BEACHSIDE HIGH DENSITY REDEVELOPMENT OPPORTUNITY · x $46,000,000 Tanger Factory Outlet Center - 350,000 SF built on 39 acres projected to generate 900 full and part- time jobs. Opened

PROPERPROPERTTY HIGHLIGHTSY HIGHLIGHTS

Principal | Senior [email protected] #BK-0160420

JOHN WJOHN W. TROS. TROSTT, C, CCIMCIM 2.23+/- Acres Beashside Redevelopment Site

Class A building on site with over 40,000 SF with current positive cash flow

Across from the new oceanfront 501 room Daytona Beach Convention Hotel plus 128 Condominiums, under

construction

High visibility in the center of Beachside Business District

Zoning is BR-2 (Business Retail-2), Estimate 500,000 SF Potential

Located one block to the beach

Walking distance to 109,600+ SF Ocean Walk Shoppes, Ocean Center, Sapporo Japanese Steak House, and Oyster

Pub

PRESENTED BPRESENTED BYY::

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for itscorrectness.

All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

FOR SALE | 501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL 32118

BEACHSIDE HIGH DENSITY REDEVELOPMENT OPPORTUNITY

WITH CASH FLOW POSITIVE CLASS A OFFICE BUILDING

501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL

DISCLAIMER


The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of theproperty within and is not to be used for any other purpose. This information should not, under any circumstances, bephotocopied or disclosed to any third party without the written consent of the SVN® Advisor or Property Owner, or usedfor any purpose whatsoever other than to evaluate the possible purchase of the Property.

The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed inthis proposal, and no other person is authorized by the Owner to provide any information or to make anyrepresentations other than contained in this Offering Brochure. If the person receiving these materials does not chooseto pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor.

Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy orcompleteness of the information contained herein, and nothing contained herein is or shall be relied upon as a promiseor representation as to the future representation of the Property. This Offering Brochure may include certain statementsand estimates with respect to the Property. These Assumptions may or may not be proven to be correct, and there canbe no assurance that such estimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and allliability for representations or warranties, expressed or implied, contained in or omitted from this Offering Brochure, orany other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled torely solely on those representations and warranties that may be made to it in any final, fully executed and delivered RealEstate Purchase Agreement between it and Owner.

The information contained herein is subject to change without notice and the recipient of these materials shall not lookto Owner or the SVN Advisor nor any of their officers, employees, representatives, independent contractors or affiliates,for the accuracy or completeness thereof. Recipients of this Offering Brochure are advised and encouraged to conducttheir own comprehensive review and analysis of the Property.

This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expresslyreserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property andexpressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any timewith or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the OfferingBrochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed RealEstate Purchase Agreement on terms acceptable to Owner, in Owner’s sole discretion. By submitting an offer, aprospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and theSVN Advisor from any liability with respect thereto.

To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchasershould not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate PurchaseAgreement shall bind the property and each prospective purchaser proceeds at its own risk.


TABLE OF CONTENTS


1. 4PROPERTY INFORMATIONExecutive Summary 5

2. 6LOCATION INFORMATIONLocation Maps 7

Location Overview 8

Retailer Map 11

Map of Daytona Beach's Explosive Growth 12

Submarket Overview 13

3. 17DEMOGRAPHICSDemographics Map 18

4. 19ADDITIONAL INFORMATIONNews Articles 20

Additional Photos 27

Floor Plans 28

Floor Plans 29

Floor Plans 30

5. 31ADVISOR BIOAdvisor Bio 32

1 PROPERTY INFORMATION


SSALE OALE OVERVERVIEWVIEW PROPERPROPERTTY DESCRIPTIONY DESCRIPTION

Unique 2.23+/- Acre Beachside Redevelopment Site.Class A building on site with over 40,000 SF with current positive cash flow.Estimate 500,000 SF Redevelopment Potential.Across from the new oceanfront 501 room Daytona Beach Convention Hotelplus 128 Condominiums, under construction.High visibility in the center of Beachside Business District.Walking distance to 109,600+ SF Ocean Walk Shoppes, Ocean Center,Sapporo Japanese Steak House, and Oyster Pub.Located one block to the beach in an area of significant redevelopment.Approximately 7 miles to Interstate 95 and 1 mile to International SpeedwayBoulevard.

