Table of Contents NAICJ Transaction Process Illustrations Section IV - NAI Global Florida Region Section III - NAI Global Real Estate Services Section II - NAI Commercial Jacksonville Section I -
NAI COMMERCIAL JACKSONVILLE
About NAI Commercial Jacksonville NAI Commercial Jacksonville (“NAICJ”) is a locally-owned commercial real estate brokerage, acquisition and development firm with more than 80 years of combined experience in providing clients with the most professional, ethical and goal-oriented service in the industry. Founded in January, 2002, NAICJ is a full-service real estate firm with emphasis on tenant/landlord representation, corporate services, and investment brokerage services. In addition, NAICJ’s development division focuses on both commercial and residential projects. NAICJ’s staff of skilled real estate professionals produces unsurpassed results, whether the assignment is an office, industrial or retail lease or sale, build-to-suit project, investment acquisition/disposition or development transaction. It is the market knowledge of its brokers, driven by research and strength in the marketplace, that fuels NAICJ’s continued, proven performance record and client-pleasing real estate solutions. Until December 31, 2007, NAICJ operated as Commercial Jacksonville, Inc. within a contractual alliance with Cushman & Wakefield, Inc. Although the alliance proved mutually beneficial, the long-term growth strategies of the two companies became divergent in late 2007. Effective February 1, 2008, Commercial Jacksonville, Inc. joined the managed network of NAI Global Real Estate Services, as its sole representative throughout northeast Florida and southeast Georgia. Despite a challenging economic climate marked by sluggish housing sales and construction downturns, NAICJ has continued to expand its market presence and in 2007, posted record aggregate gross earnings of over $160 million. By constantly seeking out and implementing state-of-the-art research and reporting methods, information technology and market analysis tools, NAICJ offers clients customer-oriented, innovative commercial real estate solutions. The future of Jacksonville relies largely on the energy, creativity and experience of those who develop its resources. NAICJ combines those qualities with a wealth of development experience. NAICJ’s brokers have been involved with hundreds of millions of dollars worth of development transactions throughout northeast Florida. From country club communities to multi-family residences, from offices to industrial facilities, NAICJ has shown a total commitment to achieving outstanding quality in responsibly planned and executed projects.
NAI/NAICJ Mission Statement / Core Values
To provide the most efficient and effective systems and services in the real estate industry, combining international reach with local expertise
We put our clients first. Customer care is our top priority.
We conduct business with the highest level of trust, respect, fairness, and integrity.
We are committed to quality and continuous improvement.
We are uniquely structured to deliver world-class real estate services.
We are empowered by sharing, communicating, and collaborating.
We are a dynamic, innovative, growth-oriented enterprise.
We are leaders and teammates.
We are global in our thinking, yet local in our approach.
We embrace change and are passionate in our initiatives.
We strive to provide the most challenging, stimulating, enjoyable, and rewarding environment for all stakeholders.
Charles D. White, President and Chief Executive Officer , has an extensive depth of experience in the commercial real estate industry starting in 1982 with Coldwell Banker Commercial (now CB Richard Ellis). Chuck has also brokered for Cushman & Wakefield, Inc. and has worked for two prominent real estate investment trusts, Liberty Property Trust and Duke Realty. In January, 2002, Chuck formed Commercial Jacksonville, Inc. which operated within a contractual alliance with Cushman & Wakefield, Inc. through December, 2007. In early 2008, Chuck negotiated the Company’s strategic transition to a coveted membership in the managed network of NAI Global Real Estate Services as its sole representative in northeast Florida and southeast Georgia. On February 1, 2008, the Company’s name officially changed to NAI Commercial Jacksonville (NAICJ). Under the NAI Global flag, Chuck continues to explore all opportunities to grow the Company and enhance its presence in the Jacksonville market. As a result of his efforts, NAICJ was recognized by NAI Global with its “Fast Starter Award” for performance in 2008. The “Fast Starter Award” recognizes a new NAI member firm that best shares the NAI Global vision for excellence in commercial real estate services, quickly adapts and flourishes within the NAI Global network, and works to the betterment of the firm and the entire network.
During his 17 years brokering in Jacksonville, Chuck has personally completed some of the market’s largest tenant representation and investment/development transactions. This track record has led to Chuck being awarded, for an unprecedented two successive years, National Association of Industrial and Office Properties - Northeast Florida Chapter’s (NAIOP-NEFL) "Office Broker of the Year" for 2003 and 2004, as well as NAIOP-NEFL's 2003 "Office Lease/Sale of the Year" for his tenant representation services for Nuvell Financial Services, a division of General Motors. Chuck also served as President of NAIOP-NEFL for 2008 and received its 2008 “Redevelopment Project of the Year” award for Jacksonville’s new Virginia College site.
