A Feasibility Analysis of a fictitious company South Florida Lofts.

1. South Florida Lofts
Commuter Living at its BEST!
Team Feasibility Analysis Presentation
Michael Joe Cornely
Grigory Shershukov
Ahmed Hassan
Saika Joseph

2. SOUTH FLORIDA LOFTS

3. S.F.Lofts
Isn't it time you moved out of the
dorms and got your own
bathroom?

4. Macro-Level Market
Analysis

5. Powerful Buyers | Low Threat

6. Powerful Suppliers | High Threat

7. Rivals | Low Threat
Miami, Florida
2 Bedroom 2 Bathroom $959
4 Bedroom 4 Bathroom $ 864
Comparable Amenities

8. Substitutes | Low Threat

9. New Entrants | Low Threat
HUGE Capital Investment
Costly
Real Estate Licensing Barriers

10. Industry Analysis
VRIO:
Valuable
Rarity
Imitability
Organization
South Florida Lofts is shaped in its specfic hierarchal way to take advantage of the
student housing market
* is successfully shaping the competitors to be complements &
Strategic

11. Business-Level Strategy
Our business-Level strategy is Focused Differentiation.
S.F. Lofts aims at a student segment of tenants and builds
upon their desire to pay less for a better accommodation.
We are focused to satisfy our customer needs and
preferences to increase our reputation among students of
all years and gain recognition for prospective students.
Strengths
Lower housing prices;
Safe environment;
All-inclusiveness;
Shuttles to universities
Weaknesses
High cost of finance;
Limited housing options;
Vulnerability to local economic conditions;
Universities might not want to work with us
Opportunities
Fewer competition in specific industry,
targeted at students;
Attraction of students with affordable
accommodation;
Flexibility in housing options;
Large target market
Threats
Other rental agencies;
Private rentals;
Fluctuating interest rates;
Unreliable tenants, chance of them not paying

12. Marketing
● Web-page
● Google searches
● Social networks
● Promotional Flyers
● Target greek clubs
● Word of mouth

13. Marketing
“Dorm? No, thank you...” “Loft? Tell me more!”
you

14. The South Florida Lofts Management Team
Internal Resources
Property manager
Property manager assistant
Maintenance Coordinator
2 Full time Leasing Agents
(commission based)
Full time handyman
External Resources
Cleaning Contractor (common
areas and tenant turnover)
Security Contractor
Law Firm on Retainer
Advertising Firm (cost plus)
Landscaping Contractor
Come live where all you need to worry about is that paper for MBA on
Tuesday.

15. S.F.Lofts
Rent a great apartment without
the stress of renting an
apartment.
Apartments are rented by room not by the 2 or 4
bedroom spacious amenity filled floor plans.
Let SF Lofts handle the rest.

16. 2 Bedroom Unit at the SF Lofts $699.99
Each Room has its own lock,
bathroom, desk, bed and closet.
● Community kitchen shared with
only suitemates
● All utilities and equipment managed
and maintained
● Apartment comes with basic
furnishings couch, stools tv stand.
1
2

17. 4 Bedroom Unit at the SF Lofts $599.99
Each Room has its own lock,
bathroom, desk, bed and closet.
● Community kitchen shared with
only suitemates
● All utilities and equipment managed
and maintained
● Apartment comes with basic
furnishings couch, stools tv stand.
4
21
3

18. Forecasted Income PLAN
BREAK EVEN
REFI AND PASSIVE INCOME TO PAY OFF
Grow Equity
Don't lose money
Use Equity to Refinance
Lower Mortgage/Overhead
Reinvest profits
PAY OFF AND THE JOY OF OWNERSHIP
Step 1.
Step 2.
Step 3.
Opportunity to Seek investors for PAY OFF
Lower Mortgage/Overhead
Reinvest profits

19. Step #1 Initial Investment (tiny 3mil please)

20. Step #2 Equity and Refinance. Profit put towards loan Balance

21. Step #3 Ownership / Management & 40 year inspection

22. Calculation Details
Financing Calculations do not account for rent raise
only the higher future higher interest rates making our
calculations more acceptable to investors.
Tax Rates are variable. Calculations use 1.4% not
rising. Basis for not using all of revenues to reinvest
into loan repayment because tax rates are volatile.
Renting by room greatly lowers monthly holding cost.
Less empty rooms more income.
Rental rates not based on any priority, only standard
price scheduling. In the future if we find areas in the
bldg are more preferable we can raise rental rates.
Allows for raises in fixed costs and salaries in 55
month increments (4.5 years)
Final Payoff AUG 2038
The Largest risk to property
owner is units unoccupied.
Renting by room mitigates this
risk greatly. We make up for
the downsides of renting by
room with built in amenities.

23. S.F.Lofts
Rent a great apartment without
the stress of renting an
apartment.
Apartments are rented by room not by the 2 or 4
bedroom spacious amenity filled floor plans.
Let SF Lofts handle the rest.