47 QUEEN STREET EAST & 3 CHAPEL STREET Brampton, ON Market Positioning and Pricing Analysis

Transcription

1 & 3 CHAPEL STREET Brampton, ON Market Positioning and Pricing Analysis

2 NON- ENDORSEMENT AND DISCLAIMER NOTICE Non-Endorsements Marcus & Millichap, Brokerage ( Marcus & Millichap ) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. 47 QUEEN STREET EAST Brampton, ON

3 TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Executive Summary Investment Overview Regional Map Local Map Aerial Photo MARKET COMPARABLES 02 Sales Comparables Rent Comparables FINANCIAL ANALYSIS 03 Rent Roll Summary Rent Roll Detail Operating Statement Notes Pricing Detail MARKET OVERVIEW 04 Market Analysis Demographic Analysis

4 INVESTMENT OVERVIEW 4

5 EXECUTIVE SUMMARY VITAL DATA CURRENT PRO FORMA Price $3,150,000 CAP Rate 1.65% 7.10% Down Payment 100% / $3,150,000 Net Operating Income ($52,109) $223,716 Loan Type All Cash Net Cash Flow After Debt Service -1.65% / ($52,109) 7.1% / $223,716 Total Rentable SF 11,430 Total Return -1.65% / ($52,109) 7.10% / $223,716 Price/SF $ Year Built 1946 SUITE COUNT UNIT MIX TYPE TOTAL GLA CURRENT RENT RANGE CURRENT MONTHLY INCOME PRO FORMA MONTHLY INCOME 2 Retail 6,700 $0 $0 $10,888 1 Other User 4,730 $2,300 - $2,300 $2,300 $6,011 MAJOR EMPLOYERS EMPLOYER OFFERING SUMMARY # OF EMPLOYEES Peel Regional Police 1,979 Coca-Cola Refreshments Canada Company 1,200 Regional Municipality Of Peel, The 1,003 Rogers Business Solutions 1,000 Specialty Care Woodhall Park 1,000 Corporation Of The City Of Brampton, The 730 Caw Local Winners 545 Aecon Construction And Materials Limited 500 Frito-Lay Canada 500 Peel Health Central Office 500 Sears Canada Inc 500 DEMOGRAPHICS 1-KM 3-KM 5-KM 2015 Estimate Pop 9,687 99, ,895 5 Year Previous 8,611 99, , Estimate HH 4,882 36,040 85,054 5 Year Previous 4,124 34,487 78,076 Median HH Income $57,906 $71,388 $78,532 Per Capita Income $47,792 $37,134 $35,859 Average HH Income $79,937 $84,041 $91,126 # 5

6 INVESTMENT OVERVIEW OFFERING SUMMARY Built in 1947, the subject property represents a unique opportunity for an investor to acquire approximately 11,430 SF of retail/mixed-use space in the heart of downtown Brampton. The property is located on the busy street of Queen Street East at the signalized intersection of Queen Street East and Chapel Street. The property benefits from exposure to two major streets including 36 feet of frontage along Queen Street East and 72 feet of frontage along Chapel Street with direct access to the rear of the property. The lot size is approximately 0.22 acres. The property is currently owner occupied with Art & Technique Academy of Hair-styling and Esthetics occupying the majority of space on the main floor. A second streetfront unit is currently vacant with approximately 2,400 SF of leasable space. The second floor tenant is month-to-month with no lease in place. This represents an opportunity for an investor to renovate and lease out the space at market rents, representing considerable upside. The pro-forma Net Operating Income is $223,716 using $19.50/SF NET as the main floor street-front rents and $15.25/SF NET as the second floor rent. There are 10 on-site parking spaces accessible through Chapel Street. INVESTMENT HIGHLIGHTS Located in the heart of downtown Brampton Walking distance Go Station, new Brampton hospital, and public transit Ample parking available on-site Approximately 11,430 SF of leasable space Pro-forma Net Operating Income of $223,716 # 6

