offering memorandum · 1 pere rd. cathedral city ca 2234 rosano partners // offering memorandum 6...

68718 Perez Rd.Cathedral City, CA 92234

OfferingMemorandum

Rosano Partners // Offering Memorandum 268718 Perez Rd., Cathedral City, CA 92234

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 Medical Marijuana Uses- Large Lot- Warehouse and Office Space- Easily Enclosed Overhang- Potential for Vertical Integration- Great Location- Structure is Insulated

Property Overview / Financial Summary

Property Overview / Investment Highlights

Property Overview / Property Description

Rosano Partners is proud to present a unique opportunity to acquire a 5,102SF office/warehouse zoned for marijuana business uses on a 12,108SF lot. The property has an electric capacity of 850Amps at 120/240v and includes an overhang than can be enclosed to create more space. This property is on a main thoroughfare in Cathedral city and is zoned for cultivation, manufacturing, and dispensaries. This parcel provides a tremendous opportunity to build out customized space, while using the existing structures for a dispensary, cultivation, or manufacturing purpose. There is ample space and electric capacity to create a vertically integrated facility with a great location in Cathedral city.

Property Overview

PRO FORMA CAP RATE

11.68%

GROSS BUILDING SF

5,102 SFLOT SF

12,198 SF

PRICE

$1,850,000

PRICE / SF

$362,60

LAND PRICE/SF

$151.66

YEAR BUILT

-



Location Overview


Location Overview / Map

Cathedral City is in Riverside County, 7 miles Southeast of Palm Springs off the 10 Freeway. It is the second largest City in population in the Coachella Valley, and nicknamed “Cat City” by the locals. Effective in June 2016, the City passed an ordinance to allow Medical Marijuana uses to include cultivation, dispensing, and in some areas, manufacturing. This is an emerging market for MMJ business, and valuable opportunity to bring your medical Marijuana business above board.

Location Overview / Location Descriptions

S


Location Overview / Map

S


Location Overview / Aerial Map

S



Sales Comparables


Sales Comparables / Overview

Price / Lot

S. No. Address Sale Price Price per RBA

S 68718 Perez Rd. $1,850,000 $362.60

1 36450 Bankside Drive $2,050,000 $256.25

2 68351 Perez Road $2,000,000 $100.00

3 68721 Summit Drive $1,450,000 $189.99

4 36655 Sunair Plaza $1,575,000 $176.67$362.60 $98.04 $69.57 $45.31

S1 2 3

$72.06

A

$75.33

4

32

1

S

4


Sales Comparables / 01 36450 Bankside Drive, Cathedral City, CA 92234

Sale Date 07/20/2016

Sale Price $2,050,000

Building SF 8,000 SF

Lot Acres 0.48 Acres

Building Price PSF

$256.25

Building Type Industrial

Year Built 1990


Sales Comparables / 02 68351 Perez Road, Cathedral City, CA 92234





Building Price PSF

$100.00


Year Built 1990


Sales Comparables / 03 68721 Summit Drive, Cathedral City, CA 92234





Building Price PSF

$189.99


Year Built 1965


Sales Comparables / 04 36655 Sunair Plaza, Cathedral City, CA 92234





Building Price PSF

$176.67


Year Built Unknown



Financial Analysis


Financial Analysis / Setup

Offering Price: $1,850,000 Current

$200,000 Pro Forma Gross Income: $244,896

(Cost does not include grow equipment)

Expense Reimbursements: NNN $31,050Down Payment: 60% $1,110,000 Other income / Percentage Rent: $0

Pro Forma Cap: 11.68% Gross Potential Income: $275,946

Vacancy Allowance: ($5,519) 2.0%Price / Bldg sq/ft: $362.60 Effective Gross Income: $270,427

$151.66 Less Expenses: ($31,050)

Net Operating Income: $239,377 88.5%

Deal Notes Less Loan Payments: ($65,158)

Cash Flow/CoC Return: $174,219 15.70%

First Yr Principal Reduction: $6,182

Total Return Before Taxes: $180,400 16.25%NOTES: * As a percent of Effective Gross Income. ** As a percent of Down Payment.

Property Description5,102

12,198 PRO FORMAUNKNOWN Taxes 1.30% $24,050

Insurance 1.37$ $7,000Financing Utilities -$ $0Loan Amount: $740,000 Landscaping -$ $0Terms (Years): 30 Maintenance/Repairs -$ $0Interest Rate: 8.00% Garbage -$ $0Monthly Payment: ($5,430) Off-Site Management -$ $0Yearly Payment: ($65,158) Total Expenses $31,050Financial Summary: Monthly/SF $0.51

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.

