59-85 NW 36TH ST MIAMI, FL 33127

59-85 NW 36TH ST MIAMI, FL 33127
metro1.com
Table of Contents
Executive Summary
Zoning Analysis
Location Map
Aerials
Development Map
Financials
Space Layout
Market Overview
Wynwood
Wynwood Timeline
Design District
Design District Timeline
3
5
6
7
10
11
14
22
24
25
26
2
Metro 1 Commercial is proud to exclusively represent
for sale the LMNT COMPLEX, a multi-use property in
the heart of three of the most exciting neighborhoods
in MIAMI, The Design District, Midtown and Wynwood!
The multi-purpose property is composed of a large
indoor and outdoor event space which includes a full
catering restaurant, gallery, production studio, high end
recording studio, and creative office space suites. The
property is being sold with all the extremely difficult to
obtain event production permits, liquor license, future
space booking contracts, FF&E’s, and the approved
occupancy of nearly 3,000 people.
This Property is an excellent opportunity for an OwnerUser in the hospitality industry for such uses as nightclub,
restaurant or bar. Further, it can also be very interesting
for an investor/developer to earn a solid income with an
eventual development in the future.
Building Size: +/-13,680 SF
Lot Size: 28,427
Zoning: T5-O
Asking Price: $12.9 M
Proforma Cap Rate Y1: 5.4%
3
The Building contains:
•
3,000 SF Gallery
•
2,000 SF Production Studio
•
State of the art Recording Studio
•
A fully equipped restaurant with covered outdoor dining area
•
5 Studio Offices
•
Mezzanine Office Space
•
Large Workshop with Patio
•
Equipment Storage Room
4
ZONING ANALYSIS
Property Addresses:
59 NW 36 ST
77 NW 36 ST
85 NW 36 ST
Folios:
01-3124-021-1790
01-3124-021-1760
01-3124-021-1750
Zoning: T5-O
Total Building Size: 13,680 SF
Lot Size: 28,427 SF
Gross Dev (SF): 113,708
Max Density: 42
Maximum Height: 5 Stories
Uses Allowed:
Residential
Multifamily
Hospitality
Office
Retail
Restaurant.
ZONING ANALYSIS
5
LOCATION
This building is located in
the EPICENTER of ARTS,
ENTERTAINMENT, FASHION
AND CULTURE and has
incredible access to all major
highways including I-95, I-395,
Biscayne Blvd, N. Miami Avenue
and the Julia Tuttle Expressway
that is the main connection
to Miami Beach and Miami
International Airport.
LOCATION
6
AERIALS
7
8
9
DEVELOPMENT CONTEXT MAP
DEVELOPMENT CONTEXT MAP
10
FINANCIALS
PROFORMA
Net Operating Income :
Rentable Space: 3% increase annually
Year 1
Square Feet
Year 2
Year 3
Year 4
Year 5
Restaurant + Outdoor Seating Area*
3,825
$
191,250
$
196,988
$
202,897
$
208,984
$
Production Studio
1,650
$
82,500
$
84,975
$
87,524
$
90,150
$
92,854
Art Gallery
2,205
$
110,250
$
113,558
$
116,964
$
120,473
$
124,087
Recording Studio
400
$
48,000
$
49,440
$
50,923
$
52,451
$
54,024
Office Suite #1
500
$
15,000
$
15,450
$
15,914
$
16,391
$
16,883
Office Suite #2
500
$
15,000
$
15,450
$
15,914
$
16,391
$
16,883
Office Suite #3
500
$
15,000
$
15,450
$
15,914
$
16,391
$
16,883
Ofice Suite #4
500
$
15,000
$
15,450
$
15,914
$
16,391
$
16,883
$
285,000
$
293,550
$
302,357
$
311,427
$
320,770
$
777,000
$
800,310
$
824,319
$
849,049
$
874,520
38,850
$
40,016
$
41,216
$
42,452
$
43,726
738,150
$
760,295
$
783,103
$
806,596
$
830,794
120,238
$
123,845
$
127,561
$
131,387
$
135,329
Outdoor Special Event Rentals
Potential Rent
10,080
Less,Vacancy @ 3%
Effective Rental Income
$
215,254
Operating Expenses: 3% increase annually
Reimburseable
Non-Reimburseable
41,762
Reserves
Total Operating Expenses
Net Operating Income (NOI)
Cap Rate
$
44,305
45,634
47,003
2,500
$
2,500
$
2,500
$
2,500
$
2,500
164,500
$
169,360
$
174,366
$
179,522
$
184,832
693,888
$
714,780
$
736,298
$
758,462
$
781,291
5.4%
FINANCIALS - PROFORMA
43,015
5.5%
5.7%
11
5.9%
6.1%
FINANCIALS
EXPENSES
Expenses
Taxes
$
54,000
Reimbursable SQFT
8,080
80.2%
Insurance
$
18,000
Non-Reimbursable SQ-FT
2,000
19.8%
CAM
$
78,000
Total
10,080
Legal
$
6,000
Accounting LLC.
$
6,000
Reimburseable Expenses
Amount
Avg. $/psf
Year 1
Year 2
Year 3
Year 4
Year 5
Taxes
$
43,286
$
3.2
$
43,285.71
$
44,584.29
$
45,921.81
$
47,299.47
$
48,718.45
Insurance
$
14,429
$
1.1
$
14,428.57
$
14,861.43
$
15,307.27
$
15,766.49
$
16,239.48
CAM
$
62,524
$
4.6
$
62,523.81
$
64,399.52
$
66,331.51
$
68,321.45
$
70,371.10
Total
$
120,238
$
8.8
$
120,238.10
$
123,845.24
$
127,560.60
$
131,387.41
$
135,329.04
Non-Reimburseable Expenses
Amount
Avg. $/psf
Year 1
Year 2
Year 3
Year 4
Year 5
Taxes
$
10,714
$
0.8
$
10,714.29
$
11,035.71
$
11,366.79
$
11,707.79
$
Insurance
$
3,571
$
0.3
$
3,571.43
$
3,678.57
$
3,788.93
$
3,902.60
$
4,019.67
CAM
$
15,476
$
1.1
$
15,476.19
$
15,940.48
$
16,418.69
$
16,911.25
$
17,418.59
Legal
$
6,000
$
0.4
$
6,000
$
6,180
$
6,365
$
6,556
$
6,753
Accounting LLC
$
6,000
$
0.4
$
6,000
$
6,180
$
6,365
$
6,556
$
6,753
Total
$
29,762
$
3.1
$
41,761.90
$
43,014.76
$
44,305.20
$
45,634.36
$
47,003.39
$
162,000
$
166,860
$
171,866
$
177,022
$
182,332
Total Operating Expenses
FINANCIALS - EXPENSES
12
12,059.02
FINANCIALS
PROFORMA RENT ROLL
Rentable Sq.
Ft.
Unit
Base PSF
Base Rent
CAM
RE Taxes
Ins.
Total
Restaurant + Outdoor Seating Area*
3,825
$
50.00
$
191,250
$
21,803
$
4,973
$
11,858 $
Production Studio
1,650
$
50.00
$
82,500
$
9,405
$
2,145
$
5,115 $
Art Gallery
2,205
$
50.00
$
110,250
$
12,569
$
2,867
$
6,836 $
243,882
$
251,199
$
99,165
$
102,140
$
105,204
$
108,360
$
111,611
132,521 $
52,040 $
132,521
$
136,496
$
140,591
$
144,809
$
149,153
52,040
$
53,601
$
55,209
$
56,866
$
58,571
20,050 $
20,050 $
20,050
$
20,652
$
21,271
$
21,909
$
22,566
20,050
$
20,652
$
21,271
$
21,909
$
22,566
20,050 $
20,050 $
20,050
$
20,652
$
21,271
$
21,909
$
22,566
20,050
$
20,652
$
21,271
$
21,909
$
22,566
$
285,000 $
285,000
$
293,550
$
302,357
$
311,427
$
320,770
$
878,808
878,808
$
905,172
$
932,327
$
960,297
$
989,106
$
120.00
$
48,000
$
2,280
$
520
$
1,240 $
$
30.00
$
15,000
$
2,850
$
650
$
1,550 $
Office Suite #2
500
$
30.00
$
15,000
$
2,850
$
650
$
1,550 $
Office Suite #3
500
$
30.00
$
15,000
$
2,850
$
650
$
1,550 $
Ofice Suite #4
500
$
30.00
$
15,000
$
2,850
$
650
$
1,550 $
14,250
$
20.00
$
285,000
$
777,000
Total Potential
Rentable Indoor Area
$
57,456
$
13,104
$
31,248
10,080
Common Area
3,600
Rentable Outdoor Area
14,250
Total Indoor Area
13,680
FINANCIALS - PROFORMA RENT ROLL
Year 5
$
500
N/A
Year 4
236,779
400
N/A
Year 3
$
Office Suite #1
N/A
Year 2
229,883
Recording Studio
Outdoor Special Event Rentals
Year 1
229,883 $
99,165 $
13
$
258,735
SPACE LAYOUT
SPACE LAYOUT
14
RECORDING STUDIO
LMNT Studios is a state of the art Recording Studio secluded
in the heart of Midtown Miami. The privacy of this modest
Moroccan influenced studio exhumes calming and soothing
vibes allowing creativity to flow to its fullest potential. The
perfect facility for any artist, engineer, or producer looking to
achieve professional sound.
The studio is equipped with a highly praised SSL AWS 900
Console, Pro Tools HD, Dynaudio monitors, as well as a plethora
of digital audio plug-ins.
BUILDING HIGHLIGHTS
15
PRODUCTION STUDIO
The Production Studio at LMNT is a 1,700 SF space ideal for
any project including photo shoots, music videos, commercials
and much more. The room features a built in lighting truss and
a 3-wall cyclorama. It’s a dynamic space that is not only useful
for production needs, but also transforms into an event space.
1,650 SF
• 275 guests standing
• 200 guests seated and standing
• Green screen capabilities
• 13 FT ceiling
BUILDING HIGHLIGHTS
16
COVERED PATIO
The Outdoor Patio is equipped with bright lighting, a 20 FT.
ceiling fan, a built in bar, a balcony great for DJ setups, and it
also connects to the kitchen.
2,750 SF
• 400 guests standing
• 300 guests seated and standing
• Connects to kitchen
• 20 FT ceiling fan
• Built in bar
BUILDING HIGHLIGHTS
17
RESTAURANT/LOUNGE SPACE
The Restaurant/Lounge Space is a 1,050 SF space that is
usually combined with the Art Gallery Space. It is equipped
with superb lighting, surround sound speakers, a full bar and
connects to some of the rest rooms.
1,050 SF
• 175 guests standing
• 125 guests seated and standing
• Portable bar
BUILDING HIGHLIGHTS
RESTAURANT/LOUNGE
18
ART GALLERY SPACE
The Art Gallery Space is a 2,500 SF space that can fit a variety
of uses including an art gallery and entertainment space.
2,200 SF
• 350 guests standing
• 275 guests seated and standing
• High ceiling
BUILDING HIGHLIGHTS
ART GALLERY SPACE
19
GARDEN & PARKING LOT
The garden & parking lot can be used for outdoor gatherings,
concerts, special events and art fairs.
14,250 SF
• 2250 guests standing
• 1250 guests seated and standing
BUILDING HIGHLIGHTS
20
21
MARKET OVERVIEW
WYNWOOD
Wynwood is a unique neighborhood located within the urban
core of the City of Miami and is roughly bounded by NW 36th
Street (north), NW 20th Street (south), I-95 (west) and NE 2nd
Avenue (east). Wynwood is comprised of predominantly midcentury industrial manufacturing warehouses.
Wynwood used to be the manufacturing and logistics center of
Greater Miami. After the industrial real estate market moved West
to the Doral and Medley area, the buildings in Wynwood started
to age and new uses started to become relevant by forward
thinking property owners who renovated these buildings to
attract gallery spaces and creative office.
Given its central location and proximity to expanding
neighborhoods like Brickell, the Design District, Midtown and
Edgewater, Wynwood started to become an epicenter for the
arts. Today, Wynwood houses over 70 art galleries, Wynwood
has been experiencing rapid gentrification due to its emergence
as Miami’s main art district.
