317 tarpon avenue, tarpon springs, fl 34689 · confidential offering memorandum • april 14, 2020...

CONFIDENTIAL OFFERING MEMORANDUM • APRIL 14, 2020

Grimaldi Commercial Realty Corp • 115 W Bearss Ave • Tampa, FL 33613 • 813.882.0884grimaldicommercialrealty.com

317 Tarpon Avenue, Tarpon Springs, FL 34689

15-UNIT APARTMENT COMPLEX FOR SALE (SELLER FINANCING AVAILABLE!)

David Rosenthal Kari L. Grimaldi/ Broker813.882.0884 [email protected] [email protected]

THE DOWNTOWN TARPON AVENUE APARTMENTS FOR SALE! SELLER FINANCING AVAILABLE!

https://www.grimaldicommercialrealty.com/index.php


MULTIFAMILY PROPERTY FOR SALE

2

presented by:

PROPERTY INFORMATION 3

FINANCIAL ANALYSIS 8

LOCATION INFORMATION 13

ADVISOR BIOS 17

AssociateO: 813.882.0884C: 813.245.7333E: [email protected]

David Rosenthal

President/ BrokerO: 813.882.0884C: 813.376.3386E: [email protected]

Kari L. Grimaldi/ Broker

The information contained in the following offering memorandum is proprietary and strictlyconfidential. It is intended to be reviewed only by the party receiving it from GrimaldiCommercial Realty and it should not be made available to any other person or entity withoutthe written consent of Grimaldi Commercial Realty.

By taking possession of and reviewing the information contained herein the recipient agrees tohold and treat all such information in the strictest confidence.

The recipient further agrees that recipient will not photocopy or duplicate any part of theoffering memorandum. If you have no interest in the subject property, please promptly returnthis offering memorandum to Grimaldi Commercial Realty.

This offering memorandum has been prepared to provide summary, unverified financial andphysical information to prospective purchasers, and to establish only a preliminary level ofinterest in the subject property.

The information contained herein is not a substitute for a thorough due diligenceinvestigation.

Grimaldi Commercial Realty has not made any investigation, and makes no warranty orrepresentation with respect to the income or expenses for the subject property, the futureprojected financial performance of the property, the size and square footage of the propertyand improvements, the presence of absence of contaminating substances, PCBs or asbestos,the compliance with local, state and federal regulations, the physical condition of theimprovements thereon, or financial condition or business prospects of any tenant, or anytenant’s plans or intentions to continue its occupancy of the subject property.

The information contained in this offering memorandum has been obtained from sources webelieve reliable; however, Grimaldi Commercial Realty has not verified, and will not verify, anyof the information contained herein, nor has Grimaldi Commercial Realty conducted anyinvestigation regarding these matters and makes no warranty or representation whatsoeverregarding the accuracy or completeness of the information provided.

All potential buyers must take appropriate measures to verify all of the information set forthherein.

Prospective buyers shall be responsible for their costs and expenses of investigating thesubject property.

CONTENTS CONFIDENTIALITY & DISCLAIMER



TABLE OF CONTENTS


PROPERTY INFORMATION


SECTION 1 • PROPERTY INFORMATION

4

OFFERING SUMMARY

Sale Price: $1,035,000

Number Of Units: 15

Cap Rate 2021: 10%

Cash-on-cash-return 2021: 21%

Year Built: 1916

Building Size: 6,928 SF

Renovated: 2018

Zoning: MULTI-FAMILY

Market: TARPON SPRINGS

Traffic Count: 19,000

PROPERTY OVERVIEWTHE DOWNTOWN TARPON AVENUE APARTMENTS IS A 15-UNIT, TWO BUILDINGAPARTMENT COMPLEX LOCATED IN DOWNTOWN TARPON SPRINGS, FL. THEPROPERTY HAS BEEN RECENTLY RENOVATED AND IS CURRENTLY 100% OCCUPIED.THERE ARE A TOTAL OF 15 1-BEDROOM/1-BATHROOM UNITS ALL IN GREATCONDITION. LOCATED ON THE MAIN DRAG IN DOWNTOWN TARPON SPRINGS, THEREIS FANTASTIC RENTAL DEMAND FOR THESE UNITS GIVEN THE BUILDINGS PRIMELOCATION. DUE TO THIS AMAZING LOCATION, THE PROPERTY VALUE WILL ONLYCONTINUE TO CLIMB AS THERE ARE VERY FEW APARTMENT BUILDINGS FOR SALE INTHE HEART OF DOWNTOWN.

