offering memorandum capital markets | net lease properties€¦ · newsport. 4 3300 nw 87 th avenue...

3300 NW 87TH AVENUE | DORAL (MIAMI) FLORIDA

Capital Markets | Net Lease Properties

REPRESENTATIVE PHOTO

OFFERING MEMORANDUM

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NW 33RD STREET | 12,800 AADTNW 33RD STREET | 12,800 AADT

NW 36TH STREET | 44,500 AADT

NW 36TH STREET | 44,500 AADT

World HeadquartersManor Cityplace

at Doral (398 Units)

Leon Medical Centers

Corporate office

URBANA at Downtown Doral

(837 Homes)

Doral Central Park

Miami Dade Police HQ

U.S. Department of Defense

(SOUTHCOM)

Miami Dade Fire Rescue

Headquarters

Sanctuary (226 units)

Oasis Park Square Doral(150 homes)

($800mm mixed use project on 55 acres)

Newsport

MARK DRAZEKSenior Vice President Capital Markets | Net Lease Properties

+1 407 496 [email protected]

RAY ROMANOFirst Vice President Capital Markets | Net Lease Properties


PREPARED BY:

CBRE, Inc. | Licensed Real Estate Broker | © 2018 CBRE, Inc. All Rights Reserved

1INVESTMENT

SUMMARYAERIALS

2CONSTRUCTION

PHOTOS

9SITE PLAN

12AREA OVERVIEW

13MAPS &

DEMOGRAPHICS

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TENANT DESCRIPTION

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1

3300 NW 87TH AVENUE | DORAL (MIAMI), FL

• Brand new 20 year lease with Wawa, Inc.• Prime South Florida location• Hard corner signalized intersection with tremendous traffic and population density -

over 448k people within 5 miles• Huge daytime population with over 35k employees within 1 mile and over 178k within

3 miles• Less than a ½ mile from Trump National Doral Miami golf resort (800 acres)• Just over 2 miles from Miami International Airport• Major employers in the immediate area include Carnival Cruise Lines, Univision, Miami

Dade Police Dept HQ, Miami Dade Fire & Rescue HQ, Leon Medical Centers, MiamiHerald, The Federal Reserve Bank of Atlanta, U.S. Department of Defense (SOUTHCOM)and Pepsi Co.

• Doral is among one of the best places to live in the United States per Money Magazineand tremendous growth in the area continues

• No landlord management obligations• Fixed rental increases throughout entire lease• No debt to assume• Florida has NO STATE INCOME TAX

CBRE is pleased to present this brand new 20 year Wawa deal located in Doral, Florida. Located in the Miami area of Florida, Doral is one of the most desirable communities in South Florida and experiencing tremendous growth. The property is ideally positioned at the hard corner

signalized intersection of NW 87th Ave. and NW 33rd Street which carries over 50,000 cars daily at the intersection. Doral is ranked by Money Magazine as one of the best places to live in the United States. This is new construction and a new 20 year lease with Wawa, Inc. Rent has recently commenced and the store had its grand opening on March 5, 2020. The lease provides for fixed rental increases throughout the entire term, including options and requires no landlord management obligations.

The underlying land for this property has significant intrinsic value as the current zoning, Industrial Commercial District (IC), City of Doral, allows for potential future higher density development for a variety of uses including professional & medical office, residential and hotel. Conservative estimates indicate the potential for developing 7-stories and 135,900 square feet (plus structured parking).

Investment HighlightsInvestment Summary

PRICE: $11,015,000

ANNUAL RENT: $495,700

CAP RATE: 4.50%

TENANT: Wawa, Inc.

RENTAL INCREASES: 7% every 5 years starting in year 11

LEASE TERM: 20 Years

OPTIONS: (6) 5-year options

RENT COMMENCEMENT: January 20, 2020

STORE OPENING March 5, 2020

LANDLORD OBLIGATIONS: None - Absulute NNN

EXISTING FINANCING: No debt to assume

BUILDING SIZE: 6,119± SF

LAND SIZE: 1.56± acres

PARKING SPACES: 49 spaces (8.0 spaces per 1,000 SF)

YEAR BUILT: Under Construction - 2020

INVESTMENT SUMMARY AERIAL VIEW - LOOKING NORTHEAST

2


AERIAL VIEW - LOOKING NORTHEAST

NW 36TH STREET | 44,500 AADTNW 36TH STREET | 44,500 AADT

NW 87TH AVENUE | 36,000 AADT


NW 33RD STREET | 12,800 AADT


World Headquarters


Corporate office


(837 Homes)($800mm mixed use project on 55 acres)

