Short-term vacation property in Clearwater Beach, FL · 2020-02-17 · Vacation Rental Industry...
Transcript of Short-term vacation property in Clearwater Beach, FL · 2020-02-17 · Vacation Rental Industry...
Short-term vacation property in Clearwater Beach, FL
Table of Contents
Execut ive Summary 3
Proper ty Overv iew 6
F inanc ia l Analys i s 10
Market Overv iew 13
Appendix 21
Contact Informat ion 22
2 331 Coronado Dr, Clearwater Beach, FL
3 331 Coronado Dr, Clearwater Beach, FL
Exe
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4 331 Coronado Dr, Clearwater Beach, FL
EXECUTIVE SUM MARY
Safety Harbor
Oldsmar
Seminole
DunedinPlant City
Pinellas Park
Davis Islands
Tampa Heights
Treasure Island
Belleair Beach
Kenneth City
Indian Shores
RedingtonShores
St. Pete Beach
Belleair
SouthPasadena
RedingtonBeachMadeira Beach
Indian RocksBeach
Lutz
Brandon
Largo
TampaClearwater
St. Petersburg
TempleTerrace
Clearwater Beach Vacat ion Renta l There is little question as to why Clearwater Beach experiences thriving development activity focused on hospitality, vacation rentals, and second homes. Top travel industry leaders have repeatedly recognized Clearwater Beach as the top beach destination in the US. The area benefits from a continual flow of
Compass is pleased to offer for sale 331 Coronado Drive, Clearwater Beach, a rare opportunity to acquire a prime short-term vacation rental property perfectly positioned in world renowned Clearwater Beach, Florida. The Property is an existing 5-unit vacation rental property that sleeps 15 adults in 5 separate rooms. Historical revenues provide reliable income, with multiple recurring reservations each year. Existing ownership accomplishes strong occupancy rates while managing the property from out of town, offering increased operating efficiencies for local ownership. Existing ownership also blocks out more than 50% of the prime vacation days for friends and family, providing more upside potential for a new buyer.
The Property offers an excellent market presence located less than 1,000 feet from pristine beaches and walking distance to Clearwater Beach’s newest development area. Situated less than one block from the new 259-room Marriott and across from the Hyatt Regency Hotel and Spa, this site offers individual developers the opportunity to participate in the ongoing development boom associated with the Southern portion of Clearwater Beach. A high number of dining, shopping and entertainment options surround the site, allowing for an authentic vacation experience for visitors.
5 331 Coronado Dr, Clearwater Beach, FL
There is little question as to why Clearwater Beach experiences thriving development activity focused on hospitality, vacation rentals, and second homes. Top travel industry leaders have repeatedly recognized Clearwater Beach as the top beach destination in the US. The area benefits from a continual flow of beach goers and vacationers, providing year-round demand for upscale hospitality and residential units. The recent introduction of vacation rental properties has vastly in-creased profitability and demand for smaller, more manageable properties - particularly on the Southern end of the Clearwater Beach strip.
Clearwater Beach’s prominence in the Tampa MSA is underscored by its tremendous growth in newly developed buildings and attractions geared towards higher-end visi-tors. The number of hotel rooms in Clearwater Beach has more than doubled since 2011, with few signs of slowing down as demand swells west from Tampa suburbs. Clearwa-ter Beach’s southern parcels link directly to Tampa and significant employment centers while maintaining a relaxed and luxurious way of life to its residents. These attributes have contributed to the increasing popularity of Clearwater Beach as one of Florida’s most desirable beach enclaves.
The site has conceptual allowances for a variety of potential conforming uses, including a private residence, boutique hotel, vacation rental, or luxury condominium structure. This height and density lie entirely within current zoning, and aggressive developers can likely achieve higher density through direct work with planning and zoning offi -cials. The use-by-right provides for 16 residential units, two commercial spaces totaling ±3,155 square feet, 19 parking spaces, 12 bike parking spaces, a rooftop terrace & resident multipurpose room or lobby.
EXECUTIVE SUM MARY
This opportunity rarely presents a prominent location within one of the country’s top beach destinations. All investors and developers are encouraged to inquire further about the unique opportunity to acquire 331 Coronado Drive in Clearwater Beach.
6 331 Coronado Dr, Clearwater Beach, FL
Pro
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7 331 Coronado Dr, Clearwater Beach, FL
About the Proper t y
HOUSE
2,605 SFBATHROOMS
6MINIMUM STAY
1-3 nights
SLEEPS
15BEDROOMS
5An oasis retreat in the heart of South Clearwater Beach. A private compound in the middle of the hustle and bustle that is Clearwater Beach. The white sandy beaches and beautiful Gulf of Mexico are across the street.
