OFFERING MEMORANDUM JORDAN LANDING DEVELOPMENT SITE 7252 JORDAN LANDING BLVD WEST JORDAN, UT 84084
EXCLUSIVELY MARKETED BY: TABLE OF CONTENTS 6550 S Millrock Dr, Ste 200 Salt Lake City, Utah 84121 801.947.8300 cbcadvisors.com Brandon Fugal Chairman 801.450.2462 brandon.fugal@cbcadvisors.com Rawley Nielsen President of Investment Sales 801.441.5922 rawley.n@cbcadvisors.com PROPERTY DETAILS 3 LOCATION INFORMATION MARKET OVERVIEW 15 9 Darren Nielsen Investment Sales 801.448.2662 darren.n@cbcadvisors.com All materials and information received or derived from CBC Advisors - Intermountain its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither CBC Advisors - Intermountain its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. CBC Advisors - Intermountain will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. CBC Advisors - Intermountain makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. CBC Advisors - Intermountain does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by CBC Advisors - Intermountain in compliance with all applicable fair housing and equal opportunity laws.
SECTION 1 PROPERTY DETAILS
EXECUTIVE SUMMARY PROPERTY SUMMARY Address: 7252 Jordan Landing Blvd West Jordan, UT 84084 Price: $2,014,214 Price/Sq. Ft.: $16 PROPERTY OVERVIEW Coldwell Banker Commercial Advisors is pleased to offer the ideally located 2.89 acre land parcel on the corner of Jordan Landing Blvd and Center Park Drive at Jordan Landing. The 2.89 acre parcel, zoned Professional Office, is in a prime position to take advantage of both the continuing population boom in West Jordan as well as the planned redevelopments taking place within Jordan Landing by Red Development, a major national high-end retail developer and asset manager. Lot Size (AC): 2.89 Lot Size (Sq. Ft.) 125,888 APN #: 2129151007 Zoning: Professional Office The flexible Professional Office zoning allows for a wide variety of permitted and conditional uses, including office buildings, banks, medical services, restaurants, schools, daycares, and many others. Jordan Landing Development Site is perfectly situated in one of the fastest growing and most rapidly developing regions in Utah. The Property s placement off Bangerter Highway gives it easy access to I-15 and I-215, making it the perfect gateway to Salt Lake, Davis, and Utah Counties. Lot Location: Prominent corner location raised above street level 7252 JORDAN LANDING BLVD, WEST JORDAN, UT 4
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PROPERTY DETAILS PROPERTY NAME: Jordan Landing Development Site PROPERTY ADDRESS: 7252 Jordan Landing Blvd West Jordan, UT 84084 PRICE: $2,014,214 PRICE/SQ. FT. $16.00 SIZE (AC): 2.89 SIZE (SQ. FT.) 125,888 APN: 21291510070000 ZONING: Professional Office EXAMPLE USES: Office buildings, banks, medical services, restaurants, schools, daycares, and many other uses WATER: Yes SEWER: Yes SIDEWALK: Yes CURB GUTTER:: Yes LOT LOCATION: CROSS STREETS: Prominent, and highly-visible corner location raised above street level Jordan Landing Blvd & Center Park Drive 7252 JORDAN LANDING BLVD, WEST JORDAN, UT 6
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SECTION 2 LOCATION INFORMATION
LOCATION INFORMATION JORDAN LANDING JORDAN LANDING AT-A-GLANCE 500 Acre Mixed-Use Development 1.8 Million Square Feet of Retail 250 Residential Family Homes 1,000 Multi-family Units 56,000 Square Feet of Office Space 99 Room Marriott Hotel Opening Fall of 2017 JORDAN LANDING TRAFFIC 16,000,000 customers per year 44,000 customers per day Daytime customer base is 113,570 within a 5 mile radius OTHER FACTS: Jordan Landing has over 60 anchor, national or regional tenants, including Ross, Bed Bath & Beyond, Cinemark Theatre, Nike, Ulta, Tilly s, Super Walmart, Sam s Club, Sears Grand, Lowe s, Michael s, Petsmart, Target, Best Buy, Kohl s, Office Max, Barnes and Noble, Old Navy, and TJ Maxx Very visible: 1 Mile of Frontage From 7000 South to 7800 South with excellent visibility 7252 JORDAN LANDING BLVD, WEST JORDAN, UT 10
JORDAN LANDING TENANT MAP 7167 2.89 AC 2.89 ac 7252 JORDAN LANDING BLVD, WEST JORDAN, UT 11
