Offering Memorandum Pompano Beach, Florida€¦ · Pompano Beach, Florida. Offering Memorandum. Enjoy the Wawa Grand Opening Video. Rental Increases Every Five Years - Very Rare In

Pompano Beach, Florida

Offering Memorandum

Enjoy the Wawa Grand Opening Video

Rental Increases Every

Five Years - Very Rare In Wawa Lease

Intersection has a Traffic

Count of More Than 100,000

VPD

Now Open!

https://vimeo.com/246446415

CONFIDENTIALITY AND DISCLAIMER

NON-ENDORSEMENT NOTICE

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 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.

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

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 careful, 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 financial 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 facilities 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 interrupted 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.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

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

NET LEASED DISCLAIMER

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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services© 2017. All rights reserved.

SUBJECT PROPERTY


SUBJECT PROPERTY

2201 West Sample Road, Pompano Beach, Florida 33073


FINANCIAL OVERVIEW

Overview

2201 West Sample Road, Pompano Beach, Florida 33073Price: $6,180,000Cap Rate: 4.45%Rentable Square Feet: 6,119Annual Rent: $275,000Rent/Square Foot: $44.91Land Area: 1.88 AcresYear Built: 2017

Tenant: Wawa Florida, LLCWebsite: www.Wawa.comLease Guarantor: CorporateLease Type: NNN Ground LeaseLease Term: 20 Years

Option Periods: 6, 5-Year OptionsRental Increases: 10% Every 5 YearsRoof & Structure: TenantRent Commencement: 12/7/2017Lease Expiration: 12/31/2037

Lease Summary

Rental Increases Every

Five Years - Very Rare In Wawa Lease Base Term Annual Increase Cap Rate

Years 1-5 $275,000 - 4.45%Years 6-10 $302,500 10% 4.89%Years 11-15 $332,750 10% 5.38%Years 16-20 $366,025 10% 5.92%

Option Periods Annual Increase Cap Rate

Years 21-25 (Option 1) $402,628 10% 6.52%Years 26-30 (Option 2) $442,890 10% 7.17%Years 31-35 (Option 3) $487,179 10% 7.88%Years 36-40 (Option 4) $535,897 10% 8.67%Years 41-45 (Option 5) $589,487 10% 9.54%Years 46-50 (Option 6) $648,436 10% 10.49%

http://www.Wawa.com

INVESTMENT HIGHLIGHTS


Investment Highlights• New, 20-Year, Ground Lease• Six, Five-Year Renewal Options• 10 Percent Rental Increases Every Five Years in Base Term and Option

Periods• Brand New Construction; Now Open!

Location Highlights• Located at the Intersection of Powerline Road and Sample Road, with

a Combined Daily Traffic Count of More Than 100,000 Vehicles• Between Interstate 95, Which has a Daily Traffic Count of More Than

200,000, and Florida Turnpike, with a Daily Traffic Count of More Than 100,000

• Population is More Than 350,000 Within Five Miles of the Property• National Surrounding Retailers Include Costco, CarMax, Home Depot,

Save-a-Lot, Family Dollar, Bank of America, Bank United, CVS, Dunkin’ Donuts, McDonald’s, Burger King and Many More

• One Half Mile from the Festival Flea Market Mall, Which is a Quarter-Mile Long with Over 500 Stores and Restaurants

• Two Miles from Butterfly World - the World’s Largest Butterfly Park, Home to More Than 20,000 Live Butterflies

• Three Miles from Seminole Casino Coconut Creek• Four Miles from Broward College North Campus and Isle Casino

Pompano Park – the #1 Attraction in Pompano Beach by Trip Advisor

Tenant Highlights• Wawa is a Chain of More Than 750 Convenience Retail Stores with

Over 365 Offering Gasoline• Investment Grade Tenant with BBB Credit Rating by Fitch• 2016 Revenue was Approximately $9.68 Billion

TENANT SUMMARY


Tenant: WawaOwnership: Corporate2016 Revenue: $9.68 BillionOwnership: PrivateCredit Ratings: BBBNumber of Locations: 750+Website: www.Wawa.com

Wawa, Inc., a privately held company, began in 1803 as an iron foundry in New Jersey. Today, Wawa is your all day, every day stop for fresh, built-to-order foods, beverages, coffee, fuel services, and surcharge-free ATMs. A chain of more than 750 convenience retail stores (500 offering gasoline), over 100 of those are in Florida. They plan to open 50+ stores per year in 2017 and 2018.

