318 & 408 e karcher road - adler...

318 & 408 E KARCHER ROAD

OFFERING MEMORANDUM

Nampa, IdahoNNN leased Industrial property in one of America’s fastest growing Metro areas

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LEW MANGLOS, MBA, CCIM, SIOR208 472 [email protected]

DEVIN OGDEN, MBA, CCIM, SIOR208 472 [email protected]

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318 & 408 E KARCHER ROADProperty Overview

SITE

ProfileAddress: 318 & 408 E Karcher Rd, Nampa, ID

Building Size: 318 Karcher - ±48,880 SF (4 Buildings)

408 Karcher - 7,440 SF

Land Size: ±5.81 Acres

Parcel:R2263700000 (3.73 acres)R3103001000 (1.56 acres)Lot Line Adjustment (+/- .52 acres)

Zoning: I-L

Construction: Steel Frame / Metal

Doors: 5 — Dock High | 3 — Grade Level

Year Built:

318 Karcher Road - 1970’s (Steel Frame / Metal construction) 408 Karcher Road - 2008 (CMU construction)

ValueSale Price: $4,260,377

Cap Rate: 6%

Price/SF: $76

Highlights » Credit tenant on long term lease

» Below market rents

» 485’ of frontage on Karcher Road

» Fenced yard with drive-around capabilities

» Rail spur with rail dock loading

» Close proximity to both Northside Blvd and Franklin Blvd Interchanges

» 3-Phase power

» Separate gravel fenced yard to be leased

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318 & 408 E KARCHER ROADTenant Profile

Since 1971, L&W Supply has been recognized as a world-class interior products company and is one of the nation’s largest distributors of wallboard, suspended ceiling tiles, steel studs, joint treatment, insulation, fasteners and related building products. L&W Supply was acquired by ABC Supply in November 2016. Headquartered in Chicago, Illinois, L&W Supply operates 173 branches in 35 states. More information about L&W is available online at www.lwsupply.com.

ABC Supply Co. Inc. is the largest wholesale distributor of roofing in the United States and one of the nation’s largest wholesale distributors of select exterior and interior building products. Since its founding by Ken and Diane Hendricks in 1982, ABC Supply’s sole focus has been serving professional contractors—taking care of them better than any other distributor and offering the products, services and support they need to build their businesses. A 13-time Gallup Great Workplace Award winner and recipient of Glassdoor’s Employees’ Choice Award, ABC Supply is an “employee-first” company that treats its associates with respect and gives them the tools they need to succeed. Headquartered in Beloit, Wisconsin, ABC Supply has more than 700 locations nationwide. More information is available at www.abcsupply.com.


318 & 408 E KARCHER ROADProperty Overview

Building 1 » Flex building with functional showroom/

office buildout

» Great street presence

» One 10’x10’ grade level loading door

» Built in 2008

Building 4 » 8,000 SF of insulated warehouse

» 1,600 SF of covered staging area on rail loading dock

» Entire building built at dock height

» Three dock doors with bumpers

» Three loading doors on rail loading area

Building 2 » 26,500 SF insulated warehouse

» 13,250 SF of covered storage

» 16’-24’ clear height

» Three 14’x14’ grade level loading doors

Building 5 » 1,380 SF office

» Direct exposure on Karcher Road

Building 3 » 13,000 SF insulated warehouse

» 6,500 SF of covered storage

» 16’-24’ clear height

» Two 14’x14’ grade level loading doors


318 & 408 E KARCHER ROADGallery


318 & 408 E KARCHER ROAD

318 E Karcher Rd 408 E Karcher Rd

Real Estate Taxes $28,231 $12,810

Insurance $3,805 $598

CAM $1,600 $3,684

Total Operating Expenses $33,636 $17,092

Building Tenant Lease Type SF Monthly Base Rent

Rent/SF/Month

Annual Base Rent

Annual Expense Recovery

Lease Expiration

318 E. Karcher Road L&W Supply Corporation NNN 48,880 $14,590 $0.30 $175,080 $33,636 6/30/2024 (1)

408 E. Karcher Road L&W Supply Corporation NNN 7,440 $6,401 $0.86 $76,817 $17,092 6/30/2024

408 E. Karcher Road (.52 acres/yard) Rent Guaranty NNN - $1,100 $0.05 $13,200 - 6/30/2024 (2)

TOTALS: 56,320 $22,091 $265,097 $50,728

Price Price/SF Cap Rate

$4,260,377 $76 6%

Current Rent Roll

Valuation

Operating Expenses

Base Rental Revenue $265,097

Expense Reimbursements $50,728

Effective Gross Revenue $315,825

Reserve (3%) $(9,475)

Total Operating Expenses $(50,728)

NOI $255,623

2019 Budgeted NOI

(1) Tenant has one five year option to renew for 60 months at $0.31/SF NNN with 90 days prior written notice

(2) Seller to provide a 12 month rent guaranty in the event yard space is not leased by close of escrow

Valuation


318 & 408 E KARCHER ROADSite Plan

Karcher Road


318 & 408 E KARCHER ROADLocation

SITE

SITE


318 & 408 E KARCHER ROADDemographics

*The Wall Street Journal reported in April 2018 that the median price of a single-family home in the Boise area has doubled from $147,000 in 2011 to $297,000 in 2018.

Site 1 Mile 3 Miles 5 Miles 10 Min Drive

POPULATION

2019 Estimated Population 2,819 62,515 124,706 73,569

2024 Projected Population 3,241 71,281 141,758 83,820

2010 Census Population 2,308 51,892 103,958 61,901

Projected Annual Growth ‘19-‘24 3% 2.8% 2.7% 2.8%

HOUSEHOLD

2019 Estimated Households 953 22,248 43,333 25,957

2024 Projected Households 1,043 24,234 47,044 28,262

2010 Census Households 771 18,044 35,222 21,288

Historical Annual Growth ‘00-‘19 2.8% 3.4% 4.6% 3.5%

INCOME

2019 Est. Average HH Income $43,389 $52,578 $55,646 $53,526

2019 Est. Median HH Income $44,588 $46,826 $51,402 $47,552

MISC.

2019 Median Home Value * $156,753 $162,991 $173,035 $164,989

2019 Median Rent $718 $735 $757 $740

2019 Est. Median Age 30.2 32.3 32.2 31.9

2019 Average Travel Time to Work 21.4 23 24 22.6

2019 Est. Labor Population Age 16+ 2,049 46,764 92,583 55,033

2019 Est. Total HH Expenditure $37.79 M $1 B $2.03 B $1.19 B

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318 & 408 E KARCHER ROADArea Overview — Nampa

Nampa is Idaho’s 3rd largest city and the western anchor of the Treasure Valley where nearly half of Idahoans reside. Nampa’s undeniable quality of life, affordability and urban proximity make it one of the most desirable places to live in the West.


318 & 408 E KARCHER ROADArea Overview

Quality of LifeReferred to as the “Treasure Valley”, the region is home to about 675,000 people. The workforce of roughly 330,000, live within a 45-minute draw area. Known for its extraordinary quality of life and affordable cost of living (currently one of the lowest in the western states, according to the ACCRA Cost of Living Index), the Valley is consistently ranked by Forbes, The Wall Street Journal, Livability and Inc. Magazine as one of the best places in the U.S. to live and work.

Commuting in the ValleyThe major interstate serving the Treasure Valley is I-84, running through the metro area’s major cities (Boise, Meridian, Nampa and Caldwell). Branching off to the northeast is I-184, which runs into downtown Boise. Daily commutes are easy, with several U.S. and state highways providing direct routes and minimal traffic. The average commute time is only 18 minutes. Public transportation is handled by ValleyRide, Treasure Valley Transit and ACHD Commuteride.

RecreationThe Boise River runs through downtown and is accessible through a greenbelt system with over 25 miles of bike paths and 850 acres of parks. Up in Foothills you’ll find more than 135 miles of nationally acclaimed hiking and mountain biking trails that extend from the city up to Bogus Basin Ski Area. Only 17 miles from the city center Bogus Basin offers winter skiing and summer adventure. With world-class golf courses, hiking, fishing and mountain biking, the recreation opportunities are virtually unlimited within a 30-minute drive.

DiversityThe City of Boise has been recognized for its work welcoming over 800 new citizens (refugees) each year from over 20 foreign countries. Annual diversity events and resources include PRIDE activities, The Basque Cultural Center, Hispanic Cultural Center and the Black History Museum. More than 90 different languages are spoken in the Boise School District and the Mexican Consulate also has an office in Boise.

What about logistics? There are 50 motor freight companies traveling 5 interstates, 20 U.S. highways and 30 state highways that serve the Boise Valley. More than 1,600 miles of rail line through Union Pacific and Burlington Northern Santa Fe provide connection points to Canada, Mexico and the U.S. They are aided by the state’s regional line and 6 short line railroads. Annually, the rail system transports over 11 million tons of freight.


318 & 408 E KARCHER ROADArea Overview

IDAHO TAX OVERVIEWSales and Use Tax in Idaho is 6%. This would apply to items purchased or consumed in Idaho. Exemptions are available for equipment and raw materials used directly in manufacturing, processing, or fabrication; clean rooms used in semiconductor and semiconductor equipment manufacturing; and any equipment or material used in research and development activities.

We do not tax services including telecommunication services, and utilities such as water, gas, electricity, or natural gas. In our region we do not have any local option sales tax.

Property Tax personal (machinery/equipment) and real (land/buildings) – based on market value. 2018 Average Rates: Ada County: 1.1% - 1.8% Bannock County: 0.8 - 1.2% Bonneville County: 0.77% Canyon County: 1.5% - 2.5% Elmore County: 1.8% Twin Falls Count: 0.82%

Idaho does not have an inventory tax.

Corporate Income Tax – Computed at 7.4% of the Idaho taxable income of a corporation. Corporations that are taxable in Idaho and another state or country or are part of a unitary group of corporations, use a 3 factor formula to ascertain how much of the business is conducted in Idaho. The apportionment formula is made up of a property factor, a payroll factor, and a sales factor. These three factors, with the sales factor being double weighted for all taxpayers except for electrical and telephone companies, are totaled and divided by 4 to compute the Idaho apportionment factor. The Idaho apportionment factor is then applied to the business income of the corporation to compute income assigned to Idaho. Non-business income allocable to Idaho is added to the income apportioned to Idaho to arrive at Idaho taxable income.

SALES & USE TAX6%

CORPORATE INCOME TAX7% MINIMUM

WAGE$7.25/hr

STATE UNEMPLOYMENT INSURANCE RATE1.91%

UNION MEMBERSHIP(NAT’L AVG: 11.9%)7.1%

PERSONAL INCOME TAX RATE RANGE Rate range on a bracketed system based on income levels

1.6%-7.8%#2 BEST STATE Property tax rate (2013 Tax Foundation Study)

PROPERTY EXEMPTIONFirst $100,000 of personal property is exempt from taxation

right to workIDAHO IS A

STATE

Col l iers Internat ional Idaho | 755 West Front Street , Sui te 300 Boise , Idaho 83702 | www.col l iers .com/idaho | 208 345 9000

This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties

arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2019. All rights reserved

318 & 408 E KARCHER ROADNampa, Idaho

LEW MANGLOS, MBA, CCIM, SIOR208 472 2841

[email protected]

DEVIN OGDEN, MBA, CCIM, SIOR208 472 1668

[email protected]

318 & 408 e karcher road - adler...

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