offering memorandum - loopnet€¦ · jason dean indianapolis office director of finance richard...
TRANSCRIPT
S h o p p e s o n B r o a dA n 1 1 , 6 0 0 - S q u a r e F o o t R e t a i l S t r i p C e n t e r L o c a t e d i n t h e D a y t o n , O h i o M S A
OFFERING MEMORANDUM
CONFIDENTIALITY & DISCLAIMER
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving it from Marcus & Millichap and should not be madeavailable to any other person or entity without the written consent of Marcus & Millichap. This MarketingBrochure has been prepared to provide summary, unverified information to prospective purchasers, and toestablish only a preliminary level of interest in the subject property. The information contained herein is not asubstitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, andmakes no warranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of the property andimprovements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance withState and Federal regulations, the physical condition of the improvements thereon, or the financial condition orbusiness prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subjectproperty. The information contained in this Marketing Brochure has been obtained from sources we believe tobe reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information containedherein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes nowarranty 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.
P R E S E N T E D B Y
Jordan KlinkIndianapolis OfficeFirst Vice President of [email protected] (317) 218-5316
Nicholas WeaverIndianapolis OfficeSenior [email protected] (317) 218-5339
David KlinkINDIANAPOLIS OFFICEAssociate
Ben SullivanINDIANAPOLIS OFFICEAssociate
Jason DeanINDIANAPOLIS OFFICEDirector of Finance
Richard NiewiadomskiINDIANAPOLIS OFFICE
Financial Analyst
Michael GlassBroker of Record, OhioLicense #: BRK.2007005898
TA B L E O F C O N T E N T S
1 . E X E C U T I V E S U M M A R Y
2 . F I N A N C I A L A N A L Y S I S
3 . M A R K E T O V E R V I E W
E X E C U T I V E S U M M A R Y
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage orage are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2017 Marcus & Millichap. All rights reserved.
O f f e r i n g O v e r v i e w
The Klink Group of Marcus and Millichap is pleased to present for sale
Shoppes on Broad. The subject property is an 11,600-square foot retail
property situated on 1.15 acres in Fairborn, Ohio. Shoppes on Broad is a
55% occupied shopping center, offering an incoming investor a
significant amount of upside potential through lease-up.
The subject property is uniquely positioned across from Wright-
Patterson Air Force Base along Broad Street which is accustomed to
nearly 10,000 vehicles passing daily. The majority of the tenants have
shown long-term occupancy in the building of 30+ years with the anchor
tenant currently on a long-term lease. All tenants operate on a triple-net
lease structure with competitive rents averaging $9.84 per square foot.
Shoppes on Broad gives an incoming investor the opportunity to
purchase a retail center with significant value-add through lease up.
Leasing up the 2,000-square foot vacancy at a conservative $9.00 per
square foot market rent will increase the cap rate to 11.08% and
increase an additional 20 basis points when each of the remaining 1,600-
square foot suites are leased up. Given the current long-term nature of
the anchor tenants, the subject property also offers stability during the
lease up process.
PROPERTY SUMMARY
Address 304-316 N. Broad StreetFairborn, OH 45324
Offering Price $652,000
Cap Rate: 7.65%
Price Per SF: $56.21
Size (Square Feet): 11,600
Lot Size: 1.15 Acres
Ownership Interest Fee Simple
Zoning Commercial
EXECUTIVE SUMMARY
• Uniquely Positioned Across from Wright-Patterson Air Force Base
• Nearly 10,000 Vehicles Passing Site Daily
• Six Years Remaining on Anchor Tenant – Sherwin Williams
• Significant Value Add with 43% Vacancy Upside
I n v e s t m e n t H i g h l i g h t s
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage orage are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2017 Marcus & Millichap. All rights reserved.
Twin Base Golf Course
West at Prairie TraceGolf Club
East at Prairie TraceGolf Club
McDonald’s
F I N A N C I A L A N A L Y S I S
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage orage are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2017 Marcus & Millichap. All rights reserved.
FINANCIAL ANALYSIS
FINANCIAL SUMMARY
Price: $652,000
Down Payment: (30%) $195,600
Current CAP Rate: 7.65%
Pro Forma CAP Rate: 16.29%
GLA: 11,600 SF
Cost Per Square Foot: $56.21
Site Area (Acreage): 1.15 Acres
NEW ACQUISITION FINANCING
Original Loan Amount: $456,400
Interest Rate: 4.25%
Amortization: 240 Months
Term: 5 Years
Monthly Payment: $2,826.19
Annual Debt Service $33,914.23
PRO-FORMA LEASING SCENARIO
Suite SizeNew Lease
TypeCap Rate Cash-on-Cash Return
2,000 SF NNN 11.08% 19.05%
1,600 SF NNN 13.82% 28.24%
1,600 SF NNN 16.29% 36.38%
Note: Pro-Forma NOI, Cap Rates and Cash-on-Cash Return are estimated with a constant 3% management fee with each new lease signed.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage orage are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2017 Marcus & Millichap. All rights reserved.
