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CAMBY, IN
Heartland Landing
OFFERING MEMORANDUM
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 Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. Marcus & Millichap 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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.
CAMBY, IN
Heartland Landing
Marcus & Millichap 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 Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, 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
MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
NON-ENDORSEMENT NOTICE
Section 1 PROPERTY DESCRIPTION
Section 2 PRICING AND FINANCIAL ANALYSIS
Section 3 MARKET OVERVIEW
Section 4 DEMOGRAPHIC ANALYSIS
TABLE OF CONTENTS
Heartland LandingCAMBY, IN
Heartland LandingCAMBY, IN
PROPERTY DESCRIPTION
Marcus & Millichap is pleased to present Heartland Landing, a 21,683-square foot multi-tenant retail strip center located on the southwest side of Indianapolis, Indiana in a suburb called Camby and is shadow-anchored by Meijer, Menards, and a Wal-Mart Supercenter. The property is located along Indiana State Road 67 and is surrounded by such retailers as Starbucks, Goodwill, McDonald's, Applebee's, Bob Evans, Pizza Hut, and Wendy's, to name a few. The property is part of a business park called Heartland Crossing Business Park and the Heartland Crossing Community, which is anchored by the retailers listed above and houses thousands of residential houses and a beautiful golf course.
Heartland Landing is currently occupied by a strong mix of local and regional tenants that provide a stable, low-risk lease rollover over the next ten years for the investor. The anchor tenant - 24 Hours Fitness Holdings, LLC, d.b.a. Anytime Fitness - one of the largest Anytime Fitness franchisees in the country, recently proactively extended their lease to go out thru 2022, helping to give the owner over 50 percent of the gross leasable area leased up for five years or longer. Additionally, the co-anchor (Verizon franchisee Moorehead Communications) recently executed a new lease and are one of the largest franchisees in the country.
The opportunity for the investor is to acquire a well-located, cash-flowing, stable investment located in the Indianapolis MSA with over 10 percent vacancy upside along with over 50 percent of the GLA secured for five years or better. Paragon Realty has indicated its interest to continue to manage the property should an investor desire. Being shadow-anchored by a Wal-mart Supercenter, Menards, and Meijer and surrounded by such retailers as McDonald's, Starbucks, PNC Bank, and Goodwill as well as thousands of households, Heartland Landing should prove to be an excellent and stable investment for any investor.
Investment Highlights
■ 21,683-Square Foot Multi-Tenant Retail Center inIndianapolis MSA
■ Shadow-Anchored by Meijer, Menards, and Wal-MartSupercenter
■ Surrounded by Such Retailers as McDonald's, Wendy's,Starbucks, Applebee's, and Bob Evans
■ Outparcel to a Major Mixed Use Development IncludingRetail, Office, and Residential Properties
■ Anchored by Recently Extended Anytime Fitness Franchisee- One of the Largest in the Country
■ Over 50 Percent of the GLA Secured for Five Years or More
1
PROPERTY DESCRIPTION
Heartland LandingCAMBY, IN
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
INVESTMENT OVERVIEW
The Offering
Property Heartland Landing
Property Address 10302 Prosperity Circle
Camby, IN 46113
Assessor's Parcel Number 32-16-20-353-004.000-011
Site Description
Number of Stories 1
Year Built 2005
Gross Leasable Area (GLA) 21,683 SF
Lot Size 2.57 AC
Type of Ownership Fee Simple
Landscaping Commercial
Topography Flat
Construction
Foundation Concrete Slab
Framing Steel
Exterior Masonry
Parking Surface Asphalt
Roof Rubber Membrane
Mechanical
Utilities Municipal
2
PROPERTY DESCRIPTION
Heartland LandingCAMBY, IN
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
PROPERTY SUMMARY
3
PROPERTY DESCRIPTION