7 REGIONAL MAP 7

8 LOCAL MAP 8

9 AERIAL PHOTO 9

10 AERIAL PHOTO 10

11 PROPERTY PHOTOS 11

12 MAIN FLOOR ART & TECHNIQUE 12

13 47 QUEEN STREET EAST ART & TECHNIQUE PROPERTY PHOTOS 13

14 MAIN FLOOR VACANT SPACE 14

15 SECOND FLOOR CHURCH 15

16 MARKET COMPARABLES 16

17 8 SALES COMPARABLES MAP 47 QUEEN STREET EAST (SUBJECT) Ellen Street Queen Street West 74 Queen Street West 215 Queen Street East 256 Main Street North 300 Main Street North SALES COMPARABLES 17

18 PROPERTY 47 QUEEN STREET NAME EAST SALES COMPARABLES SALES COMPS AVG COMPARABLES Average Price Per Square Foot $600 $540 $480 $420 $360 Avg. $325 $300 $240 $180 $120 $60 $0 47 Queen Street East 2 Ellen Street Queen Street West 74 Queen Street West 215 Queen Street East 256 Main Street North 300 Main Street North 18

19 PROPERTY 47 QUEEN STREET NAME EAST MARKETING COMPARABLES TEAM SALES COMPARABLES 47 QUEEN STREET EAST 47 QUEEN STREET EAST, BRAMPTON, ONTARIO, L6W 2A7 2 ELLEN STREET 2 ELLEN STREET, BRAMPTON, ONTARIO, L6V 1J QUEEN STREET WEST 115 QUEEN STREET WEST, BRAMPTON, ONTARIO, L6Y 1M3 2 rentpropertyname1 rentpropertyname1 rentpropertyname1 Close Of Escrow 2/2/2017 Sales Price $1,100,000 Price/SF $ Year Built 1900 Close Of Escrow 12/28/2016 Sales Price $1,300,000 Price/SF $ Year Built 1969 rentpropertyaddress1 NOTES The property was approved for a Main St N addess change. The property is a house that was converted for commercial use. It is currently occupied by Body Revival Spa. rentpropertyaddress1 NOTES The property is improved with a two storey, multi tenant retail building with office/apartment space located on the second floor. rentpropertyaddress1 19

20 PROPERTY 47 QUEEN STREET NAME EAST MARKETING COMPARABLES TEAM SALES COMPARABLES 74 QUEEN STREET WEST 74 QUEEN STREET WEST, BRAMPTON, ONTARIO, L6X 4H QUEEN STREET EAST 215 QUEEN STREET EAST, BRAMPTON, ONTARIO, L6W 2B MAIN STREET NORTH 256 MAIN STREET NORTH, BRAMPTON, ONTARIO, L6V 1P4 5 rentpropertyname1 rentpropertyname1 rentpropertyname1 Close Of Escrow: 9/30/2016 Sales Price: $1,710,000 Price/SF: $ Year Built: 1958 Tenants Lease Type Close Of Escrow 8/19/2016 Sales Price $1,287,000 Price/SF $ Year Built 2010 Close Of Escrow 8/9/2016 Sales Price $800,000 Price/SF $ Year Built 1910 NOTES The property is improved with a two storey, multi tenant retail building. At the time of sale, the building was completely vacant. rentpropertyaddress1 NOTES The property is improved with a 22 storey residential condominium building with an attached 2-storey mixed-use retail building. This sale pertains to three ground floor retail units and three underground parking spaces. rentpropertyaddress1 NOTES The property is a 1 storey single unit retail building. At the time of sale the building was being used as a hair salon. rentpropertyaddress1 20

21 PROPERTY 47 QUEEN STREET NAME EAST MARKETING COMPARABLES TEAM SALES COMPARABLES 300 MAIN STREET NORTH 300 MAIN STREET NORTH, BRAMPTON, ONTARIO, L6V 1P6 6 rentpropertyname1 rentpropertyname1 rentpropertyname1 Close Of Escrow 5/2/2016 Sales Price $3,000,000 Price/SF $ Year Built 1989 NOTES The property is improved with a two storey office building. At the time of sale, the building was completely vacant. rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 21

