OFFERING Miami Grill MEMORANDUM 1505 S Federal Highway Dania Beach, FL 33004
ACTUAL PROPERTY PHOTO
ACTUAL PROPERTY PHOTO The information contained in the following Marketing Brochure is proprietary and strictly CONFIDENTIALITY confidential. It is intended to be reviewed only by the party receiving it from Tiktin Real AND DISCLAIMER Estate Investment Services ("TREIS") and should not be made available to any other person or entity without the written consent of TREIS. This Pricing Analysis has been prepared to provide summary, unverified information to the current ownership, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. TREIS has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Pricing Analysis has been obtained from sources we believe to be reliable; however, TREIS has not verified, and will not verify, any of the information contained herein, nor has TREIS conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
NON-ENDORSEMENT NOTICE:
Tiktin Real Estate Investment Services, Inc. (“TREIS”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Pricing Analysis. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of TREIS, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of TREIS, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
2 FINANCIAL ANALYSIS Pricing Analysis ...... 5 TABLE OF EXECUTIVE SUMMARY Investment Overview 7 CONTENTS Tenant Overview ...... 8 - 9 PROPERTY DESCRIPTION Aerial Photo ...... 10 Local Retailer Map ...... 11 Local Aerial ...... 12 Regional Map ...... 13 MARKET OVERVIEW Market Overview ...... 15 - 18 COMPETITIVE PROPERTY SET Rent Comparables Map ...... 21 Rent Comparables ...... 22 - 24 Sales Comparables Map - Single Tenant 26 Sales Comparables - Single Tenant 27 - 29 DEMOGRAPHIC Demographic Summary ...... 31 - 32
3 FINANCIAL ANALYSIS PRICING ANALYSIS
MIAMI GRILL LEASE SUMMARY FINANCIAL 1505 S Federal Highway, Dania Beach, FL 33004 Lease Type: Double Net (NN) OFFERING PRICE Roof And Structure: Landlord Responsible ANALYSIS Price*: $1,650,000 Lease Guarantor: Franchisee Cap Rate: 6.18% Original Lease Term: 10 Years NOI: $101,971 Rent Commencement Date: November 4th, 2015 Gross Leasable Area (GLA): 2,554 SF Lease Expiration Date: November 3rd, 2025 Price/Rentable SF: $646.05 Remaining Lease Term: 6 Years Lot Size: 21,744 SF (0.50 Acres) Options: 4, (5) Year Year Built/Renovated: 1993/2016 Increases: CPI Increase 3rd Option
ANNUALIZED OPERATING DATA RENT INCREASES ANNUAL RENT MONTHLY RENT CAP RATE CURRENT - 11/3/2025 $101,971 $8,497 6.18%
Option Period 1 11/4/2025 - 11/3/2030 $95,971 $7,997 5.81% Option Period 2 11/4/2030 - 11/3/2035 $101,971 $8,497 6.18% Option Period 3 11/4/2035 - 11/3/2040 $121,411 $10,117 7.35% Option Period 4 11/4/2040 - 11/3/2045 $148,411 $12,367 9.00%
BASE RENT ($39.92/SF) $101,971 TOTAL RETURN 6.18%/$101,971 * This price includes the excess land of approximately 5,500 SF adjacent to the parking lot to the east.
-This lease calls for gross rent to be inclusive of property taxes, which are paid directly by landlord. The expected property taxes for 2019 based on the 2019 Notice of Proposed Property Taxes would be $18,029. -During the third and fourth option periods, the increases are based on the CPI increase for the specified option period.
5 EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS ■■ Incredible Signalized Corner ■■ Average Daily Traffic Count Exceeds 65,000 Vehicles Per Day ■■ Double Net Lease (NN) - Minimal EXECUTIVE Landlord Responsibilities, Only Roof & Structure SUMMARY ■■ 6 Years Remaining on 10 Year Original Lease ■■ Excess Land Included In Sale Price ■■ Excellent Access & Visibility ■■ Directly Across The Street From The Publix - Anchored Westlake Commons
INVESTMENT OVERVIEW Tiktin Real Estate Investment Services is pleased to present this Miami Grill located in Dania Beach, Florida. This investment offering consists of a freestanding Miami Grill with 6 years remaining on a double-net (NN) lease. This Miami Grill has been in operation since its construction in 1993 and was completely renovated in 2016. This Miami Grill is situated at the signalized intersection of Sheridan Street (30,000 vehicles per day) and US1 (35,000 vehicles per day) on a hard corner, which creates an increased volume in traffic flow. This corner property is comprised of .5 acres and offers two points of ingress and egress allowing for easy traffic flow throughout the parking lot and drive thru lane. The recently completed Westlake Commons, anchored by Publix and across the street from this Miami Grill, is a driver to the area. This new retail property shows the strength of the demographics in the immediate area where the population has increased by 12% since 2010 in the 3-mile radius surrounding the subject property. This Miami Grill is situated just minutes from the beaches to the east and I-95 to the west. The demographics surrounding this property include a population in excess of 260,000 within a 5-mile radius and an average household income exceeding $70,000.
