West Palm Small Bay Industrial Portfolio

First page 1 Next page Last page

OFFERING MEMORANDUM

EST PALM SMALL BAY PORTFOLIO

3 PROPERTY PORTFOLIO SMALL BAY INDUSTRIAL ASSETS FOR SALE | 99% LEASED 7 BUILDINGS | 95,720 SF

EXCLUSIVE CONTACTS Scott O’Donnell Executive Director Capital Markets +1 954 377 0474 scott.odonnell@cushwake.com

Offering Memorandum Disclaimer This Offering was prepared by Cushman & Wakefield and has been reviewed by the Owner. It contains select information pertaining to the Project and does not purport to be all-inclusive or to contain all of the information which a prospective purchaser may desire. Financial projections shall not be relied upon, are provided for general reference purposes only, and are based on assumptions relating to the general economy, competition, and other factors beyond control and, therefore, are subject to material change or variation. Actual results will differ from those projected. An opportunity to inspect the Project will be made available to qualified prospective purchasers. In this Offering, certain documents, including the leases and other materials, are described in summary form. The summaries do not purport to be complete nor, necessarily, accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to independently review all documents. This Offering is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Project by Cushman & Wakefield or Owner. Each prospective purchaser is to rely solely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Project described herein. Owner and Cushman & Wakefield expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Project and/or to terminate discussions with any party at any time with or without notice. Owner shall have no legal commitment or obligation to any purchaser reviewing this Offering or making an offer to purchase the Project unless a written agreement for the purchase of the Project has been fully executed, delivered, and approved by Owner and any conditions to Owner’s obligations thereunder have been satisfied or waived. Cushman & Wakefield is not authorized to make any representations or agreements on behalf of Owner. This Offering is the property of Cushman & Wakefield and may be used only by parties approved by Cushman & Wakefield. The Project is privately offered and, by accepting this Offering, the party in possession hereof agrees (i) to return it to Cushman & Wakefield immediately upon request of Cushman & Wakefield or Owner and (ii) that this Offering and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Offering may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of Cushman & Wakefield and Owner. Your obligations to keep the Evaluation Material confidential shall not include information that: (i) is or becomes publicly available other than as a result of acts by you or your Representatives in breach of this agreement; or (ii) on your counsel’s advice must be disclosed pursuant to law or a subpoena or other court order, but only to the extent specified in such subpoena or court order; provided prior to complying with any such order you shall give written notice to us that such demand has been made upon you and to the extent not legally prohibited you shall provide us with an opportunity to contest any such direct ion or order. The terms and conditions set forth above apply to this Offering in its entirety.

Gregory Miller Senior Associate

Capital Markets +1 954 377 0472 greg.miller@cushwake.com Dominic Montazemi

Senior Director Capital Markets +1 305 533 2850 dominic.montazemi@cushwake.com

LEASING CONTACTS Robert Smith CBRE Executive Vice President Brokerage Services +1 561 478 0330 robert.c.smith@cbre.com DEBT & STRUCTURED FINANCE Jason Hochman Senior Director Equity, Debt & Structured Finance +1 305 533 2876 jason.hochman@cushwake.com

w w w . w p b - s m a l l b a y p o r t f o l i o . c o m

Executive Summary The Offering Investment Highlights The Westroads Advantage Tenancy Overview Location Map Property Overview Property Information Table Property Overviews and Stacking Plans

Financials Rent Roll Cash Flow Projection In-Place Expenses

Market Overview Palm Beach County Overview PBC Industrial Overview Comps

EXECUTIVE SUMMARY 01

The Offering Cushman & Wakefield of Florida, Inc., in partnership with CBRE, has been retained as the exclusive agent for the sale of the West Palm Small Bay Portfolio (the “Portfolio” or “Properties”). This offering includes three separate small-bay industrial properties comprising a total of 95,720 square feet strategically located within a .4 mile radius of one another. The Portfolio offers the opportunity to amass immediate operational scale in one of the top and most infill industrial markets in the United States. The Portfolio, which is currently 99% occupied, is comprised of seven buildings on three separate parcels. Each Property within the Portfolio offers a diverse unit mix and can accommodate tenants ranging from 400 to 4,800 Square Feet. The West Palm Small Bay Portfolio straddles Military Trail a major north/south thoroughfare serving Palm Beach County. With access points to Interstate 95 via Blue Heron Boulevard to the north and 45th Street to the south, the Portfolio’s location provides its tenants superior mobility to the surrounding area. Palm Beach County’s industrial market is extraordinarily land constrained with significant and increasing tenant demand driving strong rental rate growth. On aggregate Palm Beach’s industrial market continues to be among the strongest in the entire country, as evidenced by the 4.2% vacancy rate across all industrial product types at year-end 2016. Steadily increasing land values and construction costs, coupled with limited small- bay inventory and entitled land have created significant barriers to new development, providing an opportunity to purchase the West Palm Small Bay Portfolio drastically below replacement cost.

Investment Highlights • SUPERIOR LOCATION

Central, convenient location with near immediate access to Interstate-95, the Florida Turnpike and the Bee Line Highway • PROVEN RENT GROWTH Current owner has increased rents 35% since 2015 while also attracting higher quality tenants • STABLE CASH FLOWS At 99% occupancy with low rollover in the first three years, the Portfolio offers a secure staggered income stream • DIVERSE TENANT BASE Diversified group of tenants representing both operating industries as well as warehousing and distribution • HIGH BARRIERS TO ENTRY Extraordinary tight land conditions make new development very expensive, driving industrial rents as demand continues unabated • STRONG INDUSTRIAL MARKET FUNDAMENTALS Staggeringly low 4.2% vacancy rate in 2016 for the Warehouse/Distribution sector in Palm Beach County

// 6

Portfolio Facts Portfolio Square Footage:

95,720 RSF

Occupancy: # of Tenants: Land Area:

99%

6.38±

Westroads - General Industrial; Dyer - Limited Industrial; 42nd Terrace - Industrial (IE)

Zoning:

Parking: Pricing:

1.65/1,000 SF

Unpriced $594,978

In-Place NOI:

The Palm Beach Industrial Market is one of the most fundamentally sound in the nation, particularly from an investment prospective. Robust industrial demand is being buoyed by a local economy in self sustaining expansion, with most industries growing and adding workers. Due to increasing land values and construction costs, new competitive supply of small bay industrial assets has been severely limited. Investors will enjoy the opportunity to acquire a stabilized portfolio while having the ability to organically grow rents on an immediate basis.

