2949 N Federal Hwy | Fort Lauderdale, FL 33306 › wp-content › uploads › 2016 › 10 ›...

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2949 N Federa l Hwy | For t Lauderda le , FL 33306

OFFERING MEMORANDUM

Federal Marketplace | Fort Lauderdale, FL

2

Federal Marketplace | Plano, TX

Mathews Retail Advisors

CHAD KURZ SVP & NATIONAL D IRECTORSTNL

DIRECT +1 .3 10.919.5850 MOBILE + 1 .562 .480.2937 Chad .Kurz@mat thews .com

BROKER OF RECORDKy le Mat thews

DIRECT +1 .3 10.919.5757Ky le .Mat thews@mat thews .com

E X C L U S I V E LY

ANDREW GROSS ASSOCIATESTNL

DIRECT +1 .3 10.955 .1773 MOBILE + 1 .435 .659.1404 Andrew.Gross@mat thews .com

3Matthews Retail Advisors

Offer ing Memorandum

TABLE OF CONTENTS

4

18

10EXECUTIVE SUMMARY

INVESTMENT OVERVIEW

INVESTMENT HIGHLIGHTS

TENANT SUMMARY

RENT ROLL

14 AREA OVERVIEW

FORT LAUDERDALE, FL

MIAMI -FORT LAUDERDALE-PALM

BEACH, FL MSA

TENANT OVERVIEW

BURGER21 OVERVIEW

FLASH F IRE P IZZA

AGAVE TACO BAR

AT&T OVERVIEW

PROPERTY OVERVIEW

SITE DESCRIPT ION

REGIONAL MAP

TENANT MAP

DIRECT +1 .3 10.955 .1773

MOBILE + 1 .435 .659.1404

Andrew.Gross@mat thews .com

DIRECT +1 .3 10.919.5850

MOBILE + 1 .562 .480.2937

Chad .Kurz@mat thews .com

ANDREW GROSS CHAD KURZ


4 Matthews Retail Advisors


EXECUTIVE SUMMARY

5


I N V E S T M E N T O V E R V I E W

Andrew Gross with Matthews Retail Advisors is pleased to exclusively offer for sale to qualified investors a net-leased, four-tenant investment opportunity situated in a trophy location on one of the most highly desirable retail corridors in South Florida. Federal Marketplace is 100% occupied with an attractive mix of national and regional tenants including: Agave Taco Bar, AT&T authorized retailer, Burger 21, and Flash Fire Pizza. Since its’ ground-up completion in 2015, Federal Marketplace has become a premier destination for the Fort Lauderdale market’s retail and dining needs.

This well-situated asset offers some of the most desirable characteristics of net-leased investments: minimal landlord responsibilities, with brand new leases, and rental increases to hedge against inflation. Federal Marketplace serves an extremely affluent area with an average household income of over $100,000 in the 1-mile radius. The site is strategically positioned just down the road from the highly acclaimed Coral Ridge Country Club and Coral Ridge Mall which bring additional traffic from the greater surrounding area. The subject property is conveniently located within walking to distance to the world renowned beaches of Fort Lauderdale. This in-fill location asset is equipped with a phenomenal retail synergy to amplify its residual value and the longevity of this trophy location.

The site is located on one of South Florida’s most highly trafficked corridors, North Federal Highway, which serves an astonishing 55,000 VPD. Federal Marketplace shares this prime retail corridor with retailers including Target, Whole Foods, Wells Fargo Bank, Starbucks, Marshalls, Chase Bank, Dick’s Sporting Goods, Barnes & Noble, Citibank, Best Buy, Chick-Fil-A, Bed Bath & Beyond, AMC Theaters, McDonalds, Walgreens and more. This market boasts a vast population of 127,000 and over 6.25% growth in the 3-mile radius, while projected growth continues to exceed 5.15%. Federal Marketplace is proven to serve a diverse and rapidly expanding Fort Lauderdale economy.

Executive Summary

• Incredible location – Federal Marketplace is located within 1-mile of the Coral Ridge Mall and is situated along North Federal Highway, which boasts over 56,000 vehicles per day; the cross street Oakland Park Blvd accounts for over 40,000 vehicles per day

• Fort Lauderdale is one of the nation’s highly featured tourist destinations, hosting over 4,000 restaurants, 63 golf courses, 12 shopping malls, 16 museums, 561 hotels

• Strong hedge against inflation – embedded rental increases in each of the leases

• Dominant retail trade area with tenants including: Target, Whole Foods, Wells Fargo Bank, Starbucks, Marshalls, Chase Bank, Dick’s Sporting Goods, Barnes & Noble, Citibank, Best Buy, Chick-Fil-A, Bed Bath & Beyond, AMC Theaters, McDonalds, Walgreens and more

• Federal Marketplace serves an affluent market with average household incomes exceeding $100,000 in the 1-Mile radius

