Embed Size (px)
Citation preview
OFFERING MEMORANDUM
Cactus Court 12416 N 28th DrPhoenix AZ 85029
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from International Realty LV and itshould not be made available to any other person or entity without the written consent of International Realty LV. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees thatrecipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to InternationalRealty LV. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level ofinterest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. International Realty LV has not made any investigation, and makes no warranty or representationwith respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, thepresence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or financialcondition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe reliable; however, International Realty LV has not verified, and will not verify, any of theinformation contained herein, nor has International Realty LV conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy orcompleteness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costsand expenses of investigating the subject property.
Cactus Court Confidentiality and Disclaimer | 02
CONFIDENTIALITY AND DISCLAIMER
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT INTERNATIONAL REALTY LV FOR MORE DETAILS.Copyright © 2019 CREOP, LLC. All Rights Reserved.
Cactus Court Investment Summary | 03
OFFERING SUMMARYADDRESS 12416 N 28th Dr
Phoenix AZ 85029COUNTY MaricopaGLA (SF) 16,276YEAR BUILT 1979APN 149-21-021GOWNERSHIP TYPE Other
FINANCIAL SUMMARYOFFERING PRICE $2,100,000PRICE PSF $129.02OCCUPANCY 100 %NOI (CURRENT) $166,340CAP RATE (CURRENT) 7.92 %
ASSUMABLE FINANCINGLOAN TYPE Fully AmortizedDOWN PAYMENT $630,000LOAN AMOUNT $1,470,000INTEREST RATE 4.00 %ANNUAL DEBT SERVICE $84,217LOAN TO VALUE 70 %AMORTIZATION PERIOD 30 Years
DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2017 Population 21,381 152,587 428,2642017 Median HH Income $43,992 $48,744 $51,3462017 Average HH Income $56,356 $63,832 $68,248
Cactus Court Location Summary | 04
Prime location in downtown Phoenix. This fantastic propertyis located just minutes from everything in an area known asMetro Center. This popular location is undergoing amassive surge referred to as the "rebirth" of the MetroCenter. This location boasts Minutes away from freeways,Phoenix Sky Harbor International Airport, major bus linesand Metro Center North.
This property is located just west of I-17 and a mile north ofMetro Center. The 101 Freeway is five miles to the North.Cactus Court boasts easy accessability from all directionsvia these two freeways. New businesses are opening orhave already opened such as a new Walmart store andalso a new Quik Trip gas station directly across the street.This area boasts several major retailers such as Best Buy,Lowes, Sherwin Williams and Petco. As the area continuesto grow, this list of major retailers is expected to increasealso.
