mercato - hff

M E R C A T ON A P L E S , F L


SOUTHWEST FLORIDA’S PREMIER MIXED-USE LIFESTYLE RETAIL CENTER

M E R C A T ON A P L E S , F LM E R C A T O

N A P L E S , F L

PROPERTY SUMMARY

Address: 9115 Strada Place, Naples, FL 34108

GLA (SF) Component (1) GLA

Retail 321,119

Office 135,240

Total 456,359

Occupancy 92.2%

Year Built 2007

Site Size (Acres) 41.65

Future Development

A +/- 1.0-acre pad site with entitlements for 8,078 SF

Parking Ratio 5.5 spaces per 1,000 SF

Traffic Counts US 41 45,500 vpd

Vanderbilt Beach Road 25,500 vpd

(1) The Property also includes 92 luxury condominium units that are not

included in the offering.

TENANT SUMMARYInvestment Grade Type Rating Area (SF) % of GLA Other Notable Tenants Type Rating Area (SF) % of GLA

Whole Foods Retail BBB- 53,022 12% Silverspot Retail NA 41,072 9%

Nordstrom Rack Retail A- 28,000 6% Porter Wright Morris Office NA 14,982 3%

Capital Grille Retail BBB- 8,600 2% Z-Gallerie Retail NA 10,000 2%

US Bank Office A+ 7,230 2% Charming Charlie Retail B- 9,484 2%

Wells Fargo Office A+ 18,994 4% Ulta Retail NA 8,425 2%

Merrill Lynch Office A 16,909 4% McCormick & Schmick's Retail B 8,400 2%

Bank of America Office A 2,597 1% Akerman Senterfitt Office NA 7,531 2%

Sub-Total 135,352 30% Sabadell Bank Office NA 5,866 1%

Other National Tenants Retail/Office -- 49,613 11%

Regional and Locals Retail/Office 129,985 28%

Available Retail/Office 35,649 8%

TOTAL 456,359 100%

AN UNPRECEDENTED “TROPHY” INVESTMENT OPPORTUNITY

MERCATO represents an exceptional opportunity to acquire a highly productive and successful mixed-use lifestyle center in an affluent, regionally significant trade area. This combination of location, tenancy, and extraordinary design and improvements is irreplaceable and unparalleled in Southwest Florida.

1

HFF has been exclusively retained to offer qualified investors the opportunity

to acquire Southwest Florida’s premier mixed-use lifestyle retail center—

MERCATO. This 456,359 square foot mixed-use complex is anchored

by Whole Foods, Silverspot Cinema and Nordstrom Rack as well as an

exciting mix of junior anchors and “blue chip” office tenants. MERCATO is

further complemented by a number of national lifestyle retailers and over

17 fast casual and sit down restaurants with small shop tenants generating

sales in excess of $550 per square foot at an occupancy cost of 8.0%



N A P L E S , F L

2

SOUTHWEST FLORIDA’S “ONLY” WHOLE FOODS, NORDSTROM RACK, ULTA AND SILVERSPOT

MERCATO was selected as the sole location in Southwest Florida for Whole Foods, Nordstrom Rack, ULTA and Silverspot. As some

of the most sought after retailers and co-tenants in the industry, this is a strong testament to the importance of the location, quality

of the project, and position to draw from an extended trade area.

HIGHLY PRODUCTIVE AND SUCCESSFUL TENANCY WITH IMPRESSIVE MOMENTUM

MERCATO is home to many of today’s most vibrant and popular retailers and restaurants. Investment grade and national tenants

comprise 70% of the tenancy with an average remaining lease term of 8.0 years. The current average sales per square foot

exceeds $530 per square foot, which is up 26% since 2010. Significantly, tenants are operating at an average occupancy cost of

6.7%, substantiating the strength of the Property and opportunity to grow rental rates going forward.

RAPIDLY GROWING TENANT SALES AND RENTAL RATE MARK-TO-MARKET OPPORTUNITY

The position, performance and potential of MERCATO have resulted in increased retailer and restaurant demand to be a part of the

excitement. The projected sales performance of new retailers and restaurants entering the Property supports considerably higher

rents relative to those of many of the existing tenants. Over the next five years, approximately 62,000 square feet of space expires,

without fixed-rate renewal options, creating a significant opportunity to improve rental rates and tenant quality.


