offering memorandum the fountains shopping center€¦ · the fountains shopping center offering...
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The Fountains Shopping Centeroffering memorandum
8065, 8133, 8145, 8155 ardrey Kell roadCharlotte, nC, 28277
This Offering Memorandum and any subsequent
evaluation material you may be provided (collectively
known as the “Offering Memorandum”) is intended
solely for your limited use in considering whether to
pursue negotiations to acquire The Fountains Shopping
Center (the “Property”) located in Charlotte, North
Carolina. The Property is being marketed for sale by
Ackerman & Co. (“Broker”).
The Offering Memorandum contains brief, selected
information pertaining to the business and affairs of the
Property and has been prepared by Broker. It does not,
however, purport to be all-inclusive or to contain all of
the information that a prospective purchaser may desire.
Broker makes no representation or warranty, express
or implied, as to the accuracy or completeness of the
Offering Memorandum or any of its contents, and no
legal liability is assumed to be implied with respect
thereto.
By acknowledgment of your receipt of the Offering
Memorandum you agree that the Offering
Memorandum and its contents are confidential, that
you will hold and treat it in the strictest of confidence,
that you will not directly or indirectly disclose, or permit
anyone else to disclose, the Offering Memorandum
or its contents to any other person, firm, or entity
(including, without limitation, any principal for whom
you have been engaged), without prior written
authorization of Owner or Broker and that you will not
use or permit to be used the Offering Memorandum
or its contents to be copied or used in any fashion or
manner detrimental to the interest of Owner. Photocopy
or other duplication is strictly prohibited.
THE OFFERING MEMORANDUM SHALL NOT BE
DEEMED TO REPRESENT THAT STATE OF AFFAIRS
OF THE PROPERTY OR CONSTITUTE AN INDICATION
THAT THERE HAS BEEN NO CHANGE IN THE BUSINESS
OR AFFAIRS OF THE PROPERTY SINCE THE DATE OF
PREPARATION OF THE OFFERING MEMORANDUM.
The information provided in the Offering Memorandum
has been gathered from sources that are deemed
reliable, but the Broker does not warrant or represent
that the information is true or correct. Prospective
offerors are advised to verify information independently.
The Offering Memorandum is not to be construed as an
offer or as any part of a contract to sell the property.
Furthermore, the inclusion or exclusion in the Offering
Memorandum of information relating to asbestos or
any other hazardous, toxic or dangerous chemical item,
waste or substance (hereinafter collectively referred to
as “Waste”) relating to the Property shall in no way be
construed as creating any warranties or representations,
expressed or implied by the Broker as to the existence
or nonexistence or nature of Waste in, under or on the
Property, it may create significant legal and/or economic
obligations upon the Owner, lessee and/or other holders
of interest in the Property or a part thereof and you are
hereby advised to obtain professional assistance such
as from a consultant, engineer and/or attorney prior to
taking an interest in the Property or a part thereof.
CONFIDENTIAL INFORMATIONINFORMATION NOT WARRANTED
01 eXeCuTiVe SummarY investment Summary Location and demographics Property aerials Property Photographs
02 TenanT oVerView rent roll Site Plan
03 marKeT oVerView Charlotte, north Carolina Competitive Property Set detailed demographics
04 finanCiaL oVerView Summary of financial assumptions Cash flow Projections Lease expirations in-Place reconciliation
Table Of ContentsThE FOuNTAINS ShOppINg CENTER
ConTaCTS
ANDREW MURPHY Senior Vice President, Investment Sales 770.913.3950 | [email protected]
JASON POWELL, CCIMVice President, Investment Sales 770.913.3952 | [email protected]
The Fountains Shopping Center
eXeCuTiVe SummarY investment Summary Location and demographics Property aerials Property Photographs
01
the fountains shopping center 5
Currently 100% occupied, this center provides an investor with a stable cash flow, limited rollover risk, and a quality mixed used tenant group. This asset is being marketed for sale free and clear of any existing debt.
