JORDAN LANDING OFFICE CAMPUS OFFERING MEMORANDUM BRANDON FUGAL | RAWLEY NIELSEN 7181 SOUTH CAMPUS VIEW DR. & 7167 CENTER PARK DRIVE | WEST JORDAN, UT 7167 CENTER PARK DRIVE 7181 CAMPUS VIEW DRIVE Salt Lake City Office | 111 South Main, Suite 2200 | Salt Lake City, UT 84111 | 801.947.8300 | www.cbcadvisors.com JORDAN LANDING OFFICE CAMPUS OFFERING MEMORANDUM 7181 SOUTH CAMPUS VIEW DR. & 7167 CENTER PARK DRIVE | WEST JORDAN, UT 7167 Center Park Dr. 155,750 sq. ft. 5.0 acres d v l Center Park Drive B g n i d 7181 Campus View n a L 106,000 sq. ft. Campus View Drive n 3.46 acres a d r o J 7252 Jordan Landing 2.89 acres Brandon Fugal Rawley Nielsen Darren Nielsen Chairman President - Investment Sales Investment Sales 801.947.8300 801.441.5922 801.448.2662 [email protected] [email protected] [email protected] Salt Lake City Office | 111 South Main, Suite 2200 | Salt Lake City, UT 84111 | 801.947.8300 | www.cbcadvisors.com DISCLOSURE AND CONFIDENTIALITY JORDAN LANDING CAMPUS | WEST JORDAN, UT The information contained in this Offering Memorandum is confidential, furnished This Offering Memorandum is subject to prior placement, errors, omissions, changes or solely for the purpose of review by a prospective purchaser of 7181 South Campus withdrawal without notice and does not constitute a recommendation, endorsement or View Drive & 7167 South Center Park Drive, West Jordan, Utah (the “Property”) and is advice as to the value of the Property by CBC Advisors or the Owner. Each prospective not to be used for any other purpose or made available to any other person without the purchaser is to rely upon its own investigation, evaluation and judgment as to the expressed written consent of Coldwell Banker Commercial Advisors (“CBC Advisors”) or advisability of purchasing the Property described herein. the “Owner”. The material is based in part upon information supplied by Owner and in part upon information obtained by CBC Advisors from sources it deems reasonably reliable. Owner and CBC Advisors expressly reserve the right, at their sole discretion, to reject Summaries of any documents are not intended to be comprehensive or all inclusive any or all expressions of interest or offers to purchase the Property and/or to terminate but rather only an outline of some of the provisions contained therein. No warranty or discussions with any party at any time with or without notice. Owner shall have no legal representation, expressed or implied, is made by Owner, CBC Advisors, or any of their commitment or obligation to any interested party reviewing this Offering Memorandum respective affiliates, as to the accuracy or completeness of the information contained or making an offer to purchase the Property unless a written agreement for the purchase herein or any other written or oral communication trans- mitted to a prospective of the Property has been fully executed and delivered by the Owner and such party and purchaser in the course of its evaluation of the Property. No legal liability is assumed any conditions to Owner’s obligations thereunder have been satisfied or waived and or to be applied in connection with the information or such other communications. then only to the extent expressly provided for therein. CBC Advisors is not authorized to Without limiting the generality of the foregoing, the information shall not be deemed make any representations or agreements on behalf of Owner. a representation of the state of affairs of the Property or constitute an indication that This Offering Memorandum is the property of CBC Advisors and may be used only by there has been no change in the business or affairs of the Property since the date parties approved by CBC Advisors and Owner. The Property is privately offered and, by of preparation of the information. Prospective purchasers should make their own accepting delivery of this Offering Memorandum, the party in possession hereof agrees projections and conclusions with- out reliance upon the materials contained herein and (i) to return it to CBC Advisors immediately upon request of CBC Advisors or Owner and conduct their own independent due diligence, including engineering and environmental (ii) that this Offering Memorandum and its contents are of a confidential nature and will inspections, to deter- mine the condition of the Property and the existence of any be held and treated in the strictest confidence. No portion of this Offering Memorandum potentially hazardous material located at the site. may be copied or otherwise reproduced or disclosed to anyone without the prior written This Offering Memorandum was prepared by CBC Advisors and has been reviewed by authorization of CBC Advisors and Owner. Owner. It contains select information pertaining to the Property and does not purport to be all inclusive or to contain all of the information which a prospective purchaser may desire. All financial projections are provided for general reference purposes only and are based on assumptions relating to the general economy, competition and other factors beyond control and, therefore, are