actual location suntrust bank...suntrust banks inc operates throughout the united states as a...
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512 N RIDGEWOOD AVE | EDGEWATER (DAYTONA BEACH MSA), FLORIDA
SUNTRUST BANK
LONG TERM SINGLE TENANT SUNTRUST BANK LOCATED IN THE DAYTONA BEACH MSA LESS THAN 15 MINUTES FROM THE BEACH
ACTUAL LOCATION
new smyrna beach shopping center
classic new smyrna 12
mcdonalds mcdonalds
SPACE COASTCREDIT UNION
smyrna yacht club
new Smyrna beachhistoric district
INDIAN RIVER NORTHINDIAN RIVER NORTHINDIAN RIVER NORTHINDIAN RIVER NORTH
US-1/Ridgewood Ave 26,000 VPD INVESTMENT ADVISORS
MICHAEL BREWSTERDirector
MARC MANDELManaging Director
STEVE SCHRENKDirector
FINANCING
REBECCA VANREKENManaging Director
HFF1700 Market Street
Suite 3232Philadelphia, PA 19103
HFF250 S. Park Avenue
Suite 360Winter Park, FL 32789
Holliday Fenoglio Fowler, L.P. (Collectively “HFF”)
This Offering Memorandum has been prepared by HFF for use by a limited number of recipients. All information contained herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representation that no change in the business or affairs of the property or the Owner has occurred since the date of the preparation of the Offering Memorandum. All analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the recipient. HFF and Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in this Offering Memorandum.
Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors.
Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived.
The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient’s employees, agents and consultants (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directly or indirectly, disclose or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written authorization of HFF and the Owner, and (c) the Recipient and the need to know parties will not use or permit to be used this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or HFF or for any purpose other than use in considering whether to purchase the property. The Recipient and the need to know parties agree to keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above. If the Recipient has no interest in the property, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will return this Offering Memorandum to HFF.
INveSTmeNT SUmmARySUNTRUST BANK | 512 N RIDGEWOOD AVE | EDGEWATER (DAYTONA BEACH MSA), FLORIDA
Holliday Fenoglio Fowler, L.P. (“HFF”) Net Lease Advisory is pleased to exclusively offer a premier net lease opportunity to acquire a single tenant SunTrust Bank (the “Property”) located in Edgewater, FL with $58.3 million in deposits, just under 10 years of remaining lease term, and attractive 1.5% annual rental increases throughout the primary and option terms. SunTrust opened in 1986 and is located along Ridgewood Ave (US-1) which has 26,000 VPD as the main north-south roadway connecting the coastal community of Edgewater to New Smyrna Beach, one of Florida’s best beaches. The Property is fully leased to SunTrust Bank; which has over 24,000 employees, $211 billion of assets, an investment-grade BBB+ credit rating (S&P), and 427 branches in Florida.
Edgewater is part of the Daytona Beach MSA, less than 2 miles from the New Smyrna Beach Historic District, and less than a 15-minute drive to the beach. Edgewater ’s economy is driven by beach tourism, recreational and commercial marine industries in the Indian River Lagoon, and the Parktowne Industrial Park which is Volusia County’s largest industrial park situated on 342 acres and located 400 yards west of SunTrust.
