North Miami Town-homes 20 Units A Multifamily Investments ...archive.uli.org/fallmeeting2012/thur/SharkTank-OscarRodriguez.pdf · • 12 Units (4 Bed/2 Baths) • 142 N.W 166th Street

North Miami Town-homes – 20 Units

A Multifamily Investments Opportunity

North Miami Sub Market

About the company

RxR Capital Holdings (“RxR”) is a vertically integrated organization founded 10-years ago. The

firm possesses comprehensive real estate investment management, acquisition, property management,

development, and redevelopment expertise.

RxR Capital Holdings is a real estate investment company that specializes in acquiring and managing multi-family properties.

RxR Capital Holdings specializes in the Markets of South Florida (Palm Beach, Miami Dade, and Broward)

Entrepreneurial and innovative approach as well as a “back to basics” philosophy

Take over of the day-to-day management of the properties to control expenses and increase revenue

Target underperforming multi-family properties, bank real estate owned properties (REO), and “loan-to-own” opportunities, in

which it would acquire a distressed note with the goal of acquiring the underlying real estate

Principals also make capital contributions in each investment, aligning interest with investors

Executive Summary

$30,794,000 VALUE OF TOTAL

INVESTMENTS 11 TOTAL PROPERTIES

ACQUIRED IN

MIAMI AND FT.

LAUDERDALE

498 TOTAL UNITS AQUIRED

SINCE 2005

COMPREHENSIVE YEARS

IN REAL ESTATE

ACQUISITIONS,

MANAGEMENT, AND

INVESTMENT

60+

$10 BILLION

VALUE OF REAL ESTATE ANALYZED

AND UNDERWRITTEN

AVERAGE RETURN

ON INVESTED

MONEY

20%

Who We Are Oscar Rodriguez, Jr.

Mr. Rodriguez, has 9 years of experience in property management and acquisitions. He is responsible for the management, leasing

and ongoing development of the real estate assets. He is also involved with the origination, analysis and negotiation of commercial

real estate transactions. Oscar Rodriguez has managed more than 300 units and successfully executed condo-conversion and

rehabilitation deals. Mr. Rodriguez currently manages over 250 apartment units through RxR subsidiary Onyx Management

Enterprises.

Sebastian Roiter

Mr. Roiter, has over half a decade of experience in real estate acquisitions, real estate development, and financial analysis of

income producing properties. He is responsible for directly sourcing, valuing, negotiating and closing commercial real estate

acquisitions. Mr. Roiter has valued and underwritten over 7 billion dollars in Class A, B, C of Commercial properties. Previously,

Mr. Roiter served as development head for The Real Estate Club, Market Analyst for the Capital Markets Division of Fortune

International Realty, and as Project Manager for Prodigy International Realty.

Andrew De La Fuente

Mr. De La Fuente, has over a decades of real estate experience. As a key executive with success on both the property management,

development and leasing sides of the business, Mr. De La Fuente is currently responsible for the implementation, growth, and

oversight of RxR’s investment opportunities, as well as helping with property management. Previously, Mr. De La Fuente served

as an asset manager at UrballAll properties, and before that he was a property manager/ Legal counsel for Biscayne Management

Group.

Investment Track Record RxR Capital Holdings is a Miami-based real estate investment company that specializes in acquiring and managing multi-family properties.

A brief historical summary is as follows:

Since its formation, RxR has focused on affordable and work force housing in the South Florida market. The company has 60+ years of

combined experienced. In the past RxR has managed over 445 units of which 185 have been sold thru re-development and conversion to

condominium, or Market Sales

Properties previously owned, managed, and sold:

►Azul at Kimberly Lakes 95 Units (Oakland Park, FL) 120%+ Levered IRR 9 Months Hold

