OFFERING MEMORANDUM - LoopNet€¦ · increasing in close by Delray Beach, Boynton and Palm Beach;...

OFFERING MEMORANDUM

225 Ocean Breeze, Lake Worth, FL 33460

ONE COMMERCIAL REAL ESTATE | 1000 Brickell Ave, Suite 500 Miami, FL, 33131 | 305.704.9787

Alexis ShapiroBroker [email protected]

225 Ocean Breeze, Lake Worth, FL

Lake

Ave

2ONE COMMERCIAL REAL ESTATE | 1000 Brickell Ave, Suite 500 Miami, FL, 33131 | 305.704.9787

TABLE OF CONTENTS

03 EXECUTIVE SUMMARY

06 PROPERTY OVERVIEW

07

10 MARKET & AREA OVERVIEW

13 PROPERTY PICTURES

FINANCIAL ANALYSIS

ONE Commercial Contact:

Alexis ShapiroBroker AssociateMiami, [email protected]

ONE COMMERCIAL REAL ESTATE 1000 Brickell Ave, Suite 500 Miami, FL, 33131F: 305.704.9787www.ONECommercialRE.com

17 COMPANY OVERVIEW

3

THE OFFERING

EXECUTIVE SUMMARY


ONE Commercial is pleased to present the turn key investmentopportunity in the prime waterfront community of East LakeWorth. The asset consists of (16) well appointed 1 bedroom, 1bathroom units that have gone under a recent renovation. Theproperty boasts property some of the best curb appeal in theimmediate area along with on site laundry facilities, new minisplit A/C units, updated electrical, and incredible walkability toDowntown Lake Avenue, beaches, Lake Worth municipal golfcourse, and the picturesque views of the intracoastal and palmbeach island from Bryant Park. Lake Worth has experienced aserge of new development including new shopping centers withflagships such as Starbucks, luxury condominiums, along withthe city currently in the process of redoing all damaged roads inthe immediate surrounding area. With the cost of living rapidlyincreasing in close by Delray Beach, Boynton and Palm Beach;Lake Worth is the epitome of waterfront and urban living.

225 Ocean Breeze, Lake Worth, FL

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INVESTMENT HIGHLIGHTS

PRICE:# UNITS:PRICE/UNIT:CAP RATE:

$2.4MM16$150,0006.37%

• Excellent location in the prime waterfront community of East Lake Worth

• On site coin operated laundry facility• Updated electrical• New mini split A/C units• Ample resident parking off street

4

EXECUTIVE SUMMARY


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REGIONAL MAP

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EXECUTIVE SUMMARY


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LOCAL MAP

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PROPERTY OVERVIEW


Address: 225 Ocean Breeze, Lake Worth, FL 33460

APN: 38-43-44-21-15-095-0150

Property Class: B

Zoning: MF-20-Low Density Multifamily ( 38-LAKE WORTH )

GBA: 8,384 SF

Lot Size: 26,228 SF (0.32AC)

Unit Mix: (16) Multifamily Units(16) 1 BR/ 1 BA

Year Built: 1968


Unit Distribution Unit Rent

1BR/1BA100%

1BR/1BA

FINANCIAL ANALYSIS

Address: 225 Ocean Breeze, Lake Worth, FL 33460

APN: 38-43-44-21-15-095-0150

Property Class: B

Zoning: MF-20-Low Density Multifamily ( 38-LAKE WORTH )

GBA: 8,384 SF

Lot Size: 26,228 SF (0.32AC)

Unit Mix: (16) Multifamily Units(16) 1 BR/ 1 BA

Year Built: 1968

FINANCIAL ANALYSIS– 225 Ocean Breeze

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Unit Type Units SF Rent Rent/SF Rent Rent/SF

1BR/1BA 16 533 $1,150 $2.16 $1,200 $2.25

Weighted Averages 16 533 $1,150 $2.16 $1,200 $2.25

225 Ocean Breeze, Lake Worth FL 33460

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

1BR/1BA

Rent $ Rent $/SF


OPERATING STATEMENT – 225 Ocean Breeze

FINANCIAL ANALYSIS

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Price $2,400,000

# of Units 16

NRA (SF) 8,530 SF

Income Current Immediate

Market Rent

Upon

Renewals

Year 2 Year 3

Gross Rents $220,800 $230,400 $241,920 $254,016

Vacancy Contingency 3.00% $7,258 $7,620

Effective Rental Income $220,800 $230,400 $234,662 $246,396

Other Income 3.00% $1,923 $6,912 $7,040 $7,392

Effective Gross Income $222,723 $237,312 $241,702 $253,787

Expenses

Variable Expenses

Management Fee $12,992 $12,992 $14,502 $15,227

R&M $7,200 $7,200 $7,416 $7,638

Utillities $18,044 $18,044 $18,585 $19,143

Lawn/Pest $1,620 $1,620 $1,669 $1,719

Total Variable Expenses $39,856 $39,856 $42,172 $43,727

Fixed Expenses

Insurance $8,674 $8,674 $8,934 $9,202

RE Taxes $21,403 $21,403 $45,521 $46,887

Total Fixed Expenses $30,077 $30,077 $54,455 $56,089

Total Expenses $69,933 $69,933 $96,627 $99,816

Expenses as % of EGI 31.40% 29.47% 39.98% 39.33%

Net Operating Income $152,790 $167,379 $145,075 $153,971

Cap Rate 6.37% 6.97% 6.04% 6.42%

225 Ocean Breeze, Lake Worth FL 33460

MARKET & AREA OVERVIEW


POPULATION 1 MILE 3 MILES 5 MILES

Population (Current) 17,665 82,397 220,438

Population (5 Yr. Forecast) 18,383 85,778 229,451

Percent Growth (Current Yr./2010) 10.07% 9.91% 9.83%

Percent Forecast (5 Yr. Forecast/Current Yr.) 4.08% 4.11% 4.06%

Median Age 36 40 39

Density (Population per Square Mile) 7,778 5,268 5,146

INCOME 1 MILE 3 MILES 5 MILES

Median Household Income $50,780 $61,006 $58,333

Average Household Income $65,040 $80,600 $76,388

Per Capita Income $25,729 $31,533 $28,341

DEMOGRAPHICS

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PALM BEACH COUNTY Q2 2018 MULTIFAMILY MARKET

