Download - 605 - LoopNetimages1.loopnet.com/d2/5BPnWFAiIl5...Folio Number: 02-3234-168-0330, 02-3234-168-0360, 02-3234-168-0370, 02-3234-168-0410, ... SNAPSHOT MARKET SNAPSHOT Miami Beach Highlights

605L I N C O L N R O A DFULL FLOOR OFFICE CONDO FOR SALE

605 LINCOLN R0AD

ABOUTTHE ASSET

605 Lincoln Road is a boutique office building located in the heart of South Florida’s premier outdoor shopping, dining, and entertainment destination.

The 5th floor office condo being offered for sale features the following:

▪ Central location in boutique office building in South Beach located on the corner of Lincoln Road and Pennsylvania Avenue

▪ Steps away from the New World Center and the newly renovated Miami Beach Convention Center

▪ 10,033 SF full floor with abundant natural light

▪ Elevator opens directly into the private reception area

▪ Flexible single-tenant floor plan that can be easily converted for multi-tenant use

▪ 7 transferable parking spaces available leased from the City of Miami Beach in adjacent parking garage

2 605 LINCOLN ROAD | FULL FLOOR Office Condo For Sale

www.blancacre.com

PRIVATERECEPTION

FEATURES

CONFERENCE ROOM

EXECUTIVE OFFICE

ABUNDANT NATURAL

LIGHT

WRAP AROUND VIEWS

PRIMELINCOLN ROAD LOCATION

3605 LINCOLN ROAD | FULL FLOOR Office Condo For Sale

www.blancacre.com

List Price: $4,950,000

Folio Number:02-3234-168-0330, 02-3234-168-0360, 02-3234-168-0370, 02-3234-168-0410, 02-3234-168-0430, 02-3234-168-0440

Office Space: 10,033 SF (Entire 5th Floor)

Parking Spaces: 7 Spaces (Rear of Building)

Year Built: 1932; Renovated 2010

2018 Real Estate Taxes: $50,079.47

Zoning: CD-3 (Miami Beach)

Demographics 1 Mile 3 Miles

Population 31,648 59,085

Households 18,461 32,684

Average Age 41.70 43.20

Median HH Income $52,462 $55,426

Daytime Employees 36,029 73,157

Projected Population Growth ‘18-’23 2.7% 3.6%

Projected Household Growth ‘18-’23 2.1% 3.1%

by thenumbers


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location

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▪ An upscale business environment strategically located in the heart of Lincoln Road Mall, one of the world’s top destinations for business, entertainment and dining

▪ One block away from Miami Beach Convention Center, home to events including Art Basel, eMerge Americas, and International Auto Show

▪ Quick and easy access to MacArthur Causeway, I-95, Port of Miami, and Miami’s most dynamic neighborhoods

▪ Nearby office tenants: WeWork, Morgan Stanley, NY Film Academy, Raymond James, and Jeffrey Group

▪ Neighboring retailers: H&M, Swatch, Sugar, Nike, Crocks, New World Symphony, Starbucks, Spris, Sushisamba, Lulu Lemon, Guess, Zara, Forever 21 and more


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South Beach: Recognized worldwide as a mecca of beautiful beaches and glamorous lifestyle

Cultural District: Arts and Entertainment district which is home to Adrienne Arscht Center for the Performing Arts

Downtown Miami: the city’s central business district

Brickell: Miami’s Financial District

Wynwood: Home to art galleries, retail stores, antique shops, eclectic bars, artisanal eateries and one of the largest open-air street-art installations in the world

Design District: A neighborhood dedicated to innovative fashion, design, architecture and dining experiences

NEARBYNEIGHBORHOODS

605 LINCOLN

ROAD


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DADE COUNTY

BROWARD COUNTY

BiscayneBay

TamiamiAirport

MiamiInternational

Airport

Opa-LockaAirport

MIAMI GARDENS DRIVE

NW 135TH STREET

NW 119TH STREET

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BLANCA

ver: 02.28.09

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access

BRICKELLdowntown

coconut grovecoral gables

miamiami international airport

Access to all major highways, including I-95, SR-836 and SR-826

Drive Times:

