Post on 22-Sep-2020
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 Associate954.573.4449Ashapiro@onecommercialre.com
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, FL954.573.4449Ashapiro@onecommercialre.com
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 REAL ESTATE | 1000 Brickell Ave, Suite 500 Miami, FL, 33131 | 305.704.9787
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
N
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
ONE COMMERCIAL REAL ESTATE | 1000 Brickell Ave, Suite 500 Miami, FL, 33131 | 305.704.9787
N
REGIONAL MAP
5
EXECUTIVE SUMMARY
ONE COMMERCIAL REAL ESTATE | 1000 Brickell Ave, Suite 500 Miami, FL, 33131 | 305.704.9787
N
LOCAL MAP
6
PROPERTY OVERVIEW
ONE COMMERCIAL REAL ESTATE | 1000 Brickell Ave, Suite 500 Miami, FL, 33131 | 305.704.9787
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
ONE COMMERCIAL REAL ESTATE | 1000 Brickell Ave, Suite 500 Miami, FL, 33131 | 305.704.9787
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
7
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
ONE COMMERCIAL REAL ESTATE | 1000 Brickell Ave, Suite 500 Miami, FL, 33131 | 305.704.9787
OPERATING STATEMENT – 225 Ocean Breeze
FINANCIAL ANALYSIS
8
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
ONE COMMERCIAL REAL ESTATE | 1000 Brickell Ave, Suite 500 Miami, FL, 33131 | 305.704.9787
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
9
ONE COMMERCIAL REAL ESTATE | 1000 Brickell Ave, Suite 500 Miami, FL, 33131 | 305.704.9787
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
MARKET & AREA OVERVIEW
10
ONE COMMERCIAL REAL ESTATE | 1000 Brickell Ave, Suite 500 Miami, FL, 33131 | 305.704.9787
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
MARKET & AREA OVERVIEW
11
N
ONE COMMERCIAL REAL ESTATE | 1000 Brickell Ave, Suite 500 Miami, FL, 33131 | 305.704.9787
NEW DEVELOPMENTS
MARKET & AREA OVERVIEW
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
12
ONE COMMERCIAL REAL ESTATE | 1000 Brickell Ave, Suite 500 Miami, FL, 33131 | 305.704.9787
225 OCEAN BREEZEPROPERTY PICTURES
13
ONE COMMERCIAL REAL ESTATE | 1000 Brickell Ave, Suite 500 Miami, FL, 33131 | 305.704.9787
225 OCEAN BREEZEPROPERTY PICTURES
14
ONE COMMERCIAL REAL ESTATE | 1000 Brickell Ave, Suite 500 Miami, FL, 33131 | 305.704.9787
225 OCEAN BREEZEPROPERTY PICTURES
15
ONE COMMERCIAL REAL ESTATE | 1000 Brickell Ave, Suite 500 Miami, FL, 33131 | 305.704.9787
225 OCEAN BREEZEPROPERTY PICTURES
16
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.
ONE COMMERCIAL REAL ESTATE | 1000 Brickell Ave, Suite 500 Miami, FL, 33131 | 305.704.9787
COMPANY OVERVIEW
ABOUT ONE COMMERCIAL
17
Alexis ShapiroBroker Associate
Miami, FL954.573.4449
Ashapiro@onecommercialre.com