Single Tenant, NNN Leased Office Building
Single Tenant, NNN Leased Office Building 7.7% CAP Rate at the Asking Price of $4,999,900 $384,000 Net Income with Annual Rent Increases 10 Year Guaranteed Lease with Two 5-Year Options Medical-Technology Office Building Modern Building in Upscale Sarasota, Florida Office Park
10-yr NNN lease began June 2012
Guaranteed by national company
Building only 4 years old
Energy efficient
Storm resistant
Full building Generator
Modern corporate park designated as a “Verizon Smart Park”
Near Interstate 75
Easy access to Tampa, St. Pete & Fort Myers
Offered by:
TOM STRECK, Commercial Realtor Mobile: 941-962-5785
Email: [email protected]
© 2013 TJS LLC. Brochure may not be copied or distributed without permission from Broker.
EXECUTIVE SUMMARY This is a four year old, single tenant, net leased office building located in a modern corporate park in Sarasota, Florida, just off Interstate-75. The building was constructed by the tenant company which handles sensitive electronic medical and financial data for large physician groups across the United States. The building is a traditional office building, but has greatly enhanced structural components which make it highly energy efficient and able to withstand severe weather. The ten year lease has an effective date of June 1, 2012. There are also two, 5-year options. The tenant is a large, national company. The property will generate $384,000 in the current year. There is also a yearly rent increase. The well-written net lease requires very little involvement from the owner. Details are on the following pages. Here are the QUICK FACTS:
Address:
6802 Energy Court, Sarasota, Florida, USA 34240
Parcel ID:
0189-16-0004, Sarasota County, Sarasota, Florida
Lease Commencement:
6/1/2012
Lease Ends:
5/31/2022
Guaranteed:
Yes; by Origin Healthcare Solutions (See p.3)
Renewal Options:
Yes: Two, 5-year options
Lease type:
NNN
Net Rent:
$384,134 for 6/1/2012 to 5/31/2013, Rent adjusts annually; next increase is June 1, 2013
Rentable SF:
20,809
Constructed/Occupied:
2007/2008
Building type:
Class A
Land:
2.4 Acres
Parking:
All four sides (See p.7)
Asking Price:
$4,999,900
CAP Rate at Asking Price:
7.7%
PAGE 2 © 2013 TJS LLC. Brochure may not be copied or distributed without permission from Broker.
The LEASE GUARANTOR The Lease Guarantor is Origin Healthcare Solutions of Chicago. Origin Healthcare is the country’s largest provider of back office technology and financial systems for physicians and other medical practitioners, boasting over 50,000 clients. This building houses a wholly owned division of Origin named Partners in Practice. The building also serves as the headquarters for Origin’s Eastern United States operations. Origin is in the process of consolidating some of their other Eastern U.S. operations into this location. They have hired an additional 40 employees at this location in the last few months.
More About ORIGIN HEALTHCARE SOLUTIONS
Origin is privately owned by two multi-billion dollar venture capital companies, Technology Crossover Ventures, and Beacon Petty and O’Keefe. Being privately held, Origin's finances are confidential, however audited financials will be shared with a serious buyer, under non-disclosure agreement which the potential buyer must sign directly with Origin.
Please visit these web sites for more information about the businesses described above: Lease Guarantor, Origin Healthcare Solutions:
www.originhs.com
The two companies that own Origin Healthcare Solutions: Primary Owner of Origin: Technology Crossover Ventures:
www.tcv.com
Origin Healthcare Solutions is in their Services portfolio. Other TCV investments: Netflix, Expedia, GoDaddy, Fandango, Zillow, EA games, etc.
Secondary Owner of Origin: Beecken Petty and O’Keefe:
www.bpoc.com
Origin Healthcare Solutions is in their Fund II portfolio. BPOC invests primarily in healthcare-related companies.
PAGE 3 © 2013 TJS LLC. Brochure may not be copied or distributed without permission from Broker.
