[Solved] Business & Finance – Marketing Assignment: Understanding, Evaluating, and Drafting Commercial Real Estate Agreements

Assignment Prompt & Instructions

Please see the attached for instructions. There a 3 submission forms. Thank you! – ## MyBusinessName.docx – ## Intructions.docx – ## RealEstateSalesCaseStudy08041.pdf – Contract_of_Sale_of_Commercail_Property.docx – TripleNet.docx – CommercialLeaseAgreement.docx **## MyBusinessName.docx** 1 2 Klyesium Name Institution Course Date **Klyesium: A Culinary Odyssey** To begin with, planning a dream restaurant is the most inspiring journey referring to building a name that both expresses an innovative concept and draws customers in (Ehrman, 2021). According to Sally’s instructions and after careful thought, the appropriated one-word chosen restaurant name is thus “Klyesium.” **Unique Qualities and Driving Customer Base** The word is a “Klyesium” which is immediately noticeable name since its outstands owing to the fact that it is rather specific in use; therefore, there is an air of mystery and privilege surrounding it. The mere mention of the word ‘steakhouse’ has an alluring effect, as it conjures up images of a rather superb eating experience that goes beyond run-of-the mill dining. The uniqueness of the name is bound to create excitement and interest in booking customers who would be thrilled with an opportunity to taste heavenly delicacies, either from their preferred location or ones taken especially for them (Ehrman, 2021). **Alignment with Sally's Vision** The Chosen name matches perfectly with Sally’s vision of high-quality, posh fine dining restaurant complete with a trendy yet original outlook. The word Klyesium implies the sought heaven of complete happiness and perfection, echoing this description’s suggestion involving a high class, exotic menu that Sally has in mind. The name resonates with the notion of an extraordinary and heavenly culinary experience, establishing a connection with the restaurant's ambiance and the exquisite dishes Sally is meticulously preparing (Gallo, 2022). **Establishing Identity** The names which are traditionally selected from nature or derived from a holistic description do not appeal the managers of any pharmacy of in this case restaurant. In their quest to have unique type of identity, they decide to rename it Klyesium. The name suggests a place of comfortable excellence and enjoyable things which makes the juxtaposition unique from its competitors. The name helps in avoiding words and phrases that are generally used, which is a positive contribution towards creating an effective brand identity as this industry is quite competitive by using culinary names. **Evoking Image and Character for Lasting Recognition** The name that is associated with luxuriance, elegance and also the feeling of being near divinity by its very nature is Klyesium. It stimulates a character for the restaurant that represents quality and exclusivity two cornerstones of longstanding fame. Aside from the blend of sounds harmonized in the name, the words leave a lasting mark on patrons and solidify its position as one of such always pleasant to spend time (Gallo, 2022). To conclude, ‘Klyesium’ does not only mean a name but it is an emblem of Sally and your blended ideas for our ultimate food haven that challenges the trivial The particular name, which this Sally’s restaurant has chosen is not only in accordance with her desires but also it helps to create some kind of its unique identity, evokes illusive picture and gives a promise about the long-term renown among sophisticated customers searching for eccentric gastronomical experience. “Klyesium: Following the publication, “A Culinary Odyssey”, delights and favors for all food lovers and endorsers of Michelin Food would be to explore this destination in graciousness. References Ehrman, B. D. (2021). _Heaven and hell: A history of the afterlife_. Simon and Schuster. Gallo, C. (2022). _The Bezos Blueprint: Communication Secrets that Power Amazon's Success_. Pan Macmillan. **## Intructions.docx** 5Contracts and Commercial Property Real Estate Agreements 5.3 – Assignment: Understanding, Evaluating, and Drafting Commercial Real Estate Agreements Please read through all sections before proceeding to the next page, and refer back whenever necessary. · [Case Study – Land Ho!](https://erau.instructure.com/courses/167557/assignments/3344719?module_item_id=10212003) · [Assignment](https://erau.instructure.com/courses/167557/assignments/3344719?module_item_id=10212003) · [Submit](https://erau.instructure.com/courses/167557/assignments/3344719?module_item_id=10212003) It's 3 A.M., and Sally is Face-Timing you. Fortunately, you were up slugging away at your coursework and tying up some loose ends for the project. After receiving the [Marketing Study for the property in Boca Raton (PDF),](https://erau.instructure.com/courses/167557/files/36617928?wrap=1) [Download Marketing Study for the property in Boca Raton (PDF),](https://erau.instructure.com/courses/167557/files/36617928/download?download_frd=1) Sally asked if you could review the market study immediately because it looks like a hot property and will probably not be on the market for long. She instantly jumps in, saying, "Look! I found a whole bunch of stuff that we need to review. Sally specifies that she has read the material and has a better idea of analyzing the ROI. The luxury building is in a great location and has had an extensive renovation. The current restaurant tenant operates 24 hours a day, seven days a week. Sally points out that it's a free-standing building with a total of 7,615 square feet and 6,000 square feet has air conditioning. Also, there is a 1,615 square foot outdoor covered patio and deck for outside dining. The property can seat 259 inside and outside, 93 parking spaces, and covered patio seating with a full bar and wine case setup. There is even a dining room kitchen with a hood, a separate chef's kitchen with a hood, and the mainline kitchen with an on-demand hood. The hood is critical because it contains fire suppressant equipment. Sally states that the three kitchen locations are an added benefit that will permit high-end customers special catering for her inner circle dining parties on the dining room floor. Having the hoods already installed saves a lot of money and may avoid major inspections by the city. If the fire hoods are not functioning correctly, the startup costs could skyrocket and delay the opening. Sally wants us to add that issue to the list to discuss with the owner. She also suggests we determine the effect of the current tenant deciding