TARA PLAZA 84TH STREET & HOGAN DRIVE Omaha, NE

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1 OFFERING MEMORANDUM 84TH STREET & HOGAN DRIVE Omaha, NE MARK SEGER Executive Vice President Value - A d d R et a il C e n te r JEREMY FINK First Vice President jfink@cbre-mega.com

2 TABLE OF CONTENTS 03 PROPERTY DESCRIPTION 10 PRICING AND FINANCIAL ANALYSIS 15 LOCATION OVERVIEW 18 RECENT SALES 20 DEMOGRAPHIC ANALYSIS CONTACT US MARK SEGER Executive Vice President JEREMY FINK First Vice President This Memorandum conta select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented as is without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to pect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner CBRE, Inc. All Rights Reserved.

3 PROPERTY DESCRIPTION 3 CBRE MEGA AND BEAR PROPERTIES ARE PLEASED TO PRESENT THE RETAIL AND COMMERCIAL PROPERTY FOR SALE IN THE OMAHA MARKET. PROPERTY OVERVIEW HIGHLIGHTS % occupied retail center + + Located on signalized intersection across from Super Target + + Excellent traffic counts; over 45,000 vehicles per day + + Anchored by St Vincent De Paul Thrift Store and La Mesa + + Terrific upside on rent increases and occupancy improvement + + Includes six out parcel buildings, two storage buildings in the rear and a 35,475 SF strip center DESCRIPTION The subject property is a 65,781 square foot mostly retail property comprised of the primary 35,475 SF strip center; a 2,183 SF freestanding leased restaurant building on the northern most out parcel; a 2,574 SF vacant two-level office building (that historically housed the original developers real estate office); a 3,849 SF three-bay retail building on the out parcel just south of the office building; a 5,400 SF vacant commercial building on the hard northeast corner of 84th Street and Hogan Drive (originally housed a Radio Shack); a 5,498 SF two-level vacant office building just east of the former Radio Shack building; a leased 6,720 SF two-level office/ flex building on the southeast corner of the site; and 4,082 SF of two metal storage buildings with approximately 13 sidewall height. Tara Plaza is well located on South 84th Street, the main North/ South thoroughfare connecting Ralston and La Vista to Papillion, with convenient south access to Highway 370. The property is across the street from a Super Target, Home Depot and a newer Genesis Health Club facility. Additionally, Tara Plaza a neighbor to Papillion-La Vista High School, Tara Hills Golf Course, and Halleck Park that houses Papillion s popular aqua-center. Tara Plaza is on the northern edge of Papillion, one of Omaha s fastest growing suburbs. In fact, Papillion is located in Sarpy County, ranked in the top 100 counties nationwide for percentage growth of housing units from 2010 to It s No. 14 national ranking among nearly 2,500 US counties with at least 5,000 dwellings puts Sarpy County in the top 3% nationally on ranking housing growth. Papillion/Sarpy are popular areas of the Omaha Metro. City-wide retail vacancy is currently 5.3% (4th Quarter 2017), with Papillion vacancy at 5%.. Average retail rent for neighborhood centers is $9.57 and $14.54 per square foot for the Sarpy West and South Central submarket, respectively. This is in comparison to the Average Retail Rents at Tara Plaza, which is currently averaging $7.51 per square foot. Tara Plaza obviously presents an outstanding opportunity to raise rental rates and improve occupancy with professional management. METROPOLITAN STATISTICAL AREA (MSA) INFORMATION Figures are for the MSA unless otherwise noted ,051 Population of nine-county metropolitan area + + $63,818 Adjusted median household income compared to $53,133 for the U.S % Below the national average for housing costs % Residents who have bachelor s degrees or higher in the nine-county area, compared to 27.9% for the U.S. Source: Greater Omaha Chamber of Commerce/Omaha Convention and Visitor s Bureau

4 PROPERTY DESCRIPTION PROPERTY PHOTOS 4

5 PROPERTY DESCRIPTION PROPERTY PHOTOS 5

6 PROPERTY DESCRIPTION PROPERTY PHOTOS 6

7 PROPERTY DESCRIPTION SITE PLAN SITE PLAN KEY 6 1 Former Radio Shack 802 Hogan Drive S 84th Street S 84th Street S 84th Street S 84th Street 6 Storage Buildings Hogan Drive Hogan Drive SIGNALIZED MAIN INTERSECTION 84TH ST & HOGAN DR 7