Heartland LandingCAMBY, IN
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
PICTURE PAGE 4
4
PROPERTY DESCRIPTION
Heartland LandingCAMBY, IN
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
PICTURE PAGE 4
5
PROPERTY DESCRIPTION
Heartland LandingCAMBY, IN
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
Local Map Regional Map
AREA MAPS
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Heartland LandingCAMBY, IN
PRICING AND FINANCIAL ANALYSIS
Price $3,975,000
Down Payment 25% $993,750
Price per Square Foot (GLA) $183.32
Gross Leasable Area (GLA) 21,683
Year Built 2005
Lot Size 2.57 AC
VITAL DATA
CAP Rate - Current 8.25%
Net Operating Income - Current $328,021
Net Cash Flow After Debt Service - Current $126,114
Total Return - Current 19.20% / $190,759
CAP Rate - Pro Forma 9.08%
Net Operating Income - Pro Forma $360,865
Net Cash Flow After Debt Service - Pro Forma $158,958
Total Return - Pro Forma 22.50% / $223,603
8
Major Tenants
PRICING AND FINANCIAL ANALYSIS
Tenant Name
Subway Suite 100
Indy CB Suite 101
Party Station Suite 102
VIP Nails Suite 103
Denning Insurance Suite 104
Moorehead Communications Suite 105
Anytime Fitness Suite 107
Heartland LandingCAMBY, IN
Major Employers
CompanyLocal
Employees
Ingram Micro Mobility Inc 4,008
Allison Parts Distribution 1,730
Whirlpool 800
Nice-Pak Products Inc 550
Walmart 500
Lockheed Martin 435
Becton Dickinson and Company 429
Ozburn-Hessey Logistics LLC 388
Dicks Sporting Goods Inc 320
Kendrick Memorial Hospital 319
Con-Way Freight Inc 310
TOA (usa) LLC 292
Demographics
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
1-Mile 3-Miles 5-Miles
2014 Total
Population
3,176 24,460 48,319
2019 Total
Population
3,848 27,163 53,192
2014 Total
Households
1,181 9,038 17,945
2019 Total
Households
1,455 10,113 20,020
Median HH Income $60,329 $58,362 $59,140
Per Capita Income
(based on Total
Population)
$26,268 $25,702 $26,906
Average (Mean) HH
Income
$70,396 $69,268 $70,795
OFFERING SUMMARY
9
PRICING AND FINANCIAL ANALYSIS
Heartland LandingCAMBY, IN
Existing Financing
Loan Type Free and Clear
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
Proposed Financing
First Trust Deed
Loan Amount $2,981,250
Loan Type Proposed New
Interest Rate 4.65%
Amortization 25 Years
Debt Coverage Ratio 1.62
FINANCING
10
PRICING AND FINANCIAL ANALYSIS
Heartland LandingCAMBY, IN
VIP Nails: 7.15% Denning Insurance: 5.09%
Anytime Fitness: 36.93%
Subway: 7.56%Party Station: 8.30%
Indy CB (Dark): 11.07%
Vacant: 11.58%
Verizon Wireless: 12.33%
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
Current Per SF Pro Forma Per SF
Real Estate Taxes $35,498 $1.64 $39,183 $1.81
Insurance $5,721 $0.26 $6,315 $0.29
CAM
Utilities $16,671 $0.77 $18,402 $0.85
Repairs & Maintenance $30,877 $1.42 $34,082 $1.57
Contract Services $10,000 $0.46 $11,738 $0.54
TOTAL CAM $57,548 $2.65 $64,222 $2.96
Management Fee (% of EGI) $18,223 $0.84 $18,889 $0.87
TOTAL EXPENSES $116,990 $5.40 $128,609 $5.93
Tenants (% OF GLA)
EXPENSES
11
PRICING AND FINANCIAL ANALYSIS
Heartland LandingCAMBY, IN
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
Current Per SF Pro Forma Per SF
Base Rent
Occupied Space $373,758 $17.24 $391,172 $18.04
GROSS POTENTIAL RENT $373,758 $17.24 $391,172 $18.04
Expense Reimbursements
Real Estate Taxes $31,389 $1.45 $34,647 $1.60
Insurance $5,059 $0.23 $5,584 $0.26
CAM $50,886 $2.35 $56,169 $2.59
Management Fee $16,114 $0.74 $17,260 $0.80
Signage $4,200 $0.19 $4,200 $0.19
GROSS POTENTIAL INCOME $481,406 $22.20 $509,032 $23.48
Vacancy/Collection Allowance (% of GPR) 9.7% / $36,395 $1.68 5% / $19,559 $0.90
EFFECTIVE GROSS INCOME $445,011 $20.52 $489,473 $22.57
Total Expenses $116,990 $5.40 $128,609 $5.93
NET OPERATING INCOME $328,021 $15.13 $360,865 $16.64
Gross Leasable Area (GLA) 21,683 SF
INCOME & EXPENSES
12
PRICING AND FINANCIAL ANALYSIS
Heartland LandingCAMBY, IN
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
Suite Tenant GLA % of
GLA
Lease
Commence
Lease
Expire
Annual
Rent
Rent/
SF
Changes
On
Changes
To
Expense
Reimbs.
