FLORIDA COMMERCE PARK A Golden Opportunity Zone Project
PROJECT SUMMARY Florida Commerce Park is a one-hundred acre, fully approved “ Build-Ready ” industrial campus strategically located in Southeast Florida’s newly incorporated Village of Indiantown. **CONFIDENTIAL** 11/16/2018
PHASE ONE Completed October 2018 Land acquisition Engineering & design Site plan & platting Entitlements perfected per Planned Unit Development Agreement (PUD) Installed infrastructure includes: Roads Conservation set-asides Water, sewer, re-use water Fiber optic & electrical service Master drainage system Grading and landscaping All municipal, county, and environmental requirements satisfied and certified as complete Water and sewer infrastructure conveyed to local utility **CONFIDENTIAL** 11/16/2018
PHASE TWO Commenced November 2018 Design Phase Marketing & tenant acquisition Architectural & engineering for vertical build-out Rail spur engineering and installation Fire flow equipment installation Design of solar roof installation Sequenced vertical construction of 1,261,800 ft 2 over 7 structures **CONFIDENTIAL** 11/16/2018
OPPORTUNITY ZONE Florida Commerce Park is located wholly within Florida Opportunity Zone Census Tract No. 18.01. Based on available guidance, developer believes acquisition of the project by a Qualified Opportunity Fund prior to commencement of vertical development constitutes “Original Use” property. Developer is ready and able to consummate a transaction promptly. The property is unencumbered and all approvals and permits are current. TIMELINE Vertical development can commence approximately 30 days from the date of building permit application submission to the Village of Indiantown. First occupancy by September 2019. 30 months total time from initial building commencement to final building completion. **CONFIDENTIAL** 11/16/2018
WHY INDIANTOWN ? At the crossroads of South Florida, Indiantown is located on State Highway 710 (The Beeline Highway), a recently improved four lane highway direct to Port of Palm Beach and component of Florida’s Strategic Intermodal System (SIS). 20 minute drive from Indiantown to either Interstate 95 or the Florida Turnpike. 30 minute drive to the Port of Palm Beach. Ft. Lauderdale and Miami are 60 and 90 minutes away, respectively. Three major natural gas pipelines serving the state of Florida converge in Indiantown. Fiber optic regional trunk runs through Indiantown providing high speed data transfer and communications. Situated inland and insulated from all major coastal weather events. Elevations in Indiantown and at Florida Commerce Park exceed 30’ msl and substantially eliminate site flooding risk. Major amenities and community services are found in Indiantown. Local workforce is in place. Newly incorporated Village of Indiantown is business-forward and development friendly. **CONFIDENTIAL** 11/16/2018
Florida Commerce Park Drivers and Advantages The south Florida industrial real estate market is in severe imbalance as evidenced by soaring land & lease pricing, historic low vacancy rates and worsening commercial traffic/congestion statistics. A major improvement project currently underway to widen the Panama Canal is projected to substantially increase ocean cargo traffic to Florida ports, already operating under constrained conditions. Florida Commerce Park’s strategic location, connected by CSX rail and highway (28 min to Port of Palm Beach, 80 min to Port Everglades and 130 min to Port of Miami, by road) is perfectly situated to address increased warehouse and logistics demand. All infrastructure, site work, and approvals are in place resulting in a development timeline advantage of between 18 and 24 months compared to other sites. The campus is rail- served by 4,000’ CSX siding. Developers are in active discussion with CSX and the company is a valuable user referral source. Included in the federally designated Foreign Trade Zone FTZ 135. Included in SBA Qualified HUBZone, census tract ID 12085001802. **CONFIDENTIAL** 11/16/2018
