THE BRIDGE CENTER Lone Tree, Colorado
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THE BRIDGE CENTER Lone Tree, Colorado Offering Memorandum NON-ENDORSEMENT & DISCLAIMER NOTICE CONFIDENTIALITY & DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved. NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. THE BRIDGE CENTER LONE TREE, COLORADO EXCLUSIVELY LISTED BY BARRY HIGGINS Senior Vice President Investments Denver, Colorado Office 303.328.2012 [email protected] License CO EA 748415 OFFICES NATIONWIDE AND THROUGHOUT CANADA WWW.MARCUSMILLICHAP.COM THE BRIDGE CENTER LONE TREE, COLORADO TABLE OF CONTENTS EXECUTIVE SUMMARY COMPETITIVE COMPARABLES SECTION 1 SECTION 4 01 Investment Overview • Investment Highlights 23 Sales Comparables • Rent Comparables PROPERTY DESCRIPTION MARKET OVERVIEW SECTION 2 SECTION 5 07 Property Details • Regional Map • Property Photos 33 Location Overview • Location Highlights Market Aerial • Demographics FINANCIAL ANALYSIS SECTION 3 15 Pricing Details • Operating Data • Rent Roll EXCLUSIVELY LISTED BY: 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 or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as- sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Y0050314 EXECUTIVE SUMMARY THE BRIDGE CENTER THE BRIDGE CENTER // EXECUTIVE SUMMARY THE BRIDGE CENTER // 1 INVESTMENT OVERVIEW THE BRIDGE CENTER // EXECUTIVE SUMMARY THE BRIDGE CENTER // Marcus & Millichap is pleased to exclusively present to qualified investors the Bridge Center, located in the Park Meadows Entertainment District of Lone Tree, Colorado. This 98 percent occupied office/retail investment opportunity is anchored by Panera Bread, a national brand restaurant retailer. Bridge Center is a highly visible asset just south of the General Growth Park Meadows Mall, a 1.6 million square foot shopping mall including anchor tenants such as Dillard’s, JCPenney, Macy’s and Nordstrom. The average household income is above $140,000 within a three mile radius, and the population is estimated to increase over nine percent over the next five years. It sits just off South Yosemite Street and Park Meadows Boulevard just two blocks from the C-470 interchange. Bridge Center is virtually in the heart of shopping, entertainment and the major employment district of Lone Tree. The anchor, Panera Bread, has been in occupancy for 15 years and in 2017 extended their lease for an additional ten years. The Panera Bread system consists of approximately 2,200 locations in the United States and Canada. Having been publicly traded on NASDAQ (PNRA) for many years, Panera was recently acquired by JAB Holding Company, in a $7.5 billion transaction. The Franchisee who owns and operates this location also owns and operates all 38 Panera Bread locations Colorado along with 98 other Panera Bread locations in several other states. 24,486 SQUARE FOOT SHOPPING CENTER IN This investment opportunity is being offered free of debt thus allowing a new purchaser the LONE TREE, CO opportunity to place new financing on the property at today’s historically low interest rates. 2 INVESTMENT HIGHLIGHTS ► Satellite Retail/Office Space to Park Meadows Mall ► 98.98% Occupied ► Anchored by Panera Bread ► Panera Bread’s lease Extended to 04/2027 with Options, 5% Escalator in Year Six and Options ► Some Medical Tenants On Site ► Highly Visible with High Traffic Counts ► Outstanding Demographics with Average Household Income Exceeding $140,000 ► One of the Most Dense Retail Areas in the Denver MSA OFFERING HIGHLIGHTS THE BRIDGE CENTER THE BRIDGE CENTER // EXECUTIVE SUMMARY THE BRIDGE CENTER // 9233 Park Meadows Drive, Lone Tree, CO 80124 OFFERING PRICE CAP RATE CASH FLOW $6,800,000 7.17% 9.07% Price/SF $277.71 Occupancy 98.98% Net Leasable Area 24,486 Year Built 1999 Lot Size 3.50 AC Construction Reinforced Concrete 2231-03-3-05-019 Assessor APN 2231-03-3-05-020 (Douglas County) Zoning PD 4 Regional Map THE BRIDGE CENTER THE BRIDGE CENTER // PROPERTY DESCRIPTION PROPERTY THE BRIDGE CENTER // 5 THE BRIDGE CENTER // PROPERTY DESCRIPTION PROPERTY THE BRIDGE CENTER // THE BRIDGE CENTER Local Map 6 RETAIL MARKET AERIAL SUBJECT THE BRIDGE CENTER // EXECUTIVE SUMMARY THE BRIDGE CENTER // 7 AERIAL THE BRIDGE CENTER // EXECUTIVE SUMMARY THE BRIDGE CENTER // QUEBEC VILLAGE CENTENNIAL PROMENADE MEADOWS MARKETPLACE PARK MEADOWS MALL PROPOSED RE-DEVELOPMENT SITE SOUTH DENVER MARKETPLACE SUBJECT PROPERTY COSTCO ENTERTAINMENT DISTRICT 8 AERIAL Located less than one mile from Bridge Center, Park Meadows Mall is Colorado’s biggest and best shopping mall and known as “Colorado’s only retail resort”. It boasts 185 stores and restaurants, and is anchored by Dillard’s, Nordstrom, Dick’s Sporting Goods and Macy’s. Park Meadows is also home to the Colorado flagship stores of several national tenants, including Arhaus Furniture, Nordstrom and Pottery Barn. In addition to the 12 quick-serve restaurants in the dining hall, there are 14 full-service restaurants on premise. Park Meadows Mall is a recipient of ICSC’s International Design and Development Award and the Urban Land Institutes Award of Excellence, and is currently owned by General Growth Properties. PARK MEADOWS MALL COSTCO PROPOSED RE-DEVELOPMENT SITE THE BRIDGE CENTER // EXECUTIVE SUMMARY THE BRIDGE CENTER // SUBJECT PROPERTY 9 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 or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as- sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Y0050314 FINANCIALFINANCIAL ANALYSISANALYSIS THETHE BRIDGE BRIDGE CENTER CENTER THE BRIDGE CENTER // FINANCIAL ANALYSIS THE BRIDGE CENTER // 1711 PRICING DETAILS OPERATING DATA PRICE $6,800,000 INCOME YEAR 1 THE BRIDGE CENTER // FINANCIAL ANALYSIS THE BRIDGE CENTER // Down Payment 30% / $2,040,000 Scheduled Base Income $766,284 Price Per SqFt $277.81 Expense Reimbursements $140,512 Effective Gross Income $906,796 Rentable Built Area (RBA) 24,486 Vacancy (2.5%) ($22,670) Occupancy 98.98% Gross Effective Income $884,126 RETURNS Total Operating Expenses $396,734 CAP Rate 7.17% Net Operating Income $487,392 Cash-on-Cash 9.07%. Debt Service $302,284 Debt Coverage Ratio 1.61 Net Cash Flow After Debt Service $185,108 (9.07%) FINANCING OPERATING EXPENSES YEAR 1 Loan Amount 70% / $4,760,000 Real Estate Taxes* $219,000