5 0 4 5 G e i s t A v e n u e , L a s V e g a s , N V 8 9 1 1 5
EXCLUSIVE
LISTING AGENTS:
DAVE WRZESINSKISenior Associate
BEN MILLIS Principal, Industrial
offering memorandumsale-leaseback
EXECUTIVE SUMMARYTABLE OF CONTENTS
01 • EXECUTIVE SUMMARY The Offering 3 Property Profile 4
02 • PROPERTY OVERVIEW Floor Plan 5 Property Aerial 7 Surrounding Area 8 Location Overview 9
03 • FINANCIALS Financial Overview 10 Rent Roll 12
04 • PROFILES Tenant Profile 13 Marijuana Sales in Nevada 15 General Contractor Profile 16
05 • MARKET DATA Las Vegas Industrial Market 17 Las Vegas Highlights 19
Alternative Medicine Association • Avison Young 3
EXECUTIVE SUMMARY
THE OFFERING
Avison Young is exclusively offering this unique opportunity to acquire 5045 Geist Avenue, a brand-new, single
tenant, triple net-leased, Class A cultivation facility totaling ±63,624 square feet. The building is estimated to
be completed in April of 2019 and has been specifically built for Alternative Medicine Association (AMA), as a
marijuana cultivation facility. AMA was the first licensed cultivator to sell cannabis in Las Vegas and works closely
with the state of Nevada to set the standards for it.
Price $10,775,000
Cap Rate 8.5%
Term 10 Years & Two, Five Year Renewals
Address 5045 Geist Avenue, Las Vegas, Nevada 89115
Size ±63,624 SF
Year Built 2019
Acreage 1.39 Acres
Stories 2
Parcel Number 140-17-611-011
Percent Leased 100%
No. of Tenants 1
FIRST EVER LICENSED
CULTIVATOR IN NEVADA
ALTERNATIVE MEDICINE ASSOCIATION
Alternative Medicine Association • Avison Young 4
SECTION 01 EXECUTIVE SUMMARY
PROPERTY PROFILE
Located at 5045 Geist Avenue, the property is currently being developed as a
±63,624 square foot two-story, purpose-built cultivation facility for Alternative
Medicine Association. The building improvement is being developed on a site that
contains 1.39 acres which is zoned M-1 (Light Manufacturing) by the Clark County
Zoning Department. According to the floor plans prepared by George M. Rogers
Architect, the building will include vegetation/cultivation rooms, packaging areas,
supporting offices, a vault, Men’s and Woman’s locker rooms, climate/humidity
controlled rooms and other work areas. When complete this will be a state-of-the-
art cultivation facility that will be occupied by Alternative Medicine Association and
guaranteed by 1933 Industries, Inc.
Construction Type Concrete Tilt-Up
Sprinklers ESFR
Power 6,000 Amps, Three Phase
Auto Parking Spaces ±79 Parking Spaces
General Contractor Bentar Development
Architect GMRA
Construction Progress as of 12/20/18
Alternative Medicine Association • Avison Young 5
SECTION 02 FLOOR PLANS
1ST FLOOR ±32,063 SF
Alternative Medicine Association • Avison Young 6
SECTION 02 FLOOR PLANS
2ND FLOOR ±31,561 SF
Alternative Medicine Association • Avison Young 7
EXECUTIVE SUMMARY
GEIST AVENUE
NELLIS BO
ULEV
ARD
ALTO AVENUE
SUBJECT±63,624 SF BUILDING
±1.39 ACRES 1933 INDUSTRIES±12,000 SF Building for Extraction
Not a part of this Sale
1933 INDUSTRIES±2.78 Acres for Expansion
Not a part of this Sale
Alternative Medicine Association • Avison Young 8
SECTION 02 SURROUNDING AREA
NELLIS BLVD
LAS VEGAS BLVD
LAMB BLVD
CHEYENNE AVENUE
SunriseIndustrial
Center
Northpoint
CheyenneIndustrial
Center
CareyIndustrial
Center
CheyenneDistribution
Center
Lamb Technology
CenterLogistiCenter
CheyenneWalker
Distribution Center
THE LAS VEGAS “STRIP”McCARRAN INTER’L AIRPORT
SUBJECT
