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Located in thedynamic SaLt Lakecounty area
major,nationaLtenancieS
FreewayViSibLe,ProminentSiGnaGe
WASATCH 16
WASATCH 16 Capital Markets | Private Capital Groupoffg m | jl 2012SaLt Lake county area | utah78,978 rSF
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caPit
aLmarketSexPertS
el mlls
Senior Vice President
801.869.8029
t w
Senior Associate
801.869.8034
LocaLoFFicemarketexP
ertS
b jsFirst Vice President
801.869.8019
V Gls
First Vice President
801.869.8021
WASATCH 16
debt&equityFinancinG
t S
Vice President
801.869.8013
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Executive Summary
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theoFFerinG
CBRE, as exclusive advisor, is pleased to present the opportunity to acquire
the fee simple interest in the Class A multi-tenant ofce building known
as Wasatch Corporate Center 16 (Wasatch 16). Wasatch 16 is prominently
located on Interstate 15 in the Draper submarket of the Greater Salt Lake
City Ofce Market. The property has the highest parking ratio of any class A
building in the submarket and long term tenants that have a high probability ofrenewal in the future. The property is 92% leased to three national tenants.
This opportunity is being offered unpriced and on an as-is basis for the fee
interest in the building and the land there under.
oFFerin
GSummary
blg: Wasatch Corporate Center 16
ass: 121 West Election Road
Salt Lake City, Utah
rl a: 78,978 RSF
tpl Fl Pl: 26,000 RSF
y bl: 2007
op: 92%
Ss: 3
S a: 6.14(or 6.49) acres
Pg r: 6.45/1,000 RSF
offg P: Submit Price
i-Pl noi: $1,317,012
tenantS
t Ls ep Ls SF % f Pp
t-ml Oct 31, 2014* 20,639 26%
a is f Sl L Aug 31, 2017 39,811 51%
ags uvs** Aug 31, 2017 12,169 15%
tl op Sp 72,349 92%
* T-Mobile has the right to extend their lease to 2017, 2018 or 2019 until July 31, 2012.
The rent would be reduced to $22 PSF in the event the extension option is taken.
** Argosy University is under the same lease as Art Institute of Salt Lake, both schools are
a part of and the lease is guaranteed by Education Management LLC, a Delaware limited
liability company which had over $2.8 billion in annual sales in 2011. The company is traded
on the NASDQ under the ticker symbol EDMC.
Wasatch 16 | Draper | Utah4
executiVe Summary
The Offering | Offering Summary | Tenants | Investment Highlights | Local Maps | Area Description | Why Wasatch 16
Wasatch 16 | Draper | Utah4
ExEcutivE Summary AreA Overview ProPerty DescriPtion Tenancy FinancialsMarket Overview
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executiVe Summary
inVeStment
hiGhLiGhtS
Hih ima istitutiay d ad maitaid Cass A clg: Wasatch 16 is a high image well maintained property designedand built by CarrAmerica. The property has always been institutionallyowned and maintained to high institutional standards.
nl c ts:The Salt Lake Art Institute and Argosy Universityare a part of Education Management LLC (EDMC). NASDAQ: EDMC is one ofthe largest most diverse proprietary post-secondary education companies inthe U.S. EDMC has a 40 year operating history and a BB- S&P credit rating asof June 2012. In 2011 EDMC had strong sales of $2.89 billion and net incomeof $229.5 million. T-Mobile is a part of Telekom giant Deutsche Telekom (DT)headquartered in Germany. As of December 2011 DT had 236,000 employeeswith annual revenues of $73.3 billion and free cash ow of $7.9 billion.
Ssl ls g f sg s: The Art Institute andArgosy University both have a 5 year term remaining. T-Mobiles lease expires10/31/14. T-Mobile has the option to extend its lease expiration to 10/17, 10/18or 10/19. It has until 7/31/12 to exercise the lease extension and indicate oneof the expiration dates shown above or lose the reduced rate negotiated.
P f vsl ll f ss: Wasatch 16 hasexceptional visibility and signage on Interstate 15. Few of the buildings in the competitiveset have freeway visibility. None have the presence or visibility of Wasatch 16. TheSalt Lake Art Institute is presently planning to install a digital monitor on its existinglandmark sign to take advantage of the freeway visibility of the property. The visibilityand signage of the building on Interstate 15 gives Wasatch 16 a competitive advantageover other buildings. Approximately 142,000 cars pass by the property on I-15 per day.
Hihst paki ati cass A c uidis i Suth T/dp ss: Wasatch 16 has a parking ratio of 6.45/1,000rentable square feet. The property has the highest parking ratio of allclass A buildings in the Sandy South Towne & Draper submarkets.
hg pl f l f sg s plvsl, pg sg tis vs s: There is a high
likelihood of renewal from each of the tenants for the following reasons:
Sl L a is: Has 8/1,000 parking ratio, building signage,freeway sign which is soon to have a color monitor, signicantTI investment by tenant, costly relocation expense.
ags: 5.6/1,000 parking ratio, building signage, signicant TI, owned bythe same company as Salt Lake Art Institute, costly relocation expense.
t-ml: 5.0/1,000 parking ratio, limited number of opportunities forfreeway signage.
Sg Fls hg P G r: The Salt LakeOfce Market is projected by CBRE Econometric Advisors (formerly TortoWheaton) to experience an average annual growth rate of 4.8% over the next 5
years. The Draper submarket which Wasatch 16 is located within is projectedto experience an average annual rental growth rate of 5.38% over the next5 years. Pollina Corporate recently ranked Utah as having the #1 EconomicClimate in the U.S. Utah had the second fastest growing U.S. economy with3.5% growth annually over the past 5 years, verses the 1% national average.
Sg l f p : Wasatch 16 is a strong campus for theSalt Lake Art Institute. In 2010 the campus won the Platinum Award for mid andsmall sized markets within the school. This award is given to the campus that hasstrong enrollment and excellence in client satisfaction. Wasatch 16 is also a stronglocation for Argosy University. The two schools combined had a total enrollmentof over 1,000 students in May 2012. The location of the property is ideal as abase for both schools in Utah. As time continues they plan to expand into otherparts of Utah with Wasatch 16 as the base location. There is a high likelihood thatboth schools continue to occupy the property for many years to come. Once astrong location like Wasatch 16 is established they typically stay several years.
n sg pp: There is no existing debt on property,providing an investor with the opportunity to take advantage of theaggressive debt available on the market. Terms as favorable as 75% LTV,30 year amortization, 10 year call and 4.9% for non recourse debt hasbeen quoted for the property. For additional information on available debtspeak with Trent Snarr of CBRE Debt and Equity Finance Group.
P epls c L u: Many premier companies arelocating for the rst time or expanding their footprint in Utah. Salt Lake is hometo Goldman Sachs second largest ofce in the Americas, which is projected tobecome its fourth largest globally. Goldman Sachs Managing Director, David Langsaid, Weve had a history of success here in Salt Lake City. We hire fabulous
Wasatch 16 | Draper | Utah 5
The Offering | Offering Summary | Tenants | Investment Highlights | Local Maps | Area Description | Why Wasatch 16
AreA Overview Market Overview Financials
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executiVe Summary
Wasatch 16 is located towards the south
end of Salt Lake County in Draper City which
is a part of the Sale Lake Metro area. The
location of Wasatch 16 is strategically located
to pull from the population, employers and
students of both Salt Lake and Utah counties.The south end of Salt Lake County and
the north end of Utah county is becoming
the high tech hub in Salt Lake.