Executive Summary

The West Palm Small Bay Advantage

Reliable Cash Flows The Portfolio provides a predictable and stable income stream with an average of 4-years remaining lease term and no tenant comprising more than 5% of the total rentable area. Current ownership has successfully been able to organically grow rental income by over 35% across the three Properties while selectively gentrifying the rent roll and removing “undesirable” tenants. Through continuing to build upon current ownerships efforts and/ or repositioning specific buildings within the Portfolio, additional value creation can be achieved. Upside Potential Evenwith the recent growthof rental rates, the in-place rents across the Portfolio are still approximately $2 PSF below market. Through making minor capital improvements, new ownership will be positioned to justify rental rate increase and continue to grow net operating income. Combined with the leverage of owning multiple industrial properties in a constrained submarket, the Portfolio should be viewed as an exceedingly rare, value-add opportunity.

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 Portfolio possesses true in-fill locations within the most desirable industrial submarkets in South Florida: West Palm Beach and Riviera Beach, each of which is heavily sought after by tenants and investors alike. Furthermore, each Property is proximate to Interstate 95, the main north/south artery of the Eastern United States. Velocity The Palm Beach County Industrial market is one of the tightest andmost fundamentally sound in the entire country, with an overall vacancy rate of 4.2%. The offering is entirely comprised of small bay warehousing space, which has an overall vacancy rate 4.0% across Palm Beach County. With over 677,000 sf leasing activity in 2016 alone, demand for industrial space in Palm Beach County is extremely robust.

// 8

E Indiantown Rd

A1A

JUPITER

Central Blvd

Ocean Blvd

811

Bee Line Hwy

Donald Ross Rd

JUNO BEACH

710

PALM BEACH GARDENS

Pga Blvd

786

John Macarthur Beach Sp

NORTH PALM BEACH

North Palm Beach County Airport

High Barrier-To-Entry Market • Expensive site improvement costs due to land constraint • Past 5 years: 6.8 MSF absorption/1 MSF deliveries (ALL Deliveries Bulk)

N Federal Hwy

Northlake Blvd

RIVIERA BEACH LAKE PARK

PALM BEACH SHORES

Floridas Tpke

WEST PALM BEACH

Palm Beach Industrial • 17.6 MSF (20K RSF±) • 4Q16 Direct Vacancy 4.2%

ROYAL PALM BEACH

Okeechobee Blvd

N Dixie Hwy

GOLDEN LAKES

HAVERHILL

PALM BEACH

Southern Blvd

Palm Beach Int'l Airport

Limited Suites Under 5k RSF • No speculative construction underway in the small bay industrial sector • Downtime to relet vacancies less than four months Westroads is a Robust Industrial Submarket • Vacancy rate below 3% • No new deliveries in pipeline • User demand has greatly exceeded construction levels

Southern Blvd

S Olive Ave

GLEN RIDGE

S Ocean Blvd

WELLINGTON

Okeeheelee County Park

Forest Hill Blvd

Whispering Pines State Park

PALM SPRINGS

10th Ave N

LAKE WORTH

Lake Worth Rd

ATLANTIS

Lantana Airport

SOUTH PALM BEACH South West Park

Lantana Rd

HYPOLUXO

Hypoluxo Rd

MANALAPAN

RAINBOW LAKES

Range Line Rd

SUN VALLEY

OCEAN RIDGE N Federal Hwy

W Boynton Beach Blvd

Significant Local Investment • Minutes away from the new Ballpark of the Palm Beaches ($150M) delivered 2017

al Wildlife

BOYNTON BEACH

Hagen Ranch Rd

El Clair Ranch Rd

441 1. 42nd Terrace 2. Westroads Industrial Park 3. Dyer Business Park

Floridas Tpke

DELRAY BEACH

E Atlantic Ave

KINGS POINT

PBI

Clint Moore Rd

.03 Miles

.05 Miles

3 Miles

6 Miles

BOCA RATON

BOCA WEST

Executive Summary

Boca Raton Airport

l Hwy

Tenancy Overview

Totaling 37 tenants, with an average size of 2,373 SF, the Portfolio consists of a diverse mix of tenants across many industries. With the largest tenant making up less than 5% of the entire Portfolio, the West Palm Small Bay Portfolio is immune to the impact of one tenant vacating and significantly affecting cash flows. The Portfolio’s diversified rent roll represents virtually all industrial segments, from manufacturing and warehousing to operations and distribution. Further detail to the diversity of this offering’s tenant base can be found in the graph below:

Storage 24%

Auto 37%

Roofing 1%

Professional Services 2% Retail 7%

Miscellaneous 6%

Distribution 7%

Marine 5%

Woodworking 11%

// 10

Executive Summary

PROPERTY OVERVIEW 02

Total Portfolio Overview

+/-

3 Properties 7 Buildings

95,720 Total Square Feet 6.38 Acres

99% Leased

35% Organic Rent Growth Since 2015

// 14

6677-6687 N 42ND TERRACE

WESTROADS INDUSTRIAL PARK

DYER BUSINESS PARK

4574 Dyer Boulevard

Address

6677-6687 N 42nd Terrace 4249/4255/4261 Westroads Dr

Riviera Beach

West Palm Beach

City

Riviera Beach

1.73

2.03

Acreage

2.62

27,600

33,600

RBA (SF)

34,520

Folio #

56-42-42-36-32-000-0000 56-42-42-36-02-002-0010 56-42-42-36-00-000-3100

Number of Buildings

Number of Units

1979

1982

Year Built

1997

12'

16'-18’

Clear Span Height

11'-15' Metal 10'x12'

CBS

CBS/Metal

Type

10’x10’

12’x12’/12’x14’

Door Dimensions

Lighting

Florescent/LED

Florescent/LED 1 Bldg - 2005

Florescent/LED

2016

Roof Replaced

n/a

Heat Detectors

Percent Sprinklered 2016 Assessed Value

100%

$1,399,627

$1,180,484

$1,315,219

2016 Tax Bill

$38,227

$32,084

$36,504

Property Overview

6677-6687 N 42nd Terrace

// 16

STACKING PLAN

Location:

6677-6687 N 42nd Terrace Riviera Beach, FL

6687 42nd Terrace North

Description:

Single-story, multi-tenant metal warehouse-flex building.

