team 5 presentation
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10Note: Starboard of Miami is a single-phase construction project.
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Specific Lease Terms
A. Land Lease Evaluation
Years Base Rent
2016 to 2020 $10/sf
2021 to 2025 $20/sf
2026 to 2035 $25/sf
2036 to 2091 $30/sf
B. Land Lease Including Cash Flow and Capital Event
Participation
Cash Flow: Development
Partner is offering 10% of
their Leveraged Cash Flow share to PortMiami.
Capital Event: Affordable Housing will be donated to
PortMiami after a 10-year holding period. Using 7% cap rate, the value upon donation will be $57MM.
Returns
Discount Rate 6.3%
NPV 75 year $ 171,047,290
NPV 18 year $ 103,062,574
Existing Financial Position
MSRC Ground Lease
Base Rent $ 1
Discount Rate 2.5%
NPV 18 year $ 4,894,961
Years Escalation
2013 10%
2018 10%
2023 10%
2028 10%
2033 10%
The Discount Rate is lower than Starboard of Miami’s
rate due to MSRC’s minimized risk of their existing lease
structure;
Starboard of Miami is offering 21x better return*
PortMiami Land Sale Option
PortMiami Land Sales
Land value $ 49,005,000
Investment return 6.8%
Increase 2%
NPV 75 year $67,316,549
NPV 18 year $39,082,839
The Investment return is
5% higher than the
Starboard’s discount rate
based on opportunity
cost;
Years Escalation
2018 5%
2014 5%
2031 10%
2041 10%
2051 10%
2061 10%
2071 10%
2081 10%
2091 10%
Returns
Discount Rate 6.3%
NPV 75 year $ 142,654,495
NPV 18 year $ 74,669,780
Starboard of Miami is offering 2.6x better return*
*Using 18 years holding period
- 192,000 SF of open space yields opportunities for flexible
Program and community outreach space
- Immediate adjacency to transit plaza
- Sustainable Development/ LEED Platinum Facility:
water conservation, energy efficiency, site sensibility
and connection to alternative transportation -- main
cornerstones of the project.
C. Intangible - Land Value Creation
GROUND LEASE ANALYSIS
*Using 18 years holding period
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FINANCIAL AND SENSITIVITY ANALYSIS
General Note: Development Partner’s returns are generated after 10% reduction from ground land lease cash flow participation
BASELINE ASSUMPTIONS
SOURCES AND USES
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View towards the city
(Financial Closing Cost)
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View From Port Miami
STARBOARD OF MIAMI
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