N A P L E S , F L

3

SIGNIFICANT NOI GROWTH POTENTIAL—CORE WITH “MORE”

While performing at an already high level, MERCATO has numerous opportunities to continue to grow its revenue. In addition to

its healthy and growing existing tenancy with contractual rent growth, the ability to lease available spaces, mark below market rate

tenants to market levels, and develop the remaining +/- 1.0 acre parcel along Strada Place is expected to grow NOI nearly 35%

over the next 10 years.

THE EMBODIMENT OF A SUCCESSFUL GROCERY-ANCHORED, MIXED-USE LIFESTYLE PROPERTY

MERCATO incorporates all of the elements of modern retailing and mixed-use concepts. Its unique combination of dominant

grocery store, national big box retailers, state-of-the-art 12-screen movie complex, small shop boutiques and a wide range of dining

options, coupled with significant corporate and professional office space plus 92 luxury residential units (not included in offering)

attracts from an extended trade area and create the “sense of place” that is critical to today’s successful mixed-use lifestyle projects.

Dining & Entertainment; 19%

Apparel; 11%

Grocery; 12%

Theater; 9%

Home Furnishings;

5%

Services & Other;

9%

O�ce; 28%

Tenant Mix by GLA

Investment Grade;

32.2%

National; 36.9%

Regional & Local;

30.9%

Tenant Pro�le by GLA


N A P L E S , F L

2

ULTIMATE OFFICE LOCATION WITH “BLUE CHIP” OFFICE TENANCY AND INCOMPARABLE AMENITY BASE

MERCATO’s 135,240 square feet of Class A office space is considered the most desirable in the market given its location,

on-site amenities and outstanding co-tenancy. With more than 60% of the tenancy occupied by investment grade and national

corporations and less than 3% of leases expiring over the next four years, the office component of MERCATO is unrivaled in the

market and provides incomparable synergies to the project that drive significant weekday traffic through the property.

Akerman


N A P L E S , F L

DEMOGRAPHIC PROFILEItem 5-Mile 7-Mile 10-Mile North Naples Collier County Florida

2014 Population 97,144 160,814 266,973 17,341 341,134 19,654,457

2019 Projection 103,840 171,706 285,105 18,259 365,257 20,782,174

Growth 2014-2019 6.89% 6.77% 6.79% 5.29% 7.07% 5.74%

2014 Est. Average Household Income $93,539 $88,994 $80,642 $100,499 $75,660 $61,692

% of Population with Bachelor’s Degree or Higher 43.3% 39.8% 35.1% 48.5% 31.8% 25.8%

Household Incomes > $100,000 26.7% 25.3% 21.9% 28.8% 19.7% 15.8%

Owner Occupied Housing Values >$500,000 33.3% 29.8% 24.4% 50.1% 21.8% 6.5%

2014 Households 50,859 79,137 127,416 8,847 141,632 7,745,850

Vanderbilt Beach Road


Tamiami Trail

North

Tamiami Trail

North

Gulf of Mexico

M E R C A T O

Future Residential Development52 Single Family Luxury Homes

(Not Included)


(Not Included)

5

HIGH VISIBILITY AND REGIONAL ACCESSIBILITY

The Property is situated along US 41, Southwest Florida’s most trafficked commercial corridor (45,500 VPD), with over 265,000

people within a ten mile trade area. Positioned less than four miles from I-75, MERCATO is easily accessible from locations

throughout the 1.5 million person Southwest Florida region. The combination of a Whole Foods grocery store, 12-screen Silverspot

Cinema, 85,000 square feet of high quality restaurants and 135,240 square feet of Class A office space and 92 residences

generates an unparalleled level of day and evening traffic, seven days a week.

NAPLES’ PREMIER DEMOGRAPHICS WITH EXTENDED TRADE AREA DRIVE PROPERTY PERFORMANCE

Per capita, Naples has more millionaires than all but one other city in the US and the second most holes of golf in the country.

Although the demographic statistics are impressive and among the highest anywhere in the US, ultra-high net worth balance sheets

are, for the most part, unaccounted for in the local demographic statistics given the method by which they generate income (capital

gains vs. ordinary income). However, the amount of wealth is reflected by the deposit amounts within Federally Chartered banks in

the area and the average median home price along the Gulf Coast.


