Offering Memorandum W. Appleton Avenue Menomonee Falls, WI 53051

Transcription

1 Offering Memorandum W. Appleton Avenue 6.44 Acre Vacant Land Parcel W. Appleton Avenue, PRESENTED BY: Patrick D. Gallagher, CCIM D E pgallagher@sg-re.com Matson B. Holbrook, Jr. CCIM D E mholbrook@sg-re.com

2 The information contained in this Offering Memorandum ( Brochure ) is confidential and is provided for the sole purpose of allowing persons to evaluate whether there is interest in proceeding with further discussions with the Owner regarding a possible transaction with respect to the subject property (the Property ). The information contained herein shall not be photocopied or disclosed to any other party and shall not be used for any other purpose. If the person receiving this Brochure does not elect to pursue such a transaction, same person agrees that this material is to be returned to Siegel- Gallagher, Inc. ( Broker ). Neither the Owner, nor Broker, nor any of their respective officers, directors, partners, employees, agents or affiliates, assume any responsibility or make any representations or warranties, whether express or implied, by operation of law or otherwise, with respect to the Property or this Brochure or any information or statements (including financial statements and projections) contained herein or relating hereto, including but not limited to the accuracy or completeness of such information or statements and the condition, quality or fitness of the Property. Such information and statements have in many circumstances been obtained from outside sources, have not been tested or verified and may be subject to errors or omissions. Projections, in particular, are based upon various assumptions and subjective determinations as to which no guaranty or assurances can be given. Without limiting the foregoing, in the event this Brochure contains information relating to asbestos or any other hazardous, toxic or dangerous materials in relation to the Property, such information shall in no manner be construed as creating warranties or representations, express or implied, by operation of law or otherwise, by any party, as to the existence or non-existence or nature of such materials in, under, on or around the Property. Potential investors must perform their own examination and investigation of the Property and information relating to the Property and in its operations, and shall rely solely on such examination and investigation and not on this Brochure or any information or materials contained herein or otherwise provided in making their decisions on whether to proceed with a transaction. The Property is being sold as is by the respective Owner, without representation or warranty as to condition or profitability. The only party authorized to represent the Owner of the Property is Broker, and Owner shall not be obligated to pay any fees or commissions to any other advisor, broker or representative. Any party entering into a transaction with Owner shall be obligated to pay any fees or commissions due any advisor, brokers or representatives, other than Broker, dealing with such a party. This Brochure is provided subject to prior sale or lease, change of price or terms and other changes to the materials, statements and information contained herein or relating to the Property, and is subject to withdrawal, all without notice or liability. In no event shall the delivery or receipt of this Brochure be deemed to create any legal obligation to enter into any transactions with respect to the Property, and only a definitive agreement signed by all parties shall create a binding commitment to enter into a transaction. 2

3 EXECUTIVE SUMMARY The Offering Siegel-Gallagher, Inc., on behalf of the owner of record, is offering for sale a 6.44-acre vacant commercial land parcel located at W. Appleton Avenue in Menomonee Falls, Wisconsin. The property is strategically located in a vibrant northwest Milwaukee suburb with high-end commercial, office and medical uses nearby. It is just off a hard corner with a signaled intersection and has frontage on and access from both Good Hope Road and Appleton Avenue. In 2011, the municipality created Tax Incremental District No. 10, encompassing the subject property, to help facilitate further development in the area. Property W. Appleton Avenue, Milwaukee, WI Property Size 6.44 Acres Offering Price $900,000 (former $1.6 million) $139,752 per acres $3.21 per sq. ft. Investment Highlights Ingress / egress off of both Good Hope Road and Appleton Avenue Traffic counts of 13,600 VPD on Appleton Avenue and 11,000 VPD on Good Hope Road 560 feet of frontage along Appleton Avenue and 398 feet of frontage along Good Hope Road Level site formerly used as an auto dealership Location Highlights Located in vibrant Milwaukee suburb of Menomonee Falls (4.7% unemployment rate as of November 2013) Across Good Hope from high-end, 220-acre Woodland Prime office park containing 367,000 sq. ft. in four buildings as well as 100 Heritage Reserve with corporate tenants that include Wells Fargo Capital Management and law firm Sattell, Johnson, Appel & Co. 104,000-sq. ft. build-to-suit for Eaton Corporation recently completed just east of the property Across Appleton Avenue from Community Memorial Medical Commons, a full service clinic operated by Froedtert Health Transaction Guidelines Following the distribution of materials, Siegel-Gallagher will be available to assist prospective investors with on-site inspections of the property and in the review of the information contained in the Offering Memorandum. As-Is Sale The property is being sold on an As-Is, Where-Is basis and the owner will make no representations or warranties as to the condition of the property, the property s systems, the serviceability or fitness for a particular use or any component of the property, or the accuracy of the offering information provided. 3

