401 Vonderburg Dr 6,300 SF Office Building

Underwriting Report 401 Vonderburg Dr 6,300 SF Office Building PREPARED BY Anne Nymark ANNE NYMARK PA Table Of Contents SUBJECT PROPERTY Property Details 2 MARKET SUMMARY East Tampa Submarket Summary 5 Tampa Market Summary 6 Tampa Economic Summary 7 PEER PROPERTIES Peer Properties Summary 11 Peer Property Photos 13 Peer Property Comparison 15 Peer Property Details 19 LEASING ANALYTICS Vacancy Analytics 26 Rent Analytics 32 Absorption Analytics 34 Leasing Analytics 35 LEASE COMPS Lease Comps Summary 38 Lease Comps Details 40 CONSTRUCTION Overall Construction Summary 49 Tampa Construction 50 East Tampa Construction 51 Construction Activity 55 Under Construction Summary 60 Under Construction Details 63 Completed Construction Past 12 Months 74 Deliveries Past 12 Months Details 76 SALE COMPS Investment Trends 79 Sale Comps Detail 83 Sales Volume 91 Sales Pricing 92 Cap Rates 94 9/22/2019 Copyrighted report licensed to Anne Nymark Team - 903843. Call Anne Nymark - 813-239-9236 Table Of Contents Top Buyers & Sellers 95 DEMOGRAPHICS Overview 98 APPENDIX Historical Leasing Data 100 Historical Construction Data 102 9/22/2019 Copyrighted report licensed to Anne Nymark Team - 903843. Call Anne Nymark - 813-239-9236 Subject Property 401 Vonderburg Dr Brandon, FL 33511 - East Tampa Submarket PROPERTY LOCATION Type: Class C Office Walk Score®: Somewhat Walkable (59) Yr Blt/Renov: 1984 Transit Score®: Some Transit (29) Property Size: 6,300 SF Stories: 1 Typical Floor: 6,300 SF EXPENSES PER SF Parking Spaces: 3.17/1,000 SF Taxes: $1.57/SF (2018) VACANCY OWNER Current: 0.0% George & Mary Dermarkar MD Last Quarter: 0.0% Purchased 1/30/2004 Year Ago: 0.0% Price $485,000; $76.98/SF Peers: 14.5% Submarket 1-3 Star: 9.0% GROSS ASKING RENT PER SF 12 MO. LEASING SF ACTIVITY Current: - Subject Property: 0 Last Quarter: - Peers Total: 10,931 Year Ago: - Peers Avg: 910 Peers: $16.75 Submarket Total: 637,477 Submarket 1-3 Star: $21.58 Submarket Avg: 736 AVAILABLE SPACES Currently No Available Spaces KEY TENANTS Tenant Industry Floor SF # Emps Move Date Exp Date Florida Hematology & Oncology Medical 1st 1,200 8 Jul 2016 - George & Mary Dermarkar MD - 1st 500 - Apr 2005 - CoStar Research Moving Out Moving In My Data Shared Data 9/22/2019 Copyrighted report licensed to Anne Nymark Team - 903843. Call Anne Nymark - 813-239-9236 Page 2 Subject Property TRUE OWNER George & Mary Dermarkar MD 401 Vonderburg Dr Brandon, FL 33511 (813) 684-2339 RECORDED OWNER George & Mary Dermarkar MD 401 Vonderburg Dr Brandon, FL 33511 (813) 684-2339 9/22/2019 Copyrighted report licensed to Anne Nymark Team - 903843. Call Anne Nymark - 813-239-9236 Page 3 Market Summary 401 Vonderburg Dr 6,300 SF Office Building PREPARED BY Anne Nymark ANNE NYMARK PA East Tampa Submarket Summary East Tampa Office East Tampa is fundamentally sound, with a vacancy rate submarket. well below the 20-year average. The tight vacancies Other than periodic build-to-suit deliveries, primarily in have allowed elevated annual rent growth over recent the medical office or back-end financial sectors, East quarters, among the best of Tampa submarkets. Tampa has seen very little recent construction. In early 2019, USAA completed Crosstown Phase Two, a Demand stems from the heavy concentration of financial 240,000-square-foot building that will house their firms. Top tenants include a mix of headquarters for local expanding campus. banking institutions and major regional operations for national financial services. As a result, the submarket Investment activity has reached a record high in 2019, has a higher share of 4 & 5 Star inventory (over 30%) thanks to one massive transaction, when the portfolio than the metro-wide average of 25%. including both Crosstown Center One and Two closed for $199 million. This trade alone outperformed any other The inventory is among the oldest in the metro, which year in East Tampa's history for total sales volume. contributes to East Tampa's struggles attracting desirable Pricing appears near peak value for the cycle, as cap tenants. The bulk of the higher-grade product can be rates have been relatively flat for the past four years. found along I-75, which effectively bisects the NET ABSORPTION, NET DELIVERIES & VACANCY 9/22/2019 Copyrighted report licensed to Anne Nymark Team - 903843. Call Anne Nymark - 813-239-9236 Page 5 Tampa Market Summary Tampa Office Tampa’s office market is fundamentally sound and one of the lowest construction metros in the nation this effectively in equilibrium. After the average vacancy rate cycle by percent inventory added. Though the recession reached the lowest mark ever recorded last year, it has is nearly a decade in the rearview mirror, local only gently risen over recent quarters due to a handful of developers maintain long memories after being one of large tenant move-outs. Additionally, annual rent gains the hardest-hit metros in the nation. are among the best in the