2606 East La Madre Way
2606 East La Madre Way North Las Vegas | Nevada 89081
S A L E - L E A S E B AC K I N V E S T M E N T O P P O RT U N I T Y
Investment Offering
2606 East La Madre Way Colliers International is solely authorized to present this property investment offering (the “Offering”). This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of Sunset Pointe Industrial Center (the “Property”). Prior to submitting an offer to purchase the Property, interested parties should perform and rely upon their own investigations, analyses, estimates and projections and otherwise satisfy any concerns regarding material aspects of the proposed transaction including, but not limited to, legal, municipal, environmental, operational, seismic, financial and physical issues, and all other matters affecting or pertaining to the Property. The Seller will be offering the Property including all appurtenances and tenant improvements, solely on an “As-Is, With-AllFaults” basis, without any representations or warranties. No person is authorized to make any representations or warranties on behalf of the Seller regarding the Property. Any and all information regarding the Property provided to any interested party by the Seller or Colliers International, including all information contained in the Offering, is provided without any representation or assurance, express or implied, regarding the accuracy, completeness or current status of applicability of such information. Each interested party is expected to undertake such reviews and investigations and make such inquiries as such party may believe to be necessary, appropriate or advisable for the purpose of forming a decision to make an offer to acquire the Property. The Owner expressly reserves the right, at is sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/ or to terminate discussions with an entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property
unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived. The material contained herein is confidential and is presented strictly as information for the exclusive use of the prospective purchaser. Receipt and review of this Offering by the prospective purchaser constitutes an agreement not to divulge, share or distribute the information to any other party, except the prospective purchaser’s legal counsel and financial advisors, without the prior specific written authorization of the Seller or Colliers International. Each prospective purchaser shall also agree to and comply with the provisions of the confidentiality agreement executed by such prospective purchaser prior to receipt of this Offering. This Offering is submitted subject to errors, changes, omissions, changes in price, market and other conditions. It contains selected information pertaining to the Property and does not purport to be all-inclusive or to contain all of the information that prospective purchasers may desire. It should be noted that any and all market analyses, estimates and projections contained in this Offering are provided for general reference purposes only and are based on assumptions related to the general economy, competition, real estate market trends, and other factors beyond the control of the Seller or Colliers International. Such analyses, estimates and projections are therefore subject to material variation, and may not be consistent with the views or assumptions held by other professionals. PHOTOCOPYING OR OTHER DUPLICATION OF THIS OFFERING IS NOT AUTHORIZED
1 1
Table of Contents
2606 East La Madre Way Exclusive Advisor C. Whit gilfillan Senior Associate CA License No. 01841852 909.937.6311 [email protected]
Executive Summary..........................................................3 The Offering Investment Summary Property Summary Investment Highlights
Property Description......................................................... 5 Property Details Regional Map Aerial Parcel Map Property Photographs
Local market contact Eric Molfetta Senior Associate NV License No. 71101 702.836.3756 [email protected]
Market Overview............................................................ 11 Market Indicators Market Activity
Market Comparables.......................................................15 Lease Comparables Lease Availabilities Sale Availabilities Sale Comparables
Tenant Summary.............................................................25 COLLIERS INTERNATIONAL 2855 E. Guasti road, suite 401 ontario, ca 91761 www.colliers.com
2 2
Executive Summary
2606 East La Madre Way The Offering Colliers International has been retained as exclusive advisor by
Investment summary
Trench Plate© Rental Co.(TPRC) for the sale-leaseback of Trench
Price:
$ 2,100,000.00
Monthly Lease Rate:
$ 10,500.00 NNN *Negotiable
of a +/-5,500 square foot office building and a +/-5,000 square foot
Annual Increases:
CPI capped at 3% annually
metal warehouse on a +/-2.43 acre parcel with an adjacent +/-2.43
CAP Rate:
6.0 %
Plate© Rental Co Las Vegas Branch, located at 2606 East La Madre Way in North Las Vegas, Nevada. The subject facility is comprised
acre parcel to the west included as well. The facility has immediate access to the Interstate 15 freeway approximately one mile away via Berg St and E Craig Rd/SR 573. Trench Plate© Rental Co Las Vegas Branch is located in the City of North Las Vegas, in Clark County the most populous county in the State of Nevada which is home to approximately 2 million residents or 71% of the State’s population. Trench Plate© Rental Co Las Vegas, represents an opportunity for an investor to acquire a long term stabilized industrial investment with an excellent credit tenant with long term upside for future development.
3 3
Executive Summary
2606 East La Madre Way Investment Highlights
Property Summary
›› Excellent Credit Tenant- TPRC has been in business since 1978 and is one in the Western United States with 11 fully-equipped branches in Southern
Address: APN: Zoning:
2606 East La Madre Way, North Las Vegas, NV 90242 124-36-301; 123-36-301-006 M-2 General
California (5), Northern California (3), and one each in Las Vegas, NV;
Building SF:
±11,804 sqare feet (per Clark County Assessor)
and Reno, NV; and Houston, TX. The company also provides traffic
Land Area:
±4.860 Acres
control equipment through its separate TPR-Traffic Solutions® division.
Site Coverage:
±5.58% 2 1998 Concrete Tilt-Up for Office and Metal for Warehouse
of the largest providers of government mandated trench safety equipment
Total Buildings: Year Built:
›› Long-Term Lease Back- Long-Term Lease Back- TPRC will be
Construction Type:
signing a 5-10 year Triple Net Lease with annual rental rate increases.
Min. Clear Height: Fenced Yard Area: Ground Level Doors:
›› Excellent Construction and Amenities- The existing facility includes a Class A Industrial Office building equipped with a full kitchen as well as a
±22 feet Yes, Fenced and camera monitored 4
22’+ clear height metal maintenance/warehouse building. The yard area is paved and secured with block wall, motorized gates and security cameras. Location- The location allows for easy access to Interstate 15 Great Basin Highway and is within a mile of local amenities of restaurants, entertainment and sports. Berg St
Losee Rd
››
East La Madre Way
4 4
Property Description
2606 East La Madre Way Area Map
N Pecos Rd
E Washburn Rd
North Las Vegas
nW ay on ov a D
E Lone Mountain Rd
Engineers Way
Losee Rd
Berg St
E La Madre Way
INTERSTATE
15
E Craig Rd
E Craig Rd
5 5
Property Description
2606 East La Madre Way Aerial View
E Washington Rd
INTERSTATE
15
E La Madre Way
Berg St
Losee Rd N 5th St
N COmmerce St
E Washington Rd
Craig Rd
Craig Rd
E Alexander Rd
E Alexander Rd INTERSTATE
15 E Gowan Rd
E Gowan Rd
6 6
Property Description
2606 East La Madre Way Parcel MAP
7 7
Property Description
2606 East La Madre Way Property Photographs
Front Office
Rear Office
Yard
Yard 8 8
2606 East La Madre Way
Everything Old is Looking New Again
Market overview
If there were any doubts whether 2014 would live up to 2013’s excellent performance, the second quarter of 2014 should put those doubts to rest. Net absorption in the second quarter of 2014 equaled property is located in the were North Las Vegas submarket, one of the million square the internavast majority of it in The speculative projects. New completions subdued Las Vegas in the most populous city in1.4Nevada and feet, is an this quarter, with two build-to-suit projects totaling 219,490 square feet being completed. Industrial tionally renowned major resort city for its casino gambling, shopping vacancy decreased to 10.1 percent, almost three percentage points lower than one year ago. The stronger industrial submarkets in Southern Nevada. and fine dining. A growing retirement and family city, it is the 28th weighted average asking rental rate increased to $0.53 per square foot (psf) on a triple net (NNN) most populous city in the United Statesbasis, with$0.03 an cents estimated populahigher than one year ago.
