2725-2795 Offering Memorandum E
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2725-2795 OFFERING MEMORANDUM E. Desert Inn Road Las Vegas• Nevada • 89121 ±116,000 SqFt OFFICE PROJECT ±$100 PSF. Well Below Replacement Cost 8.21% Annualized Cap Rate Projected End of Y1 JDS Real Estate Services, Inc. Ideal For Occupancy | Located in Strong Medical Corridor NV Lic. # B.1001185.CORP CONFIDENTIALITY AGREEMENT By accepting this Offering Memorandum, the party in possession representations or warranties, expressed or implied, as to the hereof agrees (i) to return it to Owner/Agent immediately upon accuracy or completeness of the Offering Memorandum or any of request and (ii) that this Offering Memorandum and its contents are the contents, and no legal commitment or obligations shall arise by of a confidential nature and will be held and treated in strict reason of the Offering Memorandum or the contents. Analysis and confidence. No portion of this Offering Memorandum may be verification of the information contained in the Offering copied or otherwise reproduced or disclosed to anyone without the Memorandum is solely the responsibility of the prospective prior written authorization of officer of Owner/Agent. Principals and purchaser. real estate brokers are prohibited from disseminating this information without the specific written consent of an officer of Owner reserves the right to reject any or all expressions of interest Owner/Agent. or offers to purchase this property, as well as the right to terminate discussions with any party at any time with our without notice. This Offering Memorandum is subject to errors, omissions, changes Owner shall have no legal commitment or obligation to any or withdrawal without notice and does not constitute a purchase reviewing this Offering Memorandum or making an offer recommendation or endorsement as to the value of the property as to purchase this property unless a written agreement for the a reference and are based on assumptions proposed by purchase of the property has been fully executed, delivered and Owner/Agent and their sources. Prospective purchasers should approved by Owner and any conditions to Owner’s obligations make their own projections and reach their own conclusion of thereunder have been satisfied or waived. value. The terms and conditions set forth above apply to this Offering Certain portions of this Offering Memorandum merely summarize Memorandum in its entirety. or outline property information and are in no way intended to be complete nor necessarily accurate descriptions. All prospective purchasers are to rely upon their own investigations and due diligence in the formation of their assessment of the condition of the property, including engineering and environmental inspections. All relevant documents are expected to be reviewed independently by any prospective purchaser. Neither Owner nor the Agent nor any of their respective officers, advisors, agents, or principals has made or will make any 2725-2795 TABLE OF CONTENTS E. Desert Inn Road Las Vegas• Nevada • 89121 1 2 3 4 5 6 INVESTMENT SUMMARY MARKET OVERIVEW INVESTMENT FINANCIALS INVESTMENT SALES COMPS TENANT PROFILE PHOTOS & MAPS INVESTMENT HIGHLIGHTS HIGHLIGHTS & CURRENT AND PROFORMA DETAILED SALES COMPS DETAILED TENANT PROFILE PROPERTY PHOTOS & & PROPERTY HIGHLIGHTS DEMOGRAPHICS & RENT ROLL AERIALS 2725-2796 E. DESERT INN ROAD • LAS VEGAS NV 2725-2796 E. DESERT INN ROAD DESERT INN OFFICE CENTER Section 1 : Investment Summary investment Summary Total PSF OFFERING PRICE $11,675,000 Building SqFt: 116,080 $100.58 PSF Rentable SqFt: 116,080 $100.58 PSF PRICE PSF: $100.58 CURRENT OCCUPANCY: 67.47% *YEAR 1 ANNUALIZED NOI: $972,444 $8.38 PRSF YEAR 1 ANNUALIZED CAP RATE: 8.33% YEAR 1 ANNUALIZED EXPENSES: $533,064 $4.59 PRSF YEAR 0 IN PLACE NOI: $540,074 $4.65 PRSF IN-PLACE CAP RATE: 4.63% *Year 1 NOI based on Month 13 Annualized income which reflects an occupancy rate of 91.49% 5 Property Ovewrview PROPERTY NAME: Desert Inn Office Center ADDRESS: 2725-2796 E. Desert Inn Road, Las Vegas, NV 89121 RENTALBE SQFT: ±116080 (Buyer t o Verify Act ual SqFt ) STORIES: 2 YEAR BUILT: 1981 & 2002 LAND ACRES: ±6.16 Acres APN: 162-13-102-012 ZONING: C-P (Office and Professional), Clark County SUBMARKET: Central East Las Vegas COUNTY: Clark 6 PROJECT OVERVIEW 2725-2796 E. Desert Inn Road | Las Vegas NV Desert Inn Office Center is conveniently parking stalls providing a parking ratio of located on the South side of Desert Inn 3.74/1,000 square feet. Road just West of Pecos-McLeod. The property has undergone substantial This ±116,000 SF office center consists of renovations and absorption over the past four two-story buildings and is centrally year with over apx 65,000 SqFt leaseup located within walking distance of shops, since 12/17. banks, restaurants and parks, and a short drive from Boulder Highway and