CARLSBAD CORNERS CARLSBAD, NM
PRICING & FINANCIAL ANALYSIS
C AR LSB AD CO R NE R S
Carlsbad Corners 2101 S Canal Street Carlsbad, NM 88220
OFFERING SUMMARY Price Cap Rate Current Net Operating Income Price PSF Occupancy Pro Forma Yield Pro Forma Net Operating Income Year Built Gross Leasable Area Lot Size
$3,600,000 5.61% $201,789 $38.19 69.4% 9.79% $352,279 2001 94,276 SF 7.19 Acres
F I N A N C I A L A N A LY S I S
2
PRICING & FINANCIAL ANALYSIS
C AR LSB AD CO R NE R S
PROJECTED INCOME & EXPENSES Base Rent - Occupied Space
CURRENT 100%
GROSS POTENTIAL RENT
PSF
EXPENSES
CURRENT
PSF
$247,903
$2.63
Real Estate Taxes
$36,094
$1.73
$247,903
$2.63
Insurance
$12,698
$0.61
Expense Reimbursements
CAM
CAM Recoveries
$12,192
$0.13
Roof Repairs
$344
$0.00
$673
$0.01
Signage
$457
$0.00
Insurance Recoveries
$24,016
$0.25
R&M Bldg Exterior
$4,695
$0.05
Real Estate Tax Recoveries
$15,042
$0.16
Fire Safety
$455
$0.00
Total Expense Reimbursements
$51,923
$0.55
Utilities - Water/Sewer
$655
$0.01
$299,830
$3.18
Utilities - Electric
$3,129
$0.03
Landscape Maint
$1,476
$0.02
$8,734
$0.09
$377
$0.00
$20,322
$0.22
$21,567
$0.23
$98,041
$1.04
Management Fee Recoveries
EFFECTIVE GROSS REVENUE Operating Expenses Total CAM
$20,322
$0.22
Parking Lot Sweeping
$21,567
$0.23
Courier Service
Total Insurance
$34,527
$0.37
Total CAM
Total Real Estate Taxes
$21,625
$0.23
Management Fee
$98,041
$1.04
Total Expenses
$201,789
$2.14
Management Fee
Total Recoverable Expenses Net Operating Income Capitalization Rate Capital Reserves at $0.15 PSF Cash Flow before Debt Service Market Loan Cash Flow after Debt Service Cash-on-Cash Return
7.20%
7.20%
5.61% $14,141 $187,648 $194,156 ($6,509) 0.85%
F I N A N C I A L A N A LY S I S
3
RE NT RO L L
Tenant
C AR LSB AD CO R NE R S
Suite
SQ FT
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Total
Start
End
Annual
Monthly
PSF
Annual
PSF
Revenue
% of Revenue
Sutherland Lumber Co
109
53,622
56.88%
04/01
07/21
$144,779
$12,065
$2.70
$43,497
$0.81
$188,276
62.80%
Available
209
28,840
30.59%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
Dollar General
A
9,014
9.56%
03/06
01/21
$63,000
$5,250
$6.99
$5,369
$0.60
$68,369
22.80%
Duc Van Vu
B
1,400
1.49%
08/13
09/19
$16,324
$1,360
$11.66
$1,529
$1.09
$17,853
5.95%
Premier PCS of TX
C
1,400
1.49%
04/17
07/20
$23,800
$1,983
$17.00
$1,529
$1.09
$25,329
8.45%
Total Count/GLA
5
94,276
100%
$247,903
$20,659
$299,826
100.00%
Occupied
4
65,436
69.4%
Available
1
28,840
30.6%
$3.79
65,436
100.0%
Total Avg Rent
$51,923
F I N A N C I A L A N A LY S I S
4
ESTIMATED REIMBURSEMENT REVENUE Tenant
Suite
SQ FT
C AR LSB AD CO R NE R S
% of SQFT
CAM
Management Fee
Insurance
Real Estate Taxes
Total Recovery
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Sutherland Lumber
109
53,622
56.88%
$963
$0.22
$0
$0.00
$1,637
$0.37
$1,025
$0.23
$3,625
$0.81
Available
209
28,840
30.59%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
Dollar General
A
9,014
9.56%
$0
$0.00
$0
$0.00
$275
$0.37
$172
$0.23
$447
$0.60
Duc Van Vu
B
1,400
1.49%
$26
$0.23
$28
$0.24
$45
$0.38
$28
$0.24
$127
$1.09
Premier PCS of TX
C
1,400
1.49%
$26
$0.23
$28
$0.24
$45
$0.38
$28
$0.24
$127
$1.09
94,276
100%
$1,016
TOTALS
$56
$2,001
$1,253
$4,327
F I N A N C I A L A N A LY S I S
5
LEASE PROVISIONS
Tenant
Suite
C AR LSB AD CO R NE R S
SQ FT
Base Rental Increases
Renewal Options
Date
PSF
Options
Date
PSF
User Restrictions & Exclusive Rights
Termination Rights
Sales Reporting
Sutherland Lumber
109
53,622
-
-
1x5
8/1/2021
$3.00
-
-
-
Available
209
28,840
-
-
-
-
-
-
-
-
Dollar General
A
9,014
-
-
-
-
-
-
-
-
Duc Van Vu
B
1,400
-
-
1x5
10/1/2019