►El Sol Apartments 126 Units (Oakland Park, FL) 120%+ Levered IRR 2 Year Hold

►Oasis Apartments 140 Units (Oakland Park, FL) 120%+ Levered IRR 2 Year Hold

►Cano Apartments 18- Units (Hollywood, FL) 29.53% Levered IRR 1 Year Hold

Properties currently owned and managed

►Manors North and South 40-unit property (Wilton Manors, FL) 17.5% Annual Cash on Cash Owned Since Dec, 2010

►Manors 16 16-unit property (Wilton Manors, FL) 18.3% Annual Cash on Cash Owned Since Dec, 2010

►Manors 10 10-unit property (Wilton Manors, FL) 20.0% Annual Cash on Cash Owned Since Dec, 2010

►Mass Apartments 20-unit property (North Miami, FL) 10.0% UNLEVERED IRR(Owned Cash) Owned Since June,2011

►Manors 16B 16-unit property (Wilton Manors, FL) 12.0% Annual Cash on Cash Owned Since Oct, 2011

►Manors 16 South 16-unit property (Wilton Manors, FL) 12.0% Annual Cash on Cash Owned Since May,2012

About The Project Subject Property

• 14000-14080 NE 2nd Ave,

Miami, Florida 33161

• 12 Units (4 Bed/2 Baths)

• 142 N.W 166th Street

Miami, Florida, 33169

• 8 Units (4 Bed/2 Baths)

Site History • Acquisition of recently (2006/2007) constructed town-

homes

• 5 two-story buildings totaling 20 units.

• All four-bedroom two-bath (4/2)

• Built to be sold as Condos.

The Opportunity

• Acquisition of recently constructed portfolio of buildings

• Immediate income with 70% of tenants being Section 8

• Additional value through renting the vacant units and by

bringing current units to market rent.

Purchase Price: $2,240,000

Rent Roll

# of Units % of Total

Occupied 18 90.0%

Vacant 2 10.0%

Total/ Avg 20 100.0%

# of Sec 8

Units

% of Total

Units

Avg Paid by

Sec 8

14 70.0% 85.3%

14 70.0% 85.3%

Unit NumberRent

Amount

% Paid by

Sect. 8Lease Ends Comment

142 $1,500 70.93% 05/31/13 Section 8

144 $1,710 95.32% 03/31/13 Section 8

146 $1,350 0.00% 07/03/13 Market

148 $1,400 0.00% 04/30/13 Market

150 $1,502 90.08% 01/31/13 Section 8

152 $1,463 89.61% 02/28/13 Section 8

154 $1,488 100.00% 10/31/12 Section 8

156 $1,412 67.21% 06/30/13 Section 8

14000 $1,500 0.00% 09/15/13 Market

14002 Market

14004 Market

14006 $1,680 67.20% 03/31/13 Section 8

14040 $1,457 92.31% 09/30/13 Section 8

14042 $1,270 100.00% 11/30/12 Section 8

14044 $1,500 100.00% 02/28/13 Section 8

14046 $1,758 77.19% 07/31/13 Section 8

14080 $1,330 72.33% 08/01/13 Section 8

14082 $1,250 0.00% MTM Market

14084 $1,444 92.87% 04/30/13 Section 8

14086 $1,200 80.08% 05/31/13 Section 8

Total/ Avg $1,456 85.26%

RENT ROLL

142-156 NW 166 ST

14000-14086 NE 2 AVE

5 Year Cash Flows YR 1 YR 2 YR 3 YR 4 YR 5

POTENTIAL GROSS REVENUE

Gross Potential Rent 350,568 361,085 371,918 383,075 394,567

Loss to Lease (3,506) (3,611) (3,719) (3,831) (3,946)

Gross Possible Rent 347,062 357,474 368,198 379,244 390,622

Vacancy (18,551) (19,107) (19,680) (20,271) (20,879)

Concessions (3,471) (3,575) (3,682) (3,792) (3,906)

Bad Debt (1,041) (1,072) (1,105) (1,138) (1,172)

