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
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Eddy A. Dingman, Real Estate/Marina Business Broker National Golf and Marina Properties Group
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
Intracoastal Oasis Marina Development 4.43 acres Submerged Coastal Waterfront | Volusia County, FL
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
Intracoastal Oasis Marina Development 4.43 acres Submerged Coastal Waterfront | Volusia County, FL
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
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
Eddy A. Dingman National Golf & Marina Properties Group
www.nationalgolfandmarina.com
Intracoastal Oasis Marina Development 4.43 acres Submerged Coastal Waterfront | Volusia County, FL
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
Eddy A. Dingman National Golf & Marina Properties Group
www.nationalgolfandmarina.com
Intracoastal Oasis Marina Development 4.43 acres Submerged Coastal Waterfront | Volusia County, FL
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
Eddy A. Dingman National Golf & Marina Properties Group
www.nationalgolfandmarina.com
Intracoastal Oasis Marina Development 4.43 acres Submerged Coastal Waterfront | Volusia County, FL
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
Eddy A. Dingman National Golf & Marina Properties Group
www.nationalgolfandmarina.com
Intracoastal Oasis Marina Development 4.43 acres Submerged Coastal Waterfront | Volusia County, FL
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
Eddy A. Dingman National Golf & Marina Properties Group
www.nationalgolfandmarina.com
Intracoastal Oasis Marina Development 4.43 acres Submerged Coastal Waterfront | Volusia County, FL
Why Invest?
Eddy A. Dingman National Golf & Marina Properties Group
www.nationalgolfandmarina.com
Intracoastal Oasis Marina Development 4.43 acres Submerged Coastal Waterfront | Volusia County, FL
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?
Eddy A. Dingman National Golf & Marina Properties Group
www.nationalgolfandmarina.com
Intracoastal Oasis Marina Development 4.43 acres Submerged Coastal Waterfront | Volusia County, FL
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)
Eddy A. Dingman National Golf & Marina Properties Group
www.nationalgolfandmarina.com
Intracoastal Oasis Marina Development 4.43 acres Submerged Coastal Waterfront | Volusia County, FL
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
% 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