5555 Bullard Ave New Orleans, LA Investment Advisors
Total Page:16
File Type:pdf, Size:1020Kb
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 oppor- tunity 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 sig- nificant 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 warehouse space. Originally a bowling alley, ownership converted the 40,035 square foot property into a re- tail and warehouse mixed use facility, the warehouse space is currently an own- er 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 ten- ants, 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 receiv- ing 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 current- ly 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.