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OVERVIEW · Current asking price is $13m · Terms are of most importance and anything exceeding 45 days today is not recommended (30 days total would be ideal)

· Expectations are that the doors open for business for under $20m +/- all in

POF will be required and is also highly important

· Full DD package is in the hands of the Seller and would be available to the would-be Buyer that would greatly expedite the process

· https://maps.google.com/maps?q=2940+collins+ave+miami+beach+fl&hl=en& hnear=2940+Collins+Ave,+Miami+Beach,+Florida+33140&gl=us&t=m&z=16 Approved 9. File No. 3617 Royal Polo Investors, LLC 2940 Collins Avenue The applicant is requesting the following variance in order to permit the retention of the existing guest rooms: 1. A variance to waive the required minimum hotel unit size: 15% of the hotel units shall be between 300-335 s.f. and 85% of units shall be 335 s.f. of larger, in order to retain 88 hotel units at less than 300 s.f (the smallest at 202 s.f., 91.6% of units), 6 hotel units between 300 and 335 s.f. (6.3% of units) and 2 units exceeding 335 s.f. (2.1% of units).


Also included below are 5+ additional sites to where additional development / re-development will occur as well (not listed)

http://therealdeal.com/miami/blog/2013/03/06/miami-penthousesells-for-34m/

Miami penthouse sells for $34M March 06, 2013 02:00PM

A rendering of the penthouse at the Residences at The Miami Beach EDITION

A combined-unit penthouse at the Residences at the Miami Beach EDITION has closed for $34 million, making it one of Miami’s priciest penthouse sales ever, Coldwell Banker announced today. Coldwell Banker’s sales associate William Pierce closed the deal. Penthouses 1601 and 1602 in the building were combined to form a 16,271-squarefoot triplex featuring eight bedrooms and eight and three-half bathrooms. The building offers multiple pools and outdoor kitchens. “This record-breaking sale exemplifies the wonderful flexibility that Miami Beach offers,” Pierce said in a statement. “There will be a nearly 360 degree view of our beautiful city.” –Christopher Cameron Tags: Coldwell banker, residences at Miami beach edition

Related posts

• Pharrell Williams lists Brickell Avenue penthouse for $16.8 million • Rental potential drives South Beach condo-hotel sales • Penthouse B sells at Setai


224 23rd St & 2200 Liberty Ave & 340 23rd St · Former Property Name parking (separate blocks) · New Property Name structure & retail · Details encompass two half’s of City blocks

Links

City of Miami Beach parking New structure that will Zaha Hadid – world

·

New Property Name

Former Property Name

a-loft (W Hotel Brand)

Banana Bungalow

2360 Collins Ave

http://www.zaha-hadid.com/ http://www.dezeen.com/2011/12/21/miami-beach-parking-garage-by-zaha-hadid/

·

· Architect renowned designed in London for Olympics

City of Miami Beach surface

NEW DEVELOPMENT || COLLINS AVE 23RD – 41ST || MIAMI BEACH || 2012 - 2015

• Rental potential drives South Beach condo-hotel sales

1.

2.

·

Details

New 8-story building, ·

3.

4.

Architect

restaurant, club, waterfront ·

Unknown – Starwood

· Links http://www.starwoodhotels.com/alofthotels/index.html? PS=GWS_aa_Starwood_Aloft_Brand_Exact_Google_aloft_hotels_09170 8

·

New Property Name

Former Property Name

Marriott EDITION

Seville Beach Hotel

2901 Collins Ave

·

New 8-story building,

$250m

Ian Schrager / Lionstone Planned renovation

· Details restaurant, club, waterfront

·

Links

· Architect Development

·

Saxony Hotel (former to-be

http://www.worldpropertychannel.com/featured-columnists/deal-of-the-weekholliday-fenoglio-fowler-seville-beach-hotel-marriott-international-manny-dezarraga-fortune-international-lionstone-group-ian-schrager-2927.php http://www.marriott.com/hotel-development/EDITION.mi http://www.editionhotels.com/en-us/ http://www.ianschragercompany.com/ http://www.lionstone.net/

3201 Collins Ave

· Former Property Name Cipriani)


5.

6.

·

New Property Name

Planned renovation

Faena

·

·

Underground parking

Approved 2 story restaurant

New 10 story residential tower / 50 units

275 key hotel

$150m

·

Rem Koolhaus (Amsterdam)

Norman Foster & Rem

· Details Residential tower (North tower of Saxony) highest cost of residential on all of Miami Beach

· Links

· Architect Koolhass

· http://www.faena.com http://www.faena.com/en/miami#!/ http://miami.curbed.com/tags/saxony-hotel

·

Kobi Karp – Architecture

Versailles

·

·

Retail & entertainment complex

West side Collins from 32nd – 34th

·

 

7.

 

·

·

Boutique hotel, shopping, residences

Underground mechanical parking

·

·

·

·

*Fontainebleau

*Vacant buildings on 37th / Collins just sold recently

*Indian Creek Hotel recently sold – Italian brand forthcoming

*Soho House established

*Days Inn SOLD $70m+ and possible new flag

Other sales / development notable

·


EXECUTIVE SUMMARY AND PROJECT SUMMARY

CONTINUUM DEVELOPMENT GROUP

EXECUTIVE SUMMARY

CONTINUUM DEVELOPMENT GROUP LLC ///

Continuum Development Group is a newly incorporated design and development group developing a hotel and performance venue here in Miami and one in the Research Triangle Park area in Durham, North Carolina. Our concept brings together experienced development executives, technology and guest experience experts, and world class architects who have designed and executed projects all over the world and developed the high-tech progressive design approach we are applying. The concept is meticulously planned to create an integrated environment of both aesthetics and lifestyle that will bring a new and highly desirable scene and lifestyle to the areas. Our architects, Jordan Trachtenberg and Michael Sims have worked with the top architects and firms in the world, SOM (World Trade Center), Frank Gehry (Guggenheim, New World Symphony, NY By Gehry at 8 Spruce), UN Studio-Amsterdam (Mercedes-Benz Museum- Germany), Zaha Hadid (1000 Museum Park - Miami).

CDG has created a concept and model which can be applied to varying lots and properties and able to be duplicated in other markets. We have identified properties to implement our unique concept upon which fills a void and need in this Miami market and others around the country. We already have land possessed for the NC project. Miami is one of the hottest real estate markets in the world and a top ten luxury market globally, and RTP is a one of fastest growing areas in the country. We believe our concept of luxury residences and an upscale boutique hotel, coupled with the city’s premiere upscale yet hip destination restaurant with an integrated live music and performance experience fits well into the current real estate and economic environments. Finding world-class live music in Miami is a tough endeavor in itself. Enjoying quality live music in a nice venue while enjoying a fine meal is unprecedented in either market currently. Our concept also includes an “Integrated Living” theme of having design and technology integrated not only into the units, but also integrating the residents and guests with the neighborhood, the areas services providers, and the cities happenings and culture. This will be a distinguishing characteristic of the property. Our concept of “Living in the State of Luxury” entails not solely luxury accommodations, nor simple access to the best of what the city has to offer. Our definition entails creating a unique destination attraction that brings the best of an area to the guests and resident’s doorstep through our well thought out program of outlets; rooftop bars, beach and social clubs, restaurants, and performance lounges.

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We have been in discussions with multiple Miami Heat players in regards to being involved in the projects. Having the most visible people in the city being principles in and frequenting the venues will make these the premiere venues in the city. We anticipate bringing in a high visibility music partner as well. This is the model for Miami Beach, which will be the flagship and showpiece for the brand. We are also developing a similar concept of great design, but limited services and wrapped in a limited services business model that is attractive to investors for other markets. The plan is to duplicate the model and concept for other primary markets in addition to markets where our high visibility partners are originally from or have great recognition or a following, like Chicago. Detroit, Kansas City, Virginia Beach, Cleveland, and other secondary markets. We have had extensive discussions with experienced hotel operators such Keith Menin at Menin Hotels (Mondrian, Shelbourne, Gale, Regent-Chicago and Anthony Melchiorri, host of the Travel Channel’s show, Hotel Impossible, and the managing director of RDV Hospitality, Josh Wagner (who formerly ran F&B and venues for Morgan’s Group Hotels) in regards to their potential participation in the projects in a management capacity as a contracted service provider.


CONTINUUM DEVELOPMENT GROUP LLC ///

PROJECT DEVELOPMENT CDG has developed a concept that is an architectural, technological, and cultural marvel. We have tried to structure the projects to be as remarkable to our partners and investors as it is for those who experience the properties and venues. We have included a mix of condos, hotel rooms, and revenue outlets that creates an attractive financial offering and provides security to our investors. The condos provide for an early revenue source or return for equity investors through pre-construction sales (Majestic Properties has signed on as a broker for pre-sales). The hotel and outlet provides cash flow and value for an exit in addition to revenue from condo sales. We are flexible in regards to deal parameters and partnership structures. We are seeking an equity partner, which can be leveraged to obtain debt financing. We also may be able to provide secured collateralization through a group, Iconic Ventures, for investors which 100% guarantees

//////01 ROYAL POLO /////// 02 LMNT /////// 03 TRIANGLE HOUSE///////

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02 LMNT

CONTINUUM DEVELOPMENT GROUP LLC ///

With the design district being one of the hottest neighborhoods in Miami, LMNT will be a true destination for guests to come and spend some time enjoying the lush garden patio, cocktail bar, salon lounge and main restaurant. After a fine dinner and performance, there is no better way to burn some of those calories than shaking a leg on the dance floor. LMNT has a full cabaret and 5AM liquor license, and will convert into a full nightclub venue late nights.

The restaurant and event space in itself will be a new icon for the city and a good business for principles and investors, yet it is just a small piece of the value of this opportunity. The existing operating business of production services, events and the bar will produce a revenue stream to carry initial operations. The new restaurant and music concept can be implemented with minimal investment and construction to existing structure. LMNT’s existing production resources enables a robust artist-in-residency program which will keep a constant and fresh crop of artist creating and performing at the venue.

This situation is an exceptional opportunity due to the ability to construct a 32 story mix-use tower on the back of the lot. We envision a 200,000 sq. ft. (150k sellable) building with approximately 100 luxury condos and 20 hotel suites with spectacular city and bay views in the property. Current market rate for the area is $350 to $500 per sq. ft. The property will have amenities such as a gym, pool, rooftop lounge, and a grocery store on ground floor. Integrated living is the theme, encompassing technology, design, and culture. We have had discussions about the possibility of bringing Jay-Z’s 40/40 club to our project, which we envision being on the rooftop of the building. Existing design inspirations would include Butter in NYC, the garden patio at the Hudson Hotel in NYC and the former Asia De Cuba in NYC. Infuse those spaces design and ambiance with the live music experience of Joe’s Pub in NYC and you have a solid understanding of our concept for this project.

- Price: $12M (asking) $9M (offer) - Building Size: 7,000 SF - Property Type: T5 Zoning residential/mix use for nightclub/cabaret & residential tower - Property Use Type (operating): Gallery, Event Space, Bistro - Proposed Use: T6 mix use for residential tower, restaurant, music venue, lounge/club, event space, retail - Year Built: 2011 - Lot Size: 0.8 acre (32 story Condotel to be constructed on back ⅔ of lot)

Highlights - Existing owner is reporting estimated annual income for property around $4M with net income of $2.7M. Using a conservative reverse multiple, we will use $1.5M - Projected new restaurant and venue revenues - $6M - Build cost: $200/sq. (200k) = $40M Revenue from condo sales: $400/sq. (150k) = $60M

Project Costs - Acquisition of existing structure, business, land, and interior redesign - $12M - Construction costs for tower - $8M (20% of total construction costs) - Total project costs - $52M

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TEAM

Scott Bednaz is a commercial broker and developer with 19 years experience in North and South Carolina. As President of TerraCorp Commercial properties and Tallus Development group Mr. Bednaz has negotiated the purchase, sale, or lease of 1 million square feet of commercial space, 3,500 acres of land resulting in $100 million in completed transactions. In 2005 he branched out from representation to develop his own projects including Advanced Auto, Hooters Burlington, The Estates at Barton’s Creek, and the Straw Valley Project. His projects have been recognized by multiple news and architectural outlets and received awards from the NC and Durham Preservation Societies.

Cedric H Watkins is a technologist and founder of a technology company providing solutions for the hospitality industry, Adjacent Innovations. Mr. Watkins is a seasoned business development and marketing executive who has founded marketing and technology companies and has done development projects in Raleigh and Newark, New Jersey.

Michael Sims, Jr. is an architectural design professional now living and working in Europe. He has over 10 years professional experience in the offices of Emergent (Tom Wiscombe), Coop-Himmelblau (Wolfgang Prix), Frank Gehry Associates, SOM (NY), UN Studio (Ben van Berkel), and co-taught workshops with Lebbeus Woods.

Mr. Trachtennberg received the degree Master of Architecture, with Honors in Design, from Columbia University, NY, and holds a Bachelor of Design in Architecture, with Honors, from Florida International University, Miami. www.JordanTrachtenberg.com

Jordan Trachtenberg Assoc. AIA, LEED AP has practiced architecture over the last decade in five continents ranging from Asia to South America. During 20092012 in Amsterdam, NL, while practicing under Ben van Berkel at UNStudio, Mr Trachtenberg ed the design and execution as Coordinating Architect /Project Manager on several successful projects such as the Singapore University of Technology and Design to finish completion in 2014. In addition, Mr. Trachtenberg led the design on successful competitions, small built projects, interior, and industrial design solutions, such as the Library + Center for New Media in Ghent, Belgium, Zara flagship store in Rome, Italy and the 29th Annual Art Biennale’s Youturn Pavilion in Sao Paulo, Brazil.

CONTINUUM DEVELOPMENT GROUP LLC ///

After attending UNC-Chapel Hill where he studied Management and Sociology, Mr. Watkins has lived in Manhattan and Miami for the last 12 years where he has developed a network of resources in finance, real estate, hospitality, design, technology, and entertainment. Mr. Watkins will be project coordinator, lead business development, and serve as technology and guest experience architect.