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SUNTRUST BANK | EDGEWATER, FL |INvESTmENT SUmmARy4
I N V E S T M E N T S U M M A R Y
$2,614,000ASKING PRICE
5.75%CAP RATE
$150,318NOI
9.9 YEARSREMAINING LEASE TERM
SunTrust (BBB+) has just under 10 years of term remaining from
a 12-year lease extension with rental increases every year and no
landlord responsibilities
SunTrust’s deposits increased an outstanding 20% over
2017 to $58.3 million and the county deposit total increased
37% over the past 2 years
Significantly expanded customer area with the nearest
mainland SunTrust branches located 10 miles to the north
and 28 miles to the south
Strong average household income at $77,718 from 106,694 people within a 10-mile radius where
more than half of the survey area consists of water
The property is positioned on Ridgewood Ave (US-1) with
excellent visibility and exposure to over 26,000 VPD traveling to-and-
from New Smyrna Beach
Florida is SunTrust’s #1 market with $26.3 Billion in loans held
for investment, representing 18% of SunTrust’s total loans held for
investment
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SUNTRUST BANK | EDGEWATER, FL |INvESTmENT SUmmARy5
I N V E S T M E N T H I G H L I G H T S
US-1/RIDEGEWOOD AVENUE 26,000 VPD
INDIAN RIVER NORTHINDIAN RIVER NORTH
US-1/Ridgewood Ave 26,000 VPD
PARKTOWNE INDUSTRIAL CENTERvOLUSIA COUNTY’S LARGEST INDUSTRIAL PARK - 342 ACRES
BErT FISHMEDICAL CENTER
COASTAL INTEGRATIVE HEALTHCARE
lANE INSURANCE
hOLMES AUTO WORKS
EDGEWATER ALLIANCE CHURCH
ACCENT AMERICASTAFF SERVICE
RIVERSIDECLINICAL RESEARCH
CLASSICBARBER SHOP
ENDOCRINOLOGYOF CENTRAL FLORIDA
SPLASH-N-DASHCAR WASH
SPACE COASTCREDIT UNION
New smyrna beachshopping center
mcdonalds mcdonalds classic new smyrna 12
· · ·
SUNTRUST BANK | EDGEWATER, FL |INvESTmENT SUmmARy6
TeNANT OveRvIewSUNTRUST BANK | 512 N RIDGEWOOD AVE | EDGEWATER (DAYTONA BEACH MSA), FLORIDA
· · ·
SUNTRUST BANK | EDGEWATER, FL |TENANT OvERvIEW8
SunTrust Banks Inc operates throughout the United States as a diversified financial services institution. Headquartered in Atlanta, the Company has two business segments: Consumer and Wholesale. Its flagship subsidiary, SunTrust Bank, operates an extensive branch and ATM network throughout the high-growth Southeast and Mid-Atlantic states, along with 24-hour digital access. Certain business lines serve consumer, commercial, corporate, and institutional clients nationally. As of September 30, 2018, SunTrust had total assets of $211 billion and total deposits of $160 billion. The Company provides deposit, credit, trust, investment, mortgage, asset management, securities brokerage, and capital market services.
2017 Highlights – Consumer Banking
• Net interest income increased $233 million, or 7% compared to 2016, resulting from strong loan and deposit growth and continued balance sheet optimization.
• The average balance of loans held for investment increased 5% over 2016.
• Deposit growth continues to be a key contributor to net interest income momentum, with average balances up 3% year-over-year.
• SunTrust’s wealth management business as total management assets increased 11% compared to 2016.
2017 Highlights – Wholesale Banking
• Wholesale delivered record revenue and net income during 2017 due to favorable capital market conditions and continued success in meeting client needs.
• Total revenue increased $589 million compared to 2016 due primarily to increases in net interest income, investment banking income, commercial real estate related income, and a $107 million gain on the sale of PAC.
• Net interest income was a key contributor to strong revenue growth, up 11% compared to 2016 as a result of higher loan yields.
