Offering Price Offering Memorandum For Sale $3,999,000 › d2 › nSmJcwBteUxZliov... · Offering...

Offering Memorandum

For Sale

Offering Price

$3,999,000.00

Daniel NelsonCommercial InvestmentLicensed Broker Realtor®

813-323-3353 | [email protected]

Commercial Real Estate Division4175 Woodlands PkwyPalm Harbor, FL 34685

Re-Development Opportunity

40351 US Hwy 19 North

Tarpon Spring FL 34689

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of state of affairs of the Owner

or the Property. All financial projections and information are provided for general reference purposes only. Neither the Owner or REMAX Realtec Group,

nor any of their respective directors, officers, affiliates or representatives are making any representation or warranty, expressed or implied, as to the

accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this

Memorandum or use of its contents; and you are to rely solely on your own investigations and inspections of the Property in evaluating a possible

purchase of the real property.

RE/MAX is pleased to present to you the OfferingMemorandum of a 11.28 acres site with a combination ofProfessional Office Building and Professional BusinessWarehouse, Totaling 104,250 GF located in Tarpon Springs,Florida








or the Property. All financial projections and information are provided for general reference purposes only. Neither the Owner or REMAX Realtec Group.





PROPERTY DESCRIPTION & KEY HIGHLIGHTS

KEY PROPERTY HIGHLIGHTS

• Built in 1987

• Professional Office /Business Warehouse

• Rentable Building Area 104,250 SF

• 2- Two Story Office Buildings

• 1 – One story Professional Warehouse

• 11.28 Acres

• Zoned CG - General Office Bldg - multi-story

office building

• Parcel ID 18-27-16-89424-000-0134

and 18-27-16-89424-000-0160

Tarpon Lake Center is a Class C professional office/business

warehouse, owner user/investment opportunity located in Tarpon

Springs, Florida. The property consist of three buildings located on

11.28 acres of land that has plenty of surrounding parking. There are

2- two story office buildings and a one-story business warehouse

building. The 41,150 GF of professional office configurations range

from 450 to 3,600 useable sq.ft. in size. The 18,980 GF of

professional office configurations range from 2,145 to 7,700 useable

sq.ft. in size. The one-story business warehouse building of 44,120

GF business office/warehouse configurations range from 1,000 to

5,000 useable sq.ft. in size, totaling 104,250 gross square feet. The

buildings were constructed in 1987 with concrete block, steel trusses

and corrugated metal roof. The owner user and/or investor has the

ability to re- develop the property and/or modernize the office

building capitalizing on current market rents, increasing the

potential income stream. The property is situated on US Highway

North adjacent to Pinellas County’s Anderson Park and Recreation

Area and Salmon Bay access to Tarpon Lake. Easy access on US

Highway 19 North with ample ingress and egress. Tarpon Lakes

Center represents an investment opportunity in a high-growth

submarket with flexible ownership structure to operate as an

Investor/Owner User or re-develop the entire property for a stabilize

up and coming investment.

PROPERTY DESCRIPTION
















RE/MAX is pleased to present to you the Offering Memorandum for a 6 unit Medical Office Building located in Port Richey, Florida.













41,150 SF Business Warehouse Building-South East Section view

41,150 SF Business Warehouse Building-North East Section view













41,150 SF Business Warehouse Building-South West Section view

41,150 SF Business Warehouse Building-North West Section view

18,980 SF Office Building




4620 N. Habana Blvd

Tampa, FL 33614










Existing Pylon Sign New Pylon Sign Design Option

DEMOGRAPHIC SUMMERY

WHY TARON SPRINGS?

Tarpon Springs is not just a great place to visit, but also wonderful location to put down permanent roots and business. There are several reasons why people relocate to this area:

➢ First Class healthcare facilities

➢ Excellent education institutions

➢ Close proximity to the Tampa/St. Petersburg areas

➢ Walkable environment

➢ The area caters to families and retirees

MAJOR EMPLOYERS➢ Helen Ellis Memorial Hospi1al

➢ SI.Lukes Cataract & Laser Institute

➢ The Westin Innisbrook Resort

➢ ABC Packaging Machine Corporation

➢ Acme Sponge & Chamois Company

➢ Stamas Yachts

➢ Hawkins Construction

➢ Tarpon Stainless Fabricators

➢ NuWaveSpaControls




4620 N. Habana Blvd

Tampa, FL 33614







RADIUS FROM PROPERTY 1 MILE 3 MILE S MILE

POPULATION

2021Projection 6,199 5S,571 118,916

2016 Estimate 5,895 52.673 114,030

HOUSEHOLDS

2021 Projection 2.669 23.915 50.254

2016 Estimate 2,546 22,794 48.441

Owner Occupied 63.3% 7:J.2% 75.6%

Renter Occupied 367% 26.7% 24.4%

INCOME

2016 Average HH Income $51,754 $58,057 $73,610

2016 Median HH Income $33,710 $ 39,574 $31.347







4620 N. Habana Blvd

Tampa, FL 33614













4620 N. Habana Blvd

Tampa, FL 33614







in Port Richey, Florida.




