offering memorandum income commercial property …€¦ · the information contained in the...

INCOME COMMERCIAL PROPERTY

ACROSS FROM FLORIDA MALL1051 W SANDLAKE RD, ORLANDO, FL 32809

Tri Apple Realty & Investment Corp.

Anita Nguyen

Commercial Real Estate Specialist

1-561-877-0331

[email protected]

OFFERING MEMORANDUM

CONFIDENTIALITY AND DISCLAIMERThe 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 Tri Apple Realty & Investment Corp. and should not be made available to any other person or entity without the written consent of Tri Apple Realty &

Investment Corp. 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. Tri Apple

Realty & Investment Corp. 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, 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, Tri Apple Realty & Investment Corp. has not verified, and will not

verify, any of the information contained herein, nor has Tri Apple Realty & Investment Corp. 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.

NON-ENDORSEMENT NOTICE

Tri Apple Realty & Investment Corp. 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 Tri Apple

Realty & Investment Corp., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Tri Apple Realty & Investment Corp., 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 – DO NOT DISTURB TENANT

PLEASE CONTACT LISTING AGENT FOR MORE DETAILS.

• INVESTMENT & OPPORTUNITY

• Market Highlights 4

• Investment Highlights 5

• Property Survey 9

• Sale Comps 13

• Opportunity 10

• New building’s site plan 11

• Hukoo’s Family Fun Overview 17

• PRICING

• Pricing 18

• DEMOGRAPHICS

• City Overview | Orlando, FL 20

• Income & Race 21

• Economic & Workforce 22

• Tax 23

Anita Nguyen


Commercial Real Estate SpecialistExclusively listed by:

Table of Contents

Tell: 561-877-0331

[email protected]

License No.: 3325717

mailto:[email protected]

Property Description

City Overview

Orlando is one of the world’s premier tourist destinations with many famous

attractions such as: Walt Disney World, Universal Studios, SeaWorld, Gatorland,

and Wet ‘n Wild. The city is also one of the most popular destinations for

conferences & conventions with the Orange County Convention Center currently

the second-largest convention facility in the United States. Orlando also ranks

as the fourth most popular American city based on where people want to live

according to a 2009 Pew Research Center study.

Market Highlights

The Central Florida Retail Market remained strong through the second quarter of

2016, driven by an expanding population and booming tourism industry. The

growing residential real estate market and expanding industrial distribution

sector in Orlando are also fueling retail growth.

Central Florida is predicted to be one of Florida’s fastest-growing regions going forward. Despite a sluggish global economy, visitation to Orlando

continues to increase. A growth rate of 3.9 percent year-over-year led to an all-time high of 66 million visitors in 2015.

With rising consumer confidence and continued gains in employment and wages, the local retail market has benefited from a recent upsurge in

consumer spending. Rents are projected to rise 3.10% in 2016. Orlando commercial real estate continues to be in high demand by institutional, private

and overseas investors.

CBRE research

Property Description

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Sand Lake Road

Investment Highlights:

High CAP Rate:

• Offer price is based on the 6.67%-7% CAP rate of current tenant and the

value of $300K - $500K of the outparcel in which to build an additional

building for an additional income.

The property benefits from its superior location:

• Situated directly across from the main entrance to the Florida Mall, one of thebusiest Mall in Central Florida, that welcomes more than 20 million visitors annually

• Minutes from the Orlando International Airport and centrally-located for easy accessto all of Orlando’s prime tourist attractions including Walt Disney World, SeaWorld,Universal Studios & I-Drive

• Excellent exposure on Sand Lake Road, which got $48 million approved project towidening Sand Lake Road from four to six lanes, a major artery leading to OrlandoInternational Airport, with easy access to the Florida Turnpike, SR 528, John YoungParkway, and Interstate-4

• Surrounded by strong National tenants: Home Depot, Publix, Target, Wells Fargo,Chase, Apple, Macy’s, Dillard’s, Toys R Us, Best Buy…

• Two digital display boards, each 54 square foot, and mounted either side of a large25-foot monument sign garner the attention of all Florida Mall traffic plus the42,000+ vehicles that pass the building each day

• Within 5 mile radius of Multi-Million Approved Projects which are expected to attractadditional 3+ million new visitors each year and create thousands of new jobs for thearea. Some of them are $460 million Skyplex Complex, Topgolf Orlando, AndrettiIndoor Karting $ Games, $400 million iSquare Mall & Hotel, etc.

The property’s excellent location and established business create a dependable rental income for investors and developers while the oversized 3-acre parcel provides redevelopment potential and future growth opportunities.

