American Fork Shopping Center
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AMERICAN FORK SHOPPING CENTER SCOTT BRADY GARRETT BLOMQUIST [email protected] [email protected] 648 EAST STATE STREET direct 801.456.8804 direct 801.727.4414 AMERICAN FORK, UT 84003 View Profile View Profile TABLE OF CONTENTS INVESTMENT SUMMARY PROPERTY FEATURES & MAPS DEMOGRAPHICS AREA WHY UTAH 4 & FINANCIALS 9 LAND OVERVIEW 10 14 15 INFORMATION 16 AMERICAN FORK SHOPPING CENTER 2 312 East South Temple l Salt Lake City, UT 84111 l Office 801.456.8800 l www.mtnwest.com AMERICAN FORK SHOPPING CENTER AMERICAN FORK CONFIDENTIALITY SHOPPING CENER AND DISCLOSURE 648 EAST STATE STREET Mountain West Commercial Real Estate has been retained on an exclusive basis to market the AMERICAN FORK, UT 84003 property described as 648 East State Street, American Fork, UT 84003. Broker has been authorized by seller of the property to prepare and distribute the enclosed information for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease PREPARED BY information may be made available upon request following the mutual execution of a letter of intent or contract to purchase between the Seller and the prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon your analysis. If your offer results in the SCOTT BRADY Seller choosing to open negotiations with you, you will be asked to provide financial references. The [email protected] eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the direct 801.456.8804 View Profile transaction and such other matters as the Seller deems appropriate. The Material is intended solely for the purpose of soliciting expressions of interest from qualified GARRETT BLOMQUIST investors for the acquisition of the Property. The Material is not to be copied and /or used for any [email protected] other purpose or made available to any other person without the express written consent of Broker direct 801.727.4414 or Seller. The Material does not purport to be all-inclusive or to contain all of the information that View Profile a prospective buyer may require. The information contained in the material has been obtained from the Seller and other sources and has not been verified by the Seller or its affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma. Seller reserves the right, for any reason, to withdraw the Property from the Market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto. Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information. 312 East South Temple l Salt Lake City, UT 84111 l Office 801.456.8800 l www.mtnwest.com 3 INVESTMENT SUMMARY INVESTMENT HIGHLIGHTS LISTING PRICE • 100% Occupied on NNN Leases | Over 85% of Tenants Are $24,460,000 Nationally Recognized • Shopping Center is Anchored by VASA Fitness, Big Lots, & Jo-Ann NOI Fabric & Crafts $1,673,009 • Strong Historical Occupancy | 14.5 Year Average Tenant History • Located in the Heart of Utah County and Just South of Utah’s CAP RATE “Silicon Slopes” 7.00% • New 10 year lease with Dollar Tree • Potential For Additional Income | Undeveloped Pad Site Included CURRENT OCCUPANCY • Recent 5 year extension with Big Lots 100% • Top performing VASA Fitness • High Grossing Del Taco that has been at this location for 40+ years TOTAL GLA (SF) 149,928 TOTAL LAND SIZE (ACRES) 13.35 PRICE/SF $163.14 AMERICAN FORK SHOPPING CENTER 4 312 East South Temple l Salt Lake City, UT 84111 l Office 801.456.8800 l www.mtnwest.com AMERICAN FORK SHOPPING CENTER INVESTMENT SUMMARY INVESTMENT SUMMARY EXISTING CMBS LOAN *(MUST BE ASSUMED) INCOME: Buyer Assumption Fee (0.50%) $66,250 Gross Rental Income $1,688,566 Down Payment 46% $11,210,000 CAM Reimbursement $198,924 Loan Amount 54% $13,250,000 Tax Reimbursement & Additional CAM Reconciliation $181,154 Interest Rate 4.47% 2019 Miscellaneous Income $9,862 Funding Month October-20 GROSS INCOME $2,078,506 Loan Due August-25 Economic Vacancy Factor (Excluding Vasa, Jo-Ann, Big Lots & Dollar Tree) 5% ($25,418.64) Amortization