16TH LANE BUSINESS PARK€¦ · 16TH LANE BUSINESS PARK CONTACT US TABLE OF CONTENTS 05 EXECUTIVE SUMMARY 09 PROPERTY OVERVIEW 16 MARKET OVERVIEW 20 FINANCIAL OVERVIEW PROPERTY INQUIRIES:

16TH LANE BUSINESS PARK2420 AND 2430 NW 16TH LANEPOMPANO BEACH, FLORIDA (FORT LAUDERDALE MSA)

OFFERING MEMORANDUM

Capital Markets | Investment Properties

AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT

CBRE, Inc. operates within a global family of companies with many subsidiaries and 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, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgment of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

Your receipt of this Memorandum constitutes your acknowledgment that (i) it is a confidential

Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

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

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All

references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves 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 at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

© 2017 CBRE, Inc. All Rights Reserved

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.

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

1 6 T H L A N E B U S I N E S S P A R K

CONTACT US

TABLE OF CONTENTS

05 EXECUTIVE SUMMARY

09 PROPERTY OVERVIEW

16 MARKET OVERVIEW

20 FINANCIAL OVERVIEW

PROPERTY INQUIRIES:

David J. Wigoda, SIORSenior Vice President+1 305 428 [email protected]

Sean KellyFinancial Analyst+1 305 381 [email protected]

FINANCING OPTIONS:

Paul AhmedSenior Vice President+1 954 462 [email protected]

CBRE, Inc.Licensed Real Estate Broker

EXECUTIVE SUMMARY


5

THE OFFERING

CBRE, Inc. is pleased to announce that it has been appointed exclusive advisor for the sale of 100% occupied 16th Lane Business Park, a 21,000 square foot small bay office/warehouse center, situated on just under one acre in the City of Pompano Beach, Broward County, Florida. The City of Pompano Beach is located in northeastern Broward County and is centrally located between Palm Beach and Miami.

The Property is exceptionally well located off of Copans Road, between Powerline Road and Andrews Avenue. Copans Road is a major east/west artery with an interchange at Interstate 95. Powerline Road is a major north/south artery connecting northern Broward County and southern Palm Beach County. Traffic counts are high with 48,000 VPD on Copans Road and 37,500 on Powerline Road.

Offering Procedure

Offers should be submitted in the form of a Letter of Intent. In evaluating offers, preference will be given to buyers that are qualified in terms of experience with this type of property and can demonstrate having the capital necessary to purchase the property. Preference will also be given to offers that reflect the most comprehensive underwriting to date and the fewest outstanding conditions to purchase the property.

Contact Information

David J. Wigoda, SIORSenior Vice President+1 305 428 [email protected]

For additional information or to arrange a property tour, please contact:

INVESTMENT SUMMARY 16TH LANE BUSINESS PARK

Address: 2420 and 2430 NW 16th Lane | Pompano Beach, FL 33064

Building Size:Building 2420: 10,500± SFBuilding 2430: 10,525± SFTotal: 21,025± SF

Land Area: 38,897± SF

Tenants: 7 tenants

Occupancy: 100%

Parking: 35 spaces (1.67/1,000 SF)

Asking Price: $2,950,000

Cap Rate: 7.00%

PROPERTY FEATURES

+ Two (2) newly renovated multi-tenant buildings (2015)

+ Just west of I-95 off of Copans Road

+ Concrete block construction

+ 16’ clear

+ Hurricane impact resistant windows, doors, overhead doors

+ Spaces range from 2,100 to 5,650 square feet

+ Seven drive-in doors per building

– Including 2 oversized doors

+ North Building (2430)

– Four (4) newly built out spaces (2015), new restrooms, electric, plumbing, separately metered

– Fire sprinklered

+ South Building (2420)

– Three (3) newly built out spaces (2015), new restrooms, electric, plumbing, separately metered


7

Parcel 1

NW

45t

h A

venu

e

NW

43r

d A

venu

e

Swap-Shop

LauderhillMall

Central Broward Regional Park

CricketStadium

PerformingArts Center

Village

ProposedMulti-FamilyResidential

Bank

(not included)

SUBJECT AERIAL

2420

2430

PROPERTY OVERVIEW


9P R O P E R T Y O V E R V I E W

LOCATION

16TH LANE BUSINESS PARK

The Property is located just north of Copans Road, between North Andrews Avenue and Powerline Road in Pompano Beach, Broward County, Florida.

