Offering Memorandum SANDY POINTE SHOPPING CENTER 7820 S 700 E • Sandy, UT 84070 1 EXCLUSIVELY LISTED BY Matthew Porter Brett Jones Tod Jones Senior Associate Associate Senior Associate Associate Member - National Retail Salt Lake City Office Associate Director - National Retail Group Tel: (801) 736-2651 Group Salt Lake City Office Fax: (801) 736-2610 Salt Lake City Office Tel: (801) 736-2638 [email protected] Tel: (801) 736-2619 Fax: (801) 736-2610 License: UT 9761802-SA00 Fax: (801) 736-2610 [email protected] [email protected] License: UT 7770209-SA00 License: UT 5450617-SA00 SANDY POINTE SHOPPING CENTER OFFERING SUMMARY EXECUTIVE SUMMARY VITAL DATA YEAR 1 YEAR 2 Price $2,590,000 CAP Rate 7.57% 7.70% Net Operating Loan Amount $1,813,000 $196,112 $199,509 ▪ Anchored by Shell Gas Station - Shadow Income Net Cash Flow Anchored by Harmons Loan Type Proposed New After Debt 9.28% / $72,077 9.71% / $75,474 Service ▪ 7.70% Cap Rate in Year 2 - Annual Rent Interest Rate / 4.75% / 25 Years Total Return 14.26% / $110,831 14.94% / $116,109 Amortization Increases Gross Leasable Area (GLA) 9,175 SF ▪ 9 Years Remaining on Lease with Shell Price/SF $282.29 Tenant which Occupies 34% of Center Current Occupancy 78.09% Year Built / Renovated 1990 / 2000 ▪ Includes Three Absolute Net Cell Tower Lot Size 1.22 acre(s) Leases ▪ Combined Daily Traffic Count of Over 36,800 Vehicles ▪ 5-Mile Population of 323,288 | $90,204 THE OFFERING Average Household Income Property Sandy Pointe Shopping Center Price $2,590,000 Property Address 7820 S 700 E, Sandy, UT DEMOGRAPHICS Assessor’s Parcel Number 22-31-227-012 & 22-31-227-010 SITE DESCRIPTION Year Built/Renovated 1990 1-Miles 3-Miles 5-Miles Gross Leasable Area 9,175 SF 2016 Estimate Pop 20,544 130,094 323,288 Ownership Fee Simple 2016 Census Pop 18,887 120,079 301,845 Lot Size 1.22 acre(s) 2016 Estimate HH 7,925 48,733 116,207 2016 Census HH 7,208 44,426 107,316 Median HH Income $61,018 $63,644 $67,976 Per Capita Income $29,058 $31,136 $32,472 Average HH Income $75,273 $83,000 $90,204 #3 SANDY POINTE SHOPPING CENTER FINANCIAL ANALYSIS 4 SANDY POINTE SHOPPING CENTER FINANCIAL ANALYSIS TENANT SUMMARY 5 SANDY POINTE SHOPPING CENTER FINANCIAL ANALYSIS OPERATING STATEMENT 6 SANDY POINTE SHOPPING CENTER FINANCIAL ANALYSIS PRICING DETAIL 7 SANDY POINTE SHOPPING CENTER OFFERING SUMMARY INVESTMENT OVERVIEW Marcus & Millichap is pleased to offer a triple net lease investment property. This strip center has well established tenants that have served the surrounding community for a MAJOR EMPLOYERS number of years. The property lies on a hard, signalized corner with multiple curb cuts and a left turn lane headed north-bound on 700 East. The center is anchored by a Shell EMPLOYER # OF EMPLOYEES branded gas station and convenience store. In addition to the retail leases there are two ALLIANCEDATA 7,392 long term cellular tower land leases owned & operated by T-Mobile via Crown Castle as Barrett Business Services Inc 5,002 well as Clear Wireless. Clear Wireless has equipment at the back of the building on a land Intermountain Medical Center 5,000 lease and AT&T one of the tower tenants occupies one of the building units. A C S 2,500 Maritzcx Holdings LLC 2,000 The property enjoys being situated across the street from Harmon's Grocery Store which is Teleperformance USA 1,650 a well-established, and serves a high-end Utah food market. 700 East is a major retail Stock Building Supply West LLC 1,400 corridor and leads to a regional retail node to the north that has national tenants such as Walmart 1,250 Walmart, Target, Office Max, Ross, DSW, Petco, Bed, Bath & Beyond, Trader Joe, T.J. Becton Dickinson Infusn Therpy 1,200 Maxx, Home Depot and many others. It is also next to Hillcrest High School as well as Selecthealth Benefit Assurance 1,165 Union Middle School. Innovative Staffing Inc 1,100 Smiths 1,005 PROPERTY OVERVIEW Sandy is a suburb of Salt Lake City in Salt Lake County. It is the sixth largest city in Utah with a population of 95,836 in 2016. Located at the base of the Wasatch Mountains, Sandy is close to four major ski resorts: Brighton, Solitude, Snowbird and Alta. It is also home to the Real Salt Lake, a Major League Soccer Team that plays at the RioTinto Stadium which opened in 2008. Sandy City is currently at the forefront of city planning with numerous re-development projects and resort style, transit oriented developments. Sandy will continue to flourish and be a thriving, business friendly economy for new and existing businesses alike. #88 SANDY POINTE SHOPPING CENTER REGIONAL MAP 9 SANDY POINTE SHOPPING CENTER AERIAL PHOTO Subject Property 700 East – 25,770 AADT 10 SANDY POINTE SHOPPING CENTER RETAIL MAP 7800 South Subject Property Sushi Express Le Salon & Pro Nails 11 SANDY POINTE SHOPPING CENTER PROPERTY PHOTO 12 SANDY POINTE SHOPPING CENTER ACQUISITION FINANCING MARCUS & MILLICHAP CAPITAL CORPORATION WHY MMCC? CAPABILITIES Optimum financing solutions to enhance value MMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and Our ability to enhance terms. buyer pool by expanding finance options We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of Our ability to enhance financing options. seller control • Through buyer Our dedicated, knowledgeable experts understand the challenges of financing qualification support and work tirelessly to resolve all potential issues to the benefit of our clients. • Our ability to manage buyers finance expectations • Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings • By relying on a world class Closed 1,651 National platform $5.1 billion Access to set of debt/equity sources debt and equity operating total national more capital financings within the firm’s volume in 2016 sources than and presenting a tightly in 2016 brokerage any other firm underwritten credit file offices in the industry 13 SANDY POINTE SHOPPING CENTER MARKET OVERVIEW 14 SANDY POINTE SHOPPING CENTER MARKET OVERVIEW SALT LAKE CITY OVERVIEW Centrally located among the major Western U.S. markets, Salt Lake City is known as the Crossroads of the West. The metro consists of three counties: Salt Lake, Tooele and Summit. It is situated in the Great Salt Lake Valley in northern Utah. The region is hemmed in by the Great Salt Lake to the northwest, the Wasatch Mountain Range to the east and the Oquirrh Mountains to the west. The metro houses 1.2 million people. Salt Lake City is the largest city, with approximately 200,000 residents. The highest percentage of population growth continues to occur in the suburban areas such as South and West Jordan. The Salt Lake City, Provo-Orem and Ogden-Clearfield metros together comprise the Wasatch Front. METRO HIGHLIGHTS EMPLOYMENT GROWTH Skilled trade and educated workers, attractive outdoor recreation opportunities and low overhead costs lure employers to the region. EXPANDING HOUSEHOLD INCOMES The metro’s household income is consistently well above the national median. LARGE INSTITUTIONS The Salt Lake City economy benefits from its status as the capital of Utah and the headquarters of the Church of Jesus Christ of Latter-day Saints. 15 SANDY POINTE SHOPPING CENTER MARKET OVERVIEW ECONOMY ▪ A stable base of government entities are located in the metro, while growing companies in the private sector include technology leaders eBay and Oracle Corp. ▪ Various companies have located data centers in the metro, including Twitter Inc., Goldman Sachs and the National Security Agency. ▪ Tourism will remain a top employment generator over the coming years. The metro is home to several world-class ski resorts, including Brighton, Park City, Alta and Snowbird. The Salt Palace Convention Center and the Energy Solutions Arena host conventions and trade shows. MAJOR AREA EMPLOYERS Intermountain Health Care University of Utah State of Utah Delta Airlines Corp. Zions Bancorporation Novus Technologies Cordant Technologies Smith’s Food and Drug Wells Fargo Bank * Forecast Salt Lake City Community College SHARE OF 2016 TOTAL EMPLOYMENT 8% 18% 15% 8% 8% MANUFACTURING PROFESSIONAL AND GOVERNMENT LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES BUSINESS SERVICES 20% 5% + 12% 3% 3% TRADE, TRANSPORTATION CONSTRUCTION EDUCATION AND INFORMATION OTHER SERVICES AND UTILITIES HEALTH SERVICES 16 SANDY POINTE SHOPPING CENTER MARKET OVERVIEW DEMOGRAPHICS ▪ The metro is expected to add nearly 70,000 people through 2021, resulting in the formation of roughly 20,000 households. SPORTS ▪ Median incomes above the national average allow 66 percent of households to afford to own a home, compared with the national rate of 64 percent. ▪ Roughly 30 percent of people age 25 and older hold bachelor’s degrees; of those residents, 10 percent also have obtained a graduate or professional degree. 2016 Population by Age 8% 23% 7% 31% 21% 10% 0-4 YEARS 5-19 YEARS 20-24 YEARS 25-44 YEARS 45-64 YEARS 65+ YEARS EDUCATION 2016 2016 2016 2016 MEDIAN POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: 1.2M 392K 32 $64,300 Growth Growth U.S. Median: U.S. Median: 2016-2021*: 2016-2021*: 5.7% 5.8% 37.7 $54,500 QUALITY OF LIFE The Wasatch Range provides a multitude of year-round recreational opportunities, including ski resorts and more than a dozen national parks and monuments. Cultural venues include Abravanel Hall, the Rose Wagner Performing Arts Center, Hale Centre ARTS & ENTERTAINMENT Theatre and the Off Broadway Theatre.