Margate plaza offering materials

Page 1

M A R G AT E , F LO R I D A

PEPPERTREE PLAZA

Peppertree Plaza M A R G AT E , F L

Regional grocery-anchored shopping within a densely populated Ft. Lauderdale retail submarket

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PEPPERTREE PLAZA

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PEPPERTREE PLAZA

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HFF is pleased to exclusively offer for sale Peppertree Plaza--one of Central Broward County’s

DOMINANT COMMUNITY SHOPPING CENTER

premier community shopping centers located–in Margate, Florida. The Property consists

WITH PROVEN TRACK RECORD

of 264,037 square feet, which is currently 88% leased, and features one of the first Winn Dixie transformation stores in the chain along with Office Depot, Sam Ash Music, Dollar Tree, and Bank of America to name a few of the nationally acclaimed tenants in the Center. Peppertree Plaza spans a 34.07 acre contiguous

The Property is a leader in the submarket and has enjoyed occupancy levels in excess of 85% since 2009. The Property’s historically high occupancy is a testament to the success of its well-balanced array of retailers and the quality of these tenants.

parcel along two of Central Broward County’s busiest streets—Sample Road and US-441/

TENANT SUMMARY

SR-7—with excellent visibility and accessibility. The offering presents the opportunity for a new investor to gain a critical mass of high-quality retail leased to strong line-up of tenants in a dense and desirable South Florida location.

Address

PROPERTY SUMMARY 5400-5688 Sample Road Margate, FL 33073

Year Built

1990

Site Size (Acres) GLA (SF) Occupancy

34.7 264,037 88%

In-Place NOI: As of July 1,2014 Anchor Tenants

$2,667,120

Traffic Counts

Winn-Dixie, Sam Ash Music, Office Depot, Golden Corral, Dollar Tree Sample Road 56,000 vpd US Hwy 441 52,500 vpd

Area (SF)

Anchor Tenants

Proportion Rental of Rental % of Revenue—In Revenue— Lease Remaining GLA Place ($) In Place (%) Expiration Options

Winn Dixie

56,000

21.2%

$476,000

16.5%

Jun-30

6x5

Sam Ash Music

25,460

9.6%

$203,680

7.1%

Mar-16

-

Office Depot

25,117

9.5%

$200,936

7.0%

Mar-15

2x5

Golden Corral

12,000

4.5%

$150,000

5.2%

Aug-30

4x5

Dollar Tree

10,000

3.8%

$82,500

2.9%

Oct-15

1x5

39.8% $1,765,585

61.3%

-

-

$0

0.0%

-

-

264,037 100.0% $2,878,701

100.0%

-

-

Leased Shops Available Shops Total

105,201 30,529

11.5%

HIGH VOLUME GROCERY-ANCHOR WITH NATIONALLY PROMINENT ROSTER Peppertree Plaza features one of the first Winn Dixie transformation stores, indicative of the quality of the location and trade area. National tenants comprise 57% of the GLA and 55% of the current income. WINN DIXIE SALES PERFORMANCE Year

Aggregate Sales

Sales PSF

% Increase

2013

$22,613,903

$404

3.5%

2012

$21,845,646

$390

3.0%

2011

$21,205,245

$379

-

PEPPERTREE PLAZA

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PEPPERTREE PLAZA


DENSELY POPULATED AND FAST GROWING RESIDENTIAL MARKET Population density and incomes in excess of 136,865 residents and $65,085, respectively,

DOMINANT CENTRAL BROWARD COUNTY LOCATION WITH PROMINENT EXPOSURE

within three miles substantiates the Property’s dominant long-term position within the

The intersection of US-441 and Sample Road is comprised of over 1.4 million square feet

submarket. The trade area is also the benefit of strong residential growth which is expected

of retail GLA as well as 675,000 square feet of office/industrial space and some of the most

to deliver 9,100 new residents over the next five years.

productive automobile dealerships in the country. Peppertree Plaza benefits from combined traffic counts exceeding 107,000 VPD, multiple points of access including a signalized

DEMOGRAPHICS Description

1-mile Radius

3-mile Radius

5-mile Radius

17,270 15,853 15,287 8.94% 3.70%

148,792 136,865 132,096 8.71% 3.61%

399,534 367,942 355,301 8.59% 3.56%

Population 2018 Projection 2013 Estimate 2010 Census Growth 2014-2019 Growth 2010-2014 Household Income 2013 Estimated Average 2013 Estimated Median

$67,210 $55,482

$65,085 $54,645

intersection, and prominent exposure and visibility along Sample Road and US 441.

BOCA RATON

808

7

827

845

810

$63,701 $53,334

Florida Atlantic University Stadium

DEERFIELD BEACH

869 Arthur R. Marshall Loxahatchee National Wildlife Refuge

Source: Applied Geographic Solutions

W SAMPLE ROAD

CORAL SPRINGS

834

5

95 7

SAWGRASS EXPY

814

SECURE CASH FLOW WITH INHERENT UPSIDE The prospects for secure cash flow are strong with 95% of the gross income generated by

PEPPERTREE PLAZA MARGATE, FL

1

TAMARAC

national operators or tenants with over 13 years of successful operations at Peppertree Plaza.

OAKLAND PARK 869

Moreover, there are inherent opportunities to drastically improve the income by marking

816

SUNRISE 838

below-market leases to market, selling off high traffic outparcels, and leasing the remaining

84 842

PLANTATION

595

27 WESTON

DAVIE

$4,000,000 $3,750,000 $3,500,000 $3,250,000

48%

$3,000,000 $2,750,000

, 4.0%

rowth NOI G

CAGR

FLORIDA’S TURNPIKE

30,259 square feet of available space.

NOI Growth

POMPANO BEACH

MARGATE

FORT LAUDERDALE

Fort Lauderdale Hollywood International Airport

UNENCUMBERED OFFERING Offered free and clear of any existing financing or tenant purchase rights, a new investor can

$2,500,000 $2,250,000

take advantage of historically low interest rates and ample availability in the capital markets

$2,000,000 $1,750,000

to significantly bolster returns through aggressive capitalization structures.

$1,500,000 $1,250,000 $1,000,000

Jun-2015

Jun-2016

Jun-2017

Jun-2018

Jun-2019

Jun-2020

Jun-2021

Jun-2022

Jun-2023

Jun-2024

PEPPERTREE PLAZA

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PEPPERTREE PLAZA


PROPERTY DESCRIPTION LOCATION

ACCESS

Peppertree Plaza is located at the signalized intersection of Sample Road and US 441 in

The Property is located along Sample Road at the southeast corner of the signalized

Margate, Broward County, Florida. US 441 and Sample Road are the major north-south and

intersection at US 441. At the northeast corner of the Property there is a signalized

east-west thoroughfares servicing the local Coral Springs/Margate/Coconut Creek markets and

intersection where Sample Road intersects with NW 54th Avenue. Peppertree Plaza

serve to connect the area with both the Sawgrass Expressway and Florida’s Turnpike. These

features two full points of access along NW 54th avenue, one “right-in, right-out” access

major highways provide access to both the Boca Raton and Fort Lauderdale office markets

point along Sample Road, and an entrance-only access point from northbound US 441.

both of which are located approximately ten miles away to the northeast and southeast, respectively, positioning the area as an ideal community for residents commuting to either.

ZONING The Property is zoned B-2, Community Business District.

ADDRESS YEAR BUILT

5400-5688 Sample Road, Margate, Broward County, Florida, 33073

The property was built in 1990.

SITE SIZE PARKING COUNT

34.07-acres

There are a total of 1,408 surface parking spaces. Given the building’s 264,037 square

GROSS LEASABLE AREA

feet of rentable space, the parking ratio is 5.33 per 1,000 square feet. Parking is provided

264,037 square feet

by asphalt pavement.

FRONTAGE

PHYSICAL OCCUPANCY

The property offers exceptional frontage along both Sample Road (1,500 feet) and US 441

The Property is currently 88% occupied.

(1,100 feet). TRAFFIC COUNTS Vehicles per Day

Sample Road US Hwy 441

56,000 52,500

PEPPERTREE PLAZA

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PEPPERTREE PLAZA


REAL ESTATE TAXES

DESCRIPTION OF IMPROVEMENTS

Property assessments in Florida are based on the January 1st value of a property, with a preliminary assessment notification to the property owner during the summer. Property

Structure:

The Property features concrete block structural frame on a poured concrete slab.

Exterior Finishes:

The exterior walls are composed of painted stucco with commercial grade windows and doors on store fronts.

Sidewalks:

Concrete

Interior Floors:

Typically commercial grade carpet and tile with other variations.

Interior Finishes:

Ceilings are typically drop-down acoustic panels; walls are typically painted drywall with other variations specific to the tenants.

Roof:

The roofs are composed of a flat rubber membrane composition. Winn Dixie roof replaced in 2010 and under warranty.