F KruseEquipment, Inc. 8/31/17 1,600 SF G MLWConstruction 9/30/17 1,940 SF

# of Buildings: 2

6677 42nd Terrace North

Square Feet:

34,520 SF

E KanSriboonlue 3/31/19 2,000 SF

E GlennR.Dubin 11/30/19 1,940 SF

Land Area:

+/- 2.62 Acres

Occupancy:

100%

H & D FederatedConsulting Inc. 5/31/22 1,600 SF 1,940 SF

D JasonAlanCasey&KanSriboonlue 4/30/22 2,400 SF

Year Built:

1997

C JasonR.Meyerson 5/31/22 1,940 SF

I ThaddeusT.Christon 12/31/21 1,940 SF J LexAutoSales, Inc. 2/29/20 1,940 SF

2016 Assessed Value:

B & C TopShelfAuto,LLC 5/31/22 2,400 SF

Land Assessment

Building Assessment

Total Assessment Taxes

Folio Number

B BrettPrinz 8/31/22 1,940 SF

$572,370 $827,257 $1,399,627 $38,227

56-42-42-36-32- 000-0000

2,400 SF

Comments: Two metal warehouse buildings made up of suites less than 2,900 SF. The building features 14’ ceilings and 10’ x 12’ doors. Some units have 3 phase power and the buildings are used primarily by automotive tenants.

K NitiphatNick Phewfhad 2/14/22 2,900 SF

A NovelekTechnology, Inc. 2/28/22 2,900 SF

A ThaddeusT.Christon 12/31/21 2,400 SF

Primary Tenant Industries: Auto, Storage

22,920 SF

11,600

EXPIRATION YEAR: 2016

2021

2020

AVA MTM

2023 2017 2018 2019

2022

2024 2025 2026 2027

Property Overview

4249/4255/4261 Westroads Drive

// 18

STACKING PLAN

Location:

4249/4255/4261 Westroads Drive Riviera Beach, FL

E Placide Jeanbaptise4/30/25 1,600 SF D - 800 SF BruceWhitneyGorman 10/31/17

D2 MiguelLopez3/31/19 4,400 SF

Description:

Three single-story, multi-tenant CBS warehouse buildings.

D1 JorgeUsmaSilva3/31/22 1,600 SF C SunilP. Jagoo 12/31/19 1,600 SF B Lymage Joseph3/31/22 2,600 SF

C RobKorkes 4/30/22 2,400 SF

# of Buildings: 3

Square Feet:

27,600 SF

B ReynoldPersad 1/31/19 2,000 SF A JorgeUsmaSilva 12/31/22 2,400 SF

Land Area:

+/- 1.73 Acres

Occupancy:

97.1%

A PJ’sAutoRepair 1/31/22 1,800 SF

Year Built:

1979

4249 Westroads Drive

4261 Westroads Drive

2016 Assessed Value:

Land Assessment

Building Assessment

Total Assessment Taxes

4255 Westroads Drive

E - 800 SF HanifMarkMartinMurray 12/31/17

Folio Number

$377,125 $818,908 $1,180,848 $32,084

56-42-42-36-02- 002-0010

D - 400 SF F - 400 SF

C - 800 SF GlasspoleOvertonBrown 12/31/19

G - 800 SF KumarSeepersad 12/31/19

Comments: The Property features three (3) CBS buildings. With 14’ ceilings throughout, the Property caters to a primarily automotive-related tenant base. Located within Westroads Industrial Park, one of the buildings has a roof that was replaced in 2005.

B KumarSeepersad 1,600 SF 12/31/19

A BestAutoChoices,LLC 4/30/25 4,400 SF

Primary Tenant Industries: Auto, Storage

EXPIRATION YEAR: 2016

2021

2020

AVA MTM

2023 2017 2018 2019

2022

2024 2025 2026 2027

Property Overview

4574 Dyer Boulevard

// 20

STACKING PLAN

Location:

4574 Dyer Boulevard Riviera Beach, FL

15 & 16 JPAutoRepairs Inc andPerould Joseph 7/31/24 4,200 SF

13 & 14 TalMoore 6/30/17 4,200 SF

12 AllRide Transport, Inc 3/31/20 2,100 SF

11 RoyM. Doondoon 8/31/17 2,100 SF

10 Smith Alternator, Inc 11/30/18 2,100 SF

9 Linda J. Ramsdell 12/31/19 2,100 SF

Description:

Two single-story, multi-tenant CBS/metal warehouse buildings.

# of Buildings: 2

Square Feet:

33,600 SF

Rear Building

Land Area:

+/- 2.03 Acres

Occupancy:

100%

6 AceCustom Signs&Window TintingLLC 7/31/17 2,100 SF

5 Jedson Enterprises, Inc 12/31/19 2,100 SF

3 & 4 FloridaStudioMillworks, Inc 9/30/17 4,200 SF

1 & 2 L&S Import&Export, Inc 7/31/22 4,200 SF

7 & 8 CharlestonG.Banton 8/31/19 4,200 SF

Year Built:

1982

2016 Assessed Value:

Land Assessment

Building Assessment

Total Assessment Taxes

Folio Number

$510,261

$837,126 $1,115,137 $33,858

56-42-42-36-00- 000-3100

Front Building

Comments: The Property features two (2) buildings with CBS construction to 7’ then metal above. The buildings have new gutters, downspouts and skylights as well as a new metal roof installed in 2016. Each unit at the buildings is either 4,200 or 2,100 SF and has drive through capability. The Property also features a new asphalt overlay in the central parking area.

