MULTI-TENANT NNN INVESTMENT - LoopNetimages3.loopnet.com/d2/u8ykJwVahbfdo1x0bpkIYDZ1... · 2018-02-05 · MULTI-TENANT NNN INVESTMENT. Property Overview Investment Highlights This

Colliers International | 3960 Howard Hughes Pkwy., Suite 150 | Las Vegas, NV 89169

Outparcel to DEER SPRINGS CROSSING

6620-6648 N. 5th Street, North Las Vegas, NV, 89084

MULTI-TENANT NNN INVESTMENT

Property OverviewInvestment Highlights

This is a unique opportunity to acquire fee simple (ownership of land and building) a brand new 2016 construction 100% occupied multi tenant (2) outparcel to Deer Springs Crossing Shopping Center in North Las Vegas, NV. This property offers rapid increases in NOI with 3% annual rental increases, minimal landlord responsibilities (roof & structure only), with approximately 4.5 years remaining on corporate leases for both Dollar Loan Center (corporate guaranteed) and Subway (reports sales).

• Located Just off Interstate 215 - 8 Miles from Las Vegas Motor Speedway

• Outparcel to Deer Springs Crossing - 20.71-Acre Regional Power Center

• Brand New 2016 Construction - Depreciable Asset

• 15% Admin Fee of Common Area Costs Paid to Landlord

• Main Retail Hub for Surrounding Community and Residential Developments

• Subway - One of the Most Recognizable Franchisee’s in the World

• Ranked #35 on Entrepreneur’s 2017 Franchise 500 List

- Over 44,000 Locations World Wide

• Dollar Loan Center - Founded in 1998 Now Has Over 75 Locations

• Over 13,560 Residential Units Built/Planned for Development (3-Mile Radius)

• Excellent Demographics - Approx. 94,599 Residents (3-Mile Radius)

• Strong Supporting Fundamentals - AHHI of $74,258 (3-Mile Radius)

• Neighbors Legacy High School and Ruby Duncan Elementary School

• Surrounding Retail Includes - Buffalo Wild Wings, Kohl’s McDonald’s, Target,

The Home Depot, In-N-Out, Walgreens and Many More

• Deliverable Free & Clear of Existing Debt

• Sits on N. 5th St. - Future Mass Transit Corridor - 4 Lanes

List Price $1,775,000

NOI $104,460

CAP Rate 5.85%

Operating ExpensesTaxes, Insurance, CAM NNN

Pricing Summary

MULTI-TENANT INVESTMENT | P. 2


Lease Abstract

Tenant Trade Name Dollar Loan Center

Tenant SF 2,500 SF

Lease Commencement November 9, 2016

Lease Expiration February 28, 2022

Lease Term 6 Years

Term Remaining On Lease 5 Years

Base Rent $67,500

Rental Adjustments 3% Annual Increases

Options 1 - 5 Year Option Period 3% Annual Increases

Lease Type NNN Lease

Roof And Structure Landlord Responsible

Lease Abstract

Tenant Trade Name Subway

Tenant SF 1,593

Lease Commencement February 1, 2017

Lease Expiration January 31, 2022

Lease Term 5 Years

Term Remaining On Lease 5 Years

Base Rent $36,960

Rental Adjustments 3% Annual Increases

Options 3 - 5 Year Option Periods 3% Annual Increases

Lease Type NNN Lease

Roof And Structure Landlord Responsible


Cash Flow Projection Year 1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10For the Year Ending: per SF Aug-2018 Aug-2019 Aug-2020 Aug-2021 Aug-2022 Aug-2023 Aug-2024 Aug-2025 Aug-2026 Aug-2027

Potential Gross Revenue

Base Rental Revenue $26.43 108,175 111,420 114,762 118,205 121,752 125,403 129,165 133,040 137,031 138,938 Absorption & Turnover Vacancy $0.00 - - - - - - - - - - Scheduled Base Rental Revenue $26.43 108,175 111,420 114,762 118,205 121,752 125,403 129,165 133,040 137,031 138,938