Area Overview
RESEARCH & FORECAST REPORT | Q2 2014
tion by the U.S. Census Bureau of 594,294 as of 2013, with the Clark Southern Nevada’s industrial job market improved in April 2014 (the latest month of data available) County population totaling approximately 2,008,654. MARKET INDICATORS Q2-14
Q3-14
PROJECTED
VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE
CLARK COUNTY ECONOMIC DATA
Jobs (1000s) (APR. 2014)
Visitor Volume (2014 YTD)
Gaming Revenue (2014 YTD)
CURRENT
YEAR AGO
871.4
845.9
13.6 MM
13.0 MM
$3.19 BB
$3.28 BB
$8.6 BB
$7.9 BB
compared with April 2013, with 4,970 new jobs in employment sectors associated with industrial buildings. The Valley added 1,900 construction jobs, 600 manufacturing jobs, 600 wholesale jobs and Interstates 15, 515, US 95 jobs. Unemployment in the Las Vegas-Paradise MSA stood at 200 transportation andand warehousing 215 lead of as the city2014, in all four 7.4 out percent of April down from 9.9 percent in April 2013. Since April 2013, total employment in Southern Nevada increased by 16,800 jobs. directions. Two has major free-
NORTH ways- Interstate 15 and InterSouthern Nevada’s industrial inventory expanded by 219,490 square feet in the second quarter of 2014. LAS VEGAS state 515/U.S. Route 95- cross 95 490,000 square feet Both new completions, for Nicholas & Co. and Tapia, were build-to-suit projects. in ofdowntown Las Vegas. industrial build-to-suit spaceI-15 is slated for completion by the end of 2014, with another 750,000 square feet ofEast-West industrial build-to-suit is the major freeway space planned for completion in 2015. Among the properties NORTHWEST for completion in 2015 two speculative industrial buildings totaling almost 650,000 square andplanned connects Las Vegas toareLos feet. While current levels of construction are not extraordinary, they are shedding light on the lack of Angeles, California and heads large, vacant, well-located M-1 zoned parcels left in Southern Nevada, a problem that will need to be northeast and beyond addressed to by Southern Nevada Salt governments to avoid interruptions in future growth. Lake City, Utah. U.S. Route WEST in industrial 15 the sixthNorth/South consecutive quarter, Southern Nevada experienced positive net absorption 95 Forheads and CENTRAL product. Net has now been positive in eight of the last nine quarters. Net absorption totaled connects Lasabsorption Vegas with Yuma 1,403,579 square feet in the second quarter of 2014, bringing the year-to-date total up to 2,032,486 Arizona & Mexico to the South and to Reno and beyond HISTORICAL VACANCY RATES VS. ASKING LEASE RATES in the North. “All in all, 2014 looks as 15.0%
$0.58
(2013 YTD)
$0.56 $0.54
$0.52 SOUTHWEST Colliers, Research & GIS Manager $0.50 $0.48 $0.46
9 9
2 Q 2014
1 Q 2014
4 Q 2013
Asking Rental Rate
$0.44
EAST LAS VEGAS
95
though it will be the best year for Southern AIRPORT Nevada’s industrial market since 2007.” 215 John M. Stater
3 Q 2013
www.colliers.com/lasvegas
2 Q 2013
Vacancy
1 Q 2013
4 Q 2012
2 Q 2012
3 Q 2012
14.0% McCarran International Airport 13.0% handles international Commercial and domestic flights into the 87.9% 85.4% 12.0% Occupancy (Q2) Las Vegas Valley. The airport 11.0% also serves private aircraft and SOURCE: THE CENTER FOR BUSINESS 10.0% & ECONOMIC RESEARCH, UNLV freight/cargo flights especially for FedEx Express and UPS. Las Vegas is served by Union Pacific Railroad with Las9.0%Vegas being an impor8.0% tant stop for freight on the busy Los Angeles/Chicago route.
Taxable Sales
squar first h that e recove
HENDERSON
2013 p than s lack o time, elimin of 201 percen
Annu South quarte 2,745 true in excep posted The s
feet. Thi addressed by Southern Nevada governments to avoid interruptions in square future growth.
first half of 2013 For the sixth consecutive quarter, Southern Nevada experienced positive absorption i Market overview thatnet experienced NORTH product. Net absorption has now beenLAS positive in eight of the last nine quarters. VEGAS recoveryNetinabsorp 2004 215
CLARK COUNTY ECONOMIC DATA
2606 East La Madre Way
Jobs (1000s) (APR. 2014)
CURRENT
YEAR AGO
871.4
845.9
95 second quarter of 2014, bringing the year-to-date total up to 1,403,579 square feet in the NORTHWEST HISTORICAL VACANCY RATES VS. ASKING LEASE RATES EAST LAS VEGAS
Industrial Market Overview Visitor Volume 13.0 MM 13.6 MM (2014 YTD) Industrial demand in southern Nevada’s industrial markets continues Gaming Revenue to be strong with increased absorption, lowered$3.19 vacancy, $3.28 rental BB BB rising (2014 YTD) rates and increases in construction in the first 2 quarters of 2014. Sales Southern Nevada’s industrial Taxable job YTD) market continues $7.9 BB $8.6 BB to strengthen (2013 with the unemployment rate standing at 7.4% as of April 2014, down Commercial 87.9% 85.4% from 9.9% in April 2013. Occupancy (Q2)
15.0%
WEST CENTRAL
14.0%
15
13.0%
95
12.0%
AIRPORT
11.0%
Absorption
SOURCE: THE CENTER FOR BUSINESS & ECONOMIC RESEARCH, UNLV
215
10.0%
Vacancy Rate
10.1%
Asking Rent (PSF, NNN)
$0.53
$0.52
$0.50
1,403,579
628,907
1,156,393
219,490
417,142
489,320
Net Absorption (SF)
The industries most active in occupying industrial space so far in 2014 were involved in business and personal services, retail services, manufacturing and wholesale. Local companies took about 50 percent of the leased square footage we tracked in 2014, down from 58 percent in 2013. Companies headquartered in the Southwest United States (not including Southern Nevada) took 13 percent of the
New Completions (SF)
1010
2 Q 2014
Q2-14
1 Q 2014
MARKET SUMMARY
Market Activity & Sales
Annual net abs HENDERSON $0.46Southern Nevada quarter of 2014, $0.44 2,745 square feet true in regards t Asking Rental Rate exception being posted negative 2 The strongest ne North Las Vegas, absorption (and Q1-14 Q2-13 suit construction with 273,121 squa 11.2% 12.8% new completions 4 Q 2013
Vacancy
3 Q 2013
2 Q 2013
1 Q 2013
4 Q 2012
2 Q 2012
8.0%
$0.50 $0.48
SOUTHWEST
9.0%
3 Q 2012
Net absorption in the second quarter of 2014 equaled 1.4 million square feet, the vast majority of it in speculative projects. For the sixth consecutive quarter, Southern Nevada experience positive net absorption in industrial product and has now been positive in eight of the last nine quarters. At mid-year total absorption is up to 2,032,486 million square feet which is slightly higher than that in the first half of 2013 and is at a pace that exceeds that experienced www.colliers.com/lasvegas during the last major economic recovery in 2004. Industrial vacancy has been on the decline since the first quarter of 2012, dropping from a high of 14.4% then to the current rate of 10.1%. This is the lowest industrial vacancy recorded since the fourth quarter of 2008.
