Offering Memorandum. MOUNT ST. MARY'S MEDICAL OFFICE 4515 Military Rd Niagara Falls, NY 14305

Transcription

1 Offering Memorandum 4515 Military Rd Niagara Falls, NY

2 NON-ENDORSEMENT AND DISCLAIMER NOTICE Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â 2017 Marcus & Millichap. All rights reserved. Non-Endorsement Notice 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. Niagara Falls, NY ACT ID Y

3 TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Offering Summary Regional Map Local Map Aerial Photo FINANCIAL ANALYSIS 02 Tenant Summary Lease Expiration Summary Operating Statement Notes Pricing Detail Acquisition Financing MARKET OVERVIEW 03 Market Analysis Demographic Analysis 3

4 INVESTMENT OVERVIEW 4

5 OFFERING SUMMARY EXECUTIVE SUMMARY VITAL DATA CURRENT Price $1,054,000 Loan Amount Loan Type Interest Rate / Amortization Net Operating Income Financed Net Cash Flow After Debt Service 14.21% / $37,451 Total Return 23.68% / $62,402 11,700 Price/SF 1972 Lot Size 0.87 acre(s) THE OFFERING Property Mount St. Mary's Medical Office Price Property Address Assessors Parcel Number Zoning $1,375, Military Rd,Niagara Falls,NY & COMMERCIAL $97,464 EXPENSES $90.09 Year Built 9.25% $790, % / 20 Years Rentable SF CAP Rate CURRENT Real Estate Taxes $/SF $14,696 Insurance $2,174 CAM/Utilities $5,670 Management Fees $4,800 Total Expenses $27,340 CONSTRUCTION Foundation Concrete Slab Exterior SITE DESCRIPTION Number of Floors Year Built/Renovated Rentable Square Feet Ownership 1 Fee Simple Lot Size 0.87 acre(s) Parking 1972 Masonry Parking Surface Asphalt Roof Rubber Membrane DEMOGRAPHICS 1-Miles 3-Miles 5-Miles 2016 Estimate Pop 1,928 36,890 74, Surface Spaces are available 2016 Census Pop 1,931 37,106 75,056 Ratio of 5.10/1,000 SF 2016 Estimate HH ,176 32, Census HH ,364 32,822 Median HH Income $54,356 $35,566 $39,135 Per Capita Income $27,697 $22,001 $23,850 Average HH Income $65,075 $52,117 $54,054 Parking Ratio Topography Intersection/Cross Street Flat Military Road UTILITIES Gas Municipal Electric Municipal Water Municipal Sewer Municipal #5

6 OFFERING SUMMARY INVESTMENT OVERVIEW The subject property is a two-tenant medical facility in the border city of Niagara Falls. Tenants include Mount St. Marys Hospital, the main healthcare provider, and emergency care provider of Western New York. With the main hospital campus 2 miles away. This facility caters to out-patient care and other services that do not require hospital facilitation. With the growing amount of healthcare demand and medical out-sourcing, this investment secures steady cash flow for an investor seeking minimal management and strong, long-term tenancy. Subject property has ease of access to I-190 from Buffalo to Canada. Located less than 1 mile from Niagara University and fantastic frontage on Military Rd. Located on retail/office corridor with good residential backup. Fashion Outlets of Niagara Falls USA is within minutes down Military Rd. Convenience of Rite Aid Pharmacy almost next door INVESTMENT HIGHLIGHTS 10,900 - square foot, off campus MOB 77% of the project is occupied by AA credit rated Ascension Health 100% Leased, Two Tenant Medical Facility 3 miles from World Famous Niagara Falls Ample Parking 6

