LAUREL GARDENS 7.17 Acre Office/Hospitality Development Opportunity Westshore Business District Tampa, Florida Offering Memorandum SITE
TABLE OF CONTENTS EXECUTIVE SUMMARY PROPERTY DESCRIPTION LOCATION OVERVIEW AND ACCESS TAMPA S PREMIER OFFICE DISTRICT STRONG REGIONAL GROWTH PROPERTY INFORMATION PROPERTY LOCATION AND ACCESS PROPERTY INFORMATION SUMMARY MARKET INFORMATION TAMPA MSA OFFICE MARKET WESTSHORE OFFICE MARKET EXISTING CLASS A PROPERTIES COMPETITIVE PROPERTIES MAP FLORIDA OVERVIEW TAMPA BAY MSA OVERVIEW 1
EXECUTIVE SUMMARY PROPERTY DESCRIPTION Laurel Gardens, as approved, consists of two 7-story (89 feet), Class A office towers with an adjacent 9-level structured parking garage. West Laurel Gardens totals 210,000 rsf and East Laurel Gardens totals t 208,000 000rsf. Combined, the development will yield approximately 418,000 rsf. Magnificent water views of Tampa Bay to the west and an architecturally distinctive central motor court with obelisk and water features create a campus like setting in the heart of Westshore s urban core. The project s large 30,000 sf floor plates with an efficient central core and 12 corner offices per floor are well suited to accommodate Westshore s diverse mix of large and small tenants. Trade off matrix to hotel, medical office, school, event facility and retail. LOCATION OVERVIEW AND ACCESS The location of Laurel Gardens on O Brien Street, which begins at the southern boundary of Tampa International Airport at Spruce Street and connects to Cypress Street is a major arterial roadway for north and southbound traffic within the Westshore Office District. The site abuts and is within walking distance to the new Avion Park of Westshore, a 19-acre mixed use park, which includes three new hotel developments, restaurants and office space. The 1,221,000 sf International Plaza Mall (1 minute), Tampa International Airport (2 minutes), Veteran s Expressway (1 minute) and I-275 (2 minutes) provides unparalleled convenience for transportation and amenities to Laurel Gardens tenants. TAMPA S PREMIER OFFICE DISTRICT Westshore is the most widely institutionally held office market in the central Florida region. The district s proximity to Tampa International Airport, the Howard Frankland (1-275) and Gandy Bridges, as well as the Courtney Campbell Causeway (S.R. 60) and its central location within the entire Tampa Bay region make this the location of choice for office users wishing to attract employees from both sides of Tampa Bay. As of Q2-2013, Class A Vacancy is 13.8%. HOSPITALITY Local market is recovering following the recession with demand and occupancy levels increasing consistently since 2009 as business lost was rebooked. Demand also grew in 2009 due to supply that opened up (the term is known as induced demand), coupled with the fact that t hotels cut rates to prevent occupancy losses. In 2012, performance was strong due to the business generated by the RNC in the late summer months. This event gave a great boost because it occurred during low season for Tampa. The trend is up. 2
EXECUTIVE SUMMARY TAMPA BAY Unprecedented regional job and population growth continues to drive demand. Florida averages growth of more than 800 new residents per day. Centrally located on Florida s Gulf of Mexico and Tampa Bay, the Tampa Bay region has consistently topped the nation s metropolitan areas in employment growth. According to Site Selection magazine, Florida is projected to be the greatest job generator among the eight southeastern states well into the 21 st century, and Tampa Bay is listed in the Top 60 Cybercities for locations best for high tech companies in the United States. 3
PROPERTY INFORMATION PROPERTY LOCATION AND ACCESS The Laurel Gardens property is located within the heart of the Westshore Business District, at the southwest corner of Laurel and O Brien Streets, in the City of Tampa, Hillsborough County, Florida. 4
PROPERTY INFORMATION SITE ACCESS The site has two primary entrances, directly accessible off Laurel Street and O Brien OBrien Street. Due to its prime location in the Westshore Business District, access to and from the site is easy and uncomplicated as the site has multiple approach options. Major arterial roadways in the immediate area include: I-275; North South Highway connecting Downtown Tampa, I-4, New Tampa, Clearwater, and St. Petersburg Kennedy Boulevard; East West Roadway linking Brandon, Downtown Tampa, and Westshore Veteran s Expressway; North South Highway providing a connection to northwest Hillsborough County, as well as, Pasco and Hernando Counties via the Suncoast Highway Dale Mabry Highway; This North South Roadway connects North Tampa, Carrollwood, and South Tampa. Other arterial roadways that provide further convenience include: Spruce Street / Boy Scout Boulevard, Laurel Street and Cypress Street for east and westbound traffic, Westshore Boulevard, Memorial Highway and Lois Avenue for north and southbound traffic. Two traffic lights were installed at the intersections of O Brien and Spruce Streets and Cypress and O Brien Streets. An additional traffic light has been installed at the intersection of Laurel and O Brien OBrien Streets, providing further improved transportation access to the area and more specifically Laurel Gardens. 5
