NELLIS AUTOMOTIVE 3275 N Nellis Blvd, Las Vegas, NV 89115 Signalized Intersection of Cheyenne Avenue and Nellis Boulevard Average Annual Daily Traffic on Nellis Boulevard is 22,000 Fully Occupied Retail Buildings Strong Tenant Mix Built in 2004, No Deferred Maintenance Issues NV BS.0144079 Phone: 702.787.0123 Fax: 702.463.0123 1333 N Buffalo Dr, Ste 120 Las Vegas, NV 89128 www.virtusco.com
Table of Contents Confidentiality & Disclaimer... 3 Professional Bio... 4 Closed Transactions... 5 Leasing Transactions... 6 Property Description... 8 Executive Summary... 9 Investment Details... 10 Pro Forma Summary... 11 Regional Map... 12 Location Map... 13 Aerial Map... 14 Maps and Aerials... 15 Property Photos... 17 Annual Property Operating... 18 Tenant Mix Report... 19 Operating Income... 20 Financial Indicators... 21 Cash Flow Analysis... 22 Investment Return... 23 Equity vs. Debt... 24 Property Equity Analysis... 25 Internal Rate of Return... 26 Demographics... 27 Posted... 29
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 Virtus Commercial and should not be made available to any other person or entity without the written consent of Virtus Commercial. 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. Virtus Commercial 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, Virtus Commercial has not verified, and will not verify, any of the information contained herein, nor has Virtus Commercial 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. NON-ENDORSEMENT NOTICE Virtus Commercial 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 Virtus Commercial, its affiliates or subsidiaries, or any agent, product, service or commercial listing of Virtus Commercial, 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 VIRTUS COMMERCIAL AGENT FOR MORE DETAILS.
PROFESSIONAL BIO I am a Las Vegas commercial real estate broker and leader of The Beck Group at Virtus Commercial, specializing in multi-family, hotel/motel, office, retail sales and leasing. Our team has leased over 1 million square feet of space and has transacted over $100 MM in asset sales. The diverse team is fluent in Korean, Japanese and Chinese. We are dedicated to the success of our clients and we provide unparalleled industry insights, added-value services and financial acumen to all transactions whether representing the tenant, landlord or investor. I possess an Economics degree from the University of Michigan and worked in the financial services industry prior to commercial real estate. Our team is highly educated and experienced in sales and marketing, leveraging our skill sets to the benefit of our clients. For us no transaction is too complicated as we have the resources to handle a 1031 exchange, sale-leaseback or challenging financing situations. Our reputation rests on the success of our client referrals. Virtus Commercial, Apartments/Multifamily & Hotels/Motels Specialist from 02/2016 to present. We are one of top ten commercial real estate companies in Nevada and Our professionals are adept at all aspects of deal making. We cultivate it on the buy side or market it on the sell side utilizing all our talents and strategies to maximize value on every transaction. Also do landlords and tenants representations along with property management capability. R.O.I. Commercial Real Estate, Inc. Senior