Rosemary Palms Apartments Martin Goldstein Russell Goldstein...Palm each ounty’s population has...

Rosemary Palms Apartments Martin Goldstein 561-310-0935

Russell Goldstein561-503-3648

77 Multi-Family Units Located near Downtown West Palm Beach and the Palm Beach County Opportunity Zone

West Palm Beach, FL

612 8th Street

619 7th St

Palm Beach County Courthouse

Several Thousand Class A Rentals and Upscale

CondosONE West Palm

under construction

Historic Sunset Lounge Renovation Underway

Downtown West Palm Beach

Flagler Banyan Square Under Construction

(obscured by Courthouse, new parking facility)

Located mere blocks from vibrant, bustling Downtown West Palm Beach, and featuring spacious, updated units throughout, Rosemary Palms Apartments present an attractive value-add multifamily investment proposition.

Immediately in the path of future development, this fast-growing area has seen an influx of investment over the preceding decade. Dense with commerce of all kinds from retail, dining, high end office space and industrial businesses, these apartments are perfectly positioned to take advantage of future growth.

Palm Beach County’s population has been steadily growing since before the turn of the millennium, as an increasing number of people flock to Florida’s east coast to take advantage of its healthy job market, year-round warm weather, beautiful beaches, and affordable cost of living. South Florida’s accessibility in this aspect is second to none. These apartments are blocks from the coast and some of the world’s most prestigious, beautiful locales. As such existing cash flow can be used to support further upgrades and more fastidious management.

West Palm Beach’s Community Redevelopment Agency has been instrumental in revitalizing this area over the years, proposing and orchestrating many high profile projects alongside the private sector. These units reside primarily in the CRA’s Clearlake and Historic Northwest Areas, which are directly adjacent to the neighboring “Core Downtown” CRA Area. The revitalization plan laid out for districts emphasizes their historical and economic significance to their residents, business owners, and surrounding area.

Two major initiatives are the restoration of the Sunset Lounge (renowned southern Jazz and Blues venue throughout the 1930s-1960s), and the development of the 200 Block Of Clematis Street, as well as a corridor of 7th St formerly (and in the future) known as “Restaurant Row/Styx Alley.” (see map). Currently, the Sunset Lounge project restoration is well underway (see accompanying summary slide) and the CRA’s p lanned development of Restaurant Row/Styx Alley has been planned and funded as of Q1 2019. These developments heavily account for the area’s character, demographic, and overall fabric and thus are expected to be very economically sustainable over the long term.

These units, while managed well currently, are primed for value-add opportunities and are ideally positioned to take advantage of the initiatives already in place and underway by way of increased rents and job growth in the immediate area. Steadily improving finishes and renovating units as leases turn will prove a simple and extremely effective strategy for growing the property’s income over the near and long term.

Martin Goldstein Russell Goldstein561-310-0935 561-503-3648 The-Goldstein-Group.com

Rosemary Palms ApartmentsOverview

Palm Beach Island


Rosemary Palms ApartmentsHighlights and Location Map

Asset Overview:o Price: $10,750,000o Current Cap Rate: 7.26%o Cash on Cash Return: 18.29%!o 77 Units o 60,062 SF Totalo Unit Mix:

o 1BR - 9o 2BR - 62o 3BR - 4o Efficiency - 2o Total - 77

o 100% Occupied! o Tenants pay electric and water, units are separately

metered. Landlord only pays common electric.o Huge rental upside available through improvements and

local updates via CRA initiatives, which include among others (See following sections):

o The Sunset Loungeo Restaurant Rowo Flagler Banyan Squareo One West Palmo Sunview Companies Projectso Northwest Historic District Gentrification

o Turnkey opportunity! Currently stable and cash-flowing, with long term tenants

o Professionally owned and managed. Books and records are well maintained.

o Current CRA initiatives intended to bring huge demographic shift to the area, with increased high end retail, dining, and entertainment traffic (see pages regarding CRA).

o Centrally located to all local commerce, including Downtown West Palm Beach and all that the area has to offer!

o Beautiful existing and upcoming waterfront shopping and dining mere blocks away in CityPlace or East Clematis.

o Strong light industrial presence in this area.o Excellent concentration of employment

centers.o Large percentage of 2+ bedrooms maximizes marketability

in all market conditions.o All CBS construction reduces long term maintenance cost

significantlyo Many units upgraded with:

o New kitchen cabinets, applianceso New bathroomso New flooring

o Exterior upgrades done as needed, but plenty of additional room to improve and increase rents. This area has seen an increasing number of landlords upgrading property grounds to excellent effect.