to hold over beyond the term. The broker was, after all, not too definite about the move-out date, and he only stated that the building was under lease by the restaurant tenant until July or August of this year. She also points out that the market study specifies that the purchase price is $5,995,000. Sally states that there is also an option to lease the building under an NNN lease arrangement at $35,000 monthly rent plus $4,200 in property taxes monthly. Sally wonders out loud whether there was a potential for incurring other charges. Please proceed to the **Assignment** section. The broker provides you with three possible agreements: Contract for Sale of Commercial Property, Commercial Lease Agreement, and Triple Net (NNN) Lease Agreement. Analyze the terms and conditions of each agreement and their impact on your business plans. Redraft clauses based on changes you would like to make to your business plan's long-term goals; fill in missing or blank sections and information; change any term or add clauses to match your goals. Make a list of the issues to discuss with the broker to negotiate favorable terms in the revisions you suggest. You will need this list and any changes for future assignments. Review and complete the following agreements using all of the facts available and your understanding of the three transactions' effect on your plans as presented in the case study. Complete all documents using the facts from the case study. Make all changes using a contrasting **blue font**. · [Contract of Sale of Commercial Property (DOCX)](https://erau.instructure.com/courses/167557/files/36616767?wrap=1) [Download Contract of Sale of Commercial Property (DOCX)](https://erau.instructure.com/courses/167557/files/36616767/download?download_frd=1) · [Commercial Lease Agreement (DOCX)](https://erau.instructure.com/courses/167557/files/36617608?wrap=1) [Download Commercial Lease Agreement (DOCX)](https://erau.instructure.com/courses/167557/files/36617608/download?download_frd=1) · [Triple Net (NNN) Lease (DOCX)](https://erau.instructure.com/courses/167557/files/36617289?wrap=1) [Download Triple Net (NNN) Lease (DOCX)](https://erau.instructure.com/courses/167557/files/36617289/download?download_frd=1) Your research has produced the following information to analyze options in property transactions. Review the following for information and general references: · [Considerations for the Terms Needed in the Sale of a Commercial Property (Baker Donelson)Links to an external site.](https://www.bakerdonelson.com/commercial-real-estate-sellers-ten-additions-to-a-buyers-contract) · [The Purchase and Sale Agreement (Clark Wilson)Links to an external site.](https://www.cwilson.com/agreement/) – addresses various contract paragraphs and types of revisions available. · [Digital Commons Contract Tips (University of Tulsa)Links to an external site.](https://digitalcommons.law.utulsa.edu/cgi/viewcontent.cgi?article=1264&context=fac_pub) Complete all documents using the facts from the case study. Make all changes using a contrasting **blue font**. Please proceed to the **Submit** section. Upload the following documents: · **Contract of Sale of Commercial Property** · **Commercial Lease Agreement** · **Triple Net NNN Lease** **## RealEstateSalesCaseStudy08041.pdf** REAL ESTATE SALE CASE STUDY Background SALES INFORMATION Property Location: 1424-1450 N FEDERAL HWY, BOCA RATON, FL 33432 Price $5,990,000 Sale Type Investment Cap Rate 7.01% Sale Conditions Lease Option Property Type Retail Property Sub-type Restaurant Less  General Retail Freestanding  General Retail Storefront Retail/Office  Office Medical Building Class C Lot Size 1.36 AC Gross Leasable Area 7,615 SF No. Stories 1 Year Built 1970 Tenancy Single Parking Ratio 10/1,000 SF Zoning Description B4 APN / Parcel ID 06-43-47-20-15-001- 0011 Date Created 5/29/2019 ID#: 16181065 Last Updated: 6/18/2019 DESCRIPTION Total 7615 Sq. Feet 6,000 Square foot Under Air, with a 1,615 square foot Outdoor Covered Patio and deck for outside dining. HIGHLIGHTS  Local 24-Hour always open 30 year old diner chain currently in three locations  Walking distance to Downtown and Mizner Park and the Museum. Additionally, the IPIC Theater is just within half mile  Property can seat 259 combined inside and outside, 93 Parking spaces and a covered patio seating with a full bar and wine case set up  Located on the FAU (Florida Atlantic University) corridor on Federal Hwy just north of Glades Road with a B-4 Zoning  Current tenant in building is relocating by August 31st, 2019 meaning this is a wonderful owner/user OR investment opportunity  Strategically positioned along heavily trafficked North Federal Highway with a Vehicle Per Day count of over 34,000 cars SALE NOTES Free-Standing Restaurant Building, For SALE at $5,995,000 OR NNN Lease for $35,000 monthly, plus $4,200 in property taxes monthly Current Tenant Relocating by July 2019 or August 2019. The property is offered for Sale or Lease By the Owner. Half A Mile North of Mizner Park, Boca Downtown Museum, and IPIC Theater. Free Standing Luxury Building recently renovated in 2013, In and Out. The current tenant operates 7 Days a Week, 24 Hours. Tenant scheduled to vacate in July or August of this year, per request. Exterior covered Patio and partially uncovered with Fire torches and Water Fountain. Full Bar and Wine Cabinet Display area. Dining room Kitchen with Hood, separate Chef's Kitchen with Hood and Main Line Kitchen with On Demand Hood. Brokers Representation of Property owners position 1) The Owners position: What do they want? Why? The Seller would like to capitalize on his most profitable real estate holdings. Selling the property at maximum return is the Owner's ultimate goal, and she realizes that the age of the building is eventually going to present problems in any future sale, even though the building was recently completely renovated. The building owners' interest is to sell, preferably within the next two months, before or on the date of the current lease terminates. If not, the Owner's carrying cost increases since the building may go vacant until she identifies a new leaseholder. A sale solves all of the Owner's issues because the price includes the Amortization of the building renovation costs in the asking price, including a six-month lease recovery premium in the event the building was to remain vacant until a sale. The Broker has stated that that the Owner would consider a lease arrangement either a straight term or a Triple Net lease. There is also the option for any variation such as a Net or Net-Net Lease with terms such as taxes, utilities, Amortization