SAND LAKE CORNERS NORTH - images1.loopnet.comimages1.loopnet.com/d2/xMW4dKNe_zQpqNlUGF4PcsLqWJYD6ktXZX… · Roadhouse, Wendy’s Dunkin Donuts/Five Guys, Speedway. Financing to be

SAND LAKE CORNERS NORTH8115 – 8379 S John Young Pkwy, Orlando, FL

Prepared by

Executive Summary John F. BellManaging DirectorD: 305.808.7820 | M: [email protected]

PRIMARY CONTACT

Dominant Community Center in South Orlando Florida’s Famous Retail Tourist Corridor

Serves all of South OrlandoWell Leased - 95.3%

EXECUTIVE SUMMARY

2

The OpportunitySand Lakes Corners North is the dominant community center in its market, shadow anchored by best in class retailers Walmart Supercenter and Lowe’s Home Improvement Store, as well as the owned anchors Old Time Pottery, PetSmart, and Dollar Tree.

The high profile, intensely travelled, intersection is surrounded by one of Orlando’s greatest concentration of class A office parks and distribution parks, providing a captive daytime demand base for retail and restaurants. The Property is at the center of a deep and expanding residential region that is the focus of residential growth for Orlando, serving as a solid foundation of demand for retail services and goods.

Moreover, Sand Lakes Corners North is at the center of the World famous Tourist Corridor and benefits from consistent and growing retail demand from free spending affluent tourists that are attracted to the Property’s familiar brands and one stop shopping options for necessity and convenience retail offered at Sand Lakes Corners North.

The exceptional triple deep demand base of established and growing residential, office and tourism clients ensures the Property’s long term success and cash flow growth as a market leading center in its community.

Excellent Cash on Cash returns due to existing loan at favorable rates and terms.

Universal Studios Expansion Site Value Effect

Sand Lake Corners North is ideally located at the doorstep of Universal Studio’s 474 acre expansion site that will inevitably be developed with entertainment and lodging creating a sea change of explosive employment drivers and growth spiking values for nearby properties. The Property stands squarely at the gateway to this important site, and can expect value increases beyond its existing successful shopping center economics.

Sand Lake Corners North

Major Tenants

Old Time Pottery 66,700 SFPetSmart 26,020 SF

Walmart Shadow AnchorLowe’s Shadow Anchor

Address 8115 - 8379 S. John Young Parkway

City, State Orlando, FL 32819

Year Built 1999, renovated 2005

Rentable Area 151,487 SF

Total Land Area 15.02 Acres

Occupancy 95.3%

Classification Community Center

In-Place NOI Year 1 $1,286,078

Proforma NOI YR 1 (Lease Up Vacancy) $1,325,029

Center of Employment Yes

Residential Growth Yes

Minimal Rollover Yes

Best Center in its Trade Area Yes

Outparcels (Shadow)

7-Eleven, Burger King, Goodyear,Denny’s. Bead Time, McDonald’s,

Discount Tires, Logan’s Roadhouse, Wendy’s Dunkin Donuts/Five Guys, Speedway

Financing to be assumed (9/2017 balance):. $11,753,154 CMBS

Class A Institutional Quality Shopping Center

S A N D L A K E C O R N E R S N O R T H

EXECUTIVE SUMMARY 3S A N D L A K E C O R N E R S N O R T H

Shadow Anchor

Anchors - Demand Drivers

Shadow Anchor

Part of Offering Part of Offering


Financing to Assume

Advantageous Interest Rate. Superior to today’s available terms.

Borrower T North Sand Lake FL, LLCLender CMBS Securitized The Bank of New York MellonLoan Type CMBS / Special Servicer LNROrigination Date February 25, 2015Principal Balance $11,850,000Current Balance 9/15/2017 $11,753,154Maturity Date March 6, 2025Term 10 YearAmortization Period 30 YearAnnual Debt Service March 6, 2017Interest Rate [1] 4.06%Debt Service $56,984.38/ Month - $683,812.56/YR

1- Interest calculation is based on an Actual/360 Basis

Sand Lake Corners NorthLoan Information

CLICK HERE FOR VIRTUAL TOUR

Virtual Tour

https://youtu.be/1koad8FP3vY



EXECUTIVE SUMMARY 6W I N T E R S P R I N G S T O W N C E N T E R

Major Owned Anchors

66,700 SF

26,020 SF

Old Time Pottery is a huge success drawing shoppers from throughout South Orlando.

