RESORT ACQUISITION

IN DAYTONA BEACH ,
FLORIDA
The Plaza Resort & Spa, a Condominium
100 guestroom units, non-commercial lot
LOGICAL REAL ESTATE LLC

Source: Investment Offering Memorandum, HREC Investment Advisors®

 LOGICAL REAL ESTATE LLC
02
Source: Investment Offering Memorandum, page 17
 LOGICAL REAL ESTATE LLC
03
Source: Investment Offering Memorandum, page 6, 24, 26, 28
The Daytona Beach Lodging Market

LOGICAL REAL ESTATE LLC

The Daytona Beach Market has some 180 lodging establishments encompassing approximately
14,000 guestrooms.
For the purposes of this opportunity, the Daytona tourism market consists of two primary
corridors:
(1) the International Speedway Boulevard corridor and
(2) the beaches (Beachside) corridor.

Not surprisingly, the hotels within the International Speedway Boulevard corridor accommodate
many of the guests who are attending racing and other special events at the Speedway. These
hotels also capture much of the general commercial demand in the greater Daytona Beach market,
as well as certain demand associated with area hospitals and higher education establishments.

Likewise, the hotels and resorts located within the Beachside submarket accommodate the vast
majority of those travelers who come to Daytona for:
(3) beach-oriented vacations,
(4) motorcycle-related special events, and
(5) group/meeting demand associated with the Ocean Center.

As is typical in many beach markets in Florida, demand from the commercial sector often migrates
to the beachside hotels during the shoulder and off-season months when hotel rates are lower, but
the views never change. This dynamic will intensify with the opening of the Brown & Brown
headquarters building proposed for a site across the Halifax River proximate to the Plaza Resort &

04
Spa.
Source: Investment Offering
Daytona Beach Hotel Market by the Numbers

LOGICAL REAL ESTATE LLC

Source: Investment Offering Memorandum, page 48, 52

05
 “ The W o r l d ' s M o s t F a m o u s Beach " | " Bi r t hplace of
DAYTONA BEACH GROWTH NA SCA R "
A rapidly transforming economy

LOGICAL REAL ESTATE LLC

The market’s popularity is a function of:

(1) Its iconic beaches and overall entertainment offering.

(2)Its accessibility to hugely productive source markets via I-95
and I-75.
(3) Its proximity to Central Florida’s other world-class
attractions.
As Central Florida’s population continues to
explode, Volusia County is becoming a hot-bed
of new residential development. To this point,
in April 2018, builders pulled 241 permits, the One of t he m o s t pop u la r
second highest number of permits for a single tourism de s t ina t ion s in Flo r ida
month in over 10 years.

With easy access to I-95 and excellent

infrastructure maintenance, Volusia County
offers a central location for manufacturing and
logistics firms.

Local general real estate experts have

catalogued over 90 commercial projects in the
Daytona Beach development pipeline.

06
Source: Investment Offering Memorandum, page 33-34, 40-41, 42=43
 LOGICAL REAL ESTATE LLC
Source: Investment Offering Memorandum, page 14 - 15

07
 LOGICAL REAL ESTATE LLC
Source: Investment Offering Memorandum, page 3, 9, 18

08
 E x cl us i v e righ t to con tr ac t w i th the Uni t O w ne rs
About the Daytona Beach Acquisition Project r ela t iv e t o the r en t al p r og r am
A RARE FLORIDA BEACH FRONT | HIGH VALUE - ADD OPPORTUNITY

E x cl us i v e righ t to manage ho tel ope r a t ion s

LOGICAL REAL ESTATE LLC

INVESTMENT PROPERTY :
The Re s o rt ha s no t been u pda t ed in man y y ea rs and , a s
su ch , p r o v ide s the pe r fec t can v a s fo r a tr an s fo r ma t i v e
r eno v a t ion .
The P r ope rty ha s been a lende r - o w ned ( REO ) a ss e t fo r
o v e r s e v en y ea rs no w , the r e i s excep tional u p s ide
ope r a tional po ten tial t h r o u gh a tr an s fe r of t enanc y t o
a mo r e “ ty picall y mo t i v a t ed ” o w ne r .
No t e that 1 0 of the 3 2 3 g u e str oom Uni ts a r e o w ned
b y the Uni t O w ne rs ’ A ss ocia t ion and ma y be a vailable
fo r acq u i s i t ion (in a s epa r a te tr an s ac tion ) in
conj unc tion w i th the tr an s ac t ion con t empla ted
he r ein . A s the r e i s an ac ti v e “ s econda ry ma r ke t ” fo r
the Uni ts , f urt he r o w ne rs hip con s olida t ion o v e r time
i s po ss ible .