As a proponent of BIM and parametric design processes, Mr. Sims has been involved in several high profile projects including Manhattan’s tallest residential tower, Frank Gehry’s new 8 Spruce Street tower, the King of Morocco’s current theatre project, and the UN Studio in Amsterdam. He earned his Masters of Architecture from SCI-ARC, and a Bachelor of Architecture from the University of North Carolina at Charlotte. Mr. Sims has taught digital design at AIU (American Intercontinental University) in Los Angeles, and was an SOM instructor in an applied studies research collaboration with SCI-Arc, investigating concepts related to responsive kinetic façades. He is now with Zaha Hadid Architects in London.

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Plaza  Hotel     418  -­‐426  Meridian  Ave  –  South  Beach   Located  SW  Corner  of  5th  st  and  Meridian  Ave  Miami  Beach,  Fl.  33141   Property  consists  of  2  adjacent  parcels  improved  with  a  rooming  house     and  2  apartment  buildings.  Properties  are  zoned  commercial  mixed  use.   The  #426  building  has  historical  classifications  and  the  facades  would   need  to  be  maintained  or  replicated.  The  property  was  approved  by  the   City  for  a  hotel  as  shown  in  the  enclosed  renderings  and  plans.    The   property  can  be  converted  to  retail,  hotel,  residential  or  office  or  any   combination     418  Meridian  Ave   Built  1953   Land  Size:  50  x  140  =  7000  sf   Bldg  Size:      1  story  bldg.  –  2302  sf                                                5    -­‐  1/1  bath  units  of  400  sf  each  –  each    unit  pays  $600  /month                                                 2    story  bldg.  -­‐    2045  sf   1 1/1  bath   5        studio  apartments     426  Meridian  Ave  (completely  vacant  and  boarded)   Built  1925   Land  Size:    50  x  140  =  7000  sf   Bldg  Size:        3  story  bldg.  -­‐    16563    -­‐  approximate  215  sf  per  unit                                              76  units  –  Hotel  Rooms  with  only  a  sink  and  common  area  bathrooms  on            each  floor  his  /  hers  with  toilet  rooms  and  showers.  Property              has  3  stairwells,  front  ,  rear  and  center.                                              1st  floor  –  20  units                    2nd  floor  –  27    units                    3rd  floor  -­‐    29  units       Total  Land  Size:    14,000  sf                      100x140  –  140  feet  on  5th  st   Total  Bldg    Size:      20,910                                                                                  

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Introduction

Page 15

Improved Commercial Land, 418-426 Meridian Avenue, Miami Beach, FL

MIAMI-DADE COUNTY MAP

Waronker & Rosen, Inc. ❖ Real Estate Appraisers & Consultants

Introduction

Page 17

Improved Commercial Land, 418-426 Meridian Avenue, Miami Beach, FL

AERIAL PHOTOGRAPHS

Waronker & Rosen, Inc. ❖ Real Estate Appraisers & Consultants


Introduction

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Improved Commercial Land, 418-426 Meridian Avenue, Miami Beach, FL

PLAT MAP

Waronker & Rosen, Inc. â?– Real Estate Appraisers & Consultants


Citibank MIAMI BEACH, FL

TRAFFIC COUNTS

Traffic Count data © 2010 by TrafficMetrix. All rights reserved.

23

DEMOGRAPHIC ANALYSIS

Two-way, average daily traffic volumes.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2012 Marcus & Millichap T0240188

Citibank MIAMI BEACH, FL

Geography: 5 Miles

SUMMARY REPORT

Population

19

DEMOGRAPHIC ANALYSIS

In 2011, the population in your selected geography was 186,239 . The population has changed by 147.47% since 2000. It is estimated that the population in your area will be 203,318 five years from now, which represents a change of 9.17% from the current year. The current population is 53.2% male and 46.8% female. The median age of the population in your area is 40.0 , compare this to the U.S. average which is 36.9. The population density in your area is 2,374.87 people per square mile.

Households There are currently 91,984 households in your selected geography. The number of households has changed by 213.89% since 2000. It is estimated that the number of households in your area will be 102,307 five years from now, which represents a change of 11.22% from the current year. The average household size in your area is 1.96 persons.

Income In 2011, the median household income for your selected geography is $41,289 , compare this to the U.S. average which is currently $53,620. The median household income for your area has changed by 99.89% since 2000. It is estimated that the median household income in your area will be $44,858 five years from now, which represents a change of 8.64% from the current year.

The current year per capita income in your area is $38,247 , compare this to the U.S. average, which is $28,713. The current year average household income in your area is $73,701 , compare this to the U.S. average which is $73,458.

Race & Ethnicity The current year racial makeup of your selected area is as follows: 77.76% White, 12.47% African American, 0.36% Native American and 0.88% Asian/Pacific Islander. Compare these to U.S. averages which are: 72.40% White, 12.60% African American, 0.95% Native American and 4.93% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 59.38% of the current year population in your selected area. Compare this to the U.S. average of 16.90%. Housing The median housing value in your area was $172,310 in 2000, compare this to the U.S. average of $110,796 for the same year. In 2000, there were 7,744 owner occupied housing units in your area and there were 21,561 renter occupied housing units in your area. The median rent at the time was $453 .

Employment In 2011, there are 185,711 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 48.5% of employees are employed in white-collar occupations in this geography, and 51.5% are employed in blue-collar occupations. In 2011, unemployment in this area is 9.08% . In 2000, the median time traveled to work was 24.4 minutes.

Demographic data © 2010 by Experian/Applied Geographic Solutions.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2012 Marcus & Millichap T0240188


Citibank MIAMI BEACH, FL

2011 Owner Occupied Housing Units 2011 Renter Occupied Housing Units 2011 Vacant

2000 Owner Occupied Housing Units 2000 Renter Occupied Housing Units 2000 Vacant

1990 Households 2000 Households 2010 Households 2011 Households 2016 Households

1990 Population 2000 Population 2010 Population 2011 Population 2016 Population

$40,137 $46,933

21.9% 12.3% 11.1% 14.8% 13.1% 7.0% 5.3% 3.1% 4.7% 1.8% 5.0%

22.37% 50.83% 26.80%

22.22% 50.57% 27.19%

25.15% 36.56% 38.30%

$297,991 $229,859

19,906

1.59

1,474 1,333 16,303 16,764 18,500

2,632 2,409 26,407 27,107 29,489

1 Mile

$86,567

$46,431 $52,965

17.9% 11.4% 9.3% 14.4% 12.6% 9.9% 7.3% 3.9% 4.9% 2.1% 6.5%

28.47% 43.03% 28.50%

28.55% 42.69% 28.75%

43.27% 29.96% 26.77%

$264,905 $455,973

46,942

1.68

4,173 3,933 29,330 30,280 32,675

8,388 7,958 50,436 51,820 54,931

3 Miles

$73,701

$41,289 $38,247

21.7% 12.1% 10.5% 12.7% 13.0% 8.5% 7.0% 3.6% 4.4% 1.7% 4.7%

25.95% 48.04% 26.01%

26.00% 48.05% 25.94%

22.45% 62.50% 15.05%

$101,911 $172,310

185,711

1.96

29,861 29,305 89,168 91,984 102,307

81,160 75,256 181,289 186,239 203,318

5 Miles

2011 Daytime Population 1990 Median Housing Value 2000 Median Housing Value

$ 0 - $14,999 $ 15,000 - $24,999 $ 25,000 - $34,999 $ 35,000 - $49,999 $ 50,000 - $74,999 $ 75,000 - $99,999 $100,000 - $124,999 $125,000 - $149,999 $150,000 - $199,999 $200,000 - $249,999 $250,000 +

20

DEMOGRAPHIC ANALYSIS

2016 Owner Occupied Housing Units 2016 Renter Occupied Housing Units 2016 Vacant

$72,896

DEMOGRAPHIC REPORT

2011 Median Household Income 2011 Per Capita Income

2011 Average Household Size

2011 Average Household Income

Demographic data Š 2010 by Experian/Applied Geographic Solutions.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida Š 2012 Marcus & Millichap T0240188

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Sinuous addition to historic building providing additional guest rooms and private rooftop terraces.

THE SEA SPRAY Miami Beach, 2010

THE LOOK INN Miami Beach, 2009

Perforated metal balconies connecting the new building with the historic.

Reuse of historic apartment building

New courtyard creates semi-private space for hotel guests.

Transparent street-level restaurant

AIA MIAMI DESIGN AWARD 2009

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DOWNTOWN HOTEL SITE MIAMI, FL

MARKET POSITIONING & PRICING ANALYSIS Prepared For:

Esther Klepach Trust


DOWNTOWN HOTEL SITE MIAMI, FL

SECTION ONE ...............................................PRICING & FINANCIAL ANALYSIS SECTION TWO ..................................................PROPERTY DESCRIPTION SECTION THREE ...................................................RECENT SALES SECTION FOUR ...............................DEMOGRAPHIC ANALYSIS SECTION FIVE ..................................MARKETING PLAN SECTION SIX ...THE MARCUS & MILLICHAP ADVANTAGE

DOWNTOWN HOTEL SITE MIAMI, FL

PRICING & FINANCIAL ANALYSIS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida Š 2012 Marcus & Millichap

TABLE OF CONTENTS


MIAMI, FL

DOWNTOWN HOTEL SITE

100%

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2012 Marcus & Millichap

Price/Buildable SF

Price/Acre

Price/SF

VALUE INDICATORS

Down Payment

Price

Pricing

DOWNTOWN HOTEL SITE

Downtown Hotel Site 1789 Biscayne Boulevard 4,800,000

Miami, FL 33132

13,125

100% $4,800,000

0.3013

$365.71

10,500

$15,930,966

150

$457.14

3

$32,000

1

MIAMI, FL

Financial Overview SUMMARY Property Property Address Price Down Payment Lot Size (SF) Price/SF Lot Size (Acres) Price/Acre Buildable SF Price/Buildable SF Number of Units Price/Unit

105 X 125

$1,600,000

Number of Lots Price/Lot

New Publix Supermarket

0132310030730, 720, 710 T6-24-O, C-1, SD-20 26,051 2010 105' on Biscayne Blvd 61,000

All Cash

Fee Simple

Lot Dimensions Type of Ownership Loan Type SITE DESCRIPTION Assessor's Parcel Number Zoning Taxes Tax Year Frontage Traffic Counts Adjacent Development

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2012 Marcus & Millichap

List Price

4,800,000

$4,800,000

$365.71

$457.14

$15,930,966

2

PRICING & FINANCIAL ANALYSIS

PRICING & FINANCIAL ANALYSIS


DOWNTOWN HOTEL SITE MIAMI, FL

aLoft Cost Per Key

CAP Rate

Price

7.33%

200,000

7.66%

30,000,000

5.500%

$15,000,000

1,105,357

2,299,356.28

287,534

$1,193,999

$1,481,533

3

DOWNTOWN HOTEL SITE MIAMI, FL

PROPERTY DESCRIPTION

Total Return (3)

Principal Reduction

Net Cash Flow After Debt Service

Debt Service

Net Operating Income (4)

Interest Rate

New Loan

$1,173,050

244,404

$928,646

939,554

1,868,200

5.500%

$12,750,000

25,500,000

$170,000.00

Alternative Investment Analysis

Best Western Premier Cost Per Key Price CAP Rate

Interest Rate

New Loan

Net Operating Income (4) Debt Service Net Cash Flow After Debt Service Principal Reduction Total Return (3)

COMMENTS (1) Includes principal reduction. (2) Before taxes. (3) Depreciation not included. (4) Assumptions: 75% occ., $129.99 and $159.99 ADR respectively, 150 rooms

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida Š 2012 Marcus & Millichap

PRICING & FINANCIAL ANALYSIS


MIAMI, FL

DOWNTOWN HOTEL SITE

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida Š 2012 Marcus & Millichap

As it currently stands, Downtown Miami is in need of a limited service nationally branded hotel. The current hotel market has a surplus of full service rooms with a drastic shortage of limited service. By undercutting the rates of the full service hotels, currently offering rooms above $200.00 per night, a limited service hotel will thrive. An additional benifit to a limited service hotel in this location is the new Publix Supermarket accross the street. With a Supermarket within walking distance, guests will be inclined to book this hotel for their extended stays.

Investment Overview

DOWNTOWN HOTEL SITE

Marcus & Millichap is pleased to offer for purchase and sale, the fee simple interest in 1789 Biscayne Boulevard, and the adjacent 2 parcels to the east ("Site"), in Downtown Miami. The site is Zoned T-6 Urban Core, which allows for up to 24 stories and 80% lot coverage. This 13,125 +/- SF development site is ideally located in the heart of Downtown Miami within walking distance of the Miami Herald Building, and adjacent to the Hilton Hotel, which were both purchased by Genting in the past twelve months. Aside from Genting's recent acquisitions, Downtown Miami is poised to become THE hot spot of Greater Miami. The American Airlines Arena is a short distance South on Biscayne Blvd, and there have been several construction and redevelopment projects adjacent to the the site including the Publix Supermarket building which opened in March of this year. While the original plans for Genting's World Resort on the Miami Herald Site have been withdrawn, the scaled-back plans are scheduled to be released within the next two months. Although the Casino Bill, which would have legalized casinos and gambling for select sites including the World Resort, did not pass, many experts predict that within the next two to three years a similar bill will pass. Downtown Miami faces its highest cost of entry in years thanks to Gentings $460,000,000 real estate purchases driving the cost per square foot to over $300.00 in areas close by. While sub-prime locations are still offered at around $120.00 per square foot, the surrounding areas have not seen the same push in terms of re-development and "clean up", leaving them unsafe in terms of pedestrian traffic.

