JDS Real Estate Services

Bullard Corporate Center 5555 Bullard Ave , LA Investment Advisors

ENRI PINTO VP of National Sales CONFIDENTIALITY Miami Office AND DISCLOSURE Phone: 305-924-3094 [email protected] The information contained in the following Offering Memorandum (“OM”) is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Apex Capital Realty and should not be made available to any other person, entity, or affiliates without the written consent of Apex Capital Realty. By taking possession of and reviewing STEVEN VANNI the information contained herein the recipient agrees to hold and treat all such information Managing Director in the strictest confidence. The recipient further agrees that recipient will not photocopy or Miami Office duplicate any part of the offering memorandum. If you have no interest in the subject prop- Phone: 305-989-7854 erty at this time, please return this offering memorandum to Apex Capital Realty. This OM has been prepared to provide summary, unverified information to prospective purchasers, [email protected] 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. Apex Capital Realty 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 per- TONY SOTO formance of the property, the size and square footage of the property, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, Commercial Advisor or any tenant’s plans or intentions to continue its occupancy of the subject property. The Miami Office information contained in this OM has been obtained from sources we believe to be reliable; Phone: 305-607-6012 however, Apex Capital Realty has not verified, and will not verify, any of the information [email protected] contained herein, nor has Apex Capital Realty 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. MIGUEL PINTO BROKER OF RECORD NON-DISCLOSURE NOTICE MIAMI Apex Capital Real Estate Investment Services, Inc. (“Apex”) is not affiliated with, sponsored Phone: 305-607-6012 by, or endorsed by any commercial tenant or lessee identified in this OM. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or [email protected] sponsorship or endorsement by, said corporation of Apex, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Apex, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

JENNIFER STEIN BROKER OF RECORD DISCLAIMER In compliance with law Apex Capital Realty, cooperates with JDS Real Estate Ser- JDS Real Estate Services, Inc. vices licensed and registered in the state of Louisiana as a Broker of Record for any transac- BROKER OF RECORD tions detailed within the materials of this document. LOUSIANA LICENSE: 0995689716-Corp ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE OSL Cooperating Broker APEX LISTING AGENT FOR MORE DETAILS Phone: 213-446-5366 [email protected] Exceptional Investment Opportunity

Apex Capital in cooperation with JDS Real Estate Service, as exclusive ad- visor, is pleased to present the exceptional opportunity to acquire 5555 Bullard Ave, New Orleans, LA, 70128 (”The Property”). Situated on rough- ly 3.02 Acres, the 40,023 Square Foot shopping center was construct- ed in 1985 and fully renovated in 2002. The property is anchored by Davi- ta Dialysis, other tenants include State Farm, Louisiana State Rep John Bagneris’ Office, Jay’s Cleaners and The Royal Room. The center is leased to the current tenants as a 17,275 square foot retail center, attached to a separate 22,760 square feet of warehouse space, as such Davita Dialysis ac- counts for over 43% of total CAM recoveries related to expenses maintain- ing the center. The tenant mix provides for stable cash flow for new investors, as well as significant upside by leasing out the 22,760 Square Foot vacancy.

Fronting Bullard Ave, in between I-510, I-10, and US90, the property is strate- gically located in the central corridor of all the main thoroughfares in the area. The property is located within 1 mile of a Walmart Super Center, Home Depot, Lowes, and many other major retail attractions. The property is situated just 10-Miles from the French Quarter, the main economic driver in New Orleans.

The property currently has 22,760 Square Feet of vacant space. Original- ly a bowling alley, ownership converted the 40,035 square foot proper- ty into a retail and warehouse mixed use facility, the warehouse space is currently an owner occupied business, that will be vacating upon sale. This creates huge upside for future investors, while still receiving reliable income and recoveries from stable tenants. The 22,760 Square Feet can be rented in full to one tenant, such as a gym, grocery store, bowling alley, discount store, event space, food hall or subdi- vided to multiple tenants for storage generating even more cash flow.

