OFFERING MEMORANDUM 1
OFFERING MEMORANDUM TABLE OF CONTENTS Investment highlights 3 Property summary 4 Property information 5 Photos 6 Financial analysis 7 Property aerials 8-10 Site plan 11 Tenant Overviews 12-14 Location overview 15 Market & area overview 16 2
INVESTMENT HIGHLIGHTS STABLE INCOME EASE OF MANAGEMENT: Minimal Management Responsibilities Attractive Rental Increases Monument Signage on N. Durango Dr. Long term tenants in place PROPERTY OVERVIEW: This offering includes a 14,374 square foot class A Multi Tenant Net Leased Retail Investment (The Shops at Town Center) with 100% occupancy located in Northwest Las Vegas. This property is perfectly positioned on the Northwest corner of West Centennial Parkway and North Durango Drive right off the I-215 Freeway. Majority of the Tenants have been in place since this center was constructed in 2008. Tenants include: Domino s Pizza, Align Chiropractic, Quizno s, Dollar Loan Center, Farmers Insurance, Dee s Donuts and Angel s Cleaners. This net leased investment is perfect for an investor looking for a stable income property with minimal management responsibilities. EXCELLENT RETAIL LOCATION STRONG DEMOGRAPHICS: Irreplaceable Street Visibility on N. Durango Dr. Main Retail Corridor for Northwest Las Vegas Highly Desired Retail Location Adjacent to National Credit Tenants Positioned just South of the I-215/Durango Interchange PERFECT 1031 EXCHANGE PROPERTY: Pride of Ownership Strong Northwest Las Vegas Retail Location Rare Opportunity to Own a Class A Multi-Tenant Retail Center Newer 2008 Construction 3
PROPERTY SUMMARY PROPERTY SUMMARY Property Name The Shops at Town Center Property Address 6401, 6441-6461 N. Durango Dr., Las Vegas, NV 89149 Occupancy 100% Number of Tenants 8 Building Size 14,374 SF Land Area 1.97 Acres Parcel Number 125-20-402-008 Construction Year 2008 Lease Type NNN Market Northwest Las Vegas 4
79.42 50.72 79.54 79.66 79.78 79.9 80.02 62 59.99 255.08 289.97 KEVIN WAY 30 378.64 PROPERTY INFORMATION ADDRESS: 6401, 6441-6461 N. Durango Dr., Las Vegas, NV 89149 MARKET/SUBMARKET Northwest Las Vegas PRICE $6,722,808.00 CURRENT NOI $403,368.48 CAP RATE 6% PARCEL APN# 125-20-402-008 BUILDING AREA 14,374 SF LAND AREA 1.97 Acres VISIBILITY AND FRONTAGE Excellent visibility along N. Durango, Centennial and I-215 Freeway YEAR BUILT/RENOVATED Built in 2008 019 018 017 016 015 014 013 18 17 16 15 14 13 19 41 41 41 41 41 41 41 36 0 RYAN CREEK AVE 40 40 40 CANDICE CREEK CT PB 124-37 051 1 052 053 054 055 056 057 058 80 050 52 53 54 55 56 57 58 0 065 9 049 064 063 062 061 060 059 65 64 63 62 61 60 59 25 048 8 7 047 046 6 5 045 80 44 4 60 42.71 40 40 40 40 40 40 40 066 067 068 069 070 071 072 66 42.5 67 68 69 70 71 72 3 74.5 012 12 043 042 041 040 039 038 037 43 42 41 40 39 38 37 ALBINA CREEK ST 011 11 010 1071.35 009 9 008 8 7 007 006 6 5 005 004 4 88.37 3 003 002 2 87.74 001 1 410 42.5 40 40 40 40 40 25.92 A CREEK AVE 95-007 75 75 75 63.97 031 032 033 034 035 231 32 33 34 35 233 40 40 25 40 25.21 45.21 75 75 29.09 41 40 40.01 41 41 40 40 40 43.35 75.61 85.29 89.61 89.3 89 88.69 88.06 51.02 036 36 77.45 71.39 1 40.52 30 2 R=15 R=15 PT 1 1 R=25 285.19 LD 163-81 300 302.71 287.90 PM 109-83 020 005 004 0.55 012 015 1.12 007 1.98 PT 1 117.38 30 231.27 402 R=970 L=210.76 008 1.97 204.01 007 332.85 R=54 125 L=72.99 200 R=50 200.99 50 013 3231.37 50 83 N. DURANGO DR. > 40 5
PHOTOS 6
FINANCIAL ANALYSIS BUILDING A 6461 N. DURANGO DR. TENANT SUITE SQUARE FEET % PROJECT COMMENCEMENT DATE END DATE LEASE TERM % INCREASE Elements 3972 27.63% 05/30/08 11/30/20 60 Month 3% $114,393.60 $9,532.80 $28.80 $2.40 $2,144.88 BUILDING B 6441 N. DURANGO DR. TENANT SUITE SQUARE FEET % PROJECT COMMENCEMENT DATE END DATE LEASE TERM % INCREASE Domino s Pizza 110 1067 7.42% 02/14/08 02/28/18 60 Months 2% $41,387.16 $3,448.93 $38.79 $3.23 $576.18 Align Chiropractic 120/130 2279 15.86% 04/01/16 03/30/21 60 Months 3% $64,267.80 $5,355.65 $28.20 $2.35 $1,230.66 Quizno s Subs 140 1099 7.65% 11/01/13 10/31/21 60 Months 3% $37,717.68 $3,143.14 $34.32 $2.68 $593.46 BUILDING C 6401 N. DURANGO DR. TENANT SUITE SQUARE FEET % PROJECT COMMENCEMENT DATE END DATE LEASE TERM % INCREASE Dollar Loan Center 110/120 1851 12.88% 05/04/14 04/30/19 60 Months 3% $41,238.24 $3,436.52 $22.32 $1.86 $999.54 Farmer s Insurance 130 943 6.56% TBD TBD 72 Months 3% $25,461.00 $2,121.75 $27.00 $2.25 $509.22 Dee s Donuts 140/150 1563 10.87% 09/01/13 09/30/20 84 Months 3% $32,823.00 $2,735.25 $21.00 $1.75 $844.02 Angel s Cleaner 160 1600 11.13% 02/01/16 01/31/21 60 Months 3% $46,080.00 $3,840.00 $28.80 $2.40 $864.00 Total 14,374 100.00% $403,368.48 $33,614.04 $7,761.96 ANNUAL RENT ANNUAL RENT ANNUAL RENT MONTHLY RENT MONTHLY RENT MONTHLY RENT ANNUAL RENT PSF ANNUAL RENT PSF ANNUAL RENT PSF MONTHLY RENT PSF MONTHLY RENT PSF MONTHLY RENT PSF CAMS (0.54 SF) CAMS (0.54 SF) CAMS (0.54 SF) 7