• Miami International Airport 18 Minutes

• Downtown Miami 17 Minutes

• Brickell District 20 Minutes

• Coconut Grove 25 Minutes

605 LINCOLN RD.


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OFFICE MARKETSNAPSHOTMARKET SNAPSHOT

M i a m i B e a c h H i g h l i g h t s

PAGE | 7

YEAR OVER YEAR HIGHLIGHTS

Miami Beach weighted average asking rents have increased more than 40% since 2008

Year to date, Miami Beach has completed 24,000 SF in office lease transactions

Miami Beach enjoys the lowest direct vacancy rate within the relevant submarkets; currently at 5.5% for Class A space

No new office deliveries scheduled the next 24 months

Miami Beach Class A Historical Performance

YEAR-OVER-YEAR HIGHLIGHTS

▪ Miami Beach weighted average asking rents have increased more than 40% since 2008

▪ Miami Beach enjoys the lowest direct vacancy rate within the relevant submarkets; currently at 5.5% for Class A space

▪ No new office deliveries scheduled for the next 24 months


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Strategic Location

Access to all major highways and prime

commercial corridors

Foreign Investments

One of the top submarkets in the United States

for foreign investment

Growing Business Community

Community of innovators, entrepreneurs and

global companies

Design

Attractively designed boutique building in

good operating condition

Nearby redevelopment renaissance

Greater Miami Beach Convention Center and

surrounding areas

Stability

Favorable interest rates provide stability to

occupancy costs

drivers


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100331 2 3 4 5

$ PSF Gross Occupancy Cost $ PSF 5 YearMarket Rent (Gross) $484,092 $48.25 Estimated Operating Expenses $180,594.00 $18.00 $18.54 $19.10 $19.67 $20.26Estimated OPEX $25,083 $2.50 Annual Mortgage Payment $229,393.13 $22.86 $22.86 $22.86 $22.86 $22.86Net Occupancy Cost $509,175 $50.75 Gross Occupancy Cost $409,987 $40.86 $41.40 $41.96 $42.53 $43.12

Net Occupancy Cost PSF Tax Savings $ PSFLease $509,175 $50.75 Operating Expenses $180,594 $18.00 $902,970.00 $18.54 $19.10 $19.67 $20.26Own $296,397.72 $29.54 Annual Depreciation Deduction $111,794.87 $11.14 $558,974.36 $11.14 $11.14 $11.14 $11.14Total Savings $212,777.03 $21.21 Annual Interest Deduction $161,968.78 $16.14 $773,537.84 $15.80 $15.44 $15.06 $14.66% Savings 41.79% Gross Occupancy Cost adjusted for Tax Items $454,357.65 $45.29 $2,235,482.20 $45.48 $45.68 $45.87 $46.06

Tax Rate 25%Tax Savings $113,589.41 $11.32 $558,870.55 $11.37 $11.42 $11.47 $11.52

Net Occupancy CostLease $2,545,873.75 Gross Occupancy Cost $409,987 $41 $2,049,935.66 $41.40 $41.96 $42.53 $43.12Own $1,491,065.11 Less: Tax Savings $113,589.41 $11.32 $558,870.55 $11.37 $11.42 $11.47 $11.52Total Savings $1,054,808.64 Net Occupancy Cost $296,397.72 $29.54 $1,491,065.11 $30.03 $30.54 $31.07 $31.61

41.43%

Building Value $4,360,000.00Depreciation $111,794.87

Own LeaseYear 1 $29.54 $50.75Year 2 $30.03 $52.27Year 3 $30.54 $53.84Year 4 $31.07 $55.46Year 5 $31.61 $57.12