Vice President from 01/2016 to 02/2016. ROI Commercial is a full service commercial real estate (CRE) brokerage firm servicing buyers, sellers, tenants and landlords in all areas of commercial real estate transactions. As market leaders in retail space, ROI handles commercial retail leases, land development and brokerage sales as well as tenant representation throughout Las Vegas. With over 120 years of combined knowledge and real estate experience in the Las Vegas market. Siegel Commercial Advisors, Senior Director from 09/2014 to 01/2016. Responsible for facilitating the transaction of commercial real estate of acquisition and disposition as well as help assisting the financing of the deal by referring to the lenders. Marcus & Millichap From 02/2013 to 09/2014. Since 1971, Marcus & Millichap Real Estate Investment Services has been the premier provider of investment real estate brokerage services, including investment sales, financing, research and advisory services. The foundation of our investment sales is the depth of our local market knowledge. Our history of maintaining investor relationships in local markets enables us to be the best information source and transaction service provider nationally. Page 4
CLOSED TRANSACTIONS BY BRETT S. BECK Property Type Location Sale Price Multifamily 2320 Tucumcari Dr, Las Vegas, NV 89108 $14,200,000 Office Medical 7710 W Sahara Ave, Las Vegas, NV 89177 $7,800,000 Multifamily 5100 Obannon Dr, Las Vegas, NV 89146 $7,700,000 Multifamily 450 E Twain Ave, Las Vegas, NV 89169 $4,200,000 Retail/NNN 1915 Rock Springs Dr, Las Vegas, NV 89128 $3,400,000 Multifamily 1880 E Rochelle Ave & 4265 S Bruce St, Las Vegas, NV 89119 $3,400,000 Retail 3242 E Desert Inn Rd, Las Vegas, NV 89121 $2,800,000 Office Center 1785 E Sahara Ave, Las Vegas, NV 89104 $1,925,000 Multifamily 2725 E Evans Ave, North Las Vegas, NV 89030 $1,725,000 Retail 3220 S Nellis Blvd, Las Vegas, NV 89121 $1,700,000 Hospitality 2805 Fremont St, Las Vegas, NV 89104 $1,290,000 Hospitality 2401 N Las Vegas Blvd, North Las Vegas, NV 89030 $1,250,000 Hospitality 1873 N Las Vegas Blvd, North Las Vegas, NV 89030 $1,000,000 Bar/NNN 495 & 501 E Twain Ave, Las Vegas, NV 89169 $950,000 Retail 4805 E Charleston Blvd, Las Vegas, NV 89104 $830,000 Mobile Home Park 93 Brittle Bush Ln, West Wendover, NV 89883 $805,838 Retail/NNN 5587 South Rainbow Blvd, Las Vegas, NV 89118 $730,000 Multifamily 2540-2552 N Crawford St, North Las Vegas, NV 89030 $465,000 Multifamily 3822 Royal Crest St, Las Vegas, NV 89119 $300,000 Multifamily 2416 Clifford Ave, Las Vegas, NV 89104 $270,000 Multifamily 216 W Philadelphia Ave, Las Vegas, NV 89102 $210,000 Multifamily 2408 Clifford Ave, Las Vegas, NV 89104 $140,000
LEASING TRANSACTIONS BY BRETT S. BECK Type Location Tenant Sq. Ft. Retail 4884 E Lake Mead Blvd, Building A, Las Vegas, NV 89115 Dream Furniture 19,277 Retail 4300 E Sunset Rd, Ste A-1, Henderson, NV 89014 Las Vegas Made LLC 7,641 Retail 650 W Sunset Rd, Henderson, NV 89011 The Fabulous Las Vegas Events LLC 5,345 Office 1785 E Sahara Ave, Ste 440, Las Vegas, NV 89104 Center for Spiritual Living Southern Nevada 4,808 Office 2575 Montessouri St, Ste 200, Las Vegas, NV 89117 Centerra Group LLC 4,367 Office 2575 Montessouri St, Ste 200, Las Vegas, NV 89117 We Are Hope 4,367 Retail 4884 E Lake Mead Blvd, Ste