Dyer Boulevard

EXPIRATION YEAR: 2016

2021

2020

AVA MTM

2023 2017 2018 2019

Primary Tenant Industries: Auto

2022

2024 2025 2026 2027

Property Overview

// 22

23 Property Overview

4249 Westroads Drive

FINANCIALS 03

6677-6687 N 42nd Terrace Rent Roll - 42nd Terrace

RENT ROLL

BASE RENT INCREASES

Jul-17

LEASE TERM

BASE RENT

CAM Recoveries

RBA Rent PSF Monthly

Total Monthly

Total Annual

RBA (SF)

Pro Rata

Annual

Date

PSF Water Sewer Trash

PSF

Comment

Suite

Tenant Name

Start

Expire

6677-A Thaddeus T. Christon

2,400 7.0% Nov-08 Dec-22 $8.00

$1,600

$19,200 Jan-18

$8.24 $8.49 $8.74 $9.00 $9.27 $7.50 $7.50 $7.75 $7.75 $8.24 $8.49 $8.74 $9.00 $7.61 $8.24 $8.49 $8.74 $9.01 $9.28 $8.51 $8.77 $9.03 $9.30 $9.58

$50

$10

$25

$85

$1,020 $0.43

Jan-19 Jan-20 Jan-21 Jan-22 Jun-19 Jun-20 Jun-21 May-19 May-20 May-21 Jan-19 Jan-20 Jan-21 Jan-22 Sep-18 Sep-19 Sep-20 Sep-21

6677-BC Top Shelf Auto, LLC

4,800 13.9% Mar-13 May-22 $7.50

$3,000

$36,000 Jun-18

$25

$10

$25

$60

$720 $0.15

6677-D Jason Alan Casey & Kan Sriboonlue

2,400 7.0% Aug-15 Apr-22 $8.00

$1,600

$19,200 May-18

$25

$10

$25

$60

$720 $0.30

6677-E Kan Sriboonlue

2,000 5.8% Apr-16 Mar-19 $7.25

$1,208

$14,490 Apr-18

6687-A Novelek Technology Inc.

2,900 8.4% Dec-15 Feb-22 $8.00

$1,934

$23,208 Feb-18

$25

$10

$25

$60

$720 $0.25

July 1, 2017 - August 31, 2017 Base Rent is abated per signed lease amendment; Tenant is still required to pay water, sewer and trash

6687-B Brett Prinz (1)

1,940 5.6% Oct-04 Aug-22 $8.51

$1,375

$16,500 Sep-17

$25

$10

$25

$60

$720 $0.37

6687-C Jason R. Meyerson

1,940 5.6% Jun-14 May-22 $9.25

$1,495

$17,940 Jun-18

$9.71 $100

$25 $100

$225

$2,700 $1.39

Jun-19 $10.00 Jun-20 $10.30 Jun-21 $10.61

6687-DH Federated Consulting Inc.

3,880 11.2% Jun-14 May-22 $8.77

$2,837

$34,044 Jun-18

$9.04 $9.31 $9.59 $9.88 $9.64 $9.00 $9.27 $9.55

$25

$10

$25

$60

$720 $0.19

Jun-19 Jun-20 Jun-21

6687-E Glenn R. Dubin

1,940 5.6% Dec-15 Nov-19 $9.09

$1,470

$17,635 Dec-17

$9.36 $100

$25 $100

$225

$2,700 $1.39

Dec-18

Base Rent Increases based on proposed amendment; September 2017 base rent would be abated under proposed amendment; Tenant still required to pay water, sewer and trash during those months

6687-F Kruse Equipment, Inc and Mark Kruse (2)

1,600 4.6% Sep-08 Jun-22 $8.36

$1,115

$13,380 Jun-17

$25

$10

$25

$60

$720 $0.45

Jun-18 Jun-19 Jun-20

$9.83 Jun-21 $10.13

6687-G MLW Construction LLC

1,940 5.6% Oct-13 Sep-17 $7.50 1,940 5.6% Jan-10 Dec-21 $8.00

$1,213 $1,293

$14,556

6687-I

Thaddeus T. Christon

$15,520 Jan-18

$8.24 $8.49 $8.74 $9.00 $8.24 $8.49 $8.49 $8.74 $9.01

$25

$10

$25

$60

$720 $0.37

Jan-19 Jan-20 Jan-21

6687-J Alexis D. Acuna and Lex Auto Sales

1,940 5.6% Jul-14 Feb-20 $8.00

$1,294

$15,528 Mar-18

$50

$10

$25

$85

$1,020 $0.53

Mar-19

6687-K Nitiphat Nick Phewfhad

2,900 8.4% Mar-17 Feb-22 $8.00

$1,934

$23,208 Feb-19

$50

$10

$25

$85

$1,020 $0.35

Feb-20 Feb-21

Occupied Property Vacant Property

34,520 100%

$23,367 $280,409

$525 $150 $450

$1,125 $13,500

0 0%

Total Property

34,520 100%

$23,367 $280,409

$525 $150 $450

$1,125 $13,500

// 26

RENT ROLL Rent Roll - Westroads

BASE RENT INCREASES

Jul-17

CAM Recoveries

LEASE TERM

BASE RENT

RBA Rent PSF Monthly Annual

RBA (SF)

Total Monthly

Total Annual

Pro Rata

Suite

Tenant Name

Start Expire

Date PSF Water Sewer Trash

PSF

4249-A Jorge Usma Silva

2,400 8.7% Apr-16 Dec-22 $7.50 $1,500 $18,000 Jan-18 $7.50 $25 $10 $25 $60

$720 $0.30

Jan-19 $8.00 Jan-20 $8.50 Jan-21 $9.00

4249-B Reynold Persad 4249-C Rob Korkes

2,000 7.2% Feb-11 Jan-19 $6.80 $1,134 $13,608 Feb-18 $7.01 $25 $10 $25 $60 2,400 8.7% May-10 Apr-22 $9.00 $1,800 $21,600 May-18 $9.27 $25 $10 $25 $60