Next to Florida Mall - Surrounding by National Tenants

5 Miles Radius Map

$450M

Skyplex

Orlando

Eye

Hollywood

Plaza

Topgolf

Andretti

Hukoo’s Family

Fun

4.8 mile

Multi-Million Dollar Approved Projects within 5 mile radius

$400 M iSquare

Mall & Hotel

Property Survey

Opportunity

Currently, there is an existing 25,000 sf building which is leased 100% to a tenant operating a family entertainment center named Hukoo’s Family Fun.

The oversized parcel of 3 acres provides an excess of parking that would permit an additional freestanding structure (between 5,000 – 10,000 sf

building) or extension to the existing building with flexible C-2 zone permitting multiple commercial uses including office, restaurant & retail.

This redevelopment opportunity creates a potential source of additional rental income & will also add significantly value for the property.

This exciting property is a unique opportunity for investors/developers to acquire real estate in close proximity to Orlando’s tourist attractions,

downtown & residential areas with easy access to major highways and the international airport. Orlando’s diversified economy underpins its consistent

growth leading to a high and sustained demand for commercial real estate that bodes well for the future viability of this real estate acquisition.

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Sand Lake Road

25 foot

digital sign

48

2

48

2

Proposed

new

restaurant

location

Proposal for an additional building’s site plan

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Proposed

new

restaurant

location

Proposal for an additional building for an Additional Income

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Proposed

new

restaurant

location

Propose An Additional Building

Current Building

100% lease to

current tenant

RESTAURANT TENANT IS DESIRED

CURRENT CAP RATE: 6.67%

POTENTIAL CAP RATE: 9% - 13%

795 W Sand Lake Rd, Orlando, Florida 32809

Sale Price (USD) 4,899,700.00 Lot Size (Acres) 3.08

Close of Escrow 6/27/2017 Price/ SF 193.27

Zoning C-2 Living Area (SF) 25,351

Distant to Hukoo’s (mile) 0.5 Gross Building Area (SF) 30,607

Recent Sales

8003 Golden Sky Ln, Orlando, Florida 32809



Zoning C-2 Living Area (SF) 7801

Distant to Hukoo's (mile) Across the street –

0.1 mileGross Area (SF) 9,202

7468 W Sand Lake Rd, Orlando, Florida 32809





Recent Sales

7423 S Orange Blossom Trail, Orlando, Florida 32809



Zoning C-2 Living Area (SF) 2.17

Distant to Hukoo's (mile) 1 mile Gross Area (SF) 5,952

7024 International Drive, Orlando, Florida 32819





Recent Sales

7024 International Drive

$7,800,000.00Hukoo’s

1051 Sand Lake Rd

8003 Golden Sky Ln

$5,666,900.00

5.3 mile

Across from the

street

Recent Sales Map

795 W Sand Lake Rd,

$4,899,700.00

Next door

7423 S Orange Blossom Trail

$2,731,700.00

1 mile

7468 W Sand Lake Rd

$12,078,000.00

5.6 mile

Current Tenant Overview - Hukoo’s Family Fun

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Hukoo’s Family Fun is a thriving Family

Entertainment Center located next to Florida

Mall, the largest shopping center in Central

Florida, and in close proximity to all of the

major Disney and Universal Studios theme parks.

Hukoo’s has games & attractions that appeal to

all age groups, with an emphasis on families

with young children.

In addition to serving Orlando residents this

successful Family Entertainment Center also

attracts patrons from a large cross section of the

66+ million visitors from over 197 countries that

visit Orlando every year.

Property Name Hukoo's Family Fun

Property Type Game Center

Ownership Private

Headquartered Orlando, Florida

Website www.hukoos.com/

Year Founded 2012

http://www.hukoos.com/

Current Tenant: Hukoo's Family Fun

1051 W Sand Lake Rd, Orlando, FL 32809

Lease price $300,000 per year

Lease end 12/31/2022

Leasable Area 25,000 SF

Lot Size 3.04 ACRE

Year Built 1998

Proposed New Building Development – Estimate Leasing Term

New Building Square Foot (SF) 5,000 to 10,000

Expect Tenant National Restaurant Chain

Expect Lease Rate/SF/year $40.00 to $53.60

Expect Project Finish Date 12/30/2018

Expect Lease Start Date 1/1/2019

Expect Yearly Rent $ 200,000 – $ 300,000.00

Expect Lease Type NNN

Expect Lease Term 5 to 10-year

Estimate Project cost $ 500,000

Current Rental Rate in 32809 zip code area

Business NameDistant to Hukoo's

(mile)

Lease space

(SF)

Lease Price

$ / SFLease Term

Millers Orlando Ale House

1667 Florida Mall Ave,

Orlando, FL 32809

0.9 5,592 53.60 NNN

3060 W Sand Lake Rd,

Orlando, FL 328191.8 7,995 40.00 NNN

Pricing

Pricing

1- Maximum value will be derived from leasing a 5,000 - 7,000 square foot, build-to-suit, structure to a Restaurant Tenant

The rent commencement date is expected to start on Jan 1, 2020 with a 5 to 10-year lease, 5-year option, and NNN

The market rate for a restaurant tenant is estimated to be $40/SF/Yr.