22 8 RENT COMPARABLES MAP 47 QUEEN STREET EAST (SUBJECT) Queen Street East 202A Main Street 6 George Street South - Unit 3 45 Queen Street East 41 Queen Street East George Street South - Unit

23 PROPERTY 47 QUEEN STREET NAME EAST AVERAGE RENT - COMMERCIAL COMPARABLES $35.00 Rent/SF $ $25.00 $20.00 $ $19.61 Average $ $5.00 $ Queen Street East 202A Main Street 6 George Street South Queen Street East 41 Queen Street East 6 George Street South

24 PROPERTY 47 QUEEN STREET NAME EAST RENT MARKETING COMPARABLES TEAM 47 QUEEN STREET EAST 47 QUEEN STREET EAST, BRAMPTON, ONTARIO, L6W 2A7 60 QUEEN STREET EAST 202A 60 QUEEN STREET EAST, BRAMPTON, ONTARIO, L6V 1A MAIN STREET 36 MAIN STREET, BRAMPTON, ONTARIO, L6V 1N QUEEN STREET EAST 47 QUEEN STREET EAST 47 QUEEN STREET EAST Total GLA Available SF Rent/SF 28,252 SF 1,864 SF $9.00 Total GLA Available SF Rent/SF 6,064 SF 5,200 SF $19.23 YEAR BUILT: 1933 YEAR BUILT: 1937 NOTES Brick and Beam loft style office space. $0.50/SF annual rent escalations. NOTES Backs onto Garden Square and Brampton Rose Theatre. Building completely renovated from top to bottom. 47 QUEEN STREET EAST, BRAMPTON, ONTARIO, L6W 2A7 47 QUEEN STREET EAST, BRAMPTON, ONTARIO, L6W 2A7 47 QUEEN STREET EAST, BRAMPTON, ONTARIO, L6W 2A7 24

25 PROPERTY 47 QUEEN STREET NAME EAST RENT MARKETING COMPARABLES TEAM 6 GEORGE STREET SOUTH - UNIT 3 6 GEORGE ST S, BRAMPTON, ONTARIO, L6Y 1P QUEEN STREET EAST 45 QUEEN STREET EAST, BRAMPTON, ONTARIO, L6W 2A QUEEN STREET EAST QUEEN STREET EAST, BRAMPTON, ONTARIO, L6W 2A7 5 6 GEORGE STREET SOUTH - UNIT 3 6 GEORGE STREET SOUTH - UNIT 3 6 GEORGE STREET SOUTH - UNIT 3 Total GLA Available SF Rent/SF 6,203 SF 1,204 SF $19.50 Total GLA Available SF Rent/SF 5,000 SF 700 SF $32.60 Total GLA Available SF Rent/SF 2,000 SF 1,100 SF $19.09 YEAR BUILT:? YEAR BUILT: 1950 YEAR BUILT: 1891 NOTES Newly renovated Retail/Office space directly across from New City Hall building. NOTES Completely renovated from top to bottom with on-site parking. Exposure directly onto Queen Street, NOTES Completely renovated second floor walk up office space with onsite parking. 6 GEORGE ST S, BRAMPTON, ONTARIO, L6Y 1P3 6 GEORGE ST S, BRAMPTON, ONTARIO, L6Y 1P3 6 GEORGE ST S, BRAMPTON, ONTARIO, L6Y 1P3 25

26 PROPERTY 47 QUEEN STREET NAME EAST RENT MARKETING COMPARABLES TEAM 6 GEORGE STREET SOUTH - UNIT 1 6 GEORGE STREET SOUTH, BRAMPTON, ONTARIO, L6Y 1P3 6 6 GEORGE STREET SOUTH - UNIT 1 6 GEORGE STREET SOUTH - UNIT 1 6 GEORGE STREET SOUTH - UNIT 1 Total GLA Available SF Rent/SF 6,203 SF 1,246 SF $18.25 YEAR BUILT:? NOTES Newly renovated Retail/Office space directly across from New City Hall building. 6 GEORGE STREET SOUTH, BRAMPTON, ONTARIO, L6Y 1P3 6 GEORGE STREET SOUTH, BRAMPTON, ONTARIO, L6Y 1P3 6 GEORGE STREET SOUTH, BRAMPTON, ONTARIO, L6Y 1P3 26

