& FOR SALE 3355 NOVAT ST., LAS ANCHORED VEGAS, NV SHOPPING 89129 CENTER 3355 NOVAT STREET LAS VEGAS, NV 89129 CAP RATE: 5.75% PRICE: $2,115,840.00 1
OFFERING MEMORANDUM TABLE OF CONTENTS Investment highlights 3 Lease summary 4 Photos 5 Rent roll 6 Site plan 7 Property aerial 8 Tenant overview 9-11 Location overview 12 Market & area overview 13 2
INVESTMENT HIGHLIGHTS TENANT INFO: STABLE INCOME - EASE OF MANAGEMENT: Brand New Long Term Leases in Place Attractive Rental Increases Minimal Management Responsibilities Ease of Management New Multi-Tenant Retail Building Built in 2017 EXCELLENT RETAIL LOCATION: PROPERTY OVERVIEW: This offering Includes a 3,278 square foot Multi-Tenant Net Leased retail investment at 100% occupancy located in Las Vegas, Nevada. Tenants include Capriotti s sandwich shop, Marco s Pizza and The Water Bottle. This building sits on approximately 0.88 acres and is currently under construction. Anticipated completion will be the fouth quarter of 2017. Both Marco s Pizza and Capriotti s are on an initial Lease Term of 10 years with two 5 year options to renew and The Water Bottle is on an initial term of 5 years with two 5 year options to renew. Surrounded by the affluent Master Planned communities of Summerlin and Sun City Summerlin, this property services the Northwest submarket and is perfectly positioned off of the I-215 Freeway and Cliff Shadows Parkway. This net Leased investment is perfect for an investor looking for a stable income property with minimum management responsibilities. Located Within the Affluent Master Planned Community of Sun City Summerlin Excellent Visibility off I-215 and Cliff Shadows Parkway Surrounding Retailers include: Walmart, Wells Fargo, Chevron/ Terrible Herbst, Starbucks, Check City, Subway, State Farm, Timber s Bar & Grill and many more. PERFECT 1031 EXCHANGE PROPERTY: No Existing Financing in Place Brand New Construction Pride of Ownership Brand New Leases in Place with Options Rental Increases Effective Inflation Hedge Strong Retail Location Surrounded by Upscale Residential Rare Opportunity to Own a Quality Multi-Tenant Net Leased Investment in Las Vegas Nevada 3
LEASE SUMMARY LEASE SUMMARY Tenant Trade Names: Occupancy: 100% Number of Tenants: 3 Building Size: Land Size: Market/Submarket: 3,344 SF 0.88 Acres Summerlin/Northwest Las Vegas Parcel Number: 137-12-410-014 Price: $2,115,840.00 Current NOI: $121,660.80 Cap Rate: 5.75% Construction Year: 2017 Lease Type: Multi-Tenant NNN Asset 4
PHOTOS CONSTRUCTION COMPLETED 4Q 2017 5
RENT ROLL TENANT SUITE SQUARE FOOTAGE % PROJECT RENT START END DATE INCREASE DATE LEASE TERM % INCREASE ANNUAL RENT MONTHLY RENT ANNUAL RENT PSF MONTHLY RENT PSF OPTIONS TO RENEW Suite A 1,536 44.844% TBD TBD TBD 120 Months 12% Every 5 Years $50,688.00 $4,224.00 $33.00 $2.75 2 Five Year Options - 12% Increases Every 5 Yrs Suite B 1,808 55.156% TBD TBD TBD 120 Months 10% Every 5 Years $66,172.80 $5,514.40 $36.60 $3.05 2 Five Year Options - 10% Increases Every 5 Yrs N/A N/A TBD TBD TBD 240 Months $100 Every 10 Years $4,800.00 $400.00 N/A N/A 2 Ten Year Options - $100 Increase every 10 years Total: 3,344 100.000% $121,660.80 $10,138.40 6
SITE PLAN 7
PROPERTY AERIAL SUN CITY SUMMERLIN W CHEYENNE AVE NOVAT ST CLIFF SHADOWS PKWY SITE SUMMERLIN REVERENCE 8
