3850 leon ave...subject property 3850 leon ave las vegas, nv 89130 - north las vegas ind location...

3850 Leon Ave

PREPARED BY

Casey Whiting

Broker

Underwriting Report

2,722 SF Industrial Building

SUBJECT PROPERTY

Property Details 2

MARKET SUMMARY

North Las Vegas Submarket Summary 5

Las Vegas Market Summary 6

Las Vegas Economic Summary 7

PEER PROPERTIES

Peer Properties Summary 11

Peer Property Photos 14

Peer Property Comparison 15

Peer Property Details 19

LEASING ANALYTICS

Vacancy Analytics 23

Rent Analytics 28

Absorption Analytics 30

Leasing Analytics 31

LEASE COMPS

Lease Comps Summary 34

Lease Comps Details 36

CONSTRUCTION

Overall Construction Summary 41

Las Vegas Construction 42

North Las Vegas Construction 43

Construction Activity 47

Under Construction Summary 52

Under Construction Details 54

Completed Construction Past 12 Months 57

Deliveries Past 12 Months Details 59

SALE COMPS

Investment Trends 63

Sale Comps Detail 67

Sales Volume 70

Sales Pricing 71

Cap Rates 73

Table Of Contents

12/19/2019Copyrighted report licensed to Whiting & Company, Real Estate Advisors -

888211.For Additional Info or to Schedule a Tour Call: Casey Whiting 702.250.6504

Table Of Contents

Top Buyers & Sellers 74



Subject Property

3850 Leon AveLas Vegas, NV 89130 - North Las Vegas Ind

LOCATION

Distance to Airport: 2.2 mi

Distance to Seaport: 287.1 mi

Population 500 Mile Radius: 54,691,948



Distance to Rail Terminal: 6.9 mi

-

PROPERTY

Type: - Tenancy: -

Park: - Construction: -

RBA: 2,722 SF Column Spacing: -

Year Built/Renov: 1973 Truck Wells: -

Ceiling Height: - Rail Served: -

Docks: - Sprinklers: -

Drive Ins: - Power: -

Truck Court: - Cranes: -

Land Acres: 1.26 AC Levelators: -

Office: - Taxes: -

Parking: -

Features: -

12 MO. LEASING ACTIVITY SF

Subject Property:

Peers Total:

-

-

Peers Count: 4

Peers Avg: -

Peer Submarkets Total: 3,882,365

Peer Submarkets Avg: 2,275

ASKING RENT PER SF

Current:

Last Quarter:

-

-

Year Ago: -

Peers: $1.15

Peer Submarkets: $0.72

VACANCY

Current:

Last Quarter:

0%

0%

Year Ago: 18.4%

Peers: 23.2%

Peer Submarkets: 5.9%

AVAILABLE SPACES

Currently No Available Spaces



Page 2

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Subject Property

BuildingPrimary

BuildingBuilding



Page 3

3850 Leon Ave

PREPARED BY

Casey Whiting

Broker

Market Summary


North Las Vegas Submarket SummaryNorth Las Vegas Industrial

Developers continue to focus on North Las Vegas, andthe pipeline remains healthy on top of the millions ofsquare feet of primarily logistics space already delivered.Positive demand continues to drive solid rent growth,particularly for logistics properties. The submarket’s solidfundamentals have attracted investor’s interest, withinvestment volume picking up considerably in the pastcouple years.

The Las Vegas industrial market benefits from itsfavorable location, which allows for potential overnightservice to both Southern California and a large portion ofArizona. Developers are looking to capitalize on this,particularly in North Las Vegas, where more than 10

million SF of new space has been built since 2012. NorthLas Vegas is the largest local industrial submarket, withapproximately 35% of the metro’s logistics inventory.

The area benefits from the presence of the I-15 as wellas the Union Pacific Railroad, which runs parallel to theinterstate. Additionally, the North Las Vegas Air Terminallies to the southwest, although McCarran InternationalAirport in Boulder Junction is the larger of the two areaairports. An increasing number of national retailers andthird-party logistics companies are leasing space forlocal distribution facilities in the submarket, includingAmazon, Bed Bath & Beyond, the Honest Company,DHL, and UPS.

NET ABSORPTION, NET DELIVERIES & VACANCY



Page 5

Las Vegas Market SummaryLas Vegas Industrial

The Las Vegas industrial market is looking to capitalizeon its favorable location, being within a day's drive toSouthern California and large portions of Arizona. Thecity of Las Vegas is working to promote the metro as a“major West Coast logistics center” through infrastructureimprovements and by leveraging existing rail lines andairfreight facilities.

This is part of an effort to diversify the local economy,and government officials in North Las Vegas are lookingto lure new companies with quick permitting and financialincentives. This cycle has seen numerous nationaltenants locate or expand their presence in the LasVegas, including Amazon, Sephora, and Bed Bath &Beyond.

Infrastructure improvements to roadways are ongoing;the Nevada Department of Transportation began amultiyear, multiphase, $200 million-plus upgrade of U.S.95 in 2010. Also recently completed is the $1.5 billionProject Neon, which widened 3.7 miles of I-15 andprovides a direct connection between U.S. 95 and I-15while improving the Spaghetti Bowl interchange.

Construction levels remain elevated after developershave already inundated the metro, particularly the NorthLas Vegas Submarket. Steady demand has helped keepvacancies in check, and rent growth is strong and wellabove the National Index. Investment volume in 2019 sofar is slightly behind that of 2018, which saw the highestsales volume this cycle.

NET ABSORPTION, NET DELIVERIES & VACANCY



Page 6

Las Vegas Economic SummaryLas Vegas Industrial

Las Vegas’s recovery continues, after getting off to aslow start, bolstered by healthy job and populationgrowth. Annual job growth in the Las Vegas metro hasaveraged around 3% over the past five years, based onnumbers from the U.S. Bureau of Labor Statistics. TheLas Vegas metro has seen steady growth in the numberof people moving to the area this cycle, andapproximately two-thirds of the population growth hascome from in-migration from other states, with asignificant portion from southern California metros.

While state and local officials are working to diversify theeconomy, the leisure and hospitality sector remains LasVegas’ primary economic driver. With nearly one in threejobs based in the sector, the metro’s economic successis inherently tied to tourism. Visitor numbers from the LasVegas Convention and Visitors Authority are lookingstrong, with the metro attracting more than 40 millioneach of the past five years, an all-time record. Astrengthening national economy will certainly help LasVegas’s cause as increased disposable incomeencourages even more tourists and attracts visitor dollarsto the metro.

The construction industry has made a strong recoveryrecently after being hit hard by the collapse of thehousing market during the recession. Annualemployment growth in the construction sector over thepast five years has averaged around 10%. However, thenumber of workers still remains at only approximately60% of prerecession levels. The metro employed morethan 110,000 construction workers in 2006, or about 12%of the overall employment base; today, constructionmakes up around 6.5% of employment.

The construction sector is likely to see continued growthover the next few years, with a number of large projectscurrently underway in Las Vegas, most located proximateto the Strip. One is the Genting Group’s $4 billionResorts World Las Vegas, with the initial phaseestimated to include around 3,000 rooms and a 100,000-SF casino. That project alone is expected to add 30,000constructions jobs. Two other large hotel projects arealso slated to open in the next couple of years: The DrewLas Vegas, with an estimated 4,000 rooms, and WynnLas Vegas’s Paradise Park, with around 1,500 rooms.Several additional tourism-oriented projects are alsounderway, including the expansion of the Las VegasConvention Center, a 550,000-SF conference center atCaesars, and an 18,000-seat arena, the MSG Sphere,at the Venetian.

One of the most significant projects in the metro is thenew 65,000-seat indoor stadium for the Las VegasRaiders that recently broke ground. The Raiders and LasVegas Stadium Authority are partnering to build thestadium, which is estimated to open for the 2020 season.The project is expected to employ about 1,500construction workers when it hits its peak. The state-backed economic impact report on the stadium isestimating a total economic output of $620 million, aswell as $35 million new tax dollars each year. Thoseprojections are based on the stadium hosting 46 eventsper year and drawing approximately 450,000 newvisitors. The report also estimates that the stadium wouldcreate an additional around 5,900 permanent jobsthroughout the region.



