Delray Investment PortfolioWest Atlantic Avenue Submarket, Delray Beach FL 33444
O F F E R I N G M E M O R A N D U M
Delray Investment PortfolioCONTENTS
Exclusively Marketed by:
Don Ginsburg(561) [email protected]
We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions,change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of theproperty. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
01 Executive Summary Investment Summary 5 Location Summary 6
02 Property Description Property Features 8 Property Images 9
03 Rent Roll Rent Roll 18
04 Sale Comps Sale Comparables 20
05 Demographics Demographics 24
Delray Beach Investment Portfolio
CONFIDENTIALITY AND DISCLAIMER
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 Katalyst Real Estate & Development, LLC and it should not be made available to
any other person or entity without the written consent of Katalyst Real Estate & Development, LLC.
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 part of
the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum
to Katalyst Real Estate & Development, LLC. 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. Katalyst Real Estate &
Development, LLC 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, 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,
Katalyst Real Estate & Development, LLC has not verified, and will not verify, any of the information contained herein, nor has
Katalyst Real Estate & Development, LLC 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.
DO NOT GO ON PROPERTY WITHOUT PERMISSION FROM BROKER. SHOWINGS ARE BY APPOINTMENT ONLY. DO NOT DISTURB OR CONTACT TENANTS FOR ANY REASON, AND DO NOT DISCUSS THESE PROPERTIES WITH ANY GOVERNMENTAL OR MUICIPAL AGENCY.
PLEASE CONTACT KATALYST REAL ESTATE & DEVELOPMENT, LLC FOR MORE DETAILS.
Copyright © 2020 CREOP, LLC. All Rights Reserved.
Delray In
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Executive Summary
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Location Summary
Delray Investment Portfolio Investment Summary | 05
OFFERING SUMMARYADDRESS West Atlantic Avenue Submarket
Delray Beach FL 33444
FINANCIAL SUMMARYOFFERING PRICE $7,100,000
OCCUPANCY 75.00 %
Multi-Asset Investment Portfolio in Delray Beach
Diverse Tenant Base among a Variety of PropertyTypesWithin Immediate Proximity to the Major MixedUse Development - Alta West
All Properties sit Within a Opportunity Zone
Existing Cash Flow with Value-Add Opportunity
Katalyst Real Estate is pleased to present this fully renovatedmulti-asset portfolio in the desirable Delray Beach market. Allproperties have undergone extensive capital improvements andare in a Qualified Opportunity Zone.
There are three assets in the portfolio that offer an array of assettypes and a combination of unique tenant bases. All threeproperties appeal to the strongest markets in Delray Beach: MultiFamily, Retail, and Bar & Restaurants. These Properties can bepurchased together or separately and consist of the following:
1) 18-Unit Apartment Building - 11-21 SW 6th Avenue - Thiscompletely renovated apartment building consists entirely of 2Bedroom Units with capital improvements that include: newroofs, conversion from wall units to Central AC, Impact Glass,completely gut-renovated interiors, and exterior renovations.
2) "Pour & Famous" - Bar/Retail - 524 West Atlantic Avenue - Thislongstanding Delray Beach Bar has been completely renovatedby the current owners. Improvements include a newly createdoutdoor space equipped with artificial grass and seating.Purchase is solely for the Real Estate and the Business is notincluded.
3) Mixed Use Asset - 105 NW 5th Avenue - This property is 100%occupied and consists of renovated residential units with aground-floor retail suite. These units are the lowest priced in themarket and at 100% Occupancy which allows for an owner topush rents and increase NOI.
This portfolio will provide a Buyer with Day 1 Cash-Flow and apositive return on investment with ample opportunity to createadditional added value through pushing rents, executing aneffective leasing program, or utilizing the robust seasonal rentalmarket in Delray Beach.
The Portfolio all sits within immediate vicinity of the upcoming,intensive mixed-use development Alta-West. Alta-West isscheduled to include 165+ Units, 40,000SF of Open Public Space,and over 740 Parking Spaces.
Alta-West will bring a level of investment and development toDelray that has only been done once in the Downtown Core viaAtlantic Crossing.
The City of Delray Beach is a boutique market with high barriersto entry. Attractive opportunities to enter the market with a pathto a strong, desirable yield are few and far between. This portfoliois an opportunity to position yourself in an emerging corridordirectly adjacent to major growth drivers in an exclusive DelrayBeach market.