The LEASE and LEASE ADDENDUM The lease is available for review. It is well-written and clearly explains both tenant and landlord responsibilities. It is a net lease where the tenant pays a base rent, plus all taxes, operating expenses, insurance, and property maintenance (CAM). The owner is only responsible for the roof and sidewalls, and since the building is only a few years old, there are still warranties in place. The seller owns other properties in Sarasota, and is willing to coordinate a roof or sidewall warranty repair for the new owner.
The initial 10-year lease was effective June, 2009. A new 10-year lease addendum was signed in June 2012. The addendum re-starts the ten year lease and guarantee.
ANNUAL RENT INCREASES Please review lease section 3.2 where the formula for the annual rent increase is explained. The annual rent starts at $384,134 in June 2012. The next rent adjustment is June 1, 2013.
PAGE 4 © 2013 TJS LLC. Brochure may not be copied or distributed without permission from Broker.
The BUILDING The building is a normal office building in every sense. It is not a data center. The building is one story building with nearly 21,000 rentable square feet. The sophisticated computer room occupies less than 1,000 SF. The remaining 20,000 SF has about 10,000 SF of open office area for cubicles, and another 10,000 SF for offices, conference rooms, and bathrooms. The sensitive nature of the medical data processed at the building required that the building be constructed to withstand any type of natural disaster that could occur in Florida. The walls are hardened and reinforced concrete, made much thicker than normal. The roof and windows are similarly over-engineered. The result is a building that can withstand a wind event of 270 MPH. (The highest hurricane force wind ever recorded on earth was 205 MPH.) The building is not near the Gulf of Mexico; it is several miles inland. This superior construction has another important benefit: the building is extremely energy efficient, requiring less HVAC systems than in buildings of similar size. In addition, the building has a dedicated generator that starts in seconds if power is lost. The generator can run for several days without refueling. The computer room has the latest fire suppressant technology to quickly extinguish a fire without damage to sensitive technology., or to employees The building is located in The Lakewood Ranch Corporate Park, a modern corporate office park of similarly new building, where electricity and all other utilities are underground, providing even more insurance that power will rarely be lost. The park is designated a “Verizon Smart Park”, meaning the latest voice and data services are in place. If and when the tenant ends their lease, the building is marketable as an energy-efficient office building.
LOCATION Sarasota is located on the West Coast of Florida, one hour South of the Tampa/St. Petersburg/Clearwater market, and one hour North of Ft. Myers. Interstate Highway 75, the North/South Interstate on the West Coast of Florida runs directly through Sarasota, and the property is approximately one mile from a major exit on I-75. Sarasota Airport is only 8 miles away, and Tampa International Airport is a 45-minute drive on the interstate. The building is situated at the end of a cul-de-sac. There is parking on all four sides of the building. (Please see aerial photo on Page 6.) Employees can enter the building on all four sides. Currently, there are about 200 other businesses in this corporate park. Sarasota is one of the premier places to live in Florida. It is known as the “Art Capital of Florida”. It’s fabulous beaches were rated #1 in the world in 2011. The Sarasota community is vibrant. People want to live here.
PAGE 5 © 2013 TJS LLC. Brochure may not be copied or distributed without permission from Broker.
The OFFERING The building is offered as a cash sale. The Seller is not offering any financing. If the buyer wishes to finance the purchase, the buyer must make those arrangements on their own. The current owner has one conventional commercial mortgage on the property which will be paid in full at the closing. There are no financial problems with the building or the seller, nor are there any liens or encumbrances of any kind. This will be a clean and simple purchase for a qualified buyer. Reason for selling: The owner is simply moving on to his next opportunity.
DISCLOSURE All information contained in the marketing materials, listing web site, or other promotional material is believed to be correct, however neither the Seller nor the Broker make any guarantee or warranty as to the accuracy or completeness of such information. The Buyer bears the sole responsibility to confirm all information relevant to the property prior to offer. Neither the Seller or the Broker shall be liable for any relief or adjustments based on the failure of Buyer to conduct research and inspect the property. Potential Buyers are encouraged to seek their own accounting, tax, and legal advice before making an offer on this commercial property.
PAGE 6 © 2013 TJS LLC. Brochure may not be copied or distributed without permission from Broker.
