Creative Office...82 NE 26th StrEEt, MiaMi, FL 33137 offering memorandum Creative Office | Wynwood | Multi-enant t investment Offering aCtuaL PhOtO Creative Office WatCh ViDEO tOur

82 NE 26th StrEEt, MiaMi, FL 33137

Creative Office | Wynwood | Multi-tenant investment Offeringoffering memorandum

aCtuaL PhOtO

Creative Office WatCh ViDEO tOur

https://vimeo.com/392318884

2This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ZaB0390160

EXECUTIVE SUMMARY

■ 100% Occupied | Home to Tenants’ Corporate Headquarters

■ Exceptional Urban Infill Location

■ Epicenter of Wynwood District

■ Rare & Unique Investment Opportunity in The Heart Of Wynwood

■ Wynwood (Miami’s Art District) is recognized as one of the “Coolest Neighborhoods in the World”

■ Favorable Zoning | Covered Land Play | Potential Future Development

■ Surrounded by Significant Development

■ Unmatched Access and Proximity to Macarthur Causeway, Interstate-95, 195, 395, and Dolphin Expressway (FL-836), and major highways

■ Close proximity to major hubs including Miami’s Health District, CBD, Brickell, Downtown, Midtown, and minutes away from Miami Beach

■ Adjacent to Proposed Tri-Rail Train Station

Investment HIgHlIgHts

Investment OvervIewMarcus & Millichap is pleased to present an exceptional opportunity to acquire the Fee Simple interest for this Trophy Net Leased Creative Office in the heart of Miami’s most vibrant district – Wynwood. The subject property is comprised of 31,334 square feet of gross leasable area and sits on a .77 Acre Parcel currently zoned T5-0 allowing for future development.

The subject property is 100 percent occupied and home to the Corporate Headquarters of four internationally recognized tenants. The tenants; Fridababy, Fluent, Outform, and Itopia boast an excellent lineup of E-Commerce Retailers, Medical Cannabis Service Providers, Marketing, and IT / Cloud Solution providers.

Strategically located in Miami’s fastest booming and hottest submarket, the property is expected to see significant appreciation while offering an investor substantial cash flow. The Creative Office also benefits from its proximity to NW 2nd Avenue and North Miami Avenue; the area’s two main commercial corridors and some of Miami’s busiest thoroughfares. The location provides easy access to the Macarthur Causeway, Interstate-95, 195, 395, the Dolphin Expressway (FL-836) and several other major highways. Furthermore, this incredible location will soon be home to the proposed Tri-Rail Train Station which will serve tourists, commuters, and locals traveling to and from the local area. It’s also within a short distance to Downtown Miami, Midtown Miami, Brickell, Miami’s Health District, Miami’s CBD, and minutes away from the world-famous Miami Beach.

Wynwood is Miami’s Art District and home to hundreds of the city’s best restaurants, cafes, shops, and entertainment venues. Nationally recognized around the world, Wynwood has been rapidly transforming from a tourist destination to a full live-work-play community. In the past year, Wynwood has seen a surge of new development projects that are attracting a specific demographic, inclusive of creative companies and residents looking to cluster within this unique market and overall environment. Today, Wynwood is expected to deliver or in the planning/construction stages for +/- 500,000 square feet of office space, another +/- 400,000 square feet planned, over 1M square feet of existing retail space and another 600,000 square feet in the pipeline.

Absorption rates are some of the highest in Miami, making Wynwood a booming market in which to invest with tremendous future potential.

