32
A 90,552 SQUARE FOOT RETAIL PLAZA ON SAMPLE ROAD IN CORAL SPRINGS, FLORIDA Sample Row

Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

  • Upload
    others

  • View
    4

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

A 90,552 SQUARE FOOT RETAIL PLAZA ON SAMPLE ROAD IN CORAL SPRINGS, FLORIDA

Sample Row

Page 2: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

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.

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

CONFIDENTIALITY & DISCLAIMER

Page 3: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local
Page 4: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

E X E C U T I V E S U M M A R Y

Page 5: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

EXECUTIVE SUMMARY

Marcus and Millichap, as exclusive advisor, is pleased to present for sale Sample Row (the “Property”), a 90,552 square foot retail plaza directly on Sample Road in the heart of Coral Springs, Florida. The Property was built in 2001 and consists of three one-story buildings on 4.35 acres and has a total of 283 parking spaces.

In addition to this area's strong demographics, this property is located off Sample Road, which experiences a daily traffic count of nearly 45,000 vehicles per day and is surrounded by many national and local brands. National retailers in the area include Bank of America, Lowes, Walgreens, Publix, Best Buy, CVS, State Farm Insurance, and a Walmart. Also, there are many national restaurant chains in the area such as Burger King, Wendy's, Checkers, Starbucks, and Applebee's.

Other institutions in the area include the Coconut Creek Casino, which is less than two miles from the Property, and the Broward Health Coral Springs Hospital, which is a 200 bed facility and is located only one mile from the Property. The Fort Lauderdale-Hollywood International Airport is a major airline hub, with service by Jet Blue, Southwest, Spirit, Delta, and US Airways, and is located only 30 miles from the Property.

Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local and surrounding community. Several of the interior design tenants draw clientele from miles away while several restaurants and other destination establishments serve the local community. The Property has premium store frontage and sign visibility and is in close proximity to the Sawgrass Expressway and the Florida Turnpike providing excellent access to all of South Florida.

V0240696

Page 6: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

EXECUTIVE SUMMARY

OFFERING SUMMARY

Address 7355-7679 West Sample Road

Coral Springs, Florida 33065

Offering Price $11,000,000

Price per SF $121.48

Year Constructed 2001

Net Rentable Area 90,552 SF

Parcel Size 4.35 Acres

Percent Leased 78.2%

Parking 283 spaces

Ownership Interest Fee Simple

SAMPLE ROW

• Retail/Professional/Medical center offers direct frontage along Sample Road.

• Home to several dominant home goods stores as well as other retail, medical providers and professional tenants including DaVita Dialysis, which is a Fortune 500 company.

• Traffic count of nearly 45,000 car trips per day. Minutes from the main intersection of Downtown Coral Springs.

• Approximate 5 minute drive to Florida's Turnpike and Sawgrass Expressway.

• Centrally located within easy access of upscale single family homes and apartment communities.

V0240696

Page 7: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

EXECUTIVE SUMMARY

Destinations Distance

(miles) Travel Time

University Drive 1 2 mins

Sawgrass Expressway / Florida’s Turnpike 3 5 mins

Interstate 95 6 10 mins

Fort Lauderdale / International Airport 21 30 mins

West Palm Beach / International Airport 38 38 mins

Miami / International Airport 43 44 mins

Sample Row is located directly on the north side of Sample Road, just west of Rock Island Road and approximately one mile east of University Drive in the heart of Coral Springs, Florida.

LOCATION OVERVIEW

Sample Row

The City of Coral Springs, Florida, is well known as one of the most successfully planned suburban communities in the country. Incorporated in 1963, the diversity, character and quality of the City's housing stock is remarkable; and the general attributes of the City, including schools, parks, economic development and fiscal integrity, are enviable.

In 1997, Coral Springs was the first public entity in Florida to win the Governor's Sterling Award for Quality and Performance Excellence. The City has also received Wall Street's highest mark of distinction, earning AAA credit ratings on both its General Obligation Bonds and its Water and Sewer Bond Series.

Year Built 2001

• Dense Retail Corridor with Many National Brands and Local Brands

• A Population of Nearly 280,000 People Within a Five Mile Radius

• Strong Traffic Counts of Nearly 45,000 Vehicles Per Day on Sample Road

• Less Than Two Miles from the Coconut Creek Casino, One Mile From the 200 Bed Broward Health Coral Springs Hospital, as well as Numerous Other National Retail Tenants

Coral Springs is in Broward county, which is the second most populated county in the state and the 18th most populous county in the United States. This city has won numerous accolades for its overall livability, low crime rate, and for being a family friendly community. In 2006, Coral Springs was named the 27th best city in the US by Money Magazine; was named 10th safest city in United States by Morgan Quitno; and was a multiple recipient of America's Promise "100 Best Cities For Young People" award. Within a five mile radius, the subject property has access to a population of nearly 280,000 people and an average household income of almost $81,000.

