Investment Overview

Marcus & Millichap, as exclusive listing agents, are pleased to offer for sale the Mar-Bay Apartments, a value-add, 12-unit apartment building in the Normandy Isles submarket of Miami Beach, Florida. The sellers have owned the property since 1971. SUBJECT PROPERTY Mar-Bay Apartments is a twelve-unit, two-story apartment building constructed in 1958 of concrete block and painted stucco. The property is comprised of 7,612 square feet of adjusted living area and is situated on a 7,250 square foot lot, according to the Miami Dade Property Appraiser. The unit mix consists of (2) studio apartments with an average in-place rent of $938 (market rents for competing studio apartments exceed $1,600 per month) and (10) one-bedroom | one-bathroom apartments with an average in-place rent of $1,086 (market rents for competing one-bedroom apartments exceed $2,000 per month). All units are equipped with wall air conditioning units, terrazzo flooring and electric appliances. The property also includes a washing machine and dryer leased through Commercial Laundry. Mar-Bay Apartments also passed its 40/10-year building recertification in September 2018. The property is being sold with an open railing violation (FD2017-03044), which will need to be cured and reinspected no later than December 31, 2024. LOCATION Mar-Bay Apartments is located along Bay Drive, just south of the John F Kennedy Causeway/71st Street. The surrounding neighborhood consists primarily of multifamily properties, condominiums, and single-family homes, with commercial properties located along 71st Street/Normandy Drive. The average household income is reportedly $106,453 within three miles, according to Experian. Nearby points of interest and local retailers include Walgreens Pharmacy (0.2 miles), Normandy Isle Park & Pool (0.4 miles), Grandview Palace Marina (0.4 miles), Normandy Shores Golf Course (0.5 miles), Presidente Supermarket (0.7 miles), Sabor Tropical Supermarket (1.2 miles), North Shore Park & Youth Center (1.5 miles), North Beach Bandshell (1.7 miles), the Pelican Harbor Marina (1.7 miles), Publix Supermarket at North Shore (1.8 miles) and North Beach Oceanside Park (2.3 miles). Additionally, Allison Park (2.4 miles), Bal Harbour Shops (3.9 miles), and Haulover Inlet and Beach Park (4.6 miles) are just a short drive from the property. Area education centers include Treasure Island Elementary (0.5 miles), KLA Schools of North Bay Village (0.7 miles), Papillon Montessori (1.0 miles), Lehrman Community Day School (1.7 miles), Biscayne Beach Elementary School (1.7 miles), Mater Beach Academy (2.4 miles), Miami Beach Nautilus Middle School (4.9 miles), and North Miami Senior High (5.8 miles) and North Miami Senior High (6.1 miles). Mar-Bay Apartments is situated on Normandy Isles, just east of North Bay Village, west of North Beach and south/southwest of Surfside, Bal Harbour, Bay Harbor Islands, and Sunny Isles. The beach includes a boardwalk that becomes a flat trail and leads to the city of Surfside. This is a popular path for runners, bikers, and walkers. North Beach is also home to the North Beach Oceanside Park, with picnic tables, grills, and playgrounds. The North Beach Bandshell, a historic open-air amphitheater built in 1961, is also proximate to Mar-Bay Apartments and famous for its consistent lineup of both local and international musicians. The Town Center District in North Beach extends from 69th Street to 73rd Street and from the ocean to Normandy Isle and is intended to be the center of activity for North Beach. Proposed improvements include revitalized street sections, buildings, and public spaces. Multiple new projects are currently in the development pipeline, including The Gateway on 71st Street, expected to have 110 rental apartments, 8,100 square feet of retail, a 4,900 square foot rooftop restaurant, and two floors of parking. Finvarb Companies proposed a mixed-use project with ground-level commercial space and 232 residential units bordering 71st and 72nd Street on the South and North and Abbott and Byron Avenues on the East and West. Lastly, the Ocean Terrace Redevelopment is a proposed project between 73rd and 75th Street on Ocean Terrace which is expected to have a 58-unit luxury residential building, a 110-room hotel, a 200-car parking garage, and 18,000 square feet of retail. SUMMARY Mar-Bay Apartments is offered for sale free and clear of debt at $2,660,000 or $221,667 per unit.