As one of Jacksonville’s most sought-after commercial real estate industry experts, Chuck has often been quoted in both local and statewide periodicals, such as The Jacksonville Business Journal and The Florida Times-Union, as well in industry resources, such as Southeast Real Estate Business and Commercial Property News. He has been a featured speaker at numerous local and regional industry conferences.
Chuck’s career highlights, to name only a few, include:
Fund IV and Fund V Associates – 10407/10375 Centurion Parkway; sales price $23.8 million
I-Star Financial, Inc. – Oak Grove Plaza; sales price $31.3 million
Virginia College – 54,196 square feet; ten-year lease - $8.5 million
KLS-Martin – new U.S. distribution facility; sales price of $2.0 million
Citistreet – 159,000 square feet; eight-year lease with a total consideration in excess of $14.0 million
Charles D. White President/Chief Executive Officer
NAICJ Brokers Scott Hanigan , Senior Director - Office Sales and Leasing, entered the commercial real estate industry in 1983. In 2004 and 2006 respectively, Scott received NAIOP NEFL’s “Office Lease/Sale of the Year” award for an expansion deal of 172,000 SF for Wachovia Bank and a lease transaction valued in excess of $20,000,000 for Education Management Corporation. Robert Lawrence, Associate Director - Industrial Sales and Leasing, is a native of Jacksonville, Florida. Rob joined NAI Realvest in 1995 and continued his long-time association with the NAI Global managed network when NAI Realvest closed its Jacksonville office in January, 2008, and NAI Commercial Jacksonville became its sole representative throughout northeast Florida. Scot Harrison, Associate Director – Industrial Sales and Leasing, joined NAI Commercial Jacksonville in January, 2008, after NAI Realvest, where he had worked since 2000, closed its Jacksonville office. Scot specializes in the industrial market, but is experienced in all facets of commercial real estate. Scot moved to Jacksonville in 1995. Scot attended Georgia Southern University and Georgia State University. Jacob Horsley, Associate Director – Industrial Sales and Leasing, joined NAICJ in June, 2009, after spending three years working in the southern California industrial market where he closed over 70 transactions. Before entering the field of commercial real estate, Jacob was a golf instructor for Golf Made Simple, Inc. in Jacksonville, Amelia Island, and Santa Barbara and San Diego, California. Jacob attended Ferris State University in Big Rapids, Michigan.
NAICJ Experience Office Industrial Retail Land Lease Sale • • • SAIA Motor Freight • • • United Rentals • • • Hertz Equipment Rental • • Virginia College • • XPEDX • • • R&L Carriers • • • International Paper • • Pitney Bowes • • • Church’s Chicken • • Office Suites Plus • • • Citizens Property Insurance • • Strayer University • • Holiday Inn • • Automated Data Processing (ADP) • • UBS • • American International Group (AIG) • • • CapitalSouth Bank • • Marineland • • American Express • • • • Unilever • • Citistreet (ING) • • • Wachovia Bank, N.A. • • AT&T
NAICJ Major Clients
Tenant: Education Management Corporation
Property: 8775 Baypine Road, Jacksonville
Transaction Value: $21.8 million
Case Study: Education Management Corporation (EDMC) provides post secondary education in seventy-two locations in twenty-four states and two Canadian provinces. School names include The Art Institute, Argosy University, Western State University College of Law, Brown Mackie College and South University. EDMC originally looked for a location in Jacksonville but was unable to find an acceptable facility and subsequently put the requirement on hold. In February 2006, they revisited Jacksonville and toured the market again, looking for 35,000 – 50,000 square feet. Specific requirements included a high profile building with excellent exposure and visibility, abundant parking (eight spaces per 1,000 square feet) and extensive after-hours use. After an exhaustive search of the market, a building owned by Liberty Property Trust was available in Liberty Plaza that met most of their requirements. The freestanding building was the correct size and had visibility from I-95. Unfortunately, parking in the project was insufficient. After extensive negotiations and numerous meetings, Liberty Property Trust agreed to the construction of a 385-space parking garage adjacent to the building. Tenant improvements, not including the parking garage, exceeded $1.6 million. Diligent efforts by all parties led to the successful conclusion of this transaction. The lease term is for twelve years, for 47,454 square feet.
Seller: SAIA Motor Freight
Property: 11234 East Phillips Industrial Boulevard, Jacksonville
Transaction Value: $9.2 million
Case Study: SAIA is among the leading regional less-than-truckload (LTL) companies in the United States with revenue exceeding $585 million annually. They operate throughout the United States, except for the northeast with 128 terminal locations, and through affiliates in Canada, Mexico, and Puerto Rico. SAIA quickly outgrew their local facility in Jacksonville, Florida, and purchased another facility. With this purchase, they bought a facility to accommodate their expected 5-year growth strategy, but would create a short-term situation where the new facility would have excess capacity. After evaluating their current situation, it was determined that their former facility would be sold and a solution be found to address the excess space at the new facility. A comprehensive analysis of market conditions was performed, and it was determined that:
The actual market value of their old facility was in excess of the appraised value .
