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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Commerce Square Auto Plaza
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
5
6
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
7
8
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
9
10
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
11
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 tenantâ&#x20AC;&#x2122;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, Floridaâ&#x20AC;&#x2122;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 2009â&#x20AC;&#x2122;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 marketâ&#x20AC;&#x2122;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 Floridaâ&#x20AC;&#x201D;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