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Single Tenant Investment Available For Sale 1100 W McNab Road, Fort Lauderdale, FL, 33309
Rise Realty Commercial Group
78 SW 7th St, Suite 500
Miami, FL 33130
www.RiseRealty.com
Keith Darby, CCIM
President
(305) 720-7925
2
Table of Contents
Investment Overview Pages 4-11• Investment Summary
• Exterior/Interior Photo(s)
• Site Aerial(s)
• Location Aerial
• Floorplans
• Expanded Aerial
Financial Information Pages 12-17• Tenant Overview
• Proforma
Market Information Pages 18-22• Information on Fort Lauderdale, FL
• Comparable Sales
• Demographics
• Business Employment
Rise Realty Capabilities Pages 23-26• Rise Realty
• How We Work
• Services
This document is being furnished to the recipient exclusively for the recipient’s own use and convenience. It is the responsibility of the recipient to assure itself that the information contained herein is accurate and complete. Any reliance on the contents shall be solely at the recipients own risk. This
document being produced to the recipient without any warranty or representation of any kind or nature, express or implied, as to its content, its suitability for any purpose, its accuracy, veracity or completeness. As a cushion for the potential buyer please consult a CPA or attorney before signing any
agreement to this offer.
Obtain a clearance before signing any document. Rise Realty expressly reserves the right at its sole discretion to reject any or all offers of the property and to terminate discussion with any party at any time with or without notice.
Please review the above information. If you send an offer or have a question, please via email at [email protected]
3Investment Overview
4
Investment Summary
CHILDNET HEADQUARTERS
Property Address 1100 W McNab
Fort Lauderdale, FL
Property Type Class B Office Building (2 Stories)
Parcel Numbers 49-42-09-24-0020
Year Built 1971; Recently renovated in 2015
Zoning B-1-C
Size +/- 82,854 SF on +/- 6.85 AC
Parking +/- 525 Spaces: 6.3/1,000 SF
Occupancy 100%
Rent Commencement December 4, 2014
Lease Term Through 5/31/2025
Security Deposit $228,815.10
Rent $18.05/SF ($1,495,182.90) annually
2.6% increases
Est. NOI $1,163,372.18
Insurance $105,000
Property Taxes $226,810.72
OVERVIEW
This property is an +/- 82,854 SF office building located on +/- 6.85 AC of land at 1100 W
McNab Road, Ft. Lauderdale, Florida, which is currently leased to ChildNet until 5/31/2025.
ChildNet, the tenant, is a Community Based Care lead agency that manages the systems
and services and supports abused, abandoned and neglected children and their caregivers
for Broward and Palm Beach counties. ChildNet has been operating since 2001 and has
received annual budgets in excess of $100M.
The property improvements was constructed in 1971, renovated in 2004, and again in
2015. The main building is composed of +/- 75,354 SF first floor with a +/- 7,500 SF
mezzanine level. There is also a structured parking garage which offers 525 parking
spaces of a ratio of 6.3 spaces per 1,000 SF.
I-95 is located less than 1.5 miles east of the property. Additionally, the Florida Turnpike is
also easily accessible approximately 2 miles to the west.
INVESTMENT HIGHLIGHTS
• Located on McNab Road (+/- 18,500 VPD) just off Powerline Rd (+/- 37,500 VPD) and
within 2 miles of I95
• Great access to public transportation with multiple bus lines and Cypress Creek Tri-Rail
Station
• Hurricane proof glass and power
• Building with structured parking
5
Exterior Photos
6
Exterior Photos Cont.
7
Interior Photos
Generator Room Breakroom Area Reception Area
Server Room Employee Kitchen
Office Area
8
Aerial View
+/- 37,500 VPD
+/- 18,500 VPD
9
Floor Plan
10
Floor Plan
11
Expanded Aerial
Access:
Site to I-95: 1.5 Miles
Site to Turnpike: 2.0 Miles
Site to US1: 4.0 Miles
Site to I-75: 11.4 Miles
Site to I-595: 14.4 Miles
12Financial Information
13
Tenant Overview
ChildNet, the tenant, is a Community Based Care lead agency that manages the systems and services and supports abused, abandoned and neglected children and their
caregivers for Broward and Palm Beach counties. ChildNet has been operating since 2001 and has received annual budgets in excess of $100M.
ChildNet and its network of local providers and partners have significantly improved the quality of care for the most vulnerable children and their caregivers. ChildNet
manages this comprehensive system of care through partnerships, subcontracts and service agreements with local service providers.
