MULTI-TENANT NNN INVESTMENT

Transcription

1 MULTI-TENANT NNN INVESTMENT Outparcel to DEER SPRINGS CROSSING N. 5th Street, North Las Vegas, NV, Colliers International 3960 Howard Hughes Pkwy., Suite 150 Las Vegas, NV 89169

2 Property Overview This is a unique opportunity to acquire fee simple (ownership of land and building) a brand new 2016 construction 100% occupied multi tenant (2) outparcel to Deer Springs Crossing Shopping Center in North Las Vegas, NV. This property offers rapid increases in NOI with 3% annual rental increases, minimal landlord responsibilities (roof & structure only), with approximately 4.5 years remaining on corporate leases for both Dollar Loan Center (corporate guaranteed) and Subway (reports sales). Pricing Summary List Price $1,775,000 NOI $104,460 CAP Rate 5.85% Operating Expenses Taxes, Insurance, CAM NNN Investment Highlights Located Just off Interstate Miles from Las Vegas Motor Speedway Outparcel to Deer Springs Crossing Acre Regional Power Center Brand New 2016 Construction - Depreciable Asset 15% Admin Fee of Common Area Costs Paid to Landlord Main Retail Hub for Surrounding Community and Residential Developments Subway - One of the Most Recognizable Franchisee s in the World Ranked #35 on Entrepreneur s 2017 Franchise 500 List - Over 44,000 Locations World Wide Dollar Loan Center - Founded in 1998 Now Has Over 75 Locations Over 13,560 Residential Units Built/Planned for Development (3-Mile Radius) Excellent Demographics - Approx. 94,599 Residents (3-Mile Radius) Strong Supporting Fundamentals - AHHI of $74,258 (3-Mile Radius) Neighbors Legacy High School and Ruby Duncan Elementary School Surrounding Retail Includes - Buffalo Wild Wings, Kohl s McDonald s, Target, The Home Depot, In-N-Out, Walgreens and Many More Deliverable Free & Clear of Existing Debt Sits on N. 5th St. - Future Mass Transit Corridor - 4 Lanes MULTI-TENANT INVESTMENT P. 2

3 Lease Abstract Lease Abstract Tenant Trade Name Dollar Loan Center Tenant Trade Name Subway Tenant SF 2,500 SF Tenant SF 1,593 Lease Commencement November 9, 2016 Lease Expiration February 28, 2022 Lease Commencement February 1, 2017 Lease Expiration January 31, 2022 Lease Term 6 Years Lease Term 5 Years Term Remaining On Lease 5 Years Term Remaining On Lease 5 Years Base Rent $67,500 Base Rent $36,960 Rental Adjustments 3% Annual Increases Rental Adjustments 3% Annual Increases Options 1-5 Ye a r O p t i o n Pe r i o d 3% Annual Increases Options 3-5 Ye a r O p t i o n Pe r i o d s 3% Annual Increases Lease Type NNN Lease Lease Type NNN Lease Roof And Structure Landlord Responsible Roof And Structure Landlord Responsible MULTI-TENANT INVESTMENT P. 3