Davita Dialysis 10 Yr NNN Lease Executive Summary Investment Opportunity Bullard Corporate Center

BULLARD CORPORATE CENTER - Apex Capital, as income and recoveries from stable cash flow. The exclusive advisor, is pleased to present the excep- 22,760 Square Feet can be rented in full to one tenant, tional opportunity to acquire 5555 Bullard Ave, such as a gym, grocery store, bowling alley, discount New Orleans, LA, 70128 (”The Property”). Situat- store, event space, food hall or subdivided to multiple ed on roughly 3.02 Acres, the 40,023 Square Foot tenants for storage generating even more cash flow. shopping center was constructed in 1985 and fully renovated in 2002. The property is anchored by STABLE CASH FLOW - With a current Net Operating Davita Dialysis, other tenants include State Farm, Income of $214,587 future investors will benefit Louisiana State Rep John Bagneris’ Office, Jay’s from stable cash flow. Davita Dialysis currently oc- Cleaners and The Royal Room. The center is leased cupies 7,540 Square Feet with 10 years left on the as a 17,275 square foot retail center, attached to lease, providing a key anchor tenant to future own- 22,760 square feet of warehouse space, as such Da- ers, State Farm also occupies 1,510 Square Feet of the vita Dialysis accounts for over 43% of total CAM center. With income coming from 2 credit tenants, recoveries. The tenant mix provides for stable cash future owners will be able to rely on the stable cash flow for new investors, as well as significant upside flow from two credit tenants while recapturing the by leasing out the 22,760 Square Foot vacancy. rent in the vacant space, creating significant upside.

Fronting Bullard Ave, in between I-510, I-10, and LOCATION - 5555 Bullard Ave is located in the af- US90, the property is strategically located in the fluent part of East New Orleans sub-market. central corridor of all the main thoroughfares in The Property’s strategic location along Bullard Ave, the area. The property is located within 1 mile of a provides customers with direct and easy access from Walmart Super Center, Home Depot, Lowes, and 3 Major highways, including: Interstate-10, Inter- many other major synergistic retailers. The proper- state-510, US Highway 90 (Chef Menteur Hwy). ty is situated just 10-Miles from the French Quar- This central location gives the property traffic counts ter, the main economic driver in New Orleans. of over 50,000 vehicles per day within a 1-Mile radi- us. Fronting Bullard Avenue, The Property has two VALUE - The property currently has 22,760 points of ingress and egress along the main road. Square Feet of vacant space. Originally a bowl- ing alley, ownership converted the 40,035 square foot property into a retail and warehouse mixed use facility, the warehouse space is currently an owner occupied business, that will be va- cating upon sale. This creates huge upside for future investors, while still receiving reliable

Incredible Value-Add opportunity by leasing 22,760 sq ft of warehouse space FINANCIALS Bullard Corporate Center 5555 Bullard Ave - New Orleans, LA

Pricing Summary | 5555 Bullard Ave is being offered free and clear of debt for $4,175,000 Bullard Corporate Center:

PRICING SUMMARY

Listing Price: $4,150,000

Retail Value: $2,682,339

Cap Rate: 8.00%

Net Operating Income: $214,587 Value Add Opportunity Warehouse Space Value: $1,479,160 5555 Bullard Ave currently has 22,260 Total Rentable Square Footage: 40,035 Square Feet of vacant space which is currently occupied by ownership. This Price Per Square Foot: $93 creates significant upside for poten- tial investors. By charging a below Percent Leased: 95% market rent of $7.00 per sf (Cur- rent submarket rent average Total Land Area: 3.02 Acres is $11.19), The dark space is valued at $1,479,160 when Year Renovated: 2002 capitalized at 8.50%.

Year Built: 1985 5555 Bullard Ave - New Orleans, LA Bullard Corporate Center

Lease Term Minimum Rent Annual Recovery Rent % of Lease Yrs. Wt. Avg.

Tenant Suite GBA % Start End Annual Monthly PSF CAM Taxes Insurance Admin Revenue Remain Remain

Jay’s Cleaners 1 1,200 5.0% 5/1/12 4/30/20 36,000 3,000 $18.00 1,363 1,768 737 205 13.1% 5.42 0.27 John Bagneris - State Rep 2 1,515 2.5% 11/1/14 10/31/19 13,200 1,100 $13.33 - - - - 4.3% - - The Royal Room 3 1,260 7.6% 1/1/14 12/31/21 24,000 2,000 $7.91 2,069 2,682 1118 310 9.8% 1.42 0.11 State Farm 4 2,965 3.8% 1/4/14 12/31/22 30,000 2,525 $19.87 - 1335 556 - 10.5% 1.00 0.04 Davita Dialysis** 5 4,160 18.8% 9/13/13 9/30/20 152,960 12,747 $20.29 12,828 16,630 6,930 - 62.2% 9.42 1.77

Vacant Retail Space 6 2,200 5.5% ------Warehouse Space 22,760 56.9% ------Total 40,035 100.0% $337,977 $28,165 $12.83 $16,261 $22,414 $9,341 $515 100.0% 1.31 3.93 Pro-Forma 2019 * The Retail space is separated from the 22,760 warehouse space on Davita Dialysis’ Lease, The retail tenants reimburse based on 17,250-Sqft. Income DEMOGRAPHICS Scheduled Base Rental Revenue $251,360