800 54th St/Pinewood

Address Listing/# of Units

Flagler Banyan Square

Sunset LoungeRestaurant

Row/Styx Alley

1001 Henrietta Ave 4

800 54th St/Pinewood 9

607-609 11th St 5

610 6th St 4

612 8th St 10

613 6th St 4

619 7th St 5

623 9th St 4

628-632 8th St 12

709 6th St 4

800 Douglass Ave 4

801 N Sapodilla Ave 4

908-912 5th St 8

1001 Henrietta Ave 4

800 54th St/Pinewood 9

607-609 11th St 5

610 6th St 4

612 8th St 10

613 6th St 4

619 7th St 5

623 9th St 4

628-632 8th St 12

709 6th St 4

800 Douglass Ave 4

801 N Sapodilla Ave 4

908-912 5th St 8


Rosemary Palms ApartmentsOverview - Northeast Aerial

Northern section of Downtown West Palm Beach

Sunset Lounge

612 8th Street

Atlantic Coast, Palm Beach Island

General location of portfolio

612 8th Street

619 7th St

New Downtown West Palm Municipal Parking

Facility

Palm Beach Island, Atlantic Coast

Palm Beach County Courthouse

Several Thousand Class A Rentals and Condos


Rosemary Palms ApartmentsOverview - Southeast Aerial

ONE West Palm under construction

Flagler Banyan Square Under Construction

(obscured by Courthouse, new parking facility)

See included West Palm Beach CRA Section for a full summary of all projects referenced in these aerials,

as well as additional information regarding the CRA’s mission and ongoing initiatives, nearly all of which

have already had a measurable impact on this locale.


Rosemary Palms ApartmentsSimplified Financial and Schedule of Rents

Address# of

Units

Monthly Rent

Roll

Annualized Rental

Income

800-804 54th St/Pinewood 9 9,202.00$ 110,424.00$

612 8th St 10 11,052.00$ 132,624.00$

619 7th St 1 1,286.00$ 15,432.00$

801 N Sapodilla Ave 4 4,400.00$ 52,800.00$

628-632 8th St 12 13,606.00$ 163,272.00$

607-609 11th St 5 6,103.00$ 73,236.00$

610 6th St 4 4,580.00$ 54,960.00$

613 6th St 4 4,500.00$ 54,000.00$

709 6th St 4 3,858.00$ 46,296.00$

803 Henrietta Ave 4 4,320.00$ 51,840.00$

1001 Henrietta Ave 4 4,292.00$ 51,504.00$

623 9th St 4 4,975.00$ 59,700.00$

800 Douglass Ave 4 4,450.00$ 53,400.00$

908-912 5th St 8 8,550.00$ 102,600.00$

77 85,174.00$ 1,022,088.00$

Offered at $10,750,000.007.26% Capitalization Rate

18.29% Cash on Cash Return

Unit Current Rents Market

Monthly Rent Roll 85,174.00$ 106,750.00$

Annualized $1,022,088.00 $1,281,000.00

RE Taxes 96,211.00$ 169,226.88$

Insurance 56,814.00$ 50,050.00$

Utilities 17,232.00$ 17,232.00$

Repairs and Maintenance 30,800.00$ 30,800.00$

Management 40,883.52$ 51,240.00$

Total Exp 241,940.52$ 318,548.88$

NOI 780,147.48 962,451.12

Price 10,750,000.00$ 10,750,000.00$

Cap Rate 7.26% 8.95%

Down Payment - 20% 2,150,000.00 2,150,000.00

Total leverage 8,600,000.00 8,600,000.00

Annual Prevailing Int Rate Exp 387,000.00 387,000.00

NOI After Int Exp 393,147.48 575,451.12

Cash on Cash Return 18.29% 26.77%


Rosemary Palms ApartmentsBroad Location Map


Current CRA Initiatives

Progress Updated Q4 2019


The Sunset Lounge

From West Palm Beach Magazine, Q1 2019:

After several years of community input and engagement about the future of this site, the CRA is spearheading the $4.5 million renovation project that will highlight both the history and present-day needs of the community.

The famous jazz venue drew hundreds of patrons to watch the notable artists of the time including Ella Fitzgerald, Count Basie and Louis Armstrong. The redevelopment of this celebrated site will pay homage to the rich jazz and black history of the area and celebrate its significant legacy and impact, ultimately transforming the Sunset Lounge into the epicenter for a new African-American cultural tourism destination.

“The Sunset Lounge is an important part of the city’s history,” said West Palm Beach Mayor Jeri Muoio. “This renovation will not only help to revitalize our Northwest District, it will also create a destination that will provide residents and visitors a perspective on the African-American people and stories that helped to make West Palm Beach such a wonderfully diverse place.”

