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CONFIDENTIALITY AGREEMENT
2Beaches I
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Consortium Capital and it should not be made available to any other person or entity without the written consent of Consortium Capital.
By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any partof the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to Consortium Capital. This offering memorandum has been prepared to provide summary, unverified financial and physical 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. Consortium Capital has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence of absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or 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 offering memorandum has been obtained from sources we believe reliable; however, Consortium Capital has not verified, and will not verify, any of the information contained herein, nor has Consortium Capital conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.
Please do not contact on-site staff directly.
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT A CONSORTIUM CAPITAL ADVISOR FOR MORE DETAILS.
Exclusively Listed By:
Harry [email protected]
Carter CollisonSenior [email protected]
Consortium Capital, LLCLicensed Real Estate Broker
180 South Knowles Avenue Suite 3Winter Park, FL 32789
Beaches I
PORTFOLIO OVERVIEW
Portfolio Description
The Beaches Portfolio’s (the “Portfolio”) five recently-renovated, resort-stylemultifamily properties provide a prospective buyer turnkey operation withindynamic beachside and bayfront markets that are expected to experience strongrental demand growth. Currently 100% occupied, the Portfolio’s in-place rentsaverage $1,359 per unit and present an immediate opportunity for a new buyer toincrease rental rates.
The Portfolio units include a combination of one, two, and three-bedroomfloorplans, with many units commanding direct bayfront views and watersideaccess. The current owner has recently completed a $13.0M ($44K/unit) portfolio-wide renovation and has upgraded unit interiors, building exteriors, and residentcommon areas. The scope of renovations were intended both to createcondominium-level interiors and upgrade electrical, mechanical, and plumbingsystems, thereby reducing longer-term capital needs.
Market Overview
The Tampa/St. Petersburg job market has been one of the fasting growing in theUnited States since 2010. The MSA produced 46,300 new jobs over the last year, a3.6% increase, and currently ranks amongst the 12 strongest in the United States.This growth, combined with a strong Tampa/St. Petersburg business environment(five Fortune 500 company headquarters) has contributed to its #1 Florida rankingfor STEM job growth. Consequently, the unemployment rate has dropped to ahistorically low 3.8% in Pinellas County.
The apartment market has seen a year-over-year effective rent growth of 3.4% and95% average MSA occupancy. This strength is largely attributable to the 10:1 new jobto new unit ratio experienced year-to-date in 2017.
The Portfolio properties are easily-accessible to downtown St. Petersburg and nearbydemand drivers. The majority of Portfolio residents commute to downtown St.Petersburg and easy accessibility to points throughout Pinellas and Hillsboroughcounties, including Tampa, is provided via I-275 (five miles from property).
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Property-level offering memorandums are available upon request from Consortium Capital
Beaches Portfol io Overview
Year Renovation
Property City Built Amt. /Unit Year Units SF SF/Unit Occupancy Avg. Rent UW NOI Year 1 NOI
Seaside Villas Gulfport 1964 1,596,103 13,191 2016 121 72,636 601 100% 1,289 1,191,203 1,264,989
Sailpointe South Pasadena 1969 4,501,118 75,019 2017 60 49,677 828 100% 1,387 769,546 853,442
