Come Give the World’s Most Popular Street a Try! Pulsing with energy Lincoln Road provides an authentic experience where everyone gathers to shop, dine and people watch. Be part of the world famous Lincoln Road, the epicenter of Miami Beach. Terranova has an extensive portfolio on Lincoln Road, call us now for more details.

Contact Mindy McIlroy or Isabelle Courtial today! terranova corporation | 801 arthur godfrey road, suite 600, miami beach, fl 33140 feel the rythum

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FOOD IS THE NEW TREND THEN WHY ARE SO MANY NOT IN STYLE?

Visit our Coral Gables location at 136 Miracle Mile, Coral Gables, FL 33134 • 305.967.8260 2 TERRANOVA © 2014 BurgerFi International, LLC. BurgerFi® and the BurgerFi® logo are registered trademarks of Restaurant Development Group, LLC. All rights reserved.

156178 BF Terr CG Ad_fa.indd 1 6/16/14 4:54 PM contentS

features 8 meet the team A diverse group of talented and dedicated professionals

14 urban vibrations Targeted Spending is Shaking Up Sleepy Pompano Beach

24 broward county suburban SHOPPING CENTER report 2014

50 The 305, 954, and 561 on Americas favorite food - PIZZA!

TRENDS 3 Welcome to our third edition of Terranova TRENDS

Team - a group of people linked in a common purpose. (Wikipedia)

Team - a collection of people with a strong sense of mutual commitment creating synergy, generating performance greater than the sum of the performance of its individual members. (Wikipedia)

Team = Family. (Mindy McIlroy)

Seventeen years ago I began my career at Terranova and I am blessed to work with the most talented professionals in the industry - past and present. Without the guidance, support and the occasional push from my Terranova Family, I would not be in the leadership role that I occupy today. I wish everyone at Team Terranova could be on the cover of Trends, as it takes the effort of so many to keep us moving forward, but we don’t have enough space - so we will showcase the smiling faces of our talented and committed Leasing and Capital Markets Team.

Meet the Team, also known in my world as Our Family – enjoy!

Mindy McIlroy, Executive Vice President, Terranova Corporation

On the cover - from left to right: Andrea Molina, India Turkell, Karen Maerovitz, Michael Nathanson, Mindy McIlroy, Elizabeth Higgins, Stephen Bittel, Juan Franco, Isabelle Courtial, Rebecca DeVille and Andrei Pintilie.

4 TERRANOVA Chairman Stephen H. Bittel executive Vice President / Editor-in-Chief Mindy McIlroy managing Editor Rebecca DeVille

Research Director Alina Matas

Graphic Designer Michael Dorer

Research Assistant Kesley De Miranda

Contributing writers Alina Matas Kristin Clark publisher Terranova Corporation advertisers BurgerFi ChillN 50 Eggs National Parkinson Foundation Performance Bicycle

Terranova Corporation 801 Arthur Godfrey Road, Suite 600 Miami Beach, Florida 33140 305.695.8700 [email protected]

TRENDS 5 6 TERRANOVA TRENDS 7 Meet the Team

Terranova’s team brings together a diverse group of talented and dedicated professionals who offer a wide range of knowledge, experience and outlook toward the common goal of adding value to properties and their surrounding communities. They are:

Stephen Bittel Bittel is the Chairman and Founder of Terranova Corporation, leading a team of professionals in the ownership and operation of a commercial real estate portfolio valued at nearly $1.0 billion. An alumnus of Bowdoin College and the University of Miami School of Law, Bittel founded Petroleum Realty Investment Partners in 1999. A native of Miami, Bittel has served in numerous leadership roles, as member of Jewish Federation of North American Young Leadership Cabinet, Young Presidents Organization Miami, and World Presidents Organization Miami; as Director on the Boards of the Community Partnership for the Homeless, Miami-Dade Expressway Authority, and Jackson Memorial Hospital Foundation; and as Trustee member of the Greater Miami Chamber of Commerce, United Way of Miami-Dade, and Temple Beth Am. Bittel currently serves on the Boards of Teach for America Miami and Great Lakes Dredge and Dock, is an at-large member of the Democratic National Committee and board member and Vice Chairman of Development of the National Jewish Democratic Council. Bittel has written numerous articles on real estate matters and spoken at professional conferences throughout the U.S. and Europe being awarded South Florida Business Journal “Ultimate CEO” in 2005 and the Miami Dade Democratic Party Leader of the Year award in 2013. Bittel’s leadership, vision, energy and business acumen has made Terranova South Florida’s leading and most recognized independent real estate firm, which under his constant guidance and foresight continues to thrive.

8 TERRANOVA Mindy McIlroy Terranova’s Executive Vice President, McIlroy oversees leasing, marketing and new business development for the company’s diverse retail portfolio, and has led the company’s strategy through its foray into mixed-use and High Street retail. With a track record of nearly half a billion dollars in retail leasing deals, McIlroy’s expertise spans a wide gamut of retail properties, from suburban shopping centers to lifestyle entertainment centers to urban retail and mixed-use projects. Originally from upstate New York, McIlroy is now an entrenched Miami resident whose industry knowledge and experience services various community organizations. She is a founding member of the Lincoln Road Property Owners Association; a member of the MIMO Association, which works to preserve the Miami Historic District along the Biscayne Corridor; an executive board member of the Coral Gables Business Improvement District; and serves as retail advisory board member of the Kelley A. Bergstrom Center for Real Estate Studies at University of Florida’s Warrington College of Business Administration. The Greater Miami Chamber of Commerce recognized McIlroy in 2013 for an innovative deal that brought Epicure Gourmet Market to Coral Gable’s newest mixed-use project. She has been ranked by CoStar as a Power Broker – Top Broker.

Andrea Molina Molina is Terranova’s director of dispositions and acquisitions, a role to which she brings due diligence experience in the closing of over 60 retail properties, exceeding a transaction value of more than $1.4 billion. She brings to Terranova trained analytic skills that assist the company and its partners in realizing optimal value when buying, selling and financing real estate assets. Always striving for a win-win scenario, Molina knows well about balancing multiple needs, recently becoming the mother of twins and a 3-year-old toddler. Molina lives in Miami and is a graduate of Dartmouth College.

Isabelle Courtial Courtial is leasing director for High Street retail, focusing on the pursuit of cutting edge tenants to Lincoln Road in Miami Beach and Miracle Mile in Coral Gables, South Florida’s premier urban retail streets. A consummate urbanite and a native of France, Courtial’s European background and early U.S. experience in Manhattan shape her outlook for bringing unique concepts to South Florida’s modern urban scene. With more than 10 years of experience in South Florida, Courtial is knowledgeable in Miami Beach’s gentrification history, including direct experience with the development, planning and zoning that has resulted in today’s buzzing scene.

TRENDS 9 Rebecca DeVille DeVille is Terranova’s marketing manager, in charge of overseeing the creation of an entire range of communication materials and their dissemination throughout multiple platforms, from billboards to the ever-evolving world of social media. A native of Miami, she brings to task first-hand experience with South Florida’s lifestyles and work experience in graphic design, advertising and retail real estate. DeVille is a graduate of University of Miami and holds a MBA degree from the University of Florida Hough Graduate School of Business.

Juan Franco In addition to his landlord representation work with a diverse set of suburban shopping centers, Franco is a leading player in the evolving mixed-use scene of Greater Downtown Miami, where he has brought urban lifestyle flair to Vizcayne, a showcase residential high rise project with retail space on the ground floor. Franco also has carved a niche in tenant representation, procuring the best locations for popular chains BurgerFi and Giardino Gourmet Salads and for up-and-coming brands Sakaya Kitchen and Blackbrick Chinese. A Miami native, Franco is an alumnus of Florida International University, and is fully bilingual in English and Spanish.

Elizabeth Higgins A catalyst for getting things done, Higgins facilitates the dynamics of marketing and leasing, deftly assisting with the myriad communications, production and pound-the-pavement activities that make for successful leasing deals. A relative newcomer to Miami from Orlando, Florida, Higgins provides fresh energy, insight and energetic disposition to her role as leasing assistant, a position that has launched careers for more than one top real estate professional.

