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FOUNDATION BUILDING MATERIALS
1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
marketing package
TABLE OF CONTENTS
03 Portfolio Overview 04 Investment Summary 05 Lease Summary 06 Building Features 07 Rent Schedule 08 Rent Comparables 09 Retail Aerial 10 Developments 12 Retail Aerial 14 Site Plan 15 About the Brand 16 Location Overview CONTACT INFORMATION
CORY KRUPINSKY Associate (818) 620-3989
richard brehaut Director (909) 560-3010
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1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
PORTFOLIO OVERVIEW TOTAL
LIST PRICE
$27,000,000 Cumulative GLA
250,711 SF
Average Price / SF Average List Price / Asset
$107.69 $5,400,000
Average CAP Rate
5.22%
Total NOI
$1,341,993
Average Rent / SF
$5.17
TENANT
ADDRESS
GLA
LOT SIZE
NOI
CAP RATE
LIST PRICE
FBM
1924 W Princeton St, Orlando, FL
80,000 SF
8.63 AC
$389,040
3.54%
FBM
6001 Orient Rd, Tampa, FL
37,500 SF
6.14 AC
$247,164
MULTI
6695 Colray Ct, Jacksonville, FL
68,611 SF
7.69 AC
FBM
1688 Global Ct, Sarasota, FL
41,400 SF
FBM
2121 FL-472, DeLand, FL
TOTAL
03
LEASE
EXPIRATION
OPTIONS
LEASE TYPE
$11,000,000
05/01/2022
One (1), 3-Year
Triple-Net (NNN)
4.94%
$5,000,000
05/01/2022
One (1), 3-Year
Triple-Net (NNN)
$465,249
9.30%
$5,000,000
See OM
See OM
See OM
6.59 AC
$148,440
3.71%
$4,000,000
07/01/2023
Two (2), 3-Year
Triple-Net (NNN)
23,204 SF
2.60 AC
$92,100
4.61%
$2,000,000
05/01/2022
One (1), 3-Year
Triple-Net (NNN)
250,711 SF
31.65 AC
$1,341,993
5.22%
$27,000,000
1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
INVESTMENT SUMMARY Tenant Street Address City State Zip GLA Lot Size Year Built
Foundation Building Materials 1924 W. Princeton St Orlando FL 32804 80,000 SF
$
$11,000,000 LIST PRICE
% 3.54% CAP RATE $
$389,040 NET OPERATING INCOME
8.63 AC
Price / SF
$137.50
2002
Rent / SF
$4.86*
* Rent is 25% below market, see page 8 for rent comparables
Short-Term Lease with Below Market Rents - Foundation Building Materials current term expires in 2022 with one (1), 3-year option. At $4.86/SF, FBM’s rent is 25% below market providing an investor with significant longterm upside. See page 8 for rent comparables. Located Next to Florida’s Newest Neighborhood “The Packaging District” - Next to the subject property, Dr. Phillips Inc. has broken ground on a 200-acre development named “The Packaging District”. The master site plan consists of homes and businesses with a new regional park. Direct Access to State Road 423 - The subject property is less than ½ mile to a point of ingress & egress to State Road 423 (56,000 VPD). SR 423 is a four & six-lane surface road that runs through downtown Orlando. Long-Term Commitment to the Site - FBM executed their lease in 2010 in the heart of the recession. Since then, they have exercised 3 options showing commitment to the location. Corporate Guarantee from Publicly Traded Company - Foundation Building Materials (NYSE: FBM) was founded in 2011 and went public in 2017. They currently operate 180 units in North America and Canada.
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1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
LEASE SUMMARY Lease Type
Type of Ownership Original Lease Term
Triple-Net (NNN) Fee Simple
Real Estate Taxes
Tenant Responsible
Insurance
Tenant Responsible
3 Years
Roof & Structure
Landlord Responsible
Commencement Date
05/01/2010
Lease Guarantor
Corporate
Lease Expiration
05/01/2022
Company Name
Foundation Building Materials
Term Remaining
1.5+ Years
Increases Options
CPI-U* One (1), 3-Year
* Average annual increase of CPI-U of previous 3 years, every 3 years.