Regional Map
Locator Map
Cactus Court Property Features | 05
PROPERTY FEATURESNUMBER OF TENANTS 12GLA (SF) 16,276LAND ACRES 0.96YEAR BUILT 1979# OF PARCELS 1ZONING TYPE C-1, PhoenixNUMBER OF STORIES 1NUMBER OF PARKING SPACES 30PARKING RATIO 1.89STREET FRONTAGE 28th DrCORNER LOCATION I-17
CONSTRUCTIONEXTERIOR Masonry
Cactus Court Aerial Map | 06
Cactus Court Rent Roll Details | 07
Lease Term Rental RatesSuite Tenant Name Square
Feet% of GLA Lease Start Lease End Begin Date Monthly
Base RentMonthlyPSF
Annual BaseRent
AnnualPSF
CAM Fee(Annual)
Lease Type Options/Notes
10 Doggy Stylez Grooming &Boarding LLC
1,200 7.37% 01/01/18 04/30/20 CURRENT $750 $0.63 $9,000 $7.50 $5,040.00
05/01/2018 $700 $0.58 $8,400 $6.96
12 Tony Hallam 1,000 6.14% 12/31/18 07/31/19 CURRENT $750 $0.75 $9,000 $9.00 $3,000.0014 & 16 Spay & Neuter Clinic 2,000 12.29% 07/01/15 06/30/20 CURRENT $2,293 $1.15 $27,520 $13.76 $6,960.00
06/19/2019 $2,316 $1.16 $27,795 $13.92
18 Penney Jo Kim DBA Braid 1,000 6.14% 09/01/18 09/30/21 CURRENT $750 $0.75 $9,000 $9.00 $3,600.002 Myl & Melissa McNeal 1,000 6.14% 11/01/18 10/31/19 CURRENT $650 $0.65 $7,800 $7.80 $4,200.00
2-4 Larkspur Christian Church 2,000 12.29% 05/01/18 04/30/20 CURRENT $1,817 $0.91 $21,800 $10.90 $7,000.0020 High Priestess Piercing 1,000 6.14% 01/01/14 12/31/20 CURRENT $1,239 $1.24 $14,870 $14.87 $4,560.00
22 Noah Smoke Shop AbarakA Itameemi & Hait
1,000 6.14% 06/01/17 05/31/20 CURRENT $976 $0.98 $11,716 $11.72 $3,960.00
07/01/2019 $1,074 $1.07 $12,887 $12.8424 Patriot Nation LLC 1,000 6.14% 07/01/18 08/31/20 CURRENT $600 $0.60 $7,200 $7.20 $3,000.00
07/01/2019 $704 $0.70 $8,450 $8.40
26 Jesus Antonio Haro/Church 2,300 14.13% 09/01/15 03/31/21 CURRENT $975 $0.42 $11,700 $5.09 $6,900.0028 Bogie Hall of Fades 1,600 9.83% 07/01/15 06/30/20 CURRENT $1,297 $0.81 $15,568 $9.73 $3,600.00
6 Valley King Properties 1,000 6.14% 08/01/14 06/30/20 CURRENT $700 $0.70 $8,400 $8.40 $3,600.008 CPR Training 1,100 6.76% 12/31/18 12/31/20 CURRENT $950 $0.86 $11,396 $10.36 $3,003.00
Totals 17,200 $13,747 $164,970 $58,423.00
Cactus Court Lease Expiration | 08
Cactus Court Income & Expense Analysis | 09
INCOME CURRENT YEAR 2
Gross Potential Rent $166,340 $167,666
Annual CAM Fee $58,423 $58,423
Effective Gross Income $224,763 $226,089
Less: Expenses $58,423 $58,423
Net Operating Income $166,340 $167,666
Principal Reduction $25,417 $25,417
Total Return 17.1 % $107,541 17.3 % $108,867
EXPENSES CURRENT YEAR 2
Real Estate Taxes $26,038 $26,038
Insurance $3,025 $3,025
Management Fee $7,503 $7,503
Repairs & Maintenance $3,646 $3,646
Water / Sewer $4,173 $4,173
Landscaping $3,066 $3,066
Utilities $3,043 $3,043
Janitorial $2,680 $2,680
Marketing $5,249 $5,249
Total Operating Expense $58,423 $58,423
Annual Debt Service $84,217 $84,217
Expense / SF $3.58 $3.58
% of EGI 25.99 % 25.84 %
REVENUE ALLOCATION
DISTRIBUTION OF EXPENSES
Cactus Court Multiyear Cash Flow Assumptions | 10
GLOBALSale Price $2,100,000Exit CAP Rate 7.85 %
