JUNCTION VIEW RETAIL CENTER

Transcription

1 JUNCTION VIEW RETAIL CENTER Offering Memorandum Presented by:

2 NON-ENDORSEMENT NOTICE Marcus & Millichap Real Estate Investment Services, Inc. ( M&M ) 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 M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. 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 Y MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

3 JUNCTION VIEW RETAIL CENTER Ogden, Utah presented by Presented by: OFFICES NATIONWIDE Investment Sales: Matthew Porter Senior Associate SALT LAKE CITY Tel: (801) Fax: (801) License: UT SA00

4 Executive Summary JUNCTION VIEW RETAIL CENTER 339 East 2250 South Ogden, UT Major Tenants TENANT GLA LEASE EXP Deseret Book 7,477 SF 5/2019 Offering Summary Offering Price $4,100,000 Down Payment 30% / $1,230,000 Total Gross Leasable Area (GLA) 16,141 SF Price/SF $ Cap Rate - Current 6.43% Year Built 2008 Lot Size 17,466 SF Expenses Current Per SF Real Estate Taxes $43,640 $2.70 Insurance $4,412 $0.27 CAM Utilities $38,259 $2.37 Repairs & Maintenance $11,184 $0.69 Contract Services $2,369 $0.15 Internet $976 $0.06 TOTAL CAM $52,815 $3.27 Management Fee $9,310 $0.58 TOTAL EXPENSES $110,177 $6.83 T E N A N T Blue Lemon 3,950 SF 9/2024 Grand View Reception Center 4,102 SF 2/2024 Shared CA Restroom/Hallway 612 SF 9/2024 TENAN Financing Proposed Financing Existing Financing Loan Type Loan Amount Proposed Financing Loan Type Interest Rate Amorization Debt Coverage Ratio Free and Clear $2,870,000 Proposed New 4.75% 25 Years 1.34 Annualized Operating Data INCOME CURRENT PER SF Base Rent / Occupied Space $263,497 $16.32 Gross Potential Rent $263,497 $16.32 Expense Reimbursements $110,177 $6.83 Gross Potential Income $373,674 $21.92 Total Return 6.43 % / $263,497 $15.45 Effective Gross Income $373,674 $23.15 Total Expenses $110,177 $6.83 Net Operating Income $263,497 $16.32 Reserves / Replacements $3,410 $0.20 4

5 Financial Summary INCOME AND EXPENSES CURRENT PER SF Base Rent / Occupied Space $263,497 $16.32 GROSS POTENTIAL RENT $263,497 $16.32 Expense Reimbursements Real Estate $43,640 $2.70 Taxes Total Expense Reimbursements $110,177 $6.83 GROSS POTENTIAL INCOME $373,674 $23.15 EFFECTIVE GROSS INCOME $373,674 $23.15 Total Expenses $110,177 $6.83 NET OPERATING INCOME $263,497 $16.32 Reserves / Replacements $3,410 $0.20 NET CASH FLOW BEFORE DEBT SERVICE $263,497 $16.32 Blue Lemon: 24.47% Cash Flow Analysis Tenants (% of GLA) Reserves/Replacements ($3,410) Net Cash Flow Before Debt Service $263,497 Net Cash Flow After Debt Service $67,149 Return % 10.45% Total Return $128,496 Total Return % 10.45% Shared CA Restroom/Hallway: 3.79% Grand View Reception Center: 25.41% Deseret Book: 46.32% 5