8 PROPERTY DESCRIPTION TITLE SURVEY SIGNALIZED MAIN INTERSECTION 84TH ST & HOGAN DR

9 TA R A PROPERTY DESCRIPTION 8 4 T H ST RE E T & P L A Z A HO G AN D RI V E O M AHA, SITE AERIAL Storage Buildings Hogan Dr e Str gan Ho S 84th St et Hogan Dr S 84th St S 84th St S 84th St 84th Street 9 2 Former Radio Shack 802 Hogan Dr N E

10 PRICING AND FINANCIAL ANALYSIS OFFERING SUMMARY LOCATION + + Sale Price: $4,200,000 INCOME/EXPENSE SUMMARY CURRENT + + Price per Square Foot (GLA): $ Gross Leaseable Area (GLA): 65,781 SF + + Year Built: , 2003 (phases) + + Lot Size: 9.01 Acres + + OCCUPIED SPACE BASE RENT: $302, Expense Reimbursements: $85, GROSS EFFECTIVE INCOME: $388,294 EXPENSES 2017 CURRENT + 61% occupancy + + Real Estate Taxes: $53, Insurance: $24, Utilities: $34, CAM: $56, Expenses: $186,407 NET OPERATING INCOME: $201, Parking Lot/R&M: $17,840 TOTAL EXPENSES* $186,407 *EXPENSES EXCLUSIVE OF INTER-OFFICE EXPENSE TOTAL RETURN IN PLACE $201,887 10

11 PRICING AND FINANCIAL ANALYSIS INCOME & EXPENSE INCOME RENT $344,672 $341,985 CAM INCOME $52,691 $80,659 TOTAL INCOME $387,363 $422,644 EXPENSES TAXES $51,535 $52,887 INSURANCE $24,769 $24,769 UTILITIES $20,500 $21,052 REPAIRS, MAINTENANCE & REPLACEMENT $43,846 $44,723 SNOW, LANDSCAPING & GROUNDS $20,019 $20,575 MANAGEMENT, LEGAL & ACCOUNTING $20,014 $24,384 TOTAL EXPENSES* $162,683 $188,390 NET OPERATING INCOME $224,680 $234,254 *Expenses exclusive of exterior maintenance & commissions 11

12 PRICING AND FINANCIAL ANALYSIS RENT ROLL WITH LEASE CHARGES AS OF 03/31/2018 Unit Unit Unit type Sq Ft Resident Name Market Rent Charge Code Amount Resident Deposit Other Deposit Current/Notice Residents ,498 VACANT VACANT Move In ,720 acs ACS 2, rent1 3,78 6/1/ , ,400 VACANT VACANT 807 9,335 stvincen ST VINCENT DE PAUL THRIFT STOR 1, rent1 2,00 12/1/ , ,283 cornerst CORNERSTONE RESTORATION, INC rent1 1,10 3/1/2012 1, ,000 absolute ABSOLUTELY HER, INC. 3, rent1 2,30 10/1/ , ,283 VACANT VACANT ,283 VACANT VACANT ,500 pired INSPIRED BRIDE INC /1/ rent ,280 headline HEAD LINES rent1 99 6/1/ , ,574 VACANT VACANT 12

13 PRICING AND FINANCIAL ANALYSIS RENT ROLL WITH LEASE CHARGES AS OF 03/31/2018 Unit Unit Unit type Sq Ft Resident Name Market Rent Charge Code Amount Resident Deposit Other Deposit Current/Notice Residents ,800 partners PARTNERS IN LEARNING 1, rent1 1, /1/ , ,800 VACANT VACANT 1,75 Move In 825 1,400 diane DIANE DELSIGNORE d/b/a DIANE'S rent /1/ , ,183 ming MING AND MING 2,15 rent1 2, /1/ , ,480 lamesa LAMESA RESTAURANT rent1 4, /1/ , ,120 getglamo GET GLAMOROUS, LLC 1, rent1 1, /1/ , lindquis LINDQUIST HEALTH GROUP, INC. 56 rent /1/ ,400 grecian GRECIAN GYROS 78 rent /1/ , ,800 VACANT VACANT 2,00 13