Manor Cityplace at Doral

(398 Units)

3


AERIAL VIEW

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NW 41ST STREET | 38,000 AADTNW 41ST STREET | 38,000 AADT

NW 25TH STREET | 33,500 AADTNW 25TH STREET | 33,500 AADT

DOLPHIN EXPWY (TOLL ROAD) | 145,000 AADTDOLPHIN EXPWY (TOLL ROAD) | 145,000 AADT

Doral Central Park

World Headquarters

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Manor City Apartments

398 Units


Corporate office


Headquarters



(837 Homes)

($800mm mixed use project on 55 acres)


(398 Units)U.S. Department of Defense

(SOUTHCOM)

Newsport

5


AERIAL VIEW - LOOKING NORTHWEST



NW

33RD STREET | 12,800 A

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NW

33RD STREET | 12,800 A

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550 units



Headquarters


(SOUTHCOM)

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AERIAL VIEW - LOOKING SOUTHEAST





Doral Central Park

Mirador at Doral (332 units)

World Headquarters


(398 Units)


Newsport

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AERIAL VIEW - LOOKING SOUTH

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Doral Central Park


World Headquarters

Newsport

Mirador at Doral (332 units)

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AERIAL VIEW - LOOKING WEST

NW 87TH AVENUE | 36,000 AADTNW 87TH AVENUE | 36,000 AADT

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Doral Central Park

550 units

Miami-Dade Fire Rescue HQ


(SOUTHCOM)


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CONSTRUTION PHOTO

Photo as of January 23, 2020

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CONSTRUCTION PHOTO


CONSTRUCTION PHOTO

11


CONSTRUTION PHOTO


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SITE PLAN

13


distance to

670miles

Atlanta485 miles

Tallahassee 275miles

Tampa

490miles

Savannah

157miles

Key West

240miles

Orlando

CURRENT CONDITIONS

Miami’s retail market consists of more than 45 million sq. ft. and is experiencing significant growth. In the last five years vacancy has remained under 4% while rents have increased by 15%. The Miami retail sector is driven by both local residents and a very large tourism sector. Retail sales for Miami are estimated at over $34 billion and are forecasted to grow by 5.8% over the next year. Visitors to the area average almost 16 million annually, spending more than $25 billion. This represents a 12% visitor growth rate over the past five years. International visitors represented 62% of total visitors in 2017 and it is estimated that upwards of 30% of retail spending in Miami is driven by tourists.

CONSTRUCTION ACTIVITY

Over the last five years absorption has exceeded new completions by a wide margin. Absorption is expected to slow due to a downshifting development pipeline. The majority of new retail projects under construction are in the Northeast Dade and Downtown Miami submarkets. The majority of space under construction is preleased, which will assist in keeping occupancy levels tight.

INVESTMENT ACTIVITY

Although cap rates have compressed for Miami retail, now below 6%, they exceed national averages. Recently traded assets have been smaller assets, with approximately 90% of trades being for properties under 25,000 sq. ft., putting elevated cap rates into context.

OUTLOOK

Miami is home to more traditional retail areas located in areas like Miami Beach and Aventura, but has recently seen the rise of significant new retail areas such as Brickell City Center, the Wynwood Art District and the Design District. Conservative and targeted novel and experience-driven development since 2010 has allowed the market to withstand the downsizing trend many national retailers have experienced. Miami’s global city status and its strong economic growth will continue to support its retail sector as the national retail sector goes through a transformation.

Miami, FL - Retail Outlook

BUSINESS-FRIENDLY ENVIRONMENT• The metro has no local business or personal

income taxes, which attracts businesses and residents to the area.

INFRASTRUCTURE GATEWAY • Miami is a gateway for international trading

activities and immigration, connecting to ports to the south and beyond.

MEDICAL COMMUNITY• The county contains the largest concentration of

medical facilities in Florida, drawing residents needing services throughout the state.

MIAMI OVERVIEW

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MIAMI OVERVIEW

Miami, FLMiami-Dade is Florida’s most populous county and also has the state’s biggest economy. It has experienced favorable demographic and economic conditions over the past five years. Local economic, job and demographic growth outpaced those of the U.S. across the board. The county’s population has grown by more than 11% over the past decade, and it currently stands at 2.8 million. Miami’s population growth over the past decade has been entirely driven by international immigration. Domestic migration has been negative, with one domestic migrant leaving Miami for every two international immigrants arriving in the metro. Miami has the highest natural increase rate for the period among South Florida Counties at close to 3%.