Average Annual Daily Traffic Counts (AADT) are strong in this area:

+ 48,000 – Copans Road, east of Powerline Road

+ 37,500 – Powerline Road, north of Copans Road

+ 17,600 – Andrews Ave, north of Copans Road

The Property is in close proximity to:

+ I-95 – 0.8 miles

+ Florida Turnpike – 1.3 miles

+ Fort Lauderdale Executive Airport – 5.0 miles

+ Sawgrass Expressway – 9.4 miles

+ Fort Lauderdale International Airport – 12.7 miles

16TH LANE BUSINESS PARKP

OW

ERLI

NE

RD

COPANS RD

N. A

ND

REW

S A

VE

BLO

UN

T R

D

SAMPLE RD

48,000 AADT

37,500 AADT

17,600 AADT




16TH LANE BUSINESS PARK

COPANS RD

DISTRIBUTION WAREHOUSE

TSF

SPO

RTS

WEA

R

ALSCO

48,000 AADT

17,600 AADT

N. A

ND

REW

S A

VE

12

PROPERTY DESCRIPTION

LOCATION/PARCEL DETAIL

The investment opportunity is a small bay multi-tenant office/warehouse complex composed of two buildings: 2420 and 2430. The Property is located off of Copans Road, between Powerline Road to the west and North Andrews Avenue to the east. Copans Road and Powerline Road are both considered primary arterials through Broward County.

+ Address 2420 and 2430 NW 16th Lane | Pompano Beach, FL Broward County

+ Total Building Size 21,025± SF total

+ Occupancy 100%

+ Land Area 38,897± SF

+ Zoning I1 (General Industrial, City of Pompano Beach)

+ Site Improvements Two one-story CBS buildings with asphalt parking and lighting

+ Year Built 1978 and 1979, renovated in 2015

+ Parking 35 spaces

+ Recent Capital Improvements

− Seven newly constructed office spaces and restrooms (except one area that was renovated)

− New electrical, plumbing and HVAC systems

− New hurricane impact resistant windows, overhead loading doors and person doors

− New energy efficient (T5) lights throughout the warehouse spaces

− All warehouse walls and ceilings recently painted white

− Fully fenced in with new fence and gates

− The exterior overhangs updated with new standing seam metal roof

− The parking lot resealed and restriped


13P R O P E R T Y O V E R V I E W

FLOOR PLAN

NORTH BUILDING2430

SOUTH BUILDING2420

14

PROPERTY PHOTOGRAPHS

MARKET OVERVIEW

16

POMPANO BEACH

Pompano Beach offers 3 miles of beautiful shoreline and the city's public beach has been declared a Blue Wave Award winner since 2000. Additionally, the City of Pompano Beach has been named an All-America City. The All-America City Award is America's original and most prestigious community recognition award honoring communities in which community members, government, businesses and non-profit organizations work together to address critical local issues.

The City has also been declared a Tree City USA for the 22nd time and is committed to enhancing its tree canopy and providing shade and fresh air to residents and guests.

Tourism efforts have been enhanced recently as one of Broward County's newest casinos, The Isle Casino & Racing at Pompano Park was opened in 2007.

Due to its mild year round climate, visitors to Pompano Beach can also enjoy its beautiful parks, beaches, boating, fishing, scuba diving and all other types of outdoor recreation.

Pompano Beach has:

+ 28+M square feet of industrial/warehouse distribution

+ 2 rail lines (CSX and FEC)

+ 106K+ residents

+ 3 international airports (MIA, PBI, FLL) and seaports

+ 25.8 square miles

+ 3 miles of beach

Institutional industrial ownership in Pompano Beach includes:

+ Prologis

+ GLP

+ Clarion

+ IPT

+ Zurich

+ IDI

+ JP Morgan

+ Eastgroup Properties

+ Blackstone

+ And More...


17M A R K E T O V E R V I E W

BROWARD COUNTY INDUSTRIAL MARKET, Q1 2017

DEVELOPMENT

At the close of Q1 2017, the amount of space under construction in Broward County stood at 938,505 sq. ft. The majority of construction in Broward County is spread evenly across the Central (306,466 sq. ft.), Northeast (318,064 sq. ft.), and Southwest (301,175 sq. ft.) submarkets. Of the eight buildings currently under construction, seven are speculative buildings while one is a build-to-suit warehouse.