EFFECTIVE RENT INCOME 324,000 333,720 343,732 354,044 364,665

Other Income 480 494 509 525 540

EFFECTIVE GROSS INCOME 324,480 334,214 344,241 354,568 365,205

OPERATING EXPENSES

Real Estate Taxes 43,833 44,710 45,604 46,972 48,382

Property Insurance 13,524 13,930 14,348 14,778 15,221

Water & Sewer 2,431 2,504 2,580 2,657 2,737

Electric 3,142 3,237 3,334 3,434 3,537

Contract Services 7,910 8,148 8,392 8,644 8,903

Salaries and Other 10,000 10,300 10,609 10,927 11,255

General & Administrative 5,000 5,150 5,305 5,464 5,628

Repairs & Maintenance 10,000 10,300 10,609 10,927 11,255

Management Fee 16,224 16,711 17,212 17,728 18,260

Capital Reserve 5,000 5,150 5,305 5,464 5,628

Total Operating Expenses 117,066 120,139 123,296 126,995 130,805

Net Operating Income 207,414 214,075 220,945 227,573 234,400

Debt Service (112,123) (112,123) (112,123) (112,123) (112,123)

Cash Flow After Debt 95,292 101,953 108,822 115,450 122,278

Yearly Cash Flows

Location & Market Overview

• Conveniently Located between Miami and Fort Lauderdale.

• Easy Access to I-95, Florida Turnpike, 826 Expressway, and Hwy 441.