ASSUMABLE FINANCINGLoan Type Fully AmortizedDown Payment $630,000Loan Amount $1,470,000Interest Rate 4.00 %Annual Debt Service $84,217Loan to Value 70 %Amortization Period 30 Years
Cactus Court Cash Flow Analysis | 11
CASH FLOWCalendar Year Year1 YEAR 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueGross Rental Income $166,340 $167,666 $167,666 $167,666 $167,666 $167,666 $167,666 $167,666 $167,666 $167,666Annual CAM Fee $58,423 $58,423 $58,423 $58,423 $58,423 $58,423 $58,423 $58,423 $58,423 $58,423Gross Potential Income $224,763 $226,089 $226,089 $226,089 $226,089 $226,089 $226,089 $226,089 $226,089 $226,089Effective Gross Income $224,763 $226,089 $226,089 $226,089 $226,089 $226,089 $226,089 $226,089 $226,089 $226,089Operating ExpensesReal Estate Taxes $26,038 $26,038 $26,038 $26,038 $26,038 $26,038 $26,038 $26,038 $26,038 $26,038Insurance $3,025 $3,025 $3,025 $3,025 $3,025 $3,025 $3,025 $3,025 $3,025 $3,025Management Fee $7,503 $7,503 $7,503 $7,503 $7,503 $7,503 $7,503 $7,503 $7,503 $7,503Repairs & Maintenance $3,646 $3,646 $3,646 $3,646 $3,646 $3,646 $3,646 $3,646 $3,646 $3,646Water / Sewer $4,173 $4,173 $4,173 $4,173 $4,173 $4,173 $4,173 $4,173 $4,173 $4,173Landscaping $3,066 $3,066 $3,066 $3,066 $3,066 $3,066 $3,066 $3,066 $3,066 $3,066Utilities $3,043 $3,043 $3,043 $3,043 $3,043 $3,043 $3,043 $3,043 $3,043 $3,043Janitorial $2,680 $2,680 $2,680 $2,680 $2,680 $2,680 $2,680 $2,680 $2,680 $2,680Marketing $5,249 $5,249 $5,249 $5,249 $5,249 $5,249 $5,249 $5,249 $5,249 $5,249Total Operating Expense $58,423 $58,423 $58,423 $58,423 $58,423 $58,423 $58,423 $58,423 $58,423 $58,423Net Operating Income $166,340 $167,666 $167,666 $167,666 $167,666 $167,666 $167,666 $167,666 $167,666 $167,666Annual Debt Service $84,217 $84,217 $84,217 $84,217 $84,217 $84,217 $84,217 $84,217 $84,217 $84,217Cash Flow $82,123 $83,449 $83,449 $83,449 $83,449 $83,449 $83,449 $83,449 $83,449 $83,449
Effective Gross Income vs Operating Expenses Cash Flow
Cactus Court Cash Flow Analysis | 12
Calendar Year Year1 YEAR 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial MetricsCash on Cash Return b/t 13.04 % 13.25 % 13.25 % 13.25 % 13.25 % 13.25 % 13.25 % 13.25 % 13.25 % 13.25 %CAP Rate 7.92 % 7.98 % 7.98 % 7.98 % 7.98 % 7.98 % 7.98 % 7.98 % 7.98 % 7.98 %Debt Coverage Ratio 1.98 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99Operating Expense Ratio 25.99 % 25.84 % 25.84 % 25.84 % 25.84 % 25.84 % 25.84 % 25.84 % 25.84 % 25.84 %Gross Multiplier (GRM) 9.34 9.29 9.29 9.29 9.29 9.29 9.29 9.29 9.29 9.29Loan to Value 69.99 % 68.72 % 67.43 % 66.09 % 64.69 % 63.24 % 61.73 % 60.16 % 58.52 % 56.82 %Breakeven Ratio 63.46 % 63.09 % 63.09 % 63.09 % 63.09 % 63.09 % 63.09 % 63.09 % 63.09 % 63.09 %Price / SF $129.02 $129.02 $129.02 $129.02 $129.02 $129.02 $129.02 $129.02 $129.02 $129.02Income / SF $13.80 $13.89 $13.89 $13.89 $13.89 $13.89 $13.89 $13.89 $13.89 $13.89Expense / SF $3.58 $3.58 $3.58 $3.58 $3.58 $3.58 $3.58 $3.58 $3.58 $3.58
Cactus Court Disposition Sensitivity Analysis | 13