Following are some of the larger high tech
companies that are in or about to locate
within the area. Adobe is currently building
a campus in the area. When completely
built out it is projected to be Adobes largest
facility besides their headquarters in San
Jose. Ebay is underway on a new 30 acre
campus to facilitate its continuing growthin Salt Lake. Exactware is close to nalizing
a new lease to relocate its headquarters.
Twitter is building a new data center in the
area and Microsoft has a presence as well.
I/M Flash, an Intel/Micron joint venture has a
facilty of over 1,000,000 square feet where
it manufactures NAND Flash memory. The
National Security Association is building
a 1,000,000 square foot data center. It
will be the biggest of its kind in the U.S.
when it opens in 2013. There are many
other tech companies that are now located
within or looking to enter into the south
Salt Lake County-north Utah County area.
The location of Wasatch 16 is in a
well established ofce market with
strong growth potential as well.
areadeS
criPtion
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The Offering | Offering Summary | Tenants | Investment Highlights | Local Maps | Area Description | Why Wasatch 16
Wasatch 16 | Salt Lake County Area | Utah 7
AreA Overview FinancialsExEcutivE Summary TenancyMarket OverviewProPerty DescriPtion
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Wasatch 16 | Draper | Utah8
whywaS
atch16
F ts:
Highest parking ratio of Class A
ofce buildings in the submarket
Most prominent freeway visibility
in competitive building set Well located between two
freeway on/off ramps
Surrounded by retail services
Access to Salt Lake County and
Northern Utah County employees
Desirable location for employees
F ivss:
Long term leases with The Art
Institute and Argosy University
Scheduled rent increases
Salt Lake Ofce Market is projected
to have one of the highest rent
growth rates in the U.S.
High likelihood of renewal
from existing tenants due to
tenant invested capital in the
property, high moving costs
and difculty of replacing
freeway visibility and parking
Existing tenants are leaders
in their respective elds
Competitive advantage due to
parking ratio and freeway visibility
Wasatch 16 | Draper | Utah8
The Offering | Offering Summary | Tenants | Investment Highlights | Local Maps | Area Description | Why Wasatch 16
executiVe Summary AreA Overview FinancialsExEcutivE Summary ProPerty DescriPtion Market Overview Tenancy
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Area Overview
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Ppuati/Dmaphics
State of Utah Total Population: 2,763,885 (2010 Census)
Median Age is 29.1 - National Median age is 37.1
(Utah has the lowest median age in the U.S.)
90% of citizens have at least a high school
degree - National Average is 86.5%
65% of the population have college experience
28% of citizens have earned a Bachelors degree - National Average is 26.7%
Over 2,000,000 people, 75.9% of the States population, lives along the
Wasatch Front in a four county geographic area surrounding Salt Lake City.
area oVerViewexecutiVe Summary
Wasatch 16 | Draper | Utah10
State of Utah/Greater Salt Lake Area | Amenities Map
TenancyMarket OverviewProPerty DescriPtion FinancialsAreA OverviewExEcutivE Summary
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The state of Utah has become known for its dynamic economic
climate, well run state government, young highly educated
work force and business friendly environment.
Utahs economic performance is impressive on many levels and speaks to the
States ability to compete in global markets and attract new business during a
time of economic turmoil. The Salt Lake Chamber of Commerce reported, thatUtah was the only state in the U.S. to double exports during the last 5 years. The
following companies have recently expanded within or entered Utah: Adobe,
Ebay, Electronics Arts, Goldman Sachs, Fidelity and Twitter to name a few.
e a dls: The economic outlook for the state of Utah looks
promising. Utah continues to receive accolades from analysts and employers alike.
Below are some statistics and recent accolades:
e
Second fastest growing U.S. economy 3.5% annually over the past 5 years,
versus 1% national average
Fourth fastest rate of job growth - 1.5% annually over the past 5 years
Second fastest rate of job creation in the U.S. in 2011
Fastest growth of household incomes in the U.S. - 5% per year versus
2.6% nationally
Ranked #1 for business and careers in 2010 & 2011 by Forbes Magazine
Ranked #1 economic climate in 2010 by Pollina Corporate
Ranked Best State for Fiscal Health by Robert Novy-Marx of the
University of Chicago
The University of Utah is #1 nationally for company start-ups, bumping MIT to#2, and using one third of the funding according to a 2010 AUTM survey
Ranked #1 for Business Climate (Business Facilities) and Economic
Dynamism by Kauffman Foundation
Goldman Sachs CAO, Jeff Schroeder said, We are in a hundred cities around
the world and roughly 29 or 30 countries; Salt Lake has the fastest growth rate.
epl
Utahs labor force is characterized by high employment, low average wages
and workers who are younger and more educated than the national average.
During the 12 months ending in December 2011, the Bureau of Labor
Statistics reported job growth across all sectors of 3.6% in the Salt Lakemetro. Sectors related to ofce demand were particularly strong with
nancial services growing at 2.7% and professional and business services
expanding by 5.2% over the same period. The national job growth rate for
all sectors grew by 1.4% during the same time period. As of April 2012
Utahs unemployment rate is 6.0%, the U.S. unemployment rate is 8.1%.
CBRE Econometric Advisors projects that overall employment growth in
the Salt Lake area will average 3.4% annually from 2011-2015, while the
U.S. average employment growth is projected to be 1.8% annually over
that same time period.
CBRE Econometric Advisors projects that ofce employment growth will
average 4.1% per year from 2011-2016.
Utah is one of 22 U.S. states operating under a right-to-work law.
Union membership is low in Utah, with only about 6% of manufacturing
employees afliating with unions, compared to a national average of
about 12%.
According to the Utah Technology Council there are over 6,600 high tech
and life science companies located in Utah.
STATeof
uTAH/greATerSAlTlAkeAreA
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State of Utah/Greater Salt Lake Area | Amenities Map
ProPerty DescriPtion Market Overview TenancyAreA OverviewExEcutivE Summary Financials
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Sl tp epls G Sl L a
Adobe Systems CR England Trucking
Kennecott Utah Copper L3 Communications
CHG Healthcare Services American Express
Fidelity Merit Medical SystemsDelta Airlines Overstock.com
Discover Card Skywest Airlines
Ebay University of Utah (including hospitals)
Arup Laboratories Verizon Wireless
Goldman Sachs Zions First National Bank
Intermountain Health Care Internal Revenue Service
ATK Thiokol Convergys
Brigham Young University Wells Fargo Bank
Autoliv ASP (Motton Ints) Rocky Mountain Power
Energy Solutions Jetblue AirlinesHill Air Force Base The Church of Jesus Christ
of Latter-Day Saints
Source: Utah Department of Workforce Services
L
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State of Utah/Greater Salt Lake Area | Amenities Map
TenancyMarket OverviewProPerty DescriPtionAreA OverviewExEcutivE Summary Financials
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tsp
The Salt Lake area, or Wasatch Front, is known as the Crossroads of the
West, and is located equal distances from all major western markets.
Interstate 80, Interstate 15, Route 215 and Interstate 70 are vital to the
efcient movement of goods and materials throughout the region.
The Salt Lake City International Airport serves more than 21.5 million
passengers annually and is ranked among the top 25 largest airports in the
country. Thirteen airlines y into Salt Lake City International Airport.
The Salt Lake International Airport, situated approximately ve miles northwest
of downtown Salt Lake City, is located within a 2.5-hour ight of more than half
the population in the U.S. This has attracted many companies to Utah from other
close by more expensive markets.