Robust pipeline of prospective tenants- prior to the commencement of developer’s marketing initiative Company PIM in design stage discussions for three buildings on Parcels D, E & F totaling ~ 700,000 ft 2 Company UFP in early stage discussions for three buildings on Parcels D, E & F totaling ~ 700,000 ft 2 Company IMP in early stage discussions for one building on Parcels A & B totaling 267,000 ft 2 Company NXE in continuing discussions for one building on Parcel C totaling 126,000 ft 2 **CONFIDENTIAL** 11/16/2018
TRANSACTION STRUCTURE OPTIONS Option One Developer sells to Op Fund and exits. Op Fund assumes full control over Phase Two & all aspects of future park management. Deliverables include: Completed Phase One All pipeline deals, resources & conversations Transition consulting Option Two Developer sells to Op Fund and remains as Owner’s Representative/Fee Developer/Property Manager Assumes responsibility and oversite for Phase Two development Oversite of park marketing function and leasing activities Provides full service, ongoing park management Option Three Developer will consider alternative models proposed by Op Fund **CONFIDENTIAL** 11/16/2018
ECONOMIC SYNOPSIS Completed Value of Phase One: $36.0mm Includes land, entitlements, all horizontal development & Infrastructure Projected Cost of Phase Two: $118.0mm 1,261,800 ft 2 over 7 buildings @ $90 psf (36’ Clear construction standards) Includes provisions for i) CSX rail spur extension, ii) impact fees & iii) private fire flow system Projected Revenue Model Standard 10 year “NNN” lease Penetration pricing offered in years 1 & 2; market rate in years 3 - 10 2.75% annual escalator CAMS Higher of $2.50 psf or ‘Actual’ 2.75% annual escalator **CONFIDENTIAL** 11/16/2018
Pro Forma Revenue and Absorption Model Gross Revenues 2019 2020 2021 2022 2023 2024 2025 2026 Ft 2 Parcel (stabilized) (normalized) Tenant1 $ 574,166.67 $ 1,732,216.67 $ 1,926,191.15 $ 2,293,093.65 $ 2,356,153.73 $ 2,419,301.00 $ 2,485,831.77 $ 2,554,192.15 F 265,000 $ 124,312.50 $ 1,495,168.59 $ 1,570,270.38 $ 1,987,283.93 $ 2,041,934.24 $ 2,098,087.43 $ 2,155,784.83 $ 2,215,068.91 E 229,500 $ 1,087,125.00 $ 1,334,445.94 $ 1,668,342.27 $ 1,773,661.50 $ 1,822,437.19 $ 1,872,554.21 $ 1,924,049.45 D 200,700 Tenant2 $ - $ 1,301,625.00 $ 1,771,294.69 $ 2,175,844.54 $ 2,354,293.34 $ 2,419,036.41 $ 2,485,559.91 $ 2,553,912.81 A & B 267,000 Tenant3 $ - $ 409,500.00 $ 830,261.25 $ 965,042.86 $ 1,103,530.96 $ 1,133,878.06 $ 1,165,059.71 $ 1,197,098.85 C 126,000 Tenant4 $ - $ 174,687.50 $ 703,553.91 $ 770,657.84 $ 935,119.54 $ 960,835.33 $ 987,258.30 $ 1,014,407.90 G12 & G13 107,500 Tenant5 $ - $ - $ 393,845.83 $ 440,480.76 $ 560,263.86 $ 585,459.28 $ 601,559.42 $ 618,102.30 G14 66,100 Total $ 698,479.17 $ 6,200,322.76 $ 8,529,863.14 $ 10,300,745.85 $ 11,124,957.16 $ 11,439,034.70 $ 11,753,608.15 $ 12,076,832.38 **CONFIDENTIAL** 11/16/2018
APPENDICES **CONFIDENTIAL** 11/16/2018
Major Highways Airports Interstate 95 13 Miles Indiantown Airport 5 Miles Florida Turnpike 14 Miles N. Palm Beach County 10 Miles Highway 70 28 Miles Stuart Airport 25 Miles PBI 35 Miles Ports Port of Palm Beach 30 Miles Ft. Lauderdale 80 Miles Port Everglades 80 Miles Miami International 100 Miles Port of Miami 100 Miles Orlando International 140 Miles Tampa International 190 Miles **CONFIDENTIAL** 11/16/2018
**CONFIDENTIAL** 11/16/2018
**CONFIDENTIAL** 11/16/2018
FLORIDA COMMERCE PARK IS A DEVELOPMENT PROJECT OF SKYFARM STRATEGIC CAPITAL LLC. ENGINEERING SERVICES ARE PROVIDED BY MELISSA CORBETT P.E. OF THE MILCOR GROUP. THE PROJECT GENERAL CONTRACTOR IS RICK MANCIL, MANCIL’S TRACTOR SERVICE AND THE MARKETING PARTNER IS INDIANTOWN REALTY. THE GUNSTER LAW FIRM SERVES AS LAND USE COUNSEL. Contact: Indiantown Realty 15328 SW Warfield Blvd. Indiantown, FL 34956 772-597-3355 David Powers david@indiantownrealty.com 772-260-0932 (cell) Kevin Powers kevin@indiantownrealty.com 772-260-6898 (cell) www.floridacommercepark.com **CONFIDENTIAL** 11/16/2018
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