shoppes at poinciana - Capital Pacificcp.capitalpacific.com/Properties/Shoppes-at-Poinciana-PoincianaFL.pdf · new construction strip center located in one of the top master planned

new construction strip center located in one of the top master planned communities in the usCypress Pkwy & Old Pleasant Hill Rd, Poinciana, FL 34758

shoppes at poinciana

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hyper growth market

RentabLe SF . . . . . . . . . . . 12,600 SFPRiCe PeR SF . . . . . . . . . . . $338.89LOt Size . . . . . . . . . . . . . . . 1.52 ACyeaR buiLt . . . . . . . . . . . . . 2016

PRICE: $4,270,000CAP: 6.75%

NEW CONSTRUCTION STRIP CENTER IN FLOURISHING HIGH GROWTH ORLANDO SUBURB, WITH TRAFFIC COUNTS OF OvER 55,000 vEHICLES PER DAy

The subject property is located in the community ofPoinciana, FL which is part of the Orlando, MSA and just 20 miles south of downtown.

The Shoppes at Poinciana is the first phase of the latest retail development in this high-growth market. Upon completion, the project will consist of five freestanding buildings and the tenancy is expected to include a mix of use categories consisting of regional and national retailers.

Named one of the top master planned communities in America, the Poinciana trade area is currently home to more than 100,000 residents and continues to grow.

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investment highlights

Listing Team Contact Info

Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team.

chris [email protected] | (415) 274-2701CA BRE# 01002010

zeb [email protected] | (415) 274-2702CA BRE# 01242540

chris [email protected] | (415) 274-2703CA BRE# 01339983

jack [email protected] | (415) 274-2705CA BRE# 01909630

Listed in conjunction with FL Licensed Broker:Andrew T. Knight | New England Commercial Brokerage [email protected] | (860) 648-1600

SHOPPES AT POiNCiANA | 2

core characteristics

Corporate Credit tenantMattress Firm is the world’s #1 mattress retailer, and has an S&P credit rating of B+. Mattress Firm has made several major acquisitions in recent years, such as Sleep Train in 2014 and Sleepy’s in 2016, growing their footprint and further solidifying their position as the top mattress retailer in the US. Steinhoff international recently announced that they will be acquiring Mattress Firm (seemore in tenant overview on pages 8 and 9).

LoCation HigHLigHts

• Located at the intersection of Cypress way and Old Pleasant Hill Road, the property has outstanding exposure and entry from both roads. The property boasts a combined traffic count of over 61,000 vehicles per day (2015 FDOT).

• Located in the epicenter of Poinciana’s primary retail node. Directly across Cypress Parkway is Poinciana Towne Center, a Walmart Supercenter anchored center. Other tenants in the center include Hibbett Sports, Aldi and Chase Bank. Other major developments in the immediate vicinity are The Promenade, a Publix anchored neighborhood center, and Solivita Marketplace, a mixed use project anchored by Walgreens, and The Pointe, anchored by Lowe’s Home improvement.

• The subject property is in close proximity to Poinciana Medical Center (PMC), a recently constructed hospital that serves the growing healthcare needs of the Poinciana community.

• Situated in a highly dense residential market: over 63,000 people within a 5-mile radius. The average household income exceeds $60,000 within a 5-mile radius.

Featuring a combination of national and local brands, the Shoppes at Poinciana is anchored by Mattress Firm.

Lease HigHLigHtsCorporately signed by Mattress Firm, inc., the lease features 10% rental increases every five years through the primary term and in each of the two 5-year options.

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, poinciana master planned community

[ poinciana medical center ]

Best in Class Master-Planned CoMMunity One of the fastest selling master-planned communities in America, the award-winning Poinciana is currently home to more the 100,000 residents. Just south of Orlando, the 47,000 acre development has raked up numerous accolades over the years including:

• Named one of the 100 Nicest Places to Live by Relocate.America.com

• #2 Best Selling Master-Planned Community (2004 & 2005)

• Home of Solivita, Avatar’s 3-time winner of Where to Retire magazine’s 100 best communities list.