O w ne r s hip of t he Non - Comme r cial Lo t and 100

gu es t r oom Uni ts

De v elopmen t r igh ts t o the F utur e De v elopmen t

P r ope rty Con tr ol of the Ma st e r A ss ocia t ion

Effec t i v e con tr ol of the Uni t O w ne rs ’ A ss ocia t ion

09
Source: Investment Offering Memorandum, page 7-8, 22, 50
The Daytona Beach Acquisition Project

LOGICAL REAL ESTATE LLC

10
Source: Investment Offering Memorandum, page 18 - 19
The Daytona Beach Acquisition Project
ABOUT THE GUESTROOMS

The Re s o rt ha s not been u pda t ed in man y y ea rs and, a s su ch , p r o v ide s the pe r fec t can v a s fo r a tr an s fo r ma t i v e r eno v a t ion . A s indica t ed in the adjacent table, 6 5 % of the

LOGICAL REAL ESTATE LLC

Re s ort ’ s g u e str oom s a r e oceanf r ont . F urt he r , 8 8 % of the 1 0 0 g u e str oom s o w ned b y the Selle r a r e eit he r oceanf r on t o r o v e r look the Halifa x Ri v e r . An addit ional 1 0 Uni ts
a r e o w ned b y the Unit O w ne r ’ s A ss ocia t ion and can pot en t iall y be acq u i r ed b y t he B uy e r in a s epa ra t e tran sac t ion.

11
Source: Investment Offering Memorandum, page 24 - 25
Revenue Generation
A RARE FLORIDA BEACH FRONT | H I G H VA L U E - A D D O P P O R T U N I T Y

Pla z a Spa Ocean Wa t e rs (the NCL o w ne r / o w ne r of the (As a footnote, SOHO i s al s o a ut ho r i z ed to ded u c t f r om r oom

LOGICAL REAL ESTATE LLC

common areas) gene rat es net income f r om the p u blic r e v en u e di str ib ut ion s t o the Uni t O w ne rs , an y u npaid
s pace s t h r o u gh the ope r a t ion of the Food & Be v er age mon t hl y homeo w ne r a ss e ss men ts , t h us en sur ing minim u m
Depa rt men t , O t he r Ope r a t ed Depa rt men ts and Ren t al s & collec t ion i ssu e s fo r the Uni t O w ne rs A ss ocia t ion .)
O t he r Income.

The indi v id u al g u e str oom Uni t O w ne rs (including REDUS )

generate income f r om Room s Depa rt men t ope r a t ion s .
In acco r dance w i t h the Lea s e Ag r eemen t betw een SOHO
and the indi v id u al Uni t O w ne rs , the Uni t O w ne rs a r e
en titled t o a 50 / 50 s pli t of the g u e str oom r en t al r e v en u e s
a ttr ib ut ed t o t hei r Uni t.

Ho w e v e r , af t er cert ain cha rge back s ( su ch a s fo r SOHO ’ s

managemen t fee, ho us ekeeping e x pen s e s and in - r oom
main tenance costs), the aggregate net s pli ts t o the
indi v id u al Uni t O w ners is ru nning at app r o x ima tel y 3 1 %.

A s su ch , the hot el ope r a t o r r e t ain s r o u ghl y 6 3 % of all

Source: Investment Offering Memorandum, page 13

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r oom s r e v en u e s generat ed b y o t he r Uni t O w ne rs .
About the Daytona Beach A s t o t he r eno v at ion of t he common ar eas : The Unit O wners
Association will be responsible for 47 . 75 % of the cost to renovate
the common areas, and the owner of the Non - Condominium Lot
Acquisition Project

LOGICAL REAL ESTATE LLC

(i.e., the Buyer ) will be responsible for the remaining 52 . 25 %. As
the owner of 1 0 0 guestroom Units , the Buyer will also be
A RARE FLORIDA BEACH FRONT | H I G H - VA L U E A D D responsible for paying its prorata share ( 30 . 96 %) of the Unit Owners
OPPORTUNITY Association financial responsibility . All told, then, the Buyer would
need to capitalize through its own sources just 67 . 03 % of the total
GO ALS : cost to renovate the common areas .