LLOCOCAATION OTION OVERVERVIEWVIEW

Located at the northwest corner of Grandview Avenue and OakridgeBoulevard one block west of Atlantic Avenue.Just one block walk to the World's Most Famous Daytona Beach and beachaccess ramp.Located in NW quadrant of Atlantic Avenue and Oakridge Boulevard.Zoning is BR-2 (Business Retail-2).Non-Residential Development FAR 3.0Residential Density 40 units per acre.

SALE PRICE: $6,988,000

LOT SIZE: 2.23+/- Acres

BUILDING SIZE: 500,000 Buildable SF

YEAR BUILT: 1968

PARCEL NO: 5305-01-36-0050

ZONING: BR-2 ‘BusinessRetail-2'


SECTION 1 | PROPERTY INFORMATION

Executive Summary

5All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

2 LOCATION INFORMATION




SECTION 2 | LOCATION INFORMATION

Location Maps

Location Overview LOCATED JUST MINUTES TO:

$192,000,000 Daytona Beach Convention Hotel & Condominiums 501 hotel rooms & 128 condo units. 1.1 Million

SF on 4.5 acres, plus 517 space parking garage. Across Atlantic Avenue from the Redevelopment Site.

Proposed $40,000,000 200 room Hard Rock Hotel at 900 N. Atlantic Avenue, approximately 4 blocks north of the

Redevelopment Site

Daytona International Speedway and International Speedway Corporation 190,000 SF Headquarters




$46,000,000 Tanger Factory Outlet Center - 350,000 SF built on 39 acres projected to generate 900 full and part-

time jobs. Opened 2016.

$800,000,000 One Daytona mixed-use project, estimated 7,200 new jobs. Projected open November 2017. Bass

Pro Shops and Cobb Daytona Luxury Theatres now open.

LPGA Golf Course & Jimmy Buffett's Latitude Margaritaville proposed 6,900 new homes




Buc-ee’s planned 120-pump, 50,000 SF convenience store on LPGA Boulevard

LandShark Bar & Grill and Cocina 214 restaurants planned for beachside

Embry-Riddle Aeronautical University and Embry Riddle $12,000,000 Research and Technology Park

944 Bed Halifax Health Medical Center

Daytona International Auto Mall 18 Auto Dealerships including Ford, Dodge, BMW, Maserati, Infiniti & Mini

Cooper

Trader Joe’s $80,000,000 - 800,000 SF distribution warehouse 450 new jobs being created

Daytona Beach International Airport

Daytona State College - more than 33,000 Students annually and 1,797 employees

Bethune-Cookman University - Faculty and Student Body of more than 3,500

International Speedway Boulevard Commercial Corridor and Interstate 95 $246,300,000 new Interchange - under

construction







Retailer Map




Map Of Daytona Beach's Explosive Growth

Submarket Overview | Daytona Beach, FL

Home of the World’s Most Famous Beach. Located just a short distance from the Redevelopment Site was once

the home to presidents and wealthy entrepreneurs, Downtown Daytona Beach is the core of this historic city.

Downtown's main promenade Beach Street is lined with over 60 shops and eateries. Every season fans fill up the

stands to see Daytona Tortugas play in the historic Jackie Robinson Stadium on the waterfront. Beach Street has

museums, exhibits, outdoor festivals, water activities, nightclubs, cafes and Florida's oldest Saturday Farmer's

Market.

Downtown Daytona Beach is the only neighborhood in Daytona Beach where you can see a Broadway play, stop

by the Halifax Historical Museum, enjoy the Daytona Beach International Festival, catch a baseball game,

photograph the manatees, launch your boat, shop and dine out with friends all within walking distance.

Daytona International Speedway has completed a $400 million renovation. The home to Daytona 500 and several

other NASCAR events including the Nextel Cup and Pepsi 400. Its 480 acre complex makes it the largest venue

for motor sports in the world. It’s also one of the busiest with 10 major racings weekends a year, not to mention

many civic functions, bike and car shows.

A 200 room Hard Rock Hotel and Café is planned for the oceanfront opening in 2018. Projected to cost over $40

million.

Protogroup Inc. has under construction a $192 million 501 room hotel and 128 condominiums near the Ocean

Center.

