THE SUMMIT AT * SOUTHPOINT Extraordinary Investment Opportunity! OFFERING MEMORANDA Jacksonville, Florida Represented Exclusively by: 1
The Opportunity Project Name Asking Price Major Tenants Address Summit at Southpoint $35,250,000 or $135/SF US Bank / FSV, Keiser University 6410,6420, 6430, 6440 Southpoint Parkway Stabilized Institutional Quality Suburban Office With Upside The Summit at Southpoint is a premier office project located in Jacksonville's highly successful Southside Office Market, the first choice for both corporate and private businesses locating in Jacksonville. The Offering consists of four, contemporary, three story, office buildings providing dramatic lake views, as well as exposure to I- 95. The location is at the northeast quadrant of the high profile Butler Boulevard I-95 interchange. A high quality asset with stable returns, the Summit at Southpoint is home to a solid existing tenant base with no first year roll and no A/R concerns. City, State, Zip Jacksonville, FL 32216 Year Built 1988 / 1991 /1998 Rentable Area 260,664 SF Total Land Area 23.4 Acres Occupancy 91.2% Stories 3 floors Floorplates 21,000 SF to 25,600 SF Parking 4.8 / 1,000 SF In-Place NOI $2,489,,428 Tenancy at the Summit at Southpoint is diversified and includes both mid size and large tenants including quality firms such as US Bank/FSV, BB&T and Keiser University. Proforma NOI Year 1 $2,625,955 Stabilized NOI Year 2 $2,829,777 The Opportunity provides excellent existing tenant cash flow stability with the opportunity to spike returns through lease up of vacant space in a Landlord s market that s experiencing a scarcity of competing available vacant space in conjunction with intense tenant demand leading to rising rents. Rent Upside Highly Stable Cash Flow Institutional Quality Yes Yes Yes 2 Minimal THE Lease SUMMIT Rollover AT SOUTHPOINT Yes
St Johns River I-95 THE SUMMIT AT * SOUTHPOINT Looking West
Key Investment Highlights Institutional Quality Suburban Office Certainty of Cash Flow Long term credit leases in industries stable or upward trending, providing investors predictable returns. The Summit at Southpoint is the premier office project in the prestigious Southside market with I-95 exposure. Stable Cash Flow Minimal Rollover Risk No rollover during year one, 45% of the Property leased for five years, or more, of projection, with 26% leased for 10 years. Investment Grade Tenancy 29% BB&T, US Bank, Chicago Title and SP Fiber are Investment Grade tenants, representing 29% of the Property s tenancy. Credit Tenancy Windstream rated B+ / B1. Strong Major Tenant Financials Keiser University exceptionally strong financials, represents 26% of NRA / 10 YR Lease. Healthy Landlord s Office Market Continuing to improve, with scarcity of large blocks of office space, intense demand and rising rents. 4
Key Investment Highlights Competitive Advantages Market Share Leader Summit at Southpoint consistently commands superior market share, which is highly attractive to both large corporate users and smaller private tenants. THE SUMMIT A T * S O U T H P O I N T J Turner Butler Blvd Exit Well Leased..Upside Potential 92% Leased expect 100% occupancy to be achieved as the remaining highly competitive space is best in the project. Combined with strong tenant demand in a tight Landlord s market, the result is a rapid lease up of this prime vacant space. Excellent Market Presence Prominent Location high degree of market presence and ease of accessibility at the J. Turner Butler / I-95 Quadrant. I-95 Signage Opportunities Draw Tenants I-95 exposure signage opportunities attracts large tenants. I-95 Amenities Attract & Retain Tenants Lake frontage, gym, recreational gazebo. On St. Vincent's Hospital Power Grid first to regain power important to many tenants leasing at Summit. Efficient to Operate & Analyze Only 12 Tenants. 5
A Southside Office Icon THE SUMMIT AT * SOUTHPOINT LOOKING EAST
I-95 CLICK HERE FOR VIRTUAL TOUR
Security Credit Certainty The Cash Flow Stable Cash Flow for Owner Upside by Leasing 8.8% Vacancy in a Landlord's market No rollover during 2016. Only 8.1% rollover during 2017. 45% of cash flow committed through 9/2021, or greater 5.5 years. 66% of cash flow committed through May of 2020. 26% of cash flow secured by Keiser University for 10 Years (2026). Exceptional Financials. Investment Grade Tenancy 29% (74,981 SF) of Asset: US Bank rated A+(S&P) and A2 (Moody s), BB&T rated A- (S&P) & A2 (Moody s). SP Fiber and Chicago Title are rated BBB (S&P) and Baa3 (Moody s). Windstream rated B+ (S&P) and B1 (Moody s). US Bank/FSV and Keiser continue to expand and renew space, as recently as 2016, and are both growing businesses committed to the Summit at Southpoint for the long term. Windstream renewed in 2016. CASH FLOW STABILITY Stability- Expirations Analysis Tenants Expiration Size SF Share % Windstream 9/30/2021 8,975 3.44% US Bank 12/31/2021 40,197 15.42% Keiser University 7/31/2026 67,799 26.01% 5 Years or Longer Committed CF 116,971 44.87% Ocenture 5/31/2020 25,617 9.83% BB&T 10/1/2020 21,472 8.24% Chicago Title 12/31/2020 7,749 2.97% 4 Years or Longer Committed CF 171,809 65.91% 8
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Prime Location PRESTIGIOUS SOUTHSIDE OFFICE MARKET: The strong demographics and quality housing are at the center of Jacksonville s dominant population growth. Tenants tend to locate their offices close to the homes of their executives and employees, key factors to the Summit at Southpoint's success. 10 Excellent accessibility due to location between both the J. Turner Butler I-95 Interchange and Bowden Road I-95 Exit. Convenient I-95 access, allows easy commutes to nearby executive housing and all regions of Jacksonville, providing an expanded trade area to recruit employees. Office tenants are attracted to the neighborhood s rich amenity base with numerous surrounding restaurants bakeries and cafés in the immediate area of the Summit at Southpoint. Concentration of hotels in the immediate area. Central location to employment base draws from Jacksonville as well as the growing St Johns County residential base to the south.
