1644 SW 2nd Street · 1644 SW 2ND STREET # EXECUTIVE SUMMARY OFFERING SUMMARY 4 THE OFFERING Price...

1644 SW 2nd StreetMiami, FL 33135

6 Unit Multifamily

Offering Memorandum

1

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly

confidential. It is intended to be reviewed only by the party receiving it from Marcus &

Millichap Real Estate Investment Services of Florida, Inc. ("Marcus & Millichap") and

should not be made available to any other person or entity without the written consent of

Marcus & Millichap. This Marketing Brochure has been prepared to provide summary,

unverified 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. Marcus & Millichap 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 or absence of

contaminating substances, PCB's or asbestos, the compliance with State and Federal

regulations, the physical condition of the improvements thereon, or the 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 Marketing Brochure

has been obtained from sources we believe to be reliable; however, Marcus & Millichap

has not verified, and will not verify, any of the information contained herein, nor has

Marcus & Millichap 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. Marcus & Millichap is a service mark of Marcus & Millichap

Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial

tenant or lessee identified in this marketing package. The presence of any corporation's

logo or name is not intended to indicate or imply affiliation with, or sponsorship or

endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or

any agent, product, service, or commercial listing of Marcus & Millichap, and is solely

included for the purpose of providing tenant lessee information about this listing to

prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE

DETAILS.

1644 SW 2ND STREET

Miami, FL

ACT ID ZAA0390964

2

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02

Rent Roll Summary

Rent Roll Detail

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET COMPARABLES 03

Sales Comparables

Rent Comparables

MARKET OVERVIEW 04

Market Analysis

Demographic Analysis

1644 SW 2ND STREET

3

INVESTMENT

OVERVIEW

1644 SW 2ND STREET

#

EXECUTIVE SUMMARY

OFFERING SUMMARY

4

THE OFFERING

Price $975,000

Property Address1644 SW 2nd Street,

Miami, FL

Assessors Parcel Number

01-4102-006-2870

Zoning T4-L

SITE DESCRIPTION

Number of Units 6

Number of Buildings 1

Number of Stories 2

Year Built/Renovated 1971

Rentable Square Feet 4,026

Lot Size 0.17 acre(s)

Type of Ownership Fee Simple

Parking 8 Spaces

Landscaping None

UTILITIES

WaterMiami-Dade W&S - Paid by

Landlord

Phone Paid by Tenant

Electric FPL - Paid by Tenant

Gas None

CONSTRUCTION

Foundation Concrete

Parking Surface Asphalt

Roof Pitched Roof

MECHANICAL

HVAC Wall A/Cs

Fire Protection Fire Extinguishers

UNIT MIX

NUMBEROF UNITS

UNIT TYPEAPPROX.SQUARE FEET

2 2 BED 1 BATH 771

4 1 BED 1 BATH 621

6 Total 4,026

VITAL DATA

Price $975,000 CURRENT YEAR 1

Loan Amount $682,500 CAP Rate 5.29% 5.56%

Loan Type Proposed New GRM 12.85 11.61

Interest Rate / Amortization

4.25% / 30 Years

Net Operating Income

$51,564 $54,178

Price/Unit $162,500Net Cash Flow After Debt Service

3.85% / $11,274 4.75% / $13,888

Price/SF $242.18 Total Return 7.79% / $22,780 8.85% / $25,893

Number of Units 6

Rentable Square Feet 4,026

Number of Buildings 1

Number of Stories 2

Year Built 1971

Lot Size 0.17 acre(s)

1644 SW 2ND STREET

OFFERING SUMMARY

▪ 100% Occupied with Upside in Rental Income

▪Exceptional Condition 1971 Concrete Construction

▪ Favorable Mix of 2 & 1 Bedroom Units

▪On-Site Parking & Laundry Facility

▪ 40-Year Re-certification Completed

▪ 7,500 Sq Ft Lot Zoned T4-L

INVESTMENT HIGHLIGHTS

Marcus & Millichap, as exclusive listing agent, is pleased to offer for sale 1644 SW 2nd Street, a six unit

apartment building located in the highly sought-after Little Havana neighborhood in the City of Miami.

