Sebring Shoppes OFFERING MEMORANDUM · Mike Milano, CCIM, MAI and Sean Glickman, CCIM, with the...

An excellent opportunity to acquire a well-located NNN strip center that produces a stable income stream from three credit-worthy tenants.

Sebring Shoppes | OFFERING MEMORANDUM

COLLIERS INTERNATIONAL 2SEBRING SHOPPES | OFFERING MEMORANDUM

CONTACT

Chris SmithSenior Associate Retail Investment Services407 362 [email protected]

Brandon RaponeSenior Associate Retail Investment Services407 362 [email protected]

Sean Glickman, CCIMExecutive Managing Director Retail Investment Services407 362 [email protected]

Mike Milano, CCIM, MAIExecutive Managing Director Retail Investment Services727 298 [email protected]

Property Overview 4

Executive Summary 6

Investment Highlights 7

Property Overview 8

Site Plan 9

Aerials 10

Property Photos 12

Financial Analysis 16

Tenant Summary 20

Market and Area Overview 24

The Milano-Glickman Team 26

Table of Contents


US Highway 27 N | 41,000 AADT

Thunderbird Rd | 2,100 AADT

Property Overview


Executive Summary

Mike Milano, CCIM, MAI and Sean Glickman, CCIM, with the Milano–Glickman Retail Team and Executive Managing Directors at Colliers International are proud to offer

for sale the Sebring Shoppes, a newly constructed 6,600 SF NNN retail strip center. The property is 100% occupied by three (3) national/regional tenants that feature

ten (10) year NNN leases. This is a great opportunity to acquire a well-located asset that produces a stable income stream from three credit-worthy tenants.

PRICING SUMMARY

NOI $215,803

Cap Rate 6.7%

Price $3,220,943

OFFERING PROCEDUREInterest Offered 100% Fee Simple

Financing The property will be offered free and clear of existing debt.

Timing Immediately accepting offers. There is no call for offers date scheduled.

Required DocumentsAll prospective purchasers should submit a written LOI. Additionally, please submit a brief bio, schedule of real estate owned, and proof of funds.

Site VisitAll prospective purchasers are encouraged to visit the property prior to submitting an offer. Please contact agents to schedule a site visit.

PROPERTY DETAILS

Location 2058-2076 US Highway 27 NSebring, FL 33870

GLA 6,600 SF

Occupancy 100%

Year Built/Renovated 2018

Units 3

Lot Size 0.96± Acres

Traffic Counts US Hwy 27 41,000 AADT

Key TenantsMattress OneKay JewelersJersey Mike’s

3,200 SF2,200 SF1,200 SF


DEMOGRPAHICS 1-Mile Radius 3-Mile Radius 5-Mile Radius

Total Population 5,003 24,747 45,262

Daytime Population 6,081 26,287 48,696

Average Household Income $56,401 $55,670 $53,681

WELL LOCATED IN A HIGH TRAFFIC RETAIL CORRIDOR

• Outparcel to Lowe’s Home Improvement.

• Close proximity to the Lakeshore Mall, a 495,972 SF enclosed mall.

• Adjacent to a 236,098 SF power center, Sebring’s dominant retail destination.

• US Hwy 27 is the main north/south roadway in Sebring and a majority of the national retailers center around this road.

EXCELLENT LINEUP OF NATIONAL/REGIONAL CREDIT-WORTHY TENANTS

• Mattress One and Kay Jewelers have corporately guaranteed leases.

• Jersey Mike’s has a guarantee from a strong franchisee with a high net worth.

• Kay Jewelers (3,500 locations), Jersey Mike’s Subs (1,500 locations), and Mattress One (300 locations) are nationally/regionally recognized brands.

BRAND-NEW CONSTRUCTION WITH IDEAL LEASE TERMS

• Quality new construction with little to no expected capital expenditures within the first few years of ownership.

• All tenants have ten (10) year leases with ten percent (10%) increases every five (5) years.

• All leases are structured as triple net (NNN) so there is minimal expense slippage for the new owner.