Utah has approximately 1,700 miles of rail road track.
Salt Lake City is the western most point from which all west coast cities can
be served directly by rail without backtracking, with second-morning service to
approximately 90% of the Western U.S.
All rail lines converge in the Salt Lake City-Ogden metropolitan area. Utah is an
excellent interline switching route for west coast shipments and for eastern
and mid western terminals without having to back haul shipments. The merged
Southern Pacic and Union Pacic provide freight service in and through Utah.
Amtrak provides daily passenger service from Salt Lake City to and from points
throughout the United States.
With a 1,400 square mile service area spanning six counties, Utah Transit
Authority (UTA) provides public transit (bus, Trax light rail and the new Front
Runner commuter rail) to 75% of Utahs population and some of the states
largest communities including Salt Lake, Ogden, Provo, and Tooele.
Sl L c il ap udot F
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State of Utah/Greater Salt Lake Area | Amenities Map
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Property Description
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ass
121 West Election Road
Draper, Utah 84020
aPn
2725227003
2725276004
S a
6.14
Pg
509 stalls (6.45/1,000)
ds w
Draper City
el
Rocky Mountain Power
S
South Valley Reclamation District
S dg
Draper City
nl Gs
Questar
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Y
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SitedeSc
riPtion
Wasatch 16 | Draper | Utah16
ProPerty deScriPtionProPerty deScriPtion
Site Description | Build ing Description | F loor Plans
Wasatch 16 | Draper | Utah16
ProPerty deScriPtion
Site Description | Build ing Description | F loor Plans
TenancyMarket OverviewAreA OverviewExEcutivE Summary FinancialsProPerty DescriPtion
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y bl
2007
Ss
3
dvlp
CarrAmerica
as
HFS Architects
Gss blg a
82,396 SF
rl blg a
78,979 SF
usl blg a
69,938 SF
L F
12.9%
Fp
25,664 26,806
cs
Steel frame with concrete lledmetal decking, EFIS exterior, 1
insulated high performance low
reective tinted glass. Built to
the State of Utah Energy code.
clg hg
Floor to oor heights are 14 6.
Floor to ceiling heights are 10. Two
story lobby at main entrance.
rf
EPDM System, 15 year warranty
beginning November 1, 2006.
L Fs
Granite and marble tileooring, marble and wood-
paneled walls, wood paneled
ceilings, carpeted ooring
hVac
270 tons capacity provided by three
(3) 90 ton roof top units. Packaged
VAV units with variable speed drives.
cl Sss
Direct Digital Control energy
management and environmental
controls with individual zone
control and after hours exibility.
ectica/lihti
2,500-amp, 480/277-volt,
3-phase, 4-wire service with
step down transformers
elvs
Two (2) hydraulic elevators with
3,500 lb capacity, 150ft/minute speed
fi/li Saty
Wet sprinkler system 100% coverage
buiLdinGdeScriPtion
Wasatch 16 | Draper | Utah 17
Site Description | Building Description | Floor Plans
ProPerty deScriPtionProPerty deScriPtionProPerty deScriPtion Market Overview TenancyAreA OverviewExEcutivE Summary FinancialsProPerty DescriPtion
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Wasatch 16 | Draper | Utah18
Site Description | Build ing Description | F loor Plans
ProPerty deScriPtionProPerty deScriPtionProPerty deScriPtion
2 Fl 3 Fl
1s Fl
Suite 110
Vacant4,590 SF
Suite 140
Vacant2,039 SF
T-Mobile
T-Mobile
Art Institute of
Salt Lake City
Art Institute ofSalt Lake City
ArgosyUniversity
FLoorPLa
nS
L elvators
S Lvl Lg
TenancyMarket OverviewAreA OverviewExEcutivE Summary FinancialsProPerty DescriPtion
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Market Overview
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gat Sat lak oc Makt
Base: 30,700,000 Square Feet
Overall Vacancy: 15.5%
Class A Suburban Vacancy: 6.36%
Average Asking Lease Rate: $19.29
Net Absorption 2011: 652,381
Net Absorption Q1 2012: 100,491
Under Construction: 481,500
Sdp S
Overall Base: 5,748,503
Overall Vacancy: 10.6%
Average Lease Rate: $20.24
Class A Base: 2,365,678 SF
Class A Vacancy: 4.7%
Average Asking Class A Lease Rate: $23.26
Net Absorption 2011: 134,747
Net Absorption Q1 2012: 76,160
Under Construction: 144,000
SaLtLake
oFFicemarketoVerView
SouTHTo
wne/DrAPerSubMArkeTSo
verview
Sat lak oc Makt
Salt Lakes ofce market is largely concentrated in the downtown area to the
north and the SandyDraper area to the south. Over 50% of the 30,700,000
square feet of ofce space that CBRE tracks in Salt Lake County is within the
four submarkets which encompass the area previously mentioned.
Downtown is near the state capitol and is the home to established nancial,
professional and business services rms, which boast a wide geographic
reach. Large ofce users downtown include Zions Bank, The Church of Jesus
Christ of Latter-Day Saints, Wells Fargo, Fidelity, Goldman Sachs, Questar
Gas and Kirton McConkie.
Sdp Ss
The SandyDraper area is on the southern end of the Salt Lake Ofce Market
and is the northern end of a developing tech corridor, which extends south
into part of Utah County. The tech corridor is home to ofces of recognizable
tech rms such as Adobe, Ebay, Microsoft, Oracle and I/M Flash (Intel &
Micron) in addition to many other smaller tech companies and promisingstartups. The emergence of the area as a developing tech center is enhancing
job growth and consequently, ofce demand.
The location of submarket allows employers, businesses and educators
such as The Art Institute of Salt Lake and Argosy University to pull from the
population of both Salt Lake and Utah counties.
As shown on tables, the submarket has a lower overall vacancy and Class A
vacancy than the market.