Built in 1971, and featuring a unit mix comprised of two two-bedroom/one-bathroom and four one-

bedroom/one-bathroom units, 1644 SW 2nd Street sits on a 7,500 sq ft lot, zoned T4-L.

1644 SW 2nd Street is located in Little Havana, a highly desirable area within Miami-Dade County

because of the close proximity to Downtown Miami and the Brickell area. This is a significant advantage

and the main reason to attract tenants that will look to live in an up and coming neighborhood within

very close proximity to major employers and enjoy access to main traffic arteries such as Interstate 95

and 836 Expressway. West Flagler and the world Southwest 8th Street (Calle Ocho) are a few blocks

away. Moreover, The Jackson Memorial Hospital, PortMiami and the Miami International Airport are

within a short driving distance. These are the biggest employers in Miami-Dade County. These variables

create a centrally located place to live with high demand for rentals, translating into properties

commanding high rents with a very low vacancy at all times.

INVESTMENT OVERVIEW

5

AERIAL PHOTO

1644 SW 2ND STREET

6

W Flagle

r Street

Downtown Brickell

1644 SW 2nd Street

LOCAL MAP

1644 SW 2ND STREET

7

INTERIOR PHOTOS

1644 SW 2ND STREET

8

INTERIOR PHOTOS

1644 SW 2ND STREET

9

1644 SW 2ND STREET

10

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

1644 SW 2ND STREET

RENT ROLL SUMMARY

11

FINANCIAL ANALYSIS

1644 SW 2ND STREET

OPERATING STATEMENT

12

Notes:1. Physical vacancy, repairs and maintenance, operating reserves and management fee assumed according to lending standards.2. Pro-forma taxes assumed according to lending standards at 75% of list price and including 4% discount for early payment.

FINANCIAL ANALYSIS

1644 SW 2ND STREET

PRICING DETAIL

13

FINANCIAL ANALYSIS

1644 SW 2ND STREET

PRICING DETAIL

14

MARCUS & MILLICHAP CAPITAL CORPORATION

CAPABILITIES

MMCC—our fully integrated, dedicated financing arm—is committed to

providing superior capital market expertise, precisely managed execution, and

unparalleled access to capital sources providing the most competitive rates and

terms.

We leverage our prominent capital market relationships with commercial banks,

life insurance companies, CMBS, private and public debt/equity funds, Fannie

Mae, Freddie Mac and HUD to provide our clients with the greatest range of

financing options.

Our dedicated, knowledgeable experts understand the challenges of financing

and work tirelessly to resolve all potential issues to the benefit of our clients.

National platform

operating

within the firm’s

brokerage

offices

$6.24 billion

total national

volume in 2018

Access to

more capital

sources than

any other firm

in the industry

Optimum financing solutions

to enhance value

Our ability to enhance

buyer pool by expanding

finance options

Our ability to enhance

seller control

• Through buyer

qualification support

• Our ability to manage buyers

finance expectations

• Ability to monitor and

manage buyer/lender

progress, insuring timely,

predictable closings

• By relying on a world class

set of debt/equity sources

and presenting a tightly

underwritten credit file

WHY MMCC?

Closed 1,678

debt and equity

financings

in 2018

ACQUISITION FINANCING

1644 SW 2ND STREET

15

1644 SW 2ND STREET

16

MARKET

COMPARABLES

1644 SW 2ND STREET

SALES COMPARABLES MAP

17

1644 SW 2ND STREET

(SUBJECT)

817 NW 2nd St

1874 W FLAGLER ST

651 SW 3RD ST

1644 SW 3RD ST

1653 NW 1ST ST

SALES COMPARABLES

1

2

3

4

5

PROPERTY NAME1644 SW 2ND STREET

SALES COMPARABLES

18

SALES COMPARABLES

Avg.