4 EXECUTIVE SUMMARY All offers should include the following: The offer price; A description of the investor and its source of capital for the acquisition; The amount of earnest money deposit; An outline of the proposed schedule for due diligence and closing; Description of any contingencies or due diligence requirements; and A description of any physical or environmental assumptions affecting the price being offered. Contacts All Inquiries related to this Solicitation and Offers should be made directly to the following: Patrick D. Gallagher, CCIM Matson B. Holbrook, Jr., CCIM D D F F E pgallagher@sg-re.com E mholbrook@sg-re.com 4

5 PROPERTY OVERVIEW Located just 10 miles northwest of Milwaukee, this 6.44-acre site in suburban Menomonee Falls features unmatched frontage along two main arterials, Appleton Avenue (560 ft.) and Good Hope Road (398 ft.), which combined carry roughly 25,000 vehicles per day past the site. While the property easily accommodated its previous use as a car dealership, its proximity to both commercial and residential developments provides an excellent opportunity for retail or office use. Recent increasing demand by office tenants for large contiguous spaces has spurred office development surrounding the property. Location Site Size Tax Key Appleton Avenue (Hwy. 175) at Good Hope Road intersection, one-half mile west of U.S. Highway 45/145 interchange acres (280,526 sq. ft.) MNFV Assessment Assessed Value Est. Fair Market Value Net Property Tax Land $1,560,000 $1,466,200 NA Improvements NA NA NA Total $1,560,000 $1,466,200 $28, Demographics 1 mile 3 miles 5 miles Population 2,893 51, ,960 Households 1,203 19,742 64,035 Median Household Income $75,988 $68,108 $50,141 Tax Incremental District TID #10 Zoning C-1, Neighborhood Business District (Sec ) (a) Intent. This district is intended to provide for the development at appropriate locations of needed commercial services consisting primarily of retail stores, shops, offices and individual service establishments catering to the daily needs of the surrounding local community area. (b) Principal uses. Retail, service, and office uses compatible with, but not limited to: antique shops; appliance stores; bakeries; barber and beauty shops; business offices; medical and dental clinics; clothing stores; confectioneries; craft supply stores; day care centers; delicatessens; department stores; doctors' offices; drug stores; depository and non-depository financial institutions without drive in/through facilities; fish markets; florists; fruit stores; furniture stores; gift stores; grocery stores; hair styling salons; hardware stores; hobby shops; meat markets; music stores; nail salons; office supply stores; optical stores; photographic supply stores; offices, class "A" restaurants; self-service and pickup laundry; dry cleaning establishments without drive in/through facilities; soda fountains; sporting goods stores; supermarkets; tanning studios; tobacco stores; variety stores; and vegetable stores. There shall be no outside storage. Waste containers, such as dumpsters, may be permitted when enclosed within a vision screen fence approved by the architectural control board. 5

6 PROPERTY OVERVIEW Zoning (continued) The outside display of merchandise is permitted during community wide promotional events. The temporary outside storage of merchandise may be permitted with a conditional use permit. Further details available at: 6