Other:
Options/
% Rent
Lease
Type
100 Subway 1,639 7.56% May-2006 May-2021 $39,540.00 $24.12 $8,859.00 NNN
101 Indy CB (Dark) 2,400 11.07% April-2013 October-2018 $34,200.00 $14.25 $12,973.00 NNN
102 Party Station 1,800 8.30% September-2016 November-2021 $28,800.00 $16.00 $9,730.00 NNN
103 VIP Nails 1,550 7.15% July-2016 November-2026 $22,088.00 $14.25 $8,379.00 NNN
104 Denning Insurance 1,104 5.09% October-2014 November-2017 $18,878.00 $17.10 $5,967.00 NNN
105 Verizon Wireless 2,673 12.33% September-2006 August-2025 $59,342.00 $22.20 $14,449.00 NNN
106 Vacant 2,510 11.58% $43,925.00 $17.50
107 Anytime Fitness 8,007 36.93% September-2007 December-2022 $134,516.00 $16.80 $43,284.00 NNN
TOTAL VACANT 2,510 11.58% $43,925.00
TOTAL OCCUPIED 19,173 88.42% $337,364.00 $103,641.00
TOTAL 21,683 100.00% $381,289.00 $103,641.00
TENANT SUMMARY
13
PRICING AND FINANCIAL ANALYSIS
Heartland LandingCAMBY, IN
For The Year Beginning Year 1
Jan 2017
Year 2
Jan 2018
Year 3
Jan 2019
Year 4
Jan 2020
Year 5
Jan 2021
Year 6
Jan 2022
Year 7
Jan 2023
Year 8
Jan 2024
Year 9
Jan 2025
Year 10
Jan 2026
Tenant(s) Name Denning
Insurance
Indy CB
(Dark)
Subway
Party
Station
Anytime
Fitness
Verizon
Wireless
VIP Nails
Total Number of Tenants 1 1 2 1 1 1
Total Square Feet 1,104 2,400 3,439 8,007 2,673 1,550
Total Percentage 5.1% 11.1% 15.9% 36.9% 12.3% 7.2%
Cumulative Percentage 5.1% 16.2% 32.0% 69.0% 81.3% 88.4%
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
Percentage of SF Expiring Number of Tenants Expiring Cumulative % of SF Expiring
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
To
tal P
roje
ct S
qu
are
Fo
ota
ge
0
1
2
Nu
mb
er
of T
en
an
tsJan 2017
5%Jan 2018
11%Jan 2019
0%Jan 2020
0%Jan 2021
16%Jan 2022
37%Jan 2023
0%Jan 2024
0%Jan 2025
12%Jan 2026
7%
LEASE EXPIRATION SUMMARY
Any projections, opinions, assumptions or estimates used here within are for example purposes only and do not represent the current or future performance of the property.
