KW COMMERCIAL - PARKS COMMERCIAL GROUP, LLC 11 S. BUMBY AVE, ORLANDO FL 32803 NET LEASE INVESTMENT OPPORTUNITY – ORLANDO AREA MEDICAL OFFICES Mark Arnold Director – KW Commercial [email protected]407-353-6391 PORTFOLIO OF THREE FULLY LEASED MEDICAL OFFICE PROPERTIES National Corporate Tenant ● Outstanding Locations • Two Office Condominiums in Hospital Complexes • One Free-Standing Office Building • Multiple Lease Years Remaining • Modified NN Leases • Blended CAP Rate – 6.67% • Sold as a Portfolio or Individually Ideal Portfolio Asset or §1031 Replacement Property 1
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KW COMMERCIAL - PARKS COMMERCIAL GROUP, LLC 11 S. BUMBY AVE, ORLANDO FL 32803
NET LEASE INVESTMENT OPPORTUNITY – ORLANDO AREA MEDICAL OFFICES
PORTFOLIO OF THREE FULLY LEASED MEDICAL OFFICE PROPERTIES
National Corporate Tenant ● Outstanding Locations
• Two Office Condominiums in Hospital Complexes • One Free-Standing Office Building • Multiple Lease Years Remaining • Modified NN Leases • Blended CAP Rate – 6.67% • Sold as a Portfolio or Individually
Ideal Portfolio Asset or §1031 Replacement Property
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KW COMMERCIAL - PARKS COMMERCIAL GROUP, LLC 11 S. BUMBY AVE, ORLANDO FL 32803
NET LEASE INVESTMENT OPPORTUNITY – ORLANDO AREA MEDICAL OFFICES
Confidentiality & Disclaimer
All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, develop-ability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters. Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Orlando Central in compliance with all applicable fair housing and equal opportunity laws.
KW COMMERCIAL- PARKS COMMERCIAL GROUP, LLC 11 S. Bumby Ave Orlando, FL 32803
KW COMMERCIAL - PARKS COMMERCIAL GROUP, LLC 11 S. BUMBY AVE, ORLANDO FL 32803
ADDRESS SQUARE FEET FEATURES RENT RATE SF - GROSS INCOME
7350 Sand Lake Commons - B
Suite 3329 Orlando, FL 32819
1,970
Exam Rooms - Surgery
Adjacent to Orlando Health Dr. Phillips Hospital
$26.75 - $52,700
661 E Altamonte Dr,
Suite 210 Altamonte Springs, FL 32701
4,353
Exam Rooms – Surgery
Adjacent to Advent Health Altamonte Springs Hospital
$27.08 - $117,860
1807 Salk Dr.
Tavares, FL 32778
1,850
Exam Rooms – Surgery Free Standing Building
Nearby to Advent Health Waterman Hospital
$23.44 - $43,375
Investment Overview
KW Commercial is pleased to offer for sale a portfolio of three medical office properties adjacent to or immediately nearby area hospital complexes in Altamonte Springs, Sand Lake/Dr. Phillips and Tavares. The medical condominium offices and the free standing medical office comprise a combined total of 8,173 SF.
The properties are fully leased to a single national corporate medical tenant, Upperline Health, Inc. and are operated as Podiatry Medical-Surgical service providers. The current five year lease term extends through March of 2025. Rents increase by 2% annually. Under modified NN lease terms, the tenant pays for utilities and unit maintenance, the landlord is responsible for Sales Tax, Real Estate Taxes and HOA fees. The properties are operated as an investment and the portfolio reported a first-year net income of $150,005.40 during 2019.
The robust Orlando Metro Office Real Estate Market and the exploding expansion of area hospitals, medical services offerings and facilities underscore the current demand for highly customizable professional offices in key area sub-markets. Altamonte Springs, the Sand Lake area along Turkey Lake (adjacent to I-4) and the Waterman Hospital district along US 441 in Mount Dora-Tavares, are key Central Florida population centers surrounding significant commercial-business districts. Each of the properties are ideally located within or adjacent to major regional hospital facilities and will be attractive locations for professional medical providers for many years to come.
NET LEASE INVESTMENT OPPORTUNITY – ORLANDO AREA MEDICAL OFFICES
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KW COMMERCIAL - PARKS COMMERCIAL GROUP, LLC 11 S. BUMBY AVE, ORLANDO FL 32803
NET LEASE INVESTMENT OPPORTUNITY – ORLANDO AREA MEDICAL OFFICES
Combined Investment Results
All properties have a common lease inception and renewal date. Landlord expenses consist of sales tax, property tax, COA/maintenance fees and insurance expense. Rental rates increase annually on March 31 by 2% over the rent of the preceding year. The landlord friendly leases require minimal landlord management or participation. The purchase of the combined leases comprise an excellent portfolio investment suitable for high net worth investors, investment groups, institutional investors and §1031 clients seeking predictable and increasing income results over the next five years. Lease renewal is at the option of the tenant who has a long-standing (thirty year) local client base that appreciates the attractive facilities and easy-to-access locations of these office properties. The continued growth in the Orlando market and the ideal locations of the properties will help to maximize appreciation of property values compared to alternative market opportunities for investor/owners.
