20,000 sf Industrail Building 2040 Lee St Hollywood, FL 33020

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1 20,000 sf Industrail Building Large 20,000 sf warehouse on an acre lot New RAC DH3 zoning permits many development opportunities DH3 zoning Dixie Highway High Intensity Mixed USE district Great land bank for investors, ProForma Cap rate is 8.62% when leased Close proximity to Sheridan ST and I95 Sponsored By: JOHN DEMARCO, ACP Each office is independently owned and operated. RE/MAX 5 STAR REALTY 4151 Hollywood Blvd Hollywood, FL (954) Each office independently owned and operated

2 REAL ESTATE INVESTMENT DETAILS Analysis Analysis Date March 2017 Property Property Property Address Year Built ,000 sf Industrail Building 2040 Lee St Hollywood, FL Purchase Information Property Type Industrial Purchase Price $2,300,000 Tenants 1 Total Rentable Sq. Ft. 20,000 Financial Information All Cash Loans Type Debt Term Amortization Rate Payment LO Costs All Cash Income & Expenses Gross Operating Income $0 Monthly GOI $0 Total Annual Expenses ($42,280) Monthly Expenses ($3,523) Contact Information John DeMarco, ACP JohnDeMarco@Remax.net P. 2

3 EXECUTIVE SUMMARY ACQUISITION COSTS Purchase Price, Points and Closing Costs $2,300,000 Investment Cash $0 INVESTMENT INFORMATION Purchase Price $2,300,000 Price per Tenant $2,300,000 Price per Sq. Ft. $ INCOME, EXPENSES & CASH FLOW Gross Scheduled Income $0 Total Vacancy and Credits $0 Operating Expenses ($42,280) Net Operating Income ($42,280) Debt Service $0 Cash Flow Before Taxes ($42,280) FINANCIAL INDICATORS Debt Coverage Ratio N/A Capitalization Rate 1.84% Gross Income / Square Feet $0.00 Gross Expenses / Square Feet ($2.11) Operating Expense Ratio N/A P. 3

4 PROPERTY DESCRIPTION 20,000 sf Industrial Building John DeMarco with Re/Max 5 Star Realty is pleased to present 2040 Lee Street. This once in a lifetime acquisition consists of a 20,000 square foot freestanding warehouse situated on a large one acre lot. Property is currently owner occupied and owner will deliver the property vacant prior to closing. This desirable corridor of North Dixie Highway was just rezoned to RAC DH3, or Dixie Highway High Intensity Mixed USE district. This new liberal zoning allows construction of up to 10 stories, and allows many different uses and opportunities. This zoning change has significantly increased property values and has encouraged several new developments from breaking ground within close proximity to this property. This trend is expected to continue over the next 510 years. This property has about 10% built out office, and 90% warehouse, ample parking, 24 foot ceilings, and several street level roll up doors. The large acre lot is fully fenced in and selfcontained. Perfect for an owner user or investor. Investors can lease this property out and receive a strong 8.62% Capitalization rate when fully leased. Priced to sell at only $115 a square foot, see included recent industrial comparable sales exceeding $160 a foot, with the average at $140 a square foot. Please remember to not disturb the existing business or property, all showings are by appointment only. Call listing broker for additional information. P. 4

5 PRO FORMA SUMMARY INCOME Actual Per SF Market Per SF Gross Potential Rent $0 $0.00 $227,910 $11.40 Less: Vacancy $0 $0.00 ($29,628) ($1.48) Effective Gross Income $0 $0.00 $198,282 $9.91 OPERATING EXPENSES Actual Per SF Market Per SF Building Insurance $7,000 $0.35 $0 $0.00 Maintenance $2,400 $0.12 $0 $0.00 Taxes Real Estate $26,640 $1.33 $0 $0.00 Trash Removal $840 $0.04 $0 $0.00 Utility Electricity $3,600 $0.18 $0 $0.00 Utility Water / Sewer $1,800 $0.09 $0 $0.00 Total Expenses ($42,280) ($2.11) $0 $0.00 Net Operating Income ($42,280) ($2.11) $198,282 $9.91 P. 5

