utah athletic center offering memorandum · trends of 2016 western market closed transactions by...

Exclusively Marketed by:

6550 S Millrock Dr, Suite 200 Salt Lake City, UT 84121

OFFERING MEMORANDUMUTAH ATHLETIC CENTER51 S. RIVER BEND WAY, NORTH SALT LAKE, UTAH

+1 801 947 [email protected]

Robert Kofoed, MBA+1 801 947 [email protected]

Don Enlow

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). ©2018. All rights reserved.

UTAH ATHLETIC CENTER51 S. River Bend WayNorth Salt Lake, UTAH

6550 S Millrock Dr, Suite 200 Salt Lake City, UT 84121 801.947.8300

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This document has been prepared by Colliers International for advertising and general information only. Colliers Interna-tional makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information in-cluding, 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). ©2018. All rights reserved.



Don Enlow

DISCLAIMER

Coldwell Banker Commercial, a Delaware Corporation (the “Agent”) has been engaged as the exclusive sales representative for the sale of the Utah Athletic Center “UAC” located at 51 S River Bend Way, North Salt Lake, Utah (the ”Property”) by the ‘Ownership’ (the “Seller”).

The Property is being offered for sale in an “as-is, where-is” condition, and the Seller and the Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include confidential information and are being furnished solely for the purpose of review by prospective purchasers (“Purchasers”) of the interest described herein for which it shall be fully and solely responsible. Neither the enclosed materials, nor any information contained herein, are to be used for any other purpose, or made available to any other person without the express written consent of the Seller.

The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by the Agent or the Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners, and directors, as to its accuracy or completeness. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Seller nor the Agent shall have any liability whatsoever for any other written or oral communication or information transmitted, or made available, or any action taken, or decision made by the recipient with respect to the Property.

The Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from the market for sale at any time and for any reason without notice, to reject any and all expressions of interest or offers regarding the Property, and/or to terminate discussions with any entity at any time, with or without notice. This Offering Memorandum is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice The Agent is not authorized to make any representations or agreements on behalf of the Seller. The Seller shall have no legal commitment or obligation to any recipient reviewing the enclosed materials, performing

additional investigation, and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions required under the contract for title to pass from the Seller to the buyer have been satisfied or waived.

By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents will be held and treated in the strictest of confidence; and (b) the recipient shall not contact tenants, employees, contractors, sub-contractors or lien-holders of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or the Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of the Seller or the Agent.

The Utah Athletic Center (UAC) property in North Salt Lake is just 12 minutes north of Downtown Salt Lake City and the Salt Lake City International Airport. Located along the Legacy Parkway, this property is positioned in the middle of the path of progress for South Davis County. This property boasts great visibility from Legacy Parkway, and easy access from Redwood Road off Interstate-215.

This 67,000 SF Building was recently constructed in 2017 and finished with the latest in building technology by Center Point Construction. This building was built with 26 foot clear heights, LED lighting, a back-up Generator, fiber optic internet access, and advanced HVAC units to make the building highly efficient for years to come. The facility also has approximately 4,000 square feet of supplementary expansion capability for additional second floor office space.

As a sports facility, UAC is one of the largest family and club-based youth-sports facilities in the Western United States, and the main tenant, Club V Volleyball, is the largest and fastest growing women’s volleyball club in the Mountain West. Although this is a purpose-built property, currently leased for use as a sports and training facility, the design of the building allows for easy conversion into an industrial lease facility, should the need arise in the future. Center Point Construction was mindful to build into the East wall punch-outs for Dock-high and Drive-up Doors that can be added in the future, and the office space, workout gym, and kitchen facilitate ready-to-use conversion to state-of-the-art corporate industrial use.