Expense Reimbursement Revenue Traffic Counts: 24,929 Common Area Maintenance $21,777 Taxes $30,744 1-Mile Population: 8,103 Insurance $12,812 Management Fee $515 3-Mile Population: 57,792 Total Reimbursement Revenue $65,333

5-Mile Population: 74,299 Effective Gross Income $316,333

Expenses 10-Mile Population: 325,356 Common Area Maintenance $27,294 Taxes $35,383 3-Mile Avg HH Income: $48,161.00 Insurance $10,288 Management Fee $15,437 5-Mile Avg HH Income: $46,835.00

Total Expenses $88,163 10-Mile Avg HH Income: $58,049.00

Net Operating Income $316,723 2018-2025 Avg Growth Projection: 9.17%

2010-2018 Avg Growth: 17.10% Bullard Corporate Center LEASE SUMMARY

GLA Lease Term Payment Dates Minimum Rent Tenant Suite % share Start End Start End Annual Monthly PSF % Change Option Notice

Jay’s Cleaners 100 2,000 1/1/2004 12/31/2023 1/1/2018 12/31/23 $36,000 $3,000 $18.00

Lease comments: Tenant: Utilities, CAM - Recovery based on Pro-Rata square footage, Taxes - Recovery based on Pro-Rata square footage, Insurance - Tenant shall maintain and reimburse for insurance expenses. Landlord: HVAC, Structure, Roof. LEASE STRUCTURE: NNN

John Bagneris State Rep 101 1,510 1/1/18 12/31/2019 1/1/18 12/31/19 $13,200 $1,100 $13.33

Lease comments: Government leases - Lease Structure: Gross

The Royal Room 102-103 3,035 1/1/18 12/31/19 1/1/18 12/31/19 $24,000.00 $2,000 $7.91

1/1/20 12/31/20 $30,000.00 $2,500 $9.88

Lease comments: Tenant: Utilities, CAM - Recovery based on Pro-Rata square footage, Taxes - Recovery based on Pro-Rata square footage, Insurance - Tenant shall maintain and reimburse for insurance expenses. Landlord: HVAC, Structure, Roof. LEASE STRUCTURE: NNN

State Farm Insurance 104 1,500 8/1/2009 12/31/22 8/1/18 7/31/19 $30,000 $2,500 $20.00

8/1/19 7/31/24 $33,000 $2,750 $22.00 10% Option #1 *90 Days

8/1/24 7/31/29 $36,300 $3,025 $24.20 10% Option #2 *90 Days

8/1/29 7/31/34 $39,930 $3,328 $26.62 10% Option #3 *90 Days

Lease comments: Tenant: Utilities, Taxes - Recovery based on Pro-Rata square footage, Insurance - Tenant shall maintain and reimburse for insurance expenses. Landlord: CAM, HVAC, Structure, Roof. LEASE STRUCTURE: Modified Gross Bullard Corporate Center LEASE SUMMARY

GLA Lease Term Payment Dates Minimum Rent Tenant Suite % share Start End Start End Annual Monthly PSF % Change Option Notice

Davita Dialysis 100 1,200 1/1/2004 12/31/2023 1/1/2018 12/31/23 $162,320 $13,526 $20.29 1/1/2023 12/31/28 $168,240 $14,020 $21.03 10% Option #1 *120 Days 1/1/2028 12/31/33 $185,064 $15,422 $23.13. 10% Option #2 *120 Days

Lease comments: Tenant: Utilities, CAM - Recovery based on Pro-Rata square footage of 17,000 (43%), Taxes - Recovery based on Pro-Rata square footage of 17,000 (43%), Insurance - Tenant shall main- tain and reimburse for insurance expenses - pro-rata share of 17,000 (43%). Landlord: HVAC, Structure, Roof. LEASE STRUCTURE: NNN Lakewood Plaza Shopping Center NEW ORLEANS - LOUSIANA MSA

