Bruce K. Erhardt, ALC Cushman & Wakefield of Florida, Inc. Tampa Bay Land Market Overview 4Q 2013

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1 Bruce K. Erhardt, ALC Cushman & Wakefield of Florida, Inc. Tampa Bay Land Market Overview 4Q 2013 The following represents excerpts from economic and real estate journals, notes from conventions, seminars and other meetings I attended, along with personal opinions of my own and others that affect the land market in the Tampa Bay Region. Previous Market Overviews can be found at. Erhardt s Quick Look at the Land Market Multifamily land Rental continues to be very active, to the point where A sites urban and suburban are almost gone. I think we have 12 months left in the land buying part of the cycle. Townhomes are active at the entry level and condominiums in urban and beach locations are also active. Single Family As for the last 17 quarters, builders and developers are closing and making offers on A and B locations. There is a shortage of lots in A locations. Large master planned community sites are either in permitting or under contract and in due diligence, and will be delivering lots in 2014, 2015 and Retail - Same as last 26 quarters, land prices are flat, but not declining. Development continues to be driven by single tenant, necessity retail and end users. Outparcels continue to be active. Publix and Wal-Mart are exceptions. Industrial Two Amazon 1,000,000 square foot distribution facilities are under construction. End users are in the market for numerous sites throughout the market. Since multiple developers already own development land for new spec development, I don t foresee additional land purchases by developers, unless they have a tenant in tow. Office No change, users only. Currently five office users in the market for sites for build-to-suit or build-to-own. Hospitality For the third quarter, development activity continues. Bank Deals Still have another year or two of land inventory to be sold. Agricultural Land Active, along with recreational land. ERHARDT COMMENT: I feel we are at the beginning of the third year of a six to eight year cycle. Statistics say the Great Recession ended in 2008, but I say it was early 2012 for Tampa real estate development. Page 1 of 14

2 The Big Picture Wells Fargo Economics, Mark Ventner, December 17, 2013 Florida added 44,600 jobs in October. Tampa St. Petersburg Clearwater Metropolitan Area posted the strongest year over year increase (+3.4%) of any large metropolitan area, this was 39,800 new jobs. Net gain year over year of jobs of 181,700 new jobs for the state. Hospitality and retailing added 89,500 jobs over the past year. Florida unemployment fell to a post recession low of 6.7% in October. The state s unemployment rate declined 1.5 percentage points over the past year, and has fallen 4.7% since topping out in January, four years ago. The Tampa unemployment rate is between 5.5% and 6.5%. After rising an estimated 3.5% in 2013, Wells Fargo expects Florida s Real Gross Domestic Product to climb 3.9% in Personal income is expected to rise at a 4.8% pace in 2014, as 175,000 jobs are added to non-farm payroll, and the unemployment rate falls 6% by the end of Strategy for Real Estate Companies: How to Manage for the Cycle, by Charles A. Hewlett, Managing Director, RCLCO, December 12, 2013, Please click here for part two of RCLCO s strategy on managing the cycle: 2-advisory-cycle-strategy-part pdf ERHARDT COMMENT: Having been in the business 35 years, this is the most I ve heard buyers and sellers make reference to the real estate cycle. Comments like, I don t want more than a once cycle project, I want to sell this cycle, Where are we in this cycle? The other interesting thing I saw in this essay was who purchases land in stage 6, late stable. That was NEW players. TD Bank Economist, October 24, 2013 Predicting 3% GDP in 2014 and 3.9% GDP in There will be more household formations than residential starts for the next two years. Between September 2012 and 2013, nearly 42,000 jobs were generated in Tampa Bay, more than any other Metro in Florida. Page 2 of 14