Alternative Medicine Association • Avison Young 9
SECTION 02 LOCATION OVERVIEW
SUBJECT
LAS
VEG
AS
STRI
P
Alternative Medicine Association • Avison Young 10
SECTION 03 FINANCIAL DATA
FINANCIAL OVERVIEW
Price $10,775,000
10 Year IRR 11.49%
Price Per Sq. Ft. $169.35
Year 1 Cap Rate 8.50%
Cash on Cash 8.46%
Annual Rent Increases 3%
Lease Type Absolute NNN
Year 1 Monthly Base Rent $76,349
Year 1 Net Operating Income $916,186
Terms Cash or Cash to New Loan
10 YEAR LEASE EFFECTIVE 2/1/19 ABSOLUTE NNN. RENEWAL INCREASES AT 3% ANNUALLY
A FEW AMA PRODUCTS
SHATTER TROPICALTHUNDER
THC OIL TANGERINEDREAM
DISTILLATEPEN
11Alternative Medicine Association • Avison Young
SECTION 03 FINANCIAL DATA
INIT IAL INVESTMENT
Purchase Price $10,775,000
+ Acquisition Costs $53,875
+ Loan Costs 0
- Mortgage 0
= INITIAL INVESTMENT $10,828,875
SALE PROCEEDS BEFORE TAX
Sale Price $15,391,000
- Cost of Sale $769,550
- Mortgage Balance 0
= SALE PROCEEDS $14,621,450
PERFORMANCE MEASURES
Gross Rent Multiplier 11.76
Cash on Cash 8.46%
Acquisition Capitalization Rate 8.50%
Internal Rate of Return 11.49%
Net Present Value $14,295,616
ANNUAL CASH FLOWS BEFORE TAX
EOY 1 2 3 4 5 6 7 8 9 10 11
Potential Rental Income $916,186 $943,671 $971,981 $1,001,141 $1,031,175 $1,062,110 $1,093,974 $1,126,793 $1,160,597 $1,195,414 $1,231,277
- Vacancy & Credit Losses
= Effective Rental Inc $916,186 $943,671 $971,981 $1,001,141 $1,031,175 $1,062,110 $1,093,974 $1,126,793 $1,160,597 $1,195,414 $1,231,277
+ Other Income 0 0 0 0 0 0 0 0 0 0 0
= Gross Operating Inc $916,186 $943,671 $971,981 $1,001,141 $1,031,175 $1,062,110 $1,093,974 $1,126,793 $1,160,597 $1,195,414 $1,231,277
- Real Estate Taxes 0 0 0 0 0 0 0 0 0 0 0
- Insurance 0 0 0 0 0 0 0 0 0 0 0
- Repairs & Maintenance 0 0 0 0 0 0 0 0 0 0 0
- Landscaping 0 0 0 0 0 0 0 0 0 0 0
- Property Management 0 0 0 0 0 0 0 0 0 0 0
= Net Operating Income $916,186 $943,671 $971,981 $1,001,141 $1,031,175 $1,062,110 $1,093,974 $1,126,793 $1,160,597 $1,195,414 $1,231,277
- Annual Debt Service 0 0 0 0 0 0 0 0 0 0 0
- Leasing Commissions 0 0 0 0 0 0 0 0 0 0 0
= Cash Flow Before Taxes $916,186 $943,671 $971,981 $1,001,141 $1,031,175 $1,062,110 $1,093,974 $1,126,793 $1,160,597 $1,195,414
BEFORE TAX INTERNAL RATE OF RETURN
EOY $
0 ($10,828,875)
1 $916,186
2 $943,671
3 $971,981
4 $1,001,141
5 $1,031,175
6 $1,062,110
7 $1,093,974
8 $1,126,793
9 $1,160,597
10 $1,195,414
+ $14,621,450
IRR 11.49%
SECTION 03 RENT ROLL
Tenant Lease Start Date
Lease Expiration Date SF Building
Share Effective Annual Rent Annual Rent PSF Monthly Rent Monthly
Rent PSF
Alternative Medicine Assoc 04/20/19 03/19/29 63,624 100% 04/20/19 $ 916,186.00 $14.40 $76,348.83 $1.20
04/20/20 $943,671.58 $14.83 $78,639.30 $1.24
04/20/21 $971 981.73 $15.28 $80,998.48 $1.27
04/20/22 $1,001,141.18 $15.74 $83,428.43 $1.31
04/20/23 $1,031,175.41 $16.21 $85,931.28 $1.35
04/20/24 $1,062,110.68 $16.69 $88,509.22 $1.39
04/20/25 $1,093,974.00 $17.19 $91,164.50 $1.43
04/20/26 $1,126,793.22 $17.71 $93,899.43 $1.48
04/20/27 $1,160,597.01 $18.24 $96,716.42 $1.52
04/20/28 $1,195,414.92 $18.79 $99,617.91 $1.57
TOTALS $10,503,045.73
3% Annual Increases
Alternative Medicine Association • Avison Young 12
Alternative Medicine Association • Avison Young 13
SECTION 04 TENANT PROFILE
ABOUT ALTERNATIVE MEDICINE ASSOCIATION