7 PROPERTY PHOTO 7

8 AERIAL PHOTO 8

9 LOCAL MAP 9

10 REGIONAL MAP 10

11 FINANCIAL ANALYSIS 11

12 OPERATING STATEMENT FINANCIAL ANALYSIS 12

13 TENANT SUMMARY FINANCIAL ANALYSIS 13

14 ACQUISITION FINANCING MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIES WHY MMCC? MMCC our fully integrated, dedicated financing arm is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms. We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options. Our dedicated, knowledgeable experts understand the challenges of financing and work tirelessly to resolve all potential issues to the benefit of our clients. Optimum financing solutions to enhance value Our ability to enhance buyer pool by expanding finance options Our ability to enhance seller control Through buyer qualification support Our ability to manage buyers finance expectations Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings Closed 1,651 debt and equity financings in 2016 National platform operating within the firm s brokerage offices $5.1 billion total national volume in 2016 Access to more capital sources than any other firm in the industry By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file 14

15 MARKET OVERVIEW 15

16 MARKET OVERVIEW BUFFALO OVERVIEW Containing the popular tourist attraction Niagara Falls and located less than 100 miles from Toronto, the Buffalo metro consists of Erie and METRO HIGHLIGHTS Niagara counties, with the city of Buffalo representing the county seat of Erie County. The metro generates a significant portion of revenue through CENTRALIZED LOCATION tourism, while the economy also specializes in financial services, healthcare and retailing. The market lies within 500 miles of 40 percent of Three certified Foreign Trade Zones and a centralized location to major metropolitan areas provide a base of operations for manufacturing and logistics. the U.S. population. ADVANCED MANUFACTURING BASE No state income tax for manufacturing companies has supported a growing advanced manufacturing base, with over 66,000 skilled workers in the metro. WORLD-CLASS LIFE-SCIENCES RESEARCH Roughly 15 percent of local graduates receive degrees in life sciences, making it the fourth-ranked metro on a per capita basis in the nation. ECONOMY Comprehensive healthcare systems companies Kaleida Health and Catholic Health employ nearly 20,000 people combined, underscoring the vast healthcare diagnostics and research employment base. M&T Bank, the 17th largest commercial bank in the nation, is headquartered in Buffalo. The firm employs more than 7,500 workers in the metro. The Buffalo Niagara Medical Campus, a 120-plus acre collaborative research park in downtown Buffalo, provides space for research and development for more than 75 companies in biotech and life sciences. The metro is the leading dairy producer in the state, while New York is the third largest dairy-producing state in the nation. DEMOGRAPHICS 2016 POPULATION: 2016 HOUSEHOLDS: 2016 MEDIAN AGE: Growth *: Growth *: U.S. Median: 1.1M 0.1% 473K 1% MEDIAN HOUSEHOLD INCOME: $52,300 U.S. Median: $57,200 * Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody s Analytics; U.S. Census Bureau 16