Attracts in-line tenants to draft off its success and impressive customer reach.

Old Time Pottery Expands the Property’s trade area.

Sand Lakes Corners North

EXECUTIVE SUMMARY 7

Shadow AnchorsSuper Walmart and Lowe’s create a regional customer draw for the center, enhancing the destination retail attributes of the center.

Quality in-line tenants seek to co-locate next to these successful, best in class retailers.

Sand Lakes Corners North



Southridge Office Park 1.2 MSF

One Blood

Island One Resorts

Central Jeep

Extended Stay America

Hotel

GATEWAY TO UNIVERSAL ORLANDO RESORT’S 474 ACRE EXPANISON SITE

Destination PKWY

482

91

SouthPark Center2.9 MSF Office Park

BEAD TIME

Sand Lake Corners North “The Offering””

Infinity Park Mixed Use200 Acre Business Park

Build to Suit

Southeast View

GATEWAY TO

UNIVERSAL

EXECUTIVE SUMMARY 9

Widely Recognized National BrandsMarket leading anchors distinguish the center as the area’s dominant destination community center, drawing customers from throughout South Orlando and the Tourist Corridor, as well as from the highly concentrated employment base of nearly 12,000 employees surrounding the Property. There are also 11 outparcels that attract customers to the renowned center.

S T R O N G A N C H O R S

PAT H O F G R O W T H

D E E P D E M A N D B A S EHigh Spending Tourists, Workers, ResidentialA unique triple component demand foundation at the center of an expanding residential base, encompassing one of Orlando’s largest concentration of employment, and is also at the epicenter of the World famous Tourist Corridor’s 66.1 million visitors that supply an affluent base of free spending shoppers.

Core QualityOpportunity

KEY VALUE DRIVERS

Universal Studios 474 Acre Expansion SiteThe Property is at the Gateway to Universal’s mixed use site predicted for theme park expansion, entertainment, and residential uses. The development of this site will ultimately transform values at properties like Sand Lake Corners North beyond the economics of existing uses.

EXECUTIVE SUMMARY

Widely Recognized National Brands Attract Consumers



View to South Key location at entrance to Universal Expansion Site and center of business parks.

482

91

Universal 474 AcreExpansion Site

Darden HQ6,149 Employees


BEAD TIME


Thriving Market & Growing Demand BaseThe robust Tourist Corridor’s rising rents and tightening 4.2% vacancy rate success is driven by demand from free spending tourists with reported average incomes of $93,000 whose second favorite activity while on vacation is shopping. The deep surrounding residential demand base and daytime employee population of 11,706 within a five mile radius enhances an extraordinarily diverse consumer base.

Core Quality - Returns ConfidenceSand Lake Corners North is an institutional quality community center with approximately 75% of its rent roll secured by well known brands that create a destination dynamic. Cash flow is extremely strong and predictable.

Key Investment Highlights

Gateway to Universal’s Expansion SiteThis game changing prospective development is sure to result in value spikes for nearby Properties.

Stable Cash Flow – Minimal Rollover Three tenants rolling all highly likely to renew.

Eleven Outparcels Significant Draw7-11, Burger King, Goodyear, Denny’s, Bead Time, McDonald’s, Discount Tire, Logan’s Roadhouse, Dunkin Donuts / Five Guys, Wendy’s and Speedway.

Below Market RentsMost of the Property’s rents are below market with upside, or have below market options with a high likelihood of renewal. Old Time Pottery’s (66,700 SF / 44% of center) rent is substantially below market with below market options. Substantial upside if tenant unexpectedly vacates. Provides investors underwriting comfort and stability.

EXECUTIVE SUMMARY 12

Sand Lake Corners NorthTENANT DEMAND DRIVERS

As the Dominant Community Center for its trade area, it is a true “One Stop Shopping” destination serving the surrounding highly concentrated and diversified demand base of residential, office tenants, and high spending tourists.

TOURISM: Affluent tourists with incomes of $93,000 rank shopping high on their vacation to do lists. Orlando set a record in 2015 with 66.1 million visitors, and continued to grow in 2016. As tourism booms, further growth in spending is expected. The Property has a prominent location on the direct pathway from the Airport to the Tourist District.

High Profile Corner/Excellent Traffic Count of 42,885 on Sand Lake Road and 54,901 on S. John Young Parkway.