3 Florida Polytechnic University, The first week of December, I toured what you could of the Polytechnic University campus. The following are some notes from that tour: Florida s Poly is Florida s only state university dedicated exclusive to science, technology, engineering, and math, STEM. The structure you see from I-4 is a cupola that moves with the sun to provide shade for the Innovation, Science and Technology (IST) building. The motors that move the cupola are solar powered acre campus. First phase will have a 216 bed dormitory. Current students have 4.06 GPA and average 1790 on SATs. 500 are expected to enroll this fall. By 2024, they expect they will be at 5,000, which is the maximum. Tuition in-state is $5,000, out of state is $21,000. The first year, most students will qualify for scholarships. While the university is currently not accredited, once it does become accredited (expected by 2016), it is retroactive to the students who start this fall. $120 million will be invested when it opens in August of this year. Dividend Capital Research Cycle Monitor Real Estate Market Cycles, Q3-2013, Physical Market Cycle Analysis of All Five Major Property Types in More Than 50 MSAs. Employment growth in October 2013 was a strong confirmation that the pace of the economic recovery was finally accelerating, even in the face of the government shutdown. The strong stock market is attributed to the confidence of large companies to expand and hire new workers. Small businesses are learning the new tax and healthcare law changes. Increasing demand bodes well for all the real estate property sectors. Office occupancies improved 0.2% in Q3-2013, and rents grew 0.9% for the quarter and 2.5% annually. Industrial occupancies improved 0.2% in Q3-2013, and rents grew 1.3% for the quarter and 3.9% annually. Apartment occupancies were again flat in Q3-2013, and rents grew 0.5% for the quarter and 2.6% annually. Retail occupancy improved 0.1% in Q3-2013, and rents grew 0.4% for the quarter and 0.7% annually. Hotel occupancies improved 0.4% in Q3-2013, but RevPAR declined 1.5% for the quarter and 4.8% annually. Page 3 of 14

4 Office Market Cycle Analysis The national office market occupancy level improved 0.2% for Q and was up 0.6% year over year. Only six markets improved their cycle position and most remain in the recovery phase of the cycle. Office using employment sector growth rates continue to improve at a moderate rate, but the square foot per person (sfpp) usage continues to fall, so it takes more people employed to lease the same amount of space. According to a recent CBRE study, the sfpp average has fallen from 220 sfpp to 196 sfpp today and is expected to drop to 170 sfpp by the year While the newly hired 20 somethings are currently happy with the new hoteling and benching concepts, it remains to be seen if they will be happy with this arrangement as they become more senior in business. New office space is needed for the hoteling and benching concepts and thus creating demand for new flexible floor plans. With older 1980s office space not being as competitive, vacancies are higher and holding market average occupancies down. Average additional rents were up 0.9% in Q and were up to 2.5% year over year. For the third quarter, Tampa is at level three of the recovery phase. With Tampa are Miami, Orlando and Nashville. Behind Tampa are Palm Beach and Ft. Lauderdale. Ahead of Tampa are Charlotte, Jacksonville and Raleigh-Durham. Industrial Market Cycle Analysis Industrial occupancies improved 0.2% in Q and were up 1.0% year over year. Almost half of all markets are now in the growth phase of the cycle (points 6 through 11 on the cycle graph). Demand continues to be driven by the improving U.S. manufacturing industry and the surprisingly strong U.S. retail sales growth, even during the government shutdown. Sea port and Path of Good Movement markets have had the strongest demand and are in the growth phase of the cycle, while markets that hold goods only for local residents are lagging. In addition, buildings with newer designs and updated technology that are 400,000 square feet and larger are in demand; while older, smaller shade and shelter buildings are hard to lease. The industrial national average rent index increased 1.3% in Q and was up 3.9% year over year well ahead of inflation. For the third quarter, Tampa is at level 5 in the recovery phase. With Tampa is Atlanta. Behind Tampa are Jacksonville and Orlando. Ahead of Tampa are Charlotte, Nashville, Raleigh- Durham, Palm Beach, Ft. Lauderdale and Miami. Apartment Market Cycle Analysis The national apartment occupancy average again remained unchanged in Q and was up only 0.3% year over year. When occupancy is unchanged, it normally is signaling an equilibrium point in the cycle where demand and supply are in balance (point #11 on the cycle chart). While U.S. demand continues to be strong, new supply growth is accelerating. While supply growth has matched demand the last two quarters, the new starts and projected completions are expected to accelerate over the next year and far surpass demand. Note that Denver has jumped to the hyper supply phase of the cycle at point #12 as occupancies declined in Q due to so many new units coming on the market. We have not yet determined if many more markets will jump the cycle peak in our market forecasts, or if they might settle back Page 4 of 14