Karen Maerovitz Maerovitz is the face of Terranova in Jacksonville, Fla., where she leases one of Terranova’s most recent acquisitions, the sprawling Gateway Town Center, and contributes to the property’s revitalization thrust. With years of experience in marketing, including a previous marketing role for Terranova and the running of her own marketing business, Maerovitz brings to task well-honed business savvy and a sharpened ability to focus on a property’s salient strengths within the community it services. Closer to home, Maerovitz also leads the leasing effort in two mixed-use projects, Gables Ponce in the city of Coral Gables and Gables Aventura in the city of Aventura. A native of Miami with Israeli roots who speaks Hebrew and Spanish, Maerovitz is a graduate of University of Miami and an all-around connoisseur of South Florida.

10 TERRANOVA MEET THE TEAM

Michael Nathanson Nathanson is Terranova’s exclusive landlord rep for the company’s office portfolio, which includes traditional office buildings and mixed-use properties in growing urban markets. With intricate knowledge of South Florida’s business dynamics, Nathanson keeps a focused eye on the realities of the new economy, indentifying and targeting growing sectors while maintaining competitiveness and bringing to fruition successful deals. Nathanson is a graduate of University of Florida, and is a candidate for the Certified Commercial Investment Member (CCIM) designation.

Andrei Pintilie Pintilie’s leasing assignments cover a diversity of properties that include traditional suburban shopping centers as well as special-use locations such as the Marlins Stadium in Miami and iconic, high profile centers, such as Cocowalk, South Florida’s first open-air, retail-entertainment destination. He is a member of the International Council of Shopping Center, and holds the organization’s Certified Leasing Specialist designation. Pintilie is a graduate of both Florida Atlantic University and Florida International University, where he has advanced his knowledge of the industry with degrees in business, finance and international real estate. Pintilie speaks English and Spanish as well as his native Romanian.

India Turkell With well-honed analytic and sales savvy, Turkell brings her skills as a commercial associate to the pursuit of unique tenants to Shadowwood Square, a leading power center in Boca Raton, Florida and Glass, a rare ground floor space in the most exclusive Miami Beach building. As retailers increasingly gravitate toward dense urban centers, Turkell is charged with pursuing the emerging crop of lifestyle and convenience merchants that have come to characterize the suburban shopping center scene. Turkell is a graduate of University of Miami School of Law, is a member of the Florida Bar, and holds an MBA degree, also from University of Miami.

TRENDS 11 12 TERRANOVA TRENDS 13 URBAN VIBRATIONS Targeted Spending is shaking up Sleepy Pompano Beach By Alina Matas

14 TERRANOVA ome might say the city of Pompano Beach lacks an edge, a profile, a definition. Some might say that there is no there there, sas writer Gertrude Stein once famously wrote about her own hometown of Oakland, Calif. But that’s about to change.

TRENDS 15 City leaders have pumped more than $15 million in shop at our Fort Lauderdale store or our Boca Raton public investment over the past five years, aimed store. Both of these stores are several miles away and at ushering in Pompano Beach the modern urban our new location will be accessible with ample parking lifestyle that is sweeping across much of the country. If and great visibility, servicing the central east Broward it all comes to fruition as planned, this city of 100,000 beach communities.” people located between Fort Lauderdale to the south and Boca Raton to the north, will rise from the Indeed, a big advantage for development in Pompano shadows of all else that defines South Florida. Beach, besides its beachfront and central location, is the neighboring communities that are part of its “I think Pompano Beach has found its identity,” says trade area. To be sure, Pompano’s household income Robin Bird, the city’s development services director. and median home value -- $53,408 and $159,526 “We are a city in our right.” respectively – are average, compared to the state of Florida as a whole. (Florida has a median home value of $155,802 and average household income of “There’s great opportunity because you’ve $61,692.)

got a good location, capturing the north But Pompano Beach has wealthier neighbors abutting part of Fort Lauderdale and the affluent its eastern edges. Lighthouse Point on the northeast border has 10,000 residents; Hillsboro Beach, with areas around it that will help support it.” 1,800 residents, is tucked in a sliver of sand east of -Tim Hernandez, Principal of New Urban Communities Lighthouse Point; and Lauderdale by the Sea, with 6,300 residents, abuts Pompano’s southeast border. These three residential enclaves have average Under this mantra, Pompano Beach’s old downtown household incomes between $80,000 and $100,000, is coming back to life as new facilities ignite cultural and median home values as high as $330,000. life and welcome a creative class. A spruced up Atlantic Boulevard, the city’s main east-west road, now This mixed trade area is part of what is prompting leads to a renovated, pedestrian-friendly beachfront. developer New Urban Communities to build a new And dirt is moving again as private developers 38,500 square foot retail center on the city’s 5.4- pursue construction of new residences, stores and acre parking lot on A1A, between Northeast Second restaurants, including a new Whole Foods store, a and Northeast Third streets. The project, slated to 350-unit residential complex and second locations for break ground in early 2015, will include three to five two successful South Florida restaurateurs. restaurants, some retail space, a city-built 500-space parking garage, and a garden area with a gazebo. “Pompano Beach is an exciting market for us and we Developers say they already have restaurant tenants have been searching for a location for many years,” lined up, but cannot announce them yet. says Juan Nuñez, Florida Regional President for Whole Foods, which is building its first Pompano “Pompano Beach has been crying for something like Beach store in a former Kmart space at 1200 N. this,” says Tim Hernandez, principal of New Urban Federal Highway. “Our customers from this community Communities. “There’s great opportunity because

16 TERRANOVA Urban Vibrations

“The city it is today is very different from you’ve got a good what it is going to be. You will see a completed March 2013, location, capturing sprucing up the stretch with the north part of Fort renaissance above and beyond what we’ve renovated façades, wider Lauderdale and the seen in other places.” sidewalks and pristine affluent areas around it landscape. A $12 million that will help support it. -Alyona Ushe, Executive Director with Creative City Collaborative renovation of the beachfront, And within half a mile completed in 2013, included there are over 4,000 condo residents who have no the addition of a 17-foot promenade along the beach, place to go eat without getting in their cars.” green space now used for outdoor concerts and other events, widened sidewalks, wheelchair-friendly More residential development is on the way as well. pathways to the sand, renovated restrooms and Invesca Development Group recently broke ground concession stand, and a children’s water play area. on Koi Residences and Marina, an $85 million, 350- unit residential development at 450 E. Atlantic Blvd. The existing 3,000 square foot library at 221 Pompano The complex will feature resort style amenities, Beach Blvd., in the beach area, will relocate to a new three- and four-story waterfront villas, two high 5,400 square foot building under construction near the rise residential towers, live-work lofts and a roof intersection of NE Second Street and Riverside Drive. top restaurant overlooking the 47-slip marina. And Cavache Properties has announced plans to build 21 Meanwhile, under a new comprehensive plan, the city three-story townhomes at the southwest corner of 14th is geared for mixed-use development with residential Street and Ocean Drive. Called 14th & Ocean, the units on the various vacant lots it owns in the historic townhome project will feature four-bedroom units, two- downtown area, about 2.5 miles west of the beach, car garages and open balconies, with preconstruction just north of the intersection of Atlantic Boulevard and prices starting at $499,000. Dixie Highway. Laying the foundation for that phase of the makeover, the city has poured money into cultural Much of Pompano Beach’s identity is tied to its facilities and activities which in turn have enticed the beachfront, 2.5 miles east of the city’s downtown first new retail and restaurant openings in the core core at the intersection of Atlantic Boulevard and downtown area. Dixie Highway. Accordingly, the beachfront and the main traffic corridor leading to it have undergone a Throwback Restaurant Group, owner of 32 East in makeover. Delray Beach, plans a new restaurant at Northeast First Street and Flagler Ave. Nearby, the 4,000 A $3.3 million renovation of Atlantic Boulevard square foot 731 Retail Shoppes, at 731 Martin between A1A and Pompano Beach Boulevard was Luther King Blvd., has been fully leased, including

