OFFERING MEMORANDUM TEMPLE TERRACE FLORIDA
2 INVESTMENT OVERVIEW INVESTMENT OVERVIEW Marcus & Millichap is pleased to present this Bank of America retail condominium in Temple Terrace, Florida, 10 miles north of downtown Tampa. Bank of America has been operating at this location since 2008 on an original 10-year triple-net (NNN) lease. In April 2017, the tenant demonstrated their commitment by exercising a 10-year extension with 2 percent annual rent increases. The lease is corporately guaranteed by Bank of America, National Association (NA); the number two bank by total assets in the United States ($2.25 Trillion 2016). The subject property is situated along North 56th Street, a heavily trafficked corridor with more than 35,000 vehicles per day (VPD). This Bank of America has the highest deposits in the 33617-zip code, boasting more than $180 million. From 2016 to 2017, deposits increased more than 7 percent. Bank of America also benefits from being in a dense trade area. There is more than 500,000 square feet of retail within one mile. Less than two miles west of this asset is Busch Gardens, one of the most visited theme parks in the United States with more than 4 million annual visitors. The University of South Florida is located two miles north, the fifth largest university in state with more than 47,000 students. Bank of America benefits from strong demographics. There are more than 16,000 residents within one mile. Temple Terrace experienced a 9 percent population increase from 2010 to 2017. Additional retailers in the immediate vicinity include: TD Bank, Winn-Dixie, United States Postal Service, Subway, Firehouse Grill, Checkers, Dunkin Donuts, CVS, Kmart, AutoZone, CVS, Pizza Hut, and many more.
3 INVESTMENT OVERVIEW Bank of America Retail Condominium With More Than $180 Million in Deposits in Temple Terrace, Florida Tampa Metropolitan Statistical Area (MSA) Income Tax Free State Tenant Exercised 10-Year Extension With 2 Percent Annual Rent Increases in April 2017 Operating at This Location Since 2008 on an Original 10-Year Triple-Net (NNN) Lease Bank of America, National Association (NA) Guaranty New York Stock Exchange (NYSE): BAC Standard and Poor (S&P): A+ Number Two Bank by Total Assets in United States ($2.25 Trillion in 2016) Asset is Equipped With a Five Lane Drive-Thru and Walkup Automated Teller Machine (ATM) More Than $180 Million in Deposits (June 2017) 7 Percent Increase from 2016 Ideally Located Along North 56th Street More Than 35,000 Vehicles Per Day (VPD) Strong Demographics More than 16,000 Residents Within One Mile 9 Percent Growth from 2010 to 2017 Dense Trade Area More Than 500,000 Square Feet of Retail Within One Mile National Credit Anchors Include: Publix and Save-A-Lot Less Than Two Miles From Busch Gardens The 11th Most Visited Theme Park in the United States 4.2 Million Visitors Annually Nearby the University of South Florida More Than 47,000 Students
4 FINANCIAL OVERVIEW FINANCIAL OVERVIEW 9385 NORTH 56TH STREET TEMPLE TERRACE, FLORIDA 33617 PRICE $6,228,750 CAP RATE 6.00% NOI $373,725 PRICE PER SQUARE FOOT $458.33 RENT PER SQUARE FOOT $27.50 YEAR BUILT 1960/2010 APPROXIMATE LOT SIZE 1.86 Acres *OFFERING GROSS LEASEABLE AREA 13,590 TYPE OF OWNERSHIP Fee Simple LEASE GUARANTOR Bank of America, North America (N.A.) *OFFERING LEASE TYPE ROOF AND STRUCTURE Triple-Net (NNN)* Retail Condo Association Responsible *Subject to Declaration of Condominium of Temple Terrace Office Complex
5 LEASE SUMMARY LEASE SUMMARY LEASE COMMENCEMENT DATE 5/15/2008 LEASE EXPIRATION DATE 5/14/2028 ANNUALIZED OPERATING DATA BASE RENT ANNUAL RENT MONTHLY RENT INCREASES LEASE TERM TERM REMAINING INCREASES OPTIONS TO RENEW 10 Years 10+ Years 2% Annually 4, 5-Year 5/15/2018 5/14/2019 $373,725 $31,144 5/15/2019 5/14/2020 $381,200 $31,767 2% 5/15/2020 5/14/2021 $388,823 $32,402 2% 5/15/2021 5/14/2022 $396,600 $33,050 2% 5/15/2022 5/14/2023 $404,532 $33,711 2% 5/15/2023 5/14/2024 $412,623 $34,385 2% 5/15/2024 5/14/2025 $420,875 $35,073 2% 5/15/2025 5/14/2026 $429,293 $35,774 2% 5/15/2026 5/14/2027 $437,878 $36,490 2% 5/15/2027 5/14/2028 $446,636 $37,220 2%
