New Construction Office Investment
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NEW CONSTRUCTION OFFICE INVESTMENT MULTI-TENANT OFFICE INVESTMENT OPPORTUNITY NEW, LONG-TERM LEASES INCLUDING MEDICAL USE THE AMERICAN HEALTH IMAGING BUILDING 2510 MICCOSUKEE RD, TALLAHASSEE, FLORIDA Property Contacts Jimmy Nystrom, SIOR Kat Butler Director Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 Cell +1 850 570 5837 Cell +1 615 428 7909 Disclaimer: Information included or referred to herein is furnished by third parties and is not guaranteed as to its accuracy or completeness. You understand that all information included or referred to herein is confidential and furnished solely for the purpose of your review in connection with a potential purchase of the subject property(ies), as applicable. Independent estimates of pro forma income and expenses should be developed by you before any decision is made on whether to make any purchase. Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and are qualified in their entirety by the actual documents to which they relate. The asset owner(s), their servicers, representatives and/or brokers, including but not limited to NAI TALCOR, CRE WOODCREST LLC, and their respective agents, representatives, affiliates and employees, (i) make no representations or warranties of any kind, express or implied, as to any information or projections relating to the subject asset(s), and hereby disclaim any and all such warranties or representations, and (ii) shall have no liability whatsoever arising from any errors, omissions or discrepancies in the information. Any solicitation for offers to purchase the subject asset(s) is subject to prior placement and withdrawal, cancellation or modification without notice. 2 TALCOR.COM SECTION 1 EXECUTIVE SUMMARY 01 TALCOR.COM 01 EXECUTIVE SUMMARY OVERVIEW NAI TALCOR is pleased to offer this newly constructed, multi-tenant office investment. 2510 Miccosukee Rd is well positioned just 1.4 miles from both Tallahassee Memorial Hospital and Capital Regional Medical Center. Both hospitals service the surrounding counties. The building is 24,000 square feet and was constructed in 2017. The current owner-occupant, American Health Imaging, Inc, will execute a new 10-year lease at the closing. The building is also home to two new tenants; EXP Energy Services, Inc and Encompass Health (formerly HealthSouth). EXP has executed a new 10-year lease and Encompass has executed a new 7-year lease. All Key Investment Highlights three tenants have 3% annual escalations. New Construction Long-Term Leases The property also offers upside through the 3,000 SF Located Nearby Both Regional Hospitals vacancy located on the second floor. The suite is 5/1000 Parking Ratio currently in shell condition and the asking rate is $19 3% Annual Escalations PSF with $5 PSF in additional rent charges. Upside Through Limited Vacancy Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 4 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 01 2510 MICCOSUKEE RD, TALLAHASSEE, FL 32308 24,000 RSF 2017 2 4.50 AC 83.71% 5/1,000 RSF Size Year Built Stories Site Area Occupancy Parking AHI (Surface) BUILDING Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 5 5 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 01 EXECUTIVE SUMMARY MARKET HIGHLIGHTS Tallahassee Office Market The overall Tallahassee office market is currently at a vacancy rate of 6.1% in the second quarter of 2020, well below the national average of 9.7%. The Tallahassee CBD has a mixed-use project in the Cascades Park area which will add an additional 63,980 feet of office space along with a Hotel and Apartments projected to be completed in Q4 2020. In more rural suburban markets, an additional 20,000 square feet will be added by 2021. Over 200,000 square feet of state offices were relocated from the W. Tennessee corridor to the Centre of Tallahassee. The office parks in which these tenants left will likely be redeveloped and repositioned with new ownership in the next three to five years, as they are obsolete office space with little interest from prospective tenants. 6.1% 83,980 SF Vacancy Under Construction in Tallahassee Office Market Tallahassee Office Market Economic Growth As the state capital, Tallahassee maintains a healthy and stable economy with significant footprints in the Government Services, Healthcare, Financial Services, and Hospitality sectors. Additionally, Tallahassee is home to two major universities, Florida State University and Florida A&M University, making Education a major demand driver for the region. Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 6 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 01 EXECUTIVE SUMMARY LOCATION Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 7 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 SECTION 2 PROPERTY OVERVIEW 02 SECTION 2 TALCOR.COM PROPERTY OVERVIEW 02 PROPETY OVERVIEW TENANT OVERVIEW At American Health Imaging, we’ve invested With a mission to understand, innovate, Inpatient rehabilitation, home health in the most up-to-date imaging equipment partner and deliver, EXP provides engineering, & hospice through our national network of to enhance the patient experience and architecture, design and consulting services to inpatient rehabilitation hospitals and home health and hospice agencies. provide the highest quality diagnostic the world’s built and natural environments. images. These same technologies also allow Our heritage dates back to 1906, when the This location is administrative offices. for greater patient comfort and faster earliest of EXP's predecessor companies exams, which means your referring started its engineering infrastructure practice. Using clinical collaboration and advanced physician will get the answers they need… technologies, we inspire patients, providers, quickly. Over 25 locations across the county. Exp has locations around the world. caregivers and employees with the confidence to move forward and grow stronger together. AHI offers the following services; MRI, CT The Encompass Health Way, we are committed Scan, Ultrasound, Breast MRI, Arthrogram, to delivering high-quality, cost-effective Myelogram, FibroScan, Digital X-Ray. integrated care across the healthcare continuum to help you achieve your greatest possible outcomes. AMERICAN HEALTH IMAGING EXP ENCOMPASS HEALTH SQFT OCCUPIED 7,877 SF SQFT OCCUPIED 8,214 SF SQFT OCCUPIED 4,000 SF % OF RSF 32.82% % OF RSF 34.23% % OF RSF 16.67% SUITE 100 SUITE 200 SUITE 101 LEASE EXPIRATION NEW 10-YR AT CLOSING LEASE EXPIRATION 8/31/2030 LEASE EXPIRATION 8/2/2027 www.americanhealthimaging.c WEBSITE www.exp.com WEBSITE www.encompasshealth.com WEBSITE om Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 9 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 02 PROPERTY OVERVIEW PHYSICAL CONDITON The Property was exceptionally built and custom to each tenant’s specifications. Total interior improvements are over $3 million. The building provides an efficient floor plan with limited common area for efficient operating expenses. All mechanical and electrical systems are new with each tenant’s buildout. Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 10 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 02 PROPERTY OVERVIEW PHYSICAL CONDITON CONT. Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 11 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 02 PROPERTY OVERVIEW UPSIDE POTENTIAL – 3,000 SF 3,000 SF Available on the Second Floor. Estimated Potential; TI Allowance $50 PSF $150,000 Total * space is in shell condition BASE Rent Potential $19 PSF $57,000/Year CAM Potential $5 PSF $15,000/Year TERM 7-10 Years $504k - $720k *allow for full amortization of TI Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 12 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 02 PROPERTY SUMMARY LOCAL MAP N © 2019 Google Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 13 13 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 SECTION 1 TALCOR.COM EXECUTIVE SUMMARY 02 SUPPORTING RETAIL MAP Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 14 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 02 PROPERTY OVERVIEW SITE PLAN 4.50 AC Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 15 15 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 SECTION 3 FINANCIAL ANALYSIS 03 TALCOR.COM 03 VALUATION RENT ROLL Notes: American Health Imaging, Inc is current owner-occupant that will execute a new 10-year lease at closing.