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CDG has identified applicable lots and projects to apply its concept upon in MIami and the Triangle area of North Carolina
Citation preview
OV
ER
VIE
W
· C
urre
nt a
sking
pric
e is $
13
m
· T
erm
s are
of m
ost im
po
rtan
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an
d a
nyth
ing
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ee
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ays to
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0 d
ays to
tal w
ou
ld b
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ea
l)
· F
ull D
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the
ha
nd
s of th
e S
elle
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ou
ld b
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e
wo
uld
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yer th
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ou
ld g
rea
tly exp
ed
ite th
e p
roc
ess
· P
OF
will b
e re
qu
ired
an
d is a
lso h
igh
ly imp
orta
nt
· E
xpe
cta
tion
s are
tha
t the
do
ors o
pe
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r bu
sine
ss for u
nd
er $
20
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16
Approved
9. File No. 3617
Royal Polo Investors, LLC
2940 Collins Avenue
The applicant is requesting the following variance in order to perm
it the retention of the existing guest room
s: 1. A variance to w
aive the required minim
um hotel unit size: 15%
of the hotel units shall be betw
een 300-335 s.f. and 85% of units shall be 335 s.f. of larger, in order to
retain 88 hotel units at less than 300 s.f (the smallest at 202 s.f., 91.6%
of units), 6 hotel units betw
een 300 and 335 s.f. (6.3% of units) and 2 units exceeding 335 s.f.
(2.1% of units).
Also
inc
lud
ed
be
low
are
5+
ad
ditio
na
l sites to
wh
ere
ad
ditio
na
l de
velo
pm
en
t / re
-de
velo
pm
en
t will o
cc
ur a
s we
ll (no
t listed
) http://therealdeal.com
/miam
i/blog/2013/03/06/miam
i-penthouse-sells-for-34m
/
Miam
i penthouse sells for $34M
March 06, 2013 02:00P
M
A
rendering of the penthouse at the Residences at The M
iami B
each ED
ITION
A com
bined-unit penthouse at the Residences at the M
iami B
each ED
ITION
has closed for $34 m
illion, making it one of M
iami’s priciest penthouse sales ever,
Coldw
ell Banker announced today. C
oldwell B
anker’s sales associate William
Pierce
closed the deal. P
enthouses 1601 and 1602 in the building were com
bined to form a 16,271-square-
foot triplex featuring eight bedrooms and eight and three-half bathroom
s. The building offers m
ultiple pools and outdoor kitchens. “This record-breaking sale exem
plifies the wonderful flexibility that M
iami B
each offers,” P
ierce said in a statement. “There w
ill be a nearly 360 degree view of our
beautiful city.” –Christopher C
ameron
Tags: Coldw
ell banker, residences at Miam
i beach edition R
elated posts
• Pharrell W
illiams lists B
rickell Avenue penthouse for $16.8 m
illion • R
ental potential drives South B
each condo-hotel sales • P
enthouse B sells at S
etai
• Rental potential drives S
outh Beach condo-hotel sales
N
EW
DE
VE
LOP
ME
NT || C
OLLIN
S A
VE
23R
D – 41S
T || M
IAM
I BE
AC
H || 2012 - 2015
1. 224 23
rd St &
2200 Liberty Ave &
340 23rd S
t
· Form
er Property N
ame C
ity of Miam
i Beach surface
parking (separate blocks)
· N
ew P
roperty Nam
e City of M
iami B
each parking structure &
retail
· D
etails New
structure that will
encompass tw
o half’s of City blocks
· A
rchitect Zaha Hadid – w
orld renow
ned designed in London for Olym
pics
· Links
http://ww
w.zaha-hadid.com
/ http://w
ww
.dezeen.com/2011/12/21/m
iami-beach-parking-garage-by-zaha-hadid/
2. 2360 C
ollins Ave
· Form
er Property N
ame B
anana Bungalow
· N
ew P
roperty Nam
e a-loft (W H
otel Brand)
· D
etails New
8-story building,
restaurant, club, waterfront
· A
rchitect Unknow
n – Starw
ood
· Links http://w
ww
.starwoodhotels.com
/alofthotels/index.html?
PS
=GW
S_aa_S
tarwood_A
loft_Brand_E
xact_Google_aloft_hotels_09170
8
3. 2901 Collins A
ve
· Form
er Property N
ame S
eville Beach H
otel
· N
ew P
roperty Nam
e Marriott E
DITIO
N
· D
etails New
8-story building, restaurant, club, w
aterfront
· A
rchitect Ian Schrager / Lionstone
Developm
ent
· P
lanned renovation $250m
· Links
http://ww
w.w
orldpropertychannel.com/featured-colum
nists/deal-of-the-week-
holliday-fenoglio-fowler-seville-beach-hotel-m
arriott-international-manny-de-
zarraga-fortune-international-lionstone-group-ian-schrager-2927.php http://w
ww
.marriott.com
/hotel-development/E
DITIO
N.m
i http://w
ww
.editionhotels.com/en-us/
http://ww
w.ianschragercom
pany.com/
http://ww
w.lionstone.net/
4. 3201 C
ollins Ave
· Form
er Property N
ame S
axony Hotel (form
er to-be C
ipriani)
· N
ew P
roperty Nam
e Faena
· D
etails Residential tow
er (North
tower of S
axony) highest cost of residential on all of Miam
i Beach
· A
rchitect Norm
an Foster & R
em
Koolhass
· P
lanned renovation $150m
· Links
http://ww
w.faena.com
http://w
ww
.faena.com/en/m
iami#!/
http://miam
i.curbed.com/tags/saxony-hotel
5. V
ersailles
· 275 key hotel
· N
ew 10 story residential tow
er / 50 units
· A
pproved 2 story restaurant
· U
nderground parking
· K
obi Karp – A
rchitecture
6. West side C
ollins from 32
nd – 34th
· R
em K
oolhaus (Am
sterdam)
· R
etail & entertainm
ent complex
· U
nderground mechanical parking
· B
outique hotel, shopping, residences
7. Other sales / developm
ent notable
· *D
ays Inn SO
LD $70m
+ and possible new flag
· *S
oho House established
· *Indian C
reek Hotel recently sold – Italian brand forthcom
ing
· *V
acant buildings on 37th / C
ollins just sold recently
· *Fontainebleau
CO
NTIN
UU
M D
EVELOPM
ENT G
ROU
PEXEC
UTIVE SU
MM
ARY AND
PROJEC
T SUM
MARY
Continuum Developm
ent Group is a newly incorporated design and developm
ent group developing a hotel and perform
ance venue here in Miam
i and one in the Research Triangle Park area in Durham, North Caro-
lina. Our concept brings together experienced developm
ent executives, technology and guest experience experts, and world class architects who have designed and executed projects all over the world and de-veloped the high-tech progressive design approach we are applying. The concept is m
eticulously planned to create an integrated environm
ent of both aesthetics and lifestyle that will bring a new and highly desirable scene and lifestyle to the areas. O
ur architects, Jordan Trachtenberg and Michael Sim
s have worked with the top architects and firm
s in the world, SOM
(World Trade Center), Frank G
ehry (Guggenheim
, New World
Symphony, NY By G
ehry at 8 Spruce), UN Studio-Amsterdam
(Mercedes-Benz M
useum- G
ermany), Zaha
Hadid (1000 Museum
Park - Miam
i).
CDG has created a concept and m
odel which can be applied to varying lots and properties and able to be duplicated in other m
arkets. We have identified properties to im
plement our unique concept upon which fills
a void and need in this Miam
i market and others around the country. W
e already have land possessed for the NC project. M
iami is one of the hottest real estate m
arkets in the world and a top ten luxury market glob-
ally, and RTP is a one of fastest growing areas in the country. We believe our concept of luxury residences
and an upscale boutique hotel, coupled with the city’s premiere upscale yet hip destination restaurant with
an integrated live music and perform
ance experience fits well into the current real estate and economic en-
vironments. Finding world-class live m
usic in Miam
i is a tough endeavor in itself. Enjoying quality live music
in a nice venue while enjoying a fine meal is unprecedented in either m
arket currently. Our concept also
includes an “Integrated Living” theme of having design and technology integrated not only into the units, but
also integrating the residents and guests with the neighborhood, the areas services providers, and the cities happenings and culture. This will be a distinguishing characteristic of the property. O
ur concept of “Living in the State of Luxury” entails not solely luxury accom
modations, nor sim
ple access to the best of what the city has to offer. O
ur definition entails creating a unique destination attraction that brings the best of an area to the guests and resident’s doorstep through our well thought out program
of outlets; rooftop bars, beach and social clubs, restaurants, and perform
ance lounges.
We have been in discussions with m
ultiple Miam
i Heat players in regards to being involved in the projects. Having the m
ost visible people in the city being principles in and frequenting the venues will make these
the premiere venues in the city. W
e anticipate bringing in a high visibility music partner as well. This is the
model for M
iami Beach, which will be the flagship and showpiece for the brand. W
e are also developing a sim
ilar concept of great design, but limited services and wrapped in a lim
ited services business model that
is attractive to investors for other markets. The plan is to duplicate the m
odel and concept for other primary
markets in addition to m
arkets where our high visibility partners are originally from or have great recognition
or a following, like Chicago. Detroit, Kansas City, Virginia Beach, Cleveland, and other secondary markets.
We have had extensive discussions with experienced hotel operators such Keith M
enin at Menin Hotels
(Mondrian, Shelbourne, G
ale, Regent-Chicago and Anthony Melchiorri, host of the Travel Channel’s show,
Hotel Impossible, and the m
anaging director of RDV Hospitality, Josh Wagner (who form
erly ran F&B and venues for M
organ’s Group Hotels) in regards to their potential participation in the projects in a m
anagement
capacity as a contracted service provider.
EXECUTIVE SUMM
ARY
CO
NTIN
UU
M D
EVELOPM
ENT G
ROU
P LLC ///
1 of 4
CDG has developed a concept that is an architectural, technological, and cultural m
arvel. We have tried to
structure the projects to be as remarkable to our partners and investors as it is for those who experience
the properties and venues. We have included a m
ix of condos, hotel rooms, and revenue outlets that
creates an attractive financial offering and provides security to our investors. The condos provide for an early revenue source or return for equity investors through pre-construction sales (M
ajestic Properties has signed on as a broker for pre-sales). The hotel and outlet provides cash flow and value for an exit in addi-tion to revenue from
condo sales. We are flexible in regards to deal param
eters and partnership structures. W
e are seeking an equity partner, which can be leveraged to obtain debt financing. We also m
ay be able to provide secured collateralization through a group, Iconic Ventures, for investors which 100% guarantees
PROJECT DEVELO
PMENT
//////01 ROYAL PO
LO /////// 02 LM
NT /////// 03 TRIANGLE HO
USE///////
CO
NTIN
UU
M D
EVELOPM
ENT G
ROU
P LLC ///
2 of 4
With the design district being one of the hottest neighborhoods in M
iami, LM
NT will be a true destination for guests to come and
spend some tim
e enjoying the lush garden patio, cocktail bar, salon lounge and main restaurant. After a fine dinner and perform
ance, there is no better way to burn som
e of those calories than shaking a leg on the dance floor. LMNT has a full cabaret and 5AM
liquor license, and will convert into a full nightclub venue late nights.
The restaurant and event space in itself will be a new icon for the city and a good business for principles and investors, yet it is just a sm
all piece of the value of this opportunity. The existing operating business of production services, events and the bar will produce a revenue stream
to carry initial operations. The new restaurant and music concept can be im
plemented with m
inimal investm
ent and construction to existing structure. LM
NT’s existing production resources enables a robust artist-in-residency program which will keep a
constant and fresh crop of artist creating and performing at the venue.
This situation is an exceptional opportunity due to the ability to construct a 32 story mix-use tower on the back of the lot. W
e envision a 200,000 sq. ft. (150k sellable) building with approxim
ately 100 luxury condos and 20 hotel suites with spectacular city and bay views in the property. Current m
arket rate for the area is $350 to $500 per sq. ft. The property will have amenities such as a gym
, pool, rooftop lounge, and a grocery store on ground floor. Integrated living is the them
e, encompassing technology, design, and culture. W
e have had discussions about the possibility of bringing Jay-Z’s 40/40 club to our project, which we envision being on the rooftop of the building. Existing design inspirations would include Butter in NYC, the garden patio at the Hudson Hotel in NYC and the form
er Asia De Cuba in NYC. Infuse those spaces design and am
biance with the live music experience of Joe’s Pub in NYC and you have a solid
understanding of our concept for this project.
- Price: $12M (asking) $9M
(offer)- Building Size: 7,000 SF- Property Type: T5 Zoning residential/m
ix use for nightclub/cabaret & residential tower- Property Use Type (operating): G
allery, Event Space, Bistro- Proposed Use: T6 m
ix use for residential tower, restaurant, music venue, lounge/club,
event space, retail- Year Built: 2011- Lot Size: 0.8 acre (32 story Condotel to be constructed on back ⅔
of lot)
Highlights- Existing owner is reporting estim
ated annual income for property around $4M
with net incom
e of $2.7M. Using a conservative reverse m
ultiple, we will use $1.5M
- Projected new restaurant and venue revenues - $6M- Build cost: $200/sq. (200k) = $40M
Revenue from condo sales: $400/sq. (150k) = $60M
Project Costs- Acquisition of existing structure, business, land, and interior redesign - $12M
- Construction costs for tower - $8M
(20% of total construction costs)- Total project costs - $52M
02 LMNT
CO
NTIN
UU
M D
EVELOPM
ENT G
ROU
P LLC ///
3 of 4
TEAM
Scott Bednaz is a com
mer-
cial broker
and developer
with 19 years experience in
North and South C
arolina. As President of TerraC
orp Com
-m
ercial properties and Tallus D
evelopment group M
r. Bed-naz has negotiated the pur-chase, sale, or lease of 1 m
il-lion square feet of com
mercial
space, 3,500 acres of land re-sulting in $100 m
illion in com-
pleted transactions. In 2005 he branched out from
repre-sentation to develop his ow
n projects including Advanced Auto, H
ooters Burlington, The Estates at Barton’s C
reek, and the Straw
Valley Project. His
projects have
been recog-
nized by multiple new
s and architectural outlets and re-ceived aw
ards from the N
C
and Durham
Preservation So-cieties.
Cedric H
Watkins is a technolo-
gist and founder of a technology com
pany providing solutions for the hospitality industry, Adjacent Innovations. M
r. Watkins is a sea-
soned business
development
and m
arketing executive
who
has founded marketing and tech-
nology companies and has done
development projects in Raleigh
and New
ark, New
Jersey.
After attending UN
C-C
hapel Hill
where he studied M
anagement
and Sociology, Mr. W
atkins has lived in M
anhattan and Miam
i for the last 12 years w
here he has developed a netw
ork of re-sources in finance, real estate, hospitality,
design, technology,
and entertainment. M
r. Watkins
will be project coordinator, lead
business developm
ent, and
serve as technology and guest experience architect.
Jordan Trachtenberg Assoc. AIA, LEED
AP has practiced ar-chitecture over the last decade in five continents ranging from
Asia to South Am
erica. During 2009-
2012 in Amsterdam
, NL, w
hile practicing under Ben van Berkel at
UN
Studio, M
r Trachtenberg
ed the design and execution as C
oordinating Architect
/Project M
anager on several successful projects such as the Singapore U
niversity of Technology and De-
sign to finish completion in 2014.
In addition, Mr. Trachtenberg led
the design on successful com-
petitions, sm
all built
projects, interior,
and industrial
design solutions, such as the Library + C
enter for New
Media in G
hent, Belgium
, Zara flagship store in Rom
e, Italy and the 29th Annual Art Biennale’s Youturn Pavilion in Sao Paulo, Brazil.
Mr. Trachtennberg received the
degree Master of Architecture,
with H
onors in Design, from
Co-
lumbia U
niversity, NY, and holds
a Bachelor of Design in Architec-
ture, with H
onors, from Florida In-
ternational University, M
iami.
ww
w.JordanTrachtenberg.com
Michael Sim
s, Jr. is an archi-tectural design professional now
living and w
orking in Europe. H
e has over 10 years profes-sional experience in the offices of Em
ergent (Tom W
iscombe),
Coop-H
imm
elblau (W
olfgang Prix), Frank G
ehry Associates, SO
M (N
Y), UN
Studio (Ben van Berkel),
and co-taught
work-
shops with Lebbeus W
oods.
As a
proponent of
BIM
and param
etric design
processes, M
r. Sims has been involved in
several high
profile projects
including M
anhattan’s tallest
residential tower, Frank G
ehry’s new
8 Spruce Street tower, the
King of Morocco’s current the-
atre project, and the UN
Studio in Am
sterdam. H
e earned his M
asters of
Architecture from
SC
I-ARC, and a Bachelor of Ar-
chitecture from the U
niversity of N
orth Carolina at C
harlotte. Mr.
Sims has taught digital design
at AIU (Am
erican Intercontinen-tal U
niversity) in Los Angeles, and w
as an SOM
instructor in an applied studies research col-laboration w
ith SCI-Arc, inves-
tigating concepts related to re-sponsive kinetic façades. H
e is now
with Zaha H
adid Architects in London.
