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Datrancenter Miami FL

Datrancenter Miami FL

DATRANcenter FL

OFFERING SUMMARY

DATRANcenter

LEASE-TO-CORE CLASS A OFFICE COMPLEX WITHIN COVETED MARKET OFFERING UNMATCH URBAN CONNECTIVITY Holliday Fenoglio Fowler, L.P. (“HFF”), is pleased to exclusively offer the opportunity to acquire Datran Center (the “Property”)—a 472,794 square foot, Class A office complex located in one of Miami’s most desirable markets— Dadeland. The Property is situated at the epicenter of the Dadeland Triangle, an urban infill location bounded by three of Miami’s most heavily trafficked thoroughfares and proximate to the 1.4 million-square foot — one of the highest grossing malls in the United States. Datran Center is surrounded by a dense concentration of mixed-use development containing 2.0 million square feet of office space, over 2.2 million square feet of existing retail, and over 3,000 existing and under construction residential units within numerous mid- and high-rise buildings. Moreover, Datran Center boasts unparalleled accessibility from virtually anywhere within Miami-Dade County as part of the Dadeland South Metrorail Complex, Miami’s rapid rail transit system utilizes to link the greater Miami region.

This offering represents an extraordinary opportunity to acquire two Class A office buildings that have a combined occupancy of 81% and provide immediate value creation opportunities through the lease-up of available space and mark-to-market of existing rental rates in one of Miami’s strongest commercial and residential market.

PROPERTY FACTS One Datran Two Datran Total Street Address 9100 S Dadeland Boulevard 9130 S Dadeland Boulevard City, State Miami, FL 33156 Miami, FL 33156 Year Built/Renovated 1984/2003 1986/2003 - Net Rentable Area 256,656 216,138 472,794 BOMA Remeasured Rentable Area 270,246 217,577 487,823 Site Area 2.70 acres 1.87 acres 4.57 acres Number of Stories 18 stories 20 stories - Leased % 89% 72% 81% Finished Ceiling Height 9 feet 9 feet - Parking Spaces 650 spaces 802 spaces 1,452 spaces Parking Ratio 2.5 per 1,000 SF 3.7 per 1,000 SF 3.0 per 1,000 SF Leasehold Interest The leasehold interest underlying Datran Center is with Miami-Dade County with an initial lease expiration of December 31, 2038. The ground lease will be automatically renewed at the end of the initial term for an additional 44 years (December 31, 2082).

Downtown Miami Coral Gables South Miami South Miami

5 6 874 8 Dadeland SNAPPER CREEK EXPRESSWAY 4 Metrorail Station North Dadeland Mall Pinecrest 2 PALMETTO EXPRESSWAY 1 826

7 3 DATRANcenter 7

1 2

Dadeland DADELAND OFFICE MARKET Metrorail 1 One Datran Center Station South 2 Two Datran Center 3

R 3 Dadeland Centre I 4 Dadeland Centre II 5 9350 Financial Center 6 One Dadeland Center 7 Dadeland Town Center I 4 RESIDENTIAL 1 2 at Dadeland 3 Metropolis One & Two 4 Colonnade Dadeland 5 Alta Dadeland 5 6 Modera Dadeland 6 7 Pearl Dadeland 8 Towers at Dadeland

OFFERING HIGHLIGHTS

IRREPLACEABLE TROPHY LOCATION Datran Center enjoys an irreplaceable strategic location within one of the largest business and shopping districts south of Downtown Miami—Dadeland. Few submarkets in the Southeast boast the immediate residential and commercial density, proximity to affluent neighborhoods, access to mass transit and major highway systems. The opportunity to reposition and enhance the return profile of this Class A office complex is limitless as evidenced by the recent developments and current statistics within the immediate area.