East New Orleans Sub Market NEW ORLEANS - LOUSIANA MSA

East New Orleans Sub Market 5555 Bullard Ave - New Orleans, LA TENANT OVERVIEW

DaVita Inc. is an American healthcare com- home hemodialysis, vascular access man- pany. It is best known as one of the largest agement, chronic kidney disease education, kidney care providers in the United States. and renal diet assistance. DaVita holds sub- Originally named Total Renal Care, the sidiaries under two divisions, DaVita Clin- company was restructured as DaVita by ical Research and DaVita Kidney Care. The CEO Kent Thiry in 1999. DaVita is head- company ranked number 181 on the For- quartered in Denver, Colorado, and its sub- tune 500 in 2017, which was its 11th year to sidiaries operate a network of over 2,700 be ranked. It has been on Fortune’s World’s dialysis centers across the United States and Most Admired Companies for 10 consecu- 237 dialysis centers in 11 other countries. tive years. Warren Buffett’s Berkshire Hatha- way owns a nearly 20% stake in the company. The company provides a variety of services including in-center hemodialysis, in-cen- ter nocturnal dialysis, peritoneal dialysis,

State Farm is a large group of insur- and then to banking and financial services. ance and financial services companies throughout the United States with cor- As of December 2017, State Farm had porate headquarters in Bloomington, Il- 70,000 employees and 19,000 agents. linois. The group’s main business is State [10] February 2014 figures show the Farm Mutual Automobile Insurance Com- group servicing 80 million policies in pany, a mutual insurance firm that also the United States and Canada, of which owns the other State Farm companies. over 44,000,000 are for automobiles, 27,000,000 are for fire, 7,000,000 for life, State Farm was founded in 1922 by retired and more than 2 million bank accounts. farmer George J. Mecherleas a mutual au- tomobile insurance company owned by its policyholders. The firm specialized in auto insurance for farmers and later expand- ed services into other types of insurance, such as homeowners and life insurance, MARKET OVERVIEW NEW ORLEANS, LOUSIANA NEW ORLEANS New Orleans is the largest city and the health care industry and boasts metro area of Louisiana, and its a small, globally competitive manu- name comes from Orléans, a city on facturing sector. The center city pos- the Loire River in France. Known sesses a rapidly growing, entrepre- for its French Creole architecture neurial creative industries sector and and multilingual and cultural heri- is renowned for its cultural tourism. tage, New Orleans is often called the most unique city in the United States. Companies with significant opera- tions or headquarters in New Orle- The New Orleans metropolitan area has ans include: Entergy (Fortune 500), a population of 1.167 million, which Pan American Life Insurance, Pool makes it the 46th largest in the country. Corp, Rolls-Royce, Newpark Re- sources, AT&T, TurboSquid, iSeatz, New Orleans operates one of the IBM, Navtech, Superior Energy Ser- world’s largest and busiest ports and vices, Textron Marine & Land Sys- metropolitan New Orleans is a cen- tems, McDermott International, ter of maritime industry. The region Pellerin Milnor, Lockheed Martin, accounts for a significant portion Imperial Trading, Laitram, Harrah’s of the nation’s oil refining and pet- Entertainment, Stewart Enterprises, rochemical production, and serves Edison Chouest Offshore, Zatarain’s, as a white-collar corporate base Waldemar S. Nelson & Co., Whitney for onshore and offshore petro- National Bank, Capital One, Tidewa- leum and natural gas production. ter Marine, Popeyes Chicken & Bis- cuits, Parsons Brinckerhoff, MWH New Orleans is also a center for high- Global, CH2M HILL, Energy Part- er learning, with over 50,000 stu- ners Ltd, The Receivables Exchange, dents enrolled in the region’s eleven GE Capital and Smoothie King. two- and four-year degree-granting institutions. , a top-50 research university, is locat- ed in Uptown. Metropolitan New Orleans is a major regional hub for Community Retail Center

East New Orleans:

The eastern section of New Or- the typically sprawling Ameri- leans, colloquially known as can suburbia much more than “,” is a large the compactly built environment section of that city. Developed found in the city’s historic core. extensively from the 1960s for- ward, its numerous residential The eastern section of New Or- subdivisions and shopping cen- leans is east of the Industrial ters offered suburban-style liv- Canal and north of the Intra- ing within the city. But, despite coastal Waterway. It is often its location within New Orle- called “New Orleans East” or ans’ city limits, its character re- simply “The East”. It is a portion QUALITY OF LIFE mained suburban, resembling of the .