Because of the reliance on international arrivals, Miami’s County’s population growth is at risk if any shifts in the current U.S. Immigration policy occur.

Miami’s 1.2 million-person strong labor market is heavily weighted towards services, with just over 80% of the county’s labor force in private service provision. Trade and transportation is by far the largest sector, with a quarter of the county’s jobs. Business services and healthcare and education comprise 15% and 16% of the labor force, respectively.

The county’s labor market grew by 12% over the past five years. The current unemployment rate for Miami is at 3%, more than a percent below the same time last year.

Household income is one of the weakest links in Miami’s economy. The region’s median household income currently stands close to $53,000. This is the lowest out of South Florida’s three counties and close to 20% below the average for the country.

Miami’s household income growth, though, is faster than the U.S. average. Incomes here have grown by close to 30% over the past five years and are forecast to increase by a further 25% over the next five years. However, with all other things being equal, it would take two more decades for Miami to catch up to the rest of the U.S.

Strong population growth drove Miami’s whole household formation numbers. Households grew by close to 5%, the fastest growth rate out of the South Florida tri-county area over the past five years. This growth was also 1% above the average for the country.

Much of what drove Miami’s economy a decade ago came from links to Latin America. However, strong demographic growth, driven by international migration and favorable economic conditions, has shifted Miami’s economic engine towards domestic growth.

The challenge that Miami currently faces is to continue attracting investors, employers, and higher-paying jobs to the area. So far, the city has shied away from offering economic incentives to companies relocating to Miami. This has put Miami at a disadvantage when competing with other cities in the Southeast.

Attracting more high-paid jobs to the area will help increase not only the size of the region’s economy but also bridge its residents’ income inequality gap. This is sorely needed and will be vital in supporting commercial real estate growth prospects. More diverse and larger employers will improve Miami’s economic base as well as help accelerate household income growth.

The forecast calls for continued population growth for Miami-Dade County in the region of 1% per year over the next couple of years. This just below historical average population growth rates, and it accounts for a possible slowdown in international migration.

Miami-Dade County’s labor market is also forecast to grow at close to 3% over the next five years. This is four times lower than the growth the market experienced over the past five years. The decline in job growth does not necessarily spell bad economic news: It is more a reflection of the current labor market tight conditions as well as an increasingly aging population base.

Fueled by population growth, household formation is forecast to remain stable over the next five years and match the 5% growth rate of the prior five-year period.

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DORAL OVERVIEW

Miami-Dade County includes 35 incorporated towns and cities and many unincorporated areas. The 2,400-square-mile county extends from the Florida Everglades east to the Atlantic Ocean. It is bordered to the north by Broward County and to the south by Monroe County. The main portion of the city of Miami lies on the shores of Biscayne Bay and is separated from the Atalantic Ocean by barrier islands, the largest of which holds the city of Miami beach. The metro, with a population of roughly 2.7 million, is located entirely within Miami-Dade County. Miami is the most populous city, with slightly more than 400,000 residents, followed by Hialeah and Miami Gardens.

LOCATION HIGHLIGHTS• Centrally Located in NW Miami-Dade County

• Borders 3 Major Expressways (836,826, Florida Turnpike)

• 1 Mile from Miami International Airport

• Abundance of National Headquarters

INFRASTRUCTURE GATEWAY HIGHLIGHTS• #1 City in Maimi-Dade County with over 3,000 logistic-related companies supporting national and international trade

• Over 250 Company Headquarters; over 100 Multinational Companies; and over 50 Banking & Financial Institutions

• Home to the Miami Free Zone, one of the largest privately owned and operated free trade zones in North America, with more than 850,000 SF of facilities.

• Thriving and Vibrant Tourism Industry with over 20 hotels, including Trump National Doral Resort, which is home to the Famous Blue Monster & Golf Course.

• Fastest Growing Cities in the State of Florida.