V0240696

Page 8: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

EXECUTIVE SUMMARY

PROPERTY OVERVIEW

Address 7355-7679 West Sample Road

Coral Springs, Florida 33065

County Broward

Net Rentable Area 90,552 SF

Percent Leased 78.2%

Year Constructed 2001

Land Area 4.35 Acres

Frontage West Sample Road

Parking 283 spaces

SITE AND PARCEL INFORMATION LOCATION Sample Row is located on the north side of Sample Road, just west of Rock Island Road, approximately one mile east of University Drive, and approximately one and a half miles west of Highway 441 in the city of Coral Springs in Broward County, Florida. PARKING & LOADING There are approximately 283 marked parking spaces. All parking areas, drive aisles, and service drives are paved with asphalt and illuminated by pole-mounted lighting fixtures.

FRONTAGE The Property has approximately 1400 feet of frontage along West Sample Road on the south side of the Property. ACCESS Access is provided through three curb cuts from West Sample Road on the south side of the Property. TAX PARCELS

4841-14-17-0010, -0050, -0060, -0070, -0080, -0090, -0100, -0110, -0120, -0130, -0140, -

0150, -0160, -0170, -0180, -0190, -0191, and -0240

V0240696

Page 9: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local
Page 10: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local
Page 11: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local
Page 12: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local
Page 13: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local
Page 14: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

SITE PLAN

Dental Care Assoc

Page 15: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

RETAIL MAP

Page 16: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

AERIAL

Ro

ck Island

Ro

ad

Page 17: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

LOCAL MAP

Sample Row

Page 18: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

F I N A N C I A L S U M M A R Y

Page 19: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

EXECUTIVE SUMMARY

FINANCIAL SUMMARY

Offering Price: $11,000,000

Price/SF: $121.48

Terms: All Cash

Net Rentable Area: 90,552 SF

Parcel Size: 4.35 Acres

Parking Ratio: 283 spaces

Year Built / Renovated: 2001

Occupancy: 78.2%

INCOME

*Current Net Operating Income: $774,252

*Current CAP Rate: 7.04%

*Based on analysis start date of February 1, 2015.

V0240696

Page 20: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

DIRECT CAPITALIZATION AND PROPERTY SUMMARY

1-12 For the Months Total

___________ Potential Gross Revenue Base Rental Revenue $1,242,972 Absorption & Turnover Vacancy (355,920) Base Rent Abatements

___________ Scheduled Base Rental Revenue 887,052

Expense Reimbursement Revenue Real Estate Taxes 146,112 Insurance 46,848 Cleaning 4,632 Landscaping 14,700 Legal & Professional 2,832 Management Fees 41,088 Pest Control 3,372 Repairs & Maintenance 18,900 Utilities 14,700 Waste Removal 27,252 Water & Sewer 18,900

___________ Total Reimbursement Revenue 339,336

___________ Total Potential Gross Revenue 1,226,388 General Vacancy

___________ Effective Gross Revenue 1,226,388

___________ Operating Expenses Real Estate Taxes 206,004 Insurance 63,996 Cleaning 3,600 Landscaping 18,000 Legal & Professional 996 Management Fees 55,740 Pest Control 1,800 Repairs & Maintenance 24,000 Utilities 18,000 Waste Removal 36,000 Water & Sewer 24,000

___________ Total Operating Expenses 452,136

___________ Net Operating Income 774,252

Capitalization Rate 7.04% Capitalized Value $11,000,000

Timing & Inflation Reporting Period: February 1, 2015 to January 31, 2025; 10 years Inflation Month: Analysis Start General Inflation Rate: 3.00%

Property Size & Occupancy Property Size: 90,552 Square Feet Number of rent roll tenants: 31 Total Occupied Area: 70,779 Square Feet, 78.16%, during first month

General Vacancy Method: Percent of Potential Gross Revenue Rate: 7.00%

Property Purchase & Resale Purchase Price: $11,000,000 Resale Method: Capitalize Net Operating Income Cap Rate: 8.00% Cap Year: Year 11 Commission/Closing Cost: $528,594 Net Cash Flow from Sale: $17,091,206

Present Value Discounting Discount Method: Annually (Endpoint on Cash Flow & Resale) Unleveraged Discount Rate: 10.00% Unleveraged Present Value: $12,669,625 at 10.00% Unleveraged Annual IRR: 12.10%

V0240696

Page 21: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

M A R K E T O V E R V I E W

Page 22: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

MARKET OVERVIEW

MARKET HIGHLIGHTS ___________________________________________________________________________________________________________________________

Strong population growth

Fort Lauderdale is continuing to grow, with in-migration accounting for a large share of new residents.

