nnn 60 year ground lease offering memorandum

9299 SW 152ND SW 152nd StreetMIAMI, FL

Accelerating success.

NNN 60 YEAR GROUND LEASE OFFERING MEMORANDUM

CORAL REEF MEDICAL OFFICE CONDOMINIUMS

CORAL REEF MEDICAL PARK | MIAMI, FLORIDA | PAGE 2

THIS IS A CONFIDENTIAL MEMORANDUM intended solely for your own limited use to determine whether you wish to express any further interest in the Property. This confidential memorandum contains brief, selected information pertaining to the business and affairs of the Property and has been prepared by Colliers International South Florida, LLC, primarily from information supplied by the Owner. Although this confidential memorandum has been reviewed by representatives of the Owner, it does not propose to be all-inclusive, nor does it contain all the information which a prospective purchaser may require or desire. Neither the Owner, nor any of its officers, directors, employees or agents, nor Colliers International South Florida, LLC, makes any representation or warranty, expressed or implied, as to the accuracy or completeness of this confidential memorandum or any of its contents, and no legal liability is assumed or is to be implied by any of the aforementioned with respect thereto. Prospective offers are advised to verify the information independently. The Owner reserves the right to change the price or any information in this Memorandum, or to withdraw the Property from the market at any time, without notice. This confidential memorandum shall not be deemed an indication of the state of affairs of the Property or the Owner, nor shall it constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of this memorandum. By your receipt of this confidential memorandum, you agree that the information contained herein is of a confidential nature and you will not disclose this memorandum or any part of the contents to any other person, firm or entity without prior authorization from Colliers International South Florida, LLC.

OFFERING PROCEDUREOffers should be submitted in the form of a non-binding Letter of Intent and must specify the following:• Price• Length of Inspection Period• Length of Closing Period• Amount of earnest money deposit at execution of a Purchase and Sale Contract, and• Amount of additional deposit upon expiration of Inspection Period

CONTACT DETAILS

MARCOS PUENTEVice PresidentDIR +1 786 517 4859MOB +1 305 851 [email protected]

Colliers International South Florida, LLC801 Brickell Avenue Suite 850Miami, FL 33131+1 305 359 3690

www.colliers.com

Coral Reef Medical Park Condominiums

Ground Lease

COLLIERS INTERNATIONAL | PAGE 3

TABLE OF CONTENTS> EXECUTIVE SUMMARY

The Offering ............................................................................................................................... 4Investment Overview ................................................................................................................ 5 Aerial Photos .............................................................................................................................. 6Building Information ................................................................................................................... 10

> PROPERTY SUMMARYTenant Roster and Description ................................................................................................. 11

> MARKET SUMMARYLocal Area Overview ................................................................................................................. 13 Major Market Drivers ................................................................................................................. 14 Pricing ........................................................................................................................................ 15


Colliers International is pleased to present the the leasehold interest Coral Reef Medical Park Condominiums, a prime investment most similar to an annuity, which is guaranteed by the first medical office condominiums built in Florida. With over 60 years remaining on the lease, an investor will have a stream of income totaling over $2.3 million.

The building has 13 recorded condominium owners, more than half of which have held their properties for over 15 years. The leasehold owner’s payments come monthly, directly from the condominium association. The property is directly across from the newly renovated Jackson South Hospital; and is a mile away from the proposed downtown redevelopment in the Village of Palmetto Bay aimed to transform approximately 160 acres into an attractive downtown destination.

PROPERTY OVERVIEW

Address 9299 SW 152nd Street, Miami, FL 33157

Price $530,000

NOI $30,500

Cap Rate 5.75%

Lease Term Remaining 61 Years

Increases $3,500 every 10 years

Guarantor Coral Reef Medical Office Condominiums and Association

THE OFFERING

***This sale is for the leasehold interest in the medical office condominium building, not the fee simple.

> Leasehold interest in the first medical office condominiums ever built in Miami-Dade County.

> Perfect 1031 Exchange property

> Sum of cash flows over 60 years is $2,337,500 with an average annual payment of $38,958

> Long-term passive income stream

> Absolute NNN ground lease, no landlord responsibilities

> Guaranteed by 13 unit medical office condominium building and association


INVESTMENT HIGHLIGHTS

PROPERTY DETAILS

Fixed rental increases of 5% every 5 years

No landlord management obligations – Absolute NNN ground lease

Very strong retail location

Excellent access and exposure

Hard corner signalized intersection

No debt to assume

Florida has NO STATE INCOME TAX

SECURED BY PURCHASERS OF A CONDOMINIUM

TENANTS WITH STRONG HOSPITAL AFFILIATIONS AND LONG-TERM PRESENCE IN THE BUILDINGMore than half of the recorded condominium owners have owned their spaces for over 15 years and have operated and leased to businesses that have strong affiliations with the hospital community, including Jackson Health System, University of Miami Health System and Baptist Hospital.

