Paragon plantation Capital Brokers

PARAGON PLANTATION :: 74 out of 150 UNITS741-791 N PINE ISLAND ROAD

PLANTATION, FL 33324

A 74-UNIT, CLASS-A FRACTURED CONDOMINIUM OPPORTUNITY

PLANTATION

PARAGON PLANTATION

EXTERIOR

PARAGON PLANTATION

Property Address: 741-791 N Pine Island Road, Plantation, FL 33324

DIRECTIONS:

From I-95, or the Turnpike, exit west on I-595. Exit on Pine Island Rd, turn right (north) and after approximately 2.1 miles Paragon Plantation will be on your left (just before Cleary Blvd.).

PLANTATION

CLUBHOUSE/POOL

PARAGON PLANTATION

PARAGON PLANTATION

07 Executive Summary15 Property Overview31 Financial Overview38

61

67

Paragon Market Overview Multi-Housing Market OverviewRent And Sales Comparables

Investment Contacts:

786.683.6400

305.933.1242

[email protected]

786.683.6200

305.933.1242

[email protected]

305.409.6334

305.933.1242

[email protected]

786.547.9958

305.933.1242

[email protected]

Paola David Daniel MuñozChristian Giraldo Gerardo Tamayo

315.208.3079

646.7479

[email protected]

Antonio Fidalgo

Executive Summary

PARAGON PLANTATION

Investment Summary

Address 741-791 N Pine Island Road Plantation, FL 33324

Units 74 out of 150Total Apartment Square Feet 92,888Average Unit Size (SF) 1,255Year Completed 1997Occupied as of 7/13/14 96% Price $9,900,000Effective Rent $1,378 Price | Unit $133,784Effective Rent per SF $1.10 Price | SF $107Year One NOI $672,000 Cap Rate 6.8%Offers Due TBD

PARAGON PLANTATION

UNIT DESCRIPTION # OF UNITS % OF MIX UNIT SF

EFFECTIVE RENT | UNIT

EFFECTIVE RENT | SF MONTHLY HOA ANNUAL RE TAXES

1BR/1BA 2 3% 739 $1,185 $1.50 $203 $855

2BR/1BA 2 3% 969 $1,255 $1.25 $273 $1,197

2BR/2BA-a 20 27% 1,083 $1,332 $1.17 $287 $1,139

2BR/2BA-b 6 8% 1,092 $1,453 $1.19 $307 $1,277

2BR/2.5BA 12 16% 1,385 $1,580 $1.05 $396 $1,637

3BR/2BA-a 16 22% 1,306 $1,540 $1.10 $354 $1,465

3BR/2BA-b 16 22% 1,485 $1,608 $1.00 $404 $1,671

Total 74 100% 92,888 $109,568 $25,420 $104,366

Average 1,255 $1,378 $1.10 $344 $1,410

DESCRIPTION OCCUPIED AVAILABLE TOTAL

Unit Count 71 3 74

% of Total 95.9% 4.1% 100.0%

Gross Market Rent Potential

UNIT TYPE# OF UNITS

% OF MIX

UNIT SF

HOA FEES/UNIT

HOA FEES/SF

TOTAL HOA FEE

1BR/1BA 2 3% 739 $203 $0.28 $407

2BR/1BA 2 3% 969 $273 $0.28 $546

2BR/2BA-a 20 27% 1,083 $287 $0.27 $5,747

2BR/2BA-b 6 8% 1,092 $307 $0.28 $1,844

2BR/2.5BA 12 16% 1,385 $396 $0.29 $4,752

3BR/2BA-a 16 22% 1,306 $354 $0.27 $5,657

3BR/2BA-b 16 22% 1,485 $404 $0.27 $6,468

Total 74 100% 92,888 $344 $0.27 $25,420

PARAGON PLANTATION 12

The price increases experienced in the condominium market are projected to con-

tinue through the next few years. CBRE assumes new ownership will sell the remaining

74 Paragon Plantation units for $200 to $250 per square foot depending on when

the sellout occurs. This sellout pricing is below where condominium sales occured in

the community before the recession. The following chart summarizes the projected

gross sellout at the various price points:

pricing in Paragon Plantation has increased 15% from 2013 to the second half of

2014. The South Florida condominium market has rebounded and Paragon Planta-

tion is expected to continue achieving price appreciation over the next few years.

Condominium sales within the community and in the immediate area continue to im-

prove. There have been three year-to-date sales within the Paragon Plantation com-

munity. These three sales averaged $116 per square foot and do not include addi-

tional closing costs of paying any past due HOA fees associated to the units. The last

ten sales within the community, which include short sales/foreclosures etc, averaged

$102 per square foot.

YEAR NO. OF SALES AVG. SALE PRICE | SQ. FT..

