EAST ATLANTIC AVE - LoopNet · 2019. 4. 26. · Fort Lauderdale Office Office 954.245.3417 Cell 561.213.5554 [email protected] ... any commercial tenant or lessee

EAST ATLANTIC AVEDELRAY BEACH, FL. 33483310

OFFERING MEMORANDUM

HOWARD BREGMANFirst Vice President InvestmentsDirector National Retail Group

Fort Lauderdale OfficeOffice 954.245.3417Cell 561.213.5554

[email protected] FL SL 3233326

PRESENTED BY

310 E. ATLANTIC AVENUE

DELRAY BEACH, FLORIDA 33483

CONFIDENTIALITY & DISCLAIMER

The 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. © 2017 Marcus & Millichap. All rights reserved. ACT ID: ZAA0240065

NON-ENDORSEMENT NOTICE

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. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP ADVISOR FOR MORE DETAILS.

TABLE OF CONTENTS

SECTION 1........................................PROPERTY ANALYSIS

SECTION 2...................................... FINANCIAL ANALYSIS

SECTION 3................................ COMPARABLE PROPERTIES

SECTION 4......................................... MARKET OVERVIEW

DOWNTOWN DELRAY BEACH

PHOTO CREDIT: WWW.DOWNTOWNDELRAYBEACH.COM



PROPERTY ANALYSIS

310 EAST ATLANTIC AVENUE

DELRAY BEACH, FL1

$8,000,000

310 E. ATLANTIC AVENUEDELRAY BEACH, FLORIDA 33483OFFERING HIGHLIGHTS

OFFERING PRICE

VITAL DATA

Price / SF $1,390.00

Gross Square Feet 5,753 SF

Occupancy 100%

Year Built

Number of Buildings

1940

1

Gross Leaseable Area (GLA)

Number of Stories

5,753 SF

1

Lot Size .01428 Acres

Type of Ownership Fee Simple

Number of Units 2

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Marcus and Millichap is pleased to present the Love Family Building at 310 East Atlantic Avenue in the heart of downtown Delray Beach, Florida. Offered for sale for the first time 78 years, the Love Family Building is a 5,753 square foot, two tenant trophy asset building located on the South side of Atlantic Avenue between Southeast 3rd Avenue and Southeast 4th Avenue on the premier block in prime downtown Delray Beach, Florida. Located between Urban Outfitters and Capital One Bank Cafe and one building off the corner of Atlantic Avenue and Southeast 3rd Avenue, immediate surrounding neighbors include a brand-new mixed-use development anchored by IPIC Movie Theaters, Suntrust Bank, Bank Atlantic, Kilwins Famous Chocolates, Cut 432 Steakhouse, Rocco’s Taco’s, Lemon Grass Asian Bistro, Sunglass Hut, Trattoria Romano and much more. The Love Family Building also sits directly in front of the future Delray City Market , a 120,000 square foot, four story mixed use building with a 30,000 square foot food hall with 30 world class food vendors as well as a 200 car, three level parking garage. Additionally, the Love Family Building is located within a short walking distance of Atlantic Crossing, a $300 million dollar mixed used development as well as numerous hotels such as the Aloft (opening 2019), The Seagate Hotel & Spa, Sundy House, Delray Beach Marriott, Hyatt Place Delray Beach, Residence Inn by Marriott… and is approximately half a mile to the Atlantic Ocean and world class beaches. Atlantic Avenue was also voted as one of the ten greatest urban shopping districts in America as published in the USA Today in 2017.

The Love Family Building is currently occupied by two tenants on short term leases that are currently paying less than one-third of the current market rents. The tenants are responsible for any real estate tax increase over the base year 2013 protecting a future owner from a tax escalation. There also may be an opportunity to gain control of the retail space prior to the lease expiration.

The Love Family Building offers an investor the rare opportunity to acquire a trophy asset retail building on the prime retail block of Atlantic Avenue in downtown Delray Beach, FL with tremendous upside.

► First Time on the Market in 78 years

► Prime Atlantic Avenue Location

► Below Market Rents

► Huge Upside

► National Retailer Demand for Vacancy

► 50 Feet of Direct Frontage on Atlantic Avenue

► World Class Shopping Destination

► Surrounded by Tremendous Growth and Development

► Trophy Asset

INVESTMENT OVERVIEW & HIGHLIGHTS

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FINANCIAL ANALYSIS


DELRAY BEACH, FL3

EXPENSES CURRENT PER SF PRO FORMA PER SF

Real Estate Taxes $166,113 $28.87 $166,113 $28.87

Insurance $21,250 $3.69 $21,250 $3.69

CAM

Utilities $1,300 $0.23 $1,300 $0.23

Repairs & Maintenance $2,500 $0.43 $2,500 $0.43

TOTAL CAM $3,800 $0.66 $3,800 $0.66

TOTAL EXPENSES $191,163 $33.23 $191,163 $33.23

EXPENSES PER SF $33.23 $33.23

INCOME CURRENT PER SF PRO FORMA PER SF

Scheduled Base Rental Income $151,429 $26.32 $575,300 $100.00

CAM Recoveries $168,157 $29.23 $191,163 $33.23

Effective Gross Revenue $319,586 $55.55 $766,463 $133.23

Less: Expenses ($191,163) $33.23 ($191,163) $33.23

NET OPERATING INCOME $128,423 $22.32 $575,300 $100.00

RETURNS CURRENT PRO FORMA

CAP Rate 1.61% 7.19%

F INANCIAL SUMMARY

NOTES: Current Real Estate Tax Recoveries are calculated with 2013 as the base year ($20,756).