14
Data Analysis
Acquisition Price $17,000,000
Plus Acquisition Costs $31,875
Plus Loan Costs $31,875
Minus Mortgages $12,750,000
Equals Initial Investment $4,313,750
Mortgage Data
Amount 1st Mortgage
Interest Rate 5.00%
Amortization Period 25
Loan Term 10
Payments/Year 12
Periodic Payment $74,535.23
Annual Debt Service $894,423
Loan Fees/Costs $31,875
Cost Recovery Data
Improvements Personal Property
Value
C.R. Method SL SL
Useful Life 39.0
In Service Date
Date of Sale
12 Months % Age 2.564%
11.5 Months % Age 2.457%
Basis Data
Acquisition Price $17,000,000
Acquisition Costs $31,875
Total Acquisition Basis $17,031,875
Property Name 1100 W McNab
Road
Location Fort Lauderdale,
FL
Type of Property Class ‘B’ Office
Building
Size of Property (sf/units) 82,854
Purpose of Analysis Single Tenant
Investment
15
Taxable Income and Cash Flow Analysis
Taxable Income
End of Year 1 2 3 4 5 6 7 8 9 10 11
Potential Rental Income $1,495,183 $1,534,058 $1,573,948 $1,614,866 $1,656,852 $1,699,930 $1,744,129 $1,789,476 $1,836,002 $1,883,738 $1,932,716
- Vacancy & Credit Losses
Effective Rental Income $1,495,183 $1,534,053 $1,573,943 $1,614,866 $1,656,852 $1,699,930 $1,744,129 $1,789,476 $1,836,002 $1,883,738 $1,932,716
+ Other Income (collectible)
Gross Operating Income $1,495,183 $1,534,053 $1,573,943 $1,614,866 $1,656,852 $1,699,930 $1,744,129 $1,789,476 $1,836,002 $1,883,738 $1,932,716
Total Operating Income $331,811 $340,438 $349,289 $358,371 $367,688 $377,248 $387,057 $397,120 $407,445 $418,039 $428,908
Net Operating Income $1,163,372 $1,193,620 $1,224,654 $1,256,495 $1,289,164 $1,322,682 $1,357,072 $1,392,356 $1,428,557 $1,465,700 $1,503,808
- Interest-First Mortgage $631,530 $618,080 $603,941 $589,080 $573,458 $557,037 $539,775 $521,631 $502,558 $482,510
- Loan Costs Amortization $3,188 $3,188 $3,188 $3,188 $3,188 $3,188 $3,188 $3,188 $3,188 $3,188
Real Estate Taxable Income $528,655 $572,353 $617,525 $664,228 $712,519 $762,458 $814,109 $867,537 $922,811 $980,003
Tax Liability (Savings) at 30% $158,597 $171,706 $185,258 $199,268 $213,756 $228,737 $244,233 $260,261 $276,843 $294,001
Cash Flow
Net Operating Income $1,163,372 $1,193,620 $1,224,654 $1,256,495 $1,289,164 $1,322,682 $1,357,072 $1,392,356 $1,428,557 $1,465,700
Annual Debt Service $894,423 $894,423 $894,423 $894,423 $894,423 $894,423 $894,423 $894,423 $894,423 $894,423
Cash Flow Before Taxes $268,950 $299,197 $330,231 $362,072 $394,741 $428,259 $462,649 $497,933 $534,134 $571,277
- Tax Liability (Savings) $158,597 $171,706 $185,258 $199,268 $213,756 $228,737 $244,233 $260,261 $276,843 $294,001
Cash Flow After Taxes $110,353 $127,491 $144,974 $162,804 $180,986 $199,522 $218,416 $237,672 $257,291 $277,291
16
Measures of Investment PerformanceEnd of Year 1 2 3 4 5 6 7 8 9 10
Value Using Acquisition Cap Rate $17,442,000 $17,895,000 $18,361,000 $18,838,000 $19,328,000 $19,830,000 $20,346,000 $20,875,000 $21,418,000 $21,975,000
Loan Balance $12,487,107 $12,210,764 $11,920,282 $11,614,939 $11,293,974 $10,956,588 $10,601,940 $10,229,149 $9,837,284 $9,425,371