PREFERRED SUBURBAN OFFICE COMPLEX As one of the original components of the Dadeland South Metrorail Station, Datran Center is an easily identifiable landmark with an exceptional reputation within the market. This Class A office complex benefits from a well-maintained physical plant with prolonged institutional ownership that has invested nearly $4.5 million in capital over six years to enhance and improve the marketability of the complex. It features exquisite interior finishes along a 3-story atrium lobby and state-of-the-art conference facilities. Additionally, it is LEED Gold-certified and has been ENERGY STAR rated for eight consecutive years for its operating efficiency. LEASE-TO-CORE UPSIDE OPPORTUNITY With a combined occupancy of 81% and 90,042 square feet of available space, a new owner has the ability to create significant and immediate value through an aggressive lease-up strategy. The average occupancy of competing Class A office buildings within the submarket is greater than 90%. The office complex offers enough available square footage to transform the assets and enhance the return profile. Downtown Miami Brickell Coral Gables South Miami South Miami UNRIVALED URBAN CONNECTIVITY 5 6 Datran Center is a part of the of the Metrorail, Miami’s rapid rail transit system. Metrorail’s 23 874 8 Dadeland SNAPPER CREEK EXPRESSWAY 4 Metrorail stations connect Dadeland with , Coral Gables, Miami’s Brickell Financial District, Downtown Miami, Station North Dadeland Mall Miami International Airport and stretch as far north and west as Hialeah and the Palmetto, respectively. Importantly, Pinecrest the Dadeland South Metrorail Station provides the luxury of quick, convenient transportation to Downtown Miami in 2 PALMETTO EXPRESSWAY 1 roughly 15 minutes, allowing professionals access in the otherwise congested ingress and egress to the Miami CBD. 826 In addition, Miami-Dade County Transit and Parks, Recreation and Open Spaces Departments, in partnership with 7 3 DATRANcenter Friends of The Underline, are working together on a master plan for The Underline—a 10-mile stretch of biking and 7 pedestrian trails and park spaces located beneath the county’s Metrorail between the north of Brickell and Dadeland South stations. 1 2

Dadeland ONE OF MIAMI’S PREMIER LIVE + WORK + PLAY NEIGHBORHOOD DADELAND OFFICE MARKET Metrorail 1 One Datran Center Station South The Dadeland area is home to world class restaurants and shopping destinations, Class A office buildings, international 2 Two Datran Center 3

R 3 Dadeland Centre I hotel chains and luxury multifamily all intertwined to, create a walkable, urban environment that is unmatched by 4 Dadeland Centre II 5 9350 Financial Center any community in southern Miami-Dade County. ’s Dadeland Mall, a 1,448,000 square foot 6 One Dadeland Center 7 Dadeland Town Center I 4 super regional shopping center anchored by Saks Fifth Avenue and , and one of the Company’s trophy RESIDENTIAL 1 Downtown Dadeland assets, boasts sales of over $1,000 per square foot and is located within walking distance to Dadeland’s core, 2 Toscano at Dadeland 3 Metropolis One & Two adding to the numerous amenities and options offered by the vast array of street level retail and dining options in 4 Colonnade Dadeland 5 Alta Dadeland 5 the neighborhood. 6 Modera Dadeland 6 7 Pearl Dadeland 8 Towers at Dadeland PREDICTABLE AND APPRECIATING INCOME STREAM Datran Center offers a unique combination of secure in-place cash flow with contractual rent increases and significant growth opportunity through the lease-up of vacant space and mark-to-market opportunities in a strengthening market. NOI is projected to increase by 67% over the 10-year projection, an impressive 5.6% compounded annual growth rate. STRONG AND DIVERSIFIED TENANT ROSTER Datran Center possesses an outstanding investment profile, offering dynamic tenant diversification complemented by excellent duration. The 472,794 square foot office complex features a rent roll of nearly 70 tenants. Equally impressive is a weighted average remaining lease term for the five largest tenants of over 9.8 years. The total office complex boasts a weighted average remaining lease term of 6.6 years. No single tenant occupies more than 15.1% of the net rentable area and less than 25% of the property rolls over within the first several years.

