16177 beaver road offering adelanto, ca 92301 …...financial summary: off-site management $ -$0 $0...

Offering Memorandum

16177 Beaver RoadAdelanto, CA 92301

Rosano Partners // Offering Memorandum 216177 Beaver Road, Adelanto, CA 92301

Table Of Contents

The information contained in the Marketing and Value Presentation is confidential, furnished solely for the purpose of a review by a prospective purchaser of the Property, and is not to be used for any other purpose or made available to any other person without the express written consent of the Seller or Advisor. Prospective purchasers should also conduct their own due diligence, including, but not limited to, engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property or used in the construction of maintenance of the building(s) at the Property.

Presented by:Korena EllisSenior AssociateInvestment Sales Group

BRE: 01430539

D: 213.802.0238M: 323.821.9441E: [email protected]

George CornelsonCultivation Specialist

E: [email protected]

Rosano PartnersLos Angeles Office700 S. Flower St, Suite 2526Los Angeles, CA 90017www.RosanoPartners.com

Property Overview...................... 3

Location Overview .................... 5

Sales Comparables ................. 9

Financial Analysis .................... 15

Demographics ..........................18

Rosano Partners // Offering Memorandum 3


Property Overview


• Zoned For Cultivation!• Manageable Sized Facility• Well-Maintained Property• Newer Construction • Security Fence• Paved with 10” Thick Asphalt• Flood Lights In Place

Property Overview / Financial Summary

Property Overview / Investment Highlights

Property Overview / Property Descriptions

Rosano Partners is proud to present a unique opportunity to acquire 3,850 SF building on 2.42 acres in Adelanto’s new Cultivation Zone. The property is fully paved with 10” thick asphalt. It is enclosed by a security fence, has floodlights, and an electrical capacity of 400 Amps at 120/208 Volts allowing for flexible lighting options. This property provides a specialized secure space to grow and can accommodate facility expansion.

Property Overview

CAP RATE

10.51%

GROSS BUILDING SF

3,850 SFLOT SF

2.42 ACRESELECTRICAL CAPACITY

400 AMPS at 208V

PRICE

$1,825,000

PRICE / SF

$474.03

LAND PRICE/SF

$17.31

YEAR BUILT

1992


Property Photos/ Interior


Property Floor Plan


Property Elevations



Location Overview


Location Overview / Map

The property is located in the Adelanto Cultivation Zone. The municipality of Adelanto has passed a cultivation ordinance, which has been in effect since May 25th 2016. It allows for indoor cultivation of Medical Marijuana. This is one of the few municipalities where you can currently grow medical marijuana legally. This is a rare and valuable opportunity to own a legal cultivation facility. Adelanto is in the county of San Bernardino and 9 miles North West of Victorville off of the Interstate 15.

Location Overview / Location Descriptions


Location Overview / Map

S


Location Overview / Aerial Map

S

BE

AV

ER

RO

AD

HOLLY ROAD



Sales Comparables


Sales Comparables / Overview

Price / LotS. No. Address Sale Price Price per RBA

S 16177 Beaver Rd. $1,825,000 $474.03

1 16585 Beaver Rd. $2,000,000 $120.12

2 9517 Cassia Rd. $2,700,000 $150.00

3 17178 Racoon Ave. $5,000,000 $416.67

4 10101 Yucca Rd $1,450,000 $241.67$474.03 $120.12 $150.00 $416.67

S

1 2

3

$232.12

A

$241.67

4

34

21

S


Sales Comparables / 01 16585 Beaver Rd., Adelanto, CA 92301

Sale Date 05/04/2016

Sale Price $2,000,000

Building SF 16,650 SF

Lot Acres 5.41 Acres

Building Price PSF

$120.12

Building Type Class B Industrial

Year Built 1995


Sales Comparables / 02 9517 Cassia Rd., Adelanto, CA 92301





Building Price PSF

$150

Building Type Class B Industrial

Year Built 1994


Sales Comparables / 03 17178 Racoon Ave., Adelanto, CA 92301




Lot Acres 4.8 Acres

Building Price PSF

$416.67

Building Type Class B Service Buidling

Year Built 2006


Sales Comparables / 04 10101 Yucca Rd., Adelanto, CA 92301





Building Price PSF

$241.67

Building Type Class C Warehouse

Year Built 1992



Financial Analysis


Financial Analysis / Setup

Offering Price: $1,825,000 Current Pro FormaDown Payment: 60% $1,095,000 Scheduled Gross Income: $196,350 $254,100

Vacant Space at Market Rent: $0 $0Current Cap: 10.51% Expense Reimbursements: $26,900 $26,900Pro Forma Cap: 13.62% Other income / Percentage Rent: $0 $0

Price / Bldg sq/ft: $474.03 Gross Potential Income: $223,250 $281,000

$17.31 Vacancy Allowance: ($4,465) 2.0% ($5,620) 2.0%Effective Gross Income: $218,785 $275,380Less Expenses: ($26,900) ($26,900)

