EAST ATLANTIC AVEDELRAY BEACH, FL. 33483310
OFFERING MEMORANDUM
HOWARD BREGMANFirst Vice President InvestmentsDirector National Retail Group
Fort Lauderdale OfficeOffice 954.245.3417Cell 561.213.5554
[email protected] FL SL 3233326
PRESENTED BY
310 E. ATLANTIC AVENUE
DELRAY BEACH, FLORIDA 33483
CONFIDENTIALITY & 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 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. © 2017 Marcus & Millichap. All rights reserved. ACT ID: ZAA0240065
NON-ENDORSEMENT NOTICE
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 ADVISOR FOR MORE DETAILS.
TABLE OF CONTENTS
SECTION 1........................................PROPERTY ANALYSIS
SECTION 2...................................... FINANCIAL ANALYSIS
SECTION 3................................ COMPARABLE PROPERTIES
SECTION 4......................................... MARKET OVERVIEW
DOWNTOWN DELRAY BEACH
PHOTO CREDIT: WWW.DOWNTOWNDELRAYBEACH.COM
DOWNTOWN DELRAY BEACH
PHOTO CREDIT: WWW.DOWNTOWNDELRAYBEACH.COM
PROPERTY ANALYSIS
310 EAST ATLANTIC AVENUE
DELRAY BEACH, FL1
$8,000,000
310 E. ATLANTIC AVENUEDELRAY BEACH, FLORIDA 33483OFFERING HIGHLIGHTS
OFFERING PRICE
VITAL DATA
Price / SF $1,390.00
Gross Square Feet 5,753 SF
Occupancy 100%
Year Built
Number of Buildings
1940
1
Gross Leaseable Area (GLA)
Number of Stories
5,753 SF
1
Lot Size .01428 Acres
Type of Ownership Fee Simple
Number of Units 2
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Marcus and Millichap is pleased to present the Love Family Building at 310 East Atlantic Avenue in the heart of downtown Delray Beach, Florida. Offered for sale for the first time 78 years, the Love Family Building is a 5,753 square foot, two tenant trophy asset building located on the South side of Atlantic Avenue between Southeast 3rd Avenue and Southeast 4th Avenue on the premier block in prime downtown Delray Beach, Florida. Located between Urban Outfitters and Capital One Bank Cafe and one building off the corner of Atlantic Avenue and Southeast 3rd Avenue, immediate surrounding neighbors include a brand-new mixed-use development anchored by IPIC Movie Theaters, Suntrust Bank, Bank Atlantic, Kilwins Famous Chocolates, Cut 432 Steakhouse, Rocco’s Taco’s, Lemon Grass Asian Bistro, Sunglass Hut, Trattoria Romano and much more. The Love Family Building also sits directly in front of the future Delray City Market , a 120,000 square foot, four story mixed use building with a 30,000 square foot food hall with 30 world class food vendors as well as a 200 car, three level parking garage. Additionally, the Love Family Building is located within a short walking distance of Atlantic Crossing, a $300 million dollar mixed used development as well as numerous hotels such as the Aloft (opening 2019), The Seagate Hotel & Spa, Sundy House, Delray Beach Marriott, Hyatt Place Delray Beach, Residence Inn by Marriott… and is approximately half a mile to the Atlantic Ocean and world class beaches. Atlantic Avenue was also voted as one of the ten greatest urban shopping districts in America as published in the USA Today in 2017.
The Love Family Building is currently occupied by two tenants on short term leases that are currently paying less than one-third of the current market rents. The tenants are responsible for any real estate tax increase over the base year 2013 protecting a future owner from a tax escalation. There also may be an opportunity to gain control of the retail space prior to the lease expiration.
The Love Family Building offers an investor the rare opportunity to acquire a trophy asset retail building on the prime retail block of Atlantic Avenue in downtown Delray Beach, FL with tremendous upside.
► First Time on the Market in 78 years
► Prime Atlantic Avenue Location
► Below Market Rents
► Huge Upside
► National Retailer Demand for Vacancy
► 50 Feet of Direct Frontage on Atlantic Avenue
► World Class Shopping Destination
► Surrounded by Tremendous Growth and Development
► Trophy Asset
INVESTMENT OVERVIEW & HIGHLIGHTS
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DOWNTOWN DELRAY BEACH
PHOTO CREDIT: WWW.DOWNTOWNDELRAYBEACH.COM
DOWNTOWN DELRAY BEACH
PHOTO CREDIT: WWW.DOWNTOWNDELRAYBEACH.COM
FINANCIAL ANALYSIS
310 EAST ATLANTIC AVENUE
DELRAY BEACH, FL3
EXPENSES CURRENT PER SF PRO FORMA PER SF
Real Estate Taxes $166,113 $28.87 $166,113 $28.87
Insurance $21,250 $3.69 $21,250 $3.69
CAM
Utilities $1,300 $0.23 $1,300 $0.23
Repairs & Maintenance $2,500 $0.43 $2,500 $0.43
TOTAL CAM $3,800 $0.66 $3,800 $0.66
TOTAL EXPENSES $191,163 $33.23 $191,163 $33.23
EXPENSES PER SF $33.23 $33.23
INCOME CURRENT PER SF PRO FORMA PER SF
Scheduled Base Rental Income $151,429 $26.32 $575,300 $100.00
CAM Recoveries $168,157 $29.23 $191,163 $33.23
Effective Gross Revenue $319,586 $55.55 $766,463 $133.23
Less: Expenses ($191,163) $33.23 ($191,163) $33.23
NET OPERATING INCOME $128,423 $22.32 $575,300 $100.00
RETURNS CURRENT PRO FORMA
CAP Rate 1.61% 7.19%
F INANCIAL SUMMARY
NOTES: Current Real Estate Tax Recoveries are calculated with 2013 as the base year ($20,756).