MAJOR TENANTS Tenant Industry Area (SF) % of Property Notes Preferred Care Partners Healthcare 71,366 15.1% S&P: A, $11.4B market cap MDM Hotel Group Hospitality 32,767 6.9% - Ace American Insurance 24,352 5.2% S&P: AA, $34.2B market cap AXA Advisors Financial 20,268 4.3% S&P: A, $64.2B market cap Regus Executive Suites 15,558 3.3% $2.3B market cap Klein Glasser Park Lowe Legal 11,484 2.4% - Liberty Mutual Insurance 10,911 2.3% S&P: A Markowitz Legal 9,009 1.9% - Horr Novak & Skipp Legal 8,081 1.7% - Binstock Rubin Legal 7,794 1.6% - Verifone Telecommunications 7,461 1.6% S&P: BB, $4.4B market cap Brown Sims Legal 7,167 1.5% - Avon Products Cosmetics 7,042 1.5% S&P: BB, $2.8B market cap Sabadell United Bank Financial 3,507 0.7% S&P: BB+, $11.8B (EUR) market cap Morgan Stanley Financial 3,475 0.7% S&P: A, $76.4B market cap Raymond James Financial 2,361 0.5% S&P: BBB Chicago Title Insurance Insurance 2,234 0.5% S&P: A Total 244,837 51.8%

Datran Center Tenant Composition by Category

Telecommunications, Cosmetics, 2% 2% Real Estate, Other, 4% 7%

Financial, 15%

Legal, 26% Healthcare, 20%

Insurance, 15% Hospitality, 9% SYNERGISTIC ON-SITE AMENITIES The combination of office, retail and hotel offerings at Datran Center offer a synergy not found at competitive standalone properties. The successful incorporation of multiple uses in a fortress location drives consistent traffic to the Property at all times of the day. Office tenants appreciate the unparalleled access to mass transit and the convenience of working steps away from premium shopping and dining amenities including two grocery stores— Publix and Trader Joe’s. Additionally, a four-star, luxury Marriott Hotel anchors the eastern end of the atrium lobby. The 302-room Miami Marriott Dadeland offers full-scale amenities to hotel guests and office tenants, including a restaurant and meeting room / conference room facilities.

SUBSTANTIAL DISCOUNT TO REPLACEMENT COST Datran Center offers investors the opportunity to acquire a Class A office complex in a one-of-a-kind location at a substantial discount to replacement cost, providing a competitive basis for years to come. Due to the lack of available land and recent institutional investment in the market, replacement cost would be in excess of $500 per rentable square foot.

UNENCUMBERED BY EXISTING DEBT Datran Center is being offered on a debt financing free and clear basis, which allows an investor to take advantage of today’s strong lending markets to attractively finance the Property’s secure in-place cash flow and generate significant levered returns. PROXIMITY TO EXECUTIVE HOUSING Datran Center is ideally situated near Miami’s premier residential neighborhoods, including Pinecrest, South Miami, Coral Gables and Coconut Grove. The average household income in a three mile radius from Datran Center is $105,528 and the median value of owner-occupied housing is $433,218 according to Claritas, which is more than twice the national average. Together, these neighborhoods are home to some of Miami’s most influential decision makers who have benefit from their offices to Dadeland due to its proximity to their homes and daily lives, combined with its market leading amenities. Additionally, Datran Center provides superb access to Downtown Miami/Brickell, Midtown/the Design District, Doral and Miami Beach.

