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$25,000 STARTING BID
O N L I N E A U C T I O N
BUILDING: ±2,573 SFLOT: ±0.60 AC
PARKING: ±33 SPACES
PROPERTY TYPE: RETAIL
TENANCY: SINGLE
OCCUPANCY: VACANT
YEAR BUILT: 1995
STORIES: ONE
ZONING: ECG, ECLECTIC GENERAL COMMERCIAL
±3 MILES TO CBD
DRIVE-THRU
BUS LINE
PYLON SIGN
F O R M E R T A C O B E L L3 0 1 3 S A L E M A V E N U E , D A Y T O N , O H
OPPORTUNITY ZONE
CBRE is pleased to present a vacant, free-standing retail building located at 3013 Salem Avenue, Dayton, OH 45406 (the “Property”). This Property is offered significantly below replacement cost and offers an exceptional owner/user or investment opportunity with significant value enhancement potential at a significant discount.
The Property is comprised of one, free-standing, single-story building totaling ±2,222 SF and offers drive-thru capabilities with prominent signage opportunities. This former Taco Bell restaurant, the 0.60-acre parcel holds 33 surface parking spaces with two curb cuts on Salem Ave and Stanhope Ave, and is zoned ECG Eclectic General Commercial, allowing for a variety of uses. The flexible zoning offers potential investors the ability to acquire a free-standing retail building with significant value add through long term lease up, adaptive reuse, or repositioning. The additional Opportunity Zone incentives represent a significant opportunity for investors in of themselves, but when combined with federal, state and local government development programs, these incentives can add another layer of value for investors.
The Property is located within the southwestern portion of Ohio, in the city of Dayton, within Montgomery County. The Property is strategically positioned just ±3 miles northwest of the Dayton CBD, ±50 miles north of Cincinnati, and offers prime frontage along the NWQ Salem Ave and Stanhope Ave. Salem Avenue flows directly into the central business district of Dayton which supports a heavy traffic flow of over 21k cars per day. This Property located just three miles outside of downtown is a prime location to capitalize on the inflow and outflow of commuters coming in and out of Dayton at peak hours, perfect for a fast food or quick-service restaurant. In 2019, the Property had approximately ±154,271 individuals residing within a five-mile radius with an average household income of ±$47,219 Additionally, within a 5-mile radius of the Property the total annual budget expenditures accounts for ±$2.65B billion of which $788 million are allocated to retail goods and expenditures.
P H I L I P KAT E ST: 305-206-1286
ONLINE AUCTION: FEBRUARY 24 - 26, 2020
A DA M S K L AV E RT: 954-745-7467
±2,222 SF FORMER TACO BELL
AVAILABLE AT A SIGNIFICANT
DISCOUNT BELOW REPLACEMENT
COST
TREMENDOUS VALUE ADD
OPPORTUNITYVIA STRATEGIC LONG
TERM LEASE-UP, ADAPTIVE REUSE, OR
REPOSITIONING
A DA M S K L AV E RT: 954-745-7467
PRIME FRONTAGE ON SALEM AVENUE (±21,380 VPD)
WHICH FLOWS DIRECTLY INTO DAYTON’S CBD
(±3-MI)
STRATEGICALLY POSITIONED
WITH PROMINENT SIGNAGE
OPPORTUNITIES AND DRIVE-THRU
CAPABILITIES
P H I L I P KAT E ST: 305-206-1286
DAYTON, OH
ST
Dayton is a city of visionaries, inventors and entrepreneurs. From the airplane to the ice cream cone, airbags to the artificial heart, innovation prospers here. Dayton is the sixth-largest city in the state of Ohio and is the county seat of Montgomery County. In the 2010 census, the population was ±141,527, and the Dayton metropolitan area had ±799,232 residents, making it Ohio’s fourth-largest metropolitan area, after Cleveland, Cincinnati, and Columbus and the 63rd-largest in the United States. The Dayton-Springfield-Greenville Combined Statistical Area had a population of ±1,080,044 in 2010, making it the 43rd-largest in the United States.
Dayton is within Ohio’s Miami Valley region, just north of the Cincinnati-Northern Kentucky metropolitan area. Ohio’s borders are within ±500 miles of roughly ±60% of the country’s population and manufacturing infrastructure, making the Dayton area a logistical centroid for manufacturers, suppliers, and shippers. Dayton also hosts significant research and development in fields like industrial, aeronautical, and astronautical engineering that have led to many technological innovations. Much of this innovation is due in part to Wright-Patterson Air Force Base and its place within the community. With the decline of heavy manufacturing, Dayton’s businesses have diversified into a service economy that includes insurance and legal sectors as well as healthcare and government sectors. Other than defense and aerospace, healthcare accounts for much of the Dayton area’s economy. Hospitals in the Greater Dayton area have an estimated combined employment of nearly 32,000 and a yearly economic impact of ±$6.8 billion. It is estimated that Premier Health Partners, a hospital network, contributes more than ±$2 billion a year to the region through operating, employment, and capital expenditures.