The current blended office vacancy is approx. 50.21%, identified as follows;

➢ 61 % vacancy of the 33,300 usable sq.ft. Professional Office➢ 44 % vacancy of the 17,645 usable sq.ft. Professional Office➢ 21 % vacancy of the 43,375 usable sq.ft. Business Warehouse

Current Financial Conditions

RE/MAX RealTec Group Current Rent Roll

4175 Woodlands Pkwy

Palm Harbor, Florida 34685 Professional Office Building Daniel Nelson

Cell 813-323-3353 40351 US Highway 19 N. Tarpon Springs

Total Monthly Rent $31,716.34

Total Annual Rent $380,596.08

***Operating expenses are part of current the current lease rates. Utilities ColumnTenants are responsible for their respective utilities. Sales tax not included in mathamatics below.

Bldg VacancyYear

BuiltSQ.FT Unit Type

Average

Sq.Ft. Rate

Average

Operating

Expense

Total Gross

Sq.Ft. CollectedMarket Rent

Monthly

Electricity

Monthly

UtilitiesTotal Annual Rent

1 1987 13,050 Office 7.96 1.75 9.71 $10,564.48 Extra Included $126,773.76

1 61% 20,250 Office $0.00 $0.00

33,300 Total


2 44% 7,700 Office $0.00 $0.00

17,645 Total

3 1987 34,375 Warehouse 3.91 1.87 5.79 $16,275.17 Extra Included $195,302.04

3 21% 9,000 Warehouse $0.00 $0.00

43,375 Total






4620 N. Habana Blvd

Tampa, FL 33614











RE/MAX RealTec Group Current Operating Expense 4175 Woodlands Pkwy



Annual Rental Income-Current $380,596.08

Fixed Expenses (2017)

Property Taxes $45,276.62

General Liability Insurance $33,760.02

Building/Tenent Improvements $31,046.69

others $3,769.74

Total $113,853.07

Variable Expenses

Property Mgmt Fees (3%) $12,777.96

Repairs and Maintenance

Water/Sewer

Trash

Electric

Combined Operating Expenses $143,577.66

Total $156,355.62

Total Operating Expenses $270,208.69

Estimated Net Income $110,387.39

**Note: Total Operating Expenses does include an amount for annual repairs.

The current expenses are costing approx. 270,208.89 allocated to 55,125 useable sq.ft. The Owner collected approx. $1.74 per sq.ft. in expenses which is a short fall of approx. 1.43 per sq.ft. The shortfall expense deficit is adjusted in the projected rent roll. The expense allocation is as follows;

➢ $1.75 of expenses applied to 13,050 usable sq.ft. of Professional Office➢ $1.60 of expenses applied to 7,700 usable sq.ft. of Professional Office➢ $1.87 of expenses applied to 34,375 usable sq.ft. of Business Warehouse





4620 N. Habana Blvd

Tampa, FL 33614











Highlighted in green is the base line. The current cap rate is 2.83%. 71% of annual income is allocated to expenses. At the current level simply increasing rents by 5% or 10 % revealsa 3.32% cap rate or 3.81 cap rate, respectively.

Implementing a strategy to attract additional Tenants and keeping current rental rates unchanged is key for a successful investment..


RE/MAX RealTec Group Current Rents + NOI + Cap Rate Calculations

4175 Woodlands Pkwy Palm

Harbor, Florida 34685 Professional Office Building Daniel Nelson


Purchase Price $3,900,000.00

Annual Rental Income $380,596.08

Other Income (Late Fee, etc)

Total Operating Income $270,208.69

Net Operating Income $110,387.39

Cap Rate 2.83%

Projected Annual Rental Income $380,596.08

Potential Increase 5% $399,625.88


Projected Rental Income Projected Rental Income (5% Increase) Projected Rental Income (10% Increase)

Operating Expences % Total Operating ExpencesNOI Cap Rate NOI Cap Rate NOI Cap Rate

81% $308,268.30 $72,327.78 1.85% $91,357.59 2.34% $110,387.39 2.83%

76% $289,238.49 $91,357.59 2.34% $110,387.39 2.83% $129,417.19 3.32%

71% $270,208.69 $110,387.39 2.83% $129,417.19 3.32% $148,447.00 3.81%

61% $232,149.08 $148,447.00 3.81% $167,476.80 4.29% $186,506.61 4.78%

***All Data is Based on Projected Rent Roll and Current/Future Expense Estimates




4620 N. Habana Blvd

Tampa, FL 33614











The projected income is based on increasing Tenancy at the current rental rate and collectingthe 1.43 per sq.ft. of expense deficit. In addition, maintaining a 10% vacancy industry standardis applied.