Alternative Medicine Association stands proud as the first licensed cultivator to sell cannabis in Las Vegas, helping to sow the seeds of the cannabis industry’s rise throughout the state of Nevada. As pioneers of marijuana, they’ve worked closely with the state to set the standards for cultivation to what they should be, ensuring that each bud they trim offers patients and recreational users alike a cannabis experience that’s exceptional, potent, and consistent in quality. Alternative Medicine Association passionately continues to break down the walls of the cannabis industry, helping patients heal, offering recreational users an exceptional experience and continuing to discover the many benefits of marijuana yet to unfold.
Alternative Medicine Association’s founding team began in California, legally cultivating cannabis for as long as possible while working in compliance with the ever-changing state regulations. When updating with the state’s rules became too complicated, the growers moved their operations to Nevada, where the marijuana industry was just getting started. With decades of growing experience and a passionate belief in the medicinal benefits of cannabis, the founders over time had developed particular methods of quality control and cultivation
CSE: TGIF | OTCQB: TGIFF
ABOUT 1933 INDUSTRIES, INC.
1933 Industries Inc. is a vertically integrated cannabis company with operations in the United States and Canada. Operating through three subsidiary companies, 1933 Industries owns licensed medical and adult-use cannabis cultivation and production assets, proprietary hemp-based, CBD infused products, CBD extraction services and a specialized cannabis advisory firm supporting clients in security, intelligence and due diligence.
1933 Industries has three arms of operation: Alternative Medicine Association, Infused MFG and Spire
CORPORATE ENTITY 1933 Industries, Inc.
HEADQUARTERS Chilliwack, Canada
FOUNDED 2008
INDUSTRY Research Services
WEBSITE 1933industries.com
TICKER CSE: TGIF
Alternative Medicine Association • Avison Young 14
EXECUTIVE SUMMARY SECTION 04 TENANT PROFILE
to provide safe medical marijuana for very specific health conditions. Committed to continuous innovation and the medical aspects of marijuana, Alternative Medicine Association formed, and eventually sold the very first amount of cannabis in Nevada in August of 2015. Since this landmark event, Alternative Medicine Association continues to develop new tracking and storing methods, and within 2019 will expand into a new, state-of-the-art cultivation facility.
42.2 MVISITORS TO LAS VEGAS
IN 2017
SOURCE: LAS VEGAS CONVENTION & VISITORS AUTHORITY
ALTERNATIVEMEDICINE ASSOCIATION
LAS VEGAS, NEVADA
• Fully integrated licensed medical and adult-use cannabis cultivation and production company
• Cultivates and produces its own line of unique cannabis-based products and manufactures other third party brands
Cannibis Stocks look set to Flourish! Click here for CNBC Business News article
Alternative Medicine Association • Avison Young 15
MARIJUANA SALESMARIJUANA SALES IN NEVADA
SOURCE: STATE OF NEVADA, LAS VEGAS REVIEW JOURNAL
$336.4 MTotal Sales of Medical Marijuana, recreation-al marijuana and marijuana related goods
through February, 2018
$263.7 MRecreational Marijuana Sales
July 1, 2017 - February 28, 2018
$264.8 MRecreational marijuana sales
projected for fiscal 2018July 1, 2017 - June 30, 2018
From July 2017, when marijuana sales began, to April 2018, monthly sales increased about 30 percent. The taxes paid by wholesalers and customers almost doubled in that time.
