JUNCTION VIEW RETAIL CONDO Offering Memorandum Presented by:
Executive Summary JUNCTION VIEW RETAIL CONDO 339 East 2250 South Ogden, UT 84401 Offering Summary Offering Price $3,500,000 Down Payment 30% / $1,050,000 Total Gross Leasable Area (GLA) 16,141 SF Price/SF $216.84 Cap Rate - Current 7.56% Year Built 2008 Lot Size 16,141 SF Major Tenants TENANT GLA LEASE EXP Deseret Book 7,477 SF 10/2019 Blue Lemon 3,950 SF 12/2024 Grand View Reception Center 5,012 SF 6/2024 Shared CA Restroom/Hallway 612 SF 6/2024 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 Financing PROPOSED FINANCING Existing Financing Loan Type Free and Clear Loan Amount $2,450,000 Proposed Financing Loan Type Interest Rate 4.75% Amorization Proposed New 25 Years Debt Coverage Ratio 1.58 2
Financial Summary Annualized Operating Data Tenants (% of GLA) INCOME CURRENT PER SF Base Rent / Occupied Space $264,697 $16.40 Gross Potential Rent $264,697 $16.40 Expense Reimbursements $110,177 $6.83 Gross Potential Income $374,874 $23.22 Effective Gross Income $374,874 $23.22 Total Expenses $110,177 $6.83 Net Operating Income $264,697 $16.40 Debt Service $167,615 Debt Coverage Ratio 1.58 Net Cash Flow After Debt Service 9.25% / $97,082 Principle Reduction $52,370 Total Returns 14.23% / $149,452 Reserves / Replacements $3,410 $0.20 3
Rent Roll TENANT NAME SUITE NUMBER LEASE COMM. DATE LEASE EXP. DATE FLOOR SF BUILDING SHARE RENT PER YEAR PER SF LEASE CHANGES OPTIONS LEASE TYPE Deseret Book Suite 1 10/2009 5/2019 7,477 SF 43.21% $118,510.45 $15.85 3% Annually One, 5-Year NNN Blue Lemon Suite 2 8/2014 9/2024 3,950 SF 24.47% $65,096.00 $16.48 3% Annually Three, 5-Year NNN Grandview Reception Center Suite 3 6/2014 2/2024 4,102 SF 25.41% $69.651.96 $16.98 3% Annually Two, 5-Year NNN Shared CA, Restroom & Hallway Suite 4 8/2014 9/2024 612 SF 3.79% $11,439.00 $18.69 3% Annually Three, 5-Year NNN TOTAL OCCUPIED SQUARE FEET 16,141 SF $264,697.41 Grandview pays $5,196 for share of restroom /hallway Blue Lemon pays for $6,243 for share of restroom /hallway 4
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-2018 JAN-2019 JAN-2020 JAN-2021 JAN-2022 JAN-2023 JAN-2024 JAN-2025 JAN-2026 JAN-2027 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% 53.74 Cumulative Percentage 46.3% 100.0% 5
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 specializes in entertainment from movies to restaurants to indoor 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 with NNN Leases Below 40 Apartments Units Located in Completely Renovated Downtown Ogden Within One Block of LDS Ogden Temple Strong Corporate Tenant - Deseret Book - with 65 + Location - Top Performing Store High Traffic Area with over 31,000 Vehicles Per Day Walkscore - 84 (Very Walkable) 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
JUNCTION VIEW RETAIL CONDO 7
Regional Map Subject Property 8
Local Map Subject Property 9
Retail Market 10
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 2019. 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 11
Demographic Summary POPULATION 1-MILE 3-MILES 5-MILES 2000 Population 14,327 72,447 127,353 2010 Population 13,297 75,974 141,347 2014 Population 13,754 77,874 145,580 2019 Population 13,809 79,333 151,461 HOUSEHOLDS 1-MILE 3-MILES 5-MILES 2000 Households 4,789 25,884 44,786 2010 Households 5,053 27,357 50,504 2014 Households 5,297 28,230 52,319 2019 Households 5,447 28,962 54,828 2014 Average HH Size 2.49 2.69 2.75 2014 Daytime Population 12,553 46,792 68,955 2000 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 - $ 14,999 33.9% 18.4% 13.5% $15,000 - $24,999 18.4% 14.5% 11.9% $25,000 - $34,999 12.8% 12.7% 11.3% $35,000 - $49,999 14.6% 17.6% 17.3% $50,000 - $74,999 11.4% 20.5% 22.2% $75,000 - $99,999 4.5% 8.8% 11.5% $100,000 - $124,999 1.8% 3.8% 5.9% $125,000 - $149,999 1.1% 1.7% 2.9% $150,000 - $200,000 0.6% 1.1% 2.1% $200,000 to $249,999 0.3% 0.4% 0.7% $250,000 + 0.5% 0.5% 0.9% 2014 Median HH Income $23,647 $38,520 $46,328 2014 Per Capita Income $14,049 $17,699 $21,151 2014 Average HH Income $35,260 $48,261 $58,315 12
Demographic Summary Geography: 5 Miles Population In 2018, the population in your selected geography was 151,500. The population has changed by 16% since 2000. 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 36.9. The population density in your area is 272.12 people per square mile. Households There are currently 54,846 households in your selected geography. The number of households has changed by 19.35% since 2000.. 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 2000. 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. 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. 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. Demographic data 2015 by Experian/Applied Geographic Solutions. 13
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