N A P L E S , F L

6

GROWING MARKET WITH INTERNATIONAL AND DOMESTIC ALLURE

Naples’ economy is growing fast and rapidly rebounding from the 2008-era downturn. Employment gains are top in the nation,

with solid growth in all key industry sectors. Notable, the Naples metro area is home to several Fortune 1000 companies including

Hertz, a Fortune 300 company that just relocated their headquarters in the area. Expectedly, population growth, housing prices, and

building activity are showing sharp gains as well.

STRONG TOURIST & “SNOWBIRD” IMPACT

Naples also benefits from strong demand by tourists and “snowbirds” increasing the city’s population by over one-third during peak

season months. Traditionally an enclave during the cold winter months throughout most parts of the US, Naples has been extending

its peak season and is now a year-round destination. The Naples hotel market is one of the strongest in the nation and consistently

performs significantly above the national average with an average daily room rate of $205 per night compared to $115 per night

for the of the US. As a result, the revenue per available room for the market is up 12.1% through September 2014.

POTENTIAL TO INCORPORATE “FLAGSHIP” RETAIL AND RESTAURANT CONCEPTS

Numerous spaces within the Property exist or can be created to incorporate “flagship” retail and restaurant concepts. Numerous

tenants have yet to enter the Southwest Florida market and MERCATO is a leading candidate for many of these users.

REMAINING DEVELOPMENT OPPORTUNITY

An approximately 1.0-acre parcel with entitlements for an additional 8,078 square feet remains at the Property. A new owner will

have the opportunity to create additional value through the sale/lease/development of the available pad site.

UNENCUMBERED BY EXISTING FINANCING

MERCATO is being offered on a free and clear basis, which allows an investor to take advantage of today’s strong lending markets

for core, institutional quality real estate assets thus generating accretive levered returns.

Holliday Fenoglio Fowler, L.P. (“HFF”) a Florida licensed real estate broker.

©2014 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.

Presented By: Debt Placement:

Danny Finkle Senior Managing Director Tel 305.448.1333 [email protected]

Manny de Zárraga Executive Managing Director Tel 305.448.1333 [email protected]

Luis Castillo Managing Director Tel 305.448.5498 [email protected]

Kim Flores Director Analyst Tel [email protected]

Chris Drew DirectorTel [email protected]

hfflp.com

Miami Office:

1450 Brickell Ave.

Suite 2950

Miami, FL 33131

T 305.448.1333

F 305.448.6767

MAP KEY

Available RetailOfficeRetail

Available Office

US 41 (VPD 41,500)

US 41 (VPD 41,500)

4105

2 Floors

21152112 2120

21252111

2135

Bravo614561356130

6160

14140

14110

31203110 31253130 5125

5130

5135

5155

71005115 5126

5140

5150

7105

7107

7106

7110

12 Screen Deluxe Theatre

4 Level Retail Parking Garage

Residential Parking Garage

10115

Stilista10112101058170

8165

The Pub8160

AZNRestaurant

8155

8150

8142

8125812081158110

8105

81408130

Future Retail / Restaurant9100

(Future Development)71357125

7120

7115

11101

11103

410541054105

2 Floors2 Floors2 Floors

211521152115211221122112 212021202120

212521252125211121112111

213521352135

Bravo6145Bravo6145Bravo6145613561356135613061306130

616061606160

141401414014140

141101411014110

312031203120311031103110 312531253125313031303130 512551255125

5130

5130

5130

5135

5135

5135

5155

5155

5155

7100

7100

7100511551155115 512651265126

5140

5140

5140

5150

5150

5150

7105

7105

7105

7107

7107

7107

7106

7106

7106

7110

7110

7110

12 Screen Deluxe Theatre12 Screen Deluxe Theatre12 Screen Deluxe Theatre

4 Level Retail Parking Garage4 Level Retail Parking Garage4 Level Retail Parking Garage

Residential Parking GarageResidential Parking GarageResidential Parking Garage

101151011510115

Stilista10112Stilista10112Stilista10112101051010510105817081708170

816581658165

The Pub8160

The Pub8160

The Pub8160

AZNRestaurant

8155

AZNRestaurant

8155

AZNRestaurant

8155

815081508150

8142

8142

8142

812581258125812081208120811581158115811081108110

810581058105

8140

8140

8140813081308130


(Future Development)


(Future Development)


(Future Development)713571357135712571257125

7120

7120

7120

7115

7115

7115

111011110111101

111031110311103


(VPD 25,500)


(VPD 25,500)

2nd Floor


(Not Included)

mercato - hff

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