Desirable corporate location

Corporations are attracted to the metro for its proximity to Latin American markets.

Strong Housing affordability

Home prices are more affordable in Fort Lauderdale than in many coastal cities.

GEOGRAPHY

Fort Lauderdale has little room for expansion. The metro is bordered to the north and south by the West Palm Beach and Miami metros, respectively, and the Atlantic Ocean to the east. The Everglades to the west are protected and unavailable for development. The 23 miles of shoreline and 300 miles of inland waterways in the metro provide the means for recreation and transport. Fort Lauderdale enjoys a tropical climate and contains flat terrain.

METRO The Fort Lauderdale metro encompasses all of Broward County and contains 31 municipalities and expands 1,197 square miles, with two-thirds of the area covered by the Everglades. Fort Lauderdale is the largest city in the county followed by Pembroke Pines. Limited land available for new development will slow any significant future growth.

INFRASTRUCTURE Fort Lauderdale is very accessible to motorists, with major north-south thoroughfares including Interstate 95, Interstate 75 and Florida’s Turnpike. Interstate 595 and the Sawgrass Expressway serve as the primary east-west corridors.

Fort Lauderdale/Hollywood International Airport provides nonstop service to cities in the United States, Canada and the Caribbean. The airport is located less than four miles from Port Everglades, one of the busiest cruise ports in the world. In addition, the port is an active cargo and container facility.

The metro is served by the Tri-Rail commuter rail line, which connects Fort Lauderdale with West Palm Beach and Miami. CSX, Florida East Coast and Amtrak are other rail companies.

Broward County Transit runs bus service throughout the county with connections to the Dade and Palm Beach County systems.

Page 23: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

MARKET OVERVIEW

LARGEST CITIES: FORT LAUDERDALE MSA

Fort Lauderdale 171,200

Pembroke Pines 160,700

Hollywood 145,500

Miramar 126,200

Coral Springs 124,700

Pompano Beach 103,700

ECONOMY Tourism is a major part of the Fort Lauderdale economy, and both air traffic and hotel occupancy are recovering from the recession. South Florida received a greater proportion of U.S. travelers over the past few years as visitors shied away from more costly international travel.

Although activity at Port Everglades dipped through the economic downturn, the facility still generates more than $22 billion in waterborne commerce annually. The number of cruise passengers using the port has risen since 2011 as two of the world's largest cruise ships now dock at Port Everglades.

Healthcare is another key driver in the Fort Lauderdale economy. The metro has a significant population of elderly residents and will likely be disproportionately affected by the aging baby boomer generation. Biotechnology research has emerged as a growth industry for the area, and efforts are under way to attract these companies to the county.

Numerous corporations have made Fort Lauderdale their headquarters or regional operations center. The mild climate, reasonable cost of living, and proximity to Miami and Latin America attract diverse companies, including Citrix Systems, AutoNation and Geico.

Airports ■ Fort Lauderdale/Hollywood International Airport ■ Three smaller airports Major Roadways ■ Interstates 75, 95 and 595 ■ Florida’s Turnpike and Sawgrass Expressway Rail ■ Freight - CSX, Florida East Coast ■ Passenger - Amtrak ■ Commuter - Tri-Rail

Port ■ Port Everglades The Fort Lauderdale MSA is: ■ 25 miles from Miami ■ 205 miles from Orlando ■ 250 miles from Tampa ■ 635 miles from Atlanta

Page 24: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

MARKET OVERVIEW

LABOR Fort Lauderdale employment growth will be on pace with the national average over the next five years as the local economy picks up traction. Almost all employment sectors will expand during this time, with the most significant gain anticipated in construction. Currently, trade, transportation and utilities is the largest employment sector in Fort Lauderdale, followed by the professional and business services segment.