HVAC:

Roof mounted packaged units

Lighting:

Recessed and drop-down fluorescent and incandescent lighting.

Sprinklers:

100% fire sprinklered.

owners may appeal the preliminary assessment at that time. Final tax notices are forwarded to property owners during October and are payable by March 31st of the following year. A discount is available for early tax payment, with a maximum of 4.0% in November. Below is a summary of the 2013 real estate tax and assessment. 2013 REAL PROPERTY ASSESSMENT AND TAXES Ad Valorem Taxes Assessment ($) Millage Taxes ($)

1

Non-Ad Valorem Total Taxes ($) Taxes $)

Parcel

Folio

Main Parcel

484219240010

29,580,120 23.5960

670,054

Dunkin Donuts

484219240012

886,200 23.5960

20,074

572

20,647

Bank of America 484219240013

1,199,870 23.5960

27,180

1,035

28,215

57,516 727,569

Mattress Firm

484219240014

720,840 23.5960

16,329

960

17,289

Retention Pond

484219010056

7,270 23.5960

165

0

165

Retention Pond

484219010081

32,180 23.5960

729

0

729

Retention Pond

484219010082

27,180 23.5960

616

0

616

32,453,660 23.5960

735,145

Total Property Taxes 1

60,083 795,228

Real estate taxes shown above reflect 4% discount for early payment.

UTILITIES AND SERVICES Domestic Water:

City of Margate

Sanitary Sewer:

City of Margate

Electricity:

Florida Power and Light

Telephone: AT&T

PEPPERTREE PLAZA

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PEPPERTREE P Suite

SAMPLE ROAD - 56,000 VPD

88 86

Y

81 85 77 82

84

71

69

61

59

State Road 7 (US 441) - 52,500 VPD

93

55 54

49

48 46 40 39 38 37 36

26 23 24 25

US441 Off Ramp

10

12

68 67 66

62 63 64 65

83 80 78 76 71A

PEPPERTREE PLAZA

12 13 14 16

30 31 32 27

33

34

41

44 42

W (N D A RO TER E M I PER

17 5 4

OCCUPIED

1

AVAILABLE

) UE N VE HA T 54

1 4 5 10 12 13 14 16 17 23 24 25 26 27 30 31 32 33 34 36 37 38 39 40 41 42 44 46 48 49 54 55 59 61 62 63 64 65 66 67 68 69 71 71A 76 77 78 80 81 82 83 84 85 86 88 93 Y TOTAL

Tenant Name

T

Paladium Available Available ACE Educational Available Lovely Nails Gordo's Grill La Pizzeria Winn-Dixie Stylewear 4 Less Classic Salon & Spa The Acupuncturists Lucky City Dollar Tree Gold Reef Goldbuye Available Peppertree Bagel & All Cellular S FL Cato Fashions RadioShack Time-Out Team Male Image Barber Vogue Opticians Logica Regional Acceptanc Available Available Available Available Sam Ash Music Pad Thai Restauran Available Physicians Weight L Broward Health Plaza Podiatry Available Red Wing Shoes Precious Moments Je Available Available Cinema Sound La Bamba Office Depot Elegant Beauty Sup H&R Block Available Crescent Dental Hair on Fire Firehouse Subs Leone Dental (exp. 9 One Price Cleaners Bank of America Available Dunkin Donuts Mattress Firm Golden Corral Century 21


PEPPERTREE PLAZA - RENT ROLL BASE RENT Suite Tenant Name

1

Paladium

4 Available 5 Available 10 ACE Educational

12 Available 13 Lovely Nails II

SF

7,225

Lease Start

Lease End

Dec-99

Feb-20

Date

$/SF

Current Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

16.00 17.00 18.00 19.00 20.00 21.00

Current Rent/Yr

115,600

EXPENSE RECOVERIES Proportionate Method Share

None

2.7%

RECAPTURE: LL may recapture the premises upon 12 months notice in order to redevelop the center. RADIUS RESTRICTION: 3 miles. 1,300 0.5% 3,800 1.4% 9,100 May-98 Mar-18 Current 9.50 86,450 ACE 3.4%

Options/ Terms

UPON EXPIRATION Assigned Expiration MLA Assumption

-

Shops $12.00

Market

-

Shops $12.00 Shops $12.00 Shops $12.00

Market Market Market

COTENANCY: Minimum rent abates by 15% if Winn-Dixie's space is less than 85% occupied. After 12 months, T must either terminate or pay full minimum rent. RECAPTURE: LL may recapture the premises upon 12 months notice in order to redevelop the center. EXCLUSIVE: No tenant may use more than 1,000 SF for the sale or display of educational supplies. Not meant to restrict any store > 10,000 SF; a full line toy store; computer or electronic store; full line book store; stationery or office supply store. RADIUS RESTRICTION: 3 miles RELOCATION: T will relocate upon 45 days notice but may terminate in lieu of relocating. 1,550 0.6% Shops $18.00 Market 1,681 Jun-98 Sep-17 Current 18.03 30,308 CAM/INS + 15% 0.6% Shops $18.00 Market Oct-14 +3% annually MGT FEE 4% of Base Rent RECAPTURE: LL may recapture the premises upon 12 months notice in order to redevelop the center. EXCLUSIVE: Full service nail salon <10,000 SF GUARANTY: Tony V. Nguyen and Huong T. Nguyen-Dang RADIUS RESTRICTION: 3 miles. MERCHANTS ASSOCIATION: T will participate if more than 50% of tenants are members. RELOCATION: T will relocate upon 45 days notice.

PEPPERTREE PLAZA

13


PEPPERTREE PLAZA - RENT ROLL BASE RENT Suite Tenant Name

14

Gordo's Grill

SF

2,250

Lease Start

Lease End

Date

$/SF

Current Rent/Yr

Apr-12

Aug-17

Current

16.48

37,080

Sep-14

+3% annually

Option 1 Sep-17 Sep-18

18.55

EXPENSE RECOVERIES Proportionate Method Share

0.9%

Options/ Terms

UPON EXPIRATION Assigned Expiration MLA Assumption

1x5

Shops $18.00

Option

1.6%

-

Shops $18.00

Market

21.2%

6x5

NA

Options

Gordo/Stylewear MGT FEE 4% of Base Rent

+3% annually

GUARANTY: Alfredo Murguia Bull, Elsa Silva De Murguia and Aldo Murguia RECAPTURE: LL may recapture the premises upon 12 months notice in order to redevelop the center. 16

La Pizzeria

4,151

Oct-13

Sep-24

Current Oct-14

17.00

70,567

+4% annually

CAM/INS + 15% #1 MGT FEE 4% of Base Rent

GUARANTY: Enrico Barone EXCLUSIVE: Pizza pick-up delivery or full service Italian restaurant < 10,000 SF. RADIUS RESTRICTION: 3 miles. MERCHANTS ASSOCIATION: T will participate if more than 50% of tenants are members. RELOCATION: T will relocate to specific premises upon 45 days notice. 17

Winn Dixie

56,000 Sep-09

Jun-30

Current

8.50

Jul-20

10.50

Option 1

Jul-30

12.50

Option 2

Jul-35

13.50

Option 3

Jul-40

14.50

Option 4

Jul-45

15.50

Option 5

Jul-50

16.50

Option 6

Jul-55

17.50

476,000

Winn Dixie

GUARANTY: Winn-Dixie Stores, Inc. PERCENTAGE RENT: 1.5% of sales. Breakpoint is calculated as $3 million higher than a natural 1.5% breakpoint. EXCLUSIVE: (1) Operation of supermarket, grocery, bakery, florist and/or delicatessen; (2) sale of groceries, meat, seafood, produce, deli, bakery, dairy products, cleaning products and frozen foods; (3) operation of a pharmacy; (4) sale of beer, wine and liquor for off-premises consumption. A deli restaurant may sell deli and bakery items as an incidental use. PROHIBITED USE: Parking-intensive use, recreational use, dry cleaning plant. No office use within 250'. Theater or health club use is restricted to suites 46-55 or 68-82. PARKING: LL must provide 1,408 parking spaces. CONTINUOUS OPERATION: Not required. LL has the ongoing right of recapture after 120 days.

