Biscayne 112 is a 402-unit, ground-up, multifamily development in North Miami, FL.
|Projected Net IRR:||16% - 19%|
|Projected Net Equity Multiple:||1.85x - 2.0x|
|Targeted Hold Period:||3 - 5 years|
ArborCrowd is pleased to present the opportunity to own an equity interest in Biscayne 112, a Class A, ground-up, multifamily development in North Miami. ArborCrowd is seeking to raise $5.15 million in equity to invest in the expansion of Miami’s suburbs. The total capitalization of the project is $103.8 million.
Once completed, Biscayne 112 will feature 402 units, comprised of a mix of one, two and three-bedroom apartments. Additionally, there will be approximately 40,000 square feet of amenity space, including a state-of-the-art fitness center, two swimming pools, an entertainment room, a lounge, zen gardens and a dog park. The property will also have 663 parking spots.
Strong Market Fundamentals
1: ESRI 2: U.S. Census Bureau 3: CoStar 4: WorldCity, Inc.
What We Like About the Deal
The project sits on one of the last large developable parcels in North Miami. It is expected to capitalize on the area's strong demand for quality apartments amid low supply of such units.
Rent comparables are used to compare the underwritten income potential of the property with local market competition.
The list on this page contains a mix of renovated and newly constructed Class A properties that are expected to compete with Biscayne 112. As exhibited, the properties that have been built in the past few years command signiﬁcantly higher rents than the renovations of older vintages. Biscayne 112’s underwritten rents are comparable to what is already being achieved in the local market. The Sponsor anticipates that the progression of Downtown’s growth northward will continue, and that the property’s rents are priced to capitalize on such growth.
1: Reﬂects achievable rents if units at the property were being leased when construction commenced. 2: Comparable rates were veriﬁed by ArborCrowd through market surveys as of October 2019. 3: Occupancy as of August 1, 2019. Update could not be obtained. 4: Lazul opened in November 2018 and is currently 89% occupied and 91% leased. 5: Occupancy as of May 7, 2019. Update could not be obtained. 6: The Shoreline at SoLē Mia opened in January 2019 and is currently 87% occupied and 96% leased.
Sales Comparables contrast the cost of the property and its projected sale price against sales of similar recent properties in the area.
The approach validates if the cost basis is at a discount to trades in the market and also provides insight on the potential viability of the business plan with a sale of the Property.
Biscayne 112’s development cost is $258,320 per unit while comparable ﬁnished projects within a 15-mile radius from the project have sold for $282,269 per unit on average since 2012.2
1: Transactions listed are sales of Class A apartments that ArborCrowd believes are similar to the expected ﬁnishes of the project and that are within a 15-mile radius of the project, have more than 100 units, were built after 2012, and have sold in the last 5 years. This list is not to be interpreted as an exhaustive list of every apartment property that has traded in Miami. 2: Real Capital Analytics, Cushman & Wakeﬁeld and CoStar
The Miami-Fort Lauderdale-West Palm Beach Metropolitan Statistical Area's (MSA) population growth has outpaced the national rate for almost a decade.
1: U.S. Census Bureau
Driven by strong economic growth, the MSA’s household incomes have risen since 2010, while the unemployment rate is lower than the national rate.
1: U.S. Department of Labor 2: ESRI 3: WorldCity, Inc.
The population within a 1-mile radius of the property is projected to grow 5.91% between 2018 and 2023.1
Recreation and Entertainment
North Miami, known locally as NoMi, is a culturally diverse community populated with an eclectic blend of restaurants that serve a wide range of authentic cuisines. It’s close to Aventura Mall, the third largest mall in the U.S. by retail square footage, and Oleta River State Park, Florida’s largest urban park.2
North Miami is a hub for higher education with institutions such as Florida International University’s Biscayne Bay Campus, Johnson & Wales University – North Miami and Barry University located in the immediate area, which serve more than 15,000 students combined.3
SoLē Mia is a Class A, 184-acre mixed-use development that is well underway. The 12-tower complex will be predominantly condominiums and comprised of more than 4,390 units.4 SoLē Mia is expected to generate 14,000 short and long-term jobs, and have 220,000 square feet of ofﬁce space, and more than 673,900 square feet of retail and entertainment space.5
2: Florida Department of Environmental Protection
3: Barry University, Florida International University, and Johnson & Wales University enrollment statistics.
5: City of North Miami
6: U.S. Census Bureau
7: US News & World Report about Miami-Dade County Public Schools 8: Linetec
9: WorldAtlas: Largest Malls in the United States
ArborCrowd is the ﬁrst real estate crowdfunding platform to be launched by a real estate institution, opening an exclusive network to a new class of investors.
As part of The Arbor Family of Companies, which includes Arbor Realty Trust (NYSE: ABR), a leading publicly traded commercial mortgage real estate investment trust, ArborCrowd is backed by more than 30 years of leadership experience.
ArborCrowd’s model is unlike any other — deals are offered one at a time with robust offering materials. ArborCrowd doesn’t pool investor’s funds into deals without ﬁrst evaluating the underlying assets. ArborCrowd has created a better way to invest in which investors know exactly where their money is going.