LOCATION INFORMATION With its location in the central Salt Lake Valley, West Jordan is the perfect starting point to navigate the Wasatch Front. The Property s placement off Bangerter Highway gives it easy access to I-15 and I-215, making it the perfect gateway to Salt Lake, Davis, Weber, and Utah Counties. Currently the fourth-largest city in the state of Utah, West Jordan City stands at the center of explosive growth taking place in the western quadrant of Salt Lake Valley. A young, educated workforce makes for a great employee pool, and the city s central location in the heart of Salt Lake Valley put it in the middle of the transportation network and the valley s population. Within a 5 mile radius of the Property, there is a growing population of over 320,000 comprised of residents who, on average, are younger, have higher educational attainment, and have higher household incomes. Source: Economic Development Corporation of Utah; West Jordan City THE WEST JORDAN OFFICE MARKET The South Valley Office market, in which West Jordan resides, has been strong as much of the state s population growth continues to occur in and around this area. DEMOGRAPHICS 1 MILE 3 MILE 5 MILE Population 2016 Estimated 12,260 149,843 334,711 2021 Projected 12,735 156,836 355,046 Households 2016 Estimated 3,694 42,403 98,745 2021 Projected 3,849 44,354 104,541 Income 2016 Median HHI $60,398 $66,760 $65,159 2016 Average HHI $73,654 $77,233 $78,196 Employment Total Businesses 321 2,663 7,186 Total Employees 5,455 32,181 92,307 2016 SOUTH VALLEY OFFICE Type Vacancy Lease Rate Class A Office 5.3% $25.30 Class B Office 4.67% $25.39 Average 4.99% $25.35 Information provided by ESRI Business Analyst 7252 JORDAN LANDING BLVD, WEST JORDAN, UT 12
LOCATION INFORMATION MINUTES TO: Downtown Salt Lake City 24 The University of Utah 30 Salt Lake City International Airport 20 Murray 15 Sandy 15 Holladay/Ft. Union 15 Bountiful Salt Lake CBD West Jordan Murray Bangerter Hwy 7167 Center Park Drive 7181 Jordan Landing Blvd Campus View Drive 2.89 acres 7252 JORDAN LANDING BLVD, WEST JORDAN, UT 13
LOCATION INFORMATION MINUTES TO: Draper/Riverton 17 Lehi 20 Provo/Orem 40 Park City 45 Sandy Draper Lehi West Jordan Bangerter Hwy 2.89 ac Campus View Drive 7181 Center Park Drive 7167 7252 JORDAN LANDING BLVD, WEST JORDAN, UT 14
SECTION 3 MARKET OVERVIEW
MARKET INFORMATION - AMERICA S NEXT BOOM TOWN AREA HIGHLIGHTS #1 Hot startup city that isn t San Francisco or New York (Entrepreneur) #5 Fastest growing city in nation (Forbes, 2016) America s next boom town: #2 for significant tech-sector growth and large population increases (Forbes, 2015) West Jordan City is home to Oracle, Boeing, Sysco and Dannon as well as many other businesses #10 In national tech job growth #25 Tech-talent market #1 Region for new career opportunities (Fortune, 2015) #5 Hottest U.S. metro for advanced industries (Brookings) When it comes to staggering sums of venture capital raised in 2014, there s Utah, and then there s everyone else (Inc Magazine, 2014) This part of the Rockies isn t just turning out large amounts of fluffy, white stuff, it also seems to be producing a strong herd of unicorns, or startups worth at least $1 billion on paper (TechCrunch, 2015) Salt Lake City ranked #10 in national tech job growth Salt Lake City ranked #25 tech-talent market 7252 JORDAN LANDING BLVD, WEST JORDAN, UT 16
MARKET INFORMATION - 1ST QUARTER 2017 SALT LAKE MARKET BEST STATE Forbes Rates Utah #1 Best State for Business. PRO BUSINESS Pollina Corporate Ranks Utah #1 for Pro Business States 7252 JORDAN LANDING BLVD, WEST JORDAN, UT 17
