1675 Military Trail Boca Raton, FL - images1.loopnet.com€¦ · A Division of Kay Realty Services, LLC 1989 Jumping Brook Road Phone: 732-918-1148 Fax: 732-918-1628 [email protected]

1675 Military Trail Boca Raton, FL

KAY COMMERCIAL REALTY A Division of Kay Realty Services, LLC 1989 Jumping Brook Road Tinton Falls, NJ 07753 Phone: 732-918-1148 Fax: 732-918-1628 [email protected] www.kaycommercialrealty.com

mailto:[email protected]

http://www.kaycommercialrealty.com

KAY COMMERCIAL REALTY A Division of Kay Realty Services, LLC

EXECUTIVE SUMMARY

KCR is pleased to offer the sale of a 100% Fee Simple Interest at 1675 Military Trail, in Boca Raton

Florida. The building is also known as The COMERICA BANK Building.

This is a 7-Story 161,000 square foot, “A” office building with self-contained multi-level

garage parking. The primary tenant is Comerica Bank. The remainder of the building is

leased to several medium and small sized tenants.

This prominent building is one of the newest to be

built in the Boca Town Center Marketplace and is

strategically located near the Boca Mall, which is

anchored by Nordstrom and other quality office

and retail properties. This is considered the prime

location in the Town Center area at the corner of

Town Center Road and Military Trail. Comerica

Bank occupies the ground floor and the entire 6th

floor. (Floors 2-4 are parking garage areas). Top

floors offer an unexcelled view of the area. The

structure is hurricane resistant with back up pow-

er and related services and unparalleled views of

Town Center/Boca Center Area. Office floors sit above structured parking, the top floor at

125' above grade. The building has excellent exposure facing Military Trail and Town Center

Road. There is multiple deck (4) parking with ample covered parking (195) and multiple

building access entries. lush landscaping, water (lake) views and substantial building ameni-

ties including 2,500 square foot document/misc. on-site storage. It is the tallest permitted

structure on site. The site enjoys the highest traffic count on Military Trail at the Town Center

entrance, with over 600' of com-

bined frontage with lake views

and a 360 degree panoramic

view from upper office floors.

The building provides an on-site bank branch directly across from Boca Center. "Up Front"

parking encircling the building complex for easy client parking. The site is less than two

minutes to Route 95, Town Center Mall, and Boca Center. Optional Valet Parking is included in

CAM. The new owner is under no lease obligation to provide this and a buyer could monetize

both Parking and Valet Services in its own Pro-Forma. Currently the Owner offers a $40 TI

build-out.



INVESTMENT HIGHLIGHTS

Unique Value-Add Investment and User Purchase Opportunity

The Comerica Bank property offers an investor the opportunity to create value by presenting the market with an option for full floor, full Penthouse with breathtaking views or small office space (minimum 1,500 sf). The stability of a banking institution retail platform and Wealth Manage-

ment offices provide a potential tenant with security and strength as well as convenience and potential business relationships. As of two years prior, the building was fully leased. However, the full floor user of the 5th floor (a regional accounting firm) was purchased by a national ac-countant, and therefore consolidated space within an-other building and left in December of 2018. Depending on the needs of the market, the current penthouse tenant, a high end spa, will move to anoth-er location within the building thus creating a 12,000

+- full floor surrounded by glass. Remaining space in the Penthouse is currently in raw condi-tion, but the Seller will finish it for the Buyer to White Box specs, or alternatively provide the Buyer with a credit on the purchase price.

Covered, garage parking is also an amenity that is rarely found in this class of building. In addition, while not required in its leases, the current owner has of-fered Valet Parking to the tenants.


Zero “Mark-to-Market Risk Adjustment

The subject property is leased at market rates. Proforma rents are shown slightly below attaina-

ble rents so as to stabilize the building quickly. Tenants are not being charged for garage park-

ing within the building, however we feel that new tenants would gladly pay additional monthly

charges for this convenience.

Below Replacement Cost Pricing

This property includes a 195 car garage within its four walls. A building of this type could not be

duplicated today at any cost as there is little land available in a location as good as this is. In

addition, replacement cost on garage space today plus the cost of the office space in 161,000

sf makes this building unique and its purchase price per square foot equal to approximately

$150 psf. Subtracting this amount from the overall price per square foot of $356 puts the price

of the office space at only $206 psf.

Excellent Corporate Location and Access

Today, Boca Raton is divided into three submarkets: the northwest sector, midtown center area

and downtown. Real estate brokers and developers in Boca Raton say there’s a new focus on

creating more residential and commercial opportunities citywide.

Signs of Change

Malcolm Butters, CEO of Coconut Creek-based Butters Construction, said “the residential market

has seen tremendous growth and will help fuel other real estate sectors, especially office”. But-

ters purchased three office buildings in Boca . “We have seen positive absorption and rising

rents,” Butters said. “There is no new office product, but the economy is nowhere near its peak.

It will continue to grow.”.