$720 $0.36 $720 $0.30

May-19 $9.55 May-20 $9.83 May-21 $10.13

4249-D Bruce Whitney Gorman 4249-E Placide Jeanbaptiste

800 2.9% Nov-13 Oct-17 $8.27

$551 $6,615

1,600 5.8% Mar-13 Apr-22 $8.25 $1,100 $13,200 May-18 $8.50 $25 $10 $25 $60

$720 $0.45

May-19 $8.75 May-20 $9.01 May-21 $9.29

4255-A Best Auto Choices, LLC

4,400 15.9% Mar-17 Apr-25 $7.55 $2,769 $33,228 May-18 $7.78 $50 $20 $75 $145 $1,740 $0.40 May-19 $8.01 May-20 $8.25 May-21 $8.50 May-22 $8.75 May-23 $9.02 May-24 $9.29 1,600 5.8% Apr-13 Dec-19 $8.50 $1,133 $13,600 Jan-18 $8.75 $25 $10 $25 $60 $720 $0.45

4255-B Kumar Seepersad

Jan-19 $9.02

4255-C Glasspole Overton Brown

800 2.9% Nov-13 Dec-19 $8.51

$567 $6,804 Jan-18 $8.76 $25 $10 $25

$60

$720 $0.90

Jan-19 $9.02

4255-D VACANT

400 1.4%

$9.00

$300 $3,600 $735 $8,820 $300 $3,600

4255-E Hanif Mark Martin Murray

800 2.9% Jan-16 Dec-17 $11.03

4255-F VACANT

400 1.4%

$9.00

4255-G Kumar Seepersad $600 $7,200 Jan-18 $9.27 Jan-19 $9.55 4261-A&E PJ's Auto Repair AKA Perard Jean 1,800 6.5% Jan-17 Jan-22 $9.06 $1,359 $16,308 Feb-18 $9.34 $25 $10 $25 $60 800 2.9% Apr-13 Dec-19 $9.00

$720 $0.40

Feb-19 $9.62 Feb-20 $9.90 Feb-21 $10.20 Apr-19 $8.91 Apr-20 $9.18 Apr-21 $9.45

4261-B Lymage Joseph

2,600 9.4% Jun-11 Mar-22 $8.40 $1,820 $21,840 Apr-18 $8.65 $25 $10 $25 $60

$720 $0.28

4261-C Sunil P. Jagoo

1,600 5.8% Nov-10 Dec-19 $8.51 $1,134 $13,608 Jan-18 $8.76 $25 $10 $25 $60

$720 $0.45

Jan-19 $9.02

4261-D1 Jorge Usma Silva

1,600 5.8% Feb-17 Mar-22 $11.25 $1,500 $18,000 Apr-18 $7.50 Apr-19 $7.50 Apr-20 $9.38 Apr-21 $9.38

4261-D2 Miguel Lopez

1,600 5.8% Apr-17 Mar-19 $8.00 $1,067 $12,804 Apr-18 $8.24 $25 $10 $25 $60

$720 $0.45

Occupied Property Vacant Property

26,800 97.1%

$18,770 $225,235 $600 $7,200 $19,370 $232,435

$300 $120 $325 $745 $8,940

800 2.9%

Total Property

27,600 100%

$300 $120 $325 $745 $8,940

// 28

29 Financials

Rent Roll - Dyer Road RENT ROLL

Dyer Business Park

BASE RENT INCREASES

Jul-17

CAM

LEASE TERM

BASE RENT

RBA Rent PSF Monthly Annual

RBA (SF)

Pro Rata

Unit

Tenant Name

Start

Expire

Date

PSF Water

Sewer

Monthly Annual

PSF

Comment

1 & 2 L&S Import and Export

4,200 12.50% Jun-06 Jul-22 $6.69 $2,342 $28,104 Aug-17 $8.00

$75

$25

$100

$1,200

$0.29

Base Rent Increases based on proposed amendment; October, September and November 2017 base rent would be abated under proposed amendment; Tenant would be required to pay water, sewer and trash during those months July 2017 Base Rent is abated per signed lease amendment; Tenant is still required to pay water, sewer and trash

Aug-18 $8.24 Aug-19 $8.49 Aug-20 $8.74 Aug-21 $9.00

3 & 4 Florida Studio Millworks, Inc.

4,200 12.50% Dec-98 Nov-22 $5.95 $2,084 $25,008 Oct-17

$8.00 $8.24 $8.49 $8.74 $9.00

$25

$50

$600

$0.14

Oct-18 Oct-19 Oct-20 Oct-21

5 Jedson Enterprises

2,100 6.25% Aug-09 May-22 $9.00 $1,575 $18,900 Apr-18

$9.27 $9.55

$50

$20

$70

$840

$0.40

Apr-19 Apr-20

$9.83 Apr-21 $10.13

6 Ace Custom Signs & Window Tinting

2,100 6.25% Jun-11 Aug-22 $8.00 $1,400 $16,800 Sep-17 $8.50

$25

$50

$600

$0.29

August 2017 Base Rent is abated per signed lease amendment; Tenant is still required to pay water, sewer and trash

Sep-18 $8.76 Sep-19 $9.02 Sep-20 $9.29 Sep-21 $9.57

7&8 Charleston G. Banton

4,200 12.50% Apr-15 Aug-19 $8.50 $2,975 $35,700 Sep-17 $8.93 Sep-18 $9.37 2,100 6.25% Nov-08 Dec-19 $9.00 $1,575 $18,900 Jan-18 $9.27 2,100 6.25% Dec-96 Nov-18 $8.00 $1,400 $16,800 Dec-17 $8.24 2,100 6.25% Sep-06 Aug-17 $7.50 $1,313 $15,756 Sep-17 $7.88 2,100 6.25% Apr-15 Mar-20 $8.60 $1,505 $18,060 Apr-18 $9.00 Jan-19 $9.55