$270.07

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

$350.00

$400.00

$450.00

$500.00

1644 SW

2nd Street

817

NW 2nd St

1874 W

FLAGLER ST

651

SW 3RD ST

1644

SW 3RD ST

1653

NW 1ST ST

Average Price Per Square

Foot

Avg.

$167,000

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

1644 SW

2nd Street

817

NW 2nd St

1874 W

FLAGLER ST

651

SW 3RD ST

1644

SW 3RD ST

1653

NW 1ST ST

Average Price Per Unit

SALES COMPARABLES SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM

1644 SW 2ND STREET

SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


19

SALES COMPARABLES

Units Unit Type

Offering Price: $975,000 2 2 BED 1 BATH

Price/Unit: $162,500 4 1 BED 1 BATH

Price/SF: $242.18

CAP Rate: 5.06%

GRM: 12.70

Total No. of Units: 6

Year Built: 1971

Underwriting Criteria

Income $78,096 Expenses $28,764

NOI $49,332 Vacancy ($2,304)

1644 SW 2ND STREET1644 SW 2nd Street, Miami, FL, 33135

1

Units Unit Type

Close Of Escrow: 10/3/2019 6 2 Bdr 1 Bath

Sales Price: $1,020,000

Price/Unit: $170,000

Price/SF: $183.16


Year Built: 1974

817 NW 2ND ST817 NW 2nd St, Miami, FL, 33128

Units Unit Type




Price/SF: $438.49


Year Built: 1994

2

1874 W FLAGLER ST1874 W Flagler St, Miami, FL, 33135

PROPERTY NAME

MARKETING TEAM

1644 SW 2ND STREET

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


20

SALES COMPARABLES

Units Unit Type




Price/SF: $263.63


Year Built: 1972

3

651 SW 3RD ST651 SW 3rd St, Miami, FL, 33130

4

Units Unit Type


Sales Price: $980,000


Price/SF: $237.00


Year Built: 1976


Units Unit Type




Price/SF: $228.06


Year Built: 1973

5

1653 NW 1ST ST1653 NW 1st St, Miami, FL, 33125

8

1644 SW 2ND STREET

RENT COMPARABLES MAP

1644 SW 2ND STREET

(SUBJECT)

680 SW 10th St

650 SW 10TH ST

953 SW 10th St

1140 SW 3RD ST

520 SW 6 St

592 SW 10th St

4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

1

2

3

5

6

21

PROPERTY NAME1644 SW 2ND STREET

RENT COMPARABLES

22

AVERAGE RENT - MULTIFAMILY

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

1644 SW

2nd Street

1140

SW 3RD ST

520 SW 6 St 592

SW 10th St

2 Bedroom

Avg.

$1,253

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

1644 SW

2nd Street

680

SW 10th St

650

SW 10TH ST

953

SW 10th St

1140

SW 3RD ST

520 SW 6 St 592

SW 10th St

1 Bedroom

Avg.