B, Las Vegas, NV 89115 Israel Sagastegui 4,000 Retail 4821 S Decatur Blvd, Ste G-I, Las Vegas, NV 89102 Sanuki Seimen Food LLC 3,546 Retail 1775 E Tropicana Ave, Ste 100, Las Vegas, NV 89119 Escape Room 3,456 Retail 3242 E Desert Inn Rd, Ste 23-26, Las Vegas, NV 89121 R & S Events Las Vegas 3,200 Retail 4805 E Charleston Blvd, Las Vegas, NV 89104 Dry Cleaners Service 3,100 Office 1771 E Flamingo Rd, Ste A 121, Las Vegas, NV 89109 Advanced Isotopes of Nevada LLC 3,040 Retail 9325 S Cimarron Rd, Ste 100, Las Vegas, NV 89178 Cyclepath LLC 3,012 Retail 1775 E Tropicana Ave, Ste 11-13, Las Vegas, NV 89119 Iglesia Ministerio Cristiamo 3,000 Retail 4380 S Decatur Blvd, Las Vegas, NV 89103 Lacey's Place Nevada 4380 Decatur LLC 2,744 Retail 1775 E Tropicana Ave, Ste 1-3, Las Vegas, NV 89119 Lacey's Place 2,500 Retail 3385 S Decatur Blvd, Ste 30A & 30B, Las Vegas, NV 89102 George Okamoto 2,450 Office 3940 N Martin L King Blvd, Ste 105B, North Las Vegas, NV 89032 FirstMed Health and Wellness Center 2,435 Retail 10960 S Eastern Ave, Ste 107 & 108, Henderson, NV 89052 Oasis Italian Restaurant 2,400 Retail 4060 Vanessa Dr, Las Vegas, NV 89102 Ding Tea Las Vegas LLC 2,400 Office 2471 W Horizon Ridge Pkwy, Ste 100, Henderson, NV 89052 Our Little World Treatment Center 2,377 Retail 450 S Buffalo Dr, Ste 114-115, Las Vegas, NV 89145 Connell Moss 2,369 Retail 600 W Sunset Rd, Ste 101, Henderson, NV 89011 Rebel Kitchen LLC 2,300 Retail 825 S Decatur Blvd, Las Vegas, NV 89107 Velvet Underground 2,235 Office 1785 E Sahara Ave, Ste 345, Las Vegas, NV 89104 Nevada Investment & Trade Management 2,212 Retail 3940 N Martin L King Blvd, Ste 100B, North Las Vegas, NV 89032 The Foundation Christian Center 2,160 Re/Offic 4170 S Decatur Blvd, Ste A 4-5, Las Vegas, NV 89103 Gerald Walker 1,800 Office 4170 S Decatur Blvd, Ste C 1-2, Las Vegas, NV 89103 Marysol Resanov 1,800 Retail 10960 S Eastern Ave, Ste 103, Henderson, NV 89052 Last Round 1,800 Office 4170 S Decatur Blvd, Ste D 1-2, Las Vegas, NV 89103 Elbe Institue 1,785 Office 1771 E Flamingo Rd, Ste B 112, Las Vegas, NV 89119 Cleo Winters 1,776
Type Location Tenant Sq. Ft. Retail 1775 E Tropicana Ave, Ste 100A, Las Vegas, NV 89119 Albo Group LLC 1,673 Office 4170 S Decatur Blvd, Ste B 1-2, Las Vegas, NV 89103 Erik Guiterrez 1,650 Office 6376 Spring Mountain Rd, Ste 6, Las Vegas, NV 89146 Joyhealth Acupuncture LLC 1,650 Office 2575 Montessouri St, Ste 110, Las Vegas, NV 89117 Corrway Ventures LLC 1,612 Retail 3242 E Desert Inn Rd, Ste 1 & 2, Las Vegas, NV 89121 Imperium Furniture LLC 1,600 Retail 3242 E Desert Inn Rd, Ste 13 & 14, Las Vegas, NV 89121 Hollywood Rock & Servicios Multiples 1,600 Retail 3242 E Desert Inn Rd, Ste 27 & 28, Las Vegas, NV 89121 Mr. Janitorial 1,600 Office 1771 E Flamingo Rd, Ste B 211, Las Vegas, NV 89119 Emineo Marketing Solutions Inc 1,570 Retail 4500 E Sunset Rd, Ste 4, Henderson, NV 89014 Divine Wellness LLC 1,510 Office 4170 S Decatur Blvd, Ste C 7, Las Vegas, NV 89103 Redemption World Outreach Church 1,505 Retail 450 S Buffalo Dr, Ste 111, Las Vegas, NV 89145 Game Changer LV LLC 1,438 Retail 3940 N Martin L King Blvd, Ste B 108, North Las Vegas, NV 89032 Hair and Nail Salon 1,400 Retail 450 S Buffalo Dr, Ste 109, Las Vegas, NV 89145 Paint Party Night LLC 1,316 Retail 3940 N Martin L King Blvd, Ste B 102, North Las