Wasatch 16 | Draper | Utah20
market oVerView
Salt Lake Ofce Market Overview | SandyDraper Submarkets Overview | Competitive Building Set | Comparable Sales
market oVerView TenancyProPerty DescriPtionAreA OverviewExEcutivE Summary FinancialsMarket Overview
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FT UNIONFT UNIONFT UNIONFT UNIONFT UNIONFT UNIONFT UNIONFT UNIONFT UNION
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MURRAYMURRAYMURRAYMURRAYMURRAYMURRAYMURRAYMURRAYMURRAY
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HERRIMANHERRIMANHERRIMANHERRIMANHERRIMANHERRIMANHERRIMANHERRIMANHERRIMAN
RIVERTONRIVERTONRIVERTONRIVERTONRIVERTONRIVERTONRIVERTONRIVERTONRIVERTON
BLUFFDALEBLUFFDALEBLUFFDALEBLUFFDALEBLUFFDALEBLUFFDALEBLUFFDALEBLUFFDALEBLUFFDALE
EASTEASTEASTEASTEASTEASTEASTEASTEAST
MILLCREEKMILLCREEKMILLCREEKMILLCREEKMILLCREEKMILLCREEKMILLCREEKMILLCREEKMILLCREEK
SOUTHSOUTHSOUTHSOUTHSOUTHSOUTHSOUTHSOUTHSOUTH
SALTSALTSALTSALTSALTSALTSALTSALTSALT
LAKELAKELAKELAKELAKELAKELAKELAKELAKE
SALT LAKE CITYSALT LAKE CITYSALT LAKE CITYSALT LAKE CITYSALT LAKE CITYSALT LAKE CITYSALT LAKE CITYSALT LAKE CITYSALT LAKE CITY
Salt Lake City #2Salt Lake City #2Salt Lake City #2Salt Lake City #2Salt Lake City #2Salt Lake City #2Salt Lake City #2Salt Lake City #2Salt Lake City #2
W 13400 S
SOUTH JORDAN PKWY
WASATCH
BLVD
11400 S
W 14600 S
STATE
HWY111
NEWBIN
GHAM
HWY
OLDB
INGHAM
HWY
E 12300 S
TEM
PLEDR
W 9000 S
3200W
RED
WOODRD
BANGERTERHWY
BENNION BLVD
W 3500 S
4800W
FT UNION BLVD
CREEKRD
E 6200 S
E 5600 S
V.WINKLE
EXPY
E 4500 S
S1300E
S700E
E 9400 S
W 7000 S
W 7800 S
7THWEST
REDWOODRD
BANGERTER HWY
W 600 N
W 100 N
5600W
W 3100 S
S 5600 W
E 21ST S
W 11800 S
W 12600 S
E 3900 S
HIGHLANDDR
1300E
E 3300 S
17TH S
E 13TH S
SOUTH TEMPLE ST
E 8TH S
FOOTH
ILLDR
STATEST
SALT LAKE CITYSALT LAKE CITYSALT LAKE CITYSALT LAKE CITYSALT LAKE CITYSALT LAKE CITYSALT LAKE CITYSALT LAKE CITYSALT LAKE CITYINTL AirportINTL AirportINTL AirportINTL AirportINTL AirportINTL AirportINTL AirportINTL AirportINTL Airport
Submarket Building SF
TotalAvailability
%YTD
AbsorptionTotal
Vacancy %Avg LeaseRate (FSG)
UnderConstruction
(SF)*
Airport/
International Ctr
1 ,276 ,185 131 ,154 142 ,810 10 .0% $16 .56 -
CentralBusiness District
6 ,889 ,529 1 ,524 ,370 166 ,720 16 .3% $22 .30 -
CBD/Periphery 3,416,440 712,454 (27,674) 14.7% $16.74 103,540
West ValleyLake Park
1 ,892 ,357 489 ,337 5 ,653 25.0% $16 .68 -
Resear ch Park 1,130,364 23,950 13,993 1.5% $23.96 -
Interchange 701,693 66,525 36,632 9.3% $11.11 -
Sugarhouse 472,744 46,010 (18,327) 9.0% $19.75 -
Fo ot hi ll C or rid or 2 43 ,3 56 2 4, 72 4 2 0, 71 9 10 .2 % $ 16. 88 -
Central Valley 2,244,009 554,155 (29,264) 20.7% $18.46 -
CentralValley East
2 ,468 ,077 640 ,906 46,381 22 .9% $16 .28 -
Union ParkDistrict
2 ,084 ,960 404 ,898 81,659 19 .9% $18 .68 -
Cotto nwoo d 1,853,730 152,583 63,332 6.6% $24.53 234,000
SandySouth Towne
4 ,257 ,678 599 ,394 80,524 13 .1% $20 .14 -
So ut hw es t Va ll ey 1 80 ,0 00 - - 1 5, 00 0 - $ 23. 50 -
Draper 1,597,805 230,299 54,223 11.5% $18.09 144,000
Totals 30,708,927 5,600,759 652,381 15.3% $19.12 481,540
* Multi-tenant over 20,000 SF
SaLtLake
oFFicemarketoVerView
wasatch 16 is catd ithi th Suth T/Dap Sumakts oc Sumakt Map
Wasatch 16
Wasatch 16 | Draper | Utah 21
Salt Lake Ofce Market Overview | SandyDraper Submarkets Overview | Competitive Building Set | Comparable Sales
market oVerViewmarket oVerViewProPerty DescriPtion TenancyAreA OverviewExEcutivE Summary FinancialsMarket Overview
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Suth T/Dap Cass A Cmptitiv St
ws 16Sl L c, ut
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j csS, ut
j Gcp. c a
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wscps
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n. fFls nra (SF) % Ls
asg rl rPSf/M.
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ws 16121 W. Election Rd., Salt Lake City, UT
2007 3 78,978 92% $21.75 Yes 6.5/1000 T-Mobile, Art Institute, Argosy
b f rls9661 S. Monroe St., Sandy, UT
2007 5 105,300 100% $22.00 - 23.00/SF FSG Yes 4.66/1000 Salt Lake Board of Realtors
j cs9350 S. 150 E., Sandy, UT
1999 10 248,790 96.5% $22.00 - 23.00/SF FSG No 5/1000 Oracle, Larry H. Miller companies
j G cp. c a10225 S. Jordan Gateway, South Jordan, UT
2008 4 72,782 96% $21.00/SF FSG Yes 4/1000 University of Phoenix, Parsons
L P c11747 S. Lone Peak Parkway, Draper, UT
2007 3 87,785 75% $21.50/SF FSG No 5/1000 EMC
rvp i-xiVRiverfront Parkway, South Jordan, UT
2001-2010 3-6 1,272,203 96% $22.50 - $24.50/SF FSG No 4 - 5/1000 Boart Longyear
S P c 19815 S. Monroe St., Sandy, UT
2007 5 129,238 92% $22.00/SF FSG Yes 5/1000 Strayer University, Humana
S t cp. c. 1&2Civic Center Dr., Sandy, UT 2000/2006 6 247,980 95% $23.00/SF FSG Yes 4.5 - 5/1000 Secure Alert
t P i & ii15 W. Scenic Pointe Dr., Draper, UT
2008/2012 4 210,000 46% $22.85/SF FSG No 4.5/1000 Blue Coat, Health Equity
ws cps F blg.100 W. Townridge Parkway, Sandy, UT
2010 6 160,000 100% $24.00/SF FSG No 5/1000 Workers Compensation Fund, WG Bradley
1
2
3
4
5
6
7
8
9
1 2 3 4 5 6 7 8 9
* For properties with NNN leases a $7.00 PSF operating expense was assumed to convert to an FSG lease.
comPetitiVebuiLdinGSet
Wasatch 16 | Draper | Utah22
Salt Lake Ofce Market Overview | SandyDraper Submarkets Overview | Competitive Building Set | Comparable Sales
market oVerViewmarket oVerView TenancyProPerty DescriPtionAreA OverviewExEcutivE Summary FinancialsMarket Overview
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Competitive Set
Wasatch 16 | Draper | Utah 23
Salt Lake Ofce Market Overview | SandyDraper Submarkets Overview | Competitive Building Set | Comparable Sales
market oVerViewmarket oVerViewProPerty DescriPtion TenancyAreA OverviewExEcutivE Summary FinancialsMarket Overview
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nv Sa/lasackPv, ut
Sl L hSl L c, ut
3098 ev PL, ut
blg Sz Sl PP P
Sq F cp r d f Sl cs
nv Sa/lasackNEC of South University Ave. & East 1860South, Provo, UT
405,699 $83,168,000 $205 7.8% May 31, 2012
Novell signed a 12 year sale/leaseback at the timethe transaction occurred. Commonwealth Partnerspurchased the asset.
cps ws 16: The Novell Building is also a class A building. It is also located on the freeway and has excellent visib ility. The property is located 30 minutes to the south of Wasatch 16 on the far end ofUtah County outside of the Salt Lake market.
