Download - Offering Memorandum - LoopNet · 2018-06-28 · Front during 2018. The labor pool’sexpansion results in notable climbs in population growth and household formation, both exceeding

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E X C L U S I V E L Y L I S T E D B Y

Tod Jones

Senior Associate

National Retail Group

Salt Lake City Office

Tel: (801) 736-2619

Fax: (801) 736-2610

[email protected]

License: UT 5450617-SA00

Brett Jones

Associate



Tel: (801) 736-2651

Fax: (801) 736-2610

[email protected]


Matthew Porter

Senior Associate



Tel: (801) 736-2638

Fax: (801) 736-2610

[email protected]


Offering Memorandum

CLEARFIELD RETAIL CENTER638 S State St • Clearfield, UT 84015

FINANCIAL ANALYSIS

CLEARFIELD RETAIL

EXECUTIVE SUMMARY

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INVESTMENT HIGHLIGHTS

▪ 8.75% Going-In CAP Rate With Rent Guaranty

▪ Anchored by 39,000 SF Kent's Market Grocery

▪ Combined Traffic Counts in Excess of 30,075

▪ Abundant Parking; 8 stalls per 1,000 SF

▪ Population of 187,809 within a 5-Mile Radius

▪ Nearby Tenants include Family Dollar, First National Bank, AutoZone,

Pizza Hut, and 7-Eleven

SUITE # TENANT NAMEBLDG. % OF LEASE LEASE REMAINING ANNUAL ANNUAL CAM

Sq.ft. GLA START EXPIRES TERM RENT RENT/ INCOME

(Years) SQ. FT.

1 Cricket Wireless 1,800 19% 8/11/09 11/30/19 1.6 $18,234 $10.13 $4,872

2 Heartsong Spay/Neuter Clinic 1,500 16% 8/1/12 7/31/18 0.2 $14,734 $9.82 $4,060

3 H&R Block 1,500 16% 5/8/99 4/30/23 5.0 $24,000 $16.00 $4,060

4 Vacant (1 Year Rent Guaranty) 2,250 24% Upon Closing 12 Months After 1.0 $27,000 $12.00 $6,090


9,300 Occupied GLA: 52% Unoccupied GLA: 48% $110,968 $25,170.00

51.6%

PROPOSED FINANCING

First Trust Deed

Loan Amount $723,000

Loan Type Proposed New

Interest Rate 5.00%

Amortization 25 Years

Loan Term 5 Years

Loan to Value 60%

Debt Coverage Ratio 2.92

RETAIL MAP

CLEARFIELD RETAIL

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Clearfield High School

700 S

North Davis Junior High School

Subject Property

FINANCIAL ANALYSIS

CLEARFIELD RETAIL

OPERATING STATEMENT

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SUITE # TENANT NAMEBLDG. % OF LEASE LEASE REMAINING ANNUAL ANNUAL CAM

Sq.ft. GLA START EXPIRES TERM RENT RENT/ INCOME

(Years) SQ. FT.

1 Cricket Wireless 1,800 19% 8/11/09 11/30/19 1.6 $18,234 $10.13 $4,872

2 Heartsong Spay/Neuter Clinic 1,500 16% 8/1/12 7/31/18 0.2 $14,734 $9.82 $4,060

3 H&R Block 1,500 16% 5/8/99 4/30/23 5.0 $24,000 $16.00 $4,060



9300 Occupied GLA: 52% Unoccupied GLA: 48% $110,968 $25,170.00

OCCUPIED ACTUAL RENTS: $56,968

1 YEAR RENT GUARANTY / POTENTIAL RENT AFTER LEASING $54,000

ACTUAL CAM RECEIVED $12,991

POTENTIAL CAM AFTER LEASING $12,179

TOTAL GROSS POTENTIAL INCOME $136,138

(Less) General Vacancy Allowance 5.00% ($5,548.40)

EFFECTIVE GROSS INCOME $130,590

EXPENSES:

CAM (Taxes, Insurance, Etc.) 19.27% ($25,170)

TOTAL EXPENSES 19.27% ($25,170)