• Strong Rental Market

Location

Location

P

1

2

3

4

5 6

7 8

9 10

11

12

P

POINTS OF INTEREST

1. Biscayne Gardens Park

2. Federal Bureau of Investigation

3. Oak Grove Park & Elementary

School

4. Central Shopping Plaza

5. Linda Lentin Elementary

School

6. North Elementary School

7. North Miami Middle School

8. Arch Creek Memorial Park

9. North Miami Shopping Center

10. Johnson Wales University

11. Dollar Store

12. 10 min from the property to the

beach

P

P

Public Transportation System Subject Property

• 14000-14080 NE 2nd Ave,

• 142 N.W 166th Street

Single Family Residential Rent Comparable

Apartment Building rent Comparable

Name Centre Lake Apartments Current Asking Rent/Unit $717.00

Address 15754 NW 7th Ave Current Vacancy Rate 6.4%

City Miami Distance from Subject (miles) 0.51

State FL Property Size (Units) 234

ZIP 33169 Floors 1

County Dade Year Built 1986

Submarket North Miami/Bayshore Class BC

Data As Of 6/30/12

Studio 1BR 2BR 3BR

Current Asking Rent/Unit $530.00 $762.00 $1,003.00 N/A

Unit Size (SF) 530 600 800 N/A

Current Asking Rent/SF $1.00 $1.27 $1.25 N/A

Page 51

Name Park Plaza Current Asking Rent/Unit $916.00

Address 17600 NW 5th Ave Current Vacancy Rate 6.8%



ZIP 33169 Floors 3


Submarket North Dade Class BC

Data As Of 6/30/12

Studio 1BR 2BR 3BR

Current Asking Rent/Unit N/A $798.00 $1,020.00 $1,216.00

Unit Size (SF) N/A 784 1432 1636

Current Asking Rent/SF N/A $1.02 $0.71 $0.74

Name Court Yard Current Asking Rent/Unit $858.00

Address 1595 NE 135th St Current Vacancy Rate 3.1%

City North Miami Distance from Subject (miles) 3.48


ZIP 33161 Floors 4



Data As Of 6/30/12

Studio 1BR 2BR 3BR


Unit Size (SF) N/A 755 1150 2130


Name Forrest Place Current Asking Rent/Unit $979.00




ZIP 33181 Floors 11



Data As Of 6/30/12

Studio 1BR 2BR 3BR

Current Asking Rent/Unit N/A $890.00 $1,110.00 N/A

Unit Size (SF) N/A 943 1200 N/A

Current Asking Rent/SF N/A $0.94 $0.93 N/A

Page 57

Name Court Yard Current Asking Rent/Unit $858.00




ZIP 33161 Floors 4



Data As Of 6/30/12

Studio 1BR 2BR 3BR


Unit Size (SF) N/A 755 1150 2130


Name Forrest Place Current Asking Rent/Unit $979.00




ZIP 33181 Floors 11



Data As Of 6/30/12

Studio 1BR 2BR 3BR




Page 57

Name The Arbors Current Asking Rent/Unit $987.00

Address 2375 NE 173rd St Current Vacancy Rate 3.2%



ZIP 33160 Floors 3



Data As Of 6/30/12

Studio 1BR 2BR 3BR




Name Tropicana Apartments I Current Asking Rent/Unit $1,034.00

Address 1900 Sans Souci Blvd Current Vacancy Rate 4.9%



ZIP 33181 Floors 5



Data As Of 6/30/12

Studio 1BR 2BR 3BR




Page 59

Name The Arbors Current Asking Rent/Unit $987.00

Address 2375 NE 173rd St Current Vacancy Rate 3.2%



ZIP 33160 Floors 3



Data As Of 6/30/12

Studio 1BR 2BR 3BR




Name Tropicana Apartments I Current Asking Rent/Unit $1,034.00

Address 1900 Sans Souci Blvd Current Vacancy Rate 4.9%



ZIP 33181 Floors 5



Data As Of 6/30/12

Studio 1BR 2BR 3BR




Page 59

17600 NW 5th Ave

Miami, FL 33169

2

1

3

4

5

6

1574 NW 7th Ave

Miami, FL 33169

1595 NE 135th ST

Miami, FL 33161

1600 NE 135th ST

Miami, FL 33181

2375 NE 173rd ST

North Miami Beach, FL 33160

1900 Sans Souci Blvd

Miami, FL 33181

Apartment Building Sales Comps

Apartment Building Sales Comps

North Miami submarket

Apartment - Asset Advisor 2nd Quarter 2012

14080 NE 2 Ave North Miami, FL 33161Metro: Miami

Page 17

Section 3 - Current Metro Vacancy Details

Vacancy Rate By Age Vacancy Rate Distribution

Year Built Vac. Rate

Before 1970 2.9%

1970-1979 5.1%

1980-1989 4.4%

1990-1999 4.4%

2000-2009 3.9%

After 2009 3.8%

All 4.2%

As of 06/30/12

Low 25% Mean Median 75% High

0.0% 2.3% 4.2% 3.4% 5.2% 12.7%

43

73

56

29

103 2

8

Under

1.6%

1.7%

3.2%

3.3%

4.8%

4.9%

6.4%

6.5%

8.0%

8.1%

9.6%

9.7%

11.2%

11.3%

Over

Num

be

r of

Pro

pe

rtie

s

As of 06/30/12

Copyright 2012 Reis, Inc.

North Miami Redevelopment North Miami Redevelopment

The City of North Miami has undergone a major rehabilitation

in recent years. Downtown North Miami has emerged as a

dynamic cultural and entertainment center, fast becoming known

as the NoMi Arts District. The catalyst for the revitalization was

the opening of the Museum of Contemporary Art (MOCA), a

22,000 SF building designed by internationally-renowned

architect Charles Gwathmey.

North Miami is also a major center of education with two major

four-year universities: Florida International University (FIU) and

Johnson & Wales University (JWU). FUI opened its Biscayne Bay

Campus in 1972. Since then the campus has grown to house

many departments, including the School of Nursing, School of

Journalism and Mass Communication and JWU, an

internationally-acclaimed culinary and food service management

school.

One of North Miami’s most innovative and growth-inducing

project is the 193-acre Biscayne Landing development. Dubbed a

smart-growth urban center, Biscayne Landing will be a master

planned community with up to 6,000 residential

units, as well as commercial/retail space and a hotel.