14

PEPPERTREE PLAZA


PEPPERTREE PLAZA - RENT ROLL BASE RENT Lease Suite Tenant Name

23

24

Stylewear 4 Less

Classic Salon & Spa

SF

1,700

2,125

Lease

Current

Start

End

Date

$/SF

Rent/Yr

Jul-12

Oct-15

Current

18.72

31,824

Nov-14

19.47

The Acupuncturists

2,550

26

Lucky City

2,125

Options/

Method

Share

Gordo/Stylewear MGT FEE 4% of Base Rent

0.6%

Assigned

Expiration

Terms

MLA

Assumption

-

Shops $18.00

Market

0.8%

-

Shops $18.00

Market

1x5

Shops $18.00

Option

-

Shops $18.00

Market

+3% annually

RECAPTURE: LL may terminate upon 12 months notice in order to redevelop the center. RADIUS RESTRICTION: 3 miles. MERCHANTS ASSOCIATION: T will participate if more than 50% of tenants are members. EXCLUSIVE: Hair salon excludes anchors, discount hair salons, barber shops and existing tenants. RELOCATION: T will relocate upon 45 days notice. Jan-11 May-16 Current 14.50 36,975 Hair/Acupuncturists 1.0%

Option 1

UPON EXPIRATION

Proportionate

RECAPTURE: LL may terminate upon 12 months notice in order to redevelop the center. RELOCATION: T will relocate upon 15 days notice. GUARANTY: Giovanni Chaverri, Moises Garcia, Yvonne Garcia Sep-93 Aug-18 Current 18.50 39,313 CAM/INS + 15% #1 Sep-14

25

EXPENSE RECOVERIES

Jun-15

15.00

Jun-16 Jun-17 Jun-18 Jun-19 Jun-20

15.50 16.00 16.50 17.00 17.50

EXCLUSIVE: No tenant < 10,000 SF may operate a chiropractic, physical therapy or acupuncture office. RADIUS RESTRICTION: 3 miles. RELOCATION: T will relocate upon 15 days notice. RECAPTURE: LL may recapture the premises upon 12 months notice in order to redevelop the center. Jan-05 Oct-17 Current 15.00 31,875 Lucky City 0.8% Nov-14 15.50 MGT FEE 4% of Base Rent Nov-15 16.00 Nov-16 16.50 RECAPTURE: LL may recapture the premises upon 12 months notice in order to redevelop the center. GUARANTY: Megnauth Debah RADIUS RESTRICTION: 3 miles.

PEPPERTREE PLAZA

15


PEPPERTREE PLAZA - RENT ROLL BASE RENT Lease Suite Tenant Name

27

Dollar Tree

SF

10,000

Lease

EXPENSE RECOVERIES Current

UPON EXPIRATION

Proportionate

Options/

Assigned

Expiration

Start

End

Date

$/SF

Rent/Yr

Method

Share

Terms

MLA

Assumption

Oct-97

Oct-15

Current

8.25

82,500

Dollar Tree

3.8%

1x5

Shops $12.00

Option

Option

Nov-15

9.00

Shops $18.00

Market

EXCLUSIVE: Operation of a single price point (< $5.00) variety store. RELOCATION: T will relocate upon 45 days notice, but not between October 1 and December 31. MERCHANTS ASSOCIATION: T will participate if more than 80% of tenants are members. 30

Gold Reef Goldbuyers

1,700

Jan-12

Apr-15

Current

15.00

25,500

Gold Reef

0.6%

-

MGT FEE 4% of Base Rent RECAPTURE: LL may recapture the premises upon 12 months notice in order to redevelop the center. GUARANTY: Jonathan and Georgina Getz

31

Available

1,275

32

Peppertree Bagel & Deli

2,125

Oct-92

Jan-18

Current

16.00

34,000

Peppertree Bagel

0.5%

Shops $18.00

0.8%

Shops $18.00

MGT FEE 4% of Base Rent RECAPTURE: LL may recapture the premises upon 12 months notice in order to redevelop the center. GUARANTY: Chau Nader and Thomas Nader MERCHANTS' ASSOCIATION: T will participate. PROMOTION: T will contribute to any Promotion Fund. EXCLUSIVE: Bagel restaurant.

16

PEPPERTREE PLAZA

Market


PEPPERTREE PLAZA - RENT ROLL BASE RENT Lease Suite Tenant Name

33

All Cellular S FL, LLC

SF

1,050

Lease

EXPENSE RECOVERIES

Current

UPON EXPIRATION

Proportionate

Options/ Terms

Start

End

Date

$/SF

Rent/Yr

Method

Share

Jul-13

Jun-18

Current

17.16

18,018

0.4%

Jul-15

17.85

CAM/INS + 15% #1 MGT Fee 4% of Base Rent

Jul-16

18.56

Jul-17

19.30

57,408

CATO

1.7%

Assigned

Expiration

MLA

Assumption

Shops $18.00

Market

Shops $16.00

Option

GUARANTY: Mohammed Ali 34

Cato

4,416

Dec-00

Jan-16

Current

13.00

Option

Feb-16

14.00

1x5

CONTINUOUS OPERATION: Not required. LL has the ongoing right of recapture after 90 days. PROHIBITED USE: No pet shop or game room in adjacent premises. No parking-intensive use within 50' of Premises.

36

Radio Shack

1,750

COTENANCY: T pays 3% of sales in lieu of minimum rent if Winn-Dixie or Office Depot vacates. After 12 months, T must either terminate or pay full minimum rent. EXCLUSIVE: National/regional women's popular-priced apparel chain store < 15,000 SF. Not meant to restrict any single price point ladies' apparel store; shoe store; or the sale of used clothing. Jan-98 Feb-17 Current 15.00 26,250 Radio Shack 0.7% Shops $18.00 Market PROHIBITED USE: No pet store, hair salon, beauty salon or restaurant in adjacent premises.

37

Time-Out Team

1,050

COTENANCY: T may terminate if (1) shopping center occupancy <60% or (2) any anchor > 36,605 SF goes dark and either scenario remains uncured for 9 months. Apr-01 Feb-16 Current 14.85 15,593 CAM/INS + 15% #2 0.4% Shops $18.00 Renewal Pending Mar-14 15.30 Mar-15

15.76

RENEWAL: Pending two year renewal at $15.30 PSF with 3% increase in year two. RECAPTURE: LL may recapture the premises upon 12 months notice in order to redevelop the center. EXCLUSIVE: Retail sale of sportswear with college and/or professional sports team logos. GUARANTY: Richard A. Hoffman RADIUS RESTRICTION: 3 miles. RELOCATION: T will relocate upon 45 days notice.

PEPPERTREE PLAZA

17


PEPPERTREE PLAZA - RENT ROLL BASE RENT Lease Suite Tenant Name

38

Male Image Barber Shop

SF

1,050

Lease

EXPENSE RECOVERIES

Current

UPON EXPIRATION

Proportionate

Options/

Assigned

Expiration

Start

End

Date

$/SF

Rent/Yr

Method

Share

Terms

MLA

Assumption

Jul-02

Dec-15

Current

21.22

22,281

Male Image

0.4%

-

Shop $18.00

Market

Jan-15

21.85

-

Shops $18.00

Renewal Pending

-

Shops $18.00

Market

1x3

Shops $14.00

Option

MGT FEE 4% of Base Rent

growing 4% annually RECAPTURE: LL may recapture the premises upon 12 months notice in order to redevelop the center. RADIUS RESTRICTION: 3 miles. MERCHANTS ASSOCIATION: T will participate if more than 50% of tenants are members. RELOCATION: T will relocate upon 45 days notice. 39

Vogue Opticians

1,050

Nov-88

Aug-19

Current Sep-14

20.09 21.00

21,095

CAM/INS + 15% #1 MGT FEE 4% of Base Rent

0.4%

RENEWAL: Pending five year renewal at $21 PSF plus 4% annual increases RECAPTURE: LL may recapture the premises upon 12 months notice in order to redevelop the center. GUARANTY: Michael Homanick RADIUS RESTRICTION: 3 miles. EXCLUSIVE: Principal business optician or optometrists. MERCHANTS ASSOCIATION: T will participate if more than 50% of tenants are members. 40

Logica

700

Aug-10

Oct-16

Current

15.00

Nov-15

15.50

10,500

CAM/INS + 15% #2 MGT FEE 4% of Base Rent

0.3%

RELOCATION: T will relocate upon 15 days notice. RECAPTURE: LL may recapture the premises upon 12 months notice in order to redevelop the center. 41

Regional Acceptance

2,458

Jan-00

Mar-15

Current

13.93

Option 1

Apr-15

14.35

Apr-16

14.78

Apr-17

15.22

34,240

CAM/INS + 15% #2

0.9%

RECAPTURE: LL may recapture the premises upon 12 months notice in order to redevelop the center. RADIUS RESTRICTION: 3 miles. MERCHANTS ASSOCIATION: T will participate if more than 50% of tenants are members. RELOCATION: T will relocate upon 45 days notice.