Major infrastruCture ProjeCtsAs Poinciana continues to grow, the network of roads supporting the community and granting access to the many new developments continues to grow as well. Completed in April 2016, the Poinciana Parkway is a new 10-mile road from Cypress Parkway to Highway 17/92 that provides access to the heart of Poinciana. The $150 million project connects Poinciana to the Osceola County beltway and will continue to fuel growth in the area. This major road works project has paved the way for future planned road projects, including one project that would connect Hwy 17/92 to interstate 4 and a second project that would connect Poinciana to the Florida Turnpike via the “Southport Connector”. Both of these projects are currently in planning, with millions of dollars funded for their studies, and will greatly improve access to the subject property’s immediate trade area, once completed.

PoinCiana MediCal CenterPoinciana is home to the recently constructed Poinciana Medical Center. Constructed by Hospital Corporation of America, the hospital initially consisted of a two story, 100,000 square foot primary building surrounded by 42,000 square feet of freestanding medical office buildings. The primary building housed 30 surgical beds and six intensive care unit (iCU) beds. Due to the unprecedented growth in the area and high demands for health care, in HCA announced plans to expand their facilities within less than a year of the grand opening of the hospital. The $26 million project more than doubled the number of beds in the hospital, going from 30 to 76, added 40,000 square feet to the hospital.

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price: $4,270,000 Original Loan Amount $2,775,500

Capitalization rate: 6.75% Loan to Value 65%

price per square Foot: $338.89 interest Rate 4.50%down payment 35% $1,494,500 Amortization 30Loan amount 65% $2,775,500 Term 10Total Leased (SF): 100.00% 12,600 Net Operating income $288,239

Total Vacant (SF): 0.00% 0 Debt Service ($168,757)Total Rentable Area (SF): 100.00% 12,600 Pre-Tax Cash Flow $119,482

INCOME Per Square Foot Debt Coverage Ratio 1.71

Scheduled Rent $25.08 $316,050Reimbursement $5.02 $63,252 Pre-Tax Leveraged Cash-on-cash Return 7.99%

EFFECTIVE GROSS INCOME $379,302 Principal Pay down (Year 1 of Ownership) $44,775

Vacancy Factor (5%) ($18,965) Total Return $164,257

EXPENSE Yield 10.99%

CAM ($3.00) ($37,800)insurance ($0.44) ($5,544)Property Taxes ($1.58) ($19,908)CapEx Reserves ($0.10) ($1,260)Non-recapture Management Fee (2.0%) ($0.60) ($7,586)

TOTAL OPERATING EXPENSES ($5.72) ($72,098)

NET OPERATING INCOME $288,239

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

income & expense

SHOPPES AT POiNCiANA | 6

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the informa-tion and bears all risk for any inaccuracies.

rent roll

[ REPRESENTATIVE PHOTO ]

