offering memorandum for sale durango trails business a ... · project / address size price psf...

Presented by:

Ryan Martin, SIOR, CCIMSenior Vice PresidentLic#: BS.0048284C [email protected]

Tonya GottesmanSenior AssociateLic#: S.0189043C [email protected]

OFFERING MEMORANDUM For Sale Durango Trails Business A5115 South Durango Drive Las Vegas, NV 89113

Disclaimer

This package is provided to you by MDL Group and is intended solely for your limited use and benefit in determining whether you desire to express further interest in purchasing or leasing the property described in the attached documentation (the “Property”). The providing of “this package” to you and your use thereof is conditioned upon your agreement to the terms set forth below.

This package contains selected information pertaining to the Property. It does not purport to be a representation of the state of affairs of the current owner, nor should it be construed to contain all or part of the information which prospective investors would deem necessary to evaluate the Property for purchase. Any financial projections and information provided are for general reference purposes only, are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the current owner and MDL Group. All projections, assumptions and other information provided are made herein are subject to material variation. MDL Group has not independently investigated the accuracy of the informa-tion within the package, as such information was obtained by the owner and/or public records. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers.

Neither the owner, MDL Group, nor any of their respective directors, officers, agents, affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of the information contained within this package or any supplemental information provided after the delivery of this package to you, and no legal commitment or obligation shall arise by reason of your receipt of this package or use of its contents. Please also refer to the disclaimer at the bottom of each page of this package, which disclaimer is incorporated herein by reference.

You should understand and be advised that the owner of the Property expressly reserves the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with you or any other party at any time with or without notice which may arise as a result of this package. The owner shall have no legal commitment or obligation to you or any other party reviewing this package, nor shall the owner be required to accept an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligation therein have been satisfied or waived.

By receipt of “this package”, you agree that the package and its contents are of a confidential nature, that you will hold and treat it in the strictest confi-dence and that you will not disclose the package or any of its contents to any other entity without the prior written authorization of owner. You also agree that you will not use the package or any of its contents in any manner detrimental to the interest of the owner or MDL Group.

This package describes certain documents including leases and other materials, which documents are described in summary form only. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected and advised to review all such summaries and other documents of whatever nature independently with legal counsel, tax and other professionals of their choice who have the expertise to assist in investigating this information in detail. You are therefore advised not to rely solely on the package as part of your investigations on this Property. If you have no interest in further pursuing this Property, please return this package to MDL Group.

Property Overview

The subject Property is located in a professional managed office park and is located in the desirable Southwest sub-market on Durango Drive. The Property’s location sits be-tween major east/west thoroughfares, Tropicana Ave. and Russell Rd., and approximately 1 mile from the I-215 Free-way. The interior of the building is beautifully modernized with hard wood flooring, large rooms with plumbing and se-cured locks. The Property is monitored with exterior and in-terior cameras 24 hours per day and 7 days a week. 5115 S. Durango Drive is ideal for any medical user who would like to occupy the full building or a portion of the building with the option of renewing the current aesthetic type tenants.

Due to the demand for real estate in the Southwest, this lo-cation is situated between Summerlin to the west and Hen-derson to the east. The Property is central for all employees. With multiple construction projects underway, the South-west is not showing any signs of slowing

Offering Details

Property Name:Durango Trails

Sale Price:$1,000,000

Address:5115 S. Durango DriveLas Vegas, NV 89113

Offering:$247per SF

Parcel Number:163-29-616-057

Building SF:±4,050 SF

Zoning:(C-P) Office and Professional

Year Built:2005

Total Building Available:2005

Year Renovated:2019

Parking:±SF

Traffic Counts:±33,000 on Durango Dr.±37,000 Tropicana Avenue

Unique Owner/User Opportunitywith Income

Property Highlights:

• Recently remodel building with modern design

• Unique owner/user opportunity with possible income

• Beautiful furniture available including medical grade chairs

• Security cameras installed with secure access on each office

door

• Covered parking with ample surface parking

• Professional managed office park

• Desirable Southwest submarket location

Own vs Lease AnalysisSample Comparison

Property Square Footage 4,050 sf

Own Purchase Price $1,000,000 Monthly Lease Rate $6,070Improvements $0 Rented Sq. Ft. 4,050 sfOther $0Total Project Cost $1,000,000Total Price per Sq. Ft. $246.91 PSF Lease Rate per Sq. Ft. $1.50 PSF

Cash Down Payment 10% $100,000 Lease 1 Months Rent $6,070Estimated Bank Fees 1.50% $7,500 Security Deposit $6,070Estimated Appraisal & Environmental $4,350Estimated Escrow & Title $6,000Other Fees $0Total Cash Required $117,850 Total Cash Required $12,140