18

PEPPERTREE PLAZA


PEPPERTREE PLAZA - RENT ROLL BASE RENT Suite Tenant Name

SF

Lease

Lease

Start

End

EXPENSE RECOVERIES Current

Date

$/SF

Rent/Yr

UPON EXPIRATION

Proportionate

Options/

Share

Terms

Method

Assigned

Expiration

MLA

Assumption

42

Available

2,993

1.1%

Shops $12.00

44

Available

4,044

1.5%

Shops $12.00

46

Available

4,000

1.5%

Shops $12.00

48

Available

5,022

1.9%

Shops $12.00

49

Sam Ash Music

25,460

Jan-96

Mar-16

Current

8.00

203,680

Sam Ash

9.6%

-

Anchor $10.00

Market

GUARANTY: Sam Ash Music Corporation EXCLUSIVE: Sale of musical instruments RADIUS RESTRICTION: 3 miles. MERCHANTS ASSOCIATION: T will participate if more than 50% of tenants are members. Dues may not exceed $0.10 PSF. COTENANCY: T may terminate if more than 40% of the shopping center GLA is dark for 9 months. 54

Pad Thai Restaurant

1,700

Sep-93

Aug-23

Current

25.00

Sep-14

25.50

Sep-15

26.00

Sep-16

26.50

Sep-17

27.00

Sep-18

27.50

Sep-19

28.00

Sep-20

28.50

Sep-21

29.00

Sep-22

29.50

42,500

CAM/INS + 15% #1

0.6%

-

Shops $21.00

Market

GUARANTY: Nophos Lertworasiri, Duangrudee Lertworasiri, Sutthiphong Lertworasisi and Kamphon Lertworasiri RECAPTURE: LL may recapture the premises upon 12 months notice in order to redevelop the center. RADIUS RESTRICTION: 3 miles. MERCHANTS ASSOCIATION: T will participate if more than 50% of tenants are members. RELOCATION: T will relocate upon 45 days notice. EXCLUSIVE: Thai restaurant PROMOTION FUND: T will participate.

PEPPERTREE PLAZA

19


PEPPERTREE PLAZA - RENT ROLL BASE RENT Lease Suite Tenant Name

55

59

Pending LOI

Physicians Weight Loss

SF

2,125

1,500

Lease

EXPENSE RECOVERIES Current

UPON EXPIRATION

Proportionate

Options/

Assigned

Expiration

Start

End

Date

$/SF

Rent/Yr

Method

Share

Terms

MLA

Assumption

Jul-14

Jun-24

Current

21.00

44,625

CAM/INS + 15% #1

0.8%

-

Shops $21.00

Market

Jul-16

21.63

MGT FEE 4% of Base Rent

Current

16.50

growing 3% annually therafter 24,750

0.6%

-

Shops $18.00

Nov-14

19.00

Renewal Pending

1.2%

-

Shops $18.00

Market

Jan-00

Oct-19

CAM/INS + 15%

growing 4% annually RENEWAL: Pending five year renewal at $19 PSF plus 4% annual increases. GUARANTY: David J. Cortes EXCLUSIVE: Weight loss clinic for any space smaller than 10,000 SF. RADIUS RESTRICTION: 3 miles. MERCHANTS ASSOCIATION: T will participate if more than 50% of tenants are members. HVAC: T's obligation for HVAC repair and replacement is limited to $500 per occurrence.

61

Broward Health

3,100

Sep-95

Aug-16

Current

26.00

Sep-14

26.78

Sep-15

27.58

80,600

None

EXCLUSIVE: No tenant <10,000 SF may operate a walk-in, family medicine, general medicine and/or minor emergency clinic. RELOCATION: T may terminate in lieu of relocating. GUARANTY: Neena R. Gupton RADIUS RESTRICTION: 3 miles. MERCHANTS ASSOCIATION: T will participate if more than 50% of tenants are members. 62

Plaza Podiatry

1,275

Aug-13

Jul-15 Option 1

Current Aug-15

21.10

26,903

22.00

CAM/INS +15% #1

0.5%

MGT FEE 4% of Base Rent

GUARANTY: Lauren R. Zipes and Jonathan M. Koskovits. Expires at end of original term. RELOCATION: T will relocate upon 15 days notice. ASSIGN/SUBLET: LL may recapture premises in lieu of granting consent. RECAPTURE: LL may recapture the premises upon 12 months notice in order to redevelop the center.

20

PEPPERTREE PLAZA

1x2

Shops $18.00

Option


PEPPERTREE PLAZA - RENT ROLL BASE RENT Suite Tenant Name

SF

63

Available

1,275

64

Red Wing Shoes

1,410

Lease

Lease

Start

End

EXPENSE RECOVERIES Current

Date

$/SF

Rent/Yr

UPON EXPIRATION

Proportionate

Options/

Share

Terms

Method

0.5% Jun-06

Jul-16

Current

18.50

Aug-14

19.00

Aug-15

19.50

26,085

CAM/INS + 15% #2

0.5%

Assigned

Expiration

MLA

Assumption

Shops $18.00 -

Shops $18.00

Market

1x10

Shops $18.00

Option

MGT FEE 4% of Base Rent

RELOCATION: T will relocate upon 45 days notice but may terminate in lieu of relocating. RECAPTURE: LL may recapture the premises upon 12 months notice in order to redevelop the center. GUARANTY: Michael Coonerty and Daniel Campman RADIUS RESTRICTION: 3 miles. MERCHANTS ASSOCIATION: T will participate if more than 50% of tenants are members. 65

Precious Moments Jewelers

2,000

Apr-91

Aug-16

Option 1

Current

22.50

Sep-14

23.63

Sep-15

24.81

Sep-16

26.05

Sep-17

45,000

Precious Moments

0.8%

MGT FEE 4% of Base Rent

+5% annually

RECAPTURE: LL may recapture premises upon 18 months notice in order to redevelop the center. HVAC: T's obligation for HVAC repair/replacement is limited to $500 per occurrence. PROMOTION: T will contribute to any Promotion Fund. RADIUS RESTRICTION: 3 miles. SALES: Reports monthly. MERCHANTS ASSOCIATION: T will participate. EXCLUSIVE: No tenant < 3,500 SF may sell jewelry at retail. 66

Available

3,750

1.4%

Shops $18.00

67

Available

1,250

0.5%

Shops $18.00

PEPPERTREE PLAZA

21


PEPPERTREE PLAZA - RENT ROLL BASE RENT Lease Suite Tenant Name

68

Cinema Sound

SF

2,757

Lease

EXPENSE RECOVERIES Current

UPON EXPIRATION

Proportionate

Options/

Assigned

Expiration

Start

End

Date

$/SF

Rent/Yr

Method

Share

Terms

MLA

Assumption

Dec-10

May-16

Current

13.00

35,841

CAM/INS + 15% #2

1.0%

1x5

Shops $18.00

Option

Jun-15

14.00

Jun-16

14.42

-

Shops $18.00

Market

2x5

Anchor $10.00

Option

Option

Jun-17

MGT FEE 4% of Base Rent

+3% annually

GUARANTY: Philip E. Henann RADIUS RESTRICTION: 3 miles MERCHANTS ASSOCIATION: T will participate if more than 50% of tenants are members. RELOCATION: T will relocate upon 45 days notice. RECAPTURE: LL may recapture premises upon 12 months notice in order to redevelop the center. 69

La Bamba

5,453

Jan-95

Sep-17

Current Oct-14

22.78

124,219

La Bamba

2.1%

+4% annually

RECAPTURE: LL may recapture premises upon 12 months notice in order to redevelop the center. RADIUS RESTRICTION: 3 miles. MERCHANTS ASSOCIATION: T will participate if more than 50% of tenants are members. RELOCATION: T will relocate upon 45 days notice. 71

Office Depot

25,117

Nov-89

Mar-15

Current

8.00

Option 1

Apr-15

8.50

Option 2

Apr-20

10.00

200,936

Office Depot

9.5%

COTENANCY: If <60% of GLA is open for retail use or <70% of GLA is open for any use for more than 180 days, T may terminate. CONTINUOUS OPERATION: Not required. LL has the one-time right of recapture. PARKING: LL must provide 4.5 parking spaces per 1,000 SF of GLA. EXCLUSIVE: No other tenant may use more than 1,000 SF for the sale, leasing, distribution or display of office supplies, furniture, fixtures, machines and equipment; computers, hardware, software and accessories; art supplies; architectural supplies; enginering supplies; photocopying services; facsimile services; or instant print shop services. Applies to any property under LL's control within 500' of shopping center. PROHIBITED USES: Parking-intensive, non-retail use, hazardous use. No restaurant or office use within 200' of premises.

