5555 Bullard Ave New Orleans, LA Investment Advisors

Bullard Corporate Center 5555 Bullard Ave New Orleans, LA Investment Advisors

CONFIDENTIALITY ENRI PINTO AND DISCLOSURE Vice President Miami Office The information contained in the following Offering Memorandum (“OM”) is proprietary Phone: 305-924-3094 and strictly confidential. It is intended to be reviewed only by the party receiving it from [email protected] Vanni Capital, and should not be made available to any other person, entity, or affiliates without the written consent of Vanni Capital. By taking possession 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 recipient will not photocopy STEVEN VANNI or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Vanni Capital. This OM President has been prepared to provide summary, unverified information to prospective purchasers, Miami Office and to establish only a preliminary level of interest in the subject property. The information Phone: 305-989-7854 contained herein is not a substitute for a thorough due diligence investigation. Vanni Capital [email protected] 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, 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 informa- TONY SOTO tion contained in this OM has been obtained from sources we believe to be reliable; however, Commercial Advisor Vanni Capital has not verified, and will not verify, any of the information contained herein, Miami Office nor has Vanni Capital conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the in- Phone: 305-607-6012 formation provided. All potential buyers must take appropriate measures to verify all of the [email protected] information set forth herein.

NON-DISCLOSURE NOTICE Vanni Capital, is not affiliated with, 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 affiliation with, or sponsorship or endorsement by, said corporation of Vanni Capital, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Vanni Capital and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. Exceptional Investment Opportunity

Vanni Capital, as exclusive advisor, is pleased to present the exceptional opportunity to acquire 5555 Bullard Ave, New Orleans, LA, 70128 (”The Property”). Situated on roughly 3.02 Acres, the 40,023 Square Foot shopping center was constructed in 1985 and fully renovated in 2002. The property is anchored by Davita 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 accounts for over 43% of total CAM recoveries related to expenses maintaining 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 strategically 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 warehouse space. Originally a bowling 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 is willing to sign a short term sale-lease-back 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 subdivided 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 - Situated on roughly income and recoveries from stable cash flow. The 3.02 Acres, the 40,023 Square Foot shopping cen- 22,760 Square Feet can be rented in full to one ter was constructed in 1985 and fully renovated tenant, such as a gym, grocery store, bowling alley, in 2002. The property is anchored by Davita Dial- discount store, event space, food hall or subdivid- ysis, other tenants include State Farm, Louisiana ed to multiple tenants for storage generating even State Rep John Bagneris’ Office, Jay’s Cleaners and more cash flow at increased rates. The Royal Room. The center is leased as a 17,275 square foot retail center, attached to 22,760 square STABLE CASH FLOW - With a current Net Operating feet of warehouse space, as such Davita Dialysis Income of $345,121 future investors will benefit accounts for over 43% of total CAM recoveries. from stable cash flow. Davita Dialysis currently oc- The tenant mix provides for stable cash flow for cupies 7,540 Square Feet with 10 years left on the new investors, as well as significant upside by leas- lease, providing a key anchor tenant to future own- ing out the 22,760 Square Foot vacancy at a in- ers, State Farm also occupies 1,510 Square Feet of creased rate. the center. With income coming from 2 credit tenants, future owners will be able to rely on the stable Fronting Bullard Ave, in between I-510, I-10, and cash flow from two credit tenants while recapturing US90, the property is strategically located in the the rent in the vacant space, creating significant up- central corridor of all the main thoroughfares in side. the area. The property is located within 1 mile of a Walmart Super Center, Home Depot, Lowes, LOCATION - 5555 Bullard Ave is located in the afflu- and many other major synergistic retailers. The ent part of East New Orleans sub-market. property is situated just 10-Miles from the French The Property’s strategic location along Bullard Ave, Quarter, the main economic driver in New Orle- provides customers with direct and easy access ans. from 3 Major highways, including: Interstate-10, Interstate-510, US Highway 90 (Chef Menteur VALUE - The property currently has 22,760 Square Hwy). This central location gives the property traf- Feet of owner occupied space. Originally a bowl- fic counts of over 50,000 vehicles per day within a ing alley, ownership converted the 40,035 square 1-Mile radius. Fronting Bullard Avenue, The Prop- foot property into a retail and warehouse mixed erty has two points of ingress and egress along the use facility, the warehouse space is currently an main road. owner occupied business, that will be signing a short term sale-lease-back 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 $3,600,000 Bullard Corporate Center:

PRICING SUMMARY

Listing Price: $3,600,000

Cap Rate: 9.58%

Net Operating Income: $345,121

Warehouse Square Footage: 22,760 Value Add Opportunity Total Rentable Square Footage: 40,035 5555 Bullard Ave currently has 22,260 Price Per Square Foot: $90 Square Feet of space which is currently occupied by ownership. Ownership Percent Leased: 95% is willing to sign a Sale-Lease-Back agreement at $5.00/PSF. Owner- Total Land Area: 3.02 Acres ship will likely move his business down the road to a new facili- Year Renovated: 2002 ty being developed, and will sign a 1 year lease to allow Year Built: 1985 new ownership time to release the space. 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 10/31/21 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 9/30/23 152,960 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% - - $113,800 $9,482 $5.00 ------Total 40,035 100.0% $369,960 $30,830 $9.24 $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 $369,960

Expense Reimbursement Revenue Traffic Counts: 24,929 Common Area Maintenance $21,777 Taxes $30,744 1-Mile Population: 8,103 Insurance $10,288 Management Fee $515 3-Mile Population: 57,792 Total Reimbursement Revenue $63,324