CO
NTIN
UU
M D
EVELOPM
ENT G
ROU
P LLC ///
4 of 4
Plaza Hotel
418 -‐426 Meridian Ave – South Beach
Located SW Corner of 5
th st and Meridian Ave M
iami Beach, Fl. 33141
Property consists of 2 adjacent parcels improved w
ith a rooming house
and 2 apartment buildings. Properties are zoned com
mercial m
ixed use. The #426 building has historical classifications and the facades w
ould need to be m
aintained or replicated. The property was approved by the
City for a hotel as shown in the enclosed renderings and plans. The
property can be converted to retail, hotel, residential or office or any com
bination 418 M
eridian Ave Built 1953 Land Size: 50 x 140 = 7000 sf Bldg Size: 1 story bldg. – 2302 sf 5 -‐ 1/1 bath units of 400 sf each – each unit pays $600 /m
onth 2 story bldg. -‐ 2045 sf
1 1/1 bath
5 studio apartments
426 M
eridian Ave (completely vacant and boarded)
Built 1925 Land Size: 50 x 140 = 7000 sf Bldg Size: 3 story bldg. -‐ 16563 -‐ approxim
ate 215 sf per unit 76 units – H
otel Rooms w
ith only a sink and common area bathroom
s on
each floor his / hers with toilet room
s and showers. Property
has 3 stairw
ells, front , rear and center. 1
st floor – 20 units
2nd floor – 27 units
3
rd floor -‐ 29 units
Total Land Size: 14,000 sf 100x140 – 140 feet on 5
th st Total Bldg Size: 20,910
3/24/12 3:18 PMShulm
an + Associates
Page 1 of 1http://w
ww
.shulman-design.com
/swf/sa_system
.html
Intro
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PL
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23
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Citibank
MIA
MI B
EA
CH
, FL
This
information
hasbeen
securedfrom
sourcesw
ebelieve
tobe
reliable,butw
em
akeno
representationsor
warranties,expressed
orim
plied,asto
theaccuracy
ofthe
information.R
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squarefootage
orage
areapproxim
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ustverify
theinform
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bearsallrisk
forany
inaccuracies.M
arcus&
Millichap
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ofM
arcus&
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illichap T0240188
TR
AF
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CO
UN
TS
Ge
og
rap
hy: 5
Mile
s
Po
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inyo
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achang
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f11.2
2%
from
the c
urre
nt y
ear. T
he a
vera
ge h
ouseho
ld s
ize in
yo
ur a
rea is
1.9
6 p
ers
ons.
Inc
om
e
In2011,
the
med
ian
ho
useho
ldin
co
me
for
yo
ur
sele
cte
dg
eo
gra
phy
is$4
1,2
89
,co
mp
are
this
toth
eU
.S.
avera
ge
whic
his
curre
ntly
$53,6
20.
The
med
ian
ho
useho
ldin
co
me
for
yo
ur
are
ahas
chang
ed
by
99.8
9%
sin
ce
2000.
Itis
estim
ate
dth
at
the
med
ian
ho
useho
ld
inco
me in
yo
ur a
rea w
ill be $
44
,858 fiv
e y
ears
from
no
w, w
hic
h re
pre
sents
a c
hang
e o
f 8.6
4%
from
the c
urre
nt y
ear.
The
curre
nt
year
per
cap
itain
co
me
inyo
ur
are
ais
$38,2
47
,co
mp
are
this
toth
eU
.S.
avera
ge,
whic
his
$28,7
13.
The
curre
nt
year
avera
ge h
ouseho
ld in
co
me in
yo
ur a
rea is
$73,7
01 , c
om
pare
this
to th
e U
.S. a
vera
ge w
hic
h is
$73,4
58.
Ra
ce
& E
thn
icity
The
curre
nt
year
racia
lm
akeup
of
yo
ur
sele
cte
dare
ais
as
follo
ws:
77.7
6%
White
,12.4
7%
Afric
an
Am
eric
an,
0.3
6%
Nativ
eA
meric
an
and
0.8
8%
Asia
n/P
acific
Isla
nd
er.
Co
mp
are
these
toU
.S.
avera
ges
whic
hare
:72.4
0%
White
,12.6
0%
Afric
an
Am
eric
an,
0.9
5%
Nativ
e A
meric
an a
nd
4.9
3%
Asia
n/P
acific
Isla
nd
er.
Peo
ple
of
His
panic
orig
inare
co
unte
din
dep
end
ently
of
race.
Peo
ple
of
His
panic
orig
inm
ake
up
59.3
8%
of
the
curre
nt
year
po
pula
tion in
yo
ur s
ele
cte
d a
rea. C
om
pare
this
to th
e U
.S. a
vera
ge o
f 16.9
0%
.
Ho
usin
g
The
med
ian
ho
usin
gvalu
ein
yo
ur
are
aw
as
$172,3
10
in2000,
co
mp
are
this
toth
eU
.S.
avera
ge
of
$110,7
96
for
the
sam
eyear.
In
2000,
there
were
7,7
44
ow
ner
occup
ied
ho
usin
gunits
inyo
ur
are
aand
there
were
21,5
61
rente
ro
ccup
ied
ho
usin
gunits
inyo
ur
are
a.
The m
ed
ian re
nt a
t the tim
e w
as $
453 .
Em
plo
ym
en
t
In2011,
there
are
185,7
11
em
plo
yees
inyo
ur
sele
cte
dare
a,
this
isals
okno
wn
as
the
daytim
ep
op
ula
tion.
The
2000
Census
reveale
d
that
48.5
%o
fem
plo
yees
are
em
plo
yed
inw
hite
-co
llar
occup
atio
ns
inth
isg
eo
gra
phy,
and
51.5
%are
em
plo
yed
inb
lue-c
olla
r
occup
atio
ns. In
2011, u
nem
plo
ym
ent in
this
are
a is
9.0
8%
. In 2
000, th
e m
ed
ian tim
e tra
vele
d to
wo
rk w
as 2
4.4
min
ute
s.
Dem
og
rap
hic
data
© 2
01
0 b
y E
xp
eria
n/A
pp
lied
Geo
gra
ph
ic S
olu
tion
s.
19
DE
MO
GR
AP
HIC
AN
AL
YS
IS
Citibank
MIA
MI B
EA
CH
, FL
This
information
hasbeen
securedfrom
sourcesw
ebelieve
tobe
reliable,butw
em
akeno
representationsor
warranties,expressed
orim
plied,asto
theaccuracy
ofthe
information.R
eferencesto
squarefootage
orage
areapproxim
ate.B
uyerm
ustverify
theinform
ationand
bearsallrisk
forany
inaccuracies.M
arcus&
Millichap
Real
Estate
Investment
Servicesis
aservice
mark
ofM
arcus&
Millichap
Real
Estate
Investment
Servicesof
Florida © 2012 M
arcus & M
illichap T0240188
SU
MM
AR
Y R
EP
OR
T
1 M
ile3 M
iles
5 M
iles
19
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pu
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ouseho
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1,3
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16
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ize
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91
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aytim
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ula
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19
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00
Ow
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ccu
pie
d H
ou
sin
g U
nits
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22
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%
20
00
Ren
ter O
ccu
pie
d H
ou
sin
g U
nits
36
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9.9
6%
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%
2000 V
acant
38.3
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26
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ou
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2011 M
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ld In
co
me
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ita In
co
me
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vera
ge H
ouseho
ld In
co
me
$7
2,8
96
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,56
7$7
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01
Dem
og
rap
hic
data
© 2
01
0 b
y E
xp
eria
n/A
pp
lied
Geo
gra
ph
ic S
olu
tion
s.
20
DE
MO
GR
AP
HIC
AN
AL
YS
IS
Citibank
MIA
MI B
EA
CH
, FL
This
information
hasbeen
securedfrom
sourcesw
ebelieve
tobe
reliable,butw
em
akeno
representationsor
warranties,expressed
orim
plied,asto
theaccuracy
ofthe
information.R
eferencesto
squarefootage
orage
areapproxim
ate.B
uyerm
ustverify
theinform
ationand
bearsallrisk
forany
inaccuracies.M
arcus&
Millichap
Real
Estate
Investment
Servicesis
aservice
mark
ofM
arcus&
Millichap
Real
Estate
Investment
Servicesof
Florida © 2012 M
arcus & M
illichap T0240188
DE
MO
GR
AP
HIC
RE
PO
RT
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TH
E S
EA
SP
RA
Y M
iam
i Beach
, 20
10
Sin
uou
s a
dd
ition
to
his
toric
bu
ildin
g p
rovid
ing
ad
ditio
nal g
uest ro
om
s
an
d p
rivate
roofto
p
terra
ces.
Perfo
rate
d m
eta
l balc
on
ies
con
nectin
g th
e n
ew
bu
ildin
g
with
the h
isto
ric.
New
cou
rtyard
cre
ate
s
sem
i-priva
te s
pace fo
r
hote
l gu
ests
.
Tra
nsp
are
nt s
treet-le
vel
resta
ura
nt
Reu
se o
f his
toric
ap
artm
en
t bu
ildin
g
THE
LOO
K IN
N M
iami B
each, 2009A
IA M
IAM
I DE
SIG
N A
WA
RD
2009
21
3/24/12 3:33 PMShulm
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MIA
MI, FL
MARKET PO
SITION
ING
&
PRICING
ANALYSIS
Prepared For:
Esther Klepach Trust
DO
WN
TOW
N H
OTEL SITE
SECTION
ON
E...............................................PRICIN
G &
FINA
NCIA
L AN
ALYSIS
SECTION
TWO
..................................................PROPERTY D
ESCRIPTION
SECTION
THREE
...................................................RECENT SA
LES
SECTION
FOU
R...............................D
EMO
GRA
PHIC A
NA
LYSIS
SECTION
FIVE..................................M
ARKETIN
G PLA
N
SECTION
SIX...TH
E MA
RCUS &
MILLICH
AP A
DVA
NTA
GE
DO
WN
TOW
N H
OTEL SITE
MIA
MI, FL
Thisinform
ationhas
beensecured
fromsources
we
believeto
bereliable,butw
em
akeno
representationsorw
arranties,expressedor
implied,
asto
theaccuracy
ofthe
information.
References
tosquare
footageor
ageare
approximate.
Buyerm
ustverify
theinform
ationand
bearsallrisk
forany
inaccuracies.M
arcus&
Millichap
RealEstate
InvestmentServices
isa
servicem
arkof
Marcus
& M
illichap Real Estate Investm
ent Services of Florida © 2012 M
arcus & M
illichap
TABLE OF CONTENTS
DO
WN
TOW
N H
OTEL SITE
MIA
MI, FL
PRICING & FINANCIAL ANALYSIS
DO
WN
TOW
N H
OTEL SITE
MIA
MI, FL
Thisinform
ationhas
beensecured
fromsources
we
believeto
bereliable,butw
em
akeno
representationsorw
arranties,expressedor
implied,
asto
theaccuracy
ofthe
information.
References
tosquare
footageor
ageare
approximate.
Buyerm
ustverify
theinform
ationand
bearsallrisk
forany
inaccuracies.M
arcus&
Millichap
RealEstate
InvestmentServices
isa
servicem
arkof
Marcus
& M
illichap Real Estate Investm
ent Services of Florida © 2012 M
arcus & M
illichap
PRICING & FINANCIAL ANALYSIS
1
SUM
MA
RY
PropertyD
owntow
n Hotel Site
Property Address
1789 Biscayne Boulevard
Miam
i, FL 33132
Price4,800,000
Dow
n Payment
100% $4,800,000
Lot Size (SF)13,125
Price/SF$365.71
Lot Size (Acres)
0.3013
Price/Acre
$15,930,966Buildable SF
10,500
Price/Buildable SF$457.14
Num
ber of Units
150Price/U
nit$32,000
Num
ber of Lots3
Price/Lot$1,600,000
Lot Dim
ensions105 X 125
Type of Ow
nershipFee Sim
ple
Loan TypeA
ll Cash
Financial Overview
SITE DESCRIPTIO
NA
ssessor's Parcel Num
ber0132310030730, 720, 710
ZoningT6-24-O
, C-1, SD
-20Taxes
26,051Tax Year
2010Frontage
105' on Biscayne BlvdTraffic C
ounts61,000
Adjacent D
evelopment
New
Publix Supermarket
DO
WN
TOW
N H
OTEL SITE
MIA
MI, FL
Thisinform
ationhas
beensecured
fromsources
we
believeto
bereliable,butw
em
akeno
representationsorw
arranties,expressedor
implied,
asto
theaccuracy
ofthe
information.
References
tosquare
footageor
ageare
approximate.
Buyerm
ustverify
theinform
ationand
bearsallrisk
forany
inaccuracies.M
arcus&
Millichap
RealEstate
InvestmentServices
isa
servicem
arkof
Marcus
& M
illichap Real Estate Investm
ent Services of Florida © 2012 M
arcus & M
illichap
PRICING & FINANCIAL ANALYSIS
2
Pricing
List Price
Price4,800,000
Dow
n Payment
100%$4,800,000
VALU
E IND
ICATO
RS
Price/SF$365.71
Price/Acre
$15,930,966
Price/Buildable SF$457.14
DO
WN
TOW
N H
OTEL SITE
MIA
MI, FL
Thisinform
ationhas
beensecured
fromsources
we
believeto
bereliable,butw
em
akeno
representationsorw
arranties,expressedor
implied,
asto
theaccuracy
ofthe
information.
References
tosquare
footageor
ageare
approximate.
Buyerm
ustverify
theinform
ationand
bearsallrisk
forany
inaccuracies.M
arcus&
Millichap
RealEstate
InvestmentServices
isa
servicem
arkof
Marcus
& M
illichap Real Estate Investm
ent Services of Florida © 2012 M
arcus & M
illichap
PRICING & FINANCIAL ANALYSIS
3
COM
MEN
TS(1) Includes principal reduction.(2) Before taxes.(3) D
epreciation not included.(4) A
ssumptions: 75%
occ., $129.99 and $159.99 AD
R respectively, 150 rooms
Alternative Investm
ent Analysis
Best Western Prem
ier
Cost Per K
ey$170,000.00
Price25,500,000
CA
P Rate
7.33%
New
Loan$12,750,000
Interest Rate
5.500%
Net O
perating Income (4)
1,868,200
Debt Service
939,554
Net C
ash Flow A
fter Debt Service
$928,646
Principal Reduction
244,404
Total Return (3)
$1,173,050
aLoft
Cost Per K
ey200,000
Price30,000,000
CA
P Rate
7.66%
New
Loan$15,000,000
Interest Rate
5.500%
Net O
perating Income (4)
2,299,356.28
Debt Service
1,105,357
Net C
ash Flow A
fter Debt Service
$1,193,999
Principal Reduction
287,534
Total Return (3)
$1,481,533
DO
WN
TOW
N H
OTEL SITE
MIA
MI, FL
PROPERTY DESCRIPTION
Marcus &
Millichap is pleased to offer for purchase and sale, the fee
simple interest in 1789 Biscayne Boulevard, and the adjacent 2 parcels
to the east ("Site"), in Dow
ntown M
iami. The site is Zoned T-6 U
rban C
ore, which allow
s for up to 24 stories and 80% lot coverage. This
13,125 +/- SF development site is ideally located in the heart of
Dow
ntown
Miam
i w
ithin w
alking distance
of the Miam
i Herald
Building, and adjacent to the Hilton H
otel, which w
ere both purchased by G
enting in the past twelve m
onths. Aside from
Genting's recent
acquisitions, Dow
ntown M
iami is poised to becom
e THE hot spot of
Greater M
iami. The A
merican A
irlines Arena is a short distance South
on Biscayne Blvd, and there have been several construction and redevelopm
ent projects adjacent to the the site including the Publix Superm
arket building which opened in M
arch of this year.
While the original plans for G
enting's World Resort on the M
iami
Herald Site have been w
ithdrawn, the scaled-back plans are scheduled
to be released within the next tw
o months. A
lthough the Casino Bill,
which w
ould have legalized casinos and gambling for select sites
including the World Resort, did not pass, m
any experts predict that w
ithin the next two to three years a sim
ilar bill will pass. D
owntow
n M
iami faces its highest cost of entry in years thanks to G
entings $460,000,000 real estate purchases driving the cost per square foot to over $300.00 in areas close by. W
hile sub-prime locations are still
offered at around $120.00 per square foot, the surrounding areas have not seen the sam
e push in terms of re-developm
ent and "clean up", leaving them
unsafe in terms of pedestrian traffic.
DO
WN
TOW
N H
OTEL SITE
MIA
MI, FL
Thisinform
ationhas
beensecured
fromsources
we
believeto
bereliable,butw
em
akeno
representationsorw
arranties,expressedor
implied,
asto
theaccuracy
ofthe
information.
References
tosquare
footageor
ageare
approximate.
Buyerm
ustverify
theinform
ationand
bearsallrisk
forany
inaccuracies.M
arcus&
Millichap
RealEstate
InvestmentServices
isa
servicem
arkof
Marcus
& M
illichap Real Estate Investm
ent Services of Florida © 2012 M
arcus & M
illichap
PROPERTY DESCRIPTION
INVESTM
ENT
HIG
HLIG
HTS
5
Prime Location on one of the few
remaining parcels in D
owntow
nw
ithin 3 blocks of the Genting
Developm
ent Site
Optim
al Zoning for small lot
construction (T-6 Urban Core)
Approved uses include H
otel,Retail, and M
ulti-Family
Across the street from
the newly
constructed Publix Supermarket,
Wells Fargo, and G
NC building
Investment O
verview
As it currently stands, D
owntow
n Miam
i is in need of a limited service nationally branded hotel. The
current hotel market has a surplus of full service room
s with a drastic shortage of lim
ited service. By undercutting the rates of the full service hotels, currently offering room
s above $200.00 per night, a lim
ited service hotel will thrive. A
n additional benifit to a limited service hotel in this location is the new
Publix Superm
arket accross the street. With a Superm
arket within w
alking distance, guests will be
inclined to book this hotel for their extended stays.
DO
WN
TOW
N H
OTEL SITE
MIA
MI, FL
Thisinform
ationhas
beensecured
fromsources
we
believeto
bereliable,butw
em
akeno
representationsorw
arranties,expressedor
implied,
asto
theaccuracy
ofthe
information.
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tosquare
footageor
ageare
approximate.