Investment highlights:
Superior Demographics: The Fountains Shopping Center is located in the heart of Ballantyne, one of Charlotte’s most affluent suburbs. The neighborhood of Ballanytne has seen significant growth over the past 20 years, as many of Charlotte’s affluent residents have migrated to the southern border of Charlotte. In 2010, the average annual household income within 3 miles of the Fountains development was over $133,000. Ballantyne is known as an area where young executives reside and the area consists of high-end homes engulfed within top notch country clubs.
Exceptional Market Fundamentals: The Fountains Shopping Center is located in the southern part of Charlotte, NC. The area is recognized by the wealthy residents that occupy the area and high-end real estate that surrounds them. There totals 1,556,466 square feet of competitive retail product immediately surrounding the Fountains and of that total square footage, the average per square foot is $29.50 pSF. Comparatively, the Fountains leases for $25.00 pSF (a $4.50 pSF advantage to the market). Within that same competitive set, the vacancy is 4.44% (roughly 10.00% lower than the average for the city of Charlotte).
Quality Tenant Mix / High Barriers to Entry: The Fountains Shopping Center is comprised of 11 quality tenants and offers a new owner limited rollover risk due to the individual size of the tenants (1,947 SF on average). In addition to the limited rollover risk, the Fountains has a high barrier to entry for prospective owners. The center is roughly 100,000 square feet, 100% leased, and is primarily owned by individual owners. The only opportunity to control a sizeable portion of this Class A center is to acquire this offering.
INVESTMENT SUMMARY
Ackerman & Co.’s Investment Sales Team is pleased to exclusively present for sale, The Fountains Shopping Center, a 21,421 – square-foot shopping center located in an affluent area of Charlotte, North Carolina.
01 Executive Summary
Square Footage: 21,421 Sf
Occupancy: 100%
Purchase Price: $5,050,000
Debt Structure: market; free & Clear
In-place NOI: $420,315
Investment Overview:
the fountains shopping center 6
Charlotte Golf Links
CedarwoodGolf Club
521
485
485485
16
16
84
Providence R
d
Ardrey Kell Rd Tom
Sho
rt R
d
Ballan tyne Commo ns PkwyLancaster Hwy Providence Rd
We ddin
gton
Mat
thew
s R
d
Fort Mia H wy
New Town RdCha
rlotte
Hw
y
Pineville M atthews Rd
Antioch C
hurch Rd
Tilley Morris Rd
Dorman R
d
the fountainS Shopping center 8065, 8133, 8145, 8155 Ardrey Kell roAdChArlotte, North CAroliNA 28277
The Fountains Development is located in the heart of Ballantyne, one of Charlotte’s most affluent suburbs. The neighborhood of Ballantyne has seen significant growth over the past 20 years as many of Charlotte’s affluent residents have migrated to southern border of Charlotte.
In 2010, the average annual household income within 3 miles of The Fountains Development was over $133,000. The Ballantyne area is widely populated with young executivess and the area consists of recently constructed homes, retail centers and country clubs.