2013 posted stro than speculative “All in all, 20 it wil $0.58lack of though speculat year for Sou time, a Nevada’s concern. $0.56 ind eliminated in 201 market since $0.54 of 2014 has totale Jo $0.52 Colliers, percent of thisResear sp
Gross absorption 6.05 million squa square feet of gr first half of 2013 gross absorption absorption, indic experienced few one year ago. Th the economy, as i downsizing or cl
percent of the leased square footage we tracked in 2014, down from 58 percent in 2013. Companies MARKET SUMMARY headquartered in the Southwest United States Q2-14 Q1-14 Q2-13 (not including Southern Nevada) took 13 percent of the leased space we have tracked in 2014, while Vacancy Rate 10.1% 11.2% 12.8% 11 percent was taken by Midwest companies and leasedAsking spaceRent we have tracked in 2014, while 11 percent was taken by Midwest companies and 6 percent by by companies Plains. Based 6 percent companiesfrom fromthe the Great Great Plains. $0.53 $0.52 $0.50 (PSF, NNN) on current rates of demand, the industrial market has about twelveinmonths supply. This fact, coupled with increasing Gross absorption the first of half of 2014 totaled askingNetrates, is stimulating plans for new speculative industrial development. Sales volume average salesaverage price areasking up inlease 2014rate versus 6.05 million square feet, lower than the 7.15 millionandThe weighted for 2013. Absorption 1,403,579 628,907 1,156,393 There have been 26 industrial investment sales sosquare far infeet 2014 1.16 million square Investment volume $104.7 million, givof totaling gross absorption recorded in thefeet.industrial spacesales increased by is $0.01 this quarter (SF) ing the market an average sales price of $90.33 perfirst square foot. Compare thisthat to the firstlower half ofto2013 26 buildings totaling $0.53when psf NNN. This quarter’s asking743,000 lease ratesquare half of 2013. It is notable 2014’s New feet sold for a total of $38.4 million and an average sales price of $51.66 square Distressed in 2014 totaled five buildings containing $0.03 higher than in the second quarter of gross absorption occurredper along withfoot. higher net wassales Completions 219,490 417,142 489,320 absorption, indicating theprice industrial marketper 2013. If adjusted for inflation , the properties weighted average 122,000 and an averagethat sales of $73.11 square foot. Non-distressed sold for an (SF)square feet, with a sales volume of $8.9 million experienced fewer vacations of space now than asking lease rate would be $0.41 psf NNN, a $0.02 average of $92.36 per square foot. one year ago. This is a hopeful sign of stability in increase from one year ago. The current asking the economy, as it indicates fewer businesses are rate adjusted for inflation is $0.13 lower than it downsizing or closing their doors. was during the last economic recovery in 2004.
2606 East La Madre Way
The strongest net absorption this quarter was in North Las Vegas, with 590,216 square feet of net absorption (and 219,490 square feet of build-tosuit construction) and the Henderson submarket, with 273,121 square feet of net absorption and no new completions.
Market overview
(Continued on page 5) LEASE & SALES ACTIVITY LEASE ACTIVITY PROPERTY ADDRESS
LEASE DATE
LEASE TERM
SIZE SF
LEASE RATE
TYPE
Henderson Commerce Center IV
Jun 2014
60 months
75,000 SF
$0.45 NNN
Warehouse/Distribution
Jennifer Park
April 2014
63 months
51,000 SF
$0.30 NNN
Light Distribution
Craig Corporate Park
May 2014
39 months
19,000 SF
$0.29 NNN
Light Industrial
H Bizctr Whitney Mesa
May 2014
42 months
4,000 SF
$0.49 NNN
Flex
Post Commerce Center
May 2014
37 months
2,500 SF
$0.55 NNN
Incubator
SALES ACTIVITY PROPERTY ADDRESS
SALE DATE
SALE PRICE
SIZE SF
PRICE/SF
TYPE
Patrick Commerce Center
May 2014
$15,124,000
221,000 SF
$69
Light Distribution
Mary Crest Road
May 2014
$9,000,000
157,000 SF
$57
Light Distribution
Shetakis Distribution Facility
April 2014
$5,500,000
98,000 SF
$56
Warehouse/Distribution
Tanner Industrial Park
April 2014
$5,000,000
44,000 SF
$113
Light Distribution
Redwood Avenue
April 2014
$3,000,000
52,000 SF
$58
Light Industrial
P. 2
| COLLIERS INTERNATIONAL
1111
Market overview
2606 East La Madre Way
RESEARCH & FORECAST REPORT | Q2 2014 | INDUSTRIAL MARKET COMPARISONS INDUSTRIAL MARKET TYPE
BLDGS
TOTAL INVENTORY SF
DIRECT VACANT SF
DIRECT SUBLEASE SUBLEASE VACANCY VACANCY VACANT SF RATE RATE
TOTAL VACANT SF
VACANCY RATE CURRENT QUARTER
VACANCY NET RATE ABSORPTION PRIOR CURRENT QUARTER QTR SF
NET WEIGHTED COMPLETIONS UNDER PLANNED ABSORPTION COMPLETIONS AVG ASKING CURRENT CONSTRUCTION CONSTRUCTION YTD YTD SF RENTAL QTR SF SF SF SF RATE
AIRPORT SUBMARKET WH LD LI INC FLX Total
80 69 203 89 65 506
5,252,458 3,164,029 2,924,197 1,657,414 1,308,236 14,306,334
429,845 413,150 340,469 317,798 404,543 1,905,805
8.2% 13.1% 11.6% 19.2% 30.9% 13.3%
44,588 14,000 44,300 3,408 24,422 130,718
0.8% 0.4% 1.5% 0.2% 1.9% 0.9%
474,433 427,150 384,769 321,206 428,965 2,036,523
9.0% 13.5% 13.2% 19.4% 32.8% 14.2%
9.1% 19.5% 13.2% 22.4% 32.4% 15.9%
4,500 183,189 4,021 43,923 2,521 238,154
(25,524) 149,517 72,662 40,288 63,525 300,468
-
-
193,000 193,000
-
$0.62 $0.57 $0.78 $0.73 $0.83 $0.70
18,280 35,571 116,553 73,501 97,110 341,015
1.9% 7.3% 7.5% 26.1% 41.6% 9.7%
11,494 11,494
0.0% 0.0% 0.7% 0.0% 0.0% 0.3%
18,280 35,571 128,047 73,501 97,110 352,509
1.9% 7.3% 8.3% 26.1% 41.6% 10.0%
1.9% 11.7% 9.0% 26.9% 41.6% 11.0%
21,440 10,920 2,181 34,541
31,912 16,849 11,322 782 60,865
-
-
-
-
$0.31 $0.65 $0.38 $0.49 $0.62 $0.50
113,010 140,177 291,416 78,067 272,003 894,673
1.7% 9.0% 8.7% 16.4% 20.2% 6.7%
-
0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
113,010 140,177 291,416 78,067 272,003 894,673
1.7% 9.0% 8.7% 16.4% 20.2% 6.7%
3.0% 14.0% 10.7% 20.0% 21.6% 8.7%
89,140 77,528 70,134 17,422 18,897 273,121
390,944 103,781 193,574 30,891 6,385 725,575
-
280,000 71,514 351,514
-
-
$0.41 $0.47 $0.45 $0.46 $0.83 $0.56
1,393,893 885,872 938,785 97,184 211,964 3,527,698
7.0% 17.5% 10.8% 15.3% 27.3% 10.0%
0 7,022 0 3,200 0 10,222
0.0% 0.1% 0.0% 0.5% 0.0% 0.0%
1,393,893 892,894 938,785 100,384 211,964 3,537,920
7.0% 17.7% 10.8% 15.9% 27.3% 10.0%
8.8% 19.8% 10.4% 10.6% 27.7% 11.3%
509,643 106,467 4,597 (33,536) 3,045 590,216