PROPERTY INFORMATION PROPERTY ADDRESS AND DESCRIPTION 1220 and 1280 North O Brien Street, Tampa, Florida, 33607 Situated at the Southwest corner of Laurel Street and O Brien Street, Tampa, Florida Hillsborough County, Florida Appraiser Folio numbers: 112352-0050 and 112352-0000 7.17 acres, 5.23 net of wetlands Zoning Zoning Land Uses Allowable PD (Planned Development) Professional Office, Medical Office, Hotel, Retail, Restaurant, Business and/or Vocational School, Commercial Recreational Facility (indoor). 89 Feet Building Height Which increase has been approved by the FAA (Federal Aviation Administration) and the Hillsborough County Aviation Authority in January 2007 FAR 1.47 Coverage 35% Gross Office Building Area 1 West Building 210,000000 sf II East Building Total 208,000 sf 418,000 sf Trade off matrix to hotel, medical office, school, recreational facility and retail. A B Land Uses that are to be traded # of Hotel Rooms # of Square Feet Medical Office # of Square Feet Vocational / Business School # of Square Feet Commercial Recreational Facility (Indoor) # of Square Feet Retail 1,000 SF Office 2.238 Hotel 415 SF 515 SF 323 SF 356 SF Rooms 6
PROPERTY INFORMATION Parking Provided: 9-level parking garage with total of 1,467 spaces Parking Ratio: 4 spaces per 1,000 SF of usable area PROPERTY FEATURES The land tract is located at the southwest corner of the intersection of Laurel and O Brien Streets and comprised of two parcels totaling 7.17 acres. The overall dimensions of the property are approximately 500 feet along Laurel Street and 623 feet along O Brien OBrien Street. Uplands comprise 5.23 acres with gentle slopes typically between elevations 7 feet and 11 feet above sea level. The remaining 1.94 acres are wetlands, which exist in two separate areas. Wetland A located at the southeast corner of the property measures 0.47 acres and Wetland B located at the northeast corner of the property measures 1.47 acres. Both wetlands have been staked, surveyed and certified as what is know as jurisdictional wetlands by the Environmental Protection Commission of Hillsborough County (EPC). 7
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MARKET INFORMATION WESTSHORE OFFICE MARKET Hillsborough County s Westshore area is considered by most, the most prestigious office submarket in the Tampa Bay market. Westshore is centrally located in Tampa Bay and is conveniently accessed by I-275 and the Howard Frankland Bridge, the Veteran s Expressway, State Road 60 (Courtney Campbell Causeway and Kennedy Boulevard), Dale Mabry Highway and Tampa International Airport. Demand in this exclusive sector has resulted in extensive private business expansion by some of the world s most recognized corporations including IBM, Chase, Nokia and Cigna. Westshore s excellent transportation system, proximity to Tampa International Airport and abundant tenant amenities assures its future growth as Florida s premier Class A location. Despite current strong national economic conditions, the Tampa Bay office market is outpacing the rest of the nation and Westshore is outperforming all other markets in the Tampa Bay area. The market remains a prime target for investors seeking growth oriented opportunities. The Westshore submarket is the largest suburban office market in the state of Florida, at 12,498,009 sf. Most area professionals consider Westshore as the market for tenants to house their operations in Tampa. Driving Westshore s popularity is its immediate proximity to one of the nation s finest airports, its central location and its ability to attract labor from all of the Tampa Bay Area labor markets. Since 1991, all three bridges connecting Westshore to Pinellas County (Pinellas County is the most densely populated county in the state of Florida) have more than doubled their capacity and have made access between the two counties effortless. In 1996, the 18 mile Veteran s Expressway was completed and now connects Westshore directly to the area s dominant labor markets, northwest Hillsborough County and Southern Pasco County. Time, Inc., JPMorganChase, Price Waterhouse Coopers, New York Life, CIGNA, Nokia and IBM all have a major presence in the Westshore market. Depository Trust and Clearing Corporation, Progressive Insurance and Citibank are examples of recent I-75 campus developments that would have likely occupied space in Westshore had sufficient office space been available. Westshore s direct vacancy rate ended the second quarter of 2013 at 13.3%. 3% The current Class A average asking rent is $24.32. In addition to a central location, Westshore s success is attributed to the following factors: Immediate access and proximity to Tampa International Airport. Access to major thoroughfares including I-275, S.R. 60 and the Veteran s Expressway. Ample free parking with buildings that are well suited to large users. Proximity to affluent residential neighborhoods to the north, south, and west. Numerous flagship hotels including the Hyatt Regency Westshore Wyndham, Crown Plaza and Marriott. Source: C&W Research Services 10