Wawa stores are located in Pennsylvania, New Jersey, Delaware, Maryland, Virginia and Central Florida. The stores offer a large fresh food service selection, including Wawa brands such as built-to-order hoagies, freshly brewed coffee, hot breakfast sandwiches, specialty beverages, and an assortment of soups, sides and snacks. Most stores are open 24 hours a day, 365 days a year.

Wawa’s revenue was approximately $9.68 billion in 2016 and they are the 36th largest privately owned company in the United States. The company has earned a BBB credit rating from Fitch.

Enjoy the Wawa Grand Opening Video

http://www.Wawa.com

https://vimeo.com/246446415

Why Wawa Is 2017 Foodservice Innovator of the YearBy Don Longo - 11/27/2017Wawa Inc., the 756-unit convenience store chain that operates in the Mid-Atlantic states and Florida, earned its second Foodservice Innovator of the Year award in five years, in Convenience Store News’ sixth-annual Foodservice Innovators Awards program, presented in partnership with Tyson Convenience.

“Why Wawa? They have the great MTO (made-to-order) program already,” said one of the experts on CSNews’ Foodservice Advisory Council. “And now, they add mobile ordering. This will be industry changing. And their hand-crafted specialty hot beverage program is the best!”

Foodservice Innovator of the Year winners are chosen by CSNews’ Foodservice Advisory Council, a panel of foodservice experts from the retailer, supplier, wholesaler, research and consulting fields. Winners are recognized for raising the bar on quality, service and innovation in the fast-growing and critically important foodservice category in the convenience channel.

In The News


According to the CSNews Foodservice Advisory Council, Wawa is touching most, if not all, of the bases on the most important menu trends, now and for the foreseeable future at retail. These trends include providing customers with foods and beverages that deliver on consumer health priorities and preferences for healthier foods and beverages.

Consumers define these healthier preferences to include: GMO-free, antibiotic-free, gluten-free, grass-fed beef, organic, natural and unadulterated products, vegetarian items, as well as a clear preference for local sourcing and sustainably sourced products.

The judges specifically cited Wawa’s continuous improvement; enhanced food quality mission to source and provide safe, high-quality and fresh food products; and its launch this year of H4U (healthy-for- you), a compelling offer that delivers on customers’ healthier eating preferences.

Other impressive steps the company has undertaken include:• Established a quality foods program that includes comprehensive operating procedures for its retail business, as well as for all suppliers of Wawa’s food and

beverages;• Created an audit process with specific criteria and guidelines to oversee and provide continuous improvement opportunities for Wawa’s enhanced quality food

and beverage supply chain;• Formed an independent, multi-disciplined oversight expert council in the food, food technology and healthier-for-you food sectors. The stated objective of this

panel is to provide Wawa with ongoing, independent and expert oversight and continuous improvement insights of its overall enhanced quality foods program.• Announced publicly that the retailer will introduce throughout its fresh food program only poultry products that have been raised without antibiotics. Reportedly

upwards of 23 of Wawa’s menu items will be changed to adhere to this new standard.

Wawa previously won the Foodservice Innovator of the Year award in 2013.

https://www.youtube.com/watch?v=9Rn5HDJYz8w

Powerline Road | 45,500 VPD

Sample Road | 59,500 VPD

Coming Soon

SITE PLAN


AERIAL


Burger King

Coming Soon

45,500Daily

Sample Road

Powerline Road

59,500Daily

AERIAL


Sample Road

200,000+Daily

Population is More Than

350,000 Within Five

Miles

100,000+Daily

LOCAL & REGIONAL MAPS


Broward County• Economic drivers include tourism, healthcare,

biotechnology and commerce• As a major point of access to both international

trade and cruise tourism, Port Everglades generates roughly $30 billion of economic activity per year

• The significant population of elderly residents results in healthcare playing a major role in the county’s economy

• Companies headquartered in the area include Citrix Systems, AutoNation and Heico

LOCATION OVERVIEW


Pompano Beach, Florida | Broward CountyPompano Beach is located in Broward County along the coast of the Atlantic Ocean just to the north of Fort Lauderdale. The nearby Hillsboro Inlet forms part of the Atlantic Intracoastal Waterway.