PROPERTY AERIAL US-95 I-215 SITE NORTH END PIZZA AUTHENTIC EAST COAST PIZZERIA N. DURANGO DR W. CENTENNIAL PKWY 8
PROPERTY AERIAL NORTH END PIZZA AUTHENTIC EAST COAST PIZZERIA 5 9 US U N. D W. CE N PK AL I NN TE R GO D R AN I-215 W. SITE CE NT EN NI AL PK WY 9 WY
PROPERTY AERIAL US-95 NORTH END PIZZA AUTHENTIC EAST COAST PIZZERIA I-215 SITE W. CENTENNIAL PKWY N. DURANGO DR 10
SITE PLAN 11
TENANT OVERVIEW Founded in 1960, Domino s is the recognized world leader in pizza delivery operating a network of company owned and franchise owned stores in the United States and International markets. As of Quarter 1 of 2016, Domino s employs more than 260,000 people and operates 12,600 stores in more than 80 countries around the world. Domino s is consistently one of the top five companies in terms of online transactions and approx. 50% of their sales in the U.S. come from digital ordering channels. Align Chiropractic was founded by Dr. Kissling and Dr. Quisberg. Both doctors strived to have one of the most advanced chiropractic offices in all of Las Vegas. Their first office opened in 2009 at The Shoppes at Town Center and quickly became a success. Within the last five years Dr. Kissling and Dr. Quisberg expanded with an additional four locations. Their dream of owning and operating two offices for each doctor has now turned into multiple offices with a team of highly educated, professional and caring staff. All five of their practices offer the most advanced chiropractic care in Las Vegas. Quiznos is a franchised fast-food restaurant that was founded 35 years ago in Denver Colorado and the first to specialize in toasted submarine sandwiches. The restaurant chain was founded in 1981 by Jimmy Lambatos and sold to Richard Schaden in 1991. At the end of 2013 the chain had approximately 1,500 domestic locations and 600 international locations. Quiznos is the second largest submarine sandwich shop chain in North America, after Subway. 12
TENANT OVERVIEW Dollar Loan Center has over 80 locations throughout California, Nevada, South Dakota and Utah. Their signature & title loan locations are like none other in the industry and are set up to make your experience fast, easy and comfortable. Their product has superior terms over payday loan companies, giving customers several benefits and finance options. Dollar Loan Center offers a unique alternative to payday loans getting you up to $2,500 fast to solve any immediate financial problem. Established in 1998, Dollar Loan Center is the leading provider of signature loans and car title loans in the industry. Farmers Insurance Group is a U.S. insurer group of automobiles, homes and small businesses and also provides other insurance and financial services products. Farmers Insurance has more than 50,000 exclusive and independent agents and approximately 22,000 employees. Farmers serves more than 10 million households with more than 19 million individual policies across all 50 states. Dee s Donuts is a family owned and operated donut shop specializing in traditional style donuts. Made fresh daily, their secret recipe delivers donuts with a texture that satisfies any sweet tooth. Dee s Donuts has been serving the Northwest Vegas Valley since 2008. 13
TENANT OVERVIEW Angel Cleaners was founded in 2008 and is family owned and operated. They are your one stop shop for dry cleaning, laundry services, alterations and hand bag & shoe cleaning services. Angel Cleaners has been servicing Northwest Las Vegas for over 8 years and is the number one dry cleaner in the area. Elements Salon and Wellness Spa is family owned and operated and was founded in 2008. The salon first opened with two employees and over the years they have grown to over twenty-two employees and now offer every spa and salon service imaginable. Their excellence has earned them the Talk of the Town Award in 2013 and they continue to strive to be the best in the industry. Elements innovative approach has set the standard for the salon and spa business in all of Las Vegas. 14
