5299 NE 12th Avenue
Land | 0.67 acres
Marketing description
Upside Partners, LLC is pleased to exclusively present a rare opportunity to acquire a net-leased income property backed by one of the strongest credit profiles in commercial real estate: a Florida municipality rated 'AA'. The City of Oakland Park has 100% leased the subject site at 5299 NE 12th Avenue under a five-year absolute net lease commenced February 1, 2025, with three (3) two-year renewal options and contractual 4% annual rent escalations.
The investment thesis is built on two pillars: (1) the City's AA credit — stronger than the vast majority of corporate net-lease tenants, including Walgreens (BBB), CVS (BBB), Dollar General (BBB), and on par with select cities like New York, Miami and Dallas; and (2) the underlying real estate — a 29,175 SF B-3 commercial-industrial parcel in one of South Florida's most supply-constrained infill industrial corridors, providing meaningful residual value protection should the income stream ever end.
Investment highlights
- The City of Oakland Park carries an 'AA' issuer credit rating from S&P Global Ratings — superior credit to most corporate net-lease tenants. Florida municipalities have statutory taxing authority, cannot file for Chapter 11 bankruptcy, and have perpetual existence.
- All the heavyweight net-lease tenants — Walgreens, CVS, Dollar General — carry only BBB ratings. The subject tenant sits multiple notches above them on the credit scale, yet the property is offered at a comparable or wider cap rate.
- 4.00% annual escalations every February 1, including during all renewal terms — automatic inflation-hedged cash flow growth, baked into the lease.
- Five-year primary term commenced February 1, 2025, plus three (3) two-year renewal options. Fully exercised, the lease extends to January 31, 2036 — over a decade of contractual income.
- The lease establishes a 2024 base year for real estate taxes. The Tenant reimburses the Landlord for any increase above the 2024 amount — capping landlord's tax exposure at $11,093.43 for the duration of the lease.
- Tenant separately pays all utilities, maintains insurance, keeps the premises in 'as-is' condition, and is responsible for all on-site improvements (gates, access control, security cameras). The Landlord has zero service obligations.
- The site sits in one of South Florida's most supply-constrained B-3 industrial corridors (3-4% vacancy; rents 20-30% below adjacent Fort Lauderdale). The 5149 NE 12th Avenue parcel on the same block sold February 2026 for $4.62M — establishing tangible residual value far above the offering price.
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