Speedway Indoor Karting Daytona Beach, FL | Greater Orlando
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FILE PHOTO PANDEMIC RESISTANT TENANT OPERATING IN PRO-BUSINESS ENVIRONMENT WITH NO RESTRICTIONS OFFERING MEMORANDUM Speedway Indoor Karting Daytona Beach, FL | Greater Orlando This property is listed in conjunction with Florida-licensed real estate broker Robert Long. www.preservewestcapital.com TABLE OF CONTENTS PROPERTY HIGHLIGHTS 1 INTERIOR PHOTOS 5 PROPERTY INFORMATION 3 AERIALS 7 TENANT INFORMATION 4 ABOUT THE AREA 8 SITE PLAN 5 DEMOGRAPHICS 10 Disclaimer MGM Capital Corp dba Preserve West Capital (“Broker”) has been retained on an exclusive basis to market the property Putnam Daily described herein (“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute Partner the enclosed information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of 415.445.5107 intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and [email protected] make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, CA RE License #01750064 you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller deems appropriate. Lindsey Snider The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person Vice President without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the 415.906.2887 information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller [email protected] and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, CA RE License #01443387 members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must Michael Maffia independently confirm the accuracy of the projections contained in the pro forma. Managing Partner Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, 415.373.4060 to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a [email protected] purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with CA RE License #01340853 respect thereto. Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information. www.preservewestcapital.com PROPERTY HIGHLIGHTS More than 8 Million Visitors Per ear Daytona each Daytona Daytona International Airport International Speedway Volusia Suare W Inte Thames Rd rn ational (47 ,50 Spe 0 AADT)edw ay Blvd • Brand New 10-Year Net Lease to Speedway Indoor Karting with • Excellent Access & Visibility along Speedway Blvd – 47,500 AADT Personal Guarantee from Both Operators • Prominent Retail Location within Volusia Square Shopping Center - Rare Annual 2% Rental Escalations Anchored by Home Depot • World Class Indoor Karting Facility in the Heart of Racing in - Nearby Anchor Tenants Include Target, ALDI, Publix, Winn- Daytona Beach Dixie, Sam’s Club, Walgreens, & More • Strategic Location Within Walking Distance of Daytona • Student Population of 33,000+ Within 5 Mile Radius International Speedway - Neighbors Daytona State College, University of Central Florida - Headquarters of NASCAR and Known as the “World Center Daytona Beach, and Embry-Riddle Aeronautical University of Racing” • Approximately 3 Miles from Halifax Health Center - Draws Approximately 8 Million Visitors Per Year - 544-Bed Hospital & Level II Trauma Center • Very Successful Grand Opening in November - Daytona Beach’s Second-Largest Employer with Staff - Every Car for Every Race Sold Out Until Closing of 4,000+ • Florida is Open for Business with All Restrictions Lifted • Less than 1 Mile from Daytona International Airport • Robust Demographics in Surrounding Area • Approximately 51 Miles Northwest of Orlando - Total Daytime Population of 121,244 within 5 Mile Radius - Annual Growth Rate of 8.97% Within 1 Mile of Site PRESERVE WEST CAPITAL | 1 PROPERTY INFORMATION PRICE $5,880,000 6.65% Return 7.28% Blended Yield over Primary Term Location Annual Rent The property is located at 2455 West International Speedway Blvd, Suite 301, in Years Annual Rent Rent PSF Return Daytona Beach, Florida. Year 1 $391,094 $8.50 6.65% Lot Size Year 2 $398,915 $8.67 6.78% Approximately 4 acres or 174,240 square feet. Year 3 $406,894 $8.84 6.92% Year 4 $415,032 $9.02 7.06% Improvements Year 5 $423,332 $9.20 7.20% A 46,011 square foot retail building for Speedway Indoor Karting. Year 6 $431,799 $9.38 7.34% Year 7 $440,435 $9.57 7.49% Parking Year 8 $449,244 $9.76 7.64% There is ample parking available on site. Year 9 $458,228 $9.96 7.79% Lease Year 10 $467,393 $10.16 7.95% Leased to SIK