Sl L h155 North 400 West, Salt Lake City, UT
202,972 $30,262,000 $149 7.68% May 2012Purchased by KBS out of California, it was purchasedby their REIT for long term cash ow.
cps ws 16: The Salt Lake Hardware Building is a class B building built in 1909 and renovated in 1996. It has a 3.8/1000 parking ratio and is located in the periphery of the Salt Lake CBD. It is a uniquebuilding that tenants really enjoy. It doesnt demand the same price per square foot of Wasatch 16 because of age, class, location and visibility.
3098 ev P3098 North Executive Parkway, Lehi, UT
61,728 $9,210,009 $149 8.00% March 8, 2011
Xango was the seller. It signed a 10 year master lease.The buyer was a local investor that was in a 1031exchange due to a sale of their business.
cps ws 16: 3098 Executive Parkway is a class B building located within Utah county at Thanksgiving Point. The property was built in 1998. It doesnt demand the same price per square foot of Wasatch16 because of age, location, class and visibility.
comParabLeSaLeS
Wasatch 16 | Draper | Utah24
Salt Lake Ofce Market Overview | SandyDraper Submarkets Overview | Competitive Building Set | Comparable Sales
market oVerViewmarket oVerView TenancyProPerty DescriPtionAreA OverviewExEcutivE Summary FinancialsMarket Overview
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Tenancy
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e mg cp
www.edmc.edu/
The Art Institute of Salt Lake and
Argosy University are subsidiaries of
Education Management Corporation
(EDMC). Incorporated in 1962,
EDMC is publicly traded on the
NASDAQ under the symbol EDMC
and is also on the lease as an additional
guarantor. As a nationwide company
with a market capitalization of $1.16
billion and stockholder equity in excess
of $1.69 billion as of 5/18/12, it is
a leader in providing private post-
secondary education in North America.
As of the scal year ended June 30,
2011, the company had 109 primary
campus locations in 32 states and
Canada. Headquartered in Pittsburgh,
Pennsylvania, EDMC employs over
20,000 full-time, part-time and
adjunct faculty and staff, and serves
approximately 151,200 students as
of October 2011. EDMC is currentlyrated as BB- by Standard and Poors.
EDMCs strategies for growth include
adding new campuses and expanding
its academic offerings, including
its online and blended programs.
In 2011 the company opened four
new locations, developed 16 new
academic programs, and offered
more than 350 new or existing
academic programs to locations
that previously had not provided
such programs. EDMC also makes
capital investments in technology,
human resources, and upgrading its
facilities, including its infrastructure
and student interfaces and support
systems, to attract future students.
Fiscal 2011 was a strong year for
EDMC. The company had sales of
$2.89 billion, net income of $229.5
million, and earnings per share of
$1.67. The company saw signicant
growth over the year, as the 2011
sales, net income, and earnings per
share gures were 15.11%, 36.20%,
and 35.8% greater than those in 2010,
respectively. Average enrollment
growth at its schools in 2011 increasedby 14.3% compared to 2010, also a
positive sign for the company. Over
the past 3 scal years, net income
has grown for EDMC by 51.5%,
about double the industry 3-year
growth median of 25.8% growth
over 3 years, according to Hoovers.
On March 30, 2012, EDMC completed
a renancing of $348.6 million of its
$1.1 billion term loan that was due
to expire in June 2013 by replacingthe expiring debt with $350.0 million
of new term debt under the same
credit agreement. The new term
loan, which was issued with an
original issue discount at 97.0%,
matures in March 2018 and accrues
interest at a rate equal to the higher
of LIBOR or 1.25%, plus a margin
of 7.0%. The Company recorded a
loss on extinguishment of debt of
$9.5 million during the third scal
quarter as a result of the renancing.
For the twelve months ending June
30, 2012, net loss and diluted loss per
share are expected to be between
$316 million and $319 million and$2.48 and $2.50, respectively.
Net income, EBITDA and diluted
earnings per share are expected to
be between $143 million and $146
million, $505 million and $510 million,
and $1.12 and $1.14, respectively.
For scal 2012, capital expenditures
are projected to be approximately
4.0% of net revenues, compared to
4.8% of net revenues in scal 2011.
Each of EDMCs schools locatedin the United States is licensed or
permitted to offer post-secondary
programs in the state in which it is
located, accredited by a national or
regional accreditation agency and
certied by the U.S. Department
of Education, enabling students
to access federal student loans,
grants and other forms of public and
private nancial aid. The companys
academic programs are designed
with an emphasis on applied contentand are taught primarily by faculty
members who, in addition to having
appropriate academic credentials, offer
practical and relevant professional
experience in their respective elds.
EDMCs schools comprise a national
education platform that is designed
to address the needs of a broad
market, taking into consideration
various factors that inuence demand,
such as programmatic and degree
interest, employment opportunities,
requirements for credentials in
certain professions, demographics,
tuition pricing points and economic
conditions. Through their schools the
company is able to provide access to
a high quality education for potential
students, at a variety of degree levels
including undergraduate, graduate,
doctoral, and certain specialized non-
degree diplomas. The wide range of
disciplines EDMC offers to its students
are: media arts, design, fashion,
culinary arts, behavioral sciences,
health sciences, education, information
technology, legal studies and business.
The company offers academicprograms to its students through
campus-based and online instruction,
or through a combination of both.
educationmanaGementcorPoratio
n
Wasatch 16 | Draper | Utah26
Education Management Corporation | Art Institute/Argosy | T-Mobile
Market OverviewProPerty DescriPtionAreA OverviewExEcutivE Summary FinancialsTenancy
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t a is f Sl L (Subsidiary of Education Management
Corporation; NASDAQ: EDMC; S&P Credit Rating BB-)
www.artinstitutes.edu
Sq F: 39,811
t: 10 years
c: August 13, 2007
ep: August 31, 2017
al r ass: 3%
c r
(as 9/1/2012):
$ 78,461 / Mo. $23.65 PSF Modied Gross
n rl as(9/1/13):
$80,816/ Mo. $24.36 PSF Full Service
rl op: Two, ve-year options at 95% of FMR
rss: Tenant reimburses for electricity and after hours costs.Gas is separately metered.
Tenants pays janitorial for their internal space directly.
oth Siicat Tms: Tenant has 8/1000 parking ratio, exclusive on postsecondary and graduate
education, crown signage rights on east and south side ofthe building.
L S Lg
ArTinSTiT
uTe/ArgoSY
The Art Institutes offer programs
in the media arts, design, fashion
and culinary arts. The Art Institutes
consist of 40 schools in cities
throughout North America. In addition
to its physical campuses, The Art
Institute Online offers a broad suiteof bachelors, associates and other
diploma degree programs in the
creative elds. Art Institute programs
are designed to provide the knowledge
and skills necessary for employment
in various elds, including graphic
design, media arts and animation,
multimedia and Web design, game
art and design, animation, video and
digital media production, interior
design, industrial design, culinary
arts, photography and fashion. Theseprograms typically are completed
in 18 to 48 months and culminate
in bachelor or associate degrees.
The Art Institutes strives to have its
graduates employed by companies
and organizations of all types and
sizes, including some of the most
prominent companies in the country:
MTV, Time Warner, AT&T, Home
Depot/EXPO Center, Lockheed Martin,
Nordstrom, Nintendo of America, Walt
Disney & Afliates, Marriott, Yahoo
Broadcast Services, Ernst & Young,
Microsoft, Ford Motor Company,
and the Fox Entertainment Group.