OwnershipLease Own

$29.54 $30.03 $30.54 $31.07 $31.61

$50.75 $52.27 $53.84 $55.46 $57.12

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Lease vs. Own Analysis

Own Lease

financialbenefits

lease vs. buy analysis

The financial benefits of owning the 5th floor at 605 Lincoln Road, include:

■ An estimated 41.43% in net occupancy savings vs. leasing a suite on Miami Beach over a 5 year period

■ Fixed Debt Service benefit vs. FMV Base Rent with 3% annual increases

■ Operating expense control benefit

■ Tax benefit of real estate depreciation, mortgage interest and operating expense deductions

■ Equity growth benefit realized upon proceeds of an eventual refinancing or sale transaction

■ Opportunity to benefit from value of surrounding new infrastructure and development projects in Miami Beach

NET OCCUPANCY COST OVER 5 YEARS

LEASE: $2,545,873.75

OWN: $1,491,065.11

TOTAL SAVINGS TO OWN: $1,054,808.64 41.43%Lease Assumptions: ▪ Currently marketed full service lease rate ▪ Operating expenses of $18.00 PSF and 3% annual

increases

Ownership Assumptions: ▪ Operating Expenses of $18.00 PSF and 3% annual

increases ▪ Financing assumption:

60% LTV 5% Interest Rate 25 Year Amortization

Note: This analysis does not factor in the initial equity (down payment) required to purchase the asset nor the funds received from the recovery of initial equity in year 5. If included, the overall cost to own would be lower.

41.43% TOTAL SAVINGS

TO OWN


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photos

2 Executive Offices16 Private Offices2 Conference RoomEmployee Lounge

2 Private Restooms (Men and Women)Storage ClosetDedicated IT RoomWrap Around Views

select features


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floor planFlexible, single tenant floor plan that can be easily converted for multi-tenant use.

TENANT 16,411 RSF

TENANT 23,622 RSF

TENANT 22,987 RSF

TENANT 14,410 RSF

TENANT 22,637 RSF


www.blancacre.com

Blanca Commercial Real Estate(“Blanca”) has been retained as exclusive real estate agent regarding the sale of 605 Lincoln Road, 5th Floor, Miami Beach, Florida 33139 (“Property”).

This confidential Offering Memorandum was prepared by Blanca Commercial Real Estate, and has been reviewed by Owner. It contains selected information pertaining to the Property and does not purport to be all-inclusive, nor to contain all the information that a prospective purchaser may desire. All financial projections are provided for general reference purposes only and are based on assumptions relating to the general economy, competition and other factors that, therefore, are subject to material change or variation. An opportunity to inspect the Property will be made available to qualified prospective purchasers.

Sources of information contained within this Offering Memorandum include, but are not limited to: Beacon Council, CoStar, Florida Department of Labor, and the US Census Bureau.

In this Offering Memorandum, certain documents including leases and other materials, are described in summary form and do not purport to be complete, nor necessarily accurate, descriptions of the full agreements involved, nor do they constitute a legal analysis of such document. Interested parties are expected to independently review all documents.

This Offering Memorandum is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement, or advice as to the value of the Property by Blanca Commercial Real Estate or the Owner. Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Property described herein.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any party at any time with or without notice. Owner shall have no legal commitment or obligation to any purchaser reviewing this Offering Memorandum or making an offer to purchase the Prop-erty unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by the Owner and any conditions to Owner’s obligations thereunder have been satisfied or waived. Blanca Commercial Real Estate is not authorized to make any representations or agreements on behalf of Owner.

This Offering Memorandum is-the property of Blanca Commercial Real Estate and may be used only by parties approved by Blanca Commercial Real Estate. The Property is privately offered and by accepting this Offering Memorandum, the party in possession hereof agrees that this Offering Memorandum and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of Blanca Commercial Real Estate and Owner. The terms and conditions set forth apply to this Offering Memorandum in its entirety.

DISCLAIMER


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