Terranova Corporation
Retail Real Estate
Mindy McIlroy
Executive Vice President
mindy@terranovacorp.com
Main: 305.695.8700
Fax: 305.672.7800
801 Arthur Godfrey Road, Suite 600
Miami Beach, Florida 33140
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South Florida Market Overview:
• Occupancy
• Rental Rates
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Overall Vacancy
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Overall Rental Rates
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Major Projects Recently
Completed, Underway or
Proposed in South Florida
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New Construction 2009
County
Projects
Completed
Total Square Feet
Palm Beach
4
622,062
Broward
3
343,126
Miami-Dade
2
475,000
SOUTH FLORIDA
9
1,440,188
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Square Feet
Proposed/Under Construction
16 projects
9 projects
6 projects
13 projects
2 projects
2 projects
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Palm Beach County
Delray Marketplace
• 300,000 SF of retail proposed
• NW corner of Atlantic Ave. and Lyons Rd.
Extension in Delray Beach
• Anchors: Publix, Frank Theatres
Frenchman’s Crossing
• 62,200 SF of retail proposed
• NW corner of Hood Rd. and Alternate A1A
in West Palm Beach
• Anchor: Publix
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Broward County
Village at Gulfstream Park
• 410,000 SF of retail
• SE corner of U.S. 1 and Hallandale Beach
Blvd. in Hallandale
• Under construction; Completion in Feb 2010
• Anchors: Crate & Barrel, Pottery Barn,
Z Gallerie, Container Store
Hallandale Square
• Proposed 358,000 SF of retail
• SE corner of Hallandale Beach Blvd. and
U.S. 1 in Hallandale
• 749-seat movie theatre on-site
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Miami-Dade County
The Palms at Kendall Town & Country
• 700,000 SF of retail and restaurant space
under construction
• NW corner of Kendall Dr. and SW 117th Ave.
in Kendall
• Anchors: Kohl’s, Nordstrom Rack (opening
Spring 2010)
Bird 87 Village Shopping Center
• 91,300 SF of retail under construction
• NE corner of SW 87th Ave and Bird Rd.
in Miami
• Anchors: Sedano’s, Walgreens
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Major Factors Affecting
Retail Sector
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Capital Markets:
Lower Shopping Center Values
Individual Transactions
Sale
Price
Price per
Square
Foot
Sale
Date
Property Name
Location
Square
Feet
Shoppes at Monarch
Lakes
Miramar
64,020
$8.3
million
$129
July ’09
Coral Landings
Coral Springs
106,863
$18
million
$168
May ’09
Sawgrass Landing
Sunrise
64,500
$22.3
million
$345
Dec ’08
Courtyard Shops at
Wellington
Wellington
127,000
$38
million
$298
Sept ’08
Carter Square
Miami
67,370
$40.8
million
$605
April ‘08
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Capital Markets:
Lower Shopping Center Values
Bulk Transactions
Property Name
Location
Square Feet
Avg. Price
PSF
Sale Date
KIMCO-DRA DEAL
Ft. Lauderdale
229,034
$159
Oct ‘09
Hollywood
757,539
$159
Oct ‘09
Kendall Lakes Plaza
Miami
402,801
$159
Oct ‘09
Cross County Plaza
West Palm Beach
357,537
$159
Oct ‘09
Cypress Creek Station
Oakwood Plaza
• Kimco bought a remaining 85% interest in DRA Advisors 21-property portfolio for $825 million, or an average of $159 psf, including South
Florida properties
WEINGARTEN-JAMESTOWN DEAL
Ft. Lauderdale
234,500
$133
Nov ‘09
Pembroke Commons
Pembroke Pines
316,000
$133
Nov ‘09
Flamingo Pines Plaza
Pembroke Pines
126,428
$133
Nov ‘09
Hollywood Hills Plaza
Hollywood
364,700
$133
Nov ‘09
Miami
110,867
$133
Nov ‘09
Northridge Shopping Center
Tamiami Trail
• German investment fund Jamestown paid $160 million for an 80% interest in six shopping centers, or an average of $133 psf, including South
Florida properties
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Housing Cost
Decreasing Property Value
Median Sales Price
Existing Single-Family Homes
County
November
2006
October
2009
Percent Decrease
MiamiDade
$372,400
$178,500
-52.1%
Broward
$362,000
$211,600
-41.5%
Palm
Beach
$370,400
$243,900
-34.2%
Source: Florida Association of Realtors
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Other Factors The Operational Side
Operating Issues
• Lack of bank financing
• Rent defaults
Economic Climate
• Recession
• Decline in employment
• Limited availability of credit
• Housing collapse
• Rise in foreclosures, bankruptcies, and loan defaults
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Terranova Corporation
Visit us at
www.terranovacorp.com
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