• New construction building (completed 2015), with a high quality, state of the art architectural design

I N V E S T M E N T H I G H L I G H T S


Matthews Retail Advisors6

Federal Marketplace | Fort Lauderdale, FLFederal Marketplace | Fort Lauderdale, FL

P R O P O S E D D E B TE X E C U T I V E S U M M A R Y

Property Name Federal Marketplace

Address 2949 N Federal Hwy

Location Fort Lauderdale, Florida

List Price $8,165,818

Gross Leasable Area 9,324 SF

CAP Rate - Current 5.75%

Current Occupancy 100.0%

Investment Returns

Cap Rate - Yr 1 5.75%

Operating Data

Effective Gross Income $586,890

Operating Expenses $117,354

Net Operating Income - Yr 1 $469,536

Burger21 2,700 SF

Agave Taco Bar 2,961 SF

Flash Fire Pizza 2,223 SF

AT&T Wireless Authorized Retailer 1,440 SF

Principle Loan Amount $5,716,087

Required Equity $2,449,752

Loan To Value 70.0%

Interest Rate 4.00%

Term 10 Years

Amortization 30 Years

Annual Debt Service - Amortized $327,474

Monthly Debt Service - Amortized $27,289

Estimated Expenses

Real Estate Taxes $49,944

Insurance (0.15 PSF) $15,347

Estimated CAM $34,356

Estimated Admin Fee $35,647.85

TOTAL EXPENSES $117,354

EXPENSES/SF $12.59

T E N A N T S


7

Offer ing MemorandumOf fer ing Memorandum

Executive Summary

N Federal Hwy ± 56,628 ADT

Oakland Park Blvd ± 40,391 ADT


Matthews Retail Advisors8

Unit TenantLease Start

Lease End

SF% of GLA

Base Rental Rate Base Rent Per SF Rent IncreasesOptions

Yearly Monthly Year Month Date Increases

1 Burger21 Mar-15 Feb-25 2,700 29.0% $135,000 $11,250 $50.00 $4.17 Mar-20 Base + 10% 2x5 Years

2 Flash Fire Pizza Apr-15 Apr-25 2,961 31.8% $148,050 $12,338 $50.00 $4.17 Apr-20 Base + 10% 2x5 Years

3 El Agave Azul Oct-15 Oct-25 2,223 23.8% $114,485 $9,540 $51.50 $4.29 Oct-17Greater of 3%

or CPI Increase2x5 Years

4 AT&T Wireless Apr-15 Apr-20 1,440 15.4% $72,000 $6,000 $50.00 $4.17 Apr-20 Base + 10% 2x5 Years

Occupied Totals - In Place 9,324 100.0% $469,535 $39,128 $50.36 $4.20

Totals 9,324 100.0% $469,535 $39,128 $50.36 $4.20

R E N T R O L L



9


Executive Summary



PROPERTY OVERVIEW


11Property Overview


S I T E D E S C R I P T I O N

Property Name Federal Marketplace

Address 2949 N Federal Hwy

Location Fort Lauderdale, Florida

Cross Street E Oakland Park Blvd &NE 26th St

GLA 9,324 SF

Lot Area 87,120 SF (2.00 ACRES)

APN(s) 49-42-25-32-0010

Zoning B-COMM

Year Built 2015

Number of Stories 1

Parking Spaces 103 Free Surface Spaces

Parking Ratio 11.05/1,000



SITE INFORMATION

FEDERAL MARKETPLACE

L O C A L M A P


SUBJECT PROPERTY

R E G I O N A L M A P

FEDERAL MARKETPLACE

13


T E N A N T M A P

Property Overview

FEDERAL MARKETPLACE



A R E A O V E R V I E W

F O R T L A U D E R D A L E , F L O R I D ASituated on the southeast coast of Florida approximately 23 miles north of Miami, Fort Lauderdale is a principal city of the Miami metropolitan area. It is a popular tourist destination with miles of beautiful sandy beaches lining the Atlantic coast.

Once known as a spring break destination, Fort Lauderdale has expanded its economy to consist of more than just the tourism industry. It is this advantageous economic climate that is allowing Fort Lauderdale to establish itself as a world-class international business center and as one of the most desirable locations for new, expanding or relocating businesses. Major sectors of the economy now include marine, manufacturing, finance, insurance, real estate, high technology, avionics/aerospace, and film and television production.

Fort Lauderdale also offers an outstanding quality of life, highlighted by a semi-tropical climate, rich natural beauty and array of cultural, entertainment and educational amenities. The downtown area began to undergo redevelopment in 2002, especially around Las Olas Boulevard, and now hosts many new hotels and high-rise condominium developments. Las Olas Boulevard has gained international acclaim as Fort Lauderdale’s centerpiece of fashion, fine dining and entertainment. As the largest downtown area in Broward County, there is no shortage of impressive restaurants.