PROXIMITY TO JACKSON SOUTH HOSPITALThe property is conveniently located across the street from the Jackson South Hospital, which is part of the Jackson Health System. The proximity to the hospital has enabled most of the owners and tenants operating in the building to establish a working relationship and affiliation with the hospital’s network of patients.


INVESTMENT OVERVIEWMONTHLY RENT ANNUAL RENT

CURRENT RENT $2,541.67 $30,500.00

Rent increase by $3,500.00 every 10 years;Next increase: September 2027

Commencement Date: September 29, 1977End Date: September 27, 2076

RENT INCREASES MONTHLY PAYMENT ANNUAL AMOUNT1977 - 1986 $1,250.00 $15,000.00 1987 - 1996 $1,666.67 $20,000.04 1997 - 2006 $1,958.33 $23,500.00 2007 - 2016 $2,250.00 $27,000.00 2017 - 2026 $2,541.67 $30,500.00 2027 - 2036 $2,833.33 $34,000.00 2037 - 2046 $3,125.00 $37,500.00 2047 - 2056 $3,416.67 $41,000.00 2057 - 2066 $3,708.33 $44,500.00 2067 - 2076 $4,000.00 $48,000.00

* Current rent - owner will credit the difference in rent through Sept. 2017.


AERIAL PHOTO

SW 152ND STREET

NORTHWEST VIEW

ENT MIAMI

JACKSON SOUTH COMMUNITY HOSPITAL


MAJOR MARKET DRIVERSJACKSON HEALTH SYSTEM

Jackson Health System is a nonprofit academic medical system offering world-class care that ensures that all residents of Miami-Dade County receive a single high standard of care regardless of their ability to pay. As an integrated healthcare delivery system, Jackson Health System consists of its centerpiece, Jackson Memorial Hospital; multiple primary care and specialty care centers; two long-term care nursing facilities; six Corrections Health Services clinics; a network of mental health facilities; Holtz Children’s Hospital, Jackson Rehabilitation Hospital, Jackson Behavioral Health Hospital, Jackson North Medical Center and Jackson South Community Hospital.

Working in conjunction with two medical schools, the University of Miami Miller School of Medicine and the Florida International University Herbert Wertheim College of Medicine, Jackson is able to coordinate and participate in the development of medical, education and teaching programs, research activities, community programs and services.

Jackson Health System is governed by the Public Health Trust, which was created in 1973 by the Board of County Commissioners as an independent governing body concerned with the county’s most vital healthcare resource: Jackson Memorial Hospital.


Jackson South Community Hospital is a 230-bed acute-care hospital located in south Miami-Dade County. The hospital offers a full spectrum of services and is staffed by nationally respected, board- certified physicians and healthcare professionals who practice a wide array of specialties and subspecialties. Every year, more than 3,400 surgeries are performed at Jackson South and approximately 37,000 people visit the emergency department.

Jackson South Community Hospital recently completed an additional 157,000 SF of new construction, which includes expanded surgical and ICU facilities and 57 private patient rooms. A new emergency department includes a minor care area, which expedites patient care for patients with minor injuries or medical problems.

