122 E. Miller Drive Bloomington, IN Offering Memorandum

Transcription

1 Offering Memorandum

2 DISCLAIMER AND CONFIDENTIALITY NOTICE This marketing brochure has been provided as a preliminary summary only and may contain assumptions that do not reflect the current status of the property or any changes that may have taken place since the brochure was produced. The information contained herein has been taken from secondary and other sources, and Weichert Realtors - The Owens Group makes no warrantee with respect to the completeness or accurateness of the data or conclusions, including income or expenses, projected financial performance, size and square footage, environmental issues, physical condition, or plans of any existing or prospective tenants, for the subject property and/or comparables referenced, and the contents are not a substitute for due diligence investigation on the part of any interested party. The information contained in this marketing brochure is proprietary and confidential. It is intended solely for the party to which is was expressly given by a Weichert Realtors - The Owens Group agent and is considered proprietary and confidential in nature. The recipient agrees to hold in confidence all information provided herein, with the exception of any publicly available information, and will not disclose its contents in any fashion or provide it or copies of it, in whole or in part, to any other entity. The owner and representative agent each reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or to terminate discussions with any entity at any time without notice, and neither has any commitment or obligations to any recipient of this marketing brochure. Weichert Realtors is a federally registered trademark owned by Weichert Co. Weichert Realtors - The Owens Group is independently owned and operated. All property showings are by appointment only. Consult your Weichert Realtors - The Owens Group agent for details. Prepared exclusively for client of Scott Owens. Weichert, Realtors - The Owens Group, 02/2017

3 Page 1 EXECUTIVE SUMMARY VITAL DATA PROFORMA Price $950,000 CAP Rate 6.8% Down Payment 20% $190,000 Net Operating Income $64,543 Loan Amount $760,000 Cash Flow After Debt Service $6,846 Interest Rate 4.50% Cash on Cash Return 3.6% Amortization (yrs) 20 Lot Size (acres) 1.3 Additional SF- mezzanine 2,952 Year Built 1985 Price per SF (lower level) $ Rentable SF (lower level) 7,000 Total Price per SF (GLA) $95.46 INVESTMENT HIGHLIGHTS Value-Add Growth Potential Existing below-market lease ending September Various use options, all increasing income potential Located just off South Walnut Street, the main thoroughfare though the city One mile from Indiana University Good structural condition with versatile floor plan options Zoning allows for increased building size

4 Page 2 PROPERTY DESCRIPTION PROPERTY DETAILS Address: 122 E Miller Drive Building Type: Steel frame, metal exterior Gross Building Area: 7,000 Net Rentable Area: 7,000 Stories: 1 with 1,250 SF mezzanine Age: Built in 1985 Condition: Average Heat/Air: Suspended space heaters / central air Finishing: Partial- concrete in central area, carpet in offices Current Use: Fitness facility Proposed Use: Flex, office, other Land Size: 1.3 acres Zoning: C3- Commercial General Parking: 39 spaces Other: 16 sidewalls, 25 height LOCATION AERIAL

5 Page 3 PROPERTY PHOTOGRAPHS

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7 Page 4 AERIALS AND OTHER Below are photos of the buildings on either side of the subject property

8 Page 5 MARKET SUMMARY POPULATION BLOOMINGTON MSA , , % growth , % growth Current City Population 84,067 INDIANA UNIVERSITY , , % growth , % growth Current Bloomington Enrollment 49,695 with 35% living on campus Median Age 23.5 Bloomington's age statistics are skewed downward by the large student population. REAL ESTATE Median Home Value $197,897 Land Appreciation Rates 2% - 6% Owner Occupied Housing 34% Renter Occupied Housing 66% Median Rent city wide $916 Median Rent downtown $1,592 Rental Vacancy Rate city wide 4.4% Rental Vacancy Rate downtown 1.0% UNEMPLOYMENT SEPTEMBER 2017 National 4.2% Indiana 3.8% Bloomington 3.7% BUILDING PERMITS MONROE COUNTY % growth 2017 YTD % growth INCOME MEDIAN HOUSEHOLD Bloomington MSA State (IN) 2013 $49,503 $45, $45,015 $49, $44,376 $50,532 Current Bloomington City Median $28,660 Bloomington's income statistics are skewed downward by the large number of student households. MAJOR EMPLOYERS Indiana University- Bloomington IU Health Bloomington Cook Group, Inc. IU Health Bloomington Hospital General Electric Indiana University Baxter Bio Pharma Solutions Internal Medicine Associates Stone Belt Landmark Medical Center Bloomington, Indiana is a true university town tucked into the rolling hills of southern Indiana, only one hour south of the State s capital, Indianapolis. Bloomington features the Big 10 campus of Indiana University in the heart of the city, connected by blocks of vibrant shops, restaurants, and nightlife to a certified Main Street town square with a beautiful courthouse at the center. Bloomington has the convenience and lifestyle of a small town with all the amenities of thriving hub for cultural and business. The city is in the midst of a redevelopment boom with the majority of the downtown projects consisting of mixed use structures with commercial on street level and residential use above. Largely sheltered from economic factors that negatively impact many large metros, Bloomington has attracted the attention of national developers and investors, and the market is ripe for continued growth.