PRO-FORMA NET OPERATING INCOME $105,420

PRO FORMA MARKET VALUE - INCOME APPROACH: Market CAP Rate

PRO FORMA MARKET VALUE 8.00% $1,317,745

PRICE ADJUSTMENTS FOR VACANCY & LEASING EXPENSES:

Leasing Agent Commission (6% on 3 years) $9,720

Tenant Improvement Costs $103,025

TOTAL PRICE REDUCTION: $112,745

MARKET VALUE AFTER VACANCY ADJUSTMENTS Year 1 CAP

MARKET VALUE AFTER VACANCY & LEASING EXPENSES 8.75% $1,205,000

FINANCIAL ANALYSIS

CLEARFIELD RETAIL

DETAILED EXPENSES

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REGIONAL MAP

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MARCUS & MILLICHAP CAPITAL CORPORATION

CAPABILITIES

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

terms.

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

financing options.

Our dedicated, knowledgeable experts understand the challenges of financing

and work tirelessly to resolve all potential issues to the benefit of our clients.

National platform

operating

within the firm’s

brokerage

offices

$5.63 billion

total national

volume in 2017

Access to

more capital

sources than

any other firm

in the industry

Optimum financing solutions

to enhance value

Our ability to enhance

buyer pool by expanding

finance options

Our ability to enhance

seller control

• Through buyer

qualification support

• 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

set of debt/equity sources

and presenting a tightly

underwritten credit file

WHY MMCC?

Closed 1,707

debt and equity

financings

in 2017

ACQUISITION FINANCING

CLEARFIELD RETAIL

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CLEARFIELD RETAIL

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MARKET

OVERVIEW

MARKET OVERVIEW

OVERVIEW

OGDEN-CLEARFIELD

The Ogden-Clearfield metro is situated in northern Utah between the

Wasatch Mountains and the Great Salt Lake, and it consists of Weber,

Davis and Morgan counties. The metro contains 659,000 residents with

more than 345,600 in Davis County. Ogden is the most populous city,

containing 87,700 citizens. The Salt Lake City metro borders to the south

and the state of Idaho is to the north.

▪ Ogden is an important distribution hub, located along the transcontinental railroad system. It is a

national center for east-west rail traffic.

▪ Ogden’s roots in the railroad industry have expanded into military and manufacturing. Hill Air Force

Base, home of the Ogden Air Logistics Center, is a major driver of the economy as the area’s largest

employer. The center offers engineering and logistics management for aircrafts worldwide.

▪ A significant location in the metro is the redeveloped Business Depot Ogden. The center provides

6.5 million square feet of industrial and office space to tenants such as Nutraceutical, Fresenius USA

Manufacturing, ICON Health and Fitness, Petersen Inc. and Kenco Logistic Services.

DEMOGRAPHICS

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ECONOMY

METRO HIGHLIGHTS

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

CLEARFIELD RETAIL

STRATEGIC LOCATION

Strategically located for highway, rail and air access, Ogden sits at the

crossroads of the CANAMEX shipping corridor.

MILITARY PRESENCE

The Hill Air Force Base has an annual economic impact of $3.4 billion with

nearly 25,500 personnel within the base.

POPULATION GROWTH

The expanding economy will help push population growth above the U.S.

average. The metro is forecast to gain 45,000 additional people over the next

five years.

659K

2017POPULATION:

210K

2017HOUSEHOLDS:

31.5

2017MEDIAN AGE:

$68,500

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

37.8U.S. Median:

$56,3009.2%

Growth2017-2022*:

6.8%

Growth2017-2022*:

MARKET OVERVIEW

CLEARFIELD RETAIL

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SALT LAKE CITY METRO AREA

Escalated Household Growth, Construction

Garner Investor Interest

Robust tenant demand produces bolstered rent gains. Employment growth in Salt Lake City remains

considerably higher than the national rate, though it will experience a slight slowdown this year. The tech

sector leads job creation as Snapchat, Carta and Recursion begin to open new offices along the Wasatch

Front during 2018. The labor pool’s expansion results in notable climbs in population growth and household

formation, both exceeding national levels. As demographic trends remain strong, retailers flock to Salt Lake

City this year, prompting construction to reach the highest figure since 2012 when over 2.2 million square

feet was delivered. The largest development is Mountain View Village in Riverton, a massive mixed-use

development that includes more than 700,000 square feet of retail space. The project also encompasses a

hotel and office space. Amid heightened construction activity, metro vacancy will rise this year, pushing the

rate over 5 percent. Salt Lake City logs strong rent growth for the fourth consecutive year despite an

increased amount of available space.