22

PEPPERTREE PLAZA


PEPPERTREE PLAZA - RENT ROLL BASE RENT Lease Suite Tenant Name

71A

Elegant Beauty Supplies

SF

4,883

EXPENSE RECOVERIES

Lease

Current

UPON EXPIRATION

Proportionate

Options/

Assigned

Expiration

Start

End

Date

$/SF

Rent/Yr

Method

Share

Terms

MLA

Assumption

Jul-14

Jun-24

Current

11.75

57,375

CAM/INS + 15% #1

1.8%

2x5

Shops $12.00

Option

Jul-16

12.10

Jul-17

+3% annually

0.4%

-

Shops $16.00

Market

Shops $16.00

Option

(Projected)

Option 1

Option 2

Jul-24

15.33

Jul-25

+3% annually

Jul-29

17.77

Jul-30

+3% annually

EXCLUSIVE: Sale of beauty supplies, hair extensions and hair pieces < 10,000 SF. GUARANTY: Emile Farah and Meredith Housman 76

H&R Block

1,000

Jan-00

Apr-16

Current

16.50

May-15

17.00

16,500

CAM/INS + 15%

RELOCATION: T will relocate upon 45 days notice, but may terminate in lieu of relocating. EXCLUSIVE: Preparation of tax returns < 10,000 SF. TERMINATION: T may terminate if any new legislation makes tax preparation obsolete. HVAC: T's liability for HVAC repair and replacement is limited to $500 per occurrence. 77

San Kitchen Cabinets

1,400

Jul-14

Jun-19

Option 1

Current

15.67

Jul-16

16.17

Jul-18

16.67

Jul-19

16.97

Jul-20

17.48

Jul-21

18.00

Jul-22

18.54

Jul-23

19.10

21,938

None

0.5%

PEPPERTREE PLAZA

23


PEPPERTREE PLAZA - RENT ROLL BASE RENT Lease Suite Tenant Name

78

Crescent Dental

SF

2,250

Lease

EXPENSE RECOVERIES Current

UPON EXPIRATION

Proportionate

Options/ Terms

Start

End

Date

$/SF

Rent/Yr

Method

Share

Sep-03

Sep-19

Current

28.13

63,293

CAM/INS + 15% #2

1.17%

Oct-14

29.00

Assigned

Expiration

MLA

Assumption

Shops $16.00

Renewal Pending

1x5

Shops $16.00

Option

1x5

Shops $18.00

Option

Shops $16.00

Option

growing 3% MGT FEE 4% of Base Rent annually RENEWAL: Pending five year renewal at $29 PSF plus 3% annual increases GUARANTY: Donna DiCrescento EXCLUSIVE: Dental hygienic center and teeth whitening/bleaching center <10,000 SF RADIUS RESTRICTION: 3 miles MERCHANTS ASSOCIATION: T will participate if more than 50% of tenants are members. RELOCATION: T will relocate upon 45 days notice. 80

Hair on Fire

1,000

Mar-11

Jul-16

Current Aug-14

Option 1

Aug-16 Aug-17

15.14

15,140

+4% annually

Hair/Acupuncturists

0.4%

MGT FEE 4% of Base Rent

17.04 +4% annually

RELOCATION: T will relocate upon 15 days notice. RECAPTURE: LL may recapture premises upon 12 months notice in order to redevelop the center. 81

Firehouse Subs

1,666

Mar-11

Apr-16

Option 1

Current

19.10

May-15

19.67

May-16

20.26

May-17

+3% annually

31,821

Firehouse Subs

0.6%

MGT FEE 4% of Base Rent

GUARANTY: Peter Regopoulos RELOCATION: T will relocate upon 60 days notice to specified areas, but may terminate in lieu of relocating. EXCLUSIVE: Sale of submarine sandwiches < 10,000 SF. Does not restrict a bagel shop or grocery store deli. 82

Leone Dental Studio

1,100

Jun-02

Sep-13

Current

14.07

Option 1

Oct-13

14.07

15,477

CAM/INS + 15% #2 MGT FEE 4% of Base Rent

0.4%

RECAPTURE: LL may recapture the premises upon 12 months notice in order to redevelop the center. RADIUS RESTRICTION: 3 miles. RELOCATION: T will relocate upon 45 days notice but may terminate in lieu of relocating.

24

PEPPERTREE PLAZA

1x3


PEPPERTREE PLAZA - RENT ROLL BASE RENT Lease Suite Tenant Name

83

84

SF

One Price Cleaners

1,250

Bank of America

3,600

Lease

EXPENSE RECOVERIES Current

UPON EXPIRATION

Proportionate

Options/

Assigned

Expiration

Start

End

Date

$/SF

Rent/Yr

Method

Share

Terms

MLA

Assumption

Nov-10

Mar-16

Current

15.00

18,750

One Price Cleaners

0.5%

1x5

Shops $16.00

Option

NA

Option

Apr-14

15.50 MGT FEE 4% of Base Rent Apr-15 16.00 Option 1 Apr-16 16.50 Apr-17 17.00 Apr-18 17.50 Apr-19 18.00 Apr-20 18.50 GUARANTY: Jorge Yanes and Salvadora Yanes EXCLUSIVE: Laundry services, alteration services, pressing services and dry cleaning drop site < 10,000 SF. RADIUS RESTRICTION: 3 miles RELOCATION: T will relocate upon 15 days notice but may terminate in lieu of relocating. Jul-98

Jun-18

Current

24.56

Option 1

Jul-18

CPI

88,416

Bank of America

1.4%

1x5

REPAIR & MAINTENANCE: T maintains its building, including roof and structural components. CONTINUOUS OPERATION: Not required. LL has the ongoing right of recapture after 30 days. RESTRICTION: No building within 50 feet of premises excludes Dunkin Donuts and shops near Premises. PROHIBITED USE: Funeral parlor, house of worship, bowling alley, “flea market”, pornographic book store or automobile repair shop. 85 86

Pending LOI Dunkin Donuts

1,334 2,442

Jul-14 Sep-12

Jun-19 Dec-22 Option 1 Option 2

Current

20.50

Jul-15

21.32

Current

25.31

Jan-15

+3% annually

Jan-23

33.03

Jan-24

+3% annually

Jan-28

38.30

Jan-29

+3% annually

27,347

CAM/INS + 15% #1

0.5%

1x5

Shops $16.00

0.9%

2x5

NA

growing 4% annually 61,807

Dunkin Donuts

Option

RADIUS RESTRICTION: 3 miles. REPAIR & MAINTENANCE: T maintains its building, including roof and structural components. EXCLUSIVE: Retail sale of mattresses and box springs. CONTINUOUS OPERATION: Not required. LL has the ongoing right of recapture after 30 days.

PEPPERTREE PLAZA

25


PEPPERTREE PLAZA - RENT ROLL BASE RENT Suite Tenant Name

88

Mattress Firm

Current

UPON EXPIRATION

Lease

Lease

Proportionate

Options/

Assigned

Expiration

Start

End

Date

$/SF

Rent/Yr

Method

Share

Terms

MLA

Assumption

Jan-99

Apr-16 Option 1

Current May-16

18.15 19.97

90,750

Mattress Firm

1.9%

1x5

Mattress Firm

Option

4x5

NA

Option

-

Shops $16.00

Market

SF

5,000

EXPENSE RECOVERIES

RADIUS RESTRICTION: 3 miles. REPAIR & MAINTENANCE: T maintains its building, including roof and structural components. EXCLUSIVE: Retail sale of mattresses and box springs. CONTINUOUS OPERATION: Not required. LL has the ongoing right of recapture after 30 days. 93

Golden Corral

12,000

Jul-09

Aug-30

Option 1 Option 2 Option 3 Option 4

Current

12.50

Sep-15

13.75

Sep-20 Sep-25 Sep-30 Sep-35 Sep-40 Sep-45

15.13 16.64 18.30 20.13 22.14 24.36

150,000

Golden Corral

4.5%

GUARANTY: Anthony Verderame and Joanna Verderame EXCLUSIVE: Buffet style restaurant <20,000 SF. Does not prohibit an Asian-style buffet restaurant. REPAIR & MAINTENANCE: T maintains its building, including roof and structural components. RADIUS RESTRICTION: 3 miles MERCHANTS ASSOCIATION: T will participate if more than 50% of tenants are members. Y

Century 21 Richards Realty

6,700

Mar-99

Oct-16

Current

9.19

Nov-14

9.56

Nov-15

9.94

61,573

Century 21

2.5%

GUARANTY: Pryce Richards and Sue Richards RADIUS RESTRICTION: 3 miles EXCLUSIVE: Residential real estate brokerage office < 10,000 SF. Not meant to restrict mortgage or insurance office.

Leased Available

TOTAL

26

Area

% of

Annual

(SF)

Total

Rent PSF

Rent

233,778 30,259

88.5% 11.5%

$12.31 $0.00

$2,878,701 $0

264,037

100.0%

PEPPERTREE PLAZA

Annual

$2,878,701


PEPPERTREE PLAZA

27


PROJECTION ASSUMPTIONS

OPERATING EXPENSE RECOVERIES

An overview of the key assumptions made in the Peppertree Plaza cash flow projection

Operating expense recoveries for current tenants are based on the existing leases. The

follows.

majority of the shop tenant’s leases are triple net, allowing for full pass-through of operating

PROJECTION PERIOD

expenses and real estate taxes plus an administrative fee of 15%. Speculative shop tenants

10-year projection on a fiscal year basis, beginning in July 2014.

are modeled in the same manner.