Tenant Name: Anytime Fitness
Lease Commencement: September 2007
Lease Expiration: December 2022
Gross Leasable Area (GLA): 8,007
Original Term: 10 Years
Option Term:
Pro Rata Share of Project: 37%
Headquartered: Woodbury, Minnesota
No. of Locations: Over 3,000
Web Site: www.anytimefitness.com
14
PRICING AND FINANCIAL ANALYSIS
Heartland LandingCAMBY, IN
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
TENANT & LEASE SUMMARY
Tenant Name: Subway
Lease Commencement: May 2006
Lease Expiration: May 2021
Gross Leasable Area (GLA): 2,400
Original Term: 10 Years
Option Term:
Pro Rata Share of Project: 8%
Headquartered: Milford, Connecticut
No. of Locations: Over 44,000
Web Site: www.subway.com/en-us
Tenant Name: Moorehead Communications
(Verizon)
Lease Commencement: March 2015
Lease Expiration: August 2025
Gross Leasable Area (GLA): 2,673
Original Term: 10 Years
Option Term:
Pro Rata Share of Project: 12%
Headquartered Carmel, Indiana
No. of Locations 263
Website: www.dealer.tccrocks.com
15
10302 Prosperity Circle
Camby, IN 46113
Price $3,975,000
Down Payment 25% $993,750
Gross Leasable Area (GLA) 21,683
Price/SF $183.32
CAP Rate - Current 8.25%
CAP Rate - Pro Forma 9.08%
Lot Size 2.57 AC
Year Built 2005
FIRST TRUST DEED
Loan Amount $2,981,250
Loan Type Proposed New
Interest Rate 4.65%
Amortization 25 Years
PRICING AND FINANCIAL ANALYSIS
Annualized Operating Data
Heartland LandingCAMBY, IN
Income Current Pro Forma
Base Rent
Occupied Space $373,758 $391,172
Gross Potential Rent $373,758 $391,172
Expense Reimbursements $107,648 $117,860
Gross Potential Income $481,406 $509,032
Vacancy/Collection Allowance 9.7% / $36,395 5% / $19,559
Effective Gross Income $445,011 $489,473
Total Expenses $116,990 $128,609
Net Operating Income $328,021 $360,865
Debt Service $201,907 $201,907
Debt Coverage Ratio 1.62 1.79
Net Cash Flow After Debt Service 12.69% / $126,114 16.00% / $158,958
Principal Reduction $64,645 $64,645
Total Return 19.20% / $190,759 22.50% / $223,603
Location
Financing
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
ExpensesReal Estate Taxes $35,498 $39,183
Insurance $5,721 $6,315
CAM
Utilities $16,671 $18,402
Repairs & Maintenance $30,877 $34,082
Contract Services $10,000 $11,738
TOTAL CAM $57,548 $64,222
Management Fee (% of EGI) 4.1% / $18,223 4% / $18,889
TOTAL EXPENSES $116,990 $128,609
EXPENSES/SF $5.40 $5.93
Loan information is time sensitive and subject to
change. Contact your local Marcus & Millichap Capital
Corporation representative.
FINANCIAL OVERVIEW
Heartland LandingCAMBY, IN
MARKET OVERVIEW
17
MARKET OVERVIEW
Heartland LandingCAMBY, IN
Indianapolis-Carmel-Anderson Metro
Geography
The Indianapolis metro is situated in the Central Till
Plains region of central Indiana and consists of Marion,
Johnson, Hamilton, Boone, Hendricks, Morgan,
Hancock, Shelby and Madison counties. The metro
lacks formidable development barriers, except for the
several rivers and creeks that traverse the region. Marion
County, home to Indianapolis, is surrounded by mainly
rural counties, offering builders ample land for
residential and commercial development. Population
growth is primarily concentrated to the northern
suburbs and west of the city.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
INDIANAPOLIS
Market Highlights
Premier distribution hub
■ Around 50 percent of the U.S. population is within
a one-day drive of Indianapolis.
Major health sciences center
■ Eli Lilly & Co., Roche Diagnostics Corp. and
Covance Inc. maintain operations in the region.
Low costs of living and doing business
■ Indianapolis’ costs are far below national averages,
attracting businesses and residents to the area.
18
MARKET OVERVIEW
Largest Cities in Metro by Population
Heartland LandingCAMBY, IN
* ForecastSources: Marcus & Millichap Research Services, U.S. CensusBureau, Experian
Metro
The Indianapolis metro is composed of 11 counties, the
largest of which is Marion. The metro’s population is
forecast to increase 5.4 percent over the next five years.
The most populous city in the metro is Indianapolis,
claiming 850,000 residents, followed by Carmel.
