OFFERING MEMORANDUM - LoopNet...With over 2.7 million passengers annually, Orlando Sanford International Airport (SFB) is ranked among the 100 busiest airports in the U.S. Foreign

OFFERING MEMORANDUM

3-TENANT PROPERTY | BANKUNITED, CARESPOT & NEW SMILE DENTISTRY510 & 512 E. ALTAMONTE DRIVE | ALTAMONTE SPRINGS (ORLANDO), FLORIDA

CBRE, Inc. | Licensed Real Estate Broker

Capital Markets | Net Lease Properties

EXCLUSIVELY MARKETED BY

RAY ROMANOFirst Vice PresidentCBRE | Capital MarketsNet Lease Properties

MARK DRAZEKSenior Vice President CBRE | Capital MarketsNet Lease Properties

For further information:+1 407 404 [email protected]


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INVESTMENT SUMMARY

2AREA OVERVIEW

5PROPERTY DESCRIPTION

Investment Highlights City OverviewLocal & Regional Maps

Property DescriptionProperty Photographs

Aerial Photographs

Tenant Descriptiona

13TENANT SUMMARIES

Altamonte Dr (60,500 AADT)

Altamonte Mall

Palm

Spr

ings

Rd

(22,

500

AA

DT)

Florida Hospital Altamonte

CHASE

SUBJECT

STARBUCKS

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BANKUNITED, CARESPOT & NEW SMILE DENTISTRY | ALTAMONTE SPRINGS, FL

BankUnited | 510 East Altamonte Drive

ANNUAL RENT: $198,000

TENANT: BankUnited

LEASE TERM: 16 years remaining on 20 year lease

LEASE COMMENCEMENT: May 1, 2013

LEASE EXPIRATION: April 30, 2033

OPTIONS: (4) 5-year options

RENTAL INCREASES: 10% every 5 years including options

LANDLORD OBLIGATIONS: None – Absolute NNN

EXISTING FINANCING: No debt to assume

BUILDING SIZE: 3,025± SF

DRIVE-THROUGH LANES: 3 lanes

YEAR BUILT: 2013

INVESTMENT SUMMARY

3-Tenant Investment Property SummaryPURCHASE PRICE: $6,590,000

TOTAL NOI: $367,381.32

CAP RATE: 5.57%

BUILDING SIZE: 7,802± SF / 2 Buildings

LAND SIZE: 1.01± acres

PARKING SPACES: 50 spaces (10.4 spaces per 1,000 SF)

CareSpot & New Smile Dentistry | 512 East Altamonte Drive

ANNUAL RENT: CareSpot $115,848.84*New Smile Dentistry $53,532.48*

LEASE TERM: CareSpot – 2 years remaining on 7 year leaseNew Smile Dentistry – 1 years, and 3 months remaining on 5 year lease

LEASE COMMENCEMENT: CareSpot – July 1, 2013New Smile Dentistry – September 1, 2014

LEASE EXPIRATION: CareSpot – June 30, 2020New Smile Dentistry – August 31, 2019

OPTIONS: CareSpot – (4) 5-year optionsNew Smile Dentistry – (4) 5-year options

RENTAL INCREASES: CareSpot – 10% every 5 years including optionsNew Smile Dentistry – 10% at each option period

LANDLORD OBLIGATIONS: Common area maintenance items fully reimbursed by tenants

EXISTING FINANCING: No debt to assume

BUILDING SIZE: 4,777± SF (CareSpot 3,167± SF, New Smile Dentistry 1,610+ SF)

YEAR BUILT: 2013

*The current rental rates for both tenants are estimated to be 20% below the currentmarket rate.

