3-tenant pad investment opportunity€¦ · the area, a campus of pasco-hernando community college...

3-TENANT PAD INVESTMENT OPPORTUNITY1 2 3 1 4 C O R T E Z B O U L E V A R D , B R O O K S V I L L E , F L O R I D A 3 4 6 1 3

ACTUAL SITE

C O M I N G S O O N

EXCLUSIVELY MARKETED BY

PATRICK R. LUTHER, CCIM | MANAGING PRINCIPALSRS NATIONAL NET LEASE GROUP

610 Newport Center Drive, Suite 1500 | Newport Beach, CA 92660DL: 949.698.1115 | M: 480.221.4221

[email protected] | CA License No. 01209944

MATTHEW MOUSAVI | MANAGING PRINCIPALSRS NATIONAL NET LEASE GROUP



ACTUAL SITE

Broker of Record: John Artope - FL License No. BK31772617

PARKER WALTER | ASSOCIATESRS NATIONAL NET LEASE GROUP



KEVIN YARYAN | SENIOR VICE PRESIDENTSRS REAL ESTATE PARTNERS

200 South Orange Avenue, Suite 1300 | Orlando, FL 32801DL: 407.563.6121

[email protected] | FL License No. BK3143015

SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest in the newly constructed freestanding pad building, Cortez Shoppes located in Brooksville, FL. The property features a strong three (3) tenant line up of First Watch, Mattress One and Tijuana Flats- 100% corporate backed leases. All of the tenants are on brand new 10-year leases, which shows their long-term commitment to the site and trade area. Each lease features rare rental increases throughout their initial terms or option periods, with 63% of the tenancy experiencing 10% rent increases in October of 2022. The leases are all NNN, with tenants reimbursing for taxes, insurance and common area maintenance. The subject property is located along Cortez Boulevard / Highway 50 (35,500 cars passing by daily), with excellent visibility and access from this main East/ West thoroughfare. The asset is located in a strong retail corridor with nearby national/credit tenants less than 1 Mile to the East along Cortez Boulevard that include Walmart Supercenter, Sam’s Club, Ross Dress For Less, CVS, Hobby Lobby, Dick’s Sporting Goods, Petco, Michael’s, Cheddar’s and more, further increasing consumer traffic and promoting crossover shopping in the trade area. Over 79,000 residents and 19,000 employees support the 5-mile trade area, with an average household income of $57,000.

4 | INVESTMENT SUMMARY | SRS NATIONAL NET LEASE GROUP .

INVESTMENT SUMMARY

ACTUAL SITE

PRICING: $4,200,000

NET OPERATING INCOME: $252,019

CAP RATE: 6.00%

LEASE TYPES: NNN

TENANTS: First Watch, Mattress One, and Tijuana Flats

GUARANTY: All Corporate

LANDLORD RESPONSIBILITIES: Roof & Structure

OFFERING

RENTABLE AREA: 8,650 SF

LAND AREA: 1.49 Acres

PROPERTY ADDRESS: 12314 Cortez Boulevard, Brooksville, FL 34613

YEAR BUILT: October 2017

PARCEL NUMBER: Undergoing Parcelization

OWNERSHIP: Fee Simple (Land and Building)

PROPERTY SPECIFICATIONS

5 | OFFERING HIGHLIGHTS | SRS NATIONAL NET LEASE GROUP .

ACTUAL SITE

OFFERING HIGHLIGHTS

INVESTMENT HIGHLIGHTSBRAND NEW 10-YEAR CORPORATE BACKED LEASES | HIGH QUALITY CONSTRUCTION

• Built in October 2017 with state of the art construction• Rental increases throughout the initial term and options• Demonstrates long-term commitment to the site• E-commerce resistant tenants - restaurant and mattress users

NEAR SIGNALIZED HARD CORNER INTERSECTION | EXCELLENT ACCESS & VISIBILITY

• Situated near the signalized intersection of Cortez Boulevard and Mariner Boulevard (56,000 cars passing by daily)

• Excellent access and visibility from the main thoroughfare, one access point off Cortez Boulevard, two other access points off Evergreen

• Cross parking and access with adjacent Chase Bank and Longhorn Steak House, both currently under construction