Active Listings 2 $162

2Q2014 1 $115

1Q2014 2 $101

2013 5 $100

2012 0 N/A

2011 0 N/A

2010 5 $83

SELLOUT PRICE TOTAL PRICE PRICE | UNIT

$200 per square foot $16,719,840 $225,944

$225 per square foot $18,809,820 $254,187

$250 per square foot $20,899,800 $282,430

PARAGON PLANTATION

PROPERTY2006 $/SF

# SALES

2007 $/SF

# SALES

2008 $/SF

# SALES

2009 $/SF

# SALES

2010 $/SF

# SALES

2011 $/SF

# SALES

2012 $/SF

# SALES

2013 $/SF

# SALES

2014 $/SF

# SALES

LISTINGS $/SF

# LISTINGS

PARAGON PLANTATION $264 N/A N/A $80 $83 N/A N/A $100 $107 $162

741-791 N Pine Island Rd 7 N/A N/A 2 5 0 0 5 3 2

BELA SERA $236 $166 $119 $48 $54 $54 $67 $89 $104 $95

711 N Pine Island Rd 1 2 2 4 10 4 4 4 4 7

CHELSEA $266 $219 $166 N/A N/A $129 N/A $150 $157 $170

Central Park Pl 1 1 2 N/A N/A 1 N/A 22 6 7

COLONNADES $211 $172 $115 $71 $67 $70 $81 $85 $104 $70

NW 91st Ter 13 3 11 10 32 13 6 3 6 1

COURTYARD AT JACARANDA $206 $183 N/A $114 $105 $112 $94 $110 $127 $126

140 Jacaranda Country Club Dr 5 4 N/A 1 2 2 1 7 3 4

DAHLIA $152 $155 N/A $115 $104 $103 $65 $121 $141 $142

Plantation Cir W 2 2 N/A 1 2 3 1 5 1 7

ARBOR COURTS $180 $178 $135 $104 $105 $98 $108 $133 $155 $128

Central Park Pl N 5 2 3 2 2 3 3 11 2 2

PARC COURT $211 $192 $149 $125 $112 $97 $111 $125 $130 $144

950 NW 93rd Ave 4 4 3 2 6 5 4 13 3 5

SOMERSET $242 $191 N/A $114 $110 $102 N/A $124 $149 $148

SW 96th Ave 2 2 N/A 1 2 2 N/A 10 4 2

VERANDA N/A N/A N/A $132 $138 $145 $167 $222 $216 $236

510 NW 84TH AV N/A N/A N/A 2 4 7 6 6 4 5

VINEYARD OF PLANTATION N/A N/A N/A $99 $90 N/A $81 N/A $129 $126

Vineyard Lake Dr N/A N/A N/A 1 5 N/A 2 N/A 3 6

WATERFORD COURTS $191 $166 N/A $105 $98 $87 $87 $119 $138 $144

Central Park Pl N 2 2 N/A 4 1 1 5 16 9 9

WESTREE N/A $184 $150 $94 $100 $86 N/A $122 $124 $150

American Express Way N/A 5 2 1 1 1 N/A 5 5 1

AVERAGE $/SF $216 $181 $139 $100 $96 $96 $94 $125 $138 $143

TOTAL # SALES 42 27 23 31 75 52 34 107 53 58


Property OverviewProperty Overview


VALUE- ADD OPPORTUNITY

The Paragon Plantation is in good condition however CBRE believes

that a modest upgrade program focusing on updated cabinetry and

counter tops in the bathrooms and kitchens along with updated

of approximately $5,000 per unit. The value-add program would

Valu

e-A

dd S

umm

ary UPGRADE DESCRIPTION UNITS COST/UNIT TOTAL COST

Cabinetry & Counter tops 74 $2,500 $185,000

Appliances 74 $1,500 $111,000

Fixtures 74 $1,000 $74,000

Total Interior Upgrades 74 $5,000 $370,000

INCREASED RENT POTENTIAL UNITS INCREASE TOTAL

Monthly Rent Increase 74 $100 $7,400

Yearly Rent Increase 74 $1,200 $88,800

Return on Investment 24.0%

PARAGON PLANTATION

Paragon Plantation’s quality construction and position in the market make it a compelling investment opportunity. The below chart illustrates what perceived replace-

ment costs for an asset of this quality would be.

per unit. The remaining 74 units are being offered at a 49% discount to replacement costs.

REPLACEMENT COST ANALYSIS

COST COMPONENT PER RESIDENTIAL UNIT

1 Land Well-located, quality land parcels are $35,000 to $45,000 per unit $40,000

2 Hard Cost$110 per sq.ft. Based on the combined average unit size of 1,255 for Paragon Plantation

$138,000

3 Soft Cost Include impact fees, water and sewer connection fees and construction interest carry. These costs are generally 20-25% of the hard costs. CBRE projects 22.5% of hard costs

$31,000

4 Development Risk Generally priced at approximately 12.5% of TDC $26,000

5 Lease Up Risk Generally priced at approximately 12.5% of TDC $26,000

Total Cost to Investor $261,000

PARAGON PLANTATION

Property Address741-791 N Pine Island Road, Plantation, FL 33324

Location

(2 miles), and Florida’s Turnpike (2.9 miles).

Site LayoutParagon Plantation site has an irregular shape and consists of 5 C-shaped garden style threestory buildings that contain a total of 150 units. The site is generally level and at approximate street grade.

ZoningThe property is zoned PRD-18.22Q (Planned Residential District)

Year Built1997

PARAGON PLANTATION

$1.10 Effective Rent

per SF

1997 Year Completed

74 Units

92,888Total Square Feet

$1,378 Effective Rent

1,255Average Unit

Size (SF)

Prop

erty

Fac

ts $9,900,000Price

$133,784 Price | Unit

$672,000 Year One

Proforma NOI

96% Occupied as of

7/13/14 $107 Price

Per Sq. Ft.

PARAGON PLANTATION

Rent Roll SummaryDESCRIPTION OCCUPIED AVAILABLE TOTAL

Unit Count 71 3 74

% of Total 95.9% 4.1% 100.0%

Gross Market Rent Potential

UNIT DESCRIPTION # OF UNITS % OF MIX UNIT SF

EFFECTIVE RENT | UNIT

EFFECTIVE RENT | SF MONTHLY HOA ANNUAL RE TAXES

1BR/1BA 2 3% 739 $1,185 $1.50 $203 $855

2BR/1BA 2 3% 969 $1,255 $1.25 $273 $1,197

2BR/2BA-a 20 27% 1,083 $1,332 $1.17 $287 $1,139

2BR/2BA-b 6 8% 1,092 $1,453 $1.19 $307 $1,277

2BR/2.5BA 12 16% 1,385 $1,580 $1.05 $396 $1,637

3BR/2BA-a 16 22% 1,306 $1,540 $1.10 $354 $1,465

3BR/2BA-b 16 22% 1,485 $1,608 $1.00 $404 $1,671

Total 74 100% 92,888 $109,568 $25,420 $104,366

Average 1,255 $1,378 $1.10 $344 $1,410

Unit Mix Summary

PARAGON PLANTATION

Floor Plans

Unit A

Augustus

1BR/1BA

739 sf

2 units

3% of total

Unit B

Basilica

2BR/1BA

969 sf

2 units

3% of total

PARAGON PLANTATION

Floor Plans

Unit C

Constantine

2BR/2BA

1,083 sf

20 units

27% of total

Unit D

Domitian

2BR/2BA

1,092 sf

6 units

8% of total

PARAGON PLANTATION

Floor Plans

Unit F

Faustina

2BR/2.5BA

1,385 sf

12 units

16% of total

Unit E

Etruscan

3BR/2BA

1,306 sf

16 units

22% of total


Floor Plans

Unit G

Galileo

3BR/2BA

1,485 sf

16 units

22% of total

PARAGON PLANTATION

Site Plan

74 SUBJECT CONDO UNITS


PARAGON PLANTATION

COMMUNITY FEATURES

Paragon Plantation has an exceptional array of amenities catering to all residents ranging from young professionals to families. Community amenities and features include:

h Gated entry-way

h BBQ area

h Children’s Playground

h Fitness center

h Swimming pool & whirlpool

h Clubhouse

h Auto vaccum area

h Convenient to Broward and Sawgrass Mills Mall

h Many nearby restaurants and shopping options

h Great school district

h Easy access to major roadways and employment centers

PARAGON PLANTATION

CONDOMINIUM HOME FEATURES

Paragon Plantation features a mix of well-designed and spacious one, two and three bedroom unit layouts with private balconies. Top

-

unit features, fan in the living area and spacious closets, full-size

washer and dryers and a large patio or balcony.

ADDITIONAL FEATURES:

h Vaulted Ceilings in Select Units

h Open Floor Plans

h Split Floor Plans

h In-Suite Washer & Dryer

h Private Parking

h Private Patios

h Oversized Walk-In Closets

h Ceiling Fans

h Valet Trash

PARAGON PLANTATION

UTILITY/SERVICE PROVIDER SEPARATELY METERED PAID BY

Electricity: FPL No Association

Water/Sewer:City of Plantation Utility Department

Yes Association

Cable: Comcast Yes Resident

Telephone: Various Yes Resident

Trash Removal:City of Plantation Utility Department

Association

TAXES

Jurisdiction: Broward County

Tax ID: Various.