6 PRO FORMA SUMMARY TENANT ANNUAL SCHEDULED INCOME Tenant Actual Market vacant $0 $227,910 TOTALS $0 $227,910 INVESTMENT SUMMARY Price: $2,300,000 ANNUALIZED INCOME Actual Market Gross Potential Rent $0 $227,910 Less: Vacancy $0 ($29,628) Effective Gross Income $0 $198,282 Less: Expenses ($42,280) $0 Net Operating Income ($42,280) $198,282 Year Built: 1961 Tenants: 1 RSF: 20,000 Price/RSF: $ Lot Size: 42,943 sf Floors: 1 APN: Cap Rate: 1.84% Market Cap Rate: 8.62% ANNUALIZED EXPENSES Actual Market Building Insurance $7,000 $0 Maintenance $2,400 $0 Taxes Real Estate $26,640 $0 Trash Removal $840 $0 Utility Electricity $3,600 $0 Utility Water / Sewer $1,800 $0 Total Expenses $42,280 $0 Expenses Per RSF $2.11 $0.00 Average market rental rate in the area is $ See Lease Comps Summary Page 15. P. 6

7 DETAILED GENERAL EXPENSES Description Year 1 Year 2 Year 3 Year 4 Year 5 Total Expenses ($42,280) ($42,821) ($43,370) ($43,927) ($44,493) Building Insurance ($7,000) ($7,140) ($7,283) ($7,428) ($7,577) Maintenance ($2,400) ($2,472) ($2,546) ($2,623) ($2,701) Taxes Real Estate ($26,640) ($26,906) ($27,175) ($27,447) ($27,722) Trash Removal ($840) ($848) ($857) ($865) ($874) Utility Electricity ($3,600) ($3,636) ($3,672) ($3,709) ($3,746) Utility Water / Sewer ($1,800) ($1,818) ($1,836) ($1,855) ($1,873) and should be personally verified through personal inspection by and/or with the appropriate professionals. P. 7

8 PROPERTY PHOTOS 92967PP1.jpg 92967PP2.jpg 92967PP3.jpg 92967PP4.jpg 92967PP5.jpg 92967PP6.jpg P. 8

9 MAPS AND AERIALS and should be personally verified through personal inspection by and/or with the appropriate professionals. P. 9

10 MAPS AND AERIALS and should be personally verified through personal inspection by and/or with the appropriate professionals. P. 10

11 1 11 SW 12th Ave, Unit Bldg 4 SOLD Dania Beach, FL Sale Date: Sale Price: Price/SF: Pro Forma Cap Actual Cap Rate: 9.10% Comp ID: Research Status: Confirmed 08/26/2016 (163 days on mkt) Condo Type: $1,885,000 Confirmed Year Built/Age: $ RBA: Broward County 12,300 SF Industrial Condo Built 2005 Age: 11 12,300 SF Parcel No: AA0460, AA0470, AA0480 Sale Conditions: Investment Triple Net NW 21st St SOLD Miramar, FL Sale Date: Sale Price: Price/SF: Pro Forma Cap Actual Cap Rate: Comp ID: Research Status: Confirmed 01/26/2017 (132 days on mkt) Bldg Type: $1,700,000 Confirmed Year Built/Age: $ RBA: Parcel No: Sale Conditions: Broward County Class C Industrial Built 1973 Age: 44 11,106 SF Business Value Included SW 31st Ave SOLD Pembroke Park, FL Sale Date: Sale Price: Price/SF: Pro Forma Cap Actual Cap Rate: Comp ID: Research Status: Confirmed 11/30/2016 Bldg Type: $3,750,000 Confirmed Year Built/Age: $ RBA: Parcel No: Sale Conditions: Broward County Class C IndustrialWarehouse Built 1952 Age: 64 19,570 SF Redevelopment Project SW 52nd St DGF SOLD Davie, FL Sale Date: Sale Price: Price/SF: Pro Forma Cap Actual Cap Rate: Comp ID: Research Status: Full Value 03/21/2016 Bldg Type: $1,950,000 Full Value Year Built/Age: $ RBA: Parcel No: Sale Conditions: Broward County Class C IndustrialWarehouse Built 1997 Age: 19 13,581 SF Ansin Blvd SOLD Hallandale Beach, FL Sale Date: Sale Price: Price/SF: Pro Forma Cap Actual Cap Rate: Comp ID: Research Status: In Progress 01/31/2017 Bldg Type: $1,700,001 Year Built/Age: $ RBA: Parcel No: Sale Conditions: Broward County Class C IndustrialWarehouse Built 1968 Age: 49 15,560 SF Simms St South Florida Ind Park SOLD Hollywood, FL Sale Date: Sale Price: Price/SF: 11/02/2016 Bldg Type: $965,000 Year Built/Age: $ RBA: Broward County Class C IndustrialWarehouse Built 1980 Age: 36 9,396 SF Pro Forma Cap Actual Cap Rate: Comp ID: Research Status: Research Complete Parcel No: Sale Conditions: P. 11 Copyrighted report licensed to Re/Max 5 Star Realty /29/2017 Page 1

