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OFFERING MEMORANDUMWaldorf at Coral RidgeAPARTMENTS
4901 NE 26TH AVENUE & 2501 NE 49TH STREET
INVESTMENT CONTACTSBRADLEY ARENDTVice President+1 773 343 [email protected]
MIKA MATTINGLYExecutive Vice President+1 786 517 [email protected]
BRITTANY O’CONNORAssociate+1 954 652 [email protected]
COLLIERS INTERNATIONAL SOUTH FLORIDA, LLC200 E Broward Blvd, Suite 120Fort Lauderdale, FL 33301
CONT
ENTS
This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, rep-resentations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2018. All rights reserved.
Waldorf at Coral RidgeAPARTMENTS
PAGE 2
CONT
ENTS THE OFFERING
REHABILITATION POTENTIAL
FINANCIALS
COMPARABLE SALES
MARKET OVERVIEW
0406121618
PAGE 3
THE OFFERINGColliers International is pleased to present the opportunity to acquire the Waldorf at Coral Ridge Apartments, an 18-unit apartment complex within the every wealthy Coral Ridge neighborhood of Fort Lauderdale.
The Property consists of two adjacent buildings with 7* units in one building and 11 units in the other, along with a pool. Details of the offering are provided in the upcoming pages.
INVESTMENT SUMMARY
Address4901 NE 26th Avenue & 2501 NE 49th StreetFort Lauderdale, FL 33312
Zoning RMM-25
Site Area 26,053 SF
Building Size 12,745 SF
Units 18
Parking 22 spaces
Price $3,000,000
PAGE 4
*There is one non-conforming unit.
PAGE 5
Waldorf at Coral RidgeAPARTMENTS
PAGE 6
4901 NE 26TH AVENUE11 UNITS
2501 NE 49TH STREET7* UNITS
Waldorf at Coral Ridge Apartments has massive untapped potential. The building stands in good shape but has not been updated in some time and could greatly benefit from some much needed interior updates. The Property is in a very affluent neighborhood and rents could be raised significantly with improvements.
REHABILITATIONPOTENTIAL
12,745 SF TOTAL BUILDING AREA
4901 NE 26th Avenue & 2501 NE 49th Street PROPERTY ADDRESS
1965YEAR BUILT
Two-StoryNO. OF FLOORS
Concrete Block CONSTRUCTION
RMM-25ZONING
Wall Unit AC’sHVAC SYSTEM
Water, electricity UTILITIES
PAGE 7 *There is one non-conforming unit.
COMMERCIAL BOULEVARD
EAST
Waldorf at Coral RidgeAPARTMENTS
COMMERCIAL BOULEVARD
Waldorf at Coral RidgeAPARTMENTS
WEST
COMMERCIAL BOULEVARD
FEDERAL HIGHWAY
Unit Tenant Lease Start Lease End Bed/Bath Rent Deposits Held
2501-1 Figura 2/1/2018 1/31/2019 1 Bed/1 Bath $925 $390
2501-2 Casey 2/1/2018 1/31/2019 1 Bed/1 Bath $925 $0
2501-3a Cleary 2/1/2018 1/31/2019 1 Bed/1 Bath $925 $1,600
2501-3b Frascat 12/1/2007 11/30/2018 1 Bed/1 Bath $725 $475
2501-4 Yglesias 11/15/2017 10/31/2018 2 Bed/2 Bath $1,250 $760
2501-5 Johnson 2/1/2018 1/31/2019 1 Bed/1 Bath $850 $0
2501-6 Silverman 3/1/2017 Month-to-Month 1 Bed/1 Bath $1,060 $1,830
4901-1 Scancarelli 6/1/2017 Month-to-Month 2 Bed/2 Bath $1,200 $1,095
4901-2 Harbett 7/1/2017 6/30/2019 1 Bed/1 Bath $960 $546
4901-3 Van Ness 11/1/2017 10/30/2018 1 Bed/1 Bath $975 $775
4901-4 Veile 8/1/2018 7/31/2019 1 Bed/1 Bath $1,075 $850
4901-5 Sabbath 11/19/2017 11/30/2019 1 Bed/1 Bath $1,050 $1,315
4901-6 Baum 11/4/2017 10/31/2018 1 Bed/1 Bath $1,000 $1,800
4901-7 Beres 2/1/2018 1/31/2019 1 Bed/1 Bath $1,000 $625