HIGHLIGHTS• 100% Occupied

• Single Tenant Investment

• New 10-year lease in place

• Brand new 2017 Construction

• Great Opportunity for a hands-off owner



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EXECUTIVE OVERVIEW



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PROPERTY SUMMARY

THE OFFERING

Property Utah Athletic Center

Property Address51 S River Bend Way North Salt Lake, UT 84054

Property Type Net Leased Investment / Industrial

Assessor's Parcel Number 14820001

SITE DESCRIPTION

Parcel Size 1 Parcel on 4.03 Acres

Type of Ownership Fee Simple

Rentable Square Feet 67,000

Zoning CG - General Commercial

Parking Ratio 2+ spaces per 1,000 SF

Landscaping Fully Landscaped

Topography Gentle Slope

CONSTRUCTION

Year Built 2017

Construction Type Tilt wall construction

Number of Floors 2

Number of Units 1

Floor Plate Size 65,000

Clear Height Minimum Clear Height 26’

Column Spacing 43’

Exterior Walls Tilt Reinforced Cement

Roof Rubber Membrane

Number of Dock High Doors 0* - Potential for 2 future docks

Number of Ground Level Doors 1* - Potential for additional

Foundation Reinforced Concrete Slab

Parking Surface Asphalt

Power VOLTs/ AMP’s- 480 Volt/800 Amp

Parking Surface Asphalt

MECHANICAL

Elevators None

Fire Protection ESFR

HVAC Tenant Controlled HVAC

Utilities City

Warranties for roof, mechanical units etc. Membrane Roof/ 15 year (Redd Roofing) – Mechanical/ Standard one year starting December 2016

• Total sales volume for office, industrial and retail product in the Salt Lake investment market surpassed $1 billion in 2016. This represented a 23% increase from 2015.

• The average cap rate for the market decreased and settled at 7.39% for 2016.

• Strong property market fundamentals – which reflect the area’s healthy economy – continued to draw interest from out-of-state investors. Sources of capital flowing into Utah are diversifying. Not only are institutional investors eyeing the market, many have now approved Salt Lake as a location to deploy capital.

• Salt Lake investment market should have a strong tail wind during the coming year. In short, the combination of strong market fundamentals, increasing capital flows and supply availability underpin a strong lookout for 2017.

CAP RATESOff Ret Ind Apt

5.0%

6.0%

7.0%

8.0%

9.0%

TRENDS OF 2016

WESTERN MARKET CLOSED TRANSACTIONS BY PROPERTY TYPE



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YEAR END INVESTMENT MARKET REPORT - WASATCH FRONT

‘11 ‘12 ‘13 ‘14 15 16 17



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FINANCIAL OVERVIEW

LOCATION

51 S River Bend Way Utah Athletic Center

North Salt Lake, UT 51 S River Bend Way North Salt Lake, UT 84054

Price $6,450,000

Down Payment 30% $1,935,000

Rentable Square Feet 67,000

Price / Rentable SF $96.27

CAP Rate 6.82%

Parcel Size (Acres) 4.03

Year Built 2017

Type of Ownership Fee Simple 67,000

FINANCING

FIRST TRUST DEED

Loan Amount $4,515,000

Loan Type Proposed New

Interest Rate 4.25%

Amortization 25 Years

Monthly Debt Service $24,459.48

Loan to Value 70%

*Buyer will need to secure their own financing for this property, price does not include any loan origination fees if applicable or other feescharged by the financial institution as part of the loan origination.



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INCOME/ FINANCIAL ANALYSIS

ANNUALIZED OPERATING DATA

Lease Type NNN

Escalations 2.0% Annually

Landlord Responsibilities Roof, Structure, & Parking Lot

Payment Date Monthly

INCOME $/ SF

Base Rent - Office 70,000.00 0.55

Base Rent - Warehouse 370,000.00 0.00

Available Space at Market Rents 0.00 0.55

Gross Potential Rent 440,000.00 0.00

Miscellaneous Income 0.00 0.00

Other Income 0.00 0.55

Gross Potential Income 440,000.00 0.52

0.00

Effective Gross Income 440,000.00 0.52

Total Expenses 0.00

Net Operating Income 440,000.00

Debt Service 293,513.70

Debt Coverage Ratio 1.50

Net Cash Flow After Debt Service 146,486.30 10.83%

Principal Reduction 103,629.35

Total First Year Return 250,115.65

Click on Image to see Rough-cut Drone Video

https://vimeo.com/223826951



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The Utah Athletic Center (UAC) is a single tenant run facility with over 67,000 square feet dedicated to family health, wellness and performance. The main focus for the UAC tenant, Club V Volleyball, LLC. (Club V), is on youth sports, as the demand for indoor club training facilities continues to grow in Utah and across the United States.

