JEROME RETAIL CENTER E Yakima St, Jerome, ID CONTACT. Raymond Duchek Investment Broker

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1 JEROME RETAIL CENTER E Yakima St, Jerome, ID CONTACT 120 2nd Avenue North, Suite 206 PO Box 4380, Ketchum, ID (208) Raymond Duchek Investment Broker RaymondD@norris-stevens.com

2 TABLE OF CONTENTS 1 INVESTMENT HIGHLIGHTS 2 JEROME OVERVIEW 3 MAJOR TENANTS 4 BUSINESS INCENTIVES 5 FINANCIAL OVERVIEW JEROME RETAIL CENTER / 2

3 INVESTMENT HIGHLIGHTS 100% Occupied Strong occupancy history in Center - Dollar Tree tenant since 2005 Ease of management. All tenant leases are Triple Net (NNN) structure, allowing for pass through of operating expenses PROPERTY SUMMARY Sale Price $2,510,000 Land Area 1.28 Acres Leaseable Area 16,199 SF Price Per SF $ National tenant shadow anchors, including Walmart, McDonald s, O Reilly Autoparts, Burger King & Taco Bell Priced below replacement cost Separate tax lots - Dollar Tree and the multi-tenant building are on different tax lots, providing flexible disposition strategies Cap Rate 6.72% Year Built 2005 JEROME RETAIL CENTER / 3

4 JEROME OVERVIEW Jerome, Idaho is a community as rich in diversity as the landscapes that surround it. With more than 23,000 people in the greater Jerome area (includes Jerome County), the City continues to grow and expand in terms of both its size and economy. Jerome has seen consistent, increased growth over the last ten years with a growth rate of 34%. The building department has seen more requests for residential and commercial buildings for both professional and retail development. Even with relatively low unemployment, Jerome is seeing continued business growth. With many businesses considering Jerome for future location and the wide variety of new housing opportunities, it is projected that the City s population will reach 17,500 by the year Jerome is an attractive location for prospective businesses and families. Businesses are attracted to Jerome because of the stability of existing,well-established businesses, convenient transportation systems, the quality of prospective employees and the cooperation they receive from local organizations, and government. Families are attracted to Jerome because of its way-of-life, friendly residents, services, education systems, lower than average crime rates, and our small town way of life. Jerome s economic base remains dependent on agriculture and value-added agriculture products and commodities. The City of Jerome has been working diligently with different groups in the region to expand economic base and become less dependent on a single sector. TOP INDUSTRIES IN JEROME 93,000 NEW JOBS IN IDAHO REPLACED 60,000 LOST DURING THE RECESSION 0-19 Years Old Years Old IDAHO HAS THE 3rd FASTEST GROWING POPULATION IN THE UNITED STATES POPULATION DEMOGRAPHIC MEDIAN AGE: % 33.6% 1st FASTEST JOB GROWTH IN THE UNITED STATES POPULATION 11,317 AVG MEDIAN INCOME $38,427 Health Care & Social Services Manufacturing Retail Public Administration Years Old 65+ Years Old 28.3% 12.3% UNEMPLOYMENT RATE 3.2% Sources: commerce.idaho.gov, ci.jerome.id.us, city-data.com/city/jerome-idaho.html JEROME RETAIL CENTER / 4

5 JEROME OVERVIEW BOISE 118 miles 1 hr 40 min NEARBY CITIES 118 miles 1 hr 40 min JEROME POCATELLO TWIN FALLS POP: 47, miles 19 min Interstate 84 is the main artery of commerce across the State of Idaho, linking the Midwest and Eastern United States with the Pacific Northwest. Exits along all interstates have become hubs of economic activity for the local communities, increasing job growth and improving amenities to rural areas. Along with the interstate, Jerome is a corridor for thousands of recreationists en route to Sun Valley for skiing, hiking, and other outdoor opportunities. 223 miles 3 hrs 7 min SALT LAKE CITY MOUNTAIN HOME POP: 13, miles 1 hr 5 min POCATELLO POP: 54, miles 1 hr 40 min Source: ci.jerome.id.us JEROME RETAIL CENTER / 5

6 JEROME, IDAHO LARGEST BUSINESSES IN JEROME Novolex s Hilex Poly brand is the industry s leading manufacturer of plastic retail bags, produce bags and other customer experience focused systems. WOW-Jerome is a multi-temperature facility with ambient (dry) and refrigerated (cooler) warehousing storage areas, as well as a USDA approved cheese grading room. Idaho Milk Products operates an immense 220,000 square foot facility where 1.1 billion pounds of raw milk becomes the world s freshest selection of dairy ingredients. Darigold s Jerome, Idaho plant is their newest facility and produces some of the highest quality milk protein powders in the US. S LINCOLN AVE Based in Jerome, Idaho, Rite Stuff Foods is the leading specialty potato product manufacturer in the United States. SUBJECT PROPERTY E YAKIMA AVE S LINCOLN AVE Interstate 84 is the main artery of commerce across the State of Idaho, linking the Midwest and Eastern United States with the Pacific Northwest. JEROME RETAIL CENTER / 6