TRENDS 17 a second location for Betty’s Soul Food, a 35-year Collaborative, an organization that runs the popular Fort Lauderdale fixture, BG’s Catering and Norman’s Arts Garage culture venue in downtown Delray Beach, Photoland. The 731 Retail Shoppes is the first new and which Pompano Beach has hired to run BaCA. retail development on MLK Boulevard in more than 50 “The city it is today is very different from what it is years. going to be. You will see a renaissance above and beyond what we’ve seen in other places.” Prospective new denizens in a revitalized downtown are already showing up at the reincarnated Bailey Also headed for a reincarnation is the historic Ali Hotel at 51 NE First Street, which re-opened in April Building at 353 Martin Luther King Jr. Blvd. The 1920s 2014 as Bailey Contemporary Arts, or BaCA, after a facility was once a boarding house for famous African $1.2 million makeover. On Wednesday nights, as many American jazz musicians, including Louis Amstrong as 50 artists show up for Lyrics Lab, an open-mike, and Cab Calloway. When it reopens in fall 2014, the open-stage, open-exhibit event where artists can bring Ali Building will have 4,200 square feet of museum, and showcase their work. educational and performance space, leased to a cultural arts group as office, gallery and performance At the new BACA a film series runs on Friday nights, space. featuring cult movies and a discussion after the films. There is also a songwriter series and a sip-and-paint Nearby, city leaders plan a new $17 million civic series, in which people bring a bottle of wine and center next to City Hall, to include a 40,000 square get guidance from a painter on how to transform an foot Cultural Arts Center on the SW corner of Atlantic empty canvas. The 1930s building has a refurbished Boulevard and Cypress Road. The existing library at façade and a new interior that harbors eight visual- 1213 E. Atlantic Blvd. will relocate to this new facility, arts studios (renting for $250 to $375 a month), an scheduled to break ground by year end 2014. exhibition gallery, and space for art classes and workshops, including film and new digital media. A backdrop to the refurbished downtown facilities was the May 2013 re-launch of East Village Uncorked, “What I see in Pompano Beach is a cultural revolution,” a monthly evening event held on the first Friday at says Alyona Ushe, executive director with Creative City Harbor Village Shoppes, a property a few blocks east

18 TERRANOVA Urban Vibrations

of downtown at 2600-2800 E. Atlantic Boulevard, which underwent its own $1.6 million renovation. The monthly art walk, attended by more than 500 people who come in waves throughout the evening, features local artists displaying their work, along with specialty merchants, live music and free wine and food tastings from local restaurants.

“Pompano Beach is now a target for developers and new businesses looking for a progressive, modern city with hometown qualities like friendly people and a relaxed atmosphere,” says Kim Briesemeister, co-founder of Redevelopment Management Associates, a private company that Pompano Beach hired four years ago to lead the city’s redevelopment.

Briesemeister and company co-founder Chris Brown brought to Pompano Beach a revitalization expertise that includes Briesemeister’s work in West Palm Beach, among other cities, and Brown’s experience as former head of the Delray Beach community redevelopment agency. The consultants have spearheaded the renovation of the city’s appearance and infrastructure, and the revision of zoning laws to allow mixed-use and higher density in designated areas. The key to the future is connecting all of Pompano Beach’s parts from east to west, city leaders say.

Bird, the city’s development director, proudly shows a recently completed $450,000 urban design plan that

TRENDS 19 focuses on connectivity between the city’s three main traffic corridors: Atlantic Boulevard, Dixie Highway and Federal Highway. The plan is to define each corridor’s identity by encouraging a cluster of uses, building on what already exists. Further, the goal is to enhance connectivity between the corridors and the rest of the city by building infrastructure geared to pedestrian, bicycle and public transit activity.

“If your arterials are healthy, your heart is healthy,” Bird says.

The city awaits with open arms Tri-Rail’s planned development of a new railway linking South Florida’s downtowns, between Miami and Jupiter. The new service would run along existing tracks east of I-95. In Pompano Beach, a station for this new train service is slated to be built just north of the intersection of Atlantic Boulevard and Dixie Highway. The new rail link is projected to be up and running in 2020, six years from now, according to Bonnie Arnold, public

20 TERRANOVA Plenty of Holes information officer for the South Florida Regional to Fill Transportation Authority, which operates Tri-Rail. The agency currently is negotiating access fees to the Dunkin’ Donuts existing tracks with Florida East Coast Railway, which Brews Rapid Growth owns the tracks.

Pompano Beach Mayor Lamar P. Fisher, a fourth As U.S. consumers become worldlier in taste and urban in generation South Floridian, spends part of his time style, the better-coffee craze carves a growing swath of the selling the new vision for Pompano. In the past, the city marketplace, in turn triggering coffee wars that have everyone, even Taco Bell, pandering to your need for caffeine. shied away from a development boom, as residents were reluctant to embrace higher density, Fisher says. Seattle-based Starbucks, which introduced the country to But with the city’s cohesive blueprint for balance and gourmet coffee along with the better coffee-break experience, connectivity, it has become an easier sell, all around. maintains the lead. With some 13,000 U.S. Starbucks locations, does any other coffee shop chain have a chance at “We now have developers knocking on our door,” caffeine ubiquity? Fisher says. “That never happened before.” The answer might be a resounding yes, if Dunkin’ Donuts continues on its warpath.

“Dunkin’ Donuts has the most loyal customer base in the country,” says Michael Koroghlian, a South Florida franchisee who owns 22 locations, including four in Pompano Beach. “We believe we have done so well because our guests enjoy our products and consider it a great value. The brand has done a great job of developing new food items for customers to try each month.”

Indeed, since parent company Dunkin’ Brands went public in 2011, its Dunkin’ Donuts division has reached nearly $540 million in annual sales and grown to over 7,500 locations in the U.S., where its comparable-store sales grew 3.4% in 2013. It is the dominant chain in some regions, such as the Northeast (which includes Dunkin’ Brands’ hometown of Canton, Mass.). And the chain is now headed to the West Coast, entering Starbucks- dominated territory.

Its growth has taken place despite mounting health advice and consumer awareness to stay away from refined sugars, carbohydrates and fats, all of which abound in Dunkin’ Donuts’ namesake product.

But Dunkin’ Donuts has added healthy choices to its food menu, expanded its coffee choices with flavored coffees, lattes and cappuccinos, and is refurbishing existing restaurants to incorporate cushion seating and TVs in order to attract more customers during the daytime.

Koroghlian, a South Florida franchisee, said menu changes keep the brand competitive, while its coffee remains an all- time favorite, particularly its iced coffee. As far as his newest location, he found an ideal spot in Pompano Plaza, on the northwest corner of Federal Highway and East McNab Road.

“This specific area was lacking a local Dunkin’ in the neighborhood. The shopping plaza is always busy and once I was able to work with the landlord and the City to add a drive-thru it became a great fit,” Koroghlian says. “I own 22 stores from Fort Lauderdale to Boca Raton. Pompano will now TRENDS 21 become my epicenter.” 22 TERRANOVA TRENDS 23 24 TERRANOVA Retail Report

verage asking rent in Broward County’s shopping centers increased 6.3% between 2013 and 2014, the third year in a row A the county shows an increase in average rent, and the highest jump since the upward slope began in 2012. Average asking net rent for inline space in Broward County is $23.55 in 2014, compared to $22.15 in 2013.

Accompanying the increase was a drop in vacancy rate to 9.5%, compared to 10.4% in 2013. This is the first year since 2008 that Broward County’s vacancy dips to single digits, with leasing activity including a second Hobby Lobby store and the entry of Trader Joe’s, with two forthcoming Broward locations.

Davie/Weston showed the highest increase in average redevelopment and big-box activity, which has lowered asking rent -- up 11.1% (see chart on next page). overall vacancy, although it still remains in double-digit This submarket had begun recovering in 2012, and territory. In Lauderdale Lakes, average rent increased got a further boost over the past 12 months with the even as double-digit vacancy increased yet again in announcement that upscale grocer Whole Foods would 2014. This submarket’s small inventory is dominated by join last year’s new-to-market retailer Hobby Lobby in a large property that is 30% vacant. filling up a former Kmart space. In addition to filling up big-box space, the submarket’s strong demographics The Tamarac/Sunrise submarket also remains have helped sustain brisk leasing of inline space. challenged with double-digit vacancy. Despite recent big-box activity, including a Fresh Market that took Oakland Park/North Fort Lauderdale had the second a former Borders Books & Music space, large boxes largest increase, 10.7%, which is noteworthy because it remain available, including a BJ’s Wholesale Club and followed an increase of nearly 20% the year before, and a Walmart. has bumped this submarket to the No. 1 highest rent, unseating Dania/South Fort Lauderdale, which held the Pembroke Pines/Miramar continues to show spot for years. Popular grocer Trader Joe’s is opening improvement in occupancy. Its 3.3% dip in average rent one of its two first Broward stores in this submarket, in 2014 reflects lack of availability in its most pricey which benefits from a small inventory, including shopping center, whose very high asking rent had redeveloped properties along Federal Highway and skewed last year’s average beyond the prevalent norm east of it, as well as the gentrifying area of Wilton for this submarket. Manors, west of Federal Highway. Dania/South Fort Lauderdale, the unseated former No. 1 rent market, this Big-box activity was boosted by last year’s newcomer year ranks as the second highest rent submarket, and Hobby Lobby, which added a second location in Broward shows an 8.4% increase from 2013. The vacancy rate by laying claim to a Stein Mart box that closed in Coral in this small submarket increased, however, mostly due Springs. Also taking big-box spaces were President to the closing of a Publix store that relocated. Supermarket and Monterrey Supermarket. The local underdog chains in the fiercely competitive grocery Lauderdale Lakes and Coral Springs/Margate show the sector each took a new Broward location, in Tamarac third and fourth highest increases in asking rent, 10.3% and Margate, respectively. Anchor stalwarts TJ Maxx and 9% respectively. Helping to improve Coral Springs/ and Ross Dress for Less each added one more Broward Margate, a large suburban submarket, was noticeable site as well, in So. Fort Lauderdale and Pompano

