GANDY BLVD / BRIDGE 670,000 SF 4130 W. GANDY BLVD. TAMPA, FL DISTRIBUTION CENTER DISTRIBUTION CENTER DISTRIBUTION MACY’S
S DALE MABRY HWY CONFIDENTIAL OFFERING MEMORANDUM
SELMON EXPRESSWAY The National Industrial Advisory Group of Cushman & Wakefield has been retained by the Owner as the exclusive agent for the sale of Macy’s Distribution Center (the “Property”), located at 4130 W. Gandy Boulevard in Tampa, Florida a 670,000 SF industrial warehouse in the heart of South Tampa. With a location ½ mile from Dale Mabry Hwy and Gandy Boulevard, a major intersection centered around the expansion of the Selmon Expressway and Gandy Bridge, two of Tampa’s most important transportation arteries, the Property has potential as a strong last mile distribution option. With ease of access to Tampa’s CBD, St. Petersburg’s CBD, and South Tampa, the Property is optimally positioned to leverage its multiple ingress/ egress access points and cross loading to maximize its distribution capacity. Since the Property includes over 39 acres, it also presents a strong mixed-used redevelopment opportunity with potential Office, Retail & Multi-Family components. Concept plans account for over 900+/- Multi-family units, 5 acres of outparcel retail, and approximately 9.5 acres for a mixed-use Retail, Office and Residential development. The redevelopment would create an opportunity to fulfill a gap in the submarket for Class-A, mixed use space. TABLE OF CONTENTS
Investment Highlights 5
Property Description 6
Market Overview 8
Demographics & Transportation 10
FOR MORE INFORMATION, PLEASE CONTACT:
LOCAL INDUSTRIAL CAPITAL MARKETS MIKE DAVIS RICK BRUGGE Vice Chairman Executive Managing Director [email protected] [email protected] 813 204 5331 813 204 5365
RICK COLON DOMINIC MONTAZEMI Director Managing Director [email protected] [email protected] 407 541 4422 305 533 2850
REDEVELOPMENT CONTACTS JEANNETTE JASON PATRICK BERMAN Director Senior Director [email protected] [email protected] 813 204 5320 813 204 5363
LEASING LISA ROSS TREY CARSWELL Senior Director Senior Director [email protected] [email protected] 813 424 3211 813 230 6131
NATIONAL CAPITAL MARKETS ADAM SPIES ANTHONY PASQUAL Chairman Director 212 841 5903 212 841 7679 [email protected] [email protected] 670,000 SF TAMPA, FL
TAMPA INTERNATIONAL AIRPORT
TAMPA
ST PETE-CLEARWATER BRANDON INTERNATIONAL AIRPORT MACY’S DISTRIBUTION CENTER
GANDY BRIDGE
MACDILL AIR FORCE BASE
ST PETERSBURG
Excellent opportunity to acquire a well located industrial asset with strong redevelopment potential.