Mortgage Payment (monthly) $1.19 $4,819 Lease Payment $1.50 $6,070Property Taxes $0.01 $41 Property Taxes $0.01 $41Insurance $0.02 $81 Insurance $0.02 $81Operating Expenses $2.22 $8,991 Operating Expenses $2.22 $8,991CAMs $0.35 $1,418 CAMs $0.35 $1,418Total Monthly Payment $3.79 PSF $15,349 Total Monthly Payment $4.10 PSF $16,600

Total Monthly Payment $3.79 $15,349 Total Monthly Payment $4.10 $16,600Less Depreciation ($0.42) -$1,709Actual Tenant Income $0.00 $0

Monthly Mortgage Payment in 10 years $4,819 Monthly Lease Payment in 10 years $21,659Cash Savings After 10 Years $541,110 Cash Savings After 10 Years $0Equity After 10 Years $549,351 Equity in 10 Years $0

Start-Up Costs

$13,639.88

Monthly CostsMonthly Costs

Total Adjusted Monthly Costs

$16,600.00

Total Adjusted Monthly Costs

Start-Up Costs

Equity assumes 2% annual building appreciation Assumes annual lease rate increase of 3%Assumptions: Depreciation est. at 80% allocation of purchase price.

Lease

Forecasted Ownership Benefits Forecasted Cost of Continuing to Lease

$3.37 PSF $4.10 PSF

Financing Package90% Financing Example

For more information contact us.Your SBA 504 Expert

Chris HunterSVP, Business [email protected]

Bank 1st Mortgage - 50% Loan Size $500,000Term - 10 YearsRate - 4.75%Monthly Payment - $2,851.00

Loan Size - $414,000

Term - 25 Years

Rate - 3.02%

Monthly Payment - $1,968.00

Bank interest rate and terms are

estimated. Actual rate negotiated with Lender

SBA loan includes SBA fees of $12,000

(2.65% plus $2,500 in closing Costs.

SBA 504 2nd Mortgage - 40%

*Prices are subject to change. Stated prices are example of building and unit.

Aerial Map

Comparable

Lease CompsLas Vegas Properties

PROJECT / ADDRESSPROJECT / ADDRESS SIZE SIZE PRICE PSFPRICE PSF TERMSTERMS START DATESTART DATE

Egoscue of Las Vegas5980 S. Rainbow Boulevard, Las Vegas ±1,500 SF $1.35 NNN 5 Yrs 10/1/2019

SVR9512 W. Flamingo Road, Las Vegas ±1,515 SF $2.00 NNN 3 Yrs 10/1/2019

Securus Technologies7885 W. Sunset Road, Las Vegas ±1,170 SF $1.75 NNN 3 Yrs 7/1/2019

Geo Corp6268 S. Rainbow Boulevard, Las Vegas ±1,500 SF $1.50 NNN 5 Yrs 3/1/2019

Undisclosed6910 S. Cimarron Road, Las Vegas ±2,400 SF $1.75 NNN 7 Yrs 3/1/2019

Undisclosed9067 W. Post Road, Las Vegas ±1,073 SF $1.75 NNN 3 Yrs 6/1/2019

Undisclosed6002 S. Durango Drive, Las Vegas ±2,143 SF $1.70 NNN N/A 11/1/2019

Undisclosed5575 S. Durango Drive, Las Vegas ±2,947 SF $1.30 NNN 3 Yrs 7/1/2019

Comparable

Sale CompsLas Vegas Properties

PROJECT / ADDRESSPROJECT / ADDRESS SIZE SIZE PRICE PSFPRICE PSF CLOSING DATECLOSING DATE COMMENTSCOMMENTS

Durango Trails5175 S. Durango Dr., Las Vegas

±3,038 SFNOT

DISCLOSED7/2/2019 Part of a 6,077 SF Bldg.


±4,045 SF$990,000$245/SF

4/10/2019 Owner User Sale


±4,045 SF$835,000$206/SF

5/24/2019 Owner User Sale w/ Financing

Canyon Ridge Business Park5824 S. Durango Dr., Las Vega

±10,000 SFNOT

DISCLOSEDIn escrow

New Construction Grey Shell Delivery

Durango Village6064 S. Durango Dr., Las Vegas

±5,500 SF$1,200,000

$218/SFIn escrow Medical Owner User Bldg.

Oquendo Business Park5915 Edmond Street, Las Vegas

±4,916 SF$1,125,000

$228/SF2/13/2019 Part of a 7,500 SF Bldg.

Flamingo Business Park9159 W. Flamingo Road, Las Vegas

±5,226 SF$1,155,000

$221/SFIn escrow Fully Leased multiple tenants


±1,725 SF$435,010$252/SF

9/18/2019 Part of a 5,228 SF Bldg.