Ownership Number of Locations Right to Terminate
Public (NYSE: FBM) 180 Yes**
** Tenant shall have the right to terminate this Lease at any time during the term by deliv-
ering written notice to Landlord setting forth a termination date which shall be not less than twelve (12) months after the date of delivery of the notice.
Foundation Building Materials - FBM is one of the largest specialty building products distributors of wallboard, suspended ceiling systems, and metal framing in North America. With full transparency of a publicly traded company, FBM’s mission is to serve the changing needs of the professional construction trades. FBM is Well Positioned for Long-Term Growth - Over the past 9 years, FBM has strategically acquired 10 independent companies throughout North America. The opportunity to supplement with organic growth and strategic acquisitions makes them well positioned as a company for long term success. #1 in the Country for Job Growth - The Orlando region is no. 1 in the nation for job growth for the fourth consecutive year with 80% of employment outside of hospitality and tourism. Strong Infill Demographics - There are over 90,000 residents within three miles and over 290,000 residents within five miles of the subject property. COVID-19 Resistant Business - Orlando’s central location has benefited the industrial market over the past decade and will likely continue to do so as online shopping continues to grow throughout the COVID-19 pandemic.
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1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
BUILDING FEATURES
Number of Buildings
Three
Acres
±8.63
Minimum Clearance Height Parking
26’ 83 Surface Spaces
Docks
One / High Loading Doors
Ramps
6 Ground Level
Truck Court
135’ Concrete
Amp
1,200
Volts
480 / 277
Yard
Large & Secure
Sinage Slab
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High Visibility 16”
6001 ORIENT RD, TAMPA, FL 33610
FOUNDATION BUILDING MATERIALS
RENT SCHEDULE Period
Term
Annual Rent
Monthly Rent
Increase
CAP Rate
05/01/2019 - 05/01/2022
3rd Option
$389,040
$32,420
-
3.54%
05/01/2022 - 05/01/2025
4th Option
-
-
CPI
-
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1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
RENT COMPARABLES
1924 W. PRINCETON ST, ORLANDO, FL 32804
NOI (Lease Rate)
$4.86 / SF GLA
80,000 SF
Lease Expiration
05/01/2022
Options
One (1), 3-Year
Lease Type
Triple-Net (NNN)
CAM
-
Escalations
CPI-U
LEASE
TERM IN
LEASE
LEASE
LEASE
36,036 SF
04/20/2020
12
04/01/2021
$5.52
Triple-Net (NNN)
540 Ocoee Business Pkwy, Ocoee, FL
33,486 SF
03/15/2020
84
03/01/2027
$6.65
Triple-Net (NNN)
Kyocera
3401 Wd Judge Dr, Orlando, FL
18,000 SF
-
86
-
$6.65
Triple-Net (NNN)
Paradise Grills
540 Logistics Ln, Ocoee, FL
119,000 SF
-
63
-
$7.13
Triple-Net (NNN)
TENANT
ADDRESS
GLA
Advent Health
1401 Ocoee Apopka Rd, Apopka, FL
Minor Dock
AVERAGE
08
5,631 SF
COMMENCEMENT
MONTHS
61
EXPIRATION
RATE
TYPE
$6.49
1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
RETAIL AERIAL
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1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
Orlando Packaging District Orlando Packaging District The city of Orlando and Dr. Phillips Inc. plan to transform more than 200 acres west of College Park over the next decade into an eclectic mix of homes and businesses with a new regional park just north of downtown Orlando. Warehouses and other buildings could be converted into restaurants, shops, or office space in the College Park Packing District. Regional Park The park site, bound by John Young Parkway, Princeton, and Texas Avenue, now measures roughly 82-acres; 13 of which will house a master stormwater pond, a pavilion, passive lawns, and open spaces. Pedestrian access will be served by minimum six-foot-wide sidewalks and a new trail system through the park that will connect to the rest of the city’s trail network. The park is expected to be completed by April of 2021. By the Numbers • 202 acres of land in the City of Orlando. • 97 acres of land currently industrial/commercial to be converted to mixed-use and residential. • 105 acres of dedicated regional park, including 40-acre urban farm. • 3,500 units of projected residential, >1 million square feet of projected retail and office space.
