OFFERING Memorandum · considering whether to pursue negotiations to acquire 3850-3860 Colonial...

OFFERINGMemorandum

COLONIAL EXECUTIVE CENTER3850-3860 COLONIAL BLVD, FORT MYERS, FL 33966

http://www.creconsultants.com/

This Confidentiality Agreement is to be signed by you prior to the release of an Offering Memorandum. The Offering Memorandum is intended solely for your limited use inconsidering whether to pursue negotiations to acquire 3850-3860 Colonial Boulevard (the “Property”) located in Fort Myers, Florida.

The Offering Memorandum contains brief, select information pertaining to the business and affairs of the Property and has been prepared by CRE Consultants (“Broker”). Itdoes not, however, purport to be all-inclusive or to contain all of the information, which a prospective buyer and their agent(s) may desire. Neither Owner nor Broker or any oftheir officers, employees, agents, or advisors make any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or anyof its contents, and no legal liability is assumed to be implied with respect thereto. By acknowledgment of your receipt of the Offering Memorandum, you agree that theOffering Memorandum and its contents are confidential, that you will hold and treat it in the strictest of confidence, that you will not directly or indirectly disclose, or permitanyone else to disclose, the Offering Memorandum or its contents to any other person, firm, or entity (including, without limitation, any principal for whom you have beenengaged), without prior written authorization of Owner or Broker and that you will not use or permit to be used the Offering Memorandum or its contents to be copied or usedin any fashion or manner detrimental to the interest of Owner. Photocopy or other duplication is strictly prohibited.

OWNER EXPRESSLY RESERVES THE RIGHT AT OWNER’S DISCRETION TO REJECT ANY OR ALL PROPOSALS OR EXPRESSIONS OF INTEREST IN THIS PROPERTY AND TOTERMINATE DISCUSSION WITH ANY PARTY AT ANY TIME WITH OUR WITHOUT NOTICE. THE OFFERING MEMORANDUM SHALL NOT BE DEEMED TO REPRESENT THESTATE OF AFFAIRS OF THE PROPERTY OR CONSTITUTE AN INDICATION THAT THERE HAS BEEN NO CHANGE IN THE BUSINESS OR AFFAIRS OF THE PROPERTY SINCETHE DATE OF PREPARATION OF THIS MEMORANDUM.

The information provided in the Offering Memorandum has been gathered from sources that are deemed reliable, but the Owner and Broker do not warrant or represent thatthe information is true or correct. Prospective offerors are advised to verify information independently. The Owner reserves the right to change the price, or any information inthe Offering Memorandum or to withdraw the property from the market at any time, without notice. The Offering Memorandum is not to be construed as an offer or as any partof a contract to sell the property. Furthermore, the inclusion or exclusion in the Offering Memorandum of information relating to asbestos or any other hazardous, toxic ordangerous chemical item, waste or substance (hereinafter collectively referred to as “Waste”) relating to the Property shall in no way be construed as creating any warranties orrepresentations, expressed or implied, by the Owner or its agents as to the existence or nonexistence or nature of Waste in, under or on the Property. You are hereby advised toobtain professional assistance such as from a consultant, engineer and/or attorney prior to taking an interest in the Property or a part thereof. In addition, you acknowledge thatif you are acting as a principal, you or any of your subsidiaries or affiliates purchasing the property may not act as a principal and broker for this transaction, and you will haveno claim for a commission, finder’s fee or other type of compensation from the Owner or CRE Consultants.