SOURCE: STATE OF NEVADA, LAS VEGAS REVIEW JOURNAL
SOURCE: STATE OF NEVADA, LAS VEGAS REVIEW JOURNAL
Alternative Medicine Association • Avison Young 16
SECTION 04 GENERAL CONTRACTOR PROFILE
About Bentar Development
Founded in 1991, Bentar Development, Inc. is a well-established
and respected design/build general contractor and professional
manager of construction services. The award-winning company is
owned by long-time Nevada resident Amador “Chi Chi” Bengochea.
Bentar’s mission is simple: Dedication, growth, diversity and in-
comparable construction quality, and unwavering commitment to our client’s satisfaction.
Bentar is licensed and bonded in the State of Nevada with an unlimited contract limit and prides itself on
aggressive schedules that are unmatched by other contractors in the local industry.
The company delivers a wide range of commercial, industrial, retail, casino, office and recreational projects
in the Las Vegas market. A sampling of some of the companies high-profile projects include: 70-plus Terrible
Herbst service stations, three Terrible’s hotel/casino properties in Southern Nevada, the Primm Valley Resort
Travel Center, which is the largest automobile service station with 30 fuel nozzles in the west, the new
Tangerine at Treasure Island, the Revolution Bar at the The Mirage, Red Rock Casino Resort Bowling Alley,
Montana Steakhouses, The Lodges, more than a dozen Del Taco outlets, other restaurants, retail, office and
schools.
An Award Winning Construction Company
• Bentar was inducted as the 2011 Minority Business Hall of Fame
• Chi Chi Bengochea, owner of Bentar Development, Inc. named “Small Business Person of the Year” by the
Small Business Administration (SBA).
• “Annual Contractor of the Year” Latin Chamber of Commerce
• “Ten Best Contractors” List by the Nevada Business Journal
• Builder/Architect Magazine, Southern Nevada Edition, September 2004 cover story “Bengochea Brothers’
General Contracting Firm Impacting Las Vegas Commercial Building Scene”
CORPORATE ENTITY Bentar Development Inc.
HEADQUARTERS Las Vegas, Nevada
FOUNDED 1991
INDUSTRY Building Contractor
WEBSITE bentar.com
TICKER Privately Held
EMPLOYEES Approximately 25
A few of Bentar recent projects:
Bishop Gorman Training & Expansion Facility
Mountains Edge Hospital
Alternative Medicine Association • Avison Young 17
SECTION 05 LAS VEGAS INDUSTRIAL MARKET OVERVIEW
Activity in the industrial market continued strong in the third quarter. There was approximately 844,240 square feet of new deliveries with almost 5 million square feet under construction. These new deliveries pushed vacancy down slightly to 5 percent with approximately 525,826 square feet of positive absorption. Average asking lease rates for distribution product remained the same while average asking rates for flex spaces increased slightly.
There were approximately 183 industrial leases executed in the third quarter of 2018. While the largest
lease was 163,000 square feet, there were only four leases completed over 40,000 square feet, with a majority being under 15,000 square feet. By comparison, there were approximately 257 industrial leases executed in the third quarter of 2017. The largest lease was 300,805 square feet, with a majority being under 10,000 square feet.
In the third quarter of 2018, there were approximately 93 industrial sales, with the largest sale being a 156,564 square foot warehouse in the Henderson submarket which sold for $20,200,000. A majority of the sales that took place were under 40,000 square feet. By comparison, there were approximately 103 industrial sales completed in the third quarter of 2017. The largest sale was a 248,126 square foot warehouse in the North Las Vegas submarket which sold for $24,500,000. A majority of sales that took place in the third quarter of 2017 were under 40,000 square feet.
