CBRE | Land Services Group

Panama City Beach Redevelopment Property

OFFERING MEMORANDUM

panama ci t y beac h , f l orida

F O R M O R E I N F O R M AT I O N P L E A S E C O N TA C T :

Jess Simmons Senior Associate T: +1 904 633 2610 [email protected] CBRE, Inc. 225 Water Street, Suite 110 Jacksonville, FL 32202 T: +1 904 634 1200 F: +1 904 791 8953

For more information on our company or people please visit us at our website:

www.cbre.com/ pcbredevelopment

Disclaimer CBRE, Inc., a Delaware Corporation (CBRE), has been retained as exclusive broker regarding the sale of approximately 126.3 acres located in Panama City Beach, Florida. This Offering Memorandum has been prepared by CBRE for use by a limited number of parties and does not necessarily purport to provide an accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information, which prospective investors may need or desire. All projections have been developed by CBRE and designated sources and are based upon assumptions relating to the general economy, competition and other factors beyond the control of CBRE and Owner, and therefore are subject to variation. No representation is made by CBRE or Owner as to the accuracy or completeness of the information or photographs contained herein, and nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of the Property. Some of the photographs were digitized. Although the information contained herein is believed to be correct, CBRE and Owner and its employees disclaim any and all liability for representations and warranties, express and implied, contained in, or for omissions from, the Offering Memorandum or any other written or oral communication transmitted or made available to the recipient. The Offering Memorandum does not constitute a representation that there has not been a change in the business or affairs of the Property or of the Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective Purchaser. Prospective Purchaser may not interview the tenants, represent to the tenants that the Property is for sale, or represent to the tenants that the Prospective Purchaser is buying the Property without written consent from the Owner. Additional information and an opportunity to inspect the Property will be made available upon written request by interested and qualified prospective investors and upon execution of a Confidentiality Agreement. Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers regarding the Property and/or terminate discussions with any entity at any time with or without notice, for any reason. Neither the Offering Memorandum, nor any offer or inquiry made by an entity reviewing the Offering Memorandum, nor any negotiations or discussions among Owner, CBRE or any such entity, shall be deemed to create a binding contract between Owner and such entity. If Owner accepts an offer made by any such entity, it is expected that a written contract for the purchase of the Property will be negotiated between the parties. All legal rights and obligations between such entity, on the one hand, and Owner, on the other hand, will come into existence only when such a purchase contract is fully executed, delivered, and approved by Owner and its legal counsel, and any conditions to Owner’s obligations thereunder have been satisfied or waived, and the legal rights and obligations of the parties shall at that time be only those which are set forth in the purchase contract and other documents specifically referred to in the purchase contract. This Offering Memorandum and the contents, except such information, which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting the Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose the Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you if necessary, for your determination of whether or not to make a proposal and from whom you obtained an agreement of confidentiality) without the prior written authorization of Owner, and that you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Owner or CBRE.

© 2013 CBRE, Inc. Licensed Real Estate Broker. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Table of Contents Property Overview 4 Zoning

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Current Revenue

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Panama City Beach

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Location 8 Proposal Procedure

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PANAMA CITY BEACH LAND

PROPERTY OVERVIEW: b ay C O U N T Y : : F L O RI D A

The subject property is the largest contiguous tract of land available on Panama City Beach. Privately owned for generations, the property is presently used as a public golf course and amusement center. It is located in the heart of the action for Panama City Beach and has been under single ownership since 1932. This redevelopment tract is 126.3 total acres in the heart of the Beach’s entertainment district. Just one block off the beach, it is accessible via Front Beach Road and separated by Thomas Drive. The larger tract on 9323 Front Beach Road is 68.7 acres in size, and the other, at 9401 Thomas Drive is 57.6 acres. The beach itself is across Thomas Drive and the Seller has a permanent 20’ easement from Thomas Drive to the beach. There is an additional land on the beach (approximately 17 acres) that can be purchased with this tract. Of the 126.3 acres, there is a 0.39 acre wetland, 2.45 acre pond, and a small creek on the property.

Additional Property There are approximately 17 acres located on the beach with ±1,300 feet of gulf frontage adjacent to this tract that are also available. This tract consists of two (2) motels and a vacant parcel. Under separate ownership, the tract includes parcels 34986-000-000, 34987-000-000, 34990-100-000, and 34984-090-000.