±2,692 SF$675,000$250/SF

8/1/2019 Part of a 5,226 SF Bldg.

Propety Photos

Demographics

Population:

2019 Population2024 Population2010 Census

1 Mile

±16,150±18,662±9,916

3 Miles

±170,410±188,593±138,757

5 Miles

±362,510±398,638±303,027

Income:

2019 Median HH Income 2024 Median HH Income

1 Mile

$93,312$104,492

3 Miles

$82,120$93,474

5 Miles

$84,425$96,659

Business Growth: 1 Mile 3 Miles 5 Miles

Total BusinessesTotal Employees

±713±6,304

±5,924±56,327

±16,395±172,814

±16,150 ±93,312 ±713

Population

SOURCE: Clark County Department of Comprehensive Planning (report date: July 30, 2019)

461,816

770,280

1,425,723

1,815,700

2,036,358

2,325,798

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

1980 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

CLARK COUNTY POPULATION(LAS VEGAS METROPOLITAN AREA

Population Trends_NEW.xlsx

Las Vegas McCarran Airport

2020 Total Passengers

Peak Month l Jan= 4,154,165Low Month l Mar= 2,064,393

Peak Month l Oct= 4,609,318Low Month l Feb= 3,628,594

(enplaned & deplaned) Q1 only January - March

2019 Total Passengers

McCarran International Airport (IATA: LAS, ICAO: KLAS, FAA LID: LAS) is the primary commercial airport serving the Las Vegas Valley, a major metropolitan area in the U.S. state of Nevada. It is in Paradise, about 5 miles (8.0 km) south of Downtown Las Vegas. The airport is owned by Clark County and operated by the Clark County Department of Aviation. McCarran International Airport saw a total of 49,700,000 passengers in 2018. It was the eighth consecutive year McCarran experienced a year-over-year increase, with a 2.5 percent rise in pas-senger volume.

Las Vegas Overview

Las Vegas Stadium

Las Vegas Convention Center

The Oakland Raiders received the NFL’s approval to move to Sin City for the 2020 NFL season. Las Vegas has proposed a new $1.9 billion stadium just to the west to the strip. The venue’s horse-shoe shape designed by Manica Archi-tecture, would accommodate an audience of 65,000 spectators, 8,000 cars, tail-gating amenities and mixed-use commercial facilities. Along with the economic benefits of in season games, this venue would also allow Las Vegas to host the annual Super Bowl - which would bring hundreds of millions of dollars in tourism and revenue.

Las Vegas Convention Center (2017-2024) – A $1.4-billion project that extends to the Strip and will include 600,000 square feet of exhibit hall, outdoor exhibition space and a complete renovation of the existing convention space. This expan-sion will allow for an overflow area for conventions to use while the remaining halls of the main convention center are renovated. Thus, refreshing the beating heart of the Las Vegas valley. With 6 million plus convention attendees visiting us last year.

Las Vegas Sports

Las Vegas Golden Knights

Las Vegas Aviators

Las Vegas Aces

Las Vegas Lights FCLas Vegas Lights FC is an American professional soccer team based in Las Vegas, Nevada. The team made its debut in the United Soccer League in 2018 and plays its home games at Cashman Field. The Lights are coached by Eric Wynalda and owned by Brett Lashbrook, who also serves as general manager. The Lights play their home matches at Cashman Field, a stadi-

um in Downtown Las Vegas,it has 9,334 permanent seats and additional standing room capacity.

The Las Vegas Aviators is a Triple-A Pacific Coast League, that plays in the newly constructed Las Vegas Ballpark, located in Summerlin, Nevada in the Las Vegas Valley. The stadium is owned by the Howard Hughes Corporation. The Las Vegas Ballpark is located in Downtown Summerlin near the intersection of South Pavillion Center Drive and Summerlin Center

Drive next to City National Arena and across the street from the Downtown Summerlin shopping Center.

The Las Vegas Aces are an American professional basketball team based in Paradise, Nevada. The Aces compete in the Western Conference of the Women’s National Basketball Association (WNBA), and play their home games at the Mandalay Bay Events Center

The Vegas Golden Knights are a professional ice hockey team based in the Las Vegas metropolitan area that competes in the National Hockey League (NHL). They are members of the Pacific Division of the league’s Western Conference, and began play in the 2017–18 NHL season. The team’s inaugural home game was played on October 10, 2017. The Golden Knights said their colors steel grey, gold, red and black reflect the community and the focus of the team. The grey represents strength and durability; Nevada is the largest producer of gold in the United States; the red is taken from the Las Vegas skyline, desert and Red Rock canyons; and the black represents power and intensity.

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