CURRENT EXPENSES
CAM $0.81 $9,417.41
Insurance: $0.46 $5,280.00
Real Estate Taxes: $0.71 $8,247.92
Management Fee: 3.00% $2,284.00
Total Expenses $26,370.82
Expenses Per SF: $2.27
Note: Added $916.00 and $381.15 to 'Total Expenses' for Vacant Water and Electric that is not reimbursed from current tenants for vacant space
OPERATING DATACurrent Pro Forma
Gross Potential Rent: $109,912.00 $109,912.00
CAM Reimbursement: $9,417.41 $9,417.41
Tax Reimbursement: $8,247.92 $8,247.92
Insurance Reimbursement: $5,280.00 $5,280.00
Mgmt. Reimbursement: $1,496.41 $1,496.41
Other Income: $0.00
Potential Gross Income: $134,353.74 $134,353.74
Vacancy: 43% $58,109.70 0.00% $0.00
Effective Gross Income: $76,244.04 $134,353.74
Less Expenses: $26,370.82 $28,117.43
Net Operating Income: 7.65% $49,873.22 16.29% $106,236.31
Capital Reserves: $0.10 $1,160.00 $0.10 $1,160.00
Annual Debt Payment: $33,914.23 $33,914.23
Net Cash Flow After Debt: 7.57% $14,798.99 36.38% $71,162.08
Principle Reduction: $14,803.38 $14,803.38
Total Return: 15.13% $29,602.37 43.95% $85,965.46
FINANCIAL ANALYSIS
PRO-FORMA EXPENSES
CAM $0.81 $9,417.41
Insurance: $0.46 $5,280.00
Real Estate Taxes: $0.71 $8,247.92
Management Fee: 3.00% $4,030.61
Total Expenses $28,117.43
Expenses Per SF: $2.42
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage orage are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2017 Marcus & Millichap. All rights reserved.
Shoppes on Broad Rent Roll
Tenant GLA % GLALease Start
DateLease End
DateMonthly
RentAnnual Rent
Rent/SFAnnual CAM
Reimb.
Annual Tax
Reimb.
Annual Insurance
Reimb.
Annual Mgmt. Reimb.
Options
Sherwin Williams 4,000 34.48% Jan. 1988 Dec. 2025 $3,410.00 $40,920.00 $10.23 $3,247.38 $2,844.11 $1,820.69 $0.00 2 - 5yr.
Vacant 2,000 17.24% - - $1,500.00 $18,000.00 $9.00 $1,623.69 $1,422.06 $910.34 $393.79 0
Vacant 1,600 13.79% - - $1,200.00 $14,400.00 $9.00 $1,298.95 $1,137.64 $728.28 $315.03 0
Vacant 1,600 13.79% - - $1,200.00 $14,400.00 $9.00 $1,298.95 $1,137.64 $728.28 $315.03 0
Acert Healthcare 1,400 12.07% June 2019 May 2024 $849.33 $10,192.00 $7.28 $1,136.58 $995.44 $637.24 $275.66 1 - 5yr
Subway 1,000 8.62% Feb. 1988 Feb. 2021 $1,000.00 $12,000.00 $12.00 $811.85 $711.03 $455.17 $196.90 1 - 5yr
Rent Income Total
Total 11,600.00 100% Gross $109,912.00 $134,353.74 $9,417.41 $8,247.92 $5,280.00 $1,496.41 $24,441.74
Vacant 5,200.00 44.83% Vacant $46,800.00 $58,109.70 $4,221.60 $3,697.34 $2,366.90 $1,023.86 $11,309.70
Occupied 6,400.00 55.17% Scheduled $63,112.00 $76,244.04 $5,195.81 $4,550.58 $2,913.10 $472.55 $13,132.04
FINANCIAL ANALYSIS
D A Y T O N M A R K E T O V E R V I E W
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage orage are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2017 Marcus & Millichap. All rights reserved.
Technology HubDayton is known for its high concentration of aerospace and aviation technology. In 2009, it was designated as Ohio's aerospace innovation hub
Healthcare ServicesMetro hospitals consistently earn top national rankings and recognition as well as many of HealthGrades’ top ratings.
Higher EducationThe University of Dayton and Wright State University are two major higher-education institutions impacting the local economy.
The Dayton metro area is often referred to as the birthplace of aviation as it was the home of the Wright brothers and where they researched andexperimented with flight. Composed of Greene, Montgomery and Miami counties, it is the fourth largest metropolitan area in Ohio. Defense and aerospaceindustries comprise a large section of the region’s economy. Additionally, healthcare accounts for a sizable portion of the area’s economy; several keyinstitutes and centers are located here.
