1732-1742 west maloney avenue • gallup, nm · demographics report demographics map iabs ......

1732-1742 West Maloney Avenue • Gallup, NM

PHILIP LEVYSenior Managing Director Investments 972.755.5225 [email protected]

BLAKE DAVISAssociate [email protected]

OFFERING MEMORANDUM

DOLLAR TREE PLAZA

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Confidentiality & Disclaimer Contents

PROPERTY INFORMATION Executive Summary

Property Description

Complete Highlights

LOCATION INFORMATION

Regional Map

Retailer Map

Aerial Map

FINANCIAL ANALYSIS

Financial Summary

Income & Expenses

Rent Roll

DEMOGRAPHICS

Demographics Report

Demographics Map

IABS

The information contained in the following Marketing Brochure is proprietary and strictlyconfidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichapand should not be made available to any other person or entity without the written consent ofMarcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest in thesubject property.

The information contained herein is not a substitute for a thorough due diligence investigation.Marcus & Millichap has not made any investigation, and makes no warranty or representation,with respect to the income or expenses for the subject property, the future projected financialperformance of the property, the size and square footage of the property and improvements, thepresence or absence of contaminating substances, PCB's or asbestos, the compliance with Stateand Federal regulations, the physical condition of the improvements thereon, or the financialcondition or business prospects of any tenant, or any tenant’s plans or intentions to continue itsoccupancy of the subject property.

The information contained in this Marketing Brochure has been obtained from sources webelieve to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of theinformation contained herein, nor has Marcus & Millichap conducted any investigation regardingthese matters and makes no warranty or representation whatsoever regarding the accuracy orcompleteness of the information provided. All potential buyers must take appropriate measuresto verify all of the information set forth herein.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant orlessee identified in this marketing package. The presence of any corporation’s logo or name is notintended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporationof Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commerciallisting of Marcus & Millichap, and is solely included for the purpose of providing tenant lesseeinformation about this listing to prospective customers.

Dollar Tree Plaza1732-1742 West Maloney Avenue, Gallup, NM 87301

TABLE OF CONTENTS

Section 1 PROPERTY INFORMATION

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OFFERING SUMMARY

Sale Price: $6,575,000

Cap Rate: 7.63%

NOI: $501,757

Lot Size: 3.0 Acres

Year Built: 2006

Building Size: 32,560

Price / SF: $201.93

Dollar Tree Plaza is a 32,560-square foot, multi-tenant retail center in Gallup, New Mexico.

Anchored by Dollar Tree, the center is fully stabilized at 100 percent occupancy with 91 percent of the gross leasable arealeased to national tenants including Hibbett Sports, The Cash Store, Cato, Sally Beauty Supply, OneMain Financial,GameStop, and Verizon.

PROPERTY OVERVIEW


PROPERTY INFORMATION | EXECUTIVE SUMMARY

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Dollar Tree Plaza is a 32,560-square foot, multi-tenant retail center in Gallup, New Mexico. Anchored by

Dollar Tree, the center is fully stabilized at 100 percent occupancy with 91 percent of the gross leasable

area leased to national tenants including Hibbett Sports, The Cash Store, Cato, Sally Beauty Supply,

OneMain Financial, GameStop, and Verizon. All leases are triple net. The building is newer, 2006

construction, and is situated on a large three-acre parcel with ample parking.

PROPERTY OVERVIEW

The subject property is located on Maloney Avenue which runs parallel to Interstate 40. Shadow-anchored

by a top-producing Walmart Supercenter, numerous other national and regional retailers are in the

neighboring area such as The Home Depot, Cracker Barrel, Applebee’s Neighborhood Grill and Bar, Carl’s

Jr., Hilton Garden Inn, Quality Inn & Suites, Hampton Inn & Suites, Comfort Inn, Panda Express, SpringHill

Suites, Tractor Supply Co., Family Dollar, Big 5 Sporting Goods, Pep Boys Auto Parts, Fashion Mart, Boot

Barn, Safeway grocery store, and Big Lots. Rio West Mall is less than one-half of a mile to the east and is

the only enclosed mall within a 125-mile radius, seeing 3.6 million customers per year. Anchor tenants

include Bealls, JCPenney, Fallas Paredes, The Shoe Department, and Hobby Lobby is coming soon.