Vegas, NV 89032 Kim's Passion for Paws LLC 1,290 Retail 3940 N Martin L King Blvd, Ste B 101, North Las Vegas, NV 89032 Fish Cage 1,280 Retail 9265 S Cimarron Rd, Ste 130, Las Vegas, NV 89178 Local Realty 1,268 Retail 9265 S Cimarron Rd, Ste 115, Las Vegas, NV 89178 Feher health Services LLC 1,268 Retail 5310 W Sahara Ave, Ste B, Las Vegas, NV 89146 Modernmist Limited 1,258 Retail 5300 W Sahara Ave, Ste 202, Las Vegas, NV 89146 Dreambody Wraps and Laser 1,258 Office 1771 E Flamingo Rd, Ste B 116, Las Vegas, NV 89119 Israel A Escobar 1,257 Office 2471 W Horizon Ridge Pkwy, #120, Henderson, NV 89052 Iproperties 1,250 Office 2471 W Horizon Ridge Pkwy, #110, Henderson, NV 89052 Tender Care Home Health Inc 1,250 Retail 450 S Buffalo Dr, Ste 104, Las Vegas, NV 89145 Lance's Aquarium 1,214 Retail 450 S Buffalo Dr, Ste 108, Las Vegas, NV 89145 Nail Salon 1,214 Retail 450 S Buffalo Dr, Ste 119, Las Vegas, NV 89145 Stardust Baby 1,214 Retail 450 S Buffalo Dr, Ste 105, Las Vegas, NV 89145 Reshma Dhakal 1,214 Retail 4725 Spring Mountain Rd, Ste 4725F, Las Vegas, NV 89102 Ding Tea Las Vegas LLC 1,200 Retail 5310 W Sahara Ave, Ste A, Las Vegas, NV 89146 Survival of the Fittest LLC 1,200 Retail 3940 N Martin L King Blvd, Ste B 107, North Las Vegas, NV 89032 Headturner 21 1,200 Retail 625 N Lamb Blvd, Ste 102, Las Vegas, NV 89110 Sin City Shuttles 1,200 Industrial 520 W Sunset Rd, Unit 1, Henderson, NV 89011 DK Customs 1,200 Industrial 520 W Sunset Rd, Unit 10, Henderson, NV 89011 Veteran's Organization 1,200 Retail 10960 S Eastern Ave, Ste 109, Henderson, NV 89052 The Sugar Cookie 1,200
PROPERTY DESCRIPTION Fully Occupied **PROOF OF FUNDS REQUIRED FROM SERIOUS INQUIRIES** The Beck Group of Virtus Commercial is pleased to present for sale the that is automobile-related two freestanding retail buildings, built in 2004, block/masonry exterior with flat roofs, single story, situated on a 1.35 acres lot with approximately 10,000 square feet of retail spaces. The property is located on the northwest corner of East Cheyenne Avenue and North Nellis Boulevard, close to Interstate 15 highway. This automotive retail center consists of four tenants: used tires shop, Guajardo's Auto Repair, A&E Transmissions and North Tires Enterprises. The property is zoned Designed Manufacturing (M-D) and has 74 asphalt surface parking spaces. The assessor's parcel number is 140-08-802-003. A&E Transmission primarily operates in automotive mechanical, electrical repair and maintenance, was founded in 2011, is privately held, and has $110,000 in estimated annual revenue. The subject property is surrounded by current or potential customers such as high-dense single family residential, mobile home park, RC Willey Nevada and Bed Bath and Beyond distribution center. The seller is highly motivated and recently had a heart attack. The seller is looking to slow down and spend an additional quality time with his family. Please make an offer with the proof of funds as the seller wants to dispose it and enjoy his retirement. Page 8