MARKET INFORMATION - 1ST QUARTER 2017 SALT LAKE MARKET SALT LAKE COUNTY The South submarket experienced the majority of leasing activity during 2016. This continued trend, proves that the suburban marked was able to keep up demand for quality Class A space. CONSTRUCTION Salt Lake County office construction activity by quadrant 15% 44% 38% 1.5M Total 1,559,037 SF Under Construction COUNTY SUMMARY Stimulated by large demands for office space, the Salt Lake County office market grew by an additional 1.7 million square feet in 2016, primarily in the South submarket. Over 1.5 million square feet of space was under construction by the end of the year, scheduled to be delivered by mid-year 2017. Vacancy rates in Salt Lake County increased slightly from 8.6 percent in 2015 to 8.74 percent at the end of 2016, a marginal increase considering the amount of new product that came online that year. Subleasing became an emerging trend in 2016, as some new sublease space gave tenants more options at competitive rates. The average asking lease rate was $23.45. Available Class A office space increased steadily from $27.36 the end of 2015 to $28.94 at the end of 2016. The overall Class B average asking lease rate was $21.05, while the Class C average asking lease rate reached $18.61, a $1.24 increase from 2015. Rates are expected to remain fairly similar in 2017 due to increased office supply coupled with sublease space emerging in the market. 3% CENTRAL EAST CENTRAL WEST SOUTH EAST SOUTH WEST LEASE RATES (FS) 7252 JORDAN LANDING BLVD, WEST JORDAN, UT 18
MARKET INFORMATION - 1ST QUARTER 2017 SALT LAKE MARKET LEASE RATES (FS) Salt Lake County historic overall lease rates $30 $25 $20 $15 $10 OVERALL CLASS A CLASS B CLASS C VACANCY RATES Salt Lake County historic overall office vacancy 2016 8.74% 2014 10.02% 2015 8.60% $5 $0 $18.97 $19.57 $20.42 $20.10 $22.40 $23.45 2011 2012 2013 2014 2015 2016 2012 12.31% 2013 12.43% 2011 12.70% ABSORPTION RATES Salt Lake County YTD overall absorption 2011 2012 2013 2014 2015 2016 374K 437K 713K 850K 1.09M 1.15M 0 250K 500K 750K 1M WWW.CBCADVISORS.COM 3 7252 JORDAN LANDING BLVD, WEST JORDAN, UT 19
MARKET INFORMATION - 1ST QUARTER 2017 SALT LAKE MARKET SALT LAKE DOWNTOWN VS. SUBURBAN LEASE RATES (FS) Downtown historic overall lease rates $30 $25 SUBMARKET SUMMARY Tenants continue to seek out record amounts of Class A office product in the Salt Lake office market that is either recently completed or under construction. Notable projects completed in 2016 include 111 South Main (440,000 square feet), Vista Stations 4 through 8 (655,000 square feet), The Pointe I (77,703 square feet), the Overstock Peace Coliseum (231,000 square feet) and Town Ridge Center I & II (250,000 square feet), to name a few. Significantly, an additional 1.5 million square feet of space was under construction at the end of the year. Buildings such as 53rd Center 1 (200,000 square feet), 136 Center 1 (162,000 square feet), Sandy Center Plaza (327,000 square feet), Sandy Commerce Office Park (120,000 square feet), Sandy Towers East (150,000 square feet), SoJo Station (180,000 square feet) and View 72 (or CHG at 281,663 square feet) are scheduled to be complete in 2017. $20 $15 $10 $5 $0 $19.49 $20.82 $21.02 $20.85 $21.68 $23.94 2011 2012 2013 2014 2015 2016 OVERALL CLASS A CLASS B CLASS C 7252 JORDAN LANDING BLVD, WEST JORDAN, UT 20
MARKET INFORMATION - 1ST QUARTER 2017 SALT LAKE MARKET LEASE RATES (FS) Suburban historic overall lease rates $30 $25 $20 $15 $10 Downtown SLC VACANCY RATES Historic overall office vacancy 2016 2016 11.95% 6.98% Suburban SLC 2015 2015 11.51% 6.91% $5 $0 $18.62 $18.52 $19.93 $19.57 $22.98 $23.03 2011 2012 2013 2014 2015 2016 EMERGING TRENDS OF INCREASED SUBL AVAILABLE SPACE 7252 JORDAN LANDING BLVD, WEST JORDAN, UT 21
MARKET INFORMATION - 1ST QUARTER 2017 SALT LAKE MARKET The northern Utah County submarket continued to see high activity levels while demand for Class A space continues across the county. CONSTRUCTION Utah County office construction activity by quadrant CENTRAL UTAH COUNTY 17% 83% 357K Total 357,133 SF Under Construction NORTH COUNTY SUMMARY The Utah County office market continued to experience an imbalanced rate of market activity. The North quadrant saw the most significant amounts of net positive absorption, which accounted for 1.06 million square feet of the 1.13 million square-foot total. Asking lease rates increased from $18.54 full service at the end of 2015 to $23.08 full service at the end of 2016, caused by the large amounts of new Class A office space that was introduced in 2016. The Central quadrant s average asking lease rate also increased slightly from $18.08 full service to $19.45. Some areas of Utah County saw a slight