This opportunity is highly desirable and functional in its current use, however, provide for future development under its favorable zoning designation. A new investor can enjoy great returns while the surrounding development continues to appreciate values and rental rates.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ZaB0390160

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PRICING AND FINANCIAL ANALYSIS

Creative Office 82 NE 26th StrEEt, MiaMi, FLOriDa, 33137

PrOPErty DEtaiLS FiNaNCiaL OVErViEW

thE OFFEriNg

Lot Size 33,460 SF (.77 Acres)

Rentable Square Feet 31,284 SF

Price/SF $712.48

Year Built 1924

List Price $22,289,120Down Payment 100% / $22,289,120

Cap Rate 5.00%

Type of Ownership Fee Simple

tENaNt SuMMary

tenant Name Suite Square Feet % Bldg Sharerent per

SQ. Fttotal rent per year

Lease type renewal Options

Fluent 107, 109, 110, 111 6,211 19.85% $25.09 $217,951.57 NNN Two 3-Year

Outform Office & Warehouse 6,360 20.33% $31.35 $199,379.87 NNN One 3-Year

Itiopia Space #2 2,645 8.45% $35.01 $92,609.35 NNN One 1-Year

Fridababy Office, 113 and storage 16,068 51.3% $37.62 $604,515.46 NNN One 3-Year

total 31,284 $1,114,456

year NOi Cap rate year NOi Cap rate

2021 $1,149,418.24 5.16% 2026 $1,337,337.29 6.00%

2022 $1,179,058.27 5.29% 2027 $1,377,498.61 6.18%

2023 $1,223,889.67 5.49% 2028 $1,418,823.57 6.37%

2024 $1,260,606.36 5.66% 2029 $1,431,388.27 6.56%

2025 $1,298,424.55 5.83% 2030 $1,505,229.92 6.75%

Estimated 10 year Cash Flow


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tenant Suite term Period Commencement Expiration rent Options

Fluent 107 Initial Term 11/1/2017 2/28/2020 $24,951.60 Two 3-Year

Month to month - - $25,464.60

109-110 Initial Term 11/1/2017 2/28/2020 $102,387.72 Two 3-Year

Option 1 - year 1 3/1/2020 2/28/2021 $105,971.29

Option 1 - Year 2 3/1/2021 2/28/2022 $109,680.29

Option 1 - Year 3 3/1/2022 2/28/2023 $113,519.10

Option 2 - Year 1 3/1/2023 2/28/2024 $117,492.26

Option 2 - Year 2 3/1/2024 2/28/2025 $121,604.49

Option 2 - Year 3 3/1/2025 2/28/2026 $125,860.65

111 Initial term 4/1/2017 4/1/2022 $86,515.68 N/A

PrOPErty rENt Data

Fluent is a leading Florida based medical cannabis company with a mission to deliver the highest standards of cannabis care from nursery to lab to shelf. The company currently operates cultivation, processing, and dispensary facilities in Florida, Texas, Pennsylvania, and Puerto Rico. They are the world leader in Medical Cannabis offering a number of products with plans to expand into global markets.

www.getfluent.com

Current NOi $217,951.57

current term

current term

current term

https://www.getfluent.com/

https://getfluent.com/


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Itopia space #2 Initial term 9/1/2016 10/31/2020 $92,609.35 One 1-Year

Option 1 - Year 1 11/1/2020 10/31/2021 $98,850.72

PrOPErty rENt Data

Itopia is the leading creator and provider for cloud automation software. They provide IT automation and orchestration solutions to a number of industries inclusive of finance, healthcare, education, media, and manufacturing. They also provide to some of the largest enterprises and IT service companies across the globe including Google and Windows.

www.itopia.com


current term

https://www.itopia.com/

https://www.itopia.com/


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Fridababy - Initial Term 10/1/2016 9/30/2020 $507,576.36 One 3-Year

Extended Term 10/1/2019 2/28/2020 $205,969.56

extended term 3/1/2020 9/30/2020 $570,969.48

Extended Term 10/1/2020 9/30/2021 $588,098.48

Extended Term 10/1/2021 9/30/2022 $605,741.52

Extended Term 10/1/2022 9/30/2023 $623,913.84

Extended Term 10/1/2023 9/30/2024 $645,631.20

Option 1 - Year 1 10/1/2024 9/30/2025 $710,194.32

Option 1 - Year 2 10/1/2025 9/30/2026 $738,602.09

Option 1 - Year 3 10/1/2026 9/30/2027 $768,146.18

113 Initial Term 9/15/2017 3/15/2020 $24,959.52 Two 3-Year

Option 1 - Year 1 3/16/2020 3/15/2021 $25,833.10

Option 1 - Year 2 3/16/2021 3/15/2022 $26,737.26

Option 1 - Year 3 3/16/2022 3/15/2023 $27,673.07

Option 2 - Year 1 3/16/2023 3/15/2024 $28,641.62

Option 2 - Year 2 3/16/2024 3/15/2025 $29,644.08

Option 2 - Year 3 3/16/2025 3/15/2026 $30,681.62

storage Initial term 03/01/2020 - $7,712.88 N/A

PrOPErty rENt Data

Fridababy is an international baby care product company originally founded in Sweden. Through their rapid growth they have expanded from a single product to a line of more than a dozen in over 28,000 stores. Their products range from every day uses to helping children with sickness, teething, and other adventures.

www.fridababy.com


current term

current term

current term

https://fridababy.com/

https://fridababy.com/


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Outform - Initial Term 10/1/2016 9/30/2019 $165,000.00 One 3-Year

Option 1 - Year 1 10/1/2019 9/30/2020 $170,775.00

Option 1 - Year 2 10/1/2020 9/30/2021 $176,752.13

Option 1 - Year 3 10/1/2021 9/30/2022 $182,938.45

warehouse Extended Term 3/1/2017 9/30/2019 $27,637.56 One 3-Year

Option 1 - Year 1 10/1/2019 9/30/2020 $28,604.87

Option 1 - Year 2 10/1/2020 9/30/2021 $29,606.05

Option 1 - Year 3 10/1/2021 9/30/2022 $30,642.26

PrOPErty rENt Data

Outform is a global retail company specializing in combining strategic thinking with innovative design and state of the art technology. They provide services in industrial design, displays, branded retail, and consumer interaction.Their clients include recognizable brands such as Apple, Google, HomeDepotHomeDepot, UnderArmour , Xbox, Absolute Liquors, and Bed Bath & Beyond.

www.outform.com


current term

current term

https://www.outform.com/


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LOCaL StrEEt aEriaLRESEARCH


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LOCaL StrEEt aEriaLRESEARCH


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SitEPLaN aEriaLRESEARCH


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SitEPLaNRESEARCH


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FuturE DEVELOPMENtS aEriaLRESEARCH

hotel: 1,362 rMSCondo: 990 tOtapartment: 2,396 tOt


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PrOPErty PhOtOSRESEARCH


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PrOPErty PhOtOSRESEARCH


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iNSiDE PrOPErty PhOtOSRESEARCH


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WyNWOODRESEARCH


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WyNWOODRESEARCH


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FuturE DEVELOPMENtSRESEARCH


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FuturE DEVELOPMENtSRESEARCH

POPuLatiON PrOFiLE DEMOGRAPHICS


POPULATION 1 Miles 3 Miles 5 Miles 2023 Projection

Total Population 35,463 265,328 558,567 2018 Estimate

Total Population 32,340 251,503 539,715 2010 Census


Total Population 22,621 199,708 457,318 Day time Population

2018 Estimate 51,399 405,540 824,956HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2023 Projection

Total Households 17,128 111,484 234,098 2018 Estimate

Total Households 15,028 101,851 219,583Av erage (Mean) Household Size 2.09 2.37 2.39

2010 CensusTotal Households 13,074 89,930 197,799


POPULATION 1 Miles 3 Miles 5 Miles 2023 Projection

Total Population 35,463 265,328 558,567 2018 Estimate



Total Population 22,621 199,708 457,318 Day time Population

2018 Estimate 51,399 405,540 824,956HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2023 Projection

Total Households 17,128 111,484 234,098 2018 Estimate

Total Households 15,028 101,851 219,583Av erage (Mean) Household Size 2.09 2.37 2.39



HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2018 Estimate

$250,000 or More 3.09% 2.29% 3.22%$200,000 - $249,999 2.08% 1.39% 1.72%$150,000 - $199,000 2.88% 2.35% 3.08%$100,000 - $149,000 9.13% 6.39% 7.40%$75,000 - $99,999 8.91% 6.50% 7.54%$50,000 - $74,999 14.90% 12.15% 13.45%$35,000 - $49,999 13.36% 12.70% 12.66%$25,000 - $34,999 11.10% 11.88% 11.46%$15,000 - $24,999 11.64% 15.45% 14.79%Under $15,000 22.90% 28.90% 24.69%

Av erage Household Income $65,917 $54,171 $63,524Median Household Income $39,319 $29,343 $34,064Per Capita Income $31,043 $22,271 $26,081

DEMOGRAPHICS


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Race and ethnicity The current year racial makeup of your selected area is as follows: 61.05% White, 26.53% Black, 0.06% Native American and 1.93% Asian/Pacific Islander. Compare these to US averages which are: 70.20% White, 12.89% Black, 0.19% Native American and 5.59% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 54.39% of the current year population in your selected area. Compare this to the US average of 18.01%.

housing The median housing value in your area was $255,138 in 2019, compare this to the US average of $201,842. In 2000, there were 2,314 owner occupied housing units in your area and there were 6,687 renter occupied housing units in your area. The median rent at the time was $452.

employment In 2019, there are 26,876 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 51.72% of employees are employed in white-collar occupations in this geography, and 47.46% are employed in blue-collar occupations. In 2019, unemployment in this area is 7.45%. In 2000, the average time traveled to work was 29.00 minutes.

populationIn 2019, the population in your selected geography is 32,340. The population has changed by 42.96% since 2000. It is estimated that the population in your area will be 35,463.00 five years from now, which represents a change of 9.66% from the current year. The current population is 51.73% male and 48.27% female. The median age of the population in your area is 35.04, compare this to the US average which is 37.95. The population density in your area is 10,309.62 people per square mile.

households There are currently 15,028 households in your selected geography. The number of households has changed by 66.98% since 2000. It is estimated that the number of households in your area will be 17,128 five years from now, which represents a change of 13.97% from the current year. The average household size in your area is 2.09 persons.

incomeIn 2019, the median household income for your selected geography is $39,319, compare this to the US average which is currently $58,754. The median household income for your area has changed by 72.66% since 2000. It is estimated that the median household income in your area will be $47,205 five years from now, which represents a change of 20.06% from the current year. The current year per capita income in your area is $31,043, compare this to the US average, which is $32,356. The current year average household income in your area is $65,917, compare this to the US average which is $84,609.

GeoGrAPHy: 5 mile

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

NET LEASE DISCLAIMER

CONFIDENTIALITY AND DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

nOn-enDOrSement nOtIce

ALL PrOPertY SHOWInGS Are BY APPOIntment OnLY. PLeASe cOnSuLt YOur mArcuS & mILLIcHAP AGent FOr mOre DetAILS.

exclusively listedExclusivEly listEd by:

OFFICES NATIONWIDEwww.marcusmillichap.com

RICARDO ESTEVES Associate Investments Associate Member, National Retail GroupMIAMI OFFICEOffice: (786) [email protected]

GABRIEL BRITTI Senior Vice President Investments Senior Director, National Retail GroupMIAMI OFFICEOffice: (786) [email protected]

RONNIE ISSENBERG Senior Vice President Investments Senior Director, National Retail GroupMIAMI OFFICEOffice: (786) [email protected]

Documents

Creative Office...82 NE 26th StrEEt, MiaMi, FL 33137 offering memorandum Creative Office | Wynwood | Multi-enant t investment Offering aCtuaL PhOtO Creative Office WatCh ViDEO tOur