FLORIDA BEHAVIORAL HEALTH PORTFOLIO …...Lauderdale-West Palm Beach, FL MSA, consists of Miami-Dade, Broward, and Palm Beach counties. The Miami area is a very diverse community with

Freddy’s Frozen CustardLakewood, CO

REPRESENTATICE

FLORIDA BEHAVIORAL HEALTH PORTFOLIO3163 CANADA COURT & 3150 PRINCE DRIVELAKE WORTH, FL 33461

Offering Memorandum

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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID ZAA0070014


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SUBJECTPROPERTY

MAIN CAMPUS | 486 BEDS

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FLORIDA BEHAVIORAL HEALTH PORTFOLIO



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CANADA COURT

PRINCE DRIVE

S CONGRESS AVE37,000 CPD

MAIN CAMPUS | 486 BEDS

PALM BEACH COUNTY PARK/LANTANA AIPORT

MEDICAL OFFICE BUILDINGS Royal Palm Behavioral Health Center




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CANADA COURT

PRINCE DRIVE

S CONGRESS AVE37,000 CPD

Royal Palm Behavioral Health Center


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FINANCIAL OVERVIEW FLORIDA BEHAVIORAL HEALTH PORTFOLIO

STARBUCKS - RELOCATION

RECOVERY UNPLUGGED3163 Canada CourtLake Worth, FL 33461

FINANCIAL SUMMARY

Price $6,000,000

Down Payment 100% $6,000,000

Cap Rate 7.0%

Building SF 20,481 SF

Net Cash Flow 7.0% $420,065

Year Built / Renovated 1978 / 2017

Lot Size 2.72 Acres

LEASE SUMMARY

Lease Type Absolute Triple-Net (NNN) Lease

Tenant Recovery Unplugged, LLC

Lease Guarantor Corporate

Roof & Structure Tenant Responsible

Lease Commencement Date April 1, 2018

Lease Expiration Date March 31, 2028

Lease Term Remaining 9 Years

Rental Increases 3% Annually

Renewal Options 2, 10 Year Options

BASE RENT $420,065

Net Operating Income $420,065

Total Return 7.0% $420,065

ANNUALIZED OPERATING DATA

LEASE YEARS ANNUAL RENT CAP RATE

Current - 3/31/2020 $420,065.00 7.00%

4/1/2020 - 3/31/2021 $432,666.95 7.21%

4/1/2021 - 3/31/2022 $445,646.96 7.43%

4/1/2022 - 3/31/2023 $459,016.37 7.65%

4/1/2023 - 3/31/2024 $472,786.86 7.88%

4/1/2024 - 3/31/2025 $486,970.46 8.12%

4/1/2025 - 3/31/2026 $501,579.58 8.36%

4/1/2026 - 3/31/2027 $516,626.97 8.61%

4/1/2027 - 3/31/2028 $532,125.77 8.87%

EXECUTIVE SUMMARY


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ROYAL PALM BEHAVIORAL HEALTH – SUPPORTIVE HOUSING3150 Prince DriveLake Worth, FL 33461

FINANCIAL SUMMARY

Price $1,200,000

Down Payment 100% $1,200,000

Cap Rate 7.50%

Building SF +/- 6,000 SF

Net Cash Flow * 7.50% $90,000

Year Built / Renovated 1965 / 1990 / 2018

Lot Size .74 Acres

LEASE SUMMARY

Lease Type Double-Net (NN) Lease

Tenant Palm Royal Behavioral Health, LLC

Roof & Structure Landlord Responsible

Lease Commencement Date February 1, 2018

Lease Expiration Date January 31, 2029

Lease Term Remaining 10 Years

Renewal Options None

BASE RENT $90,000

Net Operating Income $90,000

Total Return 7.50% $90,000

* Rent begins 7/1/2019

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TENANT OVERVIEW

Recovery Unplugged is blazing new trails in the treatment of drug and alcohol addiction. A team of world-class doctors, therapists and creative professionals leverage the power of music to help patients heal. A proven and effective recovery resource, the music-based treatment approach has helped patients from all over the country access their confidence, their passion and their voice through the power of writing, producing and recording.

Recovery Unplugged offers inpatient treatment for those with an extended history of prolonged chronic substance abuse; outpatient and intensive outpatient programs for those who can’t remove themselves from their families and careers and partial day programs for clients who need help beyond an outpatient program. In addition to integrating music in rehab, treatment may also include medication assistance and sober housing for clients who need long-term help.

