 1946


SALE PER SF $335


DISTANCE 0.6 miles

Price/Key $238,095 - $383,333

LOW HIGH

ADR

LOW HIGH

S

SORRENTO VILLAS7510 Harding AveMiami Beach, FL 33141

# OF KEYS 21

YEAR BUILT 1956

ASKING PRICE $5,000,000

CAP RATE 8.93 %

ADR $103

REV PAR $103

OCCUPANCY 80.00 %

Cap Rate Range 8.93 % - 8.93 %

LOW HIGH

Price/Key $238,095 - $383,333

LOW HIGH

ADR $103 - $103

LOW HIGH

SORRENTO VILLAS Sale Comparables Charts | 11

SORRENTO VILLAS Sale Comparables Map | 12

# Property Name Address City

S SORRENTO VILLAS 7510 Harding Ave Miami Beach

1 Villa Italia Hotel 354 Washington Ave Miami Beach

2 Hotel Ipala 1221 Collins Ave Miami Beach

3 Sogno Di Mare 8118 Harding Miami Beach

SORRENTO VILLAS Room Rate Summary | 13

Number OfUnits

Units SF Room Type In-Season Price Off-Season Price Notes

9 700 Big Studio with Kitchen $120 $100

8 300 Studio with fridge andmicro on closet

$100 $80

4 1200 Giant one Bedroom $150 $120

SORRENTO VILLAS Income & Expense Analysis | 14

INCOME CURRENT TODAY'SMARKET

Gross Room Revenue $790,800 $938,050

Restaurant Income $20,000

Parking $6,000

Other Income $12,000

Gross Potential Income $790,800 $976,050

Less: General Vacancy $158,160 $93,805

Effective Gross Income $632,640 $882,245

Less: Expenses $186,073 $186,073

Net Operating Income $446,567 $696,172

EXPENSES CURRENT TODAY'SMARKET

Real Estate Taxes $33,207 $33,207

Insurance $22,500 $22,500

Salaries $92,506 $92,506

Repairs & Maintenance $8,000 $8,000

Water / Sewer $11,000 $11,000

Landscaping $1,560 $1,560

Utilities $17,300 $17,300

Total Operating Expense $186,073 $186,073

Expense / SF $22.28 $22.28

% of EGI 29.41 % 21.09 %

REVENUE ALLOCATION

DISTRIBUTION OF EXPENSES

SORRENTO VILLAS Multiyear Cash Flow Assumptions | 15

GLOBAL

Sale Price $5,000,000

Analysis Period 10 year(s)

SORRENTO VILLAS Cash Flow Analysis | 16

CASH FLOW

Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueGross Room Revenue $790,800 $938,050 $966,192 $995,177 $1,025,033 $1,055,784 $1,087,457 $1,120,081 $1,153,683 $1,188,294

Restaurant Income $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000

Parking $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000

Other Income $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000

Gross Potential Income $790,800 $976,050 $1,004,192 $1,033,177 $1,063,033 $1,093,784 $1,125,457 $1,158,081 $1,191,683 $1,226,294

General Vacancy $158,160 $93,805 $0 $0 $0 $0 $0 $0 $0 $0

Effective Gross Income $632,640 $882,245 $1,004,192 $1,033,177 $1,063,033 $1,093,784 $1,125,457 $1,158,081 $1,191,683 $1,226,294

Operating ExpensesReal Estate Taxes $33,207 $33,207 $33,207 $33,207 $33,207 $33,207 $33,207 $33,207 $33,207 $33,207

Insurance $22,500 $22,500 $22,500 $22,500 $22,500 $22,500 $22,500 $22,500 $22,500 $22,500

Salaries $92,506 $92,506 $92,506 $92,506 $92,506 $92,506 $92,506 $92,506 $92,506 $92,506

Repairs & Maintenance $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000

Water / Sewer $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000

Landscaping $1,560 $1,560 $1,560 $1,560 $1,560 $1,560 $1,560 $1,560 $1,560 $1,560

Utilities $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300

Total Operating Expense $186,073 $186,073 $186,073 $186,073 $186,073 $186,073 $186,073 $186,073 $186,073 $186,073

Net Operating Income $446,567 $696,172 $818,119 $847,104 $876,960 $907,711 $939,384 $972,008 $1,005,610 $1,040,221

Effective Gross Income vs Operating Expenses Cash Flow

SORRENTO VILLAS Cash Flow Analysis | 17

Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial MetricsCash on Cash Return b/t 8.93 % 13.92 % 16.36 % 16.94 % 17.54 % 18.15 % 18.79 % 19.44 % 20.11 % 20.80 %

CAP Rate 8.93 % 13.92 % 16.36 % 16.94 % 17.54 % 18.15 % 18.79 % 19.44 % 20.11 % 20.80 %

Operating Expense Ratio 29.41 % 21.09 % 18.52 % 18.00 % 17.50 % 17.01 % 16.53 % 16.06 % 15.61 % 15.17 %