4901-8 Adrien 4/14/2018 3/31/2019 2 Bed/1 Bath $1,100 $2,000
4901-9 Voip/Finkle 4/1/2017 Month-Month 1 Bed/1 Bath $1,100 $2,020
4901-10 Busse 12/8/2017 11/30/2018 1 Bed/1 Bath $1,000 $800
4901-11 de Sousa 2/5/2018 1/31/2019 1 Bed/1 Bath $1,025 $725
Total for Waldorf at Coral Ridge Apartments $18,145 $17,606
CURRENT RENT ROLL
PAGE 12 FINA
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PROFORMA Scenario 1- Regular Multifamily
Unit Bed/Bath Market Rent Units Occupied
Pro-Forma Rent
2501-1 1 Bed/1 Bath $925 1 $1,325
2501-2 1 Bed/1 Bath $925 1 $1,325
2501-3a 1 Bed/1 Bath $925 1 $1,325
2501-3b 1 Bed/1 Bath $725 1 $1,025
2501-4 2 Bed/2 Bath $1,250 1 $1,595
2501-5 1 Bed/1 Bath $850 1 $1,325
2501-6 1 Bed/1 Bath $1,060 1 $1,325
4901-1 2 Bed/2 Bath $1,200 1 $1,585
4901-2 1 Bed/1 Bath $960 1 $1,325
4901-3 1 Bed/1 Bath $975 1 $1,325
4901-4 1 Bed/1 Bath $1,075 1 $1,325
4901-5 1 Bed/1 Bath $1,050 1 $1,325
4901-6 1 Bed/1 Bath $1,000 1 $1,325
4901-7 1 Bed/1 Bath $1,000 1 $1,325
4901-8 2 Bed/1 Bath $1,100 1 $1,450
4901-9 1 Bed/1 Bath $1,100 1 $1,325
4901-10 1 Bed/1 Bath $1,000 1 $1,325
4901-11 1 Bed/1 Bath $1,025 1 $1,325
Total for Waldorf at Coral Ridge Apartments $18,145 18 $24,205
PAGE 13
FY2 (STABIL IZED) PROFORMA
Income Annually Monthly Per Unit Monthly Per Unit
Current Market Rent $313,912.20 $26,159.35 $17,439.57 $1,453.30
Proj Market Rent Increase $9,417.37 $784.78 $523.19 $43.60
Rent Increase Due to Capex $0.00 $0.00 $0.00 $0.00
PROJECTED MARKET RENT $323,329.57 $26,944.13 $17,962.75 $1,496.90
Gain/Loss-to-Lease -$3,233.30 -$269.44 -$179.63 -$14.97
GROSS POTENTIAL RENT $320,096.27 $26,674.69 $17,783.13 $1,481.93
Vacancy Loss -$9,602.89 -$800.24 -$533.49 -$44.46
Rent Concessions $0.00 $0.00 $0.00 $0.00
Net Bad Debt Expense -$6,401.93 -$533.49 -$355.66 -$29.64
EFFECTIVE RENTAL INCOME $304,091.46 $25,340.95 $16,893.97 $1,407.83
Economic Occupancy 97% 8% 5% 0%
Garage Income $0.00 $0.00 $0.00 $0.00
Utility Reimbursements $0.00 $0.00 $0.00 $0.00
Other Income $0.00 $0.00 $0.00 $0.00
EFFECTIVE GROSS INCOME $304,091.46 $16,893.97 $0.00
Pricing Summary
Purchase Price $3,000,000
FY 2 NOI $182,308.51
Going In Cap Rate 1.83%
FY 1 Capital Expenditures $200,000.00
Total Equity $3,200,000.00
Post Cap Ex Cap Rate 5.70%
PAGE 14 FINA
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Expenses Annual Monthly Per Unit Monthly Per Unit
Payroll $0.00 $0.00 $0.00 $0.00
Repairs & Maintenance $4,590.00 $382.50 $255.00 $21.25
Turnover / Make Ready $1,836.00 $153.00 $102.00 $8.50
Landscaping / Contract Services $3,672.00 $306.00 $204.00 $17.00
Utilities $16,891.20 $1,407.60 $938.40 $78.20
Supplies $4,590.00 $382.50 $255.00 $21.25
Leasing Commissions & Marketing $3,672.00 $306.00 $204.00 $17.00
Legal, Licenses and Fees $2,295.00 $191.25 $127.50 $10.63
CONTROLLABLE EXPENSES $37,546.20 $3,128.85 $2,085.90 $173.83
Insurance $17,442.00 $1,453.50 $969.00 $80.75
Real Estate Taxes $54,000.00 $4,500.00 $3,000.00 $250.00
Management Fees $9,122.74 $760.23 $506.82 $42.23
FIXED EXPENSES $80,564.74 $6,713.73 $4,475.82 $372.98
TOTAL OPERATING EXPENSES $118,110.94 $9,842.58 $6,561.72 $546.81