9 Linda J. Ramsdell

$25

$10

$35

$420

$0.20

10 Smith Alternator, Inc 11 Roy M. Doondoon 12 All Ride Transport, Inc.

$25

$10

$35

$420

$0.20

$45

$15

$60

$720

$0.34

Apr-19

$9.25

13 & 14 Tal Moore

4,200 12.50% Jul-15 Jun-17 $6.30 $2,205 $26,460 4,200 12.50% May-13 Jul-24 $8.00 $2,800 $33,600 Jul-18

15 & 16 JP Auto Repairs Inc and Peroul Joseph

$8.24 $8.49 $8.74 $9.00 $9.27 $9.55 $9.84

$25

$10

$35

$420

$0.10

Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Jul-24

Occupied Property Vacant Property

33,600 100%

$21,174 $254,088

$295 $140

$435 $5,220

0 0.0%

Total Property

33,600 100%

$21,174 $254,088

$295 $140

$435 $5,220

Silverman Industrial Portfolio - 3 Properties - Valuation

3/15/2017 9:52 AM

// 30

Financials

Cash Flow Projection

42nd Terrace Westroads Industrial Dyer Business Park Overall Portfolio Overall Portfolio Pro Forma In-Place In-Place In-Place In-Place

Estimated Occupancy: Building Area (SF):

100.0% 34,520

97.1% 27,600

100.0% 33,600

99.0% 95,720

97.0% 95,720

PSF $ Amount

PSF $ Amount PSF $ Amount

PSF

$ Amount PSF $ Amount

REVENUE Annual Base Rent Income (1)

$280,409 $8.12 $225,235 $8.16 $254,088 $7.56 $759,732 $7.94 $883,763 $9.23 $28,191 $0.82 $14,656 $0.53 $12,380 $0.37 $55,227 $0.58 $55,227 $0.58 $308,600 $8.94 $239,891 $8.69 $266,468 $7.93 $814,959 $8.51 $938,990 $9.81

Reimbursements (2)

Gross Potential Income

VACANCY ALLOWANCE (3)

$0 $0

$0 $0.00

$0 $0.00 ($24,449) ($0.26)

($26,137) ($0.27)

EFFECTIVE GROSS INCOME

$308,600 $8.94 $239,891 $8.69 $266,468 $7.93 $790,510 $8.26 $912,853 $9.54

EXPENSES (4) RE Taxes (5)

$37,798 $1.09 $31,724 $1.15 $36,095 $1.07 $105,617 $1.10 $105,617 $1.10 $7,300 $0.26 $8,891 $0.26 $25,325 $0.26 $25,325 $0.26 $7,025 $0.25 $7,994 $0.24 $23,837 $0.25 $23,837 $0.25 $3,000 $0.11 $4,200 $0.13 $10,200 $0.11 $10,200 $0.11

$9,134 $0.26 $8,817 $0.26 $3,000 $0.09 $3,240 $0.09 $5,400 $0.16 $550 $0.02 $4,140 $0.12

Insurance

Management Fee (6)

R&M

$3,240 $0.12

$0 $0.00 $6,480 $0.07

$6,480 $0.07

Trash Removal

$5,400 $0.20 $5,403 $0.16 $16,203 $0.17 $16,203 $0.17

Payroll Electric

$0 $0.00 $1,400 $0.04 $1,950 $0.02 $1,500 $0.12 $1,836 $0.05 $7,476 $0.08

$1,950 $0.02 $7,476 $0.08

Fire & Safety Water & Sewer

$7,500 $0.22 $10,800 $0.39 $4,200 $0.13 $22,500 $0.24 $22,500 $0.24 $79,579 $2.31 $69,989 $2.54 $70,019 $2.03 $219,588 $2.29 $219,588 $2.29

TOTAL EXPENSES

NET OPERATING INCOME

$229,021 $6.63 $169,902 $4.92 $196,448 $5.69 $570,922 $5.96 $693,266 $7.24

Notes: (1) Based on in-place rent roll from 2017 (2) Reimbursements include: CAM, RE Taxes, Labor, Alarm and Collected Late Fees (3) 3% Vacancy Allowance deduction for in-place calculation (4) Based on 2017 Budget provided. See detail on Expenses page for each asset. (5) In-Place RE Taxes inflated 2016 discounted taxes by 3% (6) Calculated as 3% of Effective Gross Revenue

// 32

In-Place Expenses

In Place Expenses

42nd Terrace

Westroads Industrial

Dyer Businss Park

34,520 SF

27,600 SF

33,600 SF

Total $ $ PSF Total $ $ PSF Total $ $ PSF

EXPENSES (1) RE Taxes (2)

$37,798 $9,134 $8,817 $3,000 $3,240 $5,400

$1.06 $0.26 $0.33 $0.21 $0.21 $0.16 $0.16 $0.12 $0.30

$31,724 $7,300 $7,025 $3,000 $3,240 $5,400 $1,500 $10,800 $0

$1.16 $36,095

$1.04 $0.26 $0.30 $0.18 $0.00 $0.16 $0.00 $0.05 $0.13

Insurance

$0.26 $0.28 $0.26 $0.38 $0.20 $0.00 $0.12 $0.39

$8,891 $7,994 $4,200 $5,403 $1,400 $1,836 $4,200 $0

Management Fee (3)

R&M

Trash Removal

Payroll Electric

$550

Fire & Safety Water & Sewer

$4,140 $7,500

Total Expenses

$79,579 $2.31

$69,989 $2.54 $70,019

$2.08

NOTES: (1) Based on 2017 Budget, except where noted (2) In-Place RE Taxes inflated 2016 discounted taxes by 3% (3) In-Place Management Fee is based on 3% of Effective Gross Revenue.