Upcoming Development Plans New Orleans:

The New Orleans Advocate reported Plans In East New Orleans: on Tesla’s plans to open a new service and delivery center in New Orleans’ City Council clears the path for Lower Garden District. This will be South Shore Harbor development. the first dedicated Tesla Center in The gave New Orleans—and the Gulf Coast. unanimous final approval for a 5,000 person live-entertainment venue on According to the HDLC-approved that includes an plans on One Stop, which were filed by outdoor amphitheater, an open air MBH Architects, Tesla will remodel a market, a fuel dock, a marine sup- standing warehouse located at 2801 ply and convenience store, and a Tchoupitoulas Street. The center will restaurant. The project will be de- have a 30,000-square-foot warehouse veloped on a 19 acre stretch of the to store vehicles, a 16,000-square- New Orleans lakefront that formerly foot repair center, and office space. included Bally’s Casino estimated- QUALITY OFed LIFE to cost $13 million to complete. STRONG TOURISM :

New Orleans: New Orleans is home to the New Or- New Orleans is home to a wide va- leans Yacht Club and Southern Yacht riety of sporting events. Most nota- Club, both of which are located at ble are the home games of the New West End on the shore of Lake Pon- Orleans Saints (NFL) and the New tchartrain. Southern Yacht Club was Orleans Pelicans (NBA), the annual established in 1849 and is the second , the annual Zurich Clas- oldest yacht club in the United States. sic (PGA Tour) and at Sugar Bowl Regatta — has been the . New held since 1934. The sailing com- Orleans has also occasionally host- petition is divided into two sepa- ed the , College Foot- rate phases, over four two-day pe- ball Playoff semifinal game and the riods, beginning in late November NCAA college Final Four and concluding on New Year’s Eve.

New Orleans Saints

The are a profes- ing In” is strongly associated with New sional team based Orleans and is often sung by fans at in New Orleans, Louisiana. The Saints games. The franchise was founded on currently compete in the National November 1, 1966. The team’s prima- Football League (NFL) as a member of ry colors are old gold and black; their the league’s National Football Confer- logo is a simplified fleur-de-lis. They ence (NFC) South division. The team played their home games in Tulane was founded by John W. Mecom Jr., Stadium through the 1974 NFL sea- David Dixon, and the city of New Or- son. The following year, they moved leans on November 1, 1966. The Saints to the new Louisiana Superdome began play in in 1967. (now the Mercedes-Benz Super- dome, since Mercedes-Benz has pur- The name “Saints” is an allusion to chased the stadium’s naming rights). November 1 being All Saints Day in The Mercedes-Benz Superdome is the Catholic faith. New Orleans’ has the Saints’ home stadium. It has a a large Catholic population, and the listed seating capacity of 76,468 (ex- spiritual “When the Saints Go March- panded) or 73,208 (not expanded). . Investment Advisors

ENRI PINTO VP of National Sales CONFIDENTIALITY Miami Office Phone: 305-924-3094 AND DISCLOSURE [email protected] The information contained in the following Offering Memorandum (“OM”) is propri- etary and strictly confidential. It is intended to be reviewed only by the party receiving it from Apex Capital Realty and should not be made available to any other person, enti- STEVEN VANNI ty, or affiliates without the written consent of Apex Capital Realty. By taking possession Managing Director of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recip- Miami Office ient will not photocopy or duplicate any part of the offering memorandum. If you have Phone: 305-989-7854 no interest in the subject property at this time, please return this offering memorandum [email protected] to Apex Capital Realty. This OM has been prepared to provide summary, unverified -in formation 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 thor- ough due diligence investigation. Apex Capital Realty has not made any investigation, TONY SOTO and makes no warranty or representation, with respect to the income or expenses for Commercial Advisor the subject property, the future projected financial performance of the property, the size and square footage of the property, the physical condition of the improvements thereon, Miami Office or the financial condition or business prospects of any tenant, or any tenant’s plans or Phone: 305-607-6012 intentions to continue its occupancy of the subject property. The information contained [email protected] in this OM has been obtained from sources we believe to be reliable; however, Apex Capital Realty has not verified, and will not verify, any of the information contained herein, nor has Apex Capital Realty conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or MIGUEL PINTO completeness of the information provided. All potential buyers must take appropriate BROKER OF RECORD measures to verify all of the information set forth herein. MIAMI NON-DISCLOSURE NOTICE Phone: 305-607-6012 Apex Capital Real Estate Investment Services, Inc. (“Apex”) is not affiliated with, [email protected] sponsored by, or endorsed by any commercial tenant or lessee identified in this OM. The presence of any corporation’s logo or name is not intended to indicate or imply af- filiation with, or sponsorship or endorsement by, said corporation of Apex, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Apex, and is JENNIFER STEIN solely included for the purpose of providing tenant lessee information about this listing JDS Real Estate Services, Inc. to prospective customers. BROKER OF RECORD ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT LOUSIANA LICENSE: THE APEX LISTING AGENT FOR MORE DETAILS 0995689716-Corp OSL Cooperating Broker Phone: 213-446-5366 [email protected]