36640 perez road offering memorandum - amazon s3 · 36640 perez rd cathedral city, ca 92234 total...

36640 Perez RoadCathedral City, CA 92234

Offering Memorandum

Rosano Partners // Offering Memorandum 236640 Perez Road, Cathedral City, CA 92234

Table Of Contents

The information contained in the Marketing and Value Presentation is confidential, furnished solely for the purpose of a review by a prospective purchaser of the Property, and is not to be used for any other purpose or made available to any other person without the express written consent of the Seller or Advisor. Prospective purchasers should also conduct their own due diligence, including, but not limited to, engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property or used in the construction of maintenance of the building(s) at the Property.

Presented by:Korena EllisSenior AssociateInvestment Sales Group

BRE: 01430539

D: 213.802.0238M: 323.821.9441E: [email protected]

George CornelsonCultivation Specialist

E: [email protected]

Rosano PartnersLos Angeles Office700 S. Flower St, Suite 2526Los Angeles, CA 90017www.RosanoPartners.com

Property Overview...................... 3

Location Overview .................... 5

Sales Comparables ................. 9

Financial Analysis .................... 15

Demographics ..........................18

Rosano Partners // Offering Memorandum 3


Property Overview


• Zoned For Medical Marijuana Uses!• Tucked Away Location, Near All! • Room to Expand -- Almost an Acre!• Structure is Insulated!• 19’ Warehouse Ceiling Clearance!• Newer Construction!

Property Overview / Financial Summary

Property Overview / Investment Highlights

Property Overview / Property Description

Rosano Partners is proud to present a value add opportunity for a property located in Cathedral City’s designated zoning for medical marijuana uses. (CUP will be required). This 6,875 SF building is on 40,075 SF of land, which offers the opportunity for building additional square footage. The main warehouse is a massive 4,675 SF with a 19’ ceiling clearance and 8 Roll up doors! Attached is approximately 1,100 SF of office and 1,100 SF of second floor with three rooms and a bathroom and additional storage. The property’s electric capacity is 600 amps at 208 V with room on the panel to add more amperage. This location is very unique in that it is near to all and yet tucked away. There is ample grow space, parking, and power to begin your grow as you build on to this compound. This is a prize location, coupled with considerable potential.

Property Overview

PRO FORMA CAP RATE

9.73%

GROSS BUILDING SF

6,875 SFLOT SF

40,510 SFELECTRICAL CAPACITY

600 AMPS at 208V

PRICE

$3,200,000

PRICE / SF

$465.45

LAND PRICE/SF

$78.99

YEAR BUILT

Unknown



Location Overview


Location Overview / Map

Cathedral City is in Riverside County, 7 miles Southeast of Palm Springs off the 10 Freeway. It is the second largest City in population in the Coachella Valley, and nicknamed “Cat City” by the locals. Effective in June 2016, the City passed an ordinance to allow Medical Marijuana uses to include cultivation, dispensing, and in some areas, manufacturing. This is an emerging market for MMJ business, and valuable opportunity to bring your medical Marijuana business above board.

Location Overview / Location Descriptions

S


Location Overview / Map

S


Location Overview / Aerial Map

S



Sales Comparables


Sales Comparables / Overview

Price / LotS. No. Address Sale Price Price per RBA

S 36640 Perez Road $3,200,000 $465.45

1 36450 Bankside Drive $2,050,000 $256.25

2 68351 Perez Road $2,000,000 $100.00

3 68721 Summit Drive $1,450,000 $189.99

4 36655 Sunair Plaza $1,575,000 $176.67$78.99 $98.04 $69.57 $45.31

S1 2 3

$72.06

A

$75.33

4

32

1S4


Sales Comparables / 01 36450 Bankside Drive, Cathedral City, CA 92234

Sale Date 07/20/2016

Sale Price $2,050,000

Building SF 8,000 SF

Lot Acres 0.48 Acres

Building Price PSF

$256.25

Building Type Industrial

Year Built 1990


Sales Comparables / 02 68351 Perez Road, Cathedral City, CA 92234





Building Price PSF

$100.00


Year Built 1990


Sales Comparables / 03 68721 Summit Drive, Cathedral City, CA 92234





Building Price PSF

$189.99


Year Built 1965


Sales Comparables / 04 36655 Sunair Plaza, Cathedral City, CA 92234





Building Price PSF

$176.67


Year Built Unknown



Financial Analysis


Financial Analysis / Setup

Offering Price: $3,200,000 Pro Forma

$115,000 Pro Forma Gross Income: $330,000

(Cost does not include grow equipment)

Expense Reimbursements: NNN $49,600Down Payment: 60% $1,920,000 Other income / Percentage Rent: $0

Pro Forma Cap: 9.73% Gross Potential Income: $379,600

Vacancy Allowance: ($7,592) 2.0%Price / Bldg sq/ft: $465.45 Effective Gross Income: $372,008

$78.99 Less Expenses: ($49,600)

Net Operating Income: $322,408 86.7%

Deal Notes Less Loan Payments: ($134,795)

Cash Flow/CoC Return: $187,613 9.77%

First Yr Principal Reduction: $7,115

Total Return Before Taxes: $194,728 10.14%NOTES: * As a percent of Effective Gross Income. ** As a percent of Down Payment.

Property Description6,875

40,510 PRO FORMAUNKNOWN Taxes 1.30% $41,600

Insurance 1.16$ $8,000Financing Utilities -$ Loan Amount: $1,280,000 Landscaping -$ $0Terms (Years): 30 Maintenance/Repairs -$ $0Interest Rate: 10.00% Garbage -$ $0Monthly Payment: ($11,233) Off-Site Management -$ $0Yearly Payment: ($134,795) Total Expenses $49,600Interest Only $9,166 Monlthy Monthly/SF $0.60

This information has been secured from sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify all information.

Pricing Summary

Financial Analysis36640 Perez Rd

Cathedral City, CA 92234

Annualized Operating Data

Annualized Expenses

Approx Cost to Upfit Space for culitvation~ Included in NOI

Please Contact Rosano Partners for more information at 213.802.0300

Property Power: 600 amps 208V with room to add on to the panel.

Leasable Area (sq/ft):Lot Size (sq/ft):Year Built:

Price / Land sq/ft:


Financial Analysis / Rent Roll

Approx. Lease LeaseRentable % of Commence Expiration Pro Forma Pro Forma Pro Forma

Suite Tenants Sq. Ft. Prop (Mo/Yr) (Mo/Yr) Rent Rent/SqFt Lease TypeA Cultivation Warehouse 6,875 100% TBD TBD $27,500 $4.00 NNN

MONTHLY TOTALS: 6,875 100% $27,500 $4,133

Vacant 0.0% $27,500 NNN $4,133.33

Occupied 100.0% $330,000 NNN $49,600

Current Dollar Vacancy: $0

% Vacancy from Total Rent: 0.0%

*Pro forma rents based on 60% of stabilized rents achieved for cultivation facilities in Colorado

RENT ROLL36640 Perez Rd

Cathedral City, CA 92234

Total Monthly Rent:

Total Annual Rent:

This information deemed to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risks



Demographics


Demographics / Market Comparison Report

15.09%

7.21%

4.27%

3.18%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

2010 - 2015 2015 - 2020

Population Growth

1 Mile

County

12.92%

6.92%

4.25% 3.21%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

2010 - 2015 2015 - 2020

Household Growth

1 Mile

County



$35,247

$57,172

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1 Mile County

2016 Med Household Inc

1 Mile

County

56.7

36

0

10

20

30

40

50

60

1 Mile County

2016 Med Age

1 Mile

County



36.36%

30.50%

14.31%

10.00%

3.00% 2.00% 2.08% 2.04%

22.86% 21.98%

16.47%

12.00%

8.00%5.00% 6.31% 7.29%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

<$25K $25K - $50K $50K - $75K $75K - $100K $100K - $125K $125K - $150K $150K - $200K $200K +

2016 Households by Household Income

1 Mile

County

91.98%

3.01% 0.89% 1.80% 0.16% 2.16%

71.29%

9.17%1.48%

14.77%

0.38% 2.92%0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other

2016 Population by Race

1 Mile

County



2016 Employed vs Unemployed

2016 Renter vs Owner

93.15%

6.85%

County

Employed

Unemployed

92.68%

7.32%

1 Mile

Employed

Unemployed

66.76%

33.24%

1 Mile

Rent

Own 52.45%

47.55%

County

Rent

Own


Presented by:Korena EllisSenior AssociateInvestment Sales Group

BRE: 01430539

D: 213.802.0238M: 323.821.9441E: [email protected]

George CornelsonSpecialistInvestment Sales Group

D: 213-802-0328M: 704-975-4652E: [email protected]

Rosano PartnersLos Angeles Office700 S. Flower St, Suite 2526Los Angeles, CA 90017www.RosanoPartners.com

The information contained in this presentation is confidential, furnished solely for the purpose of a review by a prospective purchaser of the Property, and is not to be used for any other purpose or made available to any other person without the express written consent of the Seller or Advisor. Prospective purchasers should also conduct their own due diligence, including, but not limited to, engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property or used in the construction of maintenance of the building(s) at the Property.

36640 perez road offering memorandum - amazon s3 · 36640 perez rd cathedral city, ca 92234 total...

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