Delray Investment Portfolio Location Summary | 06
Location & Nearby Developments• The Subject Portfolio sits only a half mile from Pineapple
Grove and Downtown Delray Beach
• Hundreds of Units and Hundreds of Thousands Square Feetof Commercial Space currently under construction withmore in the Planning Stages
• Delray Beach is high barriers to entry market whoseDowntown only spans 340 Acres with nationwide notorietyfor its restaurant and retail scene
"Fabrick Delray" Previously Alta West• Mixed Use Project spanning 6 acres in the Southwest
Delray Beach Market
• Plans include over 150 Residences, a Supermarket, and anOpen Walkway deemed "Frog Valley"
• This project is directly adjacent to the Subject Portfolio andwill dramatically enhance the Southwest Delray Submarket
Atlantic Crossing• Largest Mixed Use Project in the history of Downtown
Delray
• Currently Under Construction with over 300 Residencesand 150,000 Square Feet of Class A Office & Retail Space
• The Subject Portfolio is less than 1 Mile from this majorMixed Use Development
The Ray• High-end Boutique Hotel in in Pineapple Grove opening
Summer 2021
• $72 Million Dollar Project to even further expand theSeasonal Rental and Tourism market in Downtown Delray
• Pineapple Grove is a 10 Minute Walk from our SubjectPortfolio and serves as the Heart of Downtown DelrayBeach
Regional Map
Locator Map
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Property Description
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Pictures with Captions
Delray Investment Portfolio Property Features | 08
1) MULTI-FAMILY - 11-21 SW 6TH AVENUENUMBER OF UNITS 18
LAND SF 27,000 SF
BUILDING SF 10,372 SF
BEDROOMS 36
BATHROOMS 18
MARKET RENT $1,500
YEAR BUILT 1960
YEAR RENOVATED 2020
PRICE $3,950,000
2) MIXED USE - 105 NW 5TH AVENUENUMBER OF UNITS 10 Residential + 1 Retail
LAND SF 10,373 SF
BUILDING SF 4,816 SF
RETAIL SF 1,120 SF
LEASE TYPE NNN
BEDROOMS 11
BATHROOMS 5
PRICE $1,650,000
3) "POUR & FAMOUS" - BAR/RETAIL - 524 W ATLANTIC AVETENANT Owner Occupied
BUILDING SF 1,280
MARKET RENT $45 NNN
PRICE $1,500,000
Delray Investment Portfolio Property Images | 09
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Delray Investment Portfolio Property Images | 12
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Delray Investment Portfolio Property Images | 15
Delray Investment Portfolio Property Images | 16
Delray In
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Rent Roll
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11-21 SW 6th Avenue, Delray Beach
Unit # Unit Type Lease Start Rent Market Rent
11-1 2 BR 1 BA 4/1/2020 $1,270 $1,500
11-2 2 BR 1 BA Model Unit $1,500
11-3 2 BR 1 BA 6/8/2020 $1,500 $1,500
11-4 2 BR 1 BA 5/1/2020 $1,232 $1,500
11-5 2 BR 1 BA 6/15/2020 $1,235 $1,500
11-6 2 BR 1 BA 7/1/2020 $1,400 $1,500
11-7 2 BR 1 BA 5/1/2020 $1,232 $1,500
11-8 2 BR 1 BA 4/13/2020 $1,232 $1,500
11-9 2 BR 1 BA 5/1/2020 $1,232 $1,500
21-1 2 BR 1 BA 6/1/2020 $1,500 $1,500
21-2 2 BR 1 BA Vacant $1,500
21-3 2 BR 1 BA 8/1/2020 $1,400 $1,500
21-4 2 BR 1 BA 5/1/2020 $1,323 $1,500
21-5 2 BR 1 BA 7/27/2020 $1,267 $1,500
21-6 2 BR 1 BA 6/1/2020 $1,232 $1,500
21-7 2 BR 1 BA 6/1/2020 $1,450 $1,500
21-8 2 BR 1 BA Vacant $1,500
21-9 2 BR 1 BA Vacant $1,500
Totals: $18,505 $27,000
105 NW 5th Avenue, Delray Beach
Unit # Unit Type Lease Start Rent Market Rent
