Confidential Offering Memorandum OCALA RETAIL CENTER Ocala
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Confidential Offering Memorandum OCALA RETAIL CENTER Ocala, Florida 3 Tenant Retail Center Michael J. Fennessy Dietz Commercial 36400 Woodward Avenue, Suite 240 Bloomfield Hills, Michigan 48304 Phone: 248.646.7722 Fax: 248.646.1177 Email: [email protected] www.dietzcommercial.com confidentiality memorandum disclaimer OCALA RETAIL CENTER Dietz Commercial has been retained as the exclusive broker regarding the sale of the Ocala Retail Center located in Ocala, Florida. This Offering Memorandum has been prepared by Dietz Commercial for use by a limited number of parties, and does not purport to provide a necessarily accurate summary of the property or any of the documents related thereto, nor does it purpose to be all-inclusive or to contain all of the information which prospective investors may need or desire. All projections have been developed by Seller and designated sources, and are based upon assumptions relating to the general economy, competition and other factors beyond the control of Seller and, therefore, are subject to variation. No representation is made by Dietz Commercial or Seller, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied on as, a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, Seller and its employees disclaim any responsibility for inaccuracies, and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, Dietz Commercial, Seller, or their employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omission from, the Offering Memorandum or any other written or oral communication transmitted or made available to the recipient. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or Seller since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors. Seller and Dietz Commercial each expressly reserve the right, at their sole discretion to reject any or all expressions of interest or offers regarding the property, and/or terminate discussions with any entity at any time with or without notice. Seller shall have no legal commitment or obligations to any entity viewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Seller, and the Board of Directors of Seller, a written agreement for the purchase of the property has been fully executed, delivered, and approved by Seller, and its legal counsel, and any conditions to Seller obligations thereunder have been satisfied or waived. This Offering Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting the Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose the Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Seller and Dietz Commercial, and that you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller and Dietz Commercial. If you have no interest in the property at this time, please return the Offering Memorandum forthwith. investment real estate brokerage services Disclaimer table of contents OCALA RETAIL CENTER I. Executive Summary Photographs 1-2 General Information 3 Investment Highlights 4 Aerial Photograph 5 Maps 6 II. Tenant Information Rent Roll 7 Tenant Description 8,9 Survey 10 Photograph 11 III. The Market Area Information 12,13 Neighborhood Description 14,15 IV. Financial Summary 2018 Pro-Forma 16 investment real estate brokerage services TabofCont EXECUTIVE SUMMARY OCALA RETAIL CENTER photographs investment real estate brokerage services Photosusenow1final 1 OCALA RETAIL CENTER photographs investment real estate brokerage services Photosusenow1final 2 general information OCALA RETAIL CENTER Property: Ocala Retail Center 9548 SW Highway 200 Ocala, FL 34481 Location: Property is located on SR 200 along the westerly side of the Wal-Mart Supercenter access road just east of SR 484. Square Footage: 5,000 sf Age: 2007 Number of Tenants: 3 Occupancy: 100% Tenants: Five Guys Burgers (2,000 sf – corporate store) Lee’s Famous Recipe (1,800 sf) T-Mobile (1,250 sf) Acreage: 1.08 acres Zoning: B-4, Regional Business/Commercial Parcel #: 35342-000-06 Parking: 40 spaces (8 per 1,000 sf) Comments: Property was constructed in 2007 with impact glass and originally included a Starbucks (with drive-thru). Shortly after opening, Starbucks closed 900 stores which included this location and in 2010, Lee’s Famous Recipe