Gallup is the most populous city between Flagstaff and Albuquerque, along the historic U.S. Route 66, and

serves as the regional hub. The city swells from a population of 22,000 Monday through Thursday to

150,000 on the weekends.

LOCATION OVERVIEW


PROPERTY INFORMATION | PROPERTY DESCRIPTION

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SALE HIGHLIGHTS

• Shadow-Anchored by the Top Producing Walmart Supercenter in the Nation

• 100 Percent Occupied Multi-Tenant Retail Center

• 91 Percent of the Gross Leasable Area is Leased to National Tenants

• Anchored by Dollar Tree and Hibbett Sports

• All Leases are Triple Net

• Large Three-Acre Lot with Ample Parking

• Prime Retail Trade Area at the Intersection of Interstate 40 (86,000 VPD) and

US Highway 491 with Numerous National and Regional Retailers

• Rio West Mall is Less than Half of a Mile East | The Only Enclosed Mall Within a

125-Mile Radius | Anchored by Bealls, JCPenney, Fallas Paredes, The Shoe

Department, and Hobby Lobby (Coming Soon) | 3.6 Million Customers Per Year

• Gallup Serves as a Regional Shopping Hub | The City's Population Swells from

22,000 During Week Days to 150,000 on the Weekends

• Gallup is the Most Populous City Between Flagstaff and Albuquerque, Along the

Historic US Route 66


PROPERTY INFORMATION | COMPLETE HIGHLIGHTS

Section 2 LOCATION INFORMATION

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Dollar Tree Plaza


LOCATION INFORMATION | REGIONAL MAP

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LOCATION INFORMATION | RETAILER MAP

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LOCATION INFORMATION | AERIAL MAP

Section 3 FINANCIAL ANALYSIS

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INVESTMENT OVERVIEW

Price $6,575,000

Price per SF $201.93

CAP Rate 7.63%

Total Return (yr 1) $501,757

OPERATING DATA

Gross Income $616,959

Operating Expenses $115,202

Net Operating Income $501,757

FINANCING DATA

Down Payment $6,575,000

Loan Type All Cash


FINANCIAL ANALYSIS | FINANCIAL SUMMARY

INCOME SUMMARY PER SF

Occupied Space $525,375 $16.14

Real Estate Taxes Reimbursements $47,997 $1.47

Insurance Reimbursements $12,559 $0.39

CAM/Management Reimbursements $31,028 $0.95

Gross Income $616,959 $18.95

EXPENSE SUMMARY PER SF

Real Estate Taxes $48,002 $1.47

Insurance $12,560 $0.39

Utilities $7,770 $0.24

Repairs & Maintenance $8,973 $0.28

Parking Lot Sweeping $9,290 $0.29

Alarm Monitoring $357 $0.01

Landscaping $1,315 $0.04

Pest Control $1,512 $0.05

Grounds Cleaning $1,815 $0.06

Management Fee $23,608 $0.73

Gross Expenses $115,202 $3.54

Net Operating Income $501,757 $15.41

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FINANCIAL ANALYSIS | INCOME & EXPENSES

TENANT

NAME

UNIT

SIZE (SF)

% OF

GLA

LEASE

START

LEASE

END

ANNUAL

RENT

ESC

DATE

PRICE

PER YEAR

LEASE

TYPE

EXPENSE

REIMBURSEMENT

Dollar Tree

- (1) 5 Year Option at $10.00/SF

10,000 30.71 2/04/2007 2/28/2022 $95,000 $9.50 NNN $28,128.52

Verizon

- (3) 3 Year Options:

$27.50/SF, $28.00/SF, $29.50/SF

2,800 8.6 9/01/2017 8/31/2022 $72,804 $26.00 NNN $7,877.08

GameStop 2,000 6.14 11/16/2006 1/31/2022 $52,900 $26.45 NNN $5,623.87

OneMain Financial 1,900 5.84 11/30/2006 9/30/2021 $57,000 $30.00 NNN $5,349.09

Sally Beauty Supply 1,600 4.91 1/26/2007 1/31/2022 $28,080 $17.55 NNN $4,497.27

Cato


$12.00/SF, $12.50/SF

3,900 11.98 11/06/2006 1/31/2022 $44,850 $11.50 NNN $10,972.96

Hibbett Sports


$15.00/SF, $17.25/SF, $19.00/SF

4,800 14.74 7/19/2008 7/31/2018 $69,600 $14.50 NNN $13,500.96

The Cash Store

- (1) 5 Year Option at $24.33/SF

2,733 8.39 3/15/2008 3/31/2028 $58,295 $21.33 NNN $7,684.74

Joseph Wilson, DMD 2,827 8.68 9/01/2012 8/31/2019 $46,846

9/1/2018

$16.57

$16.90

NNN $7,950.36

Totals/Averages 32,560 $525,375 $16.14 $91,584.85

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FINANCIAL ANALYSIS | RENT ROLL