$13.41
-
-
Yes, At LL request
Premier PCS of TX
C
1,400
-
-
-
-
-
-
-
-
TOTAL
F I N A N C I A L A N A LY S I S
6
PRO FORMA PRICING & FINANCIAL ANALYSIS
INCOME & EXPENSES Base Rent - Occupied Space
C AR LSB AD CO R NE R S
PRO FORMA 100%
GROSS POTENTIAL RENT
PSF
EXPENSES
PRO FORMA
PSF
$392,103
$4.16
Real Estate Taxes
$21,625
$0.23
$392,103
$4.16
Insurance
$34,527
$0.37
Expense Reimbursements
CAM
CAM Recoveries
$18,409
$0.20
Roof Repairs
$344
$0.00
$7,270
$0.08
Signage
$457
$0.00
Insurance Recoveries
$34,578
$0.37
R&M Bldg Exterior
$4,695
$0.05
Real Estate Tax Recoveries
$21,657
$0.23
Fire Safety
$455
$0.00
Total Expense Reimbursements
$81,915
$0.87
Utilities - Water/Sewer
$655
$0.01
$450,320
$4.78
Utilities - Electric
$3,129
$0.03
Landscape Maint
$1,476
$0.02
$8,734
$0.09
$377
$0.00
$20,322
$0.22
$21,567
$0.23
$98,041
$1.04
Management Fee Recoveries
EFFECTIVE GROSS REVENUE Operating Expenses Total CAM
$20,322
$0.22
Parking Lot Sweeping
$21,567
$0.23
Courier Service
Total Insurance
$34,527
$0.37
Total CAM
Total Real Estate Taxes
$21,625
$0.23
Management Fee
$98,041
$1.04
Total Expenses
$352,279
$3.74
Management Fee
Total Recoverable Expenses Net Operating Income Capitalization Rate Capital Reserves at $0.15 PSF Cash Flow before Debt Service Market Loan Cash Flow after Debt Service Cash-on-Cash Return
7.20%
7.20%
9.79% $14,141 $338,138 $194,156 $143,981 17.57%
F I N A N C I A L A N A LY S I S
7
PRO F ORMA REN T R OLL
Tenant
Suite
C AR LSB AD CO R NE R S
SQ FT
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Total
Start
End
Annual
Monthly
PSF
Annual
PSF
Revenue
% of Revenue
Sutherland Lumber Co
109
53,622
56.88%
04/01
07/21
$144,779
$12,065
$2.70
$43,497
$0.81
$188,276
39.72%
Lease Up
209
28,840
30.59%
-
-
$144,200
$12,017
$5.00
$29,992
$1.04
$174,192
36.75%
Dollar General
A
9,014
9.56%
03/06
01/21
$63,000
$5,250
$6.99
$5,369
$0.60
$68,369
14.42%
Duc Van Vu
B
1,400
1.49%
08/13
09/19
$16,324
$1,360
$11.66
$1,529
$1.09
$17,853
3.77%
Premier PCS of TX
C
1,400
1.49%
04/17
07/20
$23,800
$1,983
$17.00
$1,529
$1.09
$25,329
5.34%
Total Count/GLA
5
94,276
100%
$392,103
$32,675
$474,018
100.00%
Occupied
5
94,276
100%
Available
0
0
$4.16
94,276
Total Avg Rent
$81,915
100.0%
F I N A N C I A L A N A LY S I S
8
PRO FORMA ESTIMATED REIMBURSEMENT REVENUE
Tenant
Suite
SQ FT
% of SQFT
C AR LSB AD CO R NE R S
CAM
Management Fee
Insurance
Real Estate Taxes
Total Recovery
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Sutherland Lumber
109
53,622
56.88%
$963
$0.22
$0
$0.00
$1,637
$0.37
$1,025
$0.23
$3,625
$0.81
Lease Up
209
28,840
30.59%
$518
$0.22
$550
$0.23
$880
$0.37
$551
$0.23
$2,499
$1.04
Dollar General
A
9,014
9.56%
$0
$0.00
$0
$0.00
$275
$0.37
$172
$0.23
$447
$0.60
Duc Van Vu
B
1,400
1.49%
$26
$0.23
$28
$0.24
$45
$0.38
$28
$0.24
$127
$1.09
Premier PCS of TX
C
1,400
1.49%
$26
$0.23
$28
$0.24
$45
$0.38
$28
$0.24
$127
$1.09
94,276
100%
$1,534
TOTALS
$606
$2,882
$1,805
$6,826
F I N A N C I A L A N A LY S I S
9
TE NA NT INF ORMAT I ON
C AR LSB AD CO R NE R S
DBA
Dollar General
Entity on Lease
Dolgencorp, LLC
Corporate/Franchise
Corporate
Locations
15,000+
Credit Rating
S&P: BBB
Public/Private
NYSE: DG
Line of Business
Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. Dollar General’s successful prototype makes shopping a truly hassle-free experience, by designing small neighborhood stores that offer the most popular brands.
DBA
Sutherland Lumber
Entity on Lease
Dardanelle Timber Co, Inc
Corporate/Franchise
Corporate
Locations
50+
Credit Rating
Not Rated
Public/Private
Private
Line of Business