Capital Reserves $3,672.00 $306.00 $204.00 $17.00
TOTAL EXPENSES $121,782.94 $10,148.58 $6,765.72 $563.81
NET OPERATING INCOME $182,308.51 $15,192.38 $10,128.25 $844.02
PAGE 15
PAGE 16
550 NE 20TH STREET
16 UNITS
$2,500,000 / $156,250 PER UNIT
1400 NE 53RD COURT
33 UNITS
$5,575,000 / $168,939 PER UNIT
COMPARABLE SALES
PAGE 17
640 NE 7TH AVENUE
12 UNITS
$2,900,000 / $241,667 PER UNIT
2710-2718 NE 14TH STREET
13 UNITS
$3,250,000 / $250,000 PER UNIT
2400 NE 26TH STREET
18 UNITS
$4,950,000 / $275,000 PER UNIT
4340 SEA GRAPE DR
10 UNITS
$1,700,000 / $170,000 PER UNIT
COMPARABLE SALES
Waldorf at Coral RidgeAPARTMENTS
#1 Best Beach & Sun for Family Fun - TripAdvisor.com1 #1 Florida Family Beach
- HomeAway.com2#2 Best Beach Vacations in Florida
- TripAdvisor.com3 Most Popular U.S. Beaches - The Daily Beast4
Top 5 Best Florida Beaches - U.S. News and World Report5 Top 10 Best Places to go in Florida
- Smartertravel.com6Top 10 Most Popular Summer Destinations
– Hopper.com7 Top 10 Summer Vacation Destinations - AAA Travel8
Top 10 Great Cities for Family Vacations - Vacation Critic Travel Planning Guide9 Top 10 Most Exciting Places in Florida
- Movoto National Real Estate10
CORAL RIDGE
Coral Ridge is an upscale residential neighborhood with an abundance of navigable canals in east Fort Lauderdale proximate to the Central Business District to the west and the beaches to the east. It takes its name from the ridge of Coral that it sits on. The neighborhood is located on the west side of the Intracoastal Waterway and bounded by Sunrise Boulevard to the north and Oakland Park Boulevard to the south.
Coral Ridge is known for being one for Fort Lauderdale’s most affluent neighborhood and a favorite among boating enthusiasts. The neighborhood consists primarily of waterfront and dry lot single family homes on large plots of land, as well as the popular Coral Ridge Yacht Club and Marina. On the southern end of the neighborhood is the upscale Galleria Mall and to the west is the world-famous Las Olas Boulevard. Furthermore, the proximity to downtown Fort Lauderdale also offers Coral Ridge residents with an abundance of shopping, entertainment and dining options.
MARKETOVERVIEW
PAGE 18
FORT LAUDERDALE APARTMENT OVERVIEW
Fort Lauderdale’s demand has been strong due to population growth that, for the past five years, has been about double the metro average. This has caused the median age in the submarket, which was already the highest in the metro, to rise even higher. This could mean that a portion of the new residents are empty nesters looking to downsize. Fortunately, about 42% of the popula-tion still rents apartments. While demand is strong overall, developers have been busy bringing the first post-recession wave of new product to Fort Lauderdale. Centered on downtown and adjacent neighborhoods, more than 1,000 units delivered in 2017. Slowing rent growth on the metro level has also affected the Fort Lauderdale Submarket, where rent growth slowed even more than the metro average through the summer of 2017. Still, late last year the submarket maintained enough momentum to seize the first place spot for most expensive rents.