7 MERCHANT MAP 7

8 LOCATION MAPS 8

9 AERIAL PHOTOS 9

10 WAUKESHA COUNTY PARCEL MAP 10

11 2013 PROPERTY TAX & ASSESSMENT INFORMATION 11

12 2014 ASSESSMENT INFORMATION 12

13 AERIAL OVERVIEW 13

14 AREA OVERVIEW Menomonee Falls is a village in Waukesha County, Wisconsin, United States, and is part of the Greater Milwaukee area. The population was 35,626 at the 2010 census, making it the most populous village in Wisconsin. It is the fourth largest community in Waukesha County. The village's motto is "More than a village," referring to the excellence of its community and the fact that it is Wisconsin's largest village. The village was incorporated in It was named after the Menomonee River, which flows through the village and subsequent waterfall which is showcased in the heart of the community. According to the United States Census Bureau, the village has a total area of 33.3 square miles, 99.97% of it is land and 0.03% is water. The historic Village Centre is anchored at Appleton Avenue and Main Street, affectionately known as the four corners. A variety of specialty shops, restaurants and service businesses enjoy the downtown ambiance enhanced by decorative street lighting, red-bricked sidewalks and historic buildings. Nearby Office Parks: Woodland Prime consists of 220 Acres surrounded by ponds and waterfalls in Menomonee Falls, Wisconsin. The exterior beauty is complimented by the stunning building designs. The office buildings are built with the tenant in mind - providing the latest conveniences and technology in a striking, park-like setting. Woodland Prime Office Park is just north of the subject property and is comprised of four office buildings that total 367,000 sq. ft. Major Tenants: AloStar Bank, Customers Forever, Equix Financial Services, Sattell, Johnson, Appel & Co., DDN Obergfel Park Place Office Park, located less than a half mile away from our subject, is comprised of 27 office buildings totaling approximately 1.5 million sq. ft.. The office park features two, 12-story towers bordering Hwy 45 that are visible from miles around. Major Tenants: efunds Corp., Briggs & Stratton, Plunkett Architects, M&I Wealth Management, Mutual of Omaha, Schenck SC 100 Heritage Reserve is a 57,800-sq. ft., stand-alone office building located north of the subject property. Major Tenants: Wells Fargo Capital Management, Wells Fargo Advantage Funds 14

15 TAX INCREMENT DISTRICT NO. 10 Adopted: August 17, 2011 TID No. 10 includes the subject parcel, referred to as car dealership and indicates that the TID could be used to facilitate development of the parcel. For a copy of the TID No. 10, please visit : and click through the Community Development tab to Tax Incremental Districts Summary from TID No. 10: Tax Incremental District No. 10 (the District ) is being created as a Mixed Use District. It is located along Appleton Avenue, between the North Hills Country Club and the Waukesha/ Milwaukee County boundary, including the triangle bound by Good Hope Road on the north, Appleton Avenue on the south and the Waukesha/ Milwaukee County border on the east. The area contains the Woodland Prime Office Park, a small commercial center, a vacate car dealership, a small residential neighborhood along Highland Drive, and a series of vacant parcels. The District will overlay much of the property that is located in Tax Incremental District No. 4, which was created in 1996 and has helped to facilitate the development in this area to date. The Village of Menomonee Falls Comprehensive Plan, adopted in 2009, designates the majority of the district, the lands to the north of Good Hope Road, to continue to be developed for corporate offices and the Good Hope Road/ Appleton Avenue triangle is slated for commercial uses. Village of Menomonee Falls is proposing Tax Incremental District No. 10 (TID No. 10), which is designed to promote orderly development of the Village by providing a cost effective means to re-ignite first-class corporate office and light industrial development on the vacant parcels in the Woodland Prime Office Park. The District is also poised to provide an orderly development strategy by encouraging the redevelopment of currently underutilized and an environmentally contaminated property(s), ultimately, increasing the Village tax base and furthering the job creation goals and policies of Village plans adopted and otherwise. 15

16 MARKET OVERVIEW Retail Market Highlights The subject property is located in the Waukesha North submarket, which has a total retail inventory of 212,857 sq. ft. as of 2Q Year-to-date net absorption for the submarket is positive 23,466 sq. ft. The Waukesha County vacancy rate has decreased 0.3% percentage points to 7.1% over the past one-year period. During the same period, average asking rates for the county have increased 0.4% to $14.02/SF NNN. Market Snapshot: Historical Snapshot: Source: Xceligent, Inc. 16