nation. However, the metro is on the cusp of a significant wave The tenant base is strong and dominated by financial of office construction in 2019, including numerous large services, with a heavy concentration of office-using speculative projects that could add millions of square feet employment in back-office operations and business in upcoming years. Among the expected services firms. Lately, office demand has increasingly groundbreakings later this year are 1001 Water Street favored financial services, even by Tampa's historical and Midtown Tampa. Heights Union, a 300,000 SF office trends. Over the last twelve months, well over 90% of mid-rise project spread across two buildings, recently office-using employment has consisted of financial broke ground and subsequently signed co-working giant activity job growth. Tampa also benefits from some of the WeWork to a 50,000 SF lease. WeWork has been active nation's best population growth and below-average in the Tampa area and also expects to occupy 60,000 business costs, which further stabilizes office demand. SF in a downtown tower, including naming rights for the building to WeWork Place. Record low vacancies have allowed landlords to push rates somewhat aggressively over recent quarters. Following a relative investment boom period, sales Asking rents remain comfortably above prerecession volume has begun to cool. After mildly slowing by about peaks in 2019, a benchmark they've exceeded now for 5% in 2018, sales have further cooled this year and are the past two years. on pace for the lowest total in over five years. While pricing is still increasing and caps generally compressing, Despite the positive indicators, developers have both are also showing signs of flattening. remained wary of the Tampa market, which has been NET ABSORPTION, NET DELIVERIES & VACANCY 9/22/2019 Copyrighted report licensed to Anne Nymark Team - 903843. Call Anne Nymark - 813-239-9236 Page 6 Tampa Economic Summary Tampa Office Tampa’s overall economy is booming, with both job and Tourism is a large economic driver of Tampa's economy. population growth rates exceeding the national average. Tourism activity has ramped up with four consecutive full The average working age population growth over the last years of positive growth, something not seen since the two years has been roughly three times the national late 1990s. In the most recently-released calendar year average. With a relatively flat natural population growth figures, a record 22.6 million people visited Tampa and rate over recent years, Tampa has become increasingly the Hillsborough County area, according to Visit Tampa reliant upon in-migration to fuel the robust economy. In Bay. Taxable hotel revenue has also been pouring in, fact, since 2013, 99.7% of all new household formation with recent record-setting bed taxes qualifying has come from in-migration. New residents are drawn to Hillsborough County to join neighboring Pinellas County Tampa's robust employment opportunities, relatively as one of only nine high-impact tourism counties in the affordable housing, climate, and overall comparatively state of Florida. Perhaps even more impressive was how lower cost of living than in typically-sized metros. Hillsborough achieved this status, as the other eight counties include direct beach access or are home to In addition to a strong domestic migration, international theme parks such as Disney World or Universal Studios. migration has become an increasingly significant contributor to migration trends and now accounts for Part of the increase in tourism can be attributed to the 30%. While a boon to new household formation, the high city's expanding presence housing major sporting events, level of international migration does place an increasing such as the 2017 College Football Playoff National level of risk exposure on Tampa to policy changes or Championship. The majority of the week-long festivities macroeconomic events that might stem the flow of centered on the Tampa Riverwalk, which has been a immigrant workers. Though the population has been hotbed of development - many cranes building luxury growing rapidly in Tampa for decades, the metro has residential towers dotted the skyline throughout the struggled historically to bring in the prime renting cohort televised broadcasts. Other examples of Tampa's of 20 - 34 year olds. However, that is changing in recent increased sports visibility include hosting the 2018 NHL years as this segment has grown at roughly twice the All-Star Game, WrestleMania 36 in 2020, and the move national average. With Tampa's continued push to of Super Bowl LV to Tampa in 2021. become a more urban, walkable metro, the market should continue to get younger and compete more Corporate relocations and expansions are common in favorably with other popular millennial migration Tampa, such as Fortune 500 firm Mosaic's recent destinations.

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