Period (Years) 30 EFFECTIVE GROSS INCOME $2,053,087 Debt Coverage Ratio (DCR) 2.08 Annual Debt Service ($802,798) EXPENSES Repairs: General $2,875 *Defeasance Cost (ONLY IF LOAN IS NOT ASSUMED) $1,900,000 Repairs: Electrical $5,315 Repairs: Plumbing $1,667 CASH ON CASH RETURNS - YEAR 1 Landscaping $10,077 Cash Flow After Debt Service (Year 1) $870,211 Fire Sprinkler Alarm $7,801 Cash on Cash Return Before Principal Reduction (Year 1) 7.76% Management Fee $75,458 Principal Reduction (Year 1) $214,890 Insurance - Property $27,720 Cash on Cash Return After Principal Reduction (Year 1) 9.68% Property Tax $177,657 Parking Lot Sweeping $5,973 Snow Removal $20,038 Parking Lot Repairs $2,568 Taxes $300 Electricity $7,060 Water & Sewer $30,984 Grease Trap $500 Roof Repairs and Maintenance $4,085 TOTAL EXPENSES ($380,078.38) NET OPERATING INCOME $1,673,009 Cap Rate 7.00% Market Value (Income Capitalization) $23,900,000 Undeveloped Pad Site (Land Value) $560,000 TOTAL PURCHASE PRICE $24,460,000 Price/SF $163.14 312 East South Temple l Salt Lake City, UT 84111 l Office 801.456.8800 l www.mtnwest.com 5 RENT ROLL CAM INCOME & RECOVERY METHOD LEASE TERMS WITH OPTIONS & ESCALATIONS SUITE # TENANT NAME SQ. FT. % GLA PSF MONTHLY ANNUAL LEASE TYPE REMAINING START EXPIRES PSF MONTHLY ANNUAL Anchor 1 VASA Fitness 57,670 38.47% $0.79 $3,774 $45,288.00 NNN 12.1 Years 9/1/02 7/31/32 $10.77 $51,769 $621,228 Rent Increase Contract Rent 8/1/22 7/31/27 $11.85 $56,945 $683,340 Rent Increase Contract Rent 8/1/27 7/31/32 $13.03 $62,640 $751,680 Anchor 2 Big Lots 28,011 18.68% $0.67 $1,564 $18,768.00 NNN 4.6 Years 3/1/04 1/31/25 $7.58 $17,694 $212,323 Anchor 3 Jo-Ann Fabric & Crafts 25,436 16.97% $0.82 $1,744 $20,928.00 NNN 7.5 Years 9/1/01 12/31/27 $9.50 $20,137 $241,642 Rent Increase Contract Rent 1/1/23 12/31/27 $10.50 $22,257 $267,078 B Mandalyn Academy 3,570 2.38% $3.01 $895 $10,740.00 NNN MTM 5/1/05 12/31/18 $16.81 $5,000 $60,000 L The Forum Academy 7,100 4.74% $3.10 $1,835 $22,020.00 NNN 7.9 Years 6/1/18 5/31/28 $12.18 $7,207 $86,478 Rent Increase Contract Rent 7/1/21 6/30/22 $12.36 $7,315 $87,775 Rent Increase Contract Rent 7/1/22 6/30/23 $12.55 $7,424 $89,092 Rent Increase Contract Rent 7/1/23 6/30/24 $12.74 $7,536 $90,428 Rent Increase Contract Rent 7/1/24 6/30/25 $12.93 $7,649 $91,785 Rent Increase Contract Rent 7/1/25 6/30/26 $13.12 $7,763 $93,161 Rent Increase Contract Rent 7/1/26 6/30/27 $13.32 $7,880 $94,559 Rent Increase Contract Rent 7/1/27 5/31/28 $13.52 $8,000 $95,997 G, H, I Dollar Tree 10,000 6.67% $2.82 $2,350 $28,200.00 NNN 10.3 Years 10/1/20 9/30/30 $10.50 $8,750 $105,000 S Grease & Go 2,920 1.95% $3.24 $788 $9,456.00 NNN 0 Years 8/1/06 6/30/20 $14.94 $3,637 $43,639 F China Kitchen 2,616 1.74% $3.24 $706 $8,472.00 NNN 4.9 Years 1/1/06 5/31/25 $17.09 $3,726 $44,717 Option 2 (4 Year) R Del Taco 1,980 1.32% $0.90 $149 $1,788.00 NNN 4.5 Years 3/1/79 12/31/24 $35.38 $5,838 $70,062 Rent Increase Contract Rent 1/1/22 12/31/24 $37.86 $6,247 $74,966 C, D Bobby Lawrence Karate 3,005 2.00% $3.10 $777 $9,324.00 NNN 10.1 Years 2/1/10 7/31/30 $15.97 $4,000 $48,000 Rent Increase Contract Rent 5/1/21 4/30/22 $16.45 $4,120 $49,440 Rent Increase Contract Rent 5/1/22 4/30/23 $16.95 $4,244 $50,923 Rent Increase Contract Rent 5/1/23 4/30/24 $17.45 $4,371 $52,451 Rent Increase Contract Rent 5/1/24 4/30/25 $17.98 $4,502 $54,024 Rent Increase Contract Rent 5/1/25 4/30/26 $18.52 $4,637 $55,645 Rent Increase Contract Rent 5/1/26 4/30/27 $19.07 $4,776 $57,315 Rent Increase Contract Rent 5/1/27 4/30/28 $19.65 $4,920 $59,034 Rent Increase Contract Rent 5/1/28 4/30/29 $20.23 $5,067 $60,805 Rent Increase Contract Rent 5/1/29 4/30/30 $20.84 $5,219 $62,629 AMERICAN FORK SHOPPING CENTER 6 312 East South Temple l Salt Lake City, UT 84111 l Office 801.456.8800 l www.mtnwest.com AMERICAN FORK SHOPPING CENTER RENT ROLL CAM INCOME & RECOVERY METHOD LEASE TERMS WITH OPTIONS & ESCALATIONS SUITEO # WeightTENANT Watchers NAME SQ.1,746 FT.