FOR SALE: THE SHOPPES AT JUPITER JUPITER, FLORIDA - JOHN F. BELL - Managing Director
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FOR SALE: JOHN F. BELL - Managing Director
THE SHOPPES AT JUPITER John.Bell@Transwestern.com
305.808.7820
JUPITER, FLORIDA Shoppes at Jupiter 1
Stabilized Opportunity with Value Add Returns EXECUTIVE SUMMARY
Shoppes at Jupiter
2014 Renovations / Below Market Rents / Dominant Community Center in its Market
The Opportunity Project Name: Shoppes at Jupiter
Transwestern and Auction.com have been retained on an exclusive Street Address: 201 N. US 1
basis to arrange the sale of the Shoppes at Jupiter.
City, State: Jupiter, FL
Year Built/Renovated: 1981 Renovated 2014/15
Diverse Anchor Draw Captures Superior Market Share Total Rentable Area: 196,941
Cinepolis Opening Will Enhance In-Line Tenants’ Sales Total Land Area: 24.35 Acres / 19.12 Usable Acres
First Year Expirations Minimal Occupancy: 94% / 22 tenants
Parking: 5.53 /1000
Stable Jupiter Market Inventory - No New Construction
Community Center anchored by Bealls Outlet,
Type:
Cinepolis, Gold’s Gym and Staples.
Outparcels McDonald’s, Chase Bank, Chili’s – included in offering.
NOI – In-Place Actual $1,859,388
Auction.com. Key Dates:
Due Diligence Review: Current – June 24th
Online Live Bidding – Opens June 22nd and Ends on June 24th
Please go to the following web page to access the full offering
package and due diligence materials on Auction.com. Link:
http://www.auction.com/florida/commercial-auction-
asset/193033154-7805-201-north-us-highway-1-jupiter-fl-
33477-b_143
Shoppes at Jupiter 2
Institutional Quality / Value Add Returns EXECUTIVE SUMMARY
KEY INVESTMENT POINTS
• CONTEMPORARY & RENOVATED
2014 Renovations include new roof, resurfaced and striped
parking, new signage, and painting of center.
• DIVERSIFIED ANCHOR DRAW
Bealls, Gold’s Gym, Staples and Cinepolis offer a steady and
strong customer draw to the center.
• AFFLUENT TRADE AREA
HH income over $97,000. Broad demand base from both
surrounding middle income and affluent neighborhoods.
• CINEPOLIS
Upscale movie experience with tenant investing significant
build out to create one of the region’s most distinctive movie
experiences, upon opening in June will further enhance the
already competitive position of the center.
• MANY TENANTS BELOW MARKET
Upside opportunity upon rollover to spike returns.
McDonald‘s and Chili’s significantly below market.
In-Line tenants & Anchors Beall’s, Gold’s Gym, Staples
Below Market.
• OUTPARCEL SEPARATE PLATTING UNDERWAY
Enhance returns by potentially selling high demand outparcels
to tenants or investors at cap rates of 4.5% to 5.5%.
• GROWING DEMAND WITH STABLE INVENTORY Market
vacancy only 7.5% , and improving, with no new construction.
• LOYAL TENANCY
Extremely high retention rate and long tenant tenure.
• MINIMIAL ROLLOVER OF 5.04% in Year 1: Chase, McDonald’s
high probability of renewal resulting in only 1.2% rollover.
Shoppes at Jupiter 3
Jupiter View Looking South EXECUTIVE SUMMARY
Shoppes at Jupiter 4
Location – Heart of Jupiter – Strong Demographics EXECUTIVE SUMMARY
Jupiter Average Household Income
% over % over 2015-2020
Area 2015 2020
$100k $100k ann. growth
1-mile $93,377 30.3% $105,761 35.3% 2.52%
3-mile $97,720 32.5% $110,275 36.9% 2.45%
5-mile $109,451 36.8% $123,906 41.6% 2.51%
Shoppes at Jupiter 5
Aerial EXECUTIVE SUMMARY
Shoppes at Jupiter 6
Affluent Jupiter Location : View Looking EXECUTIVE SUMMARY
Northeast
Average HH Income Radius: 1 Mile: $93,377 / 3 Miles: $97,720 / 5 Miles: $109,451
Shoppes at Jupiter 7
Anchors & Outparcels EXECUTIVE SUMMARY
Shoppes at Jupiter 8
Strong Anchor Mix – Dominant Center in Its Market EXECUTIVE SUMMARY
Beall's, Staples, Gold's Gym All Below
Cinepolis – 70,073 SF Prestigious Anchor Opening in June 2015
Market
Anchor Specific Terms
Tenant Size % of Center Expiration
Cinepolis 70,073 35.6% 11/30/2029
Bealls 36,000 18.3% 4/30/2017
Staples 21,515 10.9% 2/28/2017
Cinépolis USA is a luxury cinema experience providing guest with a Gold's Gym 19,910 10.1% 8/31/2023
high level class of service. All of our theaters are the perfect Total Anchors 147,498 74.9%
Total Center 196,941
combination between high-end comfort, and modern functionality.