The excess capacity of the new facility would not be needed for several years and could be subleased.
Through the sale/leaseback of their new facility, their capital was redeployed from real estate to operations.
The successful transactions resulted in a sales price of $300,000 more that the appraised value for the old space, a sales price of $1.2 million more than the appraised value for the new facility, and a long-term lease to cover the occupancy cost of the excess space.
Seller: Citizens Property Insurance Corporation
Property: 6676 Corporate Center Parkway, Jacksonville
Transaction Value: $10.2 million
Case Study: NAICJ negotiated the lease for Citizens Property Insurance for a newly-constructed 59,800 square-foot, state-of-the-art operations center and computer facility. During the course of lease negotiations, an option to purchase the building was established. There were set dates and times with which to conform, and the purchase had to be completed by September 30, 2005. Citizens exercised its option, and subsequent negotiations with the owners began in order to be able to assign the sales contract or permit the owners (Hallmark Partners) sell directly to the buyer. During the course of the negotiations, the owners took the opportunity to readdress certain issues that had been overlooked during the original lease negotiations, and because there was a new buyer, all parties had to agree on how these issues were to be resolved. These issues resulted in the creation of a set of contingencies of which neither Citizens nor Inland Properties (the Buyer) were aware when the transaction began. Specifically, the owners wanted to change the location of an access road to the park and wanted all parties to waive future rights in a potential reconfiguration of a lake/retention pond. There was lengthy discussion prior to the mandatory closing date of September 30, 2005. Citizens Property Insurance is a quasi-governmental agency, and numerous and varied bureaucratic approvals were required in order for them to complete the purchase of the building and the subsequent sale to Inland. All deal paperwork had to be sent to the Florida panhandle where the title agency was located. As the closing date approached, Hurricane Katrina pummeled the Southeast and delayed the closing by 48 hours. In the end, the contract was not assigned, and Inland Properties purchased the building for $10,165,000.00.
Tenant: Virginia College
Property: 5940 Beach Boulevard, Jacksonville
Transaction Value: $8.0 Million
Case Study: NAICJ represented Virginia College, a business school that typically occupies over 50,000 square feet in vacant retail locations where the demographics, traffic patterns and proximity to medical and professional businesses fit the ideal student. After a lengthy site search, the one retail store that matched Virginia College’s criteria was still in operation as a grocery store. NAICJ approached the local grocer that had recently bought the Albertson’s supermarket in Jacksonville. Due to numerous lease option negotiations and financing complications, the subsequent transaction took over one year to complete and resulted in the grocer closing the supermarket and leasing the building to Virginia College for ten years.
NAI GLOBAL REAL ESTATE SERVICES
NAI Global Corporate Overview Unique Brokerage Services & History Among the world’s leading commercial real estate organizations, NAI Global is unique. NAI Global is not just a network — we’re a managed network structured to provide smart thinking and fast action on behalf of clients operating in corporate, institutional and government sectors around the world. Globally, we handle over $45 billion in transactions annually — transactions ranging from complex corporate relocations to large investment sales to the routine handling of leases and sales in the $1 million range. The NAI model works because we provide single-point-of-contact accountability and direct access to our network of trusted advisors, experienced professionals who can expertly handle your requirement. Whether your need is finding property to acquire or lease, positioning a property for sale, developing a leasing strategy for a new development project or disposing of surplus assets, NAI offers a comprehensive array of transaction and advisory services. Our skill in handling multiple and varying transactions concurrently is often the critical difference. The NAI Global network is everywhere, with more than 5,000 professionals and 375 offices in 55 countries. We move with the efficiency and flexibility of a strong, nimble organization. As you’ll discover when you meet our professionals, engaging NAI is an easy, personal experience. When you do business with NAI, you connect with the best people in each local marketplace. Our professionals grew up in their markets; they are part of their communities and are better connected because of it. They also know the inventory — not only what is available, but what might become available. And because we have an insider’s understanding of the value of product at a local level, we can help you reduce cost in acquisitions. At NAI, best practices are standard practice. For more than a decade, NAI has gathered best practices by each industry specialty, codified these processes in our proprietary Strategic Transaction Administration and Reporting System (STARS™) and trained our professionals using this global standard. . Whether it’s one market, 10 markets or 100, our proprietary transaction management system, REALTrac™ Online, helps create a responsive chain of command, delivering the highest quality services to clients and facilitating collaboration among our team. Gerald C. Finn, who had long been active in real estate development throughout the Eastern seaboard, incorporated New America Network, Inc. in 1978. His vision was to establish a nationwide organization of leading, independent commercial real estate brokerage companies to provide an entirely new level of service to the commercial and institutional real estate markets. Gerald Finn’s vision was realized as New America Network, Inc. pioneered a national corporate real estate practice and grew to become the largest commercial real estate network in the United States.