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ustverify
theinform
ationand
bearsallrisk
forany
inaccuracies.M
arcus&
Millichap
RealEstate
InvestmentServices
isa
servicem
arkof
Marcus
& M
illichap Real Estate Investm
ent Services of Florida © 2012 M
arcus & M
illichap
PROPERTY DESCRIPTION
6
Investment O
verview
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N H
OTEL SITE
MIA
MI, FL
Thisinform
ationhas
beensecured
fromsources
we
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bereliable,butw
em
akeno
representationsorw
arranties,expressedor
implied,
asto
theaccuracy
ofthe
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ageare
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ustverify
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ationand
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arcus&
Millichap
RealEstate
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arkof
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illichap Real Estate Investm
ent Services of Florida © 2012 M
arcus & M
illichap
PROPERTY DESCRIPTION
7
Property Photos
New
Publix, GN
C, and W
ells Fargo
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N H
OTEL SITE
MIA
MI, FL
Thisinform
ationhas
beensecured
fromsources
we
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bereliable,butw
em
akeno
representationsorw
arranties,expressedor
implied,
asto
theaccuracy
ofthe
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ageare
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ustverify
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ationand
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forany
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arcus&
Millichap
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arkof
Marcus
& M
illichap Real Estate Investm
ent Services of Florida © 2012 M
arcus & M
illichap
PROPERTY DESCRIPTION
8
Property Photos 2
Site from N
orth East Corner facing East
LOCA
L MA
PREGIO
NA
L MA
P
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OTEL SITE
MIA
MI, FL
Thisinform
ationhas
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asto
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ofthe
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ageare
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ustverify
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ationand
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arcus&
Millichap
RealEstate
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arkof
Marcus
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illichap Real Estate Investm
ent Services of Florida © 2012 M
arcus & M
illichap
PROPERTY DESCRIPTION
9
Area M
aps
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OTEL SITE
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MI, FL
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ationhas
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we
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em
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ageare
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ustverify
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ationand
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ent Services of Florida © 2012 M
arcus & M
illichap
PROPERTY DESCRIPTION
10
Plat Map
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OTEL SITE
MIA
MI, FL
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ationhas
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em
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ustverify
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PROPERTY DESCRIPTION
11
Aerial Photo
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OTEL SITE
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ationhas
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ustverify
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arkof
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illichap Real Estate Investm
ent Services of Florida © 2012 M
arcus & M
illichap
PROPERTY DESCRIPTION
12
Aerial Photo w
ith Labels
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OTEL SITE
MIA
MI, FL
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ationhas
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ustverify
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ationand
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arcus&
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ent Services of Florida © 2012 M
arcus & M
illichap
PROPERTY DESCRIPTION
13
3D A
erial
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OTEL SITE
MIA
MI, FL
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ationhas
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ustverify
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illichap Real Estate Investm
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arcus & M
illichap
PROPERTY DESCRIPTION
14
South Easterly View
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N H
OTEL SITE
MIA
MI, FL
RECENT SALES
1)2)
Dow
ntown H
otel SiteM
iami H
erald PropertyM
ixed Use D
evelopment Site
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TOW
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OTEL SITE
MIA
MI, FL
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ationhas
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em
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ofthe
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ageare
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ustverify
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ationand
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arcus&
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arkof
Marcus
& M
illichap Real Estate Investm
ent Services of Florida © 2012 M
arcus & M
illichap
RECENT SALES
16
Recent Sales Map
0.00
40.00
80.00
120.00
160.00
200.00
240.00
280.00
320.00
360.00
400.00
Subject
Miam
iH
eraldP
roperty
Mixed
Use
Developm
entS
ite
Avg $360.12
AVERA
GE PRICE/A
CRE
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
Subject
Miam
iH
eraldP
roperty
Mixed
Use
Developm
entS
ite
Avg $15,686,636
DO
WN
TOW
N H
OTEL SITE
MIA
MI, FL
Thisinform
ationhas
beensecured
fromsources
we
believeto
bereliable,butw
em
akeno
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arranties,expressedor
implied,
asto
theaccuracy
ofthe
information.
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ageare
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ustverify
theinform
ationand
bearsallrisk
forany
inaccuracies.M
arcus&
Millichap
RealEstate
InvestmentServices
isa
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arkof
Marcus
& M
illichap Real Estate Investm
ent Services of Florida © 2012 M
arcus & M
illichap
RECENT SALES
17
AVERA
GE PRICE/SF
Price/SF & Price/A
cre
12
MIA
MI H
ERALD
PROPERTY
1 Herald Plz
Miam
i, FL 33132
MIXED
USE D
EVELOPM
ENT SITE
1825 Northeast 4th avenue
Miam
i, FL 33132
DO
WN
TOW
N H
OTEL SITE
1789 Biscayne BoulevardM
iami, FL 33132
SUBJECT PRO
PERTY
Close of Escrow
:05/26/2011
Lot Size (SF):609,840
Sale Price:$236,000,000
Price/SF:$386.99
Dow
n Payment:
Lot Size (Acres):
14.0000
Dow
n Payment %
:Price/A
cre:$16,857,143
Zoning:
Lot Dim
ensions:
DO
WN
TOW
N H
OTEL SITE
MIA
MI, FL
Thisinform
ationhas
beensecured
fromsources
we
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bereliable,butw
em
akeno
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arranties,expressedor
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ofthe
information.
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ageare
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ustverify
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ationand
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arcus&
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RealEstate
InvestmentServices
isa
servicem
arkof
Marcus
& M
illichap Real Estate Investm
ent Services of Florida © 2012 M
arcus & M
illichap
RECENT SALES
Close of Escrow
:02-07-2012
Lot Size (SF):27,007
Sale Price:$9,000,000
Price/SF:$333.25
Dow
n Payment:
Lot Size (Acres):
0.6200D
own Paym
ent %:
Price/Acre:
$14,516,129
Zoning:
SD-6,
Lot Dim
ensions:Irregular
18
Sale Price:4,800,000
Lot Size (SF):13,125
Dow
n Payment:
$4,800,000Price/SF:
$365.71D
own Paym
ent %:
100%Lot Size (A
cres):0.3013
Zoning:
T6-24-O, C
-Price/A
cre:$15,930,966.00
Lot Dim
ensions:105 X
125
Recent Sales
MARKET PO
SITION
ING
&
PRICING
ANALYSIS
MIA
MI, FL
Offices N
ationwide
ww
w.M
arcusMillichap.com
Presented By:
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ssociateM
iami O
fficeTel: (786) 522-7000Fax: (786) 522-7010
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OTEL SITE
Light House ///
A New Way to Stay // Concept Design Book
03.2013 /// TRACHTENBERG LLC
The Concept /// Past + Present + Future
With its rich cultural history and well deserved reputation for some of the best weather in the world and establishing the idea of “living the life of luxury”, Mi-ami is undoubtedly a world-class city, yet it is lacking in one area. With such a legacy, the current version of the luxury experience with thousand dollar bottles at packed clubs, celebrity dj’s, and laser light shows are not doing this legacy justice. In a city like Miami where money does not ensure access, the true defini-tion of luxury must include access to the best of the life of luxury, which includes service, entertainment and socializing with like natured individuals.
Experiencing luxury in the manner and style in which you desire is the para-mount of living the life of luxury. The manner, frequency, and consistency in which the Lighthouse lifestyle of luxury will provide this paramount experi-ence to our guests and residents creates a lifestyle and residential environment unique and incomparable to anywhere in the world. Living in the state of luxury requires not only access, but also convenience. Having access to the best of the life of luxury is the current standard for experiencing luxury. Having those things brought to your doorstep is “living in the state of luxury”, which is life at The Lighthouse.
With Miami being one of the hottest travel destinations and condo markets in the world and the hotel market being one of the few markets experiencing in-creased tourism and higher rates for both occupancy and average daily rates, the opportunity to leverage both of these facts and capitalizing on Miami’s current lack of quality live music and entertainment makes this opportunity unique and one-of-a-kind. The Lighthouse brings together the culture of The City and ap-preciation for creation, music, and performance with the Miami lifestyle of luxury and celebrity, and infused with the universal spirit of the true appreciation of “the party scene”. This unique combination will make The Lighthouse a true destina-tion experience for the few fortunate enough to experience it during their stay or for the truly fortunate who call it home.
03.2013 /// TRACHTENBERG LLC
The Concept /// Past + Present + Future
The Lighthouse Residences are an ultra-luxury condo and hotel with a private social club, rooftop pool and bar, world-class restaurant and spa, and performance lounge space. The Lighthouse experience will become the new beacon for what luxury living and accommodations are judged, yet globally incompara-ble due to the unique attributes of location, quality of facilities, and the world-class environment for en-tertainment which draws world-class talent, residents, and guests which creates world-class experiences and memories. The Lighthouse will be a cultural, architectural, technological, and ecological beacon for Miami. Bringing together the best of the old, using a bit of the current, and bringing them together to create a true desti-nation experience where the of the experiences of “the life of luxury” are alive, vibrant and being created every day.
“Old fashion service is the most pleasent luxury.” - Andre Balasz
03.2013 /// TRACHTENBERG LLC
Team //
03.2013 /// TRACHTENBERG LLC
Scott Bednaz is a commercial broker and developer with 19 years experience in North and South Carolina. As President of TerraCorp Commercial properties and Tallus Development group Mr. Bednaz has negotiated the purchase, sale, or lease of 1 million square feet of commercial space, 3,500 acres of land resulting in $100 million in completed transactions. In 2005 he branched out from representation to develop his own projects including Advanced Auto, Hooters Burlington, The Estates at Barton’s Creek, and the Straw Valley Project. His projects have been recognized by multiple news and architectural outlets and received awards from the NC and Durham Preservation Societies.
Isaac Brown has been Director of Emerging Markets for Choice HotelsInternational for the past 9 years and has worked with Marriott developing over 60 properties. Prior to his cur-rent position, he was Architectural Designer, where he was responsible for prototype design for all Choice brands, and design reviews which
Mr. Brown will be
these brands. In addition he has been responsible for almost a half a billion dollars worth of revenue during his tenure working in development at Choice International.leaving Choice durring 2013 in his full-time capacity, and is currently in the early stages of developing four other properties where he is majority principal in the project. Mr. Brownhas a masters degree in architecture from Louisiana State Universityand a MBA from New York University. Mr. Brown is a New York City native and will lead the development team for the project.
Cedric H Watkins is a technologist and founder of a technology compa-ny providing solutions for the hospi-tality industry, Adjacent Innovations. Mr. Watkins is a seasoned business development and marketing execu-tive who has founded marketing and technology companies and has done development projects in Raleigh and Newark, New Jersey.
After attending UNC-Chapel Hill where he studied Management andSociology, Mr. Watkins has lived in Manhattan and Miami for the last12 years where he has developed a
real estate, hospitality, design, tech-nology, and entertainment. Mr.Watkins will be project coordinator, lead business development, andserve as technology and guest expe-rience architect.
Jordan Trachtenberg Assoc. AIA, LEED AP has practiced architecture
-nents ranging from Asia to South America. During 2009-2012 in Am-sterdam, NL, while practicing under Ben van Berkel at UNStudio, Jordan led the design and execution as Coordinating Architect /Project Man-ager on several successful projects such as the Singapore University
-ish completion in 2014. In addition, Jordan led the design on successful competitions, small built projects, in-terior, and industrial design solutions, such as the Library + Center for New
-ship store in Rome, Italy and the 29th Annual Art Biennale’s Youturn Pavil-ion in Sao Paulo, Brazil.
Jordan received the degree Master of Architecture, with Honors in De-sign, from Columbia University, NY, and holds a Bachelor of Design in Architecture, with Honors, from Flori-da International University, Miami.
Michael Sims, Jr. is an architectural design professional now living and working in Europe. He has over 10 years professional experience in
-combe), Coop-Himmelblau (Wolf-gang Prix), Frank Gehry Associates, SOM (NY), UN Studio (Ben van Berkel), and co-taught workshops with Lebbeus Woods.
As a proponent of BIM and paramet-ric design processes, Mr. Sims has
projects including Manhattan’s tallest residential tower, Frank Gehry’s new 8 Spruce Street tower, the King of Morocco’s current theatre project, and the UN Studio in Amsterdam. He earned his Masters of Architec-ture from SCI-ARC, and a Bachelor of Architecture from the University of North Carolina at Charlotte. Mr. Sims has taught digital design at AIU (American Intercontinental Univer-sity) in Los Angeles, and was an SOM instructor in an applied studies research collaboration with SCI-Arc, investigating concepts related to responsive kinetic façades. He is now with Zaha Hadid Architects in London.
Team /// 03.2013 /// TRACHTENBERG LLC
Team /// Jordan Trachtenberg // Architecture Projects Sample Work
www.jordantrachtenberg.com
Pavilion / Sao Paulo, Brazil University / NYC, New York University / NYC, New York
Hotel / Philidelphia, PA Library / Ghent, Belgium
Library / Ghent, Belgium
University / Singapore
University / Singapore Performing Art Center / S. Korea Performing Art Center / S. Korea
Office Park / South Korea
Pavilion / Sao Paulo, Brazil
03.2013 /// TRACHTENBERG LLC
Team /// Michael Sims /// Architecture Projects
Residental Tower / NYC, NY
Residental Tower / NYC, NY
Mixed Use / ChinaTower / Abu Dabi
Tower / Abu DabiSympony Center / Miami, Florida
Theater / Moroco
Sympony Center
Sympony Center
Commercial Tower / NYC, NY
Commercial Tower / NYC, NY
Sample Work 03.2013 /// TRACHTENBERG LLC
Design Model / /
03.2013 /// TRACHTENBERG LLC
Organization /// Event as an Integrated Concept
EventSpace
Auditorium
Restaurant
Pool + Deck
EventSpace
Bed
Bath
EventSpace
Eventspace
Bath
Bath
Bed
Bed
Lounge
Back oces
Stage
Logistics
Kitchen
Lounge +Bar
Parking
Lounge
Lounge
Relations
publicprimary
secondary
tertiary
semi-public
not publicDouble Quarters
Loft Quarters
Single Quarters
21
EventSpace
Auditorium
Restaurant
Pool + Deck
EventSpace
Bed
Bath
EventSpace
Eventspace
Bath
Bath
Bed
Bed
Lounge
Back oces
Stage
Logistics
Kitchen
Lounge +Bar
Parking
Lounge
Lounge
Relations
publicprimary
secondary
tertiary
semi-public
not publicDouble Quarters
Loft Quarters
Single Quarters
21
The Event Space becomes the central nucleus to the program. All spaces are in-terwoven and interdependent .The circula-tion around the event spaces are a direct connection between the different clusters. The secondary route,Within each cluster, leads each visitor through the experience.
The functional diagram shows the various user levels magnified to best visualize and represent each relationship. It fulfills the event space as a crucial link, as well as an element that binds together the differ-ent spaces of the hotel.The relationship between the Event Spac-es and the surrounding clusters, creates various degrees of public / dynamic (cen-tral event space, Lounges, Restaurants) to private / introvert (quiet lounges, Quar-ters.)
The shared Lounge/event spaces in turn form the internal link between the clusters of Quarters, and provide a smooth transi-tion through the main event spaces. This seamless interweaving of function and circulation also creates various spatial experiences of open spaces, to intimate enclosed areas, and excites the visitors to discover and participate in the new way to stay.
03.2013 /// TRACHTENBERG LLC
Design Strategies ///
Vertical Landscape - Minimum Site Coverage - Iconic
Urban Social Landscape - Max Site Coverage
Vertical to LateralOur design philosophy is flexible in its concept. Depending on each site in context we adapt the design model to both vertical and horizontal typologies. This promotes a true understanding of our site, its surroundings, and how to best integrate the design model.
03.2013 /// TRACHTENBERG LLC
Organization /// Example // Plymouth Hotel + Ansonia
The Plymouth Hotel as context; erties where our design ory and relationships
of 1940’s Miami Beach Art Deco to most recently housing the New World Symphony student body will play an integral role in our event, marketing and branding. Preserved Historical the Plymouth hotel is an icon of Miami Beach. With proper direction the hotel will become a destination. Linking Miami Beach to the sub culture and event spaces it desires.
Current Situation | Preserved Historical the Plymouth hotel is a Icon of Mi-ami Beach. With proper direction the hotel will become a desitation. Linking Miami Beach to the sub culture and event spaces it desires.
Current Situation | Parralel sites that are less desierable are being broken down to the bare walls and recreated into moder hotels. Our objective is to go beyond our neighbors stting a new bar for the area.
Plymouth example
Plymouth Ansonia
roof terraceQuarters and lounge
Quarters
Event SpaceLoungePool and deck Lobby
extending Event Space throughout
03.2013 /// TRACHTENBERG LLC
Roof Terrace
03.2013 /// TRACHTENBERG LLC
Organization /// Vertical Landscape // Site Context
Parking
150 Condo
150 Hotel
RestaurantCommercial Lobby
Event
EventBar/Social
The Design philosophy applied to this site in Edgewater, centrally located between Mid-Town, South Beach and Downtown offers an ideal proximity to tap into the optimal demo-graphic applying a mixed use programmatic approach amplifies the ability to tap into mul-tiple revenue streams.
03.2013 /// TRACHTENBERG LLC
Program Typologies /// Example aesthetics
Quarters //
Event Spaces //
Common Spaces//
03.2013 /// TRACHTENBERG LLC
Referenced /// 03.2013 /// TRACHTENBERG LLC
Details /// Technology + Space + FunctionalityEach square foot is thought about in detail. How to maximize interactivity, comfort and usability
03.2013 /// TRACHTENBERG LLC
Details /// Finishes, Materials, Texture, LightingCrisp and simple details will allow the design to maintain a cost effective background and elegant foreground. // Crisp, sharp, elegant, defining,
03.2013 /// TRACHTENBERG LLC
Financials / /
03.2013 /// TRACHTENBERG LLC
Urban A
partment:
§I believe this is the m
ost viable version§
The sketches are very rough and don’t have an elevation; consider that a massing and general
image sim
ilar to those in the Mixed U
se and the Boutique Hotel could be used to visualize the scale and
general appearance.§
There is an optional 7th Floor show
ing 4 additional units, a Fitness Center and roof terrace show
n.Note that these units are beyond the parking and w
ould require the building type to become light gauge
(noncombustible). At 6 stories / 40 units (as show
n) it could be wood fram
ed.§
An optional additional level of parking is shown, though w
e found digging further would be very
costly, there is some rock below
the site.