REG Architects, Inc., a West Palm Beach-based firm which specializes in architecture, historic preservation, interior design and community planning, was selected to complete the historic rehabilitation.

The design plans include the following:

· A complete rehabilitation of the existing 13,500 sq. ft. building.· The first floor will have a renovated bar and a new full-service restaurant.· The redesign will convert the second floor of the structure back to a ballroom with a large elevated/floating stage and third floor mezzanine.· The addition of a new, three-story 7,200 sq. ft. building on the east side of the Sunset Lounge.· The new building will house the restaurant kitchen, bathrooms, dressing rooms for performers, lobby, office space, box office, and a broadcast facility.· The plan adds a new parking lot in the rear, valet in the front of the building along with a gathering plaza, and an outdoor bar and patio for patrons to enjoy.

THE NEW SUNSET LOUNGE is walking distance (less than 2 blocks) from the majority of the portfolio, as evidence that the CRA is actively investing in this neighborhood. Excellent for future prospects.

Interior and grounds renovation is underway in earnest. Photo taken November 2019.


The CRA’s Mission

The CRA (Community Redevelopment Agency) of West Palm Beach is planning to utilize the following developments to rapidly gentrify the Northwest District neighborhood:

The upcoming construction of the Indigo/Aloft hotels along with the 138-unit apartment complex on Rosemary Ave (on 3rd & 4th St) will bring an upscale demographic to Rosemary Ave (north of Banyan Blvd).

To accommodate this upscale demographic with restaurants, entertainment and additional retail, the CRA is developing “Restaurant Row/Styx Alley Commercial” on 7th St off of Rosemary Ave (which will provide restaurants and retail establishments), along with renovating and expanding the Sunset Lounge (which will provide entertainment, a bar and a restaurant) and developing a music/art park across the street from the Sunset Lounge.In addition, private developers are planning to develop additional retail on Rosemary Ave between 3rd St and 8th St.

The CRA is also planning on the following:1) opening of a railroad crossing (to connect to downtown) at 7th St and Rosemary Ave2) renovation of Rosemary Ave streetscape from Banyan Blvd to 11th St3) renovation of 7th St streetscape from Tamarind Ave to Rosemary Ave

The intent of the CRA with all of the above is to gentrify the neighborhood by making the neighborhood attractive to Class B tenants. The rapid growth of downtown West Palm Beach along with the opening of the Brightline train station (connecting West Palm Beach to Fort Lauderdale and Miami) has increased demand for apartments, resulting in significant rent increases - making downtown apartment rents unaffordable for many Class B tenants.

As a result, many Class B tenants who want to live within walking distance to downtown, Clematis St and CityPlace would be interested in renting apartments in the Northwest District if the neighborhood provided appropriate restaurants, retail & entertainment establishments. Class B tenants are able and willing to pay significantly higher rents than the current neighborhood market rents.

The next step in the gentrification plan is for the cement factory on 7th St and West Railroad Ave to sell the land to private developers to build multifamily buildings directly across from the music/art park (in front of the Sunset Lounge). The vacant land between the cement factory and the Community Center on Rosemary Ave (along with the Community Center land) will also be made available to private developers.

As a result of these plans, the Northwest District neighborhood will become an extension of downtown, Clematis St and CityPlace.

The CRA's mission is economic development. Improving housing stock and getting generational renters into home ownership is economic development. Helping businesses attract customers is economic development. Developing customer traffic in recovering and developing shopping centers is economic development. Restoring historic properties and making them viable contributing structures is economic development. Creating diverse cultural attractions is economic development.

"This coveted waterfront site is an important piece of the overall strategic vision for downtown West Palm Beach," said Jon Ward, executive director of the West Palm

Beach Community Redevelopment Agency (CRA). "The new development expands our core downtown zone past Clematis Street, provides lots of facilities and amenities for

visitors close to Brightline and major waterfront events, and offers more live, work and play spaces for our residents."

The project at 200 2nd St. is expected to be completed by the end of 2019. It's on the former site of West Palm Beach City Hall and will overlook the stretch of land where

the Palm Beach International Boat Show sets up each year.

Flagler Banyan Square is among a number of projects launching in West Palm Beach. Its CRA is also working on upgrading the 300 block of Clematis Street with wider

sidewalks, more trees and added dining and seating areas; improving the back alleys between the heavily trafficked streets of Clematis and Datura; and adding a 14,000-

square-foot space at 314 Clematis split into 12 spots that will serve as an incubator for new or local retail shops.”

-South Florida Business Journal, June 2018

HIGHLIGHTS:

• 251 Apartments, 208 Room Hotel, and several thousand SQ FT of upscale retail and office space.