Pricing Summary

Financial Analysis68718 Perez Rd

Cathedral City, CA 92234

Annualized Operating Data

Annualized Expenses

Approx Cost to Upfit Space for culitvation~ Included in NOI

Please Contact Rosano Partners for more information at 213.802.0300

Leasable Area (sq/ft):Lot Size (sq/ft):Year Built:

Price / Land sq/ft:


Financial Analysis / Rent Roll

Approx. Lease LeaseRentable % of Commence Expiration Pro Forma Pro Forma Pro Forma

Suite Tenants Sq. Ft. Prop (Mo/Yr) (Mo/Yr) Rent Rent/SqFt Lease TypeA Cultivation Warehouse 5,102 100% TBD TBD $20,408 $4.00 NNN

MONTHLY TOTALS: 5,102 100% $20,408 $2,588

Vacant 0.0% $20,408 NNN $2,587.50

Occupied 100.0% $244,896 NNN $31,050

Current Dollar Vacancy: $0

% Vacancy from Total Rent: 0.0%

*Pro forma rents based on 60% of stabilized rents achieved for cultivation facilities in Colorado

RENT ROLL68718 PEREZ RD

Cathedral City, CA 92234

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 / Traffic Report

-0%0 SF4,489 SF5,102 SF-Specialty

Rent/SF/Mo:% Leased:

Total Available:Typical Floor:

RBA:Class:

Building Type:

Street Cross Street Cross Str DistCountYear

Avg DailyVolume

VolumeType

Miles fromSubject Prop

1 Perez Rd Plaza Dr 0.06 E 2014 7,171 MPSI .122 Perez Rd Cathedral Canyon Dr 0.03 W 2014 5,016 MPSI .193 Cathedral Canyon Dr Perez Rd 0.07 N 2014 7,534 MPSI .234 Cathedral Canyon Dr Kieley Rd 0.03 N 2014 13,492 MPSI .245 Perez Rd Cathedral Canyon Dr 0.03 E 2014 6,880 MPSI .256 Campbell St Perez Rd 0.02 NW 2010 10,421 MPSI .257 Date Palm Dr Perez Rd 0.11 S 2014 10,156 MPSI .298 Cathedral Canyon Dr 5th St 0.02 N 2014 5,372 MPSI .299 Perez Rd Cathedral Canyon Dr 0.07 E 2014 4,465 MPSI .30

10 Date Palm Dr Gerald Ford Dr 0.04 N 2014 12,408 MPSI .30

Traffic Count Report

68718 Perez Rd, Cathedral City, CA 92234

Copyrighted report licensed to Rosano Partners - 88674.8/29/2016

Page 1

-0%0 SF4,489 SF5,102 SF-Specialty

Rent/SF/Mo:% Leased:

Total Available:Typical Floor:

RBA:Class:

Building Type:

Street Cross Street Cross Str DistCountYear

Avg DailyVolume

VolumeType

Miles fromSubject Prop

1 Perez Rd Plaza Dr 0.06 E 2014 7,171 MPSI .122 Perez Rd Cathedral Canyon Dr 0.03 W 2014 5,016 MPSI .193 Cathedral Canyon Dr Perez Rd 0.07 N 2014 7,534 MPSI .234 Cathedral Canyon Dr Kieley Rd 0.03 N 2014 13,492 MPSI .245 Perez Rd Cathedral Canyon Dr 0.03 E 2014 6,880 MPSI .256 Campbell St Perez Rd 0.02 NW 2010 10,421 MPSI .257 Date Palm Dr Perez Rd 0.11 S 2014 10,156 MPSI .298 Cathedral Canyon Dr 5th St 0.02 N 2014 5,372 MPSI .299 Perez Rd Cathedral Canyon Dr 0.07 E 2014 4,465 MPSI .30

10 Date Palm Dr Gerald Ford Dr 0.04 N 2014 12,408 MPSI .30

Traffic Count Report

68718 Perez Rd, Cathedral City, CA 92234

Copyrighted report licensed to Rosano Partners - 88674.8/29/2016

Page 1


Demographics / Market Comparison Report

15.09%

7.21%

4.27%

3.18%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

2010 - 2015 2015 - 2020

Population Growth

1 Mile

County

12.92%

6.92%

4.25% 3.21%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

2010 - 2015 2015 - 2020

Household Growth

1 Mile

County



$35,247

$57,172

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1 Mile County

2016 Med Household Inc

1 Mile

County

56.7

36

0

10

20

30

40

50

60

1 Mile County

2016 Med Age

1 Mile

County



36.36%

30.50%

14.31%

10.00%

3.00% 2.00% 2.08% 2.04%

22.86% 21.98%

16.47%

12.00%

8.00%5.00% 6.31% 7.29%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

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

2016 Households by Household Income

1 Mile

County

91.98%

3.01% 0.89% 1.80% 0.16% 2.16%

71.29%

9.17%1.48%

14.77%

0.38% 2.92%0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

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

2016 Population by Race

1 Mile

County



2016 Employed vs Unemployed

2016 Renter vs Owner

93.15%

6.85%

County

Employed

Unemployed

92.68%

7.32%

1 Mile

Employed

Unemployed

66.76%

33.24%

1 Mile

Rent

Own 52.45%

47.55%

County

Rent

Own


Presented by:Korena EllisSenior AssociateInvestment Sales Group

BRE: 01430539

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

George CornelsonSpecialistInvestment Sales Group

D: 213-802-0328M: 704-975-4652E: [email protected]

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

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.

offering memorandum · 1 pere rd. cathedral city ca 2234 rosano partners // offering memorandum 6...

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