7.00%

7.50%

8.00%

8.50%

9.00%

9.50%

(400)

(200)

-

200

400

600

800

1,000

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018

Completions Absorbtion Vacancy

Development:Recent development in Palm Beach County has been heavily weighted toward the condo market. Since 2006, over17,000 condo units were completed. Unfortunately, condo construction is still slightly elevated, withapproximately 2,000 condo units in the pipeline scheduled for delivery through Q2 2019. A modest 12,600multifamily units have been completed since 2012. Additionally, 2,100 units are currently underway, and nearly16,000 units are in the planning stages.

Outlook:Palm Beach is one of the better performing metros in Florida. Positive job growth and strong in-migration trendshave contributed to the health of apartment market fundamentals. Limited new supply is expected to keepdemand steady as more residents (specifically retirees) migrate to the area. The metro is expected to continueexperiencing among the strongest in-migration trends in the region, luring wealthy retirees and a youngdemographic drawn to job opportunities in the high-paying Professional/Business Services sector. Single-familyaffordability, along with an oversupply of condos, prevent this metro from receiving a higher rating.

Summary:Palm Beach vacancies have continued to fall throughout 2018 dueto strong leasing. Employment and population growth outpaced theU.S. average for most of this cycle. However, a recent slowdown injob growth, coupled with strong levels of supply, has led to asoftening in the apartment market. Rent growth has fallen from thehighs seen in early 2016, but have made a slight recovery over thepast couple of quarters. Investment volume has remainedsubstantial over the past two years, with the Boca Raton Submarketbeing a leader in terms of both volume and pricing.

KEY METRICS Q2 2018

Vacancy 7.94%

Net Absorbtion 795 Units

Construction 2,869 Units

Completions 346 Units

Effective Rents PSF $1.52

Cap Rates 5.90%

Price per Unit $222,996

$ Sales Volume $747 Million

Absorptions, Completions, Vacancies


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SURROUNDING AREA

The City of Lake Worth is Palm Beach County’s last true “Old Florida” cities, with homes built in the 50’s and 60’sin the “beach cottage” style. The businesses and residents are multi-cultural, artistic, and socially progressive.Lake Worth about 6.5 square miles, divided into four districts, snugly situated between West Palm Beach to thenorth, and Boynton Beach to the south, on the Atlantic Coast

With plenty of parks, including Bryant Park, a largeopen-space park on the Intracoastal, public beachaccess, a public golf course, a boat ramp, andfreshwater lakes, this quaint little city by the Oceanoffers residents and visitors alike plenty to do in thebeautiful South Florida outdoors.

Lake Worth Playhouse a popular theatre in the area Bryant Park with its scenic water views

Lake Worth is best known as the artistic hub of PalmBeach County, as the Cultural Council of Palm BeachCounty is centered downtown. Also downtown is theLake Worth Playhouse, a staple in the arts community,and the home of the famous Lake Worth Street PaintingFestival.

William O. Lockhart Municipal Pier


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NEW DEVELOPMENTS


LAKE COVE BY MERITAGE HOMES• 19th Ave N / N A ST Lake Worth, FL

33460• 59 single-family homes community• 3 BR & 4 BR Up to 2,819 SF• Mid $300-400s

THE ONE LUXURY CONDOMINIUMS• 1 S Palmway Lake Worth, FL 33460• (14) Luxury 1 & 2 Bedroom Condo• 1 BR/1 BA starting in the mid $400s• 2 BR/2 BA starting in the mid $500s

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225 OCEAN BREEZEPROPERTY PICTURES

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ONE Commercial Real Estate was founded by Daniel de la Vega, the President of ONE Sotheby’s International Realty. Ourcommitment is to deliver superior results that accelerate the success of our clients and recognize and reward our teammembers. The Company facilitates the optimal outcome for owners, occupiers and developers in commercial real estate.ONE Commercial connects intelligence with experience, knowledge and technical skills to deliver better and fasterexecutions for clients. We think differently, innovate and listen better.

Finding the Heart Beat

Founded to be a Change Agent

Moving the needle means implementing positive change. Defining and interpreting exactly what drives a clients’ goals andobjectives is part of our essence. Every client need has a “heart beat”. It is that energy piece that reveals the best solutionand how to get there. Being a great listener begins that process

Our Business Approach

Our values not only define us but they remind us every day why and how we serve our clients and our team members. Ourprofessionals build trust and constantly challenge themselves to expand through our entrepreneurial culture. Our valueequation is driven by one simple concept: deliver and execute consolidated solutions that come from fully understandingthe target and delivering with knowledge and experience. Our core values:

• Think differently & advance success• Listen more• Do the right thing• Innovate• Outperform

• Build team spirit• Share• Empower through learning & education• Have fun• Give back

For Our Clients For Our Team Members

Serving Our Clients ONE Commercial designs and delivers services based upon a thorough understanding and analysis of market trends anddynamics and how those fit with our clients’ business objectives and timetables.


COMPANY OVERVIEW

ABOUT ONE COMMERCIAL

17

Alexis ShapiroBroker Associate

Miami, FL954.573.4449

[email protected]

OFFERING MEMORANDUM - LoopNet€¦ · increasing in close by Delray Beach, Boynton and Palm Beach;...

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