Mixed U
se Building
§The m
aterials and massing could be used for the apartm
ent complex. This schem
e went to
construction drawings and w
as generally approved by the City Planning agencies.
Boutique H
otel§
This would be an interesting use and w
ould require a good operator. Some parking w
ould beavailable next door on the H
ousing Authority Site, with approval, but no long term
deal. There is a parkingstructure a block aw
ay.§
The massing, perspective im
age is similar to the apartm
ent concept and could be used to visualizethe general apartm
ent massing.
F. THOMAS M
URPH
Y, A
IA NCARB
partner | principal architect
OLIVE architecture
OLIVE design + build
436 n. harrington st. suite 140raleigh, nc 27603O 919.838.9934 (x203)
F 919.838.9995M 919.819.3296
www.olivedb.com
FIRST LEVELPARKING
0' - 0"
SECOND LEVELOFFICE
10' - 0"
BASEMENT LEVELPARKING
-10' - 0"
THIRD LEVELOFFICE
22' - 4"
FOURTH LEVEL -APARTMENTS
34' - 8"
FIFTH LEVEL-APARTMENTS
46' - 0"
SIXTH LEVEL -APARTMENTS
57' - 4"
SEVENTH LEVEL -ROOF68' - 8"
E BF C
10' -
0"
8' -
0"10
' - 0
"10
' - 4
"
11' -
4"
9' -
0"
8' -
0"
(316.5)
(306.5)
GREEN WALL; BYG-SKY OR EQUIVALENT
AWNING ABOVE MAIN ENTRANCE@ 11'-0" HT.
OPTIONAL:GREEN WALL TO EXTEND OVERWALL FACE; WALL TO BE POUREDCONC. W/ DETAIL TO BE DETERMINED
ADGH
1
1
1
(314.5)DOOR AT ENTRY
FIRE ACCESSTO FIRE PUMPFDC
3 STREETPLANTER
DECORATIVE SECURITYROLL-UP SCREEN - ON SITE PARKING BEYOND
FIRST LEVELPARKING
0' - 0"
SECOND LEVELOFFICE
10' - 0"
THIRD LEVELOFFICE
22' - 4"
FOURTH LEVEL -APARTMENTS
34' - 8"
FIFTH LEVEL-APARTMENTS
46' - 0"
SIXTH LEVEL -APARTMENTS
57' - 4"
SEVENTH LEVEL -ROOF68' - 8"
EB FCA D G H
ww
w.c
entre
poin
tpa.
com
9001
gle
nwoo
d av
enue
rale
igh,
nc
2761
7
919.
838.
9977
919.
838.
9995
(fax)
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Revision Date Description1 10.20.08 City Comments2 11.04.08 DRC Review3 12.04.08 City Comments
Revision Date Description1 10.20.08 City Comments2 11.04.08 DRC Review3 12.04.08 City Comments
1" = 10'-0"1 EAST 1" = 10'-0"2 WEST
2
All construction shall be in accordance with all City of Raleigh Standards and Specifications.
3
FIRST LEVELPARKING
0' - 0"
SECOND LEVELOFFICE
10' - 0"
BASEMENT LEVELPARKING
-10' - 0"
THIRD LEVELOFFICE
22' - 4"
FOURTH LEVEL -APARTMENTS
34' - 8"
FIFTH LEVEL-APARTMENTS
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SEVENTH LEVEL -ROOF68' - 8"
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79' -
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SITE
ATTENTION ACTION ADVENTUREACCOMPLISHMENT ATTENTION ACTION
9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995
www.centrepointpa.com
Raleigh, North Carolina
B O U T IQ U E H O T EL6 1 5 N . Bo y lan
April 24, 2009
S D - 1Site Plan
73 4 5 6 8 9 10 11 12 13 14
18 19
15 16 17
2120
1 2
22 23 24
Parking
Car Lift
LegendCirculationParking
Parallel Parking
ATTENTION ACTION ADVENTUREACCOMPLISHMENT ATTENTION ACTION
9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995
www.centrepointpa.com
Raleigh, North Carolina
B O U T IQ U E H O T EL6 1 5 N . Bo y lan
April 24, 2009
S D - 2Parking Lower Level
25 26 27 28 29 30 31 32 33 34 35 36 37
38 3940 41 B.O.H
Parkingup
Car Lift
LegendCirculationMaintenance/B.O.H.Parking
Parallel Parking
ATTENTION ACTION ADVENTUREACCOMPLISHMENT ATTENTION ACTION
9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995
www.centrepointpa.com
Raleigh, North Carolina
B O U T IQ U E H O T EL6 1 5 N . Bo y lan
April 24, 2009
S D - 3Parking Entrance Level
4945 46 47 48 50 51 52 53
56 57
Lobby
55
5442 43 44
58
Manager
Work Room
Registration
Sales
Parking
Exit Corridor
M
W
Car Lift
LegendAdministrativeCirculationParkingPublic AreasSupport
Parallel Parking
ATTENTION ACTION ADVENTUREACCOMPLISHMENT ATTENTION ACTION
9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995
www.centrepointpa.com
Raleigh, North Carolina
B O U T IQ U E H O T EL6 1 5 N . Bo y lan
April 24, 2009
S D - 4Lobby Level
Q
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LegendCirculationGuest RoomsMaintenance/B.O.H. ATTENTION ACTION ADVENTURE
ACCOMPLISHMENT ATTENTION ACTION
9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995
www.centrepointpa.com
Raleigh, North Carolina
B O U T IQ U E H O T EL6 1 5 N . Bo y lan
April 24, 2009
S D - 5Typical Guestroom Level
Q
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Exercise
Storage
Women Men
PantryBar
Lounge
Outdoor Terrace
LegendCirculationGuest RoomsMaintenance/B.O.H.Support ATTENTION ACTION ADVENTURE
ACCOMPLISHMENT ATTENTION ACTION
9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995
www.centrepointpa.com
Raleigh, North Carolina
B O U T IQ U E H O T EL6 1 5 N . Bo y lan
April 24, 2009
S D - 6Guestroom/Lounge Level
Parking Entrance Level0"
Lobby Level9'-8"
Level 319'-4"
Level 428'-10"
Level 538'-4"
Level 647'-10"
Level 757'-4"
Level 866'-10"
T.O. Roof76'-4"
Parking Lower Level-8'-8"
Parking
Parking
Parking
Guestrooms
Guestrooms
Guestrooms
Guestrooms
Guestrooms
Guestrooms/Lounge
9'-6
"9'
-6"
9'-6
"9'
-6"
9'-6
"9'
-6"
9'-8
"9'
-8"
8'-8
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ATTENTION ACTION ADVENTUREACCOMPLISHMENT ATTENTION ACTION
9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995
www.centrepointpa.com
Raleigh, North Carolina
B O U T IQ U E H O T EL6 1 5 N . Bo y lan
April 24, 2009
S D - 7Schematic Section & Project Data
PROJECT DATA
Floor Use Guestrooms Parking Spaces Hotel Area (sf) Parking Area (sf)8 Hotel 9 - 7,6507 Hotel 17 - 7,6506 Hotel 17 - 7,6505 Hotel 17 - 7,6504 Hotel 17 - 7,6503 Hotel 17 - 7,650Lobby Level Lobby/Parking - 18 2,650 6,375Parking Entrance Level Parking/B.O.H. - 18 9,710Parking Lower Level Parking - 25 9,710TOTAL 94 61 48,550 25,795
ATTENTION ACTION ADVENTUREACCOMPLISHMENT ATTENTION ACTION
9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995
www.centrepointpa.com
Raleigh, North Carolina
B O U T IQ U E H O T EL6 1 5 N . Bo y lan
April 24, 2009
S D - 8View from SE
ATTENTION ACTION ADVENTUREACCOMPLISHMENT ATTENTION ACTION
9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995
www.centrepointpa.com
Raleigh, North Carolina
B O U T IQ U E H O T EL6 1 5 N . Bo y lan
April 24, 2009
S D - 9View from NE
615 N. B
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Parcel Num
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URBAN APARTMENTS 615 North Boylan AvenueRaleigh, NC
11/19/2010
PRELIMINARY PROFORMAPROJECT INFORMATION Project is based upon a development consisting of:40 Apartments with lobby and fitness center and 40 parking spaces
Const.
Floor Units
Unit AreaCommon Area
Bed / BathParking Space
Total Area (sf)Floor Total (sf)
Const. PSFCost
61
945
2 B/2 B945
8,42578.00
657,150.001
6901 B/1 B
6901
7301 B/1 B
7301
10302 B/2 B
1,0301
10802 B/2 B
1,0801
8502 B/1 B
8501
8302 B/1 B
8301
11802 B/2 B
1,180
1,090
1,0905
1945
2 B/2 B
9458,425
78.00657,150.00
1690
1 B/1 B690
1730
1 B/1 B730
11030
2 B/2 B1,030
11080
2 B/2 B1,080
1850
2 B/1 B850
1830
2 B/1 B830
11180
2 B/2 B1,180
1,0901,090
41
945
2 B/2 B945
8,42578.00
657,150.001
6901 B/1 B
6901
7301 B/1 B
7301
10302 B/2 B
1,0301
10802 B/2 B
1,0801
8502 B/1 B
8501
8302 B/1 B
8301
11802 B/2 B
1,180
1,090
1,0903
1945
2 B/2 B
9458,425
78.00657,150.00
1690
1 B/1 B690
1730
1 B/1 B730
11030
2 B/2 B1,030
11080
2 B/2 B1,080
1850
2 B/1 B850
1830
2 B/1 B830
11180
2 B/2 B1,180
1,0901,090
21
945
2 B/2 B945
8,42578.00
657,150.001
7701 B/1 B
7701
7572 B/1 B
7571
10802 B/2 B
1,0801
7251 B/1 B
7251
7251 B/1 B
7251
7001 B/1 B
7001
7151 B/1 B
715Fitness Ctr
900900
1,1081,108
Lobby Level 1,023
1,023
1,02385.00
86,955.0021
210,000.00Parking Level
904
904904
65.0058,760.00
19
190,000.00
4035,757
8,29540
44,05244,052
3,831,465.00
URBAN APARTMENTS 615 North Boylan AvenueRaleigh, NC
11/19/2010
PRELIMINARY PROFORMA:
LAND COSTS: Land Purchase and Closing costs
725,000.00
Site Cost / Demolitionestimate
100,000.00Land Carry ($2,000/ mo + taxes)
25,000.00850,000.00
HARD COSTS:estimate
3,831,465.00Total Construction Cost
3,831,465.00
SOFT COSTS:Architect & Engineer
(incl civil & entitlements)5.00%
191,573.25
Consultants(special inspections, waterproofing inspections, reimbursables)
90,000.00Permits & Fees
112,000.00
Legal (Development)(includes appraisal and market study)
19,500.00Legal (Closing)
10,000.00Real Estate Taxes
5,000.00Insurance
15,000.00Development Fee
200,000.00Marketing
80,000.00Soft Subtotal
723,073.25FINANCING COSTS:Points and Fees
0.00FHA Related Fees
70,000.00
Construction Subtotal81,009.00
Interest during sale28,101.00
Real Estate Taxes5,000.00
Financing subtotal184,110.00
CONTINGENCY:3.00%
(of Hard Costs + Soft Costs)136,636.15
BOND:2.00%
(of Hard Costs and Site Costs)78,629.30
TOTAL DEVELOPMENT COSTS:5,803,913.70
RETURN ON PROJECT / DEVELOPMENT PROFITABILITY:
Original Investment(based on 83.7%
LTV)Land Cost
16.3% of Land Cost
134,475.00Construction Cost
16.3% of Construction
624,528.80Site Development
16.3% of Site Development
187,034.14Total:
946,037.93
Additional Development based upon equity:Total Project Cost
0.005,803,913.70
Less Project Investment
946,037.93Mortgage Amount
4,857,875.76
APARTMENT INCOMERental Income at $1.50 / sf per month average (assume 5%
vacancy)50,953.73
per month
Trash/Water at $20/unit per month (assumes 5%
vacancy)760.00
per month OPERATING COSTSOverhead
D&F Fee: (Leasing agent, Maintenance, Marketing, Admin) 6,667.00
Other: (Taxes, utilities, out-of pocket maint. costs, misc.)6,000.00
Mortgage / Loan Carry 4.7%
@ 40 years 83.7%
LTV22,455.61
Total Profit- monthly
$16,591.12199,093.38
annually
Return on Investm
ent 21.0%
Triangle House ///
A New Way to Stay // Concept Design Book
03.2013 /// TRACHTENBERG LLC
The Concept /// Past + Present + Future
The Triangle House Resort & Spa is a luxury, full service “inner-suburban” resort and conference center, with an emphasis on world-class facilities and service made comfortable with some south-ern hospitality. The project is an architectural, technological, and ecological showpiece for the “New North Carolina” which is building its reputation from the RDU/Triangle area, based of world-class universities, research and industry, mild seasonal weather, and a quality of life paralleled by very few places in the country.
The Triangle House Resort & Spa will have a focus on hosting small to medium sized university and corporate meetings and conferences. We will capitalize on the triangle’s geography and ex-istent conference business and area attractions by providing the areas only world-class banquet and meeting spaces with conference focused facilities and guest-facing technologies. The Tri-angle House will continue the areas rich traditions of producing and showcasing world-class and local talent in the event lounge space.
The hotel will tell this rich history through art, and help create new chapters with Artist-in- residen-cy programs and providing a venue for the creation and expression for the wealth of talent in our area.
The areas legendary universities and athletic programs will be steady drivers of business, includ-ing conferences, graduations, game-days, and other events. Banquet facilities, performance lounge, spa, retail and bar will also bring steady visibility, traffic, and revenue. The hotel will of-fer memberships to the private social club, which provides access to the wine bar and rooftop lounge, fitness facilities, preferential considerations for restaurant reservations, event tickets, facili-ties access, and discounts on hotel rooms.
Designed by world-class architects and expertly appointed, Triangle House blends world-class hospitality with a collection of exquisite condominium residences located in the heart of the RTP area. Residents will enjoy access to Triangle House’s superlative services and offerings in addi-tion to an array of enviable building amenities. The Residences at Triangle House represents the ultimate in
03.2013 /// TRACHTENBERG LLC
The Concept /// Past + Present + Future
The property will be a hospitable and conducive environment for gathering, celebrating, work-ing, creating, and relaxation, with a staff that exudes sincere hospitality and professionalism, without the stuffiness.
The property will carry a mystique and demand reminiscent of what the Morgan Hotels had when they first opened. Where people wanted to stay there because it was the place to be in that area, where you experienced the newest trends, and you never know who would also be-ing staying there. With a spa, pool, fantastic restaurants, rooftop and lobby bars, and the hot-test club and live music venue in the area, a guest has no reason to leave the property. We will create this experience, and enable the guests to take some of the it with them, with our “Take it with You” program, which allows the guests to purchase anything they experienced at the hotel (bed, sheets, furniture, TV, food, art, etc).
Additional property amenities will include a library to access and showcase research and the pursuit of knowledge. A place for people to study, work, and research, utilizing mobile kiosks linked to university libraries, with printing, creation, and business center facilities available.
03.2013 /// TRACHTENBERG LLC
Team //
03.2013 /// TRACHTENBERG LLC
Scott Bednaz is a commercial broker and developer with 19 years experience in North and South Carolina. As President of TerraCorp Commercial properties and Tallus Development group Mr. Bednaz has negotiated the purchase, sale, or lease of 1 million square feet of commercial space, 3,500 acres of land resulting in $100 million in completed transactions. In 2005 he branched out from representation to develop his own projects including Advanced Auto, Hooters Burlington, The Estates at Barton’s Creek, and the Straw Valley Project. His projects have been recognized by multiple news and architectural outlets and received awards from the NC and Durham Preservation Societies.
Isaac Brown has been Director of Emerging Markets for Choice HotelsInternational for the past 9 years and has worked with Marriott developing over 60 properties. Prior to his cur-rent position, he was Architectural Designer, where he was responsible for prototype design for all Choice brands, and design reviews which
Mr. Brown will be
these brands. In addition he has been responsible for almost a half a billion dollars worth of revenue during his tenure working in development at Choice International.leaving Choice durring 2013 in his full-time capacity, and is currently in the early stages of developing four other properties where he is majority principal in the project. Mr. Brownhas a masters degree in architecture from Louisiana State Universityand a MBA from New York University. Mr. Brown is a New York City native and will lead the development team for the project.
Cedric H Watkins is a technologist and founder of a technology compa-ny providing solutions for the hospi-tality industry, Adjacent Innovations. Mr. Watkins is a seasoned business development and marketing execu-tive who has founded marketing and technology companies and has done development projects in Raleigh and Newark, New Jersey.
After attending UNC-Chapel Hill where he studied Management andSociology, Mr. Watkins has lived in Manhattan and Miami for the last12 years where he has developed a
real estate, hospitality, design, tech-nology, and entertainment. Mr.Watkins will be project coordinator, lead business development, andserve as technology and guest expe-rience architect.
Jordan Trachtenberg Assoc. AIA, LEED AP has practiced architecture
-nents ranging from Asia to South America. During 2009-2012 in Am-sterdam, NL, while practicing under Ben van Berkel at UNStudio, Jordan led the design and execution as Coordinating Architect /Project Man-ager on several successful projects such as the Singapore University
-ish completion in 2014. In addition, Jordan led the design on successful competitions, small built projects, in-terior, and industrial design solutions, such as the Library + Center for New
-ship store in Rome, Italy and the 29th Annual Art Biennale’s Youturn Pavil-ion in Sao Paulo, Brazil.
Jordan received the degree Master of Architecture, with Honors in De-sign, from Columbia University, NY, and holds a Bachelor of Design in Architecture, with Honors, from Flori-da International University, Miami.