Page 7


LAS VEGAS EMPLOYMENT BY INDUSTRY IN THOUSANDS

NAICS Industry Jobs LQ MarketUS USMarketUSMarket

Current Jobs Current Growth 10 Yr Historical 5 Yr Forecast

-0.25%0.17%1.13%2.53%0.90%3.33%0.326Manufacturing

0.32%1.80%1.30%1.98%0.58%-0.45%0.9179Trade, Transportation and Utilities

0.24%1.91%0.94%1.50%-0.19%-2.26%1.0106 Retail Trade

0.31%1.94%1.17%3.24%1.20%5.34%1.057Financial Activities

0.66%1.50%0.05%0.67%0.62%0.47%0.7102Government

0.26%1.30%2.70%2.21%2.27%5.81%1.270Natural Resources, Mining and Construction

0.63%1.43%2.14%4.42%2.43%1.71%0.6105Education and Health Services

0.88%1.69%2.73%4.37%2.00%1.78%1.0152Professional and Business Services

0.47%1.13%0.29%1.74%0.27%-1.42%0.611Information

0.60%0.57%2.62%1.85%1.97%1.35%2.6301Leisure and Hospitality

0.22%0.89%1.13%3.76%1.59%2.56%0.834Other Services

Total Employment 1,038 1.0 1.61% 1.42% 2.49% 1.58% 1.26% 0.48%

Source: Oxford Economics

LQ = Location Quotient


YEAR OVER YEAR JOB GROWTH



Page 8


DEMOGRAPHIC TRENDS

Current ChangeCurrent Level

Metro U.S.Metro U.S.Demographic Category

10-Year Change

Metro U.S. Metro U.S.

Forecast Change (5 Yrs)

Population 330,001,3132,280,663 1.7% 0.7% 1.6% 0.7% 1.8% 0.7%

Households 121,466,234814,241 1.6% 0.5% 1.7% 0.6% 1.7% 0.6%

Median Household Income $65,646$62,454 4.3% 4.0% 1.5% 2.7% 4.0% 4.2%

Labor Force 163,864,0311,120,478 0.7% 0.6% 1.5% 0.6% 1.3% 0.5%

Unemployment 3.7%4.1% -0.5% -0.1% -0.9% -0.6% - -


POPULATION GROWTH


LABOR FORCE GROWTH INCOME GROWTH



Page 9

3850 Leon Ave

PREPARED BY

Casey Whiting

Broker

Peer Properties


Peer Properties Summary3850 Leon Ave

Total Peers

4Peers w/Availability

1Asking Rent

$1.15Vacancy Rate

23.2%Bldgs with Vacancy

1PEER LOCATIONS

PEER SUMMARY STATISTICS

Property Attributes Low Average Median High

Building SF 1,753 3,021 2,751 4,830

Year Built 1943 1961 1956 1985

Ceiling Height

Docks 0 0 0 0

Typical Floor SF 1,753 2,418 2,702 2,800

Vacancy Rate 0% 23.2% 0% 100%

Availability Rate 100% 23.2% 100% 100%

Star Rating 1.5

Available Space Attributes Low Average Median High

Space SF 2,800 2,800 2,800 2,800

Asking Rent Per SF $1.15 $1.15 $1.15 $1.15

Months On Market 5.2 5.2 5.2 5.2



Page 11

Total Spaces Available 1.0 1.0 1.0 1.0

Max Contiguous Available 2,702 2,751 2,751 2,800

% Sublet - - - -



Page 12

Peer Properties Summary3850 Leon Ave

Property Name / Address Rating Yr. Built RBA Ceiling Ht Avail SF Avail %

Property

Spaces

Availability & Vacancy

Vac% Asking Rent/SFDocks

1973-3850 Leon Ave

2,722 - - 0%- 0% --

PEERS WITH AVAILABILITY

1985-1 3645 W Twain Ave2,800 - 2,800 100%1 100% $1.15-

1 Sub-Totals 2,800 1 2,800

PEERS WITH NO AVAILABILITY

1956-2 4830 Serene Dr1,753 - - 0%- 0% --

1943-3 1571 S Commerce St2,702 - - 0%1 0% --

--4 2735 Simmons St4,830 - - 0%- 0% --

3 Peers with No Availability Sub-Totals 9,285 1



Page 13






Vacancy 0%

1,753 SF

Owner: Mercer Richard A & Christine S

Rent/SF -,

4830 Serene Dr2

Vacancy 0%

2,722 SF

Owner: -

Rent/SF -,

Subject Property

3850 Leon Ave

Vacancy 100%

2,800 SF

Owner: Thomas R Lee

Rent/SF $1.15,

3645 W Twain Ave1

Vacancy 0%

4,830 SF

Owner: John and Dianna McCormack

Rent/SF -,

2735 Simmons St4

Vacancy 0%

2,702 SF

Owner: Zak Sheen Management

Rent/SF -,

1571 S Commerce St3

Peer Property Photos3850 Leon Ave



Page 14











Property Name / Address Rating Asking Rent Per SF Vacancy Rate

3645 W Twain Ave1 $1.15 100%

3850 Leon Ave

Average

(Arrows indicate trend over last quarter)

$0.70 - 0.90(Est.) 0%

50.7%$1.15

Peer Property Comparison3850 Leon Ave



Page 15






Property Name / Address Rating Availability Rate Vacancy Rate

3645 W Twain Ave1 100% 100%

3850 Leon Ave

Average


0% 0%

50.7%50.7%



Page 16






Property Name / Address Rating Asking Rent Per SF Median Months on Market

3645 W Twain Ave1 $1.15 5

3850 Leon Ave

Average


$0.70 - 0.90(Est.)

5$1.15



Page 17






Property Name / Address Rating 12 Mo. Leasing Activity in SF 12 Mo. Net Absorption in SF

3850 Leon Ave0 0

3645 W Twain Ave

Average

1 0 (2,800)

(1,400)0



Page 18





Peer Property Detail With Availability3850 Leon Ave

3645 W Twain AveLas Vegas, NV 89103 - Distance to Subject Property: 7.6 Miles

1

COMPARISON

Vacancy %: 100% 0%

Available SF: 2,800 0

Asking Rent: $1.15/SF/Mo -

Months To Lease: - -

Time On Market: 5 mo -

THIS PROPERTY SUBJECT

AVAILABILITY

Spaces: 1

Square Feet: 2,800

Range: 2,800

Max Contig: 2,800

% Sublet: 0%

Asking Rent: $1.15/MG

PROPERTY

Type: Manufacturing Docks: None

Year Built/Renov: 1985 Drive Ins: -

RBA: 2,800 SF Truck Court: -

Tenancy: Multi

Power: -Ceiling Height: -

Land Acres: 0.34 AC

Construction: Masonry Taxes: $0.68 (2019)

Parking: 8 free Surface Spaces are available; Ratio of 2.86/1,000 SF

Features: Fenced Lot

Cranes: None

Rail Served: None



Page 19


Peer Property Detail Without Availability

1571 S Commerce StLas Vegas, NV 89102 - Distance to Subject Property: 6.4 Miles

2

PROPERTY

Type: Distribution Docks: None

Year Built/Renov: 1943 Drive Ins: -


Tenancy: Multi


Land Acres: 0.22 AC

Construction: Metal Taxes: $0.40 (2018)

Parking: 6 free Surface Spaces are available; Ratio of 2.34/1,000…

Features: -

Cranes: -

Rail Served: None

2735 Simmons StNorth Las Vegas, NV 89032 - Distance to Subject Property: 2.7 Miles

3

PROPERTY

Type: - Docks: -

Year Built/Renov: - Drive Ins: -


Tenancy: -


Land Acres: -

Construction: - Taxes: -

Parking: -

Features: -

Cranes: -

Rail Served: -

4830 Serene DrLas Vegas, NV 89130 - Distance to Subject Property: 1.7 Miles

4

PROPERTY

Type: Manufacturing Docks: None

Year Built/Renov: 1956 Drive Ins: 1 tot./12'w x 14'h


Tenancy: Single


Land Acres: 0.65 AC

Construction: Wood Frame Taxes: $0.77 (2019)

Parking: 8 free Surface Spaces are available; Ratio of 4.56/1,000…

Features: Fenced Lot

Cranes: None

Rail Served: None



Page 20






Page 21

3850 Leon Ave

PREPARED BY

Casey Whiting

Broker

Leasing Analytics


LAS VEGAS VACANCY OVERVIEW

Logistics properties make up over 70% of the industrialinventory in the Las Vegas metro. In the past, the LasVegas industrial market typically served local marketoperators, which limited tenant demand for large-scaleindustrial development. However, as city officials work toreinvent the area as a regional logistics hub and attractmore national tenants, logistics development isincreasing with a number of major speculative projectsand preleased buildings underway.