AERIAL VIEW OF PROPERTY
Parcel: 0189-16-0004 Sarasota County, Sarasota, Florida
PAGE 7 © 2013 TJS LLC. Brochure may not be copied or distributed without permission from Broker.
10-yr NNN lease began June 2012
Guaranteed by national company
Building only 4 years old
Energy efficient
Storm resistant
Full building Generator
Modern corporate park designated as a “Verizon Smart Park”
Near Interstate 75
Easy access to Tampa, St. Pete & Fort Myers
Offered by:
TOM STRECK, Commercial Realtor Mobile: 941-962-5785
Email: [email protected]
© 2013 TJS LLC. Brochure may not be copied or distributed without permission from Broker.
EXECUTIVE SUMMARY This is a four year old, single tenant, net leased office building located in a modern corporate park in Sarasota, Florida, just off Interstate-75. The building was constructed by the tenant company which handles sensitive electronic medical and financial data for large physician groups across the United States. The building is a traditional office building, but has greatly enhanced structural components which make it highly energy efficient and able to withstand severe weather. The ten year lease has an effective date of June 1, 2012. There are also two, 5-year options. The tenant is a large, national company. The property will generate $384,000 in the current year. There is also a yearly rent increase. The well-written net lease requires very little involvement from the owner. Details are on the following pages. Here are the QUICK FACTS:
Address:
6802 Energy Court, Sarasota, Florida, USA 34240
Parcel ID:
0189-16-0004, Sarasota County, Sarasota, Florida
Lease Commencement:
6/1/2012
Lease Ends:
5/31/2022
Guaranteed:
Yes; by Origin Healthcare Solutions (See p.3)
Renewal Options:
Yes: Two, 5-year options
Lease type:
NNN
Net Rent:
$384,134 for 6/1/2012 to 5/31/2013, Rent adjusts annually; next increase is June 1, 2013
Rentable SF:
20,809
Constructed/Occupied:
2007/2008
Building type:
Class A
Land:
2.4 Acres
Parking:
All four sides (See p.7)
Asking Price:
$4,999,900
CAP Rate at Asking Price:
7.7%
PAGE 2 © 2013 TJS LLC. Brochure may not be copied or distributed without permission from Broker.
The LEASE GUARANTOR The Lease Guarantor is Origin Healthcare Solutions of Chicago. Origin Healthcare is the country’s largest provider of back office technology and financial systems for physicians and other medical practitioners, boasting over 50,000 clients. This building houses a wholly owned division of Origin named Partners in Practice. The building also serves as the headquarters for Origin’s Eastern United States operations. Origin is in the process of consolidating some of their other Eastern U.S. operations into this location. They have hired an additional 40 employees at this location in the last few months.
More About ORIGIN HEALTHCARE SOLUTIONS
Origin is privately owned by two multi-billion dollar venture capital companies, Technology Crossover Ventures, and Beacon Petty and O’Keefe. Being privately held, Origin's finances are confidential, however audited financials will be shared with a serious buyer, under non-disclosure agreement which the potential buyer must sign directly with Origin.
Please visit these web sites for more information about the businesses described above: Lease Guarantor, Origin Healthcare Solutions:
www.originhs.com
The two companies that own Origin Healthcare Solutions: Primary Owner of Origin: Technology Crossover Ventures:
www.tcv.com
Origin Healthcare Solutions is in their Services portfolio. Other TCV investments: Netflix, Expedia, GoDaddy, Fandango, Zillow, EA games, etc.
Secondary Owner of Origin: Beecken Petty and O’Keefe:
www.bpoc.com
Origin Healthcare Solutions is in their Fund II portfolio. BPOC invests primarily in healthcare-related companies.
PAGE 3 © 2013 TJS LLC. Brochure may not be copied or distributed without permission from Broker.
The LEASE and LEASE ADDENDUM The lease is available for review. It is well-written and clearly explains both tenant and landlord responsibilities. It is a net lease where the tenant pays a base rent, plus all taxes, operating expenses, insurance, and property maintenance (CAM). The owner is only responsible for the roof and sidewalls, and since the building is only a few years old, there are still warranties in place. The seller owns other properties in Sarasota, and is willing to coordinate a roof or sidewall warranty repair for the new owner.