Investment Highlights• Prime retail location – Across from the highly successful General

Growth Properties’ “Altamonte Mall”

• BankUnited’s lease has just under 15 years of term remaining

• BankUnited (NYSE: BKU) has over $30.4 billion in total assets

• Strong deposits of over $91 million as of June of 2017

• Fixed rental increases

• CareSpot and New Smile Dentistry rental rates are below market

• BankUnited maintains their property

• Tenants in multi-tenant reimburse 100% expenses

• Land and building lease structure allowing for depreciation no debtto assume

• FLORIDA HAS NO STATE INCOME TAX

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AREA OVERVIEW

Seminole CountyWith a business climate that has fostered quality development, this county has become home to a plethora of equally dynamic corporations.

Industry growth in Seminole has taken several forms. Most notable is the establishment of corporate headquarters, such as American Automobile Association (AAA), Mitsubishi Hitachi Power Systems, Scholastic Book Fairs and Sears Home Improvement Products, as well as the emergence of many high tech companies, including CuraScript, NCR, Faro Technologies, Deloitte IT Consulting and Convergys. On-going expansion at the Orlando Sanford International Airport (SFB), coupled with the state’s largest foreign trade zone designation, has helped SFB become the third most active international airport in Florida and the 12th most active in the United States.

Seminole County has prepared for growth with everything from a new expressway to pre-approved development sites, specialized job training and infrastructure incentives. The county’s public-school system is rated among the highest in the state, and the median household effective buying income is the highest in the region.

AIRWith over 2.7 million passengers annually, Orlando Sanford International Airport (SFB) is ranked among the 100 busiest airports in the U.S. Foreign Trade Zone (FTZ) #250 is the largest in the state with geographic boundaries encompassing SFB as well as the Port of Sanford, Sanford Central Park and various other industrial parks and sites throughout Seminole County. The FTZ offers duty and tariff exemptions

DEMOGRAPHICS: 1-Mile 3-Mile 5-Mile

2017 Population 15,302 88,612 236,313

2022 Population 15,975 92,907 249,594

Percent Pop Change: 2010 to 2017 0.99% 0.88% 1.03%

Percent Pop Change: 2017 to 2022 0.86% 0.95% 1.10%

Percent HH Change: 2010 to 2017 0.93% 0.78% 0.95%

2017 Average Household Income $64,983 $73,761 $76,718

Average Household Size 2.00 2.30 2.38

Daytime Employment (Total Employees)

11,993 77,941 140,395

distance to

119Jacksonville

miles

8Downtown

Orlando

miles 81Tampa

miles

45Daytona

Beach

miles

209Miami

miles

5Winter Park

miles

on imported materials used in the manufacturing of products for export. SFB is also home to the 395-acre Orlando Sanford Airport Commerce Park which offers rail service and is easily accessed by major roadways including the Central Florida GreeneWay.

RAILOrlando’s first commuter rail transit system, SunRail is a $615 million investment that stretches 31 miles from Debary, the north end of the Orlando region, to south Orange County near the Orlando International Airport (MCO). The second phase, which will extend the line further north in Volusia County and south into Osceola County, will include five more stations that cover an additional 30 miles. Also forthcoming is the Brightline train, a $2.2 billion investment, which will use the existing Florida East Coast Railway corridor and build new track along State Road 528 between Cocoa and Orlando. The Miami to Orlando route will open for service in 2017.

INTERSTATES/ROADWAYSThe core of the Orlando region’s unmatched infrastructure is strong roadways, providing invaluable connectivity to business. To improve our economy and enhance livability even more, the region’s main thoroughfare, Interstate 4, is getting a 21-mile makeover, a $2.3 billion investment that will connect the Gulf of Mexico to the Atlantic Ocean.

Source: Orlando Economic Development Commission

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Orlando, FLDECREASING VACANCY IS CREATING DEMAND FOR NEW CONSTRUCTION

Figure 1: Total Vacancy –vs– Average Direct Asking Lease Rate (NNN)

The direct vacancy rate for the Orlando retail market at the close of Q3 2016 was 5.7%. That is 10 basis points (bps) lower than the previous quarter’s rate, and 80 bps below the rate recorded in Q3 2015.

In Q3 2016, the average asking rental rate was $14.52 NNN per sq. ft., a $0.61 year-over-year decrease. The asking rental rates ranged from a minimum of $11.35 to a maximum of $17.02 NNN per sq. ft. across the Orlando market.