The vacancy rate recently rose slighlty with newdeliveries outpacing demand. Net absorption maintaineda healthy pace the past few years, keeping vacanciescompressing even in the face of a sizable increase inspeculative construction. Approximately 14.5 million SFhas delivered in Las Vegas since 2016, and millions

more SF of space are under construction. The amount ofnew development is likely to put upward pressure onvacancies as projects deliver, but sustained positivedemand should keep vacancies from rising too sharply.

The number of large tenants leasing space in Las Vegashas grown in recent years and includes quite a fewnational brands. Development recently got underway ona new 750,000-SF Google Data Center in Henderson.Sephora signed a lease for a new 755,000-SFdistribution building in the Tropical Distribution Center inthe Speedway Submarket that delivered in March 2019.Amazon is expanding its presence in the market, leasingan 855,000-SF distribution building also completed inMarch in the Tropical Distribution Center.

NORTH LAS VEGAS VACANCY OVERVIEW

The Las Vegas metro is well positioned for companieslooking for space within a day’s drive of many westernmetros. The growth of e-commerce and the resultingpush for ever-faster delivery times have been a boon tothe industrial market. This is particularly true in thelogistics sector, which is comprised primarily ofwarehouse and distribution properties. North Las Vegasis the largest submarket in the metro in terms ofindustrial space, and it also has the largest stock ofwarehouse and distribution inventory. Nearly 85% of theapproximately 44 million SF of industrial space in NorthLas Vegas is logistics inventory.

The importance of distribution and warehouse propertieshas contributed to strong demand from retailers andthird-party logistics companies. Over the past severalyears Amazon, The Honest Company, Bed Bath &Beyond, UPS, and DHL have all leased warehouse ordistribution space in North Las Vegas. In May 2019,

Amazon signed another lease in North Las Vegas, thistime for 124,550 SF in Prologis Sunrise Industrial Park.Amazon previously leased 813,00 SF of space, alongwith The Honest Company (570,000 SF), in buildings inNorthgate Distribution Center that were completed in17Q3. In late 2018, three companies signed leases forspace in a 376,000-SF building in Prologis' I-15Speedway Logistics Center, which delivered in Aprilcompletely preleased.

Developers are extremely bullish on the area, with over 1million SF of supply already delivered in 2019 andanother roughly 1 million SF under construction, all of itlogistics space. Persistent demand has allowed strongrent growth to continue, even in the midst of the supplywave. The influx of new supply has put pressure onvacancy rates, with several recent speculative deliveriespushing vacancies up to around 7.1%, and just aroundtheir historical average of around 7.8%.

Vacancy Analytics3850 Leon Ave



Page 23


VACANCY RATE

VACANCY RATE

Vacancy Trend (YOY) VacancyTrend (YOY) Trend (YOY)VacancyTrend (YOY)Vacancy

Subject Peers North Las Vegas Las Vegas

-1.9%10.3%-2.5%8.3%-0.8%4.1%0%25.7%2013

-2.2%8.2%-1.1%7.2%0%4.1%-3.7%22.0%2014

-2.2%6.0%-3.1%4.2%-4.1%0%-3.7%18.4%2015

0%6.0%1.5%5.7%5%5.0%0%18.4%2016

-0.6%5.5%0.6%6.3%0.8%5.8%0%18.4%2017

-1.5%4.0%-0.9%5.4%-5.8%0%0%18.4%2018

1%5.0%1.7%7.1%23.2%23.2%-18.4%0%YTD

1.1%5.1%0.2%5.6%23.2%23.2%2020

0.9%6.1%0.9%6.5%0%23.2%2021 Forecast >

1%7.0%0.8%7.3%0.1%23.3%2022

0.5%7.5%1.4%8.7%0%23.3%2023



Page 24


AVAILABILITY RATE

AVAILABILITY RATE

Availability Trend (YOY) AvailabilityTrend (YOY) Trend (YOY)AvailabilityTrend (YOY)Availability


-3.2%11.6%-3.1%9.9%-1.7%5.0%-7.3%22.0%2013

-3%8.7%-1.9%8.0%-0.8%4.1%3.7%25.7%2014

-0.3%8.4%-1.6%6.4%0%4.1%-7.3%18.4%2015

-0.1%8.3%3%9.4%3.3%7.4%0%18.4%2016

-2.1%6.2%-3.3%6.1%-0.8%6.6%0%18.4%2017

-0.8%5.4%0.4%6.4%-6.6%0%0%18.4%2018

----23.2%23.2%-18.4%0%2019 YTD



Page 25


MEDIAN MONTHS ON MARKET

MEDIAN MONTHS ON MARKET

Peers North Las Vegas Las Vegas

2009 - 6.6 6.5

2010 - 10.5 10.8

2011 2.0 15.4 14.1

2012 - 18.4 16.6

2013 - 14.8 18.3

2014 - 13.8 16.3

2015 - 10.5 13.2

2016 - 6.7 8.6

2017 - 4.8 6.3

2018 - 4.3 4.0

2019 - 3.6 4.2



Page 26


RENEWAL RATES

RENEWAL RATES

North Las Vegas & Adjacent Las Vegas

2009 63.3% 50.2%

2010 56.3% 58.4%

2011 71.2% 68.8%

2012 78.5% 70.4%

2013 84.7% 75.8%

2014 88.4% 80.6%

2015 82.8% 75.2%

2016 77.5% 73.7%

2017 69.2% 70.0%

2018 74.4% 75.0%

2019 65.2% 65.2%



Page 27

Rent Analytics3850 Leon Ave

LAS VEGAS RENT TRENDS

Industrial rents in Las Vegas are finally recovered fromthe steep decline they took during the recession. Thedownturn inflicted substantial rent losses, pushing themdown more than 30% from their previous peak. Averageasking rents are nearly $9.20/SF, on par with theirprerecession peak, following sustained positive rentgrowth this cycle.

Las Vegas industrial year-over-year rent growth is risingin 2019, counter to the National Index, which has seenyear-over-year gains decline each quarter so far. LasVegas is experiencing a later recovery than mostindustrial markets, and rents only started to rise again in2013 following five consecutive years of rent losses.Rent growth really picked up in starting in 2014 andaveraged nearly 7% annually from 2014 to 2018. LasVegas' year-over-year rent growth increased to around8.5%, up from around 7.1% four quarters ago.

Logistics properties have the lowest average asking rentsof the industrial property types in Las Vegas; however,that segment is seeing the highest year-over-year rentgains of about 10%. Despite average annual rent growthof nearly 8% from 2014 to 2018, average asking rents forlogistics properties are around 7% lower than the marketaverage. Though the lowest, the strong rent growth this

cycle has boosted asking rents to about 4% above theirprerecession peak, while asking rents for specializedindustrial and flex properties have still not fullyrecovered.

North Las Vegas, the metro’s largest submarket in termsof inventory and the target of the majority of this cycle’snew development, is still seeing some of the highest rentgains in the market at around 9.5%. Nearly all the newconstruction in North Las Vegas this cycle has beenlogistics properties, as well as the majority of newdevelopment in the metro as a whole. Logistics continuesto see robust rent gains, even with the strong level ofnew development, well above those for flex andspecialized industrial properties.

The Northwest Submarket, though one of the smallestsubmarkets by inventory, has one of the highest averageasking rents in the metro at around $12.60/SF. This isdue to the relatively high proportion of flex inventory inthe submarket compared to logistics and specializedindustrial. While flex has seen more moderate rentgrowth the past several years, average asking rents forflex are close to 30% above the metro and over 35%more than logistics average asking rents.