7 TENANT OVERVIEW
Property Property: Miami Grill Property Address: 1505 S Federal Highway, Dania Beach, FL 33004
Tenant Tenant Trade Name: Towing You, LLC dba Miami Grill TENANT Ownership: Private Company Tenant: Franchisee Guarantee OVERVIEW Lease Guarantor: Franchisee
LEASE Lease Commencement Date: November 4th, 2015 Rent Commencement Date: November 4th, 2015 Lease Expiration Date: November 3rd, 2025 Lease Type: Double Net (NN) Roof & Structure: Landlord Responsibility Lease Term: 10 Years Term Remaining: 6 Years Remaining ACTUAL PROPERTY PHOTO Net Operating Income: $101,971 Increases: CPI Increase During 3rd Option
OPTIONS Options to Renew: 4 (5) Year Options Options to Terminate: No Options to Purchase: No First Right of Refusal: No No. of Locations: 31 Total Locations Headquartered: Fort Lauderdale, Florida
ACTUAL PROPERTY PHOTO
Previously known as Miami Subs Grill, Miami Grill is a privately held restaurant chain, based in Fort Lauderdale, Florida. The company was founded 31 years ago in 1988, and now has 31 locations operating globally. There are 2 locations in Malaysia, 1 in Myanmar, 1 scheduled to be opened in Panama, and one scheduled to be opened in Pakistan. Prior to founding Miami Grill, Gus Boulis also founded Mr. Sub. Boulis was extremely successful with Mr. Sub and ended his professional career there with over 200 locations. In 1999, Nathan's Famous purchased Miami Grill for $14.4 million. Since then, Nathan's Famous sold Miami Grill to a private investment group. In 2013, an equity stake in the chain was purchased by Armando Cristian Perez, who is better known by his stage name, Pitbull. 8 PROPERTY DETAILS THE OFFERING Property Miami Grill Property Address 1505 S Federal Highway, Dania Beach, FL 33004
SITE DESCRIPTION Gross Building Area: 2,554 SF PROPERTY Lot Size: 21,744 (0.5 Acres) Ownership: FEE SIMPLE
DESCRIPTION Year Built/Renovated: 1993/2016 ACTUAL PROPERTY PHOTO Number of Stories: 1 Story Parking: 23+ Parking Ratio: 9.01/ 1,000 SF Topography: FLAT
PARCELS Number of Tax Parcels 1 APN 5142-03-07-0540
CONSTRUCTION Foundation Concrete ACTUAL PROPERTY PHOTO Framing Concrete Exterior Concrete Parking Surface Asphalt Roof Asphalt Shingles
MECHANICAL HVAC Central Air Fire Protection Fully Sprinkled & Monitored Utilities City of Dania Beach
ZONING PUD: SFED-MU
ACCESS POINTS Sheridan St. & SE 15th St. Via South Federal Highway
UTILITIES Gas Tenant Electric Tenant Water Tenant Sewer Tenant Trash: Tenant 9 PROPERTY DESCRIPTION
AERIAL PHOTO
MIAMI GRILL
10 PROPERTY DESCRIPTION
LOCAL RETAILER MAP
11 PROPERTY DESCRIPTION
LOCAL MAP
MIAMI GRILL
12 PROPERTY DESCRIPTION
REGIONAL MAP
SUBJECT PROPERTY
13 MARKET OVERVIEW THE CITY OF DANIA BEACH OVERVIEW
Historically dating back to the 1880's, Dania Beach is the first and oldest city in Broward MARKET County. Early immigrants prospered in tomato farming, utilizing the FEC railroad line to ship OVERVIEW the produce throughout the US, contributing to the local prosperity of the city. The city become known as "The Tomato Capital of the World". Located just minutes from Fort Lauderdale Airport, Dania Beach is a very active city with several landmark attractions. It is home to one of the largest jai alai frontons in the country with attendance at games in the tens of thousands. Incorporated in 1904, Dania Beach has grow to become a major player in South Florida's academic, marine, and tourism industries. The city's extensive recreation program includes a beach and fishing pier, pools, tennis courts, neighborhood parks and community centers that provide a wide variety of programs for youth, adults and senior citizens. Dania Beach is also home to a casino, two amusement centers, and commercial airlines. While being the home to several entertainment attractions, Dania Beach is also a quant. It is home to the Fishing Hall of Fame & Museum and also known as the antique capital of the south. Market Highlights Large Tourist Hub
■■ Fort Lauderdale International Airport less than a mile away
■■ Three new hotels built in 2018, totaling 390 new hotel units - Wyndham Garden, Comfort Suites, and The Morrison Hotel Rapidly Developing
■■ Including the three hotels, over 750,000 SF of commercial buildings were developed in Dania Beach as well as Dania Pointe, the 102-acre premier mixed-use project
■■ Strong economy with headquarters for Sun Air International, American Maritime Officers, and Chewy.com
15 BROWARD COUNTY OVERVIEW
Market Highlights Strong Population Growth MARKET ■■ Broward County’s population continues to OVERVIEW grow, with in-migration accounting for a large share of new residents. Excellent Corporate location ■■ Access to Latin American markets Housing ■■ High Density housing market that is more affordable than homes in neighboring coastal communities
GEOGRAPHY