LOCATION OVERVIEW POPULATION 1-MILE 3-MILE 5-MILE Estimated Population (2016) 10,879 96,782 221,458 Projected Population (2021) 12,341 106,454 242,907 Historical Annual Growth 2010-2015 Projected Annual Growth 2015-2020 1,695 3.1% 15,332 3.1% 19,554 1.6% 1,462 2.7% 9,675 2.0% 21,449 1.5% HOUSEHOLDS 1-MILE 3-MILE 5-MILE Estimated Households (2016) 4,145 36,349 84,697 Projected Households (2021) 4,539 38,610 89,817 Historical Annual Change 2000-2016 Projected Annual Growth 2016-2021 3,341 25.9% 25,024 13.8% 46,229 7.5% 394 1.9% 2,261 1.2% 5,121 1.2% LOCATION OVERVIEW: This Multi-Tenant Retail Building is located in Northwest Las Vegas and is perfectly positioned on the signalized hard corner of West Centennial Parkway and North Durango Drive right off the I-215 Freeway. This retail center also enjoys easy access to the US-95 Freeway, Downtown Las Vegas and The Strip. The Northwest sub market has the Las Vegas Valley s second lowest retail vacancy rate currently at 7.4 percent. Notable retail Tenants in the immediate area include: Kohl s, Home Goods, PetSmart, Smith s, TJ Maxx, Dollar Tree, Wells Fargo Bank, Office Depot, Bank of America and many more. This Northwest area of town has quickly become a vibrant commercial destination with a strong retail demand generator. INCOME 1-MILE 3-MILE 5-MILE Avg. Household Income 2016 $80,161 $86,804 $82,691 Median Household Income 2016 $71,851 $76,799 $71,912 DAYTIME DEMOS 1-MILE 3-MILE 5-MILE Total # of Businesses 2016 327 1,826 4,244 Total # of Employees 2016 3,116 15,214 34,512 Employee Pop per Business 9.5 to 1 8.3 to 1 8.1 to 1 Residential Pop per Business 33.3 to 1 53.0 to 1 52.2 to 1 15
AREA PROFILE Las Vegas is the most populous city in the U.S. state of Nevada and the county seat of Clark County. Las Vegas is an internationally renowned major resort city known primarily for gambling, shopping, and fine dining and is the leading financial and cultural center for Southern Nevada. The city bills itself as The Entertainment Capital of the World, and is famous for its consolidated casino hotels and associated entertainment. A growing retirement and family city, Las Vegas is the 31st-most populous city in the United States, with a population at the 2014 census of 583,756. The 2014 population of the Las Vegas metropolitan area was 2,027,868. Today, Las Vegas is one of the top tourist destinations in the world. Established in 1905, Las Vegas was incorporated as a city in 1911. Las Vegas often refers to the city plus some areas beyond the city limits, especially the resort areas on and near the Las Vegas Strip, and sometimes the entire Las Vegas Valley. The 4.2 mi (6.8 km) stretch of South Las Vegas Boulevard known as the Strip is mainly in the unincorporated communities of Paradise, Winchester, and Enterprise. Las Vegas is situated within Clark County in an arid basin on the desert floor, surrounded by dry mountains. The Spring Mountains lie to the west. Within the city there are many lawns, trees, and other greenery. The city enjoys abundant sunshine yearround: it has an average of about 300 sunny days per year. The primary drivers of the Las Vegas economy are tourism, gaming and conventions, which in turn feed the retail and restaurant Industries. In the second quarter of 2012, something new was on the horizon for Downtown Las Vegas. Tony Hsieh, CEO of Zappos, purchased the former City Hall building, thus turning that property into Zappos corporate headquarters in Downtown Las Vegas. Since then Mr. Hsieh has put in a lot of money and effort revitalizing Downtown Las Vegas which is known as the Downtown Project. This recent project has transformed Downtown, bringing new restaurants, retail, tech buildings, annual, monthly and weekly events and a large park made out of shipping containers (Container Park) which has an outdoor hangout space that offers shopping, restaurants and a small outdoor concert venue. The Downtown project has changed Downtown Las Vegas and has increased the number of local and out of town visitors to the many events, restaurants and retail shops this area has to offer. IN 2014, MORE THAN 41 MILLION PEOPLE VISITED LAS VEGAS. 16