14 PRICING AND FINANCIAL ANALYSIS RENT ROLL WITH LEASE CHARGES AS OF 03/31/2018 Square Footage Market Rent Lease Charges Security Deposit Other Deposit # of Units Occupancy Balance Current/Notice Res. 28, Future Residents/Applicants Occupied Units 40,061 17, Vacant Units 21,638 5, s: 61, , , Summary of Charges by Charge Code (Current/Notice residents only) 1, rent1 23, , , Additional Storage Buildings 4,082 SF 65,781 SF 14

15 LOCATION OVERVIEW MARKET OVERVIEW OMAHA Located in east-central Nebraska, along the Missouri River, the Omaha-Council Bluffs, NE-IA Metropolitan Statistical Area (MSA) is made up of five counties in Nebraska and three in Iowa, covering nearly 5,000 square miles. Included in the MSA are the cities of Omaha, Bellevue, La Vista and Papillion, NE and Council Bluffs, IA. With a metropolitan population of approximately 931,600, Greater Omaha has the largest and fastest growing population in the state of Nebraska. The active labor force of nearly 500,000 is the largest in the state. The metro area s population is projected to surpass 1,000,000 by This is an increase of approximately 1.2% annually, outperforming the national average of 0.69%. ECONOMIC SNAPSHOT Over 40,000 businesses currently operate in the Omaha metro area. The area enjoys a diverse employment base resulting in steady growth over the long term. Nebraska has the nation s lowest unemployment rate of 3.2% (February 2017) with the Omaha metro at a close 3.4%. According to the U.S. Department of Commerce, the Omaha-Council Bluffs Gross Metropolitan Product measured nearly $59.1 billion in 2015, which was an increase of approximately 24% since This ranks the area 52nd among regional economies in the United States. Omaha is home to a large base of international firms and business leaders including the headquarters of four Fortune 500 companies Berkshire Hathaway, Union Pacific, Peter Kiewit Sons and Mutual of Omaha Insurance and five Fortune 1000 companies TD Ameritrade, Green Pla, Valmont Industries, West Corporation and Werner Enterprises. It is also home to international architectural firms Leo Daly and Associates, HDR, Inc. and DLR Group. Omaha enjoys one of the most advanced communications infrastructures in the world and is a top destination for cultivating information technology companies. Six of the nation s largest fiber optic lines run through the region to data and call centers supporting many of the nation s top techdriven firms, including Google, Facebook, Yahoo, PayPal, First Data and LinkedIn. Additionally, there are several large-scale call/service centers located in Omaha including Hyatt Hotels, Omaha Steaks, Convergys, Sitel Corporation, West Corporation, Alorica, CSG Systems and Marriott Hotels. GREATER OMAHA MAJOR EMPLOYERS OFFICE USERS BY NUMBER OF EMPLOYEES 15

16 LOCATION OVERVIEW GREATER OMAHA AREA Greater Omaha mainta a higher concentration of high wage jobs, financial titutions, education, healthcare, professional and business service sectors compared to the nation. Greater Omaha is the home of four Fortune 500 headquarters: Berkshire Hathaway, Mutual of Omaha, Peter Kiewit Sons, Inc. and Union Pacific Railroad. Additionally, another five Omaha area companies are in Fortune Great Pla Renewable Energy, Valmont, TD Ameritrade, West Corporation and Werner Enterprises. RANKINGS AND RECOGNITION GREATER OMAHA Source: Greater Omaha Chamber of Commerce/Omaha Convention and Visitor s Bureau + + #6 - The 12 Metro Areas with the Least-Stressed Commuters (LawnStarter - Oct 2016) + + #11 - Top Tech Cities in the Midwest (ComputeMidwest.com - Sep 2016) + + # s Best Cities to Start a Career (WalletHub - May 2016) + + #6 - The Top 10 Cities for First-Time Homebuyers (SmartAsset - Mar 2016) + + #3 - The Best Cities to Find a Job in 2016 (ZipRecruiter - Jan 2016) + + #1 - The Top 10 Best American Cities to Work in Tech in 2015 (SmartAsset - Sep 2015) + + #2 - Best Places to Live 2015 (Papillion) (Time.com/money - Aug 2015) + + # s Best City for Recreation (WalletHub - Jul 2015) + + #1 - The U.S. Healthcare Affordability Index (35 U.S. Metropolitan Areas) (Castlight Health - Jun 2015) + + #5 - Best Cities to Work for a Small Business (WalletHub - May 2015) #8 - The Top 10 Cities for New College Grads (SmartAsset - Apr 2015) Source: Greater Omaha Chamber of Commerce/Omaha Convention and Visitor s Bureau