The growing number of corporations situating headquarters in the metro has generated an influx of higher-paying business services employment. Though such jobs tend to be mobile in the Internet age, Fort Lauderdale is positioned for expansion in this sector, with plenty of Class A office space available to meet tenants' requirements. Additionally, the area's above-average pay for corporate workers will help residents afford the region's higher cost of living.

The education and health services sector also expanded in recent years. As the population in the metro ages, residents will demand more workers in healthcare. At the same time, educators will likely be needed to a greater degree due to continuing migration to the county.

After slowing during the recession, leisure and hospitality activity has begun to pick up. This sector will add employees at an annual rate of 5.3 percent over the next five years, aided by an increase in cruise ships sailing out of Port Everglades.

EMPLOYERS

Fort Lauderdale has a diverse group of employers and many small enterprises, with the average establishment employing 10 workers. Government accounts for 14 percent of the work force. Large employers include the Broward County School Board, Broward County and the City of Fort Lauderdale, which, combined, support over 40,000 hires.

Another large employer is Memorial Healthcare System, which has more than 10,000 employees. As a percentage of total employment, the education and health services sector in Fort Lauderdale accounts for a slightly smaller share than the national average. Demographic trends will fuel stronger growth in this sector during the coming years.

Motorola and Citrix Systems are major tech employers in Fort Lauderdale, but the metro also houses many smaller high-tech employers that survived the tech downturn and continue to grow. The county is part of the Internet Coast, considered South Florida’s version of the Silicon Valley. The area is being touted as a world-class location for high-tech companies, with its entrepreneurial spirit, pro-business regulatory environment and superior information infrastructure.

Page 25: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

MARKET OVERVIEW

DEMOGRAPHICS Fort Lauderdale had tremendous population growth over the past two decades, increasing nearly 40 percent to over 1.8 million residents. With little land left for development and an aging citizenry, annual population growth will taper off to 0.9 percent over the next five years. Broward County will still attract retirees, as the percentage of people over age 65 will jump above 20 percent by 2017. The area will also become wealthier, as the median household income, currently at less than $51,000 annually, will rise to around $58,000. Part of this uptick is due to an expansion in higher-paying professional jobs that will exceed the addition of lower-paying service jobs catering to the tourism industry.

An increase in education attainment has helped to boost income levels. In Fort Lauderdale, nearly 30 percent of residents have a bachelor’s degree, slightly above the U.S. level of 28 percent. This is attributable to the high percentage of educated residents from outside of the United States who are attracted to job opportunities in the region. Also, Fort Lauderdale has many institutions of higher learning, including Broward College and a satellite campus to the University of Florida.

Even though the median price of a home in Fort Lauderdale has fallen to around $193,000, it remains one of the highest prices among major Florida cities. Currently 55 percent of residents own their homes, below the national average of 56.6 percent.

QUALITY OF LIFE Fort Lauderdale offers one of the most desirable climates in the United States and has a wide variety of recreational opportunities and cultural amenities. The metro boasts 300 days of sunshine annually, and the average winter temperature is 78 degrees. Fort Lauderdale is known as the "Venice of America" for its inland canals. More than 23 miles of beaches are available for sunbathing and water sports. In addition, over 145 marinas along Fort Lauderdale’s inland waterways cater to boating and fishing needs. Spring training baseball is available, and major professional sports are nearby in Miami. There are also more than 40 golf courses nearby.

The county has 16 regional parks as well as nature centers and natural sites comprising more than 6,500 acres in which to experience the outdoors.

The BB&T Center in Sunrise is home to the National Hockey League’s Florida Panthers and hosts numerous other cultural and sporting events. Other attractions include the Museum of Art Fort Lauderdale, the Broward Center for the Performing Arts, Museum of Discovery and Science, Symphony of the Americas, Flamingo Gardens, and the International Swimming Hall of Fame. The metro has many public libraries and parks. Shopping and dining are also abundant in Fort Lauderdale; Sawgrass Mills, one the world’s largest discount outlet malls, is located in Sunrise.

Page 26: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

RETAIL MARKET OVERVIEW

Rise in Tourism and Households Boost Retail Sales

Construction lower than pre-recession levels will enhance the positive effects of a growing economy and expanding payrolls on retail property performance in 2014. The increase in jobs has spurred the formation of new households throughout Broward, particularly in the northwest part of the county. Additionally, tourist activity is rising. In 2013, 13.1 million travelers visited Broward, spending $10 billion in area hotels, restaurants, attractions and stores, an increase from 12 million visitors and $9.8 billion of spending in 2012. With tourism growing and household formation on the upswing, retail sales in the county have surpassed pre-recession levels by 15 percent and will increase another 6 percent this year. As consumer confidence rises and tourism dollars flow into the county, more retailers will target the metro for expansion, generating new space demand. Vacancy in the county has already dropped 190 basis points since the height of the economic downturn and still has room for improvement. As vacancy falls across the county, operators will gain leverage to withdraw concessions and raise rents.