5-Mile Population: 74,299 Effective Gross Income $433,284

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 $345,121 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

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 maintain 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-center 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 70,000 porate headquarters in Bloomington, Il- employees and 19,000 agents. February 2014 linois. The group’s main business is State figures show the group servicing 80 million Farm Mutual Automobile Insurance Com- policies in the United States and Canada, of pany, a mutual insurance firm that also which over 44,000,000 are for automobiles, owns the other State Farm companies. 27,000,000 are for fire, 7,000,000 for life, and more than 2 million bank accounts. State Farm was founded in 1922 by retired farmer George J. Mecherleas a mutual automobile insurance company owned by its policyholders. The firm specialized in auto insurance for farmers and later expanded 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 major regional hub for the health care metro area of Louisiana, and its name industry and boasts a small, globally comes from Orléans, a city on the competitive manufacturing sector. Loire River in France. Known for its The center city possesses a rapidly French Creole architecture and multi- growing, entrepreneurial creative in- lingual and cultural heritage, New Or- dustries sector and is renowned for its leans is often called the most unique cultural tourism. city in the United States. Companies with significant opera- The New Orleans metropolitan area tions or headquarters in New Orleans has a population of 1.167 million, include: Entergy (Fortune 500), Pan which makes it the 46th largest in the American Life Insurance, Pool Corp, country. Rolls-Royce, Newpark Resources, AT&T, TurboSquid, iSeatz, IBM, New Orleans operates one of the Navtech, Superior Energy Services, world’s largest and busiest ports and Textron Marine & Land Systems, metropolitan New Orleans is a cen- McDermott International, Pellerin ter of maritime industry. The region Milnor, Lockheed Martin, Imperial accounts for a significant portion of Trading, Laitram, Harrah’s Entertain- the nation’s oil refining and petro- ment, Stewart Enterprises, Edison chemical production, and serves as Chouest Offshore, Zatarain’s, Walde- a white-collar corporate base for on- mar S. Nelson & Co., Whitney Na- shore and offshore petroleum and tional Bank, Capital One, Tidewater natural gas production. Marine, Popeyes Chicken & Biscuits, Parsons Brinckerhoff, MWH Global, New Orleans is also a center for high- CH2M HILL, Energy Partners Ltd, er learning, with over 50,000 students The Receivables Exchange, GE Capi- enrolled in the region’s eleven two- tal and Smoothie King. and four-year degree-granting insti- tutions. Tulane University, a top-50 research university, is located in Up- town. Metropolitan New Orleans is a Community Retail Center

East New Orleans:

The eastern section of New Orle- the typically sprawling Ameri- ans, colloquially known as “New can suburbia much more than Orleans East,” is a large section of the compactly built environment that city. Developed extensively found in the city’s historic core. from the 1960s forward, its nu- merous residential subdivisions The eastern section of New Orle- and shopping centers offered sub- ans is east of the Industrial Canal urban-style living within the city. and north of the Intracoastal Wa- But, despite its location within terway. It is often called “New Or- New Orleans’ city limits, its char- leans East” or simply “The East”. acter remained suburban, resem- It is a portion of the 9th Ward of QUALITY OF LIFE bling New Orleans.

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 South Lower Garden District. This will be Shore Harbor development. the first dedicated Tesla Center in The New Orleans City Council gave New Orleans—and the Gulf Coast. unanimous final approval for a 5,000 person live-entertainment venue on According to the HDLC-approved Lake Pontchartrain 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 supply standing warehouse located at 2801 and convenience store, and a restau- Tchoupitoulas Street. The center will rant. The project will be developed on have a 30,000-square-foot warehouse a 19 acre stretch of the New Orleans to store vehicles, a 16,000-square-foot lakefront that formerly included Bal- repair center, and office space. ly’s Casino estimateded to cost $13 QUALITY OFmillion LIFE to complete. STRONG TOURISM Sports in New Orleans:

New Orleans: New Orleans is home to the New Or- New Orleans is home to a wide vari- leans Yacht Club and Southern Yacht ety of sporting events. Most notable Club, both of which are located at are the home games of the New Orle- West End on the shore of Lake Pon- ans Saints (NFL) and the New Orle- tchartrain. Southern Yacht Club was ans Pelicans (NBA), the annual Sug- established in 1849 and is the second ar Bowl, the annual Zurich Classic oldest yacht club in the United States. (PGA Tour) and horse racing at the Sugar Bowl Regatta — has been held Fair Grounds Race Course. New Or- since 1934. The sailing competition leans has also occasionally hosted the is divided into two separate phases, Super Bowl, College Football Playoff over four two-day periods, beginning semifinal game and the NCAA col- in late November and concluding on lege basketball Final Four New Year’s Eve.

New Orleans Saints

The New Orleans Saints are a profes- ing In” is strongly associated with New sional American football 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 to leans on November 1, 1966. The Saints the new Louisiana Superdome (now began play in Tulane Stadium in 1967. the Mercedes-Benz Superdome, since Mercedes-Benz has purchased the sta- The name “Saints” is an allusion to dium’s naming rights). November 1 being All Saints Day in The Mercedes-Benz Superdome is the the Catholic faith. New Orleans’ has Saints’ home stadium. It has a listed a large Catholic population, and the seating capacity of 76,468 (expanded) spiritual “When the Saints Go March- or 73,208 (not expanded). Investment Advisors