of the renovation costs, and rent-plus percentage based on Gross income from the Restaurant. The property owner believes that the property fits well within Sally's plan to establish a new Restaurant. Great location, floor setup, lots of parking. The current tenant has had an exceptional long-term reputation in the area, and the customer base should help establish and carry over to the new Restaurant. The though is that If the purchase price is too top-heavy, maybe they will consider the NNN Lease options. There may be some room for negotiation on the purchase price, but that depends on Sally's costs model. There may be a slight margin based on the carryover of the tenant or discounting the lease price if Sally assumes the final lease period any holdover pass the lease period. Also, the cleanout costs are high, and maybe if there was an assumption of that responsibility, there could be adjustments made. An assumption probably would make sense if Sally wants to get in early to renovate to the floor plan and set up the kitchen and dining floor and start ordering and stocking foodstuff. The Owner believes that his walk-away alternative is that he will not go over a 20% discount on all pricing terms. He is willing to carry the property until a buyer comes along within, at least the end of the current tenant lease expires. The Owner will discount the price of the sale by as much 30% net thirty-days if offered a cash buyout and not have to wait for financing to take place. The Owner realizes that the best solutions for both parties would be to reach a reasonable price reduction with incentives to close early and turn lease period revenue over to the buyer. FINANCIAL SUMMARY (PRO FORMA – 2019) Gross Rental Income Annual $420,000 Annual Per SF 55.15 Other Income Annual – Annual Per SF – Vacancy Loss Annual – Annual Per SF – Effective Gross Income Annual $420,000 Effective Gross Income Annual Per SF 55.15 Net Operating Income Annual – Annual Per SF – DEMOGRAPHICS [1 Mile \/] HOUSEHOLD INCOME $0K – $35K 32% $35K – $75K 34.4% $75K – $100K 10.2% $100K+23.4% Income Thousand $0K – $35K 1,775 $35K – $75K 1,910 $75K – $100K 564 $100K+ 1,299 $96,376 Average AGE DISTRIBUTION 0 – 1920.1%20 – 2913.6%30 – 3914.8%40 – 4912.4%50 – 6420.8%65+18.4% Age Year 0 – 19 2,869 20 – 29 1,934 30 – 39 2,113 40 – 49 1,763 50 – 64 2,962 65+ 2,618 41.4 Average TRADE AREAS 1 mi 3 mi 5 mi [15 Min Drive \/] Total Population 1 Mile 14,259 3 Mile 74,783 5 Mile 177,827 2010 Population 1 Mile 9,942 3 Mile 57,482 5 Mile 153,525 2024 Population 1 Mile 15,710 3 Mile 81,307 5 Mile 190,006 Employees 1 Mile 15,760 3 Mile 84,516 5 Mile 171,639 Total Businesses 1 Mile 2,191 3 Mile 8,493 5 Mile 15,527 Average Household Income 1 Mile $96,376 3 Mile $110,391 5 Mile $98,696 Median Household Income 1 Mile $59,231 3 Mile $74,611 5 Mile $65,969 Total Consumer Spending 1 Mile $163.57M 3 Mile $936.46M 5 Mile $2.2B Median Age 1 Mile 41.2 3 Mile 47.1 5 Mile 48.7 Households 1 Mile 6,325 3 Mile 32,447 5 Mile 81,325 Percent College Degree or Above 1 Mile 25% 3 Mile 27% 5 Mile 26% Average Housing Unit Value 1 Mile $498,302 3 Mile $547,651 5 Mile $460,971 MAJOR TENANT INFORMATION FLASHBACK DINER SF Occupied 7,615 Lease End Date July 2019 AMENITIES  Signage  Monument Signage TRAFFIC Collection Street: N Federal Hwy Cross Street NE 15th Ter, SW Traffic Vol 34,622 Year 2018 Distance 0.14 mi Collection Street: NE 5th Ave Cross Street NE 16th St, N Traffic Vol 6,578 Year 2018 Distance 0.18 mi Collection Street: Glades Rd Cross Street N Federal Hwy, E Traffic Vol 22,699 Year 2018 Distance 0.24 mi Collection Street: Glades Rd Cross Street N Federal Hwy, E Traffic Vol 22,744 Year 2018 Distance 0.28 mi Collection Street: NE 20th St Cross Street NE 4th Way, NE Traffic Vol 15,308 Year 2018 Distance 0.28 mi PUBLIC TRANSPORTATION COMMUTER RAIL Boca Raton Commuter Rail (Tri-County Commuter) Drive 9 min Distance 4.1 mi Deerfield Beach Commuter Rail (Tri-County Commuter) Drive 13 min Distance 5.5 mi AIRPORT Palm Beach International Airport Drive 37 min Distance 25.7 mi Fort Lauderdale–Hollywood International Airport Drive 38 min Distance 26.7 mi WALK SCORE ® 85 Very Walkable TRANSIT SCORE ® **Contract_of_Sale_of_Commercail_Property.docx** This file is too large to display. [View in new window](https://www.sweetstudy.com/files/contract-of-sale-of-commercail-property-docx-9753933) **TripleNet.docx** This file is too large to display. [View in new window](https://www.sweetstudy.com/files/triplenet-docx) **CommercialLeaseAgreement.docx** This file is too large to display. [View in new window](https://www.sweetstudy.com/files/commercialleaseagreement-docx-9753939) **CommercialLeaseAgreement.docx** This file is too large to display. [View in new window](https://www.sweetstudy.com/files/commercialleaseagreement-docx-9753939) **## MyBusinessName.docx** 1 2 Klyesium Name Institution Course Date **Klyesium: A Culinary Odyssey** To begin with, planning a dream restaurant is the most inspiring journey referring to building a name that both expresses an innovative concept and draws customers in (Ehrman, 2021). According to Sally’s instructions and after careful thought, the appropriated one-word chosen restaurant name is thus “Klyesium.” **Unique Qualities and Driving Customer Base** The word is a “Klyesium” which is immediately noticeable name since its outstands owing to the fact that it is rather specific in use; therefore, there is an air of mystery and privilege surrounding it. The mere mention of the word ‘steakhouse’ has an alluring effect, as it conjures up images of a rather superb eating experience that goes beyond run-of-the mill dining. The uniqueness of the name is bound to create excitement and interest in booking customers who would be thrilled with an opportunity to taste heavenly delicacies, either from their preferred location or ones taken especially for them (Ehrman, 2021). **Alignment with Sally's Vision** The Chosen name matches perfectly with Sally’s vision of high-quality, posh fine dining restaurant complete with a trendy yet original outlook. The word Klyesium implies the sought heaven of complete happiness and perfection, echoing this description’s suggestion involving a high class, exotic menu that Sally has in mind. The name resonates with the notion of an extraordinary and heavenly culinary experience, establishing a connection with the restaurant's ambiance and the exquisite dishes Sally is meticulously preparing (Gallo, 2022). **Establishing Identity** The names which are traditionally selected from nature or derived from a holistic description do not appeal the managers of any pharmacy of in this case