offering memorandum - loopnet€¦ · jason dean indianapolis office director of finance richard...

S h o p p e s o n B r o a dA n 1 1 , 6 0 0 - S q u a r e F o o t R e t a i l S t r i p C e n t e r L o c a t e d i n t h e D a y t o n , O h i o M S A

OFFERING MEMORANDUM

CONFIDENTIALITY & DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving it from Marcus & Millichap and should not be madeavailable to any other person or entity without the written consent of Marcus & Millichap. This MarketingBrochure has been prepared to provide summary, unverified information to prospective purchasers, and toestablish only a preliminary level of interest in the subject property. The information contained herein is not asubstitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, andmakes no warranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of the property andimprovements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance withState and Federal regulations, the physical condition of the improvements thereon, or the financial condition orbusiness prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subjectproperty. The information contained in this Marketing Brochure has been obtained from sources we believe tobe reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information containedherein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy or completeness of the information provided.All potential buyers must take appropriate measures to verify all of the information set forth herein.

P R E S E N T E D B Y

Jordan KlinkIndianapolis OfficeFirst Vice President of [email protected] (317) 218-5316

Nicholas WeaverIndianapolis OfficeSenior [email protected] (317) 218-5339

David KlinkINDIANAPOLIS OFFICEAssociate

Ben SullivanINDIANAPOLIS OFFICEAssociate

Jason DeanINDIANAPOLIS OFFICEDirector of Finance

Richard NiewiadomskiINDIANAPOLIS OFFICE

Financial Analyst

Michael GlassBroker of Record, OhioLicense #: BRK.2007005898

TA B L E O F C O N T E N T S

1 . E X E C U T I V E S U M M A R Y

2 . F I N A N C I A L A N A L Y S I S

3 . M A R K E T O V E R V I E W

E X E C U T I V E S U M M A R Y

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage orage are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2017 Marcus & Millichap. All rights reserved.

O f f e r i n g O v e r v i e w

The Klink Group of Marcus and Millichap is pleased to present for sale

Shoppes on Broad. The subject property is an 11,600-square foot retail

property situated on 1.15 acres in Fairborn, Ohio. Shoppes on Broad is a

55% occupied shopping center, offering an incoming investor a

significant amount of upside potential through lease-up.

The subject property is uniquely positioned across from Wright-

Patterson Air Force Base along Broad Street which is accustomed to

nearly 10,000 vehicles passing daily. The majority of the tenants have

shown long-term occupancy in the building of 30+ years with the anchor

tenant currently on a long-term lease. All tenants operate on a triple-net

lease structure with competitive rents averaging $9.84 per square foot.

Shoppes on Broad gives an incoming investor the opportunity to

purchase a retail center with significant value-add through lease up.

Leasing up the 2,000-square foot vacancy at a conservative $9.00 per

square foot market rent will increase the cap rate to 11.08% and

increase an additional 20 basis points when each of the remaining 1,600-

square foot suites are leased up. Given the current long-term nature of

the anchor tenants, the subject property also offers stability during the

lease up process.

PROPERTY SUMMARY

Address 304-316 N. Broad StreetFairborn, OH 45324

Offering Price $652,000

Cap Rate: 7.65%

Price Per SF: $56.21

Size (Square Feet): 11,600

Lot Size: 1.15 Acres

Ownership Interest Fee Simple

Zoning Commercial

EXECUTIVE SUMMARY

• Uniquely Positioned Across from Wright-Patterson Air Force Base

• Nearly 10,000 Vehicles Passing Site Daily

• Six Years Remaining on Anchor Tenant – Sherwin Williams

• Significant Value Add with 43% Vacancy Upside

I n v e s t m e n t H i g h l i g h t s


Twin Base Golf Course

West at Prairie TraceGolf Club

East at Prairie TraceGolf Club

McDonald’s

F I N A N C I A L A N A L Y S I S


FINANCIAL ANALYSIS

FINANCIAL SUMMARY

Price: $652,000

Down Payment: (30%) $195,600

Current CAP Rate: 7.65%

Pro Forma CAP Rate: 16.29%

GLA: 11,600 SF

Cost Per Square Foot: $56.21

Site Area (Acreage): 1.15 Acres

NEW ACQUISITION FINANCING

Original Loan Amount: $456,400

Interest Rate: 4.25%

Amortization: 240 Months

Term: 5 Years

Monthly Payment: $2,826.19

Annual Debt Service $33,914.23

PRO-FORMA LEASING SCENARIO

Suite SizeNew Lease

TypeCap Rate Cash-on-Cash Return

2,000 SF NNN 11.08% 19.05%

1,600 SF NNN 13.82% 28.24%

1,600 SF NNN 16.29% 36.38%

Note: Pro-Forma NOI, Cap Rates and Cash-on-Cash Return are estimated with a constant 3% management fee with each new lease signed.


