Lakeside Condominiums is sited on busy North State Road 7 and NW 29 Street in density-rich central Broward County. According to traffic reports, this intersection represents 52,000 vehicles per day that pass by the asset, which lends itself to higher occupancy rates (99%) and lower marketing costs compared to comparable properties in the area. Despite the elevated occupancy at the property, there is substantial loss-to-lease to eliminate. The reason for this loss-to-lease is that the ownership group has owned the asset for over 15 years, and due to their low-cost basis, sees no need to charge top of market rents. This allows a new investor to come in and immediately raise rents by almost $100/month just to close the gap between what comparable properties in the submarket are charging.
A new owner could increase their yield on the investment by developing an interior unit renovation regiment. Currently, the units are all in 'classic' condition and primed for upgrades. We anticipate an investment of $5,000 per unit for interiors that should return a payback within two and a half years with anticipated ROI of well over 35% on the improvements. These assumptions were not included in this Offering Memorandum but do represent an approach to creating value in this submarket.
3 Swimming Pools
4 Laundry Facilities
Stand-Alone Rental Office
Waterview - Select Units
Investment sales / real estate brokerage business is conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan banking and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc.
In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker Lic. #01931050, Berkadia Commercial Mortgage LLC under CA Finance Lender & Broker Lic. #988-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.aspx
© 2019 :: Berkadia Real Estate Advisors LLC
Berkadia® is a trademark of Berkadia Proprietary Holding LLC.