LOCATION AND DEMOGRAPHICS
01 Executive Summary
Source: Costar®
TraffiC CounTS
16,454 VEHIclES Per daY on ardreY KeLL road
5,700 VEHIclES Per daY on Tom ShorT rd
DEMOgRAphIC SuMMARY
1 MIlE 3 MIlES 5 MIlES
population Estimate 9,742 59,847 137,425
Total households 3,172 21,099 50,921
Avg. hh Income Estimate $124,065 $133,174 $120,582
Median Age 36.2 36.9 36.8
Owner Occupied housing 82.2% 77.8% 73.4%
Population by Employment
Total Businesses 143 1,574 4,414
Total Employees 1,202 12,427 37,694
the fountains shopping center 7
Ardrey
Kell Rd Tom
Short Rd
reSidential reSidential
5,700 VEHIclES Per d
aY
16,45
4 VEH
IclE
S Per
daY
bldg. i
bldg. h
bldg. g
bldg. e
the fountainS Shopping center 8065, 8133, 8145, 8155 Ardrey Kell roAdChArlotte, North CAroliNA 28277
PROPERTY AERIAL
01 Executive Summary
the fountains shopping center 8
Tom Short RdAr
drey
Kell
Rd
5,700 VEHIclES Per daY 16
,454
VEH
IclE
S Pe
r daY
reSidential
reSidential
bldg. e
bldg. g
bldg. h
bldg. i
the fountainS Shopping center 8065, 8133, 8145, 8155 Ardrey Kell roAdChArlotte, North CAroliNA 28277
PROPERTY AERIAL
01 Executive Summary
the fountains shopping center 9
PROPERTY PHOTOGRAPHS
01 Executive Summary
the fountains shopping center 10
PROPERTY OVERVIEW
01 Executive Summary
the fountains shopping center 11
85
77
77
85
485
485
485
485
21
29
74
160
279
5149
27
27
24
601
601
NORTH CAROLINA
SOUTH CAROLINANORTH CAROLINA
SOUTH CAROLINA
Charlotte
GastoniaMunicipal
Airport
Charlotte DouglasInternational Airport
Providence Rd
Ardrey Ke ll Rd
E Independance Blvd
Brookshire Blvd
W W T Harris Blv
d
Har
risbu rg
Rd
Concord
P
kwy
Charlotte Hwy
Ballantyne
AREA MAP
01 Executive Summary
the fountainS Shopping center 8065, 8133, 8145, 8155 Ardrey Kell roAdChArlotte, North CAroliNA 28277
The Fountains Shopping Center
TenanT oVerView rent roll Site Plan
02
the fountains shopping center 13
RENT ROLL (As of May 9, 2012)
02 Tenant Overview
TenanT name TYPe & SuiTe number LeaSe
daTeS & Term
fLoor Sf bLdg Share
raTe & amounTPer Year
Per monTh
ChangeS on
ChangeSTo
CPi & CurrenTPorTerS’ wagemiSCeLLaneouS
monThSTo
abaTe
PCnTTo
abaTe
deSCriPTion of oPeraTing
eXPenSereimburSemenTS
imPrVmnTSraTe
amounT
CommSSnSraTe
amounT
aSSumPTion abouT
SubSequenT TermSfor ThiS TenanT
CommenTS
202 Fountains Office, Suite: 202h Jan-2009 to Apr-2014 64 Months
2,45311.45%
$24.75 $60,712 $2.06 $5,059
May-2013
$25.50
Full Service:
pays no expense reimbursement.
Market
$24.00/SF Mg
Acting Out Studio Office, Suite: 204h Jul-2007 to Dec-2014 90 Months
8864.14%
$19.00 $16,834 $1.58 $1,403
Jan-2013
Jan-2014
$19.57 $20.16
Tax & utilities
Market
$24.00/SF Mg
Acting Out Studio Office, Suite: 205h Jan-2012 to Dec-2014 36 Months
9664.51%
$19.00 $18,354 $1.58 $1,530
Jan-2013 Jan-2014
$19.57 $20.16
Tax & utilities
Market
$24.00/SF Mg
Ballancrest AcademyOffice, Suite: 101E Aug-2010 to Aug-2013 37 Months
3,626
16.93%
$21.92 $79,500 $1.83 $6,625
Aug-2012 Sep-2012
$22.33 $22.58
Net: pays a full pro-rata share of all reimbursable
expenses.
Market $24.00/SF Mg
One (1) x Three (3) Year Option with 3% Escalations.
Berkeley Wealth professionalsOffice, Suite: 203h Aug-2011 to Oct-2014 39 Months
1,3026.08%
$20.00 $26,040 $1.67 $2,170
Sep-2012 Aug-2013 Aug-2014
$20.60 $21.22 $21.86
utilities Only Market
$24.00/SF Mg One (1) x Two (2) Year Option
with 3% Escalations.