17 PROPERTY MOUNT ST. NAME MARY'S MEDICAL OFFICE DEMOGRAPHICS MARKETING TEAM Created on October 2017 POPULATION 2021 Projection Total Population 1 Miles 3 Miles 5 Miles 1,898 36,111 73, Estimate Total Population 1,928 36,890 74, Census Total Population 1,931 37,106 75, Census Total Population 2,091 40,123 83,357 Current Daytime Population 2016 Estimate 1,534 36,801 76,625 HOUSEHOLDS 2021 Projection 1 Miles 3 Miles 5 Miles Total Households POPULATION PROFILE Population By Age 2016 Estimate Total Population 1 Miles 3 Miles 5 Miles 1,928 36,890 74,356 Under % 25.18% 23.20% 20 to 34 Years 16.07% 20.71% 19.57% 35 to 49 Years 18.71% 16.44% 17.13% 50 to 59 Years 16.35% 15.08% 15.67% 60 to 64 Years 7.13% 5.85% 6.47% 65 to 69 Years 7.71% 4.61% 5.01% 70 to 74 Years 5.44% 3.67% 3.93% Age % 8.46% 9.02% Median Age Population by Gender ,980 32, Estimate 2016 Estimate Total Population 1,928 36,890 74,356 Male Population 49.54% 47.10% 47.76% Female Population 50.46% 52.90% 52.24% 1 Miles 3 Miles 5 Miles 18.30% 17.31% 16.55% $3,704 $2,730 $2, % 71.68% 71.87% Total Households ,176 32,319 Average (Mean) Household Size ,364 32, ,008 34,638 1 Miles 3 Miles 5 Miles Medical Services $784 $628 $648 $200,000 or More 1.68% 1.74% 1.76% Percent of Total 15.47% 16.48% 16.42% $150,000 - $199, % 2.00% 1.83% Medical Supplies $147 $122 $125 $100,000 - $149, % 7.09% 7.83% Percent of Total 2.90% 3.20% 3.17% 2010 Census Total Households Percent of Total 2000 Census Total Households HOUSEHOLDS BY INCOME 2016 Estimate AVERAGE HEALTH CARE EXPENDITURE 2016 Estimate Total Expenditure Health Care Insurance Percent of Total $75,000 - $99, % 8.97% 9.93% Percentage Change $50,000 - $74, % 18.41% 19.33% Health Care Insurance 19.58% 22.76% 22.85% $35,000 - $49, % 12.32% 12.87% Medical Services 19.32% 19.73% 19.67% Medical Supplies 20.33% 22.36% 22.22% $25,000 - $34, % 14.07% 12.81% $15,000 - $24, % 15.08% 14.66% Under $15, % 19.32% 18.22% Average Household Income $65,075 $52,117 $54,054 Median Household Income $54,356 $35,566 $39,135 Per Capita Income $27,697 $22,001 $23,850 Source: 2016 Experian 17

18 PROPERTY MOUNT ST. NAME MARY'S MEDICAL OFFICE DEMOGRAPHICS MARKETING TEAM Population Race and Ethnicity In 2016, the population in your selected geography is 74,356. The population has changed by % since It is estimated that the population in your area will be 73, five years from now, which represents a change of -1.61% from the current year. The current population is 47.76% male and 52.24% female. The median age of the population in your area is 41.91, compare this to the US average which is The population density in your area is people per square mile. The current year racial makeup of your selected area is as follows: 76.67% White, 15.32% Black, 0.03% Native American and 1.41% Asian/Pacific Islander. Compare these to US averages which are: 70.77% White, 12.80% Black, 0.19% Native American and 5.36% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. Households Housing There are currently 32,319 households in your selected geography. The number of households has changed by -6.69% since It is estimated that the number of households in your area will be 32,137 five years from now, which represents a change of -0.56% from the current year. The average household size in your area is 2.24 persons. The median housing value in your area was $85,762 in 2016, compare this to the US average of $187,181. In 2000, there were 22,155 owner occupied housing units in your area and there were 12,483 renter occupied housing units in your area. The median rent at the time was $361. Income Employment In 2016, the median household income for your selected geography is $39,135, compare this to the US average which is currently $54,505. The median household income for your area has changed by 26.54% since It is estimated that the median household income in your area will be $47,110 five years from now, which represents a change of 20.38% from the current year. In 2016, there are 44,520 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 56.02% of employees are employed in white-collar occupations in this geography, and 43.88% are employed in blue-collar occupations. In 2016, unemployment in this area is 7.42%. In 2000, the average time traveled to work was minutes. People of Hispanic origin make up 3.20% of the current year population in your selected area. Compare this to the US average of 17.65%. The current year per capita income in your area is $23,850, compare this to the US average, which is $29,962. The current year average household income in your area is $54,054, compare this to the US average which is $78,425. Source: 2016 Experian 18

19 8 DEMOGRAPHICS 19

20 PRESENTED BY Jonathan Hawks Cincinnati Office Tel: (513) Fax: (513) License: OH SAL John Krueger Broker Manhattan Office Tel: (212) Fax: (212) License: NY