Transportation

Palm Beach County operates seven bus routes that serve Boca Raton. The city’s Yamato

Road Tri-Rail Station offers free shuttle service to major destination points in Boca Raton,

including the Park at Broken Sound, Town Center at Boca Raton, Florida Atlantic University

and Lynn University. Also, the town will be building a “Brightline” station, which will service

from Miami to Tampa (recently purchased by Virgin Airlines). There is a proposed stop in

downtown Boca.

Commercial Broker’s Take

“There are folks assembling properties and looking to next cycle from retail perspective.

There is no vacant land that would accommodate mixed-use retail. When you find a proper-

ty, the land price is pretty dramatic,” said Keith O’Donnell, principal with Avison Young.

Demographics

Population: 88,187

Median age: 46

Median income: $68,962

Average household net worth: $571,341

Residential Price Trends

Median sales price per square foot: $202, 7% higher than all of Palm Beach County.

New Developments

Sites in the midtown area which is part of the site’s market area:

Elad Group completed work at 210 Southeast Mizner Boulevard and 398 Southeast

Mizner Boulevard where the developer plans construction of an unnamed trio of nine-

story condo buildings replacing the Mizner on the Green townhouse development.

Penn-Florida Companies recently is fully completing the 12-story Mandarin Oriental Boca

Raton hotel. The hotel is part of Via Mizner, a mixed-use project that will also include a

92-unit luxury tower, Residences at Mandarin Oriental Boca Raton.

These indicate the rapid and solid residential growth which feeds the office market.


PROPERTY DESCRIPTION

Address 1675 N Military Trail, Boca Raton, Block/Lot Lot C Building Type Office Class A Year Built/Renovated 2008/2008 Land Size .592/25792 Gross Building Size 66,354 + 95,600 = 161,954 Number of Tenants 4 Stories 7 Parking 195 Covered spaces (floors 1-4) Elevators 2 Avg Finished Ceiling Height 12 After Hours Access FULL Security FULL Zoning CG


COMERICA

Financial Services Company

www.comerica.com

Corporate Profile

Comerica Incorporated (NJSE: CMA) is a financial services company headquartered in Dallas, Tex-

as and strategically aligned by three business segments: The Business Bank, The Retail Bank and

Wealth Management. Comerica focuses on relationships, and helping people and businesses be

successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Flor-

ida and Michigan with select businesses operating in several other states, as well as in Canada and

Mexico. Comerica reported total assets of $73 billion as of June 30, 2019.

Stock Price: CMA (NYSE) $59.27 - .050 (-0.84%) Aug 15, 4:00pm EDT—Disclaimer

Headquarters: Dallas, TX

CEO: Curtis C. Farmer (April 23, 2019-)

Number of Employees: 8,190 (2017)

Subsidiaries: VRB Corp., Comerica Management Co, MORE


TENANT PROFILE


FINANCIAL REPORTS


RENT ROLL AND PROFORMA

Tenant Name:

Suite Area Vacant

Expiration Monthly Monthly

Annual rent psf

Annual Annual

(Occupied Units) Date Base Rent Electric Rent Reimb.

COMERICA BANK 1 3,300 8/1/2023 $ 6,555 Metered $23.84 $ 78,662

COMERICA BANK 6 24,655 8/1/2023 $64,802 Metered $ 31.54 $777,619

COMERICA BANK SIGNAGE 8/1/2023 Metered $ 56,400

COMERICA BANK TOTAL REIM-BURSEMENTS $342,449

BRODIE & FRIEDMAN, PA 5 2,400 7/1/2028 $ 5,500 Metered $ 27.50 $ 66,000 $ 28,000

JCB PENSION COMPANY 5 1,666 7/1/2021 $ 2,934 Metered $ 21.13 $ 35,203 $ 19,992

BURT MOSS ASSOCIATES 5 1,363 7/1/2021 $ 2,840 Metered $ 25.00 $ 34,075 $ 16,356

TO BE LEASED 5 19,296 19,296 Metered $ $

TO BE LEASED 7 7,332 7,332 Metered $ $

SALON SORA LLC 7 4,668 6/15/2023 $11,670 Metered $ 30.00 $140,040 $ 56,016

TO BE LEASED STORAGE AREA TOTALS

1,674

1,674 0

PROPERTY TOTALS 66,354 28,302 $1,187,999 $462,813

Note 1: Floors 1 (portion) 2,3&4 are covered parking 43% 57% $94,300


RENT ROLL & PROFORMA

Income In Place Pro-Forma Area @ 100% 66,354

Occupancy 57% 100% Current Occ. Sf 38,052 57%

Base Rent $ 1,187,999 $ 2,117,772 Add'l Leasing 28,302 43%

Recoveries $ 462,813 $ 476,697 *Mkt Rent psf $ 40.00

Additional Rent + CAM From Leasing $ - $ 1,132,080 Add'l Rent $ 1,132,080

Total Income $ 1,650,812 $ 3,726,549

*Mkt Rent = $28+12 cam

Expenses Per S.F

Cleaning** $1.00 38,052 66,354

R&M $0.25 16,362 28,600

Utilties (common area) $0.86 57,385 57,385

Landscaping $0.31 20,400 20,400

Security $0.19 12,688 12,688

Elevator $0.38 25,500 25,500

Management $0.06 75,030 75,030

Valet Parking (leases do not require)