5

MIAMI, FL

Investment Overview

INVESTMENT HIGHLIGHTS Prime Location on one of the few remaining parcels in Downtown within 3 blocks of the Genting Development Site

Optimal Zoning for small lot construction (T-6 Urban Core)

Approved uses include Hotel, Retail, and Multi-Family

Across the street from the newly constructed Publix Supermarket, Wells Fargo, and GNC building

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida Š 2012 Marcus & Millichap

6

PROPERTY DESCRIPTION

PROPERTY DESCRIPTION


MIAMI, FL

DOWNTOWN HOTEL SITE

New Publix, GNC, and Wells Fargo

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida Š 2012 Marcus & Millichap

Site from North East Corner facing East

Property Photos 2

DOWNTOWN HOTEL SITE

7

MIAMI, FL

Property Photos

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida Š 2012 Marcus & Millichap

8

PROPERTY DESCRIPTION

PROPERTY DESCRIPTION


MIAMI, FL

DOWNTOWN HOTEL SITE

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida Š 2012 Marcus & Millichap

Plat Map

DOWNTOWN HOTEL SITE

9

MIAMI, FL

Area Maps

LOCAL MAP

REGIONAL MAP This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida Š 2012 Marcus & Millichap

10

PROPERTY DESCRIPTION

PROPERTY DESCRIPTION


MIAMI, FL

DOWNTOWN HOTEL SITE

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida Š 2012 Marcus & Millichap

Aerial Photo with Labels

DOWNTOWN HOTEL SITE

11

MIAMI, FL

Aerial Photo

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida Š 2012 Marcus & Millichap

12

PROPERTY DESCRIPTION

PROPERTY DESCRIPTION


MIAMI, FL

DOWNTOWN HOTEL SITE

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida Š 2012 Marcus & Millichap

South Easterly View

DOWNTOWN HOTEL SITE

13

MIAMI, FL

3D Aerial

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida Š 2012 Marcus & Millichap

14

PROPERTY DESCRIPTION

PROPERTY DESCRIPTION


DOWNTOWN HOTEL SITE MIAMI, FL

DOWNTOWN HOTEL SITE MIAMI, FL

Recent Sales Map

1) 2)

Downtown Hotel Site Miami Herald Property Mixed Use Development Site

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida Š 2012 Marcus & Millichap

16

RECENT SALES

RECENT SALES


SUBJECT PROPERTY

Sale Price:

$4,800,000

4,800,000

Lot Size (Acres):

Price/SF:

Lot Size (SF):

$15,930,966.00

0.3013

$365.71

13,125

DOWNTOWN HOTEL SITE 1789 Biscayne Boulevard Miami, FL 33132

Down Payment:

100%

609,840

Down Payment %:

$386.99

105 X 125

14.0000

Price/Acre:

Lot Size (SF):

$16,857,143

Lot Dimensions:

Price/SF:

T6-24-O, C-

05/26/2011

Lot Size (Acres):

27,007

Lot Dimensions:

Price/Acre:

Zoning:

Close of Escrow:

$236,000,000

MIAMI HERALD PROPERTY 1 Herald Plz Miami, FL 33132

Sale Price:

Down Payment:

Down Payment %:

Zoning:

$333.25

0.6200

Lot Size (SF):

$14,516,129

02-07-2012

MIXED USE DEVELOPMENT SITE 1825 Northeast 4th avenue Miami, FL 33132

Irregular

Close of Escrow:

Lot Size (Acres):

Price/SF:

Price/Acre:

$9,000,000

Lot Dimensions:

Sale Price:

Down Payment:

SD-6,

Down Payment %:

Zoning:

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2012 Marcus & Millichap

2

1

Recent Sales

DOWNTOWN HOTEL SITE

Avg $360.12

Avg $15,686,636

MIAMI, FL

Mixed Use Development Site

Mixed Use Development Site

DOWNTOWN HOTEL SITE

Miami Herald Property

Miami Herald Property

17

MIAMI, FL

Price/SF & Price/Acre AVERAGE PRICE/SF 400.00 360.00 320.00 280.00 240.00 200.00 160.00

80.00

120.00

0.00

40.00

Subject

AVERAGE PRICE/ACRE

16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000

0

2,000,000

Subject

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2012 Marcus & Millichap

18

RECENT SALES

RECENT SALES


Offices Nationwide www.MarcusMillichap.com

MIAMI, FL

DOWNTOWN HOTEL SITE

Presented By:

Concept Design Book

A New Way to Stay //

MARKET POSITIONING & PRICING ANALYSIS Ahmed Kabani Associate Miami Office Tel: (786) 522-7000 Fax: (786) 522-7010 License: FL: SL3115103 Ahmed.Kabani@marcusmillichap.com www.marcusmillichap.com/AhmedKabani

03.2013 /// TRACHTENBERG LLC

L i gh t H o u s e / //


03.2013 /// TRACHTENBERG LLC

The Concept /// Past + Present + Future

With its rich cultural history and well deserved reputation for some of the best weather in the world and establishing the idea of “living the life of luxury”, Miami is undoubtedly a world-class city, yet it is lacking in one area. With such a legacy, the current version of the luxury experience with thousand dollar bottles at packed clubs, celebrity dj’s, and laser light shows are not doing this legacy justice. In a city like Miami where money does not ensure access, the true definition of luxury must include access to the best of the life of luxury, which includes service, entertainment and socializing with like natured individuals. Experiencing luxury in the manner and style in which you desire is the paramount of living the life of luxury. The manner, frequency, and consistency in which the Lighthouse lifestyle of luxury will provide this paramount experience to our guests and residents creates a lifestyle and residential environment unique and incomparable to anywhere in the world. Living in the state of luxury requires not only access, but also convenience. Having access to the best of the life of luxury is the current standard for experiencing luxury. Having those things brought to your doorstep is “living in the state of luxury”, which is life at The Lighthouse. With Miami being one of the hottest travel destinations and condo markets in the world and the hotel market being one of the few markets experiencing increased tourism and higher rates for both occupancy and average daily rates, the opportunity to leverage both of these facts and capitalizing on Miami’s current lack of quality live music and entertainment makes this opportunity unique and one-of-a-kind. The Lighthouse brings together the culture of The City and appreciation for creation, music, and performance with the Miami lifestyle of luxury and celebrity, and infused with the universal spirit of the true appreciation of “the party scene”. This unique combination will make The Lighthouse a true destination experience for the few fortunate enough to experience it during their stay or for the truly fortunate who call it home.

03.2013 /// TRACHTENBERG LLC

The Concept /// Past + Present + Future

The Lighthouse Residences are an ultra-luxury condo and hotel with a private social club, rooftop pool and bar, world-class restaurant and spa, and performance lounge space. The Lighthouse experience will become the new beacon for what luxury living and accommodations are judged, yet globally incomparable due to the unique attributes of location, quality of facilities, and the world-class environment for entertainment which draws world-class talent, residents, and guests which creates world-class experiences and memories. The Lighthouse will be a cultural, architectural, technological, and ecological beacon for Miami. Bringing together the best of the old, using a bit of the current, and bringing them together to create a true destination experience where the of the experiences of “the life of luxury” are alive, vibrant and being created every day.

“Old fashion service is the most pleasent luxury.” - Andre Balasz


03.2013 /// TRACHTENBERG LLC

T e a m //

03.2013 /// TRACHTENBERG LLC

Team ///

Isaac Brown has been Director of Emerging Markets for Choice Hotels International for the past 9 years and has worked with Marriott developing over 60 properties. Prior to his current position, he was Architectural Designer, where he was responsible for prototype design for all Choice brands, and design reviews which these brands. In addition he has been responsible for almost a half a billion dollars worth of revenue during his tenure working in development at Choice International. Mr. Brown will be leaving Choice durring 2013 in his full-time capacity, and is currently in the early stages of developing four other properties where he is majority principal in the project. Mr. Brown has a masters degree in architecture from Louisiana State University and a MBA from New York University. Mr. Brown is a New York City native and will lead the development team for the project.

Scott Bednaz is a commercial broker and developer with 19 years experience in North and South Carolina. As President of TerraCorp Commercial properties and Tallus Development group Mr. Bednaz has negotiated the purchase, sale, or lease of 1 million square feet of commercial space, 3,500 acres of land resulting in $100 million in completed transactions. In 2005 he branched out from representation to develop his own projects including Advanced Auto, Hooters Burlington, The Estates at Barton’s Creek, and the Straw Valley Project. His projects have been recognized by multiple news and architectural outlets and received awards from the NC and Durham Preservation Societies.

Cedric H Watkins is a technologist and founder of a technology company providing solutions for the hospitality industry, Adjacent Innovations. Mr. Watkins is a seasoned business development and marketing executive who has founded marketing and technology companies and has done development projects in Raleigh and Newark, New Jersey.

Michael Sims, Jr. is an architectural design professional now living and working in Europe. He has over 10 years professional experience in combe), Coop-Himmelblau (Wolfgang Prix), Frank Gehry Associates, SOM (NY), UN Studio (Ben van Berkel), and co-taught workshops with Lebbeus Woods.

After attending UNC-Chapel Hill where he studied Management and Sociology, Mr. Watkins has lived in Manhattan and Miami for the last 12 years where he has developed a

As a proponent of BIM and parametric design processes, Mr. Sims has

real estate, hospitality, design, technology, and entertainment. Mr. Watkins will be project coordinator, lead business development, and serve as technology and guest experience architect.

projects including Manhattan’s tallest residential tower, Frank Gehry’s new 8 Spruce Street tower, the King of Morocco’s current theatre project, and the UN Studio in Amsterdam. He earned his Masters of Architecture from SCI-ARC, and a Bachelor of Architecture from the University of North Carolina at Charlotte. Mr. Sims has taught digital design at AIU (American Intercontinental University) in Los Angeles, and was an SOM instructor in an applied studies research collaboration with SCI-Arc, investigating concepts related to responsive kinetic façades. He is now with Zaha Hadid Architects in London.

Jordan Trachtenberg Assoc. AIA, LEED AP has practiced architecture nents ranging from Asia to South America. During 2009-2012 in Amsterdam, NL, while practicing under Ben van Berkel at UNStudio, Jordan led the design and execution as Coordinating Architect /Project Manager on several successful projects such as the Singapore University ish completion in 2014. In addition, Jordan led the design on successful competitions, small built projects, interior, and industrial design solutions, such as the Library + Center for New ship store in Rome, Italy and the 29th Annual Art Biennale’s Youturn Pavilion in Sao Paulo, Brazil. Jordan received the degree Master of Architecture, with Honors in Design, from Columbia University, NY, and holds a Bachelor of Design in Architecture, with Honors, from Florida International University, Miami.


03.2013 /// TRACHTENBERG LLC

Team /// Jordan Trachtenberg // Architecture Projects

Sample Work

www.jordantrachtenberg.com

Pavilion / Sao Paulo, Brazil

Library / Ghent, Belgium

University / NYC, New York

University / NYC, New York

Hotel / Philidelphia, PA

Library / Ghent, Belgium

University / Singapore

Office Park / South Korea

University / Singapore

Performing Art Center / S. Korea

Performing Art Center / S. Korea

Pavilion / Sao Paulo, Brazil

03.2013 /// TRACHTENBERG LLC

Sample Work

Team /// Michael Sims /// Architecture Projects

Commercial Tower / NYC, NY

Residental Tower / NYC, NY

Sympony Center

Residental Tower / NYC, NY

Tower / Abu Dabi

Sympony Center / Miami, Florida

Sympony Center

Theater / Moroco

Mixed Use / China

Tower / Abu Dabi Commercial Tower / NYC, NY


03.2013 /// TRACHTENBERG LLC

De sign M ode l //

03.2013 /// TRACHTENBERG LLC

Relations

Organization /// Event as an Integrated Concept primary

public

secondary tertiary semi-public

Double Quarters

The Event Space becomes the central not public nucleus to the program. All spaces are interwoven and interdependent .The circulation around the event spaces are a direct connection between the different clusters. The secondary route, Within each cluster, leads each visitor through the experience. The functional diagram shows the various user levels magnified to best visualize and represent each relationship. It fulfills the event space as a crucial link, as well as an element that binds together the different spaces of the hotel. The relationship between the Event Spaces and the surrounding clusters, creates various degrees of public / dynamic (central event space, Lounges, Restaurants) to private / introvert (quiet lounges, Quarters.)

Bed

Bath

Lounge

Single Quarters Event Space

Logistics

Lounge

Stage Event space

Bed

Event Space

Back offices Kitchen Pool + Deck

Auditorium Event Space

Restaurant

The shared Lounge/event spaces in turn form the internal link between the clusters of Quarters, and provide a smooth transition through the main event spaces. This seamless interweaving of function and circulation also creates various spatial experiences of open spaces, to intimate enclosed areas, and excites the visitors to discover and participate in the new way to stay.

Bath

Lounge +Bar

Parking

Relations

Lounge

Bed

Bath

primary

public

secondary

Loft Quarters

tertiary semi-public not public


03.2013 /// TRACHTENBERG LLC

Design Strategies /// Vertical to Lateral Our design philosophy is flexible in its concept. Depending on each site in context we adapt the design model to both vertical and horizontal typologies. This promotes a true understanding of our site, its surroundings, and how to best integrate the design model.

Vertical Landscape - Minimum Site Coverage - Iconic

Urban Social Landscape - Max Site Coverage

03.2013 /// TRACHTENBERG LLC

Organization /// Example // Plymouth Hotel + Ansonia

Plymouth example

extending Event Space throughout

roof terrace Quarters and lounge

Current Situation | Preserved Historical the Plymouth hotel is a Icon of Miami Beach. With proper direction the hotel will become a desitation. Linking Miami Beach to the sub culture and event spaces it desires.

Quarters

Pool and deck

Ansonia

Event Space Lounge

Lobby

Plymouth

The Plymouth Hotel as context; erties where our design ory and relationships of 1940’s Miami Beach Art Deco to most recently housing the New World Symphony student body will play an integral role in our event, marketing and branding. Preserved Historical the Plymouth hotel is an icon of Miami Beach. With proper direction the hotel will become a destination. Linking Miami Beach to the sub culture and event spaces it desires. Current Situation | Parralel sites that are less desierable are being broken down to the bare walls and recreated into moder hotels. Our objective is to go beyond our neighbors stting a new bar for the area.