Millage Rate: 0.022131

Tax Year: 2013

Taxes Due By: 3/1/2015; 4% discount if paid by 11/30/2014

FLOOD

Panel Number: 12011C0215F

Date: 8/18/92

Flood Zone: AH

Flood Insurance Required: Yes

BUILDING

Year: 1997

No. of Buildings: 5 Residential, 1 Clubhouse

Total Units: 74 out of 150

Total Sq Ft.: 92,888

Average Sq Ft.: 1,255

Building Style: Concrete block

No. Floors: 3 Story Buildings

Windows: Single pane aluminum windows

Roofs: Pitched roof with terra cotta tile

PARKINGParking: Garage Parking/Covered Parking/Un-covered Parking

On Site Spaces:110 Garage Spaces/40 Covered Spaces/188 Un-covered

Spaces/6 Handicapped Spaces

Total Spaces: 334

Overall Ratio per Unit: 2

MECHANICAL

Heating: Individual central heating units

Air Conditioning: Individual air conditioning units

Water Heater: In-unit, 30 gallon

Electrical: Copper Wiring

Plumbing: PVC

Fire Protection: Fire extinguishers and smoke detectors


Financial Overview

PARAGON PLANTATION

DESCRIPTION

MONTHLY

BUDGET PER

UNIT

MONTHLY

BUDGET

ANNUAL

BUDGET

REVENUE

Maintenance Fees 309 46,372 556,462

Reserve Assesments 16 2,406 28,870

Rent Income 7 1,000 12,000

**TOTAL REVENUE 332 49,778 597,332

EXPENSES

**ADMINISTRATIVE

Insurance 65 9,787 117,446

1 208 2,500

Legal Fees 6 833 10,000

Screening Fees 11 1,667 20,000

Taxes, Fees, Licenses - Clubhouse 0.3 42 500

Bad Dept Expanse 2 250 3,000

**TOTAL ADMINISTRATIVE 91 13,621 163,446

**UTILITIES

Electricity 9 1,333 16,000

Water & Sewer 44 6,667 80,000

Telephone 5 792 9,500

Trash Removal 17 2,500 30,000

Gas 1 83 1,000

**TOTAL UTILITIES 76 11,375 136,500

DESCRIPTION

MONTHLY

BUDGET PER

UNIT

MONTHLY

BUDGET

ANNUAL

BUDGET

**CONTRACTS

27 4,062 48,746

Maintenance Personnel 33 4,976 59,706

Management Service Contract 14 2,111 25,334

Lawn Maintenance 18 2,681 32,175

Irrigation-Maintenance Contract 2 342 4,100

Lake Maintenance Contract 1 100 1,200

Equipment Maintenance Contract - Health Club 1 85 1,020

Pest Control 4 610 7,320

Alarm/Sprinkler Maintenance Contract 1 208 2,500

Golf Cart Leasing 1 148 1,780

Pool Maintenance 2 303 3,635

**TOTAL CONTRACTS 104 15,626 187,516

**REPAIRS/MAINTENANCE

Landscape Extras 7 1,083 13,000

Tree/Hedge Trimming 6 833 10,000

General Repairs & Maintenance 25 3,750 45,000

Maintenance Supplies 3 417 5,000

Contingency 4 667 8,000

**TOTAL REPAIRS/MAINTENANCE 45 6,750 81,000

**RESERVE TRANSFERS

General Reserves 0.3 40 479

Other 0.3 51 609

Roof-General 4 583 6,990

Painting-General 5 781 9,368

Pavement-General 1 180 2,159

Pool - Deck 0.2 34 412

Hurricane 4 529 6,347

Mechanical/Plumbing 1 209 2,507

**TOTAL RESERVE TRANSFERS 16 2,406 28,870

**TOTAL EXPENSES 332 49,778 597,332

2014 HOA Budget*

*For detailed summary see document center on property website.

PARAGON PLANTATION

Historical And Year-One Financial AnalysisPARAGON PLANTATION, Plantation, FL 33324Prepared For Falcon Carlyle

Trailing 6-Months Year 12013 6/30/2014 Proforma Per Unit % GPR

INCOMECurrent Market Rent 1,102,040 1,315,028 1,314,816 17,768 93.9%Projected Market Rent Increase 0 0 39,444 533 2.8%Rent Increase Due to Capex 0 0 88,800 1,200 6.3%

PROJECTED MARKET RENT $1,102,040 $1,315,028 $1,443,060 $19,501 103.1%Gain/Loss-to-Lease 0 (86,110) (43,292) (585) -3.1%

GROSS POTENTIAL RENT $1,102,040 $1,228,918 $1,399,769 $18,916 100.0%

Vacancy Loss 0 (88,439) (69,988) (946) -5.0%Model / Office Units 0 (6,160) 0 0 0.0%Rent/Parking Concessions (94,523) (88,641) (41,993) (567) -3.0%Write-offs (9,071) (12,605) 0 0 0.0%

EFFECTIVE RENTAL INCOME $998,446 $1,033,073 $1,287,787 $17,403 92.0%

Employee Concessions (3,368) (3,360) 0 0 0.0%Water & Sewer Reimbursement 25,791 26,063 26,845 363 1.9%Short Term Fees 4 500 0 0 0.0%Month-to-Month Surplus 2,323 335 0 0 0.0%Premature Lease Termination 3,160 0 0 0 0.0%Parking Income 38,506 39,534 40,720 550 2.9%Valet Trash 14,416 14,572 15,009 203 1.1%Miscellaneous Income 18,690 22,662 23,342 315 1.7%

EFFECTIVE GROSS INCOME $1,097,968 $1,133,379 $1,393,702 $18,834 99.6%

EXPENSES %EGIPayroll 115,945 114,968 118,400 1,600 8.5%Repairs & Maintenance 22,890 62,015 22,200 300 1.6%Turnover / Make Ready 13,932 16,357 14,800 200 1.1%Landscaping / Contract Services 5,877 4,448 5,550 75 0.4%Utilities 10,225 4,361 4,440 60 0.3%Administrative 16,325 19,105 11,100 150 0.8%Leasing & Marketing 30,265 24,851 7,400 100 0.5%

CONTROLLABLE EXPENSES $215,460 $246,106 $183,890 $2,485 13.2%

Insurance 54,000 54,000 7,400 100 0.5%Real Estate Taxes 104,425 103,944 168,267 2,274 12.1%Management Fees 33,241 34,114 41,811 565 3.0%Association Dues 284,998 301,356 301,355 4,072 21.6%

FIXED EXPENSES $476,664 $493,414 $518,833 $7,011 37.2%

TOTAL OPERATING EXPENSES $692,124 $739,520 $702,723 $9,496 50.4%

Capital Reserves 0 0 18,500 250 1.3%TOTAL EXPENSES $692,124 $739,520 $721,223 $9,746 51.7%

NET OPERATING INCOME $405,844 $393,859 $672,479 $9,088 48.3%

Purchase Price $9,900,000 $9,900,000 $9,900,000Per Unit $133,784 $133,784 $133,784Per SF $107 $107 $107Cap Rate 4.10% 3.98% 6.79%

Purchase Price $9,900,000 $9,900,000 $9,900,000Upfront Capital $370,000 $370,000 $370,000Total Investment $10,270,000 $10,270,000 $10,270,000Per Unit $138,784 $138,784 $138,784Per SF $111 $111 $111

July 17, 2014

PARAGON PLANTATION

Five-Year Rental Then Sell AnalysisCBRE Multi-Housing Investment Properties • Institutional Group | Capital MarkeCash Flow Projections

Year 1 Year 2 Year 3 Year 4 Year 5INCOME

Current Market Rent $1,314,816 $1,443,060 $1,486,352 $1,530,943 $1,576,871Projected Market Rent Increase 39,444 43,292 44,591 45,928 47,306Rent Increase Due to Capex 88,800 0 0 0 0

PROJECTED MARKET RENT 1,443,060 1,486,352 1,530,943 1,576,871 1,624,177Gain/Loss-to-Lease (43,292) (44,591) (45,928) (47,306) (48,725)

GROSS POTENTIAL RENT 1,399,769 1,441,762 1,485,015 1,529,565 1,575,452

Vacancy Loss (69,988) (72,088) (74,251) (76,478) (78,773)Rent/Parking Concessions (41,993) (43,253) (44,550) (45,887) (47,264)

EFFECTIVE RENTAL INCOME 1,287,787 1,326,421 1,366,213 1,407,200 1,449,416Economic Occupancy 92.0% 92.0% 92.0% 92.0% 92.0%