12 Thomas St MultiProperty Sale (Part of MultiProperty) SOLD Hollywood, FL Sale Date: Sale Price: Price/SF: 10/14/2016 Bldg Type: $1,775,000 Confirmed Year Built/Age: $ RBA: Broward County Class C IndustrialWarehouse Built 1952 Age: 64 8,986 SF Pro Forma Cap Actual Cap Rate: Comp ID: Research Status: Confirmed Parcel No: Sale Conditions: P. 12 Copyrighted report licensed to Re/Max 5 Star Realty /29/2017 Page 2

13 Trend Report Dollar Volume # of Transactions Cap Rate Average Price Per SF Legend: Current Survey Sold Transactions Time Interval Quarterly Number of Transactions Total Dollar Volume Total Bldg Square Feet Total Land in Acres Total Land in SF Average Price Average Number of SF Average Price Per Bldg SF Median Price Per SF Average Number of Acres Average Number of SF(Land) Average Price Per Unit Median Price Per Unit Average Number of Units Actual Cap Rate Survey Criteria Report Time Frame: 1/1/2016 3/29/2017 Sale Date: from 3/1/2016 Sold Transactions 7 $13,725,001 70, ,406 $1,960,714 11,822 $ $ , % basic criteria: Type of Property Industrial; Property Size 7,000 30,000 SF; Price/SF from $99.00 SF/Yr; Sale Date from 3/1/2016; Sale Status Sold; Return and Search on Portfolio Sales as Individual Properties Yes geography criteria: Geography User Defined Search P. 13 Copyrighted report licensed to Re/Max 5 Star Realty /29/2017 Page 3

14 Trend Report 1Q16 01/13/31/16 3Q16 07/19/30/16 4Q16 10/112/31/16 1Q17 01/13/29/17 Sold Transaction Sold Transaction Sold Transaction Sold Transaction Number of Transactions Total Dollar Volume Total Bldg Square Feet Total Land in Acres Total Land in SF Average Price Average Number of SF Average Price Per Bldg SF Median Price Per SF Average Number of Acres Average Number of SF(Land) Average Price Per Unit Median Price Per Unit Average Number of Units Actual Cap Rate 1 $1,950,000 13, ,719 $1,950,000 13,581 $ $ ,719 1 $1,885,000 12,300 $1,885,000 12,300 $ $ % 3 $6,490,000 18, ,476 $2,163,333 9,191 $ $ ,492 2 $3,400,001 26, ,211 $1,700,000 13,333 $ $ ,106 P. 14 Copyrighted report licensed to Re/Max 5 Star Realty /29/2017 Page 4

15 Lease Comps Summary Lease Comps Report Deals 31 Asking Rent Per SF $12.11 Starting Rent Per SF $10.89 Avg. Months On Market 12 LEASE COMPARABLES SUMMARY STATISTICS Rent Deals Low Average Median High Asking Rent Per SF Starting Rent Per SF Effective Rent Per SF Asking Rent Discount TI Allowance Months Free Rent $7.75 $9.25 $ % 0 $12.11 $10.89 $ % 1 $11.50 $10.71 $ % 1 $18.50 $12.00 $ % 1 Lease Attributes Deals Low Average Median High Months on Market Deal Size Lease Deal in Years Floor Number , , , , P. 15 and should be personally verified through personal inspection Copyrighted by and/or with report the licensed appropriate to Re/Max professionals. 5 Star Realty /29/2017 Page 1