4 Cash Flow Projections NOI Includes Future 3% Annual Base Rent Increases Cash Flow Projection Year 1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 For the Year Ending: per SF Aug-2018 Aug-2019 Aug-2020 Aug-2021 Aug-2022 Aug-2023 Aug-2024 Aug-2025 Aug-2026 Aug-2027 Potential Gross Revenue Base Rental Revenue $ , , , , , , , , , ,938 Absorption & Turnover Vacancy $ Scheduled Base Rental Revenue $ , , , , , , , , , ,938 Expense Reimbursement Revenue CAM $0.57 2,340 2,387 2,435 2,484 2,534 2,584 2,636 2,688 2,742 2,797 Utilities $0.43 1,755 1,790 1,826 1,863 1,899 1,938 1,976 2,016 2,056 2,097 Insurance $ Property Tax $2.42 9,925 10,123 10,326 10,532 10,742 10,958 11,177 11,400 11,629 11,861 Management $0.93 3,797 3,907 4,019 4,135 4,255 4,378 4,504 4,633 4,767 4,831 Total Reimbursement Revenue $ ,402 18,803 19,215 19,635 20,064 20,504 20,951 21,409 21,880 22,285 EFFECTIVE GROSS REVENUE $ , , , , , , , , , ,223 Operating Expenses & Net Operating Income CAM $0.57 2,340 2,387 2,435 2,483 2,533 2,584 2,635 2,688 2,742 2,797 Utilities $0.43 1,755 1,790 1,826 1,862 1,900 1,938 1,976 2,016 2,056 2,097 Insurance $ Property Tax $2.42 9,924 10,122 10,325 10,531 10,742 10,957 11,176 11,400 11,628 11,860 Management $0.93 3,797 3,907 4,019 4,135 4,254 4,377 4,503 4,633 4,767 4,837 TOTAL OPERATING EXPENSES $ ,401 18,803 19,214 19,632 20,062 20,502 20,949 21,409 21,878 22,290 NET OPERATING INCOME $ , , , , , , , , , ,933 Running Cap Rate 5.6% 5.8% 5.97% 6.15% 6.34% 6.53% 6.72% 6.93% 7.13% 7.35% 7.45% Leasing & Capital Costs Capital $0.15 PSF $ TOTAL LEASING & CAPITAL COSTS $ Debt Service Interest Payments $ ,650 42,625 41,555 40,437 39,271 38,054 36,783 35,457 34,072 32,627 Principal Payments $ ,378 24,403 25,473 26,590 27,756 28,974 30,245 31,571 32,956 34,401 TOTAL DEBT SERVICE $ ,028 67,028 67,028 67,027 67,027 67,028 67,028 67,028 67,028 67,028 NET CASH FLOW AFTER DEBT SERVICE $ ,534 43,778 47,121 50,567 54,113 57,763 61,525 65,398 69,391 71,291 MULTI-TENANT INVESTMENT P. 4

5 Leveraged Investment Analysis Acquisition Cost Sales Price $1,865,000 Total Unleveraged Acquisition Reserves $17,500 Financing Fees $10,258 Total Leveraged Acquisition Cost $1,892,758 Cost per Square Foot $ Equity Required $867,008 Notes Proposed Debt Loan Summary Loan Amount $1,025,750 Loan-to-Value Ratio 55.00% Interest Rate 4.30% Loan Constant 6.53% Annual Debt Service 67,028 Term 10 Years Amortization Period 25 Years Maturity Aug-27 Outstanding Loan Balance at Maturity $740,003 Loan Fee 1.00% Include Loan Fee in Acq. Reserve? Yes Going-In Assumptions Going-In CAP Rate 5.80% Year 1 Cash on Cash 4.68% Residual Assumptions Terminal Cap Rate 5.60% Cost of Sale 3.00% Leveraged Return Analysis Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 For the Year Ending: IRR Equity Aug-2018 Aug-2019 Aug-2020 Aug-2021 Aug-2022 Aug-2023 Aug-2024 Aug-2025 Aug-2026 Aug-2027 Sale Year Year 1 - (867,008) 968,116 Year % (867,008) 40,534 1,053,668 Year % (867,008) 40,534 43,778 1,142,156 Year % (867,008) 40,534 43,778 47,121 1,233,614 Year % (867,008) 40,534 43,778 47,121 50,567 1,328,157 Year % (867,008) 40,534 43,778 47,121 50,567 54,113 1,425,944 Year % (867,008) 40,534 43,778 47,121 50,567 54,113 57,763 1,527,037 Year % (867,008) 40,534 43,778 47,121 50,567 54,113 57,763 61,525 1,631,645 Year % (867,008) 40,534 43,778 47,121 50,567 54,113 57,763 61,525 65,398 1,701,505 Year % (867,008) 40,534 43,778 47,121 50,567 54,113 57,763 61,525 65,398 69,391 1,821,936 Leveraged Returns Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 For the Year Ending: Equity Feb-2014 Feb-2015 Feb-2016 Feb-2017 Feb-2018 Feb-2019 Feb-2020 Feb-2021 Feb-2022 Feb-2023 NOI 108, , , , , , , , , ,933 Leveraged Cash Flow ($867,008) $40,534 $43,778 $47,121 $50,567 $54,113 $57,763 $61,525 $65,398 $69,391 $71,291 NOI Return 10 YR AVG 6.54% 5.72% 5.89% 6.06% 6.25% 6.43% 6.63% 6.82% 7.03% 7.24% 7.34% Net Cash-on-Cash Return 10 YR AVG 6.48% 4.68% 5.05% 5.43% 5.83% 6.24% 6.66% 7.10% 7.54% 8.00% 8.22% MULTI-TENANT INVESTMENT P. 5