restaurant. In their quest to have unique type of identity, they decide to rename it Klyesium. The name suggests a place of comfortable excellence and enjoyable things which makes the juxtaposition unique from its competitors. The name helps in avoiding words and phrases that are generally used, which is a positive contribution towards creating an effective brand identity as this industry is quite competitive by using culinary names. **Evoking Image and Character for Lasting Recognition** The name that is associated with luxuriance, elegance and also the feeling of being near divinity by its very nature is Klyesium. It stimulates a character for the restaurant that represents quality and exclusivity two cornerstones of longstanding fame. Aside from the blend of sounds harmonized in the name, the words leave a lasting mark on patrons and solidify its position as one of such always pleasant to spend time (Gallo, 2022). To conclude, ‘Klyesium’ does not only mean a name but it is an emblem of Sally and your blended ideas for our ultimate food haven that challenges the trivial The particular name, which this Sally’s restaurant has chosen is not only in accordance with her desires but also it helps to create some kind of its unique identity, evokes illusive picture and gives a promise about the long-term renown among sophisticated customers searching for eccentric gastronomical experience. “Klyesium: Following the publication, “A Culinary Odyssey”, delights and favors for all food lovers and endorsers of Michelin Food would be to explore this destination in graciousness. References Ehrman, B. D. (2021). _Heaven and hell: A history of the afterlife_. Simon and Schuster. Gallo, C. (2022). _The Bezos Blueprint: Communication Secrets that Power Amazon's Success_. Pan Macmillan. **## Intructions.docx** 5Contracts and Commercial Property Real Estate Agreements 5.3 – Assignment: Understanding, Evaluating, and Drafting Commercial Real Estate Agreements Please read through all sections before proceeding to the next page, and refer back whenever necessary. · [Case Study – Land Ho!](https://erau.instructure.com/courses/167557/assignments/3344719?module_item_id=10212003) · [Assignment](https://erau.instructure.com/courses/167557/assignments/3344719?module_item_id=10212003) · [Submit](https://erau.instructure.com/courses/167557/assignments/3344719?module_item_id=10212003) It's 3 A.M., and Sally is Face-Timing you. Fortunately, you were up slugging away at your coursework and tying up some loose ends for the project. After receiving the [Marketing Study for the property in Boca Raton (PDF),](https://erau.instructure.com/courses/167557/files/36617928?wrap=1) [Download Marketing Study for the property in Boca Raton (PDF),](https://erau.instructure.com/courses/167557/files/36617928/download?download_frd=1) Sally asked if you could review the market study immediately because it looks like a hot property and will probably not be on the market for long. She instantly jumps in, saying, "Look! I found a whole bunch of stuff that we need to review. Sally specifies that she has read the material and has a better idea of analyzing the ROI. The luxury building is in a great location and has had an extensive renovation. The current restaurant tenant operates 24 hours a day, seven days a week. Sally points out that it's a free-standing building with a total of 7,615 square feet and 6,000 square feet has air conditioning. Also, there is a 1,615 square foot outdoor covered patio and deck for outside dining. The property can seat 259 inside and outside, 93 parking spaces, and covered patio seating with a full bar and wine case setup. There is even a dining room kitchen with a hood, a separate chef's kitchen with a hood, and the mainline kitchen with an on-demand hood. The hood is critical because it contains fire suppressant equipment. Sally states that the three kitchen locations are an added benefit that will permit high-end customers special catering for her inner circle dining parties on the dining room floor. Having the hoods already installed saves a lot of money and may avoid major inspections by the city. If the fire hoods are not functioning correctly, the startup costs could skyrocket and delay the opening. Sally wants us to add that issue to the list to discuss with the owner. She also suggests we determine the effect of the current tenant deciding to hold over beyond the term. The broker was, after all, not too definite about the move-out date, and he only stated that the building was under lease by the restaurant tenant until July or August of this year. She also points out that the market study specifies that the purchase price is $5,995,000. Sally states that there is also an option to lease the building under an NNN lease arrangement at $35,000 monthly rent plus $4,200 in property taxes monthly. Sally wonders out loud whether there was a potential for incurring other charges. Please proceed to the **Assignment** section. The broker provides you with three possible agreements: Contract for Sale of Commercial Property, Commercial Lease Agreement, and Triple Net (NNN) Lease Agreement. Analyze the terms and conditions of each agreement and their impact on your business plans. Redraft clauses based on changes you would like to make to your business plan's long-term goals; fill in missing or blank sections and information; change any term or add clauses to match your goals. Make a list of the issues to discuss with the broker to negotiate favorable terms in the revisions you suggest. You will need this list and any changes for future assignments. Review and complete the following agreements using all of the facts available and your understanding of the three transactions' effect on your plans as presented in the case study. Complete all documents using the facts from the case study. Make all changes using a contrasting **blue font**. · [Contract of Sale of Commercial Property (DOCX)](https://erau.instructure.com/courses/167557/files/36616767?wrap=1) [Download Contract of Sale of Commercial Property (DOCX)](https://erau.instructure.com/courses/167557/files/36616767/download?download_frd=1) · [Commercial Lease Agreement (DOCX)](https://erau.instructure.com/courses/167557/files/36617608?wrap=1) [Download Commercial Lease Agreement (DOCX)](https://erau.instructure.com/courses/167557/files/36617608/download?download_frd=1) · [Triple Net (NNN) Lease (DOCX)](https://erau.instructure.com/courses/167557/files/36617289?wrap=1) [Download Triple Net (NNN) Lease (DOCX)](https://erau.instructure.com/courses/167557/files/36617289/download?download_frd=1) Your research has produced