www.suntrust.com
CORPORATE OVERVIEW
Headquarters Atlanta, GA
Locations 1,400 branches & 2,160 ATM’s
Employees 24,000
Founded 1891
Ownership Public (NYSE: STI)
Assets $211 billion
S&P Credit Rating BBB+
Moody’s Credit Rating Baa1
Fitch Credit Rating A-
SUNTRUST BANK | 512 N RIDGEWOOD AVE | EDGEWATER (DAYTONA BEACH MSA), FLORIDA
FINANCIAL ANALySIS
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SUNTRUST BANK | EDGEWATER, FL |FINANcIAL ANALySIS10
L E A S E A B S T R A C T 5.75%Cap Rate
$2,614,000 Asking Price
LEASE DETAIL
Address 512 N Ridgewood Ave, Edgewater, Florida
Tenant SunTrust Bank
Lot Area 1.20 Acres
Size 4,266 SF
Year Built 1986
Annual Rent $150,318
Rent PSF $35.24
Lease Type Absolute NNN
Lease Commencement 3/28/2008
Lease Expiration 9/30/2028
Remaining Lease Term 9.9 Years
Remaining Options Six (6) Five (5) Year Options
RENT SCHEDULE
Description Dates Annual Rent Rent Increase
Base Term: Year 11 4/1/2018 - 3/30/2019 $148,097
Base Term: Year 12 4/1/2019 - 3/30/2020 $150,318 1.50%
Base Term: Year 13 4/1/2020 - 3/30/2021 $152,573 1.50%
Base Term: Year 14 4/1/2021 - 3/30/2022 $154,861 1.50%
Base Term: Year 15 4/1/2022 - 3/30/2023 $157,184 1.50%
Base Term: Year 16 4/1/2023 - 3/30/2024 $159,542 1.50%
Base Term: Year 17 4/1/2024 - 3/30/2025 $161,935 1.50%
Base Term: Year 18 4/1/2025 - 3/30/2026 $164,364 1.50%
Base Term: Year 19 4/1/2026 - 3/30/2027 $166,830 1.50%
Base Term: Year 20 4/1/2027 - 9/30/2028 $169,332 1.50%
Option Term: Years 21 - 25 10/1/2028 - 9/30/2033 $171,872 1.50% Annual
Option Term: Years 26 - 30 10/1/2033 - 9/30/2038 $185,155 1.50% Annual
Option Term: Years 31 - 35 10/1/2038 - 9/30/2043 FMV with 1.50% Increases
Option Term: Years 36 - 40 10/1/2043 - 9/30/2048 FMV with 1.50% Increases
Option Term: Years 41 - 45 10/1/2048 - 9/30/2053 FMV with 1.50% Increases
Option Term: Years 46 -50 10/1/2053 - 9/30/2058 FMV with 1.50% Increases
TENANT RESPONSIBILITY DETAIL
Maintenance and Repairs
Tenant shall perform all maintenance, repairs, refurbishing, and replacement work to the Leased Property, and shall keep the Leased Property in good condition and repair.
Insurance Tenant shall maintain and pay for property, liability, and worker’s compensation insurance.
Taxes Tenant shall pay all Real Estate Taxes for the leased property directly to the tax authority.
Utilities Tenant shall arrange for and pay for all utility charges in connection with the Property.
LANDLORD RESPONSIBILITY DETAIL
None
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SUNTRUST BANK | EDGEWATER, FL |FINANcIAL ANALySIS11
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OCCUPIEDPROPERTY BOUNDARY S I T E P L A N
US-1/Ridgewood Ave 26,000 VPD
Indian River North
Indian River North
Atlantic Ocean
Atlantic Ocean
FLORIDA HOSPITALNEW SMYRNA
PARKTOWNE INDUSTRIAL PARKLARGEST INDUSTRIAL PARK IN vOLUSIA COUNTY
342 ACRES
DAYTONA STATE COLLEGE NEW SMYRNA BEACH
900 STUDENTS
NEW SMYRNA BEACHHIGH SCHOOL
1,900 STUDENTS
NEW SMYRNA BEACHMIDDLE SCHOOL
1,170 STUDENTS
smyrna YACHT CLUB
new smyrna beach shopping center
classic new smyrna 12
new smyrna beach
SUNTRUST BANK | 512 N RIDGEWOOD AVE | EDGEWATER (DAYTONA BEACH MSA), FLORIDA
mARKeT OveRvIew
NEW SMYRNA BEACH OVERVIEWCovering approximately 1,100 square miles, Volusia County boasts 47 miles of sandy beaches stretching along the Atlantic Ocean. Roughly the size of Rhode Island, Volusia County is situated 50 miles northeast of Orlando, 60 miles north of the Kennedy Space Center, and 90 miles south of Jacksonville. Volusia County has 16 cities including principal cities Daytona Beach, Deltona and Ormond Beach. Each year, new residents are attracted to the area by appealing and increasing employment opportunities, relatively low cost of living, and the family-friendly atmosphere.
New Smyrna Beach is 43 miles from Downtown Orlando in Volusia County, and is heavily regarded as the best beach between Palm Coast and Vero Beach. As a result, New Smyrna Beach is a magnet for the highest demographic residents in the Orlando MSA. Further, the area benefits from the “snowbirds” that rent for the winter season providing for a year-round population base that far exceeds the stated census demographics. In the County, there is a variety of public and private higher education institutions including Daytona State College, University of Central Florida – Daytona, Bethune-Cookman University, Embry-Riddle Aeronautical University, and Stetson University. The major economic driver is tourism, which feeds the leisure and hospitality business and associated industries. Daytona International Speedway has become an international motorsports destination and hosts millions of visitors annually and undergoing a major renovation combined with the addition of a mixed use development dubbed One Daytona. The Daytona Beach – New Smyrna MSA has an estimated 2019 population of 663,125 residents with an average household income of $67,027.