Section 4 DEMOGRAPHICS

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1 MILE 5 MILES 10 MILES

Total population 540 17,040 33,263

Median age 27.2 31.6 31.3

Median age (male) 20.5 28.4 28.6

Median age (female) 33.6 33.9 33.5

Total households 151 5,230 9,543

Total persons per HH 3.6 3.3 3.5

Average HH income $49,585 $54,040 $52,673

Average house value $119,265 $172,191 $162,346

Total Population - White 209 7,276 12,386

% White 38.7% 42.7% 37.2%

Total Population - Black 4 300 457

% Black 0.7% 1.8% 1.4%

Total Population - Asian 9 362 474

% Asian 1.7% 2.1% 1.4%

Total Population - Hawaiian 0 12 22

% Hawaiian 0.0% 0.1% 0.1%

Total Population - American Indian 226 6,682 16,138

% American Indian 41.9% 39.2% 48.5%

Total Population - Other 65 1,584 2,420

% Other 12.0% 9.3% 7.3%

Total Population - Hispanic 171 5,747 10,105

% Hispanic 31.7% 33.7% 30.4%

* Demographic data derived from 2010 US Census


DEMOGRAPHICS | DEMOGRAPHICS REPORT

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POPULATION 1 MILE 5 MILES 10 MILES

Total population 540 17,040 33,263

Median age 27.2 31.6 31.3

Median age (male) 20.5 28.4 28.6

Median age (Female) 33.6 33.9 33.5

HOUSEHOLDS & INCOME 1 MILE 5 MILES 10 MILES

Total households 151 5,230 9,543

# of persons per HH 3.6 3.3 3.5

Average HH income $49,585 $54,040 $52,673

Average house value $119,265 $172,191 $162,346

ETHNICITY (%) 1 MILE 5 MILES 10 MILES

Hispanic 31.7% 33.7% 30.4%

RACE (%)

White 38.7% 42.7% 37.2%

Black 0.7% 1.8% 1.4%

Asian 1.7% 2.1% 1.4%

Hawaiian 0.0% 0.1% 0.1%

American Indian 41.9% 39.2% 48.5%

Other 12.0% 9.3% 7.3%

* Demographic data derived from 2010 US Census


DEMOGRAPHICS | DEMOGRAPHICS MAP

INFORMATION ABOUT BROKERAGE SERVICES Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: • A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material information about the property or transaction received by the broker; • Answer the client’s questions and present any offer to or counter-offer from the client; and • Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary:

• Must treat all parties to the transaction impartially and fairly; • May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to,

and carry out the instructions of each party to the transaction. • Must not, unless specifically authorized in writing to do so by the party, disclose:

that the owner will accept a price less than the written asking price; that the buyer/tenant will pay a price greater than the price submitted in a written offer; and any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duties and responsibilities to you, and your obligations under the representation agreement. • Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Information available at www.trec.texas.gov Regulated by the Texas Real Estate Commission IABS 1-0

11-2-2015

Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate License No. Email Phone

Sales Agent/Associate’s Name License No. Email Phone

Buyer/Tenant/Seller/Landlord Initials Date

PHILIP LEVYSenior Managing Director InvestmentsDallas Office 972.755.5225 Office817.380.1153 [email protected]: TX 0522087

5001 Spring Valley RoadDallas, TX 75244

BLAKE DAVISAssociateDallas Office 972.755.5220 Office 817.380.1153 [email protected] LICENSE: TX 0612970

5001 Spring Valley RoadDallas, TX 75244

MATTHEW REEVESBroker of RecordAlbuquerque Office 505-445-6333LICENSE: NM 019583

5600 Eubank Blvd. NE, Suite 200Albuquerque, NM 87111

1732-1742 west maloney avenue • gallup, nm · demographics report demographics map iabs ......

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