CURRENT EXPENSES

CAM $0.81 $9,417.41

Insurance: $0.46 $5,280.00

Real Estate Taxes: $0.71 $8,247.92

Management Fee: 3.00% $2,284.00

Total Expenses $26,370.82

Expenses Per SF: $2.27

Note: Added $916.00 and $381.15 to 'Total Expenses' for Vacant Water and Electric that is not reimbursed from current tenants for vacant space

OPERATING DATACurrent Pro Forma

Gross Potential Rent: $109,912.00 $109,912.00

CAM Reimbursement: $9,417.41 $9,417.41

Tax Reimbursement: $8,247.92 $8,247.92

Insurance Reimbursement: $5,280.00 $5,280.00

Mgmt. Reimbursement: $1,496.41 $1,496.41

Other Income: $0.00

Potential Gross Income: $134,353.74 $134,353.74

Vacancy: 43% $58,109.70 0.00% $0.00

Effective Gross Income: $76,244.04 $134,353.74

Less Expenses: $26,370.82 $28,117.43

Net Operating Income: 7.65% $49,873.22 16.29% $106,236.31

Capital Reserves: $0.10 $1,160.00 $0.10 $1,160.00

Annual Debt Payment: $33,914.23 $33,914.23

Net Cash Flow After Debt: 7.57% $14,798.99 36.38% $71,162.08

Principle Reduction: $14,803.38 $14,803.38

Total Return: 15.13% $29,602.37 43.95% $85,965.46

FINANCIAL ANALYSIS

PRO-FORMA EXPENSES

CAM $0.81 $9,417.41

Insurance: $0.46 $5,280.00

Real Estate Taxes: $0.71 $8,247.92

Management Fee: 3.00% $4,030.61

Total Expenses $28,117.43

Expenses Per SF: $2.42


Shoppes on Broad Rent Roll

Tenant GLA % GLALease Start

DateLease End

DateMonthly

RentAnnual Rent

Rent/SFAnnual CAM

Reimb.

Annual Tax

Reimb.

Annual Insurance

Reimb.

Annual Mgmt. Reimb.

Options

Sherwin Williams 4,000 34.48% Jan. 1988 Dec. 2025 $3,410.00 $40,920.00 $10.23 $3,247.38 $2,844.11 $1,820.69 $0.00 2 - 5yr.

Vacant 2,000 17.24% - - $1,500.00 $18,000.00 $9.00 $1,623.69 $1,422.06 $910.34 $393.79 0

Vacant 1,600 13.79% - - $1,200.00 $14,400.00 $9.00 $1,298.95 $1,137.64 $728.28 $315.03 0

Vacant 1,600 13.79% - - $1,200.00 $14,400.00 $9.00 $1,298.95 $1,137.64 $728.28 $315.03 0

Acert Healthcare 1,400 12.07% June 2019 May 2024 $849.33 $10,192.00 $7.28 $1,136.58 $995.44 $637.24 $275.66 1 - 5yr

Subway 1,000 8.62% Feb. 1988 Feb. 2021 $1,000.00 $12,000.00 $12.00 $811.85 $711.03 $455.17 $196.90 1 - 5yr

Rent Income Total

Total 11,600.00 100% Gross $109,912.00 $134,353.74 $9,417.41 $8,247.92 $5,280.00 $1,496.41 $24,441.74

Vacant 5,200.00 44.83% Vacant $46,800.00 $58,109.70 $4,221.60 $3,697.34 $2,366.90 $1,023.86 $11,309.70

Occupied 6,400.00 55.17% Scheduled $63,112.00 $76,244.04 $5,195.81 $4,550.58 $2,913.10 $472.55 $13,132.04

FINANCIAL ANALYSIS

D A Y T O N M A R K E T O V E R V I E W


Technology HubDayton is known for its high concentration of aerospace and aviation technology. In 2009, it was designated as Ohio's aerospace innovation hub

Healthcare ServicesMetro hospitals consistently earn top national rankings and recognition as well as many of HealthGrades’ top ratings.

Higher EducationThe University of Dayton and Wright State University are two major higher-education institutions impacting the local economy.

