Olde Mill Professional Park 3020 Roswell Road Marietta, …images4.loopnet.com/d2/LDsINnIvuKTXkEG7rgqS1pnnJ.../document.pdf · Olde Mill Professional Park 3020 Roswell Road Marietta,

Olde Mill Professional Park3020 Roswell RoadMarietta, GA 30062

Offered at $2,150,000

Ed Bosbyshell & Associates • 2300 Peachtree Road • Suite A-105 • Atlanta • GA • 30309 • 404.600.6163

Commercial Property Offering

Executive SummaryThe office property, Olde Mill Professional Park, located at 3020 Roswell Road in Marietta, Georgia is well situated on a major East-West thoroughfare which links Marietta with Roswell, two of Atlanta’s affluent suburbs. Roswell Road is dotted by retailers, both national and local, all along the 15-mile stretch between Marietta and Roswell. This property is located about half way between the two cities. Off Roswell Road are residential areas which could easily be described as upper middle class. The property consists of two buildings totaling approximately 16,000 square feet which form an “L Shape.” The buildings are two story with storefront type of entrances. The second floor suites are off balconies. The second floor is accessed by multiple staircases. There is no elevator access to the second floor. The 1st floor office suites are occupied bytwo complimentary dental practices, with a third suite of approximately 2,000 square feet, which was occupied by a perodontist. This suite is fully plumbed and could be up and running by a incoming dentist very quickly. The upper floors are occupied by an executive suite operation (approx. 4,000 square feet) under the control of the project owners. The other suite of approximately the same size is occupied by a dental staffing school on a short term basis.

The property under normal occupancy conditions generates from $150K to $180K per year and has an easy potential to increase this income by about 30%. One of the strengths of the property is that with the lower floor tenants (50% of the project) being complimentary dental practices, the likelihood

of renewals is very good. Also, unlike normal office users the medical rates these tenants pay is about 25% higher than normal office tenants would be expected to pay. A survey of competing office projects within a two-mile radius of the project shows vacancy levels under 10% with a nice trend line over the last five years.

Most of the suite opportunities within the project are less than 5,000 square feet. These small suites are a perfect fit for the wealth of professionals and independent business people in the surrounding area. As such, the likelihood of relative high occupancy for

the project for the foreseeable future is very good.



Building Size (SF): 16,000 Year Built: 1986

Stories: 2

Parking Spaces: 58

Construction: Masonary

Land Size (Acres: 1.03

Zoning: O &I

Assessed Value (Land and Building): $1,630,400

2015 Property Taxes: $19,213

Demographics (3 mile radius):

2015 Populatiion: 70,911

Population Growth (2015 - 2020): 6.04%

Average Age: 40.3

2015 Households: 27,063

Median Household Income: $88,898

Median Home Value: $289,970

Traffic Count:

Cars per day, Jan. 2017 84,484

Basic Building Facts and Demographics


Olde Mill Professional Park Rent Roll

Suite Tenant Name100 Jonathan Blair Waldron, D.M.D.S. F. Commencement Expiration Current Mo. Rent Rate/S. F.3,485 02/01/2010 01/31/2020 $9,286.57 $31.04

Suite Tenant Name 110 Herrin Pediatric Dentistry, P. C.S. F. Commencement Expiration Current Mo. Rent Rate/S. F.2,497 10/01/2012 11/30/2019 $6,878.66 $33.06

Suite Tenant Name 130 VacantS. F. Commencement Expiration Current Mo. Rent Rate/S. F.2,000

Suite Tenant Name 200 Various executive suite tenantsS. F. Commencement Expiration Current Mo. Rent Rate/S. F.4,500 $6,000.00 $16.00

Suite Tenant Name250 Dental Staffing SchoolS. F. Commencement Expiration Current Mo. Rent Rate/S. F.3,485 03/01/2017 02/28/2018 $4,300.00 $14.81