TRENDS 25 Beach respectively. Ross Stores’ dd’s discount concept anchored center of 80,000 square feet, which opened in took a former Office Depot space in Hallandale. Big-box Hollywood. Walmart will anchor four proposed projects: fitness facilities Planet Fitness and YouFit Health Clubs Riverbend Marketplace, a 310,000 sq. ft. center including each absorbed an existing vacant box in Pembroke Walmart Supercenter, is proposed in Plantation; Pine Pines, while LA Fitness will build a new facility in South Island Marketplace, a 67,400 sq. ft. center anchored Fort Lauderdale. Goodwill, which has been expanding by a 40,000 sq. ft. Walmart Neighborhood Market, is in recent years, took a former Bealls Outlet space in proposed in Davie; and a Walmart of 180,000 sq. ft. is Sunrise. (Details in Submarket Analysis section below.) proposed on the site of the former Millennium Mall in Hallandale. New-to-Market Tenants Broward County’s new-to-market tenants in 2014 Two large mixed-use projects that had been long come from the coffee and snacks category. Sub Zero proposed but went dormant as the recession hit in Ice Cream and Yogurt, a Utah-based chain, is opening 2008 are showing new signs of activity by pursuing a location in Parkland. The chain is tapping on a new preliminary approvals with their respective municipality. trend of instantaneously freezing a freshly-made ice Metropica, approved for up to 485,000 square feet of cream mix, by using liquid nitrogen instead of sticking retail, is proposed in the city of Sunrise, and 321 North, the mix in a freezer. Sweetfrog Premium Frozen Yogurt, approved for more than 450,000 square feet of retail, based in Virginia, opened in Sunrise. And new local is proposed in the city of Plantation. Both projects venture Rhino Doughnuts and Coffee, from a former have long-term development horizons. Neither has Outback Steakhouse executive, opened a location in announced retail tenants or ground-breaking dates for Oakland Park. its respective retail phase, as each project is first moving forward with its residential or office use component. New Construction College Crossings, a mixed-use project in Davie that New shopping center construction remains tepid, with has begun residential construction, is proposed to have few new centers of 50,000 square feet or more on the up to 425,250 square feet of retail. immediate horizon. Only one new center was completed over the past year – West Lakes Commons, a Publix-

26 TERRANOVA TRENDS 27 finding balance New tenants open as rents dip slightly in Pembroke Pines • Miramar submarket

28 TERRANOVA Retail Report

The Pembroke Pines/Miramar submarket was one of two submarkets to show a decrease in average net rent, dipping 3.3% to $23.96, compared to $24.78 a year before. However, vacancy also decreased to 6.3%, compared to 7.8% a year before, as two big boxes were replaced by fitness facilities. Further, the popular Trader Joe’s chain is slated to enter this submarket, absorbing an empty junior box. However, three big boxes remain vacant, and turnover included the closing of Navarro Discount Pharmacy in a junior box.

Anchor Moves: and Johnson Street. Power Pizzeria replaced Quizno’s Planet Fitness replaced Dollar General in Palm Johnson in Fountains of Miramar, on the NEC of Dykes Road and Plaza, on the SEC of Johnson Street and Palm Ave. Miramar Pkwy. Rock MMA, a fitness facility, opened in a former Bealls space in Flamingo Pines Plaza, on the Youfit Health Clubs replaced Bally Total Fitness in SWC of Pines Blvd. and Flamingo Road. Boulevard Square, on the SEC of Pines Blvd. and Hiatus Road. OTHER Vacant Boxes: Office Max (23,433 sq. ft.) in Boulevard Square, on the Trader Joe’s will open in the former Cost Plus World SEC of Pines Blvd. and Hiatus Road. Winn Dixie (51,282 Market space in Pembroke Crossing, on the SEC of sq. ft.) in Westfork Plaza, on the NWC of Pines Blvd. and Pines Blvd. and Flamingo Road. Dykes Road. Staples (20,000 sq. ft.) in Miramar Square, on the SEC of Miramar Parkway and Flamingo Road. Tenant Moves: El Balcon de las Americas, I Love Tacos and Gideon Math Demographics: and Reading Center are opening in Westfork Plaza, on This is the most populous submarket, with an estimated the NEC of Pines Blvd. and Dykes Road, while Navarro 2014 population of 294,573, projected to grow 8.8% over Discount Pharmacy closed in this center. Firehouse the next five years. The population is 44% Hispanic and Subs opened in Paraiso Parc, also on the NEC of Pines 29% African American. Median age is 37 and average Blvd. and Dykes Road. IHOP will replace Sushi Café household income is $74,860, higher than $72,666 in in Flamingo Falls Town Center, on the SEC of Sheridan 2013. Its daytime population is 67,074. Population in this Street and Flamingo Road. Madrag replaced Party City submarket grew 8% between 2010 and 2014. in Pembroke Commons, on the SWC of University Drive

TRENDS 29 Zero Sum Relocated Publix anchors new center in Hollywood • Hallandale submarket

30 TERRANOVA A new Publix-anchored center was completed in this eastern submarket, which is the smallest in terms of total square foot inventory. Vacancy remained virtually flat at 4.8%, compared to 4.3% a year before, while rent nudged upward 1.5% to nearly $24, compared to $23.60 a year before. dd’s discount absorbed an empty Office Depot box, while the long-vacant Millenium Mall is now slated for redevelopment into a Walmart.

Completed: Tenant Moves: West Lakes Commons, an 80,000 sq. ft. project anchored Chicken Kitchen, Subway and Bank Atlantic closed by Publix, was completed on the SEC of Sheridan Street in Seawalk Pointe Shopping Center, on the NEC of and Federal Highway. Hallandale Beach Blvd. and Three Islands Blvd.

Proposed Redevelopment: Demographics: A Walmart of 180,000 sq. ft. is proposed on the site of This submarket has an estimated 2014 population of the former Millenium Mall, a long-vacant property on the 178,144 and is projected to grow 6% over the next five SEC of Hollywood Blvd. and U.S. 441. years. The population is 33% Hispanic and 27% African American. Median age is 42 and average household in- Anchor Moves: come is $53,151, slightly higher than $51,138 in 2013. Its dd’s discount will open in a former Office Depot in daytime population is 65,101. Population in this submar- Hallandale Shopping Center, on the SWC of Hallandale ket grew 4.7% between 2010 and 2014. Beach Blvd. and SW 10th Terrace.

TRENDS 31 Call it a Comeback New Whole Foods, higher rents and lower vacancy prop up Davie • Weston submarket

32 TERRANOVA Retail Report

Occupancy and average rent continued to improve in Davie/Weston, a submarket that showed the highest rent increase from 2013, going up 11.1% to $28.65, the third highest average rent in the county in 2014 (behind Oakland Park/No. Fort Lauderdale and Dania/So. Fort Lauderdale). In addition to its attractive demographics, this submarket got a boost over the past 12 months with new-to-market retailer – Hobby Lobby – as well as upscale grocer Whole Foods, both retailers slated to open adjoining stores in a former Kmart space. A new Walmart-anchored shopping center is proposed, while several popular workout chains have staked new locations. Despite the closing of a Staples store, submarket vacancy dropped to 6.6%, from the previous year’s 7.9%.

