OFFERING 11253 PINES BOULEVARD PEMBROKE PINES, FL ASKING PRICE $4,410,686 CAP RATE: 5.25% Representative photos
TENANT PROFILES 03 TENANT PROFILES PROPERTY OVERVIEW Representative photo 04 PROPERTY OVERVIEW 05 LEASE ABSTRACT: Starbucks 06 LEASE ABSTRACT: Pie Five Pizza 07 AREA MAP 08 AERIALS 11 SITE PLANS 13 RENDERING Contact Michael Zimmerman Atlantic Retail Investment Services 600 Market St., Suite 300 Chapel Hill, NC 27516 919.391.9901 mzimmerman@atlanticretail.com investmentservices.atlanticretail.com MARKET OVERVIEW 14 PEMBROKE PINES MARKET OVERVIEW 15 DEMOGRAPHICS 16 TERMS OF PRESENTATION CONFIDENTIALITY & DISCLAIMER
TENANT PROFILES Starbucks began in 1971 in Seattle as a roaster and retailer of whole bean and ground coffee, tea and spices. Today, Starbucks connects with millions of customers every day with exceptional products and more than 24,000 retail stores in 70 countries. Starbucks has always believed in the importance of building a great, enduring company that strikes a balance between profitability and a social conscience with a focus on high quality, ethical sourcing, environmantal stewardship and community involvement. Their mission: to inspire and nurture the human spirit one person, one cup and one neighborhood at a time. Starbucks offers a range of products that customers enjoy in stores, at home and on the go, including over 30 blends and single-origin premium coffees, handcrafted beverages, merchandise and fresh food, as well as ready-to-drink and coffee and tea consumer products. The brand portfolio has expanded to include Starbucks Coffee, Seattle s Best Coffee, Teavana, Tazo, Evolution Fresh, La Boulange and Torrefazione Italia Coffee. Pie Five Pizza is the leading brand in the rapidly growing fast-casual pizza space, offering individual handcrafted pizzas made to order with fresh ingredients in less than five minutes. Since opening their first location in Fort Worth, TX in 2011, Pie Five has grown to 98 locations in 24 states and the District of Columbia and has more than 400 announced franchised and company units under contract. Pie Five has been named 2015 "Best Franchise Deal" by QSR magazine, a 2013 Top 50 Restaurant Brand of the Year, a 2012 Hot Concepts winner by Nation s Restaurant News and one of the 10 Hot New Restaurant Chains from Established Brands by Forbes.com. Parent company Dallas-based RAVE Restaurant Group [NASDAQ: RAVE] owns, operates and franchises more than 300 Pie Five and Pizza Inn restaurants domestically and internationally. Representative photo 3
PROPERTY OVERVIEW PROPERTY HIGHLIGHTS: STRATEGICALLY POSITIONED New construction (commencing April 2017) located at shopping center entrance near the signalized intersection of busy Pines Blvd. & Hiatus Rd. (75K ADT combined). Outparcel to Target, HomeGoods & Pembroke Lakes Mall (1M+ SF GLA; super-regional mall with 125 national retailers & restaurants); adjacent to Home Depot-anchored Pembroke Lakes Square. Less than 1 mile from upcoming Pembroke Pines City Center development (350K SF lifestyle center), and less than 3 miles from I-75. STRONG, RECOGNIZED TENANTS Starbucks has a prominent global presence with 24K+ retail stores in 70 countries. Pie Five Pizza has 98 locations in 24 states (& 400 more under contract) & has been named a "2015 Best Franchise Deal" by QSR Magazine. Experienced franchisee with multiple McDonald's locations. QUALITY INVESTMENT 100% occupied to tenants on new, 10-year leases with built-in rent increases & options. Minimal landlord responsibilities. No state income tax in Florida provides a low tax burden for the investor. LARGE, AFFLUENT TRADE AREA Over 131,000 households & 390,000 