the following information to analyze options in property transactions. Review the following for information and general references: · [Considerations for the Terms Needed in the Sale of a Commercial Property (Baker Donelson)Links to an external site.](https://www.bakerdonelson.com/commercial-real-estate-sellers-ten-additions-to-a-buyers-contract) · [The Purchase and Sale Agreement (Clark Wilson)Links to an external site.](https://www.cwilson.com/agreement/) – addresses various contract paragraphs and types of revisions available. · [Digital Commons Contract Tips (University of Tulsa)Links to an external site.](https://digitalcommons.law.utulsa.edu/cgi/viewcontent.cgi?article=1264&context=fac_pub) Complete all documents using the facts from the case study. Make all changes using a contrasting **blue font**. Please proceed to the **Submit** section. Upload the following documents: · **Contract of Sale of Commercial Property** · **Commercial Lease Agreement** · **Triple Net NNN Lease** **## RealEstateSalesCaseStudy08041.pdf** REAL ESTATE SALE CASE STUDY Background SALES INFORMATION Property Location: 1424-1450 N FEDERAL HWY, BOCA RATON, FL 33432 Price $5,990,000 Sale Type Investment Cap Rate 7.01% Sale Conditions Lease Option Property Type Retail Property Sub-type Restaurant Less  General Retail Freestanding  General Retail Storefront Retail/Office  Office Medical Building Class C Lot Size 1.36 AC Gross Leasable Area 7,615 SF No. Stories 1 Year Built 1970 Tenancy Single Parking Ratio 10/1,000 SF Zoning Description B4 APN / Parcel ID 06-43-47-20-15-001- 0011 Date Created 5/29/2019 ID#: 16181065 Last Updated: 6/18/2019 DESCRIPTION Total 7615 Sq. Feet 6,000 Square foot Under Air, with a 1,615 square foot Outdoor Covered Patio and deck for outside dining. HIGHLIGHTS  Local 24-Hour always open 30 year old diner chain currently in three locations  Walking distance to Downtown and Mizner Park and the Museum. Additionally, the IPIC Theater is just within half mile  Property can seat 259 combined inside and outside, 93 Parking spaces and a covered patio seating with a full bar and wine case set up  Located on the FAU (Florida Atlantic University) corridor on Federal Hwy just north of Glades Road with a B-4 Zoning  Current tenant in building is relocating by August 31st, 2019 meaning this is a wonderful owner/user OR investment opportunity  Strategically positioned along heavily trafficked North Federal Highway with a Vehicle Per Day count of over 34,000 cars SALE NOTES Free-Standing Restaurant Building, For SALE at $5,995,000 OR NNN Lease for $35,000 monthly, plus $4,200 in property taxes monthly Current Tenant Relocating by July 2019 or August 2019. The property is offered for Sale or Lease By the Owner. Half A Mile North of Mizner Park, Boca Downtown Museum, and IPIC Theater. Free Standing Luxury Building recently renovated in 2013, In and Out. The current tenant operates 7 Days a Week, 24 Hours. Tenant scheduled to vacate in July or August of this year, per request. Exterior covered Patio and partially uncovered with Fire torches and Water Fountain. Full Bar and Wine Cabinet Display area. Dining room Kitchen with Hood, separate Chef's Kitchen with Hood and Main Line Kitchen with On Demand Hood. Brokers Representation of Property owners position 1) The Owners position: What do they want? Why? The Seller would like to capitalize on his most profitable real estate holdings. Selling the property at maximum return is the Owner's ultimate goal, and she realizes that the age of the building is eventually going to present problems in any future sale, even though the building was recently completely renovated. The building owners' interest is to sell, preferably within the next two months, before or on the date of the current lease terminates. If not, the Owner's carrying cost increases since the building may go vacant until she identifies a new leaseholder. A sale solves all of the Owner's issues because the price includes the Amortization of the building renovation costs in the asking price, including a six-month lease recovery premium in the event the building was to remain vacant until a sale. The Broker has stated that that the Owner would consider a lease arrangement either a straight term or a Triple Net lease. There is also the option for any variation such as a Net or Net-Net Lease with terms such as taxes, utilities, Amortization of the renovation costs, and rent-plus percentage based on Gross income from the Restaurant. The property owner believes that the property fits well within Sally's plan to establish a new Restaurant. Great location, floor setup, lots of parking. The current tenant has had an exceptional long-term reputation in the area, and the customer base should help establish and carry over to the new Restaurant. The though is that If the purchase price is too top-heavy, maybe they will consider the NNN Lease options. There may be some room for negotiation on the purchase price, but that depends on Sally's costs model. There may be a slight margin based on the carryover of the tenant or discounting the lease price if Sally assumes the final lease period any holdover pass the lease period. Also, the cleanout costs are high, and maybe if there was an assumption of that responsibility, there could be adjustments made. An assumption probably would make sense if Sally wants to get in early to renovate to the floor plan and set up the kitchen and dining floor and start ordering and stocking foodstuff. The Owner believes that his walk-away alternative is that he will not go over a 20% discount on all pricing terms. He is willing to carry the property until a buyer comes along within, at least the end of the current tenant lease expires. The Owner will discount the price of the sale by as much 30% net thirty-days if offered a cash buyout and not have to wait for financing to take place. The Owner realizes that the best solutions for both parties would be to reach a reasonable price reduction with incentives to close early and turn lease period revenue over to the buyer. FINANCIAL SUMMARY (PRO FORMA – 2019) Gross Rental Income Annual $420,000 Annual Per SF 55.15 Other Income Annual – Annual Per SF – Vacancy Loss Annual – Annual Per SF – Effective Gross Income Annual $420,000 Effective Gross Income Annual Per SF 55.15 Net Operating Income Annual – Annual Per SF – DEMOGRAPHICS [1 Mile \/] HOUSEHOLD INCOME $0K – $35K 32% $35K – $75K 34.4% $75K – $100K 10.2% $100K+23.4% Income Thousand $0K – $35K 1,775 $35K – $75K 1,910 $75K – $100K 564 $100K+ 1,299 $96,376 Average AGE DISTRIBUTION 0 – 1920.1%20 – 2913.6%30 – 3914.8%40 – 4912.4%50 – 6420.8%65+18.4% Age