Revenue The overall area is commercial / entertainment with a new Wal-Mart Store, a Ripley’s Believe It or Not Museum, and a new Wonderworks attraction. Arcades and rides are abundant throughout this area. Several tenants on the property create a positive cash flow as described on Page 8.

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Offering memorandum

REdevelopment opportunity

ZONING: T h e p r op e r ty c u r r e nt ly h a s t h r e e ( 3 ) d i ff e r e nt zon i ng c l a ss i f i c at i ons : C - 3 , C S V R , a nd T- 3 A .

Standards

CSVR

C-3

T-3A

Impervious Surface Ratio

10%

60%

80%

Floor Area Ratio

20%

200%

80%

Density

N/A

15 Dwelling Units (DUs) per Acre

No more than an average of 15 dwelling units per acre and no more than a maximum density of 45 dwelling units per acre.

Height

50'

230'

None (except for limitations noted below)

Minimum Building Setbacks

FRONT: 100 ft.

FRONT: 25 ft.

FRONT: 25 ft.

Side: 100 ft.

Side: 3 ft.

Side: 1 Story – 5 ft.

Rear: 100 ft.

(adjacent to “R” Zones – 20 ft).

2 Story – 7.5 ft.

Rear: 20 ft

3 Story – 10 ft.  4 Stories and over – 1  0 ft. plus 4 in. for each foot of building height over 40 ft Rear: 10 ft. plus 4 in. for each foot of building height over 40 ft.

The City of Panama Beach is supportive of the sale of this tract and is ready and willing to assist in any future re-zoning and planning/development.

Parcel A has an estimated 7.52 acres with a zoning designation of C-3 and 61.18 acres with a zoning designation of CSVR.

The developable area of Parcel A would be 60% (C-3) and 10% (CSVR) to be impervious, which would allow for a maximum area for buildings, parking lots, etc. to be 196,543 square feet for the C-3 portion and 266,500 square feet for the CSVR portion. The Floor Area Ratio for Parcel A would be 655,142 square feet for the C-3 portion and 533,000 square feet for the CSVR potion. As shown in the table above CSVR Zoning does not allow for any residential density and neither does the C-3 Zoning.

Parcel B has an estimated 57.6 acres with a zoning designation of T-3A. The developable area for Parcel B would be 80% to be impervious, which would allow for a maximum area for buildings, parking lots, etc. to be 2,007,245 square feet (46 acres) and the Floor Area Ratio would be 2,007,245 square feet (46 acres). The allowable density for this parcel will range from 864 dwelling units to 2,592 dwelling units.

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PANAMA CITY BEACH LAND

CURRENT REVENUE: There are presently five (5) tenants on the property that produce $328,500 in annual revenue: Amusement Venues Super Speed Cobra Track ET 98 Retail Store Alvin’s Golf Course Signal Hill Property

Alvin’s Island is a 12,000 SF tropical department store selling beach apparel and accessories. Signal Hill is an 18 hole golf course designed by John Sherman that opened in 1962. With a 63.5 rating the 5,617 yard course has a full service clubhouse. Amusement and Retail annual NNN rents, Seller receives 50% • Super Speed :: $75,000 • Cobra track :: $105,000 • ET 98 :: $37,000 • Alvin’s Island :: $104,000 Signal Hill Golf annual rent :: $168,000

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Offering memorandum

REdevelopment opportunity

PANAMA CITY BEACH: Panama City Beach is teeming with more than 26,000 units that include 16,600 condominiums, 4,700 hotel rooms and 5,100 rentals. Following an increase in 2010 sales over 2009, in 2011 sales of existing condominiums continued to correct the market buy increasing by 24%. In 2011, the median condominium price fell 8.5%. While there has not been a new beach construction project since the early to mid 2000’s there are a number of “entitled” projects that were scheduled to come on line 2012 to 2014. Many of these projects have been scrapped and some remain in a waiting mode for a market turnaround. Available properties in real estate: Gulf front properties are abundant and include many aged properties and vacant sites. A quick review of available properties shows that there are several condominium or hotel sites on the gulf at asking prices of $125 to $340 per square foot. These represent listings that have been available for longer than 1.5 years. Newer listings, on the market for a year or less, are at asking prices in the range of $40 to $78 per square foot. Comparable sales in real estate: Looking back three years for gulf front or near gulf front, there were only seven sales that were arms length transactions. Of these, the average tract was less than 1.5 acre in size, and the average sale price was just under $20.00 per square foot. There were many other comparable sales that were non-arms length, mostly foreclosed bank sales. The subject tract is the largest continuous tract available in all of Panama City Beach and offers numerous opportunities for redevelopment that may include residential, hospitality, entertainment, and recreation.