MAJOR MARKET DRIVERSJACKSON SOUTH COMMUNITY HOSPITAL


AERIAL PHOTO

SW 15

2ND

STRE

ET -

37,0

00 T

RAFF

IC C

OUNT

SOUTH DIXIE HIGHWAY - 77,000 TRAFFIC COUNT

NORTHEAST VIEW

ENT MIAMI

SUBJECT

THE FALL SHOPPING MALL

DIXIE ANIMAL HOSPITAL

HEARTLAND HOSPICE

CORAL REEF SHOPPING CENTER

JACKSON SOUTH COMMUNITY HOSPITAL


BUILDING INFORMATION9299 SW 152 STREET

Size ±25,000 SF

Class B

Zoning RU-5A: Semi-professional office district, 10,000 SF Net

Height 2 stories

Year Built 1978

zoomed in

Source: ©2015 Esri

September 16, 2016

©2015 Esri Page 1 of 1


CORAL REEF MEDICAL PARK CONDOMINIUMS

TENANT NAME FOLIO UNIT SIZE SALES DATE SALES PRICE PRICE/SF

30-5021-034-0010 100 1,307 Jul-82 $161,700 $123.72

Medical Eye Associates 30-5021-034-0020 101 1,290 Jun-99 $370,000 $113.92

Medical Eye Associates 30-5021-034-0030 102 1,958 Jun-99 $370,000 $113.92

Coral Reef Orthopaedic Associates

30-5021-034-0040 103 2,406 Nov-12 $240,000 $99.75

Coral Reef Orthopaedic Associates

30-5021-034-0050 104 2,573 Dec-78 $187,400 $72.83

Bio Behavioral Corp 30-5021-034-0060 200 3,018 Apr-13 $265,000 $87.81

Dr. Juan Pagan, MD 30-5021-034-0070 201 956 Jan-79 $71,600 $74.90

Comprehensive Cardiovascular Consultants

30-5021-034-0080 202 1,635 Aug-13 $305,000 $186.54

Prager Simon & Associates 30-5021-034-0090 203 1,188 Dec-78 $88,700 $74.66

Namoff & Fernandez 30-5021-034-0100 204 1,335 Dec-78 $99,000 $74.16

Dr. Karl Sturge, MD 30-5021-034-0110 205 989 Feb-79 $71,400 $72.19

Alluring Women's Care 30-5021-034-0120 206 1,237 Nov-15 $174,600 $141.15

Perrine Pediatrics 30-5021-034-0130 207 1,121 Apr-00 $150,000 $133.81

TENANT ROSTER AND OVERVIEWThe tenants at Coral Reef Medical Park Condo are top medical specialists in their field providing services including eye care, orthopedics, pediatrics, and dentistry. Most of the tenants have operated at Coral Reef Medical Park for over 16 years, three of which have been there since the building’s construction in 1978. The tenant pool has great ties with nearby Jackson Health System, as well as Baptist Hospital, which attracts a large pool of patients to this full-service medical facility.

Below are the list practices in the building and their respective units:


TENANT ROSTER AND DESCRIPTION

MEDICAL EYE ASSOCIATES

Medical Eye Associates is a premier eye care and subspecialty care center opened in 1975. It has eight highly trained board certified ophthalmologists in its six South Florida offices. Aside from using the latest technology and following the safest procedures, Medical Eye Associates is a top center for new research that conducts clinical trials for the latest clinical developments and techniques. Medical Eye Associates has affiliations with the American Academy of Ophthalmology, American Society of Cataract and Refractive Surgery, American Society of Retina Specialists, among others.

CORAL REEF ORTHOPAEDIC ASSOCIATES PA

Coral Reef Orthopaedic Associates is led by Dr. Peter J. Millheiser, MD. He is a board certified orthopaedic surgeon since 1970 and specializes in sports medicine and orthopaedic consultations. Dr. Millheiser is currently affiliated with Baptist Hospital Homestead and Jackson South Community Hospital. As a prominent orthopaedic surgeon, Dr. Millheiser is a member of the American Medical Association, American College of Surgeons, State Medical Society, State Orthopaedic Society, American Academy of Orthopaedic Surgeons, and the American Academy of Disability Examining Physicians.

PRAGER SIMON & ASSOCIATES

Prager Simon & Associates is a health practice that provides critical care and pulmonary disease treatment. The practice is led by Dr. Leonard Simon and Dr. Richard Prager. Dr. Leonard Simon has more than 28 years of experience in pulmonary care and critical care (intensivists) and obtained the American Board of Internal Medicine – Critical Care Medicine board certification. Dr. Richard Prager is a Pulmonary Disease Specialist with more than 39 years of diverse experience, especially in Pulmonary Disease and Critical Care (intensivists). Prager Simon & Associates is affiliated with Jackson Memorial Health System

COMPREHENSIVE CARDIOVASCULAR CONSULTANTS

Comprehensive Cardiovascular Consultants is a cardiovascular health practice led by Dr. Dino Vitiello M.D. With over 24 years of experience, Dr. Vitiello specializes in acute coronary syndrome, heart block, high blood pressure, high cholesterol, and unstable angina. Dr. Vitiello treats patients from all over the county through has affiliations with Homestead Hospital, Mercy Hospital, Baptist Hospital, Sister Emmanuel Hospital, Mount Sinai Medical Center, University of Miami Hospital & Clinics, and DMount Sinai Medical Center – Miami Heart Campus.

PERRINE PEDIATRICS

Perrine Pediatrics is a practice that specializes in pediatrics and adolescent medicine led by Dr. Gisele Mardy, MD. Dr. Mardy is a graduate from the Universite d’Etat d’Haiti, Esc De Med Et De Pharmacie, Port Au Prince, Haiti in 1983. She is affiliated with Baptist Hospital of Miami and Nicklaus Children’s Hospital.