$1,447

PROPERTY NAME

MARKETING TEAM

1644 SW 2ND STREET

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


23

YEAR BUILT: 1971

rentpropertyname1


Unit Type Units SF Rent Rent/SF

2 BED 1 BATH 2 771 $1,200 $1.56

1 BED 1 BATH 4 621 $1,000 $1.61

Total/Avg. 6 671 $1,067 $1.59

1644 SW 2ND STREET1644 SW 2nd Street, Miami, FL, 33135

YEAR BUILT: 1968

1


1 Bdr 1 Bath 1 555-555$1,250-$1,250

$2.25

Total/Avg. 1 555 $1,250 $2.25

680 SW 10TH ST680 SW 10th St, Miami, FL, 33130

2

YEAR BUILT: 1970


1 Bdr 1 Bath 1 627-627$1,300-$1,300

$2.07

Total/Avg. 1 627 $1,300 $2.07


PROPERTY NAME

MARKETING TEAM

1644 SW 2ND STREET

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


24

YEAR BUILT: 1926

3


1 Bdr 1 Bath 2 625-625$1,250-$1,275

$2.02

1 Bdr 1 Bath 4

Total/Avg. 6 625 $1,263 $2.02


YEAR BUILT: 1970

4

NOTES

RENOVATED UNITS

GATED PARKING


1 Bdr 1 Bath 2 600 $1,200 $2.00

2 Bdr 1 Bath 10 650 $1,400 $2.15

Total/Avg. 12 642 $1,367 $2.13


5

YEAR BUILT: 1940


1 Bdr 1 Bath 1 677-677$1,250-$1,250

$1.85

Total/Avg. 1 677 $1,250 $1.85

520 SW 6 ST520 SW 6th St, Miami, FL, 33130

1644 SW 2ND STREET

25

MARKET

OVERVIEW

MARKET OVERVIEW

MIAMI-DADEOVERVIEW

1

Miami-Dade County is a gateway to South American and Caribbean

markets and a tourist destination. The 2,400-square-mile county

extends from the Florida Everglades east to the Atlantic Ocean. It is

bordered to the north by Broward County and to the south by the

Florida Keys. The main portion of the city of Miami lies on the shores

of Biscayne Bay and is separated from the Atlantic Ocean by barrier

islands, the largest of which holds the city of Miami Beach. The metro,

with a population of roughly 2.7 million, is located entirely within

Miami-Dade County. Miami is the most populous city, with slightly

more than 443,000 residents, followed by Hialeah with roughly

237,000 people.

MARKET OVERVIEW

METRO HIGHLIGHTS

BUSINESS-FRIENDLY ENVIRONMENT

The metro has no local business or personal income

taxes, which attracts businesses and residents to

the area.

INTERNATIONAL GATEWAY

Miami is a gateway for international trading

activities, tourism and immigration, connecting to

airports and ports around the world.

MEDICAL COMMUNITY

The county contains the largest concentration of

medical facilities in Florida, drawing residents

needing services throughout the state.

1644 SW 2ND STREET

MARKET OVERVIEW

ECONOMY▪ Various industries provide a diverse economy. Trade, international finance, healthcare and

entertainment have become major segments in the local business community.

▪ A strong tourism industry has developed with ties to Latin America and the Caribbean.

▪ Tourism and trade depend on a large transportation sector. PortMiami and Miami

International Airport are both major contributors to employment and the economy.

▪ The Miami metro gross metropolitan product (GMP) expansion is expected to be on par

with the U.S. GDP in 2019 and retail sales for the county are also rising.

SHARE OF 2018 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

Baptist Health South Florida

University of Miami

American Airlines

Miami Children’s Hospital

Publix Supermarkets

Winn-Dixie Stores

Florida Power & Light Co.

Carnival Cruise Lines

AT&T

Mount Sinai Medical Center* Forecast

2

MANUFACTURING4%

GOVERNMENT

HEALTH SERVICES

EDUCATION AND

+OTHER SERVICES

4%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

25%

AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

2%INFORMATION

14%

5%

12% 12% 7%

16%

1644 SW 2ND STREET

MARKET OVERVIEW

DEMOGRAPHICS

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

▪ The metro is expected to add nearly 127,000 people over the next five years. During

the same period, approximately 62,000 households will be formed, generating

demand for housing.

▪ The homeownership rate of 53 percent is below the national rate of 64 percent,

maintaining a strong rental market.

▪ The cohort of 20- to 34-year-olds composes 21 percent of the population.

Miami-Dade County has developed into a cosmopolitan urban area offering a vibrant

business and cultural community. The metro has an abundance of popular attractions.