BANKINGSunTrust in Edgewater serves a significantly expanded customer trade area with the nearest banks on the mainland located 10 miles north in Port Orange and 28 miles south in Titusville. SunTrust in Edgewater has a deposit base of $58.3 million and is ranked #1 in the zip code in front of Regions Bank ($42.5 million) and Friends Bank ($25.9 million). SunTrust’s deposit base as of June 2018 saw an outstanding 20% increase over June 2017. During the same period, SunTrust did not close any branches in Volusia County. Although in 2016, SunTrust did close 6 branches in Volusia County with an average deposit base of $47.7 million. Even with the branch closures in 2016, SunTrust’s total deposit base in Volusia County has grown 37% over the past two years resulting in stronger and more successful current day operations.
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mARKET OvERvIEW13 SUNTRUST BANK | EDGEWATER, FL |
EDGEWATER OVERVIEWEdgewater is located less than 2 miles from the New Smyrna Beach Historic District and residents enjoy direct access via Ridgewood Ave. New Smyrna Beach, one of Florida’s best beaches, is less than a 15-minute drive for recreation and employment. Tourism is strong and growing as evidenced by New Smyrna Beach and the Southeast Volusia Advertising Authority reaping a 5.1% increase in 2017 tax revenue generated from the 6% tourism tax on hotels and lodges. Tourism is expected to increase in 2018 with new restaurants such as the Riverpark Terrace and the French Quarter Grille in New Smyrna Beach. SpringHill Suites by Marriott opened by the beach in January 2018 and a 114-room Hyatt Place is under construction.
The coastal community is situated along the Indian River Lagoon which occupies more than 30% of Florida’s east coast. Due to the mix of temperate waters and sub-tropical waters, the Indian River Lagoon has been cited as among the most biologically diverse estuaries in North America and it supports 19,000 jobs and $250 million in annual income resulting from commercial and recreational activities. Citrus agriculture in the vicinity accounts for $2 billion per year and activities such as boating, fishing, water sports, hunting, and ecotourism generate $465 million annually. Commercial fishing in the Indian River Lagoon accounts for an astounding 15% of national fish and shellfish harvest.
Parktowne Industrial Park is located 400 yards west of SunTrust and is the largest industrial park in Volusia County at 342 acres. The park is home to numerous businesses in construction, marine industries, and distribution.
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SUNTRUST BANK | EDGEWATER, FL |mARKET OvERvIEW14
T R A D E A R E A D E M O G R A P H I C S POPULATION
3 MILES 5 MILES 10 MILES
2010 Census 27,214 47,833 96,419
2019 Estimate 29,025 51,807 106,694
2024 Projection 30,460 54,692 113,153
Growth Percent 2019 - 2024 4.94% 5.57% 6.05%
HOUSEHOLDS
3 MILES 5 MILES 10 MILES
2010 Census 11,365 21,946 43,457
2019 Estimate 12,737 23,787 47,910
2024 Projection 14,279 25,129 50,776
2019 Est. Average Household Income $70,704 $74,308 $77,718
2019 Est. Median Household Income $51,978 $53,956 $56,512
US-1/Ridgewood Ave 26,000 VPD
INDIAN RIVER NORTHINDIAN RIVER NORTHINDIAN RIVER NORTHINDIAN RIVER NORTH
ATLANTIC OCEANATLANTIC OCEANATLANTIC OCEANATLANTIC OCEAN
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HFF1700 Market Street
Suite 3232Philadelphia, PA 19103
HFF250 S. Park Avenue
Suite 360Winter Park, FL 32789
INVESTMENT ADVISORSMICHAEL BREWSTER
Director407.745.3911
MARC MANDELManaging Director
STEVE SCHRENKDirector
FINANCING REBECCA VANREKEN
Managing Director407.745.3912