TENANT INFO LEASE TERMS RENT SUMMARY

tenant sq. Ft. percent of gLa term Monthly rent annual rent rent/Ft

Mattress Firm 4,200 33.33% 09/30/16 10/31/21 $9,275 $111,300 $26.50

11/01/21 10/31/26 $10,203 $122,430 $29.15

Option 1 11/01/26 10/31/31 $11,223 $134,673 $32.07

Option 2 11/01/31 10/31/36 $12,345 $148,140 $35.27

Euro Nails 2,800 22.22% 10/05/16 10/31/21 $5,600 $67,200 $24.00

Option 1 11/01/21 10/31/26 $6,160 $73,920 $26.40

Option 2 11/01/26 10/31/31 $6,776 $81,312 $29.04

Great Clips 1,400 11.11% 01/16/17 01/31/22 $2,800 $33,600 $24.00

Option 1 02/01/22 01/31/27 $3,080 $36,960 $26.40

Option 2 02/01/27 01/31/32 $3,388 $40,656 $29.04

General Connection Tax 1,050 8.33% 09/30/16 09/30/21 $2,100 $25,200 $24.00

Option 1 10/01/21 09/30/26 $2,310 $27,720 $26.40

Option 2 10/01/26 09/30/31 $2,541 $30,492 $29.04

uBreakiFix 1,050 8.33% 09/30/16 09/30/21 $2,100 $25,200 $24.00

Option 1 10/01/21 09/30/26 $2,310 $27,720 $26.40

Verizon 2,100 16.67% 09/30/16 09/30/21 $4,463 $53,550 $25.50

(Wireless Sales, LLC) 10/01/21 09/30/26 $4,909 $58,905 $28.05

Option 1 10/01/26 09/30/31 $5,400 $64,796 $30.86

Option 2 10/01/31 09/30/36 $5,940 $71,275 $33.94

occupied 12,600 100.00% $26,338 $316,050 $25.08

Vacant 0 0.00% $0 $0 $0.00

totals 12,600 100.00% $26,338 $316,050 $25.08

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site plan

shoPPes at PoinCiana

site plan

This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. SHOPPES AT POiNCiANA | 8

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site plan site plan

GC tax

This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. SHOPPES AT POiNCiANA | 9

tenants

Mattress Firm (NASDAQ: MFRM) currently operates over 3,546 locations across 48 states nationwide, making it the largest bedding retailer in the country, with estimated fiscal 2016 sales of approximately $4 billion. Mattress Firm offers conventional mattresses, specialty mattresses, including viscoleastic foam mattresses and YuMe sleep system (a revolutionary sleep system made of foam produced from coconut oil), and bedding related accessories (bed frames, mattress pads, pillows). The stores carry a broad assortment of national mattress brands and exclusive brands. in 2011, Mattress Firm Holding Corp went public and has shown above average, strong sales and profit growth since.

Mattress FirMWireless Sales is a Verizon Premium Retailer, a distinction given to only a select few retailers and they’re proud to have earned it. Wireless Sales is a full service Verizon Wireless retailer with a mission to provide their customers with the best customer service experience, the latest products, integrity, and accountability in the industry. Wireless Sales was founded in 2007 and is based in Dunedin, FL. The company is currently operating 8 locations. The founders and guarantors, Danny Pownall and Adam Wrezesniewski, have a combined industry experience of 35 years and continue to be active in the daily operations of the business.

VerizonBrad and Dawn Boland will own and manage the Great Clips located at The Shoppes at Poinciana. As a franchisee, they bring financial strength, prior managerial and hospitality experience, and prior experience in starting and running a small business. They more than surpassed the financial requirements of $300,000 net worth and $50,000 in liquidity that is required by Great Clips to be a franchisee. Brad has 25+ years of managerial experience in the hotel industry. He currently oversees a portfolio of hotels in the Orlando area, and has been an area or regional general manager for multiple properties in the hospitality industry for the last 10+ years. Dawn is a multi-award winning teacher, currently teaching business at Bellalgo Academy. She has created numerous business class curriculums, taught a diverse selection of business management courses, and launched her own small business. Together, the Boland’s have chosen both the Great Clips concept at The Shoppes at Poinciana as their opportunity to combine their expertise and experience.

great CLips

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tenants

Michael Wu and his wife, Bachtuyet Bui, have been in the nail industry for 30+ years. They opened their first Euro Nails in Martinsburg, WV, which is still open and operating. Prior to opening their own salon, they both worked in third-party nail salons. They moved to Poinciana in 2009, and have utilized that time to develop a loyal following and superlative reputation, through work at third-party salons. With their previous experience and now extensive customer base in the Poinciana area, Michael and Bachtuyet are opening their second location.

euro naiLs & spaGC Tax, started in 2014, has grown tremendously and, in just in 3 years, has over 1,000 clients and now in 2017 will launch their 3rd location. GC Tax provides tax services to individuals and businesses nationwide. The company helps incorporate businesses and helps people start payroll services, along with other services like translations, notary services, and just recently launched GC TAX Mortgage Note Program Assistance. They are a bilingual family orientated business that strives to provide the best service to their clients.

