FOR SALE - Under Construction Multi-Tenant NNN Leased Investment Gateway Village at Town Center - Jacksonville, Florida West Elevation East Elevation SALES PRICE: $5,855,233 CAP RATE: 6.0% INVESTMENT HIGHLIGHTS NNN Investment Brand New Construction Three tenant building with Burrito Gallery, MHospitality, and 1,433 SF of Shop Space New 10 year leases with escalations Located in the Town Center sub-market of Jacksonville Significant barriers to entry in the market Representative Photo North Elevation Part of an 18-acre mixed-use development with multi-family, shop space and a RaceTrac gas c-store Close proximity to the highly successful St. Johns Town Center Eight Million SF of office space within a 2.5 mile radius with over 625,000 SF of additional office space under construction Over 1,100 multi-family units planned or under construction within a one mile radius
MARKET SUMMARY The property is part of the Gateway Village at Town Center development. Gateway Village is a new mixed-use development located in the Town Center market of Jacksonville, Florida. The development includes 300 multi-family units, retail, and medical uses. This trade area is the fastest growing submarket of Jacksonville. The success of the St. Johns Town Center has spurred tremendous growth including extensive retail office, and residential development. Retailers in the St. Johns Town Center include Nordstrom, Dillard s, Apple, Microsoft, REI, Best Buy, Target, Publix, and PGA Superstore. Additionally, there are many restaurant offerings including Capital Grille, Coopers Hawk, Fogo de Chao, Buffalo Wild Wings, Red Robin, Firebirds, Cheddar s and Chuy s. This is the destination retail shopping center in Jacksonville and draws customers from all of northeast Florida and southeast Georgia. There are over eight million square feet of office space within a 2.5-mile radius of the property, with an additional 625,000 square feet planned or under construction. This includes headquarters for Web.com, Availity, and Mckesson. These three employers will bring an estimated 2,000 jobs to the market within the next year and a half. Other major employers in the area include Deutsche Bank, the FBI, and Adecco. In addition to the strong office presence, there is a rapidly increasing population in the market due to the construction of new single and multi-family developments in the area. This includes over 1,100 multi-family units currently planned or under construction within a mile of the property. The strategic location in the rapidly growing Town Center provides an excellent opportunity for investors looking for trophy real estate with strong tenants.
AREA RETAIL & NEW DEVELOPMENT
NEW DEVELOPMENT SOUTH OF BUTLER
OVERALL GATEWAY VILLAGE SITE PLAN
RETAIL BUILDING SITE PLAN
CONSTRUCTION PHOTOS
INVESTMENT OVERVIEW OVERVIEW This is a great opportunity to purchase an under construction multi-tenant NNN leased investment in the vibrant Town Center Trade area of Jacksonville, Florida. Tenants include Burrito Gallery, MHospitality and 1,433 SF of Shop Space. Each tenant has 10-year lease with escalations. This is a great investment opportunity for investors looking for a long-term, stable investment with limited landlord responsibilities in the highly sought after Town Center trade area of Jacksonville. HIGHLIGHTS Brand new construction New 10 year leases Limited landlord responsibilities Increases in the initial terms and option periods Located in the high barrier to entry Town Center Market
PROPERTY INFORMATION & EXECUTIVE SUMMARY PROPERTY INFORMATION CURRENT NET OPERATING INCOME Property: Gateway Village Tenants: Burrito Gallery, 1,433 SF of Shop Space, MHospitality Property Address: SWC Gate Parkway & Deerwood Park Blvd Jacksonville, Florida Acreage: 1.77 Building Sq. Ft.: 9,520 Year Built: Under Construction; Completion Scheduled for 1st Quarter of 2019 PRICING Net Operating Income: $351,314 Cap Rate: 6.0% List Price: $5,855,233 Income Analysis: Expense Analysis: Net Operating Income: Base Rent Burrito Gallery $149,435.00 $35.75 Base Rent Shop Space $57,320.00 $40.00 Base Rent Mhospitality $144,559.00 $37.00 Reimbursed CAM $26,180.00 $2.75 Reimbursed Insurance $9,520.00 $1.00 Reimbursed Real Estate Taxes $42,840.00 $4.50 Effective Gross Income $429,854.00 $45.15 CAM $26,180.00 $2.75 Insurance $9,520.00 $1.00 Real Estate Taxes $42,840.00 $4.50 Total Expenses $78,540.00 $8.25 Effective Gross Income $429,854.00 $45.15 Total Expenses $78,540.00 $8.25 $351,314.00 $36.90