Infrastructure
Indianapolis is a trade and transportation center, with
50 percent of the U.S. population within an eight-hour
drive. The metro is often referred to as the “Crossroads
of America” because of the four interstates that converge
in the metro, connected by a beltway around the city.
The area is served by two Class I railroads, CSX and
Norfolk Southern, and four short lines: Indiana
Southern, Indiana Railroad Co., Louisville & Indiana
Rail and Central Railroad of Indiana.
Indianapolis International Airport is located 15 minutes
from downtown. Activity continues to increase at the
airport, which currently supports approximately 7.2
million passengers per year. Other airports in the area
are the Metropolitan Airport, Indianapolis Regional
Airport, Eagle Creek Airpark, Gordon Graham Field
and the Downtown Heliport.
Indianapolis Public Transportation Corp. (IndyGo)
provides bus service throughout the city, while Central
Indiana Commuter Services offers bus service to the
surrounding counties.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
Indianapolis 850,000
Carmel 88,200
Fishers 84,400
Anderson 59,000
Noblesville 55,700
Greenwood 53,000
INDIANAPOLIS
Airports
■ Indianapolis International Airport
■ Four general aviation airports
■ Downtown Heliport
Major Roadways
■ Interstates 65, 69, 70, 74 and 465
Rail
■ Freight - CSX, Norfolk Southern, four short-
line railroads
■ Passenger - Amtrak
The Indianapolis Metro is:
■ 180 miles from Chicago
■ 265 miles from Milwaukee
■ 270 miles from Detroit
■ 560 miles from Baltimore
19
MARKET OVERVIEW
Heartland LandingCAMBY, IN
* ForecastSources: Marcus & Millichap Research Services, Bureau ofEconomic Analysis, Moody’s Analytics, U.S. Census Bureau,Experian
Economy
Indianapolis underwent an economic renaissance during
the past two decades. The importance of manufacturing
companies lessened as other employment sectors began
to play larger roles.
Local pharmaceutical production facilities have helped
stabilize manufacturing employment despite the sector’s
diminished significance. The metro is one of the key
health-sciences centers in the nation, anchored by
several pharmaceutical and life-sciences companies.
Indianapolis is easily accessible to many major metros by
ground or air, resulting in the trade, transportation and
utilities sector posting phenomenal growth in the past
three decades. The industry has added more than
70,000 positions since 1990 and now accounts for 22
percent of metro area jobs.
Annual GMP in Indianapolis is expected to top 5.2
percent this year, well above the national level. Retail
sales rose 6.3 percent in 2015, higher than the U.S.
average of 2.2 percent. Retail sales growth is expected to
continue over the coming two years at a pace exceeding
6 percent. The concentration of intellectually intensive
firms, low business costs and right-to-work legislation
signal the state’s pro-business stance.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
INDIANAPOLIS
20
MARKET OVERVIEW
Heartland LandingCAMBY, IN
Labor
After rapid gains in the Indianapolis employment base over the previous five years, the rate of job growth is
expected to slow near 1.6 percent throughout 2020, expanding the number of jobs to more than 1.1 million. The
diversifying economy will redistribute jobs toward some of the metro’s traditionally smaller employment sectors.
As a major transportation and distribution hub, the largest share of Indianapolis jobs belong to the trade,
transportation, and utilities sector. This sector comprises 22 percent of all metro employment. As the economy
shifts away from manufacturing, the area is drawing more major national and global firms to maintain corporate
headquarters and regional facilities in the metro, including Rolls-Royce, Cummins and Simon Property Group. As
a result, the number of workers in the professional and business services sector has grown dramatically, now
comprising 16 percent of total metro employment. This sector will post growth of 3.6 percent in each of the next
five years.
The numerous hospitals and institutions of higher learning help to boost education and health services segment to
14 percent of total employment. Growth in this sector is expected to rise as the baby boom generation ages into
their retirement years, increasing the need for healthcare. Through the next five years, this segment will increase 2
percent annually.