subject to material change or variation. An opportunity to inspect the Property will be made available to qualified prospective purchasers. In this Offering Memorandum, certain documents and other materials are described in summary form. The summaries do not purport to be complete nor, necessarily, accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to independently review all documents. CBC ADVISORS • SALT LAKE CITY, UTAH PAGE 3 TABLE OF CONTENTS JORDAN LANDING CAMPUS | WEST JORDAN, UT 1 EXECUTIVE SUMMARY 5 2 OWNER/USER ANALYSIS 7 3 PROPERTY OVERVIEW 12 4 LOCATION INFORMATION 27 5 AREA COMPARABLES 33 6 MARKET INFORMATION 36 This statement with the information it contains is given with the understanding that negotiations relating to the purchase, renting or leasing of this property shall be conducted through this office. The information while not guaranteed has been secured from sources we believe to be reliable however, it is up to the buyer or tenant to verify the information and conduct appropriate due diligence. Coldwell Banker Commercial and its logo are registered service marks owned by Coldwell Banker Real Estate, LLC. Each Office is Independently Owned and Operated. All Rights Reserved. © 2017 CBC ADVISORS • SALT LAKE CITY, UTAH PAGE 4 EXECUTIVE SUMMARY JORDAN LANDING CAMPUS | WEST JORDAN, UT 7167 CENTER PARK DRIVE 7181 CAMPUS VIEW DRIVE 155,750 SQUARE FEET 106,000 SQUARE FEET EXECUTIVE SUMMARY JORDAN LANDING CAMPUS | WEST JORDAN, UT Coldwell Banker Commercial Advisors, as exclusive advisor, is pleased to offer the fee-simple interest in Jordan Landing Office Campus, two institutional quality assets in the acclaimed 500 acre mixed- use Jordan Landing development in West Jordan, Utah. Comprised of two class A office buildings that consist of 261,750 square feet, Jordan Landing Office Campus is perfectly situated in one of the fastest growing and most rapidly developing regions in Utah. The Property’s placement off Bangerter Highway gives it easy access to I-15 and I-215, making it the perfect gateway to Salt Lake, Davis, and Utah Counties. These factors combine to give the area a very strong 4.99% vacancy rate for Class A and B office. 7167 SOUTH CENTER PARK DRIVE 7181 SOUTH CAMPUS VIEW DRIVE WEST JORDAN, UT 84084 WEST JORDAN, UT 84084 Purchase Price: $24,500,000 Purchase Price: $16,500,000 Price/Sf: $157.30 Price/SF: $155.66 Building Size (SF): 155,750 Building Size (SF): 106,000 Land Area (Ac): 5.00 Land Area (Ac): 3.46 Year Built: 2009 Year Built: 2002 Parcel: 21-29-103-003 Parcel: 21-29-101-002 Parking Ratio: 1.9 : 1,000 Parking Ratio: 3 : 1,000 Potential seller financing available. COMBINED PURCHASE Total Purchase Price: $41,000,000 Total Price/Sf: $156.64 Salt Lake City: #2 city for significant Total Size: 261,750 tech-sector growth and large population increases (Forbes) Total Land Area: 8.46 Total Parking Ratio: 2.36 : 1,000 CBC ADVISORS • SALT LAKE CITY, UTAH PAGE 6 OWNER/USER ANALYSIS JORDAN LANDING CAMPUS | WEST JORDAN, UT 7167 CENTER PARK DRIVE 7181 CAMPUS VIEW DRIVE 155,750 SQUARE FEET 106,000 SQUARE FEET OWNER/USER ANALYSIS JORDAN LANDING CAMPUS | WEST JORDAN, UT 7167 CENTER PARK DRIVE 155,750 SQUARE FEET COSTS TO OWN COSTS TO LEASE Purchase Costs Leasing Costs as a Tenant Price $24,500,000 Year 1 Lease Rate $22.25 Full Service "Potential TI Cost for Owner/ Annual Rental Payments (Including standard 3% User Renovations ($12 PSF $1,869,000 annual increases) on 155,750 SF)” Year 1 $3,465,438 Total Costs $26,369,000 Year 2 $3,569,401 Year 3 $3,676,483 New Loan Costs Year 4 $3,786,777 25% Down Payment $6,125,000 Year 5 $3,900,380 Loan Amount $18,375,000 Year 6 $4,017,392 Annual Loan Debt Service $1,117,241 Year 7 $4,137,914 Year 8 $4,262,051 Annual Owner-User Costs Year 9 $4,389,913 Annual Debt Service (Fixed $1,117,241 for 10 Years) Year 10 $4,521,610 Operating Expenses ($7.50 $1,168,125 PSF) Tenant cost for 5-year lease $18,398,478 Annual Ownership Cost* $2,285,366 Tenant cost for 7-year lease $26,553,784 *Not including potential capital expenditures Tenant cost for 10-year lease $39,727,357 Principle Reduction Year 1 Principle Reduction $296,430 Year 1 Principle Reduction $1.90 PSF CBC ADVISORS • SALT LAKE CITY, UTAH PAGE 8 OWNER/USER ANALYSIS JORDAN LANDING CAMPUS | WEST JORDAN, UT 7167 CENTER PARK DRIVE - CONT. 155,750 SQUARE FEET Comparison: Ownership Vs Lease Sale Lease Back Option for New Owner Year 1 Annual Lease Costs If an owner were to purchase the property, commit $3,465,438 ($22.25 PSF) to a 15-year lease, and then re-sell the property, there would be potential for the following profit: Year 1 Annual Ownership Costs $2,285,366 Potential Sales Price for Sale- Annual Savings to Own vs Lease $1,180,071 Leaseback (Based on 7% Cap $32,818,750 Rate on the Sale) Annual Savings PSF $7.58 Total Cost $26,369,000 Cost of Sale (2%) $656,375 Ownership Benefit with Principal Reduction Potential Profit $5,793,375 Annual Savings to Own vs Lease $1,180,071 Year 1 Principle Reduction $296,430 This analysis is only an example of potential returns Total $1,476,502 and is not a guarantee.