Loan to Value 71.59% 68.24% 64.92% 61.66% 58.43% 55.25% 52.11% 49.00% 45.93% 42.89%
Debt Service Coverage Ratio 1.30 1.33 1.37 1.40 1.44 1.48 1.52 1.56 1.60 1.64
Return on Asset 6.84% 7.02% 7.20% 7.39% 7.58% 7.78% 7.98% 8.19% 8.40% 8.62%
Before Tax Cash on Cash 6.23% 6.94% 7.66% 8.39% 9.15% 9.93% 10.72% 11.54% 12.38% 13.24%
After Tax Cash on Cash 2.56% 2.96% 3.36% 3.77% 4.20% 4.63% 5.06% 5.51% 5.96% 6.43%
Acquisition Cap Rate 6.84%
Gross Rent Multiplier 11.37
Effective Tax Rate 24.32%
After Tax
EOY $
0 ($4,313,710)
1 $110,353
2 $127,491
3 $144,974
4 $162,804
5 $180,986
6 $199,522
7 $218,416
8 $237,672
9 $257,291
10 $277,276
IRR= 13.06% + $11,515,347
NPV @ 5.00% = $4,178,443
Before Tax
EOY $
0 ($4,313,750)
1 $268,950
2 $299,197
3 $330.231
4 $362,072
5 $394,741
6 $428,259
7 $462,649
8 $497,933
9 $534,134
10 $571,277
IRR= 17.26% + $12,736,219
NPV @ 5.00% = $6,605,554
17
Before Tax IRR
EOY Cash Flows Sale Proceeds
($4,313,750)
+ $12,736,219.40
1 $268,950
2 $299,197
3 $330,231
4 $362,072
5 $394,741
6 $428,259.46
7 $462,649.20
8 $497,933.07
9 $534,134.32
10 $571,276.80
IRR= 17.26%
Year Beginning
Investment
Amount
+
Amount
Earned/Return
On
=
Beginning
Amount Plus
Amount
Earned
-
Amount
Withdrawn/
Cash Flow
=
Ending
Investment
Amount
Return Of
1 $4,313,750 + $744,339 = $5,058,089 - $268,950 = $4,789,139 ($475,389)
2 $4,789,139 + $826,367 = $5,615,507 - $299,197 = $5,316,310 ($527,170)
3 $5,316,310 + $917,331 = $6,233,640 - $330,231 = $5,903,409 ($587,100)
4 $5,903,409 + $1,018,635 = $6,922,044 - $362,072 = $6,559,972 ($656,563)
5 $6,559,972 + $1,131,925 = $7,691,897 - $394,741 = $7,297,156 ($737,184)
6 $7,297,156
+
$1,259,126 = $8,556,282 - $428,259 = $8,128,023 ($830,867)
7 $8,128,023 + $1,402,493 = $9,530,516 - $462,649 = $9,067,866 ($939,844)
8 $9,067,866 + $1,564,663 = $10,632,530 - $497,933 = $10,134,597 ($1,066,730)
9 $10,134,597 + $1,748,728 = $11,883,324 - $534,134 = $11,349,190 ($1,214,593)
10 $11,349,190 + $1,958,306 = $13,307,496 - $13,307,496 = $11,349,190
TOTALS $12,571,914 $16,885,664 $4,313,750
18Market Information
19
Information on Fort Lauderdale, FL
On March 27, 1911, the City of Fort Lauderdale is situated on the southeast
coast of Florida, centrally located between Miami and West Palm Beach.
With a population of 170,000, Fort Lauderdale is the largest Broward
County’s 31 municipalities and the eighth largest city in Florida.
Embraced by the Atlantic Ocean, New River and a myriad of scenic inland
waterways, Fort Lauderdale’s canals and charm have earned its nickname
“The Venice of America”.
Also known as a tourism-based economy, Fort Lauderdale now supports a
range of industries, including marine, finance, insurance, real estate,
manufacturing, high technology, film and television production. The economic
climate is helping the City of Fort Lauderdale to establish its world-class
international business center and one of a kind desirable location for new,
expanding or relocating business.
With a semi-tropical climate Fort Lauderdale offers natural beauty, culture,
entertainment and education amenities.