EXECUTIVE SUMMARY Acquisition Costs Purchase Price, Points and Closing Costs $1,500,000 Investment - Cash $600,000 First Loan $900,000 Investment Information Purchase Price $1,500,000 Price per Tenant $375,000 Price per Sq. Ft. $150.00 Income, Expenses & Cash Flow Gross Scheduled Income $103,200 Total Vacancy and Credits $0 Operating Expenses ($5,569) Net Operating Income $97,631 Debt Service ($57,977) Cash Flow Before Taxes $39,654 Financial Indicators Cash on Cash Return Before Taxes 6.61% Debt Coverage Ratio 1.68 Capitalization Rate 6.51% Gross Income / Square Feet $10.32 Gross Expenses / Square Feet ($0.56) Operating Expense Ratio 5.40% Page 9
INVESTMENT DETAILS Analysis Analysis Date September 2017 Property Property Property Address 3275 N Nellis Blvd Las Vegas, NV 89115 Year Built 2004 Purchase Information Property Type Retail Purchase Price $1,500,000 Tenants 4 Total Rentable Sq. Ft. 10,000 Financial Information Down Payment $600,000 Loans Type Debt Term Amortization Rate Payment LO Costs Fixed $900,000 30 years 30 years 5.0% $4,831 Income & Expenses Gross Operating Income $103,200 Monthly GOI $8,600 Total Annual Expenses ($5,569) Monthly Expenses ($464) Contact Information NV BS.0144079 Page 10
PRO FORMA SUMMARY TENANT ANNUAL SCHEDULED INCOME Tenant Actual Market Used Tires Shop $26,400 $26,400 Guajardo's Auto Repair $26,400 $26,400 A&E Transmissions $26,400 $26,400 N. Tires Enterprises $24,000 $26,400 TOTALS $103,200 $105,600 INVESTMENT SUMMARY Price: $1,500,000 Year Built: 2004 Tenants: 4 RSF: 10,000 Price/RSF: $150.00 Lot Size: 1.35 acres Floors: 1 Parking Spaces: 74 APN: 14008802003 Cap Rate: 6.51% Market Cap Rate: 6.67% FINANCING SUMMARY Loan Amount: $900,000 Down Payment: $600,000 Loan Type: Fixed Interest Rate: 5% Term: 30 years Monthly Payment: $4,831 DCR: 1.68 ANNUALIZED INCOME Description Actual Market Gross Potential Rent $103,200 $105,600 Less: Vacancy $0 $0 Effective Gross Income $103,200 $105,600 Less: Expenses ($5,569) ($5,569) Net Operating Income $97,631 $100,031 Debt Service ($57,977) ($57,977) Net Cash Flow after Debt Service $39,654 $42,054 Principal Reduction $13,278 $13,278 Total Return $52,932 $55,332 ANNUALIZED EXPENSES Description Actual Market Taxes - Real Estate $5,569 $5,569 Total Expenses $5,569 $5,569 Expenses Per RSF $0.56 $0.56 Page 11
REGIONAL MAP Page 12
LOCATION MAP Page 13
AERIAL MAP Page 14
MAPS AND AERIALS Aerial Photo Page 15
MAPS AND AERIALS Page 16
PROPERTY PHOTOS Page 17
ANNUAL PROPERTY OPERATING DATA Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Rental Income $103,200 $104,232 $105,274 $106,327 $107,390 $108,464 $109,549 $110,644 $111,751 $112,868 GROSS SCHEDULED INCOME $103,200 $104,232 $105,274 $106,327 $107,390 $108,464 $109,549 $110,644 $111,751 $112,868 GROSS OPERATING INCOME $103,200 $104,232 $105,274 $106,327 $107,390 $108,464 $109,549 $110,644 $111,751 $112,868 Expenses Taxes - Real Estate ($5,569) ($5,625) ($5,681) ($5,738) ($5,795) ($5,853) ($5,912) ($5,971) ($6,031) ($6,091) TOTAL OPERATING EXPENSES ($5,569) ($5,625) ($5,681) ($5,738) ($5,795) ($5,853) ($5,912) ($5,971) ($6,031) ($6,091) NET OPERATING INCOME $97,631 $98,607 $99,593 $100,589 $101,595 $102,611 $103,637 $104,673 $105,720 $106,777 Page 18
TENANT MIX REPORT Suite Tenants Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly Used Tires Shop 2500 $2,200 $2,200 $2,200 $2,200 Guajardo's Auto Repair 2500 $2,200 $2,200 $2,200 $2,200 A&E Transmissions 2500 $2,200 $2,200 $2,200 $2,200 N. Tires Enterprises 2500 $2,000 $2,000 $2,200 $2,200 4 10,000 $8,600 $8,800 TENANT MIX TENANT MIX SQUARE FEET Used Tires Shop Guajardo's Auto Repair A&E Transmissions N. Tires Enterprises Used Tires Shop Guajardo's Auto Repair A&E Transmissions N. Tires Enterprises TENANT MIX INCOME TENANT MIX MARKET INCOME Used Tires Shop Guajardo's Auto Repair A&E Transmissions N. Tires Enterprises Used Tires Shop Guajardo's Auto Repair A&E Transmissions N. Tires Enterprises Page 19