The One Daytona $800 million mixed-use project of shops, restaurants, hotels, and apartments across the street

from Daytona International Speedway that promises to lure big-name businesses and create more than 7,200

new jobs. The first phase of the project will include 300,000 SF of retail, dining, and entertainment including Bass

Pro Shops, Cobb Theatres, two hotels, and 300 apartment units.

Tanger Factory Outlet Center has built a 350,000 SF outlet center providing more than 900 full and part-time jobs.

National grocery store chain Trader Joe’s has built an 800,000 SF distribution center providing more than 450

jobs to the area.

Minto Communities purchased 3,300 acres at LPGA Boulevard for 6,900 plus proposed homes at Jimmy Buffett’s

Latitude Margaritaville.

The Halifax River Yacht Club has over 600 members. The ‘Grand Old Lady’ that had served so well for over a

century was demolished in 2005 and the over $2,000,000 new 20,000 plus square foot 2 story clubhouse was

constructed to serve the larger membership.

The Daytona International Auto Mall 18 Auto Dealerships including Ford, Dodge, BMW, Maserati, Infiniti, Mini

Cooper, and more.

Proposed 140,000 sf Sam’s Club within the 186+/- acre in Tomoka Town Center.

$246.3 million for a new interchange at Interstate 95 and Interstate 4, under construction.

Proposed Buc-ee’s 50,000 SF store with 120 gas pumps on the north side of LPGA Blvd just east of I-95.





The $13 million Cici and Hyatt Brown Art Museum will be the new 26,000 SF home for the Brown’s extensive

collection of more than 2,700 Florida oil and watercolor paintings.

The Halifax River Yacht Club has over 600 members. The ‘Grand Old Lady’ that had served so well for over a

century was demolished in 2005 and the over $2,000,000 new 20,000 plus square foot 2 story clubhouse was

constructed to serve the larger membership.

The Halifax Harbor Marina is a 550 slip, wet slip marina located in Daytona Beach, Florida. The marina is owned

by the City of Daytona Beach. HH provides year round docking facilities for boaters seeking a permanent slip.

Halifax Harbor Marina is considered one of America’s finest marina facilities. It has been honored as Marina of

the Year by Marina Dock Age, a marina business publication.

The $20 million Daytona State College - News Journal Center is situated on the banks of the Halifax River in

historic downtown Daytona Beach. The News-Journal Center is the perfect venue for medium-scale musical and

theatrical performances, as well as conferences, graduations and other mid-sized events. With its striking façade

and 40 foot windows overlooking the Halifax River, the News Journal Center serves both as a riverfront landmark

and an economic engine for downtown. The three-story, 98,000 SF building has a visual arts gallery, an 860 seat

proscenium theater with orchestra pit, and a 260 seat studio theater. Daytona State College is committed to

providing our community high quality entertainment and educational experiences in this unique downtown venue.

The entire theater is equipped with state-of-the-art theatrical, communication and data technology. The main DSC

campus serves more than 33,000 students annually and employs 1,797 people.

The ever expanding Bethune-Cookman University with a faculty and student body of more than 3,500. Founded

in 1904 as training school, then 1923 it became a co-ed high school.

Embry-Riddle Aeronautical University which boasts over 6,000 faculty and student body is located on the edge of

Daytona International Airport. Construction has begun on the $30 million Aerospace Research and Technology

Park adjacent to the airport on approximately 90 acres, in addition to the $28 million College of Arts and Sciences

building on campus and will house the largest university owned telescope in Florida

Halifax Health Medical Center of Daytona Beach a 944-bed hospital. All major medical and surgical services are

available. The 24-hour emergency department (ED) includes the area's only Level II Trauma Center and the only

Pediatric ED. It also features "fast-track" services for less critical injuries. The 4th largest employer in the area

with 3,957 employees.

Nearly 500,000 residents in the Daytona Beach metro area and 8 million visitors enjoy moderate weather, quality

educational choices, exceptional recreational activities, an active arts community and, of course, one of the most

beautiful, family-friendly beaches in Florida.