6 Investment Overview The subject property, is a 16,141-square foot retail center located beneath 81,000 square feet (40 Units) of Multi-Family Apartments on 2250 S and just west of Washington Blvd in Ogden, UT. The building is well located with traffic counts exceeding 31,000 vehicles on Washington Blvd. The property enjoys a population of 145,000 within a five-mile radius and an average household income exceeding $58,000 per year. The current population and income has been steadily increasing since 2000 and is projected to keep increasing. The tenants in the center include, Deseret Book, Blue Lemon, and the Grand View Reception Center. Deseret Book which occupies 43 percent of the center is owned and operated by an LDS Church subsidiary. The property is only one block west of the LDS owned Ogden Temple. The property's close proximity to the Temple ensures that Deseret Book will be a long term tenant. The remaining two tenants match perfectly with the many weddings and events that happen at the Temple and in the surrounding area. The tenants adjacent to the property include a Hilton Hotel, Megaplex 13, Costa Vida, Indoor Skydiving, Surfing and Rock Climbing, Fat Cats, Gold s Gym, Paul Mitchell Hair School, The Missionary Store, Iggy s Sports Grill and many more. This property provides a strong, stable cash flow to any investor looking to obtain an elite multi-tenant retail building with great tenants in a major retail and multifamily area. High in the mountain desert of northern Utah, nestled at the base of the Wasatch range between the Ogden and Weber rivers, lies the city of Ogden. The Junction s pecializes i n e ntertainment f rom m ovies t o restaurants t o i ndoor surfing and climbing; Historic 25th Street is dubbed the most exciting street in Utah for a reason, featuring a comedy club, boutiques and an eclectic selection of bars and restaurants. The Treehouse Museum, Dinosaur Park, Nature Center, and Union Station offer exhibits and theatrics that make learning fun; and the Peery s Egyptian Theater, Eccles Arts Center, and Ogden Symphony Ballet offer top-notch performances year round. Investment Highlights 16,141 Square Foot Retail Center Below 40 Apartments Units Located in Completely Renovated Downtown Ogden Within One Block of LDS Ogden Temple High Traffic Area with over 31,000 Vehicles Per Day Adjacent to Hilton Garden Inn, Megaplex 13, Salomon Center (Indoor Skydiving, Rock Climbing, Surfing.) Population Exceeds 145,000 in a 5-Mile Radius Ogden is 38 Miles North of Salt Lake City 6

7 Regional Map Subject Property 7

8 Local Map Subject Property 8

9 Retail Market LDS History Center Treehouse Museum Ogden Utah Temple Grandview Reception Center Subject Property Salomon Center Weber State Downtown Store Lindquist Field The Missionary Store 9

10 Rent Roll As of December, 2017 for 16,141 Square Feet TENANT NAME TYPE & SUITE NUMBER LEASE EXPIRATION FLOOR SF BLDG SHARE RENT PER YEAR PER SF LEASE CHANGES OPTIONS LEASE TYPE Deseret Book Suite 1 7,477 SF $118, / % $ % Annually 1,5 - Year NNN Blue Lemon Suite 2 3,950 SF $65, / % $ % Annually 3,5 - Year NNN Grand View Reception Center Suite 3 4,102 SF $69, / % $ % Annually 2,5 - Year NNN Shared CA Restroom/Hallway Suite SF $10, / % $ % Annually 3,5 - Year NNN Total Occupied Square Feet 16,141 SF $263,

11 Lease Expiration Schedule Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 For The Year Ending JAN-2017 JAN-2018 JAN-2019 JAN-2020 JAN-2021 JAN-2022 JAN-2023 JAN-2024 JAN-2025 JAN-2026 Tenants Expiring Deseret Book Blue Lemon Share CA Restroom/Hall Grand View Reception Center Total Number of Tenants 1 3 Total Square Feet 7,477 8,664 Total Percentage 46.3% 53.7% Cumulative Percentage 46.3% 100.0% 11

12 JUnction view Retail center Location Overview The Ogden-Clearfield metro of northern Utah, located between the Wasatch Mountains and the Great Salt Lake, consists of Weber, Davis and Morgan counties. The Ogden and Weber rivers traverse the area, flowing into the Great Salt Lake. The metro contains approximately 635,300 residents, with Ogden as the largest city. Strategically located for highway, rail and air access, Ogden sits at the crossroads of the CANAMEX shipping corridor, with Interstates 15 and 84 intersecting in the city. Ogden-Hinckley Airport is the second-largest airport in Utah, and Salt Lake City International Airport is 35 miles south. Ogden is located along the transcontinental railroad system and remains a national hub for east-west rail traffic. The Utah Transit Authority offers commuter rail and bus service throughout the Wasatch Front. Ogden s roots in the railroad industry have expanded into military and manufacturing. Hill Air Force Base, home of the Ogden Air Logistics Center, is a major driver of the economy as the area s largest employer. The center offers engineering and logistics management for aircrafts worldwide. Another significant location in the metro is the redeveloped Business Depot Ogden, which provides 6.5 million square feet of industrial and office space to tenants including Lofthouse Cookies, ICON Fitness and Kenco Logistic Services. The expanding local economy will help push population growth to an annual average of 1.4 percent for the next five years. The median household income, currently $67,000 per year, is roughly $10,900 above the U.S. median and will exceed $76,000 in Share of Total Employment Metro Employment: 239,300 Government 21% Trade, Transportation & Utilities 18% Manufacturing 13% Professional and Business Services 12% Construction 7% Financial Activities 4% Other Services 3% Information 1% Major Employers HIll Air Force Base U.S. Government Lifetime Products Inc. Weber State University Lagoon Corp. Inc. Ogden Regional Medical Center McKay-Dee Hospital Parker Hannifin Corp. Convergys Autoliv 1 12