EXCLUSIVE INVESTMENT ADVISORENN LUTHRINGER, CCIM [email protected]

3850-3860 COLONIAL BOULEVARD| CONFIDENTIALITY DISCLAIMER

2

CONTENTS

2 FINANCIAL ANALYSIS

3 MARKET OVERVIEW

1 PROPERTY DESCRIPTION

SECTION

PAGE

COLONIAL EXECUTIVE CENTER

FULLY LEASED INVESTMENT OFFERING

LEASES WITH VARYING EXPIRATIONS REDUCE ROLL OVER EXPOSURE

SUPERIOR CENTRAL FORT MYERS LOCATION

UPSIDE RENTAL RATE POTENTIAL

DIVERSE TENANT MIX

Address 3850-3860 Colonial BoulevardFort Myers, FL

Building Area Building 1: 13,423± SFBuilding 2: 14,907± SFTotal: 25,028± SF

Land Size 1.83± Acres

Year Built 2005

Occupancy 100%

NOI (2021) $375,709

Zoning CG – Commercial General (Lee County)

FULLY LEASEDOFFICE BUILDINGSCOLONIAL CORRIDOR

3PAGE

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OFFERING HIGHLIGHTS

PAGE

High quality construction offered at below replacement cost

Strong market-area and trade area fundamentals for all sectors

Outstanding tenant mix of local/regional/national tenants

Property is very well maintained with no known deferred maintenance

Stabilized triple net investment portfolio

Southwest Florida reflects the overall sustained growth in the Sunshine State

Driven by attractive tax structure, favorable climate, quality of life amenities

PAGE

THE OPPORTUNITYCRE is pleased to offer for sale Colonial Executive Park, a25,028± square foot office center leased to a diverse groupof tenants ranging from government services to medicalusers.

The building configuration is designed to allow externalaccess to all units affording flexible configurations as well asall usable square footage to be rentable space. The buildingis fully sprinklered and has an elevator for second flooraccess. Ample parking of 4.0 per 1,000.

The campus is strategically located on Colonial Blvd, east ofMetro Parkway and Veronica Shoemaker Boulevard.

The center has 6 tenants in 7 spaces in two buildings.

The center is 100% occupied:

3850 Colonial Blvd: 13,423± sf with 3 tenants | 4 spaces

3860 Colonial Blvd: 14,907± sf with 3 tenants | 3 spaces

Total: 25,028± sf with 6 tenants | 7 spaces

INVESTMENT SUMMARY

The property offers investors steady income growth potential,with variable, favorable annual escalations—the main driverof which is contractual annual rent increases in a majority ofthe leases.

Furthermore, very limited availability of office product existsin the immediate trade area within 1 one of the subjectproperty. This property is uniquely positioned to continue toattract tenants at a lower overall occupancy cost than can beachieved elsewhere in the market.

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SECTION

PAGE

PARCEL #: Both buildings are on the same strap #32-44-25-P4-00100.0120

RE TAXES: $30,557.97 (2019)

PROPERTY DETAILS

TOTAL LAND AREA: 1.83± Acres (79,715± SF)

YEAR BUILT: 2005

ZONING: CG (Commercial General)

Square Feet & Occupancy

25,028± SF | 100%

Parking Ratio

4.42/1,000 SF

Spaces7 Units in 2 Buildings

2021NOI

$375,709

Asking Price$5,750,0006.5% CAP

Asking PricePer Square Foot

$229.75

LocationColonial Blvd, East of

Metro Parkway

PAGE


PHOTOS

PAGE

UNIT PLAN

3860 BUILDING

UNIT TENANT RSF

100 Paychex North America, Inc. 6,275

200 Telespecialists, LLC 4,175

201 Titan Wellness Center of Ft Myers 2,082

3850 BUILDING

UNIT TENANT RSF

100 PAE Professional Services, Inc. 6,248

200 Treeline Realty Corp. 3,250

201 Apex Roofing and Restoration LLC 1,518

202 Apex Roofing and Restoration LLC 1,480

BUILDING BUILDING

FLOOR

FLOOR

PAGE


LOCATION DESCRIPTION

Colonial Executive Center is ideally-located directly on Colonial Blvd in between S Cleveland Ave and I-75. The property sits less than a mile east

of Veronica Shoemaker Blvd and a little over 2.0 miles west of I-75. The parcel features approximately 450 feet of frontage on main arterial

Colonial Blvd—one of the County’s busiest east-west thoroughfares with both existing and new developments spanning from high-end residential

to integral commercial projects.