Year 0 – 19 2,869 20 – 29 1,934 30 – 39 2,113 40 – 49 1,763 50 – 64 2,962 65+ 2,618 41.4 Average TRADE AREAS 1 mi 3 mi 5 mi [15 Min Drive \/] Total Population 1 Mile 14,259 3 Mile 74,783 5 Mile 177,827 2010 Population 1 Mile 9,942 3 Mile 57,482 5 Mile 153,525 2024 Population 1 Mile 15,710 3 Mile 81,307 5 Mile 190,006 Employees 1 Mile 15,760 3 Mile 84,516 5 Mile 171,639 Total Businesses 1 Mile 2,191 3 Mile 8,493 5 Mile 15,527 Average Household Income 1 Mile $96,376 3 Mile $110,391 5 Mile $98,696 Median Household Income 1 Mile $59,231 3 Mile $74,611 5 Mile $65,969 Total Consumer Spending 1 Mile $163.57M 3 Mile $936.46M 5 Mile $2.2B Median Age 1 Mile 41.2 3 Mile 47.1 5 Mile 48.7 Households 1 Mile 6,325 3 Mile 32,447 5 Mile 81,325 Percent College Degree or Above 1 Mile 25% 3 Mile 27% 5 Mile 26% Average Housing Unit Value 1 Mile $498,302 3 Mile $547,651 5 Mile $460,971 MAJOR TENANT INFORMATION FLASHBACK DINER SF Occupied 7,615 Lease End Date July 2019 AMENITIES  Signage  Monument Signage TRAFFIC Collection Street: N Federal Hwy Cross Street NE 15th Ter, SW Traffic Vol 34,622 Year 2018 Distance 0.14 mi Collection Street: NE 5th Ave Cross Street NE 16th St, N Traffic Vol 6,578 Year 2018 Distance 0.18 mi Collection Street: Glades Rd Cross Street N Federal Hwy, E Traffic Vol 22,699 Year 2018 Distance 0.24 mi Collection Street: Glades Rd Cross Street N Federal Hwy, E Traffic Vol 22,744 Year 2018 Distance 0.28 mi Collection Street: NE 20th St Cross Street NE 4th Way, NE Traffic Vol 15,308 Year 2018 Distance 0.28 mi PUBLIC TRANSPORTATION COMMUTER RAIL Boca Raton Commuter Rail (Tri-County Commuter) Drive 9 min Distance 4.1 mi Deerfield Beach Commuter Rail (Tri-County Commuter) Drive 13 min Distance 5.5 mi AIRPORT Palm Beach International Airport Drive 37 min Distance 25.7 mi Fort Lauderdale–Hollywood International Airport Drive 38 min Distance 26.7 mi WALK SCORE ® 85 Very Walkable TRANSIT SCORE ® **Contract_of_Sale_of_Commercail_Property.docx** This file is too large to display. [View in new window](https://www.sweetstudy.com/files/contract-of-sale-of-commercail-property-docx-9753933) **TripleNet.docx** This file is too large to display. [View in new window](https://www.sweetstudy.com/files/triplenet-docx) **CommercialLeaseAgreement.docx** This file is too large to display. [View in new window](https://www.sweetstudy.com/files/commercialleaseagreement-docx-9753939) **## MyBusinessName.docx** 1 2 Klyesium Name Institution Course Date **Klyesium: A Culinary Odyssey** To begin with, planning a dream restaurant is the most inspiring journey referring to building a name that both expresses an innovative concept and draws customers in (Ehrman, 2021). According to Sally’s instructions and after careful thought, the appropriated one-word chosen restaurant name is thus “Klyesium.” **Unique Qualities and Driving Customer Base** The word is a “Klyesium” which is immediately noticeable name since its outstands owing to the fact that it is rather specific in use; therefore, there is an air of mystery and privilege surrounding it. The mere mention of the word ‘steakhouse’ has an alluring effect, as it conjures up images of a rather superb eating experience that goes beyond run-of-the mill dining. The uniqueness of the name is bound to create excitement and interest in booking customers who would be thrilled with an opportunity to taste heavenly delicacies, either from their preferred location or ones taken especially for them (Ehrman, 2021). **Alignment with Sally's Vision** The Chosen name matches perfectly with Sally’s vision of high-quality, posh fine dining restaurant complete with a trendy yet original outlook. The word Klyesium implies the sought heaven of complete happiness and perfection, echoing this description’s suggestion involving a high class, exotic menu that Sally has in mind. The name resonates with the notion of an extraordinary and heavenly culinary experience, establishing a connection with the restaurant's ambiance and the exquisite dishes Sally is meticulously preparing (Gallo, 2022). **Establishing Identity** The names which are traditionally selected from nature or derived from a holistic description do not appeal the managers of any pharmacy of in this case restaurant. In their quest to have unique type of identity, they decide to rename it Klyesium. The name suggests a place of comfortable excellence and enjoyable things which makes the juxtaposition unique from its competitors. The name helps in avoiding words and phrases that are generally used, which is a positive contribution towards creating an effective brand identity as this industry is quite competitive by using culinary names. **Evoking Image and Character for Lasting Recognition** The name that is associated with luxuriance, elegance and also the feeling of being near divinity by its very nature is Klyesium. It stimulates a character for the restaurant that represents quality and exclusivity two cornerstones of longstanding fame. Aside from the blend of sounds harmonized in the name, the words leave a lasting mark on patrons and solidify its position as one of such always pleasant to spend time (Gallo, 2022). To conclude, ‘Klyesium’ does not only mean a name but it is an emblem of Sally and your blended ideas for our ultimate food haven that challenges the trivial The particular name, which this Sally’s restaurant has chosen is not only in accordance with her desires but also it helps to create some kind of its unique identity, evokes illusive picture and gives a promise about the long-term renown among sophisticated customers searching for eccentric gastronomical experience. “Klyesium: Following the publication, “A Culinary Odyssey”, delights and favors for all food lovers and endorsers of Michelin Food would be to explore this destination in graciousness. References Ehrman, B. D. (2021). _Heaven and hell: A history of the afterlife_. Simon and Schuster. Gallo, C. (2022). _The Bezos Blueprint: Communication Secrets that Power Amazon's Success_. Pan Macmillan. **## Intructions.docx** 5Contracts and Commercial Property Real Estate Agreements 5.3 – Assignment: Understanding, Evaluating, and Drafting Commercial Real Estate Agreements Please read through all sections before proceeding to the next page, and refer back whenever necessary. · [Case Study – Land Ho!](https://erau.instructure.com/courses/167557/assignments/3344719?module_item_id=10212003) · [Assignment](https://erau.instructure.com/courses/167557/assignments/3344719?module_item_id=10212003) · [Submit](https://erau.instructure.com/courses/167557/assignments/3344719?module_item_id=10212003) It's 3 A.M., and Sally is