BUSINESS: Orlando’s major surrounding concentration of office and industrial employees provides a consistent daytime consumer base for necessity and restaurant retailers found in abundance at the Property.

RESIDENTIAL: Nearby high income residential neighborhoods of Hunter’s Creek, Bay Hill/Dr. Phillips, Conroy Chain-of-Lakes, and the expanding Lake Nona area is a diversified and growing residential base.

Nationally recognized anchors including Walmart, Lowe’s, Old Time Pottery, PetSmart, and Dollar Tree draw tenants from throughout South Orlando. Eleven developed outparcels with nationally recognized tenants also draw shoppers.



View to East



Strong Economic Demographics5 Mile Residents 1 / 3 MILE AHHI

191,377DEEP TRADE AREA. UPWARD TRENDING HOUSEHOLD INCOMES.

$46,370 / $62,083

Diversified triple deep demand base of a dense surrounding full time residential population, free spending tourists, and adjacent major office and industrial employment centers significantly boost daytime shopping demand.

Area 2010 2016 20212016-2021

ann. grow th1-mi Radius 19 20 22 1.92%

3-mi Radius 50,486 55,292 60,316 1.75%

5-mi Radius 175,610 191,377 208,565 1.73%

Orange County 1,145,956 1,279,744 1,405,306 1.89%

Orlando MS A 2,134,411 2,371,879 2,597,669 1.84%

Florida 18,801,310 20,108,440 21,436,087 1.29%

Population

Area 2016% over $100k 2021

% over $100k

2016-2021 ann. grow th

1-mi Radius $41,217 11.1% $48,219 11.1% 3.19%

3-mi Radius $46,370 6.9% $49,898 8.1% 1.48%

5-mi Radius $62,083 15.4% $67,881 18.0% 1.80%

Orange County $70,686 20.7% $78,309 24.6% 2.07%

Orlando MS A $70,127 20.2% $77,449 23.9% 2.01%

Florida $69,330 19.4% $76,369 22.8% 1.95%

Average Household Income

66.1 Million TouristsA New Record

$93,000 Tourist Income96,089 Employees 3 Miles

Demand Type 3 Miles 5 Miles

Residential Population

55,292 191,377

Residential Household Income

$46,370 $62,083

Number of Businesses

5,516 11,706

Employees 96,089 182,530

Tourist Income $93,000 $93,000

Orlando Tourists 66.1 million 66.1 million

Key Retail Demographics

Dynamic / Diversified Retail Demand Base



91

Darden HQ6,149 Employees Lockheed Martin

7,000 EmployeesRosenCreekResort

Universal 474 AcreExpansion Site

21,000 Employees19 million visitors


SouthPark Center2.9 MSF Office Park

I-DriveTourist Corridor

Sand Lake Corners North“The Offering””

SeaWorld6,032 Employees

Infinity Park Mixed Use200 Acre Business Park

Build to Suit

Major Employment Center • Employees serve as a significant daytime retail demand base.

• Sand Lake Corners North is ideally situated at the epicenter of an expanding employee demand base.

• Employee purchasing power creates diversified demand beyond the solid base of full time residential and high spending tourists.

• Many of Orlando’s Top Employers are located in the Property’s Trade Area.

Demand Type 3 Miles 5 Miles

Businesses 5,516 11,706Employees 96,089 182,530

Tourist Income $93,000 $93,000

Orlando Tourists 66.1 million 66.1 million

Business & Tourism Demos


Rank Company Employees

1 Walt Disney World Resort 74,000

2 Universal Orlando (Comcast) 21,000

5 Orlando International Airport 18,000

8 Lockheed Martin 7,000

9 Darden Restaurants 6,149

10 SeaWorld Parks & Entertainment 6,032

11 Rosen Hotels & Resorts 4,526

13 Westgate Resorts 3,992

14 Wyndham Vacation Ownership 3,509

16 Hilton Grand Vacations Club 3,078

21 Mears Transportation 2,825

23 Loews Hotels 2,756

26 Marriott Vacations Worldwide 2,593

27 Starwood Hotels & Resorts 2,375

31 Southwest Airlines 2,200

Orlando's Top 75 Employers in Trade Area

Sand Lake Corners NorthEMPOLOYEES ARE RETAIL DEMAND DRIVERS


Sand Lake Corners North’s trade area is at the center of Orlando’s major tourist destinations such as Universal Studios, the International Drive tourist corridor, Sea World and the Florida Mall. In addition, Disney World is located approximately 10 miles to the south by expressway.