SUMMARYPRICE $8,000,000

Gross Leaseable Area (GLA) 5,753 SF

Price/SF $1,390

Lot Size 0.1428

Year Built 1940

LOCATION:310 EAST ATLANTIC AVENUEDELRAY BEACH, FL 334833

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UNIT TENANT GLA % OF GLA LEASE COMMENCE LEASE EXPIRE CURRENT RENT/

YEAR CURRENT RENT/SF CHANGES ON CHANGES TO LEASE TYPE

STE A Tootsies 2,268 51.71% 07/01/14 01/31/21 $81,218.00 $35.81 02/01/20 $85,277.00 MG

STE B Kokonuts 2,118 48.29% 07/06/14 06/30/20 $70,211.00 $33.15 06/30/19 $72,309.00 MG

Common Area 1,367 $0.00 $0.00

Total Occupied 4,386 100.00% $151,429.00 $157,586.00

Total 5,753 100.00% $151,429.00 $157,586.00

UNIT TENANT GLA % OF GLA PRO FORMA RENT/YEAR

PRO FORMA RENT/SF LEASE TYPE

STE A Tenant 1 2,952 51.71% $295,200.00 $2,952.00 NNN

STE B Tenant 2 2,801 48.29% $280,100.00 $2,801.00 NNN

Total Occupied 5,753 100.00% $575,300.00

Total 5,753 100.00% $575,300.00

RENT ROLL DETAIL

NOTES: Common area consists of 1,367 SF is store/hallway space in the building

NOTES: Pro Forma rent based at $100 PSF NNN

CURRENT

PRO FORMA

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COMPARABLE PROPERTIES


DELRAY BEACH, FL4

PROPERTY NAME SALES PRICE LOT SIZE PRICE/SF SALE DATE

310 East Atlantic Ave., Delray Beach, FL $8,000,000 0.1428 AC $1,390.00

1 307 East Atlantic Ave., Delray Beach, FL $5,500,000 0.1217 AC $1,338.00 12/2018

SALES COMPARABLES - SUMMARY

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1

310 EAST ATLANTIC AVE.

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310 EAST ATLANTIC AVENUEDelray Beach, FL 33483

SALES COMPARABLES

SALES PRICE $8,000,000

Price/SF $1,390.58


SUBJECT PROPERTY

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SALES PRICE $5,500,000

Price/SF $1,337.55


Sale Date December 2018

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PROPERTY NAME UNIT TYPE TOTAL UNITS SQFT RENT/SF LEASE TYPE

310 East Atlantic Ave., Delray Beach, FL Retail 2 5,753 SF $34.00 MG

1 20 W Atlantic Ave., Delray Beach, FL Retail 2 17,925 SF $110.00 NNN

2 700 E Atlantic Ave., Delray Beach, FL Retail 7 21,223 SF $85.00 NNN

3 401 East Atlantic Ave., Delray Beach, FL Retail 1 2,100 SF $100.00 NNN

4 600 East Atlantic Ave., Delray Beach, FL Retail 1 4,000 SF $90.00 NNN

5 630-638 East Atlantic Ave., Delray Beach, FL Retail 1 828 SF $85.00 MG

LEASE COMPARABLES - SUMMARY

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310 EAST ATLANTIC AVE.

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LEASE COMPARABLES

UNIT TYPE SQFT RENT/SQFT

Retail 5,753 SF $34.00/MG


SUBJECT PROPERTY

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700 EAST ATLANTIC AVE.Delray Beach, FL 33483

1 220 WEST ATLANTIC AVE.Delray Beach, FL 33483


Retail 17,925 SF $110.00/NNN


Retail 21,223 SF $85.00/NNN

*New Development

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630-638 EAST ATLANTIC AVE.Delray Beach, FL 33483

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Retail 828 SF $85.00/MG

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MARKET OVERVIEW


DELRAY BEACH, FL5

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P R E S E N T E D B Y

WWW.MARCUSMILLICHAP.COM

HOWARD BREGMANFirst Vice President Investments

Director National Retail GroupFort Lauderdale OfficeOffice 954.245.3417

Cell 561.213.5554 [email protected]

License FL SL 3233326

Documents

EAST ATLANTIC AVE - LoopNet · 2019. 4. 26. · Fort Lauderdale Office Office 954.245.3417 Cell 561.213.5554 [email protected] ... any commercial tenant or lessee