The picturesque Riverwalk serves as the cornerstone of the City’s arts, science, cultural and historic district which features the Broward Center for the Performing Arts, Museum of Discovery and Science, Museum of Art and Old Fort Lauderdale Village and Museum.

Fort Lauderdale has evolved into a city that offers both an attractive business environment and an outstanding quality of life. As a great place to live, Fort Lauderdale looks forward to continue building upon its success to meet the challenges of the 21st century and beyond.


15Area Overview


DEMOGRAPHICS

POPULATION 1 Mile 3 Mile 5 Mile

2021 Projection 16,139 127,066 275,472

2016 Estimate 15,448 120,825 261,401

2010 Census 14,740 113,714 245,285

2000 Census 16,510 119,613 251,481

Growth 2016 - 2021 4.47% 5.17% 5.38%

Growth 2010 - 2016 4.80% 6.25% 6.57%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2021 Projection 8,855 63,143 128,867

2016 Estimate 8,444 59,760 121,794

2010 Census 8,016 55,781 113,594

2000 Census 8,647 56,393 112,786

Growth 2016 - 2021 4.87% 5.66% 5.81%

Growth 2010 - 2016 5.34% 7.13% 7.22%

INCOME 1 Mile 3 Mile 5 Mile

2016 Est. Average Household Income

$102,330 $78,375 $73,096

• The city economy is thriving with low unemployment with growing incomes

• Favorable climate with more than 3,000 hours of sunshine a year

• Fort Lauderdale has its own airport: There is no need to fly into Miami

International Airport

• Business friendly and low tax environment

• Dynamic and progressive environment

• Unparalleled quality of life

• Strong workforce of diverse and well-educated individuals

• Rapidly expanding city with significant business growth

WHY FORT LAUDERDALE, FLORIDA?

# EMPLOYERS

1 Spherion Corp.

2 AutoNation

3 Republic Services

4 Kaplan Higher Education

5 Seacor Holdings

6 Citrix Systems

7 BFC Financial Corp.

8 BankAtlantic Corp.

9 National Beverage Corp.

10 Ed Morse Automotive Group

LARGEST COMPANIES



M I A M I M E T R O P O L I TA N A R E A

ECONOMIC OVERVIEW

8th

2nd

Largest Gross Metropolitan Product in the US

Highest Personal Income

11th

10th

Best Place to Start a Small Business

Most populous MSA in the US

Miami’s economy is comprised of tourism, international trade and finance. With a Gross Metropolitan Product (GMP) of $257 billion, Miami is ranked 11th in the United States and 20th worldwide. Several large companies are headquartered in or around Miami, including those of Latin American operations for more than 1400 multinational corporations.

The Miami-Fort Lauderdale-West Palm Beach, FL MSA is the second largest metropolitan area in the Southeastern United States with a population of 6,012,331.


17


Area Overview

As a seaport city and world city, Miami is located on the southeastern peninsula of Florida. Since its founding, Miami has always been the commercial and cultural center for the state and the nearby Caribbean. Throughout the past few decades it has emerged as a world-class international hub and as a gateway to all of Latin America.

In many ways it serves as the central logistical and cultural hub of the entire Western Hemisphere. Consequently, there is a diverse Latin culture present in the city. Imports and exports and international financial trade with Latin countries make up a far larger part of the economy than tourism.

Downtown Miami is home to the largest concentration of international banks in the United States and many large national and international companies. The area pulsates with activity as commercial, cultural and leisure pursuits come together in the fastest growing area in Miami. Innovative skyscrapers make up Miami’s iconic skyline, providing amazing views of the city.

TOP 7 MAJOR EMPLOYERS IN THE MIAMI MSA

# EMPLOYER EMPLOYEES

1 Miami-Dade County Public Schools 48,571

2 Miami-Dade County 29,000

3 United States Government 19,500

4 Florida Government 17,100

5 University of Miami 16,100

6 Baptist Health South Florida 13,376

7 Jackson Health 12,576

MAJOR PROFESSIONAL SPORTS TEAMSCLUB SPORT LEAGUE VENUE

Miami Dolphins Football NFL Hard Rock Stadium

Miami Heat Basketball NBA American Airlines Arena

Miami Marlins Baseball MLB Marlins Park

Florida Panthers Hockey NHL BB&T Center

Of fe r ing Memorandum


TENANT OVERVIEW




19Tenant Overview

Founded by The Melting Pot Restaurants in 2010, the first Burger21 location opened in the Westchase area of Tampa, Florida. Burger 21 established a clear and fun culture from day one, which is best described by their creative “B-isms” – which range from “B-saucy” and “B-different” to “B-comfortable” and “B-involved.” Prominently outlined on the back of the menu and painted on the walls of the restaurant, Burger 21’s “B-isms” boldly state the brand’s values and what customers can expect from our food and service. Since opening its first restaurant in Tampa, the company has experienced impressive growth and sales that are exceeding the company’s expectations and other select better burger concepts. Heffers Two, LLC is a Franchise operated by Mr. Marc A. Osheroff who owns another Burger 21 location in Davie Florida. Mr. Osheroff is a highly successful businessman with significant real estate and business holdings and has invested over $350,000 in this build-out.

GEOGRAPHIC REACHBurger21 is rapidly growing across the U.S. with initial development focused on the East Coast. The company continues to expan in Florida, Georgia, North Carolina and New Jersey while actively pursuing franchisees in the Midwest and Southwest as well. Burger21 has restaurants under development in Arizona, New York, Pennsylvania and Maryland. Targete markets for franchise opportunities include Dallas, Houston, Miami, Philadelphia and Raleigh.

STRATEGYBurger 21 is a new, innovative fast casual restaurant franchise concept that is changing consumers’ expectations of the “better burger” category. With its chef-inspired creations, unique concept design and exceptional dining experience, Burger 21 is positioned for enormous growth. It is their unique chef-inspired menu that sets the company apart from other burger restaurants.

T E N A N T

Company Name Heffers Two, LLC dba Burger 21

Ownership Private

No. of Locations 2

Headquartered Fort Lauderdale, Florida

Web Site www.burger21.com

Year Founded 2015

Of fe r ing Memorandum

20


Matthews Retail Advisors

Flash Fire Pizza is a fast-casual pizzeria that caters to build-to-order pizza creations that are quick fired in an on-site pizza oven. Their founding team members have extensive restaurant and bar industry expertise, holding roles such as Concept Development, Operations and Management leadership. The location at Federal Marketplace is the first of a planned chain.

T E N A N T O V E R V I E WTenant Flash Fire Pizza

Company Name Flash Fire Pizza

Ownership Private

No. of Locations 1

Headquartered Fort Lauderdale, Florida

Web Site www.flashfirepizza.com

Year Founded 2014

20


21Tenant Overview


22


Matthews Retail Advisors

Established in January 2010 by Ivan Alarcon, El Agave Azul is a restaurant with dishes made from scratch that are inspired by his grandmother’s cooking. Using authentic Mexican ingredients, Agave’s dishes allows patrons to experience the cuisine of Monterrey, Mexico. In mid 2015 a new interpretation of a Modern Mexican Taqueria was formulating, thus allowing El Agave Azul to evolve into Agave Taco Bar.

GEOGRAPHIC REACHEl Agave Azul’s original location was expanded and a second location was open in Davie, Florida. Today, there are a total of four El Agave Azul restaurants in Florida.

T E N A N T O V E R V I E WTenant Agave Taco Bar

Company Name El Agave Azul

Ownership Private

No. of Locations 4

Headquartered Davie, Florida

Web Site www.agave-tacobar.com

Year Founded 2010

22


T E N A N T O V E R V I E WSince 1994, USA Wireless has been providing South Florida with the best in AT&T products and services and wireless accessories. Through acquisitions and franchises awarded by AT&T, the company was able to expand its offerings throughout the area. USA Wireless transitioned from a franchise structure to a single company, creating a central system through which to manage processes and facilitate growth.

STRATEGYAT&T is building its fiber-to-the-home technology to provide residences and business with higher Internet speeds, which will enable other technologies. AT&T has stepped up expansion and adjusted rates of its high-speed Internet service in areas where it competes with services such as Google Fiber. It’s extending its reach into Oregon, Vermont, and Minnesota, to supplement recently added stores in Virginia, Wisconsin, Kansas, California, and New York.

Company Name USA Wireless

Ownership Private

No. of Locations ±56

Headquartered Miami, Florida

Web Site www.shopusawireless.com

Year Founded 1994

23



CONFIDENTIALITY AND DISCLAIMER STATEMENT

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Federal Marketplace located at 2949 N Federal Hwy. Fort Lauderdale, FL 33306 (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l -inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.




O F F E R I N G M E M O R A N D U M

ANDREW GROSSASSOCIATE

STNL

DIRECT +1 .3 10.955 .1773 MOBILE + 1 .435 .659.1404

Andrew.Gross@mat thews .com

2 9 4 9 N F e d e r a l H w y | F o r t L a u d e r d a l e , F L 3 3 3 0 6

™

BROKER OF RECORDKy le Mat thews

DIRECT + 1 .3 10.919.5757Ky le .Mat thews@mat thews .com

License No. BK3367365

CHAD KURZSVP & SENIOR DIRECTOR

STNL

DIRECT +1 .3 10.919.5850 MOBILE + 1 .562 .480.2937

Chad .Kurz@mat thews .com

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