NET RENTABLE AREA

VACANCY LOSS

264,037 square feet.

A vacancy loss of 5.0% is applied over the projection. There is no vacancy loss adjustment

MARKET PROJECTION ASSUMPTIONS 2012 Market Rent (NNN) Anchor $10 Jr. Anchor $12 Shops $12 Shops $14 Shops $16 Shops $18 Shops $21 Mattress Firm General Inflation Market Rent Growth Rate All Tenants Contract Rent Growth Rate All Tenants Anchors/Mattress Firm Tenant Renewal Probability All Tenants

for Winn-Dixie, Office Depot, Sam Ash, Dollar Tree, Golden Corral, Bank of America, Dunkin $10.00 $12.00 $12.00 $14.00 $16.00 $18.00 $21.00 $25.00

per SF per SF per SF per SF per SF per SF per SF per SF 3.00% 3.0% per annum 3.0% per annum 10% Year 6 75.00%

2014 Tenant Improvement Allowance

Anchor & Jr Anchor Tenants Shop Tenants

New Tenant: Renewal: New Tenant: Renewal:

$10.00 per SF None $5.00 per SF $1.00 per SF

New Tenant: Renewal: New Tenant: Renewal:

$2.00 per SF None 6.00% 3.00%

2014 Leasing Commissions

Anchor & Jr Anchor Tenants Shop Tenants Downtime Between Leases

Anchor Tenants Shop Tenants

New Tenant: Renewal: New Tenant: Renewal:

9 0 6 0

months months months months

Lease Term

Anchor Tenants Shop Tenants

28

PEPPERTREE PLAZA

10 years 5 years

Donuts and Mattress Firm.

VACANT SPACE LEASE-UP Currently, there are 11 suites remaining to be leased. Please note that the tenant improvement and leasing commission costs for this space is assumed to be the responsibility of the Buyer. AVAILABLE SPACE LEASE-UP Suite

Area (SF)

Date Leased

Rent ($ per SF)

Tenant Improvement Allowance ($ per SF)

Lease Term

4

1,300

9/1/14

$12.00

$5.00

5 years

5

3,800

1/1/15

$12.36

$5.15

5 years

12

1,550

9/1/14

$18.00

$5.00

5 years

31

1,275

11/1/14

$18.00

$5.00

5 years

42

2,993

3/1/15

$12.36

$5.15

5 years

44

4,044

6/1/15

$12.36

$5.15

5 years

46

4,000

6/1/15

$12.36

$5.15

5 years

48

5,022

8/1/15

$12.36

$5.15

5 years

63

1,275

8/1/15

$18.54

$5.15

5 years

66

3,750

10/1/15

$18.54

$5.15

5 years

67

1,250

10/1/15

$18.54

$5.15

5 years

TOTAL

30,259


RENEWAL OPTIONS

SPECIAL ASSUMPTION

The projection assumes that the following tenants exercise their lease renewal options at the

The projection assumes that Mattress Firm vacates after their last option and subsequently

contracted option rental rate per each tenant’s lease.

converted to a ground lease under the terms noted below. SPECIAL ASSUMPTIONS

RENEWAL OPTIONS Suite 39 78 59

Area SF 1,050 2,250 1,500

71

25,117

4/1/15

Regional Acceptance Plaza Podiatry Dollar Tree Cato Fashions One Price Cleaners Mattress Firm Firehouse Subs Cinema Sound The Acupuncturists Hair on Fire Prescious Moments Jewelry Gordo's Grill Bank of America

41

2,458

4/1/15

62 27 34 83

1,275 10,000 4,416 1,250

8/1/15 11/1/15 2/1/16 4/1/16

$22.00 $9.00 $14.00 $16.50

2-year 5-year 5-year 5-year

term, term, term, term,

flat flat flat $0.50 annual increases

88 81 68 25

5,000 1,666 2,757 2,550

5/1/16 5/1/16 6/1/16 6/1/16

$19.97 $20.26 $14.42 $15.50

5-year 5-year 5-year 5-year

term, term, term, term,

flat 3% annual increases 3% annual increases $0.50 annual increases

80 65

1,000 2,000

8/1/16 9/1/16

$17.03 5-year term, 4% annual increases $26.05 10-year term, 5% annual increases

14 84

2,250 3,600

9/1/17 7/1/18

San Kitchen Cabinets Dunkin Donuts

77

1,400

7/1/19

$18.55 5-year term, 3% annual increases $28.47 5-year term, 3% annual increases with 1x5 option remaining with CPI annual increases $16.97 5-year term, 3% annual increases

86

2,442

1/1/23

Elegant Beauty Supplies Winn-Dixie

71A

4,883

7/1/24

17

56,000

7/1/30

93

12,000

9/1/30

Tenant Vogue Opticians Crescent Dental Physicians Weight Loss Office Depot

Golden Corral

TOTAL

Rent $ PSF $21.00 $29.00 $19.00

Tenant

Option Date 9/1/14 10/1/14 11/1/14

Comments 5-year term, 4% increases 5-year term, 3% increases 3-year term, 4% increases

$8.50 5-year term, flat with 1x5 option remaining at $10.00 PSF $14.34 3-year term, 3% annual increases

Mattress Firm

Suite

Area SF

Date

Rent

88

5,000

2/1/22

$25.00

Mattress Firm

OPERATING EXPENSES Salient observations on the projected operating expenses follow. Unless otherwise noted, operating expenses are based on the building’s 2014 expenses as a baseline. •

Management Fee is estimated at 3.0% of Base Rent.

Real Estate Taxes for year 1 are based on 2013 actual expenses grown at 3.0%. Real estate tax expenses are modeled net of a 4.0% discount taken for early payment in November.

STRUCTURAL RESERVE A structural reserve of $0.15 per square foot is projected in Year 1, and increased thereafter at 3.0% p.a.

$33.02 5-year term, 3% annual increases with 1x5 option remaining with 3.0% annual increases $11.75 5-year term, 3% annual increases $12.50 5-year term, flat with 5x5 option remaining with $1.00 PSF increases each option period $18.30 5-year term, flat with 4x5 options remaining with 10% increases each option period

79,567

PEPPERTREE PLAZA

29


PEPPERTREE PLAZA - 10-YEAR CASH FLOW NRA 264,037 SF Start Date July 2014

In-Place PSF

Occupancy Vacancy/Credit Loss Economic Occupancy

In-Place Jul-14

Year 1 Jun-2015

Year 2 Jun-2016

Year 3 Jun-2017

Year 4 Jun-2018

Year 5 Jun-2019

Year 6 Jun-2020

Year 7 Jun-2021

Year 8 Jun-2022

Year 9 Jun-2023

Year 10 Jun-2024

88.5% 0.0% 88.5%

91.0% 0.0% 91.0%

97.4% -1.9% 95.5%

99.1% -2.0% 97.1%

98.5% -1.5% 96.9%

99.8% -2.7% 97.1%

98.2% -1.5% 96.7%

97.1% -1.1% 96.0%

97.7% -1.7% 96.0%

98.7% -1.6% 97.1%

99.3% -2.3% 97.0%

Income Base Rental Revenue

10.92 2,883,336 3,004,861 3,356,235 3,543,223 3,588,376 3,739,479 3,701,352 3,870,859 4,064,867 4,236,204 4,353,675

Total Base Rental Revenue

10.92 2,883,336 3,004,861 3,356,235 3,543,223 3,588,376 3,739,479 3,701,352 3,870,859 4,064,867 4,236,204 4,353,675

Reimbursements CAM Insurance Real Estate Tax Total Reimbursements

1.78 469,656 491,397 549,823 562,055 567,777 590,953 601,085 628,842 646,377 669,912 694,878 0.27 71,556 75,467 85,707 91,332 94,492 99,261 101,331 108,176 113,950 118,479 123,076 2.57 677,736 707,665 781,122 826,984 850,463 888,684 909,180 943,404 976,125 1,017,714 1,055,007 4.62 1,218,948 1,274,529 1,416,652 1,480,371 1,512,732 1,578,898 1,611,596 1,680,422 1,736,452 1,806,105 1,872,961

Other Income

43,736

45,049

46,399

47,793

49,225

50,702

52,223

53,791

55,403

57,067

Total Potential Gross Revenue Vacancy Loss

15.70 4,145,364 4,323,126 4,817,936 5,069,993 5,148,901 5,367,602 5,363,650 5,603,504 5,855,110 6,097,712 6,283,703 (92,149) (98,350) (77,983) (142,648) (78,592) (60,528) (97,975) (98,224) (141,337)

Effective Gross Revenue

15.70 4,145,364 4,323,126 4,725,787 4,971,643 5,070,918 5,224,954 5,285,058 5,542,976 5,757,135 5,999,488 6,142,366