Tenant AnalysisSuite 100, 3,485 RSFThis suite is occupied by Jonathan Blair Waldron, D.M.D. The dental practice principal is Blair Waldron. He took over this practice from his father, who is a part owner of the subject property. Under Blair’s leadership the company has engaged an outside dental marketing consulting firm, who has modernized their way of doing business and marketing their dental services. They are very proactive in social media, call center marketing, team building, patient visit follow up, etc. All of this has created explosive growth for the practice. As a result of this growth and the desire to further create their brand, the practice has made the decision to buy a piece of raw land and build their own dental building a short distance from the subject property. They will vacate the subject property at the beginning of 2020.

The space itself is highly upgraded with eight dental operatories. The space is viewed as an easy relet to an established dental practice.

Suite 110, 2,497 RSFThis suite is occupied by Herrin Pediatric Dentistry, P. C. The principal is Brent Herrin, who is a young dentist with a growing practice. He had a right to cancel his lease which has been removed in connection with securing an extension to late 2019. It is unknown what his intensions will be at his lease expiration. There is little doubt he will want to look at other opportunities in the market. Renewal prospects are reasonably good, particularly if a solid dental replacement can be obtained for Suite 100.

The condition of this space is reasonably attractive. It is not as upgraded as Suite 100, but very functional with good eye appeal.

Suite 130, 2,000 RSFThis suite is currently vacant. It had been occupied by a periodontist. The space has been vacant for less than a year. It was recently repainted. It does not have the finish level of the other two dental spaces in the subject property. However, it is fully plumbed and with a reasonable T/I allowance could be brought up to a very nice finish level.

Suite 200, 4,500 RSFThis suite has been operated at an executive suite for several years. The operation goes by the name, Olde Mill Executive Suites (OMES). It is owned by the owners of the subject property. In that capacity, it rents out offices to various individuals on a short-term basis. The operation has good occupancy. The issue has been the amount of support that needs to be provided to the tenants of the executive suite. These include an on-site manager, internet connectivity, telephone, utilities, breakroom support, etc. As a result, the operation has been pretty much a breakeven operation.

The suite lays out very nicely for a myriad of typical office tenants and would be much more lucrative to the building ownership if it were simply rented to a traditional office tenant who would not need the level of support that the individuals do who are the executive suite tenants.

Suite 250, 3,485 RSFThis suite is occupied by Dental Staffing School. It is a company owned and operated by Janet Waldron, who is the wife of one of the owners of the subject property. She occupied by suite with the expectation of creating a number of revenue sources including individual office rental, hosting arbitrations and mediations in the large conference room, starting a paralegal school, as well as her dental staffing school which she has operated for a number of years.

Because of the start-up nature of the business and the fact that she was the wife of one of the owners of the subject property, she was given a below market rate on a short-term basis. It is doubtful this tenant will agree to a long-term lease at a market rate at this time and as a result it is the intension of ownership to simply renew this tenant on leases of less than a year, all the while marketing the space to an established business.


Olde Mill Professional Park, LLC P & L Actual

As Of 5/31/2017 2016 2015 2014

Income:Waldron - Rent $46,162.38 $107,930.47 $104,786.81 $101,734.82Alexander - Rent $0.00 $33,032.16 $49,962.88 $48,983.54Herrin - Rent $33,643.32 $80,593.08 $77,907.75 $75,271.61OMES - Rent $31,495.34 $112,660.13 $133,279.62 $129,460.64

Secretarial $6,200.32 $10,347.93 $11,425.17All Other -$4,461.22 -$775.98 $11,030.53 $13,858.54

$106,839.82 $339,640.18 $387,315.52 $380,734.32

Expenses:General & Administrative $16,967.40 $33,751.22 $37,568.66 $36,841.21Office Salary $11,050.00 $41,281.93 $44,747.62 $45,068.04