slowing of activity as tenants who pre-leased space moved in. Class A office space in the North quadrant experienced record-breaking positive absorption of 1,070,801 square feet, while Class A space reached 87,141 square feet of net positive absorption in the Central quadrant and 38,500 square feet in the South quadrant. The overall vacancy rate increased from 4.35 percent to 6.8 percent, caused mainly by the completion of 1,651,541 square feet of construction in 2016. Additionally, over 357,000 square feet of construction is estimated to be completed by mid-year 2017. This new amount of Class A office space would allow tenants who are currently looking for ideal, move-in-ready space to have more options than in the last two years. LEASE RATES (FS) 7252 JORDAN LANDING BLVD, WEST JORDAN, UT 22
MARKET INFORMATION - 1ST QUARTER 2017 SALT LAKE MARKET LEASE RATES (FS) Utah County average asking lease rates by class $25 $23.41 VACANCY RATES Utah County vacancy rates by class $21.34 $20 $15 $10 $18.02 $15.00 Overall 6.83% Class A 8.14% $5 Class B 5.22% $0 CLASS A CLASS B CLASS C OVERALL Class C 7.16% ABSORPTION RATES Utah County YTD absorption by quadrant North Central South West Overall 173 0 66K 1.06M 1.13M 0 250K 500K 750K 1M Note: Numbers based on change from December 2015 to December 2016 5 7252 JORDAN LANDING BLVD, WEST JORDAN, UT 23
MARKET INFORMATION - 1ST QUARTER 2017 SALT LAKE MARKET LOOKING AHEAD New construction is expected to slow during 2017, as landlords focus on filling the remainder of their newly completed Class A properties. UTAH FORECAST Projections estimate that by year-end 2017 the market will settle into its expanded office inventory. Lease rates should remain relatively unchanged as new product and the remaining older generation of office space keep lease rates competitive. Landlords will be focused on filling the remainder of available space, possibly offering incentivized tenant improvement packages. Sublease space will continue to be an option for tenants throughout the year. Developers will need to upgrade Class B and C buildings to remain competitive in the market. NO. 2 Provo and Orem ranked No. 2 and Salt Lake City No. 5 by Business Insider for the 15 U.S. Cities That Are Driving the Future. RANKED #1 Provo ranked #1 for best downtowns in country by Livability. 2ND BEST 7252 JORDAN LANDING BLVD, WEST JORDAN, UT 24
MARKET INFORMATION - 1ST QUARTER 2017 SALT LAKE MARKET NOTABLE OFFICE LEASES Sub Market Comp SF Tenant Property Name Sandy South Towne 83,925 Apollo Medical Extrusion Technologies 8760 S. Sandy Pkwy. Sandy South Towne 75,000 Connexion Point Sandy Commerce Office Park Sandy South Towne 73,850 DealerTrack Systems, Inc. RiverPark 3 Sandy South Towne 69,172 E*Trade Financial Corporation South Towne Corporate Center 2 Central Valley East 63,175 Pharmaceutical Research Associates, Inc. Evergreen Office Plaza Sandy South Towne 62,706 InMoment SoJo Station 1 Cottonwood 60,358 Healthcare Quality Catalyst Millrock Park West CBD 40,030 Workman Nydegger World Trade Center Cottonwood 37,009 Social Finance, Inc. dba SoFi Cornerstone I CBD 36,601 State of Utah Business Resource Center Broadway Building CBD 31,956 Dorsey 111 S Main Utah County North 106,000 Entrata Traverse Heights Utah County Central 74,973 Imagine Learning, Inc. Imagine Learning Bldg. (Former Qualtrics Bldg.) Utah County North 65,172 Instructure, Inc. Grove Tower Utah County North 59,170 Young Living Essential Oils Thanksgiving Point 1 - Young Living Essentials Utah County North 51,785 Global Payments Mountain Tech Center Utah County Central 40,000 Clearlink (Sykes) University Place Utah County North 41,848 Horrocks Engineers, Inc. Grove Creek 1 Utah County North 35,606 Bamboo HR, LLC Canopy IV Utah County Central 30,000 Northstar Alarm Services, LLC University Place Utah County North 20,000 Bodyguardz Thanksgiving Station 4 7252 JORDAN LANDING BLVD, WEST JORDAN, UT 25
SALT LAKE CITY, UTAH 111 SOUTH MAIN STREET, SUITE 2200 SALT LAKE CITY, UT 84111 801.947.8300 www.cbcadvisors.com www.investment-cre.com Corporate Headquarters 6550 South Millrock Dr., Suite 200 Salt Lake City, UT 84121 801.947.8300