4 | MACY’S DISTRIBUTION CENTER - TAMPA INVESTMENT HIGHLIGHTS POTENTIAL REDEVELOPMENT PLAN STRATEGICALLY LOCATED FOR EASY TRANSPORT AND HIGHWAY ACCESS Located ½ mile from Dale Mabry Highway and Gandy Boulevard, a major intersection centered around the expansion of the Selmon Expressway and Gandy Bridge, two of Tampa’s most important transportation arteries Through ease of access to multiple highway networks including the Selmon Expressway, I-275 and I-75, the Property is centrally located in a geographic center of Tampa Bay, allowing eCommerce last-mile delivery to reach 90% of the MSA’s population within 45 minutes The Property’s strategic location in bustling South Tampa, creates strategic access to all centralized urban areas in the Tampa Bay area including Tampa’s CBD within 5 miles and St. Petersburg’s CBD in 16 miles
OPPORTUNITY TO ACQUIRE A LAST-MILE 670,000 SF SINGLE- TENANT INDUSTRIAL WAREHOUSE/ DISTRIBUTION CENTER Ability to leverage the Property’s multiple ingress/ egress access points, cross loading, and excessive parking, to maximize distribution capacity to the greater Tampa Bay area Approximately 23 acres of abundant vehicle and trailer parking space, with the capacity to store, maintain, and fuel trailer fleet on-site Strong opportunity for brand name—single tenant last mile eCommerce distribution center to leverage close proximity of residential neighborhoods
STRONG UPSIDE POTENTIAL IN REDEVELOPMENT Substantial total Property area of 39 acres drives significant potential for a mixed-used redevelopment opportunity with Office, Retail & Multi-Family components Redevelopment of the Property would fulfill a gap in the submarket for Class-A, mixed use space, by satisfying a need for multi-family units in a growing renter market The Property creates strong potential of risk adjusted returns by offering new multi-family, retail and office spaces in a market with few deliverables for the surrounding 10-mile radius household population of 183,260
CUSHMAN & WAKEFIELD | 5 BUILDING SPECIFICATIONS
PROPERTY DESCRIPTION
Address 4130 W Gandy Blvd, Tampa, FL 33611
Location Property location is one mile from Selmon Expressway access point
Two ingress/egress points to access Gandy Blvd. 1 ingress/egress point on Pearl Ave for Ingress/Egress distribution vehicles
Total Size 670,000 SF (Includes 38,000 SF of office/ show room space)
Land Size 39.16 Acres
Year Built 1954
Number of Floors 1 floors
Zoning CI - Commercial Intenstive
Parking 225 spaces. The parking lot was recently repaved in 2017
Flood Zone Zone AE
Exterior Finishes Masonry Construction and concrete with cross-dock loading
Structure 1-story concrete floor
Windows and Doors 108 48’ dock-high doors and 1 drive-in door
Ceilings 25’ clear height, with vinyl tiled tiled ceilings in good condition
HVAC Age of HVAC is approximately 17 years old and is in fair condition
Air Compressors All 3 air compressors are in good condition, with 2/3 at 2 years in age and 1 new
The Property has 3 aboveground diesel storage, including 8,000-gallon tank used for Storage Tanks refueling trucks, and 2 smaller tanks with 700 and 800 gallons that store fuel for the emergency generator.
Sprinklers Sprinklers are in good condition
Roofs Age of roof is 12 years and is in good condition
Lightning Interior and exterior LED lightning
6 | MACY’S DISTRIBUTION CENTER - TAMPA SITE PLAN
GANDY BLVD 4130 W GANDY BLVD
PEARL AVE
CUSHMAN & WAKEFIELD | 7 INDUSTRIAL MARKET OVERVIEW
ECONOMY As of March 2020, the unemployment rate in Tampa/Hillsborough County increased by 100 basis points (bps) over the past twelve months to 4.2%. Despite near-term job losses due to Covid-19, Tampa Bay’s economy added 27,200 jobs for an annual growth rate of 2.2% in the past year. Transportation, warehousing, and utilities experienced the bulk of job gains, adding 3,100 jobs for a growth rate of 8.1%.
MARKET OVERVIEW The direct vacancy rate ended the quarter at 5.8%, marking the 19th consecutive quarter the direct vacancy rate has remained at or below 7.0%. The Near Eastside submarket recorded a vacancy rate of 1.1%. The Near Eastside and Airport submarkets continued to have some of the lowest vacancy rates in Tampa Bay as tenants sought out desirable infill and last mile locations. Direct triple net (NNN) asking rent closed the first quarter at $6.56 per square foot (psf). Warehouse/distribution assets increased 3.0% YOY to $5.70 psf, marking the 11th consecutive quarter where the asking rate was greater than $5.00 psf. The most notable warehouse/distribution growth was in the East Side Central/South submarket where rents increased 12.2% YOY to $5.74 psf. Direct absorption year-to-date was approximately +327,000, nearly four-times the amount when compared to 2019 figures. Warehouse/distribution assets led all product types with +337,364 sf of absorption. Leasing activity end the first quarter with over 677,000 leased. Warehouse/distribution assets accounted for approximately 575,000 sf leased, over double figures from this time last year.