Comple t e a t ho r o u gh P r ope rty Imp ro v emen t Plan (PIP), A s t o t he r eno v at ion of t he indiv id u al g u es t r oom s : E ach guestroom
Unit Owner will be responsible for funding the cost to renovate
w he the r of o ur o w n independen t de sign o r a s dic ta ted
their individual Unit (the actual renovations will be completed by
b y a ho tel b r and in connec t ion w ith the acq u i s i t ion of a
the Buyer ).
flag.

F u nd s t o complet e t he PIP w ill come fr om tw o s o u r ces : (1 ) from the

Buyer (as part of their overall acquisition capitalization), and (2) from
the Unit Owners through (a) the existing reserve accounts (which
currently amount to +/- $ 983 , 000 , with an additional +/- $ 868 , 000 to
be collected over the course of 2020 ) contains and (b) through the
implementation of a special assessment to be charged to the Unit
Owners .

13
Source: Investment Offering Memorandum, page 16
 M r . F r e y ha s b r oad ex pe rience in the real estate ind ustry
es pecially in Flo r ida and fo r o v e r 2 6 y ea rs in O r lando . M r . F r e y
p r o v ide s the compan y hi s v a ried ope ra t ional and financial

LOGICAL REAL ESTATE , LLC

experience s .

Meet Us Hi s compan y S u n A ss e t Holding s , Inc., de v eloped bo th

comme r cial and
marketed, s old , and
r es idential p r ojec ts .
b u ilmanaged
t,
C hu ck ' s team
s ho rt ter m r ental ho us ing and
comme r cial office condo s a s w ell a s marke ted and s old apa rtmen t
con v e rs ion and condo ho tel projects ..

Charles Frey P r io r to st a rt ing - u p the S u n affiliated companie s and the holding compan y S u n A ss e t Holding s , Inc., M r .
F r e y held e x ec ut i v e office r, s enio r financial, ope rat ional and r eal estate de v elopmen t po s i t ion s wit h
S u n t e rr a Re s o rts , Inc. O v e r hi s y ea rs with S u n t e rr a M r . F r e y s e rv ed a s an E x ec ut i v e Vice P re s iden t and
Chief Financial Office r P r es iden t of the USA Ope ra t ion s , Chief Acco u n t ing Office r and Senio r Vice P r e s iden t of O w ne r Se rv ice s
fo r t hi s p u blic compan y . M r . F r e y w a s ma t eriall y in v ol v ed wit h the de v elopmen t of S un t e rra ’ s C y p r e ss
and Boa r d Chai r man Poin te and Emba ssy G r and Beach p rojec ts in O r lando . M r . F r e y w a s wit h S u n t e rr a f r om i ts 1 9 9 2 inception
and w a s in stru men t al w ith bu ilding the compan y befo r e and aft e r the Initial P u blic Offe ring in 1996 . P r io r
t o joining S u nt erra , M r . F r e y w a s a Pa rt ne r and Chief Financial Office r w ith T r ammell C r o w Res idential in
Boca Raton, and a comme r cial di v i s ion con tr olle r with Ge r ald Hine s Interests in Ho ust on , bo th r eal estate
dev elopmen t companie s .

M r . F r e y i s a graduate of Indiana Uni v e rs i ty of Pennsy lvania, with a majo r in Acco u n t ing and a mino r in
Economic s . He i s a licen s ed Ce rt ified P u blic Acco u n t an t in Te x a s , a Flo r ida Real E st a t e B r oke r , a licen s ed
Mo rt gage Loan Origina to r, and a Comm u ni ty A ss ocia t ion Manage r in Flo r ida .