gC taxuBreakiFix, a cell phone repair service, which specializes in fixing “everything” tech, began in 2009 in Orlando, FL. Within three short years, the company grew to 47 stores and $27 million in revenue. With their new found success, uBreakifix became a franchisable operation that began by selling 26 stores to current operating managers and financing them at very favorable terms, allowing ubreakiFix to grow at a tremendous rate and to provide more franchise opportunities throughout the country. Fast forward to 2017, and uBreakiFix now has 262 stores in 25 states, Canada, Trinidad, and Tobago with expected system-wide store sales of $98 million in 2016. UBreakiFix is continuously growing in every market with 113 stores that opened in 2016 and a current growth plan to open 13 stores a month for the foreseeable future.

ubreakiFix

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2016 household inCoMes

PoPulation

toP eMPloyers in kissiMMee, fl

demographics & map

School District of Osceola CountyThe Walt Disney CompanyWalmartGaylord Palms Resort & Convention CenterOsceola CountyOsceola Regional Medical CenterPublixFlorida Hospital Celebration Health PoinCiana

downtown orlando

30 Min20 Miles

SHOPPeS at POinCiana LOCatiOn

ReGiOnaL MaP

SHOPPeS at POinCiana

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1-Mile 3-Mile 5-Mile

2010 2,674 30,605 54,2162015 3,344 35,756 63,1582021 3,913 40,469 70,588

1-Mile 3-Mile 5-Mile

Average $54,096 $58,708 $60,111Median $41,445 $44,608 $46,831

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poinciana, fl

[ downtown orlando ]

Poinciana lies southwest of Kissimmee and approximately 20 miles from downtown Orlando and is one of America’s largest and fastest selling master-planned communities, encompassing some 47,000 acres. Ranked the second Best Selling Master-Planned Community in the United States in 2004 and 2005 with a total of 5,642 new home sales, Poinciana also was named one of America’s 100 Nicest Places to Live by Relocate.America.com following a 5-year study of over 5,100 communities throughout the United States. Poinciana currently is home to more than 100,000 residents living in the community’s primary housing and Avatar’s award-winning active-adult community of Solivita.

The Valencia College Board of Trustees broke ground on the first phase of its new, 49 acre campus May of 2016. The first phase of the satellite campus will include a 65,000 square-foot building for classrooms and offices and is expected to cost $23 million. The new campus is contracted to open by fall of 2017 and offer an associate program along with specialty training programs. These programs are expected to help boost the employment rate in Poinciana, which will drive more development and housing to the area. A possible build out plan for an apartment complex to support the influx of new students is already being elected.

Tuscan isle, a 213,000 square foot adult congregate living community is located approximately 2 miles west of the Shoppes of Poinciana. The project site is in a Mixed Use Planned Unit Development consisting of approximately 9 acres within the Solivita Marketplace. The new $47.8M facility is comprised of 120 independent living units, 56 assisted living units (62 beds) and 36 memory care units. The Units range from 300-1,250 square feet and is a mix of studio, one and two bedrooms. After the initial interest in the project plans for phase 2 construction began which will incorporate a skilled nursing expansion.

Poinciana Towne Center, Poinciana’s growing retail hub, is highlighted by a Walmart Superstore. The Towne Center boasts over 70 businesses, including the fashionable Promenade Shopping Center anchored by a Publix supermarket.

Other Towne Center tenants include a U.S. Post Office, the Poinciana Family Medical Center, Burger King, Pizza Hut, Denny’s, Advanced Auto, Tire Kingdom, Payless Shoes, Hibbett Sports, Colortyme Rentals, GameStop, Mattress One, Sherwin Williams Paints, and a number of banks, businesses and other restaurants.

GrowinG retail huB:

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[ Copyright © 2017 Capital Pacific ]

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Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team.

CHRiS [email protected] | (415) 274-2701CA BRE# 01002010

zeb [email protected] | (415) 274-2702CA BRE# 01242540

CHRiS [email protected] | (415) 274-2703CA BRE# 01339983

jaCK [email protected] | (415) 274-2705CA BRE# 01909630

Listed in conjunction with FL Licensed Broker:Andrew T. Knight | New England Commercial Brokerage [email protected] | (860) 648-1600