5 to a recovery type situation in the future. Average national apartment growth slowed to 0.5% in Q and were up 2.6% year over year. Tampa is at the same spot as the last nine quarters at level 3, the beginning of the recovery phase. With Tampa are Raleigh-Durham, Orlando, Jacksonville and Charlotte. No markets are behind Tampa. Ahead of Tampa are Atlanta, Nashville, Ft. Lauderdale, Miami and Palm Beach. Retail Market Cycle Analysis Retail occupancies improved 0.1% in Q and were up 0.5% year over year. While these occupancy improvements seem moderate, remember that newer space is in strong demand by national retailers, while older and poorly located space is out of favor and may not be re-leased for a long time. The legalization of marijuana in some states has been a big demand generator for older out of favor retail space and helped markets like Denver. First tier retail malls are in high demand with average occupancies over 95% and very strong rental growth. National average retail rents increased 0.4% in Q and were up 0.7% year over year. After six quarters at level three of the recovery phase, Tampa has moved up to level four. With Tampa is Palm Beach. Behind Tampa are Atlanta, Richmond, Charlotte, Ft. Lauderdale, Memphis, Nashville and Orlando. Ahead of Tampa are Miami and Raleigh-Durham. Hotel Market Cycle Analysis Hotel occupancies improved an average of 0.4% in Q and were up 1.8% year over year. Demand growth has been quite impressive with occupancy levels averaging above 70% in those markets at the cost feasible rent level (point #8 in the cycle) and above on the cycle chart. Business travel has been especially strong. New supply growth continues to be reasonable and moderate in most markets. National average Hotel RevPAR declined 1.5% in Q (which is a seasonal decline and expected), but was up 4.8% year over year. For the third quarter, Tampa is at level 6, the beginning of the expansion phase. Behind Tampa are Charlotte, Jacksonville, Raleigh-Durham and Memphis. Ahead of Tampa are Nashville, Orlando and Ft. Lauderdale. ULI Fall Meeting, Chicago, IL, November 2013 Notes from various sessions Predicting price appreciation of 4% in Land appreciation 20% to 30%. Some land buyers are pushing back. While there is a lot of infill, there are always buyers that want a yard. Ethnic buyers salesperson needs to understand it. Some of the newer product does not have a living room. Infill buyer is a move down. Urban infill doesn t work for large families. Vertical single family has gotten as dense as 15 to 17 units per acre. Page 5 of 14

6 30% of product in master planned communities in the future will be multi-generational. Lennar has a next gen home that is a home within a home. The trend of marriage without children is increasing and marriage with children is weakening. Interest rates may stay low for a long time. Mainly because of the United States debt. If you re paying $350,000 or more, the product will need lifestyle. Outdoor covered space. While walking trails have replaced golf courses, developers are now using farming to sell suburban homes. A new model for suburban development is springing up across the country that taps into the local food movement. Farms, complete with livestock, vegetables and fruit trees, are serving as a way to entice potential buyers to settle in new subdivisions. In some instances, the HOA or developer owns the land and leases it to a for profit farmer. Tampa Bay Retail Market Overview Cushman & Wakefield s Main Streets Across the World presents a global barometer of the retail sector. Tracking rents in the world s top 334 shopping locations across 64 countries Highlights Hong Kong s Causeway Bay remains the world s costliest retail location for the second year running and breaks through the $3,000 per square foot barrier for the first time in the survey s 25 year history. New York s Fifth Avenue and Avenue des Champs-Elysees in Paris, which saw nearly a 40% rental rise, hold on to second and third place respectively. With continued demand from international luxury brands, rents in London s New Bond Street increased by more than 15% as the location climbed from sixth to become the fourth most expensive shopping street in the world. Global retail rents remain resilient overall with a 3.2% Average increase recorded for prime locations. The Americas showed the strongest regional growth with prime rents increasing by 5.8%. THE WORLD S 10 MOST EXPENSIVE RETAIL LOCATIONS IN EACH COUNTRY (2013) RANK 2013 RANK 2012 COUNTRY CITY LOCATION US$/SQ FT/YEAR /SQ.M/ YEAR 1 1 Honk Kong Hong Kong Causeway Bay 3,017 24, % (China) 2 2 USA New York 5 th Avenue 2,500 20, % 3 3 France Paris Avenue des Champs Elysees 1,601 13, % 4 6 UK London New Bond Street 1,047 8, % 5 4 Japan Tokyo Ginza 984 8, % 6 8 Italy Milan Via Montenapoleone 906 7, % 7 7 Switzerland Zurich Bahnhofstrasse 874 7, % 8 5 Australia Sydney Pitt Street Mall 650 7, % 9 9 South Korea Seoul Myeongdong 732 6, % Austria Vienna Kohlmarkt 536 4, % Source: Cushman & Wakefield (Lists only one location in each country. Full ranking contained in the report. % CHANGE IN LOCAL MEASURE Page 6 of 14