Bayside Villas South Pasadena 1972 1,391,907 27,838 2016 50 44,320 886 100% 1,399 511,670 553,663
El Mar North Redington Beach 1972 3,508,678 83,540 2017 42 30,790 733 100% 1,479 498,725 547,193
Bayside Villas East South Pasadena 1965 2,016,633 100,832 2016 20 12,624 631 100% 1,346 189,688 205,459
Total | Average 13,014,439 44,418 293 210,047 717 100% 1,359 3,160,832 3,424,747
Beaches I 4
Seaside Villas
PORTFOLIO OVERVIEW
Sailpointe
Bayside Villas East
Bayside Villas El Mar
Beaches I 5
CAPITAL IMPROVEMENT OVERVIEW
Portfolio-Wide Capital ImprovementsSince acquiring the portfolio, the current owner has spent $13.0M ($44K/unit) on an in-depth,portfolio-wide renovation program that has upgraded the units to condominium-qualityfinishes, completely overhauled the common areas, and addressed longer-term capital needs.The newly-renovated product has attracted a high quality tenant base that who wouldtypically seek newer condominium product. An overview of the renovation program isprovided below:
Portfolio Capex Overview
Item Amount /Unit % Total
Interiors 5,809,650 19,828 44.6%
Roofing 1,092,646 3,729 8.4%
Windows/Doors 817,453 2,790 6.3%
Landscaping 498,814 1,702 3.8%
Asphalt/Sidewalks 707,523 2,415 5.4%
Paver Walkways 334,362 1,141 2.6%
Exterior Painting 310,918 1,061 2.4%
Furniture 211,065 720 1.6%
Fencing 213,205 728 1.6%
Railings 209,549 715 1.6%
Exterior Lighting 158,754 542 1.2%
Elevators 131,615 449 1.0%
Other 2,518,887 8,597 19.4%
Total 13,014,439 44,418 100.0%
Note: Sailpointe renovations recently completed and subject to final cost allocation
Beaches I 6
PORTFOLIO LOCATION
135
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Beaches Portfolio
# Property Name Address City
1 Seaside Villas 3205 58th Street South Gulfport
2 Sailpointe 6740 Gulfport Blvd. South South Pasadena
3 Bayside Villas 1824 Shore Drive South South Pasadena
4 El Mar 17035 Gulf Blvd. N. Redington Beach
5 Bayside Villas East 1846 Shore Drive South South Pasadena
Beaches I 7
RENT ROLL SUMMARY
Seaside Villas | Gulfport
1 In-Place
Unit Mix # Units SF Rent Rent /SF
Studio 6 281 $892 $3.17
1/1 74 536 $1,188 $2.22
2/1 35 721 $1,459 $2.02
2/1.5 3 1,115 $2,147 $1.93
Year Built 1964 2/2 3 912 $1,746 $1.91
Occupancy 100% Total/Avg. 121 601 $1,289 $2.15
Bayside Villas | South Pasadena
2 In-Place
Unit Mix # Units SF Rent Rent /SF
1/1 2 740 $1,119 $1.51
2/1 35 860 $1,314 $1.53
2/1 7 860 $1,586 $1.84
3/2 2 1,120 $1,799 $1.61
Year Built 1972 3/2 4 1,120 $1,760 $1.57
Occupancy 100% Total/Avg. 50 886 $1,399 $1.58
El Mar | North Redington Beach
3 In-Place
Unit Mix # Units SF Rent Rent /SF
1/1 20 678 $1,378 $2.03
2/1 22 783 $1,604 $2.05
Total/Avg. 42 733 $1,496 $2.04
Year Built 1972
Occupancy 100%
Bayside Villas East - | South Pasadena
4 In-Place
Unit Mix # Units SF Rent Rent /SF
Studio 3 478 $969 $2.03
1/1 9 598 $1,243 $2.08
1/1 4 598 $1,379 $2.31
2/1 2 854 $1,684 $1.97
Year Built 1965 2/1 2 854 $1,974 $2.31
Occupancy 100% Total/Avg. 20 631 $1,346 $2.13
Beaches I 8
PORTFOLIO OPERATING STATEMENT
Historical and Underwritten In-P lace Cash Flow
In-Place Actual (1) In-Place Underwriting
Revenue Amt. /Unit Amt. /Unit
Gross Potential Rent 4,749,103 16,209 4,780,983 16,317
Vacancy 223,259 762 139,491 476
Bad Debt (48,607) (166) (16,225) (55)
Concessions 180,885 617 70,318 240
Total Economic Loss 355,537 1,213 193,585 661
Gross Effective Rental Income 4,393,566 14,995 4,587,398 15,657
Utility Reimbursement 158,549 541 170,733 583
Laundry / Vending 8,581 29 8,581 29
Fees (Term/MTM/Pet/App) 145,770 498 136,385 465
Misc Income 16,174 55 14,634 50
Total Other Income 329,074 1,123 330,333 1,127
Total Revenue 4,722,640 16,118 4,917,731 16,784
Expenses Amt. /Unit
Real Estate Taxes 468,149 1,598 472,790 1,614
Insurance 20,160 69 20,160 69
Utilities 313,480 1,070 277,468 947