• Construction is currently underway and is scheduled to be completed Fall of 2019.• Hotel will be known as The Ben, a Marriott “Autograph Collection” high end

hotel.• Expected to drastically change the demographic of the neighborhood, continue

the expansion of a commercially viable downtown area for local businesses to thrive.

• Will create hundreds of new jobs while expanding West Palm Beach’s popular and commercially successful downtown area westward.

• Increased demand will spill over into surrounding areas. Existing buildings will be in demand if properly marketed to new clientele. Resulting in higher rents, healthy ROI growth.

• Certain pieces of property in downtown will draw the interest of developers in the future, as the CRA continues to plan gentrification of the western portion of Clematis and surrounding streets.


Flagler Banyan Square

Completion Fall 2019

The Ben, a Marriott Autograph Collection Hotel, is the centerpiece of the Flagler Banyan Square Development.

Upscale retail and dining spaces will provide a space for national and local businesses to thrive.

Ground-breaking ceremony June 2018

Envisioned, financed, and built by Jeff Greene, locally based billionaire Real Estate entrepreneur, One West Palm will be the area’s tallest and most imposing skyscraper upon completion.

Years in the making and scheduled to be completed , the complex will encompass 2 30-story buildings totaling 829,000 SF.

One West Palm includes:• 410,000 SF of Class A office space• 200 room, 96,000 SF hotel • 84 luxury residences• Second tower with 325 luxury apartments

This development will fulfill an enormous demand for high end office and multifamily in downtown West Palm. Currently, the existing Class A office and multifamily in the area experiences very heavy demand. Offering a posh location close to Palm Beach Island, with breathtaking panoramic Intracoastal/Coastal Views, these towers are poised to emerge head and shoulders above what the area currently has to offer both in terms of quality and value.


One West PalmUnder Construction, Completion 2020

Historically known as a culturally rich block in this neighborhood, the revitalization of Restaurant Row, also known as “Styx Alley,” will encompass approximately 7,000 SF of shotgun-style commercial space with frontage on 7th Street, directly adjacent to the center of this portfolio (see map).

Restaurant Row is another part of the CRA’s mission to lift the Northwest District’s demographic and attract Class B type tenants. The project has been funded and infrastructure work has been completed as of Q1 2019.

This development will bring a huge amount of positive consumer traffic to the area, as the regionally famous Queen of Sheba restaurant, already open for the last 13 years, has demonstrated.


Restaurant Row/Styx Alley

Subject Properties

Restaurant Row

Site Plan

Elevation

Future Alleyway

The Historic Northwest district is perfectly positioned for rebirth. Located just north of downtown, the neighborhood boundaries

extend from Banyan to Palm Beach Lakes, west to Tamarind Avenue and east to Rosemary Avenue. The Northwest is rich with history

and culture.

Predominantly residential, the majority of the area is designated as a historic district. Two commercial north-south corridors, Rosemary and Tamarind, form the borders of the neighborhood. In 2011, the CRA and a group of stakeholders collaborated to create an Action Plan that focused redevelopment activities in six areas; business

development, transportation, remap highlighting historic northwest residential development, marketing and branding, security and

capital improvements. The improvement program includes new street scape along the 7th Street corridor. In addition, the entire

Tamarind Corridor will be realigned and resurfaced from Banyan to Palm Beach Lakes.

The Historic Northwest is ideally positioned to become a cross-cultural destination with the planned historic restoration of the

famed Sunset Ballroom and Lounge (8th Street and Henrietta) and the development of a related Jazz Park and other assets.

-West Palm Beach CRA


Northwest Historic District Plans

Proposed layout for nearby industrial space (cement and concrete production, currently) to be redeveloped into greenspace and Multifamily serving the Northwest Historic District, the primary neighborhood in which Rosemary Palms is located


Sunview Companies Hotel and Multifamily Projects


612 8th St(10 Units)

628-632 8th St(12 Units)

800 Douglass Ave

(4 Units)

Typical Interior


623 9th St(4 Units)

801 N Sapodilla Ave(4 Units)

1001 Henrietta Ave(4 Units)

628-632 8th St(12 Units)


908-912 5th Street(8 Units)

803 Henrietta Ave(4 Units)

609 11th St(4 Units)

613 6th St(4 Units)


800 54th St/Pinewood(9 Units)

Typical Interiors


Typical Interiors


Contact Listing Agents

For more information or to schedule a property tour please do not hesitate to contact

us at the numbers and/or email addresses below:

Martin Goldstein, Lic. Real Estate Broker

[email protected]

561-310-0935

Russell Goldstein

[email protected]

561-503-3648

Rosemary Palms Apartments Martin Goldstein Russell Goldstein...Palm each ounty’s population has...

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