“A Single Tenant, NNN, Offering Located Approximately 5 Miles from the World-Famous Las Vegas Strip.”
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. LAS VEGAS STRIP LAS VEGAS, NV OFFERING MEMORANDUM 125,000 VPD DOTTY’S HEADQUARTERS 1 MILE E CHEYENNE AVE 55,000 VPD CIVIC CENTER DR “A Single Tenant, NNN, Offering Located Approximately 5 Miles from the World-Famous Las Vegas Strip.” “Where Main Street Meets Your Street” CONFIDENTIAL MEMORANDUM AND DISCLAIMER This Offering Memorandum and all information forwarded hereafter as an Addendum to (Offering Information) has been prepared solely for informational purposes (and not as an offer) to assist a prospective Purchaser in determining whether it wishes to proceed with an in-depth investigation of the Property. No representations or warranties, expressed or implied, as to the accuracy or completeness of the Offering Memorandum or any of its contents shall be deemed made, and no legal commitment or obligations shall rise, by reason of this Offering Memorandum or its contents. Prospective Purchasers are expected to review independently all documents relating to the property as to the accuracy and completeness of the information contained herein. All financial projections are provided for general reference purposes only. These projections have been based upon various assumptions relating to the general economy, competition and other factors beyond the reasonable control of Lucescu Realty (“Lucescu”) and the “Owner,” and therefore, are subject to material variation. The property described in the Offering Memorandum is being sold on an “As Is” basis. Lucescu, their respective officers, employees or representatives do not make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents. This Offering Memorandum is subject to modification and/or withdrawal from the market by Owner at any time without prior notice. By receipt of this Offering Memorandum, you agree that its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose directly or indirectly this Offering Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or Lucescu. You also agree that you will not use this Offering Memorandum or any of its contents in any manner detrimental to the interest of the Owner or Lucescu. Photocopying or other duplication is strictly prohibited. If prior to or upon your review of this Offering Memorandum you no longer have further interest or you do not wish to pursue negotiations leading to this acquisition, please return this Offering Memorandum in its original form to Lucescu. LAS VEGAS, NV 3RD QUARTER 2019 OFFERED BY: www.lucescurealty.com Samer Khalil Greg Wendelken 949.706.7772 ext. 105 480.685.5998 ext. 114 [email protected] [email protected] DRE License #B.1002258.CORP LAS VEGAS, NV OFFICE NEWPORT BEACH, CA OFFICE PHOENIX, AZ OFFICE 3960 Howard Hughes Pkwy., #500 500 Newport Center Drive, Suite 550 2415 E. Camelback Road, Suite 700 Las Vegas, Nevada 89169 Newport Beach, California 92660 Phoenix, Arizona 85016 Tel. 702.425.5781 ext: 114 Tel. 949.706.7772 ext. 100 Tel. 480.685.5998 ext. 114 DRE License #B.1002258.CORP DRE License #01506278 DRE License #CO641916000 Mr. Greg Wendelken, Managing Director Mr. Mark Lucescu, President Mr. Greg Wendelken, Managing Director [email protected] [email protected] [email protected] Newport Beach, CA • Las Vegas, NV • Phoenix, AZ • San Francisco, CA (2019) TABLE OF CONTENTS OFFERING SUMMARY Executive Summary . 4 Investment Summary . .7 . Rent Roll . 7 Area Map . 8 Local Map . 8 Regional Map . 9 AREA INFORMATION Las Vegas Metropolitan Area Information . 10 Lease Summary - Dotty’s . 22 Tenant Profile. .27 . APPENDIX Average Household Income Map . 30 Population Density Map . 30 Demographics . 31 “The Offering Property consists of a Single Tenant, Absolute NNN, Lease with Dotty’s Casino; one of Nevada’s most successful gaming and tavern companies. The Tenant operates 5 different concepts at the Subject Property: Dotty’s Casino (its flagship operation), La Villita Casino (a Mexican theme), Points! Casino (where points are earned and redeemed for products), Bourbon Street (a French Quarter theme) and Red Dragon Casino (a Chinese theme), all under the one lease, which has zero Landlord responsibilitiles.” LUCESCU REALTY /// OFFERING MEMORANDUM 2 DOTTY’S /// LAS VEGAS, NV LAS VEGAS, NV “The Property features a Rare Grandfathered, Non-Restricted, Gaming License, allowing 223 slot machines. A majority of gaming taverns in Nevada operate under a restricted gaming license (allowing up to 15 slot machines), creating tremendous value for Dotty’s at the Subject Property.” LUCESCU REALTY /// OFFERING MEMORANDUM 3 DOTTY’S /// LAS VEGAS, NV OFFERING SUMMARY EXECUTIVE SUMMARY LUCESCU REALTY has been selected, as the exclusive broker to offer for sale, a single tenant, NNN, Dotty’s (One of Nevada’s Most Successful Gaming and Tavern Businesses), located in Las Vegas, Nevada. The property is a 39,175 Square Foot