Face-Timing you. Fortunately, you were up slugging away at your coursework and tying up some loose ends for the project. After receiving the [Marketing Study for the property in Boca Raton (PDF),](https://erau.instructure.com/courses/167557/files/36617928?wrap=1) [Download Marketing Study for the property in Boca Raton (PDF),](https://erau.instructure.com/courses/167557/files/36617928/download?download_frd=1) Sally asked if you could review the market study immediately because it looks like a hot property and will probably not be on the market for long. She instantly jumps in, saying, "Look! I found a whole bunch of stuff that we need to review. Sally specifies that she has read the material and has a better idea of analyzing the ROI. The luxury building is in a great location and has had an extensive renovation. The current restaurant tenant operates 24 hours a day, seven days a week. Sally points out that it's a free-standing building with a total of 7,615 square feet and 6,000 square feet has air conditioning. Also, there is a 1,615 square foot outdoor covered patio and deck for outside dining. The property can seat 259 inside and outside, 93 parking spaces, and covered patio seating with a full bar and wine case setup. There is even a dining room kitchen with a hood, a separate chef's kitchen with a hood, and the mainline kitchen with an on-demand hood. The hood is critical because it contains fire suppressant equipment. Sally states that the three kitchen locations are an added benefit that will permit high-end customers special catering for her inner circle dining parties on the dining room floor. Having the hoods already installed saves a lot of money and may avoid major inspections by the city. If the fire hoods are not functioning correctly, the startup costs could skyrocket and delay the opening. Sally wants us to add that issue to the list to discuss with the owner. She also suggests we determine the effect of the current tenant deciding to hold over beyond the term. The broker was, after all, not too definite about the move-out date, and he only stated that the building was under lease by the restaurant tenant until July or August of this year. She also points out that the market study specifies that the purchase price is $5,995,000. Sally states that there is also an option to lease the building under an NNN lease arrangement at $35,000 monthly rent plus $4,200 in property taxes monthly. Sally wonders out loud whether there was a potential for incurring other charges. Please proceed to the **Assignment** section. The broker provides you with three possible agreements: Contract for Sale of Commercial Property, Commercial Lease Agreement, and Triple Net (NNN) Lease Agreement. Analyze the terms and conditions of each agreement and their impact on your business plans. Redraft clauses based on changes you would like to make to your business plan's long-term goals; fill in missing or blank sections and information; change any term or add clauses to match your goals. Make a list of the issues to discuss with the broker to negotiate favorable terms in the revisions you suggest. You will need this list and any changes for future assignments. Review and complete the following agreements using all of the facts available and your understanding of the three transactions' effect on your plans as presented in the case study. Complete all documents using the facts from the case study. Make all changes using a contrasting **blue font**. · [Contract of Sale of Commercial Property (DOCX)](https://erau.instructure.com/courses/167557/files/36616767?wrap=1) [Download Contract of Sale of Commercial Property (DOCX)](https://erau.instructure.com/courses/167557/files/36616767/download?download_frd=1) · [Commercial Lease Agreement (DOCX)](https://erau.instructure.com/courses/167557/files/36617608?wrap=1) [Download Commercial Lease Agreement (DOCX)](https://erau.instructure.com/courses/167557/files/36617608/download?download_frd=1) · [Triple Net (NNN) Lease (DOCX)](https://erau.instructure.com/courses/167557/files/36617289?wrap=1) [Download Triple Net (NNN) Lease (DOCX)](https://erau.instructure.com/courses/167557/files/36617289/download?download_frd=1) Your research has produced the following information to analyze options in property transactions. Review the following for information and general references: · [Considerations for the Terms Needed in the Sale of a Commercial Property (Baker Donelson)Links to an external site.](https://www.bakerdonelson.com/commercial-real-estate-sellers-ten-additions-to-a-buyers-contract) · [The Purchase and Sale Agreement (Clark Wilson)Links to an external site.](https://www.cwilson.com/agreement/) – addresses various contract paragraphs and types of revisions available. · [Digital Commons Contract Tips (University of Tulsa)Links to an external site.](https://digitalcommons.law.utulsa.edu/cgi/viewcontent.cgi?article=1264&context=fac_pub) Complete all documents using the facts from the case study. Make all changes using a contrasting **blue font**. Please proceed to the **Submit** section. Upload the following documents: · **Contract of Sale of Commercial Property** · **Commercial Lease Agreement** · **Triple Net NNN Lease** **## RealEstateSalesCaseStudy08041.pdf** REAL ESTATE SALE CASE STUDY Background SALES INFORMATION Property Location: 1424-1450 N FEDERAL HWY, BOCA RATON, FL 33432 Price $5,990,000 Sale Type Investment Cap Rate 7.01% Sale Conditions Lease Option Property Type Retail Property Sub-type Restaurant Less  General Retail Freestanding  General Retail Storefront Retail/Office  Office Medical Building Class C Lot Size 1.36 AC Gross Leasable Area 7,615 SF No. Stories 1 Year Built 1970 Tenancy Single Parking Ratio 10/1,000 SF Zoning Description B4 APN / Parcel ID 06-43-47-20-15-001- 0011 Date Created 5/29/2019 ID#: 16181065 Last Updated: 6/18/2019 DESCRIPTION Total 7615 Sq. Feet 6,000 Square foot Under Air, with a 1,615 square foot Outdoor Covered Patio and deck for outside dining. HIGHLIGHTS  Local 24-Hour always open 30 year old diner chain currently in three locations  Walking distance to Downtown and Mizner Park and the Museum. Additionally, the IPIC Theater is just within half mile  Property can seat 259 combined inside and outside, 93 Parking spaces and a covered patio seating with a full bar and wine case set up  Located on the FAU (Florida Atlantic University) corridor on Federal Hwy just north of Glades Road with a B-4 Zoning  Current tenant in building is relocating by August 31st, 2019 meaning this is a wonderful owner/user OR investment opportunity  Strategically positioned along heavily trafficked North