2019 DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

EST. POPULATION 5,702 49,214 130,228

EST. HOUSEHOLDS 2,618 20,361 54,682

EST. MEDIAN HOUSEHOLD INCOME $50,296 $45,876 $50,222

TRAFFIC COUNTS 60,000 AADT

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SECTION

PAGE


Property Description

PURCHASE INFORMATION

PROPERTY TYPE Office Complex

PURCHASE PRICE $5,750,000

SPACES6 Tenants in 7 Units2 Buildings

OCCUPANCY 100%

RESALE VALUATION 6.5% (NOI: $375,709)

INCOME & EXPENSES

MONTHLY BASE RENT $31,309.00

MONTHLY CAM RECOVERABLE $11,849.86

TOTAL ANNUAL INCOME $517,907.30

ANNUAL 2020 OPERATING EXPENSES ($142,198.34)

ANNUAL NET OPERATING INCOME (January 2021)

$375,709.00

ANALYSIS DATE: January 2021

INVESTMENT DETAILS

INVESTMENT HIGHLIGHTS

The asset is being offered below replacement cost in a market with exceedingly strong fundamentals included limited supply, growingdemand, and stable economic engines (e.g. airports, residential base, income levels, and significant private and public operations)—anideal option for investors seeking a stabilized in-place income opportunity.

The subject is well-maintained, strategically-located with a widely-diverse selection of tenants in place.

2021 net operating income is $375,709 at 100% occupancy yet some tenants in place at lower than market rent—an indication of near-term upside in rents for new ownership.

PAGE


TENANT ANNUAL SCHEDULED INCOME

Actual

Annual Base Rent $375,709.00

ANNUAL POTENTIAL INCOME

Gross Potential Base Rental $375,709.00

Reimbursables $142,198.34

Effective Gross Income $517,907.30

Less: Expenses ($142,198.34)

Net Operating Income $375,709.00

ANNUALIZED EXPENSES

Insurance $20,206.97

Property Management Fees $23,858.43

Cleaning & Maintenance $20,088.54

Janitorial $ 4,826.13

Real Estate Taxes $34,347.74

Repairs $19,515.17

Storage Fees $ 2,102.76

Association Dues $ 8,424.64

Communications $ 2,200.83

Fire and Security $ 2,893.62

Utilities $ 8,498.59

Total Expenses $142,198.34

Expenses Per RSF $5.68

FINANCIALS

PAGE


RENT ROLL | JANUARY 2021

UNIT TENANTUNIT SIZE

MONTHLY BASE RENT

ANNUAL BASE RENT

BASE PRSF*

START DATE

EXPIRATION DATE

ANNUAL INCREASES

100 PAE Professional Services, Inc. 6,248 $14,318.00 $171,816.00 $27.50 01/01/2019 12/31/2023 Variable

200 Treeline Realty Corp. 3,250 $2,800.00 $33605.00 $10.34 03/01/2018 05/31/2021 Variable

201 Apex Roofing and Restoration LLC 1,518 $1,423.00 $17,078.00 $11.25 10/01/2019 09/30/2023 $0.50 psf /year

202 Apex Roofing and Restoration LLC 1,480 $1,388.00 $16,656.00 $11.25 10/01/2019 09/30/2023 $0.50 psf/year

3850 BUILDING TOTAL 12,496 $19,929.00 $239,148.00 $19.14

100 Paychex North America, Inc. 6,275 $6,061.00 $72,732.00 $11.59 12/01/2019 11/30/2021 Variable

200 Telespecialists, LLC 4,175 $3,584.00 $43,002.00 $10.30 03/21/2019 05/31/2024 3.0%

201 Titan Wellness Center of Ft Myers 2,082 $1,735.00 $20,820.00 $10.00 08/08/2016 08/31/2021 Variable

3860 BUILDING TOTAL 12,532 $11,380.00 $136,560.00 $10.90

GRAND TOTAL 25,028 $31,309.00 $375,709.00 $15.01

BUILDING

BUILDING

*Snapshot of January 2021, does not take into account escalations or expirations occurring in 2021

PAGE


TENANT HIGHLIGHT

PAE merges technology with advanced business practices delivering faster, smarter, and more efficient managed services.