Sutherlands is one of the largest privately-owned home improvement center chains in the United States. Their local building supply and hardware stores range in size from small lumberyards to large 140,000+ square foot warehouse stores.
PROPERTY DESCRIPTION
10
I N VE S TMENT HI GHLI GHT S
C AR LSB AD CO R NE R S
• Existing Rents are Well Below Market for Comparable Property
• Value-Add Opportunity by Leasing Up the Existing Vacancy
• Located in the Prime Retail Corridor of Carlsbad, with Close Proximity to Many National and Regional Retailers
• Trade Area Extends 75+ Miles
• Over 34,000 People Within a 5-Mile Radius
• Traffic Counts Exceed 18,000 Vehicles Per Day Along S Canal Street
PROPERTY DESCRIPTION
11
S I T E PL A N
C AR LSB AD CO R NE R S
PROPERTY DESCRIPTION
12
A E R I AL MA P
C AR LSB AD CO R NE R S
A CAN L ST DESERT WILLOW ELEMENTARY
18,000 VPD
PROPERTY DESCRIPTION
13
LO C AL MA P
C AR LSB AD CO R NE R S
PROPERTY DESCRIPTION
14
REG IONA L MA P
C AR LSB AD CO R NE R S
PROPERTY DESCRIPTION
15
M A R KET S U MMARY
C AR LSB AD CO R NE R S
Carlsbad, NM
OVERVIEW Carlsbad is the county seat of Eddy County, New Mexico. Carlsbad is centered at the intersection of U.S. Routes 62/180 and 285, and is the principal city of the Carlsbad-Artesia Micropolitan Statistical Area. Located in the Southeastern part of New Mexico, Carlsbad straddles the Pecos River and sits at the eastern edge of the Guadalupe Mountains. Carlsbad is a hub for potash mining, petroleum production, and tourism. Carlsbad Caverns National Park is located 18 mi (29 km) southwest of the city and Guadalupe Mountains National Park lies 40 miles southwest across the Texas border; the Lincoln National Forest is to the northwest of town. The economy of the Carlsbad area is based primarily on the mineral extraction sector; the city overlies the rich oil- and gas-
producing formations of the Permian Basin and produces more potash than any other location in the United States. Carlsbad is home to the DOE’s Carlsbad Field Office which operates the Waste Isolation Pilot Plant to safely store the transuranic nuclear wastes from the nation’s defense sites. Tourism is a major factor with Carlsbad Caverns National Park, Guadalupe Mountains National Park, Lincoln National Forest, the Living Desert Zoo and Gardens State Park. Potash deposits were found underground across the Permian Basin in 1925. Two companies, Mosaic Potash Carlsbad (formerly IMC Global) and Intrepid Potash (formerly Mississippi Chemical Corporation), operate mining operations east of Carlsbad. Both mines employ a significant number of workers from surrounding communities; each company also contributes to local charities
PROPERTY DESCRIPTION
16
D E M OG RA PHIC STAT I ST I CS
C AR LSB AD CO R NE R S
1 MILE
3 MILE
5 MILE
3,860 3,600 2,945 7.22% 22.24% 2,441
27,235 25,766 23,267 5.70% 10.74% 13,150
37,853 35,719 31,719 5.97% 12.61% 16,104
3,228 170 110 23 4 65 0
23,779 707 533 197 38 512 11
33,017 818 748 403 44 688 35
1,445 1,348 1,103 7.20% 22.21% 976 372 $44,004 $37,402
10,405 9,853 8,955 5.60% 10.03% 6,952 2,901 $61,223 $50,251
14,673 13,850 12,336 5.94% 12.27% 10,157 3,694 $71,355 $60,355
394 593 114 179 37 10 19 2
2,455 2,456 1,718 1,417 976 530 241 59
3,086 2,997 2,370 1,980 1,651 910 503 353
Population: 2023 Projection 2018 Estimate 2010 Census Growth 2018-2023 Growth 2010-2018 2018 Population Hispanic Origin
2018 Population by Race: White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces:
Households: 2023 Projection 2018 Estimate 2010 Census Growth 2018 - 2023 Growth 2010 - 2018 Owner Occupied Renter Occupied 2018 Avg Household Income (National Avg - $75,558) 2018 Med Household Income (National Avg - $53,889)