Federal Highway with a Vehicle Per Day count of over 34,000 cars SALE NOTES Free-Standing Restaurant Building, For SALE at $5,995,000 OR NNN Lease for $35,000 monthly, plus $4,200 in property taxes monthly Current Tenant Relocating by July 2019 or August 2019. The property is offered for Sale or Lease By the Owner. Half A Mile North of Mizner Park, Boca Downtown Museum, and IPIC Theater. Free Standing Luxury Building recently renovated in 2013, In and Out. The current tenant operates 7 Days a Week, 24 Hours. Tenant scheduled to vacate in July or August of this year, per request. Exterior covered Patio and partially uncovered with Fire torches and Water Fountain. Full Bar and Wine Cabinet Display area. Dining room Kitchen with Hood, separate Chef's Kitchen with Hood and Main Line Kitchen with On Demand Hood. Brokers Representation of Property owners position 1) The Owners position: What do they want? Why? The Seller would like to capitalize on his most profitable real estate holdings. Selling the property at maximum return is the Owner's ultimate goal, and she realizes that the age of the building is eventually going to present problems in any future sale, even though the building was recently completely renovated. The building owners' interest is to sell, preferably within the next two months, before or on the date of the current lease terminates. If not, the Owner's carrying cost increases since the building may go vacant until she identifies a new leaseholder. A sale solves all of the Owner's issues because the price includes the Amortization of the building renovation costs in the asking price, including a six-month lease recovery premium in the event the building was to remain vacant until a sale. The Broker has stated that that the Owner would consider a lease arrangement either a straight term or a Triple Net lease. There is also the option for any variation such as a Net or Net-Net Lease with terms such as taxes, utilities, Amortization of the renovation costs, and rent-plus percentage based on Gross income from the Restaurant. The property owner believes that the property fits well within Sally's plan to establish a new Restaurant. Great location, floor setup, lots of parking. The current tenant has had an exceptional long-term reputation in the area, and the customer base should help establish and carry over to the new Restaurant. The though is that If the purchase price is too top-heavy, maybe they will consider the NNN Lease options. There may be some room for negotiation on the purchase price, but that depends on Sally's costs model. There may be a slight margin based on the carryover of the tenant or discounting the lease price if Sally assumes the final lease period any holdover pass the lease period. Also, the cleanout costs are high, and maybe if there was an assumption of that responsibility, there could be adjustments made. An assumption probably would make sense if Sally wants to get in early to renovate to the floor plan and set up the kitchen and dining floor and start ordering and stocking foodstuff. The Owner believes that his walk-away alternative is that he will not go over a 20% discount on all pricing terms. He is willing to carry the property until a buyer comes along within, at least the end of the current tenant lease expires. The Owner will discount the price of the sale by as much 30% net thirty-days if offered a cash buyout and not have to wait for financing to take place. The Owner realizes that the best solutions for both parties would be to reach a reasonable price reduction with incentives to close early and turn lease period revenue over to the buyer. FINANCIAL SUMMARY (PRO FORMA – 2019) Gross Rental Income Annual $420,000 Annual Per SF 55.15 Other Income Annual – Annual Per SF – Vacancy Loss Annual – Annual Per SF – Effective Gross Income Annual $420,000 Effective Gross Income Annual Per SF 55.15 Net Operating Income Annual – Annual Per SF – DEMOGRAPHICS [1 Mile \/] HOUSEHOLD INCOME $0K – $35K 32% $35K – $75K 34.4% $75K – $100K 10.2% $100K+23.4% Income Thousand $0K – $35K 1,775 $35K – $75K 1,910 $75K – $100K 564 $100K+ 1,299 $96,376 Average AGE DISTRIBUTION 0 – 1920.1%20 – 2913.6%30 – 3914.8%40 – 4912.4%50 – 6420.8%65+18.4% Age Year 0 – 19 2,869 20 – 29 1,934 30 – 39 2,113 40 – 49 1,763 50 – 64 2,962 65+ 2,618 41.4 Average TRADE AREAS 1 mi 3 mi 5 mi [15 Min Drive \/] Total Population 1 Mile 14,259 3 Mile 74,783 5 Mile 177,827 2010 Population 1 Mile 9,942 3 Mile 57,482 5 Mile 153,525 2024 Population 1 Mile 15,710 3 Mile 81,307 5 Mile 190,006 Employees 1 Mile 15,760 3 Mile 84,516 5 Mile 171,639 Total Businesses 1 Mile 2,191 3 Mile 8,493 5 Mile 15,527 Average Household Income 1 Mile $96,376 3 Mile $110,391 5 Mile $98,696 Median Household Income 1 Mile $59,231 3 Mile $74,611 5 Mile $65,969 Total Consumer Spending 1 Mile $163.57M 3 Mile $936.46M 5 Mile $2.2B Median Age 1 Mile 41.2 3 Mile 47.1 5 Mile 48.7 Households 1 Mile 6,325 3 Mile 32,447 5 Mile 81,325 Percent College Degree or Above 1 Mile 25% 3 Mile 27% 5 Mile 26% Average Housing Unit Value 1 Mile $498,302 3 Mile $547,651 5 Mile $460,971 MAJOR TENANT INFORMATION FLASHBACK DINER SF Occupied 7,615 Lease End Date July 2019 AMENITIES  Signage  Monument Signage TRAFFIC Collection Street: N Federal Hwy Cross Street NE 15th Ter, SW Traffic Vol 34,622 Year 2018 Distance 0.14 mi Collection Street: NE 5th Ave Cross Street NE 16th St, N Traffic Vol 6,578 Year 2018 Distance 0.18 mi Collection Street: Glades Rd Cross Street N Federal Hwy, E Traffic Vol 22,699 Year 2018 Distance 0.24 mi Collection Street: Glades Rd Cross Street N Federal Hwy, E Traffic Vol 22,744 Year 2018 Distance 0.28 mi Collection Street: NE 20th St Cross Street NE 4th Way, NE Traffic Vol 15,308 Year 2018 Distance 0.28 mi PUBLIC TRANSPORTATION COMMUTER RAIL Boca Raton Commuter Rail (Tri-County Commuter) Drive 9 min Distance 4.1 mi Deerfield Beach Commuter Rail (Tri-County Commuter) Drive 13 min Distance 5.5 mi AIRPORT Palm Beach International Airport Drive 37 min Distance 25.7 mi Fort Lauderdale–Hollywood International Airport Drive 38 min Distance 26.7 mi WALK SCORE ® 85 Very Walkable TRANSIT SCORE ® **Contract_of_Sale_of_Commercail_Property.docx** This file is too large to display. [View in new window](https://www.sweetstudy.com/files/contract-of-sale-of-commercail-property-docx-9753933) **TripleNet.docx** This file is too large to display. [View in new window](https://www.sweetstudy.com/files/triplenet-docx) **CommercialLeaseAgreement.docx** This file is too large to display. [View in new window](https://www.sweetstudy.com/files/commercialleaseagreement-docx-9753939) – 1 – 2 – 3 – 4 – 5 – 6