503,890 61,709 (94,648) (29,939) 24,772 465,784
180,000 39,490 219,490
245,628 39,490 285,118
-
917,659 917,659
$0.33 $0.34 $0.37 $0.49 $0.65 $0.37
17,213 43,973 15,204 234,762 311,152
0.0% 34.4% 12.2% 15.3% 31.7% 21.1%
-
0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
17,213 43,973 15,204 234,762 311,152
0.0% 34.4% 12.2% 15.3% 31.7% 21.1%
0.0% 34.4% 13.4% 10.2% 31.5% 20.9%
4,232 (5,075) (1,902) (2,745)
5,118 (5,075) (2,964) (2,921)
-
-
-
-
$$0.72 $0.40 $0.65 $1.00 $0.88
1,366,288 798,447 902,963 235,974 261,801 3,565,473
10.3% 11.2% 9.6% 9.5% 15.9% 10.5%
75,000 15,429 24,472 3,900 4,451 123,252
0.6% 0.2% 0.3% 0.2% 0.3% 0.4%
1,441,288 813,876 927,435 239,874 266,252 3,688,725
10.9% 11.4% 9.9% 9.7% 16.1% 10.9%
13.2% 13.0% 9.6% 10.6% 15.4% 12.1%
138,877 108,434 (30,091) 16,488 (18,644) 215,064
109,301 157,726 62,462 75,376 (27,623) 377,242
-
-
51,502 51,502
45,500 45,500
$0.49 $0.51 $0.59 $0.60 $0.90 $0.56
2,222,609 684,757 7,213,854 2,550,564 171,607 12,843,391
109,457 162,580 544,190 230,121 9,503 1,055,851
4.9% 23.7% 7.5% 9.0% 5.5% 8.2%
6,104 5,572 11,676
0.0% 0.0% 0.1% 0.0% 3.2% 0.1%
109,457 162,580 550,294 230,121 15,075 1,067,527
4.9% 23.7% 7.6% 9.0% 8.8% 8.3%
4.9% 19.2% 8.4% 10.1% 8.6% 8.7%
(30,989) 53,453 27,515 5,249 55,228
5,000 (21,126) 34,167 69,259 18,173 105,473
-
-
-
-
$0.30 $0.48 $0.65 $0.71 $0.68 $0.60
48,636,879 18,134,795 33,506,813 8,182,764 6,231,435 114,692,686
3,430,773 2,453,010 3,178,349 1,047,849 1,491,686 11,601,667
7.1% 13.5% 9.5% 12.8% 23.9% 10.1%
119,588 36,451 86,370 10,508 34,445 287,362
0.2% 0.2% 0.3% 0.1% 0.6% 0.3%
3,550,361 2,489,461 3,264,719 1,058,357 1,526,131 11,889,029
7.3% 13.7% 9.7% 12.9% 24.5% 10.4%
8.9% 16.4% 10.0% 13.9% 24.5% 11.6%
742,160 466,069 117,266 68,918 9,166 1,403,579
983,611 483,519 290,184 192,122 83,050 2,032,486
180,000 39,490 219,490
525,628 111,004 636,632
193,000 51,502 244,502
963,159 963,159
$0.43 $0.46 $0.53 $0.64 $0.83 $0.53
EAST LAS VEGAS SUBMARKET WH LD LI INC FLX Total
24 28 129 12 10 203
982,115 486,456 1,546,941 281,755 233,692 3,530,959
HENDERSON SUBMARKET WH LD LI INC FLX Total
73 35 336 31 82 557
6,671,956 1,555,288 3,363,418 476,278 1,349,257 13,416,197
NORTH LAS VEGAS SUBMARKET WH LD LI INC FLX Total
193 182 840 36 45 1,296
20,053,707 5,057,300 8,718,906 633,221 776,801 35,239,935
NORTHWEST SUBMARKET WH LD LI INC FLX Total
5 1 24 4 56 90
224,906 50,000 360,036 99,427 740,230 1,474,599
SOUTHWEST SUBMARKET WH LD LI INC FLX Total
137 188 759 120 107 1,311
13,229,128 7,136,965 9,379,461 2,484,105 1,651,612 33,881,271
WEST CENTRAL SUBMARKET WH LD LI INC FLX Total
58 38 590 73 8 767
MARKET TOTAL WH LD LI INC FLX Total
570 541 2,881 365 373 4,730
1212
Market Comparables
2606 East La Madre Way SALE COMPARABLES Building Size
Land Size
Sale Price / PSF
1. 2722-2732 Abels Lane, Unit 2722 Las Vegas, NV 89115
17,740 SF
43,560 SF
$402,000 $45.32
04/22/2013
2. 3537 N. Bruce Street North Las Vegas, NV 89030
6,328 SF
179,032 SF
$640,000 $101.14
01/02/2013
3. 2980 Marion Drive Las Vegas, NV 89115
8,094 SF
93,218 SF
$780,355 $96.77
12/21/2012
4. 3505 E. Charleston Boulevard Las Vegas, NV 89146
9,211 SF
54,014 SF
$400,000 $43.43
10/22/2012
Property
1313
uSER SALE/ INVESTMENT
Sale Date
Market Comparables
2606 East La Madre Way SALE COMPARABLES Map
Property
2
1. 2722-2732 Abels Lane, Unit 2722 Las Vegas, NV 89115
3 1
2. 3537 N. Bruce Street North Las Vegas, NV 89030 3. 2980 Marion Drive Las Vegas, NV 89115 4. 3505 E. Charleston Boulevard Las Vegas, NV 89146
4
1414
Tenant summary
2606 East La Madre Way
The Company Founded in 1978, Trench Plate® Rental Co (“TPRC”) is one of the largest providers of government mandated trench safety equipment in the Western United States with 11 fully-equipped branches in Southern California (5), Northern California (3), and one each in Las Vegas and Reno, NV and Houston, TX. The Company also provides traffic control equipment and services through its separate TPR-Traffic Solutions® (“TPR-TS”) division with branches in City of Commerce, CA, Fontana, CA, and San Leandro, CA as well as through seven TPRC branches. The Company leases its equipment on a short-term basis, with most leases approximating 7-60 days. Customers sign a formal lease agreement and pay for the equipment based on a 28 day billing cycle. TPRC also supports major excavation projects, large-scale pipeline upgrade and repair projects, and underground fiber optic cable installation and repair projects which usually take 180-365 days or longer to complete. The need for trench safety is mandated by both federal and state OSHA. Traffic control devices fall under the various regulatory agencies including federal, state, county, and local governmental units. The fixed costs to companies of owning and managing their own fleet of steel plates and trench boxes, underground shoring systems, H-pile, slide rail systems and traffic control devices is significant. Renting TPRC’s equipment is a more cost-effective solution for almost all governmental construction entities, private underground construction companies, public utilities, and industrial companies. TPRC is an innovator in the trench safety equipment industry that continually develops new products to service existing clients’ needs and to initiate new demand from potential clients. The Company’s product line is extensive including trench safety equipment such as Trench Plates®, temporary hydraulic shoring (Quik-Shor®), steel trench shields, manhole boxes, aluminum trench boxes (Quik-Boxes®), rock plates, slide rail systems, H-pile and wide flange beams, traffic control devices, K-rail, as well as providing specialized training for the contractors including: Competent Person Training; Trench Rescue Training; and Flagger Training. The Company serves a variety of end-users of underground infrastructure maintenance and upgrade projects, as well as new infrastructure construction. These end-users may include state, county and municipal government entities, public gas and electric power utilities, water utilities, waste treatment facilities, telecommunication companies, petro-chemical facilities, oil refineries, oil and gas pipeline companies, and residential and commercial property development.