ial Portfolio - 3 Properties - Valuation

3/13/2017 5:47 PM

33 Financials

MARKET OVERVIEW 04

Palm Beach County is the third most populous county in the state of Florida with a year-round population of 1.44 million. It is part of the tri-county South Florida region, which is the eighth most populous in the US, and which just saw its population surpass 6.0 million for the first time. The three counties have experienced rapid and sustained growth over the past five years, with just under 500,000 new residents seduced by the world-class golf courses of the Palm Beaches, towering oceanfront condos of Broward and colorful street life of Miami- Dade County. Palm Beach County saw its population grow by 7.8% over this time period. Vibrant cultures, technology jobs and tax- friendly environment all contributed to the area being an attractive destination. Palm Beach County has a labor force of 711,000 people and a sub-5% unemployment rate, with the top jobs by occupation consisting of office and administrative support (15.9%) and executives, managers and administrators (9.7%). With over one-third of the labor force having “white collar” jobs, the county has a relatively affluent population base. Roughly one-quarter of households in the county boast household incomes in excess of $100,000 per year. Market Overview - Palm Beach County Palm Beach County’s quality of life has enticed many local and national businesses to relocate offices or open branches in the area. Below are some highlights that illustrate why Palm Beach County is a top choice to live and work: • The School District of Palm Beach County has been rated an “A” for eight consecutive years by the Florida Department of Education and is home to two of the Top 100 nationally ranked high schools • Palm Beach County has more golf courses than any other county in the country with more than 160 public and private golf courses, from executive to championship level, designed by the best names in the industry • The county is the Spring Training home of the Florida Marlins and St. Louis Cardinals, and the Houston Astros and Washington Nationals are also in the process of constructing a new training facility to be completed in early 2017 • Palm Beach County is the winter equestrian capital of the world, hosting the Winter Equestrian Festival every January through April and bringing large crowds and international celebrities Quality of Life

// 36

• Home to more than 200 theaters, museums, art centers, performance stages and cultural venues, Palm Beach County is considered among the world’s most celebrated cultural destinations • Thanks to its pristine beaches, 125 waterways and sunny weather, outdoor sports are enjoyed year-round and bring droves of visitors each year • According to the county clerk and comptroller, Palm Beach County’s “AAA” bond rating is one of only 36 counties nationwide to earn this highest rating from all three of the major rating agencies, translating into lower interest rates and peace of mind that the county will be run smoothly The County’s infrastructure is well equipped to meet the needs of businesses, residents and its many visitors. The county’s efficient, integrated transportation system includes expressways, railways, a major international airport, three executive/commercial airports and a fast-growing seaport. Airport — Palm Beach International Airport serves over six million passengers each year and was voted third best airport in the US and sixth best in the world by Conde Nast Traveler readers. The airport has 28 aircraft gates, with the potential to add 24 additional gates at a later time. There are over 200 daily flights on 12 airlines offering non-stop service to over 25 destinations and connecting service to destinations throughout the world. Seaport — The Port of Palm Beach is the fourth busiest container port of Florida’s 15 deep water ports and the 20th busiest container port in the United States. It is also the only South Florida port with on-dock rail, having five miles of port-owned track directly linked to the Florida East Coast (FEC) Rail Company and switches to the CSX and NFS. The port contributes $260 million in business revenue, and over $7 billion of commodities moves through the port each year. Additionally, the Bahamas Celebration cruise ship brings 275,000 passengers to the port annually. Rail Service — Commuter rail service between Miami and West Palm Beach is currently operated seven days per week by Tri-Rail, spanning over 70 miles with direct and convenient bus connections along the way. All Aboard Florida has proudly introduced Brightline, an express train service that will connect South Florida to Orlando by using the existing FEC Railway corridor and new tracks to be constructed along State Road 528 between Cocoa and Orlando. Brightline will launch service between Miami and West Palm Beach in 2017, with service to Orlando following. Transportation

37 Market Overview

Market Overview - Industrial

The industrial market in Palm Beach totals 40.8 million square feet and is divided into seven submarkets which are all adjacent to Interstate 95. Palm Beach County is served by interstate 95, Florida’s Turnpike, and numerous major state roads and highways which facilitates easy distribution to a large market area. West Palm Beach is home to an international airport and five smaller executive airports as well as Tri- Rail commuter rail line which links Miami, Ft. Lauderdale and West Palm Beach along a 71 mile long system with 18 stations. As shown in the chart below, approximately 60% of inventory is considered warehouse/ distribution with the balance generally even split between flex and manufacturing. A total of 932,000 ± SF was absorbed in 2016. Palm Beach County is part of the Miami-Fort Lauderdale-Pompano Beach Metropolitan Statistical Area and benefits from its location in one of the more dynamic and evolving markets in the U.S. The region is bolstered by a constant influx of new residents and further integration through international tradewithCentral and SouthAmerican economies. Companies are attracted to Palm Beach County due, in part, to a well- educated employment base, strong infrastructure linkages, competitive business climate, and high quality of life. PalmBeach County has become an attractive and cost-effective location over the past several years as

the industrial markets in Miami-Dade and Broward County to the south have become increasinglymore expensive. Similar to other South Florida markets, the Palm Beach County industrial market is defined by the lack of large blocks of vacant space for existing tenant expansions or new to market entrants. To meet current demand and take advantage of future growth, new construction picked up in 2016 but nearly enough to keep pace with tenant demand. Almost 595,000 square feet came online in 2016, with 736,000 square feet under construction. These additions to inventory will do little to shift the balance of power from landlords to tenant and, as a result, sharp rental rate increases are expected to continue for the foreseeable future.

PALM BEACH INDUSTRIAL MARKET STATISTICS Fourth Quarter 2016 SUBMARKETS

PALM BEACH I NDUSTR I AL MARKET STAT I ST I CS FOURTH QUARTER 20 1 6

Direct

Quarter

YTD

Overall

Direct

Wtd. Average

Overall Net Absorption

Leasing Activity

Construction Completions

Under

No. Bldgs.