• Passive investment that requires minimal landlord obligations.


Site Plan

SUITE TENANT RSF

2058 Mattress One 3,200

2066 Jersey Mike's 1,200

2076 Kay Jewelers 2,200

6,600 SF

2076

2066

2058



Site Plan (Aerial View)



Photos


Aerial View




Surrounding Retail Map

SITE

S

LAKE SHORE MALL



Sebring Parkway

Financial Analysis


TENANT INFORMATION BASE RENT EXPENSE REIMBURSEMENTS

Tenant Unit Size (SF)

Prorata Share

Lease Start

Lease Expiration Term Date P/SF Monthly

Base RentAnnual

Base RentPercent Increase Reimbursement Method P/SF Annual

ReimbursementGross Annual

IncomeMattress One 2058 3,200 48.48% Apr-19 Apr-29 Current - $32.00 $8,533 $102,400 - CAM Pro-rata (5% Cap) $6.65 $21,277 $123,677

(Corporate) Nov-23 $35.20 $9,387 $112,640 10% RE Tax Pro-rataOption 1 May-29 $38.72 $10,325 $123,904 10% Insurance Pro-rataOption 2 May-34 $42.59 $11,357 $136,288 10% Management Pro-rata

Option 3 May-39 $46.85 $12,493 $149,920 10%

End Apr-44 - - - -

Jersey Mike's(Franchise)

2066 1,200 18.18% Feb-19 Feb-29 Current - $29.00 $2,900 $34,800 - CAM Pro-rata + 15% (5% Cap)

$6.06 $7,267 $42,067

Mar-24 $31.90 $3,190 $38,280 10% Tax Pro-rata

Option 1 Mar-29 $35.09 $3,509 $42,108 10% Insurance Pro-rata

Option 2 Mar-34 $38.60 $3,860 $46,320 10% Management None

Option 3 Mar-39 $42.46 $4,246 $50,952 10%

End Feb-44 - - - -

Kay Jewelers(Corporate)

2076 2,200 33.33% Jan-19 Dec-29 Current - $36.25 $6,646 $79,750 - CAM Pro-rata + 15% (5% Cap)

$7.00 $15,393 $95,143

Feb-24 $39.87 $7,310 $87,714 10% Tax Pro-rata

Option 1 Jan-30 $43.86 $8,041 $96,492 10% Insurance Pro-rata

Option 2 Jan-35 $48.24 $8,844 $106,128 10% Management Pro-rata

End Dec-39 - - - -

TOTAL 6,600 100% 216,950 43,937 260,887

Total Overall Occupancy 6,600 100.0% * Lowes CAM reimbursement: Non-restaurant tenants (Kay Jewelers and Mattress One) reimbursement is based on $0.50/SF of their space and restaurant tenants (Jersey Mike’s) reimbursement rate is based on $1.50/SF of their space.

Gross Annual Income $260,887

Total Overall Vacancy 0 0.0% Expenses $45,084

TOTAL SPACE 6,600 100% Current, In-Place NOI $215,803

Investment Analysis


Investment Analysis

EXPENSE SUMMARY

Expense P/SF Based On

Reimbursable Expenses

Cam

Repair/Cleaning 600 $0.09

Landscaping Services 1,200 $0.18

Cam Repair & Maintenance 1,920 $0.29

Electric / parking lot lights 400 $0.06

Electric / building lights 300 $0.05

Electric / irrigation 200 $0.03

Water 4,200 $0.64

Maintenance of utility lines 360 $0.05

Trash Pickup 2,100 $0.32

Lowe's Cam Contribution 4,500 $0.68

Cam 15,780 $2.39 Owner’s estimate

Taxes 12,000 $1.82 Owner’s estimate

Insurance 5,304 $0.80 Owner’s estimate

Property Management 12,000 $1.82 $1,000/month

Total Reimbursable Expenses 45,084 $6.83

DIRECT CAPITALIZATIONScheduled Base Rent $216,950

Expense Recoveries $43,937

Effective Gross Revenue $260,887

Total Expenses $45,084

Net Operating Income $215,803 Cap Rate 6.70%Price $3,220,943

Since this property is newly constructed there is no operating history. The amounts used for real estate taxes, insurance and Lowe’s CAM contribution are based on current actual costs. The amounts used for scheduled services like landscaping and trash pick-up are based on agreements with the respective vendors. The balance of the expenses are estimates based on the developer’s budget for these services.