Miami hosts the Capital One Orange Bowl and is home to several professional sports

teams, including the Miami Dolphins, the Miami Marlins and the Miami Heat. The county

has a broad array of cultural attractions, historic sites and parks. These include the

Adrienne Arsht Center for the Performing Arts, Zoo Miami and Everglades National Park.

The region is home to a vibrant and diverse culture, family-friendly neighborhoods, a

plethora of shops and restaurants, and beautiful weather and beaches. It also offers easy

access to Latin America and the Caribbean.

QUALITY OF LIFE

3

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s

Analytics; U.S. Census Bureau

1644 SW 2ND STREET

2018 Population by Age

0-4 YEARS

6%5-19 YEARS

17%20-24 YEARS

6%25-44 YEARS

28%45-64 YEARS

27%65+ YEARS

16%

39.9

2018MEDIAN AGE:

U.S. Median:

38.0

$45,300

2018 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$58,800

2.7M

2018POPULATION:

Growth2018-2023*:

4.6%

954K

2018HOUSEHOLDS:

6.5%

Growth2018-2023*:

MARKET OVERVIEW

29

1644 SW 2ND STREET

SOUTH FLORIDA

* Cap rate trailing 12-month average through 3Q; Treasury rate as of Sept. 30

Includes sales $1 million and greater for Miami, Fort Lauderdale and West Palm Beach.

Sources: CoStar Group, Inc.; Real Capital Analytics

Miami

• Institutional groups remain active as a strong level of portfolio deals occurred

over the past year, contributing to a low cap rate environment in some

submarkets, reaching the low-4 percent area.

• Older neighborhoods such as Little Havana, the Wynwood area and Miami

Gardens/Opa-Locka are major targets of private investors in search of

higher-yielding assets with remaining upside potential.

Fort Lauderdale

• Dania Pointe has been a catalyst for development and investment in Dania

Beach, with investors able to acquire multifamily assets with an average cap

rate in the high-5 to high-6 percent range.

• Plantation and Sunrise are receiving increased attention as investors and

developers move farther from the core, following stable population gains and

favorable rent growth. Initial yields in the submarket are in the mid-5 percent

band.

West Palm Beach

• Outside West Palm Beach, investors gravitated to Boynton Beach and

Greenacres, where going-in cap rates were in the upper-6 percent area and

the average price was in the low-$100,000s to mid-$100,000s.

• A slowdown in construction activity coupled with healthy household

formation bode well for existing complexes. Favorable demographics and

healthy property metrics will keep investors active in the search for elevated

returns. .

Multifamily 2019 Forecast

Vacancy

Y-O-Y

BasisPoint

Change

MetroEffective

Rent

Y-O-Y

Change

Fort Lauderdale 3.5% -50 $1,690 4.5%

Miami 4.3% -90 $1,640 4.1%

West Palm Beach 4.5% -80 $1,660 4.7%

Challenges to homeownership support rental demand. Strong migration trends to the

business-friendly and low-tax state of Florida are bolstering apartment demand in the three-

county area, placing the sector on a solid foundation as it enters the next year.

Homeownership in South Florida remains elusive to a wide swath of the population, resulting

in a homeownership rate in the region of 56.2 percent at midyear, well below the national rate

of 64.1 percent. A shortage of developable land and high home values are keeping the renter

pool full and property metrics at healthy levels, leading to rent growth near or above 5

percent in each county in the third quarter.

Construction activity climbs in Miami-Dade and Broward. In the third quarter, roughly 25,300

apartments were underway in South Florida, up by approximately 4,500 units from the same

time last year. Over the next two and a half years, nearly 13,800 rentals will be constructed in

Miami-Dade County, followed by Broward County where more than 8,100 units will be built.

The largest property coming down the pipeline is the 816-unit Park-Line Miami, being built

directly on top of the Virgin MiamiCentral station. North in Fort Lauderdale, X Las Olas is the

largest development underway in Broward County; it is a 639-unit high-rise set to open in

2021. With construction activity still strong in Broward and Miami-Dade counties, Palm

Beach County has registered a strong pullback as about 3,400 units are underway, down by

roughly 2,000 rentals from the high recorded in 2016.