14
 Co - Founder and Director of Research of OMNIResearch and the Wall Street
Advantage and has been the Director of Research for a number of small
boutique broker - dealers including NYSE member firms . Nunez is currently
collaborating with research providers , actuaries and Think Tanks on the

LOGICAL REAL ESTATE , LLC

research , creation and implementation of products and models that provide
solutions to numerous Pension funding issues . He has been the CIO of a start -

Meet Us
up Emerging Fund of Hedge Funds , a consultant to Progress Investment
M anagement and previously raised the seed capital for the ' E merging M anager Trust' while
consulting to the nations ' first minority - owned institutional pension consulting firm . OMNIResearch
created and conducts various trustee education programs including OMNI ' s " Annual Finding Alpha
in the Delta Trustee Institute", and the " Annual OMNI Buttonwood Investment Roundtable
Series ". Nunez provides his expertise to others in the Industry as a member of the P&I Research

Dorien Nuñez Advisory

Panel and as a member of the Advisory Board for IM N . He has extensive experience as a
moderator , speaker and conference chairperson for educational events. Nunez ' s experience spans
more than 2 5 and includes : Institutional investing; conducting risk management, analyses and
Di r ec t o r of
monitoring . He has specialized in Emerging Manager programs and Trustee / Staff Education for
Re s ea r ch
more than 2 0 years . He has been a Consultant to the " Presidential Commission on Minority
Business " ( under President George H . W . Bush ) and a delegate to the " White House Conference
for Small Businesses " under President Bill Clinton . Nunez received his C F A in 1986 . He taught
several courses in Business and Finance as an Adjunct Professor at two universities . Nunez
received his M B A from Harvard Business School where he won the Uehlmann Award for his
research on " The Use of the Futures Market for Institutional Investors to Hedge Risks ". His
undergraduate degree from Harvard was in Sociology with emphasis on Statistics. He is an alumnus
of St. Paul ' s School of Concord , NH and a proud alumnus of the public school system of New York
City . He is an avid amateur astronomer and saxophone player .

15

Meet Us
O ur t eam of e x pe rts
r ep r e s en ts t he be st and
b r igh t e st in t he
ind ustry
KELVIN RAY XUNA | FOUNDER OF
LOGICAL REAL ESTATE LLC
Kel v in i s kno w n fo r inno v a t i v e
ho us ing s ol ut ion s . He i s a pionee r of
co - li v ing in Lo s Angele s . In 2008 ,
Kel v in g rad u a t ed Ha rv a r d Uni v e rs i ty
w i t h a Ma st e r in Ho us ing and
U r bani z a t ion .
Inco r po r a t ed in Miami in 2008 , Logical
Real E st a t e, LLC ' s tr ack r eco r d s pan s
o v e r 1 0 y ea rs of hand s - on e x pe r ience
in r eal estate managemen t.
LOGICAL REAL ESTATE , LLC
SCOTT PODVIN | EXECUTIVE
DIRECTOR AT OPTIMIZATION PROS
Sco tt i s a Ha rv a r d ed u ca t ed en tr ep r ene ur ,
r eal e state & sust ainable ene r g y de v elope r -
- bu ilding and developing p r ofi t cen t e rs
and designing s ma rt mini - g r id s us ing onl y
sust ainable and r ene w able ene r gy s o ur ce s .
Sco tt ha s con v e rt ed apa rt men t b u ilding s and
ho t el s t o condomini u m s , s peciali z ing in
M & A , finance, s ale s and ma rke t ing and
ope r a t ion s . Sco tt r ecen t l y ea r ned an eMBA
f r om TRIUM i ssu ed join tl y b y the London
School of Economic s , Ne w Yo r k Uni v e rs i ty
16
(Stern School of B us ine ss ) and H E C Pa r i s .

Meet Us
O ur t eam of e x pe rts
r ep r e s en ts t he be st and
b r igh t e st in t he
ind ustry
JEFF SMITH | DIRECTOR AT
WESTDALE ASSET MANAGEMENT
Jeff i s an e x pe r ienced comme r cial r eal
est ate p r ofe ss ional w ell di s ciplined in
acq u i s i t ion s , po rt folio / a ss e t
managemen t, finance and capi t al
stru c tur ing . Ha s con s i st en t l y
demon str a t ed the abili ty t o lead and
ac t ion a w ide range of comple x r eal
estate tr an s ac t ion s , and clien t / in v est o r
r ela t ion s hip management.
LOGICAL REAL ESTATE , LLC
BOBBIE RAGSDALE | REAL ESTATE
DEVELOPER & PUBLIC SERVANT
Bobbie i s a r eal estate de v elope r w i t h
e x pe r ience in RE acq u i s i t ion s ,
con su l t ing , negotiations, managemen t,
renov a t ion , and con stru c t ion ac r o ss 4
st a t e s . Recen t l y tr an s i t ioned A r m y
office r wi t h command and st aff
ex pe r ience . Recipien t of the 2 0 1 3 and
2 0 1 4 D r ape r A r mo r Leade rs hip A w a r d .
P r e s iden t of the We st Poin t Cla ss of
2007 .
17

Meet Us
O ur t eam of e x pe rts
r ep r e s en ts t he be st and
b r igh t e st in t he
ind ustry
LOGICAL REAL ESTATE , LLC
ANTONIO EMMANOUILIDIS | HEAD
OF QUANT STRATEGY –
SUCDEN FINANCIAL
An t onio ha s e x pe r ience in banking,
in v e st men ts , a ss e t managemen t and
co r po r a t e finance . Hi s backg r o u nd
co v e rs r i s k managemen t, e x o t ic trading,
fi x ed income and fo r eign exchange.
18
Why invest Take advantage of o ur u niq u e in v e st men t

LOGICAL REAL ESTATE LLC

oppo rtu ni ty t o make a p r ofi t able r e tur n

with us? on y o ur in v e st men t .

Feel s ec ur e in o ur p r o v en hi st o ry , ru nning
str ong s ince 2012 , t o kno w t ha t t hi s i s a
EXTRAORDINARY OPPORTUNITY need fo r e xpan s ion , no t hope fo r su cce ss .
TO ACQUIRE IN DAYTONA
B E A C H AREA Pa rtne r w i t h o ur t eam as we e x pand and
imp r o v e as a r e su l t of y o ur co urt eo us
con tr ib ut ion s . We look fo rw a r d to
w o r king w i t h y o u !

19
 The Inc r edible Da yt ona Beach T ur na r o u nd S to ry
Gi v en t he t e rr ific su cce ss of the “ fi rst mo v e rs ,” Da yt ona Beach ha s ent e red int o the s econd
pha s e of y e t ano t he r inc r edible Flo r ida beach ma r ke t tur na r o u nd st o ry . Thi s pha s e i s

Why invest

LOGICAL REAL ESTATE LLC

r ep r e s en t ed b y the infl ux of mo r e in st i tut ionali z ed in v e st men t dolla rs that a r e taking
advantage of (1) str ong g r owt h trend s , co u pled wit h (2) lo w e r o v e r all r i s k .

with us? I rr eplaceable Loca t ion

The Pla z a Re s o rt & Spa i s e x cep t ionall y w ell loca t ed within the “ do w n t o w n ” neighbo rhood
of the Da yt ona Beach “ Beach s ide ” ma r ket .

E xpan s iv e Beachf r on t
The Re s o rt fea tur e s s ome 8 0 0 linea r feet of beachf r on t (second longest in t he market).

EXTRAORDINARY OPPORTUNITY TO F urt he r , the beach in f r on t of the Re s o rt i s v ehicle r e str ic t ed .

ACQUIRE IN DAYTONA B E A C H AREA Renovate a t a F r ac t ion of t he Co st

D u e t o the condo - ho t el stru c tur e , the Re s o rt can be r eno v a t ed at a f r act ion of the co st
that w o u ld be inc urr ed if the P r ope rty w e r e w holl y owned .

Addi t ional Val u e Add

Addi t ional v al u e add componen ts inclu de : (1) con s olida t ion of o w ne rs hip , (2) b u ild - o ut of the F utur e De v elopmen t Pa r cel and (3) b u ild - o ut of str ee t - le v el re t ail space .

F u ll - Se rv ice Facili t ie s and Ameni t ie s

In addit ion t o having o v e r 40 , 000 SF of f u nc t ion s pace (including nea r l y 30 , 000 SF of in t e r io r meeting space, the s econd mo st in the market), the Re s o rt ha s the area’s
lar ge st f u ll - s e rv ice spa, an o v e rs i z ed sw imming pool wit h e x pan s i v e deck, +/- 28 , 000 SF of o ut doo r ev ent space, m u l t iple food and be verage o ut le ts and a high - r i s e
g u e str oom t o w e r that affo r d s g u e sts e x pan s i v e v ie ws of the A t lant ic Ocean and / or the Halifa x Riv e r.

Unenc u mbe r ed b y Managemen t / F r anchi s e

The P r ope rty i s being offe r ed u nenc u mbe r ed b y management and branding.

20
Source: Investment Offering Memorandum, page 8
ESTATE, LLC

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EMAIL ADDRESS

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So u r ce : In v e st men t Offe r ing Memo r and u m ,

H R E C In v e st men t A d v i s o r s ®