offering memorandum federal highway plaza · the information contained in the following marketing...

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Pompano Beach, Florida

FEDERAL HIGHWAY PLAZAOffering Memorandum

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 Marcus & Millichap Investment Services of Florida and should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. Marcus & Millichap 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

CONFIDENTIALITY AND DISCLAIMER

NON-ENDORSEMENT NOTICE

NEIGHBORING LEASE

COMPARABLES

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2017. All rights reserved.

LEASE COMPARABLES

1800 Heritage Square1800 North Federal Hwy

Pompano Beach, FL 33062Rent: $40.00/NNNExpenses: $9.11Total Rent: $49.11GLA: 40,508 SFLot Size: 2.49 ACYear Built: 1968

1990 N Federal Hwy1990 North Federal Hwy


Payless Shoes1790 North Federal Hwy


2050 Plaza2050 North Federal Hwy


Note: Plaza in process of face-lift Note: Plaza in process of face-lift and addition of new tenant


FINANCIAL OVERVIEW

Financial Summary Current Pro Forma

Annual Rent | Occupied: $95,702 $145,602Annual Rent | Vacant: $49,900Expense Reimbursements: $22,873 $34,611Gross Potential Income: $168,475 $180,213Vacancy (5%): $49,900 $7,280Effective Gross Income: $118,575 $172,933Expenses: $42,175 $47,818

Net Operating Income $76,400 $125,115

Expenses Current PSF Pro Forma PSF

Real Estate Taxes: $19,272 $3.42 $20,000 $3.55Insurance: $7,422 $1.32 $6,285 $1.10CAM

Electric: $156 $0.03 $156 $0.03Water: $2,088 $0.37 $2,088 $0.37Trash: $7,236 $1.29 $7,236 $1.29Landscaping: $6,000 $1.07 $6,000 $1.07

Total CAM $15,480 $2.75 $15,480 $2.75

Management (3%): $4,646 $0.83Reserves: $1,407 $0.25

Total Expenses $42,175 $7.49 $47,818 $8.36

Federal Highway Plaza1950 North Federal Hwy, Pompano Beach, Florida 33062

Price: $1,500,000Cap Rate | Current: 5.09%Cap Rate | Pro Forma: 8.34%Gross Leasable Area: 5,252Total Square Feet: 5,630Price PSF: $285.60Land Area: 0.67 AcresYear Built: 1971

Investment Highlights• Located on Federal Highway, With a Daily Traffic Count of

Nearly 50,000 Vehicles• Population Over 200,000 Within Five Miles• Directly Across the Street from Pompano Citi Centre with

Tenants Including Lowe’s, Macy’s, JC Penney, Big Lots, Chili’sand Many More

• Other Surrounding National Retailers Include Publix, WholeFoods, AMC Theatres, Staples, T.J. Maxx, Bed Bath & Beyond,Home Goods, Walgreens, CVS, Bank of America, Chick-fil-A,Taco Bell, Dunkin Donuts and Many More

• Located in Broward County, Which has a Population of 1.9Million People


RENT ROLL

Tenant GLA % of GLA Annual Rent Rent PSF Expense Reimb

Total Income

Lease Commence

Lease Expiration

Lease Type

R & Y Islam 1,650 29.16% $60,976 $36.96 $10,478 $71,454 2/1/2018 1/31/2023 NNNRX Care 1,850 35.91% $34,726 $18.77 $12,395 $47,121 1/1/2015 12/31/2020 NNNVacant 1,752 34.93% $49,900 $25.00 $11,738 $61,638 Vacant Vacant NNN

Totals 5,252 100% $145,602 $34,611 $180,213

Pro Forma

Tenant GLA % of GLA Annual Rent Rent PSF Expense Reimb

Total Income

Lease Commence

Lease Expiration

Lease Type

R & Y Islam 1,650 29.16% $60,976 $36.96 $10,478 $71,454 2/1/2018 1/31/2023 NNNRX Care* 1,850 35.91% $34,726 $18.77 $12,395 $47,121 1/1/2015 12/31/2020 NNNVacant 1,752 34.93% N/A N/A N/A N/A Vacant Vacant

Totals 5,252 100% $95,702 $22,873 $118,575

Current

*Tenant has vacated but is paying rent until 12/31/2020

Federal Highway

SUBJECT PROPERTY

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services© 2017. All rights reserved.