NORTH LAS VEGAS RENT TRENDS

The North Las Vegas submarket has some of thestrongest rent growth in the metro at around 9.1% year-over-year. Gains are the most pronounced in logisticsassets, with annual gains from 2014–18 averagingaround 7.75%. Annual rent growth in the submarketaveraged approximately 7% from 2014–18, but despitethese strong gains, rents in North Las Vegas are amongthe lowest in the metro at only $7.40/SF, around 6%short of their prerecession peak.

North Las Vegas is one of the few submarkets in themetro with average rents under $9/SF. Much of this isdue to the high proportion of logistics properties in thesubmarket, which have lower rents compared to flex andspecialized industrial assets. Flex properties, whichcomprise approximately 5% of the inventory in thesubmarket, have average asking rents of around$9.21/SF, while specialized industrial properties areabout $9.61/SF. In contrast, average rents in logisticsproperties stood at about $6.85/SF in 19Q2.



Page 28

Rent Analytics3850 Leon Ave

ASKING RENT PER SQUARE FOOT

ASKING RENT PER SQUARE FOOT

Direct Rent Trend (YOY) Market RentTrend (YOY) Trend (YOY)Market RentTrend (YOY)Market Rent


1.1%$0.511%$0.400.7%$0.56--2013

5.3%$0.536.1%$0.423.8%$0.58--2014

7.6%$0.578.7%$0.467.5%$0.62--2015

7.9%$0.628.5%$0.507%$0.67--2016

6.4%$0.666.5%$0.533.8%$0.69--2017

7.1%$0.707.3%$0.573.8%$0.72--2018

8.3%$0.768.8%$0.625.5%$0.76--YTD

17%$0.829.1%$0.6211.9%$0.802020

4.5%$0.867.6%$0.672.6%$0.822021 Forecast >

2%$0.884.2%$0.700.3%$0.832022

0.2%$0.881.7%$0.71-1.4%$0.812023



Page 29

Absorption Analytics3850 Leon Ave

NET ABSORPTION IN PEERS IN SQUARE FEET

NET ABSORPTION IN NORTH LAS VEGAS SUBMARKET IN SQUARE FEET

NET ABSORPTION IN LAS VEGAS IN SQUARE FEET



Page 30

Leasing Analytics3850 Leon Ave

LEASING ACTIVITY IN PEERS IN SQUARE FEET

LEASING ACTIVITY IN NORTH LAS VEGAS SUBMARKET IN SQUARE FEET

LEASING ACTIVITY IN LAS VEGAS IN SQUARE FEET



Page 31

Leasing Analytics3850 Leon Ave

SUBLEASE SPACE AVAILABLE IN LAS VEGAS IN SQUARE FEET



Page 32

3850 Leon Ave

PREPARED BY

Casey Whiting

Broker

Lease Comps


Lease Comps Summary3850 Leon Ave

4 $0.91 $0.77 4Deals Asking Rent Per SF Starting Rent Per SF Avg. Months On Market

LEASE COMPARABLES

SUMMARY STATISTICS

Rent Deals Low Average Median High

Asking Rent Per SF

Starting Rent Per SF

Effective Rent Per SF

Asking Rent Discount

TI Allowance

Months Free Rent

4

2

-

2

-

-

$0.68

$0.08

-

3.8%

-

-

$0.91

$0.77

-

32.2%

-

-

$0.93

$0.67

-

47.3%

-

-

90.7%

-

-

$1.30

$1.25

-

Lease Attributes Deals Low Average Median High

Months on Market

Deal Size

Lease Deal in Months

Floor Number

4

4

1

4

1

1,400

24.0

1

4

2,552

24.0

1

2

2,400

24.0

1 1

9

4,008

24.0



Page 34

Lease Comps Summary3850 Leon Ave

Property Name - Address Rating SF Leased Floor Sign Date Rent Rent Type

Lease

Type

Rents

-1 3111 S Valley View Blvd1,400 1st 12/16/2019 $0.08/nnn StartingNew

-2 3866 Civic Center Dr4,008 1st 5/22/2019 $0.68/nnn AskingNew

-3 Bldg-A2,800 1st 7/28/2018 $1.00/mg Asking

3435 W Lake Mead BlvdNew

-4 1964 Sycamore Trl2,000 1st 7/19/2017 $1.25/nnn StartingNew



Page 35

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Lease Comps Details3850 Leon Ave

1 3111 S Valley View BlvdLas Vegas, NV 89102 - West Las Vegas Ind Submarket

RENTS

Asking Rent: $0.90/NNN

Starting Rent: $0.08/NNN

CONCESSIONS AND BUILDOUT

Asking Discount: 90.74%

PROPERTY EXPENSES

Taxes: $0.49/SF (2019)

LEASE

SF Leased: 1,400 SF

Sign Date: Dec 2019

Space Use: Industrial

Lease Type: Direct

Floor: 1st Floor

Suite: A-104

LEASE TERM

Start Date: Dec 2019

TIME VACANT

Date Vacated: Nov 2019

Date Occupied: Dec 2019

Months Vacant: 1 Month

TIME ON MARKET

Date On Market: Oct 2019

Date Off Market: Dec 2019

Months on Market: 2 Months

LEASING REP

Harsch Investment Properties

3111 S Valley View Blvd, Suite K-101

Las Vegas, NV 89102-8317

Morgan Sellers (702) 362-1400

PROPERTY

Rentable Area: 2,375 SF

Stories: 1

Floor Size: 2,375 SF

Ceiling Height: 16'

Vacancy at Lease: 58.9%

Land Acres: 0.12

Property Type: Industrial

Status: Built 1979

Tenancy: Single

Class: C

Construction: Reinforced Concrete

Parking: 6 free Surface Spac…

MARKET AT LEASE

Vacancy Rates 2019 Q4 YOY

-1.8%

0.9%

58.9%Current Building 58.9%

Submarket 1-2 Star

Market Overall 5.0%

2.8%

Same Store Asking Rent/SF 2019 Q4 YOY

7.9%

8.5%

Current Building $0.93

Submarket 1-2 Star

Market Overall $0.76

$0.89

-

Submarket Leasing Activity 2019 Q4 YOY

4.9

45.1%12 Mo. Leased SF 648,567

Months On Market 3.6



Page 36



2 3866 Civic Center DrNorth Las Vegas, NV 89030 - North Las Vegas Ind Submarket

RENTS


PROPERTY EXPENSES

Taxes: $0.50/SF (2019)

LEASE

SF Leased: 4,008 SF

Sign Date: May 2019


Lease Type: Direct

Floor: 1st Floor

LEASE TERM

Start Date: Jun 2019

TIME VACANT

Date Vacated: Aug 2018

Date Occupied: Jun 2019

Months Vacant: 10 Months

TIME ON MARKET

Date On Market: Aug 2018

Date Off Market: May 2019


LEASING REP

Colliers International

3960 Howard Hughes Pky, Suite 150

Las Vegas, NV 89169

Chris Lane, CCIM (702) 836-3728

Jerry Doty (702) 836-3735

PROPERTY


Stories: 1


Ceiling Height: 18'


Land Acres: 0.10


Status: Built 2007

Tenancy: Single

Class: C

Construction: Reinforced Concrete

Parking: 10 free Surface Spa…

MARKET AT LEASE


0.5%

0.6%


Submarket 1-2 Star

Market Overall 4.0%

3.7%


9.0%

9.2%


Submarket 1-2 Star


$0.78

-


0.2

44.1%12 Mo. Leased SF 3,335,770




Page 37



3 3435 W Lake Mead Blvd - Bldg-ANorth Las Vegas, NV 89032 - North Las Vegas Ind Submarket

RENTS

Asking Rent: $0.90-$1.00/MG

PROPERTY EXPENSES

Taxes: $0.76/SF (2019)

LEASE

SF Leased: 2,800 SF

Sign Date: Jul 2018


Lease Type: Direct

Floor: 1st Floor

Suite: 100

LEASE TERM

Start Date: Aug 2018

TIME VACANT

Date Vacated: Jun 2018

Date Occupied: Aug 2018


TIME ON MARKET

Date On Market: May 2018

Date Off Market: Jul 2018


LEASING REP

Charles D. Lynn Real Estate

2117 Alta Dr

Las Vegas, NV 89106-4808

Lisa Locati (702) 460-7001

PROPERTY


Stories: 1


Ceiling Height: 18'


Land Acres: 0.14


Status: Built May 2007

Tenancy: Multi

Class: B

Construction: Masonry

Parking: 6 Surface Spaces ar…

MARKET AT LEASE


1.6%

2.1%


Submarket 1-2 Star

Market Overall 4.5%

3.1%


6.4%

6.5%


Submarket 1-2 Star


$0.72

-


0.3

66.2%12 Mo. Leased SF 5,717,444




Page 38



4 1964 Sycamore TrlLas Vegas, NV 89108 - Northwest Las Vegas Ind Submarket

RENTS


Starting Rent: $1.25/NNN

CONCESSIONS AND BUILDOUT

Asking Discount: 3.85%

PROPERTY EXPENSES

Taxes: $0.72/SF (2019)

LEASE

SF Leased: 2,000 SF

Sign Date: Jul 2017


Lease Type: Direct

Floor: 1st Floor

Suite: 1-2

LEASE TERM

Start Date: Aug 2017

Lease Term: 2 Years

TIME VACANT

Date Vacated: Jan 2017

Date Occupied: Aug 2017


TIME ON MARKET

Date On Market: Jun 2017

Date Off Market: Jul 2017


LEASING REP

Lee John Jay & Marilyn R

1340 Borderwood Ln

North Las Vegas, NV 89031-1816

Marilyn Lee (702) 258-5447

PROPERTY


Stories: 1



Land Acres: 0.63


Status: Built 1999

Tenancy: Multi

Class: B

Construction: Steel

Parking: 8 free Surface Spac…

MARKET AT LEASE


5.5%

0.3%


Submarket 2-4 Star

Market Overall 6.6%

4.4%


5.3%

6.9%


Submarket 2-4 Star


$0.91

-


16.6

261.5%12 Mo. Leased SF 110,014




Page 39


3850 Leon Ave

PREPARED BY

Casey Whiting

Broker

Construction


102,164 343,624 814,780 660,329All-Time Annual Avg. SF Delivered SF Past 8 Qtrs Delivered SF Next 8 Qtrs Proposed SF Next 8 Qtrs

PAST 8 QUARTERS DELIVERIES, UNDER CONSTRUCTION, & PROPOSED

PAST & FUTURE DELIVERIES IN SQUARE FEET

Overall Construction Summary3850 Leon Ave



Page 41

Las Vegas ConstructionLas Vegas Industrial

Construction levels remain elevated, a sign thatdevelopers may be bullish on the Las Vegas marketbecause of the solid absorption of the past four years.Around 5.9 million SF of space is underway; followingthe more than 5 million SF of new supply has alreadydelivered in 2019. This is on top of the over 4 million SFof new supply delivered in 2018 and above the metro’sannual historical average of approximately 3 million SF.

Just over half of new construction continues to be forlogistics properties, which has made up the bulk ofdevelopment this cycle. Much of the new development isfor speculative properties, with approximately 20% of thespace preleased. The amount of specialized industrialspace in development is rising and one of the sizableproperties underway is the build-to-suit that broke

ground this summer in SE Las Vegas/HendersonSubmarket: the 750,000-SF Google Data Center.

North Las Vegas and Speedway continue to be the topsubmarkets for new development, with several sizablebuildings starting construction or delivering recently.Developer VanTrust Real Estate recently completed twosizable buildings: an 855,000-SF distribution building forAmazon and a 715,000-SF building for Sephora, both inthe Speedway Submarket. In the North Las VegasSubmarket, SunCap Property Group completed threewarehouse buildings, at 290,000-SF, 255,000-SF, and208,000-SF, in the SunPoint Crossing development inJune. One of the largest projects underway is the652,000-SF Golden Triangle Logistics Center in NorthLas Vegas.

DELIVERIES & DEMOLITIONS



Page 42

North Las Vegas ConstructionNorth Las Vegas Industrial

New development continues to be strong in North LasVegas, with more than 1.3 million SF delivered in the firsthalf of 2019. More than 9.8 million SF of new supplydelivered here since 2015, with over 50% of thatcompleted in 2017 alone, including several large build-to-suit and preleased properties, which kept vacanciesfrom rising sharply. All of that new inventory waswarehouse or distribution space. In fact, the submarkethas not seen the delivery of a flex or specializedindustrial property since 2013 and is unlikely to in thenear term, with all current development being logistics.

The square footage under construction remains elevatedat approximately 2.9 million SF, with several sizablebuildings underway. Development recently began onthree buildings in the Golden Triangle Logistics Center:675,360 SF, 652,010 SF, and 350,530 SF. Theproperties are all available for lease with anticipated

delivery over the next couple of years.

Several industrial parks have seen the completion of anumber of properties recently. Building 3, a 632,000-SFspeculative distribution building, in Prologis’ I-15Speedway Logistics industrial park recently delivered andis available for lease. Huntington Industrial Partners alsohas three speculative distribution buildings, at 169,800SF, 93,700 SF, and 80,000 SF, that recently delivered inits West Craig Distribution Center. While two of thebuildings remain available for lease, in March, TiresWarehouse leased the 93,700-SF building.

SunCap Property Group delivered three buildings in itsSunpoint Crossing development in the first half of thisyear. The 290,000-SF, 254,500-SF, and 207,700-SFspeculative buildings are all currently available for lease.

DELIVERIES & DEMOLITIONS



Page 43


1,311,736 5,623,747 2,854,898 1,740,677All-Time Annual Avg. SF Delivered SF Past 8 Qtrs Delivered SF Next 8 Qtrs Proposed SF Next 8 Qtrs

PAST 8 QUARTERS DELIVERIES, UNDER CONSTRUCTION, & PROPOSED

PAST & FUTURE DELIVERIES IN SQUARE FEET



Page 44


RECENT DELIVERIES

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Nov-201878 W Craig Rd

Bldg 393,718 1 Oct-2019

Huntington Industrial Partners

Huntington Industrial Partners1

Jul-20185265 N Sloan Ln

Bldg 3632,324 1 Sep-2019

Prologis

Prologis, Inc.2

Jul-20183450 N Lamb Blvd

207,689 1 Sep-2019SunCap Property Group

SunCap Property Group3








Bldg 180,278 1 Aug-2019




Bldg 2169,628 1 Aug-2019



Sep-20183475 N Las Vegas Blvd

109,200 1 Jun-2019Dermody Properties

Dermody Properties, Inc.8

Jun-20184456 E Craig Rd

Copper Sage Commerce…39,180 1 May-2019

TWC Construction

-9

Jul-20185245 N Sloan Ln

Bldg 4376,264 1 Apr-2019

Prologis

Prologis, Inc.10

May-20184635 Industry Center Dr

55,557 1 Apr-2019

-

Ann McDonough11

May-20184643 Industry Center Dr

45,557 1 Apr-2019

-

Ann McDonough12

Nov-20174603 Industry Center Dr

15,557 1 Apr-2019

-

Ann McDonough13

Jul-20185045 Geist Ave

63,624 2 Apr-2019Bentar Development, Inc.

Alexander Huang14

Dec-20184611-4619 Industry Center…

2/310,477 - Apr-2019

-

Anderson Property Holdings LLC15

Jan-20183915 E Craig Rd

Craig @ Walnut - Buildin…32,535 1 Jan-2019

LaPour Partners

Three Square16

Aug-20184629 Industry Center Dr

45,557 1 Jan-2019

-

Ann McDonough17

Jan-2018E Craig Rd

Craig @ Walnut - Buildin…39,395 1 Jul-2018

LaPour Partners

-18

Dec-20174640 Nexus Way

National Indoor RV Cent…215,804 1 Jul-2018

VanTrust Real Estate LLC

The Blackstone Group L.P.19

Dec-20174305 N Lamb Blvd

Lamb Industrial Park122,507 1 Jun-2018

Viawest Group

ViaWest Group20



Page 45






















UNDER CONSTRUCTION


Oct-20193325 E Washburn Rd

Bldg 3675,360 1 Jun-2020

-

Earth Day Texas, Inc1


Bldg 2652,010 1 Apr-2020

-

Golden Triangle Development Inc2

Aug-20194004 W Cheyenne Ave

E478,000 1 Jul-2020

-

Matter Durango LLC3


Bldg 1350,528 1 Apr-2020

-

Earth Day Texas, Inc4

Oct-2019Las Vegas Blvd & Mario…

282,220 1 Aug-2020-

Becknell, LLC5

Aug-2019W Cheyenne Ave. & Sim…

86,920 1 Apr-2020-

Odyssey Real Estate Capital6


D73,000 1 Jul-2020

-

Matter Durango LLC7

Oct-20195000 Losee Rd

72,000 1 Mar-2020Tiberti Management Company

J. A. Tiberti Constr. Co.8


B67,330 1 Jul-2020

-

Matter Durango LLC9


C58,730 1 Jul-2020

-

Burke Construction Group, Inc10


A50,800 1 Jul-2020

-

Matter Durango LLC11

Oct-20193080 Devry Ln

Building 18,000 1 Jan-2021

-

Steven C Palacios12

PROPOSED


Jan-20205345 E Centennial Pky

509,716 1 May-2020-

-1

Feb-2020N 5th Ave & Craig

Building One368,765 1 Feb-2021

-

-2


Building Two291,564 1 Feb-2021

-

-3

Jun-20204350 N Nellis Blvd

206,297 1 Oct-2020-

Jung Hee Lee4


Building Three174,615 1 Feb-2021

-

-5

Jan-20205445 E Centennial Pky

173,720 1 May-2020-

-6

Mar-20203080 Devry Ln

Building 28,000 1 Jun-2020

-

Steven C Palacios7

Mar-20203080 Devry Ln

Building 38,000 1 Jun-2020

-

Steven C Palacios8



Page 46





















UNDER CONSTRUCTION IN SQUARE FEET (5 Mile Radius)

PROJECTED DELIVERIES IN SQUARE FEET (5 Mile Radius)

Construction Activity3850 Leon Ave



Page 47


DELIVERIES IN SQUARE FEET (5 Mile Radius)

STARTS IN SQUARE FEET (5 Mile Radius)



Page 48


PERCENT OCCUPIED AT DELIVERY (5 Mile Radius)

DELIVERIES AND OCCUPANCY IN SQUARE FEET (5 Mile Radius)



Page 49


NEW CONSTRUCTION OCCUPANCY AFTER DELIVERY BY YEAR BUILT (5 Mile Radius)

NET ABSORPTION IN SQUARE FEET (5 Mile Radius)



Page 50


ASKING RENT PER SQUARE FOOT (5 Mile Radius)



Page 51

6 814,780 12.0% 4.8%Properties Square Feet Percent of Inventory Preleased

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION SUMMARY STATISTICS

Low Average Median High

Building SF 50,800 135,797 70,165 478,000

Ceiling Height 24' 24' 24' 24'

Docks 0 1 0 5

Preleasing 0% 4.8% 0.6% 42.4%

Estimated Delivery Date April 2020 June 2020 July 2020 July 2020

Months to Delivery 4 6 7 7

Construction Period in Months 8 10 11 11

Star Rating 3.3

Under Construction Summary3850 Leon Ave



Page 52

Under Construction Summary3850 Leon Ave

COMPLETIONS 3-6 MONTHS AWAY

Property Name/Address Rating Bldg SF Ceiling Ht Start Complete Developer/Owner

Aug-2019W Cheyenne Ave. & Sim…

86,920 24' Apr-2020-

Odyssey Real Estate Capital1

COMPLETIONS MORE THAN 6 MONTHS AWAY

Property Name/Address Rating Bldg SF Ceiling Ht Start Complete Developer/Owner


E478,000 - Jul-2020

-

Matter Durango LLC2


D73,000 - Jul-2020

-

Matter Durango LLC3


B67,330 - Jul-2020

-

Matter Durango LLC4


C58,730 - Jul-2020

-

Burke Construction Group, Inc5


A50,800 - Jul-2020

-

Matter Durango LLC6



Page 53







Under Construction Property Details3850 Leon Ave

1 W Cheyenne Ave. & Simmons StDistance to Subject Property: 2.5 Miles

AVAILABILITY

Percent Leased: 42.4%

Available SF: 50,098

Asking Rent: -

PROPERTY

Type: Class B Industrial

Year Built: Delivers Apr 2020

RBA: 86,920 SF

Ceiling Height: 24'

Docks: 5 ext

Power: 277a/480v 3p

Cranes: -

Rail Served: -

Parking Spaces: -

CONSTRUCTION

Start Date: Aug-2019

Completion Date: Apr-2020

Build Time: 8 Months

Time To Delivery: 4 Months

CONTACTS

Developer: -

Owner: Odyssey Real Estate Ca…

2 4004 W Cheyenne Ave - EDistance to Subject Property: 1.7 Miles

AVAILABILITY

Percent Leased: 0%


Asking Rent: -

PROPERTY


Year Built: Delivers Jul 2020

RBA: 478,000 SF

Ceiling Height: -

Docks: None

Power: -

Cranes: -

Rail Served: -

Parking Spaces: -

CONSTRUCTION


Completion Date: Jul-2020



CONTACTS

Developer: -

Owner: Matter Durango LLC



Page 54




3 3774 W Cheyenne Ave - DDistance to Subject Property: 1.7 Miles

AVAILABILITY



Asking Rent: -

PROPERTY



RBA: 73,000 SF

Ceiling Height: -

Docks: None

Power: -

Cranes: -

Rail Served: -

Parking Spaces: -

CONSTRUCTION





CONTACTS

Developer: -


4 4204 W Cheyenne Ave - BDistance to Subject Property: 1.6 Miles

AVAILABILITY



Asking Rent: -

PROPERTY



RBA: 67,330 SF

Ceiling Height: -

Docks: -

Power: -

Cranes: -

Rail Served: -

Parking Spaces: -

CONSTRUCTION





CONTACTS

Developer: -




Page 55




5 3778 W Cheyenne Ave - CDistance to Subject Property: 1.7 Miles

AVAILABILITY

Percent Leased: 0%


Asking Rent: -

PROPERTY



RBA: 58,730 SF

Ceiling Height: -

Docks: None

Power: -

Cranes: -

Rail Served: -

Parking Spaces: -

CONSTRUCTION





CONTACTS

Developer: -

Owner: Burke Construction Gro…

6 4208 W Cheyenne Ave - ADistance to Subject Property: 1.6 Miles

AVAILABILITY

Percent Leased: 0%


Asking Rent: -

PROPERTY



RBA: 50,800 SF

Ceiling Height: -

Docks: -

Power: -

Cranes: -

Rail Served: -

Parking Spaces: -

CONSTRUCTION





CONTACTS

Developer: -




Page 56



3 343,624 27.8% -Properties Square Feet Percent Leased Asking Rent

COMPLETED CONSTRUCTION PAST 12 MONTHS

CONSTRUCTION SUMMARY STATISTICS

Low Average Median High

RBA 80,278 114,541 93,718 169,628

Ceiling Height 30' 30'8" 30' 32'

Docks 21 29 28 38

Leases Signed 0 0 0 1

Percent Leased 0% 27.8% 2.2% 100%

Asking Rent - - - -

Star Rating 4.0

Completed Construction Past 12 Months3850 Leon Ave



Page 57

Completed Construction Past 12 Months3850 Leon Ave

Property Name/Address Rating RBA Ceiling Ht Complete Leased Developer/Owner

Oct-201978 W Craig Rd

Bldg 393,718 30' 100%



Aug-201970 W Craig Rd

Bldg 180,278 30' 2.2%



Aug-201974 W Craig Rd

Bldg 2169,628 32' 0%





Page 58




Deliveries Past 12 Months3850 Leon Ave

1 78 W Craig Rd - Bldg 3North Las Vegas, NV 89032 - North Las Vegas Ind Submarket

AVAILABILITY

Percent Leased: 100%

Available SF: -

Asking Rent: -

PROPERTY

Type: Industrial Distributi…

Yr Blt/Renov: 2019

Property Size: 93,718 SF

Ceiling Height: 30'

Docks: 21 ext

Power: 2,000a/277-480v 3p…

Parking Spaces: 92: 0.98/1,000 SF

Distance To Subj… 4.6 Miles

CONSTRUCTION

Start Date: Nov-2018

Completion Date: Oct-2019


Time Since Delivery: 2 Months

DEVELOPER

Huntington Industrial PartnersOWNER


-

AVAILABLE SPACES

Currently No Available Spaces

-



Page 59




AVAILABILITY



Asking Rent: -

PROPERTY


Yr Blt/Renov: 2019


Ceiling Height: 30'

Docks: 28 ext

Power: 2,000a/277-480v 3p…



CONSTRUCTION


Completion Date: Aug-2019



DEVELOPER



-

AVAILABLE SPACES

Rent

Space Type

Floor Use

Square Feet

Type SF AvailOccupancySuite Listing CompanyBldg Contig

JLLWithheld78,51820,000 - 78,518DirectIndustrialE 1st - Vacant

All Spaces 78,518 78,518 -

-



Page 60




AVAILABILITY

Percent Leased: 0%


Asking Rent: -

PROPERTY


Yr Blt/Renov: 2019


Ceiling Height: 32'

Docks: 38 ext

Power: 2,000a/277-480v 3p…



CONSTRUCTION


Completion Date: Aug-2019



DEVELOPER



-

AVAILABLE SPACES

Rent

Space Type

Floor Use

Square Feet

Type SF AvailOccupancySuite Listing CompanyBldg Contig

JLLWithheld169,62820,000 - 169,628DirectIndustrialE 1st - Vacant

All Spaces 169,628 169,628 -

-



Page 61


3850 Leon Ave

PREPARED BY

Casey Whiting

Broker

Sale Comps


Investment Trends3850 Leon Ave

5 - $154 0%Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $150,000 $660,000 $700,000 $1,200,000

Price Per SF $79 $154 $154 $211

Cap Rate - - - -

Time Since Sale in Months 7.6 14.6 12.4 22.5

Property Attributes Low Average Median High

Building SF 1,623 4,282 4,750 6,907

Ceiling Height 16' 16' 16' 16'

Docks 0 0 0 0

Vacancy Rate At Sale 0% 0% 0% 0%

Year Built 1963 1979 1980 1993

Star Rating 1.2



Page 63


Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF

Property

Sale Date

Sale

Cap Rate

-1 Building 21987 6,232 0% $700,000 $112

600 W Sunset Rd5/1/2019 -

-2 3015 Westwood Dr1974 6,907 0% $1,200,000 $1741/9/2019 -

-3 3131-3155 Olive St1980 4,750 0% $1,000,000 $21112/6/2018 -

-4 4840 E Cartier Ave1993 1,900 0% $150,000 $795/11/2018 -

-5 400 W Owens Ave1963 1,623 0% $250,000 $1542/1/2018 -



Page 64

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LAS VEGAS INVESTMENT TRENDS

Investment volume through the first three quarters of thisyear was down slightly from last year, which was abanner year for sales so far this cycle. Sales volumetotaled just over of $1 billion in 2018, up from around$715 million in 2017 and significantly higher than themetro’s historical average of about $520 million. Logisticshas seen the highest share of deal volume, making upapproximately 75% of the total sales volume in the metroin 2018 and 2019. Along with sales volume, Las Vegas’average price per SF is rising, now approximately 20%higher than the nation’s. Cap rates have compressed byaround 150 basis points this cycle to around 5.5%.

Developers have been some of the top sellers in themarket recently, as they sell newly completed properties,many to REITs, private equity, and institutional investors,which have been some of the top buyers over the pastfew years.

Sales volume got a boost in 19Q3 from a sizableportfolio trade after a more moderate start to the year. InJuly, BKM Capital Partners acquired a 13-propertyportfolio from Northwestern Mutual Life Insurance

Company for $111.2 million ($125/SF). The propertiestotal 887,910 SF and are located in the Pacific BusinessCenter in Henderson. Also in July, a four-propertyportfolio in the Craig & Lamb Distribution Center wassold by EJM Development to Invesco for $65.5 million($101/SF). The distribution buildings, totaling 648,600SF, were constructed between 1995 and 2003 and werefully leased at the time of sale.

Another notable trade was the March purchase of the546,480-SF LogistiCenter at Las Vegas Boulevard byColony Capital for an allocated $54.3 million ($99/SF).The building was a part of a 56-property portfolioacquired from Dermody Properties, Inc. Earlier, inJanuary, Colony Capital acquired a two-propertyportfolio of Buildings A and B in the Northern BeltwayIndustrial Center for $38 million. Thomas & MackDevelopment Group sold the 181,000-SF Building A andthe 234,800-SF Building B for $16.7 million ($92/SF)and $21.2 million ($90/SF), respectively. Building A wasdelivered in 2008 and fully leased at the time of sale, andBuilding B was completed in 2007 and approximately86% leased.

SALES VOLUME & MARKET SALE PRICE PER SF

NORTH LAS VEGAS INVESTMENT TRENDS



Page 65


Investment in North Las Vegas is moderate so far in2019, following two years of strong sales volume.Investor interest in the submarket increased significantlyin recent years, with deal volume more than doubling in2017 from the prior year. Investment volume in 2018surpassed 2017, and at nearly $400 million wasapproximately double the submarket’s historical average.The average price per SF also increased by around 8%in 2018. Investors, like developers, have been focusingthe majority of their attention on logistics properties.Sales for logistics buildings accounted for more than90% of the submarket’s total deal volume in both 2017and 2018.

Newly constructed properties have seen a fair amount oftrade activity. A few local developers, including VanTrust

Real Estate, are among the top sellers in the submarketas they sell recently completed buildings. REITs areamong the top buyers in the submarket in recent years,including one of the sizeable transactions of 2019 so far,when Colony Capital purchased the 546,480 SFLogistiCenter at Las Vegas Boulevard in February for anallocated $55.5 million ($102/SF). The building,completed in 2017 and 100% leased at the time of sale,was a part of a 56 property portfolio acquired fromDermody Properties, Inc.

In July, a four-property portfolio in the Craig & LambDistribution Center was sold by EJM Development toInvesco for $65.5 million ($101/SF). The distributionbuildings, totaling 648,596 SF, were constructed between1995 and 2003 and were fully leased at the time of sale.

SALES VOLUME & MARKET SALE PRICE PER SF



Page 66

Sale Comps Details3850 Leon Ave

1 600 W Sunset Rd - Building 2Distance to Subject Property: 16.0 Miles

SALE

Sale Date: 5/1/2019

Sale Price: $700,000

Price/SF: $112

PROPERTY

Type: Warehouse

Year Built/Re… 1987

RBA: 6,232 SF

Ceiling Height: 16'

Docks: None

Vacancy At S… 0%

Cranes: None

Rail Served: None

Parking: 15 free Surface Spaces…

SALE TERMS

Financing: 1st Mortgage Bal/P…

CONTACTS

Buyer: Miller Trust

Seller: 520600 Sunset Plaza Llc

2 3015 Westwood DrDistance to Subject Property: 6.9 Miles

SALE

Sale Type: Owner User

Sale Date: 1/9/2019

Sale Price: $1,200,000

Price/SF: $174

PROPERTY

Type: Warehouse


RBA: 6,907 SF

Docks: None

Vacancy At S… 0%

Rail Served: None

Parking: 10 free Surface Spaces…SALE TERMS

Sale Conditio… Redevelopment Proj…

Financing: 1st Mortgage Bal/P…

CONTACTS

Buyer: JP CRE Investments LLC

Seller: Gene Newport

Listing Broker: Logic Commercial Real…



Page 67




3 3131-3155 Olive StDistance to Subject Property: 8.3 Miles

PROPERTY

Type: Warehouse


RBA: 4,750 SF

Docks: None

Vacancy At S… 0%

Rail Served: None

Parking: 12 free Surface Spaces…

SALE


Sale Date: 12/6/2018

Sale Price: $1,000,000

Price/SF: $211

CONTACTS

Buyer: Steven Edward Namero…

Seller: Laura Branscum

SALE TERMS

Financing: 1st Mortgage: First-…

TRANSACTION NOTES

On 12/6/2019 a 4,750 square foot industrial building was sold for $1,000,000 or $210.53 price per square foot. The APN 162-01-602-002. The in…

4 4840 E Cartier AveDistance to Subject Property: 8.7 Miles

PROPERTY

Type: Warehouse


RBA: 1,900 SF

Vacancy At S… 0%

Rail Served: None

Parking: 12 Surface Spaces are…

SALE

Sale Date: 5/11/2018


Price/SF: $79

CONTACTS

Buyer: B & D Rentals Llc Serie…

Seller: Halarad Ents

SALE TERMS




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5 400 W Owens AveDistance to Subject Property: 4.9 Miles

SALE


Sale Date: 2/1/2018

Time On Mar… 46 Days


Price/SF: $154

PROPERTY

Type: Distribution


RBA: 1,623 SF

Docks: None

Vacancy At S… 0%

Cranes: None

Rail Served: None

Parking: 16 free Surface Spaces…SALE TERMS


CONTACTS

Buyer: Jorge Cruz Diaz

Seller: LV Debt Collect, LLC

Buyer Broker: Tri-Star Realty LLC

Listing Broker: Sun Commercial Real E…



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Sales Volume3850 Leon Ave

NORTH LAS VEGAS IND SUBMARKET SALES VOLUME IN SQUARE FEET

NORTH LAS VEGAS SUBMARKET CLUSTER SALES VOLUME IN SQUARE FEET

LAS VEGAS METRO SALES VOLUME IN SQUARE FEET



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Sales Pricing3850 Leon Ave

NATIONAL PRICE INDICES

REGIONAL INDUSTRIAL PRICE INDICES



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Sales Pricing3850 Leon Ave

PRICE PER SF INDEX

UNITED STATES INDUSTRIAL PRICE PER SF IN PAST YEAR LAS VEGAS INDUSTRIAL PRICE PER SF IN PAST YEAR

PRICE PER SF SUMMARY OF SALES IN PAST YEAR

Geography HighTop 25%AverageMedianBottom 25%LowTransactions

$18,000United States 19,308 $0.01 $23 $74 $85 $293

$4,211Las Vegas 188 $24 $91 $145 $142 $373

$385North Las Vegas 54 $64 $93 $120 $137 $184

$174Selected Sale Comps 2 $112 N/A $143 $145 N/A



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Cap Rates3850 Leon Ave

CAP RATE TRENDS

UNITED STATES INDUSTRIAL CAP RATES IN PAST YEAR LAS VEGAS INDUSTRIAL CAP RATES IN PAST YEAR

CAP RATE SUMMARY OF SALES IN PAST YEAR

Geography HighTop 25%AverageMedianBottom 25%LowTransactions

24.4%United States 2,365 1.0% 4.7% 7.0% 7.2% 10.2%

8.8%Las Vegas 43 3.6% 3.9% 5.4% 5.4% 7.1%

8.8%North Las Vegas 6 5.7% 6.0% 6.6% 6.8% 7.9%

-Selected Sale Comps 0 - - - - -



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Buyers3850 Leon Ave

TOP LAS VEGAS INDUSTRIAL BUYERS PAST TWO YEARS

Purchased at least one asset in North Las Vegas Ind submarket

Properties Bought

Company Name Bldgs VolumeSF

Properties Sold

SF BldgsVolume

The Blackstone Group L.P. 15 4,225,534 $632,322,404 3 334,794 $13,000,000

Global Logistic Properties Ltd 7 3,271,633 $313,714,120 14 3,992,678 $632,322,404

Group 206 27 1,412,985 $174,735,981 1 17,912 $3,120,000

Colony Capital, Inc. 9 1,740,793 $167,954,021 0 0 -

Clarion Partners 6 1,201,033 $102,796,800 0 0 -

Black Creek Group 4 690,376 $84,466,646 0 0 -

Invesco Ltd. 4 648,596 $65,499,999 0 0 -

Landstar Management 6 526,359 $64,505,987 0 0 -

Rockefeller Group 6 346,485 $51,099,999 0 0 -

STAG Industrial, Inc. 3 202,894 $30,500,000 0 0 -

The Oakland Raiders 2 17,940 $29,625,484 0 0 -

EastGroup Properties, Inc. 3 195,947 $25,473,110 0 0 -

TIAA-CREF Investment Management, LLC 1 197,120 $25,100,000 0 0 -

Prologis, Inc. 2 640,877 $20,054,806 0 0 -

Wells Enterprises 1 193,700 $19,150,000 0 0 -

The RMR Group 1 95,899 $17,400,000 0 0 -

John McBeath 9 137,283 $16,927,000 3 39,038 $6,338,000

Airpark Capital LLC 2 161,227 $16,400,000 0 0 -

Christie Lites Enterprises US 1 155,790 $16,231,760 0 0 -

The Koll Company 3 104,322 $14,021,292 1 60,000 $5,400,000

Watumull Properties Corporation 3 71,872 $13,850,000 0 0 -

Scott Goldstein 1 143,910 $12,800,000 0 0 -

TheoPacific Corporation 1 86,244 $11,300,000 0 0 -

Alexander Huang 1 63,624 $10,450,000 0 0 -

PRG 1 109,420 $9,284,542 0 0 -

TYPES OF INDUSTRIAL LAS VEGAS BUYERS PAST TWO YEARS

Company Type Bldgs Millions Avg PricePrice/SF

Average Purchase

SF

Buying Volume

Private 216 4,938,703 $133 $3,042,520$657.2

Private Equity 16 4,264,198 $149 $39,768,943$636.3

REIT/Public 28 6,200,543 $94 $20,883,073$584.7

Institutional 54 3,855,987 $106 $7,580,035$409.3

User 27 806,743 $156 $4,689,796$126.6

$0 $170 $340 $510 $680



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Sellers3850 Leon Ave

TOP LAS VEGAS INDUSTRIAL SELLERS PAST TWO YEARS

Sold at least one asset in North Las Vegas Ind submarket

Properties Sold

Company Name Bldgs VolumeSF

Properties Bought

SF BldgsVolume

Global Logistic Properties Ltd 14 3,992,678 $632,322,404 7 3,271,633 $313,714,120

VanTrust Real Estate LLC 7 3,271,633 $313,714,120 0 0 -

Northwestern Mutual Life Insurance Company 13 887,910 $111,250,000 0 0 -

EJM Development 7 891,373 $98,203,999 0 0 -

Panattoni Development Company, Inc. 6 915,730 $96,867,760 0 0 -

Dermody Properties, Inc. 4 1,275,273 $76,559,021 0 0 -

Pauls Corporation 2 697,857 $67,036,800 0 0 -

Stockbridge Capital Group LLC 11 414,599 $56,516,647 0 0 -

Perot Systems Corporation 1 482,300 $51,050,000 0 0 -

CIP Real Estate Property Services 6 318,552 $40,385,980 0 0 -

Thomas & Mack Development Group 2 416,267 $38,000,000 0 0 -

Scannell Properties 1 338,520 $35,760,000 0 0 -

Frias Transportation Management 1 6,650 $28,000,000 0 0 -

Brass Cap Development LLC 3 195,947 $25,473,110 0 0 -

Juliet Property Company 1 197,120 $25,100,000 0 0 -

TVP Asset, Inc. 1 156,514 $20,200,000 0 0 -

Southern Nevada Operating Engineers 2 38,040 $20,054,806 0 0 -

Unilever United States, Inc. 1 193,700 $19,150,000 0 0 -

Eugene Monkarsh Family Trust U/D/T 3 103,708 $18,395,999 0 0 -

PNL Companies 1 122,472 $18,000,000 0 0 -

CIM Group LP 1 95,899 $17,400,000 0 0 -

Rob Bowman 2 161,227 $16,400,000 0 0 -

Centra Properties 1 155,790 $16,231,760 0 0 -

Winner Properties, LLC 2 204,740 $15,995,000 0 0 -

LaPour Partners 1 106,680 $14,905,987 0 0 -

TYPES OF INDUSTRIAL LAS VEGAS SELLERS PAST TWO YEARS

Company Type Bldgs Billions Avg PricePrice/SF

Average Sale

SF

Selling Volume

Private 288 13,337,526 $107 $4,991,911$1.4

REIT/Public 15 4,042,660 $158 $42,607,826$0.6

Institutional 36 1,529,445 $128 $5,474,642$0.2

User 24 1,206,220 $124 $6,237,351$0.1

Private Equity 4 491,308 $67 $8,300,000$0

$0 $0.4 $0.8 $1.2 $1.6



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3850 leon ave...subject property 3850 leon ave las vegas, nv 89130 - north las vegas ind location...

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