27 FINANCIAL ANALYSIS 27

28 RENT ROLL SUMMARY FINANCIAL ANALYSIS 28

29 OPERATING STATEMENT FINANCIAL ANALYSIS Notes: Square Footage used for calculations (provided by owner): Retail: 6700 SF leasable Other: 4730 SF leasable 29

30 PRICING DETAIL FINANCIAL ANALYSIS 30

31 MARKET OVERVIEW 31

32 MARKET OVERVIEW TORONTO Market Highlights Highly skilled workforce Toronto boasts a well-educated workforce. The share of metro residents with a bachelor s degree exceeds the national average. Large financial sector The presence of the Toronto Exchange and Big Five banking headquarters make Toronto the financial capital of Canada. Growing high-tech industry Markham is home to Canada s highest concentration of technology firms, making it the Silicon Valley of Canada. Well-developed Industrial market Toronto has one of the largest industrial nodes in North America.. Geography The Greater Toronto Area, (GTA) is composed of the city of Toronto and the surrounding districts of Halton, Durham, York and Peel in the Canadian province of Ontario. The southern border of the metro is formed by Lake Ontario. Large portions of the Toronto metro remain undeveloped in the form of woodlands and agricultural pastures. Additionally, development is limited along conservation-protected lands known as the Greenbelt, which includes the areas of Oak Ridges Moraine, Rogue Park and the Niagara Escarpment just outside the city. Toronto Metro

33 MARKET OVERVIEW TORONTO Metro The Greater Toronto Area is home to more than 6.6 million residents and is one of North America s most populated metropolitan areas. The city of Toronto itself, with more than 2.8 million people, is Canada s largest city. The city is expected to reach more than 2.9 million inhabitants by Infrastructure The GTA contains a vast and widely used freeway system, composed of the King s Highways and multiple municipal expressways. As an economic powerhouse with a large manufacturing base, the metro is also a major center for rail and freight distribution. The Canadian National Railway and Canadian Pacific Railway both operate intermodal facilities in the area. The Port of Toronto is the region s major port and a hub for freight transportation. The facility handles more than 1.5 million tons of cargo every year. Air transportation is provided by the Toronto Pearson International Airport, which offers service to more than 40 million passengers annually. Other airports nearby include the Billy Bishop Island Airport, the Buttonville Airport (Markham) and the Hamilton International Airport. In addition, a new airport has been proposed in Pickering. The region s multiple independent public transportation providers are in the process of consolidating under the banner of Metrolinx. From subways to intraregional rail service, the merged Metrolinx system will allow passengers to traverse throughout Greater Toronto and beyond with a simplified and streamlined fare structure. Largest Cities in Metro by Population Toronto 2,807,300 Peel 1,432,500 York 1,146,400 Durham 663,700 Halton 550,000 Airports: Toronto Pearson International Airport, Billy Bishop Island Airport, Buttonville Airport, Hamilton International Airport Major Roadways Highways 400, 401, 403, 404, 407 ETR, 409, 410 and 427 Queen Elizabeth Way, Gardiner Expressway Rail Freight- Canadian National Railway; Canadian Pacific Railway Passenger-Metrolinx, TTC, LRT, Via Train Go Transit Ports Port of Toronto The Toronto GTA is: 110 km from Kitchener-Waterloo 450 km from Ottawa 540 km from Montreal 760 km from New York City, U.S. 840 km from Chicago, U.S. * Forecast Sources: Marcus & Millichap Research Services; Environics