MARKET OVERVIEW - WYNWOOD
22
MARKET OVERVIEW
WYNWOOD
There are certain trends and phenomenon that
helped fuel this resurgence of this historically
depressed neighborhood.
1) ART BASEL:
Art Basel is the world’s most
recognized modern an contemporary art show, which
began in 1970 in Basel Switzerland. In 2002 Art Basel
debuted in Miami Beach immediately establishing it as the
premier art show in the Americas. Given Miami’s central
location within the two continents, Art Basel helped Miami
reemerge as a international destination for arts and culture
and bridge the North and South American cultures. Given
the temporary nature of the fair, Wynwood was the perfect
stage to house all of the temporary art shows, exhibitions
and shows that were not at the main Art Basel Fair in Miami
Beach. Attendance to the main event now attracts 70,000
visitors, but as the show has evolved over time, more than
500,000 people (plus all of the South Florida Community)
have been visiting the city and have been attending all of
the satellite fairs, galleries and pop up events taking place
throughout the week all over Miami.
3) SECOND SATURDAYS ARTWALK: As more galleries started
to call Wynwood its home, a monthly event was formed by independent
artists in order to promote their spaces and bring more customers into their
business and the neighborhood in general. This event focused mainly on
the galleries located in the main core of Wynwood, which is NW 2 Ave.
Over time, this event became more popular and now attracts upwards of
3,000-5,000 per evening. This event also paved the way for retail oriented
business to move in to the neighborhood so that they could capitalize on the
increased traffic and walkability that this event brought to the neighborhood.
4) THE EVOLUTION OF THE DESIGN DISTRICT: The
evolution of The Design District into a Luxury Fashion Destination. As the
Design District evolved into a Luxury Fashion destination, many of the
creative tenants and retailers that called that called it home were displaced
because of rising rents that were targeting luxury retailers. Architecture firms,
art galleries, and furniture and design showrooms moved into Wynwood after
being in the Design District.
2) STREET ART MOVEMENT: As artists moved
in to the neighborhood, street art and graffiti started to
propagate and internationally recognized started to visit
Miami and use Wynwood’s industrial properties as an open
outdoor canvas. Today Wynwood is one of the largest
outdoor open-air museums in the world that attracts visitors
that experience an always-changing environment and art.
MARKET OVERVIEW - WYNWOOD
23
MARKET OVERVIEW
WYNWOOD
WYNWOOD DEVELOPMENT TIMELINE
1987- Bakehouse Art
Complex is founded and
opens on a former bakery
industrial complex.
1990- The Rubell Family
Collection moves to Miami
and acquires a former DEA
warehouse and renovated
it. Into a museum that not
only houses the world
renowned family collection
but also hosts very
recognized international
artists works.
2002 – Art Basel comes to
Miami Beach helping draw
people to Wynwood existing but
underground art scene.
2004 – Tony Goldman
starts acquiring properties
in Wynwood. Having
previously been involved
in the revitalization of New
York’s Soho neighborhood,
he brings a vision of a
similar concept to the
Wynwood Neighborhood.
2005 – Wynwood Lofts, a 36 unit,
4 story lofts building is developed
in the heart of Wynwood and
attracts creative users for LIVE/
WORK.
2007 – Cynergy Lofts
was built on N Miami Ave
featuring 100 Industrial
Style Units.
MARKET OVERVIEW - WYNWOOD
2009 – Wynwood Walls
is conceived by Tony
Goldman as way of
creating a public space
where pedestrians
could admire a
collection of graffiti
murals created by world
renowned street artists.
2011– Panther Coffee
opens its doors in
Wynwood and becomes
an epicenter for locals
and tourists. The Miami
Design District begins
the construction of is
first phase and raising
rents, causing some
tenants to leave and
enter the Wynwood
market.
2013 – Art Wynwood
is created in order to
attract art collectors in
Miami’s “low season”
and coincides with the
Yacht and Brokerage
show in Miami Beach.
Attendance each year
has been escalating.
The 2014 show had
32,000 visitors.
24
2012- Art Walk is
created to promote
galleries and business
in the district.