Edward Jones Office, Suite: 105I Mar-2007 to May-2015 99 Months
1,1575.40%
$21.78 $25,200 $1.82 $2,100
Jun-2013 Jun-2014
$22.43 $23.10
Net: pays a full pro-rata share of all reimbursable
expenses.
Market $24.00/SF Mg
One (1) x Five (5) Year Option at FMV.
Karcha Karate Retail, Suite: 104I Mar-2007 to Jun-2015 100 Months
2,45511.46%
$24.08 $59,120 $2.01 $4,927
Jul-2013 Jul-2014
$24.80 $25.55
Net: pays a full pro-rata share of all reimbursable
expenses.
Market $24.00/SF Mg
Moore Transportation Office, Suite: 207h Dec-2010 to Dec-2015 61 Months
8303.87%
$20.85 $17,304 $1.74 $1,442
Dec-2012 Jan-2013 Dec-2013 Jan-2014 Dec-2014 Jan-2015
$21.19 $21.47 $21.83 $22.12 $22.48 $22.78
Moore Transportation
Market $24.00/SF Mg
the fountains shopping center 14
RENT ROLL, cont’d. (As of May 9, 2012)
02 Tenant Overview
TenanT name TYPe & SuiTe number LeaSe
daTeS & Term
fLoor Sf bLdg Share
raTe & amounTPer Year
Per monTh
ChangeS on
ChangeSTo
CPi & CurrenTPorTerS’ wagemiSCeLLaneouS
monThSTo
abaTe
PCnTTo
abaTe
deSCriPTion of oPeraTing
eXPenSereimburSemenTS
imPrVmnTSraTe
amounT
CommSSnSraTe
amounT
aSSumPTion abouT
SubSequenT TermSfor ThiS TenanT
CommenTS
Onstage School of performingRetail, Suite: 104h Feb-2011 to Mar-2014 38 Months
1,0074.70%
$23.37 $23,534 $1.95 $1,961
Mar-2013 $24.03 CAM OnlyMarket
$24.00/SF Mg One (1) x Three (3) Year Option
with 3% Escalations.
Stadium VenturesRetail, Suite: 104 Feb-2010 to Feb-2015 61 Months
5,11123.86%
$28.12
$143,721 $2.34
$11,977
Feb-2013 Feb-2014
$28.96 $29.83
CAM Only
Market $28.00/SF Mg Two (2) x Five (5) Year Options.
Thoughtspan TechnologyOffice, Suite: 206h Apr-2010 to Jun-2013 39 Months
1,6287.60%
$21.22 $34,546 $1.77 $2,879
Apr-2013
$21.86
Thoughtspan
Technology
Market $24.00/SF Mg
Total Occupied SF 21,421 100.0%
Total Available SF 0 0.0%
Total Property SF 21,421 100.0%
the fountains shopping center 15
SITE PLAN
BUILD
ING K
BUILD
ING J
BUILDING BBUILDING C BUILDING D
StE. 101StE. 102
StE. 101
BUILDING A
BUILDING EStE. 101
StE. 104
StE.
101
StE.
101
StE.
101
StE. 300
StE.
102
StE.
102
StE. 200
StE.
103
StE.
103StE. 100
StE. 104StE. 101 StE. 102 StE. 103
StE. 105
StE. 204StE. 203 StE. 202
StE. 201StE.
102 StE.
103
StE. 101
BUILD
ING G
BUILDING H
BUILDING F
StE. 101StE. 101
StE. 102
StE.
104StE.
105StE.
106BUILDING H
BUILDING M
BUILDING L
BUILDING IBUILDING I
SECOND FLOOR
BUILDING H
SECOND FLOOR
BUILDING IStE. 101
BUILDING N
ARDRE
Y KE
LL R
DtO
M SH
ORt RD
StE.