6 Parcel Details Parcel Building Area Parcel Area 4,093 SF 33,541 SF (.77 Acres) Year Built 2016 Zoning C-2 General Commercial MULTI-TENANT INVESTMENT P. 6

7 BRUCE WOODBURY BELTWAY DEER SPRINGS CROSSING 215 DEER SPRINGS VA SOUTHERN NEVADA HEALTHCARE E. DEER SPRINGS WAY TOWN CENTER CENTENNIAL PKWY. SHADOW CREEK GOLF COURSE N. SIMMONS ST. CAMINO ELDORADO COMMERCE ST. N. 5TH ST. MOJAVE HIGH SCHOOL CANNERY CORNER LOSEE RD. 15 MARMAXX DISTRIBUTION CENTER E. CRAIG RD. MULTI-TENANT INVESTMENT P. 7

8 BRUCE WOODBURY BELTWAY Located Just off Interstate 215 in North Las Vegas 215 Excellent Demographics Approximately 250,873 Residents Within a 5 Mile Radius Strong Supporting Average Household Income of $74,258 Within a 3 Mile Radius Convenient Access - Ample Parking - Excellent Visibility W. DORRELL LN. LEGACY HIGH SCHOOL N. 5TH ST. DEER SPRINGS TOWN CENTER E. DEER SPRINGS WAY DON E HAYDEN ELEMENTARY SCHOOL DEER SPRINGS CROSSING MULTI-TENANT INVESTMENT P. 8

9 About Subway Doctor s Associates Inc., doing business as Subway, is a privately held American fast food restaurant franchise that primarily sells submarine sandwiches (subs) and salads. Subway is one of the fastest-growing franchises in the world and, as of June 2017, has approximately 45,000 stores located in more than 100 countries. More than half of the stores are located in the United States. It is the largest single-brand restaurant chain and the largest restaurant operator in the world. 10 Facts About Subway That Will Blow Your Mind 1. There are more than 38 million subway sandwich combinations. 2. Subway serves about 7.6 million subs every day, enough to feed every person in Los Angeles, Chicago, and Dallas. 3. Subway has 41,766 locations. That means it has opened, on average, more than two restaurants per day since Some of the most unusual Subway locations include a laundromat, car dealership, and church. 5. Subway makes enough sandwiches in a year to wrap around the Earth 14 times. 6. Subway employs more than 46,000 hens that lay eggs for its cookies around the clock. In a year, those hens lay 14.4 million eggs. 7. Subway plans to have 50,000 restaurants by To achieve that, Subway will need to open more than 6 restaurants per day. 8. Subway employs about 410,000 people, or the population of Miami, FL. 9. There are more Subway locations than McDonald s locations worldwide. 10. Subway uses more tuna, tomatoes, and frozen cooked dough than any other company in the food industry. MULTI-TENANT INVESTMENT P. 9

10 About Dollar Loan Center Dollar Loan Center is a community short term lender. They are the leading provider of on-line installment loans and car title loans in the industry. Dollar Loan Center has approximately 75 branches located in 4 states. They employ approximately 300 people. Dollar Loan Location: Nevada Carson City Fernley Henderson Las Vegas North Las Vegas Laughlin Pahrump Reno Sparks Sun Valley MULTI-TENANT INVESTMENT P. 10