Tourists are significant shoppers in the trade area contributing to retailer sales growth, diversifying the already broad demand base. A new tourism record of 66.1 million visitors to Orlando occurred in 2015, with the increase in tourism directly related to growth of incomes for the neighboring full time residential population. Affluent tourists rank shopping high on their to do list, are free spenders, and boost retail sales in the market.

Tourism continues to boom, expanding retail sales and increasing disposable income in Sand Lake Corners North’s retail population base.

In addition, Universal invested in a 474 acre expansion site, which the Property is at its doorstep. Expected to be a combination of entertainment and lodging on a dramatic scale, it will transform the value of properties like Sand Lake Corners North significantly beyond justification of current economics. A tremendous redevelopment exit value spike could be anticipated for Sand Lake Corners North.

Universal Studios is the fastest growing theme park in the USA – attendance growing at an impressive 16% during 2015.• By comparison, average growth for all US parks was 5.9% and Magic Kingdom at 6.0%.

Tourism: Growing & Driving Retail Sales

Two major malls in the immediate area of the Property are significant tourist and local population draws to the market.

The Florida Mall at 1.9 Million SF is the largest in Central Florida, with Sand Lake Corners North ideally situated on the direct pathway to the heavily visited mall.

Major Theme ParksAnnual

Visitors 2015Attendance

Increase

Magic Kingdom 20,492,000 9%EPCOT 11,798,000 3%Animal Kingdom 10,922,000 5%Hollywood Studios 10,828,000 5%Disney World Combined 54,040,000Univeral Studios 9,585,000 16%Islands of Adventure 8,792,000 8%Universal Combined 18,377,000SeaWorld 4,777,999 2%

66.1 Million Tourists 2015: A new Orlando record

$93,000 Tourist Income

Sources: TEA, VisitOrlando.com



High Profile LocationTenant Appeal: Tenants are drawn to the Property’s prominent location at the center of South Orlando’s major retail trade area, which serves the rapidly expanding South Orlando residential, office, industrial and tourist demand base. An easily accessible and extraordinarily diversified demand base create a recession proof locale highly attractive to retailers.

• Center of Mega Destinations such as Universal Studios, Islands of Adventure, SeaWorld, the Orlando International Airport, the Florida Mall, and the Mall at Millenia.

• Purchasing Power of 191,000 residents and nearly 12,000 businesses in a five mile radius, plus 66.1 million tourists visiting a year, result in the market’s status as Orlando’s retail hub.

• Major anchors chose the Property’s location due to its expressway connectivity confluence of nearby SR 528, I-4 and Florida’s Turnpike, expanding the trade area beyond immediate South Orlando.

• The gateway location at the footstep of the main entrance to Universal Studio’s 474 expansion site, upon development will transform valuations beyond current use economics.

• The demand base of surrounding major employers such as Darden with 6,149 employees and Lockheed Martin with 7,000 employees, and Universal Studios with 21,000 employees in addition to the largest concentration of class A office parks in Orlando attracts retailers.

• Sand Lake Road is the main connector to both the Orlando International Airport and Central Florida’s largest regional mall, the Florida Mall.



Development of Universal’s Expansion Site Will Spike Nearby Values

IMPACT OF UNIVERSAL’S EXPANSION SITE DEVELOPMENT

• An already strong retail market will enjoy amplified returns and rental lift.• Purchasing power of the trade area will skyrocket.• The Property is at the Main Entrance to site – A redevelopment exit strategy option.• Sand Lake Corners North is poised for Exponential Value Increase.



Universal Acquisition: 475 Acres Purchased

• Universal Orlando's corporate owner paid $130 million in 2015 and is believed to be the site of a new mega theme park and entertainment and lodging mecca.

• Sand Lake Corners is located at the doorstep of this transformational site, placing it at the epicenter of one of Orlando’s most impactful growth markets, creating potentially exponential long term growth for a new owner.

• The Universal parcel is reportedly entitled with thousands of hotel rooms, residential units, and a theme park style attraction. This project is certain to yield upward pressure on values of nearby properties such as Sand Lake Corners North.

• The Property’s already high profile location will be significantly enhanced upon development.

Development of the 474 acres with entertainment and lodging uses will result in a seismic shift of neighborhood economics, with immediate value upside of owning Sand Lake Corners North well beyond the expectation of retail rent growth – the uplift in values for nearby sites such as the Property could be astronomical.