In 2010, the Art Institute of Salt Lakereceived the Platinum Award for mid
and small sized markets. This award is
internal to the Art Institute. It is given
to the campus that has a high level
of enrollment and shows excellence
in client service and satisfaction. The
Salt Lake campus has been a strong
campus for the Art Institute. According
to the National Center for Education
Statistics (http://nces.ed.gov ) the Art
Institute of Salt Lake has enrollmentof 728 students as of May 2012.
Wasatch 16 | Draper | Utah 27
Education Management Corporation | Art Institute/Argosy | T-Mobile
L
ProPerty DescriPtion Market OverviewAreA OverviewExEcutivE Summary FinancialsTenancy
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ArTinSTiT
uTe/ArgoSY
ags uvs (Subsidiary of Education Management
Corporation; NASDAQ: EDMC; S&P Credit Rating BB-)
www.argosy.edu
Sq F: 12,169
t: 10 years
c: August 13, 2007
ep: August 31, 2017
al r ass: 3%
c r(as 9/1/2012):
$25,281 / Mo. $24.93 PSF Full Service(As of 9/1/12)
n rl as(9/1/13):
$26,042/ Mo. $25.58 PSF Full Service
rl op: Two, ve-year options at 95% of FMR
rss: Tenant reimburses for electricity and afterhours costs. Gas is separately metered..
oth Siicat Tms: Tenant has 5.6/1000 parking ratio
Argosy University operates 19 locations in 13 states across the
U.S. It offers professional certication programs as well as doctoral,
masters and bachelors degrees in Psychology, Behavioral Sciences,
Education, Business, Health Sciences, and Undergraduate Studies.
According to the National Center for Education Statistics (http://nces.
ed.gov) Argosy University has 294 students as of May 2012. Argosy
University subleases its space from the Art Institute of Salt Lake.
clss clss
clss
L
Wasatch 16 | Draper | Utah28
Education Management Corporation | Art Institute/Argosy | T-Mobile
Market OverviewProPerty DescriPtionAreA OverviewExEcutivE Summary FinancialsTenancy
ProPerty DescriPtion Market OverviewAreA OverviewExEcutivESummary FinancialsTenancy
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t-mobiLe
T-Mobile is a subsidiary of
Deutsche Telekom (DT) a German
telecommunications company. DT
is the largest telecommunications
company in Europe and one
of the leaders in worldwide
telecommunications. As of December
2011 DT had 236,000 employees
worldwide with 2011 revenues of 58.7
billion Euros ($73.3 billion). Adjusted
EBITDA in 2011 was 18.7 billion Euros
($23.4 billion) and free cash ow was
6.4 billion Euros ($7.9 billion). The leaseis signed by T-Mobile West Corporation
which is the T-Mobile entity covering
the western United States.
The currency conversion from Euros to Dollars utilized the
exchange rate as of June 6, 2012.
t-ml ws cp
www.t-mobile.com
Sq F: 20,377
t: 10 years
c: November 1, 2007
ep: October 31, 2014
al r ass: 3%
c r
(as 9/1/2012):
$ 42,893.72 / Mo. $25.27 PSF Modied Gross
nxt rta Adjustmt (11/1/12): $44,183.76/ Mo. $26.03 PSF Full Service
rl op: One, ve-year options at FMR, Tenant must give an 8 month notice to renew
oth Siicat Tms: Tenant has a 5/1000 parking ratio. So long as tenant leases 20,000 or more in the building it hasthe right to a crown sign on the easterly end of the south side of the building. In January 2012 the
Tenant negotiated a lease extension option and waived their cancelation right. Tenant has untilJuly 31, 2012 to extend its lease through 2017, 2018 or 2019. The Landlord reduced the Tenants
rent to $22 PSF until July 31, 2012 in exchange for removing the Tenants cancelation option. Inthe event T-Mobile exercises its extension option the lease rate will remain at $22 PSF with a 3%increase annually beginning August 1, 2013. Otherwise the rent will be $25.27 per square foot as
of 9/1/2012. The Argus analysis assumes the Tenant does not exercise its option.
L L
Wasatch 16 | Draper | Utah 29
Education Management Corporation | Art Institute/Argosy | T-Mobile
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Wasatch 16 | Draper | Utah30
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Financials
TenancyMarket OverviewProPerty DescriPtion FinancialsAreA OverviewExEcutivE Summary
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GLobaL
alss P
Commencement Date September 1, 2012
End Date August 31, 2022
Term 10 Years
a mss
Current Building Square Feet (NRSF) 78,978 SF
G rs
Consumer Price Index (CPI) 3.00%
Other Income Growth Rate 3.00%
Operating Expenses 3.00%
Property Taxes 3.00%
Market Rent Growth (CYE)
CYE Growth Rent CYE Growth Rent
2013 5.30% $23.17 2018 3.00% $29.45
2014 6.20% $24.60 2019 3.00% $30.33
2015 5.70% $26.00 2020 3.00% $31.24
2016 5.00% $27.30 2021 3.00% $32.18
2017 4.7% $28.59 2022+ 3.00% $33.14
Ava rt gth/Ya 4.18%
Gl V Lss 5.00% [1]
cpl rsvs (Fy 2013 Vl) $0.15 PSF
Vacant SPace LeaSinG
op asp
Projected Vacant at 09/01/12 6,629 SF
Currently Vacant as of 07/03/12 6,629 SF
Percentage Vacant at 07/03/12 8.39%
asp P 8 Month(s)
Absorption Period Start Date September 1, 2012
First Absorption Occurs On December 1, 2012
Last Absorption Occurs On April 1, 2013
Fl ts
2012 Annual Market Rent $22.00 PSF
Rent Adjustment 3% Increases
Lease Term 5 Years
Expense Recovery Type FSG
Rent Abatements 5 Months
Tenant Improvements
($/NRSF)
$20.00 PSF
Commissions 6.00%
exPenSeS
Operating Expense Source 2012 Budget
mg F (% f eGr)
Charged 2.00%
Cost 2.00%
Pp ts rssss No
Second Generation LeaSinG
$22.00 FSG AI $22.00 FSG
RSF 51,980 6,629
% of Total 65.82% 8.39%
r r
Market Retention 80% 70%
Fl ts
Market Rent $22.00 PSF [3] $22.00 PSF
Rent Adjustment 3% Increases 3% Increases
Lease Term 5 Years 5 Years
Expense Recovery Type Base Stop Base Stop
Rent Abatement (New) 0 Months 0 Months
Rent Abatement (Renewal) 0 Months 0 Months
tg css
Tenant Improvements ($/NRSF)
New $15.00 PSF $15.00 PSF
Renewal $0.00 PSF $7.50 PSF
Weighted Average $3.00 PSF $9.75 PSF
Commissions
New 6.00% 6.00%
Renewal 0.00% 3.00%
Weighted Average 1.20% 3.90%
Downtime
New 6 Month(s) 6 Month(s)
Weighted Average 1 Month(s) 2 Month(s)
All market rent rates are stated on a calendar-year basis.[1] General Vacancy Loss factor includes losses attributable to projected lease-up, rollover downtime, and xturing downtime.[2] Electricit y estimated at $1.80/SF. After Hours HVAC expense is specic to AI/Argosy and they reimburse 100%. After Hours HVAC expense is deleted after 8/31/17.AI directly contracts janitorial and Janitorial Contract has been reduced to reect as such. Janitorial Contract expense will adjust to 100% ofce use after 8/31/17. Expenses need to be veried.[3] Renewal rent is 95% of FMV.