THE PROPERTY CONSISTS OF SEVERELY UNDER MARKET RENTAL RATES FOR THE AREA,MAKING THIS AN INCREDIBLE VALUE-ADD OPPORTUNITY FOR A BUYER. WHILE ALLTENANTS ARE CURRENTLY ON YEARLY LEASES, ALMOST 50% OF THE LEASES WILLEXPIRE WITHIN THE NEXT 3-5 MONTHS. THIS CREATES THE PERFECT SITUATION FORTHE BUYER TO INCREASE THE RENTAL RATES OF THE SHORT-TERM LEASES. WHILEKEEPING THE OTHER LEASES IN-PLACE FOR SECURITY. THE CURRENT RENTAL RATESARE APPROXIMATELY $100-$200 LOWER THAN THE AVERAGE RENTAL RATE INDOWNTOWN TARPON SPRINGS. THIS CREATES MASSIVE UPSIDE FOR A BUYER. WHOWILL BE ABLE TO INCREMENTALLY RAISE THE RENTAL RATES OF THE BUILDING ANDINCREASE THEIR NOI.

GIVEN THE ABILITY TO INCREASE THE RENTAL RATES AT THE PROPERTY, A BUYER CANOBTAIN A CAP RATE OF NEARLY 10% AND A CASH-ON-CASH RETURN OFAPPROXIMATELY 21% BY EARLY 2021! THE TARPON AVE. APARTMENTS HAS SO MUCHUPSIDE! YOU RARELY SEE AN APARTMENT COMPLEX FOR SALE IN THE HEART OFDOWNTOWN WHERE A BUYER CAN EASILY OBTAIN A 10% + CAP RATE JUST BY RAISINGTHE RENTAL RATES TO THE AVERAGE MARKET RATE!



EXECUTIVE SUMMARY




5

SELLER FINANCING AVAILABLE!

ONE OF THE BEST FEATURES OF THIS DEAL IS THE FACT THAT THE SELLER IS WILLING TO OFFER THE OPTION OF SELLERFINANCING. THE AMAZING TERMS THE SELLER IS OFFERING (50% DOWN PAYMENT, 30-YEAR AMORTIZATION, 2-YEAR BALLOON,4.75% FIXED IR, INTEREST ONLY PAYMENTS) ARE BETTER THAN YOU WILL FIND AT ANY BANK IN TOWN! THESE TERMS WILL ALLOWTHE BUYERS CASH-ON-CASH RETURN TO SKYROCKET, ESPECIALLY AFTER THE RENTAL RATES ARE INCREASED.

SELLER FINANCING APPROXIMATE TERMS AVAILABLE:

50% DOWN, 4.75% IR (INTEREST ONLY), 5-YEAR BALLOON!

