Mixed-Use Investment Opportunity

Multi-Family for Sale
Sale Pending/Contingent
Catylist Listing ID: 30289354
Property Subtypes: Mixed Use
Status: Pending/Contingent
Number of Units: 11 Units
Building Size (RSF): 9,820 SF
Gross Building Area: See Agent
Gross Land Area: 0.51 Acres
Sale Price: $850,000
Unit Price: $77,272.73 Per Unit
Property Use Type: Investment
Building Name: Hyde Park Mixed-Use
Sale Terms: Cash to Seller
Cap Rate: Undisclosed
Last Updated: 8/10/2018

Overview / Comments

SBR Commercial is proud to present an exclusive opportunity to purchase a rare multifamily/office mixed-use property near downtown Sarasota. The Hyde Park Mixed Use Investment is a two-story building containing six, fully-occupied multifamily rental units, 4,400 sf of ground floor office space, ample common area and surface parking to accommodate all tenants. The property’s 1/2 acre corner location on Tuttle Ave and Hyde Park Street provides both residential and office tenants easy access and convenient thoroughfares to employment and entertainment locations.

Hyde Park lends itself to numerous value-add opportunities and business plans for a new owner. It’s live-work accommodations, much like the highly-desirable new Bold Apartments, would allow an owner to capitalize on new trends in the market. The 2BR/1BA apartment units, averaging approximately 900 sf plus balconies, are recently updated and consistently full. While a majority of the leases are $900/mo ($1.00 psf), the owner’s newest lease is set at $1,100/mo ($1.22 psf), which is more in-line with the current market.

The property also features ground floor office space, currently built out as five office suites with open common areas. Due to a large tenant relocating, only 1,500 sf (34%) of this space is presently occupied. This existing vacancy allows a new owner the ability to create substantial value through the re-leasing of this space along a heavy medical-use corridor near Sarasota Memorial Hospital. Alternatively, this vacancy would allow an owner to re-imagine the space into a cowork environment, shared medical offices or a live/work setting for its residential tenants.

This investment is truly the best of both worlds for an investor. The fully-occupied apartments generate annual revenue of $69,600 even at their current below market rents. Assuming a market 40% expense margin, the NOI on the rentals would be $41,760, with an implied value of $596,500 at a 7% yield. At only $110 psf, that value would be at or below market comps. At this value, the implied ask price for the office is only $253,000, or $57 psf. With office properties in the area asking over $150 psf, and the apartments alone generating a 5% yield on ask price, this is great opportunity for a new owner with a vision to realize that dream and capture significant value-add at limited risk.

The Hyde Park Mixed Use Investment Property (the “Property”) is located at 2015 S. Tuttle Ave on the corner of Hyde Park Drive in the city limits of Sarasota, FL. This property has six (6) - 2 bedroom / 1 bath apartments which have been updated and are well below market rates. The units are approx 900 SF with balconies. Centrally located just east of Sarasota Memorial Hospital, in a heavy medical use corridor, the property offers great access and visibility for clients and employees alike.

- Priced at a below-market $80 psf. Without the office component, just the apartments are priced at $157 psf, which alone is within market pricing with the office free!
- Apartment rents are below market (majority at $900 vs newest lease at $1,100)
- Little to no deferred maintenance or updates needed in apartments
- Significant office space is essentially bonus income and allows for significant value-add
- Mixed-use layout offers numerous business plan opportunities to cater to the new generation of workers and entrepreneurs
- Convenient location across from Arlington Park with close proximity to Sarasota Memorial and downtown Sarasota
- Ideally located on corner lot with easy access, great visibility and convenient thoroughfares

Additional Details

Nearest MSA: North Port-Sarasota-Bradenton
County: Sarasota
Tax ID/APN: 0058040054
Zoning: OPB
Total Number of Buildings: 1
Property Condition: Good
Number of Stories: 2
Year Built: 1974
Parking Type: Surface
Laundry: Shared

Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 15,445 103,880 176,501
Median Age: 46.39 46.46 48.11
Households: 6,928 47,027 81,178
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