Offering Memorandum
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Offering¤£9 5Memorandum ´ #$*15 Æÿ215 o Æÿ215 NORTH LAS VEGAS SUMMERLIN ¤£95 SUNRISE MANOR #$*15 ^ LAKE MEAD NATIONAL L A S RECREATION AREA V E G A S SPRING VALLEY PARADISE WHITNEY o ¤£95 215 LAKE Æÿ MEAD LAKE MEAD NATIONAL HENDERSON RECREATION AREA ENTERPRISE #$*215 ¤£93 C #$*15 BOULDER o lo CITY ra d o R i v e r ¤£95 Single Tenant Absolute NNN Investment 4741 E. Charleston Boulevard, Las Vegas, Nevada 89104 Presented by Newmark Grubb Knight Frank Ben Millis - Owner/Licensee Managing Director 702.405.1726 Chris Beets Associate Director 702.289.4617 David A. Lipp, CCIM - Owner/Licensee Director 305.321.8824 Diane McKinney Marketing Coordinator 702.405.1724 3930 Howard Hughes Parkway, Suite 180 Las Vegas, NV 89169 Phone 702.733.7500 Fax 702.862.8242 EXECUTIVE SUMMARY........................................................................................... 1 - 2 TENANT INFORMATION....................................................................................... 4 - 5 AERIALS........................................................................................................................ 7 - 8 DISCOUNTED CASH FLOW ANALYSIS.............................................................. 10 . THE COMPARABLES................................................................................................. 11 - 18 LAS VEGAS RETAIL REPORT.................................................................................. 20 - 22 LAS VEGAS OVERVIEW........................................................................................... 24 - 29 DEMOGRAPHICS...................................................................................................... 31 - 32 ABOUT THE TEAM................................................................................................... 34 - 38 DISCLAIMER............................................................................................................... 39 PERMITTED PLANS & ELEVATIONS - 2013.................................................... 40 - 52 TABLE OF CONTEnts EXECUTIVE SUMMARY DESTINATIONS L I V I N G - Phase I INVESTMENT SUMMARY Price: $662,664 Cap Rate: 6.50% Price Per Sq. Ft.: $144.05 NOI: $43,072.56 LEASE SUMMARY Annual Increases: 2% Lease Commencement: July 1, 2013 Lease Expiration: June 30, 2023 Term: 10 years Options: Two (2) Five (5) Year Options PROPERTY DESCRipTION APN 161-05-510-007 Building Sq. Ft. ±4,600 Acres 0.63 Year Built 1977 / renovated 2013 Construction Wood / Stucco Design Store Front Glass Entry Retail Zoning General Commercial (C-2) Parking Ratio 10 / 1,000 (49 spaces) Traffic Counts 53,500 cars per day 1 EXECUTIVE SUMMARY DESTINATIONS L I V I N G - Phase I INVESTMENT HIGHLIGHTS CREDIT TENANT: Corporate guarantee from TMX Finance LLC which has over 1,350 loca- tions nationwide and has a debt rating of B3 from Moody’s. ABSOLUTE NNN LEASE: Tenant pays all operating expenses directly including taxes, insurance, repairs and maintenance. No management is required. HIGH TRAFFIC / VISIBILITY: Located on Charleston Blvd. with prominent signange and daily traffic of over 53,500 vehicles. ASSUMABLE NON-RECOURSE FINANCING: $240,000 at 5% interest 20 year amortization and matures May 31, 2023. LOW TAX ENVIRONMENT: No state tax, no income tax, no personal property tax, no inven- tory tax and very low property taxes. BELOW MARKET RENT: Provides upside and reduces risk for a long term owner. 