Expense Reimbursement Revenue CAM $0.57 2,340 2,387 2,435 2,484 2,534 2,584 2,636 2,688 2,742 2,797 Utilities $0.43 1,755 1,790 1,826 1,863 1,899 1,938 1,976 2,016 2,056 2,097 Insurance $0.14 585 596 609 621 634 646 658 672 686 699 Property Tax $2.42 9,925 10,123 10,326 10,532 10,742 10,958 11,177 11,400 11,629 11,861 Management $0.93 3,797 3,907 4,019 4,135 4,255 4,378 4,504 4,633 4,767 4,831 Total Reimbursement Revenue $4.50 18,402 18,803 19,215 19,635 20,064 20,504 20,951 21,409 21,880 22,285 EFFECTIVE GROSS REVENUE $30.93 126,577 130,223 133,977 137,840 141,816 145,907 150,116 154,449 158,911 161,223

Operating Expenses & Net Operating Income

CAM $0.57 2,340 2,387 2,435 2,483 2,533 2,584 2,635 2,688 2,742 2,797 Utilities $0.43 1,755 1,790 1,826 1,862 1,900 1,938 1,976 2,016 2,056 2,097 Insurance $0.14 585 597 609 621 633 646 659 672 685 699 Property Tax $2.42 9,924 10,122 10,325 10,531 10,742 10,957 11,176 11,400 11,628 11,860 Management $0.93 3,797 3,907 4,019 4,135 4,254 4,377 4,503 4,633 4,767 4,837 TOTAL OPERATING EXPENSES $4.50 18,401 18,803 19,214 19,632 20,062 20,502 20,949 21,409 21,878 22,290

NET OPERATING INCOME $26.43 108,176 111,420 114,763 118,208 121,754 125,405 129,167 133,040 137,033 138,933 Running Cap Rate 5.6% 5.8% 5.97% 6.15% 6.34% 6.53% 6.72% 6.93% 7.13% 7.35% 7.45%

Leasing & Capital Costs

Capital Reserves @ $0.15 PSF $0.15 614 614 614 614 614 614 614 614 614 614 TOTAL LEASING & CAPITAL COSTS $0.15 614 614 614 614 614 614 614 614 614 614

Debt Service

Interest Payments $10.66 43,650 42,625 41,555 40,437 39,271 38,054 36,783 35,457 34,072 32,627 Principal Payments $5.71 23,378 24,403 25,473 26,590 27,756 28,974 30,245 31,571 32,956 34,401 TOTAL DEBT SERVICE $16.38 67,028 67,028 67,028 67,027 67,027 67,028 67,028 67,028 67,028 67,028 NET CASH FLOW AFTER DEBT SERVICE $9.90 40,534 43,778 47,121 50,567 54,113 57,763 61,525 65,398 69,391 71,291

Cash Flow ProjectionsNOI Includes Future 3% Annual Base Rent Increases

Acquisition Cost

Sales Price $1,865,000

Total Unleveraged Acquisition Reserves $17,500

Financing Fees $10,258

Total Leveraged Acquisition Cost $1,892,758

Cost per Square Foot $462.44

Equity Required $867,008

Notes

Proposed Debt

Going-In Assumptions

Going-In CAP Rate 5.80%

Year 1 Cash on Cash 4.68%

Residual Assumptions

Terminal Cap Rate 5.60%

Cost of Sale 3.00%

Loan Summary

Loan Amount $1,025,750

Loan-to-Value Ratio 55.00%

Interest Rate 4.30%

Loan Constant 6.53%

Annual Debt Service 67,028

Term 10 Years

Amortization Period 25 Years

Maturity Aug-27

Outstanding Loan Balance at Maturity $740,003

Loan Fee 1.00%

Include Loan Fee in Acq. Reserve? Yes

Leveraged Return Analysis

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

For the Year Ending: IRR Equity Aug-2018 Aug-2019 Aug-2020 Aug-2021 Aug-2022 Aug-2023 Aug-2024 Aug-2025 Aug-2026 Aug-2027

Sale Year

Year 1 - (867,008) 968,116

Year 2 12.60% (867,008) 40,534 1,053,668

Year 3 12.76% (867,008) 40,534 43,778 1,142,156

Year 4 12.74% (867,008) 40,534 43,778 47,121 1,233,614

Year 5 12.65% (867,008) 40,534 43,778 47,121 50,567 1,328,157

Year 6 12.54% (867,008) 40,534 43,778 47,121 50,567 54,113 1,425,944

Year 7 12.42% (867,008) 40,534 43,778 47,121 50,567 54,113 57,763 1,527,037

Year 8 12.31% (867,008) 40,534 43,778 47,121 50,567 54,113 57,763 61,525 1,631,645

