Net Leased Office Building for Sale 2920 Marketplace Dr., Fitchburg, Wisconsin John Walsh Lee & Associates of Madison, WI (608) 327-4002 jwalsh@lee-associates.com Mike Osborne Madison Commercial Real Estate (608) 709-5555 Ext. 22 mike.osborne@madisoncommercialre.com
Investment Summary Property Overview Property Type: Office Building Building Size: 19,772 Sq. Ft. Gross/13,865 Leaseable; 588 Sq. Ft. Basement Land Size (Sq. Ft.): 52,855 Year Built: 2008 Zoned: G-2 Offering Price: $2,200,000 Financial Analysis/Pricing For the Year Ending December 2017 Potential Gross Revenue (2018) $221,394 Base Rental Revenue (2017) $255,939 Expense Reimbursement Revenue - 1 Tenant NNN Lease Total Reimbursement Revenue (2017) $24,091 (Tenant D) Operating Expenses RE Tax (2016) $46,507.47 CAM (2017) $92,848 Insurance (2017) $7,944 Management Fees (2017) $12,000 Total Operating Expenses $147,300 (Excluding Mgmt. Fee) Net Operating Income $132,730 *Assuming 6,900 sq. ft. is leased at $20.50 M/G on September 2018
Lease Abstracts & Tenant Overviews Tenant A Size: 2,279 Sq. Ft. of Office/55 Sq. Ft. Lower Level % of Total Leasable SF: Rent Commencement: 9/1/2015 Expiration Date: 8/31/2024 Lease Type: Modified Gross (Electrical +Janitorial) Renewal Options: None 2017 Annual Rent: $45,563 Rental Increases: See Rent Table On Next Page Tenant B Size: 2,553 Sq. Ft. of Office/533 Sq. Ft Storage % of Total Leasable SF: Rent Commencement: 6/1/2013 Proposed Expiration Date: 11/30/2019 Lease Type: Gross Renewal Options: Two 3 Year Options 2017 Annual Rent: 51,816 Rental Increases: Static Rent Tenant C Size: 6,900 Sq. Ft. % of Total Leasable SF: Rent Commencement: 12/1/2012 Expiration Date: 2/28/2018 Lease Type: Gross Renewal Options: None 2017 Annual Rent: $139,817 Rental Increases: 3% Annual Tenant D Size: 2,133 Sq. Ft. % of Total Leasable SF: 15.33% Rent Commencement: 4/15/2008 Proposed Expiration Date: 12/31/2019 Lease Type: NNN Renewal Options: (1) 5 Year Option 2017 Annual Rent: $25,799.52 Rental Increases: 3% Annual
Tenant A Rent Table/Investment Highlights Tenant A Rent Table Period Monthly Rent 09/01/15-05/31/16 $2,713.38 06/01/16-06/30/16 $3,100.44 07/01/16-03/31/17 $3,713.38 04/01/17-03/31/18 $3,824.78 04/01/18-03/31/19 $3,939.52 04/01/19-03/31/20 $4,057.71 04/01/20-03/31/21 $4,179.44 Period Monthly Rent 04/01/21-03/31/22 $4,304.82 04/01/22-03/31/23 $4,433.96 04/01/23-08/31/24 $4,566.98 Desirable Madison Market Affluent demographics with an average household income of nearly $66,819 within a 5 mile radius of the subject property. Madison s unemployment rate is only 2.7% vs. National average of 4.9%. Madison Tops in many rankings #3 2015 top healthiest - Livablility.com #1 2015 best places to live - Livablility.com #9 2015 best cities for people 35 and younger - Livablility.com #6 2014 best cities for families - WalletHub.com Housing demand at an all time high - in 2014 alone, a total of 5,300 new units were approved/built/under construction. Dynamic job growth - Epic Systems, the dominant electronic health records software company, hired and additional 2,000 employees in just the past few months. Approximately 70,000 students within the surrounding primary market area attend the University of Wisconsin, Edgewood College and Madison College.
Property Photos
Aerial Highway 151 McKee Rd./Highway PD Marketplace Dr. Site S. Seminole Highway
Demographics Radius 1 Mile 3 Mile 5 Mile 2021 Projection 10,467 62,774 182,892 2016 Population 9,901 58,954 172,608 2010 Census 9,309 53,175 159,076 Households: 2021 Projection 4,341 25,894 77,762 2016 Households 4,101 24,301 73,215 2010 Census 3,845 21,903 67,287 2016 Owner Occupied 2,109 12,845 32,473 2016 Renter Occupied 1,992 11,456 40,742 2016 Average Household Income $98,186 $78,813 $73,615 2016 Income by Household: <$25,000 647 4,924 19,762 $25,000 - $50,000 880 5,999 16,340 $50,000 - $75,000 754 4,153 11,411 $75,000 - $100,000 496 3,220 8,027 $100,000 - $125,000 307 1,836 6,059 $125,000 - $150,000 122 1,068 3,328 $150,000 - $200,000 427 1,701 4,347 $200,000+ 468 1,401 3,940 Site
Area Overview Madison, WI Madison is the capital of the State of Wisconsin and the county seat of Dane County. As the urban center of the region, Dane County is home to the state s capital in the City of Madison, the University of Wisconsin flagship campus, the world-class Overture Center for the Arts, and an abundance of parks, lakes, and unique neighborhoods. Home to the fastest growing population of any county in Wisconsin, Dane County boasts a highly educated workforce to power its diverse and innovative industries. With assets in information technology, life sciences, and agriculture, Madison and Dane County consistently rank among the top communities for work and play. Madison is the second largest city in Wisconsin, after Milwaukee, and the 83rd largest in the United States. The main downtown thoroughfare is State Street, a cultural focal point of the city, which links the University of Wisconsin campus with the State Capitol Square, and is lined with restaurants, espresso cafes and shops. Madison is also home to a number of historical sites and popular festivals, including the Rhythm and Booms celebration, the largest fireworks display in the Midwest as well as the Great Tate of the Midwest craft beer festival, the second longest running such event in North America. In winter months, sports enthusiasts enjoy ice boating, ice skating, ice fishing, cross-country skiing, ice hockey and snow-kiting. Diverse Employers The Wisconsin state government and the University of Wisconsin-Madison remain the top two dominant economic influences within the city. However, Madison s economy today is evolving from a government-based economy to a consumer services and high-tech base, particularly in the health, biotech and advertising sectors. Many businesses are attracted to Madison s skill base, taking advantage of the area s high level of education. Over 48% of Madison s population over the age of 25 holds at least a bachelor s degree. The Madison Region is a key part of the overall market footprint. As the location of the State Capitol and a world class university, Madison and its surrounding regions have demonstrated significant growth. Dane County is 10% of the overall state population and maintains 12% of the jobs in the state and over the past 15 years has created over 16% of the new businesses in the state. Madison is ranked in the Top 5 Cities for IT Jobs as well as a Top Innovation city. Gary Schafer, EVP, Madison Market President Associated Bank
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