$0.05 25,000 25,000

Insurance $0.90 60,000 60,000

Real Estate Taxes $4.46 296,179 296,179

Total Operating 626,596 667,136

Net Operating Income $1,024,216 $3,059,413

38,502

** PSF of occupied space

CASH FLOW

For the Years Ending 2019-2020 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026

S.F. To be leased this period $11,674 $16,628

S.F Leased at beginning of period $38,052 $49,726 $66,354 $66,354 $1,868,717 $1,868,717

Potential Gross Revenue

Base Rental Revenue $1,047,959 $1,386,505 $1,868,717 $1,868,717 $1,868,717 $1,868,717

Absorption & Turnover Vacancy

Base Rent Abatements

Scheduled Base Rental Revenue $1,047,959 $1,386,505 $1,868,717 $1,868,717 $1,868,717 $1,868,717

Expense Reimbursement Revenue $406,797 $546,885 $761,349 $776,576 $792,108 $807,950

Total Potential Gross Revenue $1,454,756 $1,933,390 $2,630,066 $2,645,293 $2,660,825 $2,676,667

General Vacancy $72,738 $96,670 $131,503 $132,265 $133,041 $133,833

Effective Gross Revenue $1,382,018 $1,836,721 $2,498,563 $2,513,029 $2,527,784 $2,542,834

Operating Expenses

Cleaning $38,052 $49,726 $66,354 $66,354 $66,354 $66,354

R&M $16,362 $28,600 $28,600 $28,600 $28,600 $28,600

Utilities - Common $57,385 $57,385 $57,385 $57,385 $57,385 $57,385

Utilities - TE $0 $0 $0 $0 $0 $0

Landscaping $20,400 $20,400 $20,400 $20,400 $20,400 $20,400

Security $12,688 $12,688 $12,688 $12,688 $12,688 $12,688

Elevator $25,500 $25,500 $25,500 $25,500 $25,500 $25,500

Management $75,030 $75,030 $75,030 $75,030 $75,030 $75,030

Valet Parking (leases do not require) $25,000 $25,000 $25,000 $25,000 $25,000 $25,000

Insurance $60,000 $60,000 $60,000 $60,000 $60,000 $60,000

Real Estate Taxes $296,179 $302,103 $308,145 $314,308 $320,594 $327,006

Total Operating Expenses $626,596 $656,432 $679,102 $685,265 $691,551 $697,963

Net Operating Income $755,422 $1,180,289 $1,819,461 $1,827,764 $1,836,233 $1,844,871

Leasing & Capital Costs

Tenant Improvements*** $0 $466,960 $665,120 $280,000 $0 $0

Leasing Commissions**** $0 $75,881 $108,082 $457,500 $0 $0

Reserves

Total Leasing & Capital Costs $0 $542,841 $773,202 $737,500 $0 $0

Cash Flow Before Debt Service $755,422 $637,448 $1,046,259 $1,090,264 $1,836,233 $1,844,871

***At $40 psf & $10 for repainting of Commerica Re-lease

****%5 leasing commission for small space-2% for bank renewal at $25 psf base



MARKET LEASING ASSUMPTIONS

Basic Data

Analysis Start Date: October 1, 2019

Analysis Hold: (Years) 5

General Inflation 2%

Market Rent Inflation: 0

General Vacancy 5%

Management Fee: 3%

Operating Expenses: (as %of Gross) 27%

Real Estate Taxes: $4.29

Market Leasing Assumptions

Market Rents: $28.00

Renewal Probability: 85%

Downtime Between Leases: (months) 3

Rent Abatements:

New / Renewal (months) 3

Leasing Commissions:

New / Renewal: 3%

Tenant Improvements:

New / Renewal: $40.00

Market Rent Steps: 0

Expense Recoveries: $12.00

Tenant Electric: 0

Lease Term: (years) 5

Remaining TI / LC and Free Rent: 0

Lease Up of Vacant Space:

Available Space: (s.f.) 28,302

Quarters to Lease: 2

Leasing Starts: 6/1/2020


OPERATING EXPENSES

CURRENT OPERATING EXPENSES PROFORMA

Cleaning 95,039 66,488

R&M (1) 28,600 28,600

Utilities (2) 57,385 57,385

Landscaping (3) 20,400 20,400

Security 12,688 12,688

Elevator 25,500 25,500

Management (4) 75,030 75,030

Valet Parking (5) 25,000 25,000

Insurance 60,000 60,000

Real Estate Taxes 296,179 296,179

TOTALS 695,821 667,270

Note 1: On site Manager + equip and materials

Note 2: Common area only - Tenant s individually metered

Note 3: Contract

Note 4: Based on Market

Note 5: Tenant provided but not required by leases


STACKING PLAN

Documents

1675 Military Trail Boca Raton, FL - images1.loopnet.com€¦ · A Division of Kay Realty Services, LLC 1989 Jumping Brook Road Phone: 732-918-1148 Fax: 732-918-1628 [email protected]