Education, health care and government are the area’s largest employers. Among the numerous corporate

partners that call Daytona Beach home are:

NASCAR and International Speedway Corporation - ISCA

Ladies Professional Golf Association

LPGA International

Gambro-Renal Products (medical manufacturing)

Brown & Brown, Inc. (insurance) - BRO

Enrichment Industries (Vocational rehabilitation/manufacturing/assembly)

Teledyne Oil and Gas (Engineered solutions for sub/sea pipeline) - TDY

Advanced Ordnance (military Hardware)

X1R (auto lubricants)

Raydon (simulators)

Piedmont Plastics, Inc. (plastics manufacturing)

Embry-Riddle Aeronautical University (aviation-aerospace education)

Halifax Community Health Systems (hospitals/health care)

Florida Hospital Volusia-Flagler (hospitals/health care)

Consolidated-Tomoka Land Co. (land development) - CTO

Ocean Design (subsea Electrical and fiber-optic interconnect systems)

Stonewood Holdings (Restaurant management)




Employment Drivers

Part of a greater metropolitan area of East Central Florida, the City of Daytona Beach is situated at the

confluence of two major interstate highways that provide quick, easy access to the third largest consumer region

in the United States with a population of more than 17 million. International airports in Daytona Beach and

Orlando, railroad and nearby port facilities enhance Daytona Beach’s efforts to provide a cost-effective and

logistically important location to do business while providing an exceptional quality of life.

Daytona Beach is the regional commercial and cultural hub of the Deltona-Daytona Beach-Ormond Beach MSA

with a population of 545,451. Beautiful ocean beaches bring worldwide acclaim. More than eight million tourists a

year visit the area. Quality roads, miles of beautiful tree-lined streets through picturesque neighborhoods and

street beautification programs are national models and reflect the pride of residents. Based on the “2004 Survey

of Buying Power”, the Orlando/Daytona Beach/ Melbourne, Florida media market is ranked 20th in population

with 3.24 million people. It is also ranked 20th in Total Effective Buying Income (EBI) with $61.3 billion.

Daytona Beach is a regional marketplace, giving way to a diverse group of highly successful retail businesses,

manufacturing plants and associations. The city is an integral segment of the I-4 high-tech corridor with

specialized industries in aerospace, automotive and manufacturing. Companies and their employees profit from a

relatively low cost of living, steady economic growth and the benefits of well-planned development. Companies

profit from available labor; training; an area designated as an enterprise zone; and quality public services.

VOLUSIA COUNTY MAJOR EMPLOYERS

COMPANY INDUSTRY EMPLOYMENT

Volusia County Schools Education 8,080

Florida Hospital Volusia-Flagler Market Healthcare 4,248

Halifax Health Healthcare 3,957

Volusia County Government Government 3,280

Publix Grocery 2,486

State of Florida Education 2,361

U.S Governement Government 1,422

Embry-Riddle Aeronautical University Education 1,176




3 DEMOGRAPHICS



SECTION 3 | DEMOGRAPHICS

Demographics Map


POPULAPOPULATIONTION 3 MILES3 MILES 5 MILES5 MILES 10 MILES10 MILES

TOTAL POPULATION 46,839 10,041 211,842

MEDIAN AGE 48.1 39.4 40.3

MEDIAN AGE (MALE) 46.9 37.9 38.8

MEDIAN AGE (FEMALE) 49.5 40.4 42.1

HOUSEHOLDS & INCHOUSEHOLDS & INCOMEOME 3 MILES3 MILES 5 MILES5 MILES 10 MILES10 MILES

TOTAL HOUSEHOLDS 1,960 17,055 40,133

# OF PERSONS PER HH 1.8 2.3 2.4

AVERAGE HH INCOME $44,841 $48,140 $59,770

AVERAGE HOUSE VALUE $259,746 $175,775 $176,330

4 ADDITIONAL INFORMATION


Sky High: Work begins on Daytona’s tallest, most

expensive hotel/condo project

By Clayton Park

Posted Mar 7, 2017 at 12:26 PM

Updated Mar 7, 2017 at 9:44 PM

Protogroup’s 2-tower convention hotel/condo complex to have

380-foot tower

DAYTONA BEACH — The rumble of earth-moving machines can be heard at the east end of

Oakridge Boulevard as excavation work is now underway for the most expensive — and tallest —

beachside development ever built in Daytona Beach.

Protogroup’s planned nearly $192 million Daytona Beach Convention Hotel & Condominiums

complex will consist of two towers, one rising 380 feet, the other rising 320 feet, confirmed Gregory

Portman, president of Atlanta-based PFVS Architecture, the project’s designer.

The north tower of the Protogroup project would also be significantly higher than the 342-foot-tall Peck

Plaza in Daytona Beach Shores, currently the greater Daytona area’s tallest building. Peck Plaza includes

the Top of Daytona restaurant.

mailto:[email protected]

In terms of cost, the Volusia County-run Ocean Center convention complex, by comparison cost $76

million to build in 1985 and was expanded in 2009 at a cost of an additional $82 million, putting its

total cost at $158 million.

The total cost of the Protogroup project, including the $6.9 million six-story 517-stall parking garage

nearing completion across the street from the future Daytona Beach Convention Hotel &

Condominiums, would bring the total cost of the project to nearly $199 million.

Graham Currie, project executive for Yates Construction, the general contractor for the Protogroup

hotel/condo complex, said excavation work on the 4½ acre site began Saturday. The pouring of the 100-

foot-deep concrete-and-rebar piles that will anchor

the foundation is expected to begin next week with vertical construction of the 27- story south tower,

where the majority of the 501-room hotel will be, expected to begin 5½ months from now.

“Everything’s on track,” said Currie of the timeline for completing the 27-story south tower by summer

2019. The 31-story north tower, which will include 42 hotel rooms and all 122 units of the condo

portion of the project is slated to be completed in 2020.

The 1.13 million-square-foot complex — roughly the same size as Volusia Mall — will be connected by

an enclosed, air-conditioned pedestrian walkway that will be built over the existing beach access road at

the east end of Oakridge Boulevard.

The complex will include an 11-story “mid-rise” connected to the south tower.

The complex will also feature street-level retail shops along State Road A1A, a 7,000- square-foot hotel

restaurant and 18,000 square feet of banquet and meeting space.

By comparison, the Hilton Daytona Beach Oceanfront Resort offers 60,000 square feet of meeting space.

The north tower will include 276 parking spaces, primarily for condo residents, said Portman.

Both towers will also have swimming pools on the east side, between the towers and the beach, he

added.

Protogroup is a Palm Coast-based family-run company whose owners are Alexey Lysich, vice

president, and his father and brother. All three are Russian citizens, but Lysich moved to Palm Coast

with his family six years ago and is a full-time resident here who plans to become a U.S. citizen.

Lysich’s father and brother also have homes in Palm Coast, but split their time between here and St.

Petersburg, Russia, where they maintain their primary residences.

Protogroup also owns a Day’s Inn hotel in Palm Coast. The family separately owns several businesses in

Russia, including supermarkets and hotels, but those businesses are not affiliated with the Palm Coast

company, Lysich said in an interview earlier this month.

Several area business and civic leaders commissioned a study by Fishkind & Associates in 2012 that

determined a need for a second convention hotel to be built next to the Ocean Center, in addition to the

744-room Hilton Daytona Beach Oceanfront Resort, across the street to the east.

Frank Bruno, the then-Volusia County chair, was one of those local leaders. Bruno, now a Realtor with

Keller Williams in Port Orange, said the Protogroup project “goes a long way toward fulfilling that

study,” adding, “I like the fact that it’s going to be

only a five-minute walk to the Ocean Center.”

That said, Bruno added: “I still maintain that the city and county should come together to build a parking

garage and convention hotel that could directly connect to the Ocean Center on the south side, either to

the east or west of the Peabody Auditorium. With conventions like the Shriners coming to town, there

will be a need (for more hotels).”

Hard Rock Hotel back with new Daytona plan

By Clayton Park

Follow

Posted Apr 6, 2017 at 9:20 AM

Updated Apr 6, 2017 at 11:16 AM

DAYTONA BEACH — A Hard Rock Hotel may be coming to the World’s Most Famous Beach after

all.

Eight months after Canadian developer Bayshore Capital suspended plans to develop an oceanfront

hotel/condominium complex that would have included a Hard Rock Hotel, another developer has

stepped up with plans to bring the iconic hotel brand to Daytona Beach.

The local developers who have been renovating the former Desert Inn with plans to reopen it as a

four-star Westin Hotel this summer went to the Volusia County Council Thursday seeking approval

to convert the oceanfront property instead to a Hard Rock Hotel.

Summit Hospitality Management Group is also seeking approval to extend their May 7 deadline with

the county for opening the new 200-room hotel at 900 N. Atlantic Ave. to Dec. 31.

Council members, who applauded the news of the Daytona Beach-based hotel development

company’s plans at their meeting Thursday, are expected to decide the matter at their April 20

meeting.

mailto:[email protected]

https://twitter.com/intent/follow?original_referer=http%3A%2F%2Fwww.news-journalonline.com%2Fnews%2F20170406%2Fhard-rock-hotel-back-with-new-daytona-plan&ref_src=twsrc%5Etfw&region=follow_link&screen_name=ClaytonPark3&tw_p=followbutton

Volusia County Chair Ed Kelley is already on board, noting that the proposed switch still brings a high-

end luxury hotel to Daytona Beach’s beachside, an area that has been in great need of revitalization.

“You’d be getting a quality brand that would be a destination,” Kelley said, adding that it could give the

beachside area a much-needed lift. “This will be so exciting that it will drive tourism to a level we’ve

never seen before.”

Fellow council members quickly added their support.

“This is something that can get things (on the beachside) really going,” Councilman Pat Patterson added.

Summit managing member Abbas Abdulhussein said his company had a “letter of intent” with Hard

Rock and hoped to complete the deal soon, after the county signs off on the change. The goal, he said,

remained securing a high-quality hotel for the Daytona area. The Hard Rock, like the Westin, would

be just the second four-star hotel in the area.

“We invested and believed in Daytona when pretty much nobody else did,” Abdulhussein said. “We

saw a flight toward quality. ... People were willing to pay more for quality.”

Summit has been doing business in Daytona Beach since 2007 when it purchased what was then the Inn

on the Beach at 1615 S. Atlantic Ave. Since then it has acquired several other area hotels and recently

proposed a plan to renovate the historic Putnam Inn in DeLand.

Kelley and Abdulhussein met Wednesday with The News-Journal’s editorial board to discuss the

proposed changes along with a few others close to the project.

Abdulhussein said his family-run company decided to terminate its agreement with Westin after

Starwood Hotels & Resorts, which owns that hotel brand, was sold in September to Marriott

International. Marriott already owns several hotels in the Daytona Beach area, with plans to add more.

Abdulhussein said it was important to his company to align with a luxury hotel brand that would be

exclusive to the area, something that Starwood, which had no hotels here, could have provided, but not

Marriott.

Hard Rock, on the other hand, fits that bill as it has only 24 hotels worldwide, including three in

Florida: in Orlando, where the hotel chain is based, Tampa and Hollywood, he said.

“We found the one brand we’re comfortable with and that’s already approved by the County Council,”

Abdulhussein said. “We’re going to be a Hard Rock moving forward.”

Daytona Beach was in line to get a Hard Rock Hotel until last August when Bayshore Capital halted

efforts to develop its proposed oceanfront hotel/condo complex just south of SunSplash Park.

The reasons: slower-than-hoped for presales of the condo units as well as lengthy delays caused by

lawsuits from citizens groups opposed to the county’s agreements to make the sections of beach traffic-

free behind both Bayshore and Summit’s planned hotels.

Unlike Bayshore’s now-scrapped development, Summit’s project will remain strictly a hotel,

Abdulhussein said.

Abdulhussein added that Bayshore Capital Chairman and CEO Henry Wolfond in recent months

encouraged his company to pursue the Hard Rock Hotel brand.

Summit needs county approval to change the brand of its planned hotel and to extend the deadline for

opening to satisfy the council’s conditions for designating the beach behind the hotel traffic free, said

Jamie Seaman, the deputy attorney for the county who also met with The News-Journal’s editorial

board.

Abdulhussein said his company’s hotel would be operated by Hard Rock Cafe International Inc., with

his company remaining the owners of the property. The hotel under the new flag would also remain for

the most part the same as originally planned: with 200 rooms and two restaurants; nearly 20,000 square

feet of meeting space that will include a 6,300-square-foot banquet hall capable of hosting special

events and concerts; a 5,000-square-foot spa; and a kids’ activity area.

The rear of the hotel facing the beach will include a large deck stretching most of the length of the

building, as well as outdoor gazebos and cabana suites with direct pool access and private hot tubs. The

hotel will include underground parking that can accommodate up to 250 vehicles.

Abdulhussein said some of the hotel’s indoor public areas would need to be reconfigured to meet Hard

Rock’s requirements.

According to its website, Hark Rock Hotels typically include amenities such as a Rock Spa that offers a

full-service spa “with a musical twist;” kids and teen activities; a Rock Shop that includes clothing,

accessories and music-inspired souvenirs; the ability for guests to create personalized music playlists in

their rooms; and dining and nightlife activities. Some of the chain’s locations include a Hard Rock Hotel

club featuring live music.

In a letter to the county explaining Summit’s requested changes, Alex Ford, the developer’s attorney,

wrote, “My client feels Hard Rock is a better fit for this project and for this community. In fact, it was

originally my client’s desire to pursue an affiliation with Hard Rock, but that brand was not available at

the time. Hard Rock provides a level of exclusivity as was originally contemplated with Westin.”

Ford added that the proposed change of brand would be a “great win” for the county that “builds on the

legacy of Daytona Beach.”

The request to extend the deadline for completing the new hotel stems from Summit’s need to make

more extensive repairs to the aging former Desert Inn than initially anticipated as well as delays caused

by construction labor shortages and a power outage related to Hurricane Matthew.

Abdulhussein said the cost of construction, originally projected to be around $30 million, is now

expected to exceed $40 million.

Summit paid $6 million to acquire the 1950s-era Desert Inn in September 2013 and closed it later that

year to begin renovation work.

The Desert Inn, prior to Summit’s purchase, had become rundown with a reputation for crime

including the 2011 arrest of the then-owner’s son. That same year, travel website TripAdvisor ranked

the Desert Inn the third dirtiest hotel in the United States.

Abdulhussein said his company bought the Desert Inn because they “believed in Daytona” but saw “a

dearth of quality (hotels) on the beach.”

He said he believes people would be willing to pay a little extra to stay at a “quality” hotel. “We’ve got an

immense asset here ... a beautiful beach and an affordable place to go for families.”

After the original Hard Rock deal fell through, Dinneen said he sensed skepticism from some in the

community that the area could attract the kind of top-flight development that could be a catalyst for

improvement along Daytona Beach’s beleaguered beachside. This deal will change that perception,

Dinneen predicted, though he resisted calling it a game-changer.

“This will be a name-changer,” he said.

— Staff Writer Dustin Wyatt contributed to this report.



SECTION 4 | ADDITIONAL INFORMATION

Additional Photos


FIRST FLOOR PLAN1 SECOND FLOOR PLAN2



Floor Plans


THIRD FLOOR PLAN3 FOURTH FLOOR PLAN4



Floor Plans


FIFTH FLOOR PLAN5



Floor Plans

5 ADVISOR BIO



SECTION 5 | ADVISOR BIO

Advisor Bio


John W. Trost, CCIMPrincipal | Senior AdvisorSVN | Alliance Commercial Real Estate Advisors

WORKING IN COMMERCIAL REAL ESTATE SINCE 1985IT IS ALL ABOUT YOU!

Your dreams, your needs, and your time. Working with you, on yourteam as agent and advocate from the beginning through to closing.

Seasoned professional with the education, designation, andexperience. Bachelor of Business Administration - Degree in Financefrom the University of Central Florida, the coveted CertifiedCommercial Investment Member (CCIM) designation, and thehands-on experience working with business professionals,developers, and investors.

A recognized leader with over 30 years experience in CommercialReal Estate Sales and Leasing. During that time working withdevelopers, financial institutions, and property owners to maximizetheir returns and leverage their time in land and investment propertysales from multifamily sites and subdivisions, to large and small retailshopping centers and office complexes, and church properties acrossFlorida. As well as extensive experience in office and retail leasing tonumerous national, regional, and local tenants.

Involved and a tremendous supporter of various youth and highschool sporting activities, including weightlifting, football, basketball,and golf. Served on the board of local Pop Warner Football, HighSchool Quarterback Club, and other non-profit organizations.

With tremendous growth and interest in the Volusia-Flagler market,you too can benefit from the strength of a commercial broker with theexpertise and integrity to maximize your dollars and your time.

Phone: 386.301.4581

Email: [email protected]

Memberships & Affiliations

International Council of Shopping CentersCCIM Institute

FL #BK-0160420

Fax: 386.206.1735

Cell: 386.295.5723

Address: 1275 West Granada Boulevard

Suite 5B

Ormond Beach, FL 32174

Documents

BEACHSIDE HIGH DENSITY REDEVELOPMENT OPPORTUNITY · x $46,000,000 Tanger Factory Outlet Center - 350,000 SF built on 39 acres projected to generate 900 full and part- time jobs. Opened