people, with an average household income of $77K+, within 5 miles of the property. As the 10 th most populous city in Florida, the Pembroke Pines trade area benefits from nearly 1M people with significant disposable income. EXCELLENT MARKET LOCATION Pembroke Pines, located between Ft. Lauderdale & Miami, is a principal city of the Miami MSA (6M+ people as of 2015; FL s largest MSA). Its convenient location offers easy accessibility to primary highways and interstates, key employment centers, retail/commercial destinations & more. 11253 PINES BOULEVARD PEMBROKE PINES, FL 33026 PURCHASE PRICE: $4,410,686 CAP RATE: 5.25% Tenants Starbucks, Pie Five Pizza Co. Address 11253 Pines Boulevard Market Pembroke Pines, FL (Broward County; Miami MSA) Sale Price $4,410,686 CAP Rate 5.25% NOI $231,561 Occupancy 100% Year Built 2017 Rentable SF 4,500 square feet Land Size 0.95 acres Lease Type NN Expenses Roof, Structure & Parking Lot Additional Rent RENT SCHEDULE Tenants pay pro-rata shares (based on the building's actual GLA) of CAM, Management Fees, RE Taxes & Insurance Tenant Starbucks Corporation DP5 Investments, LLC d/b/a Pie Five Pizza SF 2,223 sf 2,277 sf Share SF 49.4% 50.6% Commencement December 2017 (est.) December 2017 (est.) Lease Term Ten (10) Years Ten (10) Years NOI $122,265 ($55.00/sf) $109,296 ($48.00/sf) Increases 10% every Five (5) Years 10% every Five (5) Years Options Four (4), Five (5) Years Two (2), Five (5) Years 4
STARBUCKS LEASE ABSTRACT Tenant Starbucks Corporation Stock Symbol NASDAQ: SBUX Credit Rating S&P: A- Website www.starbucks.com Rentable SF 2,223 sf (49.4% of building) Rent Commencement December 2017 (est.) Lease Term Ten (10) Years Expiration December 2027 (est.) Options Four (4), Five (5) Years Increases 10% every Five (5) Years RENT INCREASES Years 1 5 Years 6 10 $122,265 ($55.00/sf) $134,492 ($60.50/sf) Option 1 Years 11 15 $147,941 ($66.55/sf) Option 2 Years 16 20 $162,735 ($73.20/sf) Option 3 Years 21 25 $179,008 ($80.53/sf) Representative photo ADDITIONAL RENT Common Area $8,759 Maintenance ($3.94/sf) Real Estate $18,962 Taxes ($8.53/sf) Insurance $2,223 ($1.00/sf) Management $1,489 Fee (5%) ($0.67/sf) Additional Rent Early Termination Tenant shall pay its pro rata share (based upon the actual gross leasable area of the Building) of Operating Expenses (including CAM), Management Fee, RE Taxes & Insurance. The portion of Tenant's Annual Additional Rent attributable to controllable Operating Expenses for any calendar year following the first full calendar year of the Term shall not exceed 105%, on a non-cumulative basis, of Tenant's Annual Additional Rent attributable to Operating Expenses payable by Tenant for the previous calendar year. Tenant, in its sole discretion, shall have the right to terminate this Lease as of any date on or after the last day of the 60 th full calendar month of the Term (the "Early Termination Date"). Tenant must give Landlord written notice no less than 120 days before the Early Termination Date, and Tenant shall pay Landlord, on or before the Early Termination Date, a termination fee equal to $100,000. Option 4 Years 26 30 $196,909 ($88.58/sf) 5
PIE FIVE PIZZA LEASE ABSTRACT Tenant Guarantor Website Rentable SF Rent Commencement Lease Term Expiration Options Increases Additional Rent DP5 Investments, LLC d/b/a Pie Five Pizza Co. Franchisee (experienced franchisee with multiple McDonald's locations in PA) www.piefivepizza.com 2,277 sf (50.6% of building) December 2017 (est.) Ten (10) Years December 2027 (est.) Two (2), Five (5) Years 10% every Five (5) Years Tenant shall pay its pro rata share (based upon the actual gross leasable area of the Building) of Operating Expenses (including CAM), Management Fee (not to exceed 5%), RE Taxes & Insurance. Representative photos RENT INCREASES Years 1 5 Years 6 10 $109,296 ($48.00/sf) $120,226 ($52.80/sf) Option 1 Years 11 15 $132,249 ($58.08/sf) Option 2 Years 16 20 $145,474 ($63.89/sf) ADDITIONAL RENT Common Area $8,971 Maintenance ($3.94/sf) Real Estate $19,446 Taxes ($8.54/sf) Insurance $2,277 ($1.00/sf) Management $1,526 Fee (5%) ($0.67/sf) 6