Gross Multiplier (GRM) 6.32 5.12 4.98 4.84 4.70 4.57 4.44 4.32 4.20 4.08

Breakeven Ratio 29.41 % 21.09 % 18.53 % 18.01 % 17.50 % 17.01 % 16.53 % 16.07 % 15.61 % 15.17 %

Price / SF $598.87 $598.87 $598.87 $598.87 $598.87 $598.87 $598.87 $598.87 $598.87 $598.87

Income / SF $75.77 $105.67 $120.27 $123.74 $127.32 $131.00 $134.80 $138.70 $142.73 $146.87

Expense / SF $22.28 $22.28 $22.28 $22.28 $22.28 $22.28 $22.28 $22.28 $22.28 $22.28

ADR $103.17 $122.38 $126.05 $129.83 $133.73 $137.74 $141.87 $146.13 $150.51 $155.03

Rev Par $103.17 $122.38 $126.05 $129.83 $133.73 $137.74 $141.87 $146.13 $150.51 $155.03

SORRENTO VILLAS Disposition Sensitivity Analysis | 18

5 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES

PRICESALES PRICE/KEY PROCEEDS AFTER

LOAN PAYOFFIRR

0.25% $350,783,825 $42,015 $350,783,825 138.03%

0.50% $175,391,912 $21,008 $175,391,912 108.35%

0.75% $116,927,942 $14,005 $116,927,942 92.94%

1.00% $87,695,956 $10,504 $87,695,956 82.81%

1.25% $70,156,765 $8,403 $70,156,765 75.41%

1.50% $58,463,971 $7,003 $58,463,971 69.63%

1.75% $50,111,975 $6,002 $50,111,975 64.94%

2.00% $43,847,978 $5,252 $43,847,978 61.02%

2.25% $38,975,981 $4,668 $38,975,981 57.66%

10 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES

PRICESALES PRICE/KEY PROCEEDS AFTER

LOAN PAYOFFIRR

0.25% $416,088,270 $49,837 $416,088,270 59.56%

0.50% $208,044,135 $24,918 $208,044,135 49.84%

0.75% $138,696,090 $16,612 $138,696,090 44.60%

1.00% $104,022,068 $12,459 $104,022,068 41.08%

1.25% $83,217,654 $9,967 $83,217,654 38.46%

1.50% $69,348,045 $8,306 $69,348,045 36.41%

1.75% $59,441,181 $7,120 $59,441,181 34.73%

2.00% $52,011,034 $6,230 $52,011,034 33.32%

2.25% $46,232,030 $5,537 $46,232,030 32.10%

SORRENTO VILLAS Demographics | 19

POPULATION 1 MILE 3 MILE 5 MILE

2000 Population 26,546 66,218 188,156

2010 Population 24,514 66,359 188,927

2019 Population 25,479 74,815 207,546

2024 Population 26,338 78,807 218,313

2019 African American 1,232 3,476 53,630

2019 American Indian 106 177 693

2019 Asian 344 1,337 4,027

2019 Hispanic 18,989 46,845 98,955

2019 White 21,899 65,534 135,324

2019 Other Race 1,108 2,300 7,104

2019 Multiracial 778 1,960 6,678

2019-2024: Population: Growth Rate 3.35 % 5.25 % 5.10 %

2019 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE

less than $15,000 2,004 4,287 12,865

$15,000-$24,999 1,926 3,707 9,978

$25,000-$34,999 1,400 2,787 7,962

$35,000-$49,999 1,672 4,271 11,996

$50,000-$74,999 2,212 5,904 13,732

$75,000-$99,999 1,099 3,670 8,576

$100,000-$149,999 1,010 4,293 9,824

$150,000-$199,999 334 1,921 4,232

$200,000 or greater 816 4,310 8,086

Median HH Income $41,966 $58,464 $51,038

Average HH Income $69,372 $98,882 $85,649

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

2000 Total Housing 14,815 41,011 98,210

2010 Total Households 12,093 31,681 80,467



2019 Average Household Size 2.04 2.12 2.33

2000 Owner Occupied Housing 4,142 14,409 37,100

2000 Renter Occupied Housing 8,153 16,846 42,230



2019 Vacant Housing 3,732 15,117 28,409

2019 Total Housing 16,205 50,266 115,660



2024 Vacant Housing 3,849 15,648 29,343

2024 Total Housing 16,694 52,491 120,743

2019-2024: Households: Growth Rate 2.95 % 4.75 % 4.65 %

Source: esri

SORRENTO VILLAS Demographic Charts | 20

1 Mile Radius 3 Mile Radius 5 Mile Radius

2019 Household Income

1 Mile Radius 3 Mile Radius 5 Mile Radius

2019 Population by Race

SORRENTO VILLAS Demographic Charts | 21

2019 Household Occupancy - 1 Mile Radius

Average Income Median Income

2019 Household Income Average and Median

SORRENTO VILLAS

Exclusively Marketed by:

Marilina ApfelbaumLicensed Real Estate Associate

(786) 287-3633

[email protected]

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SORRENTO VILLAS - LoopNet · allowing a new operator to employ more aggressive sales, marketing,...

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