Payroll Taxes $7,225.08 $17,095.88 $17,315.91

Other Employee Benefits $918.01 $1,386.85 $2,100.37Electricity $6,515.53 $17,199.70 $17,397.59 $16,937.68Sanitation $750.00 $3,000.00 $3,000.00 $3,075.00Water & Sewer $1,856.91 $5,284.11 $5,536.05 $5,169.21Parking Rental Fee $1,455.00 $2,820.00 $2,820.00 $2,820.00Grounds Contract $2,250.00 $6,025.00 $7,480.00 $8,440.00

Building Maintenance $0.00 $26,784.83 $17,028.76Pest Control $1,016.00 $2,329.00 $2,329.00 $2,679.00Janitorial Contract $10,500.00 $26,000.00 $17,675.00 $14,301.71Gas $1,959.70 $4,558.74 $4,161.78 $3,616.12HVAC Services $2,327.23 $3,877.54 $3,660.13 $2,092.11Tenant Improvements $5,439.00 $15,857.26 $6,070.00 -$8,730.00

Site Improvements $3,977.91 $13,583.49 $2,472.30

Supplies $4,641.96 $1,340.89 $560.00Insurance $572.00 $5,650.00 $5,235.00 $9,427.42

Property Taxes $19,363.71 $20,426.89 $20,010.26

$62,658.77 $203,761.17 $238,299.66 $201,225.10

Net Operating Income $44,181.05 $135,879.01 $149,015.86 $179,509.22



Olde Mill Professional Park Building Maintenance Detail

2014 – Total $9,454.75Some of the major expenses includes: $656.44 Gray contracting to replace Downspout gutters on one building $ 2,660.00 D & B Cleaning for water extraction, drying and cleaning of carpet suite # 130 $585 .00 Stay Dry Roofing for roof repair $696.00 To Freeman to replace and upgrade water saving toilets $627.51 Regency Lighting for new replace bulbs interior and exterior 2015 – Total $25,871.24Some of the major expense includes: $872.00 Stay Dry Roofing for roof leak $3,250.00 Fast Track Interior for the remolding of three restrooms with new tile and drywall repairs, and the painting of the interior halls in the Executive Suites $10,279.39 Horizon Painting and Renovation for the repairs and Exterior painting of all building walkways and handrails including ceiling of hallways on the 1st and 2nd floor. $3,159.69 Several invoices to reimburse Gregg McGregor for new LED light Fixtures both interior and exterior to reduce energy consumption and to provide better lighting. $700.00 Capital City Roofing for two roof repairs $360.00 Georgia Store Front replacement of locks on two suites $1,414.00 Reimbursement to Midge Kowalczyk for payment to Mr. Plumber for the replacement and upgrade of three toilets. $1,080 .00 Reimbursement to Midge Kowalczyk for payment to Reliable Electric for labor and material for 8 new LED Fixtures.

Olde Mill Professional Park, LLCProforma Income Statement

As of July 2017

Property S. F. 15,970 Rental Income: Annual Per S. F.Waldron $111,600 $6.99Herrin $73,200 $4.58OMES $55,200 $3.46Suite 130, Former Alexander Suite $0 $0.00Dental Staffing Shool $51,600 $2.86 $291,600 $18.26 Expenses: Office Salary $30,000 $1.88All other General & Administrative $21,000 $1.31Common & Suites Electricity $18,480 $1.16Sanitation $3,000 $0.19Water & Sewer $6,000 $0.38Parking Rental Fee $3,000 $0.19Grounds Contract $8,040 $0.50Building Maintenance $15,960 $1.00Pest Control $2,520 $0.16Janitorial Contract $25,200 $1.58HVAC Services $3,000 $0.19Site Improvements $5,040 $0.32Supplies $960 $0.06Insurance $6,000 $0.38Property Taxes $20,04 $1.25 $168,240 $10.53 Net Operating Income Before Debt Service and Depr. And Amort. And Tenant Improvements $123,360 $7.72


Plan for Financial Performance Improvement

The subject property is positioned to, with a few easy steps, to greatly increase its financial performance. One major advantage of the property is the entire first floor is set for dental practices. In the case of one suite, the space is very nicely appointed, well beyond standard dental practice finish. Even with the fact the tenant in this space is exiting the project, this space should be an easy relet to an established dentist. An incoming owner inherits a building where all of the expensive plumbing for dental is in place. Sinks and cabinets can be replaced to fit a new tenant’s needs and desires, but the hard costs of plumbing have been borne by the previous owner.