8 | MACY’S DISTRIBUTION CENTER - TAMPA SALE COMPS
SALE SALE BUILDING NAME RSF CLASS $ /SF CAP RATE % OCC BUYER SELLER DATE PRICE GCP (Graham Davidoff of Geneva Feb-19 131,800 B $14.8M $112 6.21% 100% Gramercy (Blackstone) Commercial) ASB Capital 8800 Adamo Jun-19 368,664 B $26.3M $71 6.00% 100% TriGate Capital Management Tampa Distribution Link Industrial High Street Realty Jul-19 B $69.3M $73 5.20% 94% Center 955,000 Properties Company Bryan Dairy East Oct-19 281,214 B $29.4M $105 5.00% 87% GID Industrial Starwood Capital Hanna Distribution Jan-20 145,303 B $12.0M $83 5.64% 88% Dogwood/TPG Kennedy Investments Center I & II 5300 Adamo Feb-20 201,873 B $15.9M $79 5.78% 100% KKR Keating Resources Averages $87 5.65% 95%
LEASE COMPS
TENANT BUILDING SF LEASE TERM RATE TI ESC Rj Schinner Madison Industrial Park 100,000 60 $4.95 $0.35/psf TI 3.0% Fanatics Licensed Sports Oak Creek 222,000 36 $3.60 $0.00 2.0% Group Amazon.com 13133 34th St N. Clearwater, FL 106,000 120 $9.83 $2.00 3.0% ID Logistics 2007 Gandy Blvd. 158,836 72 $7.25 Confidential 3.0% 1201Old Hopewell Rd. Tampa, FL IEH Auto Parts 184,794 60 $4.25 $0.05 psf 3.0% 33619 5060 Great Oak Dr. Lakeland, FL Star Distribution 200,000 36 $4.35 $0.00 3.0% 33801 Hardware Resources, Inc. County Line Logistics - Blg 3 119,567 62 $4.85 $0.00 3.0% Fanatics License Sporting 4408 W Linebaugh Ave 126,270 36 $3.84 n/a CPI Group, LLC Averages 60 $5.35 $0.35 2.8%
CUSHMAN & WAKEFIELD | 9 DEMOGRAPHICS: POPULATION & WORKFORCE
DEMOGRAPHICS Population 3 miles 5 miles 10 miles Hillsborough County Florida 2010 Total Population 64,252 110,002 437,440 1,229,229 18,801,295 2019 Total Population 70,547 123,721 482,394 1,416,617 20,967,202 2024 Total Population 73,534 130,752 503,846 1,526,449 21,938,831 Renter Occupied Housing Units 2010 Renter Occupied Units 11,555 20,915 83,163 185,210 2,421,821 2019 Renter Occupied Units 13,575 25,490 98,835 228,667 2,901,851 2024 Renter Occupied Units 14,321 27,515 104,524 246,580 3,055,107
KEY TRANSPORTATION & LOGISTICS ADVANTAGES
INTERSTATE 275 (6 miles from the Property) is an auxiliary Interstate Highway starting in Palmetto, curving west towards the Skyway Bridge, crossing over Tampa Bay and continuing into Lutz, where it ends in Wesley Chapel. I-275 is a major transportation artery connecting all of Tampa Bay and intersects through an interchange with I-4 in Downtown Tampa, creating ease of access to Central Florida and the East Coast. INTERSTATE 75 (14 miles from the Property) I-75 is a major cross-country, north–south route, one of the longest in the U.S., from southern Florida to the easternmost point of the Upper Peninsula of Michigan. It stretches across the entire peninsula of Florida, starting from the Miami area, up the Gulf Coast, and through Tampa before moving into the center of the state leading into Atlanta, Georgia. I-75 continues, passing through 6 states in total. INTERSTATE 4 (8 miles from Property) I-4 spans approximately 133 miles (214 km) along a generally southwest–northeast axis, connecting several major expressways throughout Central Florida including US 301 (Riverview), US 98 (Lakeland), and US 17 (Jacksonville). Through an interchange with I-275, the Selmon Expressway, and I-75, I-4 serves as a major transportation hub, connecting the sunshine state across expansive geographic boundaries. GATEWAY EXPRESSWAY (10.5 miles from the Property) is currently under construction on the westbound side of the Gandy Bridge to create two new 4-lane elevated tolled highways that will provide express connections from US-18 to I-275 and from the Bayside Bridge to I-275. The expansion of I-275 begins at the intersection of I-275 and the Gandy Bridge, and continues North to provide ease of access to west, north, and south of Pinellas County. The project includes the construction of two tolled express lanes, one in each direction (northbound and southbound), from the south of Gandy Boulevard to north of 4th Street North to enhance capacity and improve traffic mobility. It will also create an express airport access road to the St. Pete-Clearwater International (PIE) Airport, accessed through a connector with I-275, to advance capacity and ease of access.