16 Lease Comps Summary Lease Comps Report Lease Rents Property Name Address Rating SF Leased Floor Sign Date Type Rent Rent Type Bldg I SW 32nd Ave Bldg P SW 31st Ave Building Anglers Ave Building HT4B Pembroke Rd Building Tigertail Blvd 110 SW 12th Ave 13,000 1st 2/26/2017 New $11.08/ig Asking 7,755 1st 2/8/2017 New $13.25/ig Asking 5,440 1st 2/7/2017 New $14.50 Asking 5,110 1st 1/19/2017 New $13.37/ig Asking 7,000 1st 1/1/2017 New $11.49/mg Asking 6,293 1st 12/30/2016 New $12.18/nnn Effective N 29th Ave 20,800 1st 12/16/2016 New $11.50/ig Asking S Park Ln 5,000 1st 11/15/2016 New $12.00/ig Asking Rodman St 5,028 1st 11/1/2016 New $12.00/mg Effective 10 Bldg 1b 3125 John P Curcie Dr 11,520 1st 9/22/2016 New $11.75/ig Asking Evans St 21,220 1st 9/2/2016 New $12.00 Asking Ansin Blvd 8,067 1st 5/26/2016 Renewal $12.00/nnn Asking SW 2nd Pl 5,840 1st 5/24/2016 New $12.00/fs Asking SW 12th Ave 8,057 1st 5/11/2016 New $10.19/ig Effective N 28th Ter 12,000 1st 5/2/2016 New $12.00/n Effective SW 31st Ave 8,600 1st 5/2/2016 New $10.97/ig Effective 16 Atlas Pen Corp 3040 N 29th Ave 5,000 1st 4/1/2016 New $12.00/fs Effective 17 Building Q SW 31st Ave 5,250 1st 3/16/2016 New $11.76/ig Asking 16 Atlas Pen Corp 3040 N 29th Ave 7,000 1st 3/2/2016 New $10.67/fs Effective 18 Bldg 2a 2500 Park Rd 6,246 1st 2/1/2016 New $10.82/ig Effective Stirling Rd 5,000 1st 12/7/2015 New $10.00/mg Asking P. 16 and should be personally verified through personal inspection Copyrighted by and/or with report the licensed appropriate to Re/Max professionals. 5 Star Realty /29/2017 Page 2

17 Lease Comps Summary Lease Comps Report Lease Rents Property Name Address Rating SF Leased Floor Sign Date Type Rent Rent Type Building N 29th Ave 3945 Pembroke Rd 9,700 1st 12/3/2015 New $12.00/ig Asking 11,376 1st 11/1/2015 New $11.25/ig Asking 22 Bldg A SW 31st Ave 6,094 1st 10/28/2015 New $10.22/ig Effective 23 Bldg B SW 31st Ave 7,912 1st 10/15/2015 New $10.90/ig Effective 24 Lab Corp of America 4200 N 29th Ave 14,900 1st 10/3/2015 New $10.00/mg Asking N 29th Ave 17,000 1st 9/2/2015 New $11.00/mg Asking 26 Bldg D 2001 SW 31st Ave 10,406 1st 8/3/2015 New $10.80/ig Effective 27 HT5A 3883 Pembroke Rd 10,400 1st 7/3/2015 New $10.62/ig Starting 5 Building Tigertail Blvd 21,000 1st 4/27/2015 New $16.95/nnn Asking 5 Building Tigertail Blvd 7,000 1st 3/31/2015 New $16.95/nnn Asking P. 17 and should be personally verified through personal inspection Copyrighted by and/or with report the licensed appropriate to Re/Max professionals. 5 Star Realty /29/2017 Page 3

18 DEMOGRAPHICS POPULATION 1 MILE 3 MILE 5 MILE Male 9,889 (50.55 %) 57,227 (49.15 %) 128,189 (48.52 %) Female 9,673 (49.45 %) 59,197 (50.85 %) 136,006 (51.48 %) Total Population 19, , ,195 AGE BREAKDOWN 1 MILE 3 MILE 5 MILE Ages (4.43 %) 4,969 (4.27 %) 12,293 (4.65 %) Ages 59 1,126 (5.76 %) 6,438 (5.53 %) 15,817 (5.99 %) Ages ,036 (5.30 %) 6,109 (5.25 %) 14,948 (5.99 %) Ages (4.88 %) 5,791 (4.97 %) 14,276 (5.40 %) Ages (5.07 %) 5,733 (4.92 %) 14,179 (5.37 %) Ages ,037 (5.30 %) 5,738 (4.93 %) 14,163 (5.36 %) Ages ,114 (5.69 %) 6,103 (5.24 %) 14,494 (5.49 %) Ages ,273 (6.51 %) 6,870 (5.90 %) 15,828 (5.99 %) Ages ,486 (7.60 %) 7,918 (6.80 %) 17,795 (6.74 %) Ages ,668 (8.53 %) 8,844 (7.60 %) 19,509 (7.38 %) Ages ,661 (8.49 %) 8,920 (7.66 %) 19,489 (7.38 %) Ages ,513 (7.73 %) 8,526 (7.32 %) 18,321 (6.93 %) Ages ,246 (6.37 %) 7,697 (6.61 %) 16,373 (6.20 %) Ages ,009 (5.16 %) 6,655 (5.72 %) 13,992 (5.30 %) Ages (3.94 %) 5,528 (4.75 %) 11,687 (4.42 %) Ages (3.01 %) 4,499 (3.86 %) 9,501 (3.60 %) Ages (2.02 %) 3,384 (2.91 %) 7,245 (2.74 %) Ages (4.21 %) 6,702 (5.76 %) 14,285 (5.41 %) P. 18