Additionally, dentists tend to establish their patient practice where relocation is something to be avoided. If an incoming owner can keep the first level “dental oriented”, particularly if he can keep complimentary dental practices on-site that owner will enjoy a tremendous value in the property. Dental space leases anywhere from $25.00 - $32.00 per square foot in this market. With the operating expense of the subject property more in line with a “B” quality property where its operating expenses are closer to $10.00 per foot.

The second floor has been operated by the current owners as an executive suite. Unfortunately, the average monthly rental on an individual office, which is about $500 per month, does not fully support the costs that the executive suite operator is expected to provide, including staff, utilities, internet connectivity, phones, etc. If this operation could be terminated and a more standard office tenant secured, all of the support costs would go away and there would actually be an increase in the rental income.

Finally, the short-term lease on the second floor of Bldg. B needs to be replaced with a standard office tenant. This space shows well and has recently had about $10,000 spent to improve the reception area and main conference room. The space lays out well for any typical office user.

The following page outlines the effect of successfully putting these things in place and its dramatic improvement of the overall performance of the property.


Plan for Financial Performance Improvement Rental Income Current Adjusted Proforma Adjust Proforma Per S. F.Waldron $111,600 $111,600 $6.99Herrin $73,200 $73,200 $4.58OMES $55,200 $25,800 (1) $81,000 $5.07Suite 130, Former Alexander Suite $0 $50,000 (2) $50,000 $3.13Dental Staffing Shool $51,600 $11,130 (3) $62,730 $3.93 $285,600 $92,930 $378,530 $23.70 Expenses: Office Salary $30,000 ($30,000) (4) $0 $0.00All other General & Administrative $21,000 $21,000 $1.31Common & Suites Electricity $18,480 ($14,400) (5) $4,080 $0.26Sanitation $3,000 $3,000 $0.19Water & Sewer $6,000 $6,000 $0.38Parking Rental Fee $3,000 $3,000 $0.19Grounds Contract $8,040 $8,040 $0.50Building Maintenance $15,960 $15,960 $1.00Pest Control $2,520 $2,520 $0.16Janitorial Contract $25,200 $25,200 $1.58HVAC Services $3,000 $3,000 $0.19Site Improvements $5,040 $5,040 $0.32Supplies $960 $960 $0.06Insurance $6,000 $6,000 $0.38Property Taxes $20,040 $20,040 $1.25 $168,240 ($44,400) $123,840 $7.75 Net Operating Income Before Debt Service and Depr. And Amort. And Tenant Improvements $123,360 $131,330 $254,690 $15.95 (1) Assumes the closing of the executive suite operation and the replacement with a tenant paying $18.00 per square foot. (2) Assumes the successful rental of the fomer periodontist suite at the rate of $25.00 per square foot. (3) Assumes the sucessful rental of the suite currently occupied by the Dental Staffing School to an ordinary office tenant paying $18.00 per square foot. (4) Assumes the elimination of the support person operating the executive suite operation with its replacement by a ordinary office tenant paying $18.00 per square foot. (5) Assumes the elimination of the provision of utilities for the executive suite operation.


Documents

Olde Mill Professional Park 3020 Roswell Road Marietta, …images4.loopnet.com/d2/LDsINnIvuKTXkEG7rgqS1pnnJ.../document.pdf · Olde Mill Professional Park 3020 Roswell Road Marietta,