In Pompano Beach, Butters Construction & Development, in a partnership with Blackrock, has just begun construction on Buildings 6, 7, and 8 at their Pompano Center of Commerce II project. The project will total 318,064 sq. ft. upon completion and is targeting tenants who require between 5,000 and 100,000 sq. ft. of space.

In Fort Lauderdale, Bridge Development Partners nears completion of their Bridge Point I-95 project, which is comprised of two buildings. Building A is 166,370 sq. ft. and Building B is 140,096 sq. ft., which is completely pre-leased to Floor & Décor and Broward Motorsports. In Pembroke Pines, Bergeron Properties and Investment Corp. continue to make progress on their first building at Bergeron Distribution Center. The first building will span 170,373 sq. ft. and Bergeron has master plans that would bring the business park to over two million sq. ft. in the years to come. In Davie, Becknell Industrial is putting the finishing touches on their 130,802 sq. ft. East Davie Commerce Center, which sits atop 10 acres on College Avenue.

Q1 2017 saw the delivery of three buildings totaling 286,070 sq. ft. across the submarkets of Northeast Broward and Pompano/Fort Lauderdale.

The two buildings of note that were delivered are Buildings C and D at Hillsboro Technology Center, which is a joint project between Butters Construction & Development and Bristol Group.

LEASING ACTIVITY

The Broward County industrial market posted its twelfth consecutive quarter of positive net absorption in Q1 2017. The quarter closed with a net absorption of nearly 26,000 sq. ft. The submarkets experiencing the most activity were Southeast Broward (112,307 sq. ft.) and Coral Springs (85,967 sq. ft.).

The largest new lease of the first quarter was signed by Fanatics, Inc. at 15701 SW 29th Street in Miramar, to occupy 200,214 sq. ft. Fanatics is an online retailer of licensed sports apparel and merchandise. Another notable lease came at newly delivered Davie Business Center Building B. Aviall, a subsidiary of Boeing, and the world’s largest diversified aircraft parts distributor, signed a new lease for 67,000 sq. ft. and will move into the facility during Q3 2017.

Broward County continues to attract a diverse base of industrial tenants and vacancy levels are south of 7.0% for the tenth consecutive quarter. The 5.3% vacancy represents a year-over-year drop of 120 basis points (bps). On a quarter-over-quarter basis, vacancy has seen a marginal increase of 10 bps, which is directly attributable to the delivery of 259,137 sq. ft. of vacant warehouse space. The submarkets that recorded the lowest vacancy at the close of Q1 2017 were Pompano/Fort Lauderdale (3.2%) and Southeast Broward (3.9%).

In terms of vacancy by development type, manufacturing space saw the largest decrease, dropping 470 bps year-over-year to 4.5% in Q1 2017. Warehouse/distribution space stood at 5.5% vacancy at the close of the first quarter, a 100 bps decrease year-over-year and flex space decreased 80 bps year-over-year to 4.6%.

TOTAL VACANCY5.3%

NET ABSORPTION25,762 SF

UNDER CONSTRUCTION939,000 SF

*Arrows indicate change from previous year.

18

INVESTMENT ACTIVITY

A total of 20 transactions amounting to over $145 million in sales were tracked in Q1 2017. The average price per sq. ft. of traded assets in Q1 2017 came to $119 per sq. ft.

A majority of the activity in the first quarter occurred in the Southeast Broward and Central Broward submarkets. The largest sale of the quarter was the $50 million trade of Miramar Centre Business Park Building B at 15501 SW 29th Street in Miramar. The 304,000 sq. ft. warehouse and distribution building sold for over $164 per sq. ft. to the Apotex Corporation, a global leader in pharmaceuticals. The sale of Miramar Centre Business Park Building B to the ApotexCorporation is particularly noteworthy because it is the largest owner/user sale in Broward County that CBRE has tracked over the last decade. Also of note was the sale of Bridge Point Davie. The 145,800 sq. ft. warehouse sold for $22 million, or $151 per sq. ft. and currently houses multiple tenants, including Pet Supermarket and Challenge Warehouse.

ECONOMIC INFLUENCE

According to the Bureau of Economic Analysis, Florida’s GDP grew 3.6% in the third quarter of 2016 compared to the second quarter, outpacing much of the nation. Florida’s strong economy is highlighted by stabilizing unemployment levels. In February 2017 the non-seasonally adjusted unemployment rate was 4.7%, the same rate that was reported in February 2016. The state gained 240,400 jobs year-over-year, representing an employment increase of 2.9%.