2 EXECUTIVE SUMMARY TENANT INFORMATION TENANT InfoRmaTION • TMX Finance is a privately held consumer specialty finance company based in Savannah, GA and founded in 1998. It is one of the largest, fastest growing and most profitable companies of its’ kind in the United States. The company was formerly known as TitleMax Holdings, LLC and changed its name to TMX Finance LLC in June 2010. • Today the company has over 1,350 stores in 12 states. Their family of brands includes TitleMax, TitleBucks, TMX Credit and InstaLoan. They have aggressive growth plans to double in size over the next five years. In 2012, 250 new stores were opened. According to corporate officials, stores are rarely closed. • TitleMax’s parent company, TMX Finance LLC has been given a LT Corporate Family Rating of B3 by Moody’s. • The TitleMax brand offers title loans for lien-free vehicles as well as insurance products in connection with these loans. They have a reputation for lower finance rates (up to 50% less interest) and outstanding customer service. They offer a viable financial alternative to selling a vehicle, enabling the customer to keep their car, and possibly, as a result, their job. • Websites: www.titlemax.biz www.titlemax.com www.tmxcareers.com 4 TENANT INFORMATION Period Rent per Sq. Ft. Monthly Rent Annual Rent 1‐Jul‐13 to 30‐Jun‐14 $0.75 $3,450.00 $41,400.00 1‐Jul‐14 to 30‐Jun‐15 $0.77 $3,519.00 $42,228.00 1‐Jul‐15 to 30‐Jun‐16 $0.78 $3,589.38 $43,072.56 1‐Jul‐16 to 30‐Jun‐17 $0.80 $3,661.17 $43,934.01 1‐Jul‐17 to 30‐Jun‐18 $0.81 $3,734.39 $44,812.69 1‐Jul‐18 to 30‐Jun‐19 $0.83 $3,809.08 $45,708.95 1‐Jul‐19 to 30‐Jun‐20 $0.84 $3,885.26 $46,623.12 LEASE ABSTRACT 1‐Jul‐20 to 30‐Jun‐21 $0.86 $3,962.97 $47,555.59 1‐Jul‐21 to 30‐Jun‐22 $0.88 $4,042.22 $48,506.70 TENANT TitleMax of Nevada, Inc. 1‐Jul‐22 to 30‐Jun‐23 $0.90 $4,123.07 $49,476.83 GUARANTOR TMX Finance LLC 1‐Jul‐23 to 30‐Jun‐24 $0.91 $4,205.53 $50,466.37 1‐Jul‐24 to 30‐Jun‐25 $0.93 $4,289.64 $51,475.70 LEASE DOCUMENTS Lease Agreement - Dated April 26, 2013 1‐Jul‐25 to 30‐Jun‐26 $0.95 $4,375.43 $52,505.21 Estoppel Certificate - Dated March 25, 2014 1‐Jul‐26 to 30‐Jun‐27 $0.97 $4,462.94 $53,555.31 LEASE COMMENCEMENT July 1, 2013 1‐Jul‐27 to 30‐Jun‐28 $0.99 $4,552.20 $54,626.42 LEASE EXPIRATION June 30, 2023 1‐Jul‐28 to 30‐Jun‐29 $1.01 $4,643.25 $55,718.95 1‐Jul‐29 to 30‐Jun‐30 $1.03 $4,736.11 $56,833.33 LEASEHOLD SIZE 4,600 Square Feet 1‐Jul‐30 to 30‐Jun‐31 $1.05 $4,830.83 $57,969.99 SECURITY DEPOSIT $3,450.00 1‐Jul‐31 to 30‐Jun‐32 $1.07 $4,927.45 $59,129.39 RENEWAL OPTIONS Two (2) Five (5) year renewal options 1‐Jul‐32 to 30‐Jun‐33 $1.09 $5,026.00 $60,311.98 OPERATING EXPENSE Paid directly by Tenant Initial Term BASE RENT $3,450.00 Option #1 Option #2 Period Rent per Sq. Ft. Monthly Rent Annual Rent 1‐Jul‐13 to 30‐Jun‐14 $0.75 $3,450.00 $41,400.00 1‐Jul‐14 to 30‐Jun‐15 $0.77 $3,519.00 $42,228.00 1‐Jul‐15 to 30‐Jun‐16 $0.78 $3,589.38 $43,072.56 1‐Jul‐16 to 30‐Jun‐17 $0.80 $3,661.17 $43,934.01 1‐Jul‐17 to 30‐Jun‐18 $0.81 $3,734.39 $44,812.69 1‐Jul‐18 to 30‐Jun‐19 $0.83 $3,809.08 $45,708.95 1‐Jul‐19 to 30‐Jun‐20 $0.84 $3,885.26 $46,623.12 1‐Jul‐20 to 30‐Jun‐21 $0.86 $3,962.97 $47,555.59 1‐Jul‐21 to 30‐Jun‐22 $0.88 $4,042.22 $48,506.70 1‐Jul‐22 to 30‐Jun‐23 $0.90 $4,123.07 $49,476.83 1‐Jul‐23 to 30‐Jun‐24 $0.91 $4,205.53 $50,466.37 1‐Jul‐24 to 30‐Jun‐25 $0.93 $4,289.64 $51,475.70 1‐Jul‐25 to 30‐Jun‐26 $0.95 $4,375.43 $52,505.21 1‐Jul‐26 to 30‐Jun‐27 $0.97 $4,462.94 $53,555.31 1‐Jul‐27 to 30‐Jun‐28 $0.99 $4,552.20 $54,626.42 1‐Jul‐28 to 30‐Jun‐29 $1.01 $4,643.25 $55,718.95 1‐Jul‐29 to 30‐Jun‐30 $1.03 $4,736.11 $56,833.33 1‐Jul‐30 to 30‐Jun‐31 $1.05 $4,830.83 $57,969.99 1‐Jul‐31 to 30‐Jun‐32 $1.07 $4,927.45 $59,129.39 1‐Jul‐32 to 30‐Jun‐33 $1.09 $5,026.00 $60,311.98 Initial Term Option #1 Option #2 5 TENANT INFORMATION AErials STEWART AVE D V L B B M A 44,513 L VPD D V L B 37,000 S VPD I L L E N 53,500 VPD CHARLESTON BLVD 4741 E CHARLESTON BLVD D P T S D 3 V P N E 0 V William Snyder D 32,76 R 515 Elementary School A #!$" 40,00 D V L B WYOMING AVE B M O A ¬ L 7 AERIALS LAKE MEAD BLVD 3 MILE E OWENS AVE #$!"15 V A N R D E V T L D S B WASHINGTON AVE El Dorado R A Cashman Desert Pines S E I Field S High School High School L O L D C D E V E V N L P L D N B BONANZA R B L B D Desert Pines Y T O M 1 MILE S Golf Course O I A R L W H Y 95 C ¤£ L STEWART AVE D O W N T O W N L D O W N T O W N O H CHARLESTON BLVD Y W ^_ K P N D OAKEY BLVD L N A N L A Y O L R S A Las Vegas M 515 High School #$!" SAHARA AVE Winterwood Golf Course T S R D A T Las Vegas D Boulder S O I Country Club E Station V L N C Casino I M B A O T U N DESERT INN RD L D U E O R Las Vegas M Boulevard National H WY Mall Golf Course 8 AERIALS DISCOUNTED CASH FLOW ANALYSIS DESTINATIONS L I V I N G - Phase I Initial Investment Performance Measures Before Tax Internal Rate of Return InitialPurchase InvestmentInitial Price InvestmentInitial Investment$662,664 Initial PerformanceInvestmentGross PerformanceRent Measures MultiplierPerformance Measures Measures15.38PerformanceBefore MeasuresTax InternalEOYBefore BeforeRateTax $Internal of TaxReturn Internal Rate Beforeof Rate Return Taxof Return Internal Rate of Return Initial Investment Performance Measures Before Tax Internal Rate of Return Purchase+ Price AcquisitionPurchasePurchase Price Costs$662,664 Price $662,664$3,313Purchase$662,664Gross Price Rent MultiplierCashGross on Rent$662,664 CashGross Multiplier Rent Multiplier15.38 Gross5.55%15.38 Rent Multiplier15.38EOY $EOY015.38EOY ($204,297) $ $ EOY $ Purchase Price $662,664 Gross Rent Multiplier 15.38 EOY $ + Acquisition+ Costs AcquisitionLoan Costs+ Acquisition Costs $3,313 Costs $3,313$2,320 Cash$3,313 on CashCashAcquisition on CashCash Capitalization on Cash5.55% Rate 5.55%6.50% 5.55%0 ($204,297)01 0 ($204,297)$11,328 ($204,297) + Acquisition Costs+ Acquisition$3,313 Costs $3,313Cash on Cash Cash on Cash5.55% 5.55%0 ($204,297) 0 ($204,297) + Loan Costs+- LoanMortgage Costs+ Loan Costs$2,320 $464,000$2,320 Acquisition$2,320 CapitalizationAcquisitionInternal RateAcquisition RateCapitalization of Return Capitalization6.50% Rate Rate13.00%6.50% 6.50%1 $11,32812 1 $11,328$12,190 $11,328