11 Northern Las Vegas Northern Las Vegas lies 20 minutes from the famous Las Vegas Strip. It is located in Clark County, Nevada with an estimated population of 227,686 Neighboring communities include the city of Las Vegas and the township of Paradise, encompassing the Las Vegas Strip and McCarran International Airport. North Las Vegas has grown to the point where it is now the third fastest-growing large city in the US. The population in this area is projected to grow by 2.34% in the next five years (Nielsen Claritas, 2016). Residential Development Planned Units The Villages at Tule Springs +/-8,683 North Ranch +/-114 (Duplex) +/-312 (Triplex) Bascom / Oak Tree High Density Centennial Estates +/-68 Diamond Creek +/-300 Shade +/-379 Eldorado Ridge +/-78 Park Highlands +/-3,500 Total +/-13,562 units +/-13,562 units MULTI-TENANT INVESTMENT P. 11

12 Las Vegas Economic Summary Las Vegas s recovery continues, led by tourism and consumer spending. It took a while, but the city s economy is gaining traction. As of June 2017, approximately 27,300 jobs had been created over the past year, which equates to year-over-year growth of about 2.9%. The key to sustaining this growth will be the leisure and hospitality sector. With nearly one in three jobs based in the sector, the metro s economic success is inherently tied to tourism. And based on stats from the Las Vegas Convention and Visitors Authority, things appear to be only looking up. The metro attracted a record 42 million visitors in 2015, over 2.5 million more than the previous high in 2012, and 2016 matched that number. A strengthening national economy will certainly help Las Vegas s cause as increased disposable income encourages, even more, tourists and attracts visitor dollars to the metro. Home prices are shooting up year-over-year and new home sale rates have significantly improved. This has led to more construction in the area. Construction jobs are expected to gain the most during this recovery as large projects on the Strip such as Genting Group s $4 billion Resorts World Las Vegas take shape along with the MGM-AEG arena. That project alone is expected to add 30,000 constructions jobs. There is an emphasis on diversifying Las Vegas s economy and making sure there is not an over-reliance on construction. Projects like the Tesla factory in Reno and attracting additional healthcare related jobs have been discussed. Two major hospitals provide the bulk of employment in the NorthWest Las Vegas submarket. MULTI-TENANT INVESTMENT P. 12

13 Population 1-MILE 3-MILE 5-MILE Estimated Population (2017) 13,333 94, ,421 Projected Population (2022) 14, , ,873 Households 1-MILE 3-MILE 5-MILE Estimated Households (2017) 4,502 30,770 73,951 Projected Households (2022) 4,915 33,641 80,644 $$ Income 1-MILE 3-MILE 5-MILE Avg. Household Income (2017) $73,003 $74,258 $69,841 Median Household Income (2017) $60,093 $61,309 $57,736 Business Facts 1-MILE 3-MILE 5-MILE Total # of Businesses (2017) 157 1,238 4,053 Total # of Employees (2017) 2,011 14,464 56,293 MULTI-TENANT INVESTMENT P. 13

14 Approximately 94,599 Residents Within a 3-Mile Radius REPRESENTATIVE PHOTO MULTI-TENANT INVESTMENT P. 14

15 Average Household Income $74,258 Within a 3-Mile Radius REPRESENTATIVE PHOTO MULTI-TENANT INVESTMENT P. 15

16 This Offering Memorandum contains select information pertaining to the business and affairs of Subway-Dollar Loan, North Las Vegas, NV. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of Subway-Dollar Loan, North Las Vegas, NV or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. Colliers International 3960 Howard Hughes Pkwy., Suite 150 Las Vegas, NV Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its licensor(s) All rights reserved MULTI-TENANT INVESTMENT P. 16

17 MULTI-TENANT SHOPPING CENTER Outparcel to DEER SPRINGS CROSSING FOR MORE INFORMATION CONTACT: Eric Carlton Senior Vice President License No. S Colliers International 3960 Howard Hughes Pkwy., Suite 150 Las Vegas, NV 89169