ACCOLADES & AWARDS• #1 Best Place to Invest in Real Estate (NerdWallet)

• Best City in Florida for Business Start-Ups (Newsweek)

• #2 of America’s Top 25 Towns (Forbes Magazine)

• Top Places to Live and Start a Business (CNN)

• 3rd Best Place to Retire (Us News & World Report)

Doral, FL

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LOCATION MAPS

state map

area map

local map

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DEMOGRAPHICS

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

Households 2010 (Census) 1,079 32,280 137,733

Households 2019 (Estimate) 2,948 39,145 149,857

Households 2024 (Projected) 3,530 41,820 156,174

Historical Annual Growth

2010-2019 11.48% 2.11% 0.92%

Projected Annual Growth

2019-2024 3.67% 1.33% 0.83%

PLACE OF WORK 1 MILE 3 MILE 5 MILE

2019 Businesses 4,215 21,839 37,609

2019 Employees 35,388 178,350 298,999

HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE

2019 Average $80,332 $80,599 $64,883

2019 Median $60,135 $58,718 $45,689

2019 AGE REPORT 1 MILE 3 MILE 5 MILE

Median Age 34.00 39.20 42.80

POPULATION 1 MILE 3 MILE 5 MILE

Population 2010 (Census) 2,637 90,922 413,743

Population 2019 (Estimated) 7,405 112,184 448,922

Population 2024 (Projected) 8,984 120,659 469,432

Historical Annual Growth

2010-2019 11.81% 2.30% 0.89%

Projected Annual Growth

2019-2024 3.94% 1.47% 0.90%

2019 POPULATION BY RACE 1 MILE 3 MILE 5 MILE

White 6,139 99,794 412,254

Black 546 4,116 12,359

Asian 231 2,627 4,932

American Indian & Alaskan Native 9 131 499

Pacific Islander 1 6 27

Other Race 282 3,186 11,165

Two or More Races 197 2,323 7,686

Hispanic & Non-Hispanic

Hispanic 6,139 96,045 410,776

White Non-Hispanic 567 10,365 26,858

1-3-5 Mile Radius

18


Founded in 1803 by the Wood family and incorporated in 1865, Wawa, Inc. (the “Company” or “Wawa”) has roots in the manufacturing and textile businesses. The first Wawa Food Market opened on April 16, 1964. Today, the Company operates approximately 750 convenience stores, approximately 270 of which include a fuel offering, in Pennsylvania, New Jersey, Delaware, Maryland and Virginia. Wawa is a privately held company, with a majority of the Company stock still owned by the Wood family. Company associates who participate in the Employee Stock Ownership Plan have a nearly 30% ownership stake.

Wawa offers a large fresh foodservice selection, including freshly brewed coffee, a wide selection of delicatessen and dairy products, fresh produce, hot foods, built-to-order sandwiches and Wawa brands such as juices, teas, water and bakery products. The Company’s revenue principally consists of fuel and merchandise sales. The Company operates a dairy manufacturing facility, producing Wawa branded beverages and dairy products for distribution to, and sale in, its stores and to wholesale customers. The Company has a committed fuel storage terminal for the purpose of both storing fuel for distribution to, and sale in, its stores and for holding and selling fuel in wholesale markets.

Wawa has differentiated itself from its competitors by focusing on several key strategic areas:• Delivering fast and friendly customer service in a safe and clean shopping environment;• Promoting and developing Wawa-branded food, beverage and fresh food items;• Maintaining world-class facilities by systematically opening new stores, closing

marginal stores and remodeling older stores; and• Maximizing operating efficiency by making significant investments in operations

programs and technology.

Wawa exceeds industry norms in virtually every measurable category (Source: NACS State of the Industry Report of 2009 Data – most recent industry data available)• Wawa merchandise sales per store averaged $4.9 million for the year ended 2009

versus an industry average of $1.5 million for 2009• Gasoline sales totaled 1.4 billion gallons for the year 2009, an average of 101,000 gallons

per fuel store week or just under four times the industry average of approximately 28,000 gallons per fuel store week in 2009

• Incorporated in 1865• Listed as #25 in Forbes Ranking of America’s Largest

Private Companies aith an annual revenue of $10.6B and 31,000 employees

• Fitch Rated: BBB• 850 locations in the United States – All Company Owned

and Operated• Exceeds industry norms in virtually every measurable

category

WAWA, INC.www.wawa.com

TENANT DESCRIPTION


http://www.wawa.com

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DISCLOSURES

AFFILIATED BUSINESS DISCLOSURECBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENTYour receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMERThis Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of

the Property. The information contained in this Memorandumhas been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

© 2019 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. Any projections, opinions, or estimates are subject to uncertainty. The information may not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

MARK DRAZEKSenior Vice President Capital Markets | Net Lease Properties


CBRE, Inc. | Licensed Real Estate Broker

RAY ROMANOFirst Vice President Capital Markets | Net Lease Properties


PREPARED BY


CBRE, Inc. | Licensed Real Estate Broker | © 2019 CBRE, Inc. All Rights Reserved

offering memorandum capital markets | net lease properties€¦ · newsport. 4 3300 nw 87 th avenue...

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