Sand Lake Corners NorthGateway to the 474 Acre Universal Site

Massive Unlocked Value Upon Development



Gateway to Universal Site


View Looking North


Orlando Tourists

66.1 MM

2015 Orlando Tourist Visitor Record!

• 66.1 Million in 2015, a record, double rate of past two decades, and growing

Orlando International Airport Growing

• 41.6 Million passengers, 9/2016 FY – Remarkable 9.9% increase YOY

Affluent Income of Orlando Visitor

• $93,000 to $94,800 Average Income of Tourists – Free Spending

Consumer Non Durable Sales Spiking

• $1,398.8 Million Orlando Sales 9/2016 FY – Dramatic 10.3% increase – Orlando Shops!

The Florida Mall

• 1.9 million SF – immediately east of Sand Lake Corners North, draws tremendous traffic

Remarkable Job Growth: Tops in US

• Orlando #1 in the U.S. for job growth in 2015 – feeding demand for retail services

Orlando Facts: Retail Demand Drivers



Sand Lake Corners North



The Property

Retail MarketINVENTORY

9,772,681 SF

AVG RENT

$20.56/SF NNN

Strong Fundamentals

OPPORTUNITY • Submarket: The Property is at the center of the Tourist Corridor, Orlando’s

retail hub which is the region’s path of growth for residential and businesses as well as world class entertainment facilities and theme parks. Demand is driven from growing numbers of tourists, full time residents, and the ever expanding office and industrial parks.

• Rent Growth: Average rents peaked 5.8% higher than today’s rents, providing significant rent upside as vacancy continues to strengthen.

• Tight and Improving Vacancy: Market vacancy has room to tighten further, especially with the growing residential, employee and tourist demand base surrounding the Property.

• Consumer Spending: Orlando’s non-durable sales increased by an impressive 10.3% over last year FY 9/2016 to $1,398.8 Million.

•

Landlord’s Market

Historical “peak and low” submarket stats

Orlando’s Major Retail Cluster Room for Rent Growth

Market History – Demonstrates proven success thresholds for rents and occupancy.

ACHIEVED BEFORE, CAN BE ACHIEVED AGAIN

UP

SID

E VACANCY

4.1% 4.7%

Tourist Corridor The PropertyTourist Corridor Tourist Corridor


Current (10/17)

Low Low Date Peak Peak Date Upside

Touris t Corridor $20.56 $16.95 2013 Q1 $21.75 2008 Q1 5.8%

S UBMARKET NET RENT

Current (10/17)

Low Low Date Peak Peak Date Upside

Touris t Corridor 4.1% 4.1% QTD 10.5% 2009 Q3 0.0%

S UBMARKET AVAILABLE VACANCY S HOPPING CENTER RETAIL


Discount Tire McDonald’s Denny’s

Goodyear Burger King 7-11

S. John Young PKW Outparcels

Enhance traffic to the Center


Speedway

Dunkin Donuts

Wendy’s

Logan’s Roadhouse

Sand Lake Road Outparcels


View Facing East



Investment ContactsINVESTMENT SALE CONTACTJohn F. BellManaging DirectorD: 305.808.7820M: [email protected]

100 SE 2nd StreetSuite 3100Miami, Florida, 33131

Disclaimer: The information contained in this Offering Memorandum has been obtained from sources believed to bereliable. While we do not doubt its accuracy, we have not verified it and make no guaranty, warranty or representationabout it. It is the responsibility of each prospective purchaser to independently verify its accuracy and completeness. Anyprojections, opinions, assumptions or estimates used are for example purposes only and do not represent the current orfuture performance of the property. Each prospective purchaser is to rely upon its own investigation, evaluation andjudgment as to the value and condition of the property, the information contained in the Offering Memorandum, andadvisability of purchasing the property. This Offering Memorandum may be rescinded or altered and the property may besold, leased or withdrawn from the market without notice. Brokers are not authorized to make any representations oragreements on behalf of the property owner or bind the property owner to any agreement for sale of the property.


mailto:[email protected]

Documents

SAND LAKE CORNERS NORTH - images1.loopnet.comimages1.loopnet.com/d2/xMW4dKNe_zQpqNlUGF4PcsLqWJYD6ktXZX… · Roadhouse, Wendy’s Dunkin Donuts/Five Guys, Speedway. Financing to be