Broward County has little room for expansion. The metro is bordered to the north and south by the Palm Beach and a Miami-Dade counties, respec- tively, and the Atlantic Ocean to the east. The Everglades to the west are protected and unavail- able for development. The 23 miles of shoreline and 300 miles of inland waterways in the county provide the means for recreation and transport.
16 BROWARD COUNTY OVERVIEW Broward County contains 31 municipalities and spans 1,197 square miles, with two - thirds of the area covered by the Everglades. Fort Lauderdale is the largest city in the county with 175,800 residents followed by Pembroke Pines. Limited MARKET land is available for development, pushing any significant growth upward rather than outward.
OVERVIEW Infrastructure
Broward County is accessible to motorists, with major north- south thoroughfares including Interstate 75 and Florida’s Turnpike. Interstate 595 and the Sawgrass Expressway serve as the primary east-west corridors. Fort Lauderdale/ Hollywood International Airport provides nonstop services to cities in the United States, Canada and the Caribbean. The airport is located less than 4 miles from Port Everglades, one of the busiest cruise ports in the world. In addition, the port is an active cargo and container facility.
Economy
Broward County has a diverse economy not dominated by a single industry. Key drivers of the local economy include tourism, healthcare, biotechnology and international commerce. Tourism is a major component of the Broward County economy, and both air traffic and hotel occupancy have rebounded from the recession. As major point of access to both international commerce and cruise tourism, Port Everglades generates roughly $26 billion of economic activity per year. More than 3.6 million cruise passengers use the port each year, and currently, some of the largest cruise-liners in the world dock at Port Everglades. Healthcare is another major part of the county’s economy. The metro has a significant population of elderly residents and will likely be disproportionately affected by the aging baby boomer generation. Biotechnology research has emerged as a growth industry in the area, and efforts are underway to attract these companies to the county. Numerous corporations have made Broward County their headquarters or regional operations center. The mild climate, reasonable cost of living, and proximity to Miami and Latin America attract diverse companies, including Citrix Systems, AutoNation and Heico.
17 BROWARD COUNTY OVERVIEW LABOR
Broward County employment growth will out-pace the national average over the next five years as the local economy gains traction. Almost all employment sectors will expand during this time, with the most significant MARKET growth anticipated in education and health services. Currently, trade, transportation and utilities are the largest OVERVIEW employment sectors in Broward County, followed by the professional and business services segments.
The growing number of corporations placing headquarters in the metro area has generated an influx of higher paying business services employment. Though such jobs tend to be mobile in the Internet age, Broward County is positioned for expansion in this sector, with plenty of Class A office space available to meet tenants’ requirements. Additionally, the area’s above - average pay for corporate workers and the county’s current housing prices well below their pre-recession peak are factors likely to attract more corporate relocations.
After slowing during the recession, leisure and hospitality activity has begun to pick up. This sector will add employees at an annual rate of 3.0 percent over the next five years, aided by an increase in cruise ships using Port Everglades and rising hotel occupancy. The education and health services sector also expanded in recent years. As the population in the metro areas continue to grow, residents will drive the need for more workers in healthcare. At the same time, educators will likely be needed to a greater degree due to continuing migration to the county. DEMOGRAPHICS
The county had tremendous population growth since 1990, increasing more than 45 percent to over 1.8 million residents. With little land left for development and aging citizenry, annual population growth will taper off to 0.8 percent over the next five years. Broward County will continue to become wealthier, as the median household income, currently around $52,000 annually, will rise by about 19 percent over the next five years. Part of this up-tick is due to an expansion in higher paying professional jobs that will exceed the addition of lower-paying service jobs catering to the tourism industry. An increase in education attainment has helped boost income levels. In Broward County, nearly 30 percent of residents age 25 and older have a bachelor’s degree, slightly above the U.S. level of 28 percent. This is partially attributable to the high percentage of educated residents from outside of the United States who are attracted to job opportunities in the region.
