, Florida OFFERING SUMMARY
Executive Summary Holliday Fenoglio Fowler, L.P. ( HFF ) is pleased to exclusively offer the PROPERTY OVERVIEW opportunity to acquire 400 Royal Palm Way, a 4-story boutique office BUILDING ADDRESS building located on the prestigious Bankers Row in, Florida. YEAR BUILT The Property is well positioned for strong revenue increases with existing NET RENTABLE AREA in-place rental rates that are as much as 15% below market and vacant OCCUPANCY spaces available for lease up, offering investors a unique opportunity to STORIES 4 stories purchase an asset in a core location with exceptional upside potential. PARKING 75 parking spaces (2.71 spaces per 1,000 SF) 2 400 Royal Palm Way,, Florida 33480 1966 / Renovated in 2014 27,628 SF 62%
Offering Highlights PRESTIGIOUS LOCATION ON BANKERS ROW IN PALM BEACH - PRESENTLY LONG-TERM TENANCY WITH UPSIDE THROUGH LEASE-UP - NNN BASIS KNOWN AS HOME OF THE WINTER WHITE HOUSE The Property signed a new 10-year lease with The Corcoran Group, a highly recognized real estate brokerage firm with over 1,900 agents and 25 offices located in New York and Florida. The Property is currently 62% leased, presenting a significant upside opportunity for a new owner to lease up the vacant space while having stable in-place income from high-quality tenants. Additionally, the Property is comprised of triple net leases, which provide for a full pass through of operating expenses, real estate taxes and depreciation and amortization of select capital improvements, significantly limiting the risk of expense recovery slippage. The Town of is one of the wealthiest areas in the world and home to Mar-a-Lago, the President s Winter White House, and the world famous Worth Avenue high-street retail. The Property is situated on the highly coveted Royal Palm Way between Atlantic Ocean and the Intracoastal Waterway and less than one mile from Downtown West. The Royal Palm Way corridor, commonly called Bankers Row, has attracted dozens of top wealth management companies, banks, private equity funds and other tenants to this global high-net-worth hub. MAJOR TENANTS Industry The Corcoran Group Leased SF % of RBA Real Estate 4,473 16.2% Media 2,446 8.9% Title Company 2,220 8.0% Vatera Holdings Financial Services 2,041 7.4% Harvey Capital Management Financial Services 2,013 7.3% 13,193 47.8% Daily News Beau Title TOTAL MAJOR TENANTS 3
Offering Highlights RECENTLY RENOVATED OFFICE BUILDING The Property was recently remodeled in 2014 and has been institutionally maintained. The extensive renovations include the building lobbies, common area corridors, restrooms and elevator cabs. STRONG OFFICE MARKET FUNDAMENTALS The office market has consistently outperformed the other submarkets in County and South Florida. Over the past 3 years, Palm Beach has experienced an increase in occupancy and an 11% increase in rental rates. With no new construction planned, the market is poised for continued occupancy and rent growth far exceeding current average rental rates of $62.49 per square foot gross for office space. The continued tightening of the market will allow a new owner to capitalize on this forthcoming rental rate growth and increase in-place rents, which are currently as much as 15% below market, as available space decreases and demand for office space increases in the submarket. 4
ONE OF THE MOST AFFLUENT CITIES IN THE WORLD Known for its beauty, quality of life and small-town character, has approximately 8,000 year-round residents and about 20,000 more seasonal residents. With a median home value of over $5,000,000 and waterfront residences along Billionaire s Row that can command upwards of $95 million, features extensive executive and luxury housing. Residents of are highly educated, as over 59% of the population has a bachelor s degree or higher. Additionally the town boasts some of the highest-earning households in the country, with an average household income for 2017 of approximately $183,498, more than double that of County. OUTSTANDING LOCATION AND ACCESSIBILITY 10 231 Tallahassee 84 10 Jacksonville Mangonia Lake 5 The Property is less than a mile from West CBD, just across the Intracoastal Waterway, providing tenants easy access to the major business center. The Property is also within five miles from International Airport, Florida s Turnpike, Interstate 95, Okeechobee Boulevard (State Road 704), Southern Boulevard (U.S. Highway 98) and U.S. Highway 1, which are among the major thoroughfares in County and Florida. doah Rd rvillage Blvd Panama City Bear Lakes Country Club 98 GULF OF MEXICO Bear Lakes Country Club 19 Congress Ave 75 St. Petersburg FLORIDA Mall Tampa 75 Orlando 4 17 Ft. Meyers 95 Naples President Country Club 27 Key West Daytona Beach 75 41 Melbourne 95 1 Marathon Vero Beach Stuart Ft. Lauderdale Miami ATLANTIC OCEAN N AJ Gaines Park Australian Ave Australian Ave 25th St Lakes Blvd N Flagler Dr Currie Park Lake Worth Sunset Ave UNENCUMBERED BY EXISTING DEBT The Property is being offered on a free and clear basis, which allows an investor to take advantage of today s strong lending markets to generate significant levered returns. HFF s debt professionals have sourced attractive debt options and are available for discussion with interested parties. Please call Maxx Carney in HFF s Miami office, at 305-448-1333 for further information on current debt alternatives. 704 Lakes Blvd West Congress Ave Okeechobee Boulevard 95 Clear Lake Amtrak West Palm Beach 704A Tamarind Ave Banyan Blvd United States District Court Brightline West Station Howard Park City Place Performing Arts Center 704 Convention Center Woodland Cemetery N Dixie Hwy S Flager Dr Breakers Ocean Golf Course Breakers Resort A1A Town of Royal Palm Way Town Hall Everglades Golf Course S Ocean Blvd A1A 5 1 Belvedere Rd International Airport Parker Ave 5
SALE PROCESS Offering Format and Timeline The Property is offered on an as-is, where-is basis only to select investors registered through an executed confidentiality agreement. Offer date will be announced in due course. Preference will be given to those offers that reflect the most comprehensive underwriting and the fewest or no due diligence requirements or other conditions to close. Investors should be prepared to disclose their sources of funds and any approval processes necessary to close the transaction. While the individual properties are being offered as a Property, offers on individual buildings will be considered. Due Diligence Upon execution of the confidentiality agreement, investors will be given access to an online document center with detailed property information. The purpose of this is to facilitate due diligence and depth of underwriting. All inquiries and requests for information should be directed to HFF s marketing team for this assignment: MIAMI OFFICE 1450 Brickell Avenue Suite 2950 Miami, FL 33131 T. 305.448.1333 hfflp.com HERMEN RODRIGUEZ Senior Managing Director hrodriguez@hfflp.com (305) 448-5332 INVESTMENT SALES TEAM IKE OJALA Senior Director iojala@hfflp.com (305) 774-6810 TRACEY GOO Director tgoo@hfflp.com (305) 421-6548 CHRISTINA KONG Associate ckong@hfflp.com (305) 913-5546 KENNY CUTLER Analyst kcutler@hfflp.com (305) 421-6556 DEBT TEAM MAXX CARNEY Director mcarney@hfflp.com (305) 913-5553 Holliday Fenoglio Fowler, L.P. a Florida licensed real estate broker. HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. 2017 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.