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
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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
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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
EXECUTIVE SUMMARY 4S A N D L A K E C O R N E R S N O R T H
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
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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
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EXECUTIVE SUMMARY 8S A N D L A K E C O R N E R S N O R T H
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
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EXECUTIVE SUMMARY 10S A N D L A K E C O R N E R S N O R T H
View to South Key location at entrance to Universal Expansion Site and center of business parks.
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91
Universal 474 AcreExpansion Site
Darden HQ6,149 Employees
GATEWAY TO UNIVERSAL ORLANDO RESORT’S 474 ACRE EXPANISON SITE
BEAD TIME
EXECUTIVE SUMMARY 11S A N D L A K E C O R N E R S N O R T H
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.
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EXECUTIVE SUMMARY 13
View to East
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EXECUTIVE SUMMARY 14
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
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EXECUTIVE SUMMARY 15S A N D L A K E C O R N E R S N O R T H
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Darden HQ6,149 Employees Lockheed Martin
7,000 EmployeesRosenCreekResort
Universal 474 AcreExpansion Site
21,000 Employees19 million visitors
GATEWAY TO UNIVERSAL ORLANDO RESORT’S 474 ACRE EXPANISON SITE
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
EXECUTIVE SUMMARY 16S A N D L A K E C O R N E R S N O R T H
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
EXECUTIVE SUMMARY 17
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
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EXECUTIVE SUMMARY 18
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.
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EXECUTIVE SUMMARY 19
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.
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EXECUTIVE SUMMARY 20
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
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EXECUTIVE SUMMARY 21S A N D L A K E C O R N E R S N O R T H
Gateway to Universal Site
EXECUTIVE SUMMARY 22S A N D L A K E C O R N E R S N O R T H
View Looking North
EXECUTIVE SUMMARY 23
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
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EXECUTIVE SUMMARY 24
Sand Lake Corners North
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EXECUTIVE SUMMARY 25
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
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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
EXECUTIVE SUMMARY 26S A N D L A K E C O R N E R S N O R T H
Discount Tire McDonald’s Denny’s
Goodyear Burger King 7-11
S. John Young PKW Outparcels
Enhance traffic to the Center
EXECUTIVE SUMMARY 27S A N D L A K E C O R N E R S N O R T H
Speedway
Dunkin Donuts
Wendy’s
Logan’s Roadhouse
Sand Lake Road Outparcels
EXECUTIVE SUMMARY 28
View Facing East
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EXECUTIVE SUMMARY 29
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.
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