The Dayton metro area is often referred to as the birthplace of aviation as it was the home of the Wright brothers and where they researched andexperimented with flight. Composed of Greene, Montgomery and Miami counties, it is the fourth largest metropolitan area in Ohio. Defense and aerospaceindustries comprise a large section of the region’s economy. Additionally, healthcare accounts for a sizable portion of the area’s economy; several keyinstitutes and centers are located here.

Economy• Hospitals in the Greater Dayton area have an estimated

combined employment of nearly 32,000 and a yearlyeconomic impact of $6.8 billion.

• Wright-Patterson U.S. Air Force Base is just east of Dayton.The base employs 27,500 military, civilian and contractemployees and has a $4.3 billion annual economic impact.

• Dayton’s logistics sector is growing and is expected to add2,200 jobs by 2023.

• Tech Town, a 40-acre district developed in downtownDayton, was created as a tool to support the attraction andgrowth of high-technology business and promote technologycommercialization.

MARKET OVERVIEW


M a r k e t D e m o g r a p h i c sPOPULATION 1 Miles 3 Miles 5 Miles

2023 Projection

Total Population 5,802 27,888 80,387

2018 Estimate


2010 Census


2000 Census


Current Daytime Population

2018 Estimate 13,665 38,642 88,757

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2023 Projection

Total Households 2,416 11,968 32,496

2018 Estimate


Average (Mean) Household Size 2.28 2.30 2.40

2010 Census


2000 Census


Occupied Units

2023 Projection 2,416 11,968 32,496

2018 Estimate 2,792 13,224 33,694

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2018 Estimate

$150,000 or More 2.90% 5.36% 7.54%

$100,000 - $149,000 9.58% 10.55% 14.05%

$75,000 - $99,999 9.52% 10.57% 13.31%

$50,000 - $74,999 21.51% 19.39% 19.91%

$35,000 - $49,999 13.45% 15.22% 13.18%

Under $35,000 43.03% 38.89% 32.00%

Average Household Income $53,929 $60,138 $72,305

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles

Total Average Household Retail Expenditure

$49,171 $51,518 $60,333

Consumer Expenditure Top 10 Categories

Housing $13,019 $13,592 $15,627

Transportation $8,127 $8,888 $10,145

Shelter $7,254 $7,448 $8,545

Food $5,008 $5,175 $6,087

Personal Insurance and Pensions $4,851 $5,133 $6,917

Health Care $3,448 $3,916 $4,336

Utilities $3,176 $3,325 $3,734

Entertainment $1,864 $1,933 $2,234

Household Furnishings and Equipment

$1,290 $1,437 $1,669

Apparel $1,208 $1,209 $1,365

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2018 Estimate Total Population 5,884 28,048 76,785

Under 20 24.79% 23.01% 24.62%

20 to 34 Years 26.56% 25.15% 26.67%

35 to 39 Years 6.34% 5.91% 6.02%

40 to 49 Years 11.10% 10.38% 10.54%

50 to 64 Years 18.44% 19.31% 17.75%

Age 65+ 12.76% 16.22% 14.39%

Median Age 34.12 36.42 34.05

Population 25+ by Education Level

2018 Estimate Population Age 25+ 3,961 19,309 50,058

Elementary (0-8) 2.43% 3.34% 2.52%

Some High School (9-11) 7.94% 8.68% 6.92%

High School Graduate (12) 34.38% 32.81% 28.07%

Some College (13-15) 25.72% 25.00% 23.15%

Associate Degree Only 9.77% 8.19% 8.94%

Bachelors Degree Only 11.03% 12.41% 16.35%

Graduate Degree 7.34% 8.43% 13.22%

MARKET OVERVIEW

S h o p p e s o n B r o a dA n 1 1 , 6 0 0 - S q u a r e F o o t R e t a i l S t r i p C e n t e r L o c a t e d i n t h e D a y t o n , O h i o M S A

OFFERING MEMORANDUM

EXCLUSIVELY LISTED BY:

JORDAN KLINKINDIANAPOLIS OFFICE

First Vice President of [email protected]

P (317) 218-5316

NICHOLAS WEAVERINDIANAPOLIS OFFICE

Senior [email protected]

P (317) 218-5339

David KlinkINDIANAPOLIS OFFICE

Associate

Ben SullivanINDIANAPOLIS OFFICE

Associate

Jason DeanINDIANAPOLIS OFFICE

Director of Finance

Richard NiewiadomskiINDIANAPOLIS OFFICE

Financial Analyst

Broker of RecordMichael Glass230 West StreetSuite 100 Columbus, OH 43215 TEL: 614-360-9800

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