FURTHERMORE, THE SELLER IS OFFERING THE OPTION OF INTEREST ONLY PAYMENTS, GIVING THE BUYER THE ABILITY TODECREASE THEIR MONTHLY DEBT SERVICE PAYMENT WHILE INCREASING THEIR OVERALL RETURN! USING THE INTEREST ONLYOPTION, THE BUYER CAN OBTAIN AN INSANELY LOW MONTHLY DEBT SERVICE PAYMENT OF UNDER $2700 PER MONTH! LASTLY,THE FACT THAT THE RATE IS FIXED ALLOWS THE BUYER TO KEEP THE EXACT SAME RATE FOR THE FULL LIFE OF THE LOAN, WHICH ISALMOST IMPOSSIBLE TO FIND USING CONVENTIONAL FINANCING IN THIS MARKET! YOU CANNOT FIND TERMS LIKE THISANYWHERE IN THIS MARKET, AND AS INTEREST RATES RISE, THE ABILITY TO LOCK IN AN AMAZING RATE ONLY ADDS TO THEMASSIVE UPSIDE THIS PROPERTY HAS! THE PROPERTY WAS RECENTLY RENOVATED IN 2017 AND 2018. THE RECENT RENOVATIONSINCLUDE BUT ARE NOT LIMITED TO: ROOFS ON BOTH BUILDINGS WERE REPLACED IN 2016, UPDATED WINDOW A/C UNITS INALMOST EVERY UNIT, NEW LAMINATE FLOORING, BATHROOM & KITCHEN UPGRADES, EXTERIOR AND INTERIOR PAINT, AND NEWHOT WATER HEATERS. ALSO, THE PLUMBING AT THE PROPERTY IS IN GOOD WORKING CONDITION AND UPDATES TO THEPLUMBING WERE MADE IN 2017 TO BOTH BUILDINGS. THESE RENOVATIONS ALONE WILL ALLOW A BUYER TO INCREASE THERENTAL RATES ON-SITE WITHOUT SPENDING MUCH CAPITAL INITIALLY! THE PROPERTY HAS AN ON-SITE LAUNDRY ROOM THAT ISCURRENTLY FREE FOR TENANTS TO USE. ONE WAY TO MAXIMIZE THE UPSIDE THIS PROPERTY HAS IS TO MAKE THE LAUNDRYMACHINES COIN-OPERATED, WHICH COULD PRODUCE AS MUCH AS $4,000 A YEAR IN EXTRA INCOME AT THE PROPERTY! TENANTSARE RESPONSIBLE FOR ALL ELECTRIC EXPENSES AT THE PROPERTY, WHILE THE OWNER PAYS FOR ALL WATER, SEWER AND TRASHON-SITE. ALL UNITS ARE SEPARATELY METERED AS WELL!



PROPERTY OVERVIEW




6

LOCATION OVERVIEW

THE TARPON AVENUE APARTMENTS SITS IN A PRIME LOCATION IN DOWNTOWN TARPONSPRINGS! TARPON AVENUE IS THE MAIN ROAD IN DOWNTOWN TARPON SPRINGS, WHERE MOSTOF THE CITY’S BEST RETAIL SHOPS, RESTAURANTS, AND RESIDENTIAL RENTAL UNITS ARELOCATED. TARPON SPRINGS OVERLOOKS THE GLISTENING ST. JOSEPH SOUND, OFF THE GULF OFMEXICO. WHILE TARPON SPRINGS IS FAMOUS FOR ITS HISTORICAL LANDMARKS AND TOURISTATTRACTIONS, TARPONS SPRINGS IS MOST NOTORIOUS FOR ITS LARGE RESIDENTIAL POPULATIONALONG FLORIDA’S GULF COAST. THE CITY HAS AN AVERAGE RESIDENTIAL RENTAL RATE OFAPPROXIMATELY $1,294 PER MONTH, AND ALMOST 45% OF THE RESIDENTS ARE RENTERS. THISBODES WELL FOR PROPERTY OWNERS IN THE AREA AS SO MUCH OF THE POPULATION ARENON-HOME OWNERS.

TOURIST ATTRACTIONS AND LANDMARKS INCLUDE FRED HOWARD PARK, MULTIPLE ELEMENTARYSCHOOLS AND COLLEGES, SAINT PETERSBURG-CLEARWATER INTERNATIONAL AIRPORT, STAFFORDHOUSE MUSEUM, SUNSET BEACH, AND WORLD FAMOUS TARPON SPRINGS SPONGE DOCKS!



LOCATION OVERVIEW




7

SALE HIGHLIGHTS

• 15-UNIT APARTMENT BUILDING IN THE

HEART OF DOWNTOWN TARPON SPRINGS!

• LOW RENTAL RATES, GIVING THE BUYER

MASSIVE UPSIDE POTENTIAL!

• ABILITY TO INCREASE CAP RATE TO OVER 12%

AND CASH-ON-CASH RETURN TO

APPROXIMATELY 24%+ BY 2022!

• AMAZING SELLER FINANCING TERMS

AVAILABLE!

• 100% OCCUPIED!

• PERFECT MIX OF BOTH LONG-TERM AND

SHORT-TERM LEASES IN-PLACE, GIVING THE

BUYER THE ABILITY TO RAISE RENTAL RATES

IMMEDIATELY!

• ROOFS ON BOTH BUILDINGS WERE

REPLACED IN 2016!

• PRIME LOCATION WITH FRONTAGE ON

TARPON AVENUE.