Building within the Cheyenne Square Shopping Center. Additional features include: • Dominant Gaming Tavern Tenant. Dotty’s, founded in Oregon in 1991, is a privately owned slot machine parlor company with approximately 175 locations in Nevada, Oregon and Montana. The Company, which is a subsidiary of Nevada Restaurant Services, Inc. (“Dotty’s”), also has another 150 locations planned in Illinois, approximately 60 of which are already in operation. The Company is viewed as one of Nevada’s most successful gaming and tavern businesses, with more than 300,000 customers in its player database. • Single Tenant, Absolute NNN, Lease Providing Secure and Passive Income Stream. Dotty’s has Five (5), Five (5) Year Options remaining with fixed increases of 10% every Five (5) Years. Additionally, there are no Landlord Responsibilities per the Tenant’s absolute NNN Lease. • Offered Below Replacement Cost. Due to Dotty’s lease being at a fraction of today’s market rate, the property is being offered for sale at well below replacement cost. • Unique Opportunity to Acquire Multiple Dotty’s Concepts in a Single Building Located Less than 1 Mile from the Company’s Corporate Office.Dotty’s 160,000 SF headquarters is located approximately 1 mile from the Subject Property. Additionally, Dotty’s leases the entire premises at the Subject Property, but operates five (5) unique concepts: Dotty’s Casino (its flagship operation), La Villita Casino (a Mexican theme), Points! Casino (where points are earned and redeemed for products), Bourbon Street (a French Quarter theme) and Red Dragon Casino (a Chinese theme). Additionally, there is remaining square footage, already leased by Tenant, for the buildout of an additional concept in the future. • Rare Grandfathered, Non-Restricted, Gaming License. A majority of gaming taverns in Nevada operate under a restricted gaming license (allowing up to 15 slot machines). The Subject Property boasts non-restricted licensing, allowing 223 slot machines. This rare opportunity provides tremendous value for operators. LUCESCU REALTY /// OFFERING MEMORANDUM 4 DOTTY’S /// LAS VEGAS, NV LAS VEGAS, NV • All Cash Offering. The Property is being offered on an “All Cash” basis, “free and clear of existing debt” allowing a Buyer the opportunity to obtain maximum leverage at today’s favorable interest rates. • Highly Visible and Easily Accessible Site Adjacent to Interstate 15 On Ramp. The Property, adjacent to an Interstate 15 (125,000 VPD), is located at the Northeast Corner of East Cheyenne Avenue (55,000 VPD) and Civic Center Drive (9,300 VPD) and enjoys more than 1,000 feet of frontage along East Cheyenne Avenue. The Property features high visibility and is easily accessible via nine (9) ingress and egress points and one (1) pylon sign at the Property’s main entrance. • Densely Populated Trade Area. Located in one of the more densely populated trade areas within the Las Vegas Valley. Within a 3-mile radius, the current Estimated Population is 175,480. Within 5 miles, the Estimated Population more than doubles, to 454,880. • Proximity to the World Famous Las Vegas Strip. Las Vegas, NV, is the entertainment capital of the world and is home to 15 of the world’s 25 largest hotels. In 2018, Las Vegas welcomed more than 42 Million visitors who generated nearly $60 Billion for the economy. The area currently has $18.8 Billion worth of planned, proposed and current constructions projects that could reshape the Las Vegas Strip’s skyline by 2020. • One of the Fastest Growing Markets in the United States. 4,000-6,000 new residents enter Clark County each month. Since 2000, the population has grown more than 57% and is expected to grow an additional 11.7% by 2022. • 21st Century City. Inc. magazine named Las Vegas as the top entrepreneurial city in America, and Entrepreneur magazine named it the #1 western city for both economic growth and entrepreneurial activity. LUCESCU REALTY /// OFFERING MEMORANDUM 5 DOTTY’S /// LAS VEGAS, NV “Dotty’s has invested nearly $4M in improvements at the Subject Property to date. ” LUCESCU REALTY /// OFFERING MEMORANDUM 6 DOTTY’S /// LAS VEGAS, NV INVESTMENT SUMMARY LAS VEGAS, NV Offered for acquisition is a single tenant, NNN, Dotty’s located in Las Vegas, NV. Offering: Fee Simple Interest in the offered portion of Cheyenne Square, Las egas,V NV. Description: One (1) retail building Totaling 39,175 Square Feet in Gross Leasable Area. Location NEC East Cheyenne Avenue & Civic Center Drive, Las Vegas, Nevada. Purchase Price: $6,371,800 Terms: All Cash Net Operating Income (Year 1): $455,584 Cap Rate: 7.15% Building Size: 39,175 Price/SF: $162.65 Occupancy: 100% Year Built: 2015 Lease Type: NNN - No Landlord Responsibilities RENT ROLL Tenant Name Sq. Ft. Lease Commencement Lease Expiration Annual Rent Rental Increases Comments Dotty's 39,175 January 1, 2015 December 31, 2024 $455,584.20 10% Every Five Five (5), Five (5) (5) Years, Year Options.