Home Depot Henderson, NV - Offering Memorandum - Marcus & Millichap
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Offering Memorandum Home Depot Henderson, NV
CONFIDENTIALITY AND DISCLAIMER
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party
receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap.
This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary
level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap
has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future
projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating
substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial
condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information
contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not
verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty
or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to
verify all of the information set forth herein.
NON-ENDORSEMENT NOTICE
Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee
identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or
endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included
for the purpose of providing tenant lessee information about this listing to prospective customers.
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence
of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus &
Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of
providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR
MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
exclusively listed
Exclusively listed by: Nevada Broker of Record:
Perry White
LAS VEGAS
Tel: (702) 215-7100
Fax: (702) 215-7110
License: NV B.0034578.CORP
OFFICES THROUGHOUT THE U.S. AND CANADA
www.marcusmillichap.com
Home Depot
Table of Contents
EXECUTIVE SUMMARY COMPETITIVE PROPERTY SET
Offering Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Sales Comparables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-23
Investment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Union Village . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 MARKET OVERVIEW
Market Aerial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Location Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Summary of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Las Vegas MSA Market Overview . . . . . . . . . . . . . . . . . . . . . . . 27-33
Las Vegas Retail Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34-38
PROPERTY DESCRIPTION Demographic Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40-41
Regional Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Local Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Site Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Aerial Photograph . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Parcel Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
FINANCIAL ANALYSIS
Schedule of Prospective Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . 16
Tenant Overview and Lease Abstract . . . . . . . . . . . . . . . . . . . . . . . . 17
summary
EXECUTIVE SUMMARY
E X E CUTI VE SUM M A RY Home Depot
Offering Highlights
EXECUTIVE
SUMMARY
HOME DEPOT
1030 West Sunset Road
Henderson, NV 89014
OFFERING SUMMARY
Offering Price $24,348,000
Cap Rate 5.75%
DESCRIPTION
Gross Leasable Area (GLA) 102,370 SF
PROPERTY
Price/SF (GLA) $237.84
Year Built/Renovated 1992/2007
Lot Size 9.071 +/- Acres
LEASE SUMMARY
Lease Type Triple Net (NNN)
Roof Membrane Tenant Responsible • Approved
FINANCIAL
ANALYSIS
Future Pad
Structure Landlord Responsible Location
Lease Guarantor Corporate Guarantee
Original Lease Term 20 Years - December 1991
Current Lease Term New 15 Years
ANNUALIZED OPERATING DATA
Rent Commencement Date 02/01/2013
Rent Increases Annual Rent Monthly Rent
COMPARABLES
Lease Expiration Date 01/31/2028
Current Lease Term $1,074,885 $89,573.75
Remaining Lease Term 12.2 Years
2018-2028 $1,400,000 $116,666.67
Options Three, Five-Year Options
2/21/2028 - Option 1 $1,540,000 $128,333.33
2/21/2033 - Option 2 $1,694,000 $141,116.66
2/21/2038 - Option 3 $1,863,400 $155,283.33
Net Operting Income $1,400,000
LEASE SUMMARY
Original Lease term was 20 years, having commenced Total Return 5.00% / $1,400,000
OVERVIEW
MARKET
in December 1991. The lease was extended five years
*The difference between current base rent and February 1, 2018 will be credited to the purchase price at COE.
in February 2013 in the Fourth Amendment. The Fifth
Amendment to Lease extended the firm term of the lease Tenant installed new roof approximately 5 years ago at Tenant’s expense.
through January 31, 2028. Home Depot has three 5-year
Option Rents Capped at 10% CPI for purpose of this analysis. Actual escalation may vary.
options.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
2 approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535
E X E CUTI VE SUM M A RY Home Depot
Investment Overview
EXECUTIVE
SUMMARY
Marcus & Millichap has been selected to exclusively market for sale a Home Depot location
in the heart of the largest retail district in the southeast quadrant of the Las Vegas Valley.
Located at the intersection of Interstate 515 and West Sunset Road, Home Depot is the
anchor to Sunset Plaza, a 265,000-square-foot retail center, the balance of which is owned
by Sun Life Insurance Company. The site consists of 9.071 acres and has frontage adjacent to
unimpeded visibility on I95/515 and is perpendicular to West Sunset Road and fronts Marks
Road with a combined traffic count of 164,000 vehicles per day. The building is Type VN
DESCRIPTION
PROPERTY
fire sprinklered with a Group B, Division 2 occupancy. Foundations under the columns are
reinforced concrete spread footings. The block masonry walls are supported on reinforced
concrete continuious footings. The floor at the interior of the building is a 5” thick concrete
grade slab reinforced with wire mesh. The overall height from finished floor to top of wall is
about 30’. The 16,500 SF exterior garden center is covered with a screened roof. The building
depth is approximately 250’.
The region is home to over 4.1 million square feet of retail space, including the 1.2 million-
FINANCIAL
ANALYSIS
square-foot Galleria at Sunset enclosed mall, which is anchored by Dillard’s, JC Penney,
Macy’s, Dick’s Sporting Goods and Kohl’s, along with 133 other retailers.