Water & Sewer Reimbursement 26,845 27,650 28,480 29,334 30,214Parking Income 40,720 41,941 43,199 44,495 45,830Valet Trash 15,009 15,459 15,923 16,400 16,892Miscellaneous Income 23,342 24,042 24,763 25,506 26,271

EFFECTIVE GROSS INCOME $1,393,702 $1,435,513 $1,478,579 $1,522,936 $1,568,624

EXPENSESPayroll 118,400 121,952 125,611 129,379 133,260Repairs & Maintenance 22,200 22,866 23,552 24,259 24,986Turnover / Make Ready 14,800 15,244 15,701 16,172 16,658Landscaping / Contract Services 5,550 5,717 5,888 6,065 6,247Utilities 4,440 4,573 4,710 4,852 4,997Administrative 11,100 11,433 11,776 12,129 12,493Leasing & Marketing 7,400 7,622 7,851 8,086 8,329

CONTROLLABLE EXPENSES 183,890 189,407 195,089 200,942 206,970

Insurance 7,400 7,622 7,851 8,086 8,329Real Estate Taxes 168,267 173,315 178,514 183,870 189,386Management Fees 41,811 43,065 44,357 45,688 47,059HOA Fees 301,355 310,396 319,708 329,299 339,178

FIXED EXPENSES 518,833 534,398 550,430 566,943 583,951

TOTAL OPERATING EXPENSES 702,723 723,805 745,519 767,884 790,921

Capital Reserves 18,500 19,055 19,627 20,215 20,822TOTAL EXPENSES 721,223 742,860 765,145 788,100 811,743

NET OPERATING INCOME (BEFORE RESERVES) 690,979 711,709 733,060 755,052 777,703NOI (Before Reserves) Growth 3.0% 3.0% 3.0% 3.0%

NET OPERATING INCOME (AFTER RESERVES) 672,479 692,654 713,433 734,836 756,882NOI (AFTER Reserves) Growth 3.0% 3.0% 3.0% 3.0%

RENTAL INCOMENet Operating Income Per Unit $9,088 $9,360 $9,641 $9,930 $10,228Units Remaining 74 74 74 74 0Total Net Operating Income $672,479 $692,654 $713,433 $734,836 $0

SELLOUT INCOMEBeginning Inventory 74 74 74 74 74Less: Units Sold 0 0 0 0 74Ending Inventory 74 74 74 74 0Average Sales / SF $225 $225 $225 $225 $225Gross Sales Income $0 $0 $0 $0 $20,899,800Less: Cost of Sales $0 $0 $0 $0 $2,089,980Net Income from Sales $0 $0 $0 $0 $18,809,820

ACQUISITION / RESIDUALPurchase Price (9,900,000)Upfront Capex (370,000)Cash Flow - Rental 672,479 692,654 713,433 734,836 0Cash Flow - Sellout @ 0 Units Per Month 0 0 0 0 18,809,820

CASH FLOW BEFORE DEBT (10,270,000) 672,479 692,654 713,433 734,836 18,809,820

FINANCINGPrincipal - New Debt at 65.0% LTC* 6,675,500 0 0 0 0 (5,864,954)Loan Fees & Debt Service (66,755) (300,398) (300,398) (445,255) (445,255) (445,255)

CASH FLOW AFTER DEBT ($3,661,255) $372,082 $392,256 $268,178 $289,581 $12,499,610

RETURN STATISTICSCapitalization Rate 6.79% 7.00% 7.21% 7.42% 7.65%Levered Cash on Cash 10.16% 10.71% 7.32% 7.91%IRR 17.57%Levered IRR n/a 33.41%*Debt Terms: 65% Loan-to-cost, 4.5% interest rate, 25 year amortization, 2 years of interest-only payments

PARAGON PLANTATION

Five-Year FinancialsPARAGON PLANTATION, Plantation, FL 33324Prepared For Falcon Carlyle

Trailing 6 Mo FY2 FY3 FY4 FY5 FY11INCOME

Current Market Rent 1,315,028 1,314,816 $1.18 / SF 1,443,060 1,486,352 1,530,943 1,576,871 1,882,867Projected Market Rent Increase 0 39,444 3.0% / CMR 43,292 44,591 45,928 47,306 56,486Rent Increase Due to Capex 0 88,800 $100 / Unit / M 0 0 0 0 0

PROJECTED MARKET RENT 1,315,028 1,443,060 $1.29 / SF $1,486,352 $1,530,943 $1,576,871 $1,624,177 $1,939,353Gain/Loss-to-Lease (86,110) (43,292) 3.0% / PMR (44,591) (45,928) (47,306) (48,725) (58,181)

GROSS POTENTIAL RENT 1,228,918 1,399,769 $1.26 / SF $1,441,762 $1,485,015 $1,529,565 $1,575,452 $1,881,172

Vacancy Loss (88,439) (69,988) 5.0% / GPR (72,088) (74,251) (76,478) (78,773) (94,059)Model / Office Units (6,160) 0 0 0 0 0 0Employee Units 0 0 0 0 0 0 0Rent/Parking Concessions (88,641) (41,993) 3.0% / GPR (43,253) (44,550) (45,887) (47,264) (56,435)Net Bad Debt Expense 0 0 0 0 0 0 0Write-offs (12,605) 0 0 0 0 0 0

EFFECTIVE RENTAL INCOME 1,033,073 1,287,787 $17,403 / Unit $1,326,421 $1,366,213 $1,407,200 $1,449,416 $1,730,678

Employee Concessions (3,360) 0 0 0 0 0Water & Sewer Reimbursement 26,063 26,845 $30 / Unit / M 27,650 28,480 29,334 30,214 36,078Short Term Fees 500 0 0 0 0 0 0Month-to-Month Surplus 335 0 0 0 0 0 0Parking Income 39,534 40,720 $46 / Unit / M 41,941 43,199 44,495 45,830 54,724Valet Trash 14,572 15,009 $17 / Unit / M 15,459 15,923 16,400 16,892Miscellaneous Income 22,662 23,342 $26 / Unit / M 24,042 24,763 25,506 26,271 31,369

EFFECTIVE GROSS INCOME $1,133,379 $1,393,702 $18,834 / Unit $1,435,513 $1,478,579 $1,522,936 $1,568,624 $1,852,849YOY Increase 3.0% 3.0% 3.0% 3.0% 3.0%

EXPENSESPayroll 114,968 118,400 $1,600 / Unit $121,952 $125,611 $129,379 $133,260 $159,120Repairs & Maintenance 62,015 22,200 $300 / Unit $22,866 $23,552 $24,259 $24,986 $29,835Turnover / Make Ready 16,357 14,800 $200 / Unit $15,244 $15,701 $16,172 $16,658 $19,890Landscaping / Contract Services 4,448 5,550 $75 / Unit $5,717 $5,888 $6,065 $6,247 $7,459Utilities 4,361 4,440 $60 / Unit $4,573 $4,710 $4,852 $4,997 $5,967Administrative 19,105 11,100 $150 / Unit $11,433 $11,776 $12,129 $12,493 $14,917Leasing & Marketing 24,851 7,400 $100 / Unit $7,622 $7,851 $8,086 $8,329 $9,945Controllable Expenses $246,106 183,890 $2,485 / Unit 189,407 195,089 200,942 206,970 247,133Insurance 54,000 7,400 $100 / Unit 7,622 7,851 8,086 8,329 9,945Real Estate Taxes 103,944 168,267 $2,274 / Unit 173,315 178,514 183,870 189,386 226,137Management Fees 34,114 41,811 3.0% / EGI 43,065 44,357 45,688 47,059 55,585Association Dues 301,356 301,355 $339 / Unit 310,396 319,708 329,299 339,178 404,996