NAI Global Corporate Overview In 1995, Jeff Finn was named President and COO while Gerald maintained the position of Chairman and CEO. In1997, the company embarked on an aggressive expansion program changing its name to NAI, launching a global growth initiative and developing the award-winning REALTrac™Online technology platform. In the new millennium, NAI took another important step in our history by embracing a new branding position. As of March 1, 2005, NAI Corporate began doing business officially as NAI Global. This marks a major change in NAI’s mindset and positioning within the marketplace. This change reflects our stature as a globally branded commercial real estate services company – with over 375 offices in 55 countries. NAI’s strategic vision is to provide the global reach clients need through offices in leading markets throughout the world, together with the local knowledge that can only come from independently owned companies in those markets. To this combination of global reach and local knowledge, NAI adds a global management system along with a robust technology infrastructure to deliver consistently excellent service to clients – whether their real estate needs are around the corner or around the world.
NAI Global Real Estate Services
Brokerage and Transaction Services
Leasing Agency/landlord Representation
Tenant Representation Appraisal & Valuation
Corporate Facilities Management
Advisory & Consulting Services
Global Supply Chain & Logistics
NAI Global Covers the World Over 375 offices in 55 countries Associate Office Member Office
2008 Global Competition* * # of offices as of August 1 st , 2008
What Is A Managed Network?
NAI Global Corporate Management Organizational Structure Gerald Finn Chairman Jeffrey Finn President and CEO David Blanchard EVP, North America Edward Finn EVP, General Counsel Mark Klionsky SVP, Marketing Shawn Stumbaugh SVP, Information Systems Shared Services Global Services Margaret Smith SVP, Finance, Controller Bobbi Jean Formosa EVP, Operations James Garrett SVP, Network Operations David Perry VP, Europe (Israel & S. Africa) Business Development David Solomon President & CEO, NAI ReStore Ted Parcel EVP, Corporate Services Rick Kimball EVP, Strategic Partnerships Rick Leighton VP, Corporate Services Kim Kocur VP, Corporate Services Catherine Howard VP, Corporate Services Rhyne Brown SVP, Client Development Paul Reitz VP, Investment Services George Anderson VP, Market Analytics Warren Bailey VP, Corporate Technology Patricia Faulkner VP, Client Development Linda Batistelli VP, Client Services
NAI Global Representative Clients HAYWORTH
NAI Global Long-Term Relationships Valuation of Latin America Portfolio; Disposition of Assets in Puerto Rico, Turkey and India Retail Locations, Warehouse/Distribution $165 Million Sale of HQ, Arlington, VA; Initial Sale of over $300 Million in Assets & Leasehold Savings in Excess of $150 Million 18 Years of Continuous Service; Preferred Provider Airport / City Locations $80 Million 20 Years of Continuous Service Exclusive National Site / Branch Acquisitions 12 Years of Continuous Service; $520 Million of Projects Completed 10 Years of Continuous Service 100 assignments completed $27 Million 16 Auctions Completed $20 Million 18 Years of Continuous Service; 200 Transactions Completed Acquisitions and Dispositions throughout the U.S. 9 Years of Continuous Service; $170 Million in Services and Transactions Completed
CLAS™ Portfolio Management REALTrac™ Online Transaction Management STARS™ Process Tools and Templates Our award-winning transaction management system, with integrated CRM and e-marketing tools Cutting-edge portfolio and lease administration tools. STARS™ is a best-practices service delivery platform developed based upon input from NAI professionals across all major disciplines. Award-Winning Technology Tools
Award-Winning Technology Tools Treesoft™ – Financial Analysis Software NAI Members have access to treeSoft ™, an industry-leading software program that allows quick comparison of multiple lease scenarios from a financial perspective for the client. E-Offerings NAI’s proprietary E-Offerings technology, together with our global database of investors, helps minimize time on market and maximize investor return at time of sale.
NAI GLOBAL FLORIDA REGION
NAI Global Florida Region Our Services
Financial / Investment
Leasing / Agency
Valuation and Advisory
West Palm Beach
Auction/Accelerated Marketing Programs
Build to Suit/Development
Location Benefits/Relocation Studies
Property Valuation/Tax Appeal
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NAICJ Transaction Process Illustrations
Corporate Services State-of-the-Art Process Integration Closing