This is based on the lowest observed rental rates within a 2 mile radius of the subject property

Overview – Orange County| 32809, Orlando, Florida

Orange County is the region’s most populous county and

includes the City of Orlando, as well as twelve other

incorporated cities. The county sits in the approximate

center of the state, midway between Jacksonville and

Miami. The Tampa-St. Petersburg-Clearwater area on the

Gulf of Mexico and Daytona Beach on the Atlantic Ocean

are within easy reach. Orange County is home to the

second largest university in the United States, one of only

two national entrepreneur centers and a world-class

international airport and Lake Nona Medical City.

Sources: U.S Census Bureau, University of FL, Bureau of Economic & Business Research – April 2015 * Estimate

Radius 1 Mile 3 Mile 5 Mile

Population

2022 Projection 8,615 69,319 200,439

2017 Estimate 7,942 63,096 182,491

2010 Census 7,721 56,437 163,507

Growth 2017 - 2022 8.47% 9.86% 9.84%

Growth 2010 - 2017 2.86% 11.80% 11.61%

2017 Population

by Age

7,942 63,096 182,491

Age 0 - 4 517 6.51% 4,207 6.67% 11,771 6.45%

Age 5 - 9 528 6.65% 4,228 6.70% 11,189 6.13%

Age 10 - 14 556 7.00% 4,249 6.73% 11,061 6.06%

Age 15 - 19 579 7.29% 4,286 6.79% 11,420 6.26%

Age 20 - 24 645 8.12% 4,965 7.87% 13,762 7.54%

Age 25 - 29 665 8.37% 5,509 8.73% 15,931 8.73%

Age 30 - 34 597 7.52% 5,125 8.12% 15,119 8.28%

Age 35 - 39 547 6.89% 4,682 7.42% 13,769 7.55%

Age 40 - 44 527 6.64% 4,404 6.98% 12,898 7.07%

Age 45 - 49 512 6.45% 4,170 6.61% 12,303 6.74%

Age 50 - 54 509 6.41% 4,115 6.52% 12,239 6.71%

Age 55 - 59 461 5.80% 3,721 5.90% 11,159 6.11%

Age 60 - 64 384 4.84% 3,046 4.83% 9,245 5.07%

Age 65 - 69 308 3.88% 2,373 3.76% 7,349 4.03%

Age 70 - 74 220 2.77% 1,591 2.52% 5,024 2.75%

Age 75 - 79 158 1.99% 1,051 1.67% 3,415 1.87%

Age 80 - 84 112 1.41% 697 1.10% 2,359 1.29%

Age 85+ 117 1.47% 675 1.07% 2,480 1.36%

Age 65+ 915 11.52% 6,387 10.12% 20,627 11.30%

Median Age 34.00 34.00 35.40

Average Age 35.80 35.30 36.50

Income & Race

Sources: U.S Census Bureau, University of FL, Bureau of Economic & Business Research – April 2015

Household Income

The median age of county residents is 33.8 years with an average

annual wage of $51,700 and wage growth of 3.5%

Employment growth is forecast to average 2.5% with personal income

growth estimated at 5.8%

63.6%

4.9%

0.4%

26.9%

20.8%

6.8%

Race

Economic & Workforce

Unemployment Rate (Dec. 2015)

Orange County 3.80%

Orlando MSA 4.00%

Florida 4.40%

United States 4.50%

Employment by Industry

Labor Force

Most employment sectors will experience growth with the two

largest, Leisure & Hospitality and Professional & Business

Services expected to average annual growth rates of 2.9% and

4.1% respectively

Orlando’s retail sector remains strong, continuing to outpace

other cities in the Southeast due to sustained growth trends in

both visitor numbers and new residents

Sources: U.S Census Bureau, University of FL, Bureau of Economic & Business Research – April 2015

Orange County boasts a young, well-educated and diverse

workforce with more than 43.6% of its total population in the

key 25-54 demographic, and 21.4% with a Bachelor’s Degree.

Economic

Educational Attainment

Tax & Incentives

Tax & Infrastructure

Tax Rate

Personal Income Tax None

Personal Property (millage rate) 16.6174 - 26.7716

Corporate Income Tax 5.50%

Sales Tax 7.00%

Orange County has No Income Tax and a Low Property Tax rate of 1.18% vs. 1.21% Nationally

Following the Ad Valorem Tax Exemption program, qualifying businesses are granted temporary

county property tax exemptions of up to 100 percent for up to 10 years

County businesses also benefit from Florida’s incentive programs. The Qualified Target Industry

Tax Refund (QTI) offers refunds on corporate income, sales & intangible personal property taxes

for companies that create high wage jobs in targeted, high value-added industries.