ArborCrowd is part of The Arbor Family of Companies, which along with Arbor Realty Trust, includes Arbor Commercial Mortgage, and Arbor Management Acquisition Company ("AMAC"), a full-service real estate investment and operating ﬁrm. The family of companies was established to create a real estate ecosystem that capitalizes on over three decades of experience. ArborCrowd leverages it to curate high-quality deals for investors.
The Biscayne 112 development team is comprised of well-qualiﬁed and accomplished institutions with backgrounds in designing, building and managing ground-up, multifamily properties.
Asset Manager: ArborCrowd
The ArborCrowd Asset Management team has already started working with the Sponsor on this project and will continue to oversee the deal’s progress on behalf of investors until the business plan has been completed.
Ivan Kaufman is a Co-Founder and the CEO of ArborCrowd. He is also the Chairman and CEO of Arbor Management Acquisition Company
Kaufman has extensive experience operating a diverse array of real estate ﬁnance companies that spans four decades and numerous real estate cycles. He is currently the Founder, Chairman, President and CEO of Arbor Realty Trust, Inc. (NYSE: ABR), a leading multifamily and commercial real estate lender and real estate investment trust that became publicly traded in April 2004.
In addition, Kaufman is the Founder and CEO of Arbor Commercial Mortgage, LLC, a multifamily ﬁnance company he established in 1995. In 2016, Arbor Realty Trust formally acquired the agency lending platform of Arbor Commercial Mortgage.
Adam Kaufman is a Co-Founder and the COO of ArborCrowd. In this role, he oversees ArborCrowd’s corporate growth strategy.
Following the legalization of general solicitation by the JOBS Act of 2012, Adam recognized early on there was an opportunity to create a platform to give individuals who previously never had the opportunity to invest
in institutional real estate transactions access to those deals. He formed ArborCrowd as a member of The Arbor Family of Companies to allow a new class of investors to participate in the same deals that an experienced real estate organization does.
Recently, Adam was a recipient of Commercial Property Executives "Stars to Watch" and REFI US' "Rising Stars" awards. In 2018, Adam was selected to Commercial Observer’s “Top 25 Debt and Equity Professionals Under 35.” He was named to New York Real Estate Journal’s “Ones to Watch” list in 2018 and 2019. He is a Forbes Real Estate Council member and has spoken at various prestigious institutions, including The Wharton School, Harvard University and Columbia Business School. Adam is a graduate of the University of Pennsylvania, who has served within the U.S. Senate Committee on Foreign Relations.
Maurice Kaufman | Co-Founder
Maurice Kaufman is a Co-Founder of ArborCrowd. He is also a Co-Founder and Principal of Arbor Management Acquisition Company ("AMAC"), in which he oversees all facets of the company, including acquisitions, business development, asset management and investor relations.
Under his leadership, the AMAC team has built an international investor community and closed two funds that have acquired more than 5,500 multifamily units.
Prior to joining AMAC, Mr. Kaufman was a Senior Analyst at Long Pond Capital, a real estate dedicated hedge fund, where he was responsible for investing in companies that were involved in all sectors of the real estate industry both nationally and internationally.
Mr. Kaufman received a Bachelor of Science degree in Economics from The Wharton School of Business at the University of Pennsylvania.
Arbor Management Acquisition Company, LLC ("AMAC"), together with its subsidiaries and affiliates, is a full-service commercial real estate investment and operating firm based in New York. Founded in 2012 by Arbor Realty Trust and ArborCrowd CEO Ivan Kaufman, and by Fred Weber and Maurice Kaufman, the firm has acquired over 8,000 multifamily units within diverse primary and secondary markets nationwide.
AMAC has experience across all types of real estate investment strategies. AMAC and its afﬁliates, currently own or operate over 5,000 multifamily units. AMAC’s key principals have led the teams that have acquired multifamily properties with a total deal capitalization in excess of $1.07 billion. AMAC has delivered an average deal IRR of 55% in past realized projects. This is the fourth deal that AMAC and ArborCrowd have done together.
Greystar1 is the largest apartment operator in the United States, managing a portfolio of
more than 450,000 units.2
Since Greystar Chief Executive Ofﬁcer and Chairman Bob Faith founded the company in 1993, it has been solely focused on the multifamily sector. Today, Greystar has a team of approximately 14,000 employees in more than 180 markets globally and it oversees an estimated $115 billion worth of real estate. In South Florida, the company manages 41 properties comprised of 10,549 units.
Greystar’s national platform provides economies of scale, ﬁnancial sophistication and institutional-quality reporting services for its clients. Greystar is able to quickly understand and adapt to changing market dynamics with local experts in nearly 500 cities across the country.
1: Anticipated property manager
2: National Multifamily Housing Council
Located in Miami, Delant is known for completing highly complex projects on time and on budget. Over their 37-year history, they have delivered large-scale projects amid adverse economic conditions, environmental obstacles, and scheduling constraints.