I-95 Expressway Access Minutes to Downtown Jacksonville s housing & amenities. Signage Opportunities from prominent I-95 exposure for tenants desiring market presence. In addition to surrounding Jax, also minutes to St. Johns County s employment base to South via I-95. Bowden Rd. Exit DOWNTOWN JACKSONVILLE THE SUMMIT A T * S O U T H P O I N T Straight shot to International Airport via I-95. I-95 I-95 connects with East/West arterials linking the Property conveniently to all residential communities of Southside and the Beaches. 11
Landlord's Market Scarcity of Large Blocks of Vacancy While Demand is Intense. Southside Office Market Expect Meaningful Rent Growth Southside / San Marco Vacancy: 9.8% Overall 5.8% Class A Jacksonville is a great environment for business. Summit at Southpoint enjoys a prominent location within the Southside Office Market, the premier suburban address in Jacksonville. Large tenants target the Southside Office Market. Scarcity of large blocks of vacancy to satisfy demand from large tenants. Summit at Southpoint's 8.8% vacancy is its most desirable space. Rapidly lease at increasing rents, creating immediate value enhancement. VACANT SPACES Tenant Suite Square Feet Vacant S2-310 10,474 Vacant S2-120 5,099 Vacant S4-100/A 3,195 Vacant S4-190 1,849 Vacant S2-130 1,849 Vacant S4-210A 576 Total 23,042 Demonstrated Relative Value Attracts Major Tenants The Southside market has shifted to a Landlord's market. Job growth accelerated. Jacksonville is a Regional Office Hub. High quality lifestyle/low cost of living attracts new tenants from outside the market. Diverse/young dynamic workforce. Northeast Florida has emerged as an aggressive competitor winning new tenants over other major Florida Metros. Many prestigious companies routinely choose to enter the Jacksonville market or expand their current operations over other Florida Metros. 12
St Johns River J Turner Butler Blvd Exit I-95 THE SUMMIT AT * SOUTHPOINT Facing West
Jacksonville Highlights Jacksonville Attracts Business City is ranked #2 for Tech Job Growth by Forbes Magazine #16 Best Place to Live in the South by U.S. News and World Report (3/2016) JAX is a Top 15 Metro Area Attracting Millennials by NewGeography Top 10 City Attracting College Grads 5th Top Southern City for Jobs Right Now Zip Recruiter Hiring Demand Index (4/2015) #3 Digital City in the U.S. by Center for Digital Government (11/2014 #15 of the Top 20 Fastest Growing Metro Areas by United States Census Bureau (4/2014) 3rd Best Airport in Service Quality for North America by Forbes (4/2014) by Airports Council International (2/2015) 3 Fortune 500 Companies CSX, FNF and FIS are headquartered here. 14
Jacksonville Highlights Tenant Demand Generators 2015 Best (Large-Sized) Cities for Job Growth (New Geography) Jax commute time is significantly less than any other major city Jacksonville - The largest city in land area in the contiguous U.S. - 841 square miles Florida Dominates Ranking of America's Most Investable Housing Markets in 2016 #2 City with the Most Vibrant Employment Scene 760,000+ Working Age Adults Our region has a population that is ready to work Florida's most populous city - as well as its leading financial and insurance center Jacksonville ranked among the 20 best markets (FORBES, Feb 2016) Jacksonville ranked 2nd in Nation for Favorable Small Business Sentiment (Thumbtack.com 2015) by Forbes Magazine 15
Investment Contact INVESTMENT SALE CONTACT John F. Bell Managing Director D: 305.808.7820 M: 305.798.7438 John.Bell@transwestern.com 100 SE 2 nd Street Suite 3100 Miami, Florida, 33131 Disclaimer: The information contained in this Offering Memorandum has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verifi ed it and make no guaranty, warranty or representation about it. It is the responsibility of each prospective purchaser to independently verify its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example purposes only and do not represent the current or future performance of the property. Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the value and condition of the property, the information contained in the Offering Memorandum, and advisability of purchasing the property. This Offering Memorandum may be rescinded or altered and the property may be sold, leased or withdrawn from the market without notice. Brokers are not authorized to make any representations or agreements on behalf of the property owner or bind the property owner to any agreement for sale of the property. Summit Consistently Commands Superior Market Share. St Johns River I-95 16