9 Page 6 FINANCIAL SUMMARY PROPOSED FINANCING Price $950,000 Loan to Value 80% Loan Amount $760,000 Downpayment $190,000 Loan Type Proposed New Interest Rate 4.5% Amortization (years) 20 Monthly P&I $4,808 Debt Service $57,698 RETURNS Proforma Gross Income $73,471 NOI $64,543 Cap Rate 6.8% GRM Debt Coverage Ratio 1.12 Cash Flow After Debt Service $6,846 Cash-on-Cash 3.6% Detailed Operating Estimates- Projected 1st Year INCOME SF Rate PGI Rents 7000 $10.71 $74,970 Vacancy and collection loss: 2.0% $1,499 EGI $73,471 Vacancy EXPENSES % of EGI $/SF Cost Only Real estate taxes 5.6% $0.59 $4,141 $83 Insurance 1.9% $0.20 $1,400 $28 Repairs & Maintenance 4.0% $0.42 $2,939 $0 Management 10.0% $1.05 $7,347 $7,347 Reserves/Replacements 2.0% $0.21 $1,469 $1,469 OER Total 23.5% $2.47 $17,296 $8,927 12% NOI $56,175 $64,543

10 Page 7 COMPARABLE DATA- SALES SUBJECT SALE #1 SALE #2 SALE #3 Address: 122 E Miller Drive Address: 1800 S Walnut Street Address: 1815 S Walnut Street Address: 203 W 1st Street Description/Use: Flex- fitness center Description/Use: Auto- comm garage Description/Use: Office Description/Use: Office Gross Building Area: 7,000 Gross Building Area: 4,000 Gross Building Area: 2,453 Gross Building Area: 3,240 Net Leasable Area: 7,000 Net Leasable Area: 4,000 Net Leasable Area: 2,453 Net Leasable Area: 3,240 Year Built: Built in 1985 Year Built: 1985 Year Built: 1984 Year Built: 1978 Lot Size: 1.3 acres Lot Size: 0.85 Lot Size: 0.38 Lot Size: 0.35 Price: $950,000 Price: $500,000 Price: $325,000 Price: $485,000 Price/SF GBA: $ Price/SF GBA: $ Price/SF GBA: $ Price/SF GBA: $ Sale Date: 6/8/2017 Sale Date: 2/27/2015 Sale Date: 3/24/2017 Comments: Subject is larger with superior finishing Comments: Subject is larger with inferior finishing Comments: Subject is smaller with superior finishing

11 Page 8 COMPARABLE MAP- SALES

12 Page 9 COMPARABLE DATA- RENTS SUBJECT COMPARABLE #1 COMPARABLE #2 COMPARABLE #3 COMPARABLE #4 Address: 122 E Miller Drive Address: 511 W 4th St. Address: 1711 N College Ave. Address: 611 W 11th St. Address: 1025 S Walnut St. Bloomington, IN Bloomington, IN Bloomington, IN Description/Use: Flex/office Description/Use: Flex- retail/office Description/Use: Flex- retail/office Description/Use: Flex- retail/office Description/Use: Retail/office Occupancy: Vacant as of 10/1/18 Occupancy: New lease 2/13 Occupancy: Active listing Occupancy: New lease 10/17 Occupancy: Active listing Net Leasable Area: 7,000 Net Leasable Area: 977 Net Leasable Area: 4,000 Net Leasable Area: 4,000 Net Leasable Area: 1,000 Layout/Finish: Open span, partial Layout/Finish: Open span, partial Layout/Finish: Open span, partial Layout/Finish: Open span, partial Layout/Finish: Storefront/ office Rate: $10.71 Rate: $12.28 Rate: $10.00 Rate: $6.30 Rate: $13.50 Parking: Adequate onsite Parking: Street only Parking: Adequate onsite Parking: Adequate onsite Parking: Adequate onsite Lease Type: NNN Lease Type: Gross Lease Type: NNN Lease Type: NNN Lease Type: NNN Other: 2,952 Sf mezzanine Other: 279 SF mezzanine Other: Located in a strip center Other: Former hardware store Other:

13 Page 10 COMPARABLE MAP- RENTS

14 Page 11 ABOUT US Experience Matters SCOTT OWENS Scott is an Owner/Partner in Weichert Bloomington, with over 40 years of experience in the Bloomington real estate market, making him one of the most knowledgeable and well-connected Realtors in town. His high degree of market expertise and store of investor relationships allow him to match buyers and sellers with creative solutions designed to maximize returns and minimize transaction time. Weichert Values Weichert, Realtors - The Owens Group Independently Owned and Operated Our company is a part of Weichert Real Estate Affiliates, Inc. We are locally owned, but as a Weichert Affiliate we are part of one of the leading real estate service companies in America and have access to their exclusive tools and systems, so we can take great care of our clients S. Walnut St., Bloomington, IN info@weichertbloomington.com