1515
EXCLUSIVE ADVISOR: C. Whit gilfillan Senior Associate License No. 01841852 909.937.6311 [email protected]
LOCAL MARKET CONTACT: COLLIERS INTERNATIONAL 2855 E. Guasti road, suite 401 ontario, ca 91761 www.colliers.com
Eric molfetta Senior Associate NV License No. 71101 702.836.3756 [email protected]
S A L E - L E A S E B AC K I N V E S T M E N T O P P O RT U N I T Y
Investment Offering
2606 East La Madre Way Colliers International is solely authorized to present this property investment offering (the “Offering”). This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of Sunset Pointe Industrial Center (the “Property”). Prior to submitting an offer to purchase the Property, interested parties should perform and rely upon their own investigations, analyses, estimates and projections and otherwise satisfy any concerns regarding material aspects of the proposed transaction including, but not limited to, legal, municipal, environmental, operational, seismic, financial and physical issues, and all other matters affecting or pertaining to the Property. The Seller will be offering the Property including all appurtenances and tenant improvements, solely on an “As-Is, With-AllFaults” basis, without any representations or warranties. No person is authorized to make any representations or warranties on behalf of the Seller regarding the Property. Any and all information regarding the Property provided to any interested party by the Seller or Colliers International, including all information contained in the Offering, is provided without any representation or assurance, express or implied, regarding the accuracy, completeness or current status of applicability of such information. Each interested party is expected to undertake such reviews and investigations and make such inquiries as such party may believe to be necessary, appropriate or advisable for the purpose of forming a decision to make an offer to acquire the Property. The Owner expressly reserves the right, at is sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/ or to terminate discussions with an entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property
unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived. The material contained herein is confidential and is presented strictly as information for the exclusive use of the prospective purchaser. Receipt and review of this Offering by the prospective purchaser constitutes an agreement not to divulge, share or distribute the information to any other party, except the prospective purchaser’s legal counsel and financial advisors, without the prior specific written authorization of the Seller or Colliers International. Each prospective purchaser shall also agree to and comply with the provisions of the confidentiality agreement executed by such prospective purchaser prior to receipt of this Offering. This Offering is submitted subject to errors, changes, omissions, changes in price, market and other conditions. It contains selected information pertaining to the Property and does not purport to be all-inclusive or to contain all of the information that prospective purchasers may desire. It should be noted that any and all market analyses, estimates and projections contained in this Offering are provided for general reference purposes only and are based on assumptions related to the general economy, competition, real estate market trends, and other factors beyond the control of the Seller or Colliers International. Such analyses, estimates and projections are therefore subject to material variation, and may not be consistent with the views or assumptions held by other professionals. PHOTOCOPYING OR OTHER DUPLICATION OF THIS OFFERING IS NOT AUTHORIZED
1 1
Table of Contents
2606 East La Madre Way Exclusive Advisor C. Whit gilfillan Senior Associate CA License No. 01841852 909.937.6311 [email protected]
Executive Summary..........................................................3 The Offering Investment Summary Property Summary Investment Highlights
Property Description......................................................... 5 Property Details Regional Map Aerial Parcel Map Property Photographs
Local market contact Eric Molfetta Senior Associate NV License No. 71101 702.836.3756 [email protected]
Market Overview............................................................ 11 Market Indicators Market Activity
Market Comparables.......................................................15 Lease Comparables Lease Availabilities Sale Availabilities Sale Comparables
Tenant Summary.............................................................25 COLLIERS INTERNATIONAL 2855 E. Guasti road, suite 401 ontario, ca 91761 www.colliers.com
2 2
Executive Summary
2606 East La Madre Way The Offering Colliers International has been retained as exclusive advisor by
Investment summary
Trench Plate© Rental Co.(TPRC) for the sale-leaseback of Trench
Price:
$ 2,100,000.00
Monthly Lease Rate:
$ 10,500.00 NNN *Negotiable
of a +/-5,500 square foot office building and a +/-5,000 square foot
Annual Increases:
CPI capped at 3% annually
metal warehouse on a +/-2.43 acre parcel with an adjacent +/-2.43
CAP Rate:
6.0 %
Plate© Rental Co Las Vegas Branch, located at 2606 East La Madre Way in North Las Vegas, Nevada. The subject facility is comprised
acre parcel to the west included as well. The facility has immediate access to the Interstate 15 freeway approximately one mile away via Berg St and E Craig Rd/SR 573. Trench Plate© Rental Co Las Vegas Branch is located in the City of North Las Vegas, in Clark County the most populous county in the State of Nevada which is home to approximately 2 million residents or 71% of the State’s population. Trench Plate© Rental Co Las Vegas, represents an opportunity for an investor to acquire a long term stabilized industrial investment with an excellent credit tenant with long term upside for future development.
3 3
Executive Summary
2606 East La Madre Way Investment Highlights
Property Summary
›› Excellent Credit Tenant- TPRC has been in business since 1978 and is one in the Western United States with 11 fully-equipped branches in Southern
Address: APN: Zoning:
2606 East La Madre Way, North Las Vegas, NV 90242 124-36-301; 123-36-301-006 M-2 General
California (5), Northern California (3), and one each in Las Vegas, NV;
Building SF:
±11,804 sqare feet (per Clark County Assessor)
and Reno, NV; and Houston, TX. The company also provides traffic
Land Area:
±4.860 Acres
control equipment through its separate TPR-Traffic Solutions® division.
Site Coverage:
±5.58% 2 1998 Concrete Tilt-Up for Office and Metal for Warehouse
of the largest providers of government mandated trench safety equipment
Total Buildings: Year Built:
›› Long-Term Lease Back- Long-Term Lease Back- TPRC will be
Construction Type:
signing a 5-10 year Triple Net Lease with annual rental rate increases.
Min. Clear Height: Fenced Yard Area: Ground Level Doors:
›› Excellent Construction and Amenities- The existing facility includes a Class A Industrial Office building equipped with a full kitchen as well as a
±22 feet Yes, Fenced and camera monitored 4
22’+ clear height metal maintenance/warehouse building. The yard area is paved and secured with block wall, motorized gates and security cameras. Location- The location allows for easy access to Interstate 15 Great Basin Highway and is within a mile of local amenities of restaurants, entertainment and sports. Berg St
Losee Rd
››
East La Madre Way
4 4
Property Description
2606 East La Madre Way Area Map
N Pecos Rd
E Washburn Rd
North Las Vegas
nW ay on ov a D
E Lone Mountain Rd
Engineers Way
Losee Rd
Berg St
E La Madre Way
INTERSTATE
15
E Craig Rd
E Craig Rd
5 5
Property Description
2606 East La Madre Way Aerial View
E Washington Rd
INTERSTATE
15
E La Madre Way
Berg St
Losee Rd N 5th St
N COmmerce St
E Washington Rd
Craig Rd
Craig Rd
E Alexander Rd
E Alexander Rd INTERSTATE
15 E Gowan Rd
E Gowan Rd
6 6
Property Description
2606 East La Madre Way Parcel MAP
7 7
Property Description
2606 East La Madre Way Property Photographs
Front Office
Rear Office
Yard
Yard 8 8
2606 East La Madre Way
Everything Old is Looking New Again
Market overview
If there were any doubts whether 2014 would live up to 2013’s excellent performance, the second quarter of 2014 should put those doubts to rest. Net absorption in the second quarter of 2014 equaled property is located in the were North Las Vegas submarket, one of the million square the internavast majority of it in The speculative projects. New completions subdued Las Vegas in the most populous city in1.4Nevada and feet, is an this quarter, with two build-to-suit projects totaling 219,490 square feet being completed. Industrial tionally renowned major resort city for its casino gambling, shopping vacancy decreased to 10.1 percent, almost three percentage points lower than one year ago. The stronger industrial submarkets in Southern Nevada. and fine dining. A growing retirement and family city, it is the 28th weighted average asking rental rate increased to $0.53 per square foot (psf) on a triple net (NNN) most populous city in the United Statesbasis, with$0.03 an cents estimated populahigher than one year ago.