Pompano Beach is currently in the middle of a redevelopment process to revitalize its beachfront and historic downtown. The city has also been listed as one of the top real estate markets, being featured in CNN, Money and the Wall Street Journal as one of the country’s top vacation home markets. Pompano Beach Airpark, located within the city, is the home of the Goodyear Blimp. In recent years, an effort to rejuvenate rundown areas near the city’s beach has gained momentum and has stimulated a multi-billion dollar building boom.

The area is home to several educational institutions including Broward College, Kaplan University, Keiser University, University of Phoenix and Sanford Brown Institute. Four miles north of the Property is Isle Casino Racing Pompano Park, a 100,000-square-foot, smoke-free casino. It was named the #1 attraction in all of Pompano Beach by Trip Advisor.

Broward County has a population of more than 1.9 million people. Broward County’s population continues to grow at a pace well above the U.S. rate. In-migration accounts for a large share of new residents. The county is bordered to the north and south by Palm Beach and Miami-Dade counties, respectively. On the east is the Atlantic Ocean and Big Cypress National Reserve is to the west.


DEMOGRAPHICS

POPULATION 1 MILE 3 MILES 5 MILES2016 Population 4,460 122,753 357,2612021 Population 4,407 127,179 365,9742016 Male Population 2,450 59,923 174,1562016 Female Population 2,010 62,830 183,1042016 Median Age 33.0 40.2 42.4

HOUSEHOLDS 1 MILE 3 MILES 5 MILES2010 Households 4,167 112,912 330,4992016 Households 1,554 48,996 149,7192021 Households 1,523 50,805 153,853

HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES2016 Avg Household Income $49,367 $55,192 $70,6392021 Avg Household Income $57,532 $64,487 $82,0042016 Med Household Income $36,830 $41,138 $48,8192021 Med Household Income $41,359 $47,732 $58,0602016 Per Capita Income $19,049 $22,512 $29,8192021 Per Capita Income $21,738 $26,223 $34,684

Click Here toView in Google Maps

Orlando

MiamiFort Lauderdale

Boca RatonPompano Beach

Jacksonville

Tampa

West Palm Beach

https://www.google.com/maps/dir//2201+W+Sample+Rd,+Pompano+Beach,+FL+33073/@26.275413,-80.1554977,1013m/data=!3m2!1e3!4b1!4m8!4m7!1m0!1m5!1m1!1s0x88d91cd1f0c0d575:0x3899e01a46adcd61!2m2!1d-80.1533037!2d26.2754082

The Wolfe Retail Group of Marcus & Millichap specializes in the sale of single-tenant properties and shopping centers and has successfully assisted clients in selling approximately 400 separate commercial properties with a market value exceeding $1.25 billion. Having closed sales in more than 40 states, our track record is evidence that we are one of the premier brokerage teams in the United States.

With our experience and background in various fields such as law and finance, we have proved to be invaluable to our clients, earning their trust and exceeding their expectations while best assisting them in their real estate transactions.

Marcus & Millichap (NYSE: MMI) has established itself as a leading and expanding investment real estate company with nearly 1,500 brokers in 78 markets throughout the United States and Canada. The foundation of our investment sales is the depth of our local market knowledge. Our 44-year history of maintaining investor relationships in local markets enables us to be the best information source and transaction service provider in North America.

About Marcus & Millichap

The Wolfe Retail Group

has sold approx. 400 properties

in more than 40 states

Barry M. WolfeSenior Managing Director Investments

[email protected](954) 245-3493

Alan LipskyVice President Investments


Evan WhelanAssociate


Catie JacksonMarketing Coordinator


Angelica LinaresTransaction Coordinator


mailto:Evan.Whelan%40marcusmillichap.com?subject=

mailto:Angelica.Linares%40marcusmillichap.com?subject=

Documents

Offering Memorandum Pompano Beach, Florida€¦ · Pompano Beach, Florida. Offering Memorandum. Enjoy the Wawa Grand Opening Video. Rental Increases Every Five Years - Very Rare In