Proposed Redevelopment: Weston Road and Indian Trace. Crossfit Siege will open in Pine Island Marketplace, a 67,400 sq. ft. center anchored Publix at Laguna Isle, on the NEC of Sheridan Street and by a 40,000 sq. ft. Walmart Neighborhood Market, is 195th Ave. Hoops Bar and Grill opened in Davie Shopping proposed on the SWC of Stirling Road and Pine Island Center, on the SWC of Griffin Road and University Drive. Road. Massage Envy closed in Embassy Lakes Shopping Center, on the NEC of Sheridan Street and Hiatus Road. College Crossings, a mixed-use project approved to The Amigos Meats will replace Mathnasium in Indian have up to 425,250 sq. ft. of retail, is proposed on the Trace Center, on the NEC of Indian Trace and SW 160th SWC of I-595 and the Florida Turnpike, in Davie. No Street. This center also added ice cream chain Uncle plans or projected dates have been announced for the Louie G. AIO Wireless opened in Paradise Promenade, retail phase of the project. on the NWC of Stirling Road and SW 58th Ave. Brickfit Fitness opened in Pine Lake Plaza, on the SWC of Griffin Road and SW 100th Ave. Carvel Ice Cream and Sweet Anchor Moves: Therapy Cupcake opened in The Shops at Stirling Place, Hobby Lobby and Whole Foods will open in a former on Stirling Road and SW 70th Ave. Ice Cream Club and Kmart in Town & Country, on the SWC of I-595 and Alex’s Bicycle Pro Shop opened, while Color Me Mine University Drive. closed in The Plaza (SWC of I-595 and Hiatus Road), relocating to a former Kumon Learning Center space in Staples closed in Westgate Square, on the SEC of I-75 Shenandoah Square, on the SWC of I-595/State Road and Weston Road. 84 and SW 136th Ave. Shenandoah Square also added Amscot. Avanti Furniture will open, while Vocelli Pizza closed in Shoppes on the Green, at the intersection of OTHER Tenant Moves: Weston Road and Blatt Blvd. Duffy’s will replace East City Grill and Burger Zone replaced Stop Burgers in Weston Town Center (Arvida OTHER Vacant Boxes: Parkway and Bonaventure Blvd.), which also Winn Dixie (36,320 sq. ft.) at Westgate Square, on the added 100 Montaditos. Crossfit opened in SE corner of SR 84 and Weston Road. Former West Cooper City Plaza, on the SEC of Griffin Road Broward Young at Art Center (60,312 sq. ft.) in The Plaza, and SW 100th Ave. Tilly’s Clothing replaced on the SWC of I-595 and Hiatus Road. PacSun in Tower Shops, on the SEC of University Drive and I-595. Orangetheory Fitness will open Demographics: in Countryside Shops, on the NEC of Flamingo This submarket has an estimated 2014 population of Road and Stirling Road. PNC Bank opened in 224,996 and is projected to grow 7.6% over the next five an outparcel in Cooper City Commons, on the years. The population is 38% Hispanic and 7% African NWC of Sheridan Street and Pine Island Road. American. Median age is 38 and average household Verizon replaced Blockbuster in Coquina. Palato income in 2014 is $93,749, higher than $92,194 in Gelato will open in Coquina Plaza, on the NEC of 2013. Daytime population is 67,602. Population in this Sheridan Street and Dykes Road. Tijuana Flats submarket grew 6.6% between 2010 and 2014. opened, while Chicken Kitchen and YoBlendz closed in Country Isles Plaza, on the NEC of

TRENDS 33 Making Room Two big boxes elbow for space in the Dania • So. Fort Lauderdale submarket

34 TERRANOVA After many years as No. 1 in terms of asking rent, this submarket was bumped to No. 2 in 2014, unseated by Oakland Park/No. Fort Lauderdale. It is still a strong submarket with a small inventory that includes high occupancy properties in strategic locations within the small geographic area of the submarket. An increase in vacancy rate to 6%, from the previous year’s 3.9%, is largely due to the closing of a Publix store, which relocated to a newly built center across the street. Two big-box retailers found space for new locations in this submarket by consolidating inline space and building a new outparcel. Average asking rent is up 8.4% to $29.40, compared to $27.12 a year before.

Anchor Moves: OTHER Tenant Moves: TJMaxx is opening in Harbor Shops, on Cordova Road BurgerFi and yoga studio Green Monkey opened in south of 17th Street Causeway, in a consolidated space Southport Shopping Center. Banfield Pet Hospital will next to Publix. open in West Lake Commons, on the SEC of Sheridan Street and Federal Highway. LA Fitness will open in a new outparcel building, also in Harbor Shops. Demographics: This submarket has an estimated 2014 population of Publix closed in Sheridan Square, on the NWC of 118,087 and is projected to grow 5.7% over the next five Sheridan Street and SE 5th Ave., and relocated across years. The population is 21% African American and 18% the street, as anchor of the new West Lake Commons on Hispanic. This submarket showed a decrease in average the SEC of Sheridan Street and Federal Hwy. (which falls household income, estimated in 2014 at $69,864, in the Hollywood/Hallandale submarket). lower than $71,641 in 2013. Median age is 42. Daytime population is 113,751. Population in this submarket grew 4.4% between 2010 and 2014.

TRENDS 35 On the Rebound New big boxes energize Coral Springs • Margate submarket

36 TERRANOVA Retail Report

Occupancy and rent have continued to improve in this submarket, whose large inventory has been particularly challenged since the 2008 recession. Over the past 12 months, however, vacancy dropped to 11.2% from 12.3% – the second year in a row vacancy in this submarket slopes downward – while average asking rent increased 9% to nearly $21. Boosting occupancy were the absorption of a vacant Winn Dixie box, and the filling of several inline spaces by popular fitness facilities. Further, a relocated Stein Mart store was soon spoken for by new-to-market retailer Hobby Lobby.

Redevelopment: Menchie’s, Hair Cuttery and Dryclean USA closed in Plaza at Coral Springs II, on the NWC of Atlantic Blvd. Coral Landings II, on the SWC of Sample Road and NW and Riverside Drive, continues redevelopment into a BJ’s 62nd Ave. Dunkin Donuts opened in Peppertree Plaza, Wholesale Club and a Dick’s Sporting Goods. on the SEC of Sample Road and U.S. 441. 9Round Fitness, Starbucks, Tijuana Flats and Pita Pit opened in Anchor Moves: Coral Landings III, on the SEC of Sample Road and NW Hobby Lobby will replace Stein Mart in Royal Eagle 62nd Ave. Frenchie’s Bicycles replaced Rent-A-Center Plaza, on the SEC of Wiles Road and University Drive. in Towne Shoppes of Margate, on U.S. 441 north of Copans Road. Sylvan Learning Center opened in Coral Stein Mart will relocate to Atlantic Crossing, on the NWC Palm Plaza, in a former UPS Store space. AT&T replaced of Atlantic Blvd. and University Drive, where it will replace Blockbuster Video at Lakeview Shopping Center (SWC Office Max. of Coral Ridge Drive and Lakeview Drive), which also added Orangetheory Fitness and GNC. Coral Springs Monterrey Supermarket replaced Winn Dixie in Towne Taphouse opened in Ramblewood Square (NEC of Shoppes of Margate, on U.S. 441 one block north of University Drive and Ramblewood Drive), which also Copans Road. added Sally Beauty Supply and VaporBurst. Sally Beauty Supply also will open in Royal Eagle Plaza (SEC of Wiles Tenant Moves: Road and University Drive), which also added Taco Bell Crossfit Ambush opened in Cypress Run Markeplace, on in an outparcel. Subzero Ice Cream and Yogurt will open the NEC of Atlantic Blvd. and Coral Springs Drive. AIO in Parkland Commons, at the intersection of University Wireless opened in a former space in Palm Lakes Plaza, Drive and Trail End. CrossFit Hardcore opened in on the SWC of Atlantic Blvd. and Rock Island Road. Riverstone Shoppes at Parkland, on the west side of U.S. Einstein Bros. Bagels and Char Hut will open, while 441 north of Hillsboro Blvd. AIO Wireless and Grateful J’s Vapor Plus opened in Brookside Square, on the NWC of Wiles Road and Coral Springs Drive. Giraffas Brazilian Kitchen & Grill replaced CG Burgers in Turtle Crossing, on the SWC of Wiles Road and U.S. 1.