Daytona LLC for 10 years and 2 months and guaranteed for five years by Andrew O’Gara, Sara Fisher O’Gara, and Speedway Indoor Karting, LLC from an Financing anticipated rent commencement date of January 29, 2021 through March 31, 2031 at an This property will be delivered free and clear of permanent financing. initial annual rent of $391,094. Rent is to increase by 2% annually. The lease is net with tenant responsible for taxes, insurance, maintenance, proportionate share of common area maintenance costs, and contributions to reserves in the amount of $11,502.75 Right of First Offer annually. Tenant is responsible for HVAC maintenance, repairs, and replacements; Tenant shall have the right of first offer to purchase the property on the same however, Tenant’s total financial responsibility for HVAC repairs and replacements within terms as conditions as those of any bona fide offer that Landlord intends to the first five years of the lease shall be limited to a total amount of $50,000. Increases accept within twenty (20) days after receipt of Landlord’s notice of the terms in CAM costs billed by the landlord, but not in CAM Costs billed to landlord under the and conditions on which Landlord intends to sell the property. CC&Rs, and reserves are capped at 8% annually on cumulative basis. PRESERVE WEST CAPITAL | 2 ABOUT THE TENANT Speedway Indoor Karting offers world-class indoor go-karting facilities at its Indianapolis and Daytona Beach locations. The facilities feature multiple impressive air rotation units as well as fresh air intakes to allow guests to experience the adrenaline, power and feel of go karts all year round. Both locations are strategically located in close proximity to major motorsports racing tracks. In addition to go- karting, both facilities also offer Axe Throwing and other recreational activities. The Daytona Beach facility features two separate tracks. The first is a European-style, multi-level, road course sure to provide a challenge for any skill level. The second is a slick track oval which guarantees an adrenaline rush as you drift through the corners. Speedway Indoor Karting offers various kart styles to allow a vast group of people to participate. They feature adult karts and junior karts. All of their karts are state-of-the-art electric karts with high speed capabilities providing a racing experience like none other. PRESERVE WEST CAPITAL | 3 SITE PLAN 46011 SF W INTERNATIONAL SPEEDWAY BLVD THAMES ROAD INTERIOR PHOTOS INTERIOR PHOTOS Daytona each Mainland igh School AERIAL VOLUSIA MALL ONE DATONA FASION MALL More than 8 Million Visitors Per ear International S VOLUSIA SUARE VOLUSIA MARET PLACE Thames Rd p eedway lvd 4,500 AADT) INTERNATIONAL SPEEDWA SUARE (119,000 AADT) ABOUT THE AREA General Overview Daytona Beach (population 66,520) is a city in Volusia County and a principal city of the Deltora-Daytona Beach-Ormond Beach Metropolitan Statistical Area (population 600,756). The city is situated approximately 51 miles northwest of Orlando and 86 miles southeast of Jacksonville. The city is known for the extensive presence of motorsports in the city, which draw millions of visitors each year to the Daytona International Speedway and NASCAR events. The region benefits from a broad economic base in tourism, professional services, manufacturing, research SITE and development, logistics, and more; in 2017, the Deltora-Daytona Beach-Ormond Beach MSA had a GDP of approximately $17.2 million. The Ormond Beach Business Park and Airpark, a foreign trade zone within the region, houses 29 companies that provide more than 2,000 jobs. Corporations in region include Costa Del Mar, First Green Bank, Microflex Inc., Brown & Brown, Halifax Health, International Speedway Corporation, Gambro-Renal Products, Ladies Professional Golf Association, and Hawaiian Tropic. The greater Daytona Beach area benefits from a robust tourism economy drawing millions of visitors annually; major tourist attractions include the Daytona International Speedway, where NASCAR is headquartered, the New Smyrna Speedway, and Volusia Speedway park. ABOUT THE AREA Site Information The subject property is prominently located with excellent access and visibility along International Speedway Boulevard (47,500 AADT) less than one mile from its junction with the I-95 arterial (119,000 AADT).