34 MARKET OVERVIEW TORONTO Economy The Greater Toronto Area boasts Canada s most vibrant economy, containing approximately 40 percent of all Canadian business headquarters and producing roughly 20 percent of the entire nation s GDP. The GTA provides a mixture of service, retail, logistics, distribution and manufacturing industries, which combine to make a well-diversified economy. Toronto s financial sector has a significant impact on the local economy. The Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce, collectively known as Canada s Big Five, all house their corporate headquarters in Toronto s Financial District. The district is also home to the Toronto Stock Exchange where the S&P/TSX Composite Index is traded. These banks and financial institutions provide crucial venture capital to the region s growing high-tech sector. The municipality of Markham contains Canada s highest concentration of technology companies and is often referred to as Canada s High-Tech Capital. Toronto hosts North America s second-largest automotive industry, following Detroit. Ford, Chrysler and General Motors operate large manufacturing facilities in the area, while Toyota and Honda have fabrication plants nearby. The media industry is another economic driver with firms such as McClelland & Stewart, Rogers Communications and Cookie Jar Group. Port of Toronto Quick Facts Ocean-Going Ships Recreational Boaters 7,000 Cruise Ships 15 Cruise Passengers 5,400 Total Cargo Tonnage (million metric) 1.6 Warehouse space (sq. ft.) 225,00 GMP = Gross Metropolitan Product * Forecast ^ Greater Toronto Area Sources: Marcus & Millichap Research Services; Environics; PortsToronto

35 MARKET OVERVIEW TORONTO Labor The GTA provides more than 3.7 million jobs to a highly diverse population of workers. Local employment is expected to expand 1.0 percent annually over the next five years, for a total of approximately 190,100 new positions. The rate of job growth will outpace the Canadian and Ontario average, which are forecast to expand by 0.8 and 0.7 percent each year through 2020, respectively. As one of Canada s primary economic centers with a thriving consumer base, jobs in sales and service comprise the largest share of employment. This sector contributes 24 percent of all payrolls in the region, with nearly 862,000 positions. The large financial industry underpins the business and finance sector, which provides 17 percent of jobs. Employment in health and sciences accounts for another 14 percent, while the education, government and human services, and management sectors each deliver 12 percent of the GTA s jobs. * Forecast ^ Greater Toronto Area Sources: Marcus & Millichap Research Services; Environics

36 MARKET OVERVIEW TORONTO Employers Toronto is home to a number of Fortune 500 headquarters, including Manulife Financial, Royal Bank of Canada, George Weston, Toronto-Dominion Bank, Bank of Nova Scotia, Magna International, Onex and Sun Life Financial. Greater Toronto contains more than 287,800 individual businesses across a variety of employment sectors. With approximately 633,400 jobs in Toronto s business and finance sector, Canada s Big Five banking institutions provide a large number of employment opportunities in the region. Two of the world s largest life insurance providers, Sun Life Financial and Manulife Financial, call the metro home. The municipality of Markham contains nearly 900 individual technology companies, which provide numerous high-quality positions. In addition to various startups and small firms, technology companies such as IBM, Hewlett-Packard and Oracle also offer significant employment. The automotive industry also supports a sizable number of jobs in the GTA. While Ford, Chrysler and General Motors fabrication facilities are among the top employers in this sector, a number of automobile parts manufacturers have deemed Toronto their headquarters of Canadian operations. With education and health services providing a major portion of service sector employment, significant employers in this segment include the Sunnybrook Health Sciences Centre, Toronto General Hospital, University of Toronto and York University. Major Employers Air Canada Inc. Bank of Nova Scotia Magna International Canada Post Corp. Canadian Imperial Bank of Commerce Royal Bank of Canada Toronto Transit Commission Bank of Montreal Ford Motor Company of Canada Ltd. IBM Canada Ltd. * Forecast ^ Greater Toronto Area Sources: Marcus & Millichap Research Services; Environics

