Intracoastal Marina PRINT-2 copy

Eddy A. Dingman, Real Estate/Marina Business Broker National Golf and Marina Properties Group

Of Coldwell Banker Commercial NRT

[email protected] Direct: 847-987-6626

Intracoastal Oasis Marina Development 4.43 acres Submerged Coastal Waterfront | Volusia County, FL

Disclaimer Statement

This offering has been prepared solely for informational purposes. It is designed to assist a potential investor in determining whether it wishes to proceed with an in-depth investigation of the subject property. While the information contained herein is from sources deemed reliable, it has not been independently verified by the National Golf and Marina Properties Group of Coldwell Banker Commercial NRT or by the Seller. This document is provided subject to errors, omissions and changes in the information and is subject to modification or withdrawal. The contents herein are confidential and are not to be reproduced without the express written consent of National Golf and Marina Properties Group of Coldwell Banker Commercial.

Eddy A. Dingman National Golf & Marina Properties Group

www.nationalgolfandmarina.com


Overview

y Property is located next to the causeway going to South Florida near Port Orange multi-million dollar homes.

y 2 miles by boat to the Atlantic Ocean

y Desirable location

y Zoning: Commercial/Waterfront (zoned for a marina)

y County: Volusia County

y A slip’s type, location, size, available amenities, fees and a variety of other factors comprise its value; this marina encompasses all that. Great investment because of its proximity to the Bahamas and the Caribbean.

Eddy A. Dingman

National Golf & Marina Properties Group www.nationalgolfandmarina.com


Property Arial Map Location Aerial View

North Elevation West Elevation

Elevations

Current View Future View

Before and After Photographs

Sidewalk View

RIVERWALK LAND PURCHASES – 2013 ANALYSIS/PART I – Port Orange Riverwalk, LLP & LLC

Parcel No. & Square Footage

Street Address Map Key

No. Purchase Date

Transfer/Purchase Price1 &

Price Per Sq. Ft.3 Book/Page

Immediate Past Owner

6303-10-02-0031 3900 Halifax Dr. 36 9/12/07 $1,000,000 6127/0109 Hughes

25,876 sq. ft. $38.65

6303-04-00-0010 3512 Halifax Dr. 8 1/25/07 $1,200,000 5997/2145 Stemmler/Turner

26,430 sq. ft. $45.40

6303-11-02-0022 3969 Ridgewood 37 10/17/05 $162,600 5676/177 Najarian

5,890 sq. ft. $27.61

6303-11-02-0014 3979 Ridgewood 39 10/17/05 $107,000 5676/4675 Najarian

3,875 sq. ft. $27.61

6303-11-02-0012 Dunlawton Ave. 41 10/17/05 $145,000 5676/0230 Lair

5,253 sq. ft. $27.60

6303-11-02-0071 108 Herbert St. 28 2/20/07 $350,000 6011/1100 Proctor

6,885 sq. ft. $50.84

POR Total3 $2,964,600

Riverwalk Land Purchases – Part I

RIVERWALK LAND PURCHASES – 2013 ANALYSIS/PART II – Halifax River Partners


Street Address Map Key

No. Purchase Date

Transfer/Purchase Price1 &

Price Per Sq. Ft. Book/Page

Immediate Past Owner

6303-16-00-0010 3664 Halifax Dr. 20 5/6/05 $5,070,000 5560/408 Port Orange River Walk, LLP

154,702 sq. ft. $29.80

6303-16-00-0011 Halifax Dr. 19 5/6/05 Price Included 6303-16-02-0010 5560/408 Port Orange River

Walk, LLP

15,410 sq. ft. $29.80

6303-10-02-0024 3557 Halifax Dr. 14 6/17/06 $2,750,000 5871/2107 Ness

12,383 sq. ft. $222.08

6303-10-02-0041 3633 Halifax Dr. 16 5/2/05 $4,000,000 5560/402 Gaskill

88,078 sq. ft. $45.41

HRP Total3 $11,820,000

Riverwalk Land Purchases – Part II

RIVERWALK LAND PURCHASES – 2013 ANALYSIS/PART III – City of Port Orange and Town Center CRA


Street Address Map Key No. Purchase Date Transfer/Purchase

Price1 & Price Per Sq. Ft.3

Book/Page Immediate Past Owner

6303-10--01-0020 3459 Ridgewood 2 May-98 1,110,000 4311/1903 Ballard 174,729 sq. ft. $6.35

6303-10-02-0030 3571 Ridgewood 12 11/6/09 $824,858 6415/0082 | 6307/0426 | 6071/2665 Ridgewood Funeral Properties (McGurn)

29,000 sq. ft. $28.44

6303-11-02-0061 3840 Halifax Dr. 31 $1,112,320 5999/4044 Bryant/Singletary 33,200 sq. ft. $33.50

6303-11-02-0030 3965 Ridgewood 10 May-06 $422,740 5826/2126 | 5826/2128 | 5826/2130 Nacelli/King