10 | MACY’S DISTRIBUTION CENTER - TAMPA TAMPA INTERNATIONAL AIRPORT
TAMPA
ST PETE-CLEARWATER BRANDON INTERNATIONAL AIRPORT MACY’S DISTRIBUTION CENTER
GANDY BRIDGE
MACDILL AIR FORCE BASE
ST PETERSBURG
CUSHMAN & WAKEFIELD | 11 THE SELMON EXTENSION
SELMON EXPRESSWAY (0.2 miles from the Property) connects Brandon, downtown Tampa, South Tampa, to major traffic arteries to create greater connectivity to the entire Tampa Bay area. The 14-mile highway is currently under construction, creating a direct (Eastbound) extension to the Selmon Expressway, where it intersects with I-75, or Dale Mabry, a major transportation artery connecting South and North Tampa, or (Westbound) to the Gandy Bridge, creating access to St. Petersburg and all of Pinellas County through an interchange with I-275 that feeds into US- 19. The construction of express tolled lanes creates express connections to reach Tampa’s Bay’s MSA in all directions. The extension is projected to be completed in mid-2021, resulting in at least 35% greater neighborhood traffic capacity on Gandy Boulevard.
MACY’S DISTRIBUTION CENTER
12 | MACY’S DISTRIBUTION CENTER - TAMPA The Selmon Extention is a 1.9 mile toll lane in the median of Gandy Blvd that will offer a choice for regional travelers: use Gandy Blvd for local destinations or use the Selmon Expy for a direct connection to the Lee Selmon Expy, Dale Mabry Hwy or the Gandy Bridge. By separating commuter traffic from local trips, the Selmon Extension will offer safer and smarter regional connectivity while alleviating the traffic congestion on Gandy Blvd and creating greater capacity and MACY’S access to neighborhoods and businesses. DISTRIBUTION CENTER
MACY’S DISTRIBUTION CENTER
Estimated reduction of intersection traffic signal wait times at West Shore Blvd, Manhattan Ave, Lois Ave and Dale Mabry
CUSHMAN & WAKEFIELD | 13 DISTRIBUTION CENTER
FOR MORE INFORMATION, PLEASE CONTACT:
LOCAL INDUSTRIAL CAPITAL MARKETS MIKE DAVIS RICK BRUGGE Vice Chairman Executive Managing Director [email protected] [email protected] 813 204 5331 813 204 5365
RICK COLON DOMINIC MONTAZEMI Director Managing Director [email protected] [email protected] 407 541 4422 305 533 2850
REDEVELOPMENT CONTACTS JEANNETTE JASON PATRICK BERMAN Director Senior Director [email protected] [email protected] 813 204 5320 813 204 5363
LEASING LISA ROSS TREY CARSWELL Senior Director Senior Director [email protected] [email protected] 813 424 3211 813 230 6131
NATIONAL CAPITAL MARKETS ADAM SPIES ANTHONY PASQUAL Chairman Director 212 841 5903 212 841 7679 [email protected] [email protected]