Cinépolis USA offers state of the art digital Projection and Sound
equipment. We provide our guests with active 3D technology for an
immersive and unique 3D viewing experience.
Reserved seating -Exclusive lobby with restaurant and bar
Gourmet appetizers and entrées with a full in theater dining http://www.beallsflorida.com/online/content/about
menu
Full bar: wines, spirits and beers for in theater enjoyment
Fully-reclining, stadium style, leather lounge chairs
http://www.cinepolisusa.com/cinepolis-experience.aspx
http://www.staples.com/sbd/cre/marketing/about_us/index.html
http://www.goldsgym.com/why-golds-gym/about-golds/
Shoppes at Jupiter 9
Outparcel Upside Opportunity EXECUTIVE SUMMARY
Tenant Suite Size Lease Option Terms Option Rent Assumption
Expiration
Chase OP1 2,920 2/29/2016 3 x 5 yr options 2016 Option @ Estimated $164,581 annual rent. Option Excersised,
2021 Option @ Option Three Estimated Rent:$177,303 Below Market
2026 Option @ Option Four Estimated Rent: $191,008
McDonald's OP2 4,725 12/25/2016 1 x 5yr options Original Lease 1979 at 20 yr term w 4x5 yr options Option Excersised,
2001 Option Exercised Below Market
2006 Option Exercised
2011 Option Exercised
Final Option @ $63,840/ yr ($13.51 psf)
Chilli's OP3 5,639 12/4/2017 3 x 5yr options Original Lease 1992 at 20 yr term, 4x5 yr options Option Excersised,
2012 Option Exercised Below Market
2nd Option @ $90k/ yr ($15.96 psf)
3rd Option @ $95k/yr ($16.85 psf)
4th Option @ 100k/yr ($17.73 psf)
• Chase is expected to renew, and also made an offer to purchase their pad for $2.5 million.
• McDonald’s wants to renovate their restaurant and extend their lease, initial overtures by
McDonald‘s to extend lease at a rent similar to their final option rent. Ownership projects a
significantly higher market rent, which Transwestern projects at $150,000, and has not
accepted tenant's lowball rate.
• Chili’s is paying $84,980, and sits on a hard corner highly coveted by a variety of retailers. CVS Value Add Opportunities
is one in particular and is negotiating with buying out Chili‘s and moving them to a new
location and then take their place in center. Market rent is $200,000 for site. A potential long • Enhance cash flow
team deal with CVS, or similar tenant, is a distinct possibility for new owner. • Sale of Chase pad
• We have conservatively projected renewals for each outparcel in our cash flow, but the • Recast Chili‘s with new
opportunity for a new owner to spike returns based on above circumstances should be higher paying tenant.
strongly considered by prospective purchasers.
• Total Outparcel Rent is
currently $237,000 below
market.
Shoppes at Jupiter 10As-Is NOI vs. Year One Pro Forma EXECUTIVE SUMMARY
In Place Per/SF Pro Forma Per/SF Budget
FY ending June 30th Year 1 Year 1 2015 CASH FLOW
Rental Revenue
Potential Base Rent 2,460,724 $12.51 $2,581,039 $13.13 $2,633,796
COMPARISON
Absorption & Turnover Vacancy $0 $0.00 -$0.02
Free Rent $0 $0.00
($4,280)
($34,902) -$0.18
($184,442)
$0 • As Is cash flow
Total Rental Revenue $2,460,724 $12.51 $2,541,857 $12.93 $2,449,354 contains existing
tenants only, no
Other Tenant Revenue
Expense Recoveries 342,619 $1.74 $375,170 $1.91 $382,048 vacant space lease
Percentage Rent 28,500 $0.14 $28,500 $0.14 $0 up. Occupancy 94%.
Total Other Tenant Revenue $371,119 $1.89 $403,670 $2.05 $382,048
Total Tenant Revenue $2,831,842 $14.40 $2,945,528 $14.98 $2,831,402 • Proforma cash flow
is based on leasing
Potential Gross Revenue $2,831,842 $14.40 $2,945,528 $14.98 $2,831,402
vacant space to
100% occupancy,
Vacancy Allowance $0 $0.00 ($113,541) -$0.58 $0 and employing a 6%
Effective Gross Revenue $2,831,842 $14.40 $2,831,986 $14.40 $2,831,402 overall vacancy
factor for the center.
Operating Expenses
Real Estate Taxes- Main Parcel $408,503 $2.08 $408,503 $2.08 $448,530
Real Estate Taxes- Outparcel $27,443 $0.14 $27,443 $0.14 $0 • Budget prepared by
Management Fees $113,274 $0.58 $113,279 $0.58 $113,257 Management
Property Insurance $77,604 $0.39 $77,604 $0.39 $77,604 Company.
Utilities $116,175 $0.59 $116,175 $0.59 $116,175
Repairs and Maintenance $144,555 $0.74 $144,555 $0.74 $145,670
Janitorial $73,050 $0.37 $73,050 $0.37 $71,850 • 100% leased no
Payroll & Benefits $0 $0.00 $0 $0.00 $0 vacancy NOI would
Advertising and Marketing
Professional Fees
$9,000
$0
$0.05
$0.00
$9,000
$0
$0.05
$0.00
$9,000
$0
be $1,973,000.