OTHER Vacant Boxes: Bassett Furniture (15,000 sq. ft.) in Riverstone Shoppes at Parkland, on U.S. 441, north of Hillsboro Blvd. Portion of Kmart (39,500 sq. ft.) in Royal Eagle Plaza, on the SEC of Wiles Road and University Drive.

Demographics: This submarket, which also includes the city of Coconut Creek, is the second most populous submarket, with an estimated 2014 population of 255,519, projected to grow 6.8% percent over the next five years. This submarket’s population is 24% Hispanic and 17% African American, with a median age of 40 and an average household income of $77,737, higher than $75,673 in 2013. Daytime population is 69,838. Population in this submarket grew 5.6% between 2010 and 2014.

TRENDS 37 Primed for More steady improvement attracts new development in the Plantation submarket

38 TERRANOVA Retail Report

Occupancy continued to improve in the Plantation submarket, with vacancy rate dropping to 10.5%, compared to 12.6% a year before. Average asking rent of $25.03 in 2014 is a nominal drop from $25.24 in 2013, but the slight drop reflects occupancy of the better spaces, which are the ones that command the highest rent. In other words, in this submarket’s small inventory, many of the spaces currently available aren’t the top-priced ones. Rent has stabilized around the $25 mark, as vacancy continues to drop. One new Walmart-anchored project is proposed in this submarket.

proposed projects: 70th Ave. Golden Krust will replace Subrageous Subs Riverbend Marketplace, a 310,000 sq. ft. project anchored in Sawgrass Square, on the SWC of Sunrise Blvd. and by a 186,000 sq. ft. Walmart Supercenter, is proposed on Flamingo Road. a 36-acre site on the SWC of Broward Blvd. and I-95. OTHER Vacant Boxes: Redevelopments, additions, renovations: Former call center (18,389 sq. ft.) at Plantation 321 North, a redevelopment of the former Fashion Mall Marketplace on the NW corner of Broward Blvd. and NW at Plantation into a mixed-use project, has been revived, 70th Avenue. Former General Cinema (63,073 sq. ft.) at with the developer pursuing preliminary approvals for The Fountains, 801 S. University Drive. its master site plan. The proposed project, at 321 N. University Drive, is approved for more than 450,000 Demographics: square feet of retail. No prospective tenants have been This submarket has an estimated 2014 population of announced. 135,793 and is projected to grow 5.8% over the next five years. The population is 30% African American and Anchor Moves: 25% Hispanic. Median age is 39 and average household LA Fitness is under construction on a former Office Max income is $71,745, higher than $69,661 in 2013. Daytime site in the renamed Market on University, on the NWC of population is 54,728. Population in this submarket grew University Drive and Peters Road. 4.7% between 2010 and 2014. other Tenant Moves: MDNow Urgent Care replaced Blockbuster in Plantation Marketplace, on the NWC of Broward Blvd. and NW

TRENDS 39 A Few Strong Centers Retail strength is spotty in the small Lauderdale Lakes submarket

40 TERRANOVA Retail Report

This submarket has the second highest vacancy rate (behind Tamarac / Sunrise), due to having a small inventory, whose largest property has ample vacancy. Nonetheless, average asking rent increased 10.3% to $17.59. The increase reflects that its best-located centers have increased asking rents for some of their spaces, but no big-box retailers have announced new stores, and this small submarket’s inline occupancy is still challenged.

tenant moves: Demographics: Tropical Smoothie Café will replace Yuzu Frozen Yogurt This submarket has an estimated 2014 population of in Cypress Creek Station, on the NWC of Cypress Creek 105,154 and is projected to grow 4.9% over the next Road and Andrews Ave. Youfit Health Clubs and Broward five years. The population is 62% African American and Health Center will open in Lauderdale Marketplace, on 11% Hispanic. Median age is 40 and average household the SEC of Oakland Park Blvd. and U.S. 441. income, the lowest of all submarkets, is $44,915, higher than $43,969 in 2013. Daytime population is 67,267. Population in this submarket grew 3.6% between 2010 Vacant Boxes: and 2014. Former Dance Hall (14,000 sq. ft.) at Lauderdale Marketplace, on the SEC of Oakland Park Blvd. and US 441.

Total Inventory Number Avg. Asking Vacancy Submarket Population Avg. HH Income (sq. ft.) of Centers Rent 2014 2014 Oakland Park / 1,985,992 16 $29.67 7.4% 104,941 $69,185 No. Fort Lauderdale Dania / 2,800,563 15 $29.40 6.0% 118,087 $69,864 So. Fort Lauderdale

4,500,178 33 $28.65 6.6% Davie / Weston 224,996 $93,749

2,189,040 16 $25.03 10.5% Plantation 135,793 $71,745

Hollywood / 1,891,759 16 $23.96 4.8% 178,144 $53,151 Hallandale

Pembroke Pines / 6,552,226 40 $23.96 6.3% 294,573 $74,860 Miramar

Pompano Beach / 2,926,351 24 $22.38 8.0% 188,186 $57,259 Deerfield Beach

Coral Springs / 6,799,746 51 $20.98 11.2% 255,519 $77,737 Margate

5,466,508 47 $17.63 17.0% Tamarac / Sunrise 235,843 $53,819

2,214,146 12 $17.59 13.9% Lauderdale Lakes 105,154 $44,915

37,326,509 270 $23.55 9.5% Broward County 1,841,236 $67,514TRENDS 41 Gravitational Pull Mall-spurred vitality draws activity to west end of Tamarac • Sunrise submarket

This area continues to have the highest vacancy rate of any submarket, as several big boxes remain vacant, including a Walmart and a BJ’s Wholesale Club. Centers on the western end of the submarket, in the vicinity of Sawgrass Mills Mall, remain the strongest, and it is in this area where upscale grocery store Fresh Market took a new location, in a former Borders Books & Music space. Four other boxes were absorbed or partially absorbed over the past 12 months, but one gym box became newly vacant, while many centers still show ample inline and junior box availability. Average asking rent increased 4.4% to $17.63, even as vacancy inched up to 17%, from 16.4% a year before.

42 TERRANOVA Retail Report

Proposed Redevelopment: on the SWC of Commercial Blvd. and University Drive. Metropica, a mixed-use project approved for up to Boost Mobile opened in Cypress Lakes Town Center, 485,000 square feet of retail space, 2,800 residential on the NWC of U.S. 441 and Champions Blvd. Bank units and 785,000 square feet of office space, has been United and GetMed will replace Blockbuster Video in revived. Its developer is pursuing the rezoning of the Midway Plaza, on the NWC of University Drive and NW 50-acre site on the NEC of Sunrise Blvd. and Panther 57th Street. Rainbow and Payless Shoesource closed in Parkway. Groundbreaking of the first phase of the project, North Lauderdale Market Center, on the SWC of McNab which will be residential, is projected for early 2015. Road and Rock Island Road that lost its Walmart anchor the previous year. Bru’s Room opened and AT&T closed Sawgrass Mills Mall plans to add 82,000 square feet of in Sunrise West, on the SEC of Commercial Blvd. and retail to the 2.4 million square foot mall on the NWC of W. 94th Ave. Top It Off Yogurt will replace H&R Block in Sunrise Blvd. and N. Flamingo Road in Sunrise. Tamarac Town Square, on the SWC of Southgate Blvd. and Pine Island Road, and Sweetfrog Premium Frozen Yogurt replaced Great Florida Bank in Nob Hill Plaza, Anchor Moves: on the NWC of Sunset Strip and Nob Hill Road. YoNuts Fresh Market will open in a former Borders Books & Yogurt and UbreakIfix opened in Sawgrass Gateway Music next to Petsmart Plaza, on the NEC of Sunrise Center, on the NWC of I-595 and NW 136th Ave. Party Blvd. and Flamingo Road. City closed in Petsmart Plaza, on the NEC of Sunrise Blvd. and Flamingo Road. AIO Wireless and Subway Presidente Supermarket will replace 99 Cent Stuff in opened in an outparcel in Shoppes of Inverrary on the Babies R’ Us Plaza, on the SEC of Commercial Blvd. and NWC of Oakland Park Boulevard & Rock Island Road. University Drive. Rhino Doughnuts and Coffee opened in Park North Plaza, on the NWC of Oakland Park Blvd. and University Goodwill replaced Bealls Outlet and Bases Loaded Drive. Brothers Farmers Market will open in Shoppes at replaced Rag Shop in Village Shoppes at Pine Plaza, on Sawgrass, on the NWC of Oakland Park Boulevard & the SEC of Pine Island Road and NW 44th Street. Hiatus Road.