As retail operations improve, competition from buyers eager to establish a foothold in South Florida will heat up. Sales velocity climbed for single-tenant properties over the past 12 months, a trend that will continue this year as investors take advantage of available acquisition financing and purchase properties with low interest rates. Foreign buyers seeking a safe haven in the region will continue to be a significant source of capital and active investor pool. Single-tenant assets will draw considerable attention. Initial yields for newer drugstores and banks trade in the 5.0 percent range, while assets occupied by non-credit tenants typically trade upward of 7.5 percent. Multi-tenant property owners remain hesitant to list as the number of assets to re-deploy proceeds into remains limited. However, the expanded availability of attractively priced acquisition debt, combined with keen bidding, will motivate additional owners interest to test the market this year. Overall, multi-tenant cap rates average in the high-7 percent range, though shopping centers in core locations with multiple credit tenants can trade below 6 percent.

2014 Annual Retail Forecast

Employment: In Broward County, employment will grow 3.1 percent in 2014 with the addition of 23,500 jobs. In 2013, local payrolls increased 2.7 percent.

Construction: Retail completions in 2014 will total approximately 600,000 square feet, down modestly from 2013, when 651,000 square feet was delivered.

Vacancy: During 2014, retail vacancy in Broward County will retreat 60 basis points to 6.7 percent. Last year, vacancy in the market declined 30 basis points.

Rents: Broward County asking rents will rise 3.4 percent in 2014 to an average of $19.76 per square foot, matching the rate of rent growth recorded in 2013.

Page 27: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

RETAIL MARKET OVERVIEW

ECONOMY

• Over the past 12 months, Fort Lauderdale payrolls increased 3.2 percent, or by 23,900 jobs. The latest figure reflects a significant acceleration from the corresponding period last year, when 15,500 positions were created.

• The most significant gains over the past year were recorded in the trade, transportation and utilities sector, where the addition of 7,600 jobs drove payrolls back to the previous cyclical peak in late 2007.

• Corporate relocations and expansions continue to generate tech-related jobs in the county. Prolexic Technologies recently selected Fort Lauderdale for its global headquarters and IT operations center, which will generate 120 positions, while Sunrise Telehealth will add 100 jobs at its Sunrise facility. Microsoft has grown its Fort Lauderdale presence significantly over the past five years, with employment at its Latin American headquarters quadrupling to roughly 400 workers.

• Outlook: In Broward County, employment will grow 3.1 percent in 2014 with the addition of 23,500 jobs. In 2013, local payrolls increased 2.7 percent.

CONSTRUCTION

• During the past 12 months, approximately 433,000 square feet of retail space was delivered in Broward County. In the corresponding period last year, completions totaled roughly 395,000 square feet.

• Roughly half of all space brought online over the year can be found in the Plantation submarket, where Wal-Mart opened a 203,000 square-foot Supercenter last April. More recently, the retailer received approval to build another Supercenter near Broward Boulevard and Interstate 95.

• In 2014, northwest Coral Springs will record an uptick in retail inventory. Homebuilding in the area picked up dramatically, drawing the attention of national chains, such as BJ’s Wholesale and Dick’s Sporting Goods, which both have stores underway in a project previously slated for foreclosure.

• Outlook: Completions will total approximately 640,000 square feet in 2014, down modestly from 2013.

VACANCY

• Broward County vacancy ended the first quarter at 7 percent, down 30 basis points from 12 months earlier. Since peaking in 2009, the vacancy rate has improved nearly 200 basis points, though it remains elevated compared with pre-recession levels of approximately 4 percent.

• The Sawgrass Park submarket softened over the past year but, nonetheless, continued to report the tightest conditions in the metro, with vacancy closing the first quarter at 4 percent.

• The most improvement over the past year occurred in the Plantation area, though vacancy remains above the metro average at 8.6 percent.

• Outlook: During 2014, retail vacancy in Broward County will retreat 60 basis points to 6.7 percent. Last year, vacancy in the market declined 30 basis points.