offering memorandum

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PANAMA CITY BEACH LAND

LOCATION: Panama City Beach is located in Florida’s Northwest Panhandle. It is in Bay County, 98 miles south of the Capital City of Tallahassee. Historically home to native Indians and later pirates, Panama City Beach is deemed one of the “World’s Most Beautiful Beaches” because of its soft, quartz crystal sand. The Beach boasts 27 miles of emerald green waters of the Gulf of Mexico. It is surrounded by State Parks and has one of the largest sport fishing fleets in Florida. The sub tropical temperature averages 74 degrees year round.

SUBJECT

The city has a year round population of 14,200, but nearly 7,000,000 visitors come here for vacations and get aways annually. Ecotourism, springbreak events, fishing and diving and camping are among the most popular attractions. DRIVING DISTANCE:

• • • •

Tallahassee, FL

98 Miles

Jacksonville, FL

270 Miles

Orlando, FL

340 Miles

Tampa, FL

339 Miles

• Atlanta, GA • Birmingham, AL • New Orleans, LA

297 Miles 280 Miles 315 Miles

Demographics 2016 ESTIMATED POPULATION POPULATION GROWTH 2011-2016 2011 AVERAGE HOUSEHOLD INCOME 2011 AVERAGE HOUSING VALUE 8

Offering memorandum

15,793 10.9% $61,827 $241,351

SUBJECT

REdevelopment opportunity

LOCATION CONTINUED: Panama City Beach makes many of the “top lists” recently including: •

World’s Most Beautiful Beaches

•

Top Five Winter Travel Stops

•

No. 5 “Best Family Beach”

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Top Five Family Vacations and Top Ten Budget Destinations

PIER PARK | pANAMA CITY BEACH

Panama City Beach was recently ranked the 6th Strongest Housing Market by 2014. In January 2011 Business Facilities Magazine rated Panama City Beach the number one Metro Area for Economic Growth Potential. Chamber of Commerce: www.pcbeach.org

Tourism Guide: www.visitpanamacitybeach.com

MAJOR EMPLOYERS Business Name

Service

Employs

TYNDALL AIR FORCE

Military

5,191

NAVY SUPPORT ACTIVITY

Military

3,816

BAY DISTRICT SCHOOLS

Government

3,370

BAY MEDICAL CENTER

Health Care

2,174

GULF COOAST MEDICAL CENTER

Health Care

850

TRANE

Manufacturer

750

EASTERN SHIPBUILDING

Manufacturer

601

offering memorandum

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PANAMA CITY BEACH LAND

WAL-MART

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Offering memorandum

REdevelopment opportunity

PROPOSAL PROCEDURE: CBRE is proud to be named exclusive agent in the sale of the Panama City Beach land located 98 miles south of Tallahassee, Florida. The property consists of ±126.3 total acres, just one block off the beach, it is accessible via Front Beach Road and separated by Thomas Drive. We are seeking qualified buyers for this property. To visit the tract, please contact us. Proposals should be addressed to: Jess Simmons CBRE, Inc. 225 Water Street, Suite 110 Jacksonville, Florida 32202 T: +1 904 633 2610 F: +1 904 791 8953 [email protected] Steve Lehr CBRE, Inc. 4400 W. 78th Street, Suite 200 Minneapolis, MN 55435 T: +1 952 924 4656 F: +1 952 831 8023 [email protected]

SUBJECT

offering memorandum

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Panama City Beach Redevelopment Property panama ci t y beac h , f l orida

F O R M O R E I N F O R M AT I O N P L E A S E C O N TA C T : P RE S E N T E D B Y:

Jess Simmons Senior Associate T: +1 904 633 2610 [email protected] CBRE, Inc. 225 Water Street, Suite 110 Jacksonville, FL 32202 T: +1 904 634 1200 F: +1 904 791 8953

www.cbre.com/pcbredevelopment

O ffering M emorandum