Area Overview
RESEARCH & FORECAST REPORT | Q2 2014
tion by the U.S. Census Bureau of 594,294 as of 2013, with the Clark Southern Nevada’s industrial job market improved in April 2014 (the latest month of data available) County population totaling approximately 2,008,654. MARKET INDICATORS Q2-14
Q3-14
PROJECTED
VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE
CLARK COUNTY ECONOMIC DATA
Jobs (1000s) (APR. 2014)
Visitor Volume (2014 YTD)
Gaming Revenue (2014 YTD)
CURRENT
YEAR AGO
871.4
845.9
13.6 MM
13.0 MM
$3.19 BB
$3.28 BB
$8.6 BB
$7.9 BB
compared with April 2013, with 4,970 new jobs in employment sectors associated with industrial buildings. The Valley added 1,900 construction jobs, 600 manufacturing jobs, 600 wholesale jobs and Interstates 15, 515, US 95 jobs. Unemployment in the Las Vegas-Paradise MSA stood at 200 transportation andand warehousing 215 lead of as the city2014, in all four 7.4 out percent of April down from 9.9 percent in April 2013. Since April 2013, total employment in Southern Nevada increased by 16,800 jobs. directions. Two has major free-
NORTH ways- Interstate 15 and InterSouthern Nevada’s industrial inventory expanded by 219,490 square feet in the second quarter of 2014. LAS VEGAS state 515/U.S. Route 95- cross 95 490,000 square feet Both new completions, for Nicholas & Co. and Tapia, were build-to-suit projects. in ofdowntown Las Vegas. industrial build-to-suit spaceI-15 is slated for completion by the end of 2014, with another 750,000 square feet ofEast-West industrial build-to-suit is the major freeway space planned for completion in 2015. Among the properties NORTHWEST for completion in 2015 two speculative industrial buildings totaling almost 650,000 square andplanned connects Las Vegas toareLos feet. While current levels of construction are not extraordinary, they are shedding light on the lack of Angeles, California and heads large, vacant, well-located M-1 zoned parcels left in Southern Nevada, a problem that will need to be northeast and beyond addressed to by Southern Nevada Salt governments to avoid interruptions in future growth. Lake City, Utah. U.S. Route WEST in industrial 15 the sixthNorth/South consecutive quarter, Southern Nevada experienced positive net absorption 95 Forheads and CENTRAL product. Net has now been positive in eight of the last nine quarters. Net absorption totaled connects Lasabsorption Vegas with Yuma 1,403,579 square feet in the second quarter of 2014, bringing the year-to-date total up to 2,032,486 Arizona & Mexico to the South and to Reno and beyond HISTORICAL VACANCY RATES VS. ASKING LEASE RATES in the North. “All in all, 2014 looks as 15.0%
$0.58
(2013 YTD)
$0.56 $0.54
$0.52 SOUTHWEST Colliers, Research & GIS Manager $0.50 $0.48 $0.46
9 9
2 Q 2014
1 Q 2014
4 Q 2013
Asking Rental Rate
$0.44
EAST LAS VEGAS
95
though it will be the best year for Southern AIRPORT Nevada’s industrial market since 2007.” 215 John M. Stater
3 Q 2013
www.colliers.com/lasvegas
2 Q 2013
Vacancy
1 Q 2013
4 Q 2012
2 Q 2012
3 Q 2012
14.0% McCarran International Airport 13.0% handles international Commercial and domestic flights into the 87.9% 85.4% 12.0% Occupancy (Q2) Las Vegas Valley. The airport 11.0% also serves private aircraft and SOURCE: THE CENTER FOR BUSINESS 10.0% & ECONOMIC RESEARCH, UNLV freight/cargo flights especially for FedEx Express and UPS. Las Vegas is served by Union Pacific Railroad with Las9.0%Vegas being an impor8.0% tant stop for freight on the busy Los Angeles/Chicago route.
Taxable Sales
squar first h that e recove
HENDERSON
2013 p than s lack o time, elimin of 201 percen
Annu South quarte 2,745 true in excep posted The s
feet. Thi addressed by Southern Nevada governments to avoid interruptions in square future growth.
first half of 2013 For the sixth consecutive quarter, Southern Nevada experienced positive absorption i Market overview thatnet experienced NORTH product. Net absorption has now beenLAS positive in eight of the last nine quarters. VEGAS recoveryNetinabsorp 2004 215
CLARK COUNTY ECONOMIC DATA
2606 East La Madre Way
Jobs (1000s) (APR. 2014)
CURRENT
YEAR AGO
871.4
845.9
95 second quarter of 2014, bringing the year-to-date total up to 1,403,579 square feet in the NORTHWEST HISTORICAL VACANCY RATES VS. ASKING LEASE RATES EAST LAS VEGAS
Industrial Market Overview Visitor Volume 13.0 MM 13.6 MM (2014 YTD) Industrial demand in southern Nevada’s industrial markets continues Gaming Revenue to be strong with increased absorption, lowered$3.19 vacancy, $3.28 rental BB BB rising (2014 YTD) rates and increases in construction in the first 2 quarters of 2014. Sales Southern Nevada’s industrial Taxable job YTD) market continues $7.9 BB $8.6 BB to strengthen (2013 with the unemployment rate standing at 7.4% as of April 2014, down Commercial 87.9% 85.4% from 9.9% in April 2013. Occupancy (Q2)
15.0%
WEST CENTRAL
14.0%
15
13.0%
95
12.0%
AIRPORT
11.0%
Absorption
SOURCE: THE CENTER FOR BUSINESS & ECONOMIC RESEARCH, UNLV
215
10.0%
Vacancy Rate
10.1%
Asking Rent (PSF, NNN)
$0.53
$0.52
$0.50
1,403,579
628,907
1,156,393
219,490
417,142
489,320
Net Absorption (SF)
The industries most active in occupying industrial space so far in 2014 were involved in business and personal services, retail services, manufacturing and wholesale. Local companies took about 50 percent of the leased square footage we tracked in 2014, down from 58 percent in 2013. Companies headquartered in the Southwest United States (not including Southern Nevada) took 13 percent of the
New Completions (SF)
1010
2 Q 2014
Q2-14
1 Q 2014
MARKET SUMMARY
Market Activity & Sales
Annual net abs HENDERSON $0.46Southern Nevada quarter of 2014, $0.44 2,745 square feet true in regards t Asking Rental Rate exception being posted negative 2 The strongest ne North Las Vegas, absorption (and Q1-14 Q2-13 suit construction with 273,121 squa 11.2% 12.8% new completions 4 Q 2013
Vacancy
3 Q 2013
2 Q 2013
1 Q 2013
4 Q 2012
2 Q 2012
8.0%
$0.50 $0.48
SOUTHWEST
9.0%
3 Q 2012
Net absorption in the second quarter of 2014 equaled 1.4 million square feet, the vast majority of it in speculative projects. For the sixth consecutive quarter, Southern Nevada experience positive net absorption in industrial product and has now been positive in eight of the last nine quarters. At mid-year total absorption is up to 2,032,486 million square feet which is slightly higher than that in the first half of 2013 and is at a pace that exceeds that experienced www.colliers.com/lasvegas during the last major economic recovery in 2004. Industrial vacancy has been on the decline since the first quarter of 2012, dropping from a high of 14.4% then to the current rate of 10.1%. This is the lowest industrial vacancy recorded since the fourth quarter of 2008.