OPERATING INCOME ANALYSIS $120,000 $108,000 $96,000 $84,000 $72,000 $60,000 $48,000 $36,000 $24,000 $12,000 Year 1 2 3 4 5 6 7 8 9 10 Legend GROSS OPERATING INCOME NET OPERATING INCOME NET CASH FLOW (b/t) Page 20
FINANCIAL INDICATORS Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Gross Rent Multiplier 14.53 14.39 14.25 14.11 13.97 13.83 13.69 13.56 13.42 13.29 Capitalization Rate 6.51% 6.57% 6.64% 6.71% 6.77% 6.84% 6.91% 6.98% 7.05% 7.12% Cash On Cash Return b/t 6.61% 6.77% 6.94% 7.10% 7.27% 7.44% 7.61% 7.78% 7.96% 8.13% Cash On Cash Return a/t 6.61% 6.77% 6.94% 7.10% 7.27% 7.44% 7.61% 7.78% 7.96% 8.13% Debt Coverage Ratio 1.68 1.70 1.72 1.73 1.75 1.77 1.79 1.81 1.82 1.84 Gross Income per Sq. Ft. $10.32 $10.42 $10.53 $10.63 $10.74 $10.85 $10.95 $11.06 $11.18 $11.29 Expenses per Sq. Ft. ($0.56) ($0.56) ($0.57) ($0.57) ($0.58) ($0.59) ($0.59) ($0.60) ($0.60) ($0.61) Net Income Multiplier 15.36 15.21 15.06 14.91 14.76 14.62 14.47 14.33 14.19 14.05 Operating Expense Ratio 5.40% 5.40% 5.40% 5.40% 5.40% 5.40% 5.40% 5.40% 5.40% 5.40% Loan To Value Ratio 59.11% 58.18% 57.21% 56.18% 55.10% 53.96% 52.77% 51.51% 50.19% 48.81% * b/t = before taxes; a/t = after taxes Page 21
CASH FLOW ANALYSIS Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 GROSS SCHEDULED INCOME $103,200 $104,232 $105,274 $106,327 $107,390 $108,464 $109,549 $110,644 $111,751 $112,868 Total Operating Expenses ($5,569) ($5,625) ($5,681) ($5,738) ($5,795) ($5,853) ($5,912) ($5,971) ($6,031) ($6,091) NET OPERATING INCOME $97,631 $98,607 $99,593 $100,589 $101,595 $102,611 $103,637 $104,673 $105,720 $106,777 Loan Payment ($57,977) ($57,977) ($57,977) ($57,977) ($57,977) ($57,977) ($57,977) ($57,977) ($57,977) ($57,977) NET CASH FLOW (b/t) $39,654 $40,630 $41,616 $42,612 $43,618 $44,634 $45,660 $46,697 $47,743 $48,801 Cash On Cash Return b/t 6.61% 6.77% 6.94% 7.10% 7.27% 7.44% 7.61% 7.78% 7.96% 8.13% * b/t = before taxes;a/t = after taxes Page 22
INVESTMENT RETURN ANALYSIS Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Cash Flow - To Date $39,654 $80,284 $121,901 $164,513 $208,131 $252,766 $298,426 $345,123 $392,866 $441,667 Net Resale Proceeds $604,065 $608,407 $613,464 $619,271 $625,868 $633,293 $641,591 $650,805 $660,983 $672,574 Invested Capital ($600,000) ($600,000) ($600,000) ($600,000) ($600,000) ($600,000) ($600,000) ($600,000) ($600,000) ($600,000) Net Return on Investment $43,719 $88,692 $135,365 $183,784 $233,999 $286,059 $340,017 $395,928 $453,849 $514,241 Internal Rate of Return 7.29% 7.36% 7.46% 7.56% 7.65% 7.75% 7.84% 7.92% 8.00% 8.09% Modified IRR 7.29% 7.35% 7.43% 7.51% 7.58% 7.64% 7.70% 7.75% 7.79% 7.83% NPV (cash flow + reversion) $10,217 $20,400 $30,507 $40,502 $50,353 $60,033 $69,519 $78,791 $87,833 $96,631 PV (NOI + reversion) $1,493,113 $1,487,529 $1,483,115 $1,479,750 $1,477,323 $1,475,731 $1,474,882 $1,474,692 $1,475,084 $1,475,987 * a/t = after taxes; Modified IRR = Modified Internal Rate of Return; PV = Present Value; NPV = Net Present Value; NOI = Net Operating Income Page 23