“
“from listing on vrbo.com
PROPERT Y OVERVIEW
8 331 Coronado Dr, Clearwater Beach, FL
Exter io r Photos
PROPERT Y OVERVIEW
9 331 Coronado Dr, Clearwater Beach, FL
I nter io r Photos
PROPERT Y OVERVIEW
10 331 Coronado Dr, Clearwater Beach, FL
Fin
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11 331 Coronado Dr, Clearwater Beach, FL
Renta l Ana lys i s ANNUAL REVENUE
$146,783PURCHASE PRICE
$1,690,000AVERAGE DAILY RATE
$777OCCUPANCY RATE
52%
LOAN INFORMATION
Purchase Price: $1,690,000.00
Down Payment: $1,690,000.00
Interest Rate on Loan: 4.50% annually
Term of Loan: 30 years
Approximate Closing Costs: 1.00%
INCOME (PROJECTED)
Projected Daily Rent: $535.00
Vacancy Rate: 25.00% annually
Projected Rent Increase: 2.50% annually
TAX INFORMATION
# of Years of Depreciation: 27.5 years
Improvement Ratio: 75.00% *
Investor's Tax Bracket: 30.00% annually
ACQUISITION ANALYSIS
Loan Amount: $0.00
Closing Costs: $16,500.00
Monthly Principal & Interest (P&I): $0.00
Annual Principal & Interest (P&I): $0.00
DEPRECIATION ANALYSIS:
Land Value: $412,500.00
Dwellings Value: $1,237,500.00
Annual Depreciation: $45,000.00
Annual Principal & Interest (P&I): $0.00
EXPENSES (PROJECTED)
Property Taxes: $10,465.00 annually
Insurance: $2,904.00 annually
Electricity: $389.58 monthly
Gas: $0.00 monthly
Water/Sewer: $389.58 monthly
Trash: $0.00 monthly
Cable/Wifi: $218.33 monthly
Pool Expense: $103.33 monthly
Telephone: $0.00 monthly
Property Management: 7.00% of income
Repairs/Maintenance: 13.50% of income
Licensing $7.00 monthly
Cleaning: $493.33 monthly
Advertising: $41.58 monthly
Projected Expense Increase: 5.00% annually
*percentage of dwelling to total property value
F INANCIAL ANALYSIS
12 331 Coronado Dr, Clearwater Beach, FL
Annual Income & ExpensesANNUAL OPERATING INCOME
Year: 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year 8th year 9th year 10th year
Expected Gross Income: $195,275.00 $200,156.88 $205,160.80 $210,289.82 $215,547.06 $220,935.74 $226,459.13 $232,120.61 $237,923.63 $243,871.72
Less Vacancies: $48,818.75 $50,039.22 $51,290.20 $52,572.45 $53,886.77 $55,233.93 $56,614.78 $58,030.15 $59,480.91 $60,967.93
Effective Gross Income: $146,456.25 $150,117.66 $153,870.60 $157,717.36 $161,660.30 $165,701.80 $169,844.35 $174,090.46 $178,442.72 $182,903.79
ANNUAL OPERATING EXPENSES
Year: 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year 8th year 9th year 10th year
Property Taxes: $10,465.00 $10,988.25 $11,537.66 $12,114.55 $12,720.27 $13,356.29 $14,024.10 $14,725.31 $15,461.57 $16,234.65
Insurance: $2,904.00 $3,049.20 $3,201.66 $3,361.74 $3,529.83 $3,706.32 $3,891.64 $4,086.22 $4,290.53 $4,505.06
Electricity: $4,675.00 $4,908.75 $5,154.19 $5,411.90 $5,682.49 $5,966.62 $6,264.95 $6,578.19 $6,907.10 $7,252.46
Gas: $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Water/Sewer: $4,675.00 $4,908.75 $5,154.19 $5,411.90 $5,682.49 $5,966.62 $6,264.95 $6,578.19 $6,907.10 $7,252.46
Trash: $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Cable/Satellite: $2,620.00 $2,751.00 $2,888.55 $3,032.98 $3,184.63 $3,343.86 $3,511.05 $3,686.60 $3,870.93 $4,064.48