101
StE.
101
StE.
102
StE.
103
StE.
104
StE.
105
the fountainS Shopping center 8065, 8133, 8145, 8155 Ardrey Kell roAdChArlotte, North CAroliNA 28277
02 Tenant Overview
The Fountains Shopping Center
marKeT oVerView Charlotte, north Carolina Competitive Property Set detailed demographics
03
the fountains shopping center 17
According to the Charlotte Chamber of Commerce, the estimated MSA population for 2010 was 1.8 million with an estimated city population of 731,424 making Charlotte one of the 25 largest cities in the United States. The projected 2021 MSA population for Charlotte is 2.5 million.
03 Market OverviewCHARLOTTE, NORTH CAROLINA
Corporate Charlotte
Charlotte is the second largest banking center in the united States with over $2.3 trillion in assets. Bank of America, the nation’s largest bank, is headquartered in Charlotte and Wells Fargo, the nation’s fourth largest bank, heads their East Coast operations and Retail Banking Division out of Charlotte. In addition to banking, Charlotte is home to seven fortune 500 companies making it the 8th ranked u.S. city for Fortune 500 headquarters.
Ballantyne Neighborhood
The neighborhood of Ballantyne is an elite corporate suburb on the south side of Charlotte. The area is made up of approximately 2,000 acres of land alongside the southern border of Charlotte. The Ballantyne neighborhood features high end residential, retail centers and top country clubs. Ballantyne is widely regarded as the most affluent area in Charlotte and is mainly occupied by young executives. The median age for residents within a 3 mile radius of The Fountains Development was 37 in 2010, with an average household income of over $133,000. In April 2012, local officials met to discuss the potential of transforming Ballantyne into its own city. The proposed city would include approximately 100,000 residents on the south side of Charlotte.
TOp u.S. CITIES WITh FORTuNE 500 hQ
ChARLOTTE AREA’S FORTuNE 500 hEADQuARTERS
*Lowe’s is located just outside of Charlotte in Iredell CountySource: Charlotte Chamber of Commerce
rank City headquarter
1 new York City 42
2 houston 24
3 dallas 12
4 atlanta 10
5 minneapolis 10
6 Chicago 9
7 St. Louis 8
8 Charlotte 7*
9 San francisco 7
name revenue rank
bank of america (banking) $150.5 b 5
Lowe's (retail)* $47.2 b 42
duke energy (utilities) $12.7 b 181
nucor (metals) $11.2 b 206
family dollar (retail) $7.4 b 305
goodrich Corp. (aerospace and defense) $6.7 b 334
Sonic automotive (automotive retailing) $6.3 b 345
SPX (electronics) $4.9 b 427
the fountains shopping center 18
Charlotte Golf Links
CedarwoodGolf Club
521
485
485
485
16
16
84
NORTH CAROLINA
SOUTH CAROLINA
Providence R
d
Ardrey Kell Rd
Rea Rd
Tom
Sho
rt R
d
Balla ntyne Comm ons Pkwy
Lancaster Hwy
John
ston
Rd
Providence R d
Weddi ngto n
Mat
thew
s R
d
Prov
iden
ce R
d
Marvin R
dFort Mia H wy
New Town RdCha
rlotte
Hw
y
Pineville Matthews Rd
We
ddington Rd
Antioch C
hurch Rd
Tilley Morris Rd
Providence Rd
Dorman R
d
James G Martin F wy1
12
11
10
5
2
4
6
7
9
3
8
03 Market OverviewCompetitive property map (Ballantyne neighBorhood)
the fountainS Shopping center 8065, 8133, 8145, 8155 Ardrey Kell roAdChArlotte, North CAroliNA 28277
28277 zip Code
the fountains shopping center 19
1 5 9
2 6 10
3 7 11
4 8 12
5310 ballantyne Commons Pky
Total Project Sf 120,487
Total Vacant Sf 0
asking rate negotiable
12206 Copper way
Total Project Sf 138,000
Total Vacant Sf 8,680
asking rate $26.00
9720 rea road
Total Project Sf 455,107
Total Vacant Sf 1,063
asking rate negotiable
14825 ballantyne Village way