By the end of the third quarter, there was approximately 844,240 square feet of deliveries and 4,683,806 square feet of industrial product under construction. In the third quarter of 2017, there was 2,755,510 square feet of deliveries and 4,229,469 square feet was under construction.
Partnership. Performance. avisonyoung.com
Industrial Market Snapshot
Las Vegas Industrial SubmarketsVacancy Rates
1. Airport East2. Central3. North Las Vegas4. Henderson/SE
5. Speedway6. Southwest7. West8. Northwest
Absorption
Asking Rents
Flex Distr.
Las Vegas Third Quarter 2018 / Industrial Market Monitor
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Industrial Market Snapshot
Las Vegas Industrial SubmarketsVacancy Rates
1. Airport East2. Central3. North Las Vegas4. Henderson/SE
5. Speedway6. Southwest7. West8. Northwest
Absorption
Asking Rents
Flex Distr.
Las Vegas Third Quarter 2018 / Industrial Market Monitor
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4
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Partnership. Performance. avisonyoung.com
Industrial Market Snapshot
Las Vegas Industrial SubmarketsVacancy Rates
1. Airport East2. Central3. North Las Vegas4. Henderson/SE
5. Speedway6. Southwest7. West8. Northwest
Absorption
Asking Rents
Flex Distr.
Las Vegas Third Quarter 2018 / Industrial Market Monitor
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MARKET FACTS
844,240Square footage
of deliveries
4,683,806Total square footageunder Construction
93Number of
Industrial Sales
183Number of
Industrial LeasesSigned
3RD QUARTER 2018
Alternative Medicine Association • Avison Young 18
SECTION 05 LAS VEGAS INDUSTRIAL MARKET
avisonyoung.com
2018 Avison Young - Nevada, LLC. All rights reserved.
E. & O.E.: The information contained herein was obtained from sources which we deem reliable and, while thought to be correct, is not guaranteed by Avison Young.
Submarket Total SF * Vacant SF Vacancy Current NetAbsorption
YTD Net Absorption
Under Construction
Avg. AskingRate Flex
Avg. AskingRate Mfg./Distr.
Airport/East 15,294,560 474,775 3.1% 116,471 518,111 224,752 $0.97 $0.77
Central/Downtown 13,270,822 242,506 1.8% 48,711 99,848 0 $0.65 $0.62
North Las Vegas 40,506,191 2,564,875 6.3% 247,034 1,683,150 1,935,863 $0.62 $0.43
Northwest 880,168 46,048 5.2% (12,468) (12,906) 0 $0.87 $0.81
Henderson/SE 17,194,056 958,705 5.6% 56,174 937,884 212,030 $0.65 $0.57
Speedway/NE 4,141,781 723,006 17.5% (67,723) (50,062) 1,784,245 $0.45 $0.46
Southwest 29,929,163 874,910 2.9% 120,714 401,146 526,916 $0.94 $0.56
West 10,806,406 668,826 6.2% 16,913 198,396 0 $0.80 $0.60
Totals 132,023,147 6,553,651 5.0% 525,826 3,775,567 4,683,806 $0.88 $0.48
Las Vegas Third Quarter 2018 / Industrial Market Monitor
Market Indicators
Tenant/Buyer Address Submarket Size Term Rate/Price
Suncrest Industrial, LLC 1051 Mary Crest Road Henderson/SE 156,564 SF Sale $20,200,000
CLV Warehouse, LLC 4325 Corporate Center Dr North Las Vegas 155,790 SF Sale $16,231,760
Xtreme Manufacturing 8390 Eastgate Road Henderson/SE 163,000 SF 120 Months $0.57/SF
Ruby Has 3717 Bay Lake Trail North Las Vegas 97,080 SF 60 Months $0.35/SF
n/a 2695 North Lamb Blvd North Las Vegas 56,847 SF n/a $0.30/SF
Top Transactions of the Quarter
* Includes buildings over 5,000 SF
Dave A. [email protected]
3993 Howard Hughes Pkwy, Ste 350, Las Vegas, NV 89169702.472.7979
Prepared by:
avisonyoung.com
2018 Avison Young - Nevada, LLC. All rights reserved.
E. & O.E.: The information contained herein was obtained from sources which we deem reliable and, while thought to be correct, is not guaranteed by Avison Young.