Broward County’s non-seasonally adjusted unemployment rate was 4.5% in February 2017, which is equal to the 4.5% unemployment rate in February 2016. Job growth for the market showed a 2.5% increase year-over-year, representing 20,600 jobs. There was a 3.6% annual job increase in the professional and business services sector and a 2.0% job increase year-over-year in leisure and hospitality. Job growth in both of these sectors highlight the unique dynamic of Broward County as both a business hub and a leisure destination.

Broward County recently announced a $75 million renovation to Port Everglades in anticipation of Celebrity Cruises’ newest ship, Celebrity Edge. The overhaul, which is being conducted by Broward County, is expected to be completed by Q2 2018.

OUTLOOK

The April 2017 release of the University of Florida’s Consumer Sentiment Index (CSI) showed that consumer sentiment among Floridians is at its highest level in 15 years. The Florida labor market has continued stable growth and has added jobs on a monthly basis for more than six years. Broward County’s dynamic live-work-play landscape permeates throughout each submarket and makes it an attractive area for investment and development. Foreign and domestic investors continue to gravitate toward Broward County’s low vacancies and rising lease rates. As the nation’s 15th largest county, and second largest in Florida, Broward has a growing population that employers continue to draw from when establishing or expanding roots in South Florida. Leasing activity, investment and user sales, and development show no signs of slowing down in Broward County.

Source: CBRE Research, Q1 2017

BROWARD COUNTY INDUSTRIAL MARKET, Q1 2017

FINANCIAL OVERVIEW

20

RENT ROLL

Square Feet

% ofProperty

Lease

Suite Tenant Name End Monthly Annually PSF Comments/Options

A - 2430 Jackson Performance 2,525 12.01% 6/30/2019 $2,788 $33,456 $13.25

B - 2430 Royal Group Construction 3,350 15.93% 9/30/2019 $3,559 $42,713 $12.75

C - 2430 MMA Marble and Granite, Inc. 2,550 12.13% 3/31/2019 $2,816 $33,788 $13.25 Tenant has 1, (2) two year option to renew. Terms not defined.

D - 2430 Autofix Car Service Corp. 2,100 9.99% 6/30/2019 $2,363 $28,350 $13.50

E - 2420 Keen Auto Mall, LLC. 2,200 10.46% 5/31/2019 $2,475 $29,700 $13.50

F - 2420 Month-to-month Tenant 2,650 12.60% $2,871 $34,450 $13.00 Lease with new tenant out for signature.

H - 2420 Shell Systems Construction 5,650 26.87% 2/19/2020 $4,732 $56,782 $10.05

$4,874 $58,486 $10.35

$5,020 $60,240 $10.66

Current $21,761 $261,135 $12.42

Occupied 21,025 100.0%

Vacant 0 0.0%

Total 21,025 100.0%


21F I N A N C I A L O V E R V I E W

INCOME & EXPENSE SUMMARY

IN PLACE AT ACQUISITIONPer Sq. Ft. Monthly Annually

Gross Income $12.42 $21,761 $261,135

Projected Operating Expenses Management Fee $0.29 $515 $6,180 Repairs & Maintenance $0.15 $258 $3,090 Utilities - House Electric $0.02 $41 $494 Utilities - Water (nonpass through) $0.02 $41 $494 Trash Pickup (nonpass through) $0.06 $103 $1,236 Landscaping $0.12 $206 $2,472 Insurance $0.32 $567 $6,798 Property Taxes $1.62 $2,833 $33,990

Total Operating Expenses $2.60 $4,563 $54,755

Net Operating Income (NOI) $9.82 $17,198 $206,380

CONTACT US

PROPERY INQUIRIES:

David Wigoda, SIORSenior Vice President+1 305 428 [email protected]

CBRE, Inc.Licensed Real Estate Broker

Sean KellyFinancial Analyst+1 305 381 [email protected]

FINANCING OPTIONS:

Paul AhmedSenior Vice President+1 954 462 [email protected]

Capital Markets | Investment Properties

16TH LANE BUSINESS PARK€¦ · 16TH LANE BUSINESS PARK CONTACT US TABLE OF CONTENTS 05 EXECUTIVE SUMMARY 09 PROPERTY OVERVIEW 16 MARKET OVERVIEW 20 FINANCIAL OVERVIEW PROPERTY INQUIRIES:

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