SUMMARYPRICE $8,000,000
Gross Leaseable Area (GLA) 5,753 SF
Price/SF $1,390
Lot Size 0.1428
Year Built 1940
LOCATION:310 EAST ATLANTIC AVENUEDELRAY BEACH, FL 334833
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UNIT TENANT GLA % OF GLA LEASE COMMENCE LEASE EXPIRE CURRENT RENT/
YEAR CURRENT RENT/SF CHANGES ON CHANGES TO LEASE TYPE
STE A Tootsies 2,268 51.71% 07/01/14 01/31/21 $81,218.00 $35.81 02/01/20 $85,277.00 MG
STE B Kokonuts 2,118 48.29% 07/06/14 06/30/20 $70,211.00 $33.15 06/30/19 $72,309.00 MG
Common Area 1,367 $0.00 $0.00
Total Occupied 4,386 100.00% $151,429.00 $157,586.00
Total 5,753 100.00% $151,429.00 $157,586.00
UNIT TENANT GLA % OF GLA PRO FORMA RENT/YEAR
PRO FORMA RENT/SF LEASE TYPE
STE A Tenant 1 2,952 51.71% $295,200.00 $2,952.00 NNN
STE B Tenant 2 2,801 48.29% $280,100.00 $2,801.00 NNN
Total Occupied 5,753 100.00% $575,300.00
Total 5,753 100.00% $575,300.00
RENT ROLL DETAIL
NOTES: Common area consists of 1,367 SF is store/hallway space in the building
NOTES: Pro Forma rent based at $100 PSF NNN
CURRENT
PRO FORMA
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DOWNTOWN DELRAY BEACH
PHOTO CREDIT: WWW.DOWNTOWNDELRAYBEACH.COM
DOWNTOWN DELRAY BEACH
PHOTO CREDIT: WWW.DOWNTOWNDELRAYBEACH.COM
COMPARABLE PROPERTIES
310 EAST ATLANTIC AVENUE
DELRAY BEACH, FL4
PROPERTY NAME SALES PRICE LOT SIZE PRICE/SF SALE DATE
310 East Atlantic Ave., Delray Beach, FL $8,000,000 0.1428 AC $1,390.00
1 307 East Atlantic Ave., Delray Beach, FL $5,500,000 0.1217 AC $1,338.00 12/2018
SALES COMPARABLES - SUMMARY
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310 EAST ATLANTIC AVE.
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310 EAST ATLANTIC AVENUEDelray Beach, FL 33483
SALES COMPARABLES
SALES PRICE $8,000,000
Price/SF $1,390.58
Gross Leaseable Area (GLA) 5,753 SF
SUBJECT PROPERTY
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307 EAST ATLANTIC AVENUEDelray Beach, FL 33483
SALES PRICE $5,500,000
Price/SF $1,337.55
Gross Leaseable Area (GLA) 4,112 SF
Sale Date December 2018
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PROPERTY NAME UNIT TYPE TOTAL UNITS SQFT RENT/SF LEASE TYPE
310 East Atlantic Ave., Delray Beach, FL Retail 2 5,753 SF $34.00 MG
1 20 W Atlantic Ave., Delray Beach, FL Retail 2 17,925 SF $110.00 NNN
2 700 E Atlantic Ave., Delray Beach, FL Retail 7 21,223 SF $85.00 NNN
3 401 East Atlantic Ave., Delray Beach, FL Retail 1 2,100 SF $100.00 NNN
4 600 East Atlantic Ave., Delray Beach, FL Retail 1 4,000 SF $90.00 NNN
5 630-638 East Atlantic Ave., Delray Beach, FL Retail 1 828 SF $85.00 MG
LEASE COMPARABLES - SUMMARY
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310 EAST ATLANTIC AVE.
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LEASE COMPARABLES
UNIT TYPE SQFT RENT/SQFT
Retail 5,753 SF $34.00/MG
310 EAST ATLANTIC AVENUEDelray Beach, FL 33483
SUBJECT PROPERTY
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700 EAST ATLANTIC AVE.Delray Beach, FL 33483
1 220 WEST ATLANTIC AVE.Delray Beach, FL 33483
UNIT TYPE SQFT RENT/SQFT
Retail 17,925 SF $110.00/NNN
UNIT TYPE SQFT RENT/SQFT
Retail 21,223 SF $85.00/NNN
*New Development
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600 EAST ATLANTIC AVE.Delray Beach, FL 33483
4
UNIT TYPE SQFT RENT/SQFT
Retail 4,000 SF $90.00/NNN
401 EAST ATLANTIC AVE.Delray Beach, FL 33483
3
UNIT TYPE SQFT RENT/SQFT
Retail 2,100 SF $100.00/NNN
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630-638 EAST ATLANTIC AVE.Delray Beach, FL 33483
5
UNIT TYPE SQFT RENT/SQFT
Retail 828 SF $85.00/MG
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DOWNTOWN DELRAY BEACH
PHOTO CREDIT: WWW.DOWNTOWNDELRAYBEACH.COM
DOWNTOWN DELRAY BEACH
PHOTO CREDIT: WWW.DOWNTOWNDELRAYBEACH.COM
MARKET OVERVIEW
310 EAST ATLANTIC AVENUE
DELRAY BEACH, FL5
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P R E S E N T E D B Y
WWW.MARCUSMILLICHAP.COM
HOWARD BREGMANFirst Vice President Investments
Director National Retail GroupFort Lauderdale OfficeOffice 954.245.3417
Cell 561.213.5554 [email protected]
License FL SL 3233326