Amara at Paraiso Building Listed For Sale – Asking $20,000,000
January 27, 2019 by Lucas Lechuga
According to various commercial real estate websites, the freestanding, waterfront building located at 3101 NE 7th Avenue, which houses the Amara at Paraiso restaurant by Chef Michael Schwartz, has been listed for sale for $20,000,000. The sale would include a lease transfer with Amara at Paraiso in place as the tenant. The prospectus for the sale of the property states that Amara at Paraiso has a 10-year lease in place with three options to renew their contract. The restaurant includes 6,445 square feet (4,513 interior square feet + 1,932 exterior square feet), seating for 209 people, boat access, and 24 valet parking spaces.
The two-story building also has a rooftop component called Paraiso Beach Club, and the sale of the property would include income generated from it. According to the prospectus, each unit owner of the four Paraiso condo towers (Gran Paraiso, One Paraiso, Paraiso Bay, and Paraiso Bayviews) is paying $750 per year in membership dues to the owner of the Paraiso Beach Club for the right to use it. This arrangement generates membership income totaling over $1,000,000 per year. The Paraiso Beach Club rooftop is 5,871 square feet (2,794 interior square feet + 3,077 exterior square feet) and has seating for 158 people.
Combined, the rent income plus membership dues generate an annual income of $1,633,750 (an 8.17 percent cap rate) according to the investment prospectus.
why would the building residents agree to pay that extorniate fee when each building has its own great amenities ?
How the residents got rope’d into this type of deal is beyond me. This crosses the line as a sales marketing tool to entice buyers when they were looking to purchase and I’m sure at some point there is either a limit to the time commitment or there will be lawsuit filed to by the HOA once it gets turned over to them. This should be an opt in/out policy as it’s a separate commercial unit entity if the building is being sold and therefore not part of an amenity. Very shady tactics by developers.