DEMOGRAPHIC OVERVIEW 3-mile 5-mile 7-mile Miami-Dade radius radius radius County 2015 Population 95,795 293,223 682,110 2,666,776 Population Growth 2015-2020 5.1% 4.3% 5.0% 6.6% Median Age 41 42.5 42.2 39 Proportion of residents with at least a Bachelor's Degree 49.7% 41.1% 33.7% 26.7% 2014 Est. Avg. HH Income $105,528 $95,724 $75,884 $63,419 2014 Median Housing Value $433,218 $356,236 $273,289 $229,386 Proportion of homes > $500,000 42.4% 31.8% 20.3% 13.6% SIGNIFICANT INSTITUTIONAL CAPITAL AND MAJOR DEVELOPMENT TRANSFORMING THE SUBMARKET The Dadeland submarket is one the most sought after submarkets in the Southeastern United States with over $1.0 billion of capital investments planned or currently underway in the immediate area, including 1,500 multi-family units, the recent $100 million expansion of the Dadeland Mall and the $400 million Baptist Health Cancer Facility, all of which are located within a mile of Datran Center. The area’s impressive historical performance and strong real estate fundamentals have attracted the country’s premier institutional capital sources, including Simon Property Group and Morgan Stanley (owners of Dadeland Mall), Invesco and Morgan Group (owners of Pearl Dadeland) and Duncan Hillsley Capital (Downtown Dadeland), among others.

SUBMARKET OF CHOICE FOR PREMIER OFFICE TENANTS As South Miami-Dade’s premier urban infill location, Dadeland offers the combination of a true live/work/play lifestyle, high quality housing, world class retail and unparalleled ease of access. The Dadeland and East Kendall area has attracted some of Miami’s most sought after office tenants, including Preferred Care Partners (a subsidiary of United Healthcare), Morgan Stanley, Bank of America, and Baptist Health, South ’s leading hospital.

INFILL LOCATION IN A HIGH BARRIER TO ENTRY MARKET The recent proliferation of Dadeland residential and commercial development has nearly eliminated well situated sites that have the potential to be developed for future office use. With recent pricing indicating land prices of $10 million per acre or more, no new office development is anticipated as the market continues to respond to Miami’s insatiable demand for multifamily housing in an urban, town center setting.

23 20 19 Orange Line (Dadeland South to MIA) 22 21 Green Line (Palmetto to Dadeland South) 18 95 1 Dadeland South 826 Miami Springs 2 Dadeland North Doral 17 3 South Miami 41st St 195 4 University 15 5 14 1 6 Coconut Grove MIAMI INTERNATIONAL Miami 16 13 7 Vizcaya AIRPORT Beach 8 Brickell 836 12 9 Government Center 11 10 A1A 10 Historic Miami Flagler St Port of Miami 11 Culmer 9 8th St 12 Civic Center 41

13 Santa Clara 8 27th Ave 27th 14 Westchester 42nd Ave 57th Ave 7 15 Earlington Heights Coral Gables 16 Miami International Airport 6 17 Brownsville Bird Rd 5 18 Dr. Martin Luther King Jr 19 Northside 821 South Miami 20 Tri-Rail 4 21 Hialaeah DATRANcenter 826 22 Okeechobee 3 Key 23 Palmetto Biscayne 878 2

94 Pinecrest 1 Kendall

1 825

874

Palmetto Bay KENDALL-TAMIAMI AIRPORT 826 PALMETTO EXPRESSWAY

DATRANcenter

Dadeland Metrorail Station South

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www.hfflp.com CONTACT INFORMATION MIAMI OFFICE All inquiries and requests for information should be directed to HFF’s marketing team for this assignment: INVESTMENT SALES DEBT PLACEMENT Avenue Suite 2950 MANUEL DE ZÁRRAGA HERMEN RODRIGUEZ IKE OJALA PAUL STASAITIS Executive Managing Director Senior Managing Director Director Senior Managing Director Miami, FL 33131 305.448.1333 Ext. 104 305.448.1333 Ext. 136 305.448.1333 Ext. 133 305.448.1333 Ext. 103 T. 305.448.1333 [email protected] [email protected] [email protected] [email protected] F. 305.448.6767 JORGE PORTELA KIMBERLY FLORES TRACEY GOO Associate Director Director Analyst Senior Analyst 305.448.1333 Ext. 165 305-448-1333 Ext. 116 305-448-1333 Ext. 148 [email protected] [email protected] [email protected]

Holliday Fenoglio Fowler, L.P. (“HFF”) a Florida licensed real estate broker.

©2015 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.

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