MARKET INFORMATION Proximity i to both the Courtney Campbell llcauseway and dhoward dfrankland dbid Bridge which hprovides access to Pinellas County to the west. Westshore Plaza, a recently renovated 950,500 sf regional mall with upscale shops such as Saks Fifth Avenue. The 1.2 million square foot International Plaza regional mall featuring upscale anchors new to Tampa Nordstrom, Lord & Taylor and Neiman Marcus. DISTANCES Airport drop off/pick up I-275 Westshore Mall International Mall Tampa CBD Clearwater Beach 2.1 miles 0.8 mile 1.0 mile 1.0 mile 5.2 miles 19.5 miles 11
MARKET OVERVIEW EXISTING CLASS A PROPERTIES Map # Property Size (sf) Available sf Occupancy Full Service Rental Rate 1 Bayport Plaza 264,718 45,517 83.7% $30.00 2 Island Center 249,797 42,730 85.4% $22.00 3 Waterford Plaza 245,016 73,336 80.8% $21.50 4 One Urban Centre 278,100 51,252 85.5% $28.00-$30.00 5 Two Urban Centre 269,954 83,876 79.6% $28.00-$30.00 6 Tower Place 182,214214 61,372 69.5% $24.50 7 One MetroCenter 240,320 35,516 87.5% $28.00 8 Anchor Plaza 100,992 31,929 68.4% $23.00 9 LakePointe I 229,524 138,113113 39.8% $25.00 10 LakePointe II 223,005 157,853 69.7% $26.00 11 Int l. Plaza-Corp. Ctr. I 390,582 87,880 77.5% $29.75 12 Int l l. PlazaCorp Plaza-Corp. 290,101 106,673673 64.5% $29.75 Ctr. II 13 Int l. Plaza-Corp. Ctr. III 290,101 32,287 91.8% $29.75 14 Harborview Plaza 205,290 19,925 90.3% $28.00 Total Avg. 247,122 69,161 76.71% $26.80 12
HOTEL MARKET. FROM SMITH TRAVEL RESEARCH, DATED JULY 17, 2013 Occupancy Total Year 65.9%, May YTD 73.5% ADR Total Year $102.55, May YTD $111.56 RevPAR Total Year $67.61, 61 May YTD $82.04 Supply Total Year 2,808,662, May YTD $1,164,375 Demand Total Year 1,851,675, May YTD $556,226 Revenue Total Year $189,891,852, May YTD $95,520,975 For the complete report, please click on this link: http://flyers.cushmanwakefield.com/flyers/smith Travel Research Trend Report.pdf 13
MARKET INFORMATION FLORIDA OVERVIEW ECONOMY The Florida economy has undergone a metamorphosis over the past decade, shifting from the tourism industry to the high technology, life sciences, services and retail/wholesale trade sectors. Florida s seasonally adjusted unemployment rate for may 2013 was 7.1%, which is 1.7% lower than one year ago in may 2012 and the lowest unemployment rate since September 2008. From May 2012 to May 2013, Florida has gained 122,500 jobs. The state s technology and biotech sectors continue to impact job growth as Florida is now the fifth largest cyberstate in the united states and widely recognized as an emerging biotechnology market. Companies in the aviation, aerospace, microelectronics and medical technology industries continue to move to the state to take advantage of Florida s favorable tax incentive programs, financial resources, international access and highly skilled workforce. Tampa Bay POPULATION TRENDS 2013 is expected to be an improvement over 2012 with iha promising i outlook kin regard to the housing market, employment grown and consumer confidence. Florida is the fourth most populous state in the nation, with an estimated population of over 19.3 million residents in 2012. According to the 2010 US Census, from 2000-2010 0 0Florida s population p grew by 18% with an increase of 2.8 million people. Estimates by the US Census reflect a continued population increase of 2.7% or 514,878 people from 2010 to 2012 and the state ranked third in population gains for 2012. Additionally, by 2016, forecasts indicate that Florida is poised to pass the State of New York for the number three spot in terms of total population. 14