Projected Financial Conditions

RE/MAX RealTec Group Projected Rent Roll

4175 Woodlands Pkwy





***Utilities ColumnTenants are responsible for their respective utilities. Sales tax not included.

Bldg VacancyYear

BuiltSQ.FT Unit Type

Average

Sq.Ft. Rate

Operatiing

Expense

Increase

Adjusted

Average Sq.Ft.

Rate

Market RentMonthly

Electricity

Monthly

UtilitiesTotal Annual Rent


1 10% 3,330 Office $0.00 $0.00

33,300 Total


2 10% 1,765 Office $0.00 $0.00

17,645 Total

3 1987 39,038 Warehouse 5.79 1.43 7.22 $23,477.35 Extra Included $281,728.19

3 10% 4,338 Warehouse $0.00 $0.00

43,375 Total






4620 N. Habana Blvd

Tampa, FL 33614











The design concept is indented to provide a modernized open office esthetics as a strategy to attract new Tenants. The main components to the economical renovation are;➢ Remove stucco walls and banding around structural columns, parapet, stairways and halls.➢ Replace windows and doors to typical storefront environment keeping all lintels in place. ➢ Create glass feature around existing stairways and create a new parapet roof facade.➢ Artistic multi paint color enhances the modern look and re-asphalt all parking areas.➢ Warehouse Business office remains the same, only painting.


RE/MAX RealTec Group Projected Operating Expense 4175 Woodlands Pkwy



Annual Rental Income-Current $758,850.96

Fixed Expenses (2017)

Property Taxes $45,276.62

General Liability Insurance $33,760.02

Building/Tenent Improvements $31,046.69

others $3,769.74

Total $113,853.07

Variable Expenses

Property Mgmt Fees (3%) $12,777.96

Repairs and Maintenance

Water/Sewer

Trash Anticipated Operating Expenses Increase 51,076.08

Combined Operating Expenses $143,577.66

Total $207,431.70

Total Operating Expenses $321,284.77

Estimated Net Income $437,566.19

**Note: Total Operating Expenses does include an amount for annual repairs.




4620 N. Habana Blvd

Tampa, FL 33614











An initial investment to achieve curb appeal can increase Tenancy, addressing the current office vacancy. A conservative income approach, maintains the current market rent structure with a slight adjustment for the actual common area maintenance cost, however developing a product that is esthetically pleasing for a Tenant to business out of. Obtaining a 90% Tenancy goal increases the cap rate to 11.22%, highlighted in the green baseline. Increasing the NOI by 5% or 10% and reducing expenses by 10%, provides for a 14.14 % or 15.11% cap rate, respectively.


RE/MAX RealTec Group Projected Rents + NOI + Cap Rate Calculations

4175 Woodlands Pkwy Palm

Harbor, Florida 34685 Professional Office Building Daniel Nelson


Purchase Price $3,900,000.00

Annual Rental Income $758,823.98

Other Income (Late Fee, etc)

Total Operating Income $321,284.77

Net Operating Income $437,539.21

Cap Rate 11.22%

Projected Annual Rental Income $758,823.98



Projected Rental Income Projected Rental Income (5% Increase) Projected Rental Income (10% Increase)

Operating Expences % Total Operating ExpencesNOI Cap Rate NOI Cap Rate NOI Cap Rate

52% $397,167.17 $361,656.81 9.27% $399,598.01 10.25% $437,539.21 11.22%

47% $359,225.97 $399,598.01 10.25% $437,539.21 11.22% $475,480.41 12.19%

42% $321,284.77 $437,539.21 11.22% $475,480.41 12.19% $513,421.61 13.16%

32% $245,402.37 $513,421.61 13.16% $551,362.81 14.14% $589,304.01 15.11%

***All Data is Based on Projected Rent Roll and Current/Future Expense Estimates

Offering Price Offering Memorandum For Sale $3,999,000 › d2 › nSmJcwBteUxZliov... · Offering...

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