TOTAL OPERATING EXPENSES 739,520 702,723 $9,496 / Unit $723,805 $745,519 $767,884 $790,921 $943,796

Capital Reserves 0 18,500 $250 / Unit $19,055 $19,627 $20,215 $20,822 $24,862TOTAL EXPENSES 739,520 721,223 $9,746 / Unit $742,860 $765,145 $788,100 $811,743 $968,658

NET OPERATING INCOME $393,859 672,479 48.3% / EGI $692,654 $713,433 $734,836 $756,882 $884,191YOY Increase 3.0% 3.0% 3.0% 3.0% 3.0%

Purchase Price (9,900,000)Upfront CapEx (370,000)Sell Out ($225/SF) 0 0 0 0 20,899,800Disposition Costs (10.00%) 0 0 0 0 (2,089,980)Cash Flow (10,270,000) 672,479 692,654 713,433 734,836 18,809,820

INVESTMENT RATIOS

All Cash AverageCap Rate 6.79% 7.00% 7.21% 7.42% 7.65% 7.21%All Cash IRR 17.57%

Leverage ( With Debt)New Debt @ 65.0% LTV 6,675,500 0 0 0 0 (5,864,954)Loan Fees & Debt Service (66,755) (300,398) (300,398) (445,255) (445,255) (445,255)Cash Flow After Debt (3,661,255) 372,082 392,256 268,178 289,581 12,499,611Equity 3,661,255 3,661,255 3,661,255 3,661,255 3,661,255 3,661,255

Debt-Coverage Ratio 2.24 2.31 1.60 1.65 1.70Leveraged Cash on Cash 10.16% 10.71% 7.32% 7.91% 7.22%Leveraged IRR 33.41%

July 17, 2014

CASH FLOW

FY1


Plantation Market Overview

PARAGON PLANTATION

Welcome To PlantationSOUTH FLORIDA EDUCATION CENTER (SFEC) -

ties comprised of Nova Southeastern, Broward College, Florida Atlantic University-Bro-

ward, University of Florida extension campus, and McFatter Technical College. SFEC is

home to over 62,000 students. More detail can be found on pages 56 and 57.

FOUNTAIN SHOPPES is a 480,000 square foot power center that is anchored by

Dick’s Sporting Goods, Marshalls, Total Wine & More and Kohl’s. It offers multiple din-

ing destinations such as Chili’s, TooJay’s, Lime Fresh, and Five Guys.

PLANTATION MIDTOWN OFFICE DISTRICT -

properties average a 90% occupancy rate with a gross rent per square foot of $29.44.

and are home to large tenants such as DHL and Morgan Stanley. See page 47 for more

WESTFIELD BROWARD MALL - is a 1 million square foot mall that recently com-

pleted a $39 million renovation to include a new 12-screen movie theater, renovation

to the food court, the addition of a marine-themed play area for children, a family

lounge, improved restrooms and two new restaurants. The mall is anchored by Macy’s,

Sears, JCPenney, and Dillard’s.

321 NORTH - is a $400 million planned mixed-use development with plans for

condominium units, an update to the existing 264-room Sheraton Hotel and 5,000

parking spaces. More detail can be found on pages 36 of this package.

WESTSIDE REGIONAL MEDICAL CENTER - is a 224 bed hospital that was

founded in 1974. The hospital specialties vary from oncology to cardiology and from

surgery to emergency care.

BROWARD COUNTY WEST REGIONAL COMPLEX - is home to West Regional

Library and the West Regional Courthouse. The courthouse is the 17th Judicial Circuit

Court of Florida and serves the second largest jurisdiction in the State of Florida. The

circuit utilizes the services of 90 full time judges.

VERANDA SHOPPES - is a 44,888 square foot Publix anchored retail center featur-

ing a Dunkin Donuts, Pei Wei, Anthony’s Coal Fire Pizza and a Great Florida Bank. The

shopping center was built in 2008.

LAKESIDE OFFICE CENTER - a current occupancy of 87.8% and asking rental rates of $18.00 per square foot. The

building was built in 1986 and notable tenants include the University of Phoenix, Merrill

PARAGON PLANTATION

Broward Blvd

PARAGON P LANTATION

WEST S IDER EGIONAL MEDICAL C ENTER

L EDISEKA OFFICE

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BRO WARD MALL

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PARAGON PLANTATION

WEST AERIAL

AM ERICANEX P RESS

LAKESIDEOFFICE

CENTER

VERANDASHO PP ES

P LANTATIONCENTRAL

P ARK

SA WGRASSCOR P ORATE

P ARK

SA WGRASSM ILLS M ALL

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PARAGONP LANTATION

PARAGON PLANTATION

Broward CountyBroward County is at the heart of the Southeast Florida mega-region, which represents over one third of Florida’s overall population; and is the third most densely populated area of

corporate headquarters. Here are some of the highlights of the area:

º The Miami-Fort Lauderdale metropolitan area was ranked the third least-costly place to do business in a recent study by KPMG LLP surveying 22 U.S. cities or metropolitan areas

with populations exceeding 2 million (2013).

º

of corporate headquarters and major operations including American Express, AutoNation, Alcatel-Lucent, Citrix Systems, DHL Americas, Embraer, Ford, Microsoft, Google and

Motorola.

º As of May 2014, Broward County’s 5.0% unemployment rate is the lowest in South Florida and better than both the state (6.4%) and national average (6.3%). By 2030, the

region’s population is expected to grow to 6.3 million, or nearly 13.9%. Broward’s population is expected to grow to nearly 2.0 million, representing a growth rate that is faster

than the national average.

BAY COUNTY TOP EMPLOYERS

Number of Full Time Employees

Tenet Healthcare Corp 18,000

15,000

Memorial Healthcare System 10,700

Broward Health 8,190

American Express 4,318

Comcast 4,000

The Continental Group 3,900

NSU 3,851

AutoNation 3,302

Florida Power & Light Co. 3,178

Winn-Dixie Stores Inc. 3,000

Holy Cross Hospital 3,000

Kaplan Higher Education 2,800

The Answer Group 2,800

Interbond Corp.of America 2,600

MBF Healthcare Partners LP 2,228

Maxim Integrated Products Inc. 2,000

Alorica 2,000

Brown Jordan International 1,460

Spirit Airlines 1,450

PARAGON PLANTATION

FORT LAUDERDALE AIRPORT

Fort Lauderdale-Hollywood International Airport is one of the fastest-growing airports in

are 30 commercial and commuter airlines currently operating out of FLL handling over

11.4 million passengers. The airport contributes over $2.7 billion to the local economy

and is in the midst of a $2.0 billion capital improvement project. The most ambitious

project involves a $791 million plan to expand the current runway. This is forecast to cre-

ate more than 11,000 jobs during construction. Also included is a four-year $650 million

expansion of its international terminal and modernization of the existing terminals.

OFFICE

market is 15.2% vacant with an average rental rate of $19.21 gross and a projected

190 basis point decrease in vacancy by 2015.

Port EvergladesFort Lauderdale Skyline

Multifamily Market Overview

PARAGON PLANTATION

Broward has rebounded and as market fundamentals continue to improve, the area is poised for substantial growth. According to Economy.com, construction projects and spillover

growth from Miami will enable Broward County to outpace the nation in the near future. Above-average population gains relative to the nation’s as well as robust international

jobs at a faster rate. With this strong expected growth, the Broward multifamily market is projected to continue improving.

