1050 INDIGO DRIVE Las Vegas, NV 89145 RARE SUMMERLIN INVESTMENT OPPORTUNITY SELLER MAY CONSIDER a CARRY BACK
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1050 INDIGO DRIVE Las Vegas, NV 89145 RARE SUMMERLIN INVESTMENT OPPORTUNITY SELLER MAY CONSIDER A CARRY BACK Offered by: Service You Deserve. People You Trust. Jarrad Katz, SIOR, CCIM Galit Kimerling 5960 South Jones Boulevard Executive Vice President I Principal Vice President Las Vegas, Nevada 89118 Lic#: BS.0145888 Lic#: S.0065773 T 702.388.1800 | F 702.388.1010 702.610.1002 323.244.1628 www.mdlgroup.com [email protected] [email protected] HIGHLIGHTS INVESTMENT OVERVIEW ACQUISITION NARRATIVE LOCATION 1050 Indigo Drive, Las Vegas, NV 89145 This offering is a rare opportunity to acquire a quality office PARCEL NUMBER 137-368-110-17 asset in an A+ location. The property is fully occupied with sig- nificant upside going forward. Current rents are ±40% below INTERSECTION Indigo Drive & Charleston Boulevard market rents of like kind office properties within the immediate area. It would be incredibly difficult to replace this asset, due SQUARE FOOTAGE ±20,774 to an absence of available land for commercial development in The JGS Group, Douglas M. Edwards, P.C, Michael J. Mona, the sub-market. TENANTS Jr., Wiley Law LLC, Naylor & Braster, Envision PURCHASE PRICE $5,500,000 ($264.75 PSF) ACTUAL CAP RATE 6.14% PROFORMA CAP RATE 9.99% NOI $348,116.46 LEASE TYPE Full service gross on most leases RENTAL ESCALATIONS 3% on average YEAR BUILT 2004 LOT SIZE ±1.5 Acres HIGHLIGHTS AREA DESCRIPTION In 1952 Howard Hughes purchased a ±25,000 acre parcel in Southern Nevada to possibly relocate his California based airline operation. Hughes ended up not relocating after all. Fast forward to 1988 the Summerlin mas- ter-planned community commences. For ten consecutive years, 1997 to 2007, Summerlin has ranked #1 among master-planned communities na- tionwide. In 2002 Summerlin was named as Community of the Year by the Urban Land Institute. Today, in its 27th year of development, Sum- merlin continues to win awards and is nearing 100,000 residents. With ±6,000 gross acres left to develop the best of Summerlin is yet to come! PROPERTY DESCRIPTION The subject property is a two-story office building totaling ±20,774 square feet built in 2004. The building is currently demised into seven (7) suites. It is comprised of wood and steel construction with attractive stone accents. Situated on 1.5 acres or 65,340 square feet, the property is zoned Planned Community District (P-C) by Clark County, and is located on Indigo Drive and West Park Drive in the highly desirable Howard Hughes Plaza. 1050 Indigo Drive is situated within the Northwest Las Vegas office sub- market. The property is conveniently accessed from I-215 via Charleston Blvd. (1.1 miles) and Summerlin Parkway at Town Center (2.4 miles). It is 1.5 miles from Downtown Summerlin and Red Rock Resort. The property is surrounded by abundant walkable retail and restaurant amenities including Downtown Summerlin, the Vegas Golden Knights Practice Facility, and the Las Vegas Ballpark: a Triple-A Pacific Coast League stadium that is cur- rently under construction. CLOSE AERIAL VEGAS VALLEY MAP LOCATION HIGHLIGHTS: SITE • Centrally located with easy access to I-215 Freeway and Summerlin Parkway as well as The Las Vegas Strip & Downtown Las Vegas • The building is surrounded by restaurants and amenities OVERVIEW MAP SUMMERLIN MAP VISITOR CENTER RED ROCK NATIONAL CONSERVATION AREA CONSERVATION NATIONAL SPRING MOUNTAINRANGE RED ROCKCANYON Future Villages C H A R L E S T + O N SKY VISTA BLM LAND FAR HILLS FAR Future Village LS THIL FOO DESERT A L T A D ROC RE K RANCH C D L H A E A S S K A R E E H L R A E S M R T A S U A L I E T ER N T T M O A EN A C N D N N M W F M TO AN A E L E SA S Z A R A I P M L A T R K R I I R E T N N TOWN CEN O G P P O I A C A R N K A T W O A W N Y HUALAPAI HUALAPAI C E SUNSET N T E S R U M M E R L I N P A CHEYENNE GRAND CANYON R K W GRAND CANYON A C Y A MAULE L A N K Y V E O I L M N HILLS CENTER L E R A A U G D FORT APACHE N FORTAPACHE E CE R FORT APACHE NTE PATRICK CH A R L E ST ON 2 1 5 RAMPART B E L T W A Y DURANGO DURANGO SUNSET T DE F ARBY R L RUSSEL SA RAMPART O A SER P M H ICANA A IN T L V R A I G EG A N L K O N E