2013 posted stro than speculative “All in all, 20 it wil $0.58lack of though speculat year for Sou time, a Nevada’s concern. $0.56 ind eliminated in 201 market since $0.54 of 2014 has totale Jo $0.52 Colliers, percent of thisResear sp
Gross absorption 6.05 million squa square feet of gr first half of 2013 gross absorption absorption, indic experienced few one year ago. Th the economy, as i downsizing or cl
percent of the leased square footage we tracked in 2014, down from 58 percent in 2013. Companies MARKET SUMMARY headquartered in the Southwest United States Q2-14 Q1-14 Q2-13 (not including Southern Nevada) took 13 percent of the leased space we have tracked in 2014, while Vacancy Rate 10.1% 11.2% 12.8% 11 percent was taken by Midwest companies and leasedAsking spaceRent we have tracked in 2014, while 11 percent was taken by Midwest companies and 6 percent by by companies Plains. Based 6 percent companiesfrom fromthe the Great Great Plains. $0.53 $0.52 $0.50 (PSF, NNN) on current rates of demand, the industrial market has about twelveinmonths supply. This fact, coupled with increasing Gross absorption the first of half of 2014 totaled askingNetrates, is stimulating plans for new speculative industrial development. Sales volume average salesaverage price areasking up inlease 2014rate versus 6.05 million square feet, lower than the 7.15 millionandThe weighted for 2013. Absorption 1,403,579 628,907 1,156,393 There have been 26 industrial investment sales sosquare far infeet 2014 1.16 million square Investment volume $104.7 million, givof totaling gross absorption recorded in thefeet.industrial spacesales increased by is $0.01 this quarter (SF) ing the market an average sales price of $90.33 perfirst square foot. Compare thisthat to the firstlower half ofto2013 26 buildings totaling $0.53when psf NNN. This quarter’s asking743,000 lease ratesquare half of 2013. It is notable 2014’s New feet sold for a total of $38.4 million and an average sales price of $51.66 square Distressed in 2014 totaled five buildings containing $0.03 higher than in the second quarter of gross absorption occurredper along withfoot. higher net wassales Completions 219,490 417,142 489,320 absorption, indicating theprice industrial marketper 2013. If adjusted for inflation , the properties weighted average 122,000 and an averagethat sales of $73.11 square foot. Non-distressed sold for an (SF)square feet, with a sales volume of $8.9 million experienced fewer vacations of space now than asking lease rate would be $0.41 psf NNN, a $0.02 average of $92.36 per square foot. one year ago. This is a hopeful sign of stability in increase from one year ago. The current asking the economy, as it indicates fewer businesses are rate adjusted for inflation is $0.13 lower than it downsizing or closing their doors. was during the last economic recovery in 2004.
2606 East La Madre Way
The strongest net absorption this quarter was in North Las Vegas, with 590,216 square feet of net absorption (and 219,490 square feet of build-tosuit construction) and the Henderson submarket, with 273,121 square feet of net absorption and no new completions.
Market overview
(Continued on page 5) LEASE & SALES ACTIVITY LEASE ACTIVITY PROPERTY ADDRESS
LEASE DATE
LEASE TERM
SIZE SF
LEASE RATE
TYPE
Henderson Commerce Center IV
Jun 2014
60 months
75,000 SF
$0.45 NNN
Warehouse/Distribution
Jennifer Park
April 2014
63 months
51,000 SF
$0.30 NNN
Light Distribution
Craig Corporate Park
May 2014
39 months
19,000 SF
$0.29 NNN
Light Industrial
H Bizctr Whitney Mesa
May 2014
42 months
4,000 SF
$0.49 NNN
Flex
Post Commerce Center
May 2014
37 months
2,500 SF
$0.55 NNN
Incubator
SALES ACTIVITY PROPERTY ADDRESS
SALE DATE
SALE PRICE
SIZE SF
PRICE/SF
TYPE
Patrick Commerce Center
May 2014
$15,124,000
221,000 SF
$69
Light Distribution
Mary Crest Road
May 2014
$9,000,000
157,000 SF
$57
Light Distribution
Shetakis Distribution Facility
April 2014
$5,500,000
98,000 SF
$56
Warehouse/Distribution
Tanner Industrial Park
April 2014
$5,000,000
44,000 SF
$113
Light Distribution
Redwood Avenue
April 2014
$3,000,000
52,000 SF
$58
Light Industrial
P. 2
| COLLIERS INTERNATIONAL
1111
Market overview
2606 East La Madre Way
RESEARCH & FORECAST REPORT | Q2 2014 | INDUSTRIAL MARKET COMPARISONS INDUSTRIAL MARKET TYPE
BLDGS
TOTAL INVENTORY SF
DIRECT VACANT SF
DIRECT SUBLEASE SUBLEASE VACANCY VACANCY VACANT SF RATE RATE
TOTAL VACANT SF
VACANCY RATE CURRENT QUARTER
VACANCY NET RATE ABSORPTION PRIOR CURRENT QUARTER QTR SF
NET WEIGHTED COMPLETIONS UNDER PLANNED ABSORPTION COMPLETIONS AVG ASKING CURRENT CONSTRUCTION CONSTRUCTION YTD YTD SF RENTAL QTR SF SF SF SF RATE
AIRPORT SUBMARKET WH LD LI INC FLX Total
80 69 203 89 65 506
5,252,458 3,164,029 2,924,197 1,657,414 1,308,236 14,306,334
429,845 413,150 340,469 317,798 404,543 1,905,805
8.2% 13.1% 11.6% 19.2% 30.9% 13.3%
44,588 14,000 44,300 3,408 24,422 130,718
0.8% 0.4% 1.5% 0.2% 1.9% 0.9%
474,433 427,150 384,769 321,206 428,965 2,036,523
9.0% 13.5% 13.2% 19.4% 32.8% 14.2%
9.1% 19.5% 13.2% 22.4% 32.4% 15.9%
4,500 183,189 4,021 43,923 2,521 238,154
(25,524) 149,517 72,662 40,288 63,525 300,468
-
-
193,000 193,000
-
$0.62 $0.57 $0.78 $0.73 $0.83 $0.70
18,280 35,571 116,553 73,501 97,110 341,015
1.9% 7.3% 7.5% 26.1% 41.6% 9.7%
11,494 11,494
0.0% 0.0% 0.7% 0.0% 0.0% 0.3%
18,280 35,571 128,047 73,501 97,110 352,509
1.9% 7.3% 8.3% 26.1% 41.6% 10.0%
1.9% 11.7% 9.0% 26.9% 41.6% 11.0%
21,440 10,920 2,181 34,541
31,912 16,849 11,322 782 60,865
-
-
-
-
$0.31 $0.65 $0.38 $0.49 $0.62 $0.50
113,010 140,177 291,416 78,067 272,003 894,673
1.7% 9.0% 8.7% 16.4% 20.2% 6.7%
-
0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
113,010 140,177 291,416 78,067 272,003 894,673
1.7% 9.0% 8.7% 16.4% 20.2% 6.7%
3.0% 14.0% 10.7% 20.0% 21.6% 8.7%
89,140 77,528 70,134 17,422 18,897 273,121
390,944 103,781 193,574 30,891 6,385 725,575
-
280,000 71,514 351,514
-
-
$0.41 $0.47 $0.45 $0.46 $0.83 $0.56
1,393,893 885,872 938,785 97,184 211,964 3,527,698
7.0% 17.5% 10.8% 15.3% 27.3% 10.0%
0 7,022 0 3,200 0 10,222
0.0% 0.1% 0.0% 0.5% 0.0% 0.0%
1,393,893 892,894 938,785 100,384 211,964 3,537,920
7.0% 17.7% 10.8% 15.9% 27.3% 10.0%
8.8% 19.8% 10.4% 10.6% 27.7% 11.3%
509,643 106,467 4,597 (33,536) 3,045 590,216
503,890 61,709 (94,648) (29,939) 24,772 465,784
180,000 39,490 219,490
245,628 39,490 285,118
-
917,659 917,659
$0.33 $0.34 $0.37 $0.49 $0.65 $0.37
17,213 43,973 15,204 234,762 311,152
0.0% 34.4% 12.2% 15.3% 31.7% 21.1%
-