Q3 2016 finished with 269,761 sq. ft. of net absorption. The pace of net absorption decreased for properties over 2,500 sq. ft. in the third quarter compared to the previous quarter.

Currently there are 35 retail buildings under construction for a total of 591,908 sq. ft. The largest being a 76,000 sq. ft. neighborhood center in Orange County on North Orlando Avenue in Winter Park.

DIRECT VACANCY5.7%

LEASE RATE$14.52PSF

NET ABSORPTION270,000 SF

UNDER CONSTRUCTION592,000 SF

*Arrows indicate year-over-year change.

MARKETVIEW

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Q4 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q3 2016

Asking Rate ($/SF) Vacancy (%) Vacancy Rate Average Asking Lease Rate

Decreasing vacancy is creating demand for new construction

Orlando Retail, Q3 2016

© 2016 CBRE, Inc. | 1

Direct Vacancy 5.7%

*Arrows indicate year-over-year change.

Lease Rate $14.52 PSF

Net Absorption 270,000 SF

Under Construction 592,000 SF

Source: CBRE Research, Q3 2016.

The direct vacancy rate for the Orlando retail market at the close of Q3 2016 was 5.7%. That is 10 basis points (bps) lower than the previous quarter’s rate, and 80 bps below the rate recorded in Q3 2015. In Q3 2016, the average asking rental rate was $14.52 NNN per sq. ft., a $0.61 year-over-year decrease. The asking rental rates ranged from a minimum of $11.35 to a maximum of $17.02 NNN per sq. ft. across the Orlando market. Q3 2016 finished with 269,761 sq. ft. of net absorption. The pace of net absorption decreased for properties over 2,500 sq. ft. in the third quarter compared to the previous quarter.

Figure 1: Total Vacancy –vs– Average Direct Asking Lease Rate (NNN)

Q3 2016 CBRE Research

Currently there are 35 retail buildings under construction for a total of 591,908 sq. ft. The largest being a 76,000 sq. ft. neighborhood center in Orange County on North Orlando Avenue in Winter Park. Population growth, strong consumer spending and tourism are helping to propel demand for retail space. With Orlando International Airport breaking their record of 40 million passengers and continuous job growth within the MSA, new retail development should increase, especially along core commuting routes. These improving fundamentals will continue to make Orlando an attractive destination for new and expanding retailers over the long term.

Population growth, strong consumer spending and tourism are helping to propel demand for retail space. With Orlando International Airport breaking their record of 40 million passengers and continuous job growth within the MSA, new retail development should increase, especially along core commuting routes. These improving fundamentals will continue to make Orlando an attractive destination for new and expanding retailers over the long term.

Source: CBRE Research, 1Q 2016

Orlando Number One in U.S. for Job GrowthOrlando led the nation in job growth with 52,200 jobs created in the 12 months ending in December 2015, according to revised data released by the U.S. Department of Labor. Employment growth in 2015 came in at a revised 4.6 percent, making Orlando the fastest-growing of the 30 regions in the country with an employment base of at least one million jobs.

The revised 2015 total is Orlando’s highest annual gain since 2004, extending a run of recent growth that now brings total net gains since early 2010 to almost 215,000 jobs, far surpassing the 120,000 lost during the recession. The revised count means the region added an average of close to 150 jobs per day in 2015, with almost all major industries participating. Business services was the dominant contributor at more than 44 new jobs daily, followed by the region’s headline tourism industry at 27 jobs per day.

Source: Orlando Economic Development Commission Newsroom Posted by Charlene Small on Mar 15, 2016 4:03:39 PM

AREA OVERVIEW

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regional map

local map

SUBJECT

SUBJECT

AREA OVERVIEW

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Property DescriptionLOCATION

510 & 512 E. Altamonte Drive Altamonte Springs, FL 32701

SITE

The subject property is located on heavily-traveled E. Altamonte Drive across from Altamonte Mall and Florida Hospital Altamonte.