Walmart Neighborhood Market is under construction on the site of the former Baby Love in Tamarac Square West, Vacant Boxes: on the NWC of McNab Road and Pine Island Road. BJ’s Wholesale Club (104,114 sq. ft.) on the NWC of Oakland Park Blvd. and University Drive. Walmart Sunrise Fitness closed in Gold’s Plaza, on the SWC of (126,946 sq. ft.) at North Lauderdale Market Center, Pine Island Road & Springtree Drive. on the SWC of McNab and Rock Island Road. Big Lots (30,000 sq. ft.) in Tidan Plaza, on the NEC of University Planet Fitness will take a portion of the former Big Lots Drive and NW 57th Street. Staples (20,790 sq. ft.) in in Tidan Plaza, on the NEC of University Drive and NW Jacaranda Square, on the NEC of Oakland Park Blvd. 57th Street in Tamarac. and University Drive.

OTHER Tenant Moves: Demographics: Zoo Health Club replaced Hollywood Video and Rent- This submarket has an estimated 2014 population of A-Center replaced HearX in Babies R’ Us Plaza, on 235,843 and is projected to grow 5.8% over the next the SEC of Commercial Blvd. and University Drive. five years. The population is 42% African American and CrossFit replaced MMA Training Center in Promenade 23% Hispanic. Median age is 39 and average household at Inverrary, on the NEC of University Drive and NW income in 2014 is $53,819, higher than $51,107 in 44th Street. Subway replaced Coffee Corner in Tamarac 2013. Daytime population is 69,228. Population in this Square West, on the NWC of McNab Road and Pine submarket grew 4.6% between 2010 and 2014. Island Road. Jimmy John’s replaced T-Mobile and Sears Appliance closed in Commercial Boulevard Shoppes,

TRENDS 43 Staking Ground three new anchors drawn to Pompano Beach • Deerfield Beach submarket

44 TERRANOVA Retail Report

Average asking rent increased nearly 7% in this eastern submarket, accompanying an increase in occupancy that included the absorption of two empty big boxes. Ross Dress for Less took a former Staples space, and Walmart completed two new stores, one of them in a former Winn Dixie. Meanwhile, work is ongoing in a former Kmart space for its transformation into a Whole Foods and Sports Authority, while Hobby Lobby and Petco will occupy a new retail building in an existing shopping center. All told, vacancy decreased to 8%, compared to nearly 10% a year before.

Redevelopments/Additions/Renovations: OTHER Tenant Moves: Hobby Lobby and Petco will open in a new retail building Ulta Beauty and First Watch Café opened in Deerfield to be constructed in the Super Target shopping center, Mall, on the SWC of Hillsboro Blvd. and Powerline Road. on the NEC of Hillsboro Blvd. and Powerline Road. Dunkin’ Donuts will open in an endcap space with a new drive-thru in Pompano Plaza, on the NWC of S. Federal Anchor Moves: Hwy. and E. McNab Road. Famous Footwear opened in Ross Dress for Less will replace Staples in Pompano Pompano Marketplace, at 1245 S. Federal Highway. Five Marketplace, at 1245 S. Federal Highway. Guys Burger and Fries and European Wax Center will open in Hillsboro Square, on the SEC of Federal Highway Walmart Neighborhood Market opened a 51,000 sq. ft. and Hillsboro Blvd. PDQ built a new restaurant on an store, replacing Winn Dixie in Palm Trail Plaza, on the outparcel in the Muvico Center, on the NWC of Copans SWC of SW 10th Street and Military Trail in Deerfield Road and Federal Highway. Legends Tavern & Grill will Beach. replace Blockbuster Video in Sawgrass Promenade, on the SWC of Military Trail and Meadow Lakes Road. Walmart Supercenter opened a 93,000 sq. ft. store on the NWC of N. Federal Highway and NE 49th Street in Vacant Boxes: Pompano Beach, relocating the one it closed at 300 W. Bealls Outlet (21,000 sq. ft.) in Atlantic Square, on the Copans Road. SEC of Atlantic Blvd. and SE 25th Drive.

Whole Foods and Sports Authority will replace Big Kmart Demographics: at the Muvico Center, on the NWC of Copans Road and This submarket has an estimated 2014 population of Federal Highway. 188,186, and is projected to grow 4.9% in the next five years. The population is 25% African American and 17% Petco replaced Party City in Venetian Isle shopping Hispanic. Median age is 44 and average household center, on the NEC of Sample Road and Federal Highway. income is $57,259, slightly lower than $57,270 in 2013, and one of only two submarkets to show a decrease in income. Daytime population is 98,395. Population in this submarket grew 3.7% between 2010 and 2014.

TRENDS 45 The New No. 1 a bright and shiny new Oakland Park • No. Fort Lauderdale submarket

SURVEY PARAMETERS This is the 9th annual Broward County report on shopping centers, based on a two-phase survey of centers of 50,000 square feet or more, excluding regional enclosed malls and lifestyle centers. The phone and field survey were completed in May 2014. Average rental rates are weighed asking net rates on available inline space only. Total inventory includes the gross leaseable area on the ground floor only. Retail Report

This small northeastern pocket of Broward County, which includes the gentrifying city of Wilton Manors, shows the highest average asking rent of all submarkets in 2014, surpassing the Dania/So. Fort Lauderdale submarket to the south. Its small inventory has steadily gotten stronger with renovations and new tenants, taking advantage of locations along the commercial corridors that traverse it, including U.S. 1 and Commercial Blvd. The popular Trader Joe’s chain is slated to open a store in this submarket, and Walmart has bought the site of an operating Kmart store.

Proposed Redevelopment: Bank Plaza, on the NEC of Federal Highway and NE 1600 Shoppes is proposed at 1590 N. Federal Highway, 19th Street. Hibbett Sports closed in Savealot Festival on the site of an existing Office Depot store. The Plaza, on the NEC of Andrews Ave. and NE 33rd Street. proposed project would demolish and relocate the Office Depot building, to make way on the site for a new OTHER Vacant Boxes: building, reportedly to be occupied by Trader Joe’s, and Portion of Winn Dixie (20,000 sq. ft.) at Savealot Festival an outparcel. The Trader Joe’s store is projected for 2015. Plaza, on the NEC of Andrews Ave. and NE 33rd Street. Portion of former Winn Dixie (31,000 sq. ft.) at Shoppes at Anchor Moves: 18th and Commercial, on the NW corner of Commercial Crunch Fitness opened in a portion of a former Winn Blvd. and NE 18th Ave. Dixie in Savealot Festival Plaza, aka Oakland Park Festival Plaza, on the NEC of Andrews Ave. and NE 33rd Demographics: Street. This submarket has an estimated 2014 population of 104,941, projected to increase 4.9% over the next five Walmart has staked a Kmart site on the SEC of Oakland years. The population is 21% African American and 17% Park Blvd. and NE Sixth Street. Hispanic. Median age is 46. Average household income of $69,185 is higher than $67,093 in 2013. Daytime OTHER Tenant Moves: population is 53,487. Population in this submarket CVS Pharmacy closed in Sunrise Shopping Center, increased 3.6% between 2010 and 2014. on the NEC of Sunrise Blvd. and NE 25th Ave., after relocating to a former Borders Books & Music space at 2240 E. Sunrise Blvd. Regions Bank closed and GBS Beauty Store will replace Blockbuster Video in Regions PRIME RETAIL DESTINATIONS WITH TERRANOVA terranova corporation | 801 arthur godfrey road, suite 600, miami beach, fl 33140 | 305.695.8700 | [email protected] | WWW.terranovacorp.com | @terranovacorp

COCONUT GROVE, FL CORAL GABLES, FL

MIAMI BEACH, FL MIAMI, FL POMPANO BEACH, FL CORAL GABLES, FL

MIAMI, FL BOCA RATON, FL SOUTH BEACH, FL CORAL GABLES, FL MIAMI LAKES, FL

TERRANOVA LEASING CONTACTS

mindy mcilroy 305.779.8970 andrei pintilie 305.779.8903 [email protected] [email protected]

isabelle courtial 305.779.8936 india turKell 305.779.8908 [email protected] [email protected]