Pool Expense: $1,240.00 $1,302.00 $1,367.10 $1,435.46 $1,507.23 $1,582.59 $1,661.72 $1,744.80 $1,832.04 $1,923.65
Telephone: $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Property Management: $10,251.94 $10,764.53 $11,302.76 $11,867.90 $12,461.29 $13,084.36 $13,738.58 $14,425.51 $15,146.78 $15,904.12
Repairs/Maintenance: $19,771.59 $20,760.17 $21,798.18 $22,888.09 $24,032.50 $25,234.12 $26,495.83 $27,820.62 $29,211.65 $30,672.23
Licensing: $84.00 $88.20 $92.61 $97.24 $102.10 $107.21 $112.57 $118.20 $124.11 $130.31
Cleaning: $5,920.00 $6,216.00 $6,526.80 $6,853.14 $7,195.80 $7,555.59 $7,933.37 $8,330.03 $8,746.54 $9,183.86
Advertising: $499.00 $523.95 $550.15 $577.65 $606.54 $636.86 $668.71 $702.14 $737.25 $774.11
Total Operating Expenses: $63,105.53 $66,260.81 $69,573.85 $73,052.54 $76,705.17 $80,540.43 $84,567.45 $88,795.82 $93,235.61 $97,897.39
Expenses as %age of Income 43.09% 44.14% 45.22% 46.32% 47.45% 48.61% 49.79% 51.01% 52.25% 53.52%
NET OPERATING INCOME (NOI)
Year: 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year 8th year 9th year 10th year
NOI: $83,350.72 $83,856.85 $84,296.75 $84,664.82 $84,955.13 $85,161.38 $85,276.90 $85,294.64 $85,207.11 $85,006.40
CASH FLOW (BEFORE TAXES)
Year: 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year 8th year 9th year 10th year
Cash Flow: $83,350.72 $83,856.85 $84,296.75 $84,664.82 $84,955.13 $85,161.38 $85,276.90 $85,294.64 $85,207.11 $85,006.40
Cash-On-Cash Return: 5.052% 5.082% 5.109% 5.131% 5.149% 5.161% 5.168% 5.169% 5.164% 5.152%
F INANCIAL ANALYSIS
13 331 Coronado Dr, Clearwater Beach, FL
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14 331 Coronado Dr, Clearwater Beach, FL
Vacat ion Renta l Indust r y S tat i st ics
MARKET OVERVIEW
PROJECTED VACATION RENTAL REVENUE FOR 2019
*THE MARKET’S GROWTH RATE IS 6.9%
$57.669 billion
TOTAL VACATION RENTAL USERS WORLDWIDE
297.17 million
VACATION RENTAL COMPANIES IN THE U.S.
23,000
AIRBNB USERS WORLDWIDE
150 million
in m
illio
ns
40.0
27.5
2017
30.0
20.0
10.0
0
2018
29.8
2019
31.9
2020
33.8
2021
35.6
2022
37.1
2023
38.4
GROWTH IN NUMBER OF USERS OVER TIME IN U.S.
15 331 Coronado Dr, Clearwater Beach, FL
Renta l Market Overv iew
CLEARWATER BEACH, FL
AVG. OCCUPANCY RATE
55%
AVG. RATE FOR ENTIRE HOME
$240AVG. REVENUE FOR ENTIRE HOME
TOP GUEST CITY
AVG. REVENUE FOR PRIVATE HOME
$3,207
New York
BOOKING LEAD TIME
95 days
AVG. RATE FOR PRIVATE ROOM
$136
$1,596
ACTIVE LISTINGS
1258
Studio
300
200
100
01 2 3 4 5+
Rooms
AVG RENTAL SIZE 2.2 Bedrooms / 6.2 Guest of Average
MARKET OVERVIEW
*Data from AirDNA
16 331 Coronado Dr, Clearwater Beach, FL
Reservat ion Status and H istor y
Sun Mon Tue Wed Thu Fri Sat
8 9 10 11 12 13 14
1 2 3 4 5 6 7
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30
SEPTEMBER 2019Sun Mon Tue Wed Thu Fri Sat
7 8 9 10 11 12 13
1 2 3 4 5 6
14 15 16 17 18 19 20
21 22 23 24
30 31
25 26 27
28 29
JULY 2019Sun Mon Tue Wed Thu Fri Sat
3 4 5 6 7 8
1
9
2
10 11 12 13 14 15 16