2015 FDOT TRAFFIC COUNTS

E. Altamonte Dr (East of Property) 60,500 AADT

Palm Springs Rd (North of Property) 22,500 AADT

BUILT

The subject buildings were built in 2013.

LAND AREA

The Property consists of one (1) parcel totaling approximately 1.01 acres of land area.

BUILDING AREA

The subject consists of two (2) retail buildings totaling approximately 7,802 square feet of net rentable area.

Building 1: One-tenant building occupied by BankUnited totaling approximately 3,025 square feet.

Building 2: Two-tenant building occupied by CareSpot and New Smile Dentistry totaling 4,777 square feet (CareSpot 3,167± SF, New Smile Dentistry 1,610± SF).

PARKING

The Property provides 50 parking stalls which equates to 10.4:1,000 SF parking ratio.

PROPERTY DESCRIPTION

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PROPERTY PHOTOGRAPHS

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PROPERTY PHOTOGRAPHS

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SITE PLAN

New Smile Dentistry

SITE PLAN

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Florida Hospital Altamonte

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AERIAL PHOTOGRAPHS

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Downtown Orlando

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Altam

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Altamonte Mall

Palm Springs Rd (22,500 AADT)CHASE

SUBJECT

STARBUCKS

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TENANT PROFILE

AERIAL PHOTOGRAPHS

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Bank United: www.bankunited.comNYSE: BKU

BankUnited, N.A. is a national bank and wholly-owned subsidiary of BankUnited, Inc. (NYSE: BKU) and is headquartered in Miami Lakes, Florida. As of March 31, 2018, BankUnited N.A. has $30.4 billion in total assets, 87 branches in 15 Florida counties and 6 banking centers in the New York metropolitan area. One of the largest independent depository institutions headquartered in Florida by assets, BankUnited provides a wide range of commercial and consumer banking services.

CareSpot: www.carespot.com

As an integral part of the Baptist Healthcare System, CareSpot offers a broad variety of walk-in and scheduled services for urgent care, well care, and occupational health. With 29 locations throughout Florida, extended hours, and convenient online and mobile tools, CareSpot is making everyday healthcare even easier. Care for flu, infections, migraines, sprains, cuts, bruises, burns, minor illnesses and other non-life-threatening conditions is available, as well as physicals and immunizations. Additionally, X-rays, IVs, and lab testing are all available on-site.

New Smile Dentistry: www.newsmiledentistry.net

New Smile Dentistry is the area’s premier name in dentistry. The company is committed to providing quality care and the most state-of-the-art dental treatment available for every family member. New Smile Dentistry makes it more convenient and affordable than ever to get quality dental care for the entire family. Services include Cosmetic Dentistry, Dental Bridges, Dental Crowns, Dental Implants and Oral Surgery Extractions.

TENANT DESCRIPTIONS

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AFFILIATED BUSINESS DISCLOSURE

CBRE operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

CONFIDENTIALITY AGREEMENT

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the property or the owner of all Property (the”Owner”), to be all-inclusive or to contain all or part of the information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors being the control of the Owner and CBRE,Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CBRE, Inc., nor any of their respectful directors, officers, Affiliates or representatives make an representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

DISCLAIMER

©2018 CBRE, Inc. The information containing in this document has been obtained for sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property, The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the Property of their respective owners.

CONFIDENTIAL MEMORANDUM & DISCLAIMER

© 2018 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.CBRE, and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.

EXCLUSIVELY MARKETED BY

MARK DRAZEKSenior Vice PresidentCBRE | Capital MarketsNet Lease Properties

For further information:+1 407 404 [email protected]


RAY ROMANOFirst Vice PresidentCBRE | Capital MarketsNet Lease Properties

Documents

OFFERING MEMORANDUM - LoopNet...With over 2.7 million passengers annually, Orlando Sanford International Airport (SFB) is ranked among the 100 busiest airports in the U.S. Foreign