18 COMPETITIVE PROPERTY SET RENT COMPARABLES COMPETITIVE PROPERTY SET
RENT COMPARABLES MAP
2
1 MIAMI GRILL
4
Rent Comps
Subject Property 3 1 Wendy's 2 Pollo Tropical 3 PDQ
4 Miracle Leaf & Gym
21 COMPETITIVE PROPERTY SET
Average Occupancy
Average 100% 100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00% Subject Property Wendy's Pollo Tropical PDQ Miracle Leaf & Gym
Rent/SF
$60.00
$50.00 Average $44.31
$40.00
$30.00
$20.00
$10.00
$- Subject Property Wendy's Pollo Tropical PDQ Miracle Leaf & Gym
22 COMPETITIVE PROPERTY SET
RENT COMPARABLES
Subject Property 1505 S Federal Highway, Dania Beach, FL 33004
Date Surveyed: 10/1/2019 Occupancy: 100% Rent/SF: $39.92 Gross Leasable Area: 2,554 SF Year Built/Renovated: 1993/2016 Lease Type: NN COMMENTS: Miami Grill has 6 years remaining on its original 10-year lease.
1 Wendy's 4700 S State Road 7, Hollywood, FL 33314
Date Surveyed: 10/1/2019 Occupancy: 100% Rent/SF: $58.54 Gross Leasable Area: 2,562 SF Year Built: 2019 Lease Type: NNN COMMENTS: This Wendy's is expected to be completed by November 2019 and will be on a new 20 year NNN lease.
2 Pollo Tropical 2675 N University Drive, Sunrise, FL 33322
Date Surveyed: 10/1/2019 Occupancy: 100% Rent/SF: $42.96 Gross Leasable Area: 3,239 SF Year Built/Renovated: 2000 Lease Type: NNN COMMENTS: This Pollo Tropical has 4 years remaining on its NNN lease. There have been 1% annual increases.
23 COMPETITIVE PROPERTY SET
RENT COMPARABLES
3 PDQ 11211 Pines Boulevard, Pembroke Pines, FL 33026
Date Surveyed: 10/1/2019 Occupancy: 100% Rent/SF: $40.12 Gross Leasable Area: 4,598 SF Year Built: 2019 Lease Type: NNN COMMENTS: This recently complete PDQ restaurant is on a new 20 year NNN lease.
4 Miracle Leaf & Gym 1419 S Federal Highway, Dania, FL 33004
Date Surveyed: 10/1/2019 Occupancy: 100% Rent/SF: $40.00 Gross Leasable Area: 2,800 SF Year Built/Renovated: 1958 Lease Type: NNN COMMENTS: This two-tenant building recently leased a space at a starting rate of $40/SF NNN.
24 SALES COMPARABLES COMPETITIVE PROPERTY SET
SALES COMPARABLES MAP
Recent Sales
Subject Property
1 Pollo Tropical - Plantation
2 PDQ - Pembroke Pines
3 Starbucks - Pembroke Pines
4 Metro Diner - Pembroke Pines
1
MIAMI GRILL
2 3 4
26 COMPETITIVE PROPERTY SET
Price/SF Building
$1,400.00
$1,200.00
$1,000.00 Average $860.86 $800.00
$600.00
$400.00
$200.00
$- Subject Property Pollo Tropical - PDQ - Pembroke Starbucks - Metro Diner - Plantation Pines Pembroke Pines Pembroke Pines
Cap Rate
7.00%
6.00% Average 5.39%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00% Subject Property Pollo Tropical - PDQ - Pembroke Starbucks - Metro Diner - Plantation Pines Pembroke Pines Pembroke Pines
27 COMPETITIVE PROPERTY SET
SALES COMPARABLES
Subject Property 1505 S Federal Highway, Dania Beach, FL 33004
Sales Price: $1,650,000 Gross Leasable Area (GLA): 2,554 SF Price/SF Building: $646.04 Cap Rate: 6.18% Lot Size: 21,744 SF (0.50 Acres) Year Built/Renovated: 1993/2016 COMMENTS: This price includes the excess land of approximately 5,500 SF adjacent to the parking lot to the east.