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1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
Orlando Packaging District 4Roots Farm Campus The 4Roots Farm Campus will focus on creating a sustainable regional food system to tackle food waste, farmland erosion, farmer declines, and local hunger. By partnering with leading organizations to create agricultural education initiatives, 4Roots will inspire the next generation of agricultural professionals and generate awareness around the relationship between community health and the food we eat. Features will include a discovery center, convention and event barn, teaching/demo kitchen, a farmto-table restaurant, community greens for farmers markets, concerts, art expos, and flexible classrooms. Townhomes Pennsylvania-based Toll Brothers will build 135 townhomes on eight acres within The Packing District’s regional park, creating a natural synergy for two organizations known for their philanthropic efforts. Ultimately, individuals who purchase a home within the community will become stewards of the 105-acre park, charged with preserving and enhancing this key component of the district. YMCA The Leonard and Marjorie Williams Family YMCA will serve residents in the College Park area and surrounding communities as the Y’s 23rd location and will be a cornerstone of The Packing District. Groundbreaking is scheduled for 2020 with completion in 2021. Once complete, the new Family Center will offer state-of-the art wellness equipment and specialized programs to promote healthy living for every age and ability.
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1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
RETAIL AERIAL
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1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
PROPERTY PHOTO
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1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
SITE PLAN
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1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
ABOUT THE BRAND
Foundation Building Materials Foundation Building Materials (FBM®) is a leading construction materials distributor focused on exceeding the expectations of the commercial construction and residential building trades. The Company fabricates and distributes its products for specialty contractors seeking to improve or maintain energy efficiency in a range of commercial and industrial buildings.
180
NYSE: FBM
$2.2 Billion
30 States + Canada
NUMBER OF LOCATIONS
$
TRADE NAME
ANNUAL REVENUE
GEOGRAPHICAL FOOTPRINT
FBM specializes in the local supply of building materials such as drywall, steel studs, lath, plaster, stucco, acoustical ceilings, insulation, fiberglass reinforced plastic (FRP), and exterior insulation finish systems (EIFS). Additionally, FBM offers a wide variety of commercial-grade construction tools, drywall hand tools, fasteners, and construction supplies for residential and commercial projects. Each Foundation Building Materials (FBM) location is uniquely focused on the individual building materials needs within its regional market. With over 180 locations across the United States and Canada, FBM has significant geographic reach into most major building materials markets. 2019 Full-Year Highlights • • • •
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Net sales of $2.2 billion, an increase of $110.2 million compared to the prior year period. Base business net sales of $1.9 billion, an increase of 2.5% compared to the prior year period. Adjusted net income of $47.6 million, an increase of $30.0 million, compared to the prior year period. Completed three acquisitions and opened San Antonio greenfield branch.
1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
Orlando, FL
Ideal Industrial Market - Booming population and job growth in Orlando has supported high demand for industrial units and vacancy has stayed below the long-term average for more than five years. Job Growth - Prior to the onset of the coronavirus pandemic and the travel restrictions put in place to combat its spread, job growth in Orlando had been among the best in the nation and more than double the U.S. average over the past five years. Home to More than a Dozen Theme Parks - Chief among its claims to fame is Walt Disney World, comprised of parks like the Magic Kingdom and Epcot, as well as water parks. Another major tourist attraction, Universal Orlando, offers Universal Studios, Islands of Adventure, and the Wizarding World of Harry Potter. The Amazon Effect - Less than 3 miles away, Amazon will occupy the entirety of an existing 1.1 million-squarefoot distribution center which was recently left empty by Winn-Dixie Distribution Center.