All employment sectors, except government, are expected to grow in each of the next five years. Some of the most
dramatic employment gains will be in construction, where expansion should reach 5 percent annually.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
* ForecastSources: Marcus & Millichap Research Services, BLS, Moody’s Analytics
INDIANAPOLIS
21
MARKET OVERVIEW
Heartland LandingCAMBY, IN
Major Employers
Employers
Indianapolis offers a diverse employment base. State and
local government entities remain important employers,
but the private industry is creating a multitude of
higher-paying positions. Indianapolis is considered an
intellectual capital due to its concentrations of
healthcare-related companies and post-secondary
educational institutions.
Eli Lilly & Co. maintains its corporate headquarters in
Indianapolis. The metro, which accounts for a sizable
percentage of the company’s workforce, is home to Eli
Lilly’s research laboratories, clinical trials and drug
manufacturing. The aging population and heightened
awareness of health issues are anticipated to improve Eli
Lilly’s position in the marketplace, which will positively
impact Indianapolis over the next several years. Roche
Diagnostics is another major company in the region’s
health research.
Anthem Inc., a national healthcare benefits provider, is
based in Indianapolis, employing thousands of local
workers. Other large healthcare companies include
Indiana University Health and St. Vincent Hospital.
FedEx and Amazon are major employers in the
Indianapolis logistics and distribution industry and
provide thousands of jobs to the region. FedEx’s second-
largest hub in the world is located at Indianapolis
International Airport.
* ForecastSources: Marcus & Millichap Research Services, BLS, Moody’sAnalytics, Experian
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
Eli Lilly & Co.
Indiana University Health
Rolls-Royce Corp.
Community Health
Marsh Supermarkets
Kroger
IUPUI
FedEx
Roche Diagnostics
INDIANAPOLIS
22
MARKET OVERVIEW
Heartland LandingCAMBY, IN
Demographics
Population growth in Indianapolis will continue to
outpace the national rate of expansion over the next five
years. During the span, the population will reach more
than 2 million residents, increasing by more than
106,000 residents.
The Indianapolis metro has a relatively young
population, with a median age of 36.1 years old,
compared with the U.S. median of 37.5 years old. The
presence of several universities and colleges, along with a
diverse economic base, lures a young workforce. The
segment of population between 20 to 24 years old
currently makes up 6.4 percent of the population.
Metro residents have a higher educational attainment
level than the U.S. average. Roughly 30 percent of
individuals over the age of 25 have earned at least a
bachelor’s degree, with 10.4 percent also holding a
graduate degree. Higher education levels often translate
into higher incomes. The median income in the metro
at $56,100 is slightly above the national median.
The median home price in Indianapolis, at $154,800, is
below the U.S. median. In the next five years, rising
household income will slightly surpass the increase in
housing prices, making homeownership attainable for
more households. Currently, 66.1 percent of households
own their homes.
* ForecastSources: Marcus & Millichap Research Services, AGS, Experian,Moody’s Analytics, U.S. Census Bureau
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
INDIANAPOLIS
23
MARKET OVERVIEW
Heartland LandingCAMBY, IN
The information contained in the market overview comes from sources deemed to be reliable, however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. The most timely data available at time of production, including estimates and forecasts, were used and may be subject to revision.
Quality of Life
Indianapolis offers residents many big-city amenities in
an affordable, small-town atmosphere. The city is home
to several high-profile auto races, including the
Indianapolis 500 and Brickyard 400. Races are hosted at
the Indianapolis Motor Speedway and the Lucas Oil
Raceway at Indianapolis.
The metro has two major league sports teams: the
Indianapolis Colts (NFL) and the Indiana Pacers
(NBA). The area also has a vibrant cultural and arts
scene, with more than 200 art galleries and dealers, the
Indianapolis Symphony Orchestra and a variety
museums, including the Eiteljorg Museum of American
Indians and Western Art. Additionally, the Children’s
Museum of Indianapolis is one of the largest children’s
museums in the world.
Outdoor recreational activities abound. White River
State Park in central Indianapolis is home to a
multitude of cultural institutions, including the
Indianapolis Zoo, and numerous trails and paths to
hike, bike or skate. The city is only 90 miles from Paoli
Peaks, where visitors can partake in wintertime sports.
Golf aficionados can enjoy the dozens of 18-hole golf
courses located in the region.