NNN LEASES | LIMITED LANDLORD RESPONSIBILITIES | PASSIVE INVESTMENT FEE SIMPLE OWNERSHIP

• Tenants reimburse for all CAM, insurance and taxes• Minimizes expense leakage for a new investor• Ideal, low-management investment for a passive investor

NEXT TO WALMART SUPERCENTER | MAIN EAST/WEST THOROUGHFARE | MAIN RETAIL CORRIDOR SERVING THE TRADE AREA

• The property is about 3 miles east of 589 State Highway (14,800 cars passing by daily)

• The Cortez Shoppes are located in a strong retail corridor with nearby national/credit tenants that include Walmart Supercenter, Sam’s Club, Ross Dress For Less, CVS, Hobby Lobby, Dick’s Sporting Goods, Petco, Michael’s, Cheddar’s and more

• Increases consumer draw and promotes crossover shopping within the subject trade area

STRONG DEMOGRAPHICS IN 5-MILE TRADE AREA• More than 79,000 residents and nearly 19,000 employees support the trade area• $57,000 average household income

6 | INVESTMENT HIGHLIGHTS | SRS NATIONAL NET LEASE GROUP .

ACTUAL SITE

7 | PROPERTY OVERVIEW | SRS NATIONAL NET LEASE GROUP .

PARCEL MAP

PROPERTY OVERVIEW

ACTUAL SITE

ACCESS

TRAFFIC COUNTS

IMPROVEMENTS

PARKING

YEAR BUILT

PARCEL

ZONING

Cortez Boulevard/ State Highway 50: ................................................. 1 Access PointEvergreen Woods Trail: ....................................................................2 Access Points

Cortez Boulevard/ State Highway 50: ............................................................ 35,500Mariner Boulevard: ...................................................................................... 20,500Suncoast Parkway/ State Highway 589: ........................................................ 14,800

There is approximately 8,650 SF of existing building area.

There are approximately 115 parking spaces on the owned parcel. The parking ratio is approximately 13.29 stalls per 1,000 SF of leasable area.

October 2017

Parcel Number: Undergoing Parcelization Acres: 1.49 Square Feet: 67,496

Commercial

35,500CARS PER DAY

Ever

gree

n Woo

ds Tr

ail

HealthSouth Reha-bilitation Hospital of

Spring Hill

Cortez Boulevard/ 50 U.S. Highway

FutureRetailPad

FutureRetailPad

Evergreen Woods Retirement Center

Future Office Development

35,500CARS PER DAY

Cortez Boulevard/ 50 U.S. HighwayEvergreen Woods Trail

Oak Hill Hospital Emergency Room


Vista Park Senior Apartments (103 Units)

Cortez Boulevard / 50 U.S. Highway

Evergreen Woods Trail

35,500CARS PER DAY

HealthSouth Reha-bilitation Hospital of

Spring Hill

MARINER SQUARE


Oak Hill Hospital Emergency Room

589 State Highway

Marine

r Bou

elvar

d35,500

CARS PER DAY

20,500CARS PER DAY

Cortez Boulevard/ 50 U.S. Highway

14,800CARS PER DAY

2017 Estimated Population1 Mile: 3,8033 Mile: 35,228

5 Mile: 79,424

2017 Average Household Income

1 Mile: $44,371

3 Mile: $54,310

5 Mile: $57,380

2017 Estimated Total Employees

1 Mile: 3,868

3 Mile: 9,064

5 Mile: 19,274

EVER

GREE

N WO

ODS T

RAIL

CORTEZ BLVD. - 35,500 VPD

PYLON SIGN

FUTURE RETAIL PAD

FUTURE RETAIL PAD

FUTURE OFFICE DEVELOPMENT

BROOKSVILLE

2017 ESTIMATED POPULATION1 Mile ........................................................... 3,803 3 Mile ......................................................... 35,2285 Mile ......................................................... 79,424

2017 AVERAGE HOUSEHOLD INCOME1 Mile ........................................................$44,371 3 Mile ........................................................$54,310 5 Mile ........................................................$57,380

2017 ESTIMATED TOTAL EMPLOYEES1 Mile ........................................................... 3,8683 Mile ........................................................... 9,0645 Mile ......................................................... 19,274

TAMPA

Brooksville, FloridaBrooksville, County Seat of Hernando County for more than one hundred years, was originally known as Melendez and was settled about 1845. Brooksville is a full service with an estimated population of 8,000. Located at the intersections of U.S. 41, U.S. 98, and Florida State Road 50 in Hernando County, Brooksville is about forty-five miles north of Tampa and fifteen miles east of the Gulf of Mexico and is nestled among beautiful, rolling hills.