South Florida Apartment Market on Solid Footing, Encouraging

Investors to Increase Exposure

MARKET OVERVIEW

30

• Over the past four quarters,

employers added 30,000 jobs to

company payrolls, contributing to

the lowest unemployment rate

since 2007 following a 40-basis-

point decline to 3.2 percent in the

third quarter.

• Job gains were led by the

education and health services

sector, which had 11,200 new

hires, trailed by the 7,400 jobs

created in the professional and

business services sector.

EMPLOYMENT

• Through the first nine months of

2019, developers completed

nearly 5,000 units, pushing the

year-over-year total to the

highest level in more than two

decades and outpacing the

almost 5,400 rentals built during

the previous period.

• The largest delivery of the third

quarter was The Shoreline at

Solé Mia, comprising 397 doors.

Also finalized in the third quarter

was Yard 8, a 387-unit 28-story

tower in Midtown.

CONSTRUCTION

• The net absorption of more than

5,100 units and removal of 1,100

rentals compressed the vacancy

rate to 3.4 percent in the third

quarter, building on the 10-basis-

point decline posted a year ago.

• Rapid leasing momentum in the

Class A segment led to a 110-

basis-point decline over the past

year to 5.0 percent, while at

Class C complexes a 40-basis-

point decline brought the

vacancy rate down to 1.3

percent.

VACANCY

• Robust rental demand and tight

operations supported another

stout increase to the average

effective rent, rising to $1,672

per month in the third quarter

following a 6.4 percent increase

posted at the same time last

year.

• Rent growth was highest for

Class C apartments, jumping 9.8

percent over the past year to

$1,153 per month, trailed by a

4.4 percent increase in the Class

B segment to $1,625 per month.

RENTS

SOUTH FLORIDA: MIAMI

increase in effective

rents Y-O-Y5.0%basis point decrease

in vacancy Y-O-Y20units completed

Y-O-Y5,800increase in total

employment Y-O-Y2.5%

* Forecast

1644 SW 2ND STREET

3Q19 – 12-Month Period

MARKET OVERVIEW

31

Sales Volume Holds Stable as Investors Chase Deals in Miami’s

Submarkets

Outlook: Submarkets that still provide

strong rent growth and have not faced

rising competition from new development

will attract investors in search of higher

yields and value-add opportunities, such

as Hialeah, Miami Lake and North Central

Miami.

Vacancy

Rate

Y-O-Y

BasisPoint

Change

SubmarketEffective

Rent

Y-O-Y%

Change

North Central Miami 0.5% -10 $1,100 8.3%

Homestead/

South Dade County2.1% -60 $1,220 7.0%

Hialeah/Miami Lakes 2.5% 60 $1,496 5.7%

Coral Gables/

South Miami3.5% -70 $1,965 5.0%

Miami Gardens 3.5% 30 $1,330 10.2%

Westchester/Kendall 3.5% -40 $1,555 2.8%

Downtown Miami/

South Beach3.7% -90 $2,090 4.2%

West Miami/Doral 4.1% 40 $1,914 2.2%

Northeast Miami 4.5% -80 $1,634 -0.5%

Overall Metro 3.4% -20 $1,672 5.0%

Submarket Trends

Lowest Vacancy Rates 3Q19

Sales Trends

SOUTH FLORIDA: MIAMI

• Elevated investor perceptions maintained an active 12 months of trading, keeping the

average price at approximately $170,000 per unit.

• Transaction velocity edged higher in some of Miami’s neighborhoods, outside of the

urban core, including Little Havana, Miami Gardens and Opa-Locka, as buyers chased

yields and upside potential.