Year 9 11.96% (867,008) 40,534 43,778 47,121 50,567 54,113 57,763 61,525 65,398 1,701,505

Year 10 11.93% (867,008) 40,534 43,778 47,121 50,567 54,113 57,763 61,525 65,398 69,391 1,821,936

Leveraged Returns

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

For the Year Ending: Equity Feb-2014 Feb-2015 Feb-2016 Feb-2017 Feb-2018 Feb-2019 Feb-2020 Feb-2021 Feb-2022 Feb-2023

NOI 108,176 111,420 114,763 118,208 121,754 125,405 129,167 133,040 137,033 138,933

Leveraged Cash Flow ($867,008) $40,534 $43,778 $47,121 $50,567 $54,113 $57,763 $61,525 $65,398 $69,391 $71,291

NOI Return 10 YR AVG 6.54% 5.72% 5.89% 6.06% 6.25% 6.43% 6.63% 6.82% 7.03% 7.24% 7.34%

Net Cash-on-Cash Return 10 YR AVG 6.48% 4.68% 5.05% 5.43% 5.83% 6.24% 6.66% 7.10% 7.54% 8.00% 8.22%


Leveraged Investment Analysis


Parcel Details

Parcel 124-23-316-009

Building Area 4,093 SF

Parcel Area 33,541 SF (.77 Acres)

Year Built 2016

Zoning C-2 General Commercial

N. 5TH ST.

E. DEER SPRINGS WAY

BRUCE WOODBURY BELTWAY

CENTENNIAL PKWY.

COMM

ERCE ST.

E. CRAIG RD.

N. S

IMM

ONS

ST.

LOSEE RD.

CAMINO ELDORADO 15

215VA SOUTHERN

NEVADA HEALTHCARE

MARMAXXDISTRIBUTION CENTER

SHADOW CREEKGOLF COURSE

MOJAVEHIGH SCHOOL

DEER SPRINGS TOWN CENTER

DEER SPRINGS CROSSING

CANNERY CORNER


BRUCE WOODBURY BELTWAY215

N. 5TH ST.E. DEER SPRINGS WAY

W. DORRELL LN.

LEGACYHIGH SCHOOL

DON E HAYDENELEMENTARY

SCHOOL

DEER SPRINGS TOWN CENTER

DEER SPRINGS CROSSING


• Located Just off Interstate 215 in North Las Vegas

• Excellent Demographics Approximately 250,873 Residents Within a 5 Mile Radius

• Strong Supporting Average Household Income of $74,258 Within a 3 Mile Radius

• Convenient Access - Ample Parking - Excellent Visibility


About Subway

Doctor’s Associates Inc., doing business as Subway, is a privately held American fast food restaurant franchise that primarily sells submarine sandwiches (subs) and salads. Subway is one of the fastest-growing franchises in the world and, as of June 2017, has approximately 45,000 stores located in more than 100 countries. More than half of the stores are located in the United States. It is the largest single-brand restaurant chain and the largest restaurant operator in the world.

10 Facts About Subway That Will Blow Your Mind

1. There are more than 38 million subway sandwich combinations.2. Subway serves about 7.6 million subs every day, enough to feed every person in Los Angeles, Chicago, and Dallas.3. Subway has 41,766 locations. That means it has opened, on average, more than two restaurants per day since 1965.4. Some of the most unusual Subway locations include a laundromat, car dealership, and church.5. Subway makes enough sandwiches in a year to wrap around the Earth 14 times.6. Subway employs more than 46,000 hens that lay eggs for its cookies around the clock. In a year, those hens lay 14.4 million eggs.7. Subway plans to have 50,000 restaurants by 2018. To achieve that, Subway will need to open more than 6 restaurants per day.8. Subway employs about 410,000 people, or the population of Miami, FL.9. There are more Subway locations than McDonald’s locations worldwide.10. Subway uses more tuna, tomatoes, and frozen cooked dough than any other company in the food industry.