13 JUnction view Retail center Demographic Summary POPULATION 1-MILE 3-MILES 5-MILES 2000 Population 14,327 72, , Population 13,297 75, , Population 13,754 77, , Population 13,809 79, ,461 HOUSEHOLDS 1-MILE 3-MILES 5-MILES 2000 Households 4,789 25,884 44, Households 5,053 27,357 50, Households 5,297 28,230 52, Households 5,447 28,962 54, Average HH Size Daytime Population 12,553 46,792 68, Owner Occupied Housing Units 27.76% 55.00% 63.08% 2000 Renter Occupied Housing Units 59.11% 36.79% 30.11% 2000 Vacant 13.12% 8.21% 6.80% 2014 Owner Occupied Housing Units 23.77% 52.53% 61.44% 2014 Renter Occupied Housing Units 76.23% 47.47% 38.56% 2014 Vacant 13.10% 6.80% 4.70% 2019 Owner Occupied Housing Units 22.83% 52.11% 61.33% 2019 Renter Occupied Housing Units 77.17% 47.89% 38.67% 2019 Vacant 13.26% 6.59% 4.38% INCOME 1-MILE 3-MILES 5-MILES $0 - $ 14, % 18.4% 13.5% $15,000 - $24, % 14.5% 11.9% $25,000 - $34, % 12.7% 11.3% $35,000 - $49, % 17.6% 17.3% $50,000 - $74, % 20.5% 22.2% $75,000 - $99, % 8.8% 11.5% $100,000 - $124, % 3.8% 5.9% $125,000 - $149, % 1.7% 2.9% $150,000 - $200, % 1.1% 2.1% $200,000 to $249, % 0.4% 0.7% $250, % 0.5% 0.9% 2014 Median HH Income $23,647 $38,520 $46, Per Capita Income $14,049 $17,699 $21, Average HH Income $35,260 $48,261 $58,

14 JUnction view Retail center Demographic Summary Geography: 5 Miles Population In 2012, the population in your selected geography was 85,710. The population has changed by 18.87% since It is estimated that the population in your area will be 91,587 five years from now, which represents a change of 6.85% from the current year. The current population is 48.8% male and 51.1% female. The median age of the population in your area is 38.0, compare this to the U.S. average which is The population density in your area is people per square mile. Households There are currently 33,178 households in your selected geography. The number of households has changed by 19.35% since It is estimated that the number of households in your area will be 34,791 five years from now, which represents a change of 4.86% from the current year. The average household size in your area is 2.54 persons. Income In 2012, the median household income for your selected geography is $48,398, compare this to the U.S. average which is currently $53,620. The median household income for your area has changed by 16.66% since It is estimated that the median household income in your area will be $53,270 five years from now, which represents a change of 10.06% from the current year. Race and Ethnicity The current year racial makeup of your selected area is as follows: 86.73% White, 0.63% African American, 0.99% Native American and 1.59% Asian/ Pacific Islander. Compare these to U.S. averages which are: 72.40% White, 12.60% African American, 0.95% Native American and 4.93% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 10.41% of the current year population in your selected area. Compare this to the U.S. average of 16.90%. Housing The median housing value in your area was $139,532 in 2000, compare this to the U.S. average of $110,796 for the same year. In 2000, there were 18,189 owner occupied housing units in your area and there were 9,609 renter occupied housing units in your area. The median rent at the time was $525. Employment In 2012, there are 43,999 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 55.9% of employees are employed in white-collar occupations in this geography, and 44.0% are employed in blue-collar occupations. In 2012, unemployment in this area is 14.08%. In 2000, the median time traveled to work was 16.4 minutes. The current year per capita income in your area is $24,018, compare this to the U.S. average, which is $28,713. The current year average household income in your area is $61,103, compare this to the U.S. average which is $73,458. Demographic data 2015 by Experian/Applied Geographic Solutions. 3 14

15 JUNCTION VIEW RETAIL CENTER Ogden, Utah presented by Presented by: OFFICES NATIONWIDE Investment Sales: Matthew Porter Senior Associate SALT LAKE CITY Tel: (801) Fax: (801) License: UT SA00