• ONE-OF-A-KIND VALUE-ADD OPPORTUNITY!



SALE HIGHLIGHTS!


FINANCIAL ANALYSIS


SECTION 2 • FINANCIAL ANALYSIS

9



RENT ROLL




10



INCOME STATEMENT




11



INTERIOR PHOTOS




12



ADDITIONAL PHOTOS


LOCATION INFORMATION


SECTION 3 • LOCATION INFORMATION

14

15-UNIT APARTMENT COMPLEX FORSALE (SELLER FINANCING

AVAILABLE!)



REGIONAL MAP




15



LOCATION MAPS




16



AERIAL MAPS


ADVISOR BIOS


SECTION 4 • ADVISOR BIOS

18

115 W Bearss AveTampa, FL 33613T 813.882.0884C [email protected]

PROFESSIONAL BACKGROUND

David began his career at Ernst & Young, David serving as a Big FourAccountant, focusing on client services and analyzing Financial Statements.Before joining Grimaldi Commercial Realty, David worked with many local RealEstate Investment Trusts, learning the financial side of the Real Estate market.

Experience in the following:Retail Sales & LeasesFinancial PlanningReal Estate Investment TrustsDividend Reinvestment Plans & Dividend Payout RatiosSeller and Investor FinancingContract negotiations and due diligenceInvestment & Financial AnalysisProperty Valuation>

EDUCATION

David graduated from Tulane University in New Orleans, Louisiana, where hereceived a Bachelor's in Finance and a Masters in Accounting.A Tampa native since 1991, David attended Tampa Preparatory High School inDowntown Tampa where he played Soccer, Basketball, and ran Cross Country.When he is not working, David enjoys watching sports, working out and playinggolf.

MEMBERSHIPS & AFFILIATIONS

David is an outgoing individual whose drive and passion are evident in hispersistence to provide outstanding service. His business is built on: Dedication,Communication, Determination, & Trust while embodying the ability to caterand adapt to all of his client's Real Estate needs.

DAVID ROSENTHAL

Associate



ADVISOR BIO & CONTACT 1



SECTION 4 • ADVISOR BIOS

19

115 W Bearss AveTampa, FL 33613T 813.882.0884C [email protected] #BK3076744

PROFESSIONAL BACKGROUND

Kari Grimaldi is a Managing Broker/President of Grimaldi Commercial Realty Corp. andcommercial real estate expert. Kari has quickly climbed the ranks of who’s who inTampa Bay Area Commercial Real Estate to become a Top Producer. Learning & joiningthe family business at an early age, Kari understands the importance of networkingand building relationships, and has accumulated 20+ years of experience and in-depthknowledge to execute and navigate commercial real estate transactions for Sellers,Buyers, and Landlords/Tenants from inception to closing. Kari has an extensive resumewith some of the highlights listed below:

Areas of Expertise:Office and Build to Suit Sales & LeasingMedical Office Sales & LeasingResale & Leasing of Office ParksRetail Sales & LeasingIndustrial Sales & LeasingMulti family InvestmentsSingle NNN National InvestmentsLand & Commercial DevelopmentForeign Investors & Investment SpecialistSeller Finance and Creative Financing1031 & Reverse ExchangesShort Sales & Distressed/Bank-owned assets

As a commercial real estate owner and investor herself, Kari knows first hand how toguide others through the process, and negotiate and close transactions successfully.Kari has a vast portfolio of closed transactions in all sectors of the commercial market,and is a multi-million dollar sales producer.

EDUCATION

A Florida native, Kari earned her Bachelors at University of Florida in Management andPsychology, and a Masters at University of South Florida. A consummate professional,Kari is continually educating herself on the latest economic and market trends withcontinuing education, seminars and networking.

MEMBERSHIPS & AFFILIATIONS

Member of NAR, FAR, and FGCAR- Association of RealtorsREIC Member- Real Estate Investment CouncilCCIM Candidate- Certified Commercial Investment MemberICSC Member- International Council of Shopping Centers

KARI L. GRIMALDI/ BROKER

President/ Broker



ADVISOR BIO & CONTACT 2


317 tarpon avenue, tarpon springs, fl 34689 · confidential offering memorandum • april 14, 2020...

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