Tenant Summary


Tenant Summary

Mattress1One | Mattress1.com

Company OverviewMattress1One is a quality mattress retailer and is amongst the most trusted names in mattress retailers throughout the

Southeast. In addition to carrying all the major brands including Tempurpedic, Sealy, Serta, Stearns & Foster, and

Simmons, customers enjoy perks such as price match guarantee, 180 day in-home trial, financing options, and free fast

delivery. The subject location is a clearance center that offers significantly discounted prices for top quality brands. The

company has now grown to more than 300 locations in Florida, Texas and Georgia.

Kay Jewelers | Kay.com

Company OverviewKay Jewelers is a one of the brands owned by Signet Jewelers (NYSE: SIG), the world’s largest retailer of diamond jewelry. They operate over 3,500 stores in the US, UK and Canada under the names of KAY Jewelers, Zales, Jared The

Galleria Of Jewelry, H.Samuel, Ernest Jones, Peoples, Piercing Pagoda and JamesAllen.com. Signet believes customers

associate their brands with high quality jewelry and an outstanding customer experience. Signet increases the attraction

of Signet’s store brands to customers through the use of branded, differentiated and exclusive merchandise, while

offering a compelling value proposition in more basic ranges.

Jersey Mike’s | JerseyMikes.com

Company OverviewJersey Mike’s Subs is a submarine sandwich chain that serves a variety of sandwiches made to order, slicing the meats

and cheeses as needed. The original store opened in 1956, and the current CEO purchased the company in 1975. Since

then, the company has grown to almost 1,504 franchise locations and about 124 more in development across the United

States with five additional locations outside the U.S.

http://MapleStreetBiscuits.com

http://MarlowsTavern.com

http://MapleStreetBiscuits.com

Market & Area Overview


TRADE AREA OVERVIEWSebring is located in the middle of Florida roughly two (2) hours south of Orlando, one and a half (1.5) hours from the east coast, and two (2) hours from the west coast. Sebring is the county seat of Highlands County and is the main city of the Sebring MSA.

Sebring is best known for the Sebring International Raceway, one of the oldest continuously operating race tracks in the U.S. Its first race ran in 1950 after it was converted from a former airbase. The track itself is a 3.74 mile, seventeen-turn road course with long straights, several high-speed corners, and very technical slower corners. Sebring is most notable for hosting the 12 Hours of Sebring as part of many major endurance racing series, including the World Sportscar Championship, Intercontinental Le Mans Cup, ALMS, and now, the WeatherTech SportsCar Championship.

Sebring has no interstate highways, but U.S. Route 27 (cosigned with U.S. Route 98 in Sebring) is the major artery providing access to the rest of the state. Sebring Regional Airport is located a few miles southeast of the city and provides general aviation facilities for Sebring. The city is served by Amtrak from the Sebring station; the daily service to Sebring consists of two trains each from the Silver Meteor and Silver Star, heading south to Miami and north to Tampa, Orlando and New York City. The South-Central Florida Express railroad connects to the CSX line in Sebring, allowing transportation of sugar from Clewiston to the rest of the country.

Among other major attractions in Sebring is the Highlands Hammock State Park, a 9,000-acre park 4 miles west of Sebring. Elevated boardwalks meander through an old-growth bald cypress swamp with cabbage palmettos, ferns, bromeliads, orchids and other epiphytes. Some trees are believed to be over a thousand years old, and one is possibly the largest oak in Florida, with a girth of over 36 feet. White-tailed deer, American alligators, gopher tortoises, frogs, otters, golden silk spiders, pileated woodpeckers, red-shouldered hawks, barred owls and Florida scrub jays are common in the park. Florida black bears, bald eagles, white ibis, gray squirrels, bobcats and the rare Florida panther are seen on occasion.