101 Large Studio $950 $1,000
102 2 BR 1 BA $1,280 $1,300
201 Large Studio $950 $1,000
Suite 1 Dorm $450 $600
Suite 2 Dorm $450 $600
Suite 3 Dorm $450 $600
Suite 4 Dorm $450 $600
Suite 5 Dorm $450 $600
Suite 6 Dorm $450 $600
Suite 7 Dorm $450 $600
Commercial Suite Retail Jan-20 $2,583 $3,266 ($35 per Foot)
Totals $8,913 $10,766
Delray Investment Portfolio Rent Roll | 18
Delray In
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Sale Comps
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Delray Investment Portfolio Sale Comparables | 20
1
Sail Inn657 NE 8th StreetDelray Beach, FL
BUILDING SF 1,204
SALE PRICE $750,000
PRICE/SF $622.92
CLOSING DATE 8/15/2019
DISTANCE 1.9 miles
Price/Square Ft $233 - $623
LOW HIGH
Notes Sail Inn Bar/Nightclub
2
111 SW 4th StreetDelray Beach, FL
TOTAL UNITS 12
YEAR BUILT 1950
SALE PRICE $2,088,888
PRICE/UNIT $174,074
PRICE/SF $270.72
CAP RATE 6.50 %
BUILDING SF 7,716
CLOSING DATE 8/1/2019
DISTANCE 1.0 miles
Cap Rate Range 4.50 % - 6.50 %
LOW HIGH
Price/Unit Range $162,500 - $394,444
LOW HIGH
Delray Investment Portfolio Sale Comparables | 21
3
1211 NE 8th AvenueDelray Beach, FL
TOTAL UNITS 8
YEAR BUILT 1955
SALE PRICE $1,300,000
PRICE/UNIT $162,500
PRICE/SF $430.18
CAP RATE 5.00 %
BUILDING SF 3,022
CLOSING DATE 11/20/2019
DISTANCE 2.2 miles
Cap Rate Range 4.50 % - 6.50 %
LOW HIGH
Price/Unit Range $162,500 - $394,444
LOW HIGH
4
239 NW 1st AvenueDelray Beach, FL
TOTAL UNITS 7
YEAR BUILT 1957
SALE PRICE $1,400,000
PRICE/UNIT $200,000
PRICE/SF $233.33
BUILDING SF 6,000
CLOSING DATE 4/17/2020
DISTANCE 1.0 miles
Price/Unit Range $162,500 - $394,444
LOW HIGH
Delray Investment Portfolio Sale Comparables | 22
5
342 NE 3rd AvenueDelray Beach, FL
TOTAL UNITS 6
YEAR BUILT 1946
SALE PRICE $1,450,000
PRICE/UNIT $241,667
PRICE/SF $351.69
CAP RATE 4.50 %
BUILDING SF 4,123
CLOSING DATE 8/5/2019
DISTANCE 1.3 miles
Cap Rate Range 4.50 % - 6.50 %
LOW HIGH
Price/Unit Range $162,500 - $394,444
LOW HIGH
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Delray Investment PortfolioWest Atlantic AvenueSubmarketDelray Beach, FL 33444
ASKING PRICE $7,100,000
OCCUPANCY 75.00 %
Delray In
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Delray Investment Portfolio Demographics | 24
POPULATION 1 MILE 3 MILE 5 MILE
2000 Population 12,070 77,045 165,892
2010 Population 11,165 78,696 174,840
2019 Population 15,016 89,024 196,628
2024 Population 16,450 94,936 208,942
2019 African American 9,387 24,299 38,576
2019 American Indian 27 181 316
2019 Asian 141 2,013 3,917
2019 Hispanic 1,662 11,864 24,004
2019 Other Race 509 2,672 4,611
2019 White 4,706 57,849 145,381
2019 Multiracial 234 1,948 3,722
2019-2024: Population: Growth Rate 9.20 % 6.45 % 6.10 %
2019 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
less than $15,000 706 4,131 11,046
$15,000-$24,999 439 3,319 9,435
$25,000-$34,999 457 3,507 9,233
$35,000-$49,999 769 4,922 12,579
$50,000-$74,999 1,101 7,272 17,177
$75,000-$99,999 462 4,420 10,222
$100,000-$149,999 641 5,753 12,235
$150,000-$199,999 306 2,780 6,356
$200,000 or greater 559 3,846 8,798
Median HH Income $55,823 $61,700 $56,970
Average HH Income $90,086 $95,158 $90,817
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2000 Total Housing 4,089 41,159 100,419
2010 Total Households 3,904 35,680 87,330
2019 Total Households 5,440 39,949 97,080