Expenses CAM Insurance Real Estate Tax Management Fee Total Expenses Net Operating Income NOI Growth

30

43,080

1.80 0.32 3.10 0.38

475,236 84,900 819,084 99,024

482,360 86,171 831,369 100,122

496,836 88,758 856,312 103,390

511,741 91,419 882,003 107,622

527,100 94,161 908,462 109,711

542,903 96,987 935,715 112,505

559,192 99,896 963,790 113,316

575,969 593,245 611,045 629,376 102,892 105,981 109,159 112,435 992,699 1,022,482 1,053,155 1,084,749 120,572 126,698 129,281 131,685

5.60 1,478,244 1,500,022 1,545,296 1,592,785 1,639,434 1,688,110 1,736,194 1,792,132 1,848,406 1,902,640 1,958,245 10.10 2,667,120 2,823,104 3,180,491 3,378,858 3,431,484 3,536,844 3,548,864 3,750,844 3,908,729 4,096,848 4,184,121 12.7% 19.7% 21.6% 25.3% 25.7% 32.9% 38.5% 45.1% 48.2%

Leasing & Capital Costs Tenant Improvements Leasing Commissions Replacement Reserve Total Leasing & Capital Costs

0.15

39,612

97,036 79,584 40,200

137,271 131,575 41,406

34,024 56,855 42,650

53,960 82,253 43,927

7,147 12,806 45,243

57,456 79,501 46,604

101,696 130,315 47,999

120,851 197,543 49,442

43,071 77,176 50,923

43,049 61,724 52,452

0.15

39,612

216,820

310,252

133,529

180,140

65,196

183,561

280,010

367,836

171,170

157,225

Cash Flow after Capital

9.95 2,627,508 2,606,284 2,870,239 3,245,329 3,251,344 3,471,648 3,365,303 3,470,834 3,540,893 3,925,678 4,026,896

PEPPERTREE PLAZA


PEPPER T R EE PL AZ A 2011, 2012, AN D 2013 AC T U AL O PERAT IN G S T ATE M E NT S 31/12/11

12/31/2012

Actual

PSF

Actual

12/31/2013 PSF

Occupancy

Forecast

89%

Base Rent

2,422,125

9.17

PSF 87%

2,552,112

9.67

2,709,842

10.26

CAM & Insurance Reimbursements

121,416

0.46

504,529

1.91

532,076

2.02

Real Estate Tax Reimbursements

563,722

2.14

630,752

2.39

595,189

2.25

Miscellaneous Income TOTAL REVENUE CAM Insurance Real Estate Tax

67,693

0.26

59,712

0.23

45,441

0.17

3,174,956

12.02

3,747,105

14.19

3,882,548

14.70

402,145

1.52

449,018

1.70

507,511

1.92

67,857

0.26

80,025

0.30

82,735

0.31

773,489

2.93

738,420

2.80

795,453

3.01

95,813

0.36

118,762

0.45

118,892

0.45

TOTAL OPERATING EXPENSE

1,339,304

5.07

1,386,225

5.25

1,504,591

5.70

NET OPERATING INCOME

1,835,652

6.95

2,360,880

8.94

2,377,957

9.01

Management Fees

NOTE: Please note landlord expenses have been removed from the analysis as they are specific to the Seller. Additionally, lease termination fees of $19,748 in 2012 and $40,874 in 2013 have been excluded. Miscellaneous income consists of specialty leasing and trash pad rental.

Lease Expirations

RSF

% Expiring 100%

120,000 100,000

80%

80,000

60%

60,000 40%

40,000

20%

20,000 0

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

0%

PEPPERTREE PLAZA

31


ANCHORS - SALES SUMMARY Occupancy Cost Category

Tenant Sales PSF

Area (SF)

Cost/SF

Ratio

2010

2011

2012

2013

Winn Dixie

56,000

$13.39

3.4%

N/A

$379

$390

$404

Golden Corral

12,000

$17.70

5.1%

N/A

$421

$363

$344

Dollar Tree

10,000

$13.58

5.2%

$225

$269

$280

$262

> 10,000 SF

78,000

$14.08

3.7%

$225

$371

$372

$376

SHOPS - SALES SUMMARY Occupancy Cost Category

Area (SF)

Cost/SF

Ratio

2010

2011

2012

2013

Cato

4,416

$18.14

11.0%

$159

$179

$164

$165

Cinema Sound

2,757

$19.37

4.5%

N/A

N/A

$398

$435

Firehouse Subs 1

1,666

$25.73

8.1%

N/A

$358

$346

$318

Gold Reef Goldbuyers

1,700

$20.69

8.9%

N/A

N/A

N/A

$233

Hair on Fire 1

1,000

$21.83

16.4%

N/A

$96

$85

$133

Pad Thai

1,700

$31.13

19.8%

$115

$132

$155

$157

Physicians Weight Loss

1,500

$21.93

13.4%

$121

$138

$164

$164

Lucky City

2,125

$21.75

16.7%

$79

$78

$124

$130

One Price Cleaners

1,250

$22.02

10.2%

N/A

N/A

$116

$215

Precious Moments Jewelry

2,000

$29.73

10.2%

$197

$210

$204

$291

Radio Shack

1,750

$20.22

9.5%

$217

$207

$204

$213

Time Out

1,050

$21.22

13.3%

N/A

$143

$140

$160

Classic Hair Salon

2,125

$24.67

13.9%

$160

$174

$174

$177

Vogue Opticisians

1,050

$26.52

18.3%

N/A

N/A

N/A

$145

Logica Lovely Nails < 10,000 SF

32

Tenant Sales PSF

700

$21.37

11.9%

N/A

$115

$164

$180

1,681

$24.68

31.2%

N/A

N/A

N/A

$79

28,470

$22.72

10.9%

$151

$173

$200

$209

PEPPERTREE PLAZA


PEPPERTREE PLAZA

33


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34

PEPPERTREE PLAZA


BROWARD COUNTY OVERVIEW The key to the Broward County economy is its central position vis-à-vis the South Florida megalopolis comprised of Broward, Palm Beach, and Miami-Dade Counties. Broward County is roughly equidistant between Miami to the south and West Palm Beach to the north. South Florida is by far the most economically and culturally vibrant section in the State of Florida, accounting for over 5.7 million residents. Broward County’s central position in this dynamic growth corridor makes it easily accessible by road, rail, air and sea, and positions it for trade with domestic and international markets in the Caribbean, South America, and Central America. The combination of Broward County’s strong employment base, extensive transportation network, quality of life, award winning schools, wealth of cultural and recreational amenities, and a bustling tourism industry make it the ideal area to live, work or play. Spread over multiple industries, over a million persons make up the employment base in the county and this number is rapidly growing stronger making Broward County one of the top ten employment growth markets in the country.

CORAL SPRINGS/MARGATE/COCONUT CREEK OVERVIEW Peppertree Plaza is located within Northwestern Broward County, in the northeast corner of the City of Margate which is bookended by both the City of Coral Springs to the west and the City of Coconut Creek to the east. These cities comprise a large portion of the desirable suburban communities that characterize the northwestern portion of Broward County. As congestion and overdevelopment builds along the eastern areas of the South Florida corridor, there is a movement west to find more moderately priced housing and a better quality of life. Being bordered in three directions by both the Sawgrass Expressway and Florida’s Turnpike, the Coral Springs/Margate/Coconut Creek area is a direct beneficiary of this movement. It is ideally situated just minutes from the Pompano Beach industrial district, a 20 minute commute from both the Boca Raton and Fort Lauderdale employment centers, and 40 minutes from Downtown Miami. The easy access/commutability, relatively affordable housing market, and high quality of life within the Coral Springs/Margate/Coconut Creek area are key demand drivers. The area has experienced an 11% population growth since 2000 with projections of an additional 6% through 2019, which are extremely impressive for a mature, infill, densely populated market.