7 Marcus & Millichap, Q Retail Research Market Report New to the market are the Container Store, Gander Mountain and Trader Joe s. Expanding local and regional chains are Corner Bakery Café, Lime Fresh Mexican Grill and Kahwa Coffee. Construction Developers are scheduled to bring on line 300,000 sf of retail space through 2013, declined from 763,502 sf in o There is more than 970,000 sf of retail space under construction, including the 880,000 sf mall at University Town Center in Sarasota. Vacancy Persistence based demand, coupled with strong pre-leasing activity of new construction, will trim vacancy 40 bases points in 2013 to 7.4%. o Vacancy in multi-tenant space is 9.8%. o Vacancy in power centers is at 5.1%. Rents The average available asking rent market wide will pick up 0.9% to $14.85 per square foot. Tampa Bay Single Family Market Overview RCLCO s Top Selling Master Planned Communities for 2013 The top 20 sold 15,150 units, 6% higher than Of the top 20, the Villages in Ocala, Florida was number one, selling 3,419 homes, a 20% increase over Of the top 20, nine were in Houston and four were in Tampa. The closest one to the Tampa Bay area was Lakewood Ranch in Sarasota, which sold 618 units, an 8% increase over Forbes Housing 2014: Ten Predictions From Experts 1. More homes will be available. 2. Mortgage rates will rise. 3. Zillow predicts rates will hit 5% by the end of Mortgages will be easier to get. 4. More home prices will rise 3%. 5. Fewer home owners will be under water. 6. Affordability will decline. 7. Ownership will decline. 8. Americans will move. 9. Foreclosures will fade. 10. Home buying process less crazed. Page 7 of 14

8 Metro Study Q Tampa Bay, (813) ,805 single family starts in Q This is a 19% increase compared to last year s rate of 1,517 units. The September annual start pace is 6,454 was near the top of our 2013 forecast of 5,700 6,500 units. It now appears likely that 2013 starts will exceed 6,600. Metro Study Q Sarasota Bradenton Market 864 single family units were started in Q This represented an increase of 33.3% compared to last year s rate of 648 units. Annual closings rate was 2,990 units per year, which was 46.4% above the annual closings rate of 2,042 units per year in the same quarter last year. 734 lots were delivered to the Sarasota Bradenton market in the third quarter. Vacant developed lot inventory stands at 38,133 lots, a decrease of 1.3% compared to last year. At the end of Q3-2013, Manatee County had a 27.5 month supply, down from 44.1 months supply, of VDL in Q Sarasota County had a 41.7 month supply at Q3-2013, down from a 66.1 month supply at Q Tampa Bay Multifamily Market Overview From Triad Research & Consulting, Inc., Michael Slater, President, Hillsborough County has 12 projects totaling 3,457 units under construction. An additional 13 projects, totaling 3,829 units. Pinellas County has eight projects totaling 2,078 new units and 12 projects totaling 3,172 new units planned. Pasco County has three projects totaling 1,134 units under construction and four projects planned for 858 units. Sarasota/Manatee has three projects totaling 2,272 units under construction and three projects totaling 800 units in planning. Rental Revenue Growth are now being observed and projected contingency on many factors had between 6% and 10% for 2014 through 2015 with 2015 and 2016 contingent upon no global economic downturns. Triad predicts a four to six year period of overall strength in the rental multifamily segment of real estate and construction, acquisitions and repositioning, condominium conversion, and market/consumer demand dynamics. For Mr. Slater s full key findings and summary opinions, please click here: MARKET UPDATE 4th QUARTER 2013.pdf Page 8 of 14