It is a thriving residential-commercial community which has experienced continuous growth while preserving its original charm. There are several modern medical facilities, including Brooksville Regional Hospital Inc., Oak Hill Community Hospital and Spring Hill Regional Hospital serving the area, a campus of Pasco-Hernando Community College located at the edge of the city, and a thriving, busy, business section with eleven shopping centers, with a regional airport located six miles south of the city. There are three city parks with walking trails, sports, and picnicking facilities, including a nine-hole golf course, an excellent library and many other desirable features.

Hernando County which is situated at the geographic center of the state with easy access to major highways like the Suncoast Parkway, Interstate 75, State Road 50 and US Highway 41 makes it a strategic business location. Hernando County is unique in the Tampa Bay area with its variety of industrial site options including a vibrant general aviation airport and business complex, private II land, and existing buildings with significant room for growth. Major industries include manufacturing, precision machining, distribution and healthcare. Growing retail trade and a wide selection of professional services enables Hernando County to offer significant choices for its residents.

Hernando County has the right mix of opportunities for companies that are contemplating a move to greater Tampa Bay. An able workforce, competitive start-up incentives, affordable commercial and industrial properties and, as the geographic center of Florida, it is one of the best market access locations in the entire state. In addition, the Brooksville-Tampa Bay Regional Airport & Technology Center offers first-class aviation services, and industrial/corporate land leasing.

Hernando offers another huge advantage; it is a part of Tampa Bay, which makes its position in one of Florida’s largest markets even stronger. Hernando County is able to draw on an expanded workforce and take advantage of terrific educational and training opportunities beyond our borders. By capitalizing on logistics and livability, Hernando County presents site selectors a distinct alternative in the Tampa Bay market. The cost of living consistently ranks the lowest in Tampa Bay. Low taxes, a capable workforce and competitive financial incentives cultivate an environment where businesses and employees both blossom.

14 | AREA OVERVIEW | SRS NATIONAL NET LEASE GROUP .

AREA OVERVIEW

DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

2017 Estimated Population 3,803 35,228 79,4242022 Projected Population 3,945 36,873 83,1182010 Census Population 3,646 33,246 75,166

2017 Estimated Households 1,855 14,247 32,0102022 Projected Households 1,921 14,815 33,3472010 Census Households 1,796 13,679 30,652

2017 Estimated White 91.30% 87.40% 87.10%2017 Estimated Black or African American 3.90% 5.00% 5.20%2017 Estimated Asian or Pacific Islander 1.00% 1.80% 1.70%2017 Estimated American Indian or Native Alaskan 0.30% 0.40% 0.40%2017 Estimated Other Races 2.10% 2.60% 2.70%2017 Estimated Hispanic 10.90% 15.50% 15.30%

2017 Estimated Average Household Income $44,371 $54,310 $57,380 2017 Estimated Median Household Income $31,493 $40,439 $43,249 2017 Estimated Per Capita Income $22,525 $22,257 $23,232

2017 Estimated Total Businesses 250 742 1,8422017 Estimated Total Employees 3,868 9,064 19,274

15 | AREA DEMOGRAPHICS | SRS NATIONAL NET LEASE GROUP .

AREA DEMOGRAPHICS

RENT ROLL

16 | RENT ROLL | SRS NATIONAL NET LEASE GROUP .

ACTUAL SITE

The above information has been obtained from sources we believe to be reliable, however we cannot accept responsibility for its correctness.