PEPPERTREE PLAZA

35


MAJOR DEMAND DRIVERS

POPULATION AND HOUSEHOLDS

Northwestern Broward County is well positioned to benefit from a variety of different economic

The Cities of Coral Springs, Margate and Coconut Creek are individually the 5th, 14th and

drivers. The cities of Coral Springs, Margate, and Coconut creek are centrally located and

15th most populous cities in Broward County and combined are larger than any single

within commuting distance of Boca Raton (NE), Pompano Beach (E), Fort Lauderdale (SE), and the Sawgrass, Sunrise, and Plantation office markets (S-SW). However, beyond being an

incorporated community in the county. The area has enjoyed consistent and steady growth

ideal bedroom community for residents commuting elsewhere, the area is home to over 3.6

with gains of 5.5% and 5.3% within the periods of 2000 to 2010 and 2010 to 2014,

million square feet of office and 4.3 million square feet of industrial GLA.

respectively, and is expected to grow another 6.2% by 2019 to over 250,000 residents. The average and median household incomes of the Coral Springs/Margate/Coconut Creek

The reason residents choose to remain in or relocate to the Northwest Broward area is due

area are $70,900 and $53,700, respectively, which are 5% and 11% higher than county

to the high quality of life and amenities. The Parks and Recreation Departments of Coral

average and median levels. As further evidence of the high quality of life, even with higher

Springs, Margate, and Coconut Creek operate over 100 neighborhood parks and greenways that are home to numerous nature trails, athletic fields and year-round events bringing the

income levels, the area has a median housing value almost 3% lower than that of the county.

local communities together. In addition, the Northwest Broward area boasts six golf courses DEMOGRAPHICS

(including TPC Eagle Trace, and Heron Bay Golf Club), a top-rated public school system, and numerous attractions such as the Coral Springs Center for the Arts, which contains a theater

Description

and museum of art, and the Coconut Creek Seminole Casino. Further, the City of Coral

Population

Springs is demolishing and rebuilding their city hall (estimated February 2014) in the hopes that will be the beginning of a new downtown/urban core for the local area.

Trade Area

Broward County

Florida

2019 Projection

254,063

1,960,107

20,782,174

2014 Estimate

239,320

1,841,236

19,654,457

2010 Census

227,289

1,748,066

18,801,310

Growth 2014-2019

6.16%

6.46%

5.74%

Growth 2010-2014

5.29%

5.33%

4.54%

2014 Estimated Average

$70,874

$67,514

$61,692

2014 Estimated Median

$53,744

$48,294

$44,318

Household Income

Source: Claritas

36

PEPPERTREE PLAZA


CORAL SPRINGS - MARGATE - COCONUT CREEK RETAIL SUBMARKET

Coral Springs/Margate/Coconut Creek Retail Submarket Net Absorption & New Investory

1000,000 800,000

mile area comprised of the three cities with the approximate boundaries of the Sawgrass

600,000

Expressway to the north and west, Florida’s Turnpike to the east, and just south of Atlantic

400,000

Boulevard to the south. Totaling 11.9 million retail square feet, this area is one of the largest in Broward County. With easy access and a dense suburban residential population, the Coral

Square Feet

The Coral Springs-Margate-Coconut Creek retail submarket is a densely-populated, 45 square

200,000 0 (200,000)

Springs-Margate-Coconut Creek retail submarket is one of the premier grocery-anchored and

2006

2007

2008

2009

2010

2011

2012

2013

(400,000)

community shopping center locations in the County.

(600,000) (800,000) Net Absorption

This retail submarket is primarily characterized by community and neighborhood centers

Net Inventory

that generally consist of less than 100,000 square feet. However, in the southern portion of the submarket along W Atlantic Boulevard sits the 940,000 square-foot Coral Springs Coral Springs/Margate/Coconut Creek Retail Submarket Rental Rates & Vacancy

Mall. This Simon-owned mall underwent a major renovation and expansion in 2008 which $25.00

the submarket saw over 770,000 square feet of new retail product delivered to the market in vacancy rates to almost 14% and a negative net absorption number of over 600,000 square feet in 2009. 2010 and 2011, however saw strong positive net absorption effectively erasing 2009’s negative number and thus vacancy rates have been falling year over year to the current 7.3% level. Surprisingly, average retail rental rates have been steadily trending upwards and have increased over 50% since 2006 from $12.90 to $19.50.

14.0%

$20.00 Rental Rates

which, combined with poor economic conditions at the time, caused a subsequent increase

16.0% 12.0% 10.0%

$15.00

8.0% $10.00

6.0% 4.0%

$5.00 $0.00

Vacancy

is a testament to the strength of the retail market in western Broward County. Also in 2008,

2.0% 2006

2007

2008

2009

Rental Rates

2010

2011

2012

2013

0.0%

Vacancy

PEPPERTREE PLAZA

37


38

PEPPERTREE PLAZA


CORAL SPRINGS - MARGATE - COCONUT CREEK RETAIL MARKET DRIVERS HIGH-DENSITY TRADE AREA

HIGH BARRIERS TO ENTRY

The Coral Springs-Margate-Coconut Creek retail submarket is home to over 239,000

Just to the west of the Property, within this submarket, lay the Everglades Wildlife

residents and over 90,000 households and is expected to grow over 6% through 2019.

Management Conservation Area which prevents any commercial or residential development

Further, with 5,318 residents per square mile, the submarket is almost four times denser

from encroaching further west. The presence of this conservation area to the west limits the

than Broward County and almost 16 times denser than the state of Florida. This area also

available land for new development within the submarket creating an environment where

boasts average household income levels of almost $71,000, compared with $67,000 for

only the existing centers can operate, effectively eliminating the threat of new entrants into

Broward County. These high densities and household income levels ensure the Properties

the market and strengthening the position of Peppertree Plaza.

have a strong full-time customer base with ample of purchasing power to drive tenant sales going forward.

HIGH-TRAFFIC, CRITICAL RETAIL INTERSECTION With over 107,500 VPD in aggregate and a central location within the submarket, the

Residents Per Square Mile

Population Destiny

intersection of W Sample Road and US-441 serves as a critical location and provides the

6,000

Property with maximum exposure.

5,000 4,000 3,000 2,000 1,000 0 Coral Springs-Margate-Coconut Creek Retail Submarket

Broward Country

Florida

PROXIMATE TO MAJOR EMPLOYMENT CENTERS The market’s easy access to major regional highway systems and its central location between Broward and Palm Beach Counties provide a convenient link to the major employment centers within South Florida—namely, Boca Raton, Downtown Fort Lauderdale, Cypress Creek, Plantation, Sawgrass and Sunrise among others.

PEPPERTREE PLAZA

39


COMPE T IT IV E SE T No

Shopping Center Name

BOCA RATON

808

Total GLA (SF)

Peppertree Plaza

264,037

1

Coral Landings III

176,575

2 3 4 5 6 7 8

Coral Landings II Penn Dutch Plaza Towne Shoppes of Margate Winston Park Shopping Center Turtle Run Shoppes Promenade at Coconut Creek Coconut Creek Plaza TOTAL

827

102,786 155,622 147,967 67,787 171,628 239,173 265,671 1,591,246

845

7

95

810

DEERFIELD BEACH

869

7

W SAMPLE ROAD

Source: Costar and HFF

Florida Atlantic University Stadium

834

CORAL SPRINGS

PEPPERTREE PLAZA MARGATE, FL

7

Arthur R. Marshall Loxahatchee National Wildlife Refuge

POMPANO BEACH SAWGRASS EXPY

814

MARGATE 8

1

TAMARAC

869 816

OAKLAND PARK

SUNRISE 838

84 842

PLANTATION

FORT LAUDERDALE

595

DAVIE

40

PEPPERTREE PLAZA

FLORIDA’S TURNPIKE

WESTON

Fort Lauderdale Hollywood International Airport

5


C O M PET IT IVE S ET No

Shopping Center Name

Year Built/Renovated

Peppertree Plaza

Total GLA (SF)

Property Type

264,037

Grocery Anchored

Occupancy (%)

Quoted NNN Shop Rent/SF

Winn-Dixie, Office Depot, Sam Ash Music

88.0%

$16.00 - $21.00

Aldi, Best Buy, Home Goods, Jo-Ann Fabrics

83.7%

$16.50

$6.85

$23.35

Anchors

Quoted Shop Pass-Thru PSF

Total Rent

$6.00 $22.00 - $27.00

1

Coral Landings III

2008

176,575

Power Center

2

Coral Landings II

2008

102,786

Grocery Anchored

Publix

92.4%

$29.18

$6.60

$35.78

3

Penn Dutch Plaza

1989/2004

155,622

Grocery Anchored

Penn Dutch Food Center, YouFit Health Clubs

89.4%

$16.00

$5.07

$21.07

4

Towne Shoppes of Margate

1986

147,967

Grocery Anchored

Monterey Market

90.1%

$12.00

$5.00

$17.00

5

Winston Park Shopping Center

1998

67,787

Grocery Anchored

Publix

97.9%

$18.00

$11.30

$29.30

6

Turtle Run Shoppes

1991

171,628

99.1%

$21.00

$9.94

$30.94

7

Promenade at Coconut Creek

2008

239,173

Lifestyle Center

DSW, Guitar Center

90.0%

$36.00

$10.80

$46.80

8

Coconut Creek Plaza

1962/1988

265,671

Grocery Anchored

Publix, Big Lots, Planet Fitness

78.6%

$18.50

$5.09

$23.59

88.6%

$21.49

$7.40

$28.90

TOTAL

1,591,246

Community Center Burlington Coat Factory, Ross Dress for Less

Source: Costar and HFF

PEPPERTREE PLAZA

41


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