OVERALL TRENDS

º Apartment fundamentals remain strong

º Positive job growth will have a corresponding positive effect on the multifamily market

º

º Foreclosures have naturally transitioned many homeowners to renters

º Millennials (18-32 year olds), the largest generation in U.S. history, are expected to make up a large proportion of new renters over the next few years

BROWARD TRENDS

º

º Broward County employment is projected to grow by 98,900 jobs from 2014-2019.

º

PLANTATION TRENDS

º According to CBRE Econometric Advisors, Plantation’s submarket has the second highest average rental rate of any submarket in Broward County at $1,396, trailing

slightly behind Fort Lauderdale’s $1,427.

º

º

PARAGON PLANTATION

EMPLOYMENT TRENDS

According to Economy.com and CBRE’s Econometrics, the Bro-

ward submarket has created an average of 9,100 jobs per year

from 1998-2014 (actual). The Financial Crisis negatively affect-

ed the region with 81,800 jobs lost in the four year period from

2007-2010. Excluding this period, the average amount of jobs

created during the period from 1998-2006 showed a more ro-

bust economy with just over 19,400 jobs added annually. The

forecast for 2014 through 2019 shows employment exceeding

the historical averages with approximately 20,500 annual jobs.

Future Predictions

-50.00

-40.00

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Rent And Sales Comparables

PARAGON PLANTATION

Property Name Unit Sale Date Square footage Sale Price $ $/SF

771 N Pine Island Rd # 303 303 6/5/2014 1,306 $160,000 $123

751 N Pine Island Rd # 203 203 1/27/2014 640 $84,000 $131

741 N Pine Island Rd # 212 212 1/17/2014 1,240 $116,000 $94

771 N Pine Island Rd # 212 212 9/17/2013 1,240 $135,000 $109

751 N Pine Island Rd # 108 108 7/12/2013 1,110 $83,657 $75

791 N Pine Island Rd # 214 214 4/30/2013 1,316 $135,000 $103

751 N Pine Island Rd # 302 302 4/9/2013 870 $119,000 $137

741 N Pine Island Rd # 302 302 1/24/2013 870 $88,000 $101

791 N Pine Island Rd # 211 211 10/29/2010 640 $44,000 $69

761 N Pine Island Rd # 211 211 9/28/2010 640 $45,000 $70

Total 9,872 $1,009,657

Average 987 $100,966 $102

Last 10 Paragon Plantation Condo Sales

Unit Address Unit Size Status List Price $/SF DOM

771 N Pine Island Rd # 308 640 PS $190,000 $297 97

771 N Pine Island Rd # 203 640 PS $50,000 $78 2

Average $120,000 $188 50

Current Paragon Plantation Condo For Sale

NOTE: PS - Pending Sale | A - Active Sale. *The pending sales price refers to the listing price not the contract price.

PARAGON PLANTATION

Rent

Com

psNO PROPERTY NAME YEAR BUILT UNIT TYPE NO. OF UNITS AVG SF UNIT MARKET RENT MARKET RENT/SF

Paragon Plantation 1BD 2 739 $1,185 $1.60

781 Pine Island Road 1997 2BD 40 1,169 $1,421 $1.22

Plantation, FL 33324 3BD 32 1,395 $1,574 $1.13

St. Tropez 1BD - - - -

8000 Cleary Blvd 1996 2BD 224 1,205 $1,590 $1.32

Plantation, FL 33324 3BD 152 1,450 $1,755 $1.21

The Laurels at Jacaranda 1BD 96 842 $1,447 $1.72

9733 NW 7th Cir 1990 2BD 120 1,030 $1,418 $1.38

Plantation, FL 33324 3BD 156 1,391 $1,505 $1.08

Polo Glen 1BD 41 804 $1,000 $1.24

7350 NW 4th Street 2000 2BD 26 1,141 $1,400 $1.23

Plantation, FL 33317 3BD 78 1,346 $1,562 $1.16

Southern Pointe 1BD 116 817 $1,105 $1.35

8080 NW 10th Ct 1981 2BD 176 1,019 $1,286 $1.26

Plantation, FL 33322 3BD - - - -

Camden Plantation 1BD 106 920 $1,395 $1.52

801 NW 108th Avenue 1998 2BD 240 1,198 $1,820 $1.52

Fort Lauderdale, FL 33324 3BD 156 1,398 $1,874 $1.34

The Waves 1BD 154 800 $1,330 $1.66

9000 NW 9th St 1988 2BD 298 1,219 $1,577 $1.29

Plantation, FL 33324 3BD 36 1,400 $1,916 $1.37

Verona View 1BD 72 869 $1,189 $1.37

10900 NW 17th Street 1991 2BD 145 1,298 $1,697 $1.31

Plantation, FL 33322 3BD 76 1,474 $1,628 $1.10

The Terraces 1BD 80 940 $1,242 $1.32

8101 NW 14th Street 1988 2BD 200 1,207 $1,447 $1.20

Plantation, FL 33322 3BD - - - -

1

2

3

S

4

5

6

7

8

PARAGON PLANTATION

Fitness Center Two Swimming Pools

Children's Playground

Tennis Courts

Washer/Dryer Wall-to-wall carpet

Spacious Closets Dishwasher

Private Patio / Balcony

91%

$1.32

Poolside Tiki Bar

2 Bedrooms 224 1,205 $1,590

Common Area Amenities

376

COMPARABLE ONE

St. Tropez

8000 Cleary Blvd

Plantation, FL 33324

Total Units

Year Built 1996

No. of Stories 2

Owner / Developer Greystar

Management Greystar

Occupancy

Unit Features

Unit Type Units SF Market Rent Rent/SF

Unit Mix

3 Bedrooms 152 1,450 $1,755 $1.21

Total/Average 376 1,271 $1,656 $1.30

Clubhouse Tennis Court

Fitness Center Two Swimming Pools

BBQ Area Business Ctr & Conf. Room

Washer/Dryer Vaulted Ceilings


Screened Patio / Balcony

Unit Mix



Unit Features

468

COMPARABLE TWO

The Laurels at Jacaranda

9733 NW 7th Cir


Total Units

Year Built 1990

No. of Stories 3

Owner / Developer Lacera

Management Greystar

Occupancy

2 Bedrooms 120 1,030 $1,418 $1.38

1 Bedroom 96 842 $1,447 $1.72

95%

3 Bedrooms 156 1,391 $1,505 $1.08

Total/Average 468 1,040 $1,412 $1.36

Rent

Com

ps

PARAGON PLANTATION

Rent Com

ps

Fitness Center Tennis Court

Basketball Court Swimming Pool

BBQ Area



Private Patio / Balcony Lake Views

Unit Mix



Unit Features

145

COMPARABLE THREE

Polo Glen

7350 NW 4th Street


Total Units

Year Built 2000

No. of Stories 3

Owner / Developer Preston Giuliano Capital

Management Incore Residential

Occupancy

2 Bedrooms 26 1,141 $1,400 $1.23

1 Bedroom 41 804 $1,000 $1.24

N/A

3 Bedrooms 78 1,346 $1,562 $1.16

Total/Average 145 1,156 $1,374 $1.19

Car Care Center Fitness Center

Swimming Pool Picnic Area

Playground Handball Court



Ceiling Fans Storage Closet

Unit Mix



Unit Features

292

COMPARABLE FOUR

Southern Pointe

8080 NW 10th Ct


Total Units

Year Built 1981

No. of Stories 2

Owner / Developer Rockpoint Group

Management Waypoint Living

Occupancy

2 Bedrooms 176 1,019 $1,286 $1.26

1 Bedroom 116 817 $1,105 $1.35

97%

3 Bedrooms - - - -

Total/Average 292 938 $1,214 $1.29

PARAGON PLANTATION

Rent

Com

ps


Swimming Pool

Indoor Racquetball Court



Lake Views

Unit Mix



Unit Features

502

COMPARABLE FIVE

Camden Plantation

801 NW 108th Avenue

Fort Lauderdale, FL 33324

Total Units

Year Built 1998

No. of Stories 2

Owner / Developer Camden

Management Camden

Occupancy

2 Bedrooms 240 1,198 $1,820 $1.52

1 Bedroom 106 920 $1,395 $1.52

97%

3 Bedrooms 156 1,398 $1,874 $1.34

Total/Average 502 1,201 $1,747 $1.45

Fitness Center

Business Ctr & Conf. Room

Two Swimming Pools



Lake Views

Unit Mix



Unit Features

488

COMPARABLE SIX

The Waves

9000 NW 9th St


Total Units

Year Built 1988

No. of Stories 3

Owner / Developer Henderson Global Investors

Management ZRS Management

Occupancy

2 Bedrooms 298 1,219 $1,577 $1.29

1 Bedroom 154 800 $1,330 $1.66

92%

3 Bedrooms 36 1,400 $1,916 $1.37

Total/Average 488 1,100 $1,524 $1.39

PARAGON PLANTATION

Rent Com

ps


Basketball Court Two Swimming Pools

Playground Heated Spa

W/D Hookups Built-In Microwave


Screened Terrace Lake Views

Unit Mix



Unit Features

400

COMPARABLE SEVEN

Verona View

10900 NW 17th St


Total Units

Year Built 1991

No. of Stories 3

Owner / Developer Duncan Hillsley Capital

Management Greystar Management

Occupancy

2 Bedrooms 145 1,298 $1,697 $1.31

1 Bedroom 72 869 $1,189 $1.37

92%

3 Bedrooms 76 1,474 $1,628 $1.10

Total/Average 293 1,238 $1,554 $1.25


Car Wash Area Swimming Pool

Playground Laundry Facility

W/D Hookups Vaulted Ceilings


Private Patio / Balcony Lake Views

Unit Mix



Unit Features

400

COMPARABLE EIGHT

The Terraces

8101 NW 14th St


Total Units

Year Built 1988

No. of Stories 3

Owner / Developer Deutsche Asset & Wealth Mgmt

Management Greystar

Occupancy

2 Bedrooms 200 1,207 $1,447 $1.20

1 Bedroom 80 940 $1,242 $1.32

92%

3 Bedrooms - - - -

Total/Average 280 1,131 $1,389 $1.23

PARAGON PLANTATION

Rental Comparables By TypeONE BEDROOMSSorted By Total Market Rent

APARTMENT COMMUNITY YEAR QUANTITY

UNIT TYPE

SQUARE FOOTAGE

MKT RENT

MKT PER SQ. FT

The Laurels At Jacaranda 1990 72 1/1/0 D 856 $1,462 $1.71

Camden Plantation 1998 42 1/1/0 1,003 $1,417 $1.41

The Laurels At Jacaranda 1990 24 1/1/0 801 $1,401 $1.75

Camden Plantation 1998 42 1/1/0 897 $1,397 $1.56

Camden Plantation 1998 22 1/1/0 805 $1,347 $1.67

The Waves 1988 154 1/1/0 800 $1,330 $1.66

The Terraces 1988 80 1/1/0 940 $1,242 $1.32

Verona View 1991 72 1/1/0 869 $1,189 $1.37

PARAGON PLANTATION 1997 2 1/1/0 739 $1,185 $1.60

Southern Pointe 1981 58 1/1/0 771 $1,115 $1.45

Southern Pointe 1981 58 1/1/0 862 $1,095 $1.27

Polo Glen 2000 41 1/1/0 804 $1,000 $1.24

TOTAL/AVERAGE 667 846 $1,265 $1.50

TWO BEDROOMSSorted By Total Market Rent

APARTMENT COMMUNITY YEAR QUANTITYUNIT TYPE

SQUARE FOOTAGE

MKT RENT

MKT PER SQ. FT




Verona View 1991 96 2/2/0 1,275 $1,756 $1.38

St. Tropez 1996 38 2/2/0 T 1,248 $1,734 $1.39

St. Tropez 1996 28 2/2/0 1,198 $1,679 $1.40

The Waves 1988 80 2/2/0 1,200 $1,652 $1.38

The Waves 1988 24 2/2/1 L 1,400 $1,652 $1.18

Verona View 1991 32 2/2/1 T 1,354 $1,626 $1.20

PARAGON PLANTATION 1997 12 2/2/1 1,385 $1,580 $1.14

The Waves 1988 16 2/2/0 T 1,375 $1,576 $1.15

The Waves 1988 68 2/2/0 1,175 $1,567 $1.33

St. Tropez 1996 150 2/2/0 T 1,200 $1,542 $1.29

The Waves 1988 42 2/2/0 T 1,275 $1,529 $1.20

The Waves 1988 68 2/2/0 1,150 $1,501 $1.31

Verona View 1991 17 2/2/1 D T 1,326 $1,494 $1.13

The Terraces 1988 96 2/2/0 1,306 $1,494 $1.14

St. Tropez 1996 8 2/2/0 T 1,113 $1,487 $1.34

PARAGON PLANTATION 1997 6 2/2/0-b 1,092 $1,453 $1.33

Polo Glen 2000 13 2/2/0 1,161 $1,450 $1.25

The Terraces 1988 16 2/2/0 T 1,177 $1,438 $1.22

The Laurels At Jacaranda 1990 120 2/2/0 1,030 $1,418 $1.38

The Terraces 1988 56 2/2/0 1,113 $1,404 $1.26

The Terraces 1988 32 2/2/0 1,089 $1,388 $1.27

Polo Glen 2000 13 2/2/0 1,120 $1,350 $1.21

PARAGON PLANTATION 1997 20 2/2/0-a 1,083 $1,332 $1.23

Southern Pointe 1981 29 2/2/0 1,111 $1,330 $1.20

Southern Pointe 1981 59 2/2/0 1,029 $1,295 $1.26

Southern Pointe 1981 58 2/2/0 997 $1,270 $1.27

PARAGON PLANTATION 1997 2 2/1/0 969 $1,255 $1.30

Southern Pointe 1981 30 2/2/0 950 $1,255 $1.32

TOTAL/AVERAGE 1,469 1,178 $1,516 $1.29

ONE BEDROOM SUMMARYHigh Rent $1,462 $1.75

Average Rent $1,265 $1.50

Low Rent $1,000 $1.24

TWO BEDROOM SUMMARYHigh Rent $1,877 $1.55


Low Rent $1,255 $1.13

PARAGON PLANTATION

THREE BEDROOMSSorted By Total Market Rent

APARTMENT COMMUNITY YEAR QUANTITYUNIT TYPE

SQUARE FOOTAGE

MKT RENT

MKT PER SQ. FT

St. Tropez 1996 10 3/2/0 1,452 $1,967 $1.35

The Waves 1988 36 3/2/1 T 1,400 $1,916 $1.37



St. Tropez 1996 18 3/2/0 1,421 $1,818 $1.28

St. Tropez 1996 30 3/2/0 1,517 $1,775 $1.17

St. Tropez 1996 28 3/3/0 T 1,481 $1,766 $1.19

Verona View 1991 12 3/2/1 T 1,664 $1,756 $1.06

St. Tropez 1996 18 3/2/0 T 1,293 $1,727 $1.34

St. Tropez 1996 10 3/2/0 1,426 $1,712 $1.20

St. Tropez 1996 30 3/2/0 T 1,471 $1,672 $1.14

St. Tropez 1996 8 3/2/0 1,452 $1,658 $1.14

Polo Glen 2000 32 3/2/0 1,393 $1,650 $1.18

PARAGON PLANTATION 1997 16 3/2/0-b 1,485 $1,608 $1.08

Verona View 1991 64 3/2/0 1,438 $1,604 $1.12

PARAGON PLANTATION 1997 16 3/2/0-a 1,306 $1,540 $1.18


Polo Glen 2000 46 3/2/0 1,313 $1,500 $1.14


TOTAL/AVERAGE 686 1,425 $1,705 $1.20

THREE BEDROOM SUMMARYHigh Rent $1,967 $1.39


Low Rent $1,461 $1.06

Rental Comparables By Type

PARAGON PLANTATION

Frac

ture

d C

ondo

Sal

es C

omps

FRACTURED CONDO SALES COMPARABLES

PROPERTY NAME SALE DATE YEAR BUILT UNITSAVG. SF/

UNITSALE PRICE PRICE/UNIT PRICE/SF

SPARAGON PLANTATION 741-791 N PINE ISLAND RD., PLANTATION

TBD 1997 74 1,255 $9,900,000 $133,784 $107

1COURTNEY PARK 5080 LANTANA ROAD, LAKE WORTH

MAY-12 2000 115 878 $13,585,000 $118,130 $135

2VILLAGE EAST 2001 SE 10TH AVE, FORT LAUDERDALE

APR-11 2001 70 934 $7,875,000 $112,500 $120

3DEVONAIRE 11100 SW 6TH ST., PEMBROKE PINES

MAY-13 2000 69 942 $7,700,000 $111,594 $119

4GALLOWOOD 8601 SW 94 ST., MIAMI

DEC-13 1968 37 891 $3,850,000 $104,054 $117

4LAKESIDE VILLAS 15410 SW 75TH CIRCLE LANE, MIAMI

DEC-12 1982 190 728 $15,200,000 $80,000 $110

6THE MARQUESA 145 SW 117TH TERRACE, PEMBROKE PINES

DEC-12 1999 240 1,234 $28,250,000 $117,708 $95

HERON POND 8320 SW 1ST STREET, PEMBROKE PINES

JUL-14 1989 79 960 $8,025,000 $101,582 $106

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PARAGON PLANTATION

FRACTURED SALES COMPS

PARAGON PLANTATION

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ps NO PROPERTY NAME SALE DATE YEAR BUILT UNITS AVG. UNIT SIZE SALE PRICE PRICE PER UNIT PRICE PER SF

PARAGON PLANTATION

781 Pine Island Road TBD 1997 74 1,255 $9,900,000 $133,784 $107


DEER CHASE

4400 NW 6th St May-14 1986 186 914 $23,500,000 $126,344 $138

GABLES SAN REMO

3400 Coral Springs Dr Apr-14 1995 180 1,322 $34,000,000 $188,889 $143

Coral Springs, FL 33065

HILLSBORO BAY CLUB

3600 W Hillsboro Blvd Jan-14 1998 366 1,131 $56,000,000 $153,005 $135

Coconut Creek, FL 33073

VERONA VIEW

10900 NW 17th St Apr-13 1990 293 1,134 $48,460,000 $165,392 $146


THE RESORT AT PEMBROKE PINES

11801 Pembroke Road Jun-13 1986 1,520 949 $225,000,000 $148,026 $156

Pembroke Pines, FL 33025

THE FAIRWAYS AT CAROLINA

2701 North Rock Island Road Jun-13 1994 208 955 $27,000,000 $129,808 $136

Margate, FL 33063

QUIET WATERS AT COQUINA LAKES

11 NW 45th Ave Jun-13 1995 200 1,048 $27,750,000 $138,750 $132

LAKES AT PEMBROKE

9900 Sheridan Street Aug-12 1991/2007 296 985 $42,000,000 $141,892 $144

Pembroke Pines, FL 33024

HARBORTOWN AT JACARANDA

8101 NW 14th St Sep-11 1988 280 987 $39,200,000 $140,000 $142


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PARAGON PLANTATION

SALES COMPS

PARAGON PLANTATIONFIVE-‐YEAR RENTAL THEN SELL ANALYSIS15-‐oct-‐14

TOTAL SF 92.888 74 Units

NET OPERATING INCOME $672.479 $692.653 $713.433 $734.836 $756.881YOY Increase 3% 3% 3% 3%

Purchase Price $9.900.000,00Upfront CapEx $370.000,00Sell Out ($225/SF) $20.899.800,00Disposition Costs (10%) ($2.089.980)Cash flow ($10.270.000) $672.479,00 $692.653,37 $713.432,97 $734.835,96 $18.809.820,00

INVESTMENT RATIOS

All Cash Average

Cap rate 6,79% 7,00% 7,21% 7,42% 7,65% 7,21%All Cash IRR 17,57%

Leverage (with debt)New Debt @ 65% LTV 4.5% Int, 25 yrs, 2 yrs i-‐o payment $6.675.500,00 ($5.864.954)Loan Fees & Debt Service ($66.755) ($300.398) ($300.398) ($445.255) ($445.255) ($445.255)Cash Flow After Debt ($3.661.255) $372.081,50 $392.255,87 $268.177,97 $289.580,96 $12.499.611,00

Equity $3.661.255,00 $3.661.255,00 $3.661.255,00 $3.661.255,00 $3.661.255,00 $3.661.255,00 Equivalent to 73 participations @ $50.000 eachAverage

Leveraged Cash on Cash 10,16% 10,71% 7,32% 7,91% 7,22%Leveraged IRR 33,41%

OUTCOME AFTER SALE (Yr 5)Net income from sale $12.499.611,00Equity reimbursement -‐$3.661.255 Equivalent to 73 participations @ $50.000 eachProfit to share with investors $8.838.356Return to investors 50% $4.419.178 Equivalent to $60.350,59 per paticipation of $50.000Profit after investors has benn paid in full 50% $4.419.178* If IRR > 15% share 50/50 ; if IRR <15% share 80/20

CALCULO DE RETORNOS AÑO 1 AÑO 2 AÑO 3 AÑO 4 AÑO 5

Inversión Inicial $50.000 $50.000Retorno por rentas $14.425 $3.606 $3.606 $3.606 $3.606Retorno por venta $60.351 $60.351Retorno Total $124.776Beneficio Neto $74.776TIR Estimado 22%

Flujo de Caja HOY AÑO 1 AÑO 2 AÑO 3 AÑO 4 AÑO 5($50.000) $3.606 $3.606 $3.606 $3.606 $110.351

Investment Contacts:

786.683.6400

305.933.1242

[email protected]

786.683.6200

305.933.1242

[email protected]

305.409.6334

305.933.1242

[email protected]

786.547.9958

305.933.1242

[email protected]

Paola David Daniel MuñozChristian Giraldo Gerardo Tamayo

315.208.3079

646.7479

[email protected]

Antonio Fidalgo

19495 Biscayne Blvd.

Suite 708 Aventura, Fl 33180

Ph. 305.933.1242

Fax. 305.933.1247

Miami Florida

Calle 100 No 8A - 55

World Trade Center

Piso 10

Ph. (571) 646.7479

Fax. (571) 621.1565

Bogotá - Colombia

www.capitalbrokersusa.com

Date post:	15-Jul-2015
Category:	Real Estate
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