AS DURANGO M E A D BUFFALO BUFFALO SUMMERLIN PARKWAY BUFFALO BUFFALO 215 BELTWAY Updated 0627 FLOOR PLAN FIRST FLOOR SF: ±10,325 SECOND FLOOR SF: ±10,449 Floor plan not to scale, for marketing purposes only. PROPERTY IMAGES *Click here for YouTube virtual tour RENT ROLL Additional Monthly Market rates Market rates Rent monthly rent ($2.75 PSF FSG) ($2.75 PSF Rate variance Lease Lease rentable SF monthly rent (janitorial) PSF Annual Rent Monthly FSG) Annually actual vs. market commencement Expiration Options to renew 110 The JGS Group 1,672 $3,448.00 $2.06 $41,376.00 $4,598.00 $55,176.00 ($13,800.00) 9/1/2015 8/31/2021 112 Douglas M. Edwards, P.C. 1,821 $3,676.81 $2.02 $44,121.72 $5,007.75 $60,093.00 ($15,971.28) 1/1/2017 12/31/2020 One (1) - 2-year options 115 Michael J. Mona, Jr. 1,112 $1,800.00 $1.62 $21,600.00 $3,058.00 $36,696.00 ($15,096.00) 8/15/2020 8/14/2021 120 Oronoz & Ericsson 3,153 $6,129.00 $1.94 $73,548.00 $8,670.75 $104,049.00 ($30,501.00) 3/1/2016 2/28/2022 option to extend for ninety (90) days 130/140 Envision 2,568 $4,100.00 $1.60 $49,200.00 $7,062.00 $84,744.00 ($35,544.00) 11/16/2019 11/15/2022 Right of first refusal on 1st floor auto renewal for 5-years unless notified by tenant 200 Naylor Braster 5,843 $11,255.09 $200.00 $1.93 $137,461.08 $16,068.25 $192,819.00 ($55,357.92) 11/1/2016 10/31/2021 30-days prior to lease expiration 200B Wiley Law L.L.C. 4,606 $8,500.00 $375.00 $1.85 $106,500.00 $12,666.50 $151,998.00 ($45,498.00) 8/1/2020 7/31/2023 20,775 $38,908.90 $1.86 $473,806.80 $57,131.25 $685,575.00 ($211,768.20) ACTUAL: ASKING PRICE: $5,500,000.00 $264.74 Gross Square Footage: 20,775 Actual Asking CAP rate: 6.33% Annual Expenses: $102,000.00 Future CAP rate with Market rents: 9.99% Annual Expenses PSF: $4.91 Monthly Expenses PSF: $0.41 Gross Rent per rent roll: $473,806.80 PROFORMA: Gross Rent per rent roll PSF: $22.81 Gross Proforma Rent with market rates: $685,575.00 Gross Rent per rent roll PSF monthly: $1.90 Annual Expenses: ($102,000.00) Vacancy factor: ($34,278.75) 5% Gross Rent Per Rent Roll: $473,806.80 NOI: $549,296.25 Annual Expenses: ($102,000.00) Vacancy factor: ($23,690.34) 5% NOI: $348,116.46 VEGAS OVERVIEW ADVANTAGES OF DOING BUSINESS IN NEVADA LAS VEGAS KEY INDUSTRIES • 40 Million people visit Nevada each year and is the #1 for economic • Tourism, Gaming and Hospitality development programs in terms of job creation, retention and training • Aerospace & Defense • McCarran Airport is the nation’s 7th busiest airport • Heath & Medical Services • #1 for new business launches • Information Technology • Consistently one of the “Top 10” most business-friendly states • Manufacturing & Logistics • NO corporate or personal income tax • Mining • NO inventory tax • Natural Resource Technologies • NO franchise tax - Agriculture • NO unitary tax - Energy • NO special intangible tax - Water • Able and willing workforce in right-to-work-state *Source by www.diversifynevada.com • #2 for small business survival VEGAS OVERVIEW DEMOGRAPHICS 2 MILE 5 MILES 10 MILES 2020 Population ±64,604 ±316,676 ±955,505 2020 Medium Household Income $85,904 $65,984 $58,633 VEGAS OVERVIEW MSG SPHERE Work has begun on the massive, 18,000-seat MSG Sphere at The Venetian in Las Vegas. The new ven- ue is set to change live performance in Sin City as we know it, not to mention the famous skyline. This spherical structure will be the first of its kind. The MSG Sphere will feature fully programmable, high- tech video screens on the interior and exterior. Plus, top-notch sound capabilities featuring vibrations from a infrasound haptic floor system. The MSG Sphere facility is on pace to open in the 2021 fiscal year (July 1, 2020 - June 30, 2021). LAS VEGAS STADIUM The Oakland Raiders received the NFL’s approval to move to Sin City for the 2020 NFL season. Las Vegas has proposed a new $1.9 billion stadium just to the west to the strip. The venue’s horse-shoe shape LAS VEGAS CONVENTION CENTER designed by Manica Architecture, would accommodate an audience Las Vegas Convention Center (2017-2024) – A $1.4-billion project that extends to the Strip of 65,000 spectators, 8,000 cars, tailgating amenities and mixed-use and will include 600,000 square feet of exhibit hall, outdoor exhibition space and a com- commercial facilities.