20 YEAR ABSOLUTE NNN GROUND LEASE - LoopNet...Orlando International Airport (MCO) is ranked as the 2nd busiest passenger airport in Florida, the 14th busiest in the nation and the

20 YEAR ABSOLUTE NNN GROUND LEASE3951 Central Florida Pkwy. Orlando, FL 32837

ORLANDO MSA | 68 MILLION VISITORS IN 2016 | OCCC 2nd LARGEST CONVENTION CENTER IN THE COUNTRY

CENTRAL FLORIDA PKWY. 93,223 CPD

MARTIN ANDERSEN BEACHLINE EXPY.82,000 CPD

S. JOHN YOUNG PKWY.

183,129 CPD

S. JOHN YOUNG PKWY.

4

4.8 MillionYearly Visitors

54 MillionYearly Visitors

10 MillionYearly Visitors

1,500 Employees

Freedom High School& Middle School3,000 Students

Orlando International Outlets

Universal Island of AdventureThe Wizarding World

of Harry PotterUniversal Islands of Adventure

255-Acre Hotel1,501 Guest Rooms and Suites

490,000 SF Meeting/Event Space

1,456,816 Annual Visitors

2.1 Million SFExhibition Space

Lockheed Martin (NYSE: LMT)

4,500 Employees

Palms Villa Residences Condo

WaterbridgeElementary School

ARUIM GrandewoodApartment Community

306 Units

Wood Partners+300

Luxury Apartments

528

(10 Miles)

582 Rooms 998 Rooms

128 Rooms

240 Units

WAWA | ORLANDO, FL | P. 2

Property Overview

Lease Abstract

Parcel Details

Aerial Overview

Tenant Overview

Orlando MSA

Demographics

Regional Map

Daytime Population

Household Income

Confidentiality Agreement

C O L L I E R S I N T E R N AT I O N A L | 3 PA R K P L A Z A , S U I T E 1 2 0 0 | I R V I N E , C A 9 2 6 1 4 | S N Y D E R / C A R LT O N T E A M

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PROPERTY OVERVIEW


We are pleased to offer to qualified investors a brand new Wawa investment property, situated on a huge 2.5 acre lot and secured by a long-term absolute NNN lease. Located in Orlando, FL - home to Walt Disney World - the subject property is comprised of a 6,119 SF building on a large 2.5 acre corner lot along a major thoroughfare. The lease contains fixed increases every 5 years (5% after the first five years, followed by 7% increases every five years thereafter for remainder of term) as well as 6 - 5 year option periods with fixed 7% increases each option, offering a stable hedge against inflation over the long-run. The property is strategically located at the NEC of John Young Pkwy and Central FL Pkwy, between the Orlando International Airport and the area’s major theme parks, such as SeaWorld Orlando and Walt Disney World. Additionally, the property is located in close proximity to the Orange County Convention Center which is the 2nd largest convention center in the nation and brings 1.4 million attendees to the area annually. The property enjoys superb street visibility, convenient ingress/egress and ample parking, along with consistent and strong traffic flows (93,223 VPD) along Central Florida Parkway - one of the main avenues of entry into the SeaWorld Orlando Park and S. John Young Parkway - the main North/South thoroughfare in the trade area. SeaWorld Orlando hosts roughly 4,402,000 guests per year, ranking it the tenth most visited amusement park in the United States and twenty-five worldwide. Moreover, the property is surrounded by a host of hotels and resorts, including The Ritz-Carlton Orlando (582 Rooms), JW Marriott (998 Rooms), and Marriott (128). This is an excellent opportunity to purchase a newly developed Wawa asset with very strong fundamentals, a long-term absolute NNN ground lease with fixed increases backed by one of America’s strongest convenience store chains, and within an infill trade area in close proximity to SeaWorld Orlando, Orange County Convention Center, and Walt Disney World.