MARKET INFORMATION The following chart shows Florida s historic and forecasted population growth trends. Population forecasts from Moody s Economy.com indicate that Florida is expected to reach a population of nearly 26.6 million by 2029, an increase of 27.4% from the estimated 2012 population. TAMPA BAY MSA OVERVIEW The Tampa Bay MSA (Metropolitan Statistical Area) on Florida s West Coast is composed of Hillsborough, Pinellas, Pasco, and Hernando counties. With over 2.8 million people, Tampa Bay is Florida s largest MSA and is the second largest MSA in the southeast. The MSA contains the third and fourth largest cities in the state, Tampa and St. Petersburg, as well as the eleventh largest city, Clearwater. The City of Tampa is located in Hillsborough County, which contains the majority of the area businesses and population. St. Petersburg and Clearwater are located in Pinellas County which has a sound employment base supported by technical firms, tourism and light manufacturing industries. Centrally located on Florida s Gulf of Mexico, the Tampa Bay area continues to rank among the top five places in the country to locate a business, according to surveys of the nation s leading CEOs. Among the many accolades awarded to the Tampa Bay region: According to a study by KPMG LLP, the audit, tax and advisory firm, very competitive labor costs, along with moderately-low office/industrial leasing and sales tax costs help make Tampa the least-costly place to do business among 22 U.S. cities/locations with populations exceeding 2 million (2010). One of the Top Five places Americans Want to Live (Forbes/PEW Research Study). Inc. Magazine ranked Tampa Bay 9th on its list of the Hottest Large Cities to do business A Forbes/Milken Institute survey, the Bay Area was selected the 27th out of the top 200 Best Places for Business and Career in the United States. TAMPA BAY MSA POPULATION 2,647,658 Total MSA Site Selection Magazine listed Tampa Bay as one of the Top 60 Cybercities for being one of the best locations for high-tech companies in the U.S. Florida s Tax System is ranked 7th best in the nation as being Business Friendly. (The Tax Foundation). 15
MARKET INFORMATION TRANSPORTATION NETWORK The Tampa MSA is easily accessible by land, air and sea. The Tampa Bay MSA is serviced by Interstate 75, Interstate 275, and Interstate 4. Interstate 4 originates in Daytona Beach on the east coast and heads west through the Orlando Metropolitan Area terminating in the Tampa Central Business District. Interstate 75 provides access to one of Florida s largest north-south corridors terminating to the south in Miami and heading north to Atlanta. Interstate 275 splits from Interstate 75 in northern Hillsborough County and provides access to the Tampa Central Business District, the Westshore Business District, Tampa International Airport, and the St. Petersburg Central Business District looping south over Tampa Bay on the Sunshine Skyway Bridge. Interstate 275 reconnects with Interstate 75 ten miles north of the city of Bradenton. Tampa Bay MSA s transportation system anticipates continuous improvements to accommodate the area s growth. Pasco County s S.R. 54 (east/west) has been widened to four and six lanes and is now connected to a new interchange at I-75. U.S. Highway 41, a major north/south thoroughfare in Pasco County, is also undergoing widening of its highly traveled lanes. The Suncoast Parkway has recently seen completion into mid-hernando County extending the Veteran s Expressway/Suncoast Expressway further north in the MSA, creating an improved north/south route for Hillsborough, Pasco and Hernando County communities. AIRPORTS Three Three international airports, (Tampa International, St. Petersburg/Clearwater International and Sarasota/Bradenton International), and four small commuter airports serve the Tampa MSA. Tampa International Airport is located in Hillsborough County and has experienced tremendous growth. The airport handled 16,820,859 passengers in 2012, making it the 31st busiest airport by passenger movements in North America. It 2011, it was called one of the 10 best airports by CNNGo. The Airport also just completed a $620 million expansion that will accommodate the 40 million passengers expected by the year 2020. The second largest airport in the Tampa Bay region is the St. Petersburg- Clearwater International Airport. This airport is centrally located in the heart of Pinellas County. This airport provides commercial air service to major domestic and international markets on a daily basis, offering U.S. Customs facilities. It is also the regional air cargo hub for United Parcel Service. Additionally, Airport Industrial Park offers a 200 acre tract designated as a Foreign Trade Zone. PORT SERVICE The Port of Tampa is the seventh largest seaport in the United States, processing over 50 million tons of cargo per year, more than all other ports in Florida combined. Coupling cargo and the cruise industry, the Port of Tampa generates over $15 billion in revenue per year. The Port of Tampa is also one of the largest cruise line moorings in the nation. Ranked fourth in terms of total passengers, over 500,000 passengers sail out of Tampa every year. Port Manatee, located in Bradenton, ships over nine million tons per year. Both Port Manatee and Port of St. Petersburg have warehouses and stevedore facilities. Although the Port of St. Petersburg is primarily a passenger cruise ship facility, it hosts the U.S. Coast Guard and has a 1,500 foot wharf, a 1,000 foot turning basin, 40,000 square feet of warehouse space and full dockside services. 16