EQUITY VS. DEBT $890,000 $801,000 $712,000 $623,000 $534,000 $445,000 $356,000 $267,000 $178,000 $89,000 Year 1 2 3 4 5 6 7 8 9 10 Legend Equity Loan Principal Balance Page 24
PROPERTY EQUITY ANALYSIS $770,000 $693,000 $616,000 $539,000 $462,000 $385,000 $308,000 $231,000 $154,000 $77,000 Year 1 2 3 4 5 6 7 8 9 10 Legend Initial Equity Equity (loan reduction) Equity (appreciation) Page 25
INTERNAL RATE OF RETURN ANALYSIS BEFORE TAX IRR Time Future Cash Flows Initial Investment ($600,000) End of Year 1 $39,654 End of Year 2 $40,630 End of Year 3 $41,616 End of Year 4 $42,612 End of Year 5 $43,618 End of Year 6 $44,634 End of Year 7 $45,660 End of Year 8 $46,697 End of Year 9 $47,743 End of Year 10* $816,722 IRR = 9.08% * ($48,801 + $767,921) AFTER TAX IRR Time Future Cash Flows Initial Investment ($600,000) End of Year 1 $39,654 End of Year 2 $40,630 End of Year 3 $41,616 End of Year 4 $42,612 End of Year 5 $43,618 End of Year 6 $44,634 End of Year 7 $45,660 End of Year 8 $46,697 End of Year 9 $47,743 End of Year 10* $721,375 IRR = 8.09% * ($48,801 + $672,574) Page 26
DEMOGRAPHICS Population 1 Mile 3 Mile 5 Mile Male 6,344 (49.99 %) 70,697 (49.98 %) 169,864 (49.31 %) Female 6,346 (50.01 %) 70,741 (50.02 %) 174,651 (50.69 %) Total Population 12,690 141,438 344,515 Age Breakdown 1 Mile 3 Mile 5 Mile Ages 0-4 1,108 (8.73 %) 12,780 (9.04 %) 30,690 (8.91 %) Ages 5-9 1,293 (10.19 %) 14,870 (10.51 %) 35,661 (10.35 %) Ages 10-14 1,146 (9.03 %) 13,102 (9.26 %) 31,211 (10.35 %) Ages 15-19 1,043 (8.22 %) 11,942 (8.44 %) 28,547 (8.29 %) Ages 20-24 926 (7.30 %) 11,060 (7.82 %) 26,321 (7.64 %) Ages 25-29 919 (7.24 %) 10,367 (7.33 %) 24,084 (6.99 %) Ages 30-34 956 (7.53 %) 9,812 (6.94 %) 22,501 (6.53 %) Ages 35-39 985 (7.76 %) 9,589 (6.78 %) 22,123 (6.42 %) Ages 40-44 924 (7.28 %) 9,312 (6.58 %) 21,783 (6.32 %) Ages 45-49 908 (7.16 %) 9,130 (6.46 %) 21,666 (6.29 %) Ages 50-54 715 (5.63 %) 7,733 (5.47 %) 19,005 (5.52 %) Ages 55-59 574 (4.52 %) 6,458 (4.57 %) 16,292 (4.73 %) Ages 60-64 434 (3.42 %) 5,100 (3.61 %) 13,465 (3.91 %) Ages 65-69 310 (2.44 %) 3,772 (2.67 %) 10,433 (3.03 %) Ages 70-74 203 (1.60 %) 2,608 (1.84 %) 7,630 (2.21 %) Ages 75-79 128 (1.01 %) 1,661 (1.17 %) 5,224 (1.52 %) Ages 80-84 60 (0.47 %) 931 (0.66 %) 3,325 (0.97 %) Ages 85+ 58 (0.46 %) 1,211 (0.86 %) 4,554 (1.32 %) Page 27
DEMOGRAPHICS Household Income 1 Mile 3 Mile 5 Mile Median Income $37,421 $41,823 $42,645 Less than $10,000 505 2,823 6,727 $10,000 -$14,999 195 1,827 4,721 $15,000 - $19,999 329 2,335 5,619 $20,000 -$24,999 382 3,013 6,275 $25,000 - $29,999 377 3,094 6,875 $30,000 - $34,999 428 2,868 6,462 $35,000 - $39,999 304 2,764 5,924 $40,000 - $44,999 337 2,505 5,643 $45,000 - $49,999 189 2,193 5,079 $50,000 - $59,999 473 4,310 10,475 $60,000 - $74,999 303 4,512 11,385 $75,000 - $99,999 383 4,179 11,609 $100,000 - $124,999 71 2,193 6,181 $125,000 - $149,999 120 984 3,019 $150,000 - $199,999 46 869 2,563 Greater than $200,000 8 289 959 Housing 1 Mile 3 Mile 5 Mile Housing Units 5,257 47,993 114,419 Occupied Units 4,382 40,592 98,564 Owner Occupied Units 891 19,577 50,514 Renter Occupied Units 3,491 21,015 48,050 Vacant Units 875 7,401 15,855 Race Demographics 1 Mile 3 Mile 5 Mile Population Non Hispanic White 5,587 61,509 152,526 Population Black 2,782 18,561 45,981 Population Am In/Ak Nat 119 600 1,276 Page 28