* ForecastSources: Marcus & Millichap Research Services, NationalAssociation of Realtors, Moody’s Analytics, U.S. Census Bureau
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
INDIANAPOLIS
24
MARKET OVERVIEW
Heartland LandingCAMBY, IN
Stream of Investors Seek Higher Cash Flows in Indianapolis Retail Assets
Steady employment growth is drawing job seekers to the metro, supporting Indianapolis’ retail sector. Strong
hiring has dropped the unemployment rate below 5 percent, attracting new residents with more than 10,500
additional households expected in 2016. This growth coupled with rising incomes will drive retail sales up,
benefiting existing stores as well as luring new ones. In Fishers, Ikea will begin construction of its first store in the
state and in Greenwood, work is slated to begin on the first buildings in the 700,000-square-foot Greenwood
Town Center. Both projects have 2017 openings scheduled. Throughout the metro, inline retailers of some
shopping centers anchored by Kroger or Marsh should benefit as these companies remodel stores in an effort to
retain market share. This year, Giant Eagle, Wal-Mart and Save-A-Lot join the list of grocers adding locations.
Sizable tenant demand will contribute to overall vacancy tightening to the lowest rate in more than 10 years,
pushing rents above the 2008 peak.
The metro’s stability and the potential for higher cash flows are drawing investors from the coasts and other asset
classes to retail properties. Buildings in Plainfield, Noblesville or Carmel will especially be desired for their strong
population gains or desirable retail demographics. Buyers are getting more aggressive, particularly for net-leased
single-tenant assets, at cap rates that are generally in the 5 to 6 percent range. Grocery-anchored centers are also in
demand and will receive multiple offers at initial yields in the 7 percent span. As competition for the limited
supply of quality assets intensifies, buyers will broaden their investment parameters and move down the quality
scale or into secondary areas. Value-add investors can still find double-digit yields in redeveloping neighborhoods
like Speedway. As investor interest and valuations rise, more owners will re-evaluate holdings, which may provide
additional buying opportunities this year.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
* Forecast
INDIANAPOLIS
25
MARKET OVERVIEW
Heartland LandingCAMBY, IN
2016 Market Forecast
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
* ForecastSources: CoStar Group, Inc.; Real Capital Analytics
NRI Rank39, up 2 places
Employmentup 2.4%
Construction700,000 sq. ft.
Vacancydown 50 bps
Rentup 1.7%
Investment
Indianapolis moved up two places amid strengthening demand and low supply-sidepressure.
During 2016, Indianapolis employers will create 25,000 positions, a 2.4 percent gain. Thisfollows a 2.7 percent increase last year.
Construction activity will dip slightly this year as builders complete 700,000 square feet, a0.7 percent expansion in stock. Last year 800,000 square feet was delivered.
A slower development pipeline amid stronger tenant demand will lower vacancy 50 basispoints to 6.4 percent in 2016. A 10-basis-point drop was recorded in 2015.
In 2015, rent jumped 4.2 percent to the highest level in more than seven years. Lessavailable space will push rent even higher this year as the average asking rent climbs 1.7percent to $14.49 per square foot.
Redeveloping urban neighborhoods such as Broad Ripple in Indianapolis are attractingmixed-use developments that will boost surrounding property valuations and providevalue-add opportunities nearby.