Investors/owners can benefit from the multitude of local, state, and federal programs and incentives that are available to businesses that locate, expand, and do business in Dayton.
$25,000 STARTING BID
O N L I N E A U C T I O N
© 2019 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful,
independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
5-MILE DEMOGRAPHICS
A DA M S K L AV E RT: 954-745-7467
P H I L I P KAT E ST: 305-206-1286
Beyond the initial 180-day period in which funds must be reinvested, there are other timeframes that investors should take note of to fully benefit from tax advantages offered through the QOZs.
For example, a QOZ investment allows for the reduction of deferred gains from the sale or exchange of prior investments. QOZ investments maintained for at least five years by the end of 2026 will qualify for a 10% reduction of deferred capital gains tax liability (for the original capital gain). If the gain has been invested in an opportunity fund for seven years by the end of 2026, the tax liability on the original gain is reduced by 15%. Consequently, in order to take advantage of at least some of these benefits, capital gains must be reinvested by the end of 2021.
Beyond the five- and seven-year periods, gains from investments in QOZs become tax free after an investment period of at least 10 years (this does not include the original gain reinvested in the QOZ and will apply to assets held until 2047). As currently written, should Congress extend the 2026 due date for taxes on original gains to at least 2028, it could be possible to erase tax liability for all gains. However, it is worth emphasizing Congressional action would be required for the 2026 date to be extended.
THE TAX ADVANTAGES OF A QUALIFIED OPPORTUNITY ZONE
THE HOLDING PERIODS
Opportunity Zones were created as part of the 2017 Tax Cuts and Jobs Act (a.k.a. tax reform). The idea behind these zones is to attract investment capital—specifically, capital gains—into “economically distressed” areas. In return for these investments, investors receive several tax benefits, which vary depending upon the time capital remains invested in a Qualified Opportunity Zone (QOZ).
In order to invest in a QOZ, investors must utilize a specific investment vehicle: a Qualified Opportunity Fund (QOF). To qualify for tax deferral benefits, investors must place capital gains into a QOF within 180 days of realizing the gain. Importantly, there is not a limit to the amount of capital gains that can be reinvested through a QOF.
The Former Taco Bell located at 3013 Salem Avenue in Dayton, OH benefits from its location within a Federal Opportunity Zone and offers investors significant potential tax savings.
$25,000 STARTING BID
O N L I N E A U C T I O NO
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© 2019 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful,
independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
Dayton has 17 census tracts designated as Opportunity Zones, they are divided into eight distinct geographies, each with its own compelling value proposition. Dayton’s Opportunity Zones were intentionally chosen to maximize proximity to catalytic assets, investments, and institutions that can enhance investment and economic potential.
DAYTON’S NORTHWEST OPPORTUNITY ZONE
THE N
ORTH
WEST O
Z
Census Tract: 39113000400, 39113000500
Dayton’s Opportunity Zone program supports, enhances, and re-commits the City to its market strengths as a logistics, education, healthcare, and manufacturing hub with healthy, active neighborhoods and residents who share in the community’s growing prosperity. Dayton leverages Public-Private Partnerships and its unique community assets, and the Opportunity Zone program builds on that momentum to drive innovation, entrepreneurship, and re-investment in its neighborhoods.
The Former Taco Bell on Salem Avenue is located within a cornerstone of Dayton’s healthcare community known as the Northwest Opportunity Zone. This Opportunity Zone features a 15-year, $65 million investment known as the “Phoenix Project” which has resulted in new housing, the opening of the Five Rivers Health Center and the Salem Avenue Gateway expansion. Invest in commercial or retail reuse along these major commuter corridors surrounded by densely populated neighborhoods. Or, invest in repositioning premier, sought-after housing stock close to a booming downtown.
There has been an explosion of investment in the area, particularly around the Good Samaritan Hospital site. The increase in medical-sector jobs here is supported by planned public infrastructure improvements. The recently completed Northwest branch library, the impending construction of the Hope Center, and the potential for re-purposing the site of the former Good Samaritan Hospital have lent these tight-knit neighborhoods a community and commercial vibrancy.
HOW QUALIFIED OPPORTUNITY ZONES IMPACT THE COMMERCIAL REAL ESTATE INDUSTRY
• Tax benefits that accompany Opportunity Zones (OZ) create a powerful incentive to allocate capital into economically distressed areas and in some cases, allow investors to defer taxes on realized gains and even reduce tax liability.
• If the OZ concept succeeds, its effects could be locally transformative for certain areas.
• More vibrant communities driving improved real estate fundamentals will create new investment opportunities.
• Time is of the essence for investors in order to fully take advantage of the program’s tax incentives.
3013 Salem Avenue