Submarket Total SF * Vacant SF Vacancy Current NetAbsorption
YTD Net Absorption
Under Construction
Avg. AskingRate Flex
Avg. AskingRate Mfg./Distr.
Airport/East 15,294,560 474,775 3.1% 116,471 518,111 224,752 $0.97 $0.77
Central/Downtown 13,270,822 242,506 1.8% 48,711 99,848 0 $0.65 $0.62
North Las Vegas 40,506,191 2,564,875 6.3% 247,034 1,683,150 1,935,863 $0.62 $0.43
Northwest 880,168 46,048 5.2% (12,468) (12,906) 0 $0.87 $0.81
Henderson/SE 17,194,056 958,705 5.6% 56,174 937,884 212,030 $0.65 $0.57
Speedway/NE 4,141,781 723,006 17.5% (67,723) (50,062) 1,784,245 $0.45 $0.46
Southwest 29,929,163 874,910 2.9% 120,714 401,146 526,916 $0.94 $0.56
West 10,806,406 668,826 6.2% 16,913 198,396 0 $0.80 $0.60
Totals 132,023,147 6,553,651 5.0% 525,826 3,775,567 4,683,806 $0.88 $0.48
Las Vegas Third Quarter 2018 / Industrial Market Monitor
Market Indicators
Tenant/Buyer Address Submarket Size Term Rate/Price
Suncrest Industrial, LLC 1051 Mary Crest Road Henderson/SE 156,564 SF Sale $20,200,000
CLV Warehouse, LLC 4325 Corporate Center Dr North Las Vegas 155,790 SF Sale $16,231,760
Xtreme Manufacturing 8390 Eastgate Road Henderson/SE 163,000 SF 120 Months $0.57/SF
Ruby Has 3717 Bay Lake Trail North Las Vegas 97,080 SF 60 Months $0.35/SF
n/a 2695 North Lamb Blvd North Las Vegas 56,847 SF n/a $0.30/SF
Top Transactions of the Quarter
* Includes buildings over 5,000 SF
Dave A. [email protected]
3993 Howard Hughes Pkwy, Ste 350, Las Vegas, NV 89169702.472.7979
Prepared by:
Alternative Medicine Association • Avison Young 19
SECTION 05 LAS VEGAS HIGHLIGHTS
NHL TeamThe Vegas Golden Knights opened their inaugural season on October 10, 2017 at the T-Mobile Arena and the entire city has been rallying behind these golden boys ever since.
The Las Vegas RaidersGround was broken on November 14, 2017 for the 1.9 billion 65,000 seat, domed stadium that will be the new home of the Las Vegas Raiders when completed in 2020. This will also be home to the UNLV Rebels when completed.
20,000 SeatsThe T-Mobile Arena opened April 6, 2016 and seats 20,000 for sporting events, concerts and award shows. The Park, which is just adjacent to the T-Mobile is Las Vegas' newest entertainment spot before the big game or concert.
Mandalay BayConvention CenterRecently underwent a 350,000 square foot expansion and is now the 5th largest convention center in North America.
LVCC ExpansionLas Vegas Convention Center is currently undergoing a $2.5 billion, 600,000 square foot expansion to absorb excess demand.
$1 Billion Public Works ProjectProject Neon just began the final stage of the largest and most expensive public works project ever in the state of Nevada. The project will widen Interstate 15 from the U.S. 95 interchange to Sahara Avenue. The improvements to the busiest stretch of road in Nevada are expected to be complete in the summer of 2019
DAVE WRZESINSKISenior Associate
BEN MILLIS Principal, Industrial
5 0 4 5 G E I S T AV E N U E , L A S V E G A S , N V 8 9 1 1 5
AVISON YOUNG
10845 Griffith Peak Drive, Suite 100, Las Vegas, N V 89135 +1 702 472 7979 • avisonyoung.com
Exclusively Marketed By: