lincoln plaza centerastro.ngacres.com/core/getpropertyflyer/property_id/...house of tibet 1,292...
Post on 15-Mar-2021
1 Views
Preview:
TRANSCRIPT
BRYCE BLANCHARD, MBAbblanchard@ngacres.com801.578.5534
EXCLUSIVELY LISTED BY:
LINCOLN PLAZA CENTER1300 South State StreetSalt Lake City, Utah 84115INVESTMENT OFFERING
2
EXECUTIVE SUMMARY & HIGHLIGHTS
33
LINCOLN PLAZA CENTERINVESTMENT OFFERING
EXECUTIVE SUMMARYNewmark Grubb ACRES is pleased to present the opportunity to acquire the notable Lin-coln Plaza Center located in periphery of downtown Salt Lake City.
The Lincoln Plaza Center is a multi-tenant retail/office strip that is 100% occupied, with 67% of the leasing being government-backed. The project has had an impressive 90-100% 15-yr occupancy history and features a strong tenant mix, including a cluster of di-verse international eateries, and benefits by the well established in-fill location. Some of the benefits are derived from the growing development of the area, including the recent multi-family project, 616 Lofts, under construction on State Street and the recent redevel-opment that has taken place surrounding nearby Liberty Park.
Salt Lake County is the lead tenant for the project. Salt Lake County occupies 40,679 square feet of office space at a lease rate that is well below market at $14.44 PSF Full Ser-vice. There is only one other available office property in the surrounding area with a lease rate below $16.00 PSF Full Service and the property is classified as a Class “C” property. In addition, Salt Lake County has invested a considerable amount of their own capital in the space over the last few years and has been a tenant since 2004.
PROPERTY HIGHLIGHTS# OF TENANTS 11
RENTABLE SQUARE FOOTAGE 60,318
TOTAL PROJECT ACREAGE 4.40
PARKING RATIO 3.17/1,000
INVESTMENT HIGHLIGHTSPURCHASE PRICE $7,950,000
NET OPERATING INCOME $634,497
PRICE PER SQUARE FOOT $132
CAP RATE 8.0%
1ST YEAR LEVERAGED CASH ON CASH RETURN 14.15%
10 YEAR LEVERAGED IRR: 16.97%
4
AERIAL MAPS
55
LINCOLN PLAZA CENTERINVESTMENT OFFERING
REGIONAL MAP
"
"
"
"
"
"
"
"
"
""
"
"
"
"
""
"" "
""
" ""
" "
"
""
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"""
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
)
)
)
)
)
)
)
)
)
))
)
)
)
)
))
)) )
))
) ))
) )
)
))
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)))
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
Salt Lake CityInternational
Airport
South ValleyRegionalAirport
Sa l t L a k e C i ty
Sa n d y
Dra p e r
We st J o r da n
We st V a l l e y C i ty
He rr i ma n
Mu r r a y
So ut h J o rd a n
Ri v e rt on
Bl u f fd a l e
Ma g n a
Hol l a d a y
Mi d v a l e
Ta yl o rs vi l l eKe a r n s
Cot ton w oo dHe i gh ts
So ut hSa l t L a k e Mi l l cr e e k
CBDCBD
§̈̈215
§̈̈80
§̈̈15
§̈̈215
201
2700
Wes
t
Red
woo
dR
oad
5600
Wes
t
Sta
teS
tree
t
3200
Wes
t
3500 So uth
9000 So uth
1300
Wes
t5400 So uth
300
Wes
t
500
Ea s
t
1300
Eas
t
700
Eas
t
4100 So uth
900
Wes
t
7800 So uth
11400 So uth
1700 So uth
3300 So uth40
00W
est
Mounta in
Vi ewCorr id or
3900 So uth
4800
Wes
t
4700 So uth
13400 So uth
4500 So uth
9400 Sout h
700 S out h
Cali fo rni a Avenu e
3100 So uth
12600 So uth
900
Eas
t
11800 So uth
2700 So uth
H ighla nd Dr ive
7200
Wes
t 800 No rt h
Cre e k Ro ad
O ld Bi ng ham High way9800 So uth
7000 So uth
500
We s
t
2200
Wes
t
10600 So uth
5900 So uth
500 S out h600 S out h
5300 So uth
14 600 So u th
8200 So uth
131 0 0 South
Herrim a n Hi gh way
N ewcas t le Dr ive
1820 So uth
Dan non W ay
7200
Wes
t
900
Ea s
t7800 So uth
Bang e r ter H igh way
111
201
68
£¤89
N
6
N
6
LINCOLN PLAZA CENTERINVESTMENT OFFERING
DOWNTOWN MAP
State Street
200 East
1300 South
300 East
Main Street
Wes
t Tem
ple
200
Wes
t
300
Wes
t
7
0 0.0 5 0.1Mi les
376 East 400 South, Suite 120 l Salt Lake City, Utah 84111Offi ce 801.578.5555 l Fax 801.578.5500
Map Data and/or Imagery Courtesy of Google, UDOT (2014)www.ngacres.com
1300 South State StreetSalt Lake City, Utah
N
1300 South
Cleveland Avenue
Kelsey Avenue
Harvard Avenue
Stat
e St
reet
24,1
50 c
ars/
day
9,19
0 ca
rs/d
ay
4,32
0 ca
rs/d
ay
21,6
75 c
ars/
day
10,4
65 c
ars/
day
5,04
0 ca
rs/d
ay
13,545 cars/day25,330 cars/day
Wes
t Tem
ple
Maj
or S
tree
t
200
East
Mai
n St
reet
Jody Wilkinson
Nate Wade
Spencer’sCar Wash
Big Kahuna’sPizza
Alvaro’s
Coachman’s
Pacifi c FoodKorea House
Mi Lindo NayaritDiamond Nails
Shanghai CafeHouse of Tibet
7
LINCOLN PLAZA CENTERINVESTMENT OFFERING
LOCAL MAP
8
SITE LAYOUT
99
LINCOLN PLAZA CENTERINVESTMENT OFFERING
Suite Tenant SF1 TASC, INC 2,800
2 APEX STAFFING 912
3 TASC, INC 900
4 TASC, INC 1,250
5 FRISCH EATERY 1,540
6 PACIFIC FOODS, INC 1,539
7 KOREA HOUSE 2,750
8 IPHIXIT 1,186
9 OSCAR MORALES RAMOS 2,420
12 DIAMOND NAILS 720
14 SHANGHAI CAFÉ 2,268
15 HOUSE OF TIBET 1,29210,11,13,
16,17 SALT LAKE COUNTY 40,679
SALT LAKE COUNTY Storage Room 62
SITE PLAN
10
RENT ROLL &FINANCIAL ANALYSIS
LINCOLN PLAZA CENTERINVESTMENT OFFERING
11
RENT ROLL (12/31/16 – 12/31/17)
TENANT SF $ PSF MONTHLY ANNUAL LEASE TYPE
LEASESTART DATE LED ESCALATIONS COMMENTS
TASC, Inc. 2,800 $14.04 $3,277 $39,323 NNN 5/1/2015 6/30/2018 3% annually Rent bumps September. Renewal Option: One 3 year at 3% annual inc and 120 day notice
TASC, Inc. 900 $13.91 $1,043 $12,520 NNN 6/1/2012 6/30/2018 3% annually Rent bumps January. Same Renewal option as above.
TASC, Inc. 1,250 $13.91 $1,449 $17,388 NNN 12/31/2014 6/30/2018 3% annually Rent bumps January. Same Renewal option as above.
Apex Staffing 912 $14.49 $1,101 $13,215 NNN 7/1/2006 12/31/2016 3% annually Rent bumps January. Renewal Option: None
Frisch Eatery 1,540 $14.21 $1,823 $21,876 NNN 3/13/2014 12/31/2018 3% annually Rent bumps January. Renewal Option: One 5 year at FMV plus 3% annual increases with 90 day notice
Pacific Foods, Inc. 1,539 $12.73 $1,632 $19,585 NNN 7/10/2010 6/30/2020 3% annually Rent bumps July. Renewal Option: None
Korea House 2,750 $12.91 $2,958 $35,495 NNN 12/1/2013 11/30/2018 3% annually Rent bumps December. Renewal Option: None
iPhixit 1,186 $13.33 $1,317 $15,810 NNN 5/1/2012 4/30/2018 3% annually Rent bumps May. Renewal Option: None
Oscar Morales Ramos Mi Lindo 2,420 $12.89 $2,599 $31,189 NNN 4/1/2013 7/31/2018 3% annually Rent bumps August. Renewal Option: None
Diamond Nails (Betty Howard, Mai) 720 $20.83 $1,250 $15,000 NNN 2/1/1997 1/31/2017 3% annually Rent bumps February. Renewal option: None
Shanghai Café 2,268 $16.19 $3,059 $36,713 NNN 8/1/1995 7/31/2021 One bump of 5% in 8/1/18
Rent bumps August 2018. Renewal Option: One 5 year at 3% annual inc and 90 day notice
House of Tibet 1,292 $17.13 $1,844 $22,128 NNN 9/1/2014 8/31/2017 CPI Annually Rent bumps September. Renewal Option: None