2024 Total Households 5,991 42,614 102,813
2019 Average Household Size 2.74 2.19 2.00
2000 Owner Occupied Housing 2,145 25,629 65,162
2000 Renter Occupied Housing 1,712 8,924 16,796
2019 Owner Occupied Housing 2,635 26,891 70,027
2019 Renter Occupied Housing 2,806 13,058 27,054
2019 Vacant Housing 584 8,469 24,275
2019 Total Housing 6,024 48,418 121,355
2024 Owner Occupied Housing 2,827 27,934 72,674
2024 Renter Occupied Housing 3,164 14,679 30,139
2024 Vacant Housing 614 8,560 24,721
2024 Total Housing 6,605 51,174 127,534
2019-2024: Households: Growth Rate 9.75 % 6.50 % 5.75 %
Source: esri
Delray Investment Portfolio Demographics | 25
2019 POPULATION BY AGE 1 MILE 3 MILE 5 MILE
2019 Population Age 30-34 1,142 5,209 9,112
2019 Population Age 35-39 1,031 4,998 8,841
2019 Population Age 40-44 924 4,855 8,288
2019 Population Age 45-49 914 5,066 8,787
2019 Population Age 50-54 937 5,394 9,735
2019 Population Age 55-59 1,023 6,256 12,349
2019 Population Age 60-64 1,000 6,677 14,675
2019 Population Age 65-69 822 6,437 16,888
2019 Population Age 70-74 640 5,734 17,548
2019 Population Age 75-79 422 4,624 15,404
2019 Population Age 80-84 282 3,801 13,461
2019 Population Age 85+ 267 5,673 19,497
2019 Population Age 18+ 11,943 75,561 173,217
2019 Median Age 39 50 60
2019 INCOME BY AGE 1 MILE 3 MILE 5 MILE
Median Household Income 25-34 $64,897 $64,541 $62,242
Average Household Income 25-34 $95,330 $85,813 $83,761
Median Household Income 35-44 $66,537 $75,995 $74,653
Average Household Income 35-44 $107,640 $106,280 $105,807
Median Household Income 45-54 $69,203 $85,526 $86,788
Average Household Income 45-54 $113,211 $125,084 $129,098
Median Household Income 55-64 $56,892 $72,153 $69,177
Average Household Income 55-64 $92,843 $113,522 $111,774
Median Household Income 65-74 $43,654 $55,346 $55,142
Average Household Income 65-74 $69,421 $87,041 $88,391
Average Household Income 75+ $48,583 $68,721 $69,207
2024 POPULATION BY AGE 1 MILE 3 MILE 5 MILE
2024 Population Age 30-34 1,304 5,527 9,365
2024 Population Age 35-39 1,171 5,370 9,397
2024 Population Age 40-44 1,078 5,159 9,213
2024 Population Age 45-49 969 5,102 8,765
2024 Population Age 50-54 979 5,397 9,593
2024 Population Age 55-59 976 5,832 11,207
2024 Population Age 60-64 1,023 6,965 15,249
2024 Population Age 65-69 1,014 7,534 18,641
2024 Population Age 70-74 778 6,673 19,482
2024 Population Age 75-79 569 5,855 19,297
2024 Population Age 80-84 357 4,481 15,493
2024 Population Age 85+ 312 5,728 19,653
2024 Population Age 18+ 13,111 80,685 184,196
2024 Median Age 39 51 61
2024 INCOME BY AGE 1 MILE 3 MILE 5 MILE
Median Household Income 25-34 $77,755 $71,598 $67,971
Average Household Income 25-34 $115,046 $97,220 $93,787
Median Household Income 35-44 $76,610 $81,946 $80,755
Average Household Income 35-44 $121,318 $117,822 $116,471
Median Household Income 45-54 $80,342 $95,595 $97,432
Average Household Income 45-54 $128,947 $136,605 $140,114
Median Household Income 55-64 $62,827 $81,029 $77,982
Average Household Income 55-64 $108,954 $127,212 $124,765
Median Household Income 65-74 $48,093 $61,605 $60,007
Average Household Income 65-74 $79,511 $99,645 $98,733
Average Household Income 75+ $58,170 $77,007 $78,015
Delray Investment Portfolio
Exclusively Marketed by:
Don Ginsburg(561) [email protected]
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