03.2013 /// TRACHTENBERG LLC

RoofTer r ace

03.2013 /// TRACHTENBERG LLC

Organization /// Vertical Landscape // Site Context Bar/Social Event 150 Condo

Event 150 Hotel

Parking Restaurant Commercial

Lobby

The Design philosophy applied to this site in Edgewater, centrally located between MidTown, South Beach and Downtown offers an ideal proximity to tap into the optimal demographic applying a mixed use programmatic approach ampliďŹ es the ability to tap into multiple revenue streams.


03.2013 /// TRACHTENBERG LLC

Program Typologies /// Example aesthetics

Quarters //

Event Spaces //

Common Spaces//

03.2013 /// TRACHTENBERG LLC

Referenced ///


03.2013 /// TRACHTENBERG LLC

Details /// Technology + Space + Functionality Each square foot is thought about in detail. How to maximize interactivity, comfort and usability

03.2013 /// TRACHTENBERG LLC

Details /// Finishes, Materials, Texture, Lighting Crisp and simple details will allow the design to maintain a cost effective background and elegant foreground. // Crisp, sharp, elegant, defining,


03.2013 /// TRACHTENBERG LLC

Fin an cial s //


Urban Apartment: § I believe this is the most viable version § The sketches are very rough and don’t have an elevation; consider that a massing and general image similar to those in the Mixed Use and the Boutique Hotel could be used to visualize the scale and general appearance. § There is an optional 7th Floor showing 4 additional units, a Fitness Center and roof terrace shown. Note that these units are beyond the parking and would require the building type to become light gauge (non­combustible).  At 6 stories / 40 units (as shown) it could be wood framed. § An optional additional level of parking is shown, though we found digging further would be very costly, there is some rock below the site. Mixed Use Building § The materials and massing could be used for the apartment complex.  This scheme went to construction drawings and was generally approved by the City Planning agencies. Boutique Hotel § This would be an interesting use and would require a good operator.  Some parking would be available next door on the Housing Authority Site, with approval, but no long term deal.  There is a parking structure a block away. § The massing, perspective image is similar to the apartment concept and could be used to visualize the general apartment massing.

F. THOMAS MURPHY, AIA NCARB partner | principal architect

OLIVE  architecture OLIVE  design + build 436 n. harrington st. suite 140 raleigh, nc 27603 O  919.838.9934 (x203) F   919.838.9995 M  919.819.3296 tom@olivedb.com www.olivedb.com


F

E

D C

impact

excite

B A

SEVENTH LEVEL ROOF 68' - 8" 10' - 0"

SEVENTH LEVEL ROOF 68' - 8"

GREEN WALL; BY G-SKY OR EQUIVALENT

FIFTH LEVELAPARTMENTS 46' - 0"

10' - 0"

1

FOURTH LEVEL APARTMENTS 34' - 8" AWNING ABOVE MAIN ENTRANCE @ 11'-0" HT.

10' - 4"

FOURTH LEVEL APARTMENTS 34' - 8"

THIRD LEVEL OFFICE 22' - 4"

THIRD LEVEL OFFICE 22' - 4"

11' - 4"

DECORATIVE SECURITY ROLL-UP SCREEN - ON SITE PARKING BEYOND

SECOND LEVEL OFFICE 10' - 0"

3

STREET PLANTER

FIRST LEVEL PARKING 0' - 0"

DOOR AT ENTRY (314.5)

2

WEST 1" = 10'-0"

1

(316.5)

BASEMENT LEVEL PARKING -10' - 0" OPTIONAL: GREEN WALL TO EXTEND OVER WALL FACE; WALL TO BE POURED CONC. W/ DETAIL TO BE DETERMINED

empower reach d r a w n

Description City Comments DRC Review City Comments

b y:

PHJ, AHR c h e c k e d

p r o j e c t

d a t e:

12.18.08 EAST AND WEST ELEVATIONS

(306.5)

1

A3.1

EAST 1" = 10'-0"

5

6

7

8

9

impact

excite

GREEN WAL BY 10 G-SKY OR EQUIVALENT

11' - 4"

SEVENTH LEVEL ROOF 68' - 8"

11' - 4"

SIXTH LEVEL APARTMENTS 57' - 4"

12' - 4"

79' - 8"

69' - 8"

11' - 4"

FIFTH LEVELAPARTMENTS 46' - 0"

FOURTH LEVEL APARTMENTS 34' - 8"

12' - 4"

THIRD LEVEL OFFICE 22' - 4"

10' - 0"

SECOND LEVEL OFFICE 10' - 0"

10' - 0"

FIRST LEVEL PARKING 0' - 0"

BASEMENT LEVEL PARKING -10' - 0"

SOUTH 1 1" = 10'-0"

AWNING OVER MAIN ENTRANCE @ 11'-0" HT. ABOVE GRADE

empower reach focus

615 North Boylan Avenue Raleigh, NC 27603

4

Design Development

NOT FOR CONSTRUCTION

3

n o:

08-144 i s s u e

3

2

b y:

FTM

All construction shall be in accordance with all City of Raleigh Standards and Specifications.

1

9001 glenwood avenue raleigh, nc 27617

focus

r e v i s i o n s : Revision Date 1 10.20.08 2 11.04.08 3 12.04.08

919.838.9977 919.838.9995(fax) www.centrepointpa.com

FDC

FIRST LEVEL PARKING 0' - 0"

8' - 0"

FIRE ACCESS TO FIRE PUMP

9' - 0"

SECOND LEVEL OFFICE 10' - 0"

2

1

9001 glenwood avenue raleigh, nc 27617

FIFTH LEVELAPARTMENTS 46' - 0"

SIXTH LEVEL APARTMENTS 57' - 4"

8' - 0"

SIXTH LEVEL APARTMENTS 57' - 4"

615 North Boylan Avenue Raleigh, NC 27603

H G

NOT FOR CONSTRUCTION

G H

615 N. BOYLAN AVENUE

F

THESE DRAWINGS ARE THE COPYRIGHT OF CENTREPOINT ARCHITECTURE, P.A. THESE DOCUMENTS HAVE BEEN PREPARED SPECIFICALLY FOR THE PROJECT DESCRIBED IN THE ADDRESS BAR. THEY ARE NOT SUITABLE FOR USE ON OTHER PROJECTS OR IN OTHER LOCATIONS WITHOUT WRITTEN APPROVAL FROM THE ARCHITECT. REPRODUCTION IS PROHIBITED. IF SIGNATURE ON COVER SHEET DOES NOT APPEAR IN RED, THIS IS NOT AN AUTHORIZED COPY.

E

Design Development

615 N. BOYLAN AVENUE

C D

THESE DRAWINGS ARE THE COPYRIGHT OF CENTREPOINT ARCHITECTURE, P.A. THESE DOCUMENTS HAVE BEEN PREPARED SPECIFICALLY FOR THE PROJECT DESCRIBED IN THE ADDRESS BAR. THEY ARE NOT SUITABLE FOR USE ON OTHER PROJECTS OR IN OTHER LOCATIONS WITHOUT WRITTEN APPROVAL FROM THE ARCHITECT. REPRODUCTION IS PROHIBITED. IF SIGNATURE ON COVER SHEET DOES NOT APPEAR IN RED, THIS IS NOT AN AUTHORIZED COPY.

A B

919.838.9977 919.838.9995(fax) www.centrepointpa.com

3

All construction shall be in accordance with all City of Raleigh Standards and Specifications.

r e v i s i o n s : Revision Date 3 12.04.08

d r a w n

Description City Comments

b y:

PHJ, AHR c h e c k e d

b y:

FTM p r o j e c t

n o:

08-144 i s s u e

d a t e:

12.18.08 SOUTH ELEVATION

A3.2


Map created on 11/12/2008 4:48:17 PM. Copyright 2008. City of Raleigh, Wake County.

121 ft

615 N Boylan Avenue

0

Page 1 of 1

0 AC-W D017

1180 1458 2/2/2 0.23 6850 5009 COR RCM PRO 1704 1704 000 RAL RAL 0 0

Parcel Number: 1704410847-000 REID: 0038 OWNER1: CEN ADDR1: 9001 ADDR2: RAL ADDR3: DEED BOOK: DEED PAGE: DEED DATE: DEED ACRES: BLDG VAL: LAND VAL: BILLING CLASS: DESCRIPTION: MAP NAME: PIN NUM: PIN EXT: CITY: TOWNSHIP: YEAR BUILT: SALEPRICE: SALEDATE: TYPE USE: DESIGN STYLE: UNITS: LAND CLASS: OLD PARCEL NUMBER:

RALEIGH SITE ADDRESSES 1 STREET NUM: 615 STREET SUITE: STREET DIR PRE: N STREET NAME: BOY STREET TYPE: AV STREET DIR SUF: ADDRESS TYPE: Parc ADDRESS STATUS ACT CODE DESCR:

http://imaps.co.wake.nc.us/imaps/printmap.asp?pin=1704410847&pinext=000&minX=21... 11/12/2008

Raleigh, North Carolina

B O U T IQ U E H O T E L 6 1 5 N . B o y la n

April 24, 2009

SITE

9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995 www.centrepointpa.com

ATTENTION ACTION ADVENTURE ACCOMPLISHMENT ATTENTION ACTION

SD-1

Site Plan


B O U T IQ U E H O T E L 6 1 5 N . B o y la n Raleigh, North Carolina

April 24, 2009

18

19

20

22

23

24

15

16

17

Car Lift

21

Parallel Parking

Parking

1

2

3

4

5

6

7

8

9

10

11

12

13

14

9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995 www.centrepointpa.com

Legend Circulation

ATTENTION ACTION ADVENTURE ACCOMPLISHMENT ATTENTION ACTION

Parking

SD-2

Parking Lower Level

B O U T IQ U E H O T E L 6 1 5 N . B o y la n Raleigh, North Carolina

April 24, 2009

38

39

40

Car Lift

41

B.O.H

Parallel Parking

Parking

25

26

27

28

29

30

31

32

33

up

34

35

36

37

Legend Circulation Maintenance/B.O.H. Parking

9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995 www.centrepointpa.com ATTENTION ACTION ADVENTURE ACCOMPLISHMENT ATTENTION ACTION

SD-3

Parking Entrance Level


B O U T IQ U E H O T E L 6 1 5 N . B o y la n Raleigh, North Carolina

April 24, 2009

Exit Corridor

55

56

57

Car Lift

58

Parallel Parking

Lobby

M Registration

Parking W

Work Room

42

43

44

45

46

47

48

49

50

51

52

53

54

Sales

Manager

Legend Administrative Circulation

9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995 www.centrepointpa.com

Parking Public Areas Support

ATTENTION ACTION ADVENTURE ACCOMPLISHMENT ATTENTION ACTION

SD-4 Lobby Level

B O U T IQ U E H O T E L 6 1 5 N . B o y la n Raleigh, North Carolina

April 24, 2009

K Q

K

K

K

K

Hskpg.

K Hskpg.

K

K Q

Q

K

K

K

K

K

Q

Legend Circulation Guest Rooms Maintenance/B.O.H.

9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995 www.centrepointpa.com ATTENTION ACTION ADVENTURE ACCOMPLISHMENT ATTENTION ACTION

SD-5

Typical Guestroom Level


B O U T IQ U E H O T E L 6 1 5 N . B o y la n Raleigh, North Carolina

April 24, 2009

Q

K

K

Outdoor Terrace

Storage Exercise

Hskpg.

Women

Men

K Bar Pantry

Q

Q

K

K

K

Lounge

Legend Circulation

9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995 www.centrepointpa.com

Guest Rooms Maintenance/B.O.H. Support

ATTENTION ACTION ADVENTURE ACCOMPLISHMENT ATTENTION ACTION

SD-6

Guestroom/Lounge Level

PROJECT DATA Hotel Area (sf) 7,650 7,650 7,650 7,650 7,650 7,650 2,650

B O U T IQ U E H O T E L

Parking Area (sf)

6 1 5 N . B o y la n Raleigh, North Carolina

April 24, 2009 6,375 9,710 9,710 25,795

48,550

9'-6"

T.O. Roof 76'-4" Guestrooms/Lounge

9'-6"

Level 8 66'-10" Guestrooms

9'-6"

Level 7 57'-4" Guestrooms

9'-6"

Level 6 47'-10" Guestrooms

9'-6"

Level 5 38'-4" Guestrooms

Level 4 28'-10" Guestrooms

9'-6"

Parking Spaces 18 18 25 61

Level 3 19'-4" Parking

9'-8"

Guestrooms 9 17 17 17 17 17 94

Lobby Level 9'-8" Parking

Parking

9'-8"

Use Hotel Hotel Hotel Hotel Hotel Hotel Lobby/Parking Parking/B.O.H. Parking

8'-8"

Floor 8 7 6 5 4 3 Lobby Level Parking Entrance Level Parking Lower Level TOTAL

Parking Entrance Level 0" Parking Lower Level -8'-8"

9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995 www.centrepointpa.com ATTENTION ACTION ADVENTURE ACCOMPLISHMENT ATTENTION ACTION

SD-7

Schematic Section & Project Data


B O U T IQ U E H O T E L 6 1 5 N . B o y la n Raleigh, North Carolina

April 24, 2009

9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995 www.centrepointpa.com ATTENTION ACTION ADVENTURE ACCOMPLISHMENT ATTENTION ACTION

SD-8 View from SE

B O U T IQ U E H O T E L 6 1 5 N . B o y la n Raleigh, North Carolina

April 24, 2009

9001 glenwood ave raleigh, nc 27617 p 919.838.9977 f 919.838.9995 www.centrepointpa.com ATTENTION ACTION ADVENTURE ACCOMPLISHMENT ATTENTION ACTION

SD-9 View from NE


Map created on 11/12/2008 4:50:08 PM. Copyright 2008. City of Raleigh, Wake County.

121 ft

615 N. Boylan Avenue

0

Page 1 of 1

0 AC-W D017

1180 1458 2/2/2 0.23 6850 5009 COR RCM PRO 1704 1704 000 RAL RAL 0 0

Parcel Number: 1704410847-000 REID: 0038 OWNER1: CEN ADDR1: 9001 ADDR2: RAL ADDR3: DEED BOOK: DEED PAGE: DEED DATE: DEED ACRES: BLDG VAL: LAND VAL: BILLING CLASS:

DESCRIPTION:

MAP NAME: PIN NUM: PIN EXT: CITY: TOWNSHIP: YEAR BUILT: SALEPRICE: SALEDATE: TYPE USE: DESIGN STYLE: UNITS: LAND CLASS: OLD PARCEL NUMBER:

RALEIGH SITE ADDRESSES 1 STREET NUM: 615 STREET SUITE: STREET DIR PRE: N STREET NAME: BOY STREET TYPE: AV STREET DIR SUF: ADDRESS TYPE: Parc ADDRESS STATUS ACT CODE DESCR:

http://imaps.co.wake.nc.us/imaps/printmap.asp?pin=1704410847&pinext=000&minX=21... 11/12/2008


URBAN APARTMENTS Raleigh, NC PRELIMINARY PROFORMA

615 North Boylan Avenue

Floor Total (sf)

11/19/2010

URBAN APARTMENTS Raleigh, NC

Const.

Site Cost / Demolition

Land Purchase and Closing costs

Total Construction Cost

Land Carry ($2,000/ mo + taxes)

Cost

PRELIMINARY PROFORMA:

Const. PSF

LAND COSTS:

PROJECT INFORMATION

Total Area (sf)

657,150.00 HARD COSTS:

Project is based upon a development consisting of:

Parking Space

Unit Area

78.00

40 Apartments with lobby and fitness center and 40 parking spaces Bed / Bath

Units

8,425

Common Area

Floor

690

945 730

1 B/1 B

2 B/2 B

725,000.00

850,000.00

25,000.00

100,000.00

3,831,465.00

945

2 B/2 B

1 B/1 B

1 B/1 B

830

850

1,080

1,030

730

690

FHA Related Fees

Points and Fees

FINANCING COSTS:

Soft Subtotal

Marketing

Development Fee

Insurance

80,000.00

200,000.00

15,000.00

3,831,465.00

90,000.00

191,573.25

690

2 B/2 B

1,180

5.00%

615 North Boylan Avenue

estimate

estimate

(incl civil & entitlements)

1 B/1 B

690

945

(special inspections, waterproofing inspections, reimbursables)

730

1

SOFT COSTS:

1

1

Architect & Engineer

730

2 B/1 B

70,000.00

0.00

723,073.25

5,000.00

1

1030

2 B/1 B

10,000.00

19,500.00

112,000.00

1

1080

2 B/2 B

(includes appraisal and market study)

Consultants Permits & Fees

850

Legal (Development)

1,030

830

1,080

1,180

2 B/1 B 2 B/1 B

2 B/2 B

2 B/2 B

2 B/2 B

830

850 1180

1030

1

1

850

Legal (Closing)

1

830

Real Estate Taxes

1

1180

81,009.00

945

1

1,090

1

2 B/2 B

1

5,000.00

28,101.00

1,080

1,030 CONTINGENCY:

2.00% (of Hard Costs and Site Costs)

3.00% (of Hard Costs + Soft Costs)

78,629.30

136,636.15

184,110.00

2 B/2 B

BOND:

Financing subtotal

Construction Subtotal 657,150.00

1,090 78.00

Interest during sale

8,425

Real Estate Taxes

690

945

2 B/2 B 850

730

1 B/1 B

2 B/2 B

1030

830

1 B/1 B

690

945

1080 2 B/1 B 1,180

730

1 1

2 B/1 B

1

1

1 850 2 B/2 B

16.3% of Land Cost

187,034.14

624,528.80

134,475.00

5,803,913.70

830

TOTAL DEVELOPMENT COSTS:

1 1180

Land Cost

16.3% of Construction

(based on 83.7% LTV)

16.3% of Site Development

RETURN ON PROJECT / DEVELOPMENT PROFITABILITY:

Construction Cost

Original Investment

Site Development

730

1,090

1

657,150.00

1

78.00

690

945

8,425

1 B/1 B

2 B/2 B

Total:

1 B/1 B

690

945

850

1,030

730

1 2 B/2 B

1 1030

per month

per month

4,857,875.76

946,037.93

5,803,913.70

946,037.93

1

1,080 830

2 B/1 B 2 B/1 B

Additional Development based upon equity: Total Project Cost Less Project Investment Mortgage Amount

760.00

199,093.38 annually

50,953.73

0.00

2 B/2 B

1,180 657,150.00

850 830 2 B/2 B

78.00

1080

1180

8,425

1 1 1

770

1,090 945 757

1 B/1 B

2 B/2 B 2 B/1 B

770

945 757

1

APARTMENT INCOME

1

1

Rental Income at $1.50 / sf per month average (assume 5% vacancy) Trash/Water at $20/unit per month (assumes 5% vacancy)

725

OPERATING COSTS

1,080

Overhead

1 B/1 B

725

2 B/2 B

700

725

715

6,667.00

1 B/1 B

21.0%

$16,591.12

22,455.61

D&F Fee: (Leasing agent, Maintenance, Marketing, Admin)

725

4.7% @ 40 years 83.7% LTV

6,000.00

1

900

Return on Investment

Total Profit- monthly

Other: (Taxes, utilities, out-of pocket maint. costs, misc.)

1 B/1 B

58,760.00 190,000.00 3,831,465.00

Mortgage / Loan Carry

1 B/1 B

904

210,000.00

700

44,052

1,108

904

1,023

44,052

1,108

40

19

1,023 904 8,295

65.00

715

35,757

1

40

1

1080

86,955.00

1

85.00

1

900

1,023

1

1,090

1

1,090

1,090

1

1080

657,150.00

1

78.00

1

8,425

1

1,090

21

6

5

4

3

2

Fitness Ctr Lobby Level Parking Level

11/19/2010


03.2013 /// TRACHTENBERG LLC

The Concept /// Past + Present + Future The Triangle House Resort & Spa is a luxury, full service “inner-suburban” resort and conference center, with an emphasis on world-class facilities and service made comfortable with some southern hospitality. The project is an architectural, technological, and ecological showpiece for the “New North Carolina” which is building its reputation from the RDU/Triangle area, based of worldclass universities, research and industry, mild seasonal weather, and a quality of life paralleled by very few places in the country. The Triangle House Resort & Spa will have a focus on hosting small to medium sized university and corporate meetings and conferences. We will capitalize on the triangle’s geography and existent conference business and area attractions by providing the areas only world-class banquet and meeting spaces with conference focused facilities and guest-facing technologies. The Triangle House will continue the areas rich traditions of producing and showcasing world-class and local talent in the event lounge space. The hotel will tell this rich history through art, and help create new chapters with Artist-in- residency programs and providing a venue for the creation and expression for the wealth of talent in our area. The areas legendary universities and athletic programs will be steady drivers of business, including conferences, graduations, game-days, and other events. Banquet facilities, performance lounge, spa, retail and bar will also bring steady visibility, traffic, and revenue. The hotel will offer memberships to the private social club, which provides access to the wine bar and rooftop lounge, fitness facilities, preferential considerations for restaurant reservations, event tickets, facilities access, and discounts on hotel rooms. Designed by world-class architects and expertly appointed, Triangle House blends world-class hospitality with a collection of exquisite condominium residences located in the heart of the RTP area. Residents will enjoy access to Triangle House’s superlative services and offerings in addition to an array of enviable building amenities. The Residences at Triangle House represents the ultimate in

03.2013 /// TRACHTENBERG LLC

A New Way to Stay //

Concept Design Book

Tria ngl e Ho us e // /


03.2013 /// TRACHTENBERG LLC

T e a m //

03.2013 /// TRACHTENBERG LLC

The Concept /// Past + Present + Future

The property will be a hospitable and conducive environment for gathering, celebrating, working, creating, and relaxation, with a staff that exudes sincere hospitality and professionalism, without the stuffiness. The property will carry a mystique and demand reminiscent of what the Morgan Hotels had when they first opened. Where people wanted to stay there because it was the place to be in that area, where you experienced the newest trends, and you never know who would also being staying there. With a spa, pool, fantastic restaurants, rooftop and lobby bars, and the hottest club and live music venue in the area, a guest has no reason to leave the property. We will create this experience, and enable the guests to take some of the it with them, with our “Take it with You� program, which allows the guests to purchase anything they experienced at the hotel (bed, sheets, furniture, TV, food, art, etc). Additional property amenities will include a library to access and showcase research and the pursuit of knowledge. A place for people to study, work, and research, utilizing mobile kiosks linked to university libraries, with printing, creation, and business center facilities available.


Team /// Jordan Trachtenberg // Architecture Projects

Performing Art Center / S. Korea

University / Singapore

University / Singapore

Library / Ghent, Belgium

Hotel / Philidelphia, PA

University / NYC, New York

Library / Ghent, Belgium

Pavilion / Sao Paulo, Brazil

Performing Art Center / S. Korea

03.2013 /// TRACHTENBERG LLC

Sample Work

www.jordantrachtenberg.com

University / NYC, New York

Office Park / South Korea

Pavilion / Sao Paulo, Brazil

03.2013 /// TRACHTENBERG LLC

Team ///

Isaac Brown has been Director of Emerging Markets for Choice Hotels International for the past 9 years and has worked with Marriott developing over 60 properties. Prior to his current position, he was Architectural Designer, where he was responsible for prototype design for all Choice brands, and design reviews which these brands. In addition he has been responsible for almost a half a billion dollars worth of revenue during his tenure working in development at Choice International. Mr. Brown will be leaving Choice durring 2013 in his full-time capacity, and is currently in the early stages of developing four other properties where he is majority principal in the project. Mr. Brown has a masters degree in architecture from Louisiana State University and a MBA from New York University. Mr. Brown is a New York City native and will lead the development team for the project.

Scott Bednaz is a commercial broker and developer with 19 years experience in North and South Carolina. As President of TerraCorp Commercial properties and Tallus Development group Mr. Bednaz has negotiated the purchase, sale, or lease of 1 million square feet of commercial space, 3,500 acres of land resulting in $100 million in completed transactions. In 2005 he branched out from representation to develop his own projects including Advanced Auto, Hooters Burlington, The Estates at Barton’s Creek, and the Straw Valley Project. His projects have been recognized by multiple news and architectural outlets and received awards from the NC and Durham Preservation Societies.

As a proponent of BIM and parametric design processes, Mr. Sims has

After attending UNC-Chapel Hill where he studied Management and Sociology, Mr. Watkins has lived in Manhattan and Miami for the last 12 years where he has developed a

Michael Sims, Jr. is an architectural design professional now living and working in Europe. He has over 10 years professional experience in combe), Coop-Himmelblau (Wolfgang Prix), Frank Gehry Associates, SOM (NY), UN Studio (Ben van Berkel), and co-taught workshops with Lebbeus Woods.

Cedric H Watkins is a technologist and founder of a technology company providing solutions for the hospitality industry, Adjacent Innovations. Mr. Watkins is a seasoned business development and marketing executive who has founded marketing and technology companies and has done development projects in Raleigh and Newark, New Jersey.

real estate, hospitality, design, technology, and entertainment. Mr. Watkins will be project coordinator, lead business development, and serve as technology and guest experience architect.

projects including Manhattan’s tallest residential tower, Frank Gehry’s new 8 Spruce Street tower, the King of Morocco’s current theatre project, and the UN Studio in Amsterdam. He earned his Masters of Architecture from SCI-ARC, and a Bachelor of Architecture from the University of North Carolina at Charlotte. Mr. Sims has taught digital design at AIU (American Intercontinental University) in Los Angeles, and was an SOM instructor in an applied studies research collaboration with SCI-Arc, investigating concepts related to responsive kinetic façades. He is now with Zaha Hadid Architects in London.

Jordan Trachtenberg Assoc. AIA, LEED AP has practiced architecture nents ranging from Asia to South America. During 2009-2012 in Amsterdam, NL, while practicing under Ben van Berkel at UNStudio, Jordan led the design and execution as Coordinating Architect /Project Manager on several successful projects such as the Singapore University ish completion in 2014. In addition, Jordan led the design on successful competitions, small built projects, interior, and industrial design solutions, such as the Library + Center for New ship store in Rome, Italy and the 29th Annual Art Biennale’s Youturn Pavilion in Sao Paulo, Brazil. Jordan received the degree Master of Architecture, with Honors in Design, from Columbia University, NY, and holds a Bachelor of Design in Architecture, with Honors, from Florida International University, Miami.


Team /// Michael Sims /// Architecture Projects

Commercial Tower / NYC, NY

Residential Tower / NYC, NY

Symphony Center

Tower / Abu Dhabi

Residential Tower / NYC, NY

Symphony Center

Symphony Center / Miami, Florida

03.2013 /// TRACHTENBERG LLC

D e si gn M ode l //

03.2013 /// TRACHTENBERG LLC

Sample Work

Theater / Morocco

Mixed Use / China

Tower / Abu Dhabi Commercial Tower / NYC, NY


03.2013 /// TRACHTENBERG LLC

Design Strategies /// Vertical to Lateral Our design philosophy is flexible in its concept. Depending on each site in context we adapt the design model to both vertical and horizontal typologies. This promotes a true understanding of our site, its surroundings, and how to best integrate the design model.

Vertical Landscape - Minimum Site Coverage - Iconic

Urban Social Landscape - Max Site Coverage

Relations

03.2013 /// TRACHTENBERG LLC

Organization /// Event as an Integrated Concept primary

public

secondary tertiary semi-public

The Event Space becomes the central not public nucleus to the program. All spaces are interwoven and interdependent. The circulation around the event spaces are a direct connection between the different clusters. The secondary route, within each cluster, leads each visitor through the experience. The functional diagram shows the various user levels magnified to best visualize and represent each relationship. It fulfills the event space as a crucial link, as well as an element that binds together the different spaces of the hotel. The relationship between the Event Spaces and the surrounding clusters creates various degrees of public / dynamic (central event space, Lounges, Restaurants) to private / introvert (quiet lounges, quarters.)

Double Quarters

Bed

Bath

Lounge Lounge +Bar

Bath

Single Quarters Event Space

Logistics

Lounge

Stage Event space

Bed

Event Space

Back offices Kitchen Pool + Deck

Auditorium

The shared Lounge/event spaces in turn form the internal link between the clusters of Quarters, and provide a smooth transition through the main event spaces. This seamless interweaving of function and circulation also creates various spatial experiences of open spaces, to intimate enclosed areas, and excites the visitors to discover and participate in the new way to stay.

Event Space

Restaurant

Parking

Relations

Lounge

public

primary

Bed

Bath

secondary tertiary

Loft Quarters

semi-public not public


03.2013 /// TRACHTENBERG LLC

Organization /// Site Model // Northwest View North West

UNC/Duke/DPAC - 6mi. Research Triangle Park - 11 mi RDU Airport - 16 mi. Raleigh/NC State/PNC Center - 20 mi.

Proposed Triangle House Resort and Spa

Exisitng Straw valley Cafe

03.2013 /// TRACHTENBERG LLC

Organization /// Design Model // 01 Program

INPUT | Basic Program 100 units 50 Single 30 Doubble 10 Suites 6 Condos 2500 SQ feet of Event Space

02 Placement

SIte Placement and Typical Organization

- Maintains program requirements - Approach does not promote program intergration

04 Site Specific adaptation

03 Design model

Adaptable Model | Pulling of floor plates

- Pulling out frees up internal space for events - Creates a central organizational atrium - Maintains program requirements while promoting program integration - Landscape connectivity from inside out

Site Specific | Straw valley

Applying to the Site and making small adjustments adapts the Design model to its most ideal site to shape relationship.


03.2013 /// TRACHTENBERG LLC

Principles /// Sketch // Atrium Space Ground Level

03.2013 /// TRACHTENBERG LLC

Urban Context // Site Diagram

40 FWY

Duke University Downtown Durham Durham Performing Art Center Marriott Suites Straw Valley Site

15 501

Hilton Homewood Suites

University of North Carolina

Research Triangle Park RDU Airport


03.2013 /// TRACHTENBERG LLC

Principles /// Sketch // Landscape Connectivity

03.2013 /// TRACHTENBERG LLC

Principles /// Sketch // Atrium Space Pool Level


03.2013 /// TRACHTENBERG LLC

Program Typologies /// Example aesthetics

Quarters //

Event Spaces //

Common Spaces//

03.2013 /// TRACHTENBERG LLC

Principles /// Sketch // Site and view


03.2013 /// TRACHTENBERG LLC

Details /// Technology + Space + Functionality Each square foot is thought about in detail. How to maximize interactivity, comfort and usability

03.2013 /// TRACHTENBERG LLC

Referenced ///


03.2013 /// TRACHTENBERG LLC

Fi n an c i a l s //

03.2013 /// TRACHTENBERG LLC

Details /// Finishes, Materials, Texture, Lighting Crisp and simple details will allow the design to maintain a cost effective background and elegant foreground. // Crisp, sharp, elegant, defining,


Investing in secondary markets is lucrative

19 February 2013 By Aik Hong Tan HotelNewsNow.com columnist

Story Highlights

With interest rates remaining at historic low levels, cash-on-cash yield investing in secondary markets can be lucrative with the appropriate level of leverage. The key to successful investments in secondary markets is the existence of diverse and sustainable demand generators. The number of demand drivers in secondary markets is more targeted than in major markets. 

As the industry recovery continues to gain momentum, opportunities for investors abound. Whether it’s a full-service property in New York, San Francisco or Miami, a select service hotel in Pittsburgh or Raleigh, North Carolina, or a limited-service asset in Frisco, Texas, or Pueblo, Colorado, there is no shortage of capital waiting to get off the sidelines and back in the game.

With real estate investment trusts, sovereign funds and institutional capital chasing deals in the major markets, yields are being driven down to the range of 3% to 5%. The situation is quite different in the secondary markets, where capitalization rates are ranging from 8.5% up to as high as 12%. As a result, with interest rates remaining at historic low levels, cash-on-cash yield investing in secondary markets can be lucrative with the appropriate level of leverage.

With that said, to be successful, an investor must pay special attention to specific issues that are unique to any secondary-market deal.

Demand First and foremost, as with deals of any kind, careful study and understanding of demand generators in the market are crucial. The number and nature of demand drivers in secondary markets tends to be fewer and more targeted than in major markets such as New York or Los Angeles.

03.2013 /// TRACHTENBERG LLC

Financials/// Total Project Cost

$9.5MM for 80 hotel keys + $ 6MM to build 20 condos + $4MM for land

Number of Keys - 80 built at $180/sq. ft. = $9.5MM Cost per Key - $119K Comp Value for completed project $300K per key = $24MM ($500k = $40MM) Land (amortized purchase 4-5 yrs.) $4MM Construction cost $15.5MM Total (land +const.) = $20MM 10 condo units with 1350 sq. ft. to be sold at $203/sq. ft. = per unit $2757K 10 condo units with 2000 sq. ft. to be sold at $200/sq. ft = per unit $400K Condo Sales - 20 units = $6.75MM 80 Hotel Rooms with an average room size of 600 sq. ft. 48000 Sq. ft of hotel space built for $ 180 sq. ft = $8.64MM 33500 sq. ft of condo space built for $180 sq. ft = $6MM 5000 sq. ft of event and gathering space built for $130 sq. ft = $650K Median Home price in RTP is $343K Price per sq. ft Durham - $92 Chapel Hill - $220

Located on five acres and one of the busiest intersections in the state, 15-501 (100K VPD) and I-40 (20K VPD) Convenient to and offering shuttle service to major area destinations

Cary - $118

Revenue Streams Hotel: 80 rooms with a 60% occupancy rate has 17520 paid room nights with a ADR of $250 generates $4.3M/yr in revenues which is $358K/mo Banquet - $1MM/yr. Bars/Rest./Clubs - $1.5MM

UNC/Duke/DPAC - 6mi. Research Triangle Park - 11 mi RDU Airport - 16 mi. Raleigh/NC State/PNC Center - 20 mi.

Hotel will be worth $30MM with a $15MM mortgage which is a 50% LTV Condo owners can put their units into the hotel rental program when vacant and earn ROI, which makes attractive to parents of students at local universities and foreign investors.

- University community provides for constant stream of business of conferences, events, banquest, and area visitation - Luxury market historicly has higher occupancy rates than statewide ADR of 61% - World-class amenities, including spa, restaurant, rooftop lounge, pool, and private social club coupled with event, banquet, retail, and performance space will be incomparable to all other properties in the area, making it a distinctive destination attraction


In other cases, factors such as the construction or major refurbishment of a factory might bring new, short-term demand to the market, causing occupancy and average daily rate to increase but only temporarily.

It is important to understand the dynamics that draw travelers to the area. Sometimes it can be a single landmark such as a college or military base. In these cases, it is essential to realize that even one single event, like the closure of the military base, can have a major impact on demand.

property between the time of acquisition and the time of sale. Some strategies to accomplish this could include an upgrade of the brand as well as more focused and sophisticated management than the previous owner.

  

The panelists agreed the top 20 U.S. markets are still en vogue, but they also are increasingly finding success in markets such as Austin, Texas; Columbus, Ohio; and Pittsburgh.

HOUSTON—Brand executives detailed their recipes for development success Monday during an opening day panel at the Hospitality Law Conference.

Markets such as Austin, Texas, and Columbus, Ohio, are catching the eye of development executives. “We’ll certainly chase where there is oil demand,” Choice’s Shane Platt said. Generation X, Generation Y and millennials are driving the design of hotels today, panelists said.

Story Highlights

12 February 2013 By Shawn A. Turner Finance Editor Shawn@HotelNewsNow.com

Development execs share recipes for success

Conclusion New York’s Times Square and Main Street’s town square each offer opportunities for the hotel investor. Those who are most successful are the ones who understand the dynamics and distinct differences between the two market types and who are able to identify and capitalize on the factors that drive customer demand, influence supply and have an effective exit strategy.

The key to successful investments in secondary markets is the existence of diverse and sustainable demand generators. Examples might include a strong corporate base, a major university or popular attractions that draw leisure travelers on a consistent basis. One example of such a market is Burlington, Vermont. GE, IBM and Ben & Jerry’s ice cream have a major corporate presence there. The University of Vermont and Lake Champlain also attract weekend travelers from New England as well as Canada. With the exception of a slight decline during the depth of the recession in 2009, the revenue per available room in the Burlington market has increased consistently by 4% to 5% annually from 2007 to 2012. Supply Even though barriers to entry in secondary markets are not as high as in major markets, careful consideration needs to be given to key variables. At the top of that list is location as it pertains to potential new supply. For example, it is better to be in the downtown or core center of a secondary market rather than at a highway location in the outer ring. Why? It is harder to build in the urban center due to infill and permitting constraints, and because supply is limited in those areas, it poses a distinct advantage if a hotel can be acquired in the urban center. Buying at significant value below replacement costs is also a good strategy as it provides a significant cost advantage over a new-build hotel. Securing affiliation with top brands including Marriott International and Hilton Worldwide with a reasonable area of protection under the franchise agreement also works to mitigate against new supply entering the market. Exit strategy Exit strategies for hotels in secondary markets must be developed strategically and evaluated carefully. One question to ask is whether the current brand will be available to the next buyer. This depends, in large part, on the age of the asset. A select-service hotel with a major flag might sound like a great opportunity. However, it might not be such a good deal if the property is 40 years old and is unlikely to retain that same flag when the owner attempts to sell it three or four years later. As a result, the value of the hotel will be compromised greatly. It is also important to project how and why the value of the asset will increase by the time the hotel would be sold. In major markets, supply constraints and scarcity of land drive a natural appreciation of real estate prices over time. This is not the case in secondary markets, where real estate values are more subject to a range of variables. The most critical factor is how cash flow of the hotel would grow. To be successful, a buyer in a secondary market must clearly develop and implement a plan to increase the cash flow of the


“Some of these second-tier markets are phenomenal,” said Chip Ohlsson, VP of development at Starwood Hotels & Resorts Worldwide. Shane Platt, VP of franchise sales and development at Choice Hotels International, said it’s a “no brainer” that many of the company’s brands, such as Cambria Suites, need to be in the top U.S. markets. But creative development creeps into the picture when considering some other Choice brands, such as Sleep Inn. Platt said when considering development of that brand, the company looks for small markets that can support only one or two hotels. “Mid-market rates didn’t fall as far,” Platt said. “There’s been big interest in development of secondary and tertiary markets with the right brands.” There is a lot of developer interest in the Sleep Inn brand also because it is an affordable brand to build, he added. Developing around energy America’s energy industry boom in markets such as North Dakota and Texas has been a boon to the hotel industry, panelists said. Earlier in the day, Stephen Barth, founder and president of HospitalityLawyer.com, talked about a Motel 6 property in Odessa, Texas, that is generating a $310 average daily rate thanks to the energy industry. “It’s crazy right now,” Ohlsson said during the panel. And the executives said they’re looking to get their share of the market. Tye Turman, senior VP of hotel development at Marriott International, said the company is actively seeking development opportunities for its Fairfield brand in oil-patch markets. “We’ll certainly chase where there is oil demand,” Platt said. “If they keep finding oil, they’ll keep building hotels.” Design influence The panelists also discussed the emerging market dictating the design of these hotels. While the baby-boomer generation is still on the road, it is Generation X, Generation Y and millennials who are influencing hotel design, the panelists said. “Now we are designing hotels for the social media networking group,” Ohlsson said. “They want instant results.” Recent updates to the Courtyard by Marriott brand, for instance, were made with these new travelers in mind, Turman said. “At the end of the day, baby boomers, they’re still traveling. But Generation X, Generation Y, they’re the ones we have to appeal to,” he said. So when thinking about the redesign of the Courtyard by Marriott properties, Marriott focused on rounded corners instead of straight lines, Turman said. The company also chose muted earth tones for the guestrooms because these generations of travelers indicated they wanted to relax first and think about work second. The changes were rolled out in December during the company’s annual Courtyard by Marriott brand conference. Companies are also looking to eke out as much functionality as possible from public spaces, the panelists said. “It’s about getting people out of their rooms and creating a community environment,” Starwood Hotels’ Ohlsson said. $20-million wish list Moderator Rich Sprecher, VP of business development at Aimbridge Hospitality, asked the panelists what they would do in the hotel sector if handed a $20-million check. “I would love to say I’d go out and do new construction,” Ohlsson said.

Instead, Ohlsson said he’d likely acquire an office building and convert it to a design-centered brand. “Design is the future of our industry,” he said.

Choice’s Platt said he’d develop a variety of hotels in various markets and might also look to acquire an office building and give it “a fresh new look” as a hotel.

And finally, Turman said his wishes for the $20 million are not as complex. He would develop as many TownePlace Suites by Marriott and Fairfield Inn & Suites properties as possible because developers have shown a high level of interest in the brands.

“In our industry, sometimes we think too much,” he said. “We think it’s rocket science, and it doesn’t need to be.”

Move-ins help push demand in college towns

14 September 2012 By Samantha Worgull Editorial Assistant sworgull@hotelnewsnow.com

The Carolina Inn, a historic hotel located directly on UNC’s campus, sells out every move-in weekend. Occupancy increased by at least 10% in select U.S. college towns in comparison to July year-to-date numbers. Fargo, North Dakota, had the highest occupancy rates during move-in weekend.

Story Highlights   

REPORT FROM THE U.S.—While the fall travel season means a boon for many urban hotels, properties in more isolated college towns traditionally also report a demand uptick as students—and their parents—return to campus.

In Ann Arbor, Michigan, the University of Michigan is a steady demand driver, according to Joe Sefcovic, GM at the Holiday Inn near the University of Michigan.

“We have 9,700 kids move into the dorms at the university, and a total of 50,000 go to the university, so we see all those people moving into town,” he said “It definitely accelerates occupancy.”


Occupancy at his 225-room property—the largest hotel in Ann Arbor—was 90% during the university’s move-in weekend during 31 August. During the first seven months of the year, hotels in the market reported an average occupancy of 69.3%, average daily rate of $88.70, and revenue per available room of $61.43, according to STR, parent company of HotelNewsNow.com. Performance during Friday and Saturday night of move-in weekend were much stronger: Occupancy was 90.1% and 88.9%; ADR was $94.01 and $92.08; and RevPAR was $84.72 and $81.90, respectively. Hoteliers in Chapel Hill, North Carolina—home to The University of North Carolina at Chapel Hill—saw a similar bump in performance, according to STR data. Hoteliers reported average occupancy of 90.4% and 80.7%; ADR of $119.49 and 118.75; and RevPAR of $108.03 and $95.88 on 17 and 18 August, respectively. July year-to-date numbers showed occupancy of 70.2%, ADR of $110.58 and RevPAR of $77.58. The Carolina Inn, a historic hotel located directly on UNC’s campus, sees demand increase during every major weekend throughout the school year, including move-in, major sporting events and university-related meetings, said GM Jack Schmidt. “We sell out every move-in weekend and during seven home football games throughout the school year,” he said. “It's a good place to be because nobody is fully insulated from downturns in the economy, and universities drive a lot of business.” Manish Atma, owner of Atma Hotel Group, which manages a Holiday Inn Express, a Hampton Inn & Suites and a Hampton Inn in Chapel Hill, said move-in weekend is like any other. “We do see a spike in occupancy in August when travel is a little bit slow, but it’s staggered,” he said. “It’s a normal weekend, but the difference is we get a lot of questions from the family about the town.” Atma added approximately 70% of his hotels’ business comes from UNC and UNC Health Care, a not-for-profit health-care system associated with the university’s school of medicine. And while Fargo, North Dakota, reported some of the country’s highest occupancy rates during North Dakota State University’s move-in weekend—96% and 95.8% on 17 and 18 August, respectively—sources could not confirm demand was directly attributable to parents visiting. The 83-room Best Western Plus Kelly Inn & Suites in Fargo, five miles from NDSU’s campus, only filled three to five rooms with move-in-related travelers, said GM Lisa Amann. Still, occupancy at her hotel was 100% during the weekend. “It’s not an anomaly,” she said. “It’s not something where there’s an unconstrained demand because we’re not next door to the college.” Sandi Adams, GM at the 151-room Radisson Hotel Fargo, located in the heart of downtown, said most of her property’s business comes from meetings and conferences. She does, however, see some parents coming to stay. “We are more of a business hotel, and we do get parents here … but it’s not something that is huge numbers and huge occupancy,” she said. But even then, being able to attribute demand to any given generator can prove challenging, Adams added.

“It’s difficult because we don’t always know why people are here to stay.”


2012 North Carolina Lodging Report

A Publication of the North Carolina Division of Tourism, Film and Sports Development

January 2013

Division of Tourism, Film and Sports Development


In 2012 monthly hotel/motel occupancy followed the same general trend as in recent years. Historically, statewide occupancy is always higher during the summer months and October. Nine months of 2012 experienced the highest occupancy since 2007. Growth was stronger during the spring, summer and early fall, and slowed a bit in late fall/early winter. Information from neighboring states confirms similar trend lines for them, as well as nationwide estimates.

Monthly Occupancy in North Carolina 2007-2012 65%

55%

45%

35% January

February

March 2007

April

May

2008

June 2009

July 2010

August 2011

September

October

November

December

2012

Smith Travel Research, 2013

Division of Tourism, Film and Sports Development

2012 North Carolina Lodging Report 

Year-end 2012 hotel/motel occupancy was up 2.5% statewide from 2011. This represents a nearly fourteen percent increase over the last three years, and slightly above 2008 occupancy. Though still down about five percent from the peak in 2007, the last three years have significantly lessened the gap. The US occupancy and South Atlantic states occupancy were also up 2.5% from 2011. o

Occupancy in North Carolina 2005-2012 62%

60.4

60.0

60%

58.3

57.4

58%

56.1

55.9

56%

53.9

54% 50.5

52%

50%

+2.8%

-7.5%

+0.7%

+2.9%

+2.5%

+4.0%

+6.7%

-9.7%

48% 46% 44% 2005

2006

2007

2008

2009

2010

2011

2012

-1.5%

Smith Travel Research, 2013 *Occupancy – Rooms sold divided by rooms available. Division of Tourism, Film and Sports Development


Room rates (ADR) in North Carolina in 2012 were the highest on record (+0.5% over the previous high in 2008). In particular, September rates, as a result of the Democratic National Convention, increased four percent statewide (38% in the Carolinas Region). Late fall/early winter saw the highest room rates on record for those particular months.

$95.00

Monthly ADR in North Carolina 2007-2012

$85.00

$75.00

$65.00 January

February

March

April 2007

May 2008

June 2009

July

August

2010

2011

September

October

November

December

2012

Smith Travel Research, 2013

Division of Tourism, Film and Sports Development



2012 room rates (ADR) in North Carolina were up 4.5% from 2011, just topping the 2008 average rate to be the highest on record. Room rates have increased seven percent over the last two years. o The US ADR was up 4.2% from 2011. ADR in the South Atlantic states was up 3.1% from 2011.

Average Daily Room Rates (ADR) in North Carolina 2005-2012 $90.00

$81.51

$84.84 $80.21

$81.86

$79.80

$85.34

$75.73 $70.42

$75.00

$60.00 -5.5%

+4.1%

+7.6%

+7.5%

+3.8%

+2.6%

-0.5%

+4.5%

$45.00

$30.00 2005

2006

2007

2008

2009

2010

2011

2012

+21.2%

Smith Travel Research, 2013 *ADR (Average Daily Rate) – Room revenue divided by rooms sold.

Division of Tourism, Film and Sports Development


2012 statewide monthly Revenue per Available Room (RevPAR) increased each month from 2011, particularly late spring, summer and early fall. As with ADR, RevPAR was at a record in September, due in part to the increased room rates as a result of the DNC in Charlotte.

$70.00

Monthly Revenue Per Available Room (RevPAR) in North Carolina 2007-2012

$65.00 $60.00 $55.00 $50.00 $45.00 $40.00 $35.00 $30.00 $25.00 $20.00 January

February

March

April 2007

May 2008

June 2009

July

August

2010

September 2011

October

November

December

2012

Smith Travel Research, 2013

Division of Tourism, Film and Sports Development

Statewide, Revenue Per Available Room (RevPAR) was up 7.1% from 2011, nearly reaching the peak set in 2007. RevPAR has increased over twenty percent in the last three years. Nationally, RevPAR was up 6.8% from 2011. South Atlantic states RevPAR was up 5.7% from 2011. o

Revenue Per Available Room (RevPAR) in North Carolina 2005-2012

$55.00

$49.13 $50.00

$49.00 $47.46 $45.92

$45.44 $43.05

$45.00 $41.02 $40.00

$40.52

+10.8%

+6.6%

-3.4%

+8.1%

-14.6%

+6.7%

+6.2%

+7.1%

$35.00 2005

2006

2007

2008

2009

2010

2011

2012

+19.5%

Smith Travel Research, 2013 *RevPAR – Revenue Per Available Room – Room revenue divided by rooms available (occupancy times average room rate will closely approximate RevPAR)

Division of Tourism, Film and Sports Development


Room Supply in 2012 followed the same trend line as last year, showing more growth in the second half of the year.

Monthly Room Supply in North Carolina 2007-2012 5,000,000

4,800,000 4,600,000 4,400,000 4,200,000 4,000,000 3,800,000 3,600,000 3,400,000 3,200,000 3,000,000 January

February

March

April 2007

May 2008

June 2009

July

August

2010

September 2011

October

November

December

2012

Smith Travel Research, 2013

Division of Tourism, Film and Sports Development

2012 Room Supply was up 0.7% in the state from 2011. Room supply has increased 8.5% since 2005, in small part leading to some of the decrease in occupancy over that time period. Room supply in 2012 is at its highest on record for North Carolina with nearly 53 million room nights available for the year. Nationally, room supply was up 0.5%. Room supply was flat from 2011 to 2012 in the South Atlantic region overall. o

Room Supply in North Carolina 2005-2012 49,750,126 50,000,000

48,621,947

48,511,069

51,185,909 52,272,499 52,407,657

52,765,069

48,920,614

48,000,000 46,000,000 -0.3%

-1.3%

44,000,000

+0.8%

+1.7%

+0.7%

+0.9%

+2.1%

+2.9%

42,000,000 40,000,000 2005

2006

2007

2008

2009

2010

2011

2012

+8.5%

Smith Travel Research, 2013 *Room Supply – The number of rooms times the number of days in the period.

Division of Tourism, Film and Sports Development


Nearly every month in 2012 showed increased statewide Room Demand from 2011, setting records in many months. Winter months were fairly flat, but spring and summer picked up before slowing in late fall. Due to an increased supply in rooms over the last several years, demand has fared somewhat better than occupancy; meaning a slightly smaller number of people are filling an even larger number of rooms than in previous years.

Monthly Room Demand in North Carolina 2007-2012 3,000,000 2,800,000 2,600,000 2,400,000 2,200,000 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 January

February

March

April 2007

May 2008

June 2009

July

August

2010

September 2011

October

November

December

2012

Smith Travel Research, 2013

Division of Tourism, Film and Sports Development

2012 Room Demand was up 3.2% in the state, and surpassed 2007 demand to reach a new record for lodging demand in North Carolina. More than 30 million room nights were sold in 2012. Since 2005, room demand is up 7%. Room demand was up 3.0% nationally and up 2.6% in the South Atlantic region from 2011 to 2012 o

Room Demand in North Carolina 2005-2012 30,296,298

31,000,000

29,509,250

30,000,000 29,000,000

29,396,468

29,082,633 28,326,368

28,140,015

28,075,933

28,000,000 26,222,409

27,000,000 26,000,000

+1.4%

+2.7%

-4.9%

+1.5%

+7.3%

-6.6%

+3.2%

+4.5%

25,000,000 24,000,000 2005

2006

2007

2008

2009

2010

2011

2012

+7.0%

Smith Travel Research, 2013 *Room Demand – The number of rooms sold (excludes complimentary rooms).

Division of Tourism, Film and Sports Development


North Carolina room revenues in 2012 showed very positive increases nearly every month over 2011, particularly during September (as a result of the previously noted DNC in Charlotte). However, May through August and October through December also reported strong growth in revenues.

Monthly Room Revenues in North Carolina 2007-2012 260,000,000 240,000,000 220,000,000 200,000,000 180,000,000 160,000,000 140,000,000 120,000,000 100,000,000 January

February

March

April 2007

May 2008

June 2009

July

August

2010

September 2011

October

November

December

2012

Smith Travel Research, 2013

Division of Tourism, Film and Sports Development

North Carolina room revenues were up 7.9% in 2012 from 2011, reaching nearly $2.6 billion and topping the previous high set in 2007. Statewide room revenues have increased nearly thirty percent since 2005. This is due in part to the increased ADR from 2005-2007, and a resurge in 2011. However, demand has also increased over fifteen percent over the last three years, contributing to the increased revenues as well. Nationally, room revenues were up 7.3%. In the South Atlantic states, room revenues increased 5.7% from 2011 to 2012. o

Room Revenues in North Carolina 2005-2012 ($ billions)

$3.00

$2.40 $2.20

$2.50

$2.59

$2.41

$2.35

$2.24 $2.06

$1.99

$2.00 $1.50 +5.2%

$1.00

+10.4%

+9.2%

-2.1%

+8.5%

-12.4%

+7.6%

+7.9%

$0.50

$0.00 2005

2006

2007

2008

2009

2010

2011

2012

+29.6%

Smith Travel Research, 2013 *Room Revenue – Total room revenue generated from the sale or rental of rooms. Division of Tourism, Film and Sports Development


Articles from recapping the 2012 Lifestyle/Boutique Hotel Development Conference

Booming Boutique Business Meets in Miami Beach

Oct 19, 2012 7:06 AM, By Ed Watkins

South Florida Leads the Way Back in Boutique/Lifestyle Segment

Jason Pomeranc of Commune Hotels believes in some cases branding can be a negative in obtaining financing.

It‟s no surprise to anyone that the boutique and lifestyle segments of the hotel industry are doing well. And based on strong operating performance in the sector, interest in the product has gained a lot of ground in recent years from developers, operators, lenders and even traditional brand companies. And nowhere is that trend more evident than in Miami, and in its Miami Beach submarket, one of two epicenters (Manhattan is the other) of the boutique and lifestyle hotel industry.

As Jay Coldren, vice president of lifestyle brands at Marriott, said during an opening panel at this week‟s Lifestyle/Boutique Hotel Development Conference, “If you‟re serious about this segment, you must be in Miami.”

Lodging Hospitality, in conjunction with HVS Hotel Management, sponsors LBHDC, which is being held at the Fontainebleau Hotel in Miami Beach. The School of Hospitality Management at Michigan State University is the conference‟s academic sponsor.

New data from STR shows the strength of the Miami area markets. Year-to-date through August occupancy for Miami was 77.7%, while RevPAR increased a whopping 8.2%. And perhaps most promising is the news that ADR has almost fully recovered to pre-recession levels, a process that took 48 months.

The success of the lifestyle/boutique segment is having an effect throughout the industry. All hotels, but especially lifestyle and boutique properties, need to become “more experiential and sensory, said Marriott‟s Coldren. “The alternative is to perish.”

Methodology While virtually every chain in the United States provides STR with data on almost all of their properties, there are still some hotels that don't submit data. However, every year STR examines guidebook listings and hotel directories for information on hotels that don't provide data. STR calls each hotel in their database every year to obtain "published" rates for multiple categories. Based on this information all hotels are grouped - those that report data and those that don't - into groupings based off of price level and geographic proximity. They then estimate the non-respondents based off of nearby hotels with similar price levels.

Glossary ADR (Average Daily Rate)

Revenue (Room Revenue)

Room revenue divided by rooms sold.

Total room revenue generated from the sale or rental of rooms.

Affiliation Date

RevPAR - Revenue Per Available Room Room revenue divided by rooms available (occupancy times average room rate will closely approximate RevPAR).

Date the property affiliated with current chain/flag Census (Properties and Rooms)

Sample % (Rooms) The % of rooms STR receives data from. Calculated as (Sample Rooms/Census Rooms) * "100".

The number of properties and rooms that exist (universe) Change in Rooms Indicator of whether or not an individual hotel has had added or deleted rooms.

Standard Historical TREND Exchange Rate

Data on selected properties or segments starting in 1997.

The factor used to convert revenue from U.S. Dollars to the local currency. The exchange rate data is obtained from Oanda.com. Any aggregated number in the report (YTD, Running 3 month, Running 12 month) uses the exchange rate of each relative month when calculating the data. Demand (Rooms Sold)

STR Code Smith Travel Research's proprietary numbering system. Each hotel in the lodging census has a unique STR code. Supply (Rooms Available)

The number of rooms sold (excludes complimentary rooms).

The number of rooms times the number of days in the period. Twelve Month Moving Average The value of any given month is computed by taking the value of that month and the values of the eleven preceding months, adding them together and dividing by twelve.

Full Historical TREND Data on selected properties or segments starting in 1987. Occupancy Rooms sold divided by rooms available.

Year to Date Open Date

Average or sum of values starting January 1 of the given year.

Date the property opened Percent Change Amount of growth, up, flat, or down from the same period last year (month, ytd, three months, twelve months). Calculated as ((TY-LY)/LY) * "100".

Division of Tourism, Film and Sports Development


An example of how this segment has grown is seen in the financing arena. While many believe it‟s difficult for non-branded hotels to attract debt or equity financing, Jason Pomeranc of Commune Hotels said a brand can actually be a negative for a boutique hotel seeking financing, particularly in some high-rate markets like New York City. “With some products and in some markets it‟s warranted [to affiliate with a brand], but lenders and institutions are starting to see in certain sectors you can do without brands and be better off,” said Pomeranc. Commune includes a JdV Collection and the Thompson-brand hotels. He said the company is also developing a new value-oriented, design-driven chain that will compete with boutiques in lower price segments.

Marriott‟s Jay Coldren says all hotels need to take on some of the characteristics of boutique hotels. Nor surprisingly, Coldren of Marriott had a different opinion. In explaining the rationale for Marriott‟s soft-brand Autograph Collection, he said, “People are looking for the ability to function independently in the lifestyle segment but also to have a floor to their risk. By plugging into our [reservations system] but maintaining the independent integrity of these hotels gives lenders a lot more comfort and the financing comes a lot easier.” The boutique segment is a beneficiary to what Denihan Hospitality President David Duncan called a “raindrop recovery. Recovery very specifically depends on where you are,” he said, adding that while nationwide about 35% of jobs lost in the downturn have returned, in New York City 135% of jobs have returned. Denihan has 16 hotels under two brands (Affinia and James) and a collection of independent properties. “That‟s why we focus on the top five to 10 markets and in the center cities of those markets.” Every industry conference panel focused on the boutique segment seems obligated to define the word boutique, and this one was no different. While terms like “luxury finishes,” and “individualized experiences” were cited by some panelists, Trust Hospitality President & COO Patrick Goddard may have had the most insightful take on the topic. “In many ways, a consumer‟s lodging decision is a form of self-expression,” he said. “That‟s the way consumers buy certain brands of cars, clothing or shoes. The ways they choose a restaurant or a hotel are reflections of themselves. So when we‟re creating a brand identity or voice, we look at the target demographic and think about what they want in their experience.” “Lifestyle” may be an even harder term to pin down. As Coldren said, “Every consumer product on the market seems to have a „lifestyle‟ bent to it, right down to „lifestyle tires.‟” And as moderator Jeff Higley of Smith Travel Research noted, the notion of a lifestyle product is really not new in the hotel industry. “Even Knights Inn was developed decades ago as a lifestyle hotel because it catered to the lifestyle of truckers,” he said.

Independent and Boutique Hotels Gain Mainstream Acceptance by Eric Stoessel October 19th, 2012

What Ian Schrager and Bill Kimpton started 25 years ago on opposite ends of the country in gateway cities like San Francisco and New York has now met in the middle. Independent boutique hotels can work — and thrive — in cities like Milwaukee, and developers at the fourth annual Lifestyle/Boutique Hotel Development Conference in Miami this week talked about projects in faraway places like Montana, Kentucky and Tennessee.

The segment has reached mainstream acceptance by consumers, investors and even the hotel franchise companies.

Jay Coldren, vice president of lifestyle brands for Marriott International, said it‟s because of a generational — and transformational — shift happening as Gen Y consumers and their preference for lifestyle hotels take over buying power from the Baby Boomers in the next five years.

Coldren heads Marriott‟s fast-growing Autograph Collection, a pseudo-brand allowing owners more independence, yet a connection to the powerful Marriott system. Other hotel franchise companies have similar offerings, like Choice‟s Ascend Collection, and more will follow in the next five years, said Jeff Low, CEO and founder of Stash Hotel Rewards.

Investors and lenders are also taking notice. Neil Shah, president and chief operating officer of Hersha Hospitality Trust, said in some markets independents have recovered faster than their branded-counterparts and are trading at similar or even premium levels, in part because they are unencumbered of a franchise or management contract. He also added that during the last cycle there were many lenders who were only interested in branded properties. “Not anymore,” he said during a general session at the Fontainebleau Thursday. “That‟s changing. More investors are interested in independents.”

The general acceptance of the segment and success stories like the Iron Horse in Milwaukee have helped open the door to new development in secondary markets. Patrick Goddard, president of Trust Hospitality, said his company even targets some of those non-gateway cities. “There are different prices, investments and it may be harder to get financing, but it can be done,” he said.

When this conference began three years ago we talked about the “burgeoning” lifestyle and boutique segments. They‟re now booming. Related Topics: General |


Independent Hoteliers Share Best Practices Oct 23, 2012 9:03 AM, By Eric Stoessel Jeff Low, founder and CEO of Stash Hotel Rewards, said one of the biggest challenges facing independent hotel owners and operators is their “isolation.” They have no “idea bank” to draw from. At last week‟s Lifestyle/Boutique Hotel Development Conference at the Fontainebleau in Miami, a panel of independent hoteliers traded best practices and shared similar stories of the challenges they face competing in a branded world. The panel — titled, „Independents‟ Day‟ — was moderated by Paramount Lodging Advisors Associate Michael Kitchen, and also included Stash‟s Low, Clarendon Hotel Owner and General Manager Ben Bethel, Gemstone Resorts Principal Jeff McIntyre and Cambean Hospitality President Brian Scheinblum. “What‟s cool about being an independent is the customer tells us what we should be doing, not the brand,” said McIntyre. “We‟re in the business of making memories.” Being nimble and capable of reacting quickly to problems and market situations was the consensus advantage independents have. “We can do what we want when we want,” said Scheinblum, whose Cambean Hospitality owns and operates four small boutique hotels in South Beach. Online travel agencies were the biggest challenge facing independents, the panel agreed. “Independents have twice the bookings from OTAs,” said Low. “Think about that, there‟s so much money going out. Meanwhile you‟re calking your window to save money and you‟ve got an entire wall missing. A lot independent players just aren‟t aware …

He also said OTAs could be a “great tool” for distressed properties, which Gemstone often is brought on to manage. “As independents, those channels can‟t be ignored.”

Like the OTAs, where franchise partners often get better margins through brand-negotiated rates, procurement was another area of concern for the independent hotelier. Low said he‟s heard from his hotel partners that margins they‟re paying for purchasing products can be 25%, while the rate is as low as 17% for at least one of the large franchise companies.

Bethel, the owner and general manager of the Clarendon, said he‟s ordered products direct from Amazon.com and also recommended alibaba.com for sourcing and shipping direct from factories around the world.

Bethel, who had no prior hotel experience, said he‟s not afraid to call other owners and properties he respects to ask for advice. It was his only education after maxing out credit cards and using home equity loans to buy the dilapidated building in Phoenix two weeks after he first considered the idea.

At the Clarendon, he doesn‟t see an ROI in having a sales staff and doesn‟t employ a director of sales. Instead, he heavily incents his front-desk staff with 20% to 50% commissions for every room upgrade, early check-in or additional pool pass sold, meaning they can make up to $80,000 per year on their $10/hour salary. “Our front desk staff is so important, not just for loyalty building, but to increase revenue,” he said.

Even more outside the box, Bethel charged guests for his property taxes during the downturn to stay afloat when he couldn‟t even make his debt service. A 5% property tax fee was included on all folios and also listed as a surcharge at all online sites. “We brought in $90,000 initially and it enabled us to catch up,” he said. “It‟s not what I wanted to do, but at the time was something I thought was a great idea when we were having problems making ends meet.”

Be Strong If You Want to Finance a Boutique Hotel

“If OTAs are like crack, then flash sales are like meth. Either way, your teeth fall out.” Stash Rewards has approximately 200 hotel partners taking advantage of its loyalty program for independents that helps offset franchised chains‟ hugely successful rewards programs.

Cash Flow Is the Most Important Ingredient

In the final analysis, finding financing for a transaction involving a boutique or lifestyle hotel isn‟t much different than for a more traditional branded property. Most speakers on the topic at last week‟s Lifestyle/Boutique Hotel Development Conference in Miami agreed it‟s all a matter

A panel on lending to boutiques said strong and stable cash flow is the most important element in securing financing.

Oct 24, 2012 6:44 AM, By Ed Watkins

During the downturn, Scheinblum said, there were many hotels probably “borderline losing money on every single room they sold through OTAs” because of the reduced rates and high commissions. “Capture and keep,” said McIntyre of the strategy after bringing in a customer through an OTA booking. “We don‟t just look at the 24% (cost), but (OTAs) are also a search engine to us. Many customers look at pricing and product offerings and then book at the hotel‟s website. There is a billboard effect.”


of strength: a strong story, strong sponsorship and management and, perhaps above all, strong cash flow. “In putting together the capital stack for a boutique property, the first questions to come up are what is the cash flow, how stable is it, how does it compare to the peak of the market and how much more room is there to grow,” said Frank Nardozza, chairman & CEO of REH Capital Partners, who spoke on a panel titled „The Boutique Lending Landscape.‟ “If we can articulate the cash flow, we can then get the interest of capital, both debt and equity.”

Financing is easier for boutique properties in a hot market like Miami, said Suzanne Amaducci-Adams of Bilzen Sumberg law firm. While she agreed “cash is king,” attorney Suzanne Amaducci-Adams said capital sources also look at other factors in considering debt or equity placement for a boutique hotel transaction. Location, uniqueness of product, food and beverage offerings and sponsorship are on her list of important items. “The market is critical. Miami is so hot right now it‟s a lot easier to get financing for a boutique hotel here,” said Amaducci-Adams, a partner with the Miami firm of Bilzen Sumberg. “The hotel needs to be unique and part of that often is food and beverage. But, at the end of the day, it‟s all about sponsorship.” Still, some significant barriers exist for boutiques that make acquirers, and especially developers, work harder to get funding for their projects. The consensus among panelists was that boutique and lifestyle hotels are financeable, but it may cost more to do so. Nardozza speculated while loan-to-value ratios for financing of a traditional branded hotel may be as high as 70%, it‟s more like 60% to 65% for non-branded properties or boutique hotels. And debt yields (net operating income divided by the amount of the loan) tend to be higher, he said. Cassie Resnick, a vice president of Mast Capital, pegged yields for boutique deals at 9%-10% up to 13% if it‟s a particularly risky deal. Craig Greenberg of 21c Museum Hotels said it took a complicated web of financing vehicles to fund the company‟s first boutique hotel in Louisville, KY.

Another panel at the conference tackled the problem of how to overcome the often-negative perception lenders have about unbranded and independent boutique hotels. Craig Greenberg, president of 21c Museum Hotels, acknowledged the issue is especially critical in the markets in which his firm operates. The company has a successful property open in Louisville, KY, with another to open next month in Cincinnati, followed by one in northwest Arkansas.

“It‟s definitely more challenging, especially in smaller or medium-sized cities, to get money,” said Greenberg, who showed the audience an elaborate chart outlining the variety of funding sources—a mix of tax credits, rebates, grants, equity and traditional recourse bank loans—used to develop the first 21c. “In that kind of environment, it usually takes a perfect story to put together a financing package.”

Oliver Striker, a director at UBS Investment Bank, agreed, saying his firm, which provides both CMBS financing and direct investment, takes a “holistic approach” to evaluating financing proposals, both from traditional hotels and also boutique and lifestyle properties. While he said location is a primary factor, it‟s not the only one.

“Gateway cities with high barriers of entry and depth of demand are obviously preferred,” he said, “but sponsorship is also crucial, especially the depth of experience they have in the sector. It‟s also important the sponsor has skin in the game, because it forces them to keep their eyes on the ball.”

Despite these caveats, speakers on both panels believe financing for boutique and lifestyle products, both branded and non-branded, is becoming more mainstream.

“Because real cash flows are showing up on the bottom lines of boutique hotels, there is more receptivity in the lending community to funding and capitalizing [these products],” said Nardozza. “It‟s a more familiar product to guests and a more familiar product to the capital markets.”



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