19 DEMOGRAPHICS HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE Median Income $36,789 $48,287 $46,173 Less than $10, ,191 9,806 $10,000 $14, ,287 6,835 $15,000 $19, ,688 7,374 $20,000 $24, ,804 6,906 $25,000 $29, ,884 7,491 $30,000 $34, ,774 6,815 $35,000 $39, ,774 6,189 $40,000 $44, ,944 6,094 $45,000 $49, ,403 5,052 $50,000 $59, ,260 8,996 $60,000 $74, ,516 11,018 $75,000 $99, ,585 11,695 $100,000 $124, ,642 6,886 $125,000 $149, ,671 3,741 $150,000 $199, ,952 3,487 Greater than $200, ,018 4,339 HOUSING 1 MILE 3 MILE 5 MILE Housing Units 11,222 68, ,071 Occupied Units 9,228 54, ,846 Owner Occupied Units 3,907 30,360 68,514 Renter Occupied Units 5,321 24,391 46,332 Vacant Units 1,994 13,804 31,225 RACE DEMOGRAPHICS 1 MILE 3 MILE 5 MILE Population Non Hispanic White 13,916 87, ,282 Population Black 4,531 22,320 54,731 Population Am In/Ak Nat P. 19

20 LOCATION MAP P. 20

21 Regional Activity Center Rezoning What is a Regional Activity Center? In order to attract the right kind of development, the right regulatory framework needs to be in place. The purpose of the Regional Activity Center (RAC) is to provide just that. The Regional Activity Center is a high intensity, high density multiuse area designed as appropriate for growth by the local government or jurisdiction. RACs are intended to encourage attractive and functional mixed living, working, shopping, education, and recreational activities, in areas of regional importance. The Regional Activity Center Land Use is intended to: Encourage development or redevelopment of areas that are of regional significance; Facilitate mixeduse development; Encourage mass transit; Reduce the need for automobile travel; Create understandable regulations that promote quality development; and Give definition to the urban form. Where is the Regional Activity Center? The Regional Activity Center is generally located East of I95 and West of 17th Avenue. The visualization below provides additional boundary information. P. 21

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25 While the RAC provides the adequate land use framework for the vision, the existing Zoning does not. The existing Zoning has an array of issues, the majority of which are related to uses: the limitation of uses the adjacency of those uses inadequate transitions between uses majority of zoning categories do not encourage mixeduses Why Hollywood rezoned the RAC American cities are on the rebound. Demographic shifts, lifestyle preferences, and improved mobility options are a few of the key factors driving the desire for urban living. Recognizing the importance of the RAC designation, the City of Hollywood has commenced the rezoning process within its RAC to encourage attractive and functional redevelopment in this area of regional significance. Hollywood's RAC covers an area of over 1,450 acres that includes Downtown Hollywood and the key commercial and residential corridors of Federal Highway, Dixie Highway, and a portion of Hollywood Boulevard. While the RAC provides the adequate land use framework for the vision, the existing Zoning does not. The existing Zoning has an array of issues, the majority of which are related to uses: the limitation of uses the adjacency of those uses inadequate transitions between uses majority of zoning categories do not encourage mixeduses Additionally, existing Zoning density allowances create false expectations for development. The allowed densities could not be achieved within the envelope of the current regulations. This was proven in the Downtown Master Plan, published in P. 25