2018 Households by Household Inc: <$25,000 $25,000 - $50,000 $50,000 - $75,000 $75,000 - $100,000 $100,000 - $125,000 $125,000 - $150,000 $150,000 - $200,000 $200,000+ Demographic data © CoStar 2018
PROPERTY DESCRIPTION
17
CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from STRIVE and it should not be made available to any other person or entity without the written consent of STRIVE. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to STRIVE. This offering memorandum has been prepared to provide summary, unverified financial and physical 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. STRIVE 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, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenantâ&#x20AC;&#x2122;s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, STRIVE has not verified, and will not verify, any of the information contained herein, nor has STRIVE 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT STRIVE AGENT FOR MORE DETAILS.
Commercial Disclaimer STRIVE hereby advises all prospective purchasers of commercial property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, STRIVE has not and will not verify any of this information, nor has STRIVE conducted any investigation regarding these matters. STRIVE makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a commercial property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. STRIVE expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a commercial property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any commercial property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenants and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenants history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term leases, including the likelihood of locating replacement tenants if any of the current tenants should default or abandon the property, and the lease terms that Buyer may be able to negotiate with any potential replacement tenants considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release STRIVE and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this commercial property.
Information About Brokerage Services
Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. TYPES OF REAL ESTATE LICENSE HOLDERS: • A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material information about the property or transaction received by the broker; • Answer the client’s questions and present any offer to or counter-offer from the client; and • Treat all parties to a real estate transaction honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner’s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by th e seller or seller’s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary: • Must treat all parties to the transaction impartially and fairly; • May, with the parties’ written consent, appoint a different license holder associated with the broker to each party (owner and • buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction. • Must not, unless specifically authorized in writing to do so by the party, disclose: ӽӽ that the owner will accept a price less than the written asking price; ӽӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ӽӽ any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duties and responsibilities to you, and your obligations under the representation agreement. • Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.
Regulated by the Texas Real Estate Commission
Information available at www.trec.texas.gov IABS 1-0
exclusively listed 469.844.8880 | STRIVERE.COM