17 LOCATION OVERVIEW LOCATION REGIONAL AND CITY DISTANCE - TO MAJOR LOCATIONS CITY OF OMAHA - METROPOLITAN AREA THE PROPERTY THE PROPERTY LOCATION MILES DRIVE TIME LINCOLN, NE 55 1 HOUR KANSAS CITY, MO HOURS DES MOINES, IA HOURS MINNEAPOLIS, MN HOURS 17

18 RECENT SALES PROPERTY: 48TH & VINE, LINCOLN, NE CLOSE OF ESCROW: 3/31/2015 TOTAL RENTABLE SF: 55,321 YEAR BUILT: 1967 LEASE TYPE: DOUBLE-NET; MULTI-TENANT SALE PRICE: $4,851,000 PRICE/SF: $87.69 CAP RATE: 8.93% DESCRIPTION: Neighborhood Center anchored by Goodwill and Ace Hardware; sale handled by CBRE MEGA PROPERTY: ELK RIDGE PLAZA HONEYSUCKLE DRIVE, ELKHORN, NE CLOSE OF ESCROW: 10/7/2016 TOTAL RENTABLE SF: 20,353 YEAR BUILT: 2010 LEASE TYPE: NNN; MULTI-TENANT SALE PRICE: $2,165,000 PRICE/SF: $ CAP RATE: 6.6% without hair salon, 7.67% with hair salon DESCRIPTION: 92% leased center on 2.57 acres; sale handled by CBRE MEGA 18

19 RECENT SALES PROPERTY: HAINES STATION 2255 HAINES AVE, RAPID CITY, SD CLOSE OF ESCROW: 4/30/2015 TOTAL RENTABLE SF: 43,076 YEAR BUILT: 1980 LEASE TYPE: NNN; MULTI-TENANT SALE PRICE: $3,240,160 PRICE/SF: $75.22 CAP RATE: 9.1% DESCRIPTION: 100% leased shopping center anchored by Hancock Fabrics, close to Rushmore Mall off I-90; sale handled by CBRE MEGA PROPERTY: 76 CASS COURT 7609 CASS STREET, CLOSE OF ESCROW: 1/26/2015 TOTAL RENTABLE SF: 35,206 YEAR BUILT: 1986 LEASE TYPE: NNN; MULTI-TENANT SALE PRICE: $3,400,000 PRICE/SF: $96.57 CAP RATE: 8.50% DESCRIPTION: 91% occupied center, un-anchored strip, cap rate based on trailing 12 month NOI 19