Salt Lake Criminal Justice 40,679 $14.44 $48,942 $587,304 FS 10/18/2004 10/31/2019 FlatOutstanding credit available for T.I.'s from Landlord
to Tenant for approximately $30,000. Renewal Option: One 5 year at 10% increase at renewal and 18
month notice
Property Storage Room 62 $- $- $-
SUBTOTAL 60,318 $14.38 $72,296 $867,547
Add: NNN Tenants Reimbursable Income $58,652
Add: SL Criminal Justice Estimated Reimbursable Income $53,291
Add: Parking Income $1,200
GROSS INCOME TOTALS $980,690
Less: Vacancy on Retail (None on Office Space) 5.00% $(11,080)
Less: Reimbursable Operating Expenses $(180,711)
Less: SL Criminal Justice OpEx Only $(134,813)
Less: Reserves 2.00% $(19,590)
Expense/Vacancy Totals $(346,193)
TOTAL NET OPERATING INCOME $634,497
LINCOLN PLAZA CENTERINVESTMENT OFFERING
12
VALUATION AND CASH ON CASHNet Operating Income $634,497
Value $7,950,000
Price PSF $132
Cap Rate 8.0%
Loan to Value Ratio 65.00%
Down Payment $2,782,500
Mortgage Balance $5,167,500
Amortization (in years) 25
Payments per Year 12
Loan Term 10
Interest Rate 4.500%
Annual P&I $344,672
Annual Cash Return (NOI less P&I) $289,825
Origin Fee/Closing Costs: 1.00% $51,675
Total Cost $8,001,675
Total Cash Invested $2,834,175
Cash on Cash Return 10.23%
1st Year Principal Reduction $111,220
Total Return Including Principal Reduction $401,046
FIRST YEAR TOTAL RETURN ON INVESTMENT 14.15%
FINANCIAL ANALYSIS
LEASE EXPIRATION DATE (% OF INCOME)
2019
2020+
2016
2017
2018
20.01%
1.52% 4.28%
67.70%
6.49%
LINCOLN PLAZA CENTERINVESTMENT OFFERING
13
2017YEAR 1
2018YEAR 2
2019YEAR 3
2020YEAR 4
2021YEAR 5
2022YEAR 6
2023YEAR 7
2024YEAR 8
2025YEAR 9
2026YEAR 10
Capital Investment (2,834,175)Net Operating Income CashflowsRent Roll Income 867,547 884,898 902,596 920,648 939,061 957,842 976,999 996,539 1,016,470 1,036,799 Add: NNN Tenants Reimbursable Income 58,652 59,825 61,022 62,242 63,487 64,757 66,052 67,373 68,720 70,095 Add: SL Criminal Justice Estimated Reimbursable Income 53,291 54,357 55,444 56,553 57,684 58,838 60,014 61,215 62,439 63,688 Add: Parking Income 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 Less: Vacancy on Retail (None on Office Space) 5.00% (11,080) (11,301) (11,527) (11,758) (11,993) (12,233) (12,477) (12,727) (12,981) (13,241) Less: Reimbursable Operating Expenses (180,711) (184,325) (188,011) (191,771) (195,607) (199,519) (203,509) (207,580) (211,731) (215,966) Less: SL Criminal Justice OpEx Only (134,813) (137,509) (140,260) (143,065) (145,926) (148,845) (151,822) (154,858) (157,955) (161,114) Less: Reserves 2.00% (19,590) (19,982) (20,381) (20,789) (21,205) (21,629) (22,061) (22,503) (22,953) (23,412)Total Net Operating Income 634,497 647,163 660,082 673,260 686,701 700,411 714,395 728,659 743,208 758,048 NOI Return on Cost 7.93% 8.09% 8.25% 8.41% 8.58% 8.75% 8.93% 9.11% 9.29% 9.47%Debt Coverage Ratio 1.84 1.88 1.92 1.95 1.99 2.03 2.07 2.11 2.16 2.20Annual Cash FlowsTotal Net Operating Income 634,497 647,163 660,082 673,260 686,701 700,411 714,395 728,659 743,208 758,048 Less: Tenant Improvements $10.00 PSF (30,159) (30,762) (31,377) (32,005) (32,645) (33,298) (33,964) (34,643) (35,336) (36,043) Less: Brokerage Costs 6.00% (7,860) (8,017) (8,178) (8,341) (8,508) (8,678) (8,852) (9,029) (9,209) (9,393) Less: Leasing Costs (T.I.'s and Brokerage Costs) (38,019) (38,779) (39,555) (40,346) (41,153) (41,976) (42,816) (43,672) (44,545) (45,436) Less: Vacancy Down Time Included as a deduction in Incoming cash flows above Less: Debt Service (344,672) (344,672) (344,672) (344,672) (344,672) (344,672) (344,672) (344,672) (344,672) (344,672)Total Annual Cash Flows (2,582,369) 263,712 275,855 288,242 300,876 313,763 326,908 340,315 353,991 367,941 Cash on Cash Return n/a 9.30% 9.73% 10.17% 10.62% 11.07% 11.53% 12.01% 12.49% 12.98%Sales Proceeds (Valuation):Year of Sale 2027Exit Cap Rate 8.25%Sale Value 9,188,466 Less: Debt Payoff (3,778,028) Less: Cost of Sale 3.50% (321,596)Total Sale Proceeds at Cap Rate 5,088,842 IRR AnalysisExit Cap Rate 8.25%Total Cash Flows (2,582,369) 263,712 275,855 288,242 300,876 313,763 326,908 340,315 353,991 5,456,782 IRR 16.97%
Assumptions1 Annual Turnover: 5%2 Typical Renewal/New Lease Term: 3 Years3 Typical Renewal/New Lease Escalations: 2%4 Annual Rent/Expense Inflation: 2%5 Annual TI Inflation: 2%
FINANCIAL ANALYSIS - INCOME STATEMENT AND IRR ANALYSIS
14
ASSET SPECIFICATIONS
1515
LINCOLN PLAZA CENTERINVESTMENT OFFERING
ASSET SPECIFICATIONS
TOTAL RENTABLE SF 60,318 SF
ACREAGE 4.40 Acres
PROPERTY TYPE Strip Center
YEAR BUILT 1990
EFFECTIVE YEAR BUILT
1996
CONSTRUCTION TYPE
Block
EXTERIOR Glass store front with aluminum frames, painted concrete block, and decorative stuc-co sign fascia.
ROOF Metal roof deck with a 4-ply John Manville built-up roof with gravel ballast.
MECHANICAL Roof-mounted heating and air conditioning units, with thermostat controls in each tenant space.
ELEVATOR US Elevator-2 story hydraulic
PARKING RATIO 3.17/1000
16
PHOTOS
1717
LINCOLN PLAZA CENTERINVESTMENT OFFERING
PHOTOS
18
AREA INFORMATION
1919
LINCOLN PLAZA CENTERINVESTMENT OFFERING
AREA INFORMATION
WHY INVEST IN UTAH?
TOP 10
TOP STATE FOR BUSINESS
#1 ECONOMY
EMPLOYMENT
GLOBALLY RANKED
AAA
#1 FOR BUSINESS
#1
by Area Development Magazine for “significant job creation, infrastructure improvement and for leading the nation in fostering a world-class business environment.” (Utah Governor’s Office of Economic Development, 2016)
AWARDEDGOLD SHOVEL
FUNAMENTALLYSOUNDHIGHEST RESULTS IN 6 PERFORMANCE CATEGORIES(US Chamber Foundation, October 2015)
LABOR MARKETSALT LAKE & PROVO BOTH RANKED TOP 10 (Forbes, 2015)
RATED AMERICA’S TOP STATE FOR BUSINESS (CNBC, 2016)
#1 STATE WITH THE BEST ECONOMY (WalletHub, 2016)
UNEMPLOYMENT IS SECOND LOWEST IN NATION(Dept. of Workforce Services)
SALT LAKE CITY RANKED ONE OF THE “15 BEST CITIES TO DO BUSINESS GLOBALLY”(Fortune)
1 OF 13 STATES AWARDED A AAA CREDIT RATING(Standard & Poor’s, 2015)
#1 BEST STATE FOR BUSINESS(Forbes, 2015)
#1 PRO-BUSINESS STATE FOR 3RD CONSECUTIVE YEAR(Pollina and AEDI)
2020
LINCOLN PLAZA CENTERINVESTMENT OFFERING
AREA INFORMATION
5 NATIONAL PARKS
43 STATE PARKS
14 WORLD-CLASS SKI RESORTS
SALT LAKE RANKED ONE OF THE HEALTHIEST METRO AREAS(ATLANTIC CITIES MAGAZINE)
OVER 9 MILLION ACRES OF NATIONAL FOREST
UTAH HAS 6TH LOWEST CRIME RATE IN THE U.S.
#1 HIKING CITY (SALT LAKE CITY)
(NATIONAL GEOGRAPHIC ADVENTURE)
SALT LAKE RANKED BEST PLACE TO LIVEPARK CITY RANKED BEST TOWN EVER(OUTSIDE MAGAZINE)
2ND MOST LIVABLE STATE(CQ PRESS, 2013)
#1 STATE FOR FUTURE LIVABILITY(GALLUP WELLBEING)
SALT LAKE CITY LIFESTYLE
21
MARKET INFORMATION
2222
LINCOLN PLAZA CENTERINVESTMENT OFFERING
MARKET INFORMATION
2016 MIDYEAR MARKET REPORTCLICK TO VIEW
top related