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47,000Daily

FEDERAL HIGHWAY PLAZA

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47,000Daily

FEDERAL HIGHWAY PLAZA

Pompano Citi Centre

AERIAL


LOCAL & REGIONAL MAPS


MARKET OVERVIEW

BROWARD COUNTYOVERVIEW

Broward County is located in South Florida and contains a population of

1.9 million people. The county is bordered to the north and south by Palm

Beach and Miami-Dade counties, respectively. On the east is the Atlantic

Ocean and Big Cypress National Reserve is to the west. The Everglades

cover the western portion of the county, restricting development. As

limited land is available for construction, any significant growth is upward

rather than outward. Roughly 23 miles of shoreline and 300 miles of

inland waterways provide a wide range of recreation and transport uses.

Fort Lauderdale is the largest city in the county with 180,900 residents

followed by Pembroke Pines with 166,500 people.

MARKET OVERVIEW

METRO HIGHLIGHTS

STRONG POPULATION GROWTH

Broward County’s population continues to grow at a

pace well above the U.S. rate. In-migration accounts

for a large share of new residents.

DESIRABLE CORPORATE LOCATION

Companies are attracted to the metro for its proximity

to Latin American markets, large educated workforce

and desirable climate.

HOUSING AFFORDABILITYHome prices are more affordable in Broward County

than in many other coastal counties.


MARKET OVERVIEW

ECONOMY▪

▪

Key economic drivers include tourism, healthcare, biotechnology and commerce.

As a major point of access to both international trade and cruise tourism, Port Everglades

generates roughly $30 billion of economic activity per year.

▪ The significant population of elderly residents results in healthcare playing a major role in the county’s economy.

▪ Diverse companies are headquartered in the area, including Citrix Systems, AutoNation and Heico.

SHARE OF 2017 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

Ultimate Software

Nova Southeastern University

American Express

Spirit Airlines

Kaplan Higher Education

Citrix Systems

DHL Express

JM Family Enterprises

AutoNation

Actavis* Forecast

MANUFACTURING3%

GOVERNMENT

HEALTH SERVICES

EDUCATION AND

+OTHER SERVICES

5%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

22%

AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

2%INFORMATION

18%

6%

13% 12% 7%

13%


MARKET OVERVIEW

DEMOGRAPHICS

▪

▪

▪

Since 2000, the county’s population has increased by roughly 278,000 residents.

During the next five years, the county will add approximately 65,000 residents.

In the same time period, the number of households will rise by 35,500.

An increase in education attainment provides a skilled labor pool and has helped

boost income levels. Almost 30 percent of residents age 25 and older have at

least a bachelor’s degree.

Broward County has one of the most desirable climates in the United States and has

a wide variety of recreational opportunities and cultural amenities. The metro boasts

300 days of sunshine annually, and the average winter temperature is 78 degrees.

Fort Lauderdale is known as the “Venice of America” for its inland canals. In addition,

more than 145 marinas along Fort Lauderdale’s inland waterways cater to boating

and fishing needs. Various professional sports are nearby in Miami. There are also

more than 40 golf courses in the county. Other attractions include the NSU Art

Museum Fort Lauderdale, the Broward Center for the Performing Arts, Flamingo

Gardens, Museum of Discovery and Science, Symphony of the Americas and the

International Swimming Hall of Fame.

