$2,116,000 Price 7.75% CAP

Transcription

1 Salem Village Annex 4621 South Loop 289 Lubbock, TX Offered Exclusively By: Scott Womack 806) Offered Exclusively By: Scott Womack (806) High Visibility Location in South Lubbock Recent Updates Throughout CBCCapitalAdvisors.com $2,116,000 Price 7.75% CAP Tenants Include Berkshire Hathaway Real Estate, Terra Bella Hair Salon and Piano Gallery Multi-Tenant Retail Building $ per sq. ft. (below replacement cost)

2 MULTI-TENANT INVESTMENT PROPERTY DISCLAIMER Coldwell Banker Commercial hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Coldwell Banker Commercial has not and will not verify any of this information, nor has Coldwell Banker Commercial conducted any investigation regarding these matters. Coldwell Banker Commercial makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a multi-tenant property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Coldwell Banker Commercial expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a multi-tenant property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any single-tenant property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newlyconstructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Coldwell Banker Commercial and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property. CBCCapitalAdvisors.com

3 Property and Investment Highlights Strong Commercial Corridor Located in close proximity to other shopping centers, office buildings, restaurants, hotels, multi-family development and high density single family residential. Retailers in a one mile radius of the center include Stein Mart, Mardel, Tuesday Morning, Hobby Lobby, Michaels, PetSmart, Old Navy, Shoe Carnival, Specs, Office Max, TJ Maxx, Bed Bath & Beyond. The 1.7 million sq. ft. South Plains Mall is located one mile to the west of subject property. The property fronts South Loop 289 between Quaker Avenue and Slide Road with tens of thousands of vehicles passing daily. Actual Location CBCCapitalAdvisors.com

4 Aerial Photo CBCCapitalAdvisors.com

5 Aerial Photo CBCCapitalAdvisors.com

6 Executive Summary PROPERTY OVERVIEW: Address: 4621 S. Loop 289 Lubbock, TX Lease Structure: Type of Ownership: Year Built: Building Size: Lot Size: Parking Spaces: Full Service Fee Simple 1985 / All Tenant Space Updated 15,000 Rentable Sq. Ft. Approx Acres Approx. 70 Approx. plus cross parking easement with adjacent property owner Occupancy: 100% INVESTMENT OVERVIEW: Sales Price: $2,116,000 CAP Rate: NOI: 7.75% (at 95% occupancy) $164,058 (at 95% occupancy) Price per Sq. Ft: $ DEMOGRAPHICS: 1 Mile 3 Mile 5 Mile Population: 13, , ,234 Households: 5,815 43,808 78,143 Avg. HH Income: $77,836 $68,931 $63,926 CBCCapitalAdvisors.com

7 Operating History and Broker s Proforma NET LEASED INVESTMENT GROUP Scott Womack, the listing broker for the sale of the property, has provided property management services for the asset since the current owners purchase of the property in December A full accounting of all income and expense information for the asset can be provided during the buyer s due diligence period. Description Proforma PSF 15,000 sf EARNED REVENUE Base Rent $180,192 $182,852 $186,480 $12.43 Late Fees $299 $0.00 TOTAL EARNED REVENUE $180,491 $182,852 $186,480 $12.43 REIMBURSEMENTS Property Tax Reimb $27,808 $27,808 $27,997 $1.86 Insurance Reimbursement $4,967 $5,272 $5,561 $.037 CAM Reimbursement $21,235 $21,504 $27,998 $1.87 TOTAL REIMBURSEMENTS $54,010 $54,584 $61,556 $4.10 TOTAL REVENUE $234,501 $237,436 $248,036 $16.54 Less Vacancy & Credit (5%) $12,402 $0.83 TOTAL SCHEDULED REVENUE $234,501 $237,436 $235,634 $15.70 CBCCapitalAdvisors.com

8 Operating History and Broker s Proforma NET LEASED INVESTMENT GROUP Description Proforma PSF OPERATING EXPENSES CAM Expenses $22,608 $19,795 $27,687 $1.84 Administrative Expenses $9,950 $10,068 $10,389 $0.69 Non Pass-Thru Maint $9,431 $0.00 $0.00 $0.00 Property Taxes $27,124 $27,030 $28,000 $1.87 Property Insurance $4,822 $5,285 $5,500 $0.37 TOTAL OPERATING EXPENSES $73,936 $62,178 $71,576 $4.77 NET OPERATING INCOME $160,565 $175,258 $164,058 $10.94 CBCCapitalAdvisors.com

9 Assumptions and Return Analysis NET LEASED INVESTMENT GROUP FINANCING ASSUMPTIONS: LTV: 80% Interest Rate: 5.00% Amortization: 25 years Term: Fixed for 5 years PURCHASE ASSUMPTIONS: Price: $2,325,000 Price Per Sq. Ft. $ NOI: $164,058 Down Payment: 20% Management Fee: 4% Mortgage Payment 25-year amortization; 5.5% Amount Financed (80%) $1,692,800 Equity (20%) $423,200 Monthly / Annual Payment $10,395 / $124,740 Net Operating Income $164,058 Annual Mortgage Payment $124,740 Cash Flow After Debt Service $39,318 CAP Rate 7.75% Cash on Cash 9.29% Debt Coverage Ratio 1.32 CBCCapitalAdvisors.com

10 Site Plan NET LEASED INVESTMENT GROUP CBCCapitalAdvisors.com

11 Lubbock, Texas Lubbock, Texas has long been known as the hub of the South Plains of Texas. Lubbock is a thriving city of over 240,000 people with a MSA exceeding 300,000 people. Lubbock has a strong, diverse economy that is based on agriculture, health care, manufacturing, wholesale and retail trade, and education. Lubbock is home to five institutions of higher learning, showcased by Texas Tech University, which currently serves over 50,000 students annually. Lubbock s trade area population of 600,000+ people consists of a 26- county region of West Texas and eastern New Mexico. Lubbock also serves as a medical center for 77 counties with four major medical centers offering the most comprehensive health care services between Dallas/Fort Worth and Phoenix. Lubbock Preston Smith International Airport, an official U.S. Customs Port of Entry, offers three major commercial air carriers as well as a FedEx distribution center. Tyler Rose Garden Tyler Rose Garden CBCCapitalAdvisors.com

12 Property Location Map CBCCapitalAdvisors.com