20
Comparable Sales
Address Name Yr/Blt/Renov Size Sale Price Price/SF % Leased Submarket
150 S Pine Island Rd iBERIABANK 1984/1999 102,007 SF $19,250,000 $188.71 96.0% Plantation
5900 Broken Sound Pky NW Broken Sound Plaza B – Phase II 2001 77,340 SF $11,560,000 $149.47 100% Boca Raton North
350 Jim Moran Blvd 1982/2011 55,356 SF $7,320,000 $132.24 79.5% Pompano Beach
150 S Pine Island Rd 5900 Broken Sound Pky NW 350 Jim Moran Blvd
21
Demographics
Population 1 mile 3 mile 5 mile
2017 Total Population 6,186 124,507 409,191
2022 Population 6670 132,435 434,733
Pop Growth 2017-2022 7.82% 6.37% 6.24%
Average Age 45.80 40.20 41.80
Households 1 mile 3 mile 5 mile
2017 Total Households 3,170 50,806 172,245
HH Growth 2017-2022 7.19% 6.04% 5.97%
Median Household Inc $43,111 $45,397 $46,048
Average Household Size 1,90 2.30 2.30
2017 Average HH Vehicles 1.00 1.00 1.00
Housing 1 mile 3 mile 5 mile
Median Home Value $138,603 $179,414 $181,457
Median Year Built 1977 1974 1974
22
Business Employment
Business Employment By Type # Businesses # Employees # Emp/Bus
Radius 1 Mile 3 Mile 5 Mile 1 Mile 3 Mile 5 Mile 1 Mile 3 Mile 5 Mile
Total Businesses 1,721 10,755 26,610 28,475 116,682 244,305 17 11 9
Retail 154 1,429 3,686 1,783 12,557 32,687 12 9 9
Wholesale 139 598 1,202 2,072 6,136 12,690 15 10 11
Hospitality & Food Service 84 422 1,320 1,544 6,421 19,499 18 15 15
Real Estate, Renting, Leasing 133 620 1,845 998 3,604 11,098 8 6 6
Finance & Insurance 206 779 1,926 1,691 5,965 11,883 8 8 6
Information 55 256 572 5,207 8,564 11,128 95 33 19
Scientific & Technology Services 277 1,319 3,322 2,973 8,975 19,933 11 7 6
Management of Companies 2 12 32 6 34 98 3 3 3
Health Care & Social Assistance 122 1,480 3,784 1,707 17,556 34,857 14 12 9
Education Services 22 168 447 525 4,692 12,989 24 28 29
Public Administration & Sales 9 129 342 183 4,286 8,540 20 33 25
Arts, Entertainment, Recreation 22 137 373 1,125 2,207 3,844 51 16 10
Utilities 0 4 11 0 245 365 0 61 33
Admin Support & Waste Management 127 618 1,442 1,803 8,043 13,921 14 13 10
Construction 135 1,069 2,188 1,793 8,894 18,022 13 8 8
Manufacturing 127 545 1,068 3,568 9,643 14,739 28 18 14
Agriculture, Mining, Fishing 0 13 26 0 142 178 0 11 7
Other Services 107 1,157 3,024 1,497 8,718 17,834 14 8 6
23Rise Realty Overview
24
RISE Realty Commercial Group
Rise Realty is a specialized real estate brokerage and advisory firm located in
South Florida. Its foundation for success is built upon trust, expertise, and first
class service. As such, the team consists of highly trained, distinguished leaders
and experienced professionals who are committed to excellence.
The firm specializes in services such as owner representation, tenant
representation, investment sales and project services for office, industrial and
retail properties. The firm’s professionals leverage the industry’s most advanced
market information and research sources, then combine their experience in
representing clients on both sides of transactions – tenants and
owners/developers – with their ability to provide innovative, practical solutions
and strategic counsel. The team possesses significant knowledge in office and
industrial space selection, property lease-up, land assemblage, building sales,
acquisitions, general development and building construction.
Upon demand from its clients, Rise Realty expanded into a full service firm with
commercial, residential and property management divisions including legal and
financial counsel all available under one trusted roof. Rise Realty stands ready
and well equipped to serve its clients in the local and international marketplace.
R
I
S
E
espect
xcellence
ervice
ntegrity
25
How We Work
As a service provider, Rise Realty first works with its clients in determining
their needs and assessing their objectives. It then uses its experience,
market knowledge and state-of-the-art resources in meeting those needs and
achieving the objectives. The team develops a comprehensive step-by-step
strategic plan to ensure the successful execution of the transaction in a
timely manner.
As an industry leader, Rise Realty offers the most current market research
available and has access to a constant flow of information within its vast
network on market products, trends, and developments. Continual and
comprehensive data collection and assessment are used to assist in the
daily decision-making process. Each client receives information relevant to
their respective requirements so they may make the most informed and
therefore, successful decisions possible.
Rise Realty customizes and creates the optimum blend of services based on
client’s specific real estate requirements with a strategy that guarantees
success in identifying the most efficient space and then negotiates the best
economical terms to ultimately increase the bottom line.
26
Services
Tenant Representation
RISE Realty specializes in providing experienced
representation for business owners and executives
to achieve the lowest cost of occupancy for their
business locations. If your lease is expiring, needs
restructuring or you are considering expansion,
RISE Realty offers a full range of tenant
representation services to meet your requirements.
Owner Representation
Owner representation services from RISE Realty
give landlords and property owners a strategic
partner for marketing, leasing and selling
commercial properties in South Florida. We have
successfully helped our clients maximize the
income and return produced by the properties
represented.
Investment Sales
RISE Realty managing broker Keith Darby is
uniquely qualified to manage commercial real estate
investments as a Certified Commercial Investment
Member (CCIM) among the top 5% in commercial
real estate business. If you are investing in
commercial real estate, speak with a CCIM broker
first to maximize your return on investment.