20 DEMOGRAPHIC ANALYSIS AREA DEMOGRAPHICS PLACE OF WORK 1 MILE 3 MILES 5 MILES EDUCATION 1 MILE 3 MILES 5 MILES 2016 Businesses 485 2,241 6, Employees 7,851 39, ,546 POPULATION 2016 Population - Current Year Estimate 9,071 71, , Population - Five Year Projection 9,638 77, , Population - Census 8,720 64, , Population - Census 8,367 52, , Annual Population Growth Rate 0.63% 1.60% 1.23% Annual Population Growth Rate 1.22% 1.72% 1.35% AGE 2016 Population 9, , ,900 Age % 5, % 10, % Age % 5, % 10, % Age % 5, % 10, % Age % 4, % 9, % Age % 4, % 10, % Age % 5, % 12, % Age % 5, % 11, % Age % 4, % 10, % Age % 4, % 9, % Age % 4, % 9, % Age % 4, % 10, % Age % 4, % 9, % Age % 3, % 8, % Age % 2, % 6, % Age % 1, % 4, % Age % 1, % 3, % Age % % 2, % Age 85 and Older % % 2, % 2016 Median Age RACE AND ETHNICITY 2016 Population 9, , ,900 White 8, % 61, % 126, % Black or African American % 2, % 5, % Asian % 2, % 4, % American Indian or Alaska Native % % % Pacific Islander 3 0.0% % % Other Race % 2, % 10, % Two or More Races % 2, % 4, % 2016 Population 25 and Over 6, , ,530 Less than 9th Grade % 1, % 4, % 9-12th Grade - No Diploma % 1, % 5, % High School Diploma 1, % 9, % 20, % GED or Alternative Credential % 1, % 3, % Some College - No Degree 1, % 11, % 23, % Associate`s Degree % 4, % 9, % Bachelor`s Degree 1, % 12, % 23, % Graduate or Professional Degree % 5, % 10, % GENDER 2016 Population 9, , ,900 Males 4, % 35, % 75, % Females 4, % 36, % 77, % MARITAL STATUS 2016 Population 15+ 7, , ,657 Never Married 2, % 16, % 37, % Married 4, % 30, % 63, % Widowed % 2, % 6, % Divorced % 5, % 13, % EMPLOYMENT STATUS 2016 Civilian Population 16+ in Labor Force 5, ,794 85, Employed Civilian Population 16+ 5, % 39, % 82, % 2016 Unemployed Population % 1, % 3, % CLASS OF WORKER 2016 Employed Civilian Population 16+ 5, ,574 82,248 White Collar 3, % 27, % 51, % Services % 5, % 13, % Blue Collar % 6, % 16, % DAYTIME POPULATION 2016 Daytime Population 10,297 63, ,098 Daytime Workers 6, % 31, % 86, % Daytime Residents 4, % 32, % 70, % Hispanic % 6, % 21, % White Non-Hispanic 7, % 58, % 117, % 2017 CBRE. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. 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. Source: Esri Page 2 ProjectID:

21 DEMOGRAPHIC ANALYSIS AREA DEMOGRAPHICS HOUSEHOLDS 1 MILE 3 MILES 5 MILES 2016 Households - Current Year Estimate 3,462 27,463 59, Households - Five Year Projection 3,711 29,891 63, Households - Census 3,257 24,877 55, Households - Census 2,863 19,561 47, Annual Household Growth Rate 0.98% 1.59% 1.25% Annual Household Growth Rate 1.40% 1.71% 1.36% 2016 Average Household Size HOUSEHOLD INCOME 2016 Households 3, ,463 59,670 Under $15, % 1, % 3, % $15,000-$24, % 1, % 4, % $25,000-$34, % 2, % 6, % $35,000-$49, % 3, % 9, % $50,000-$74, % 5, % 12, % $75,000-$99, % 4, % 8, % $100,000-$149, % 5, % 9, % $150,000-$199, % 1, % 3, % $200,000 and Over % 1, % 1, % 2016 Average Household Income $101,639 $83,129 $74, Average Household Income $111,412 $91,878 $82, Median Household Income $88,567 $66,938 $58, Median Household Income $101,027 $79,224 $68, Per Capita Income $37,248 $32,170 $29, Per Capita Income $41,025 $35,527 $32,378 HOUSING VALUE 2016 Owner Occupied Housing Units 2, ,990 37,349 Under $50, % % 1, % $50,000-$99, % % 3, % $100,000-$149, % 4, % 12, % $150,000-$199, % 4, % 8, % $200,000-$249, % 3, % 5, % $250,000-$299, % 1, % 2, % $300,000-$399, % 1, % 2, % $400,000-$499, % % % $500,000-$749, % % % $750,000-$999, % % % $1,000,000 and Over 0 0.0% % % 2016 Median Value of Owner Occ. Housing Units $208,524 $187,477 $157, Average Value of Owner Occ. Housing Units $211,483 $205,069 $182,903 NAME LATITUDE LONGITUDE CBRE. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. 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. Source: Esri ProjectID: