Family Central Building 840 - Zetabid · FAMILY CENTRAL BUILDING | OFFERING MEMORANDUM COLLIERS...

COLLIERS INTERNATIONAL SOUTH FLORIDA, LLC P. 1FAMILY CENTRAL BUILDING | OFFERING MEMORANDUM

840 SW 81ST AVENUE

NORTH LAUDERDALE, FL

PRESENTED BY:Ronald Schagrin SIOR

Senior Vice PresidentDIRECT +1 954 652 4605 EMAIL [email protected]

Elias Porras SIOR

Senior Vice PresidentDIRECT +1 954 652 4604 EMAIL [email protected]

Family Central BuildingOffering MemorandumFor Sale | Investment Opportunity

Commercial Real Estate Services

CONFIDENTIALITY & DISCLAIMER STATEMENT

THIS IS A CONFIDENTIAL MEMORANDUM intended solely for your own limited use to determine whether you wish to express any further interest in the Property.

This confidential memorandum contains brief, selected information pertaining to the business and affairs of the Property and has been prepared by Colliers International South Florida, LLC, primarily from information supplied by the Owner. Although this confidential memorandum has been reviewed by representatives of the Owner, it does not propose to be all-inclusive, nor does it contain all the information which a prospective purchaser may require or desire.

Neither the Owner, nor any of its officers, directors, employees or agents, nor Colliers International South Florida, LLC, makes any representation or warranty, expressed or implied, as to the accuracy or completeness of this confidential memorandum or any of its contents, and no legal liability is assumed or is to be implied by any of the aforementioned with respect thereto.

Prospective offerors are advised to verify the information independently. The Owner reserves the right to change the price or any information in this Memorandum, or to withdraw the Property from the market at any time, without notice.

This confidential memorandum shall not be deemed an indication of the state of affairs of the Property or the Owner, nor shall it constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of this memorandum.

By your receipt of this confidential memorandum, you agree that the information contained herein is of a confidential nature and you will not disclose this memorandum or any part of the contents to any other person, firm or entity without prior authorization from Colliers International South Florida, LLC.

OFFERING PROCEDURE

Offers should be submitted in the form of a non-binding Letter of Intent and must specify the following:

• Price

• Length of Inspection Period

• Length of Closing Period

• Amount of earnest money deposit at execution of a Purchase and Sale Contract, and

• Amount of additional deposit upon expiration of Inspection Period

For further information please contact:Colliers International South Florida, LLC100 NE 3rd Avenue, Suite 780Fort Lauderdale, FL 33301+1 954 652 4600


Table of Contents

> INVESTMENT SUMMARYInvestment Highlights ............................................................................................................... 5Property Photographs .............................................................................................................. 6Property Aerial .......................................................................................................................... 7Area Map ................................................................................................................................... 6Submarket Map ......................................................................................................................... 9

> PROPERTY INFORMATIONPhysical Description ................................................................................................................. 11Zoning ........................................................................................................................................ 12Survey ....................................................................................................................................... 13Floor Plans ................................................................................................................................ 14

> MARKET OVERVIEWMarket Report ........................................................................................................................... 17Local Area Overview ................................................................................................................ 18

> FINANCIAL OVERVIEWPricing & Financial Summary .................................................................................................. 20Pro Forma & Net Operating Income ........................................................................................ 21

COLLIERS INTERNATIONAL SOUTH FLORIDA, LLC

> Investment Summary



INVESTMENT SUMMARY

The Offering

Colliers International is pleased to offer the opportunity to acquire the Property commonly known as the Family Central Office Building, located at 840 SW 81st Avenue in North Lauderdale, Florida. The 55,078 square foot four-story office building is currently 100% occupied by one tenant, Family Central, Inc. The Property offers an incredible opportunity for an owner-user or investor to acquire a well maintained asset.

The property is situated on 3.48 acres of land with approximately 250 feet of street frontage along SW 81st Avenue. Zoned B-2 in the city of North Lauderdale, the building can be used for general office, medical or dental.

Investment HighlightsThe Family Central Building is located is located on the east side of SW 81st Avenue between Kimberly Boulevard and SW 7th Place. The Property improvements are consistent with surrounding properties and include asphalt paved parking areas, curbing, signage, landscaping, yard lighting and drainage.

The Property’s strategic positioning offers the following advantages to its occupants:• 266 parking spaces

• Controlled 24-hour keypad access

• 53,246 square feet of net rentable area on a 3.48–acre parcel of land

• Family Central would remain in one to one and a half floors or vacate entirely

• Asking sale price: $4,500,000


INVESTMENT SUMMARY

Property Photographs


INVESTMENT SUMMARY

Property Aerial

NORTH

Family Central Building

SW 81ST AVENUE

KIMB

ERLY

BOU

LEVA

RD


INVESTMENT SUMMARY

Area Map


NORTH


INVESTMENT SUMMARY

Submarket Map

NORTH

Bluestone Ridge



> Property Information



PROPERTY INFORMATION

> GROSS BUILDING AREA 55,078 SF

> PROPERTY ADDRESS : 850 SW 81st AvenueNorth Lauderdale, FL 33068

> YEAR BUILT 1986

> NO. OF FLOORS Four

> PARKING 266 spaces

> ZONING B-2 (Community Business)

> GROSS LAND AREA 3.48 acres

> TENANCY Single or multi-tenant

> SECURITY Controlled 24-hour keypad access

> FOLIO NUMBER49-41-02-09-0622

> NET RENTABLE AREA53,246 SF

> UTILITIESAll utilities including electric, phone, potable water and sanitary sewer are available

> CLIMATE CONTROLCentrally cooled by a roof-mounted A/C chiller system and ceiling mounted air-handler units (16 in total)

> ELEVATORSTwo serve the central office area

Physical Description

Built in 1986, the Property consists of a one building, four-story single tenant Class C office building containing 53,246 square feet of net rentable area on a 3.48 acre parcel of land. The Property is strategically located on the east side of SW 81st Avenue between Kimberly Boulevard and SW 7th Place. The site is irregular in shape and has approximate street frontage of 250 feet along SW 81st Avenue. Surface parking is located in the front, rear and sides of the building. The building is suitable for general office, medical or dental practice use.



Zoning

The B-2 community business district is intended primarily to meet the shopping and limited service needs of several neighborhoods or a substantial territory. Retail stores are intended to include convenience items, fashion and durable goods sales. B-2 districts may be located along traffic arteries or in concentrated shopping centers. All other uses are prohibited as a matter of rights under current zoning.



Survey

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Floor Plans

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FIRST FLOOR

SECOND FLOOR



Floor PlansThird

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THIRD FLOOR


> Market Overview



MARKET OVERVIEW

This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2014. All rights reserved.

OFFICE SNAPSHOTBROWARD COUNTY AREA | Q1 2015

CLASS A & B VACANCY

ABSORPTION CLASS A RENTAL RATES

MEDIAN SALES PRICE/SF

*Snapshot survey encompases the Broward County area and includes Class A, B, and C properties.

UPDATE: SIGNIFICANT LEASES & SALES

LEASE ACTIVITY

PROJECT SUBMARKET TENANT SIZE SF SIGN DATE TRANSACTION TYPE8000 W Sunrise Blvd Plantation AmSurg Corp. 166,793 February-15 New

600 N Pine Island Rd - Lakeside Office Center Plantation Cole, Scott & Kissane 90,489 February-15 New

1100 W McNab Rd Cypress Creek ChildNet 82,854 January-15 New

1000 Corporate Dr - Radice Corporate Center Cypress Creek PRGI, Inc 40,412 January-15 New

SALES ACTIVITY

PROJECT CITY SALE DATE SALES PRICE PRICE/SF TRANSACTION TYPE 7771 W Oakland Park Blvd - Atrium West Sunrise 01/08/15 $10,951,458 $118.15 Investment

Colee Hammock Executive Place Fort Lauderdale 01/05/15 $9,750,000 $304.69 Investment

Spectrum Office Bldg / Citrix Fort Lauderdale 01/20/15 $8,487,000 $116.71 Investment

6245 N Federal Hwy - Wells Fargo Building Fort Lauderdale 02/26/15 $6,200,000 $139.13 Investment

(300)

(200)

(100)

0

100

200

300

1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q

2010 2011 2012 2013 2014 15

Thou

sand

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$27.50

$28.00

$28.50

$29.00

$29.50

$30.00

$30.50

$31.00

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2010 2011 2012 2013 2014 15

5.00%

9.00%

13.00%

17.00%

21.00%

25.00%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2010 2011 2012 2013 2014 15

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q

2010 2011 2012 2013 2014 15

Summary Statistics

Market Indicators Q1 2015 Projected 2015

Vacancy

Net Absorption

New Construction

Rental Rate

Leasing Activity

# of Sales

Sales Price/SF

B

A

Market ReportQ1 2015 | OFFICE SNAPSHOT | BROWARD COUNTY


AREA OVERVIEW

The local area is in the incorporated city of North Lauderdale within the greater Fort Lauderdale MSA which is within Broward County. The local area is in the declining stage of its life cycle and property values are generally decreasing. The area is approximately nine miles northwest of the Fort Lauderdale Central Business District.

The area is designed on an effective grid pattern. West Atlantic Boulevard is the primary east/west road and interchanges with the Florida Turnpike east of the subject. University Drive is the primary north/south route and is heavily developed with commercial uses. SW 81st Avenue and Rock Island Road are secondary routes (north/south).

The Florida’s Turnpike is east of the eastern boundary of the neighborhood and links the area to other interstate and regional highways. The city is served by municipal bus service networked throughout the county and region.

Annual wages in Broward County rose 21.2% in the last ten years. Among the largest metropolitan areas (MSA’s) in Florida, employment grew most rapidly in Fort Lauderdale. Employers in the area can draw from a regional labor force of 960 thousand.

Local Area OverviewPhotos from www.nlauderdale.org

TRAVEL TIMES

Interstate 95 (Cypress Creek Exit/Entrance) 15 minutes

Florida’s Turnpike (Atlantic Boulevard Exit/Entrance) 15 minutes

Fort Lauderdale Executive Airport 15 minutes

Fort Lauderdale/Hollywood International Airport 30 minutes

POPULATION 1 Mile 3 Mile 5 Mile

2014 Total Population 28,287 185,360 453,186

2019 Population 30,703 201,222 491,372

Pop Growth 2014-2019 8.54% 8.56% 8.43%

Average Ave 34.40 39.10 39.50

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2014 Total Households 9,488 72,610 180,618

HH Growth 2014-2019 8.91% 8.69% 8.55%

Median Household Inc $43,924 $44,499 $43,795

Average Household Size 34.40 39.10 39.50

Source: www.fortlauderdale.gov


> Financial Overview



FINANCIAL INFORMATION

Pricing & Financial Summary

Property .....................................................................................................Family Central BuildingProperty Address ......................................... 850 SW 81st Avenue, North Lauderdale, FL 33068Net Rentable Area ...........................................................................................................53,246 SFOffering Price .................................................................................................$4,500,000Price per Square Foot .......................................................................................................... $81.70Gross Building Area ........................................................................................................55,078 SFNumber of Stories .........................................................................................................................4Construction Year .................................................................................................................... 1986Lot Size...........................................................................................................................3.48 AcresNo. of Parking Spaces ...............................................................................................................263

The following demonstrates the value of the land and the building based on information from the Broward County Property appraiser. The subject property is owned by a not-for-profit social services agency and is exempt for real estate taxes.

> HISTORICAL REAL ESTATE TAXES AND ASSESSMENT

The estimate of taxes is based on the market and our local knowledge of this asset type. Note that real estate taxes are much higher based on assumed sale.

HISTORICAL REAL ESTATE TAXES AND ASSESSMENT

Year Land Building Total

2015 $1,064,780 $2,267,840 $4,332,620

2014 $1,064,780 $2,852,470 $3,917,250

2013 $1,064,780 $2,383,360 $3,748,140Source: www.bcpa.net

Expense Actual 2014 Per SF Estimated 2015 Per SF

Real Estate Taxes*Currently Family Central does not pay property taxes (2% base on $4,500,000 purchase)

$89,985* $1.69* $89,985* $1.69*

Insurance (Family Central is required by con-tracts and grants to have Excess insurance due to the nature of its business. The amount shown is based on estimate for Class “C” properties)

$53,246 $1.00 $53,246 $1.00

Maintenance & Repairs $121,325 $2.27 $95,310 $1.79

Janitorial $48,986 $0.92 $48,986 $0.92

Utilities (Tenant + Common) $120,504 $2.67 $95,215 $1.81

Management Fees $38,241 $0.72 $38,241 $0.72

Total $472,287 $9.27 $327,566 $7.92*Currently Family Central does not pay property taxes

Total stabilized operating expenses are estimated as shown above.


FINANCIAL INFORMATION

Pro Forma & Net Operating Income

SUMMARY OF PROJECTED REVENUE AND EXPENSES 2015

SF Net Rent PSF Stable Year

Net Rentable Area 53,246 $18.00 $958,428

PSF Stable Year

Base Rental Income $18.00 $958,428Reimbursements $0.00 $0.00Potential Gross Income $18.00 $958,428Less Vacancy and Collection 5.0% (0.90) (47,921)Effective Gross Income $17.10 $910,507

Operating Expenses - Reimbursable PSF Stable YearReal Estate Taxes $1.69 $89,985Insurance $1.00 $53,246Maintenance & Repairs $1.79 $95,310Janitorial $0.92 $48,986Utilities (tenant + common) $1.80 $95,842Management Fees 4.2% $0.72 $38,241*Currently Family Central does not pay property taxesTOTAL EXPENSES $7.92 $421,708NET OPERATING INCOME $9.18 $488,799

Below is a summary the income and expenses supported above and our stable Net Operating Income (NOI) forecast. The rents are consistent with market so that the pro-forma year one is considered an economically stable operation.

CONTACT DETAILS

DIR +1 954 652 4600FAX +1 954 667 7945

Colliers InternationalSouth Florida, LLC100 NE 3rd Avenue, Suite 780Fort Laiuderdale, FL 33301

www.colliers.com

Family Central Building 840 - Zetabid · FAMILY CENTRAL BUILDING | OFFERING MEMORANDUM COLLIERS...

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