The Capital Investment Tax Credit (CITC) gives annual credits against Florida corporate income

tax, up to 20 years, for businesses that create at least 100 jobs and have a minimum of $25

million in eligible capital investment costs. The High Impact Performance Incentive Grant (HIPI)

provides grants to businesses that create at least 50 jobs and have an accumulative investment of

$50 million in a three-year period.

With these incentive programs, Orlando’s economic growth is one of the strongest statewide and

was recently named the #1 market in the country for job creation by Forbes.

Infrastructure

Air

Orlando International Airport (MCO) is one of

the fastest growing major international

airports in the world, ranked as the second

busiest airport in Florida and 14th busiest in

the US. More than 38 million passengers

were served in 2015.

Rail

The rail transit system stretches 31 miles

from the north end of Orlando to south

Orange County near the MCO. Additional

routes from north to south of Volusia County,

and from Miami to Orlando will coming soon.

Interstates/Roadways

Orlando’s strong roadways provides

invaluable connectivity for businesses. The

Interstate 4 route will soon connect the Gulf

of Mexico to the Atlantic Ocean

Traffic Count Report

Street Cross Street Cross Str Dist Count YearAvg Daily

Volume

Volume

Type

Miles from Subject

Prop

1 Sand Lake Rd Golden Sky Ln 0.15 W 2010 46,289 MPSI 0.11

2 Sand Lake Rd Golden Sky Ln 0.15 W 2011 49,032 MPSI 0.11

3 Sand Lake Rd Skyview Dr 0.08 E 2016 39,500 MPSI 0.39

4 Sand Lake Rd Skyview Dr 0.08 E 2014 45,875 MPSI 0.39

5 Sand Lake Rd Winegard Rd 0.12 E 2016 39,952 MPSI 0.42

6 S Orange Blossom Trl Sand Lake Rd 0.11 S 2016 54,500 MPSI 0.45

7 S Orange Blossom Trl Skyview Dr 0.04 N 2011 64,219 MPSI 0.48

8 S Orange Blossom Trl Southland Blvd 0.04 N 2016 53,313 MPSI 0.48

9 S Orange Blossom Trl August Ln 0.08 S 2016 51,553 MPSI 0.53

10 Sand Lake Rd Lillwill Ave 0.08 W 2011 55,373 MPSI 0.62

Consumer Spending Report

2017 Annual Spending (000s) 1 Mile 3 Mile 5 Mile

Total Transportation/Maint. $12,926 $106,618 $337,194

Vehicle Purchases 5,274 42,337 132,373

Gasoline 5,202 42,410 132,389

Vehicle Expenses 229 2,312 7,513

Transportation 638 6,222 21,293

Automotive Repair & Maintenance 1,583 13,337 43,626

Total Health Care $2,711 $21,187 $71,043

Medical Services 1,404 11,002 36,998

Prescription Drugs 1,043 8,058 26,945

Medical Supplies 265 2,127 7,100

Total Education/Day Care $2,662 $23,534 $79,267

Education 1,969 17,068 55,892

Fees & Admissions 693 6,466 23,375

Consumer Spending Report

2017 Annual Spending ($000s) 1 Mile 3 Mile 5 Mile

Total Specified Consumer Spending $51,294 $425,792 $1,369,209

Total Apparel $3,762 $31,001 $92,476

Women's Apparel 1,382 11,443 35,402

Men's Apparel 768 6,453 19,406

Girl's Apparel 324 2,588 7,285

Boy's Apparel 223 1,813 5,030

Infant Apparel 185 1,535 4,504

Footwear 880 7,169 20,850

Total Entertainment & Hobbies $3,744 $31,753 $105,209

Entertainment 643 5,243 16,060

Audio & Visual Equipment/Service 2,079 17,806 57,790

Reading Materials 82 755 3,266

Pets, Toys, & Hobbies 941 7,950 28,093

Personal Items 3,424 30,434 101,075

Total Food and Alcohol $15,579 $127,348 $399,449

Food At Home 9,478 76,012 230,418

Food Away From Home 5,273 44,250 145,307

Alcoholic Beverages 828 7,085 23,724

Total Household $6,486 $53,917 $183,496

House Maintenance & Repair 1,358 9,691 33,646

Household Equip & Furnishings 2,842 23,530 78,753

Household Operations 1,853 16,282 55,068

Housing Costs 432 4,414 16,029

exclusive listed

Anita Nguyen


Commercial Real Estate Specialist

Tell: 561-877-0331

http://www.triapplerealtyinc.com/property/1051-sand-lake-for-sale/

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