17,515 sq. ft. $24.14

6303-11-02-0020 3920 Halifax Dr. 38 May-08 $449,949 6238/0539 Galbreath 3,600 sq. ft. $39.31

6303-11-02-0013 Dunlawton Ave. 42 May-08 $282,086 6238/0539 Galbreath 6,188 sq. ft. $39.31

6303-11-02-0011 Dunlawton Ave. 43 May-08 $1,400,144 6238/0640 Galbreath 15,606 sq. ft. $39.31

6303-11-02-0010 3966 Halifax Dr. 44 May-08 $369,432 6238/0539 Galbreath 38,249 sq. ft. $39.31

6303-11-02-0090 3999 Ridgewood 40 8-Feb $192,196 6199/1320 Oskandy 6,745 sq. ft. $28.50

6303-11-02-0072 110 Herbert St. 27 4/7/00 $103,275 4538/3552 Craddock 13,635 sq. ft. $7.57

6311-02-00-0050 Ridgewood 32 11/29/99 $120,000 4498/2165 Thompson 97,950 sq. ft. $12.06

CITY Total3 $6,387,000

Riverwalk Land Purchases – Part III

Option 1

y 102 (+-) deep-water boat slips ranging from 40’ - 80’

y Price for land only - $4.1M

Option 2

y Price for land and building - $5.6M

Options




y In Florida, the economic impact of the marine industry is approximately $18.6 billion and it employs about 220,000

y Florida has a shortage of waterfront parcels suitable for marine development, and those that exist need government aid to reach their potential

y A decrease in boatbuilding and marine-related employment in South Florida is due to an absence of the kinds of economic incentives that other states offer

y Florida is losing marine-related business to North Carolina, which offers tax incentives to businesses that move there. Credits are awarded to businesses that create jobs, invest in business property and invest in real property. Other states, such as California and Maine, also offer marine industry-specific incentives to attract and recruit marine businesses

Impact in Florida




y Based on the total number of boats existing in the primary market today that are over 26 feet in length (1,723) we forecast the following market growth. Based in the current economic conditions we conservatively forecast a 0% growth rate for the next two years. The firm then slowly ramps up the percentage growth back toward the previous years average growth for the size of vessel between 2 to 5% annually.

y If we assume that the subject property’s market can attract 20% of all new boat customers, the firm’s projects demand will be at approximately 50 boats by year 5 of the operation. A projected average increase of 3 new wet slip 1723 customers per year. This calculation is based on .07% growth of registered boats in the State of Virginia.

New Boat Market




y There is demand currently for wet slips that comes from the existing boaters in the subject market. This demand comes from existing boaters that would perceive the Port Orange location to be superior to their existing marina facility. The firm conservatively forecast this figure at 20 boats over the first 3 years of the marina’s operation. In addition for boaters currently storing their boats in the subject market, there is demand identified in the waiting list for Halifax Harbor at approximately 323 boats at the time that this research was conducted. The firm assumes the subject property would be able to attract 15% of these waitlisted customers over the first 4 years of the marina’s operation.

y Based on these calculations we forecast demand for approximately 250 additional wet slips at the subject property over the next 5 years. This forecast incorporates into the financial modeling as occupancy ramps up over the first 5 years.

Existing Boat Market




y As the world’s population increases and baby boomers retire, boat ownership is rapidly increasing and available options for parking boats are decreasing. In fact “1 out of 3 Americans takes part in some form of boating each year,” according to the Insurance Journal.

y Florida alone is losing 2,500 slips per year because of waterfront development

y Another factor causing supply to dwindle is conversion of marinas into real estate developments. Marinas are “going out of existence at about 6 percent per year” because land values for real estate development are increasing

Economic Impact




Why Invest?




y In general, there is a rising demand for boat slips, especially for large boats, but they are not available; therefore, the limited supply of slips and the increasing demand across the globe make boat slips an intriguing investment opportunity.

y People who rent out boat slips typically see returns of 4 to 10 percent, though the returns tend to be on the lower end of that range because of the fees associated with owning a boat slip

y Prices have been rising at least 25 percent per annum, so the investor is looking at a vast appreciation with really no possibility of it going backwards because there is no backlog of slips being produced. You’re looking at a supply and demand issue. Obviously, it should continue to appreciate.

Why Invest?




y Fee simple ownership is ideal for an investor y You own the land on which the water is sitting and you have

the ability to rent it out to whomever you wish

y In many areas, there simply isn’t enough waterfront property.

y The desire for boat ownership is expanding exponentially...over and above the available land space. We’ve seen a huge increase in demand, but “no real increase in supply.”

Why Invest? (Cont’d)




Boat Slips as Investments

Risk: Rating is based on the overall factors of risk for the investment. How likely is it to lose money? How much can you lose? Are there ways to exit the investment if it starts falling? How volatile is this investment? These are all factors that considered in this risk rating. The rating of 1 indicates a very low degree of risk; 5 indicates a very high degree of risk. In terms of comparable investments, a FDIC insured bank CD or money market would have a risk rating of 1, an S&P indexed fund or ETF would have a 3 and investing in an emerging foreign market might have a risk rating of 5 (depending on the particular market in question). Returns: Rating is based on projected annual ROI (return on investment) of a typical investment:͒1 = 0–4.9%͒2 = 5–9.9%͒3 = 10–14.9%͒ 4 = 15–25%͒5 = >25% This rating is based upon the amount of capital required to get started in this particular investment. ͒1 = <$10,000͒2 = $10,000-$50,000͒ 3 = $50,001-$100,000͒4 = $100,001-$250,000͒5 = >$250,000

ClassA1 Class A2 Class 1 Class 2 Class 3 Class 4 Class 5

< 12’ 12’-15’11” 16’-25’11” 26’-39’11” 40’-64’11” 65’-109’11” > 110’

% Growth from 2006 2.27% -0.72% 1.35% 2.62% 5.49% -23.08% -50.00%

Volusia Total 4399 8308 16103 1453 255 13 2

% of State 2.66% 3.75% 3.23% 1.78% 1.87% 1.66% 2.20%

% of Selected Area 20.57% 33.02% 26.62% 30.71% 33.91% 43.33% 22.22%

Flagler Total 799 1199 2618 421 68 3 0

% of State 0.48% 0.54% 0.52% 0.51% 0.50% 0.38% 0.00%

% of Selected Area 3.74% 4.77% 4.33% 8.90% 9.04% 10.00% 0.00%

Lake Total 3427 5316 13941 535 64 2 0

% of State 2.07% 2.40% 2.79% 0.65% 0.47% 0.26% 0.00%

% of Selected Area 16.03% 21.13% 23.05% 11.31% 8.51% 6.67% 0.00%

Seminole Total 4107 4186 9811 956 160 8 1

% of State 2.48% 1.89% 1.97% 1.17% 1.17% 1.02% 1.10%

% of Selected Area 19.21% 16.64% 16.22% 20.21% 21.28% 26.67% 11.11%

Orange Total 8649 6152 18020 1366 205 4 6

% of State 5.23% 2.78% 3.61% 1.67% 1.50% 0.51% 6.59%

% of Selected Area 40.45% 24.45% 29.79% 28.87% 27.26% 13.33% 66.67%

538 199 22 -1 -3

Area total 21381 25161 60493 4731 752 30 9

1.23% -1.93% 0.89% 4.21% 2.93% -3.33% -33.33%

% of State 12.92% 11.37% 12.12% 5.78% 5.50% 3.83% 9.89%

Recreational Vessel Registration by County (2007)

Cost Breakdown Items Description Estimate Actual

1 New Dock Construction 503,542 503,542 1a Piles - Material 1b Pile Installation 1c Timber - Material 1d Timber - Installation 1e Lumber - Material 1f Lumber - Installation

2 Mobilization 51,000 51,000 3 Demolition 24,000 24,000 4 New Water System 11,887 11,887 5 New Fire System 14,567 14,567 6 New Telephone System 11,845 11,845 7 New Cable System 7,577 7,577 8 Electrical System Design 18,790 18,790 9 Pedestals Delivered 21,850 21,850

10 FPL Transformer 23,460 23,460 11 Site Work 47,550 47,550 12 Electrical System Installation 26,800 26,800 13 Ladders 3,102 3,102 14 4' to 3' Template 4,300 4,300 15 Testing 17,500 17,500 16 Concrete Pile Attachment 1,777 1,777 17 Fire System Design 12,570 12,570 18 Access Panels 3,477 3,477

Cost Breakdown Cont’d Items Description Estimate Actual 19 Dock Box Numbers 2,357 2,357 20 SS Piping on Fuel System 3,900 3,900 21 Outside Decking 53,000 53,000 22 Decking Labor 94,000 94,000 23 Electrical Conduit 115,000 115,000 24 Drainage 54,000 54,000 25 Outside Lighting 27,000 27,000 26 Sub Grade 12,600 12,600 27 Storm Drain Vault 103,600 103,600 28 Head Walls 121,000 121,000 29 Curb & Flumes 29,000 29,000 30 Landscaping 40,000 40,000 31 Asphalt Layover 14,500 14,500 32 Striping & Wheel Stop 17,500 17,500 33 Concrete Pavers & Sidewalks 24,000 24,000 34 Sewer & Water Lines 48,600 48,600 35 As builts & Surveys 22,000 22,000 36 Fuel Tanks 56,000 56,000 37 Permit & Fees 45,000 45,000 38 Slip Allocation Fee 102,000 102,000 39 Erosion Control 9,000 9,000 40 Misc. Items 50,000 50,000 41 Contractor Fee 375,000 375,000

TOTAL: 2,607,651 2,607,651

Contact Details

Eddy A. Dingman Marina/Business Broker + 847 987 6626 Direct + 781 810 9653 eFax [email protected]

Valerie R. Rivera Marina Broker Associate + 847 313 4620 Direct + 781 609 4679 eFax [email protected]

Documents

Intracoastal Marina PRINT-2 copy