Club V operates the largest and fastest growing character-based female-athlete program and volleyball club in Utah, and in surrounding states, where families travel from Idaho and Wyoming to participate. To meet the growing demand for Club V, in 2016 they opened an additional leased facility south of Salt Lake City. Club V plans to expand into Southern Utah, Southern Idaho, and Wyoming in the coming years, and is currently consulting for a group in Evanston, WY, planning to emulate the unique

UAC model for Wyoming club sports.

Within the facility, the single tenant also operates UAC Sports & Fitness, Inc., a sports services company that provides: (1) volleyball and basketball tournaments; (2) memberships to a 4,000 sq ft work-out gym; (3) performance group training for advanced athletes; (4) seasonal sports events and camps; (5) a basketball club and academy; (6) court rentals for basketball, volleyball, soccer, and pickle-ball; (7) a café / food service; (8) a retail shop; (9) corporate sponsorship programs, and (10) office space leases.

UAC Sports & Fitness also has sub-leases with Utah AAU volleyball, which has a following of over 5,500 AAU youth volleyball athletes in Utah, and with Metasport Soccer club, an up and coming multi-sport youth training club.

TENANT INFORMATION



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Women’s Volleyball is one of the fastest growing sports across the nation, and in Utah. The participation rate, and future growth is projected to grow steadily, along with Utah’s robust population growth and birth rate. The world has changed considerably regarding participation in youth and high school sports. It is now common place, and almost mandatory that for student athletes to succeed, they need extra specialized training, and participation in “club teams” to supplement their skills. The facts and figures below support the exciting future ahead for Club V and the industry as a whole:

MARKET SPECIFIC INFORMATION

USA Market Analysis• At the High School Level, 2nd highest sport for female participation behind

track and field (just surpassed basketball). • In 2016, there were 24,348 secondary (13,100 Middle Schools & 11,248

High Schools) & 67,148 elementary schools in USA• 427,659 high school participants; 14,447 NCAA players• College Volleyball Schools

· DI – 334 – Scholarships – 3,843 · DII – 282 – Scholarships – 2,196 · DIII - 452

• 2016 Club Participants (according to USA Membership) · 12 & Under – 30,947 · 13 & Under – 29,440 · 14 – 18 & Under – 298,384 · TOTAL YOUTH USA VOLLEYBALL CLUB PARTICIPANTS – 358,771 · In 2016, the total number of club participants was 358,771. · Increase of 11% between 2015 & 2016 · Last 20 years, yearly increase has been between 5-10%.

• Figures do not include AAU membership • Estimated to be 6,500 volleyball clubs in the USA.• Average club dues per participant = $2,000 = $717,542,000 Industry

Utah Market Analysis

• 899 public schools in Utah; 124 private schools • 187 High Schools, 142 Middle Schools, & 501 Elementary Schools• 491,206 Number of Public School Students; 19,452 Number of Private School

Students · 237,680 Female Students

• 151 High Schools that participate in Volleyball · Volleyball UHSAA Participants = 4,379

• 92 Middle Schools that Participate in Volleyball · 1,840 volleyball middle school participants

• AAU Membership in 2016-2017 Season · Utah = 5,500 · Idaho = 4,800

• AAU Membership in 2015 = 4,990 · 9% increase from 2015 to 2016 · Avg. increase is 8-10% since 2011.

• Utah, for both AAU and USAV Memberships, won awards in 2017, for being the fastest growing membership in the nation.

• Club V Market Comparison• Total # of AAU Athletes at Club V = 830• Market Share % in Utah = 15%• Club V is looking to expand its operations into the following areas:

· Pocatello, Idaho (2017) · Washington County (St. George), UT (2018) · Evanston, WY (2019)

• Club V has grown year over year by 12% (since 2009) by increasing marketing share and by having a “feeder” program called the “Club V Academy” that introduces younger kids to volleyball at earlier ages. The Club V Academy had over 1,000+ participants last year (those numbers are not reflected in AAU Membership – AAU Membership is not required to participate in the Club V Academy).



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Suite 100 Suite 110

Suite200

Suite 210

Suite 220

Suite 230

ConferenceRoom240

SITE PLAN



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PROPERTY PHOTOS



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PROPERTY PHOTOS



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