9 Marcus & Millichap, Q National Apartment Report - Tampa Middle stock will grow by 4,200 units, compared to 2,000 units in Vacancy Forecast: Demand will trail supply, yielding a 60 basis point increase in vacancy to 6.2%. Net absorption of more than 2,800 units in 2013 shaved vacancy 60 basis points. Rent Forecast: The following of 3.3% rise last year, owners will lift rents an additional 2.8% to $926 per month. 19th Tampa Bay Area Multifamily Developers Forum, November 20, 2013 The Tampa Bay Area absorbs 4,000 to 5,000 multifamily units per year. o Planned 9,334 for 2013 and Occupancy o Hillsborough County 93% o Pinellas County 92% o Pasco County 91% o Manatee County 94%, 99% in A product. o Sarasota County 97% Trends o Average absorption is 30 per month in suburban and 40 to 50 in urban locations. o 4,000 to 7,000 permitted regionally, delivering 6,000. o Six new jobs equal one new rental unit. Lifestyle and commuting costs is driving urban development, as well as consumer choice. Elevators need $25 to $40 more per unit per month. New urban product in Hyde Park will have three bedroom / three bath units with walk in closets. Parking garage needs $0.20 to $0.30/psf more in rent. ERHARDT COMMENT: It is harder to find infill sites. Lobbies in elevatored product will have hotel feel. I foresee urban product in the suburban markets. The first example is A.G. Spanos four story product on S.R. 56 in Wesley Chapel, Pasco County, which is four story, elevator product. Downtown Tampa built over 3,000 units since There are 367 units under construction, and 2,744 planned. At 1.7 people / unit, that s 9,764 people that could be living downtown in two to three years. Page 9 of 14

10 Office Market Overview Cushman & Wakefield Workplace Transformation Survey A Global View of Workplace Change Survey Findings: 1. More occupiers globally are implementing workplace transformation programs. 2. On average, occupiers sited human resource factors such as recruiting, workforce productivity and improved work/life balance over cost factors, such as reduced facility costs and lower churn, as drivers of workplace change. 3. Hoteling (i.e. on assigned seating) strategies are being more rapidly employed in EMA (Europe Middle East and Asia) and APAC (Asia Pacific) than North America. 4. Reluctance of company management ranks as the biggest barrier to workforce transformation. 5. Most workplaces change strategies are effective in helping organizations reach their goals. 6. Smaller footprint and higher quality. Efficiency and quality rule. To review the entire survey, please click HERE. Cushman & Wakefield Market Overview Tampa Westshore Office Overview: Overall vacancy at the end of 4th quarter 2013 is 14.1% compared to 11.9% last year and 14.5% last quarter. Class A is at 15.4% compared to 11.6% last year and 15.3% last quarter. ERHARDT COMMENT: The Westshore district is where the majority of the BTS and BTS/owner tenants are focusing. I-75 Office Overview: Overall vacancy at the end of the 4th quarter 2013 is at 17.1% compared to 23.4% a year ago and 18.2% last quarter. Class A is at 17.6% compared to 21.6% a year ago and 16.7% last quarter. Tampa Central Business District: Overall vacancy at the end of the 4th quarter 2013 is at 14.2% compared to 14.1% a year ago and 15.4% last quarter. Class A is at 13.1% compared to 12.5% a year ago and 14.5% last quarter. Page 10 of 14

11 Transportation Florida Department of Transportation Future Roads Suncoast Expressway north of Highway 98 is 60% designed will be 80% designed by the end of 2014, and is funded. The new north bound bridge for I-275/Howard Frankland is adding a train lane. A new Veteran s Memorial Avenue, designed to give direct access to Tampa International Terminal from the west. Industrial Market Overview Cushman & Wakefield Market Overview Tampa West Tampa Industrial Overview: The overall vacancy at the end of the 4th quarter, 2013 is 5.7% compared to 7.0% a year ago and 6.8% last quarter. Warehouse distribution is at 3.2% vacancy compared to 5.5% a year ago and 4.6% last quarter. Office Service Center is at 12.6% vacancy compared to 13.0% a year ago and 13.6% last quarter. East Tampa Industrial Overview: The overall vacancy at the end of the 4th quarter 2013 was 8.1% compared to 8.5% a year ago and 8.2% last quarter. Warehouse distribution is at 8.4% vacancy compared to 8.8% a year ago and 8.5% last quarter. Office Service Center is at 14.9% vacancy compared to 17.1% last year and 15.1% last quarter. Plant City Industrial Market Overview: The overall vacancy at the end of the 4th quarter 2013 was 1.2% vacancy compared to 1.2% a year ago and 1.2% last quarter. Warehouse distribution is at 1.8% vacancy compared to 1.8% a year ago and 1.8% last quarter. Lakeland Industrial Market Overview: The overall vacancy at the end of the 4th quarter 2013 was 4.9% vacancy compared to 4.1% a year ago and 4.9% last quarter. Warehouse distribution is at 5.9% vacancy compared to 4.7% a year ago and 6.0% last quarter. Service center is at 16.8% compared to 17.1% a year ago and 17.1% last quarter. Page 11 of 14