Chicken subleased Starbucks space in 2010 and recently executed a direct lease with the ownership through 2/28/2026. Property is an out- parcel to the Wal-Mart Supercenter in the dominant retail corridor. investment real estate brokerage services GenInfo 3 OCALA RETAIL CENTER investment highlights Purchase Price: $2,302,446 2018 Pro-forma Net Operating Income: $149,659 Capitalization Rate: 6.50% Occupancy: 100% Terms: Cash investment real estate brokerage services InvestHigh 4 OCALA RETAIL CENTER aerial photograph investment real estate brokerage services 5 area maps OCALA RETAIL CENTER f investment real estate brokerage services AreaMaps 6 TENANT INFORMATION OCALA RETAIL CENTER rent roll Square Lease Lease Annual Rent Tenant % of Expense Notes Feet GLA Commencement Expiration Rent PSF Options Five Guys Operations (d/b/a PRS of 3 – 5 year options remaining 2,000 40% 09/24/2007 11/30/2022 $77,000 $38.50 Note 1 Five Guys C1, T,I (1) $46.59 (2) $51.24 (3) $56.37 Burgers) $51,300 $28.50 3/1/19 $52,326 Stillwell $29.07 3/1/20 $53,373 Enterprises, Inc. $30.24 3/1/21 $54,440 PRS of 4 – 5 year options with 2% annual (d/b/a Lee’s 1,800 36% 06/10/2016 02/28/2026 $30.85 Note 2 3/1/22 $55,529 C2,T,I increases compounded annually. Famous Recipe $31.47 3/1/23 $56,639 Chicken) $32.10 3/1/24 $57,772 $32.74 3/1/25 $58,928 TCC Wireless, PRS of 2 – 5 year options LLC (d/b/a 1,200 24% 04/28/2017 04/28/2022 $21,600 $18.00 Note 3 C3, T, I (1) $19.80 (2) $27.78 T-Mobile) $29.98/ TOTALS 5,000 100% $149,900 avg. The following codes apply to the recovery methodology of the individual tenants. More specific lease information is included in the Lease Abstracts included in this Offering Memorandum. C1= Tenant pays pro-rata share of common area maintenance expenses. The CAM expenses shall not exceed 105% on a non-cumulative basis payable by tenant in the previous year. CAM includes 15% of operating expenses. The capped amount in 2017 is $6,656 for CAM which resulted in landlord expense of $241.00. C2= Tenant pays pro-rata share of common area maintenance expenses. Administrative fee is 15%. CAM expenses which shall not increase by more than 5% per year (to be calculated on a non-cumulative basis). C3= Tenant pays their pro-rata share of common area maintenance expenses. The CAM expenses include a 10% of CAM administrative fee and total CAM shall not increase by more than 5% per year (calculated on a cumulative basis). T = Tenant pays pro-rata share of real estate taxes. I = Tenant pays pro-rata share of insurance expenses. Notes (1) Five Guys Burgers Corporate took over an assignment of the original lease with Gator Burger Bet, LLC on October 1, 2013 and now is the guarantor of the lease. Five Guys Operations, LLC extended the lease on October 3, 2017 through November 30, 2022. (2) Lee’s Famous Recipe Chicken initially subleased space from Starbucks in June 2010 (Starbucks originally occupied the space) and in March 2018, Lee’s Famous Recipe Chicken executed a direct lease with the current ownership through 2/28/2026. investment real estate brokerage services 7 tenant description OCALA RETAIL CENTER Early in 2003, Jerry and Janie, together with the “Five Guys” began offering franchise opportunities. In just under 18 months, Five Guys Enterprises sold options for more than 300 units. The overwhelming success of franchising a local restaurant made national news, with articles in trade publications such as Nation’s Restaurant News, Restaurant Business Magazine and the Franchise Times. Now, 30 years after Five Guys first opened, there are almost 1,500 locations worldwide and another 1,500 units in development. Five Guys continues to receive generous media attention and has grown a cult-like following around the world. www.fiveguys.com Lee Cummings, the nephew of Colonel Harland Sanders (founder of KFC), spent much of his childhood in the kitchen of his Henryville, Indiana home. Lee hit the road with his uncle Harland in 1952 selling their own special blend of spices along with their famous pressure cookers, which later became part of KFC’s “Secret Recipe”. In three years, Lee and the Colonel opened over 800 KFC stores. After the sale of KFC in 1962, Lee Cummings started developing his recipe, later to be known as “Famous Recipe”.