The Residences at Lincoln Road - South Beach's Hidden Gem 1619 Meridian Avenue, Miami Beach, Florida, 33139 - LoopNet
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The Residences at Lincoln Road
South Beach’s Hidden Gem
1619 Meridian Avenue, Miami Beach, Florida, 33139
Introduction 02 Nestled in lush tropical landscape in the heart of the City Center are The Residences at Lincoln Road- South
Beach’s Hidden Gem. This property provides unique features to both tenants and Owners. This is the Closest
Location Map and Attractions 03 Multifamily Asset to Lincoln Road Mall providing quiet yet convenient residences for those supporting the
explosive growth of the City Center. The property is also flanked by City Owned Public Parking providing
Asset Overview 04 both convenience and safety. Future growth of the City Center will encompass the property and Upzoning
to Commercial Use can be anticipated with the growth of the Lincoln Road Mall Commercial Corridor.
Aerial Photographs 05
The Residences at Lincoln Road were originally constructed in 1936 and sit on a 7,500 square foot lot at the
Comparable Activity & Valuation 08 crossroads of Meridian Avenue (South Beach’s North/South Boulevard) and World-Famous Lincoln Road.
The building comprises four one-bedroom and eight junior one-bedroom apartments. The property has
Current Income & Expenses 10 been upgraded with a new roof, new impact doors and windows, new central A/C in every unit, new
paint, landscape, common areas, etc. Upside exists in interior renovations and raising rents to market level.
Pro Forma Income & Expenses 11
1619 Meridian was recertified in 2016 and the current owner has invested upwards of $300,000 in upgrades
Boundary Survey 12 to mechanical, roofing, and building systems. Of course, the property is in easy walking distance to virtually
all of South Beach’s main attractions including the Beach, Flamingo Park, Collins Avenue, Ocean Drive, the
Current Zoning Data 13 new Convention Center, Dining, Art and Architecture, and Premier People-Watching Opportunities.
Exterior Photographs 14 Known as “America’s Riviera,” South Beach attracts a wide array of those seeking a rarified atmosphere in
a lush sub-tropical setting. South Beach has also seen rising rents for the first quarter of 2021 and increased
Interior Photographs 15 demand for quality apartments from an international tenant base. The Residences at Lincoln Road gives
an investor the ability to acquire 12 watertight apartments in an unbelievable location where convenience,
Lower-Level Floor Plan 16 limited inventory, and growing demand keep the building fully leased and ensure asset appreciation.
Upper-Level Floor Plan 17
HIGHLIGHTS:
About Miami Beach 18 - Unbelievable Crossroads Location
About Miami 19
- Four 1BR & Eight Junior 1BR Apartments
- $300,000 in Recent Building Upgrades
Introduction
- Adjacent City-Owned Public Parking $2,400,000
- Upside in Rents and Interior Renovations
- Walk to Every South Beach Attraction
02
Location Map and Attractions
Bayshore Municipal Golf Course New Convention Center
SUBJECT
Sailing the Bay Lincoln Road Mall Promenade
Alton Road Commercial District Fun in the Sun
Flamingo Park Tree Lined Meridian Boulevard Collins Avenue Shopping District
Alton Road to Miami Causeway World Famous Ocean Drive
Address 1619 Meridian Ave, Miami Beach, FL 33139 Asking Price $2,400,000
Folio Number 02-3234-002-0451 Number of Units 12
One-Bedroom Units 4
Zoning Classification RM-1 Junior One-Bedroom Units 8
Allowable FAR 1.25 Price per Unit $ 200,000
Total Site Area 7,500 SF
Total Buildable Area 9,375 SF
Pro Forma Income $ 207,960
Existing Building Area 5,969 SF
Pro Forma Expenses $ 82,450
Latent FAR 3,406 SF
Pro Forma NOI $ 125,510
Current Cap Rate 4.3%
Historic District Flamingo Park
Stabilized Cap Rate 5.2%
Historic Status Contributing
Price per Square Foot of Land $ 320 Occupancy 95%
Price Per Square Foot of Building $ 402 Dade County Market Value $1,785,000
Price Per FAR Square Foot $ 256 Property Taxes for 2020 $32,133
Asset Overview
04
View of Subject Property from Meridian Avenue
The Residences at Lincoln Road provide the convenience of adjacent Public Parking, the security
of a completely fenced and gated premises, and the natural beauty of native Florida landscape.
05
The Beautiful Atlantic Ocean and Crystalline White Beach is just a few blocks away. No wonder Miami is the Cruise Capital of the World.
C O N V E N T I O N
C E N T E R
D I S T R I C T
SUBJECT
View of Subject Property Looking East
The Subject Property’s location in the heart of South Beach’s City Center ensures high demand & occupancy from businesses located on Lincoln
Road Mall, the Convention Center District, and the Hotels that line the crystalline white sands of Miami Beach.