Total Fixed Expenses 801,789 2,736 770,418 2,629
Operating & Maintenance 269,723 921 269,723 921
Marketing 82,028 280 44,080 150
Payroll 614,454 2,097 433,000 1,478
Management Fee 165,283 564 152,302 520
Administrative 92,852 317 87,376 298
Total Variable Expenses 1,224,340 4,179 986,481 3,367
Total Expenses 2,026,129 6,915 1,756,899 5,996
Net Operating Income 2,696,511 9,203 3,160,832 10,788
(1) Period of in-place cash flow varies by property depending
on post-renovation stabilization date
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PORTFOLIO PRO FORMA
Beaches I
Pro Forma Operating Statement
Period In-Place UW Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
Revenue
Gross Potential Rent 4,780,983 5,058,487 5,215,764 5,377,979 5,539,318 5,705,498 5,876,662 6,052,962 6,234,551 6,421,588 6,614,235 6,812,662
Vacancy 139,491 149,227 142,047 146,481 150,876 155,402 160,064 164,866 169,812 174,906 180,153 185,558
Bad Debt (16,225) (23,461) (23,237) (23,006) (22,782) (22,552) (22,315) (22,071) (21,819) (21,560) (21,293) (21,018)
Concessions 70,318 49,130 50,687 46,351 47,741 49,173 50,649 52,168 53,733 55,345 57,006 58,716
Total Economic Loss 193,585 174,896 169,497 169,826 175,834 182,023 188,398 194,963 201,726 208,692 215,866 223,256
Gross Effective Rental Income 4,587,398 4,883,566 5,046,266 5,208,153 5,363,484 5,523,474 5,688,265 5,857,999 6,032,825 6,212,896 6,398,369 6,589,407
Utility Reimbursement 170,733 175,855 181,131 186,565 192,162 197,926 203,864 209,980 216,279 222,768 229,451 236,334
Laundry / Vending 8,581 8,838 9,104 9,377 9,658 9,948 10,246 10,554 10,870 11,196 11,532 11,878
Fees (Term/MTM/Pet/App) 136,385 140,477 144,691 149,032 153,503 158,108 162,851 167,736 172,768 177,952 183,290 188,789
Misc Income 14,634 15,073 15,525 15,991 16,471 16,965 17,474 17,998 18,538 19,094 19,667 20,257
Total Other Income 330,333 340,243 350,450 360,964 371,793 382,947 394,435 406,268 418,456 431,010 443,940 457,258
Total Revenue 4,917,731 5,223,809 5,396,717 5,569,117 5,735,276 5,906,421 6,082,700 6,264,267 6,451,281 6,643,906 6,842,309 7,046,665
Expenses
Real Estate Taxes 472,790 482,246 491,891 501,728 511,763 521,998 532,438 543,087 553,949 565,028 576,328 587,855
Insurance 20,160 20,664 21,181 21,710 22,253 22,809 23,379 23,964 24,563 25,177 25,807 26,452
Utilities 277,468 284,405 291,515 298,803 306,273 313,930 321,778 329,822 338,068 346,520 355,182 364,062
Total Fixed Expenses 770,418 787,314 804,586 822,241 840,289 858,737 877,595 896,873 916,580 936,724 957,317 978,369
Operating & Maintenance 269,723 276,466 283,378 290,462 297,724 305,167 312,796 320,616 328,631 336,847 345,268 353,900
Marketing 44,080 45,182 46,312 47,469 48,656 49,872 51,119 52,397 53,707 55,050 56,426 57,837
Payroll 433,000 443,825 454,921 466,294 477,951 489,900 502,147 514,701 527,568 540,758 554,277 568,134
Management Fee 152,302 156,714 161,902 167,073 172,058 177,193 182,481 187,928 193,538 199,317 205,269 211,400
Administrative 87,376 89,560 91,799 94,094 96,447 98,858 101,329 103,863 106,459 109,121 111,849 114,645
Total Variable Expenses 986,481 1,011,748 1,037,041 1,062,967 1,089,542 1,116,780 1,144,700 1,173,317 1,202,650 1,232,716 1,263,534 1,295,123
Total Expenses 1,756,899 1,799,062 1,841,627 1,885,209 1,929,830 1,975,517 2,022,295 2,070,190 2,119,230 2,169,441 2,220,852 2,273,491
NOI Pre-Reserve 3,160,832 3,424,747 3,555,089 3,683,908 3,805,446 3,930,904 4,060,405 4,194,077 4,332,051 4,474,465 4,621,458 4,773,173
Replacement Reserves 73,250 73,250 73,250 73,250 73,250 73,250 73,250 73,250 73,250 73,250 73,250 73,250
NOI Post-Reserve 3,087,582 3,351,497 3,481,839 3,610,658 3,732,196 3,857,654 3,987,155 4,120,827 4,258,801 4,401,215 4,548,208 4,699,923
Beaches I 10
CONTACT INFORMATION
⁞ Harry CollisonManager+1 [email protected]
⁞ Carter CollisonSenior Analyst+1 [email protected]