QUALITY OF LIFE

2017 Population by Age

0-4 YEARS

6%5-19 YEARS

17%20-24 YEARS

6%25-44 YEARS

27%45-64 YEARS

28%65+ YEARS

16%

ARTS & ENTERTAINMENT

40.2

2017MEDIAN AGE:

U.S. Median:

37.8

$53,800

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$56,300

1.9M

2017POPULATION:

Growth2017-2022*:

3.4%

743K

2017HOUSEHOLDS:

4.8%

Growth2017-2022*:



POPULATION 1 MILE 3 MILES 5 MILES

2010 Population 12,840 93,705 210,1582017 Population 13,791 103,242 228,3402022 Population 13,709 102,269 228,6342017 Male Population 7,070 52,599 114,6412017 Female Population 6,721 50,643 113,6992017 Median Age 48.8 44.4 45.7

RACE & ETHNICITY 1 MILE 3 MILES 5 MILES

American Indian, Eskimo 0.2% 0.3% 0.3%Asian 1.4% 1.2% 1.5%Black 8.6% 29.6% 25.3%Hawaiian/Pacific Islander 0.0% 0.1% 0.1%White 84.3% 61.2% 65.8%Other 3.1% 5.1% 4.5%Multi-Race 2.4% 2.6% 2.6%Hispanic Ethnicity 16.8% 18.6% 18.5%Not of Hispanic Ethnicity 83.2% 81.4% 81.5%

HOUSEHOLDS 1 MILE 3 MILES 5 MILES

2010 Households 5,990 38,950 94,5362017 Households 6,445 42,476 102,3372022 Households 6,516 42,889 104,154

HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES

2010 Avg Household Income $82,610 $69,612 $65,7382017 Avg Household Income $89,394 $73,987 $69,5032022 Avg Household Income $103,655 $85,856 $80,5662010 Med. Household Income $50,852 $43,748 $41,8992017 Med. Household Income $54,650 $47,452 $45,6892022 Med. Household Income $63,506 $54,437 $52,5562010 Per Capita Income $38,539 $29,094 $29,9232017 Per Capita Income $41,780 $30,578 $31,4612022 Per Capita Income $49,267 $36,145 $37,011

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DEMOGRAPHICS

https://www.google.com/maps/@26.2555568,-80.1001057,3a,75y,111.7h,76.35t/data=!3m6!1e1!3m4!1sMdMxgYYUTYceWdj6jA-qIQ!2e0!7i13312!8i6656

https://www.google.com/maps/place/1950+N+Federal+Hwy,+Pompano+Beach,+FL+33062/@26.255495,-80.1018027,1043m/data=!3m1!1e3!4m5!3m4!1s0x88d902a840997321:0xdfc75d18afb18255!8m2!3d26.255495!4d-80.099614

The Wolfe Retail Group of Marcus & Millichap specializes in the sale of single-tenant properties and shopping centers and has successfully assisted clients in selling over 450 separate commercial properties with a market value exceeding $1.25 billion. Having closed sales in more than 40 states, our track record is evidence that we are one of the premier brokerage teams in the United States.

With our experience and background in various fields such as law and finance, we have proved to be invaluable to our clients, earning their trust and exceeding their expectations while best assisting them in their real estate transactions.

For more about the Wolfe Retail Group, or to view all of our available listings, visit www.WolfeRetailGroup.com

Marcus & Millichap (NYSE: MMI) has established itself as a leading and expanding investment real estate company with nearly 1,500 brokers in 78 markets throughout the United States and Canada. The foundation of our investment sales is the depth of our local market knowledge. Our 44-year history of maintaining investor relationships in local markets enables us to be the best information source and transaction service provider in North America.

About Marcus & Millichap

The Wolfe Retail Group has sold over

450 properties in more than

40 states

http://www.WolfeRetailGroup.com

Barry M. WolfeSenior Managing Director Investments

[email protected](954) 245-3493

Alan LipskyVice President Investments


Evan WhelanAssociate


Catie JacksonMarketing Coordinator


Angelica LinaresTransaction Coordinator


mailto:Angelica.Linares%40marcusmillichap.com?subject=

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