The Magnificent Miami Skyline across Biscayne Bay, via The Venetian Causeway, is consistently voted #3 in the USA.
06
The Magnificent Miami Skyline across Biscayne Bay, via The Venetian Causeway, is consistently voted #3 in the USA.
SUBJECT
View looking West toward Biscayne Bay & Downtown Miami
The Lincoln Road Mall is the most heavily traveled Pedestrian Promenade in all of South Florida. Home to exclusive boutique shops, fine dining,
bars, cafés, galleries, and exceptional people watching- it is visited by over 6,000,000 visitors every year. This rarified environment provides an
unparalleled demand for rental apartments and nearby owners enjoy both stable growth and appreciation.
07
CURRENT ACTIVE LISTINGS Investment in Multifamily Housing is a numbers game where Return on Investment is the
primary driver for those shopping for multifamily assets. Strong fundamentals remain the best
Address Month Asking SF $/ SF Units Cost/Unit Yr Built Assessment MVR assurance of achieving the best value and the best price. Acquisitions in South Beach, like
New York City, are always desirable additions to any portfolio. While ROI, condition, and
1537 Jefferson ACTIVE $2,195,000 6,729 $326 12 $182,917 1950 $1,488,400 1.47 building class all play important roles, it is the South Beach Mystique that continues to draw
from a global audience and keeps appreciation on the rise.
940 8th Street ACTIVE $2,299,000 5,580 $412 12 $191,583 1940 $1,674,000 1.37
In determining the value of the subject property, a number of methods have been employed
848 Jefferson ACTIVE $3,490,000 6,895 $506 15 $232,667 1935 $1,841,000 1.90 to arrive at a reasonable and sustainable asking price. We begin by looking at recent
comparable sales and active listings in this submarket (South Beach Multifamily) to establish
RECENT COMPARABLE SALES an average value per unit and an average value per square foot which can then be applied
to the subject property.
1510 Jefferson 10/20 $1,400,000 6,395 $219 8 $175,000 1957 $1,822,282 0.77
Next, we have generated a pro forma financial model built around current income and
730 14 Place 11/19 $1,450,000 4,624 $314 8 $181,250 1933 $1,550,000 0.94 expenses (see page 11) to produce a Cap rate of 5.2% at asking price. Finally, we have
analyzed Dade County Market Values in relation to actual sales prices to establish a Market
1550 Meridian 9/19 $1,750,000 5,231 $335 8 $218,750 1937 $1,938,288 0.90 Value Ratio (MVR) for comparables within the surrounding area and for 1619 Meridian. The
results of these valuation methods are summarized below & detailed in the following pages.
600 12th 5/19 $2,350,000 7,054 $333 12 $195,833 1947 $1,655,000 1.42
1604 Michigan 2/19 $2,200,000 4,031 $546 10 $220,000 1935 $1,395,000 1.58 METHOD: Metric: Value: Total:
1. Average Unit Cost: 12 x $201,576 = $2,418,912
Total $17,134,000 46,539 85
2. Average Cost per SF: 5,969 SF x $368/SF = $2,196,592
Average= $368 $201,576 MVR= 1.29
3. Pro Forma Financial Model: See Page 11 = $2,360,700
4. Market Value Ratio: 1.29 x $1,729,000 = $2,230,410
SUBJECT ACTIVE $2,400,000 5,969 $402 12 $200,000 1936 $1,729,000 1.39
Comparable Market Activity
08
Flamingo
Park
SUBJECT
View Looking South to South Pointe and SoFi Districts
09
Monthly GSI: Annual Expenses:
APT # TYPE: RENT PROPERTY TAXES** $32,134
*1 1BR $1,325 INSURANCE *** $5,800
2 Junior 1BR $1,250 WATER/SEWER $9,134
3 1BR $1,200 ELECTRIC $1,165
4 Junior 1BR $1,195 WASTE MANAGEMENT $4,814
5 Junior 1BR $1,175 LANDSCAPE $700
6 Junior 1BR $1,375 PROPERTY MGMT**** $8,550
7 Junior 1BR $1,250 REPAIRS & MAINTENANCE $12,000
8 Junior 1BR $1,250 TECO GAS $1,360
9 Junior 1BR $1,295 PEST CONTROL $1,800
10 1 BR $1,175 ANNUAL INSPECTIONS $150
11 Junior 1BR $1,250 BUSINESS FEES & LICENSES $275
12 1BR $1,400 LEGAL & ACCOUNTING $835
Laundry $100
Misc Income $250 VACANCY @3% $5,576
Total: $15,490 Total: $84,293 *See pages 16 & 17 for unit layouts and sizes.
** Dade County Property taxes are for the year 2020
Total Scheduled Income: Total Expenses:
*** Insurance costs can vary significantly based on lender, carriers, required coverages,
Monthly $15,490 Monthly $7,024 business liability, etc. Cost reflected in I & E Report provided by Owner.