Total Project Sf 175,000
Total Vacant Sf 16,956
asking rate negotiable
16045 Johnston road hunter’s Crossing
Total Project Sf 69,536
Total Vacant Sf 7,566
asking rate negotiable
16051 Lancanster highway
Total Project Sf 21,815
Total Vacant Sf 6,000
asking rate $28.00
8620 Camfield Street Camfield Corners
Total Project Sf 69,910
Total Vacant Sf 2,400
asking rate negotiable
16615 Lancaster highway retail a
Total Project Sf 10,262
Total Vacant Sf 4,210
asking rate $26.00
7850 william Pond Lane
Total Project Sf 6,000
Total Vacant Sf 6,000
asking rate $38.00
13855 Conlan Circle ballantyne Shopping Center
Total Project Sf 10,000
Total Vacant Sf 3,416
asking rate negotiable
7824 rea road
Total Project Sf 419,914
Total Vacant Sf 7,172
asking rate negotiable
12217 n. Community house road
Total Project Sf 60,435
Total Vacant Sf 5,614
asking rate $28.00
03 Market OverviewCompetitive property set (Ballantyne neighBorhood – 28277 Zip Code)
ToTaL Sf 1,556,466
ToTaL aVaiLabLe Sf69,077
ToTaL VaCanCY raTe 4.44%
aVg. aSKing PriCe PSf (nnn)$29.50
the fountains shopping center 2003 Market OverviewDETAILED DEMOGRAPHICS
gROWTh
The population within a 5-mile radius has grown tremendously from 40,165 in 1990 to 137,425 in 2010. The population is expected to rise to 165,993 in 2015.
demograPhiCS 1 miLe 3 miLeS 5 miLeS
2010 Population 9,742 59,847 137,425
2015 Projected Population 12,055 73,434 165,933
2000 Census Population 4,782 33,265 78,922
1990 Census Population 1,241 11,176 40,165
growth 2010 - 2015 4.35% 5.9% 3.84%
growth 2000 - 2010 7.19% 5.9% 5.56%
2010 median age 36.2 36.9 36.8
Total employees 1,202 12,427 37,694
Total businesses 143 1,574 4,414
2010 households 3,172 21,099 50,921
2015 Projected households 3,949 25,867 61,402
2000 Census households 1,798 11,681 29,181
1990 Census households 368 3,726 14,070
growth 2010 - 2015 4.48% 4.16% 3.81%
growth 2000 - 2010 7.59% 5.94% 5.58%
2010 average household Size 3.07 2.83 2.69
2010 median household income $102,011 $105,329 $95,735
2010 average household income $124,065 $133,174 $120,582
2010 Per Capita income $42,274 $47,080 $44,829
2010 owner occupied units 82.2% 77.8% 73.4%
2010 renter occupied units 10.7% 15.1% 18.7%
pOpuLATION
The Fountains Shopping Center
finanCiaL oVerView Summary of financial assumptions Cash flow Projections Lease expirations in-Place reconciliation
04
the fountains shopping center 22
SUMMARY OF FINANCIAL ASSUMPTIONS
04 Financial Overview
gLobaL
Analysis period
Commencement Date July 1, 2012
End Date June 30, 2022
Term 10 Years
Area Measures
Building Square Footage (RSF) 21,421 SF
Consumer price Index (CpI) 2.00%
Vacancy Loss [1] 5.00%
reVenue aSSumPTionS
Market Rent growth
2013 - 2.00%2014 - 2.00%2015 - 2.00%2016 - 2.00%2017 - 2.00%
2018 - 2.00%2019 - 2.00%2020 - 2.00%2021 - 2.00%2022 - 2.00%
eXPenSe aSSumPTionS
growth Rates
Operating Expenses 2.00%
Capital Reserves 2.00%
property Taxes 2.00%
property Taxes Reassessed No
Management Fee (% of EgR) 3.00%
Operating Expense Source [2] CY 2011 p&L
2011 Capital Reserves $0.15 pSF
marKeT LeaSing - 2nd generaTion
Retention Ratio 75%
Lease Term 5 Years
2012 Annual Market Rent
Office/Retail $24.00 pSF
Restaurant/Bar $28.00 pSF
Rent Adjustment 3.00% Annually
Expense Recovery Type Modified gross
2012 Tenant Improvements
New $4.00 pSF
Renewal $2.00 pSF
Weighted Average - All Suites $2.50 pSF
Commissions
New 6.00%
Renewal 3.00%
Weighted Average 3.75%
Downtime
New 6 Month(s)
Weighted Average [3] 2 Month(s)
[1] A vacancy loss of 5.00% has been assumed for this analysis; no tenants have been excluded.