Juan franco 305.779.8938 Karen maerovitZ 305.779.8907 [email protected] [email protected]

AVENTURA, FL TENANT REPRESENTATION JACKSONVILLE, FL

DOWNTOWN MIAMI, FL PINECREST, FL 48 TERRANOVA PRIME RETAIL DESTINATIONS WITH TERRANOVA terranova corporation | 801 arthur godfrey road, suite 600, miami beach, fl 33140 | 305.695.8700 | [email protected] | WWW.terranovacorp.com | @terranovacorp

COCONUT GROVE, FL CORAL GABLES, FL

MIAMI BEACH, FL MIAMI, FL POMPANO BEACH, FL CORAL GABLES, FL

MIAMI, FL BOCA RATON, FL SOUTH BEACH, FL CORAL GABLES, FL MIAMI LAKES, FL

TERRANOVA LEASING CONTACTS mindy mcilroy 305.779.8970 andrei pintilie 305.779.8903 [email protected] [email protected] isabelle courtial 305.779.8936 india turKell 305.779.8908 [email protected] [email protected]

Juan franco 305.779.8938 Karen maerovitZ 305.779.8907 [email protected] [email protected]

AVENTURA, FL TENANT REPRESENTATION JACKSONVILLE, FL

DOWNTOWN MIAMI, FL PINECREST, FL TRENDS 49 The 305 954 and 561 on americas favorite food-PIZZA !

By Kristin Clark

izza - a simple concept when you think about it: dough, sauce, cheese and maybe a few toppings if you’re feeling adventurous. An Italian classic that has turned into Pan American staple, considering 1 in 8 U.S. residents consume a slice of this cheesy deliciousness on a daily basis. Popularity of such magnitude has spurred the pizza industry to redefine itself and evolve into much more then three basic components.

50 TERRANOVA on americas favorite food-PIZZA !

TRENDS 51 Americas favorite food - PIZZA!

The ever-increasing movement of health awareness, food allergies, fitness trends, and overall quality of life has been a motivating factor for change to keep pizza at the forefront of foodie’s minds – and mouths. Taking a look at a few of the most popular pizza joints in our own backyard, we get the 411 – or shall we say 305, 954, and 561 – on what sets one pizza apart from the rest.

Frankies: By far Miami’s oldest pizza shop, Frankies has been serving up classic style pizza pies for almost 60 years. This unique local spot has withstood the ebb and flow of changes, trends, and misfortune that have taken Miami, yet remains near and dear to the hearts of Frankie Fanatics. This family owned operation stays true to its classic roots, and is surely a testimony to their customer loyalty. From a small business perspective, Frankie’s has pioneered the ‘half-baked’ market – allowing consumers across the country to order pre-made pies that can be shipped and cooked right at home. Now, that’s a brilliant way to stay ahead of the game and build your customer base. [miami]

Harry’s Pizzeria: Putting a modern twist on the classics, chef and owner Andiamo: Michael Schwartz has created a gourmet style menu Loyal to traditional pizza parlor making based in the that has even the most elated pizza lovers coming North Eastern U.S., Andiamo’s serves up dough back for more. Ingredients such as braised short ribs, handmade, along with fresh toppings brought on-site oyster mushrooms, and lamb are just a sampling of and prepared daily. In additional to quality ingredients the components found at Harry’s. And if the creative and a menu of over 25 selected pizza combinations foodie options aren’t enough, visitors can enjoy an (not including ‘build your own’ options), the dining extraordinary ‘Chef Pop-Up Dinner’ experience that’s experience at Andiamo’s is unlike any other. Located introduced once a month. The concept is simple, yet in the MIMO district of Miami, the restaurant is a innovative - talented friends of the chef are invited to historic landmark renovated from a 1954 Robert Law create a special one-night menu at Harry’s, infusing Weed building. Patrons can be seated on the outdoor concepts from their cooking background and the vision patio with picnic tables or enclosed indoors by floor to of Harry’s. Dining on this special evening is first come- ceiling glass walls. first serve, making it a highly coveted event at around [biscayne corridor] $150 per person. [Design District]

Anthony’s Coal Fired pizza: The first restaurant to introduce authentic ‘coal fired Lemoni Pizza & Kitchen: pizza’ to South Florida in 2002, Anthony’s Coal Dedicated to reinventing the pizza industry, Lemoni Fired locations can now be found in Florida and Pizza & Kitchen’s menu still contains a few traditional Northeastern parts of the U.S. Each company owned Italian options, but chooses to concentrate efforts storefront has become a staple for that ‘over-cooked on health-conscious recipes for customers. Chef flavor’ that’s the Anthony signature. In addition to Dahrouch explains, “what we eat is important to our fast cooking pizza (4 minutes flat to be exact), the health and there are more and more vegetarian and restaurant serves up ‘family style’ meals complete with vegans who unfortunately don’t have many options. house salad and coal fired oven cooked wings. Most of the dishes on the new menu are vegan or [tri-county] vegetarian.” Lemoni is one of the few pizzerias that

52 TERRANOVA Americas favorite food - PIZZA!

advice and tastings for the perfect pie pairing, the overall experience makes Lucali’s a fantastic upscale venue for date night or special occasion. [Miami Beach]

Mellow Mushroom: A newcomer to the South Florida pizza market, Mellow Mushroom has established enormous success across the country. Opening in The Shops at Sunset Place. This 70’s style, hippie-esk décor franchise – oh yes, we’re talking mushroom lamps and vibrant colors for days – offers a slew of hand tossed pizza combinations, including gluten-free dough options and an entire vegan menu. They’ve been ‘keeping it mellow’ since 1974, with no plans of fizzling out anytime soon. [south miami]

Primanti Brothers: This laid back concept has a rich history dating back to the 1930’s. While the Pittsburgh native diner has engaged with this new ‘cleaner-eating’ movement, is primarily known for its famed french-fry stuffed which has propelled business and customer loyalty sandwiches, Primanti Brothers also dishes up tremendously. made-from-scratch pizza pies, the Italian way: fresh [Design District] ingredients and secret spices. Its three South Florida locations are open 24 hours, 7 days a week, making for a trendy late-night spot that has been featured on Lucali Pizzeria & Wine Bar: countless TV channels, including Food Network. In search of a chic ambience while dining on a slice [fort lauderdale] or two of pizza? Look no further than Lucali Pizzeria & Wine Bar. Much more than your typical pizzeria, and perhaps a bit more on the pricey side, this quaint Miami Beach location is a second storefront for the Brooklyn original. Aside from serving up authentic Brooklyn style pizza with the freshest ingredients, the health conscious kale ceaser salad is also wildly popular. Paired with a staff well versed in fine wines offering

TRENDS 53 Americas favorite food - PIZZA!

Spris: Steve’s Pizza: Perhaps the most critically acclaimed pizzeria in Steve’s has become a wildly popular local late-night Miami, Spris has been named “Miami’s Best Pizza” hang out, predominantly in lieu of its’ thin crust New by Miami New Times and has been considered the York style pizza and highly esteemed garlic rolls. While city’s “Best Gourmet Pizza” by the SunPost for four this ‘hole-in-the-wall’ establishment may not have consecutive years. Its’ chefs have trained at the finest anything out of the ordinary taking place, celebrities culinary schools of Northern Italy, which attest to the and locals alike find Steve’s sweet sauce simply rich Italian flavored dishes seen at Spris on Lincoln irresistible. Road. A trendy location for visitors and locals alike, [North Miami] the sole Spris restaurant is located on Lincoln Road – perfect for a quick bite or leisurely dining experience while people watching on Miami’s most famous street. No matter how you slice it, pizza will remain an [Lincoln Road] American favorite and with new pizza shops popping up, competition for the best pizza in South Florida is Stanzione 87: fierce. Whether it be an old favorite or a new gem, Sometimes sticking to the basics is the best way to go. pizza will continue to be a popular staple in American Such is the case with Stanzione 87, whose focus stays cuisine. true to classic Neapolitan tradition and perfecting the art of pizza making. The difference - remaining focused on quality, this Brickell based restaurant imports the So what’s your favorite pie? If your pizza joint did finest ingredients from Italy, crafts in-house mozzarella not make the list, tweet us @terranovacorp and daily, and supports the South Florida economy by let us know what’s special about your favorite. incorporating locally picked organic produce into its dishes. [Brickell]

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