Summary
oFFinanciaLaSSumPtionS
Wasatch 16 | Draper | Utah32
Summary of Financial Assumptions | Cash Flow Projections | Rent Roll | Vacant Space Assumptions | Existing vs Market Rent Comparison | Expiration Schedule
TenancyMarket OverviewProPerty DescriPtion FinancialsAreA OverviewExEcutivE Summary
Market OverviewProPerty DescriPtion Tenancy FinancialsAreA OverviewExEcutivE Summary
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caShFLow
ProjectionS
y: 1 2 3 4 5 6 7 8 9 10
bgs: Sp-12 Sp-13 Sp-14 Sp-15 Sp-16 Sp-17 Sp-18 Sp-19 Sp-20 Sp-21
Pp rSF: 78,978 es: ag-13 ag-14 ag-15 ag-16 ag-17 ag-18 ag-19 ag-20 ag-21 ag-22
Psl op 97.04% 100.00% 95.70% 100.00% 100.00% 93.12% 100.00% 95.70% 100.00% 100.00%
ovll e op [1] 92.54% 95.42% 95.42% 95.43% 95.44% 93.15% 95.08% 95.08% 95.10% 95.14%
wg avg m r $22.00 $23.17 $24.60 $26.00 $27.30 $28.59 $29.45 $30.33 $31.24 $32.18
wg avg i Pl r [2] $24.03 $24.70 $25.10 $25.80 $26.55 $28.40 $29.32 $30.34 $31.35 $32.29
rvs $/Sf/Yr [3]
Scheduled Base Rent
Base Rental Revenue $23.98 $1,893,635 $1,950,503 $1,980,575 $2,037,426 $2,096,979 $2,185,240 $2,254,197 $2,336,658 $2,410,996 $2,483,325
Absorption & Turnover Vacancy ($0.66) (52,007) 0 (83,521) 0 0 (151,086) 0 (106,051) 0 0
Base Rent Abatements ($0.78) (61,756) 0 0 0 0 0 0 0 0 0
TOTAL $22.54 $1,779,872 $1,950,503 $1,897,054 $2,037,426 $2,096,979 $2,034,154 $2,254,197 $2,230,607 $2,410,996 $2,483,325
Expense Reimbursement Revenue $2.07 163,342 180,673 179,534 192,582 200,741 19,067 34,519 38,412 51,925 72,872
tl Gss rv $24.60 $1,943,214 $2,131,176 $2,076,588 $2,230,008 $2,297,720 $2,053,221 $2,288,716 $2,269,019 $2,462,921 $2,556,197
General Vacancy ($0.50) (39,587) (97,525) (15,508) (101,871) (104,849) 0 (112,710) (10,782) (120,550) (124,166)
effv Gss rv $24.10 $1,903,627 $2,033,651 $2,061,080 $2,128,137 $2,192,871 $2,053,221 $2,176,006 $2,258,237 $2,342,371 $2,432,031
epss [4]
Janitorial Contract $0.35 $27,724 $29,152 $29,141 $30,927 $31,855 $52,668 $56,949 $56,876 $60,418 $62,230
Cleaning Supplies $0.28 22,267 22,935 23,623 24,331 25,061 25,813 26,587 27,385 28,207 29,053
Day Porter $0.05 4,316 4,445 4,578 4,716 4,857 5,003 5,153 5,308 5,467 5,631Waste Removal $0.08 6,190 6,376 6,567 6,764 6,967 7,176 7,392 7,613 7,842 8,077
Repairs & Maintenance $1.21 95,556 98,423 101,376 104,416 107,549 110,775 114,098 117,522 121,047 124,678
After Hours/Weekends HVAC $0.40 31,783 32,737 33,719 34,730 35,772 0 0 0 0 0
Electricity $1.80 142,040 149,354 149,296 158,449 163,203 160,126 173,142 172,918 183,686 189,197
Gas $0.04 3,061 3,153 3,247 3,345 3,445 3,549 3,655 3,765 3,878 3,994
Water $0.06 4,941 5,089 5,242 5,399 5,561 5,728 5,900 6,077 6,259 6,447
Sewer $0.04 2,956 3,045 3,136 3,230 3,327 3,427 3,530 3,635 3,745 3,857
RE Taxes $2.08 164,498 169,433 174,516 179,752 185,144 190,699 196,420 202,312 208,382 214,633
Insurance $0.15 11,870 12,226 12,593 12,970 13,359 13,760 14,173 14,598 15,036 15,487
Administrative $0.38 29,811 30,705 31,626 32,575 33,552 34,559 35,595 36,663 37,763 38,896
Management Fee (2%) $0.48 38,073 40,673 41,222 42,563 43,857 41,064 43,520 45,165 46,847 48,641
tl epss $7.41 $585,086 $607,746 $619,882 $644,167 $663,509 $654,347 $686,114 $699,837 $728,577 $750,821
n opg i $16.70 $1,318,541 $1,425,905 $1,441,198 $1,483,970 $1,529,362 $1,398,874 $1,489,892 $1,558,400 $1,613,794 $1,681,210
In-Place NOI (91.61% Occ.) $1,317,012
cpl css
Tenant Improvements $1.27 $100,353 $0 $217,013 $0 $0 $257,953 $0 $251,578 $0 $0
Leasing Commissions $0.55 $43,508 $0 $109,675 $0 $0 $131,303 $0 $131,752 $0 $0
Capital Reserves $0.15 12,084 12,446 12,820 13,204 13,600 14,008 14,428 14,861 15,307 15,766
tl cpl css $1.97 $155,945 $12,446 $339,508 $13,204 $13,600 $403,264 $14,428 $398,191 $15,307 $15,766
n cs Fl bf d $14.72 $1,162,596 $1,413,459 $1,101,690 $1,470,766 $1,515,762 $995,610 $1,475,464 $1,160,209 $1,598,487 $1,665,444
[1] This gure takes into account vacancy/credit loss, absorption vacancy, turnover vacancy, and base rent abatements.[2] This gure does not include any amount related to expense reimbursements. Only Scheduled Base Rent and Fixed/CPI Increases are included in this calculation, which is based on scal year
weighted-average physical occupancy.[3] Based on 78,978 rentable square feet.[4] Expenses are based on sellers budget. Buyers should conrm and model based on their own operating expense assumptions.
Wasatch 16 | Draper | Utah 33
Summary of Financial Assumptions | Cash Flow Projections | Rent Roll | Vacant Space Assumptions | Existing vs Market Rent Comparison | Expiration Schedule
Market OverviewProPerty DescriPtion Tenancy FinancialsAreA OverviewExEcutivE Summary
TenancyMarket OverviewProPerty DescriPtion FinancialsAreA OverviewExEcutivE Summary
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Ls t c r r cgs
S t rSF bg e $/M. PSf/M. y d ml PSf/M. PSf/Y. rvtp
Fr
tisPSF
Lsgc
massps
100 Art Inst ituteof Salt Lake
39,811 3/1/08 8/31/17 $76,268 $1.92 $22.99 9/1/13 $78,623 $1.97 $23.70 AI $4.51 MG $22.00FSG AI
9/1/14 $81,045 $2.04 $24.439/1/15 $83,533 $2.10 $25.18
9/1/16 $86,121 $2.16 $25.96
Includes #100, #200 & #390 (198 SF). MG- Gas separately metered, elec reimbursed & directly contracts janitorial. 2008 BY. 95% GUP. Mgmt capped @ 3%. 50.41% TT share.Controllable operating expense increases capped @ 5%/year on a cumulative basis.Excludes Insurance, Utilities, Real Estate Taxes & snow removal. Two 5 yr options @ 95% FMR or one 6 months @ 110% FMR with minimum 270 days notice. 318 spaces free current term.