AREA MAP FORT LAUDERDALE 7
41,500 ADT 25,500 ADT STARBUCKS & PIE FIVE PIZZA AERIALS PEMBROKE PINES / MIRAMAR FL DEMOGRAPHICS Radius Population Med. HH Income 3 mile 128,736 $ 67,824 5 mile 362,912 $ 67,836 7 mile 646,398 $ 64,665 41,000 ADT Stirling Rd SUPER NW 184th Ave SW 172nd Ave 50,000 ADT 150,000 150,000 ADT ADT 75 Flamingo Rd Hiatus Rd 38,000 ADT 36,000 ADT 39,000 ADT Sheridan St PEMBROKE LAKES MALL Taft St Pine Island Rd 53,000 ADT Taft St 17,000 17,000 ADT ADT 48,000 ADT 65,000 ADT Pines Blvd 68,000 ADT 52,000 ADT 53,000 ADT 52,000 ADT 19,000 ADT COBBLESTONE PLAZA 50,500 ADT PROPOSED CITY CENTER DEVELOPMENT 54,000 ADT NW 160th Ave LIFESTYLE CENTER 399,000 SF Pembroke Rd Palm Ave Palm Ave 16,500 ADT SITE SUPER University Dr Miramar Pkwy 27,500 ADT 45,000 ADT 51,500 ADT Boston Chapel Hill Charlotte Jupiter Pittsburgh atlanticretail.com ATLANTIC RETAIL PROPERTIES 8
Hiatus Road 23,000 ADT STARBUCKS & PIE FIVE PIZZA AERIALS Johnson Street PEMBROKE LAKES MALL (1,135,329 SF GLA; SUPER-REGIONAL; 125 NATIONAL RETAILERS & RESTAURANTS) 11,000 ADT Flamingo Road 41,500 ADT Pines Boulevard 52,000 ADT SITE 9
AERIALS PEMBROKE LAKES MALL (1,135,329 SF GLA; SUPER-REGIONAL; 125 NATIONAL RETAILERS & RESTAURANTS) SITE Pines Boulevard 52,000 ADT Hiatus Road 23,000 ADT 10
SITE PLANS 2 3 2 3 125 W INDIANTOWN RD. SUITE 206 JUPITER, FL 33458 P: 561-203-7503 50 25 12.5 0 50 4950 W. KENNEDY BLVD. SUITE 600 TAMPA, FL 33609 P: 813-379-4100 1"= 50' 1000 CORPORATE DR. SUITE 250 FT. LAUDERDALE, FL 33334 P: 954-202-7000 REVISIONS: 14 1 02/15/2017 SITE PLAN RESUBMISSION NAB not included 2 1 1 NOT FOR CONSTRUCTION PROJECT No.: F150116 DRAWN BY: KB CHECKED BY: NAB DATE: CAD I.D.: F150116 - OVERALL SITE PLAN PROJECT: OUTBUILDING 9 5 FOR TARGET CORPORATION & 8 LG INVESTMENTS, LLC 25 6 BROWARD COUNTY FLORIDA RADICE III 1000 CORPORATE DRIVE, SUITE 250 FORT LAUDERDALE, FL 33334 PH: (954) 202-7000 FX: (954) 202-7070 www.thomasengineeringgroup.com 25 PROFESSIONAL ENGINEER February 16, 2017 FLORIDA LICENSE No. 72006 11 SHEET TITLE: OVERALL SITE PLAN SHEET NUMBER:
SITE PLANS DETAIL 'A' SCALE: 1" - 20' DETAIL 'B' SCALE: 1" - 20' DETAIL 'C' SCALE: 1" - 20' 12
RENDERING Representative photos 13
MARKET OVERVIEW PEMBROKE PINES, FLORIDA As the 10 th most populous city in Florida, the Pembroke Pines trade area benefits from nearly 1 million people with significant disposable income. LARGEST METROPOLITAN AREA IN FLORIDA Pembroke Pines is a city in southwest Broward County, Florida, situated between Fort Lauderdale and Miami. The city had a population of 154,750 at the 2010 census, making it the second most populous city in Broward County and the 10 th most populous in Florida. It is a principal city of the Miami Metropolitan Area (over 6 million inhabitants as of 2015) and serves as a bedroom community for the Greater Miami area, thus contributing to a high level of residential development activity. Pembroke Pines has been named one of the best cities to live in America by Money Magazine in 2014 (the only Florida city on that list), and its convenient location offers easy accessibility to primary highways and interstates, key employment centers, entertainment venues, parks, golf courses, restaurants