Orlando International Airport - Located less than 20 miles away, Orlando International Airport sees approximately 50 million annual passengers. Orange County Convention Center - Located 20 miles away, the Orange County Convention Center is the primary public convention center for the Central Florida Region and the second largest convention center in the United States. As a result, roughly 1.4 million attendees contribute approximately $2.4 billion to the area’s economy each year. #1 Large City Where Manufacturing is Thriving - Orlando-Kissimmee-Sanford is tops in manufacturing job growth among the 71 largest metros (those with more than 450,000 nonfarm jobs), racking up 23.6% growth since 2012 and 7.9% in 2018 according to Forbes. Universities with Specialized Programs - Orlando is home to six universities including University of Central Florida, Lake Technical College, Southern Technical College, Valencia College, Osceola Technical College, and Orange Technical College.
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1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
LOCATION OVERvIEW 1.
Walt Disney World® Resort Walt Disney World Resort, Orlando, Fl 32821 10.2 MILES FROM SUBJECT PROPERTY
2. SeaWorld Orlando 7007 Sea World Dr, Orlando, FL 32821 14.2 MILES FROM SUBJECT PROPERTY
3. Gatorland 14501 S. Orange Blossom Trail, Orlando, FL 32837 17.6 MILES FROM SUBJECT PROPERTY
4. Discovery Cove 6000 Discovery Cove Way, Orlando, FL 32821 14.1 MILES FROM SUBJECT PROPERTY
5. Old Town 5770 W. Irlo Bronson Memorial Hwy, Kissimmee, FL 34746 21 MILES FROM SUBJECT PROPERTY
6. Universal Orlando Resort 6000 Universal Blvd, Orlando, FL 32819 10.2 MILES FROM SUBJECT PROPERTY
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1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
LOCATION OVERvIEW
01 WALT DISNEY WORLD® RESORT
This entertainment complex has an annual attedance of 58+ million.
02 SEAWORLD ORLANDO
This sea themed park has an annual attedance of 4 Million guests.
04 DISCOVERY COVE
the sister park of SeaWorld Orlando and Aquatica Orlando.
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03 GATORLAND
Gatorland is a 110 acre theme park and wildlife preserve.
05 OLD TOWN
Old Town is an outdoor shopping mall and entertainment complex .
06 UNIVERSAL ORLANDO RESORT
The park hosted an estimated 10.2 million visitors in 2019.
1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
DEMOGRAPHICS
POPULATION
1-Mile
3-Mile
5-Mile
2025 Projection
3,940
97,947
315,423
2020 Estimate
3,668
90,352
290,787
2010 Census
3,436
79,057
253,148
Growth ‘20 - ‘25
7.42%
8.41%
8.47%
Growth ‘10 - ‘20
6.75%
14.29%
14.87%
1-Mile
3-Mile
5-Mile
2025 Projection
1,708
40,395
125,115
2020 Estimate
1,599
37,331
115,669
2010 Census
1,548
32,798
101,858
Growth ‘20 - ‘25
6.82%
8.21%
8.17%
Growth ‘10 - ‘20
3.29%
13.82%
13.56%
Average Income
$118,176
$71,443
$71,555
Median Income
$89,440
$47,416
$49,526
HOUSEHOLDS
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1924 W. PRINCETON ST, ORLANDO, FL 32804
FOUNDATION BUILDING MATERIALS
DISCLAIMER
The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. & Brian Brockman (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto. The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants. A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.
CONFIDENTIALITY This Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.
RELEASE This Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.
NON-ENDORSEMENT Broker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.
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www.jamescapitaladvisors.com
@jamescapitaladvisors
FOUNDATION BUILDING MATERIALS
CONTACT INFORMATION CONTACT
CORY KRUPINSKY
Associate (818) 620-3989 cory.krupinsky@jamescapitaladvisors.com CA RE Lic. 02086327
RICHARD BREHAUT
Director (909) 560-3010 richard@jamescapitaladvisors.com CA RE Lic. 01934760 BROKER OF RECORD
Brian Brockman
Bang Realty - Naples, Inc (513) 898-1551 brian@bangrealty.com FL RE Lic #: BK3327646 CORP. Lic #: CQ1049201
James Capital Advisors, Inc.
www.jamescapitaladvisors.com
@jamescapitaladvisors