With over 2,000 employees, PAE provides fee collection, application preparation, vetting and biometric capture for U.S. civilian

agencies including:

PAE Immigration, Identity & Verification

• Department of State

• Department of Justice

• Department of Homeland Security

• U.S. Securities and Exchange Commission

• U.S. Department of Commerce

• U.S. Department of Health and Human Services

PAGE


TENANT HIGHLIGHT

Paychex is a recognized leader in the payroll, human resources, and benefits outsourcing industry, with a steadfast commitment to

success and a record for achievement. Paychex serves businesses in the United States, Denmark, Germany, Norway & Sweden and

supports the following:

Paychex

• 670,000 payroll clients

• 100 U.S. Locations

• Pays 1 out of every 12 American private-sector employees

PAGE


SECTION

PAGE


COMPARABLES

ADDRESS CITY

PROPERTY TYPE RBATYPEBUILT CAP RATE

SOLD DATESOLD PRICESOLD $/SF COMMENTS

1ST ST2282 1ST STFort Myers

20,733Downtown

Office7.25%

SOLD11/01/2019$4,400,000

$212

100% Leased at Sale

S CLEVELAND AVE12751 S Cleveland Ave

Fort Myers25,370

Class B Office

8.00%

SOLD09/05/2018$3,250,000

$128

100% Leased at Sale

CLEVELAND AVE13099 S Cleveland Ave

Fort Myers46,378

Class A Office

8.00%

SOLD01/18/2019$9,562,500

$206

100% Leased at Sale

DANIELS INTERSTATE CT10070 Daniels Interstate Ct

Fort Myers25,794

Class A Office

7.1%

SOLD04/07/2020$5,875,000

$228

100% Leased at Sale1031 Exchange

GLADIOLUS DR9681 Gladiolus Dr

Fort Myers20,623 Office/Retail 7.50%

SOLD11/16/2018$2,750,000

$133

100% Leased at Sale

12

COMPARABLE SOLD

345

PAGE


COMPARABLES

ADDRESS CITY

PROPERTY TYPE RBATYPEBUILT CAP RATE

ASK PRICEASK$/SF COMMENTS

BROADWAY 3745 Broadway

Fort Myers36,682

Class B Office

6.00% $2,350,000$153.59

45% Leased

COLLEGE PKWY8771 College Pkwy

Fort Myers16,880

Class B Office

7.50%$2,850,000

$169100% Leased

MCGREGOR BLVD16876-16888 McGregor Blvd

Fort Myers18,200 Garden Office 5.76%

$2,500,000$137

100% Leased

S TAMIAMI TRL15051 S Tamiami Trl

Fort Myers21,430

Class B Office

6.25%$6,010,000

$280100% Leased

Medical

VIA ROYALE4575 Via Royae

Fort Myers29,802

Class COffice

6.00%$2,750,000

$9268% Leased

12

COMPARABLE ACTIVE

345

PAGE


2019 Estimated Population 5,702 49,214 130,228

2024 Projected Population 6,657 55,852 145,207

2019 Median Age 34.1 37.9 41.0

2019 Estimated Households 2,618 20,361 54,682

Projected Growth 2019-2024 3.15% 2.56% 2.20%

2019 Estimated Average Household Size 2.11 2.31 2.32

2019 Estimated Median Household Income $50,296 $45,876 $50,000

2019 Estimated Average Household Income $64,967 $77,943 $83,387

POPU

LATI

ON

HO

USE

HO

LDS

INC

OM

E

5 MILE3 MILE1 MILE

Population changes in the 3- and 5-mile radius are

forecasted to increase significantly by 2024 — over a

10% increase in overall population.

Additionally, a significant increase to the Median and

Average Household Income provide a solid

foundation for workforce population in both the

immediate and expanded trade areas.