DOWNTOWN FORT LAUDERDALE
Downtown Fort Lauderdale has been transformed into a walkable “live, work & play” cosmopolitan environment. The CBD offers over 4.4 million square feet of class A office space and a wide variety of housing with hundreds of restaurants, shops, attractions, and amenities. Since the 1900’s, the Las Olas Corridor has been the heart and soul of Fort Lauderdale. Not only is this unique and eclectic shopping and dining district well-positioned to enjoy the views of the New River that runs through the heart of the City, the Boulevard provides a primary connection from downtown to the beach. Designed to spur economic growth, the City succeeded in developing a “must-visit” international dining and shopping destination. The area features over 30 al fresco dining options, 10 major international art galleries, 3 world class museums, and 75 fashion boutiques and shops. Until recently, the CBD offered one charming historic hotel in downtown leading many visitors to stay at the beach.
PAGE 19
BEACHES More than seven miles of sparkling beaches run along the Atlantic Ocean on the East side of the City attracting thousands of visitors each year. The City’s award-winning wavewall and signature beachfront promenade highlight Fort Lauderdale’s world-famous coastline, where tourists and locals can find numerous shops, restaurants and cafes. The beach also offers a variety of activities including boating, jet skiing and volleyball.
PORT EVERGLADES Port Everglades is one of the busiest cruise
ports in the world ranking as the top seaport in Florida by revenue ($162.6 million in 2016) and the
number one Florida seaport for exports ($11.7 billion in 2016). It is the leading container port in Florida and the
tenth most active cargo port in the United States ranked by volume (1,037,226 TEUs). Port Everglades offers cruises to
more than 3.8 million passengers each year (2016). A number of capital and improvements in the Port’s Five Year Master Plan position the port to expand operations to 5.6 million passengers in 2033. Port
Everglades has also been selected as “World’s Top Cruise Port” multiple times by Seatrade Insider. During the FY2016 cruise season, Port Everglades
set multiple record breaking days for the number of cruise guests passing through Port Everglades in a single day. Interest in Port Everglades grows as the
UBM Seatrade Cruise Global Convention moves to Fort Lauderdale from Miami and will be held each March through 2018. The conference is the largest of its kind in the
world and attracts more than 800 exhibitors and approximately 10,000 attendees annually.
MARKETDRIVERS
PAGE 20
INTERNATIONAL EVENTSFort Lauderdale is home to one of the world’s premier recreational marine
events, the Fort Lauderdale International Boat Show, attracting more than 130,000 visitors annually and appealing to buyers from all over
the globe. The Boat Show started as a small local exhibition in 1959, and grew to become the largest boat show in the world
and the largest single event in the State of Florida. The Boat Show’s annual economic impact is estimated to contribute
approximately $857 million to the overall economy in the state of Florida, considerably more than the Super
Bowl. Spring Break in Fort Lauderdale is another annual attraction where an estimated 10,000-
12,000 visitors come to enjoy the nightlife. Other major events attracting thousands of tourists
each year include the Fort Lauderdale Air Show, Fort Lauderdale A1A Marathon,
Fort Lauderdale International Film Festival, Fort Lauderdale Orchid
Show, Las Olas Arts Festival and the Wine & Culinary.
FORT LAUDERDALE CONVENTION CENTER The Fort Lauderdale Convention Center is South Florida’s premiere waterfront conference center– a stunning 600,000 square foot facility. This three-story convention center contains 200,000 square feet of exhibit hall space, a 33,000-square foot and a 20,000-square foot ballroom; 54,325 square feet of meeting space, 101,276 square feet of pre-function/registration space, 22,000 square feet of food preparation area and a 2,500-space parking garage. A proposed $550 million expansion project would add 400,000+ square feet and an 800-room headquarters hotel to the site by 2021, thus increasing tourism and the number of jobs in the area. Each year, the Convention Center holds more than 120 events bringing 350,000 visitors to the area.
PAGE 21
FORT LAUDERDALE-HOLLYWOOD INTERNATIONAL AIRPORT Fort Lauderdale’s economic well-being is intrinsically entwined with Fort Lauderdale-Hollywood International Airport (FLL) system and its robust aviation industry. One of the nation’s fastest growing airports, FLL, offers domestic and international flights in conjunction with nearby Miami International and Palm Beach International Airports. It is ranked as the 21st busiest airport in the country transporting 29.2 million passengers in and out of Fort Lauderdale in 2016 and a projected 33 million passengers in 2017. FLL offers more than 346 departure flights each day transporting approximately 80,000 passengers through the four terminals with an average 144 seats per departure. Twelve new international cities were added in 2016 for a total of 140 destinations served, an increase of 13 percent over 2015.