110 Vacant 4,590 12/1/12 11/1/17 $0 $0.00 $0.00 12/1/12 100%mkt
12/1/13 3 %Inc. Ann.
FSG 5Months
$15.00 6.00% $22.00 FSG
120 T-MobileWest
20,369 11/1/07 10/31/14 $42,894 $2.11 $25.27 11/1/12 $44,184 $2.17 $26.03 T-Mobile$5.50 FSG
$22.00 FSG
Includes #120 & #330. 2008 BY. 100% GUP. Mgmt capped @ 3.5%. TT's share of operating expense reimbursements calculated as follows: lessor of 1) TT's share of increases overprevious year or 2) sum of previous year's capped amount plus 5%.106 parking spaces free.
140 Vacant 2,039 4/1/13 3/1/18 $0 $0.00 $0.00 4/1/13 100%mkt
FSG 5Months
$15.00 6.00% $22.00 FSG
4/1/14 3 %Inc. Ann.
300 Argosy
(Art Institute)
12,169 8/1/08 8/31/17 $25,281 $2.08 $24.93 9/1/13 $26,042 $2.14 $25.68 Argosy
$4.85 MG
$22.00
FSG AI
9/1/14 $26,863 $2.21 $26.49
6/1/2015 $27,664 $2.27 $27.28
6/1/16 $28,496 $2.34 $28.10
MG-Electricity reimbursed & gas separately metered. 2008 BY. 95% GUP. Mgmt capped @ 3%. 15.41% TT share. Controllable operating expense increases capped @ 5%/year on acumulative basis. Excludes Insurance, Utilities, Real Estate Taxes & snow removal.Two 5 yr options @ 95% FMR or one 6 month @ 110% FMR with minimum 270 days notice. 68 spaces free during current & opt terms. Subleased by Argosy.
ToTAl rSf / rt: 78,978 $144,443
totaL V: 6,629 8.39%
rentroLL
Wasatch 16 | Draper | Utah34
Summary of Financial Assumptions | Cash Flow Projections | Rent Roll | Vacant Space Assumptions | Existing vs Market Rent Comparison | Expiration Schedule
TenancyMarket OverviewProPerty DescriPtion FinancialsAreA OverviewExEcutivE Summary
Market Overview FinancialsAreA OverviewExEcutivE Summary ProPerty DescriPtion Tenancy
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ex
iStinGVSmarketrentcom
PariSon
VacantSPaceaSSumPtionS
S tSq
F m SLsS
Lsep Ls t
il cpm r
ras
ras
tipvs
Lsgcsss
110 Vacant 4,590 4 12/01/12 11/30/17 60 Months $22.00 PSF 3% Increases 5 Months $15.00 6.00%
140 Vacant 2,039 8 04/01/13 03/31/18
tl V Sp 6,629
Wasatch 16 | Draper | Utah35
Summary of Financial Assumptions | Cash Flow Projections | Rent Roll | Vacant Space Assumptions | Existing vs Market Rent Comparison | Expiration Schedule
Market Overview FinancialsAreA OverviewExEcutivE Summary ProPerty DescriPtion Tenancy
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Aiatd busiss Discsu Ad Cdtiaity Amt
CBRE, Inc. operates within a global
family of companies with many subsid-
iaries and/or related entities (each an
Afliate) engaging in a broad range
of commercial real estate businessesincluding, but not limited to, broker-
age services, property and facilities
management, valuation, investment
fund management and development.
At times different Afliates may
represent various clients with compet-
ing interests in the same transaction.
For example, this Memorandum may
be received by our Afliates, including
CBRE Investors, Inc. or Trammell Crow
Company. Those, or other, Afliates
may express an interest in the propertydescribed in this Memorandum (the
Property) may submit an offer to
purchase the Property and may be the
successful bidder for the Property. You
hereby acknowledge that possibility
and agree that neither CBRE, Inc.
nor any involved Afliate will have
any obligation to disclose to you the
involvement of any Afliate in the
sale or purchase of the Property. In all
instances, however, CBRE, Inc. will act
in the best interest of the client(s) it
represents in the transaction described
in this Memorandum and will not act
in concert with or otherwise conduct
its business in a way that benets
any Afliate to the detriment of any
other offeror or prospective offeror,
but rather will conduct its business
in a manner consistent with the law
and any duciary duties owed to the
client(s) it represents in the transaction
described in this Memorandum.
This is a condential Memorandum
intended solely for your limited use and
benet in determining whether youdesire to express further interest in the
acquisition of the Property.
This Memorandum contains selected
information pertaining to the Property
and does not purport to be a repre-
sentation of the state of affairs of the
Property or the owner of the Property
(the Owner), to be all-inclusive or to
contain all or part of the information
which prospective investors may
require to evaluate a purchase ofreal property. All nancial projections
and information are provided for
general reference purposes only and
are based on assumptions relating to
the general economy, market condi-
tions, competition and other factors
beyond the control of the Owner and
CBRE, Inc. Therefore, all projections,
assumptions and other information
provided and made herein are subject
to material variation. All references to
acreages, square footages, and other
measurements are approximations.
Additional information and an op-
portunity to inspect the Property will
be made available to interested and
qualied prospective purchasers. In
this Memorandum, certain documents,
including leases and other materials,
are described in summary form.
These summaries do not purport to
be complete nor necessarily accurate
descriptions of the full agreements
referenced. Interested parties are
expected to review all such summaries
and other documents of whatevernature independently and not rely on
the contents of this Memorandum in
any manner.
Neither the Owner or CBRE, Inc,
nor any of their respective directors,
ofcers, Afliates or representatives
make any representation or war-
ranty, expressed or implied, as to
the accuracy or completeness of this
Memorandum or any of its contents,
and no legal commitment or obligationshall arise by reason of your receipt
of this Memorandum or use of its
contents; and you are to rely solely on
your investigations and inspections of
the Property in evaluating a possible
purchase of the real property.
The Owner expressly reserved the
right, at its sole discretion, to reject
any or all expressions of interest or
offers to purchase the Property, and/
or to terminate discussions with any
entity at any time with or without
notice which may arise as a result
of review of this Memorandum. The
Owner shall have no legal commitment
or obligation to any entity reviewing
this Memorandum or making 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 Owners obligations therein have
been satised or waived.
By receipt of this Memorandum, you
agree that this Memorandum and itscontents are of a condential nature,
that you will hold and treat it in the
strictest condence and that you will
not disclose this Memorandum or
any of its contents to any other entity
without the prior written authorization
of the Owner or CBRE, Inc. You
also agree that you will not use this
Memorandum or any of its contents in
any manner detrimental to the interest
of the Owner or CBRE, Inc.If after reviewing this Memorandum,
you have no further interest in purchas-
ing the Property, kindly return this
Memorandum to CBRE, Inc.
2012 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 veried it and makes no guarantee, warranty
or representation about it. It is your responsibility toindependently conrm 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 transactionto you depends on tax and other factors which should be
evaluated by your tax, nancial and legal advisors. Youand your advisors should conduct a careful, independent
investigation of the property to determine to your satisfaction
the suitability of the property for your needs.CBRE, CB
RICHARD ELLIS and the CBRE/CB RICHARD ELLIS logo are
service marks of CBRE, Inc. and/or its afliated or related
companies in the United States and other countries. All othermarks displayed on this document are the property of their
respective owners.
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WASATCH 16WASATCH 16 Capital Markets | Private Capital Groupoffg m | j 2012