Annually $185,880 Annually $84,293
****Property Management fees are typically based on a negotiated percentage of gross
scheduled income. Current Management at The Residences operates on a flat fee basis.
CAP RATE = 4.2% NOI: $101,587
Current Income & Expenses
101619 Meridian Avenue
Miami Beach FL, 33139 Monthly Income: Annual Expenses:
APT # TYPE: RENT PROPERTY TAXES** $32,134
*1 1BR $1,500 INSURANCE *** $5,800
2 Junior 1BR $1,400 WATER/SEWER $9,134
3 1BR $1,500 ELECTRIC $1,165
4 Junior 1BR $1,400 WASTE MANAGEMENT $4,814
5 Junior 1BR $1,400 LANDSCAPE $700
6 Junior 1BR $1,400 PROPERTY MGMT**** $8,550
1619 Meridian Avenue
Miami Beach FL, 33139 7 Junior 1BR $1,500 REPAIRS & MAINTENANCE $12,000
8 Junior 1BR $1,400 TECO GAS $1,360
9 Junior 1BR $1,400 PEST CONTROL $1,800
10 1 BR $1,500 ANNUAL INSPECTIONS $150
11 Junior 1BR $1,400 BUSINESS FEES & LICENSES $275
12 1BR $1,500 LEGAL & ACCOUNTING $835
Laundry $80
Misc Income $300 VACANY @ 3% $6,365
* Pro Forma rents for Junior 1BR apartments are derived from the average of a 1BR and
Total: $17,680 Total: $85,082
a studio apartment within a ½ mile radius of the subject (see above).
**Dade County Property Taxes indicated are from the year 2020. Total Scheduled Income: Total Expenses:
*** Property Management fees are based on 6% of Gross Scheduled Income. However, Monthly $17,680 Monthly $7,090
Property Management fees can vary significantly depending on level of service desired Annually $212,160 Annually $85,082
and the quality of the Management Company itself.
CAP RATE = 5.3% NOI: $127,078
Pro Forma Income and Expenses
11Boundary Survey 12
Susan Askew, Miami Beach, 13 February, 2021: Seventeen developers have expressed
interest in building Class A office space on three municipal parking lots in Miami Beach
adjacent to Lincoln Road between Alton Road and Meridian Avenue. The City put out a
Request for Letters of Interest (RFLI) in November to test the waters as it seeks ways to
diversify an economy heavily dependent on tourism and hit hard in recent years by hurricanes,
Zika, and the more prolonged Covid Impacts.
The municipal surface lots for which the City sought expressions of interest include the P25,
P26, and P27 lots located in a four-block area to the north of Lincoln Road. Any development
would require replacement of the parking for paid public use. The City did not want specific
proposals or offers to develop the lots. Rather it sought expressions of interest only to
determine if an RFP (Request for Proposals) process would follow. At the same time, he said,
you’re taking parking lots that are “not pretty” and giving the City “the ability to take those
three lots and continue to knit this quilt that connects the Convention Center, the New World
Symphony, the cultural district, Museum District, Lincoln Road, Española Way, and
Washington Avenue (all surrounding the Residences at Lincoln Road).”
LINCOLN ROAD MALL
How Zoning Works
Zoning is the means by which City’s grow and create urban environments including City
Centers, Residential Districts, Parks, Schools, and Public Institutions. Zoning is not cast in
stone- as the above article illustrates- but is constantly changing to accommodate the changing
needs and desires of the communities they serve.
In the last few years everything North of Lincoln Road Mall has been rezoned to High Density
SUBJECT
Commercial (CD-3) except for the City property which is now slated for development. Once
these lots are subsumed by the City Center there is nowhere else to grow except South from
Lincoln Road Mall. Once up-zoned, 1619 Meridian may host a variety of uses including Short
Term Rentals, Retail, and Office Space.
Current Zoning Map & City Proposals
13Exterior Photographs 14
Interior Photographs
15562 SF First Floor Plan 16
Second Floor Plan
17Miami Beach is a coastal resort city located in Miami-Dade County, Florida. Miami Beach has a tropical climate with hot humid summers and warm dry
Incorporated on March 26, 1915, it is located on a series of natural and man- winters. Other than the Florida Keys, Miami Beach has the warmest winter
made barrier islands between the Atlantic Ocean and Biscayne Bay, the latter weather in the United States (mainland). The warm and sunny weather in Miami
separates the Beach from Miami city proper. The historic neighborhood of Beach and South Florida attracts millions of travelers from around the world from
South Beach, comprising the southern-most 2.5 square miles of Miami Beach, October through April. Sea surface temperatures range from 75 F in winter to 86
along with Downtown Miami and the port, collectively form the commercial
F in the summer/fall months. Miami Beach has the warmest ocean surf in the
center of South Florida. The current total population is 91,562, however,
U.S. annually. South Beach is well known as the playground of the rich and
Miami Beach hosted over nine million visitors in 2019 and boasts 25,000
famous as well as the world’s entertainment mecca. Real estate values continue
hotel rooms. Miami Beach has remained one of America's pre-eminent beach
their upward climb.
resorts for the past 100 years.
