Upper East Side / MiMo District Assemblage Strategy

The Upper East Side / MiMo District assemblage strategy consists of acquiring and assembling land at $55 $65 psf that is improved with small (2-4 unit) multifamily assets. The land features dense multifamily zoning.
Rather than assembling vacant land, our investors are buying rentable assets based on their zoning and lot size,
and holding them at 3.5%-4.5% cap rates based on the revenue generated from the rental units. The overall
strategy is to hold low CAP-rate land with high appreciation potential through the means of assemblage, postassemblage unit buildout potential, land appreciation, increased area desirability, change in demographics, and
possible rezoning.
Currently, the land being assembles features T-5O zoning which permits for construction up to 5 stories + roof
top terraces and a maximum unit buildout of 65 units per acre. If a variance can be acquired after assemblage
to T-680 zoning, the unit buildout density will increase to 125 units per acre and the height restriction will increase
to 8 stories. Additionally, T-680 zoning permits for mix-used developments and ground level retail / offices. It is
the professional opinion of various land brokers in the area that if a zoning variance is granted, the land value
can double in value based on the development potential. In general, the city allows variances such as this one
due to the fact that the height restriction is only raised by 3-stories, and all of the properties along Biscayne
frontage already feature T-680 zoning. The county would also re-assess the land and tax revenue would
increase significantly. There are currently no development or construction projects being planned by our
investors, rather, the strategy is to continue assembling land at a price which is justified by CAP rate.

Current Land Ownership Map

Target Area: East of Biscayne, between 83rd Street and 87th Street

Target Area Map

Strategic & Unique Location

The area in which land is being acquired is very unique due to its strategic location. To the east, Biscayne Bay
and the highly trendy and historical Shorecrest, Davis Harbor, and Miami Shores neighborhoods on the bay. To
the North, the very desirable neighborhoods of El Portal and Miami Shores. To the south, the MiMo District, Belle
Meade, and Morningside. To the west, the railroad track, i-95, and the Little River. The area is also located East
of Biscayne Boulevard and i-95, and blocks from the busy 82nd street corridor which leads directly from Miami
Beach to i-95. Biscayne Boulevard also serves as a major corridor that spans Miami-Dade county in a North /
South Direction.

The area is also unique due to the fact that the properties found here were primarily built in the 1930s+, many
of which have not been improved and pride of ownership is often absent. In order to encourage re-development
and improvement of the small area which consists of 5 blocks, the county increased the zoning to T-50 within
the past few years. The properties our investors are purchasing are primarily owned by low / middle class
residents, many of which are members of the Hattian Community. Through the acquisition and rehabilitation of
these homes, our investors are improving the curb appeal, tenant class, demographics of the neighborhood.
However, many of the neighborhoods and suburban areas surrounding the neighborhood have already been
redeveloped and are very desirable.

Current Primary Land Owners

Ivestor / Company

Land (Sq Ft)

Land (Acerage)

Unit Buildout (T-5O)

Unit Buildout (T-68O)

Estimated Value ($80/psf)

Future Value $150/psf

Bromberg (PIA Investor)

123965

2.85

185

356

$9,917,200

$18,594,750

PIA Group

33220

0.76

50

95

$2,657,600

$4,983,000

Barrington Family

143998

3.31

215

413

$11,519,840

$21,599,700

Redy Set Go

164221

3.77

245

471

$13,137,680

$24,633,150

Elder

65547

1.50

98

188

$5,243,760

$9,832,050

Maldonado / Degwitz

69428

1.59

104

199

$5,554,240

$10,414,200

Key Points

Land is currently being acquired by our investors at a range between $55 - $65 per sq ft

The land is being held at an average CAP rate of 3.5% - 5%

The average price per buildable unit is $40,000

The primary land owners are asking $85+ per sq ft for their land with T-5O zoning

Comparable zoned land in Midtown, Wynwood, and the Design district is currently
selling above $200/psf

With a zoning variance to T-680, the value of the land is estimated to double based on
the new unit buildout potential, height restriction, and introduction of commercial uses

Our acquisitions team is in contact with many of the land owners in the area and can
continue assembling land at the rate of $55 - $65 per sq ft for the land

During the following real estate cycle, either trading or developing the land can be
considered

In the opinion of local commercial brokers, If enough land as assembled at T-5O to build
250+ units or if a variance is granted, the land becomes very attractive to institutional
builders and investors

There is a tremendous lack of affordable, densely zoned land with aggressive height
restrictions in Miami-Dade county, east of Biscayne that is un-improved.