PRICING

List Price $7,647,000NOI $325,000CAP Rate 4.25%Taxes NNNInsurance NNNCAM NNNBrand New 2017 Construction - Zero Landlord Duties

LEASE ABSTRACT

Tenant Trade Name WawaLease Start November 28, 2017Lease Expiration November 31, 2037Lease Term 20 YearsTerm Remaining On Lease 20 YearsBase Rent $325,000

Rental Adjustments11/28/2022 - $341,250.0011/28/2027 - $365,137.5011/28/2032 - $390,697.13

Option Periods

6 - 5 Year Option Periods7% Rental BumpsEach Option Period 11/28/2037 $418,045.9211/28/2042 $447,309.1411/28/2047 $478,620.7811/28/2052 $512,124.2311/28/2057 $547,972.9311/28/2062 $586,331.03

Lease Type Ground LeaseRoof & Structure Tenant Responsible

Excellent Tenant• Investment Grade Credit Tenant - Rated “BBB+”

by Fitch (Shadow Rated)

• Wawa, Inc - Privately Held - Over $9 Billion In Revenues

• Serves Over 450 Million Customers Per Year

• Over 750 Locations with Over 23,000 Employees - Fast Growing

• One of America’s Best Large Employers - Forbes

• America’s Most Beloved Convenience Store - Market Force

Brand New Construction• Absolute NNN Ground Lease - Very Large Lot - 2.5 Acres

• New Construction - Unobstructed Visibility - Convenient Access

• 20 Year Term with Fixed Increases Every 5 Years

Steady Hedge Against Inflation

• 6 -5 Year Option Periods with 7% Increase Each Option

Rare Infill Location• Strategic Location - Corner Lot along Major Thoroughfare

Close Proximity to SeaWorld and the Orlando Convention Center

• Orlando, FL - 24th Largest Metropolitan Area in the United States

3rd Largest in Florida

• Known at the “Theme Park Capital of the World”

Over 62 Million Visitors


CENTRAL FLO

RIDA PKWY. 93,2

23 CPD

S. JOHN YOUNG PKWY.

Wood Partners+300

Luxury Apartments

Outparcel1.22 Acres

Carwash Palace

Outparcel0.91 Acres Outparcel

1.61 Acres

Proposed


306 Units

FreedomMiddle School

240 Units


Building Size6,119 SF

Land Area2.5 Acres (108,900 SF)

Year Built2017 Construction

Parcel09-24-29-3051-04-002

CENTRAL FLORIDA PKWY.

93,223 CPD

S. JOHN YOUNG PKWY.

FLORIDA’S TURNPIKE

Orlando International Airport

42 Million Annual Passengers

1,500 Employees

Freedom High School& Middle School3,000 Students


306 Units

Meadow Woods CommunityPopulation 25,600+

Palms Villa Residences Condo

Wood Partners+300

Luxury Apartments

54 MillionYearly Visitors(10 Miles)

Florida Mall

582 Rooms 998 Rooms

128 Rooms

240 Units


Wawa, Inc is the lease guarantor and currently operates over 750 stores along the east coast. Wawa is a chain of convenience stores with

revenues of over 9 Billion and over 23,000 employees. As of today, Wawa operates 110 stores in the state of Florida and plans to open

30 more in the state by the end of 2017. It expects to open roughly 30 or more stores in the state of Florida each year for the forseable

future, demonstrating Wawa’s major commitment to the region. Wawa was recently named “America’s Most Beloved Convenience Store”

by Market Force and was also recognized in Forbes as one of America’s Best Large Employers.

TENANT OVERVIEW


Wawa on Forbes Lists

#34 America’s Largest Private Companies

#146 America’s Best EmployersRevenue $9.1 Billion

Industry Convenience Stores & Gas Stations

Founded 1865

Country United States

CEO Christopher Gheysens

CFO Kevin Wiggins

Website http://www.wawa.com

Employees 28,700

Fiscal Year End Dec 31, 2016

Sales $9.08 B

Headquarters Wawa, Pennsylvania

With record-breaking visitor volume and a thriving local economy with the second-highest national population growth since 2010, the Orlando retail market has rebounded well from the downturn. Retail sales have picked up considerably, and though 2016 was down in overall transaction value from recent years, it remained strong with sales volume exceeding the historical average. After relatively stagnant rent growth throughout much of the recovery, recent years have seen strong growth levels exceeding the market’s historical average.

The strong rent growth and low vacancies encouraged developers to increase activity, resulting in an uptick in supply since 2015. Despite the increase in construction, demand remains strong and has outpaced deliveries to drive the vacancy down to levels not seen in almost a decade. Supported by a revitalization of the labor market, strong population growth, and a resurgence in tourism, Orlando retail largely has outperformed the nation since the end of the recession. Additionally, the prime spending cohort, 35–54-year-olds, is expected to grow faster here over the near term than in the National Index.

Similarly, the total population growth since 2010 has ranked amongst the best metros in the nation and the purchasing power likewise continues to grow throughout Orlando. Additionally, record levels of tourism will help to ensure retail demand growth in the metro remains one of the strongest in the nation in upcoming years. According to Visit Orlando, the City established a new record of visitors for 4 straight years, with 59.2 million visitors in 2013, becoming the first U.S. destination to host more than 60 million visitors in 2014, and then establishing new records in 2015 and 2016 of 66 million and 68 million visitors, respectively. In 2016, Orlando International Airport also established a new record by processing nearly 42 million passengers.

ORLANDO MSA | RECORD-BREAKING VISITOR VOLUME | THRIVING LOCAL ECONOMY


Orlando, FL

• 6 of the World’s Greatest Theme Parks; SeaWorld®, Discovery Cove®,

Aquatica, SeaWorld’s Water Park®, Universal Studios®,

Islands of Adventure® and Universal’s Volcano Bay™

• Plus 35 Additional Thrilling Attractions

• 4 Entertainment Complexes

• 55 Music, Comedy and Nightlife Venues

• 3 Stadium-Style Movie Cinemas

• 600+ Designer, Brand-Name and Outlet Stores

• 275+ Spectacular Restaurants

• 120+ Fantastic Hotels and Resorts

• The Nation’s 2nd Largest Convention Center

Orange County Convention CenterAs the second largest convention center in the country, the award-winning Orange County Convention Center (OCCC) provides a multitude of event options in two beautiful facilities - the West Building and the North/South Building - for a combined offering of the following features:• 2.1 million-square feet of exhibition space• Two 92,000-square foot general assembly areas• 74 meeting rooms/235 breakouts• The 2,643-seat Chapin Theater• A 160-seat Lecture Hall• The 62,000-square foot multi-purpose Valencia Room• Three full-service restaurants/8 food courts• Three business centers• Three covered loading docks/173 truck bays• Surrounded by over 116,000 guest rooms, including over 5,000 directly connected to the facility by pedestrian bridges

ORLANDO MSA | 68 MILLION VISITORS IN 2016 | OCCC 2nd LARGEST CONVENTION CENTER IN THE COUNTRY


Population 1-MILE 3-MILE 5-MILE

Estimated Population (2017) 8,268 49,466 157,381

Projected Population (2022) 9,102 54,322 173,767

Households 1-MILE 3-MILE 5-MILE

Estimated Households (2017) 2,955 18,239 54,020

Projected Households (2022) 3,258 20,079 59,743

Income 1-MILE 3-MILE 5-MILE

Avg. Household Income (2017) $52,939 $63,286 $65,435

Median Household Income (2017) $39,191 $52,416 $49,494

Business Facts 1-MILE 3-MILE 5-MILE

Total # of Businesses (2017) 127 2,782 9,365

Total # of Employees (2017) 4,825 52,612 146,438$$



ORLANDOBusiness is Booming

Orlando named #1 in the U.S. for job growth in 2016 & 2015

68 Million Visitors Annually

Economic Impact of Over $50 Billion

Orlando is the hub of the nation’s military simulation and training

programs receiving nearly $5 Billion in contracts annually

Forbes ranks Orlando as the #3 city for future job growth

P. 13WAWA | ORLANDO, FL | P. 13

Orlando International Airport (MCO) is ranked as the 2nd busiest passenger airport in Florida, the 14th busiest in the nation and the 43rd busiest in the world making it possible for more than $50 Billion to be spent in Orlando each year.

P. 14WAWA | ORLANDO, FL | P. 14

Outparcel0.91 Acres

Wood Partners+300 Luxury Apartments


306 Units

Outparcel1.22 Acres

CENTRAL FLORIDA PKWY.

93,223 CPD

S. JOHN YOUNG PKWY.

WaterbridgeElementary School

Outparcel1.61 Acres

Proposed

Carwash Palace


Colliers International | 3 Park Plaza, Suite 1200 | Irvine, CA 92614 | Snyder/Carlton Team

Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its licensor(s) 2015. All rights reserved

This Offering Memorandum contains select information pertaining to the business and affairs of Wawa - Orlando, FL. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Colliers, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of Wawa - Orlando, FL or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.


Investment Contacts:

Eric CarltonSenior Vice PresidentLicense No. [email protected]

Jereme SnyderExecutive Vice PresidentLicense No. [email protected]

Broker of RecordScott CorbinManaging DirectorLicense No. [email protected]

Documents

20 YEAR ABSOLUTE NNN GROUND LEASE - LoopNet...Orlando International Airport (MCO) is ranked as the 2nd busiest passenger airport in Florida, the 14th busiest in the nation and the