Mean Resident age 33139: 38.9 yrs March 2012 COL index: 117.2
Mean Resident Age in FL: 40.5 yrs Well above U.S. average: 100.0
In 1979, Miami Beach's Art Deco Historic District was listed on the National
Register of Historic Places. The Art Deco District is the largest collection of Art Avg. household size 33139: 1.7p Land area in square miles: 2.7
Avg. household size in FL: 2.6p Water area in square miles: 3.3
Deco architecture in the world comprising hotels, apartments and other
structures erected between 1923 and 1943. Mediterranean, Streamline Avg. AGI in 2010 in 33139 $89,607 RE property taxes for housing units
Avg. AGI in 2010 in FL $50,523 2010 in 33139: (1.2%) $4,175
Moderne, and Art Deco are all represented in the District. South Beach is Florida: ( 1.0%) $1,882
bounded by the Atlantic Ocean on the East, Lenox Court on the West, 6th Avg. Wages filed in 33139: $52,304
Avg. Wages filed in FL: $39,563 Median RE property taxes paid for
Street on the South and Dade Boulevard along the Collins Canal to the North. housing with mortgages in 2010:
The movement to preserve the Art Deco District's architectural heritage was 33139 population 2010: 32,255 5 (1.4%) $4,665
33139 population 2019: 34,450
led by former interior designer Barbara Capitman, who now has a street in Median RE property taxes paid for
Houses and Condos: 36,412 housing with no mortgage in 2010:
the District named in her honor.
Renter-occupied Apts: 16,452 5 5 (1.1%) $3,466
About Miami Beach
Note: Please be aware that the information included herein is deemed accurate but is not guaranteed or warranted in
any way. Also, this information is subject to change at any time without notice to recipients .
18Miami is a city located on the Atlantic coast in southeastern Florida and the Downtown Miami and South Florida are home to the largest concentration of
county seat of Miami-Dade County. The 42nd largest city proper in the United international banks in the United States, and is home to many large companies
States, with a population of 408,568, it is the principal, central, and most both nationally and internationally. The Civic Center is a major center for
hospitals, research institutes, medical centers, and biotechnology industries.
populous city of the Miami metropolitan area, and the most populous metropolis
For more than two decades, the Port of Miami, known as the "Cruise Capital
in the Southeastern United States. According to the U.S. Census Bureau, Miami's
of the World," has been the number one cruise passenger port in the world,
metro area is the seventh most populous and fourth-largest urban area in the
accommodating some of the world's largest cruise ships and operations, and
United States, with a population of around six million.
is currently the busiest in both passenger traffic and cruise lines
Miami is a major center and a leader in finance, commerce, culture, media, Miami has a tropical monsoon climate with hot and humid summers and short,
entertainment, the arts, and international trade. In 2010, Miami was classified as warm winters, with a marked drier season in the winter. Its sea-level elevation,
a Alpha- World City in the World Cities Study Group’s inventory. In 2010, Miami coastal location, position just above the Tropic of Cancer, and proximity to the
ranked seventh in the United States in terms of finance, commerce, culture, Gulf Stream shapes its climate. The wet season begins sometime in May,
ending in mid-October. During this period, temperatures are in the mid 80s to
entertainment, fashion, education, and other sectors. It also ranked thirty-third
low 70s. Much of the year's 55.9 inches (1,420 mm) of rainfall occurs during
among global cities. In 2008, Forbes magazine ranked Miami "America's Cleanest
this period.
City", for its year-round good air quality, vast green spaces, clean drinking water,
clean streets and city-wide recycling programs. According to a 2009 UBS study of
73 world cities, Miami was ranked as the richest city in the United States, and the
world's fifth-richest city in terms of purchasing power. Miami is nicknamed the
"Capital of Latin America", is the second-largest U.S. city with a Spanish-speaking
majority, and the largest city with a Cuban-American plurality.
About Miami
Risks are involved in any real estate purchase. It is the investor’s responsibility to independently verify any data relied
upon for an investment using qualified legal, financial, and operations advisors. Prior to investing in real estate, investors
should also carefully consider possible tax consequences and legal requirements.
19Note: Please be aware that the information included herein is deemed accurate but is not guaranteed or warranted in any way.
Also, this information is subject to change at any time without notice to recipients.
All material in this brochure is copyrighted and cannot be reproduced, distributed, or otherwise disseminated without the
expressed written consent of the Owner.You can also read