TENANT ROSTER AND DESCRIPTION

ALLURING WOMEN’S CARE

Alluring Women’s Care is an obstetric and gynecologic practice led by Dr. Emerita Castillo, MD. She is board certified by the American Board of Obstetrics and Gynecology. As a fluent English, French, and Spanish speaker, Dr. Castillo treats patients from various cultural backgrounds. She is currently affiliated with multiple hospitals in the area, including Memorial Hospital and Palmetto General Hospital.

NAMOFF & FERNANDEZ

Namoff & Fernandez is a general dentistry practice led by Dr. David Namoff, DDS and Dr. Aurelio Fernandez, DMD.

DR. JUAN PAGAN, MD

Dr. Juan Pagan, MD is a child and adolescent psychiatrist with more than 20 years of experience. He received his medical degree from the University of Puerto Rico School of Medicine. Dr. Pagan has an expertise in treating patients with Attention Deficit Disorder (ADD), Attention Deficit Hyperactivity Disorder (ADHD), bipolar disorder, manic depressive disorder, depression, insomnia, schizophrenia, and sleep disorders. He is currently affiliated with Miami Children’s Hospital.

BIO BEHAVORIAL CORP

Bio Behavioral Corp is a mental health facility that provides psychological therapy, counseling, marriage & family therapy.


LOCAL AREA OVERVIEWEXCELLENT LOCATION AND CONNECTIVITY

VILLAGE OF PALMETTO BAYThe Village of Palmetto Bay is a vibrant suburban community of more than 25,000 residents who enjoy its beautiful surroundings and family-oriented atmosphere. The Village extends from the centerline of SW 136 Street, south to the centerline of SW 184 Street; expanding west to the centerline of South Dixie Highway, including the center “commercial island,” and east to Biscayne Bay. Palmetto Bay offers quick access to unique recreational opportunities and amazing bay vistas.

Village residents enjoy the benefits of an extensive park system composed of five Village parks and two county facilities. The commercial corridor along South Dixie Highway is easily and quickly accessible from any location within Village limits. Restaurants, lodging, retail services, and shopping venues - from major chains to family-owned enterprises are among the Village’s commercial base. Palmetto Bay is a leader in many facets of community building by completing many traffic & beautification projects, improving customer service, building a solid policing unit, expanding the channels of communications with its residents, and improving Village park facilities and recreational events and programs.


TRAFFIC COUNTS

MAJOR MARKET DRIVERSEXCELLENT DEMOGRAPHICS

Coral Reef Dr/SW 94th Ave 37,000 traffic volume

Dixie Hwy/SW 157th St 69,500 traffic volume

Dixie Hwy/Coral Reef Dr 77,000 traffic volume

Coral Reef Dr/SW 89th Ct 17,090 traffic volume

Population 1 Mile 3 Miles 5 Miles 2016 Total Population 14,232 99,343 293,499

Estimated Growth 2016-2020 1.42% 0.99% 0.96%

Median Age 40.5 41.3 39.5

2016 Total Households 14,232 99,343 293,499

Per Capita Income $37,205 $35,579 $31,696

Average Household Income $108,222 $108,676 $92,038

Average Household Size 2.87 3.06 2.90

Age Group 1 Mile 3 Miles 5 Miles 0-4 5.0% 5.2% 5.6%15-19 6.6% 7.0% 6.4%20-24 6.7% 6.3% 6.5%25-34 12.9% 11.5% 13.5%35-44 11.8% 11.7% 13.0%45-54 15.8% 15.6% 14.8%55-64 14.7% 14.5% 13.0%65-74 8.7% 9.1% 8.6%75+ 5.3% 6.1% 6.1%

Households by Income 1 Mile 3 Miles 5 Miles <$15,000 8.6% 8.5% 11.1%$15,000-$24,999 8.6% 8.1% 9.3%$25,000-$34,999 8.3% 7.6% 8.7%$35,000-$49,999 11.0% 10.1% 11.7%$50,000-$74,999 13.7% 14.6% 16.9%$75,000-$99,999 11.6% 12.4% 11.7%$100,000-$149,000 17.9% 19.0% 15.9%$150,000-$199,999 7.7% 8.4% 6.5%

$200,000+ 12.5% 11.2% 8.2%

DEMOGRAPHICS


Accelerating success.

CONTACT DETAILS

MARCOS PUENTEVice President+1 305 851 [email protected]

Colliers International South Florida, LLC801 Brickell Avenue, Suite 850Miami, FL 33131+1 305 359 3690

Commercial Real Estate Services

www.colliers.com

nnn 60 year ground lease offering memorandum

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