and retail/commercial destinations. Fort Lauderdale-Hollywood International Airport is less than 20 miles away, which serves 26.9 million passengers. Miami International Airport, serving nearly 41 million passengers in 2015, is within 25 miles. Pembroke Pines is served by major thoroughfare I-75 with nearby access to Florida s Turnpike and I-95. Illustration of upcoming Pembroke Pines City Center development. The Pembroke Pines trade area benefits from nearly 1 million people with significant disposable income. Area attractions include Pembroke Lakes Mall, a super-regional mall with over 1 million square feet of national retail and restaurants, and the upcoming Pembroke Pines City Center a 350,000 square foot lifestyle center scheduled to begin construction in September 2016. Additionally, Sawgrass Mills and The Colonnade Outlets, the largest outlet and value retail shopping destination in the U.S. (with over 2.2 million square feet), are located approximately 12 miles from Pembroke Pines. The Miami Dolphins Sun Life Stadium is less than 8 miles away in nearby Miami Gardens. 14
DEMOGRAPHICS DEMOGRAPHICS OVERVIEW Over 131,000 households and 390,000 people, with an average household income of $77K+, within five miles of the property. Demographics 1 Mile 3 Miles 5 Miles 2016 Estimated Population 21,873 144,331 390,465 2021 Projected Population 23,182 153,965 417,219 2010 Census Population 19,858 132,729 365,788 2000 Census Population 18,162 112,076 309,685 Projected Annual Growth 2016 to 2021 1.2% 1.3% 1.4% Historical Annual Growth 2000 to 2016 1.3% 1.8% 1.6% 2016 Estimated Households 8,637 54,863 131,105 2021 Projected Households 8,976 57,403 137,267 2010 Census Households 8,048 51,485 124,243 2000 Census Households 7,595 44,363 106,882 Projected Annual Growth 2016 to 2021 0.8% 0.9% 0.9% Historical Annual Growth 2000 to 2016 0.9% 1.5% 1.4% 2016 Est. HH Income $200,000 or More 1.8% 4.1% 5.0% 2016 Est. HH Income $150,000 to $199,999 3.5% 6.0% 5.8% 2016 Est. HH Income $100,000 to $149,999 13.7% 14.2% 15.3% 2016 Est. HH Income $75,000 to $99,999 18.1% 14.7% 13.8% Demographics 1 Mile 3 Miles 5 Miles 2016 Est. HH Income $50,000 to $74,999 21.1% 18.7% 18.6% 2016 Est. HH Income $35,000 to $49,999 13.6% 13.1% 12.8% 2016 Est. HH Income $25,000 to $34,999 10.2% 9.5% 9.0% 2016 Est. HH Income $15,000 to $24,999 10.0% 10.0% 9.8% 2016 Est. HH Income Under $15,000 7.9% 9.8% 10.0% 2016 Est. Average Household Income $66,246 $74,400 $77,514 2016 Est. Median Household Income $58,842 $63,621 $65,690 2016 Est. White 54.6% 57.1% 58.3% 2016 Est. Black 30.7% 30.3% 29.3% 2016 Est. Asian or Pacific Islander 5.2% 5.4% 4.9% 2016 Est. American Indian or Alaska Native 0.4% 0.2% 0.3% 2016 Est. Other Races 9.1% 7.1% 7.3% 2016 Est. Hispanic Population 9,325 54,240 171,054 2016 Est. Hispanic Population 42.6% 37.6% 43.8% 2021 Proj. Hispanic Population 44.6% 39.3% 45.5% 2010 Hispanic Population 40.8% 35.4% 42.0% 15
CONFIDENTIALITY & DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Atlantic Retail Investment Services and should not be made available to any other person or entity without the written consent of Atlantic Retail Investment Services. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Atlantic Retail Investment Services has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Atlantic Retail Investment Services has not verified, and will not verify, any of the information contained herein, nor has Atlantic Retail Investment Services conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. 16
OFFERING MICHAEL ZIMMERMAN 919.391.9901 MZIMMERMAN@ATLANTICRETAIL.COM INVESTMENTSERVICES.ATLANTICRETAIL.COM Representative photos