SoMi Industrial Portfolio OM

SOUTH MIAMI INDUSTRIAL PORTFOLIO | EXECUTIVE SUMMARY

Opportunity to Grow Rental Rates and Re-Tenant

The vast majority of leases at the Portfolio have less than one year of term remaining, thus allowing new ownership to immediately negotiate higher rents and increase NOI. In addition to the aforementioned factors impacting demand for industrial space, the recent (November, 2016) adoption of an amendment to legalize medical marijuana will introduce a new demand driver once the legislature sets the framework in 2017. An International Business Times article from one year ago reported that Colorado’s cannabis industry occupied at least 3.7 MSF of industrial space in Denver, leading to nearly record-high rents and low vacancy rates. From 2009 through 2014, marijuana-related tenants accounted for more than a third of industrial space leased in Denver. Marijuana tenants, analyses have been found, often pay three to four times the average rent paid by “mainstream” businesses. A study by Arcview Market Research (www.arcviewmarketresearch.com) and New Frontier Data showed that Florida is on track to log more than $1 billion in medical marijuana sales by 2019 and surpass Colorida within four years.

Maksanim 185th Terrace (Quail Roost Road frontage)

Strategic Location

South Florida is one of the top three land-constrained industrial markets in the U.S., along with Southern California and Northern New Jersey. In fact, South Florida has the lowest ratio of industrial SF per capita (62 SF) of all industrial markets. Additionally, estimates have South Florida adding the lowest amount of industrial product per capita (33 SF) over the next five years. The subject Portfolio is strategically located at the crossroads of South Dixie Highway and Florida’s Turnpike, the two most important highways serving Southern Miami-Dade County. Further, the industrial node in which the vast majority of the Portfolio is situated represents the southernmost major industrial cluster in the county . Amenities in the local area abound (e.g., 72-acre Southland Mall, The Home Depot), and additional planned residential and transportation projects (e.g., MetroRail expansion) will further increase the density, commerce and connectivity of the immediate area.

Development-Ready Pad for 30,972 SF, 24-unit Warehouse

South Dade Industrial Center

EXECUTIVE SUMMARY

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