INDIANAPOLIS
Heartland LandingCAMBY, IN
DEMOGRAPHIC ANALYSIS
1 Mile 3 Miles 5 Miles
2000 Population 2,318 16,635 36,220
2010 Population 3,053 23,840 46,830
2014 Population 3,176 24,460 48,319
2019 Population 3,848 27,163 53,192
2000 Households 867 6,233 13,262
2010 Households 1,134 8,804 17,385
2014 Households 1,181 9,038 17,945
2019 Households 1,455 10,113 20,020
2014 Average Household Size 2.74 2.71 2.68
2014 Daytime Population 1,354 7,443 23,717
2000 Owner Occupied Housing Units 73.74% 76.67% 75.80%
2000 Renter Occupied Housing Units 19.37% 18.44% 18.70%
2000 Vacant 6.88% 4.88% 5.50%
2014 Owner Occupied Housing Units 71.01% 74.86% 74.50%
2014 Renter Occupied Housing Units 28.99% 25.14% 25.50%
2014 Vacant 5.03% 4.40% 4.39%
2019 Owner Occupied Housing Units 69.89% 74.40% 74.09%
2019 Renter Occupied Housing Units 30.11% 25.60% 25.91%
2019 Vacant 4.94% 4.38% 4.33%
$ 0 - $14,999 7.9% 7.5% 7.3%
$ 15,000 - $24,999 6.3% 8.8% 8.7%
$ 25,000 - $34,999 10.6% 12.0% 11.3%
$ 35,000 - $49,999 14.0% 13.4% 14.1%
$ 50,000 - $74,999 25.7% 24.4% 23.1%
$ 75,000 - $99,999 15.7% 15.0% 15.4%
$100,000 - $124,999 9.1% 9.2% 10.2%
$125,000 - $149,999 5.0% 5.3% 5.2%
$150,000 - $199,999 4.0% 2.5% 2.7%
$200,000 - $249,999 1.0% 0.7% 1.0%
$250,000 + 0.8% 1.1% 1.1%
2014 Median Household Income $60,329 $58,362 $59,140
2014 Per Capita Income $26,268 $25,702 $26,906
2014 Average Household Income $70,396 $69,268 $70,795
Demographic data © 2012 by Experian.
27
DEMOGRAPHIC ANALYSIS
Heartland LandingCAMBY, IN
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
DEMOGRAPHIC REPORT
Geography: 5 miles
Population
In 2014, the population in your selected geography is 48,318. The population has changed by 33.40% since 2000. It is estimated
that the population in your area will be 53,191 five years from now, which represents a change of 10.08% from the current year. The
current population is 50.18% male and 49.81% female. The median age of the population in your area is 36.2, compare this to the
Entire US average which is 37.3. The population density in your area is 614.35 people per square mile.
Households
There are currently 17,944 households in your selected geography. The number of households has changed by 35.31% since 2000.
It is estimated that the number of households in your area will be 20,020 five years from now, which represents a change of 11.56%
from the current year. The average household size in your area is 2.67 persons.
Income
In 2014, the median household income for your selected geography is $59,139, compare this to the Entire US average which is
currently $51,972. The median household income for your area has changed by 11.85% since 2000. It is estimated that the median
household income in your area will be $65,029 five years from now, which represents a change of 9.95% from the current year.
The current year per capita income in your area is $26,905, compare this to the Entire US average, which is $28,599. The current
year average household income in your area is $70,795, compare this to the Entire US average which is $74,533.
Race & Ethnicity
The current year racial makeup of your selected area is as follows: 92.24% White, 3.56% Black, 0.01% Native American and 1.15%
Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and
5.02% Asian/Pacific Islander.
People of Hispanic origin are counted independently of race. People of Hispanic origin make up 3.14% of the current year
population in your selected area. Compare this to the Entire US average of 17.13%.
Housing
In 2000, there were 10,637 owner occupied housing units in your area and there were 2,624 renter occupied housing units in your
area. The median rent at the time was $544.
Employment
In 2014, there are 23,716 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed
that 55.79% of employees are employed in white-collar occupations in this geography, and 44.48% are employed in blue-collar
occupations. In 2014, unemployment in this area is 6.62%. In 2000, the average time traveled to work was 26.1 minutes.
Demographic data © 2012 by Experian.
28
DEMOGRAPHIC ANALYSIS
Heartland LandingCAMBY, IN
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.
SUMMARY REPORT
CAMBY, IN
OFFERING MEMORANDUM
Heartland Landing
Offices Throughout the U.S and Canada
www.MarcusMillichap.com
Exclusively Listed By:
Joseph DiSalvoVice President Investments
Indianapolis OfficeLicense: IN: RB14051407
Tel: (317) 218-5334Fax: (317) 218-5310
[email protected]/JosephDiSalvo
Jordan KlinkFirst Vice President Investments
Senior Director, National Retail GroupIndianapolis Office
License: IN: AB21401453License: IN: RB14043752
Tel: (317) 218-5316Fax: (317) 218-5310
[email protected]/JordanKlink