Miami Dade County Sub Market

MIAMI-DADE MARKET OVERVIEW

Miami has capitalized on its strategic location, diverse multi-lingual population, and

strong educational base to become a true international business center. Miami’s

dependence upon tourism and retirees is shrinking as the city has emerged as a

major center of international trade. Since 2000, population in the Miami MSA

increased by 6.7 percent, bringing total population to just under 2.4 million. Miami-

Miami Beach-Fort Lauderdale is now the fifth largest MSA in the nation according

to the Beacon Council.

Greater Miami is acknowledged as the “Gateway to the Latin Americas” and its

strategic location is home to 500 multinational companies that serve North, South

and Central America, as well as the Caribbean, Europe, Asia Australia and Africa.

The Miami-Fort Lauderdale-Miami Beach metro ranks No. 1 in the nation on the

Kauffman Index of Entrepreneurial Activity, an annual study that measures

business startup activity across the United States according to Business Week.

Long-term growth dynamics remain strong Greater Miami and Dade County

continue to transition from a tourism-dominated economy into a major center for

technology, finance, and service industries.

During the recent economic downturn, Florida as a whole, and the Southeastern

Florida region, outpaced the country in employment growth. Over the last five

years, total employment in the Miami area has grown at an average annual rate of

1.3% while across the U.S., employment has grown at an average annual rate of

1.1%. In the last 4 quarters, Miami’s employment has declined at an average annual

rate of 1.5%. Torto Wheaton forecast predicts growth of 0.4% in the Miami area in

the next five years. Miami’s education & health employment sector will post the

best job performance over the next five years.

Miami Top Employers:

Sources and Uses

Costs $ / Unit

Acquisition Costs

Purchase Price $2,240,126 $112,006

Total Acquisition Costs $2,240,126 $112,006

Due Diligence Costs

Appraisal $7,000 $350

Property Condition Assessment $4,150 $208

Environmental - Phase 1 $3,650 $183

Survey $400 $20

Hazard & Liability Insurance $6,086 $304

Acquisition Remittal $44,803 $2,240

Owner's Title Insurance $8,300 $415

Doc Stamps & Intangible Tax $15,681 $784

Attorney Fees $14,000 $700

Settlement/Closing Fee $10,000 $500

Other Items $7,046 $352

Total Due Diligence Costs $121,115 $6,056

Financing Costs

Lender Good Faith Consideration $16,801 $840

Financing Atonement $16,801 $840

Lender Closing Costs $14,000 $700

Total Financing Costs $47,602 $2,380

Hard Costs

Capital Improvements $16,000 $800

Total Hard Costs $16,000 $800

TOTAL $2,424,843 $121,242

Acquisition Cost

Equity Structure

Debt Financing $1,681,000

Equity $743,843

Total Sources $2,424,843

Purchase Price 2,240,126$

Closing Costs 168,717$

Capital Improvements 16,000$

Total Uses 2,424,843$

Uses

Sources Year 1

Total Revenue $324,480

Total Expenses $117,066

Net Operating Income $207,414

Unlevered Return 13.01%

Debt Coverage Ratio 1.85x

Loan-to-Value Ratio 75.00%

Average Cash on Cash 12.81%

5-Yr Average Cash on Cash 14.62%

Going in Cap Rate 8.55%

• Limited Partner Equity commitment of $669,459

• 6.0% Preferred Return

• Waterfall Schedule as follows:

• Acquisition Fee: 2.5%

• Financing Fee: 1.0% (If RxR has to put a personal guarantee)

Investment Request

Split Benchmark80% 12%

70% 15%

60% 20%

50% 25%

North Miami Town-homes 20 Units A Multifamily Investments ...archive.uli.org/fallmeeting2012/thur/SharkTank-OscarRodriguez.pdf · • 12 Units (4 Bed/2 Baths) • 142 N.W 166th Street

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