* Trailing 12 months through 3Q19

Pricing trend sources: CoStar Group, Inc.; Real Capital Analytics

1644 SW 2ND STREET

*Mortgage payments based on quarterly median home price with a 30-year fixed-rate conventional mortgage, 90% LTV,

taxes, insurance and PMI. **2019-2024 v Annualized Rate

MARKET OVERVIEW

32

1644 SW 2ND STREET

SOUTH FLORIDA

• Fed cuts rate again, while balancing assortment of factors. The Federal Reserve cut the overnight

rate by 25 basis points at the end of October, the third reduction in less than 100 days in an attempt to

lengthen the economic runway. Muted inflationary pressure and continued trade negotiations have

boosted the probability for an additional rate cut in December as it is anticipated by some domestic and

foreign markets. However, at the end of October, the U.S. and China were in talks for finalizing the first

phase of a trade deal, potentially erasing the need for another rate reduction if the preliminary agreement

quickly comes to fruition. This, along with positive economic indicators like strong wage growth, sustained

job creation and a rising 10-year Treasury, will continue to make future decisions difficult for Fed members

as they balance the array of forces tugging at both ends of possible outcomes. Global developments

including slowing European economies as well as the progression of Brexit and its potential aftermath will

also help determine future Fed decisions. Though recession risks remain, the economy’s solid foundation

has softened it in recent months, signaling continued domestic growth in the near future.

• Abundant liquidity balances conservative underwriting. Debt financing for apartment assets remains

strong, supported by a variety of lenders. Fannie Mae and Freddie Mac, two mainstay apartment capital

sources, were recently given increased lending caps, allowing the two Government Sponsored

Enterprises to purchase $100 billion in loans during a yearlong period that started at the beginning of the

fourth quarter 2019. A wide range of local, regional and national banks; pension funds; insurance

companies and CMBS sources will also remain active. All have responded to the falling interest rate

climate by reducing mortgage rates, but lender spreads have widened as the 10-year Treasury rate

remains near cycle lows. Given the downward pressure on interest rates, lender caution has risen,

particularly for construction loans. Though lending is still available for these types of projects, investors

may need to blend mezzanine debt with other capital sources until they prove out their concepts and

substantially fill units. For stabilized existing assets in most major markets, financing remains plentiful.Includes sales $2.5 million and greater

Sources: CoStar Group, Inc.; Real Capital Analytics

Capital Markets

By DAVID G. SHILLINGTON, President, Marcus & Millichap Capital Corporation

PROPERTY NAME

MARKETING TEAM

1644 SW 2ND STREET

DEMOGRAPHICS

Source: © 2018 Experian

Created on December 2019

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2023 Projection

Total Population 67,163 346,980 547,208

▪ 2018 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Daytime Population

2018 Estimate 60,767 550,214 842,665

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2023 Projection

Total Households 25,907 145,323 222,717

▪ 2018 Estimate


Average (Mean) Household Size 2.59 2.38 2.46

▪ 2010 Census


▪ 2000 Census


Growth 2015-2020 3.12% 9.18% 7.31%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

▪ Occupied Units

2023 Projection 25,907 145,323 222,717

2018 Estimate 26,075 147,029 226,719

Owner Occupied 4,340 37,446 70,394

Renter Occupied 20,782 95,659 137,143

Vacant 952 13,924 19,182

▪ Persons In Units

2018 Estimate Total Occupied Units 25,122 133,105 207,537

1 Person Units 31.30% 35.09% 33.18%

2 Person Units 26.30% 29.44% 29.31%

3 Person Units 17.55% 15.66% 16.02%

4 Person Units 12.53% 10.35% 11.02%

5 Person Units 6.79% 5.09% 5.50%

6+ Person Units 5.54% 4.38% 4.97%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2018 Estimate