5 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES
PRICESALES PRICE PSF PROCEEDS AFTER
LOAN PAYOFFIRR
6.85% $2,447,679 $150 $1,099,513 22.69%7.10% $2,361,493 $145 $1,013,328 21.18%7.35% $2,281,170 $140 $933,005 19.69%7.60% $2,206,132 $136 $857,966 18.22%7.85% $2,135,873 $131 $787,707 16.77%8.10% $2,069,951 $127 $721,785 15.34%8.35% $2,007,976 $123 $659,811 13.91%8.60% $1,949,605 $120 $601,439 12.49%8.85% $1,894,531 $116 $546,366 11.07%
10 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES
PRICESALES PRICE PSF PROCEEDS AFTER
LOAN PAYOFFIRR
6.85% $2,447,679 $150 $1,211,250 17.27%7.10% $2,361,493 $145 $1,125,064 16.76%7.35% $2,281,170 $140 $1,044,742 16.26%7.60% $2,206,132 $136 $969,703 15.77%7.85% $2,135,873 $131 $899,444 15.29%8.10% $2,069,951 $127 $833,522 14.82%8.35% $2,007,976 $123 $771,548 14.35%8.60% $1,949,605 $120 $713,176 13.90%8.85% $1,894,531 $116 $658,103 13.45%
Cactus Court Demographics | 14
POPULATION 1 MILE 3 MILE 5 MILE
2000 Population 19,653 142,674 406,155
2010 Population 19,256 140,029 394,162
2017 Population 21,381 152,587 428,264
2022 Population 22,862 161,374 452,820
2017 African American 1,318 9,626 25,380
2017 American Indian 608 4,959 11,392
2017 Asian 650 6,235 17,052
2017 Hispanic 7,121 50,210 130,443
2017 White 14,238 101,510 297,477
2017 Other Race 3,482 22,956 57,772
2017 Multiracial 1,051 6,943 18,300
2017-2022: Population: Growth Rate 6.75 % 5.65 % 5.60 %
2017 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
less than $15,000 1,118 7,012 19,548
$15,000-$24,999 1,056 6,243 16,921
$25,000-$34,999 970 6,713 17,838
$35,000-$49,999 1,694 8,970 25,158
$50,000-$74,999 1,769 10,952 32,590
$75,000-$99,999 967 7,232 20,774
$100,000-$149,999 658 6,235 19,119
$150,000-$199,999 196 1,690 6,226
$200,000 or greater 174 1,709 6,060
Median HH Income $43,992 $48,744 $51,346
Average HH Income $56,356 $63,832 $68,248
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2000 Total Housing 8,674 56,819 164,515
2010 Total Households 7,773 52,430 152,057
2017 Total Households 8,602 56,757 164,234
2022 Total Households 9,184 59,878 173,209
2017 Average Household Size 2.48 2.66 2.58
2000 Owner Occupied Housing 4,260 31,068 95,094
2000 Renter Occupied Housing 3,783 22,877 60,699
2017 Owner Occupied Housing 3,746 28,563 88,568
2017 Renter Occupied Housing 4,856 28,193 75,666
2017 Vacant Housing 767 5,557 17,179
2017 Total Housing 9,369 62,314 181,413
2022 Owner Occupied Housing 4,084 30,908 95,757
2022 Renter Occupied Housing 5,100 28,970 77,453
2022 Vacant Housing 749 5,800 18,154
2022 Total Housing 9,933 65,678 191,363
2017-2022: Households: Growth Rate 6.60 % 5.40 % 5.35 %
Source: esri
Cactus Court Demographics | 15
Cactus Court Demographic Charts | 16
1 Mile Radius 3 Mile Radius 5 Mile Radius
2017 Household Income
1 Mile Radius 3 Mile Radius 5 Mile Radius
2017 Population by Race
Cactus Court Demographic Charts | 17
2017 Household Occupancy - 1 Mile Radius
Average Income Median Income
2017 Household Income Average and Median