MARKET INFORMATION TRAIN SERVICE Amtrak provides travel related rail service to the Tampa area while CSX serves as the major shipping i rail company. RETAIL AND HOTELS There are seven major regional malls in the Tampa MSA: International Plaza Westshore Mall Westfield Citrus Park Westfield Brandon The Shops at Wiregrass University Mall Westfield Countryside International Plaza is one of the most significant retail developments in Tampa Bay. The 1.2 million square foot regional mall, which opened in September 2001, was developed by the Taubman Company and brought upscale anchor tenants such as Nordstrom and Neiman Marcus to the Tampa Bay area for the first time. International Plaza is located near Tampa s international airport. In downtown Tampa, the 230,000 square foot retail and entertainment center at Channelside at Garrison Seaport features a 17-screened multiplex theater, t an Imax Theater and various restaurants. t The center opened in March of 2001. Also located in downtown Tampa, the 717 room, $110 million Tampa Marriott Waterside was completed in 2000 and quickly became an important landmark in downtown Tampa. EDUCATION The Tampa MSA boasts a large number of excellent post-secondary institutions and one of the most important t aspects of Tampa Bay s employment growth has been the University of South Florida (USF). The University is one of the 20 largest universities in the nation. USF was founded in 1956 and currently has an enrollment of over 47,000 students and employs over 7,000 persons. USF is best known for its medical school, which has supported the growth and success of nearby regional medical facilities including the VA Hospital, Shriner s Hospital, University Community Hospital, H. Lee Moffit Cancer Center and six other specialty clinics. The Tampa Bay area is also served by four private universities: Eckerd College, University of Tampa, St. Leo College and Stetson Law School; and two public universities: St. Petersburg College and Hillsborough Community College which has four campuses throughout the area, providing two year, associate college and technical degrees. CLIMATE Another reason for the impressive growth rate in the Tampa Bay MSA is the desirable quality of life. Tampa enjoys a subtropical climate, with an average temperature of 73 degrees, 82 degrees in summer and 62 degrees in winter. The average humidity is 74%. Temperatures in the coastal regions of Florida are moderated by the effects of land and sea breezes and are usually slightly warmer in winter and cooler in summer than most inland locations. 17
MARKET INFORMATION CULTURAL SITES AND RECREATION The Tampa MSA offers residents a variety of recreational outlets. The area s climate and proximity it to the warm waters of the Gulf of Mexico permit outdoor activity year round. The Tampa Bay area has a number of recreational opportunities, including Tampa Bay and the Hillsborough River State Parks and miles of beaches and waterways on the Gulf Coast including some of America s best beaches. Clearwater Beach is consistently ranked Best Beach by Tampa Bay Magazine and Conde Nast Traveler has also recognized Clearwater Beach as the best city beach on the Gulf of Mexico. Professional sports teams who call Tampa Bay home include the NFL Tampa Bay Buccaneers, NHL Tampa Bay Lightning, Tampa Bay Storm arena football, and Major League Baseball s Tampa Bay Rays. Three major league baseball teams also have spring training games in this metropolitan area: the Philadelphia Phillies in Clearwater, the Toronto Blue Jays in Dunedin and the New York Yankees in Tampa. Additionally, outdoor sport enthusiasts benefit from the area s numerous public and private golf courses, hiking trails and fishing. Tourist attractions in the area include the Lowry Park Zoo, Busch Gardens and the Florida Aquarium. There are also numerous museums and cultural venues such as the Tampa Bay Performing Arts Center, the Morean Arts Center (home of the Chihuly collection), the Tampa Museum of Art, Henry B. Plant Museum, Florida International Museum, Museum of Science & Industry, Ruth Eckerd Hall, Mahaffey Theater, the Van Wezel Performing Arts Center and the world- famous Salvador Dali Museum. 18
www.cushmanwakefield.com BRUCE K. ERHARDT, ALC EXECUTIVE DIRECTOR 813.204.5312 Cushman & Wakefield of Florida, Inc. One Tampa City Center, Suite 3600 Tampa, FL 33602 Bruce.erhardt@cushwake.com MERCEDES ANGELL SENIOR DIRECTOR 813.204.5344 Cushman & Wakefield of Florida, Inc. One Tampa City Center, Suite 3600 Tampa, FL 33602 Mercedes.angell@cushwake.com