6 TENANT OVERVIEW TENANT OVERVIEW - BANK OF AMERICA Bank of America Corporation is an American multinational banking and financial services corporation headquartered in Charlotte, North Carolina. It is the secondlargest bank holding company in the United States by assets. Bank of America has a relationship with 99 percent of the United States Fortune 500 companies and 83 percent of the Fortune Global 500. The company is a member of the Federal Deposit Insurance Corporation (FDIC) and a component of both the Standard and Poor (S&P) 500 Index and the Dow Jones Industrial Average. Bank of America services clients in over 150 countries with operations based in 40 countries. It provides services ranging from investment and corporate banking to investing and equity execution services. In the United States, Bank of America serves over 57 million customers and small businesses, operates around 4,700 retail banking offices and approximately 17,250 ATMs. It also has 30 million active users of their online banking. TENANT PROFILE TENANT TRADE NAME OWNERSHIP TENANT Bank of America Corporation Public Corporate Store LEASE GUARANTOR Corporate Guaranty NUMBER OF LOCATIONS 4,700 HEADQUARTERED Charlotte, North Carolina WEB SITE www.bankofamerica.com REVENUE $83.7 Billion (2016) NET WORTH $231.9 Billion (2016) STOCK SYMBOL BAC CREDIT RATING A RANK #26 in Fortune 500 (June 2016)
7 568 597 41 275 DEMOGRAPHICS 301 589 DEMOGRAPHICS Greater Northdale 5 MILE RADIUS 75 us Park 597 Lake Magdalene 41 University 3 MILE RADIUS 301 89 Greater Carrollwood 275 582 1 MILE SITE Thonotosassa N try 589 580 Egypt Lake-Leto 41 580 Del Rio Temple Terrace 301 75 579 92 4 580 Tampa International Airport 92 92 585 275 41 East Lake-Orient Park 4 4 574 Mango Seffner 574 Dover 275 301 60 1-Mile 3-Mile 5-Mile Tampa 1-Mile 3-Mile 5-Mile 60 60 POPULATION HOUSEHOLDS 275 41 2000 Population 15,440 82,850 207,826 2000 Households 6,417 32,554 82,514 2010 Population 15,560 90,231 223,346 2010 Households 6,481 34,819 87,227 2017 Population 16,973 97,412 244,288 2017 Households 6,989 37,384 94,612 2022 Population 18,229 104,269 262,295 2022 Households 7,493 40,046 101,512 75 1-Mile 3-Mile 5-Mile Valrico HOUSEHOLD Brandon (HH) INCOMES 2017 Average HH 60 Income $48,694 $49,156 $46,356 2017 Median HH Income $34,148 $36,543 $33,012 2017 Per Capita Income $20,051 $18,865 $17,954 Syd
8 TEMPLE TERRACE, FLORIDA ABOUT TEMPLE TERRACE The City of Temple Terrace is one of the Tampa Bay s premier communities and is strategically located near the University of South Florida, Florida College, Telecom Park, Busch Gardens and Interstate-75. Dubbed the Amazing City, the municipality is nestled among the grand oaks and towering pines along the banks of the majestic Hillsborough River. The City provides its residents with a high quality of life and easy access to the Tampa Bay region and all its world class amenities. Throughout the past several decades, surrounding areas have become increasingly more developed, resulting in a much more competitive environment for recruiting new businesses, attracting families and building upon existing amenities and services vital for the city to prosper and grow. Temple Terrace now finds itself at a critical juncture in its history. To maintain a competitive edge, the city has embarked upon an ambitious mixed-use, walkable downtown redevelopment project, as well as pursuing other initiatives to promote and market their community. These initiatives are designed to inspire a renewed energy for rejuvenation and to promote Temple Terrace as a forwardthinking city that offers a quality of life second to none in the region. The City of Tampa is the economic hub of west central Florida. Its economy is founded on a diverse base that includes tourism, health care, finance, insurance, technology, construction, and maritime industry. The City of Tampa works in partnership with many local, regional, and statewide organizations to promote job creation and a healthy economy. Among these are the Tampa Hillsborough Economic Development Corporation, the Tampa Bay Partnership and Tampa Bay & Company.
MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
TEMPLE TERRACE FLORIDA 9385 NORTH 56TH STREET TEMPLE TERRACE, FLORIDA 33617 BROKER OF RECORD: RYAN NEE MARCUS & MILLICHAP FLORIDA LICENSE: BK3154667