General & Administrative $2,850 $0.01 $2,850 $0.01 $2,850
Ground Rent $0 $0.00 $0 $0.00 $0
Other Expenses $0 $0.00 $0 $0.00 $0
Total Operating Expenses $972,454 $4.95 $972,460 $4.95 $984,936
Net Operating Income $1,859,388 $9.46 $1,859,527 $9.46 $1,846,466
Shoppes at Jupiter 11Plug and Play Financing EXECUTIVE SUMMARY
Shoppes at Jupiter Financing Opportunity
Long-term CMBS fixed rate financing is available from Starwood
Mortgage Capital (SMC) for the acquisition of this property. Starwood
Mortgage Capital is a direct lender and is a wholly owned subsidiary of
Starwood Property Trust, Inc. and LNR Property LLC.
CMBS Long-Term Fixed Rate Loan
Up to $17,250,000
5-, 7- or 10-year loan terms
30-year amortization; Interest-only may be available based on loan-
to-purchase price
Lowest fixed interest rates available; call for current rate quotes.
Rates will vary based on loan-to-purchase price. For more information on SMC’s loan terms,
please refer to the following term sheet and
No origination fee contact:
Non-recourse, except for standard CMBS non-recourse carve-outs Steve DeRose
(305) 695-5845
Advantages:
sderose@starwood.com
Deal already underwritten.
Seamless Execution. Max Dorsch
(305) 695-5058
Starwood approving a bidder for financing allows the buyer to be mdorsch@starwood.com
pre approved regarding proof of funds waiving requirement to
show full amount of liquid funds equal to their maximum
potential bid.
Shoppes at Jupiter 12Auction Efficiency & Process EXECUTIVE SUMMARY
DUE DILIGENCE MATERIALS – IMMEDIATE ACCESS INVESTOR ADVANTAGES
Due Diligence Vault: All property due diligence information will be • Transparency: Never Overpay, if market bids less than
located in the Auction.com on-line data vault. your value.
• Less nimble buyers not participating in bidding means
• Complete Leases less competition and better opportunity to acquire at
• Current Property Condition Report by Third Party attractive pricing.
• Environmental Report
• Financials
• Efficient and ability to get “Last Look.”
• Survey
Auction.com. Key Dates:
• Photos, Offering Memoranda
Due Diligence Review Marketing Period: Current – June 24th
Everything required to efficiently & thoroughly complete diligence Online Live Bidding – Opens June 22nd and Ends on June 24th
with ease. Additional diligence requests will be considered and
every attempt to provide. Please go to the following web page to access the full offering package
and due diligence materials on Auction.com. Link:
Auction.com registration questions may be made to: http://www.auction.com/florida/commercial-auction-asset/193033154-
Casey Petersen: 949-672-3623. \ CaseyP@auction.com 7805-201-north-us-highway-1-jupiter-fl-33477-b_143
THE OFFERING PROCESS
DUE DILIGENCE: Transwestern, in conjunction with Auction.com Commercial, will conduct an auction sale process on the website
www.auction.com. Prospective bidders will execute a confidentiality agreement, and then be given access to an online archival bank of
information in the due diligence vault. Conduct your due diligence by visiting the secure data vault. All due diligence must be conducted prior to
signing the contract. Please contact Transwestern concerning any due diligence questions, or additional requests for materials.
REGISTRATION: Prospective bidders will be required to register with Auction.com to bid. If you are the winning bidder, your bidder deposit may
be applied toward the earnest money deposit. If you are a non-winning bidder, your bidder deposit will be refunded following the auction.
PROOF OF FUNDS: The Seller requires bidders to provide proof of their liquidity in an amount of at least their anticipated maximum bid.
Generally, recent bank statements, brokerage account statements, or bank letters are acceptable. A line of credit statement may be acceptable
only if it is already closed in place, has undrawn capacity, and may be funded immediately without bank approval. Capital call agreements,
investor equity commitments, and the like, are evaluated on a case-by-case basis. The acceptance of any proof of funds documents are made at
the sole and absolute discretion of Auction.com Commercial. Contact Transwestern for any Exemptions to this requirement.
Shoppes at Jupiter 13Contacts
Investment Sale Contacts:
Auction.com. Key Dates:
Due Diligence Review Marketing Period: Current Primary Contact:
– June 24th John F. Bell
Online Live Bidding – Opens June 22nd and Ends Mariano Perez
Managing Director
on June 24th
Miami, FL Associate
D: 305.808.7820 Miami, FL
Please go to the following web page to access the M: 305.798.7438 D: 305.808.7314
full offering package and due diligence materials John.Bell@transwestern.com Mariano.Perez@transwestern.com
on Auction.com. Link: No warranty or representation, express or implied, is made as to the accuracy of the information
http://www.auction.com/florida/commercial- contained herein, and same is submitted subject to omissions, change of price, rental or other
auction-asset/193033154-7805-201-north-us- condition, without notice, and to any listing conditions, imposed by owner.
highway-1-jupiter-fl-33477-b_143
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