1 Pollo Tropical - Plantation 300 N State Road 7, Plantation, FL 33317
Close of Escrow: 10/23/2017 Sales Price: $3,000,000 Gross Leaseable Area (GLA): 3,630 SF Price/SF Building: $826.45 Cap Rate: 5.50% Lot Size: 43,220 SF (0.99 Acres) Year Built/Renovated: 1970/2006 COMMENTS: This was the sale of a Pollo Tropical at the beginning of a 10 year NNN lease. 2 PDQ - Pembroke Pines 11211 Pines Boulevard, Pembroke Pines, FL 33026
Close of Escrow: 12/10/2018 Sales Price: $4,100,000 Gross Leaseable Area (GLA): 4,598 SF Price/SF Building: $891.69 Cape Rate: 4.50% Lot Size: 50,530 SF (1.16 Acres) Year Built: 2015 COMMENTS: This was the sale of a PDQ with a new 20 year NNN lease. 28 COMPETITIVE PROPERTY SET
SALES COMPARABLES
3 Starbucks - Pembroke Pines 9700 Pines Boulevard, Pembroke Pines, FL 33024
Close of Escrow: 11/19/2018 Sales Price: $3,450,000 Gross Leaseable Area (GLA): 2,535 SF Price/SF Building: $1,360.95 Cap Rate: 4.75% Lot Size: 23,958 SF (0.55 Acres) Year Built/Renovated: 1987/2008 COMMENTS: This Starbucks has occupied this space since 2008. They recently signed an amended lease for 10 years with 4, 5-year options.
4 Metro Diner - Pembroke Pines 8240 Pines Boulevard, Pembroke Pines, FL 33024
Close of Escrow: 12/5/2018 Sales Price: $2,085,000 Gross Leaseable Area (GLA): 3,600 SF Price/SF Building: $579.17 Cap Rate: 6.00% Lot Size: 31,799 SF (0.73 Acres) Year Built: 2017 COMMENTS: This was the sale of a Metro Diner, which was recently built in 2017 and is on a 15-Year Absolute NNN lease.
29 DEMOGRAPHICS DEMOGRAPHICS DEMOGRAPHIC POPULATION 1-MILE 3-MILES 5-MILES SUMMARY 2024 Population 27,052 123,328 283,286 2019 Population 25,896 117,218 269,577 2010 Population 24,257 104,757 241,666
HOUSEHOLDS 1-MILE 3-MILES 5-MILES 2024 Households 11,781 54,837 121,593 2019 Households 11,360 52,362 116,157 2010 Households 10,994 47,637 105,576 Growth 2019 - 2024 3.71% 4.73% 4.68% Growth 2010 - 2019 3.33% 9.92% 10.02% Owner Occupied Housing Units 5,150 27,961 67,490 Renter Occupied Housing Units 6,210 24,401 48,667 2019 Avg Household Income $60,088 $67,991 $71,626 2019 Med Household Income $44,117 $47,957 $48,828
INCOME 1-MILE 3-MILES 5-MILES <$25,000 3,169 13,641 29,654 $25,000 - $50,000 3,167 13,586 29,610 $50,000 - $75,000 2,085 9,197 20,054 $75,000 - $100,000 1,179 5,292 12,589 $100,000 - $125,000 685 4,282 8,321 $125,000 - $150,000 410 2,073 4,601 $150,000 - $200,000 342 1,927 4,527 $200,000+ 322 2,365 6,801 Source: CoStar
31 DEMOGRAPHIC SUMMARY DEMOGRAPHICS Geography: 5 Miles
POPULATION In 2019, the population in your selected geography was 269,577. The population has changed by 11.55% since 2010. It is estimated that the population in your area will be 283,286 five years from now, which represents a change of 5.09% from the current year.
HOUSEHOLDS There are currently 116,157 households in your selected geography. The number of households has changed by 10.02% since 2010. It is estimated that the number of households in your area will be 121,593 five years from now, which represents a change of 4.68% from the current year.
INCOME In 2019, the median household income for your selected geography is $48,828, compare this to the U.S. median which is currently $44,779.
The current year per capita income in your area is $30,862, compare this to the U.S. average, which is $28,888. The current year average household income in your area is $71,626, compared this to the U.S. average which is $86,220.
SUBMARKET DATA: ZIP CODE 33004
HOUSING The median sales price for homes within this area is $166,700 compared to the U.S. average which is $226,800.
EMPLOYMENT In 2019, there are 4,591 employees with full time Earnings, 3,284 with part time earning, and 4,686 with no earnings, in your selected area, this is also known as the daytime population.
Source: CoStar Demographics & United States Zip Codes.
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