37 MARKET OVERVIEW TORONTO Demographics The GTA contains a population of approximately 6.6 million people and is forecast to grow at an average pace of 1.3 percent annually through Over the past five years, the metropolitan area gained approximately 208,700 new residents and will add an additional 235,000 people by With roughly 57 percent of area residents falling within the working ages of 25 to 64, Toronto boasts a robust labor force. The median age in the metro is 39.0 years, younger than the national median of Over the next five years, a large swell of the population is expected to enter retirement. Residents in the 65 and older age cohort are forecast to grow significantly during this period. As the primary economic center of Canada, Toronto residents tend to be more educated and earn higher salaries than at the national level. Approximately 32 percent of Toronto s population age 25 and older has attained a bachelor s degree, well ahead of the 28 percent in all of Canada. Among the many local institutions of higher learning are the University of Toronto, Ryerson University and York University. Higher educational attainment supports Toronto s median household income of $74,000, which compares favorably to the national figure of $66,800. Incomes in the GTA are expected to rise through Higher incomes have allowed roughly 70 percent of area residents to afford to own their own homes. * Forecast ^ Greater Toronto Area Sources: Marcus & Millichap Research Services; Environics

38 MARKET OVERVIEW TORONTO Quality of Life Toronto offers a multitude of recreational and cultural opportunities. In the summertime, one may stroll the shores of Lake Ontario or take advantage of the region s numerous islands and parks. The nearby Scarborough Bluffs offer striking outdoor geological formations. During colder months, a variety of ski resorts within a few hours drive of Toronto provide many winter sport options. Regardless of the time of year, sports enthusiasts will find a wide diversity of athletic entertainment. Toronto boasts seven professional sports teams, representing six different sports. The Hockey Hall of Fame is located in Toronto. The city of Toronto offers an impressive array of cultural activities. The Toronto Symphony Orchestra and Canadian Opera Company are both based out of Toronto, and live performances can be found at the Famous People Players Dinner Theatre, the Princess of Wales Theatre, the Royal Conservatory of Music and other locations. In addition, the Greater Toronto Area also hosts a wide network of museums and art galleries, including the Art Gallery of Ontario and the Royal Ontario Museum. The Toronto Zoo and Ripley s Aquarium of Canada are located in the city of Toronto, providing entertainment options for children. The Centreville Amusement Park on Centre Island also makes an ideal destination. Other notable Toronto attractions include the CN Tower, Rogers Center and the Toronto International Film Festival. Sources: Marcus & Millichap Research Services; Canadian Real Estate Association; Statistics Canada

39 PROPERTY 47 QUEEN STREET NAME EAST MARKETING DEMOGRAPHICS TEAM Population In 2016, the population in your selected geography was 9,687. The population has changed by percent since It is estimated that the population in your area will be 9,664 in 2020, which represents a change of percent from The current population is percent male and percent female. The median age of the population in your area is 41.99, compare this to the Canada average, which is The population density in your area is 9, people per square kilometer. Race and Ethnicity The 2016 population by visible minority status of your selected area is as follows: 13.62% Asian, 12.44% Black, 2.39% Latin American, 0.63% Arab, 1.34% multi or other and 70.20% not visible. Compare these to Canada averages which are: 15.24% Asian, 3.10% Black, 1.33% Latin American, 1.42% Arab, 0.95% multi or other and 79.38% not visible. Households There are currently 4,882 households in your selected geography. The number of households has changed by percent since It is estimated that the number of households in your area will be 5,066 in 2020, which represents a change of 3.77 percent from The average household size in your area is 1.97 persons. Housing In 2016, there were 1,842 owner-occupied and 2,282 renter-occupied dwellings in your area. In 2013, this changed to 2,150 owneroccupied and 2,731 renter-occupied dwellings in your area. It is estimated that in 2020, there will be 2,218 owner-occupied and 2,847 renter-occupied dwellings in your area. Income In 2016, the median household income for your selected geography is $57,906, compare this to the Canada average which is currently $66,791. The median household income for your area has changed by 5 percent since It is estimated that the median household income in your area will be $61,642 in 2020, which represents a change of 6.45 percent from The 2016 per capita income in your area is $79,937, compare this to the Canada average, which is $89,484. The 2016 average household income in your area is $79,937, compare this to the Canada average, which is $89,484. Employment In 2016, there were 15,215 employees in your selected area, this is also known as the daytime population. Source: 2016 Experian 39

40 PRESENTED BY Varun Mahimker Sales Representative Toronto Office Tel: (416) Fax: (416) License: Ontario