OFFERING SUMMARY

website or advertising expense. The rent growth in the ... premium rents that could help generate extremely outsized returns. ... RECENT COMPARABLE SALES.
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KE Y WEST • FLORIDA

OF F E R ING SUMMA RY 1

Introduction HFF is pleased to offer an epic repositioning and value creation opportunity to acquire one of only three multi-housing communities in Key West, Florida – arguably the highest barrier to entry market in the United States. Ocean Walk Apartments (the “Property” or “Ocean Walk”) is a 297-unit multi-housing community nestled among lush natural vegetation on the island of Key West. The Property is ideally situated on the quiet Atlantic side of the island and is just minutes away from everything that Key West has to offer. The Key West apartment market is vastly under-supplied. With 646 professionally managed multi-housing units on the entire island, Ocean Walk represents 46% of the apartment stock. The submarket consistently posts explosive rental rate growth, with market rents at Ocean Walk having grown 12.4% over the past 12 months. Ocean Walk offers investors a unique opportunity to acquire an asset with strong in-place cash flow and a wide range of viable execution alternatives including a value add apartment strategy or condominium conversion.

PROPERTY OVERVIEW

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Location:

3900 South Roosevelt Boulevard, Key West, FL 33040

Total Units:

297 Units

Number of Stories:

3&5

Number of Residential Buildings:

2

Year Built:

1989

Total Rentable Square Feet:

237,424 SF

Average Unit Size (Under A/C):

799 SF

Construction:

Concrete construction

Percent Occupied (As of April 2014):

96%

UNIT MIX Unit Description

Unit Count

% of Type

Average SF

Total SF

1 Bedroom/1 Bath (1A)

72

24%

549

39,504

2 Bedroom/1 Bath (2A)

105

35%

768

80,640

2 Bedroom/2 Bath (2C)

47

16%

840

39,480

3 Bedroom/2 Bath (3A)

73

25%

1,066

77,800

297

100%

799

237,424

Total/Average

PROPERTY & UNIT AMENITIES Property Amenities

Unit Amenities

Carports

Scenic views

Proximity to employment, schools, and entertainment

Mini-blinds

Elevators

Fully-equipped kitchen

Swimming pool

Private patios and balconies

Storage units

Walk-in closets and wall-to-wall carpeting

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Offering Highlights One of the Highest Barrier-to-Entry Markets in the Country – New Development is Virtually Impossible The Florida Keys is one of the highest barriers to entry markets in the Country because it is surrounded by water on all sides, there are no remaining development sites, and the Keys is subject to the Rate of Growth Ordinance “ROGO” — an extremely restrictive set of rules that make new development virtually impossible. Explosive Rent Growth in the Tightest Apartment Market in the United States Given the extreme barriers to entry and dearth of supply, the Key West apartment market is one of the tightest in the United States. West Isle Club, a key competitor, boasts a 100% occupancy rate with a 3-4 month waiting list for new apartments. Another comparable, Peary Court, has raised its asking occupancy cost by 19% in the last 12 months with no

website or advertising expense. The rent growth in thePEARY marketCOURT is astounding! ASKING OCCUPANCY COST INCREASES OVER PAST Y $2,600 PEARY COURT ASKING OCCUPANCY COST INCREASES OVER PAST YEAR $2,500 $2,600

$2,400

$2,500

$2,300

$2,400

$2,200

$2,300