Net Operating Income: $191,885 87.7% $248,480 90.2% *Less Loan Payments: ($64,278) ($64,278)

Cash Flow/CoC Return: $127,607 11.65% $184,202 16.82% **

First Yr Principal Reduction: $6,098 $6,098

Total Return Before Taxes: $133,705 12.21% $190,300 17.38% **

Leasable Area (sq/ft): 3,850 NOTES: * As a percent of Effective Gross Income. ** As a percent of Down Payment.105,415

1992

Bank 5,455 SF Pet Hosp 2,200 SF Current Pro FormaTaxes 1.20% $21,900 $21,900

Loan Amount: $730,000 Insurance 1.30$ $5,000 $5,000Terms (Years): 30 Utilities -$ $0 $0Interest Rate: 8.00% Landscaping -$ $0 $0Monthly Payment: ($5,356) Maintenance/Repairs -$ $0 $0Yearly Payment: ($64,278) Garbage -$ $0 $0Financial Summary: Off-Site Management -$ $0 $0

Total Expenses $26,900 $26,900Monthly/SF $0.58 $0.58

Financial Analysis16177 Beaver Rd

Adelanto, CA 92301

Annualized Operating Data

Annualized Expenses

Price / Land sq/ft:

Deal Notes

This information has been secured from sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify all information.

Property Amperage 400 amps

Pricing Summary

Please Contact Rosano Partners for more information at 213.802.0300

Property Description

Lot Size (sq/ft):Year Built:

Financing


Financial Analysis / Rent Roll

Approx. Lease Lease Current Market MarketRentable % of Commence Expiration Current Rent / Lease Proforma Rent /

Suite Tenants Sq. Ft. Prop (Mo/Yr) (Mo/Yr) Rent SqFt Type Rent* SqFtA Cultivation Facility 3,850 100% TBD TBD $16,363 $4.25 NNN $21,175 $5.50

TOTALS: 3,850 100% $16,363 $0 $21,175

Vacant 0.0% $16,363 $21,175

Occupied 100.0% $196,350 $254,100

Current Dollar Vacancy: $0

% Vacancy from Total Rent: 0.0%

RENT ROLL16177 Beaver Rd

Adelanto, CA 92301

Total Monthly Rent:

Total Annual Rent:

This information deemed to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risks



Demographics


Demographics / Market Comparison Report

-‐3.09%

2.13%

3.93%3.64%

-‐4.00%

-‐3.00%

-‐2.00%

-‐1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

2010 -‐ 2015 2015 -‐ 2020

Population Growth

1 Mile

County

-‐5.56%

0.00%

4.01% 3.68%

-‐8.00%

-‐6.00%

-‐4.00%

-‐2.00%

0.00%

2.00%

4.00%

6.00%

2010 -‐ 2015 2015 -‐ 2020

Household Growth

1 Mile

County



$25,833

$54,043

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

1 Mile County

2015 Med Household Inc

1 Mile

County

31

33

30

30.5

31

31.5

32

32.5

33

33.5

1 Mile County

2015 Med Age

1 Mile

County



47.06%

41.18%

5.88% 6.00%

0.00% 0.00% 0.00% 0.00%

22.61% 24.18%

18.43%

13.00%9.00%

5.00% 4.55% 3.60%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

<$25K $25K -‐ $50K $50K -‐ $75K $75K -‐ $100K $100K -‐ $125K $125K -‐ $150K $150K -‐ $200K $200K +

2015 Households by Household Income

1 Mile

County

74.47%

17.02%

2.13% 2.13% 1.06% 3.19%

77.50%

9.54%2.04%

7.10%0.46% 3.35%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other

2015 Population by Race

1 Mile

County



2014 Employed vs Unemployed

2014 Renter vs Owner

91.49%

8.51%

County

Employed

Unemployed

82.61%

17.39%

1 Mile

Employed

Unemployed

35.29%

64.71%

1 Mile

Rent

Own

37.61%

62.39%

County

Rent

Own

The information contained in this presentation is confidential, furnished solely for the purpose of a review by a prospective purchaser of the Property, and is not to be used for any other purpose or made available to any other person without the express written consent of the Seller or Advisor. Prospective purchasers should also conduct their own due diligence, including, but not limited to, engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property or used in the construction of maintenance of the building(s) at the Property.

Presented by:Korena EllisSenior AssociateInvestment Sales Group

BRE: 01430539

D: 213.802.0238M: 323.821.9441E: [email protected]

George CornelsonCultivation Specialist

E: [email protected]

Rosano PartnersLos Angeles Office700 S. Flower St, Suite 2526Los Angeles, CA 90017www.RosanoPartners.com

16177 beaver road offering adelanto, ca 92301 …...financial summary: off-site management $ -$0 $0...

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