17 EMPLOYMENT OVERVIEW Employment Trends The Milwaukee PMSA comprises Milwaukee, Ozaukee, Washington and Waukesha counties. As of November 2013, there were 832,900 non-agricultural jobs in the PMSA, reflecting an increase of 0.1%, or 900 net new jobs, from November The Construction sector grew at the fastest pace over the past one-year period, increasing by 9.7% with the addition of 2,400 net new jobs; the Education & Health Services and Trade, Transportation & Utilities sectors also experienced notable gains of 2,200 and 1,400 net new jobs, respectively. Menomonee Falls continues to outperform the PMSA, State and Country in terms of the unemployment rate, registering a very strong 4.7% as of November MILWAUKEE PMSA EMPLOYMENT TRENDS Average NON-AGRICULTURAL Annual Growth WAGE & SALARY EMPLOYMENT Nov-12 Nov /12-11/13 Mining & Logging % 33.3% Construction 33,500 28,800 25,500 24,300 23,500 24,700 27, % 9.7% Manufacturing 130, , , , , , , % -2.2% Trade, Transportation & Utilities 150, , , , , , , % 1.0% Information 17,300 16,500 15,600 15,400 14,800 14,800 14, % 0.7% Financial Activities 58,300 57,300 56,000 55,500 54,700 54,600 54, % -0.2% Services 372, , , , , , , % -0.1% Professional & Business Services 114, , , , , , , % -2.3% Education & Health Services 145, , , , , , , % 1.4% Leisure & Hospitality 70,000 68,200 67,700 68,900 70,400 67,900 67, % 0.0% Other Services 42,600 42,600 44,400 43,300 42,600 42,600 42, % 0.7% TOTAL PRIVATE 763, , , , , , , % 0.1% Government 92,500 92,000 90,100 89,400 88,900 92,400 92, % -0.2% TOTAL WAGE & SALARY EMPLOYMENT 856, , , , , , , % 0.1% Menomonee Falls, WI Unemployment Rate 3.8% 7.6% 7.1% 6.3% 5.8% 5.1% 4.7% -0.4% Milwaukee PMSA Unemployment Rate 4.9% 8.9% 8.9% 8.0% 7.4% 6.8% 6.5% -0.3% WI Unemployment Rate 4.8% 8.7% 8.5% 7.5% 6.9% 6.2% 5.8% -0.4% USA Unemployment Rate 5.8% 9.3% 9.6% 8.9% 8.1% 7.4% 6.6% -0.8% Source: U.S. Department of Labor, Bureau of Labor Statistics * Data are non-seasonally adjusted Employment Trends The Milwaukee PMSA comprises Milwaukee, Ozaukee, Washington and Waukesha counties. As of November 2013, there were 832,900 non-agricultural jobs in the PMSA, reflecting an increase of 0.1%, or 900 net new jobs, from November The Construction sector grew at the fastest pace over the past one-year period, increasing by 9.7% with the addition of 2,400 net new jobs; the Education & Health Services and Trade, Transportation & Utilities sectors also experienced notable gains of 2,200 and 1,400 net new jobs, respectively. Menomonee Falls continues to outperform the PMSA, State and Country in terms of the unemployment rate, registering a very strong 4.7% as of November

18 TRAFFIC DAILY AVERAGES 18

19 TRAFFIC 5, 10, & 15 MINUTE DRIVE TIMES 19

20 DEMOGRAPHIC OVERVIEW 1-MILE RADIUS 20

21 DEMOGRAPHIC TRENDS 1-MILE RADIUS

22 DEMOGRAPHIC OVERVIEW 3-MILE RADIUS

23 DEMOGRAPHIC TRENDS 3-MILE RADIUS

24 DEMOGRAPHIC OVERVIEW 5-MILE RADIUS

25 DEMOGRAPHIC TRENDS 5-MILE RADIUS

26 ABOUT SIEGEL-GALLAGHER S INVESTMENT TEAM Siegel-Gallagher s Investment Properties Group (IPG) specializes in the sale of multifamily, retail, office and industrial properties, as well as other special asset classes including golf courses, self-storage and development parcels, throughout Wisconsin and the Midwest. With over 40 years of real estate industry experience among its members, IPG has effectuated nearly $4 billion in investment sales transactions. IPG serves institutional clients and private investors, both domestic and international, in valuation, acquisition and disposition of investment real estate. By unifying the skills of in-house financial analysis with our brokerage specialists, IPG provides expert representation in all types of investment transactions. Over 4 billion of transaction experience Our goal is simple: maximize sale proceeds for our clients by providing superior performance as real estate consultants through process-driven services and systematic client communication. Accredited team 2 CCIM designations 2 MBAs Award Winning team Professional of the Year The Business Journal Twice won CARW Investment Sale Deal of the Year Fun Team Patrick D. Gallagher, CCIM President & CEO Matson B. Holbrook, Jr., CCIM Vice President Max Schultz Investment Analyst D C E pgallagher@sg-re.com D C E mholbrook@sg-re.com D C E mschultz@sg-re.com