Major improvement and renovation projects at FLL Airport (FLLAIR): • The new South Runway opened in September 2014 • Terminal 4 will expand from 10 to 14 gates with more international
gates • The Terminal Modernization Program will upgrade and improve
Terminals 1, 2, and 3 • Concourse A in Terminal 1 opened in July 2017 with five gates for
both international and domestic flights
The most recent data from Airports Council International for July 2017 shows FLL: • Fastest growing large hub airport for the 12 months ending July. • Ranked 10th in international traffic for January-July.
BRIGHTL INE EXPRESS INTERCITY RAILFlorida East Coast Industries’ $3 billion high-speed rail service named Brightline connecting Fort Lauderdale to West Palm Beach and Miami is scheduled to commence service by the end of 2017. Future plans include linking Orlando, Tampa and Jacksonville to the line. Poised to further Fort Lauderdale’s position as a fully connected “City of Tomorrow,” the Downtown Fort Lauderdale station will provide a new gateway into the city connecting to the Sun Trolley, Broward County Transit System and the future Wave Streetcar. With visitors to Florida exceeding 100 million, Brightline will connect four large tourist destinations, offering convenient transportation and encouraging extended visits in Florida.
PAGE 22
KEY FACTS
15,612Population
53.8
Median Age
1.9
AverageHousehold Size
$64,831Median Household
Income
EDUCATION
7%
No HighSchool
Diploma 24%High School
Graduate
27%Some College 42%
Bachelor's/Grad/ProfDegree
BUSINESS
1,457Total Businesses
13,134Total Employees
EMPLOYMENT
70%White Collar
15%Blue Collar
16%Services
4.1%
UnemploymentRate
INCOME
$64,831Median Household
Income
$56,278Per Capita Income
$121,993Median Net Worth
Households By IncomeThe largest group: $50,000 - $74,999 (15.8%)
The smallest group: $150,000 - $199,999 (7.6%)Indicator Value Difference
<$15,000
$15,000 - $24,999
$25,000 - $34,999
$50,000 - $74,999
$35,000 - $49,999
$75,000 - $99,999
$100,000 - $149,999
$200,000+
$150,000 - $199,999
10.4%
9.3%
8.3%
15.8%
11.3%
13.5%
10.6%
7.6%
13.1%
-0.4%
-1.9%
-0.5%
-2.3%
-2.6%
-1.5%
0
+7.2%
+1.9%
Bars show deviation from
Broward County
KEY FACTS
BUSINESS
INCOME
DEMOGRAPHICS
PAGE 23
CONTACT DETAILS
BRADLEY ARENDTVice President+1 773 343 [email protected]
MIKA MATTINGLYExecutive Vice President+1 786 486 [email protected]
BRITTANY O’CONNORAssociate+1 954 652 [email protected]
Colliers International South Florida, LLC801 Brickell Avenue, Suite 850Miami, FL 33131+1 305 359 3690
Commercial Real Estate Services
THIS IS A CONFIDENTIAL MEMORANDUM intended solely for your own limited use to determine whether you wish to express any further interest in the Property. This confidential memorandum contains brief, selected information pertaining to the business and affairs of the Property and has been prepared by Colliers International South Florida, LLC, primarily from information supplied by the Owner. Although this confidential memorandum has been reviewed by representatives of the Owner, it does not propose to be all-inclusive, nor does it contain all the information which a prospective purchaser may require or desire. Neither the Owner, nor any of its officers, directors, employees or agents, nor Colliers International South Florida, LLC, makes any representation or warranty, expressed or implied, as to the accuracy or completeness of this confidential memorandum or any of its contents, and no legal liability is assumed or is to be implied by any of the aforementioned with respect thereto. Prospective offers are advised to verify the information independently. The Owner reserves the right to change the price or any information in this Memorandum, or to withdraw the Property from the market at any time, without notice. This confidential memorandum shall not be deemed an indication of the state of affairs of the Property or the Owner, nor shall it constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of this memorandum. By your receipt of this confidential memorandum, you agree that the information contained herein is of a confidential nature and you will not disclose this memorandum or any part of the contents to any other person, firm or entity without prior authorization from Colliers International South Florida, LLC.
OFFERING PROCEDUREOffers should be submitted in the form of a non-binding Letter of Intent and must specify the following:PriceLength of Inspection PeriodLength of Closing PeriodAmount of earnest money deposit at execution of a Purchase and Sale Contract, andAmount of additional deposit upon expiration of Inspection Period
Waldorf at CoralAPARTMENTS