TENANT OVERVIEW Headquartered in Toledo, OH, Marco s Pizza (Marco s Franchising, LLC) is the fastest-growing pizza company in the U.S. (based on the number of stores signed into development since 2007). Marco s was founded by native Italian, Pasquale Pat Giammarco, and is committed to making Authentic Italian pizza with fresh ingredients. The company has grown from its roots as a beloved Ohio brand to operate more than 500 stores in 35 states, and the Bahamas. In the summer of 2014 Puerto Rico and India are slated to open the first of many Marco s stores in those locales. Marco s was recently voted number 3 by Consumer Reports, and is fast becoming recognized as one of the top-performing restaurant franchises in the country in addition to have the best, Authentic Italian pizza. This store is operated by a franchisee with 3 successful locations and plans to grow within the Las Vegs market. 9
TENANT OVERVIEW Capriotti s was founded in Wilmington, Delaware in 1976 by Lois and Alan Margolet. Twelve years later a second location was opened in New Castle, Delaware. The company s success grew quickly and in 1991 they began franchising their restaurants. The first restaurant in Las Vegas opened in 1993 and was positioned on Sahara Ave. near Las Vegas Blvd. By the end of 2008 Capriotti s had 44 locations and new ownership. A local financial advisor Ashley Morris and his friend Jayson Smyle made the decision to invest in the franchise along with a few other investors which consisted of 95% Las Vegans. In 2013 Capriotti s brought in over $58 Million in revenue and experienced a 48% growth over the previous three years. In 2014 they ranked #293 in Entrepreneur s Franchise 500. Today Capriotti s as a whole has over 106 locations in 14 U.S. States and is continuing to grow. This store is operated by a franchisee with 4 successful locations and 1 more that is currently under development. 10
TENANT OVERVIEW The Water Bottle exists to provide premium filtered water in a more environmentally and economically friendly way. Distributing water directly from the source to consumers provides a fresher and superior product with less waste, less energy consumed, and less carbon dioxide produced. Founded in 2012, The Water Bottle Kiosk now has 12 operating locations in Las Vegas, 2 more under development, one in Arizona and plans to continue to expand in both markets. 11
LOCATION OVERVIEW POPULATION 1-MILE 3-MILE 5-MILE Estimated Population (2016) 10,834 64,500 192,821 Projected Population (2021) 11,962 70,493 210,955 Historical Annual Growth 2010-2016 Projected Annual Growth 2016-2021 1,235 2.1% 1,209 0.3% 11,755 1.1% 1,128 2.1% 5,993 1.9% 18,134 1.9% HOUSEHOLDS 1-MILE 3-MILE 5-MILE Estimated Households (2016) 4,625 27,243 78,873 Projected Households (2021) 4,927 28,791 83,410 LOCATION OVERVIEW: Historical Annual Change 2000-2016 Projected Annual Growth 2016-2021 3,257 14.9% 7,956 2.6% 26,708 3.2% 303 1.3% 1,548 1.1% 4,537 1.2% This multi-tenant net leased investment is located in the Summerlin/ Northwest Las Vegas submarket and is perfectly positioned off of the I-215 Freeway and Cliff Shadows Parkway. This property also enjoys easy access to the US-95 Freeway, Downtown Las Vegas and The Strip. The Northwest submarket has the Las Vegas Valley s second lowest retail vacancy rate, currently at 7.4 percent. Notable retail Tenants within the immediate area include: Walmart, Starbucks, Wells Fargo, Chevron/ Terrible Herbst, Check City, Subway, State Farm, Timbers Bar and Grill and many more. This Northwest part 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 $73,176 $89,934 $93,682 Median Household Income 2016 $63,290 $70,740 $72,691 DAYTIME DEMOS 1-MILE 3-MILE 5-MILE Total # of Businesses 2016 145 1,523 6,321 Total # of Employees 2016 832 15,208 64,104 Employee Pop per Business 5.7 to 1 10.0 to 1 10.1 to 1 Residential Pop per Business 74.6 to 1 42.4 to 1 30.5 to 1 12
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 13