Michael Sims, Jr. is an architectural design professional now living and working in Europe. He has over 10 years professional experience in
-combe), Coop-Himmelblau (Wolf-gang Prix), Frank Gehry Associates, SOM (NY), UN Studio (Ben van Berkel), and co-taught workshops with Lebbeus Woods.
As a proponent of BIM and paramet-ric design processes, Mr. Sims has
projects including Manhattan’s tallest residential tower, Frank Gehry’s new 8 Spruce Street tower, the King of Morocco’s current theatre project, and the UN Studio in Amsterdam. He earned his Masters of Architec-ture from SCI-ARC, and a Bachelor of Architecture from the University of North Carolina at Charlotte. Mr. Sims has taught digital design at AIU (American Intercontinental Univer-sity) in Los Angeles, and was an SOM instructor in an applied studies research collaboration with SCI-Arc, investigating concepts related to responsive kinetic façades. He is now with Zaha Hadid Architects in London.
Team ///
03.2013 /// TRACHTENBERG LLC
Team /// Jordan Trachtenberg // Architecture Projects Sample Work
www.jordantrachtenberg.com
Pavilion / Sao Paulo, Brazil University / NYC, New YorkUniversity / NYC, New York
Hotel / Philidelphia, PALibrary / Ghent, Belgium
Library / Ghent, Belgium
University / Singapore
University / Singapore Performing Art Center / S. Korea Performing Art Center / S. Korea
Office Park / South Korea
Pavilion / Sao Paulo, Brazil
03.2013 /// TRACHTENBERG LLC
Team /// Michael Sims /// Architecture Projects
Residential Tower / NYC, NY
Residential Tower / NYC, NY
Mixed Use / China Tower / Abu Dhabi
Tower / Abu Dhabi Symphony Center / Miami, Florida
Theater / Morocco
Symphony Center
Symphony Center
Commercial Tower / NYC, NY
Commercial Tower / NYC, NY
Sample Work
03.2013 /// TRACHTENBERG LLC
Design Model //
03.2013 /// TRACHTENBERG LLC
Organization /// Event as an Integrated Concept
EventSpace
Auditorium
Restaurant
Pool + Deck
EventSpace
Bed
Bath
EventSpace
Eventspace
Bath
Bath
Bed
Bed
Lounge
Back oces
Stage
Logistics
Kitchen
Lounge +Bar
Parking
Lounge
Lounge
Relations
public primary
secondary
tertiary
semi-public
not publicDouble Quarters
Loft Quarters
Single Quarters
21
EventSpace
Auditorium
Restaurant
Pool + Deck
EventSpace
Bed
Bath
EventSpace
Eventspace
Bath
Bath
Bed
Bed
Lounge
Back oces
Stage
Logistics
Kitchen
Lounge +Bar
Parking
Lounge
Lounge
Relations
public primary
secondary
tertiary
semi-public
not publicDouble Quarters
Loft Quarters
Single Quarters
21
The Event Space becomes the central nucleus to the program. All spaces are in-terwoven and interdependent. The circula-tion around the event spaces are a direct connection between the different clusters. The secondary route, within each cluster, leads each visitor through the experience.
The functional diagram shows the various user levels magnified to best visualize and represent each relationship. It fulfills the event space as a crucial link, as well as an element that binds together the differ-ent spaces of the hotel.The relationship between the Event Spac-es and the surrounding clusters creates various degrees of public / dynamic (cen-tral event space, Lounges, Restaurants) to private / introvert (quiet lounges, quar-ters.)
The shared Lounge/event spaces in turn form the internal link between the clusters of Quarters, and provide a smooth transi-tion through the main event spaces. This seamless interweaving of function and circulation also creates various spatial experiences of open spaces, to intimate enclosed areas, and excites the visitors to discover and participate in the new way to stay.
03.2013 /// TRACHTENBERG LLC
Design Strategies ///
Vertical Landscape - Minimum Site Coverage - Iconic
Urban Social Landscape - Max Site Coverage
Vertical to LateralOur design philosophy is flexible in its concept. Depending on each site in context we adapt the design model to both vertical and horizontal typologies. This promotes a true understanding of our site, its surroundings, and how to best integrate the design model.
03.2013 /// TRACHTENBERG LLC
Organization /// Design Model //
INPUT | Basic Program 100 units50 Single30 Doubble10 Suites6 Condos 2500 SQ feet of Event Space
01 Program 02 Placement 03 Design model04 Site Specific adapta-tion
SIte Placement and Typical Organization- Maintains program requirements - Approach does not promote program intergration
Adaptable Model | Pulling of floor plates- Pulling out frees up internal space for events- Creates a central organizational atrium - Maintains program requirements while promoting program integration- Landscape connectivity from inside out
Site Specific | Straw valleyApplying to the Site and making small adjustments adapts the Design model to its most ideal site to shape relationship.
03.2013 /// TRACHTENBERG LLC
Organization /// Site Model //
UNC/Duke/DPAC - 6mi.Research Triangle Park - 11 miRDU Airport - 16 mi.Raleigh/NC State/PNC Center - 20 mi.
Northwest View
North West
Exisitng Straw valley Cafe Proposed Triangle House Resort and Spa
03.2013 /// TRACHTENBERG LLC
Urban Context // Site Diagram
Straw Valley Site
40FWY
Marriott Suites
Hilton Homewood Suites
15 501
University ofNorth Carolina
Duke University Downtown DurhamDurham Performing Art Center
Research Triangle ParkRDU Airport
03.2013 /// TRACHTENBERG LLC
Principles /// Sketch // Atrium Space Ground Level
03.2013 /// TRACHTENBERG LLC
Principles /// Sketch // Atrium Space Pool Level
03.2013 /// TRACHTENBERG LLC
Principles /// Sketch // Landscape Connectivity
03.2013 /// TRACHTENBERG LLC
Principles /// Sketch // Site and view
03.2013 /// TRACHTENBERG LLC
Program Typologies /// Example aesthetics
Quarters //
Event Spaces //
Common Spaces//
03.2013 /// TRACHTENBERG LLC
Referenced ///
03.2013 /// TRACHTENBERG LLC
Details /// Technology + Space + FunctionalityEach square foot is thought about in detail. How to maximize interactivity, comfort and usability
03.2013 /// TRACHTENBERG LLC
Details /// Finishes, Materials, Texture, LightingCrisp and simple details will allow the design to maintain a cost effective background and elegant foreground. // Crisp, sharp, elegant, defining,
03.2013 /// TRACHTENBERG LLC
Financials //
03.2013 /// TRACHTENBERG LLC
Financials/// Total Project Cost $9.5MM for 80 hotel keys + $ 6MM to build 20 condos + $4MM for land
Number of Keys - 80 built at $180/sq. ft. = $9.5MM Cost per Key - $119KComp Value for completed project $300K per key = $24MM ($500k = $40MM)Land (amortized purchase 4-5 yrs.) $4MMConstruction cost $15.5MM Total (land +const.) = $20MM10 condo units with 1350 sq. ft. to be sold at $203/sq. ft. = per unit $2757K 10 condo units with 2000 sq. ft. to be sold at $200/sq. ft = per unit $400K Condo Sales - 20 units = $6.75MM80 Hotel Rooms with an average room size of 600 sq. ft. 48000 Sq. ft of hotel space built for $ 180 sq. ft = $8.64MM33500 sq. ft of condo space built for $180 sq. ft = $6MM5000 sq. ft of event and gathering space built for $130 sq. ft = $650K
Median Home price in RTP is $343KPrice per sq. ft Durham - $92 Chapel Hill - $220 Cary - $118
Revenue StreamsHotel: 80 rooms with a 60% occupancy rate has 17520 paid room nights with a ADR of $250 gen-erates $4.3M/yr in revenues which is $358K/mo Banquet - $1MM/yr. Bars/Rest./Clubs - $1.5MM
Hotel will be worth $30MM with a $15MM mortgage which is a 50% LTVCondo owners can put their units into the hotel rental program when vacant and earn ROI, which makes attractive to parents of students at local universities and foreign investors.
Located on five acres and one of the busiest intersections in thestate, 15-501 (100K VPD) and I-40 (20K VPD)Convenient to and offering shuttle service to major area destinations
UNC/Duke/DPAC - 6mi.Research Triangle Park - 11 miRDU Airport - 16 mi.Raleigh/NC State/PNC Center - 20 mi.
- University community provides for constant stream of business ofconferences, events, banquest, and area visitation- Luxury market historicly has higher occupancy rates than statewide ADR of 61%- World-class amenities, including spa, restaurant, rooftop lounge,pool, and private social club coupled with event, banquet, retail, and performance space will be incomparable to all other properties in the area, making it adistinctive destination attraction
03.2013 /// TRACHTENBERG LLC
Investin
g in
secon
dary
mark
ets is lucra
tive
19
Feb
rua
ry 2
01
3
By
Aik
Ho
ng
Ta
n
Ho
telNew
sNo
w.co
m co
lum
nist
S
tory
Hig
hlig
hts
W
ith in
terest rates remain
ing at h
istoric lo
w lev
els, cash-o
n-cash
yield
inv
esting in
secon
dary
mark
ets can b
e lucrativ
e with
the ap
pro
priate lev
el of lev
erage.
T
he k
ey to
successfu
l inv
estmen
ts in seco
nd
ary m
arkets is th
e existen
ce of d
iverse an
d
sustain
able d
eman
d g
enerato
rs.
T
he n
um
ber o
f dem
and
driv
ers in seco
nd
ary m
arkets is m
ore targ
eted th
an in
majo
r
mark
ets.
As th
e ind
ustry
recov
ery co
ntin
ues to
gain
mo
men
tum
, op
po
rtun
ities for in
vesto
rs abo
un
d.
Wh
ether it’s a fu
ll-service p
roperty
in N
ew Y
ork
, San
Fran
cisco o
r Miam
i, a select service h
otel
in P
ittsbu
rgh
or R
aleigh
, No
rth C
arolin
a, or a lim
ited-serv
ice asset in F
risco, T
exas, o
r Pu
eblo
,
Co
lorad
o, th
ere is no
sho
rtage o
f capital w
aiting to
get o
ff the sid
elines an
d b
ack in
the g
ame.
With
real estate inv
estmen
t trusts, so
vereig
n fu
nd
s and
institu
tion
al capital ch
asing d
eals in th
e
majo
r mark
ets, yield
s are bein
g d
riven
do
wn
to th
e range o
f 3%
to 5
%. T
he situ
ation
is qu
ite
differen
t in th
e secon
dary
mark
ets, wh
ere capitalizatio
n rates are ran
gin
g fro
m 8
.5%
up
to as
hig
h as 1
2%
. As a resu
lt, with
interest rates rem
ainin
g at h
istoric lo
w lev
els, cash-o
n-cash
yield
inv
esting in
secon
dary
mark
ets can b
e
lucrativ
e with
the ap
pro
priate lev
el of
leverag
e.
With
that said
, to b
e successfu
l, an in
vesto
r mu
st pay
special atten
tion
to sp
ecific issues th
at are
un
iqu
e to an
y seco
nd
ary-m
arket d
eal.
Dem
an
d
First an
d fo
remo
st, as with
deals o
f any k
ind
, careful stu
dy an
d u
nd
erstand
ing o
f dem
and
gen
erators in
the m
arket are cru
cial. Th
e nu
mb
er and
natu
re of d
eman
d d
rivers in
secon
dary
mark
ets tend
s to b
e fewer an
d m
ore targ
eted th
an in
majo
r mark
ets such
as New
Yo
rk o
r Lo
s
An
geles.
It is imp
ortan
t to u
nd
erstand
the d
yn
amics th
at draw
travelers to
the area. S
om
etimes it can
be a
single lan
dm
ark su
ch as a co
llege o
r military
base. In
these cases, it is essen
tial to realize th
at
even
on
e single ev
ent, lik
e the clo
sure o
f the m
ilitary b
ase, can h
ave a m
ajor im
pact o
n d
eman
d.
In o
ther cases, facto
rs such
as the co
nstru
ction
or m
ajor refu
rbish
men
t of a facto
ry m
igh
t brin
g
new
, sho
rt-term d
eman
d to
the m
arket, cau
sing o
ccup
ancy an
d av
erage d
aily rate to
increase b
ut
on
ly tem
po
rarily.
Th
e key
to su
ccessful in
vestm
ents in
secon
da
ry m
ark
ets is the ex
istence
of d
iverse a
nd
susta
ina
ble d
ema
nd
gen
erato
rs. Ex
am
ples m
igh
t inclu
de a
stron
g co
rpo
rate b
ase, a
ma
jor
un
iversity
or p
op
ula
r attra
ction
s tha
t dra
w leisu
re trav
elers on
a co
nsisten
t ba
sis.
On
e exam
ple o
f such
a mark
et is Bu
rlingto
n, V
ermo
nt. G
E, IB
M an
d B
en &
Jerry’s ice cream
hav
e a majo
r corp
orate p
resence th
ere. Th
e Un
iversity
of V
ermo
nt an
d L
ake C
ham
plain
also
attract week
end
travelers fro
m N
ew E
nglan
d as w
ell as Can
ada. W
ith th
e excep
tion
of a slig
ht
declin
e du
ring th
e dep
th o
f the recessio
n in
20
09
, the rev
enu
e per av
ailable ro
om
in th
e
Bu
rlingto
n m
arket h
as increased
con
sistently
by 4
% to
5%
ann
ually
from
20
07
to 2
01
2.
Su
pp
ly
Ev
en th
ou
gh
barriers to
entry
in seco
nd
ary m
arkets are n
ot as h
igh
as in m
ajo
r mark
ets, careful
con
sideratio
n n
eeds to
be g
iven
to k
ey v
ariables. A
t the to
p o
f that list is lo
cation
as it pertain
s to
po
tential n
ew su
pp
ly. F
or ex
amp
le, it is better to
be in
the d
ow
nto
wn
or co
re center o
f a
secon
dary
mark
et rather th
an at a h
igh
way lo
cation
in th
e ou
ter ring. W
hy? It is h
arder to
bu
ild in
the u
rban
center d
ue to
infill an
d p
ermittin
g co
nstrain
ts, and b
ecause su
pp
ly is lim
ited in
tho
se
areas, it po
ses a distin
ct adv
antag
e if a ho
tel can b
e acqu
ired in
the u
rban
center.
Bu
yin
g at sig
nifican
t valu
e belo
w rep
lacemen
t costs is also
a go
od
strategy as it p
rovid
es a
sign
ificant co
st adv
antag
e ov
er a new
-bu
ild h
otel. S
ecurin
g affiliatio
n w
ith to
p b
rand
s inclu
din
g
Marrio
tt Intern
ation
al and
Hilto
n W
orld
wid
e with
a reason
able area o
f pro
tection
un
der th
e
franch
ise agreem
ent also
wo
rks to
mitig
ate again
st new
sup
ply
enterin
g th
e mark
et.
Ex
it strateg
y
Ex
it strategies fo
r ho
tels in seco
nd
ary m
arkets m
ust b
e dev
elop
ed strateg
ically an
d ev
aluated
carefully
. On
e qu
estion
to ask
is wh
ether th
e curren
t bran
d w
ill be av
ailable to
the n
ext b
uyer.
Th
is dep
end
s, in larg
e part, o
n th
e age o
f the asset. A
select-service h
otel w
ith a m
ajor flag
mig
ht
sou
nd
like a g
reat op
po
rtun
ity. H
ow
ever, it m
igh
t no
t be su
ch a g
oo
d d
eal if the p
roperty
is 40
years o
ld an
d is u
nlik
ely to
retain th
at same flag
wh
en th
e ow
ner attem
pts to
sell it three o
r fou
r
years later. A
s a result, th
e valu
e of th
e ho
tel will b
e com
pro
mised
greatly
.
It is also im
po
rtant to
pro
ject ho
w an
d w
hy th
e valu
e of th
e asset will in
crease by th
e time th
e
ho
tel wo
uld
be so
ld. In
majo
r mark
ets, sup
ply
con
straints an
d scarcity
of lan
d d
rive a n
atural
app
reciation
of real estate p
rices ov
er time. T
his is n
ot th
e case in seco
nd
ary m
arkets, w
here real
estate valu
es are mo
re sub
ject to a ran
ge o
f variab
les.
Th
e mo
st critical factor is h
ow
cash flo
w o
f the h
otel w
ou
ld g
row
. To b
e successfu
l, a bu
yer in
a
secon
dary
mark
et mu
st clearly d
evelo
p an
d im
plem
ent a p
lan to
increase th
e cash flo
w o
f the
pro
perty
betw
een th
e time o
f acqu
isition
and
the tim
e of sale. S
om
e strategies to
accom
plish
this
cou
ld in
clud
e an u
pgrad
e of th
e bran
d as w
ell as mo
re focu
sed an
d so
ph
isticated m
anag
emen
t
than
the p
revio
us o
wn
er.
Co
nclu
sion
N
ew Y
ork
’s Tim
es Sq
uare an
d M
ain S
treet’s tow
n sq
uare each
offer o
pp
ortu
nities fo
r the h
otel
inv
estor. T
ho
se wh
o are m
ost su
ccessful are th
e on
es wh
o u
nd
erstand
the d
yn
amics an
d d
istinct
differen
ces betw
een th
e two
mark
et typ
es and w
ho
are able to
iden
tify an
d cap
italize on
the
factors th
at driv
e custo
mer d
eman
d, in
fluen
ce sup
ply
and
hav
e an effectiv
e exit strateg
y.
Dev
elop
men
t execs sh
are recip
es for su
ccess
1
2 F
ebru
ary
20
13
By
Sh
aw
n A
. Tu
rner
Fin
an
ce Ed
itor
Sh
aw
n@
Ho
telNew
sNow
.com
S
tory
Hig
hlig
hts
M
arkets su
ch as A
ustin
, Tex
as, and C
olu
mb
us, O
hio
, are catchin
g th
e eye o
f
dev
elop
men
t execu
tives.
“W
e’ll certainly
chase w
here th
ere is oil d
eman
d,” C
ho
ice’s Sh
ane P
latt said.
G
eneratio
n X
, Gen
eration
Y an
d m
illenn
ials are driv
ing th
e desig
n o
f ho
tels tod
ay,
pan
elists said.
HO
US
TO
N—
Bran
d ex
ecutiv
es detailed
their recip
es for d
evelo
pm
ent su
ccess Mo
nd
ay d
urin
g an
open
ing d
ay p
anel at th
e H
osp
itality L
aw C
on
ference.
Th
e pan
elists agreed
the to
p 2
0 U
.S. m
arkets are still en
vo
gu
e, bu
t they
also are in
creasingly
find
ing su
ccess in m
arkets su
ch as
Au
stin, T
exas; C
olu
mb
us, O
hio
; and
Pittsb
urg
h.
“So
me o
f these seco
nd
-tier mark
ets are ph
eno
men
al,” said C
hip
Ohlsso
n, V
P o
f dev
elop
men
t at Starw
oo
d H
otels &
Reso
rts W
orld
wid
e.
Sh
ane P
latt, VP
of fran
chise sales an
d d
evelo
pm
ent at C
ho
ice Ho
tels Intern
ation
al, said it’s a “n
o b
rainer” th
at man
y o
f the
com
pan
y’s b
rand
s, such
as Cam
bria S
uites, n
eed to
be in
the to
p U
.S. m
arkets. B
ut creativ
e dev
elop
men
t creeps in
to th
e pictu
re
wh
en co
nsid
ering so
me o
ther C
ho
ice bran
ds, su
ch as S
leep In
n.
Platt said
wh
en co
nsid
ering d
evelo
pm
ent o
f that b
rand
, the co
mp
any lo
oks fo
r small m
arkets th
at can su
pp
ort o
nly
on
e or tw
o
ho
tels.
“Mid
-mark
et rates did
n’t fall as far,” P
latt said. “T
here’s b
een b
ig in
terest in d
evelo
pm
ent o
f secon
dary
and
tertiary m
arkets w
ith
the rig
ht b
rand
s.” Th
ere is a lot o
f dev
elop
er interest in
the S
leep In
n b
rand
also b
ecause it is an
afford
able b
rand
to b
uild
, he
add
ed.
Dev
elop
ing
aro
un
d en
ergy
A
merica’s en
ergy in
du
stry b
oo
m in
mark
ets such
as No
rth D
ako
ta and
Tex
as has b
een a b
oon
to th
e ho
tel indu
stry, p
anelists said
.
Earlier in
the d
ay, S
teph
en B
arth, fo
un
der an
d p
residen
t of H
osp
italityL
awyer.co
m, talk
ed ab
ou
t a Mo
tel 6 p
rop
erty in
Od
essa, T
exas, th
at is gen
erating a $
31
0 av
erage d
aily rate th
anks to
the en
ergy in
du
stry.
“It’s crazy rig
ht n
ow
,” Oh
lsson
said d
urin
g th
e pan
el.
An
d th
e execu
tives said
they
’re loo
kin
g to
get th
eir share o
f the m
arket. T
ye T
urm
an, sen
ior V
P o
f hotel d
evelo
pm
ent at M
arriott
Intern
ation
al, said th
e com
pan
y is activ
ely seek
ing d
evelo
pm
ent o
pp
ortu
nities fo
r its Fairfield
bran
d in
oil-p
atch m
arkets.
“We’ll certain
ly ch
ase wh
ere there is o
il dem
and
,” Platt said
. “If they
keep
find
ing o
il, they
’ll keep
bu
ildin
g h
otels.”
Desig
n in
fluen
ce
Th
e pan
elists also d
iscussed
the em
ergin
g m
arket d
ictating th
e desig
n o
f these h
otels.
Wh
ile the b
aby-b
oo
mer g
eneratio
n is still o
n th
e road
, it is Gen
eration
X, G
eneratio
n Y
and m
illenn
ials wh
o are in
fluen
cing h
otel
desig
n, th
e pan
elists said.
“No
w w
e are desig
nin
g h
otels fo
r the so
cial med
ia netw
ork
ing g
rou
p,” O
hlsso
n said
. “Th
ey w
ant in
stant resu
lts.”
Recen
t up
dates to
the C
ou
rtyard
by M
arriott b
rand, fo
r instan
ce, were m
ade w
ith th
ese new
travelers in
min
d, T
urm
an said
.
“At th
e end
of th
e day
, bab
y b
oom
ers, they
’re still travelin
g. B
ut G
eneratio
n X
, Gen
eration
Y, th
ey’re th
e on
es we h
ave to
app
eal
to,” h
e said.
So
wh
en th
inkin
g ab
ou
t the red
esign
of th
e Cou
rtyard
by M
arriott p
rop
erties, Marrio
tt focu
sed o
n ro
un
ded
corn
ers instead
of
straigh
t lines, T
urm
an said
. Th
e com
pan
y also
cho
se mu
ted earth
ton
es for th
e gu
estroo
ms b
ecause th
ese gen
eration
s of trav
elers
ind
icated th
ey w
anted
to relax
first and
thin
k ab
ou
t wo
rk seco
nd
.
Th
e chan
ges w
ere rolled
ou
t in D
ecemb
er du
ring th
e com
pan
y’s an
nu
al Co
urty
ard b
y M
arriott b
rand
con
ference.
Co
mp
anies are also
loo
kin
g to
eke o
ut as m
uch
fun
ction
ality as p
ossib
le from
pu
blic sp
aces, the p
anelists said
.
“It’s abo
ut g
etting p
eop
le ou
t of th
eir roo
ms an
d creatin
g a co
mm
un
ity en
viro
nm
ent,” S
tarwo
od
Ho
tels’ Oh
lsson
said.
$2
0-m
illion
wish
list M
od
erator R
ich S
prech
er, VP
of b
usin
ess dev
elop
men
t at Aim
brid
ge H
osp
itality, ask
ed th
e pan
elists wh
at they
wo
uld
do
in th
e h
otel secto
r if han
ded
a $20
-millio
n ch
eck.
“I wo
uld
love to
say I’d
go
ou
t and
do
new
con
structio
n,” O
hlsso
n said
.
Instead
, Oh
lsson
said h
e’d lik
ely acq
uire an
office b
uild
ing an
d co
nvert it to
a desig
n-cen
tered b
rand
.
“Desig
n is th
e futu
re of o
ur in
du
stry,” h
e said.
Ch
oice’s P
latt said h
e’d d
evelo
p a v
ariety o
f ho
tels in v
ariou
s mark
ets and
mig
ht also
loo
k to
acqu
ire an o
ffice bu
ildin
g an
d g
ive
it “a fresh n
ew lo
ok” as a h
otel.
An
d fin
ally, T
urm
an said
his w
ishes fo
r the $
20
millio
n are n
ot as co
mp
lex. H
e wo
uld
dev
elop as m
any T
ow
neP
lace Su
ites by
Marrio
tt and
Fairfield
Inn
& S
uites p
rop
erties as po
ssible b
ecause d
evelo
pers h
ave sh
ow
n a h
igh
level o
f interest in
the b
rand
s.
“In o
ur in
du
stry, so
metim
es we th
ink to
o m
uch
,” he said
. “We th
ink it’s ro
cket scien
ce, and
it do
esn’t n
eed to
be.”
Move-in
s help
pu
sh d
ema
nd
in co
llege to
wn
s
1
4 S
eptem
ber 2
01
2
By
Sa
ma
nth
a W
org
ull
Ed
itoria
l Assista
nt
swo
rgu
ll@h
oteln
ewsn
ow
.com
S
tory
Hig
hlig
hts
T
he C
arolin
a Inn
, a histo
ric ho
tel located
directly
on
UN
C’s cam
pu
s, sells ou
t every
mo
ve-in
week
end
.
O
ccup
ancy in
creased b
y at least 1
0%
in select U
.S. co
llege to
wn
s in co
mp
arison
to Ju
ly
year-to
-date n
um
bers.
F
argo
, No
rth D
ako
ta, had
the h
igh
est occu
pan
cy rates d
urin
g m
ov
e-in
week
end
.
RE
PO
RT
FR
OM
TH
E U
.S.—
While th
e fall travel seaso
n m
eans a b
oo
n fo
r man
y u
rban
ho
tels, pro
perties in
mo
re
isolated
colleg
e tow
ns trad
itionally
also
repo
rt a dem
and
up
tick as stu
den
ts—and
their p
arents—
return
to ca
mp
us.
In A
nn A
rbo
r, Mich
igan, th
e Univ
ersity o
f Mic
hig
an is a stead
y d
em
and
driv
er, accord
ing to
Joe S
efcovic, G
M at
the H
olid
ay In
n n
ear the U
niv
ersity o
f Mich
igan.
“We h
ave 9
,70
0 k
ids m
ove in
to th
e do
rms at th
e univ
ersity, an
d a to
tal of 5
0,0
00
go
to th
e univ
ersity, so
we see all
tho
se peo
ple m
ovin
g in
to to
wn,” h
e said “It d
efinitely
accelerates occu
pan
cy.”
Occu
pan
cy at h
is 22
5-ro
om
pro
perty
—th
e largest h
otel in
Ann A
rbo
r—w
as 90
% d
urin
g th
e univ
ersity’s m
ove-in
wee
ken
d d
urin
g 3
1 A
ug
ust.
Durin
g th
e first seven
mo
nth
s of th
e year, h
otels in
the m
arket rep
orted
an av
erage o
ccup
ancy o
f 69
.3%
, averag
e
daily
rate of $
88
.70, an
d rev
enue p
er availab
le roo
m o
f $6
1.4
3, acco
rdin
g to
ST
R, p
arent co
mp
an
y o
f
Ho
telNew
sNo
w.co
m.
Perfo
rmance d
urin
g F
riday a
nd
Satu
rday n
ight o
f mo
ve-in
week
end
were m
uch stro
nger: O
ccup
ancy w
as 90
.1%
and
88
.9%
; AD
R w
as $
94
.01
and
$9
2.0
8; an
d R
evP
AR
was $
84
.72
and
$81
.90
, respectiv
ely.
Ho
teliers in C
hap
el Hill, N
orth
Caro
lina—
ho
me to
The U
niv
ersity o
f No
rth C
arolin
a at Chap
el Hill—
saw
a similar
bu
mp
in p
erform
ance, acco
rdin
g to
ST
R d
ata. Ho
teliers reported
averag
e occu
pan
cy o
f 90
.4%
and
80
.7%
; AD
R o
f
$1
19
.49
and
11
8.7
5; an
d R
evP
AR
of $
10
8.0
3 an
d $
95
.88
on 1
7 an
d 1
8 A
ugu
st, respectiv
ely.
July
year-to
-date n
um
bers sh
ow
ed o
ccup
ancy o
f 70
.2%
, AD
R o
f $1
10
.58 an
d R
evP
AR
of $
77
.58
.
Th
e Ca
rolin
a In
n, a
histo
ric ho
tel loca
ted d
irectly o
n U
NC
’s cam
pu
s, sees d
em
an
d in
crea
se du
ring
ever
y
ma
jor w
eek
end
thro
ug
ho
ut th
e scho
ol y
ea
r, inclu
din
g m
ov
e-in
, ma
jor sp
ortin
g ev
ents a
nd
un
iver
sity-re
lated
mee
ting
s, said
GM
Ja
ck S
chm
idt.
“W
e sell ou
t ever
y m
ov
e-in
wee
ken
d a
nd
du
ring
seven
ho
me fo
otb
all g
am
es
thro
ug
ho
ut th
e scho
ol y
ear,”
he sa
id. “
It's a g
oo
d p
lace
to b
e beca
use n
ob
od
y is fu
lly in
sula
ted fro
m
do
wn
turn
s in th
e eco
no
my
, an
d u
niv
ersitie
s driv
e a lo
t of b
usin
ess.”
Man
ish A
tma, o
wner o
f Atm
a Ho
tel Gro
up
, wh
ich m
anag
es a H
olid
ay In
n E
xp
ress, a Ham
pto
n In
n &
Suites a
nd
a
Ham
pto
n In
n in
Chap
el Hill, said
mo
ve-in
wee
kend
is like an
y o
ther.
“We d
o see a sp
ike in
occu
pan
cy in
Au
gu
st wh
en tra
vel is a little b
it slow
, but it’s stag
gere
d,” h
e said. “It’s a n
orm
al
wee
ken
d, b
ut th
e differe
nce is w
e get a lo
t of q
uestio
ns fro
m th
e fam
ily ab
out th
e tow
n.”
Atm
a add
ed ap
pro
xim
ately
70
% o
f his h
otels’ b
usin
ess com
es from
UN
C a
nd
UN
C H
ealth C
are, a no
t-for-p
rofit
health
-care syste
m a
ssociated
with
the u
niv
ersity’s sc
ho
ol o
f med
icine.
And
while F
argo
, No
rth D
ako
ta, repo
rted so
me o
f the co
untry
’s hig
hest o
ccup
ancy rate
s du
ring N
orth
Dak
ota S
tate
Univ
ersity’s m
ove-in
week
en
d—
96
% an
d 9
5.8
% o
n 1
7 an
d 1
8 A
ugu
st, respectiv
ely—
sou
rces could
no
t confirm
dem
and
was d
irectly a
ttributa
ble to
paren
ts visitin
g.
The 8
3-ro
om
Best W
estern P
lus K
elly In
n &
Suites in
Farg
o, fiv
e mile
s from
ND
SU
’s cam
pus, o
nly
filled th
ree to
five ro
om
s with
mo
ve-in
-related trav
elers, said G
M L
isa Am
ann. S
till, occu
pan
cy at h
er ho
tel w
as 10
0%
durin
g th
e
wee
ken
d.
“It’s no
t an an
om
aly,” sh
e said. “It’s n
ot so
meth
ing w
here th
ere’s an u
nco
nstrain
ed d
em
and
becau
se we’re n
ot n
ext
do
or to
the co
llege.”
San
di A
dam
s, GM
at the 1
51
-roo
m R
adisso
n H
otel F
argo
, located
in th
e heart o
f do
wn
tow
n, said
mo
st of h
er
pro
perty
’s busin
ess com
es fro
m m
eetin
gs an
d co
nferen
ces. She d
oes, h
ow
ever, see so
me p
arents co
min
g to
stay.
“We are m
ore o
f a busin
ess ho
tel, and
we d
o g
et paren
ts here
… b
ut it’s n
ot so
meth
ing th
at is huge n
um
bers a
nd
hu
ge o
ccup
ancy,” sh
e said.
But ev
en th
en, b
eing ab
le to attrib
ute d
em
and
to an
y g
iven g
enerato
r can p
rove ch
allengin
g, A
dam
s add
ed.
“It’s diffic
ult b
ecause w
e do
n’t alw
ays k
no
w w
hy p
eop
le are here to
stay.”
D
ivis
ion o
f Touris
m, F
ilm a
nd S
ports
Develo
pm
ent
2
01
2 N
orth
Caro
lina Lo
dgin
g Re
po
rt
A P
ub
lication
of th
e N
orth
Caro
lina D
ivision
of
Tou
rism, Film
and
Spo
rts De
velo
pm
en
t
Janu
ary 20
13
Division of Tourism, Film and Sports Development
2012 North Carolina Lodging Report
Year-end 2012 hotel/motel occupancy was up 2.5% statewide from 2011. This represents a nearly fourteen percent increase over the last three years, and slightly above 2008 occupancy. Though still down about five percent from the peak in 2007, the last three years have significantly lessened the gap. o The US occupancy and South Atlantic states occupancy were also up 2.5% from 2011.
Smith Travel Research, 2013 *Occupancy – Rooms sold divided by rooms available.
44%
46%
48%
50%
52%
54%
56%
58%
60%
62%
20052006200720082009201020112012
58.3
60.0 60.4
55.9
50.5
53.9
56.1
57.4
Occupancy in North Carolina 2005-2012
+2.9% +0.7% -7.5% +2.8%
-1.5%
-9.7% +6.7% +4.0% +2.5%
Division of Tourism, Film and Sports Development
In 2012 monthly hotel/motel occupancy followed the same general trend as in recent years. Historically, statewide occupancy is always higher during the summer months and October. Nine months of 2012 experienced the highest occupancy since 2007. Growth was stronger during the spring, summer and early fall, and slowed a bit in late fall/early winter. Information from neighboring states confirms similar trend lines for them, as well as nationwide estimates.
Smith Travel Research, 2013
35%
45%
55%
65%
Janu
ary
Febru
ary
March
Ap
ril
May
Jun
e
July
Au
gust
Septem
ber
Octo
ber
No
vemb
er
Decem
ber
Monthly Occupancy in North Carolina 2007-2012
200720082009201020112012
Division of Tourism, Film and Sports Development
2012 room rates (ADR) in North Carolina were up 4.5% from 2011, just topping the 2008 average rate to be the highest on record. Room rates have increased seven percent over the last two years. o The US ADR was up 4.2% from 2011. ADR in the South Atlantic states was up 3.1% from 2011.
Smith Travel Research, 2013 *ADR (Average Daily Rate) – Room revenue divided by rooms sold.
$30.00
$45.00
$60.00
$75.00
$90.00
20052006200720082009201020112012
$70.42
$75.73
$81.51 $84.84
$80.21 $79.80 $81.86 $85.34
Average Daily Room Rates (ADR) in North Carolina 2005-2012
+7.5% +7.6% +4.1% +3.8%
+21.2%
-5.5% -0.5% +2.6% +4.5%
Division of Tourism, Film and Sports Development
Room rates (ADR) in North Carolina in 2012 were the highest on record (+0.5% over the previous high in 2008). In particular, September rates, as a result of the Democratic National Convention, increased four percent statewide (38% in the Carolinas Region). Late fall/early winter saw the highest room rates on record for those particular months.