The initial 10-year lease was effective June, 2009. A new 10-year lease addendum was signed in June 2012. The addendum re-starts the ten year lease and guarantee.
ANNUAL RENT INCREASES Please review lease section 3.2 where the formula for the annual rent increase is explained. The annual rent starts at $384,134 in June 2012. The next rent adjustment is June 1, 2013.
PAGE 4 © 2013 TJS LLC. Brochure may not be copied or distributed without permission from Broker.
The BUILDING The building is a normal office building in every sense. It is not a data center. The building is one story building with nearly 21,000 rentable square feet. The sophisticated computer room occupies less than 1,000 SF. The remaining 20,000 SF has about 10,000 SF of open office area for cubicles, and another 10,000 SF for offices, conference rooms, and bathrooms. The sensitive nature of the medical data processed at the building required that the building be constructed to withstand any type of natural disaster that could occur in Florida. The walls are hardened and reinforced concrete, made much thicker than normal. The roof and windows are similarly over-engineered. The result is a building that can withstand a wind event of 270 MPH. (The highest hurricane force wind ever recorded on earth was 205 MPH.) The building is not near the Gulf of Mexico; it is several miles inland. This superior construction has another important benefit: the building is extremely energy efficient, requiring less HVAC systems than in buildings of similar size. In addition, the building has a dedicated generator that starts in seconds if power is lost. The generator can run for several days without refueling. The computer room has the latest fire suppressant technology to quickly extinguish a fire without damage to sensitive technology., or to employees The building is located in The Lakewood Ranch Corporate Park, a modern corporate office park of similarly new building, where electricity and all other utilities are underground, providing even more insurance that power will rarely be lost. The park is designated a “Verizon Smart Park”, meaning the latest voice and data services are in place. If and when the tenant ends their lease, the building is marketable as an energy-efficient office building.
LOCATION Sarasota is located on the West Coast of Florida, one hour South of the Tampa/St. Petersburg/Clearwater market, and one hour North of Ft. Myers. Interstate Highway 75, the North/South Interstate on the West Coast of Florida runs directly through Sarasota, and the property is approximately one mile from a major exit on I-75. Sarasota Airport is only 8 miles away, and Tampa International Airport is a 45-minute drive on the interstate. The building is situated at the end of a cul-de-sac. There is parking on all four sides of the building. (Please see aerial photo on Page 6.) Employees can enter the building on all four sides. Currently, there are about 200 other businesses in this corporate park. Sarasota is one of the premier places to live in Florida. It is known as the “Art Capital of Florida”. It’s fabulous beaches were rated #1 in the world in 2011. The Sarasota community is vibrant. People want to live here.
PAGE 5 © 2013 TJS LLC. Brochure may not be copied or distributed without permission from Broker.
The OFFERING The building is offered as a cash sale. The Seller is not offering any financing. If the buyer wishes to finance the purchase, the buyer must make those arrangements on their own. The current owner has one conventional commercial mortgage on the property which will be paid in full at the closing. There are no financial problems with the building or the seller, nor are there any liens or encumbrances of any kind. This will be a clean and simple purchase for a qualified buyer. Reason for selling: The owner is simply moving on to his next opportunity.
DISCLOSURE All information contained in the marketing materials, listing web site, or other promotional material is believed to be correct, however neither the Seller nor the Broker make any guarantee or warranty as to the accuracy or completeness of such information. The Buyer bears the sole responsibility to confirm all information relevant to the property prior to offer. Neither the Seller or the Broker shall be liable for any relief or adjustments based on the failure of Buyer to conduct research and inspect the property. Potential Buyers are encouraged to seek their own accounting, tax, and legal advice before making an offer on this commercial property.
PAGE 6 © 2013 TJS LLC. Brochure may not be copied or distributed without permission from Broker.
AERIAL VIEW OF PROPERTY
Parcel: 0189-16-0004 Sarasota County, Sarasota, Florida
PAGE 7 © 2013 TJS LLC. Brochure may not be copied or distributed without permission from Broker.