$200,000 or More 1.36% 4.32% 5.31%

$150,000 - $199,000 0.95% 2.88% 3.16%

$100,000 - $149,000 2.99% 7.40% 7.62%

$75,000 - $99,999 4.19% 7.33% 7.73%

$50,000 - $74,999 9.93% 13.49% 13.56%

$35,000 - $49,999 13.28% 12.93% 12.87%

$25,000 - $34,999 14.02% 11.74% 11.47%

$15,000 - $24,999 19.89% 15.41% 14.69%

Under $15,000 33.40% 24.49% 23.58%

Average Household Income $36,880 $60,546 $65,842

Median Household Income $22,844 $33,377 $35,274

Per Capita Income $14,180 $24,859 $26,211

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2018 Estimate Total Population 66,077 327,332 525,389

Under 20 19.81% 18.34% 19.56%

20 to 34 Years 20.53% 23.95% 22.73%

35 to 39 Years 6.94% 8.00% 7.43%

40 to 49 Years 14.01% 14.44% 14.16%

50 to 64 Years 18.90% 18.22% 18.78%

Age 65+ 19.80% 17.06% 17.36%

Median Age 41.93 39.81 40.18

▪ Population 25+ by Education Level

2018 Estimate Population Age 25+ 49,358 248,408 391,228

Elementary (0-8) 23.23% 14.26% 12.14%

Some High School (9-11) 12.05% 9.78% 10.10%

High School Graduate (12) 35.14% 29.37% 29.01%

Some College (13-15) 8.89% 10.59% 11.85%

Associate Degree Only 4.80% 6.90% 7.45%

Bachelors Degree Only 9.37% 16.32% 16.13%

Graduate Degree 3.04% 10.43% 10.82%

▪ Population by Gender

2018 Estimate Total Population 66,077 327,332 525,389

Male Population 50.81% 50.47% 49.68%

Female Population 49.19% 49.53% 50.32%

33

Income

In 2018, the median household income for your selected geography is

$22,844, compare this to the US average which is currently $58,754.

The median household income for your area has changed by 31.51%

since 2000. It is estimated that the median household income in your

area will be $25,455 five years from now, which represents a change

of 11.43% from the current year.

The current year per capita income in your area is $14,180, compare

this to the US average, which is $32,356. The current year average

household income in your area is $36,880, compare this to the US

average which is $84,609.

Population

In 2018, the population in your selected geography is 66,077. The

population has changed by 11.33% since 2000. It is estimated that

the population in your area will be 67,163.00 five years from now,

which represents a change of 1.64% from the current year. The

current population is 50.81% male and 49.19% female. The median

age of the population in your area is 41.93, compare this to the US

average which is 37.95. The population density in your area is

21,064.91 people per square mile.

Households

There are currently 25,122 households in your selected geography.

The number of households has changed by 12.41% since 2000. It is

estimated that the number of households in your area will be 25,907

five years from now, which represents a change of 3.12% from the

current year. The average household size in your area is 2.59 persons.

Employment

In 2018, there are 14,946 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

35.40% of employees are employed in white-collar occupations in

this geography, and 64.44% are employed in blue-collar occupations.

In 2018, unemployment in this area is 5.80%. In 2000, the average

time traveled to work was 34.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

83.70% White, 4.63% Black, 0.01% Native American and 0.36%

Asian/Pacific Islander. Compare these to US averages which are:

70.20% White, 12.89% Black, 0.19% Native American and 5.59%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 94.30% of the current year

population in your selected area. Compare this to the US average of

18.01%.

PROPERTY NAME

MARKETING TEAM

1644 SW 2ND STREET

Housing

The median housing value in your area was $218,701 in 2018,

compare this to the US average of $201,842. In 2000, there were

4,249 owner occupied housing units in your area and there were

18,101 renter occupied housing units in your area. The median rent at

the time was $456.

Source: © 2018 Experian

DEMOGRAPHICS

34

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1644 SW 2ND STREET

DEMOGRAPHICS

35

1644 SW 2nd Street · 1644 SW 2ND STREET # EXECUTIVE SUMMARY OFFERING SUMMARY 4 THE OFFERING Price...

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