Smith Travel Research, 2013
$65.00
$75.00
$85.00
$95.00
Janu
ary
Febru
ary
March
Ap
ril
May
Jun
e
July
Au
gust
Septem
ber
Octo
ber
No
vemb
er
Decem
ber
Monthly ADR in North Carolina 2007-2012
200720082009201020112012
Division of Tourism, Film and Sports Development
Statewide, Revenue Per Available Room (RevPAR) was up 7.1% from 2011, nearly reaching the peak set in 2007. RevPAR has increased over twenty percent in the last three years. o Nationally, RevPAR was up 6.8% from 2011. South Atlantic states RevPAR was up 5.7% from 2011.
Smith Travel Research, 2013 *RevPAR – Revenue Per Available Room – Room revenue divided by rooms available (occupancy times average room rate will closely approximate RevPAR)
$35.00
$40.00
$45.00
$50.00
$55.00
20052006200720082009201020112012
$41.02
$45.44
$49.13
$47.46
$40.52
$43.05
$45.92
$49.00
Revenue Per Available Room (RevPAR) in North Carolina 2005-2012
+10.8% +8.1% -3.4% +6.6%
+19.5%
-14.6% +6.2% +6.7% +7.1%
Division of Tourism, Film and Sports Development
2012 statewide monthly Revenue per Available Room (RevPAR) increased each month from 2011, particularly late spring, summer and early fall. As with ADR, RevPAR was at a record in September, due in part to the increased room rates as a result of the DNC in Charlotte.
Smith Travel Research, 2013
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
$50.00
$55.00
$60.00
$65.00
$70.00
Janu
ary
Febru
ary
March
Ap
ril
May
Jun
e
July
Au
gust
Septem
ber
Octo
ber
No
vemb
er
Decem
ber
Monthly Revenue Per Available Room (RevPAR) in North Carolina 2007-2012
200720082009201020112012
Division of Tourism, Film and Sports Development
2012 Room Supply was up 0.7% in the state from 2011. Room supply has increased 8.5% since 2005, in small part leading to some of the decrease in occupancy over that time period. Room supply in 2012 is at its highest on record for North Carolina with nearly 53 million room nights available for the year. o Nationally, room supply was up 0.5%. Room supply was flat from 2011 to 2012 in the South Atlantic region overall.
Smith Travel Research, 2013 *Room Supply – The number of rooms times the number of days in the period.
40,000,000
42,000,000
44,000,000
46,000,000
48,000,000
50,000,000
20052006200720082009201020112012
48,621,947 48,511,069 48,920,614
49,750,126 51,185,909 52,272,499 52,407,657 52,765,069
Room Supply in North Carolina 2005-2012
-0.3% +0.8% +1.7% -1.3%
+8.5%
+2.9% +2.1% +0.9% +0.7%
Division of Tourism, Film and Sports Development
Room Supply in 2012 followed the same trend line as last year, showing more growth in the second half of the year.
Smith Travel Research, 2013
3,000,000
3,200,000
3,400,000
3,600,000
3,800,000
4,000,000
4,200,000
4,400,000
4,600,000
4,800,000
5,000,000
Janu
ary
Febru
ary
March
Ap
ril
May
Jun
e
July
Au
gust
Septem
ber
Octo
ber
No
vemb
er
Decem
ber
Monthly Room Supply in North Carolina 2007-2012
200720082009201020112012
Division of Tourism, Film and Sports Development
2012 Room Demand was up 3.2% in the state, and surpassed 2007 demand to reach a new record for lodging demand in North Carolina. More than 30 million room nights were sold in 2012. Since 2005, room demand is up 7%. o Room demand was up 3.0% nationally and up 2.6% in the South Atlantic region from 2011 to 2012
Smith Travel Research, 2013 *Room Demand – The number of rooms sold (excludes complimentary rooms).
24,000,000
25,000,000
26,000,000
27,000,000
28,000,000
29,000,000
30,000,000
31,000,000
20052006200720082009201020112012
28,326,368
29,082,633 29,509,250
28,075,933
26,222,409
28,140,015
29,396,468
30,296,298
Room Demand in North Carolina 2005-2012
+2.7% +1.5% -4.9% +1.4%
+7.0%
-6.6% +7.3% +4.5% +3.2%
Division of Tourism, Film and Sports Development
Nearly every month in 2012 showed increased statewide Room Demand from 2011, setting records in many months. Winter months were fairly flat, but spring and summer picked up before slowing in late fall. Due to an increased supply in rooms over the last several years, demand has fared somewhat better than occupancy; meaning a slightly smaller number of people are filling an even larger number of rooms than in previous years.
Smith Travel Research, 2013
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2,200,000
2,400,000
2,600,000
2,800,000
3,000,000
Janu
ary
Febru
ary
March
Ap
ril
May
Jun
e
July
Au
gust
Septem
ber
Octo
ber
No
vemb
er
Decem
ber
Monthly Room Demand in North Carolina 2007-2012
200720082009201020112012
Division of Tourism, Film and Sports Development
North Carolina room revenues were up 7.9% in 2012 from 2011, reaching nearly $2.6 billion and topping the previous high set in 2007. Statewide room revenues have increased nearly thirty percent since 2005. This is due in part to the increased ADR from 2005-2007, and a resurge in 2011. However, demand has also increased over fifteen percent over the last three years, contributing to the increased revenues as well. o Nationally, room revenues were up 7.3%. In the South Atlantic states, room revenues increased 5.7% from 2011 to 2012.
Smith Travel Research, 2013 *Room Revenue – Total room revenue generated from the sale or rental of rooms.
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
20052006200720082009201020112012
$1.99
$2.20 $2.40 $2.35
$2.06 $2.24
$2.41 $2.59
Room Revenues in North Carolina 2005-2012 ($ billions)
+10.4% +9.2% -2.1% +5.2%
+29.6%
-12.4% +8.5% +7.6% +7.9%
Division of Tourism, Film and Sports Development
North Carolina room revenues in 2012 showed very positive increases nearly every month over 2011, particularly during September (as a result of the previously noted DNC in Charlotte). However, May through August and October through December also reported strong growth in revenues.
Smith Travel Research, 2013
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
200,000,000
220,000,000
240,000,000
260,000,000
Janu
ary
Febru
ary
March
Ap
ril
May
Jun
e
July
Au
gust
Septem
ber
Octo
ber
No
vemb
er
Decem
ber
Monthly Room Revenues in North Carolina 2007-2012
200720082009201020112012
Division of Tourism, Film and Sports Development
Methodology
While virtually every chain in the United States provides STR with data on almost all of their properties, there are still some hotels that don't submit data. However, every year STR examines guidebook listings and hotel directories for information on hotels that don't provide data. STR calls each hotel in their database every year to obtain "published" rates for multiple categories. Based on this information all hotels are grouped - those that report data and those that don't - into groupings based off of price level and geographic proximity. They then estimate the non-respondents based off of nearby hotels with similar price levels.
Glossary
ADR (Average Daily Rate)
Revenue (Room Revenue)
Room revenue divided by rooms sold.
Total room revenue generated from the sale or rental of rooms.
Affiliation Date
RevPAR - Revenue Per Available Room
Date the property affiliated with current chain/flag
Room revenue divided by rooms available (occupancy times average room rate will closely approximate RevPAR).
Census (Properties and Rooms)
The number of properties and rooms that exist (universe)
Sample % (Rooms)
The % of rooms STR receives data from. Calculated as (Sample
Change in Rooms
Rooms/Census Rooms) * "100".
Indicator of whether or not an individual hotel has had added or deleted rooms.
Standard Historical TREND
Exchange Rate
Data on selected properties or segments starting in 1997.
The factor used to convert revenue from U.S. Dollars to the local currency.
The exchange rate data is obtained from Oanda.com. Any aggregated number
STR Code
in the report (YTD, Running 3 month, Running 12 month) uses the exchange
Smith Travel Research's proprietary numbering system. Each hotel in the
rate of each relative month when calculating the data.
lodging census has a unique STR code.
Demand (Rooms Sold)
Supply (Rooms Available)
The number of rooms sold (excludes complimentary rooms).
The number of rooms times the number of days in the period.
Full Historical TREND
Twelve Month Moving Average
Data on selected properties or segments starting in 1987.
The value of any given month is computed by taking the value of that month
and the values of the eleven preceding months, adding them together and
Occupancy
dividing by twelve.
Rooms sold divided by rooms available.
Year to Date
Open Date
Average or sum of values starting January 1 of the given year.
Date the property opened
Percent Change
Amount of growth, up, flat, or down from the same period last year (month, ytd, three months, twelve months). Calculated as ((TY-LY)/LY) * "100".
Articles fro
m
recappin
g th
e
2012 L
ifestyle/B
ou
tique H
otel D
evelo
pm
ent C
onferen
ce
Boom
ing B
ou
tiqu
e Bu
siness M
eets in M
iam
i
Bea
ch
Oct 1
9, 2
01
2 7
:06
AM
, By E
d W
atkin
s
So
uth
Flo
rida L
eads th
e Way
Back
in B
ou
tiqu
e/Lifesty
le Seg
men
t
Jason
Po
meran
c of C
om
mu
ne H
otels b
elieves in
som
e cases bran
din
g can
be a n
egativ
e in
ob
tainin
g fin
ancin
g.
It‟s no
surp
rise to an
yo
ne th
at the b
ou
tiqu
e and
lifestyle seg
men
ts of th
e ho
tel ind
ustry
are do
ing
well. A
nd
based
on
stron
g o
peratin
g p
erform
ance in
the secto
r, interest in
the p
rodu
ct has g
ained
a lot o
f gro
un
d in
recent y
ears from
dev
elop
ers, op
erators, len
ders an
d ev
en trad
ition
al bran
d
com
pan
ies. An
d n
ow
here is th
at trend
mo
re evid
ent th
an in
Miam
i, and
in its M
iami B
each
sub
mark
et, on
e of tw
o ep
icenters (M
anh
attan is th
e oth
er) of th
e bo
utiq
ue an
d lifesty
le ho
tel
ind
ustry
.
As Jay
Co
ldren
, vice p
residen
t of lifesty
le bran
ds at M
arriott, said
du
ring an
op
enin
g p
anel at th
is
week
‟s Lifesty
le/Bo
utiq
ue H
otel D
evelo
pm
ent C
on
ference, “If y
ou
‟re seriou
s abo
ut th
is
segm
ent, y
ou
mu
st be in
Miam
i.”
Lo
dg
ing
Ho
spita
lity, in co
nju
nctio
n w
ith H
VS
Ho
tel Man
agem
ent, sp
on
sors L
BH
DC
, wh
ich is
bein
g h
eld at th
e Fo
ntain
ebleau
Ho
tel in M
iami B
each. T
he S
cho
ol o
f Ho
spitality
Man
agem
ent
at Mich
igan
State U
niv
ersity is th
e con
ference‟s acad
emic sp
on
sor.
New
data fro
m S
TR
sho
ws th
e strength
of th
e Miam
i area mark
ets. Year-to
-date th
rou
gh
Au
gu
st
occu
pan
cy fo
r Miam
i was 7
7.7
%, w
hile R
evP
AR
increased
a wh
op
pin
g 8
.2%
. An
d p
erhap
s mo
st
pro
misin
g is th
e new
s that A
DR
has alm
ost fu
lly reco
vered
to p
re-recessio
n lev
els, a pro
cess that
too
k 4
8 m
on
ths.
Th
e success o
f the lifesty
le/bo
utiq
ue seg
men
t is hav
ing an
effect thro
ugh
ou
t the in
du
stry. A
ll
ho
tels, bu
t especially
lifestyle an
d b
ou
tiqu
e pro
perties, n
eed to
beco
me “m
ore ex
perien
tial and
senso
ry, said
Marrio
tt‟s Co
ldren
. “Th
e alternativ
e is to p
erish.”
An
exam
ple o
f how
this seg
men
t has g
row
n is seen
in th
e finan
cing aren
a. Wh
ile man
y b
elieve
it‟s difficu
lt for n
on
-bran
ded
ho
tels to attract d
ebt o
r equ
ity fin
ancin
g, Jaso
n P
om
eranc o
f
Co
mm
un
e Ho
tels said a b
rand
can actu
ally b
e a neg
ative fo
r a bo
utiq
ue h
otel seek
ing fin
ancin
g,
particu
larly in
som
e hig
h-rate m
arkets lik
e New
Yo
rk C
ity.
“With
som
e pro
du
cts and
in so
me m
arkets it‟s w
arranted
[to affiliate w
ith a b
rand
], bu
t lend
ers
and
institu
tion
s are starting to
see in certain
sectors y
ou
can d
o w
itho
ut b
rand
s and
be b
etter off,”
said P
om
eranc. C
om
mu
ne in
clud
es a JdV
Co
llection
and
the T
ho
mp
son
-bran
d h
otels. H
e said
the co
mp
any is also
dev
elop
ing a n
ew v
alue-o
riented
, desig
n-d
riven
chain
that w
ill com
pete w
ith
bo
utiq
ues in
low
er price seg
men
ts.
Marrio
tt‟s Jay C
old
ren say
s all ho
tels need
to tak
e on
som
e of th
e
characteristics o
f bo
utiq
ue h
otels.
No
r surp
risingly
, Co
ldren
of M
arriott h
ad a d
ifferent o
pin
ion
. In ex
plain
ing th
e ration
ale for
Marrio
tt‟s soft-b
rand
Au
tograp
h C
ollectio
n, h
e said, “P
eop
le are loo
kin
g fo
r the ab
ility to
fun
ction
ind
epen
den
tly in
the lifesty
le segm
ent b
ut also
to h
ave a flo
or to
their risk
. By p
lug
gin
g
into
ou
r [reservatio
ns sy
stem] b
ut m
aintain
ing th
e ind
epen
den
t integ
rity o
f these h
otels g
ives
lend
ers a lot m
ore co
mfo
rt and
the fin
ancin
g co
mes a lo
t easier.”
Th
e bo
utiq
ue seg
men
t is a ben
eficiary to
wh
at Den
ihan
Ho
spitality
Presid
ent D
avid
Du
ncan
called a “rain
dro
p reco
very
. Reco
very
very
specifically
dep
end
s on
wh
ere yo
u are,” h
e said,
add
ing th
at wh
ile natio
nw
ide ab
ou
t 35
% o
f job
s lost in
the d
ow
ntu
rn h
ave retu
rned
, in N
ew Y
ork
City
13
5%
of jo
bs h
ave retu
rned
. Den
ihan
has 1
6 h
otels u
nd
er two b
rand
s (Affin
ia and
James)
and
a collectio
n o
f ind
epen
den
t pro
perties. “T
hat‟s w
hy w
e focu
s on
the to
p fiv
e to 1
0 m
arkets
and
in th
e center cities o
f tho
se mark
ets.”
Ev
ery in
du
stry co
nferen
ce pan
el focu
sed o
n th
e bo
utiq
ue seg
men
t seems o
blig
ated to
defin
e the
wo
rd b
ou
tiqu
e, and
this o
ne w
as no
differen
t. Wh
ile terms lik
e “lux
ury
finish
es,” and
“ind
ivid
ualized
exp
eriences” w
ere cited b
y so
me p
anelists, T
rust H
osp
itality P
residen
t & C
OO
Patrick
Go
dd
ard m
ay h
ave h
ad th
e mo
st insig
htfu
l take o
n th
e top
ic.
“In m
any w
ays, a co
nsu
mer‟s lo
dgin
g d
ecision
is a form
of self-ex
pressio
n,” h
e said. “T
hat‟s th
e
way co
nsu
mers b
uy certain
bran
ds o
f cars, cloth
ing o
r sho
es. Th
e ways th
ey ch
oo
se a restauran
t
or a h
otel are reflectio
ns o
f them
selves. S
o w
hen
we‟re creatin
g a b
rand
iden
tity o
r voice, w
e
loo
k at th
e target d
emo
grap
hic an
d th
ink
abo
ut w
hat th
ey w
ant in
their ex
perien
ce.”
“Lifesty
le” may b
e an ev
en h
arder term
to p
in d
ow
n. A
s Co
ldren
said, “E
very
con
sum
er pro
du
ct
on
the m
arket seem
s to h
ave a „lifesty
le‟ ben
t to it, rig
ht d
ow
n to
„lifestyle tires.‟” A
nd
as
mo
derato
r Jeff Hig
ley o
f Sm
ith T
ravel R
esearch n
oted
, the n
otio
n o
f a lifestyle p
rod
uct is really
no
t new
in th
e ho
tel ind
ustry
. “Ev
en K
nig
hts In
n w
as dev
elop
ed d
ecades ag
o as a lifesty
le ho
tel
becau
se it catered to
the lifesty
le of tru
ckers,” h
e said.
Ind
epen
den
t an
d B
ou
tiqu
e Hotels G
ain
Main
stream
Accep
tan
ce
by E
ric Sto
essel Octo
ber 1
9th
, 20
12
Wh
at Ian S
chrag
er and
Bill K
imp
ton
started 2
5 y
ears ago
on
op
po
site end
s of th
e cou
ntry
in
gatew
ay cities lik
e San
Fran
cisco an
d N
ew Y
ork
has n
ow
met in
the m
idd
le. Ind
epen
den
t
bo
utiq
ue h
otels can
wo
rk —
and
thriv
e — in
cities like M
ilwau
kee, an
d d
evelo
pers at th
e fou
rth
ann
ual L
ifestyle/B
ou
tiqu
e Ho
tel Dev
elop
men
t Co
nferen
ce in M
iami th
is week
talked
abo
ut
pro
jects in faraw
ay p
laces like M
on
tana, K
entu
cky an
d T
enn
essee.
Th
e segm
ent h
as reached
main
stream accep
tance b
y co
nsu
mers, in
vesto
rs and
even
the h
otel
franch
ise com
pan
ies.