Inventory

Vacancy Rate

Rental Rates (psf)

Construction

OVERALL MARKET

Boca Raton

166

7,217,431 3,966,758 2,375,667 2,323,877 1,826,442 9,122,775 13,987,196 40,820,146 3,464,524 2,912,296 1,636,752 1,197,634 6,901,029 9,277,561 26,307,529 917,733

5.4% 3.8% 2.9% 9.5% 4.7% 2.0% 4.5% 4.2% 3.8% 3.9% 2.1% 5.8% 2.4% 4.5% 4.0% 12.8%

5.3% 3.8% 2.9% 9.5% 4.7% 2.0% 4.4% 4.2% 3.8% 3.9% 2.1% 5.8% 2.4% 4.5% 4.0% 12.8%

$12.26 $10.06 $11.40 $11.72

-21,439 -14,747 157,229 15,493 25,250 -8,997 29,026 181,815

106,078 -18,797 192,353 20,975 23,600 153,313 454,319 32,454 -8,205 170,419 28,300 147,740 326,883 2,210

11,889

0 0 0 0 0 0

0 0 0

Jupiter

86 75 48 65

6,485

Delray Beach Boynton Beach

114,163 61,544

53,500 252,000

Lake Worth

$7.51 $8.33

7,780

Riviera Beach

215 342 997

184,541 290,830 677,232

West Palm Beach

$10.63 $10.72

594,672 594,672

431,431

931,841

WAREHOUSE/DISTRIBUTION

Boca Raton

74 55 52 24 41

$11.81

-4,262 -7,804

5,560

0 0 0 0 0 0

0 0 0

Jupiter

$9.50

Delray Beach Boynton Beach

$11.23 $11.67

155,229 -3,172 25,250 -11,022

114,163 45,323

53,500 252,000

Lake Worth

$6.88 $8.20

7,780

Riviera Beach

152 199 597

150,740 265,783 589,349

West Palm Beach

$10.17

3,204

594,672 594,672

431,431

TOTAL

$9.97

157,423

699,801

*Overall figures includesubleaseanddirect space.

Nowarrantyor representation,expressor implied, ismade to theaccuracyof the information containedherein,and thesame is submitted toerrors,emissions, changeof price, rentalor conditions,withdrawalwithoutnotice,and toany special listingconditions imposedbyourprincipals.

// 38 OFFICE SERVICES/FLEX Boca Raton

68 16 16

2,788,977

7.8% 6.9% 6.0%

7.6% 6.9% 6.0%

$13.20 $11.72 $11.57

-17,177 -6,943

32,262 -10,592 -3,666

6,329 6,485

0 0 0

Jupiter

554,874 568,932

Delray Beach

2,000

West Palm Beach Submarket

The West Palm Beach industrial submarket is Palm Beach County’s largest with 14 million square feet of space representing over one-third of total market inventory. The submarket is bordered on the north by 12th Street, on the east by the Intracoastal, on the south by Okeechobee Boulevard, and on the west by Australian Avenue and Interstate 95. The West Palm Beach submarket benefits from its close proximity to major roadways, an international airport, and a wide variety of residential housing options. The West Palm Beach industrial submarket continued its robust performance across all product types in 2016 with strong tenant demand driving the vacancy rate down to end 2016 at 4.5%. Despite modest levels of new construction, market conditions are expected to continue to tighten for the foreseeable future.

Riviera Beach Submarket

The Riviera Beach has been an attractive alternative for industrial tenants in South Florida. The area benefits from the close proximity to major roadways, the international airport, and quality residential housing. It is bordered on the north by Silver Beach Road, on the east by the Atlantic Ocean, on the south by Inlet Boulevard, and on the west by the Bee Line Highway. Tightening market conditions and positive economic trends are poised to drive the market’s key indicators to positive territory making 2017 another strong year for the area’s industrial market.

Major Market Trends and Diagnostics

• Select adjacent submarkets have virtually no existing warehouse inventory available • User demand has greatly exceeded construction levels over a 5-year and 10-year window • Severe supply constraint for new in-fill buildings that can accommodate users in the small-bay space • Speculative development severely limited by significant barriers to entry, most notably relating to sight costs

Major Industrial Users in Palm Beach (partial list)

• Aldi Supermarkets • Areojet Rocketdyne • Cheney Brothers • Eastern Metal Supply • Fedex • Florida Power & Light • Iron Mountain • Pepsico • Publix • Tire Kingdom • Tropical Shipping • Tyco • Walgreens

39 Market Overview

Sale Comparables

7231-7241 Haverhill Riviera Beach

6701 Garden Rd West Palm Beach

1109 Okeechobee Rd West Palm Beach

635 Gator Drive Lantana

A ddress :

2/15/2017

S ale D ate :

9/29/2016

4/27/2016

12/19/2016

RBA:

47,557

34,782

17,030

40,883

$6,750,000

S ale P rice : P rice PSF:

$2,900,000

$1,700,000

$3,225,000

$150

$83

$100

$79

O ccupancy :

100%

88%

100%

2006

Y ear B uilt

2002

1983

1987

C onstruction

CBS

CBS/Metal

// 40

Competitive Set

1970 W 9th St Riviera Beach

6701 Garden Rd Riviera Beach

850 13th St Lake Park

7788 Central Industrial Dr. Riviera Beach

A ddress :

RBA:

7,000 5,000

34,872 6,000

13,250

100,000

C ontig A vail S pace :

1,506

1,850

R ent PSF: Y ear B uilt

$12.00 NNN

$11.00 MG

$12.00 IG

$10.00 IG

1999

2002

1974

1987

1369 N Killian Drive Lake Park

8360 Currency Dr. Riviera Beach

1378 N Killian Dr West Palm Beach

7655 Enterprise Dr Riviera Beach

A ddress :

RBA:

8,088 2,022

16,830 2,300

9,275 2,000

34,756

C ontig A vail S pace :

1,600

R ent PSF: Y ear B uilt

$11.87 MG

$12.00 MG

$11.40 IG

$11.00 MG

1975

1999

1978

1986

Market Overview

NOTES

// 42

EXCLUSIVE CONTACTS Scott O’Donnell Executive Director Capital Markets +1 954 377 0474 scott.odonnell@cushwake.com

Gregory Miller Senior Associate

Capital Markets +1 954 377 0472 greg.miller@cushwake.com Dominic Montazemi

EST PALM SMALL BAY PORTFOLIO

Senior Director Capital Markets +1 305 533 2850 dominic.montazemi@cushwake.com

Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44

Made with FlippingBook