0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
17,213 43,973 15,204 234,762 311,152
0.0% 34.4% 12.2% 15.3% 31.7% 21.1%
0.0% 34.4% 13.4% 10.2% 31.5% 20.9%
4,232 (5,075) (1,902) (2,745)
5,118 (5,075) (2,964) (2,921)
-
-
-
-
$$0.72 $0.40 $0.65 $1.00 $0.88
1,366,288 798,447 902,963 235,974 261,801 3,565,473
10.3% 11.2% 9.6% 9.5% 15.9% 10.5%
75,000 15,429 24,472 3,900 4,451 123,252
0.6% 0.2% 0.3% 0.2% 0.3% 0.4%
1,441,288 813,876 927,435 239,874 266,252 3,688,725
10.9% 11.4% 9.9% 9.7% 16.1% 10.9%
13.2% 13.0% 9.6% 10.6% 15.4% 12.1%
138,877 108,434 (30,091) 16,488 (18,644) 215,064
109,301 157,726 62,462 75,376 (27,623) 377,242
-
-
51,502 51,502
45,500 45,500
$0.49 $0.51 $0.59 $0.60 $0.90 $0.56
2,222,609 684,757 7,213,854 2,550,564 171,607 12,843,391
109,457 162,580 544,190 230,121 9,503 1,055,851
4.9% 23.7% 7.5% 9.0% 5.5% 8.2%
6,104 5,572 11,676
0.0% 0.0% 0.1% 0.0% 3.2% 0.1%
109,457 162,580 550,294 230,121 15,075 1,067,527
4.9% 23.7% 7.6% 9.0% 8.8% 8.3%
4.9% 19.2% 8.4% 10.1% 8.6% 8.7%
(30,989) 53,453 27,515 5,249 55,228
5,000 (21,126) 34,167 69,259 18,173 105,473
-
-
-
-
$0.30 $0.48 $0.65 $0.71 $0.68 $0.60
48,636,879 18,134,795 33,506,813 8,182,764 6,231,435 114,692,686
3,430,773 2,453,010 3,178,349 1,047,849 1,491,686 11,601,667
7.1% 13.5% 9.5% 12.8% 23.9% 10.1%
119,588 36,451 86,370 10,508 34,445 287,362
0.2% 0.2% 0.3% 0.1% 0.6% 0.3%
3,550,361 2,489,461 3,264,719 1,058,357 1,526,131 11,889,029
7.3% 13.7% 9.7% 12.9% 24.5% 10.4%
8.9% 16.4% 10.0% 13.9% 24.5% 11.6%
742,160 466,069 117,266 68,918 9,166 1,403,579
983,611 483,519 290,184 192,122 83,050 2,032,486
180,000 39,490 219,490
525,628 111,004 636,632
193,000 51,502 244,502
963,159 963,159
$0.43 $0.46 $0.53 $0.64 $0.83 $0.53
EAST LAS VEGAS SUBMARKET WH LD LI INC FLX Total
24 28 129 12 10 203
982,115 486,456 1,546,941 281,755 233,692 3,530,959
HENDERSON SUBMARKET WH LD LI INC FLX Total
73 35 336 31 82 557
6,671,956 1,555,288 3,363,418 476,278 1,349,257 13,416,197
NORTH LAS VEGAS SUBMARKET WH LD LI INC FLX Total
193 182 840 36 45 1,296
20,053,707 5,057,300 8,718,906 633,221 776,801 35,239,935
NORTHWEST SUBMARKET WH LD LI INC FLX Total
5 1 24 4 56 90
224,906 50,000 360,036 99,427 740,230 1,474,599
SOUTHWEST SUBMARKET WH LD LI INC FLX Total
137 188 759 120 107 1,311
13,229,128 7,136,965 9,379,461 2,484,105 1,651,612 33,881,271
WEST CENTRAL SUBMARKET WH LD LI INC FLX Total
58 38 590 73 8 767
MARKET TOTAL WH LD LI INC FLX Total
570 541 2,881 365 373 4,730
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Market Comparables
2606 East La Madre Way SALE COMPARABLES Building Size
Land Size
Sale Price / PSF
1. 2722-2732 Abels Lane, Unit 2722 Las Vegas, NV 89115
17,740 SF
43,560 SF
$402,000 $45.32
04/22/2013
2. 3537 N. Bruce Street North Las Vegas, NV 89030
6,328 SF
179,032 SF
$640,000 $101.14
01/02/2013
3. 2980 Marion Drive Las Vegas, NV 89115
8,094 SF
93,218 SF
$780,355 $96.77
12/21/2012
4. 3505 E. Charleston Boulevard Las Vegas, NV 89146
9,211 SF
54,014 SF
$400,000 $43.43
10/22/2012
Property
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uSER SALE/ INVESTMENT
Sale Date
Market Comparables
2606 East La Madre Way SALE COMPARABLES Map
Property
2
1. 2722-2732 Abels Lane, Unit 2722 Las Vegas, NV 89115
3 1
2. 3537 N. Bruce Street North Las Vegas, NV 89030 3. 2980 Marion Drive Las Vegas, NV 89115 4. 3505 E. Charleston Boulevard Las Vegas, NV 89146
4
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Tenant summary
2606 East La Madre Way
The Company Founded in 1978, Trench Plate® Rental Co (“TPRC”) is one of the largest providers of government mandated trench safety equipment in the Western United States with 11 fully-equipped branches in Southern California (5), Northern California (3), and one each in Las Vegas and Reno, NV and Houston, TX. The Company also provides traffic control equipment and services through its separate TPR-Traffic Solutions® (“TPR-TS”) division with branches in City of Commerce, CA, Fontana, CA, and San Leandro, CA as well as through seven TPRC branches. The Company leases its equipment on a short-term basis, with most leases approximating 7-60 days. Customers sign a formal lease agreement and pay for the equipment based on a 28 day billing cycle. TPRC also supports major excavation projects, large-scale pipeline upgrade and repair projects, and underground fiber optic cable installation and repair projects which usually take 180-365 days or longer to complete. The need for trench safety is mandated by both federal and state OSHA. Traffic control devices fall under the various regulatory agencies including federal, state, county, and local governmental units. The fixed costs to companies of owning and managing their own fleet of steel plates and trench boxes, underground shoring systems, H-pile, slide rail systems and traffic control devices is significant. Renting TPRC’s equipment is a more cost-effective solution for almost all governmental construction entities, private underground construction companies, public utilities, and industrial companies. TPRC is an innovator in the trench safety equipment industry that continually develops new products to service existing clients’ needs and to initiate new demand from potential clients. The Company’s product line is extensive including trench safety equipment such as Trench Plates®, temporary hydraulic shoring (Quik-Shor®), steel trench shields, manhole boxes, aluminum trench boxes (Quik-Boxes®), rock plates, slide rail systems, H-pile and wide flange beams, traffic control devices, K-rail, as well as providing specialized training for the contractors including: Competent Person Training; Trench Rescue Training; and Flagger Training. The Company serves a variety of end-users of underground infrastructure maintenance and upgrade projects, as well as new infrastructure construction. These end-users may include state, county and municipal government entities, public gas and electric power utilities, water utilities, waste treatment facilities, telecommunication companies, petro-chemical facilities, oil refineries, oil and gas pipeline companies, and residential and commercial property development.
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EXCLUSIVE ADVISOR: C. Whit gilfillan Senior Associate License No. 01841852 909.937.6311 [email protected]
LOCAL MARKET CONTACT: COLLIERS INTERNATIONAL 2855 E. Guasti road, suite 401 ontario, ca 91761 www.colliers.com
Eric molfetta Senior Associate NV License No. 71101 702.836.3756 [email protected]