Economy• Hospitals in the Greater Dayton area have an estimated
combined employment of nearly 32,000 and a yearlyeconomic impact of $6.8 billion.
• Wright-Patterson U.S. Air Force Base is just east of Dayton.The base employs 27,500 military, civilian and contractemployees and has a $4.3 billion annual economic impact.
• Dayton’s logistics sector is growing and is expected to add2,200 jobs by 2023.
• Tech Town, a 40-acre district developed in downtownDayton, was created as a tool to support the attraction andgrowth of high-technology business and promote technologycommercialization.
MARKET OVERVIEW
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage orage are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2017 Marcus & Millichap. All rights reserved.
M a r k e t D e m o g r a p h i c sPOPULATION 1 Miles 3 Miles 5 Miles
2023 Projection
Total Population 5,802 27,888 80,387
2018 Estimate
Total Population 5,884 28,048 76,785
2010 Census
Total Population 5,879 27,578 75,305
2000 Census
Total Population 6,565 29,579 70,347
Current Daytime Population
2018 Estimate 13,665 38,642 88,757
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
2023 Projection
Total Households 2,416 11,968 32,496
2018 Estimate
Total Households 2,420 11,913 30,633
Average (Mean) Household Size 2.28 2.30 2.40
2010 Census
Total Households 2,415 11,714 29,919
2000 Census
Total Households 2,624 12,263 27,224
Occupied Units
2023 Projection 2,416 11,968 32,496
2018 Estimate 2,792 13,224 33,694
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
2018 Estimate
$150,000 or More 2.90% 5.36% 7.54%
$100,000 - $149,000 9.58% 10.55% 14.05%
$75,000 - $99,999 9.52% 10.57% 13.31%
$50,000 - $74,999 21.51% 19.39% 19.91%
$35,000 - $49,999 13.45% 15.22% 13.18%
Under $35,000 43.03% 38.89% 32.00%
Average Household Income $53,929 $60,138 $72,305
HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles
Total Average Household Retail Expenditure
$49,171 $51,518 $60,333
Consumer Expenditure Top 10 Categories
Housing $13,019 $13,592 $15,627
Transportation $8,127 $8,888 $10,145
Shelter $7,254 $7,448 $8,545
Food $5,008 $5,175 $6,087
Personal Insurance and Pensions $4,851 $5,133 $6,917
Health Care $3,448 $3,916 $4,336
Utilities $3,176 $3,325 $3,734
Entertainment $1,864 $1,933 $2,234
Household Furnishings and Equipment
$1,290 $1,437 $1,669
Apparel $1,208 $1,209 $1,365
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
Population By Age
2018 Estimate Total Population 5,884 28,048 76,785
Under 20 24.79% 23.01% 24.62%
20 to 34 Years 26.56% 25.15% 26.67%
35 to 39 Years 6.34% 5.91% 6.02%
40 to 49 Years 11.10% 10.38% 10.54%
50 to 64 Years 18.44% 19.31% 17.75%
Age 65+ 12.76% 16.22% 14.39%
Median Age 34.12 36.42 34.05
Population 25+ by Education Level
2018 Estimate Population Age 25+ 3,961 19,309 50,058
Elementary (0-8) 2.43% 3.34% 2.52%
Some High School (9-11) 7.94% 8.68% 6.92%
High School Graduate (12) 34.38% 32.81% 28.07%
Some College (13-15) 25.72% 25.00% 23.15%
Associate Degree Only 9.77% 8.19% 8.94%
Bachelors Degree Only 11.03% 12.41% 16.35%
Graduate Degree 7.34% 8.43% 13.22%
MARKET OVERVIEW
S h o p p e s o n B r o a dA n 1 1 , 6 0 0 - S q u a r e F o o t R e t a i l S t r i p C e n t e r L o c a t e d i n t h e D a y t o n , O h i o M S A
OFFERING MEMORANDUM
EXCLUSIVELY LISTED BY:
JORDAN KLINKINDIANAPOLIS OFFICE
First Vice President of [email protected]
P (317) 218-5316
NICHOLAS WEAVERINDIANAPOLIS OFFICE
Senior [email protected]
P (317) 218-5339
David KlinkINDIANAPOLIS OFFICE
Associate
Ben SullivanINDIANAPOLIS OFFICE
Associate
Jason DeanINDIANAPOLIS OFFICE
Director of Finance
Richard NiewiadomskiINDIANAPOLIS OFFICE
Financial Analyst
Broker of RecordMichael Glass230 West StreetSuite 100 Columbus, OH 43215 TEL: 614-360-9800