Pro Pro Rental Increases Expense Lease LeaseSuite Tenant Name Size Rata Rent Rent Rent Rent Rata Increase Rent Rent Rent Rent Recovery Start End Lease Options

# SF (SF) Monthly $/SF/Mo Annual $/SF/Yr ($) Date Inc. Monthly $/SF/Mo Annual $/SF/Yr Type Date Date1 First Watch 3,200 37% $7,867 $2.46 $94,400 $29.50 36% Oct-22 10% $8,653 $2.70 $103,840 $32.45 NNN Oct-17 Oct-27 3 (5-Year)

(Corporate) Opt 1: $114,240/YrOpt 2: $125,664/YrOpt 3: $138,240/Yr

2 Mattress One 3,200 37% $7,733 $2.42 $92,800 $29.00 36% - - - - - - NNN Apr-18 Apr-28 2 (5-Year)(Corporate) Opt 1: $102,080/Yr

Opt 2: $112,288/Yr

3 Tijuana Flats 2,250 26% $6,000 $2.67 $72,000 $32.00 28% Oct-22 10% $6,600 $2.06 $79,200 $24.75 NNN Oct-17 Oct-27 2 (5-Year)(Corporate) Opt 1: $87,120/Yr

Opt 2: $95,828/Yr

Total Occupied 8,650 100% $21,600 $2.50 $259,200 $29.97 100%Total Vacant 0 0% $0 $0 0%

Total / Wtd. Avg: 8,650 100% $21,600 $2.50 $259,200 $29.97 100%

PRICING SUMMARY

17 | PRICING SUMMARY | SRS NATIONAL NET LEASE GROUP .

ACTUAL SITE

OPERATING EXPENSES IN-PLACE PSF/YRTaxes: 1 $25,950 $3.00

Insurance: 2 $7,353 $0.85

CAM: 3 $23,788 $2.75

Management: 4 $9,560 $1.11

Total: $66,650 $7.71

NOTES1) Taxes are estimated at $3.00 / SF.

2) Insurance is estimated at $0.85 / SF.

3) CAM is estimated at $2.75 / SF.

4) Management is 3% of Effective Gross Revenue.

5) All tenants pay 10% admin fee on CAM in lieu of management fee.

OPERATING CASH FLOW IN-PLACEPotential Rental Revenue: $259,200

Potential Reimbursement Revenue: $59,469

Effective Gross Revenue (EGR): $318,669

Less Expenses: ($66,650)

Net Operating Income: $252,019

PRICING SUMMARYPrice: $4,200,000

Net Operating Income: $252,019

Cap Rate: 6.00%

TIJUANA FLATSTijuana Flats Burrito Company, Inc. owns and operates restaurants. Its restaurants menu includes appetizers, entrees, desserts, and meals for kids. The company also provides catering services to parties; and produces and sells sauces. Tijuana Flats Burrito Company, Inc. was founded in 1995 and is based in Winter Park, Florida. It also has a location in Brooksville.

18 | BRAND PROFILE | SRS NATIONAL NET LEASE GROUP .

BRAND PROFILE

ACTUAL SITE

FIRST WATCH First Watch is the largest and fastest-growing daytime-only restaurant concept in the United States with more than 320 restaurants in 27 states, including more than 240 First Watch restaurants, 75 The Egg & I restaurants and one Bread & Company restaurant in Nashville. The company was founded in 1983 and is based in University Park, Florida. First Watch specializes in award-winning, made-to-order Breakfast, Brunch and Lunch. A recipient of more than 200 “Best Breakfast” and “Best Brunch” accolades, First Watch offers traditional favorites, such as omelets, pancakes, sandwiches and salads, and unique specialty items like Quinoa

Company Type: ..................................... PrivateLocations: ................................................320+Website: ...........................www.firstwatch.com

Company Type: ..................................... PrivateLocation: ....................................................135Website: ........................ www.tijuanaflats.com

MATTRESS ONEMattress 1 One is a quality mattress retailer that understands customers and what they need for a good nights sleep. It carry all the major brands including Tempurpedic, Sealy, Serta, Stearns & Foster, and Simmons.

Company Type: ..................................... PrivateLocation: ..................................................300+Website: .......................... www.mattress1.com

800+PROPERTIES CURRENTLY

REPRESENTED

$2.6B*TRANSACTION VALUE

600+CLIENTS REPRESENTED

IN 2016

250+BROKERS,

PROFESSIONALS,AND STAFF

#1LARGEST REAL ESTATE FIRM

EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA

20+OFFICES

*STATISTICS ARE FOR 2016.

SRS GLOBAL STATS

This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.

ACTUAL SITE

3-tenant pad investment opportunity€¦ · the area, a campus of pasco-hernando community college...

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