7 PHOTOS JEROME RETAIL CENTER / 7

8 MAJOR TENANTS #87 on Fortune 500 list of 2016 (Note: would have been #87 on 2017 list too but S o ft Bank of Japan acquired 80 percent ownership) $33.3 billion revenue in 2016 #136 on Fortune 500 list 9 years on the Fortune 500 list $20 billion revenue in % increase in profit over the last year #14 on Fortune 500 list 23 years on the Fortune 500 list $125 billion revenue in ,700+ locations 19 locations in Idaho 116,000+ employees Ranked #32 on the Global 500 list 59.7 million customers 160,900+ employees #33 on Fortune 500 list 23 years on the Fortune 500 list $76.1 billion revenue in 2016 #315 on Fortune 500 list 21 years on the Fortune 500 list $22,661,640,000 in Assets $8.8 billion revenue in 2016 The largest carry-out pizza chain in America Restaurants in 21 countries Named Best Value in America for the ninth year in a row Operating since stores throughout the Pacific Northwest Ranked #85 on Global 500 list One of the fastest growing pizza chains in the world 68,000+ employees JEROME RETAIL CENTER / 8

9 BUSINESS INCENTIVES Idaho Tax Reimbursement Incentive A performance-based incentive, which features a tax credit of up to 30% for up to 15 years on new state tax revenues generated by companies seeking to expand in or relocate to the state of Idaho by adding new, qualifying jobs. Idaho Opportunity Fund Does your community need infrastructure improvements to attract or accommodate a new commercial or industrial facility? Funding is allotted at the discretion of the Idaho Commerce director. 3% Investment Tax Credit Investment tax credit on all new depreciable, tangible, personal property (machinery and equipment) used in Idaho. Idaho Business Advantage If your business invests at least $500,000 in new facilities and creates at least 10 new jobs averaging $40,000 a year with benefits, you may qualify for a wide package of incentives, including tax credits, sales tax rebates, and property tax exemptions. Property Tax Exemption If your business invests $3 million in new manufacturing facilities, you may qualify for a full or partial property tax exemption for up to five years. Workforce Development Training Reimbursements Businesses can receive up to $3,000 in cash reimbursements for the training of full-time, new employees or for helping retain employees facing permanent layoff. JEROME RETAIL CENTER / 9

10 FINANCIALS Price: $2,510,000 Cap Rate: 6.72% Price Per Square Foot: $ Net Operating Income Analysis ANNUAL Scheduled Income Occupied Space $ 184,296 Plus: Expense Reimbursement $ 61,592 Less: 3% $ 7,377 GROSS OPERATING INCOME $ 238,511 EXPENSES (Based on average of last two years) Accounting Legal $ 3,890 Property Taxes for $ 37,285 Building Insurance $ 3,500 Repairs & Maintenance $ 13,990 Utilities $ 9,500 Capital Expense $0.10 per SF $ 1,620 Total Operating Expenses $ 69,785 NET OPERATING INCOME $ 168,726 Norris & Stevens makes no representation as to the accuracy or completeness of any and all enclosed financial projections. By receipt of this package, prospective buyers acknowledge their responsibility. Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction. JEROME RETAIL CENTER / 10

11 FINANCIALS Tenant Name Suite Size % of Space 124 East Yakima Street TENANT INFO LEASE TERMS Occupancy Date Lease Expiration Monthly Base Rent CURRENT RENT Annual Base Rent* Rent/SF/YR RENT INCREASE Date of Increase Increase Amount Annual Reimbursements COMMENTS Little Caesar's 1 A 1,200 7% 6/1/06 5/30/21 $1,826 $21,912 $18.26 Annual 3% $4,920 Sprint 2 B 1,080 7% 2/1/16 2/1/21 $1,200 $14,400 $13.33 $4,428 Tobacco Connection C 1,167 7% 10/21/08 12/1/18 $1,400 $16,800 $14.40 $4,784 Tenant responsible for all utilities (electric, gas, water, sewer, and garbage) Exclusive Right: Restricted Use for other tenants Tenant's continued obligation to lease contingent upon Tenant's continued status as a "Preferred Sprint Retailer" or if Sprint discontinues Tenant's right to represent and sell Sprint products Tenant responsible for all utilities (electric, water, sewer, garbage, and other similar utilites) American Family Insurance D 1,040 6% 9/1/11 9/1/21 $1,300 $15,600 $18.80 $4,264 One option to extend for five (5) years State Farm Insurance 3 E 832 5% 9/1/06 12/31/19 $1,006 $12,072 $14.51 $3,411 One option to extend for three (3) years Verizon 4 F 800 5% 10/1/13 9/30/18 $1,066 $12,792 $15.99 $3,280 One option to extend for three (3) years 124 East Yakima Street Total: 6,119 38% $7,798 $93,576 $15.29 $25, East Yakima Street Dollar Tree Stores, Inc. n/a 10,080 62% 6/1/06 4/30/21 $7,560 $90,720 $9.00 $36, East Yakima Street Total: 10,080 62% $7,560 $90,720 $9.00 $36,505 Tenant responsible for all utilities (electric, gas, water, sewer, telephone, and garbage) One option to extend for five (5) years Exclusive Right: Restricted Use for other tenants Totals: 16, % $15,358 $184,296 $11.38 $61,592 Rent Roll based on September 1, August 31, Lease assigned to ELCEE, Inc., a franchise of Little Caesar's 2 Lease assigned to Evolution in Wireless, Corporate Store, a Preferred Sprint Retailer 3 Lease assigned to Collin Sharp, a Licensed Agent of State Farm Insurance 4 Lease assigned to GoWireless, Inc., an authorized Verizon Retailer *Annual Base Rent reflects rent for 9/1/17-8/31/18, including increases ^Sq. Ft. Approximate Note: Ownership does not currently charge Management fees. Leases allow for Management fees, except for Dollar Tree Stores, Inc. and Sprint. Norris & Stevens makes no representation as to the accuracy or completeness of any and all enclosed financial projections. By receipt of this package, prospective buyers acknowledge their responsibility. Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction. JEROME RETAIL CENTER / 11