Priority for Minimum Investment of $250,000
Purchase Price
$2M
Construction Cost
$12M
Projected Sale Price
$27.6M
Property Size
53 Units
Projected Completion Date
July 2024
Projected Sale Date
10 Years
This property is comprised of two adjoining lots—2021 & 2027 Jefferson Street. Both lots are located in the Parkside neighborhood in Hollywood, a well-known and established area that has become a hub for new technology, artistic communities, and creative businesses.
The project will be home to 53 Class-A residential units in a seven-story building filled with luxury amenities. The property will sit in a vibrant and thriving district and have excellent access to all forms of transportation, entertainment, retail corridors, and a Neighborhood Walk Score of 91.
Both the 2021 and the 2027 sites are within the DH-3 zoning district, and they’ll soon be shovel-ready with expectations to break ground in the winter of 2023.
Address
2021 Jefferson Street
City
Hollywood
State
Florida
Building
Ground Up, Apartment
Units
53
Residential Square Feet
50,638
Status
Open For Investment
UNIT MIX
Unit Type
# of Units
Avg SF/Unit
Pro Forma Rent/Unit
Pro Forma Rent/SF
Studio
4
400
$1,800
$4.5
1 Beds
28
679
$2,300
$3.3
2 Beds
16
989
$2,700
$2.7
2 Beds Penthouse
5
989
$3,100
$3.1
COMPARABLES
Address
Type of Unit
Avg SF/Unit
Pro Forma Rent/Unit
Pro Forma Rent/SF
1818 Hollywood Blvd
Studio
389
$1,696
$4.35
1818 Hollywood Blvd
1 Bedroom
595
$2,102
$3.5
1818 Hollywood Blvd
1 Bedroom
650
$2,140
$3.3
1818 Hollywood Blvd
2 Bedroom
1,065
$3,229
$3.03
1776 Polk Street
1 Bedroom
765
$2,639
$3.44
1776 Polk Street
2 Bedroom
1,100
$2,959
$2.69
2165 Van Buren
1 Bedroom
836
$2,627
$3.14
2165 Van Buren
2 Bedroom
1,242
$3,078
$2.47
The project will focus on the new demand for Post-Covid amenities that residents have grown to enjoy over the last few years.
Private Gym
Business Center
Private
Co-Working Spaces
Outdoor
Cooking Area
Fully Equipped
Kitchens
Washer/Dryer
In-Unit
Outdoor Space
Rooftop Lounge
Total Project Cost: $14,122,453
COSTS
$12,481,453
Purchase Price & Closing Cost
$2,000,000
Total Hard Costs
$9,948,120
Total Carrying Cost
$533,333
SOFT COSTS
$1,641,000
Architect
$250,000
Accounting
$10,000
Permits
$90,000
Legal
$26,000
Builders Risk Insurance
$70,000
Impact Fees
$150,000
Property Tax
$10,000
UtilIties
$35,000
Placement Agent
$200,000
Developer Fees
$700,000
Other
$100,000
FINANCIALS
Total Equity
$6,122,453
LP Investors
$4,122,453
Prime Equity Fund IV LLC
$2,000,000
Total Debt
$8,000,000
TOTAL
$8,959,891
44% Equity
56% Debt
SOURCES & USES
Sources of Funds
$ Amount
$/Unit
Debt
$8,000,000
$150K
Prime Equity Fund IV LLC
$2,000,000
$37.7K
LP Investors
$4,122,453
$77.8K
Total Sources of Funds
$8,959,891
$266K
Uses of Funds
$ Amount
$/Unit
Acquisition Cost
$1,120,000
$33K
Hard Cost
$6,071,231
$178.5K
Soft Cost
$1,286,500
$37.8K
Carrying Cost
$482,160
$14.1K
Total Sources of Funds
$14,122,453
$263.5K
This Class-A multifamily complex is just a 5-minute drive from the beach and is located in Parkside, Hollywood, one of South Florida's most sought-after housing markets.
The project location offers direct highway access to Downtown Miami with hundreds of restaurants, cafes, clubs, shops, and more nearby.
Walking distance from Downtown Miami
Close to both Hollywood Beach and I-95
15 minutes from the Ft. Lauderdale International Airport
Walk or bicycle right to the anticipated Downtown Train Station
Submarket
Vacancy Rate
Asking Rent
Growth
Investor Target
Internal RoR
Target Equity
Multiple
Prime Equity (Sponsor) is a uniquely qualified company established to create value in Florida’s highly competitive multi-family real estate market. Their in-house resources allow them to fulfill every role of the real-estate process as Broker, Developer, and Asset Manager. Specializing in multi-family Ground Up construction and Value Add Real Estate, Prime Equity's streamlined process maximizes efficiency, increases value, and minimizes risk across complex deal structures. Prime Equity’s comprehensive resources allow them to outmaneuver other real estate investment firms and have led to over two decades of positive investor returns.
Purchased in an off-market deal at approximately $45/ SF, and underwritten during the Covid Pandemic, sales and leasing estimates were conservatively based on income lower than current market income pricing.
With construction expected to take 18 months, followed by 6 months to stabilize and rent the units, the Sponsor will leverage its track record of successful multi-family development to complete the Project and return equity investments by refinancing the property right after the building is being stabilized.
The promoter is planning to sell the building after 60 months of land purchase. The investment is expected to be funded by a 54% LTC construction loan, and the Project is anticipated to be sold in the Summer of 2027. There will be 34 market-rate units with an average unit size of 650 square feet.
Design, construction, and development will be directly managed by the Sponsor's experienced and hands-on vertically integrated team. The total completed valuation of the Project is estimated to be approximately $14,500,000. In the event of market shifts during construction, our risk analysis reviews other potential exit scenarios at the completion of construction, allowing the asset to benefit and gain from market changes, maximizing investor returns. The low acquisition basis combined with efforts to control costs and preserve flexible layouts will afford us the opportunity to pivot to a condominium fallback.This offering represents an opportunity to invest in an urban and proven neighborhood with excellent Sponsorship and a uniquely qualified company established to create value in Florida’s highly competitive multi-family real estate market.
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5 E Palisade Ave, 2nd FL
Englewood, NJ 07631
info@primeequitynyc.com
201-904-8484
929-361-6858