[2] Operating Expenses are based on CY 2011 operating expenses. All entered expenses are expected to grow at 2.00% annually for the duration of the holding period.
[3] The weighted average downtime has been rounded to the nearest whole month.
General Property Notes
the fountains shopping center 23
CASH FLOW PROJECTIONS
04 Financial Overview
Fiscal Year ending - june 30 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023FY 2013
Potential Gross Revenue $/SF/YR
Base Rental Revenue $23.86 $511,077 $533,163 $549,785 $565,229 $582,529 $600,002 $612,790 $621,194 $627,252 $643,957 $663,274
Absorption & Turnover Vacancy 0.00 0 (35,553) (40,347) (16,400) 0 0 (25,936) (55,474) (20,818) 0 0
Scheduled Base Rental Revenue 23.86 511,077 497,610 509,438 548,829 582,529 600,002 586,854 565,720 606,434 643,957 663,274
Expense Recoveries 3.45 73,871 70,430 95,096 112,821 122,553 125,961 123,112 118,708 126,415 135,158 139,235
Total Potential Gross Revenue 27.31 584,948 568,040 604,534 661,650 705,082 725,963 709,966 684,428 732,849 779,115 802,509 Vacancy Loss (1.19) (25,554) 0 0 (11,861) (29,126) (30,000) (4,704) 0 (10,545) (32,198) (33,164)
Effective Gross Revenue 26.11 559,394 568,040 604,534 649,789 675,956 695,963 705,262 684,428 722,304 746,917 769,345
Operating Expenses
Management Fees (0.78) (16,782) (17,041) (18,136) (19,494) (20,279) (20,879) (21,158) (20,533) (21,669) (22,408) (23,080)
Association Dues (3.50) (74,974) (76,473) (78,002) (79,562) (81,154) (82,777) (84,432) (86,121) (87,843) (89,600) (91,392)
Real Estate Taxes (2.30) (49,249) (50,234) (51,239) (52,263) (53,309) (54,375) (55,462) (56,572) (57,703) (58,857) (60,034)
Maintenance (0.49) (10,576) (10,788) (11,003) (11,223) (11,448) (11,677) (11,910) (12,148) (12,391) (12,639) (12,892)
Utilities (0.31) (6,742) (6,877) (7,014) (7,155) (7,298) (7,444) (7,593) (7,744) (7,899) (8,057) (8,218)
Insurance (0.13) (2,874) (2,931) (2,990) (3,050) (3,111) (3,173) (3,237) (3,301) (3,367) (3,435) (3,503)
Non-Reimbursable (0.14) (2,960) (3,019) (3,080) (3,141) (3,204) (3,268) (3,333) (3,400) (3,468) (3,537) (3,608)
Total Operating Expenses (7.66) (164,157) (167,363) (171,464) (175,888) (179,803) (183,593) (187,125) (189,819) (194,340) (198,533) (202,727)
Net Operating Income 18.45 395,237 400,677 433,070 473,901 496,153 512,370 518,137 494,609 527,964 548,384 566,618
Leasing And Capital Costs
Tenant Improvements 0.00 0 (15,965) (27,878) (11,785) 0 0 (14,792) (18,993) (27,982) 0 0