I-95. Property Consists of a diverse mix of tenants, including multiple institutional Westbound Desert Inn turns into the DI tenants. Arterial, providing easy access to the west side of town. The property is within 1.5 miles of Sunrise Hospital (664 beds) and within two miles of Access to the property is provided via two Desert Springs Hospital (346 beds), and is (2) curb cuts on Desert Inn Road. There are adjacent to which makes it a potential 435 parking stalls contained within the back office location for healthcare related property’s parcel including 198 covered occupiers. • CENTRALLY LOCATED WITH STRONG • DIVERSE TENANT BASE WITH HIGH TENANT DEMOGRAPHICS RETENTION • COMPETITIVE 2nd GENERATION SPACE. • PRICED WELL BELOW REPLACEMENT COST AT ±100 PSF. • FLEXIBLE FLOOR PLANS & HIGH PARKING • PROPERTY RECENTLY RECEIVED RATIO. NUMEROUS UPGRADES DURING A SURGE OF LEASING ACTIVITY. • MANY RECENT CAPITAL EXPENDITURES • IDEAL FOR MEDICAL OCCUPANCY. AND RENOVATIONS. LOCATED IN STRONG MEDICAL CORRIDOR. 7 PROPERTY OVERVIEW Property Information Construction: Steel/wood frame with stucco exterior. Roofing on the Subject Buildings consists of a low-slope, built-up roof (BUR) membranes with a Roof: mineral-surfaced cap sheet at the large, and central main roof areas. Heating, ventilating, and air-conditioning (HVAC) systems for 2725, 2755, and 2775 East Desert Inn Road consist of two 60-ton roof-mounted Carrier rooftop packaged air conditioning units (RTU) servicing buildings 2725, 2755 and 2785. Building 2795 has a heat pump unit for the second floor and split heat pump. The RTUs serve interior with variable-air-volume VAV terminal units. 2795 East Desert Inn Road is heated and cooled by packaged heat-pump units for Floor 2 and split HVAC: heat-pump condensers and interior fan-coil units for Floor 1. Heating is provided by the integral natural-gas-fired furnace in the RTUs. The furnaces offer pre-heat as conditioned air is routed through the ductwork to variable-airvolume boxes with electric strip heaters. All of the units are by Carrier and have manufacturer’s dates of 2003 and 2004. Tonnages vary from 3- to 5-tons each. Power is provided at 480/277-volts, 3-phase, 4-wire, 800 amperes at 2725, 2785, and 2795 and 600 Electrical: amperes at 2755. The 2725, 2755 and 2785 buildings have (3) hydraulic elevators that service two floors with a Elevator: capacity of 2,500 lbs. Building 2795 has (2) elevators that service two floors with a capacity of 2,500 lbs. Ingress/Egress: Access to the property is offered via two driveways on Desert Inn Road. Parking: Parking ratio is 3.74/1,000. There are a total of 435 parking stalls of which 198 are covered. # of Buildings: Four Buildings 8 2725-2796 E. DESERT INN ROAD DESERT INN OFFICE CENTER Section 2 : Market Overview MARKET OVERVIEW DESERT INN OFFICE CENTER LAS VEGAS | NEVADA Las Vegas, officially the City of Las Vegas and often known 0.1 points to 2.8% in August. simply as Vegas, is the 28th-most populated city in the United States, the most populated city in the state of Nevada, and In August of 2018, Clark County’s annualized convention the county seat of Clark County. It is home to apx 2.2 Million attendance saw a 1.2% increase from the previous month, to people employed in various sectors including Defense, IT, and 6.53 million. That figure represents a 0.5% gain from August Construction. 2017. The annualized peak of 6.65 million convention attendees occurred in December 2017. The city anchors the Las Vegas Valley metropolitan area and is the largest city within the greater Mojave Desert. Las Vegas is Convention attendance saw significant gains in 2016, with 10 an internationally renowned major resort city, known primarily months above 10% YOY growth. Through all of 2017 the YOY for its gambling, shopping, fine dining, entertainment, and rate of growth had fallen sharply to 3.9%. During the first 8 nightlife. The Las Vegas Valley as a whole serves as the leading months of 2018, attendance grew by an average of 3.5% YOY. financial, commercial, and cultural center for Nevada. Demand growth is being limited by maxed-out capacities at Las Vegas’ various convention facilities. The good news: In The city bills itself as The Entertainment Capital of the World, June 2017, the Las Vegas Convention and Visitors Authority’s and is famous for its mega casino–hotels and associated Board of Directors gave final approval for an expansion and activities. It is a top three destination in the United States for renovation of the Las Vegas Convention Center, which will business conventions and a global leader in the hospitality allow the city to host more conventioneers. The expansion is industry, claiming more AAA Five Diamond hotels than any expected to be completed by 2022. other city in the world. Today, Las Vegas annually ranks as one of the world's most visited tourist destinations.