2013 - A majority of
property owners in
Wynwood vote to
designate Wynwood
as a Business
Improvement District.
MARKET OVERVIEW
DESIGN DISTRICT
The Design District is one of the fastest-growing luxury high
street retail markets in the United States. Once made up of
shuttered warehouses and facing urban decay, it has undergone
a remarkable transformation into a center for fashion, luxury, art,
design, and culture, inviting diverse groups of locals and tourists
attracted by the unique vibrancy of the area’s restaurants,
boutiques, and galleries.
Since the mid-1990’s, Craig Robins recognized the potential of
The Miami Design District and started to acquire buildings in
the neighborhood, and curate furniture and design brands and
juxtapose them with art galleries, fine restaurants and creative
users.
Elements that made the District so attractive were its pedestrianfriendly environment, easy access to the highway that connects
Miami to Miami Beach and the Miami International Airport,
proximity Downtown Miami, and the great visibility from the
highway.
MARKET OVERVIEW - DESIGN DISTRICT
25
MARKET OVERVIEW
DESIGN DISTRICT
DESIGN DISTRICT DEVELOPMENT TIMELINE
2008-2010 – DACRA
acquires the second round
of properties in the district
focusing on creating
a unified portfolio of
properties.
Mid 1990’S - 2010 –
DACRA/ Craig Robbins
begins acquiring large
buildings in the district
at $20 PSF and starts
curating design, and
furniture art tenants. He
holds these assets and
focuses in promoting
the Design District as a
destination. --- Buildings at
that time without inflation
were being bought for
$20-30 PSF.
May 2011 – Dacra files for a Special Area Plan for the Design District., requiring the
applicants to have 9 acres or more of contiguous land and allows the applicant to
modify the zoning in place. Dacra took advantage of this opportunity so that they
could change the use and density for the portfolio of properties. The development
proposed in the Sap was estimated to cost approximately $312 million exclusive of
land costs and developer fees.
December 2010 – Dacra partners with L Real Estate,
The real estate and capital arm of LVMH, the French
Multinational luxury goods conglomerate, forming
Design District Partners. The partnership was
structured in the following manner: LVMH acquired
50% of Dacra’s real estate portfolio. The portfolio
was comprised of 18 existing buildings and two
development sites totaling 457,533 SF of active
Retail space and development rights several million
of additional SF.
MARKET OVERVIEW - DESIGN DISTRICT
26
October 2014 – General
Growth Properties and
Ashkenazy Acquisition
Corp. acquired a 20
percent stake in the
Miami Design District.
The companies paid
$280 million thus valuing
the project at $1.4 billion.
MARKET OVERVIEW
DESIGN DISTRICT
DEVELOPMENT PHASES SUMMARY
Phase I – In order to accommodate the brands migration out of Bal Harbour Shops, portions of NE 40th ST are renovated
and 10 stores open up new stores including: Luis Vuitton, Hermes, Dior, Cartier, Rolex, Prada, Celine, Christian Louboutin.
Phase II – This phase consists of the renovation of 75,000 SF of existing space and the addition of approximately 240,000
SF of new retail space. On July of 2013 Dacra obtained a $302M loan, which in part is destined for construction of part of
the new phases.
Phase III - The third phase is currently being planned and is expected to come online by 2016. By then the district is
expected to house more than 120 luxury retailers, a boutique hotel, 15 to 20 restaurants, and multiple luxury condominiums.
This future expansion could result in Dacra owning 1.2 million SF with the potential of adding an additional 2 million SF of
space.
OTHER PROJECTS BEING DEVELOPED IN THE MIAMI
DESIGN DISTRICT:
As the Dacra project constantly evolves other players have entered the marketplace and have been acquiring properties
within the district including Thor Equities and Richard Lefrak, which have acquired approximately $75 million worth of
properties on the West Side of the District. The new Design District has tremendously increased value and investment in
the surrounding neighborhoods of Wynwood, Upper East Side, and Little River.
MARKET OVERVIEW - DESIGN DISTRICT
27
LMNT PHOTO GALLERY
28
For more info please contact:
TONY CHO
ceo / president
305.571.9991
[email protected]
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