The availability of portfolio repositioning forges investor interest. Historically, local buyers, as well as

investors from coastal markets seeking higher yields, found a number of opportunities within the city limits

of Salt Lake City, a trend that should persist in 2018. Properties in the State Street corridor, extending from

University Boulevard to the Lincoln Highway, lure many out-of-state investors seeking projects boasting

high-traffic locations. Here, multi-tenant assets average initial returns in the low-7 percent realm. The Sugar

House neighborhood, an area headlined by a notable nightlife scene, will be a primary target for investors. In

this locale, cap rates sit in the high-6 to mid-7 percent range. In-state buyers remain focused on multi-

tenant options in communities near South Valley Regional Airport, where first-year yields are typically in line

with the metro average, approximately 7 percent.

* Forecast

Sources: Marcus & Millichap Research Services; BLS; CoStar Group, Inc.

MARKET OVERVIEW

CLEARFIELD RETAIL

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SALT LAKE CITY METRO AREA

2018 Market Forecast

Strong growth in retail sales and healthy rent gains push Salt Lake City up

two ranks.

Salt Lake City organizations staff 27,300 employees this year with tech

companies leading the way. Last year, 25,900 workers were staffed.

The metro reports a increase in development activity this year following a

2017 total of 1.1 million square feet.

Another year of below-trend absorption and rising completions result in a

50-basis-point climb, putting the rate at 5.5 percent. Last year, vacancy

rose 100 basis points.

This year the average asking rent pushes up to $15.88 per square foot. Last

year, lease rates increased 3.2 percent.

Investors will direct their attention to new mix-used developments in

Riverton and Sandy, presenting opportunities to capitalize on the surging

population and diversify their portfolios.

* Forecast

Sources: Marcus & Millichap Research Services; CoStar Group, Inc.;

Real Capital Analytics

NRI Rank

7, up 2 places

Employment

up 2.2%

Construction

1.4 million sq. ft.

Vacancy

up 50 bps

Rent

up 4.7%

Investment

PROPERTY NAME

MARKETING TEAM

CLEARFIELD RETAIL

DEMOGRAPHICS

Source: © 2017 Experian

Created on May 2018

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Population 9,993 97,293 211,595

▪ 2017 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Current Daytime Population

2017 Estimate 26,652 103,645 182,122

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Households 3,406 30,522 66,432

▪ 2017 Estimate


Average (Mean) Household Size 2.79 3.15 3.18

▪ 2010 Census


▪ 2000 Census


▪ Occupied Units

2022 Projection 3,406 30,522 66,432

2017 Estimate 3,633 28,633 61,574

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2017 Estimate

$150,000 or More 2.44% 5.39% 6.94%

$100,000 - $149,000 8.94% 14.83% 17.22%

$75,000 - $99,999 10.87% 18.65% 19.56%

$50,000 - $74,999 25.12% 24.14% 24.20%

$35,000 - $49,999 16.86% 14.02% 12.99%

Under $35,000 35.79% 22.95% 19.09%

Average Household Income $54,573 $72,795 $78,958

Median Household Income $47,587 $61,956 $67,813

Per Capita Income $18,633 $22,665 $24,451

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure

$55,655 $72,854 $77,987

▪ Consumer Expenditure Top 10 Categories

Housing $13,814 $16,538 $17,460

Transportation $8,968 $11,308 $12,120

Shelter $8,317 $9,830 $10,325

Food $6,055 $7,385 $7,782

Personal Insurance and Pensions $4,540 $7,089 $7,844

Health Care $3,636 $4,932 $5,476

Cash Contributions $2,956 $4,913 $5,460

Utilities $2,717 $3,294 $3,497

Entertainment $2,599 $3,908 $4,360

Household Furnishings and Equipment

$1,340 $1,718 $1,835

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2017 Estimate Total Population 10,177 89,974 195,457

Under 20 36.15% 37.21% 36.43%

20 to 34 Years 31.92% 24.60% 22.56%

35 to 39 Years 6.73% 8.50% 8.21%

40 to 49 Years 8.66% 11.33% 11.73%

50 to 64 Years 9.17% 11.67% 13.36%

Age 65+ 7.38% 6.70% 7.71%

Median Age 25.11 28.04 29.50

▪ Population 25+ by Education Level

2017 Estimate Population Age 25+ 5,114 49,238 110,276

Elementary (0-8) 2.89% 1.43% 1.08%

Some High School (9-11) 5.06% 4.63% 4.70%

High School Graduate (12) 34.03% 27.26% 26.40%

Some College (13-15) 28.00% 30.21% 29.99%

Associate Degree Only 11.05% 11.60% 10.94%

Bachelors Degree Only 13.40% 18.38% 19.63%

Graduate Degree 5.17% 5.95% 6.86%

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Income

In 2017, the median household income for your selected geography is

$47,587, compare this to the US average which is currently $56,286.

The median household income for your area has changed by 29.65%

since 2000. It is estimated that the median household income in your

area will be $51,512 five years from now, which represents a change

of 8.25% from the current year.

The current year per capita income in your area is $18,633, compare

this to the US average, which is $30,982. The current year average

household income in your area is $54,573, compare this to the US

average which is $81,217.

Population

In 2017, the population in your selected geography is 10,177. The

population has changed by 1.29% since 2000. It is estimated that the

population in your area will be 9,993.00 five years from now, which

represents a change of -1.81% from the current year. The current

population is 52.05% male and 47.95% female. The median age of

the population in your area is 25.11, compare this to the US average

which is 37.83. The population density in your area is 3,233.94 people

per square mile.

Households

There are currently 3,392 households in your selected geography. The

number of households has changed by 4.27% since 2000. It is

estimated that the number of households in your area will be 3,406

five years from now, which represents a change of 0.41% from the

current year. The average household size in your area is 2.79 persons.

Employment

In 2017, there are 7,525 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

50.05% of employees are employed in white-collar occupations in

this geography, and 49.92% are employed in blue-collar occupations.

In 2017, unemployment in this area is 9.19%. In 2000, the average

time traveled to work was 24.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

77.25% White, 4.88% Black, 1.38% Native American and 2.61%

Asian/Pacific Islander. Compare these to US averages which are:

70.42% White, 12.85% Black, 0.19% Native American and 5.53%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 17.99% of the current year

population in your selected area. Compare this to the US average of

17.88%.

PROPERTY NAME

MARKETING TEAM

CLEARFIELD RETAIL

Housing

The median housing value in your area was $146,229 in 2017,

compare this to the US average of $193,953. In 2000, there were

1,432 owner occupied housing units in your area and there were

1,821 renter occupied housing units in your area. The median rent at

the time was $551.

Source: © 2017 Experian

DEMOGRAPHICS

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CLEARFIELD RETAIL

DEMOGRAPHICS

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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and

should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified

information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due

diligence investigation. Marcus & Millichap 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 and improvements, the presence or absence of contaminating substances, PCB's or

asbestos, the compliance with State and Federal regulations, 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 information contained in this Marketing Brochure has been obtained from sources we believe to be

reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these

matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to

verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. 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 Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,

service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

CLEARFIELD RETAIL

Clearfield, UT

ACT ID Z0200090

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E X C L U S I V E LY L I S T E D B Y

Brett Jones

Associate

Associate Member - National Retail Group


Tel: (801) 736-2651

Fax: (801) 736-2610

[email protected]


Tod Jones

Senior Associate

Associate Director - National Retail

Group


Tel: (801) 736-2619

Fax: (801) 736-2610

[email protected]


Matthew Porter

Senior Associate

Associate Member - National Retail Group


Tel: (801) 736-2638

Fax: (801) 736-2610

[email protected]


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Download - Offering Memorandum - LoopNet · 2018-06-28 · Front during 2018. The labor pool’sexpansion results in notable climbs in population growth and household formation, both exceeding

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