Page 28: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

RETAIL MARKET OVERVIEW

RENTS

• At the end of first quarter, asking rents for available retail space in Broward County averaged $19.19 per square foot, up 2.4 percent from one year earlier. Rents have steadily ticked up since the second quarter of 2012.

• Despite its double-digit vacancy rate, the Downtown Fort Lauderdale submarket boasts the highest asking rents in the metro, with the average at $27.67 per square foot in the first quarter. Sawgrass Park and Southwest Broward, which both report below-average vacancy, followed with rents at $24.14 and $22.10 per square foot, respectively.

• The Commercial Boulevard and Cypress Creek submarkets form the low end of the rent spectrum in the county. Rents in these submarkets are in the mid- to high-$15 per square foot range.

• Outlook: Broward County asking rents will rise 3.4 percent in 2014 to an average of $19.76 per square foot, matching the rate of rent growth recorded in 2013.

SALES TRENDS

• Sales activity in Fort Lauderdale’s multi-tenant retail sector decreased approximately 7 percent over the past year as listings were limited. During the previous time period, the number of deals increased more than 30 percent as more owners listed assets during the recovery upswing.

• During the most recent 12-month period, the average price rose 16 percent to $220 per square foot.

• Cap rates averaged in the 7 percent range over the past year. Neighborhood and community centers traded at first-year returns in the high-7 percent range, while select strip centers with credit tenants sold in the low-7 percent area.

• Outlook: More investors will target retail properties in inland locations as the county’s housing market gains momentum. Cap rates for properties in such areas can run 50 basis points or more above those in coastal submarkets.

Page 29: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

DEMOGRAPHICS

Radius 1 Mile 3 Mile 5 Mile Population:

2019 Projection 27,826 162,478 395,082 2014 Estimate 25,338 150,191 365,268 2010 Census 22,762 142,532 345,115 Growth 2014-2019 9.82% 8.18% 8.16% Growth 2010-2014 11.32% 5.37% 5.84% 2014 Population Hispanic Origin 6,450 35,149 83,078

2014 Population by Race: White 15,908 109,156 252,074 Black 7,346 30,106 87,727 Am. Indian & Alaskan 70 533 1,277 Asian 1,270 6,913 15,851 Hawaiian & Pacific Island 48 159 346 Other 696 3,324 7,993

Households: 2019 Projection 10,528 62,731 147,237 2014 Estimate 9,554 58,001 135,934 2010 Census 8,473 55,101 128,034 Growth 2014 - 2019 10.19% 8.16% 8.32% Growth 2010 - 2014 5.34% (0.75%) 0.18% Owner Occupied 5,959 40,643 94,235 Renter Occupied 3,595 17,357 41,699

2014 Avg Household Income $66,311 $72,493 $71,713 2014 Med Household Income $49,267 $54,953 $53,711 2014 Households by Household Inc:

<$25,000 1,720 11,647 28,370 $25,000 - $50,000 3,120 15,161 35,835 $50,000 - $75,000 1,749 10,446 25,061 $75,000 - $100,000 1,177 7,224 16,454 $100,000 - $125,000 679 5,541 12,106 $125,000 - $150,000 491 3,185 6,742 $150,000 - $200,000 399 2,698 6,086 $200,000+ 217 2,098 5,280

TRAFFIC COUNTS

Collection Street Cross Street Cross St Dist/Dir Traffic Volume Count Year Dist from Subject Type

W Sample Road Riverside Drive 0.16 W 43,791 2012 0.40 MPSI...

Riverside Drive W Sample Road 0.31 N 22,508 2012 0.68 MPSI...

Riverside Drive W Sample Road 0.08 S 21,645 2012 0.54 MPSI...

Rock Island Rd W Sample Road 0.03 SE 21,559 2012 0.24 MPSI...

Page 30: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local
Page 31: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local
Page 32: Sample Row - LoopNet€¦ · Sample Row is anchored by DaVita Dialysis which is a Fortune 500 company. The Property also includes many other destination retailers that serve the local

PRESENTED BY

O FFE R I N G M EMO R A N DUM

Sample Row

DOUGLAS K. MANDEL MIAMI/FORT LAUDERDALE OFFICES

First Vice President [email protected]

P (954) 245.3465

BARRY M.WOLFE FORT LAUDERDALE OFFICE Vice President Investments

[email protected] P (954) 245-3493

JOHN WATTERS Senior Investment Analyst

[email protected] P (954) 245.3522

GABRIELLE LURIE Transaction Manager

[email protected] P (954) 245.3474