Market & Area Overview

2058-2076 US 27 N | SEBRING, FL 33870

1-Mile Radius 3-Mile Radius 5-Mile Radius

POPULATION & GROWTH

Total Population 5,003 24,747 45,262

Daytime Population 6,081 26,287 48,696

Population Growth %, 2018-2023 0.09% 0.34% 0.46%

INCOME

Average Household Income $56,401 $55,670 $53,681

Median Household Income $39,982 $40,282 $38,305

OTHER DEMOGRAPHICS

Total Households 2,407 11,408 20,482

Households w/Income $50k+ 920 4,427 7,655

Average Household Size 2.08 2.15 2.16

Median Age 60.5 59.4 57.0

RACE & ETHNICITY

White Population % 87.0% 85.4% 81.1%

Black Population % 5.3% 6.2% 9.7%

Hispanic Population % 14.7% 15.1% 16.2%

Asian Population % 1.6% 1.9% 1.8%

HOUSING

Owner Occupied Units 1,914 8,676 14,551

Accelerating success.

The Milano-Glickman TeamAfter years of experience with top line commercial projects, we have become the foremost retail experts in both private capital and institutional investment services throughout the southeast.

Your Trusted Advisors

We aspire to fully represent the vision of Colliers International by serving our clients’ best interests.

PEOPLE. CREATIVITY. PARTNERSHIP.A CULTURE OF CARING.

At Colliers, we bring the personal touch with hands-on help, with deep expertise. We build upon Colliers’ spirit of providing the best client service with a fully-integrated retail service strategy. This accelerates our ability to collaborate and better serve our clients, and will help more effectively connect them with our retail advisory-strategic services, management expertise, brokerage, and investment sales. With this client-centric arrangement, we can leverage the company’s talent and resources to drive even greater success for you.

Mike Milano, CCIM, MAIExecutive Managing Director

Sean Glickman, CCIMExecutive Managing Director

www.milanoglickman.com

Accelerating success.Central Florida

Tara ParontoAssociate

Brandon RaponeSenior Associate

Chris SmithSenior Associate

Abby CroninAnalyst

Tom HallSenior Analyst

Andrea DerrickClient Services

Chris ForehandClient Services

MILANO GLICKMAN // RETAIL INVESTMENT TEAM // Orlando // Tampa

POSITIONING PROPERTIES TO ENHANCETHE LIFE CYCLE OF YOUR ASSETSDepth of services, an integrated approach. You want the most from your property investment, and our team brings it to you. At more than 554 offices worldwide, Colliers offers landlords a service that embraces a thoughtful process:

> Strategic Advisory and Consulting Services

> Real Estate Management Services

> Comprehensive Leasing Services

> Disposition and Acquisition

> Capital Markets and Valuation

> Debt and Equity Services

> Comprehensive and Fully Independent Valuations

> Development Services

The result? You get the most from your property and investment. At Colliers, we pay attention and take advantage of the current market and property efficiencies and inefficiencies in order to capture untapped value through creative problem solving. Becoming a key stakeholder with clients, retailers, and the community emphasizes the continuum and the life cycle of the asset.

RETAIL LEASING

JoannaRobinson

GennyHall

LisaMcCaffrey

StephanieAddis

MichaelStrober

DonaldJennewein

NathanLynch

CAPITAL MARKETS

CONFIDENTIALITY & DISCLAIMER STATEMENTThis Offering Memorandum contains select information pertaining to the business and affairs of SEBRING SHOPPES. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Colliers International from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree:

1) The Offering Memorandum and its contents are confidential;

2) You will hold it and treat it in the strictest of confidence; and

3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of SEBRING SHOPPES or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

Sebring Shoppes OFFERING MEMORANDUM · Mike Milano, CCIM, MAI and Sean Glickman, CCIM, with the...

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