Leasing Commissions 0.00 0 (30,515) (57,518) (22,525) 0 0 (28,272) (36,302) (58,251) 0 0
Capital Reserves (0.15) (3,213) (3,277) (3,343) (3,410) (3,478) (3,548) (3,619) (3,691) (3,765) (3,840) (3,917)
Total Lease and Capital Costs (0.15) (3,213) (49,757) (88,739) (37,720) (3,478) (3,548) (46,683) (58,986) (89,998) (3,840) (3,917)
Operating Cash Flow 18.30 392,024 350,920 344,331 436,181 492,675 508,822 471,454 435,623 437,966 544,544 562,701
the fountains shopping center 24
EXISTING LEASE EXPIRATIONS
04 Financial Overview
fiSCaL Year number of SuiTeS renTabLe Square feeT eXPiring annuaL [1] CumuLaTiVe [1]
2013 1 1,628 7.60% 7.60%
2014 1 3,626 16.93% 24.53%
2015 2 3,450 16.11% 40.63%
2016 6 11,887 55.49% 96.13%
2017 1 830 3.87% 100.00%
Beyond 0 0 0.00% 100.00%
Subtotal 11 21,421 100.00% 100.00%
Vacant 0 0 0.00% 100.00%
ToTaL 11 21,421 100.00% 100.00%
0
10,000
20,000
‘13 ‘15 ‘Beyond‘14 ‘17‘16
REN
TABL
E SQ
uA
RE F
EET
[1] Based on 21,421 Square Feet.
the fountains shopping center 25
IN-PLACE INCOME RECONCILIATION(Fiscal Year Ending June 30)
04 Financial Overview
TenanT Square feeTLeaSe
CommenCe-menT
LeaSe TerminaTion
2013 baSe renT PSf
2013 baSe renT
2013 oPer. eXP reCoVerieS
2013 groSS renT
202 Fountains 2,453 1/09 4/14 $24.87 $61,018 $0 $61,018
Acting Out Studio 886 7/07 12/14 19.29 17,087 279 17,366
Acting Out Studio 966 1/12 12/14 19.28 18,629 304 18,933
Balaca Ballancrest Academy 3,626 8/10 8/13 22.51 81,609 27,408 109,017
Berkeley Wealth professionals 1,302 8/11 10/14 20.50 26,691 410 27,101
Edward Jones 1,157 3/07 5/15 21.83 25,263 8,745 34,008
Karcha Karate 2,455 3/07 6/15 24.08 59,120 18,556 77,676
Moore Transportation 830 12/10 12/15 21.19 17,587 275 17,862
Onstage School of performing 1,007 2/11 3/14 23.59 23,756 5,161 28,917
Staven Stadium Ventures 5,111 2/10 2/15 28.47 145,510 12,493 158,003
Thoughtspan Technology 1,628 4/10 6/13 21.38 34,807 539 35,346
21,421 $511,077 $74,170 $585, 247
Vacant 0 Other Income 0
Total Square Footage 21,421 Effective gross Income $585,247
Expenses
Management Fees (17,557)
Association Dues (74,974)
Real Estate Taxes (49,249)
Maintenance (10,576)
utilities (6,742)
Insurance (2,874)
Non-Reimbursable (2,960)
Total Expenses ($164,932)
Net Operating Income $420,315
© 2012 Ackerman & Co. All rights reserved.
FOR MORE INFORMAtION, PLEASE CONtACt:
JASON POWELL, CCIMVice President, Investment Sales [email protected]
ANDREW MURPHYSenior Vice President, Investment Sales [email protected]