About Dollar Loan Center

Dollar Loan Center is a community short term lender. They are the leading provider of on-line installment loans and car title loans in the industry. Dollar Loan Center has approximately 75 branches located in 4 states. They employ approximately 300 people.

Dollar Loan Location: Nevada

• Carson City

• Fernley

• Henderson

• Las Vegas

• North Las Vegas

• Laughlin

• Pahrump

• Reno

• Sparks

• Sun Valley


Northern Las Vegas

Northern Las Vegas lies 20 minutes from the famous Las Vegas Strip. It is located in Clark County, Nevada with an estimated population of 227,686 Neighboring communities include the city of Las Vegas and the township of Paradise, encompassing the Las Vegas Strip and McCarran International Airport. North Las Vegas has grown to the point where it is now the third fastest-growing large city in the US. The population in this area is projected to grow by 2.34% in the next five years (Nielsen Claritas, 2016).

Residential Development Planned UnitsThe Villages at Tule Springs +/-8,683North Ranch +/-114 (Duplex) +/-312 (Triplex)Bascom / Oak Tree High DensityCentennial Estates +/-68Diamond Creek +/-300Shade +/-379Eldorado Ridge +/-78Park Highlands +/-3,500Total +/-13,562 units +/-13,562 units

Las Vegas’s recovery continues, led by tourism and consumer spending. It took a while, but the city’s economy is gaining traction. As of June 2017, approximately 27,300 jobs had been created over the past year, which equates to year-over-year growth of about 2.9%. The key to sustaining this growth will be the leisure and hospitality sector. With nearly one in three jobs based in the sector, the metro’s economic success is inherently tied to tourism. And based on stats from the Las Vegas Convention and Visitors Authority, things appear to be only looking up. The metro attracted a record 42 million visitors in 2015, over 2.5 million more than the previous high in 2012, and 2016 matched that number. A strengthening national economy will certainly help Las Vegas’s cause as increased disposable income encourages, even more, tourists and attracts visitor dollars to the metro.

Home prices are shooting up year-over-year and new home sale rates have significantly improved. This has led to more construction in the area. Construction jobs are expected to gain the most during this recovery as large projects on the Strip such as Genting Group’s $4 billion Resorts World Las Vegas take shape along with the MGM-AEG arena. That project alone is expected to add 30,000 constructions jobs. There is an emphasis on diversifying Las Vegas’s economy and making sure there is not an over-reliance on construction. Projects like the Tesla factory in Reno and attracting additional healthcare related jobs have been discussed. Two major hospitals provide the bulk of employment in the NorthWest Las Vegas submarket.

Las Vegas Economic Summary



Population 1-MILE 3-MILE 5-MILE

Estimated Population (2017) 13,333 94,599 230,421

Projected Population (2022) 14,531 103,251 250,873

Households 1-MILE 3-MILE 5-MILE

Estimated Households (2017) 4,502 30,770 73,951

Projected Households (2022) 4,915 33,641 80,644

Income 1-MILE 3-MILE 5-MILE

Avg. Household Income (2017) $73,003 $74,258 $69,841

Median Household Income (2017) $60,093 $61,309 $57,736

Business Facts 1-MILE 3-MILE 5-MILE

Total # of Businesses (2017) 157 1,238 4,053

Total # of Employees (2017) 2,011 14,464 56,293$$

Approximately 94,599 Residents Within a 3-Mile Radius

REPRESENTATIVE PHOTO


Average Household Income $74,258 Within a 3-Mile Radius

REPRESENTATIVE PHOTO


This Offering Memorandum contains select information pertaining to the business and affairs of Subway-Dollar Loan, North Las Vegas, NV. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Colliers, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of Subway-Dollar Loan, North Las Vegas, NV or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.


Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its licensor(s) 2015. All rights reserved


Eric CarltonSenior Vice PresidentLicense No. [email protected]

FOR MORE INFORMATION CONTACT:


Outparcel to DEER SPRINGS CROSSING

MULTI-TENANT SHOPPING CENTER

Documents

MULTI-TENANT NNN INVESTMENT - LoopNetimages3.loopnet.com/d2/u8ykJwVahbfdo1x0bpkIYDZ1... · 2018-02-05 · MULTI-TENANT NNN INVESTMENT. Property Overview Investment Highlights This