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 S uare
Inte hames d rn ational 4 ,50 Spe 0 AAD edw ay lvd
• 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
46 011 SF
W INTERNATIONAL SPEEDWA BLVD
ROAD T AMES INTERIOR PHOTOS INTERIOR PHOTOS AERIAL Daytona each
Mainland igh School
VOLUSIA MALL
ONE DA TONA FAS ION MALL
More than 8 Million Visitors Per ear VOLUSIA MAR ET PLACE International S
VOLUSIA S UARE hames d p eedway lvd 4 ,500 AAD INTERNATIONAL SPEEDWA S UARE
119, 000 A AD 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). The site benefits from robust demographics with a total daytime population of 121,244 within a 5 mile radius. Growth in the area immediately surrounding the site is robust, with a projected annual growth rate of 8.97% through 2025 within 1 mile of the site. Average household income within a 1 mile radius is $63,661. In addition, the property benefits from a synergistic location adjacent to the Daytona International Speedway, the headquarters of NASCAR, which draws more than 8 million visitors per year, and the adjacent to the Daytona Beach International Airport, through which much of the region’s tourist traffic arrives. The property additionally benefits from a prominent retail location in close proximity to shopping centers, employers, and major retail tenants. The property is located in Volusia Square shopping center, anchored by The Home Depot and Dollar Tree. Other retail centers in the surrounding area include International Speedway Square, featuring Total Wine & More, Dick’s Sporting Goods, Michael’s, and Haverty’s; Volusia Marketplace, with tenants including Cost Plus World Market, Ashley Homestore, Big Lots, and Joann Fabrics; One Daytona Fashion Mall, featuring Bass Pro and Guitar Center; Volusia Mall, anchored by Macy’s and Dillard’s; Daytona Plaza, SITE anchored by West Marine; Holly Hill Plaza, anchored by ALDI; and Tomoko Town Center, featuring TJ Maxx, Hobby Lobby, Bealls, and Academy Sports + Outdoor. Other major retail tenants in the surrounding area include Target, Winn-Dixie, Publix, Walgreens, Rooms to Go, Petsmart, and more. The property is also located in close proximity to Daytona State College, with approximately 26,000 students enrolled; University of Central Florida Daytona Beach; and Embry- Riddle Aeronautical University, the world’s largest fully- accredited university specializing in aviation and aerospace, with approximately 7,056 students enrolled. The property additionally neighbors Mainland High School and Halifax Academy, drawing additional traffic from students, parents, and teachers to the site. The site also neighbors Halifax Health Medical Center, a 554-bed hospital, level II trauma center, and the city’s second-largest employer with a staff of 4,050. DEMOGRAPHICS
2455 W International Speedway Blvd | Daytona Beach, FL 32114
Major Employers # of in Daytona Beach Employees
7,623 TOTAL POPULATION AVG. HOME VALUE AVG. HOUSEHOLD INCOME Volusia County School District 115,012 $247,000 $63,661 Halifax Health 4,050 Volusia County 3,408
Population Summary 1 Mile 1 3 Miles 5 Miles Advent Health Daytona Beach 2,288 2010 Total Population 1,067 25,703 92,229 Embry-Riddle Aeronautical 2,003 2020 Total Population 1,088 29,093 107,102 University 2025 Total Population 1,672 31,675 115,012 Daytona State College 1,250 2020-2025 Annual Rate 8.97% 1.72% 1.44% 921 2020 Total Daytime Population 2,974 45,400 121,244 City of Daytona Beach
Average Household Income Bethune Cookman University 843 2020 $63,661 $56,296 $54,734 Florida Hospital Healthcare 697 2025 $68,284 $61,747 $60,135 Partner Average Home Value SMA Healthcare 677 2020 $247,000 $190,324 $188,044 2025 $291,391 $215,017 $227,933
PRESERVE WEST CAPITAL | 10 BUILDING CAPITAL WITH CONFIDENCE
Putnam Daily Lindsey Snider Michael Maffia Partner Vice President Managing Partner 415.445.5107 415.906.2887 415.373.4060 [email protected] [email protected] [email protected] CA RE License #01750064 CA RE License #01443387 CA RE License #01340853