DEMOGRAPHICS

PAGE

Lee County School District…......................... 13,7232. Lee Health……………………….......................13,5953. Lee County Government..................................9,0444. Publix Supermarket..........................................7,1835. Winn-Dixie…………………...............................3,3486. U.S. Postal Service...........................................1,4777. Home Depot...................................................1,9208. City of Cape Coral..........................................1,6549. Chico’s FAS, Inc..............................................1,70310. Lee County Sheriff’s Office............................1,585

11. Florida Gulf Coast University.........................1,25312. Lowe’s Home Improvement...........................1,10013. Target...........................................................1,04014. Shell Point Retirement Community.................1,02015. Comcast..........................................................99416. City of Fort Myers.............................................87917. Bealls...............................................................87318. Goodwill of SWFL………....................................82119. Gartner, Inc......................................................74120. Florida Southwestern State College...................653

LEE COUNTY MAJOR EMPLOYERS

Inventory

371 Bldgs7.6M SF

12 MONTH TOTAL NET

ABSORPTION

(47.7k) SF

VACANCY

Vacant: 8.4%Vacant Avail:

9.4%

12 MONTH COMPLETIONS

47,200SF

UNDER CONSTRUCTION

12,000 SF

AVERAGE ASKING RENT (GROSS)$18.93 PER SQUARE FOOT

LEE COUNTYCLASS A & B OFFICEASSETS 10-50K SF+

Inventory

169 Bldgs3.2M SF

12 MONTH TOTAL NET

ABSORPTION

8.7k SF

VACANCY

Vacant: 4.7%Vacant Avail:

6.4%

12 MONTH COMPLETIONS

12,000 SF

UNDER CONSTRUCTION

12,000 SF

AVERAGE ASKING RENT (GROSS)$19.06 PER SQUARE FOOT

SOUTH FORT MYERSCLASS A & B OFFICEASSETS 10-50K SF+

Fort Myers is 2018 fastest growing U.S. City (WalletHub)

One of the Best Business Climates in the U.S (Inc. Magazine)

5th Best Business Tax Climate in the nation (Tax Foundation)

Ranked #5 For Talent Attraction (Esmi Economic Modeling)

AREA OVERVIEW

Named America’s Top Mid-Sized Economic Development Hot Spot (Expansion Management)

PAGE

QUALITY OF LIFE

Lee County’s world-famousbeaches span 50 miles fromGasparilla Island State RecreationArea to Barefoot Beach on LittleHickory Island. There are 18 milesof public parks on the beachfrontand more than 100 publicbeaches. Additionally, Lee Countyhas more than 97 parks, beachesand wildlife refuges, includingfederally protected environmentalareas.

Lee County offers an abundanceof public and private golf courses,many of which are top ranked,enabling year-round play, andeach year baseball fans flock tothe area’s spring training facilitiesfor the Boston Red Sox andMinnesota Twins. Additionally,local waters hold promise forsaltwater anglers, including thosewho compete annually in one ofthe largest tarpon tournaments atBoca Grande Pass.

FLORIDA GULF COAST UNIVERSITY

JETBLUE PARK

CENTURYLINK SPORTS COMPLEX

FORT MYERS BEACH

SANIBEL ISLAND

AREA OVERVIEW

DOWNTOWN FORT MYERS

GULF COAST TOWN CENTERCOCONUT POINT

POINTS OF INTEREST

SOUTHWEST FLORIDA INTERNATIONAL AIRPORT

CONTACT:

NAPLES1100 Fifth Ave S, Suite 100

Naples, FL 34102T: 239.659.1147

FORT MYERS12140 Carissa Commerce Ct, Suite 102

Fort Myers, FL 33966T: 239.481.3800

STUART

Stuart, FL 34994T: 772.403.5204

ENN LUTHRINGER, CCIMPartner

[email protected]

OFFERING Memorandum · considering whether to pursue negotiations to acquire 3850-3860 Colonial...

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