Jay C
old
ren, v
ice presid
ent o
f lifestyle b
rand
s for M
arriott In
ternatio
nal, said
it‟s becau
se of a
gen
eration
al — an
d tran
sform
ation
al — sh
ift hap
pen
ing as G
en Y
con
sum
ers and
their
preferen
ce for lifesty
le ho
tels take o
ver b
uyin
g p
ow
er from
the B
aby B
oo
mers in
the n
ext fiv
e
years.
Co
ldren
head
s Marrio
tt‟s fast-gro
win
g A
uto
grap
h C
ollectio
n, a p
seud
o-b
rand
allow
ing o
wn
ers
mo
re ind
epen
den
ce, yet a co
nn
ection
to th
e po
werfu
l Marrio
tt system
. Oth
er ho
tel franch
ise
com
pan
ies hav
e similar o
fferings, lik
e Ch
oice‟s A
scend
Co
llection
, and
mo
re will fo
llow
in th
e
nex
t five y
ears, said Jeff L
ow
, CE
O an
d fo
un
der o
f Stash
Ho
tel Rew
ards.
Inv
estors an
d len
ders are also
takin
g n
otice. N
eil Sh
ah, p
residen
t and ch
ief op
erating o
fficer of
Hersh
a Ho
spitality
Tru
st, said in
som
e mark
ets ind
epen
den
ts hav
e recov
ered faster th
an th
eir
bran
ded
-cou
nterp
arts and
are tradin
g at sim
ilar or ev
en p
remiu
m lev
els, in p
art becau
se they are
un
encu
mb
ered o
f a franch
ise or m
anag
emen
t con
tract. He also
add
ed th
at du
ring th
e last cycle
there w
ere man
y len
ders w
ho
were o
nly
interested
in b
rand
ed p
rop
erties. “No
t anym
ore,” h
e said
du
ring a g
eneral sessio
n at th
e Fo
ntain
ebleau
Th
ursd
ay. “T
hat‟s ch
angin
g. M
ore in
vesto
rs are
interested
in in
dep
end
ents.”
Th
e gen
eral acceptan
ce of th
e segm
ent an
d su
ccess stories lik
e the Iro
n H
orse in
Milw
auk
ee
hav
e help
ed o
pen
the d
oo
r to n
ew d
evelo
pm
ent in
secon
dary
mark
ets. Patrick
Go
dd
ard, p
residen
t
of T
rust H
osp
itality, said
his co
mp
any ev
en targ
ets som
e of th
ose n
on
-gatew
ay cities. “T
here are
differen
t prices, in
vestm
ents an
d it m
ay b
e hard
er to g
et finan
cing, b
ut it can
be d
on
e,” he said
.
Wh
en th
is conferen
ce beg
an th
ree years ag
o w
e talked
abo
ut th
e “bu
rgeo
nin
g” lifesty
le and
bo
utiq
ue seg
men
ts. Th
ey‟re n
ow
bo
om
ing.
Related
To
pics: G
eneral |
Ind
epen
den
t Hoteliers S
hare B
est Pra
ctices
Oct 2
3, 2
01
2 9
:03
AM
, By E
ric Sto
essel
Jeff Lo
w, fo
un
der an
d C
EO
of S
tash H
otel R
eward
s, said o
ne o
f the b
iggest ch
allenges facin
g
ind
epen
den
t ho
tel ow
ners an
d o
perato
rs is their “iso
lation
.” Th
ey h
ave n
o “id
ea ban
k” to
draw
from
.
At last w
eek‟s L
ifestyle/B
ou
tiqu
e Ho
tel Dev
elop
men
t Co
nferen
ce at the F
on
taineb
leau in
Miam
i,
a pan
el of in
dep
end
ent h
oteliers trad
ed b
est practices an
d sh
ared sim
ilar stories o
f the ch
allenges
they
face com
petin
g in
a bran
ded
wo
rld. T
he p
anel —
titled, „In
dep
end
ents‟ D
ay‟ —
was
mo
derated
by P
aramo
un
t Lo
dgin
g A
dv
isors A
ssociate M
ichael K
itchen
, and
also in
clud
ed
Stash
‟s Lo
w, C
larend
on
Ho
tel Ow
ner an
d G
eneral M
anag
er Ben
Beth
el, Gem
ston
e Reso
rts
Prin
cipal Jeff M
cInty
re and
Cam
bean
Ho
spitality
Presid
ent B
rian S
chein
blu
m.
“Wh
at‟s coo
l abo
ut b
eing an
ind
epen
den
t is the cu
stom
er tells us w
hat w
e sho
uld
be d
oin
g, n
ot
the b
rand
,” said M
cInty
re. “We‟re in
the b
usin
ess of m
akin
g m
emo
ries.”
Bein
g n
imb
le and
capab
le of reactin
g q
uick
ly to
pro
blem
s and
mark
et situatio
ns w
as the
con
sensu
s adv
antag
e ind
epen
den
ts hav
e. “We can
do
wh
at we w
ant w
hen
we w
ant,” said
Sch
einb
lum
, wh
ose C
amb
ean H
osp
itality o
wn
s and
op
erates fou
r small b
ou
tiqu
e ho
tels in S
ou
th
Beach
.
On
line trav
el agen
cies were th
e big
gest ch
allenge facin
g in
dep
end
ents, th
e pan
el agreed
.
“Ind
epen
den
ts hav
e twice th
e bo
ok
ings fro
m O
TA
s,” said L
ow
. “Th
ink
abo
ut th
at, there‟s so
mu
ch m
on
ey g
oin
g o
ut. M
eanw
hile y
ou
‟re calkin
g y
ou
r win
do
w to
save m
on
ey an
d y
ou
‟ve g
ot
an en
tire wall m
issing. A
lot in
dep
end
ent p
layers ju
st aren‟t aw
are …
“If OT
As are lik
e crack, th
en flash
sales are like m
eth. E
ither w
ay, y
ou
r teeth fall o
ut.”
Stash
Rew
ards h
as app
rox
imately
20
0 h
otel p
artners tak
ing ad
van
tage o
f its loyalty
pro
gram
for
ind
epen
den
ts that h
elps o
ffset franch
ised ch
ains‟ h
ugely
successfu
l reward
s pro
gram
s.
Du
ring th
e do
wn
turn
, Sch
einb
lum
said, th
ere were m
any h
otels p
rob
ably
“bo
rderlin
e losin
g
mo
ney
on
every
single ro
om
they
sold
thro
ugh
OT
As” b
ecause o
f the red
uced
rates and
hig
h
com
missio
ns.
“Cap
ture an
d k
eep,” said
McIn
tyre o
f the strateg
y after b
ringin
g in
a custo
mer th
rou
gh
an O
TA
bo
ok
ing. “W
e do
n‟t ju
st loo
k at th
e 24
% (co
st), bu
t (OT
As) are also
a search en
gin
e to u
s. Man
y
custo
mers lo
ok
at pricin
g an
d p
rod
uct o
fferings an
d th
en b
oo
k at th
e ho
tel‟s web
site. Th
ere is a
billb
oard
effect.”
He also
said O
TA
s cou
ld b
e a “great to
ol” fo
r distressed
pro
perties, w
hich
Gem
ston
e often
is
bro
ugh
t on
to m
anag
e. “As in
dep
end
ents, th
ose ch
ann
els can‟t b
e ign
ored
.”
Lik
e the O
TA
s, wh
ere franch
ise partn
ers often
get b
etter marg
ins th
rou
gh
bran
d-n
ego
tiated rates,
pro
curem
ent w
as anoth
er area of co
ncern
for th
e ind
epen
den
t ho
telier. Lo
w said
he‟s h
eard fro
m
his h
otel p
artners th
at marg
ins th
ey‟re p
ayin
g fo
r pu
rchasin
g p
rodu
cts can b
e 25
%, w
hile th
e rate
is as low
as 17
% fo
r at least on
e of th
e large fran
chise co
mp
anies.
Beth
el, the o
wn
er and
gen
eral man
ager o
f the C
larend
on
, said h
e‟s ord
ered p
rod
ucts d
irect from
Am
azon
.com
and
also reco
mm
end
ed alib
aba.co
m fo
r sou
rcing an
d sh
ipp
ing d
irect from
factories
arou
nd th
e wo
rld.
Beth
el, wh
o h
ad n
o p
rior h
otel ex
perien
ce, said h
e‟s no
t afraid to
call oth
er ow
ners an
d
pro
perties h
e respects to
ask fo
r adv
ice. It was h
is on
ly ed
ucatio
n after m
axin
g o
ut cred
it cards
and
usin
g h
om
e equ
ity lo
ans to
bu
y th
e dilap
idated
bu
ildin
g in
Ph
oen
ix tw
o w
eeks after h
e first
con
sidered
the id
ea.
At th
e Claren
do
n, h
e do
esn‟t see an
RO
I in h
avin
g a sales staff an
d d
oesn
‟t emp
loy a d
irector o
f
sales. Instead
, he h
eavily
incen
ts his fro
nt-d
esk staff w
ith 2
0%
to 5
0%
com
missio
ns fo
r every
roo
m u
pgrad
e, early ch
eck-in
or ad
ditio
nal p
oo
l pass so
ld, m
eanin
g th
ey can
mak
e up
to $
80
,00
0
per y
ear on
their $
10
/ho
ur salary
. “Ou
r fron
t desk
staff is so im
po
rtant, n
ot ju
st for lo
yalty
bu
ildin
g, b
ut to
increase rev
enu
e,” he said
.
Ev
en m
ore o
utsid
e the b
ox
, Beth
el charg
ed g
uests fo
r his p
rop
erty tax
es du
ring th
e do
wn
turn
to
stay aflo
at wh
en h
e cou
ldn
‟t even
mak
e his d
ebt serv
ice. A 5
% p
rop
erty tax
fee was in
clud
ed o
n
all folio
s and
also listed
as a surch
arge at all o
nlin
e sites. “We b
rough
t in $
90
,00
0 in
itially an
d it
enab
led u
s to catch
up
,” he said
. “It‟s no
t wh
at I wan
ted to
do
, bu
t at the tim
e was so
meth
ing I
tho
ugh
t was a g
reat idea w
hen
we w
ere hav
ing p
rob
lems m
akin
g en
ds m
eet.”
Be S
tron
g If Y
ou
Wan
t to F
inan
ce a B
ou
tiqu
e
Hotel
Oct 2
4, 2
01
2 6
:44
AM
, By E
d W
atkin
s
Cash
Flo
w Is th
e Mo
st Imp
ortan
t Ing
redien
t
A p
anel o
n len
din
g to
bo
utiq
ues said
stron
g an
d stab
le cash flo
w is th
e mo
st imp
ortan
t elemen
t in
securin
g fin
ancin
g.
In th
e final an
alysis, fin
din
g fin
ancin
g fo
r a transactio
n in
vo
lvin
g a b
ou
tiqu
e or lifesty
le ho
tel
isn‟t m
uch
differen
t than
for a m
ore trad
ition
al bran
ded
pro
perty
. Mo
st speak
ers on
the to
pic at
last week
‟s Lifesty
le/Bo
utiq
ue H
otel D
evelo
pm
ent C
on
ference in
Miam
i agreed
it‟s all a matter
of stren
gth
: a stron
g sto
ry, stro
ng sp
on
sorsh
ip an
d m
anag
emen
t and
, perh
aps ab
ov
e all, stron
g
cash flo
w.
“In p
uttin
g to
geth
er the cap
ital stack fo
r a bo
utiq
ue p
roperty
, the first q
uestio
ns to
com
e up
are
wh
at is the cash
flow
, ho
w stab
le is it, ho
w d
oes it co
mp
are to th
e peak
of th
e mark
et and
ho
w
mu
ch m
ore ro
om
is there to
gro
w,” said
Fran
k N
ardo
zza, chairm
an &
CE
O o
f RE
H C
apital
Partn
ers, wh
o sp
ok
e on
a pan
el titled „T
he B
ou
tiqu
e Len
din
g L
and
scape.‟ “If w
e can articu
late
the cash
flow
, we can
then
get th
e interest o
f capital, b
oth
deb
t and
equ
ity.”
Fin
an
cing
is easier fo
r bo
utiq
ue p
rop
erties in a
ho
t ma
rket lik
e Mia
mi, sa
id S
uza
nn
e
Am
ad
ucci-A
da
ms o
f Bilzen
Su
mb
erg la
w firm
.
Wh
ile she ag
reed “cash
is kin
g,” atto
rney S
uzan
ne A
mad
ucci-A
dam
s said cap
ital sou
rces also
loo
k at o
ther facto
rs in co
nsid
ering d
ebt o
r equ
ity p
lacemen
t for a b
ou
tiqu
e ho
tel transactio
n.
Lo
cation
, un
iqu
eness o
f pro
du
ct, foo
d an
d b
everag
e offerin
gs an
d sp
on
sorsh
ip are o
n h
er list of
imp
ortan
t items.
“Th
e mark
et is critical. Miam
i is so h
ot rig
ht n
ow
it‟s a lot easier to
get fin
ancin
g fo
r a bo
utiq
ue
ho
tel here,” said
Am
adu
cci-Ad
ams, a p
artner w
ith th
e Miam
i firm o
f Bilzen
Su
mb
erg. “T
he
ho
tel need
s to b
e un
iqu
e and
part o
f that o
ften is fo
od
and
bev
erage. B
ut, at th
e end
of th
e day,
it‟s all abo
ut sp
on
sorsh
ip.”
Still, so
me sig
nifican
t barriers ex
ist for b
ou
tiqu
es that m
ake acq
uirers, an
d esp
ecially d
evelo
pers,
wo
rk h
arder to
get fu
nd
ing fo
r their p
rojects. T
he co
nsen
sus am
on
g p
anelists w
as that b
ou
tiqu
e
and
lifestyle h
otels are fin
anceab
le, bu
t it may
cost m
ore to
do
so. N
ardo
zza specu
lated w
hile
loan
-to-v
alue ratio
s for fin
ancin
g o
f a traditio
nal b
rand
ed h
otel m
ay b
e as hig
h as 7
0%
, it‟s mo
re
like 6
0%
to 6
5%
for n
on
-bran
ded
pro
perties o
r bo
utiq
ue h
otels. A
nd
deb
t yield
s (net o
peratin
g
inco
me d
ivid
ed b
y th
e amo
un
t of th
e loan
) tend
to b
e hig
her, h
e said. C
assie Resn
ick, a v
ice
presid
ent o
f Mast C
apital, p
egg
ed y
ields fo
r bo
utiq
ue d
eals at 9%
-10
% u
p to
13
% if it‟s a
particu
larly risk
y d
eal.
Craig
Green
berg
of 2
1c M
useu
m H
otels said
it too
k a co
mp
licated w
eb o
f finan
cing v
ehicles to
fun
d th
e com
pan
y‟s first b
ou
tiqu
e ho
tel in L
ou
isville, K
Y.
An
oth
er pan
el at the co
nferen
ce tackled
the p
rob
lem o
f ho
w to
ov
ercom
e the o
ften-n
egativ
e
percep
tion
lend
ers hav
e abo
ut u
nb
rand
ed an
d in
dep
end
ent b
ou
tiqu
e ho
tels. Craig
Green
berg
,
presid
ent o
f 21
c Mu
seum
Ho
tels, ackn
ow
ledg
ed th
e issue is esp
ecially critical in
the m
arkets in
wh
ich h
is firm o
perates. T
he co
mp
any h
as a successfu
l pro
perty
op
en in
Lo
uisv
ille, KY
, with
ano
ther to
op
en n
ext m
on
th in
Cin
cinn
ati, follo
wed
by o
ne in
no
rthw
est Ark
ansas.
“It‟s defin
itely m
ore ch
allengin
g, esp
ecially in
smaller o
r med
ium
-sized cities, to
get m
on
ey,”
said G
reenb
erg, w
ho
sho
wed
the au
dien
ce an elab
orate ch
art ou
tlinin
g th
e variety
of fu
nd
ing
sou
rces—a m
ix o
f tax cred
its, rebates, g
rants, eq
uity
and
traditio
nal reco
urse b
ank
loan
s—u
sed
to d
evelo
p th
e first 21
c. “In th
at kin
d o
f env
iron
men
t, it usu
ally tak
es a perfect sto
ry to
pu
t
togeth
er a finan
cing p
ackag
e.”
Oliv
er Strik
er, a directo
r at UB
S In
vestm
ent B
ank
, agreed
, sayin
g h
is firm, w
hich
pro
vid
es bo
th
CM
BS
finan
cing an
d d
irect inv
estmen
t, takes a “h
olistic ap
pro
ach” to
evalu
ating fin
ancin
g
pro
po
sals, bo
th fro
m trad
ition
al ho
tels and
also b
ou
tiqu
e and
lifestyle p
roperties. W
hile h
e said
locatio
n is a p
rimary
factor, it‟s n
ot th
e on
ly o
ne.
“Gatew
ay cities w
ith h
igh
barriers o
f entry
and
dep
th o
f dem
and
are ob
vio
usly
preferred
,” he
said, “b
ut sp
on
sorsh
ip is also
crucial, esp
ecially th
e dep
th o
f exp
erience th
ey h
ave in
the secto
r.
It‟s also im
po
rtant th
e spo
nso
r has sk
in in
the g
ame, b
ecause it fo
rces them
to k
eep th
eir eyes o
n
the b
all.”
Desp
ite these cav
eats, speak
ers on
bo
th p
anels b
elieve fin
ancin
g fo
r bo
utiq
ue an
d lifesty
le
pro
du
cts, bo
th b
rand
ed an
d n
on
-bran
ded
, is beco
min
g m
ore m
ainstream
.
“Becau
se real cash flo
ws are sh
ow
ing u
p o
n th
e bo
ttom
lines o
f bo
utiq
ue h
otels, th
ere is mo
re
receptiv
ity in
the len
din
g co
mm
un
ity to
fun
din
g an
d cap
italizing [th
ese pro
du
cts],” said
Nard
ozza. “It‟s a m
ore fam
iliar pro
du
ct to g
uests an
d a m
ore fam
iliar pro
du
ct to th
e capital
mark
ets.”