12 ERHARDT COMMENT: It will be interesting to see what the result of two-one million square foot Amazon facilities means to owner/user and spec building in ERHARDT COMMENT: I have been reading a lot about the reshoring trend as it relates to manufacturing in the United States. This is caused by labor costs increasing in India and China and other countries. A recent article in Florida Trend stated that companies begin to consider outsourcing when the cost of manufacturing overseas appears to be 20% less than making goods in the United States. But companies that have outsourced jobs will consider moving them back when the cost gap narrows to 16%. A consulting firm, The Hackett Group, predicts that the total landed cross gap with China will reach 16% sometime this year. Florida s proximity to growing middle classes in Central America, South America and Africa will help fuel this manufacturing growth. We will also see components made in Asia and Europe, that are assembled in the United States. Larry Fink, CEO of Black Rock said on Bloomberg television last Summer, The United States is heading for a new renaissance, and I agree. The United States has raw materials, energy is cheap and skills are great. Land Sales Tampa CBD 1. An investment group including Gold Crown Management of Colorado and Jeff Vinik (Tampa Bay Lightning) purchased approximately 3 acres of land contiguous to the north of the ice hockey arena for $10,000,000 or $76.52 per square foot. Seller was Crescent Heights. Single Family 1. DR Horton purchased 31.5 acres for 51 lots in Bradenton, Manatee County. This was $43,967 per acre and $27,059 per unit. 2. A new entity formed by Schroeder-Manatee Ranch and Starwood Land Ventures purchased 475 acres in Lakewood Ranch entitled for 600 units. This equates to $49,263 per acre and $39,000 per unit. 3. Crosland Investments (John and Michael Neal and Stuart Carland) purchased acres in the northeast quadrant of I-75 and Moccasin Wallow Road, north Manatee County, for $2,750,000. This equates to $10,244 per acre and $6,250 per unit for 400 units. Page 12 of 14

13 4. Picerne Real Estate Group purchased 17.2 acres in the Brandon area of Hillsborough County for $3,150,000 for 311 units or $10,128 per unit. The property was 90% land developed, retention off site. Industrial 1. Amazon purchased 80 acres in south Hillsborough County for $14,600,000, which is $4.19 per ground foot and $14.60 per building foot. The property was pad ready, no off site obligations. Multifamily 1. A 1.7 acre land site sold in Miami CBD for $ per square foot. The property is entitled for 466 residential units. $7,210 per unit. The density is 274 units/acre. 2. Related purchased a 4 acre site on Brickell Avenue for a rumored price of $100 million or $ per square foot. The property is entitled for 1,200 residential units, a 200 room hotel, and 200,000 square feet of office space and street level retail. 3. Davis Development purchased 24 gross, usable acres at Lakewood Ranch, Manatee County, for $3,800,000 or $13,571 per unit. The density on the usable is 25 units/acre. 4. Alliance purchased 18.4 acres at the southwest corner of Belcher and S.R. 60, Clearwater, Pinellas County, for $22,000 per unit. The property is zoned for 240 units multifamily. 5. Alliance purchased approximately 3 acres in the Hyde Park submarket of Tampa, Hillsborough County, for $21,235 per unit. Density is 86 units/acre. 6. Forge Capital Partners purchased 0.8 acres on Harbour Island for $2,900,000 or $12,608 per unit or $83.28 per square foot. The property was pad ready. Density is units/acre. 7. Sky House Channelside LLC purchased 1.54 acres in the Channelside area of Tampa s CBD for $70.06 per square foot and $14, per unit. The density is 208 units/acre. Agricultural 1. North Carolina State University sold 79,000 acres of timberland for $150,000,000 or $1,898 per acre. The purchaser was Walker Ag Group of Danville, IL. Senior Living Office 1. Discovery Village Sarasota Bay, LLC purchased 11 acres for $2,400,000 and $6,837 per unit for 225 multifamily units and 126 bed assisted living center. 1. USAA purchased 36.7 acres in Brandon for $15.47 per building foot and $4.07 per land foot. Planning a 420,000 sf back office facility. Page 13 of 14

14 Mixed Use Retail 1. Hines (S.R. 54 Land Associates LLC) purchased 536 acres on S.R. 54, just west of the Suncoast Expressway for $21,000,000. The property is zoned for 550 single family homes, 200 townhomes, 440 multifamily units, 300,000 square feet of retail space and 530,000 of office/light industrial. 1. Bass Pro Shops purchased 18 acres for $6,000,000 or $7.65/land foot. Page 14 of 14