THREE PROPERTY PORTFOLIO – P&L 2019 Revenues
Rental Income (Year 1) $220,212.12 Sales Tax pass-through -$13,322.87
Gross Rental Profit 206,889.25 Expenses
COA Fees/Maintenance $25,323.81 Insurance $12,773.04 Property Tax $18,207.00
Total Expense $56,883.85 Net Income $150,005.40. Sales Price $2,250,000 Cap Rate: 6.67%
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KW COMMERCIAL - PARKS COMMERCIAL GROUP, LLC 11 S. BUMBY AVE, ORLANDO FL 32803
NET LEASE INVESTMENT OPPORTUNITY – ORLANDO AREA MEDICAL OFFICES
7350 Sand Lake Commons # 3329 1,970 SF
Projected Lease Year 1 Revenues Other Income $52,631.31 Sale Tax Pass Through -$3,011.87
7350 Sand Lake Commons Blvd, Suite 3329 Orlando, FL 32819
Attractive Property Features to Enhance Future Property Values
• The preferred location adjacent to the Orlando Health - Sand Lake facility. • The attractive professional-office building (Medplex B) primarily housing medical services providers • The current custom medical build-out within the suite. • Substantial nearby development underway. • The awareness of nearby residents and area visitors that the location houses the primary area provider of health
care services. • The ease of access to the location from I-4, Sand Lake and the Attractions to the east and south.
Orlando Health
Dr. Phillips
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KW COMMERCIAL - PARKS COMMERCIAL GROUP, LLC 11 S. BUMBY AVE, ORLANDO FL 32803
661 E Altamonte Springs Dr. Suite 210 4,353 SF
Projected Lease Year 1 Revenues Other Income $120,019.84 Sale Tax Pass Through -7,375.66
NET LEASE INVESTMENT OPPORTUNITY – ORLANDO AREA MEDICAL OFFICES
661 E Altamonte Springs Dr. Suite 210, Altamonte Springs, FL. 32701
Attractive Property Features to Enhance Future Property Values
• The preferred location adjacent/connected to the Advent Health Systems - Altamonte Springs Hospital • The current custom medical build-out of the suite. • The awareness of nearby Altamonte Springs and Seminole County residents that the location houses the primary
area provider of health care services. • The positive economic momentum of Seminole County and re-development of nearby business and retail
properties in the high traffic SR-434 – Altamonte Springs Business Corridor. • The ease of access from I-4, Seminole County to the north and east and Orlando/Orange County to the south.
Advent Altamonte
Hospital
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KW COMMERCIAL - PARKS COMMERCIAL GROUP, LLC 11 S. BUMBY AVE, ORLANDO FL 32803
NET LEASE INVESTMENT OPPORTUNITY – ORLANDO AREA MEDICAL OFFICES
1807 Salk Drive - Tavares 1,850 SF
Projected Lease Year 1 Revenues Other Income $47,560.97 Sale Tax Pass Through -2,935.34
NET LEASE INVESTMENT OPPORTUNITY – ORLANDO AREA MEDICAL OFFICES
Attractive Property Features to Enhance Future Property Values
• The preferred location in an office park directly across US 441 from the Advent Health-Waterman hospital facility. • The current custom build-out within the building is designed for medical services. • The attractive, modern free-standing office building and 14 private parking spaces on the .46 AC site. • No HOA fees. • The nearby development and steady economic growth of Tavares, the US441 corridor and Lake County. • The ease of access to the location from US-441, Mount Dora, Tavares, Eustis and Leesburg and the greater
Lake County market area.
Advent Waterman Hospital
1807 Salk
1807 Salk Dr. Tavares, FL 32778
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KW COMMERCIAL - PARKS COMMERCIAL GROUP, LLC 11 S. BUMBY AVE, ORLANDO FL 32803
NET LEASE INVESTMENT OPPORTUNITY – ORLANDO AREA MEDICAL OFFICES
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Summary
The sale of the three medical office properties will be an outstanding opportunity to obtain a consistent and predictable passive investment portfolio asset.
These properties, accompanied by a multiple year lease from a national medical services provider, will be of great interest to high net worth individuals, investment groups or professional investment portfolio managers and as a §1031 replacement property.
The properties are ideally located within or adjacent to the medical complexes of three significant regional health care – hospital service providers. Orlando’s booming population growth has resulted in low office vacancy rates and high medical tenant activity which will lead to enhanced values of well-located medical service facilities.
• Three individual fully leased medical offices
• Guaranteed leases through March 2025
• Excellent locations for current and future growth • 2% annual rent increases