17 18 19 20 21 22 23
27 28 29 3024 25 26
NOVEMBER 2019
Sun Mon Tue Wed Thu Fri Sat
3 4 5 6 7 8
1
9
2
10
17
11 12 13 14 15 16
18 19 20 21 22 23
27 28 29 3024 25 26
MARCH 2019Sun Mon Tue Wed Thu Fri Sat
7 8 9 10 11 12 13
1 2 3 4 5 6
14 15 16 17 18 19 20
21 22 23 24
30
25 26 27
28 29
APRIL 2019
31
Sun Mon Tue Wed Thu Fri Sat
3 4 5 6 7 8
1
9
2
10
17
11 12 13 14 15 16
18 19 20 21 22 23
27 2824 25 26
FEBRUARY 2019
Sun Mon Tue Wed Thu Fri Sat1
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30
2 3 4
APRIL 2020
Sun Mon Tue Wed Thu Fri Sat1
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31
2 3 4
MAY 2019
RESERVED
BLOCKED
Sun Mon Tue Wed Thu Fri Sat1
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31
2 3 4 5
OCTOBER 2019
Sun Mon Tue Wed Thu Fri Sat1
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31
2 3 4 5
JANuARY 2019
Sun Mon Tue Wed Thu Fri Sat
8 9 10 11 12 13 14
1 2 3 4 5 6 7
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
MARCH 2020
Sun Mon Tue Wed Thu Fri Sat
2 3 4 5 6 7 8
1
9 10 11 12 13 14 15
16 17 18 19 20 21 22
26 27 28 2923 24 25
FEBRUARY 2020
Sun Mon Tue Wed Thu Fri Sat
2 3 4 5 6 7 8
1
9 10 11 12 13 14 15
16 17 18 19 20 21 22
26 27 28 29 3023 24 25
JUNE 2019
Sun Mon Tue Wed Thu Fri Sat
5 6 7 8 9 10
1 2 3
11
4
12 13 14 15 16 17 18
19 20 21 22 23 24 25
29 30 3126 27 28
JANUARY 2020
Sun Mon Tue Wed Thu Fri Sat
54
11
6 7 8 9 10
1 2 3
12 13 14 15 16 17
18 19 20 21 22 23 24
28 29 30 3125 26 27
AUGUST 2019
Sun Mon Tue Wed Thu Fri Sat
DECEMBER 2019
8 9 10 11 12 13 14
1 2 3 4 5 6 7
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
MARKET OVERVIEW
AS OF JANUARY 31, 2020
17 331 Coronado Dr, Clearwater Beach, FL
So ld Comparab les
Address Sale Date Sale Price Price/SF Year Built Building Type GBA
Falcon Apartment Motel415 Coronado Dr Clearwater Beach, FL
02/10/2017 $2,519,091 $302.48 1960Hospitality
Motel8,328 SF
Sands Point Motel433 Coronado Dr Clearwater Beach, FL
10/25/2017 $2,200,000 $396.47 1954Hospitality
Single Room Occupancy
5,549 SF
332 Hamden Dr Clearwater, FL 08/02/2018 $2,450,000 $321.69 1957Hospitality
Motel7,616 SF
433 Coronado Dr
332 S Hamden Dr
415 Coronado Dr
Memorial Causeway Trail
Beachwalk
Beac
hwal
k
Brightwater Dr
Fifth St
Bayside Drive
Ham
den
Dr
Devon Drive
Third St
Second St
Memorial Causeway
Ham
den
Dr
Cor
onad
o D
r
S Gulfview Blvd
MARKET OVERVIEW
18 331 Coronado Dr, Clearwater Beach, FL
Awards
Best Beach in
America
Voted Top 10Beach in the World
Best Spring Break Beaches
TOP 10Beaches in U.S.
MARKET OVERVIEW
19 331 Coronado Dr, Clearwater Beach, FL
331 Coronado Drive
Coronado Dr
S Hamden Dr
S Gulfview Blvd
Clearwater Bay
Gulf of Mexico
Nearby Hote l s
MARKET OVERVIEW
20 331 Coronado Dr, Clearwater Beach, FL
C L E A RWAT E R
Pier 60
Beach Walk
Sand Key Park
Ameni t ies
Beach Walk
Pier 60
Clearwater Marine Aquarium
MARKET OVERVIEW
21 331 Coronado Dr, Clearwater Beach, FL
Potent ia l Deve lopment Opt ions
Private ResidencePrivate Residence Boutique Hotel
APPENDIX
BRAD KUSKINFounding Principal
(561) [email protected]