There are currently seven Recovery Unplugged locations throughout the country: Fort Lauderdale, FL (the flagship location); Lake Worth, FL; Austin, TX; Kerrville, TX; Annandale (Northern Virginia), VA; Denver, CO; and Houston, TX. The Lake Worth facility offers a full continuum of care and is the ideal Florida drug rehab destination for those who need a deeper level of care and a longer-term treatment program.

www.recoveryunplugged.com

ROYAL PALM BEHAVIORAL HEALTH

The Royal Palms Behavioral Health Center offers supportive housing for those that need assistance after overcoming addiction or over dose.




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LOCATION OVERVIEWINVESTMENT HIGHLIGHTSLake Worth is a coastal city located in the Miami metropolitan area between West Palm Beach and Fort Lauderdale. The city bills itself as the place “where the tropics begin” due to an abundance of tropical plants found in the city, including mahogany, avocado, and eucalyptus trees. Lake Worth is the geographic and artistic center of Palm Beach County. The downtown area is considered the artistic soul of the city with a historic theater and museum, live music, coffee houses, art galleries, antique malls, retail stores, and restaurants. People are drawn to the city by its independent character, rich culture, historic structures, lively downtown area, and distinctive residential neighborhoods.

The Miami metropolitan area, also known as the Greater Miami Area or the Miami-Fort Lauderdale-West Palm Beach, FL MSA, consists of Miami-Dade, Broward, and Palm Beach counties. The Miami area is a very diverse community with a large population of foreign-born residents, in large part due to its proximity to Latin America and the Caribbean. As such, the region is rich in culture and history and is a popular entertainment and tourist destination.

The city of Miami is also a major commerce and finance center and boasts a strong international business community. Additionally, Miami is home to Miami International Airport and PortMiami, which are among the nation’s busiest ports of entry. The PortMiami is the largest cruise ship port in the world, often called the “Cruise Ship Capital of the World” and the “Cargo Gateway of the Americas,” and Miami International Airport is the busiest airport in Florida and the largest gateway between the United States and Latin America.

• Absolute Triple-Net (NNN) Lease with Recovery Unplugged – 9 Years Remaining

• New 10 Year Lease with Royal Palm Behavioral Health

• Both Properties Recently Underwent Renovations in 2017 & 2018

• 343,020 Residents in Growing Lake Worth Trade Area – Miami MSA

• Down the Road from JFK Medical Center’s Main Campus (486 Beds)

• 1 Mile from Palm Beach State College

• Less Than 2 Miles Off the I-95 Freeway (241,000 CPD) – Direct Access to Miami

• Strong Daytime Population – 277,000+ Employees in 5-Mile Radius

PROPERTY DESCRIPTION

Income 1-Mile 3-Miles 5-Miles

2018 Est. Average Household Income $64,077 $58,857 $65,402

2018 Est. Median Household Income $45,122 $43,187 $47,210

2018 Est. Per Capita Income $20,592 $20,894 $24,687

Population 1-Mile 3-Miles 5-Miles

2023 Projection 9,494 159,209 359,211

2018 Estimate 9,075 152,664 343,020

Growth 2018 - 2023 4.61% 4.29% 4.72%

Households 1-Mile 3-Miles 5-Miles

2023 Projections 3,045 56,495 135,999

2018 Estimate 2,887 53,815 128,496

Growth 2018 - 2023 5.47% 4.98% 5.84%

DEMOGRAPHICS

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PROPERTY PHOTO




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RECOVERY UNPLUGGEDINTERIOR PHOTOS

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Williams-Sonoma

MAP

18 MILESFlorida Atlantic

University

9 MILESWest Palm Beach,

Florida

63 MILESDowntown

Miami

66 MILESMiami

International Airport

SUBJECTPROPERTY

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a care-ful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and finan-cial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed fa-cilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be inter-rupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

Net Leased Disclaimer

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap Real Estate Investment Services of Florida, Inc. (“Marcus & Millichap”) and should not be made available to any other person or entity without the written consent of Marcus & Millichap.

This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Confidentiality Agreement

exclusively listedExclusively listed by:

OFFICES NATIONWIDEwww.marcusmillichap.com

JAMIE MEDRESSExecutive Managing DirectorPHOENIX OFFICETel: (602) 687-6778Fax: (602) [email protected]

ALEX FRANKELAssociate AdvisorPHOENIX OFFICETel: (614) 3360-9061Fax: (614) [email protected]

MARK RUBLESenior Managing DirectorPHOENIX OFFICETel: (602) 687-6766Fax: (602) [email protected]

RYAN NEEBroker of RecordFLORIDA OFFICETel: (954) 245-3400License: BK3154667

Documents

FLORIDA BEHAVIORAL HEALTH PORTFOLIO …...Lauderdale-West Palm Beach, FL MSA, consists of Miami-Dade, Broward, and Palm Beach counties. The Miami area is a very diverse community with