RENT ROLL Tenant Name Burrito Gallery Shop Space MHospitality SQUARE FEET 4,180 1,433 3,907 LEASE TERM RENTAL RATES EXPENSES BEGIN END TERM RENTAL RATE PSF ANNUALLY MONTHLY CAM/INSURANCE/RE TAXES TBD 10 Year Term Year 1 Years 2-10 Options: Period 1 Period 2 Years 11-15 Years 16-20 TBD 10 Year Term Years 1-5 Years 6-10 Options: Period 1 Period 2 Years 11-15 Years 16-20 TBD 10 Year Term Year 1 Years 2-10 Options: Period 1 Year 11 Years 12-15 Period 2 Year 16 Years 17-20 $35.75 $149,435.00 Annual 2% Increases Fair Market Rent Fair Market Rent $40.00 $57,320.00 $44.00 $63,052.00 $48.40 $69,357.20 $53.24 $76,292.92 $37.00 $144,559.00 Annual 2.25% Increases $46.22 $180,581.54 Annual 2.25% Increases $51.66 $201,835.62 Annual 2.25% Increases $12,452.92 Full Pro-Rata $4,776.67 Full Pro-Rata $5,254.33 $5,779.77 $6,357.74 $12,046.58 Full Pro-Rata $15,048.46 $16,819.64 TOTAL: 9,520 Year 1 $36.90 $351,314.00 $29,276.17
TENANT INFORMATION PROPERTY INFORMATION Tenant: Burrito Gallery Leased Area: 4,180 Lease Commencement: TBD - Projected 1st Qtr. 2019 Lease Expiration: 10 years after Commencement Initial Lease Term: 10 years Options: Two (2) five (5) year options Lease Type: NNN Guaranty: 7 Year Personal Guaranty Rent Increases: 2% Annual Increases RENT SCHEDULE Lease Years: Annual Rent: 1 $149,435 2-10 Annual 2% increases 11-15 (Option Period 1) TBD 16-20 (Option Period 2) TBD PROPERTY INFORMATION Tenant: Shop Space Leased Area: 1,433 Lease Commencement: TBD - Projected 1st Qtr. 2019 Lease Expiration: 10 years after Commencement Initial Lease Term: 10 years Options: Two (2) five (5) year options Lease Type: NNN Guarantor: Personal Rent Increases: 10% Increases every five years RENT SCHEDULE Lease Years: Annual Rent: 1-5 $57,320 6-10 $63,052 11-15 (Option Period 1) $69,357 16-20 (Option Period 2) $76,293
TENANT INFORMATION PROPERTY INFORMATION Tenant: MHospitality Leased Area: 3,907 Lease Commencement: TBD - Projected 1st Qtr. 2019 Lease Expiration: 10 years after Commencement Initial Lease Term: 10 years Options: Two (2) five (5) year options Lease Type: NNN Guarantor: 5 Year Personal Guaranty Rent Increases: 2.25% Annual Increases RENT SCHEDULE Lease Years: Annual Rent: 1 $144,559 2-10 Annual 2.25% increases 11 (Option Period 1) $180,582 12-15 (Option Period 1) Annual 2.25% increases 16 (Option Period 2) $201,836 17-20 (Option Period 2) Annual 2.25% increases
DEMOGRAPHICS POPULATION 1 MILE 3 MILE 5 MILE 2000 Population 1,242 34,164 122,856 2010 Population 4,350 56,273 153,714 2017 Population 4,918 63,613 170,811 2022 Population 5,496 68,500 182,645 2000-2010 Annual Rate 13.35% 5.12% 2.27% 2010-2017 Annual Rate 1.71% 1.71% 1.47% 2017-2022 Annual Rate 2.25% 1.49% 1.35% 2017 Male Population 48.2% 48.1% 48.4% 2017 Female Population 51.8% 51.9% 51.6% 2017 Median Age 35.0 32.1 34.6 DAYTIME POPULATION 1 MILE 3 MILE 5 MILE 2017 Population 10,911 61,677 137,513 HOUSEHOLDS 1 MILE 3 MILE 5 MILE MEDIAN HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE 2017 Median Household Income $69,684 $55,620 $54,304 2022 Median Household Income $82,883 $65,306 $61,819 2017-2022 Annual Rate 3.53% 3.26% 2.63% AVERAGE HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE 2017 Average Household Income $98,516 $78,176 $74,874 2022 Average Household Income $116,381 $92,449 $86,705 2017-2022 Annual Rate 3.39% 3.41% 2.98% HOUSING 1 MILE 3 MILE 5 MILE 2000 Total Housing Units 527 16,415 54,340 2010 Total Housing Units 2,376 28,282 72,379 2017 Total Housing Units 2,487 30,343 77,598 2022 Total Housing Units 2,711 32,061 81,938 2000 Households 483 15,107 50,718 2010 Households 2,097 25,320 64,490 2017 Total Households 2,448 28,601 71,183 2022 Total Households 2,725 30,831 75,998 2000-2010 Annual Rate 15.82% 5.30% 2.43% 2017-2022 Annual Rate 2.17% 1.51% 1.32%