The property is also directly across from Eastgate Power Center, a 346,000-square-foot center
anchored by a Walmart Supercenter, Office Depot, Party City, Lowe’s and 99 Cents Only
Store. Other retailers in the immediate area include Costco, Best Buy, Petco, Target, Bed, Bath
& Beyond, Ross, CVS, Sears, OfficeMax, TJ Maxx, Sports Authority, Toys“R”Us, and many
more.
COMPARABLES
On the opposite corner of the intersection, covering 98 acres is the 448-room Sunset Station Investment Highlights
Hotel & Casino. It offers a 13-screen movie theater, 542-seat bingo hall, and Las Vegas’s largest
bowling alley with 72 lanes and open 24 hours per day. The resort also offers nine restaurants
■■ Firm lease term through January 31, 2028
and a 5,000-square-foot amphitheater, and draws both locals and tourists to the region. ■■ Home Depot is well seasoned at this location having occupied the
building since 1992 when it was built, demonstrating longevity and
This densely populated area is home to more than 266,000 residents within a five-mile radius,
commitment to this location and region
a figure that is projected to grow by more than 11 percent within the next four years. Ideally
situated at the southern rim of the Las Vegas Valley, the City of Henderson is just minutes ■■ Home Depot installed a new roof at Home Depot’s expense, further
demonstrating Home Depot’s commitment to the property.
OVERVIEW
from the glitter of the Strip and a few miles from the serenity of Mount Charleston. With the
MARKET
state of Nevada’s “no corporate tax” and “no personal income tax,” major corporations such ■■ Located in the Heart of Southeast Las Vegas Valley’s Retail Hub
as Levi Strauss & Company, Ocean Spray, Ford Motor Credit, Toyota Financial Service and
many others are finding Henderson a great place to do business.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 3
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535
E X E CUTI VE SUM M A RY Home Depot
Union Village
EXECUTIVE
SUMMARY
Union Village, located at the northeast corner of US 93/95 and Galleria Drive, in Henderson, Nevada, will be the first integrated health village
and master planned community in the world. It has been noted as being the largest healthcare building project in the United States by Health
Facilities Management. A 170 acre project will include UnionCentre, featuring a four-hospital medical complex with a 90,000 square foot ath-
letic facility and a 350-unit townhome development catering to seniors and a growing retirement community offering a state of the art hospital and several healthcare facilities
situated as the hub to the community; UnionPlaza, a specialty retail center with medical offices, residential apartments, entertainment and a mid-range all-suite hotel; and
UnionPlace, home to a vibrant independent Senior living village with golf course and activities centers; and UnionSquare, serving as the village’s cultural center complete with a
space and science center and a possible performing arts center including an IMAX theatre. having broken ground in 2014 and whose first phase of the hospital expecting com-
pletion towards the end of 2016, at an estimated cost of $1.2(Bil) initial investment, the Village is projected to be an integrated health village with state of the art technology
DESCRIPTION
and environmental sustainability featuring a world class healthcare center integrated into retail, entertainment and cultural centers as well as smart senior and residential com-
PROPERTY
munities which is projected to produce 17,000 jobs (including initial construction) and a dynamic economic engine generating nearly $1.7(Bil) in tax revenues over 25 years.
Henderson Hospital of Union Village will be a 142 bed facility featuring emergency services, intensive care units, in patient and out patient services, women and children
services and cardiology. It is anticipated that the hospital will tap into the surrounding universities, medical and nursing schools and become a foremost teaching hospital in
the State.
TOWNHOME SENIOR
RESIDEN- RESIDEN-
FINANCIAL
TIAL TIAL
ANALYSIS
RETAIL ANCHOR
WELLNESS &
SENIOR SNF
HOTEL, RETIAL &
HOUSING LTACH
ENTERTAINMENT
UHS
HIGH-RISE HOSPITAL
COMPARABLES
RESIDENTIAL
OFFICE
UnionCentre – a State-of-the-Art and World-Class Healthcare Center comprised, in its UnionPlace – UnionPlace is a Wellness Retirement Village of the future for up to 1,500
initial phase, a full continuum of care including an Acute Care Hospital, an Ambulatory vibrant seniors, as well as those with special service needs for assisted living and memory
Care Center, a Long Term Acute Care Hospital, a Skilled Nursing Facility, Medical Of- care. Included in UnionPlace will be every resource to remain “connected” to families
fice Buildings and a Wellness Center to serve the people of South Nevada as a regional, and healthcare professionals and to continue an unequaled quality of life and personal
national and international center of excellence for decades. The first phase is anticipated growth: video conferencing; virtual university and learning center; virtual competition
to be 450,000 Square Feet and would include 307 beds. in golf, bowling, tennis and other activities; virtual travel throughout the world; and, a
OVERVIEW
MARKET
virtual Center for Arts & Entertainment.
UnionPlaza – Approximately 300,000 square feet of specialty retail and a mid-range UnionSquare– The Village will be a series of thematic walks and pedestrian pathways
all-suite Hotel and Conference Center artfully integrated into the village lifestyle (res- and parks for a cultural center for the Henderson Space and Science Center, a possible
taurants, multi-screen theater, athletic club, food court, inter-generational child devel- Performing Arts Center and future medical education facilities and research centers.
opment center, specialty retail and offices).
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
4 approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535Future Development
BURGER
E X E CUTI VE SUM M A RY Home Depot
Summary of Terms
EXECUTIVE
SUMMARY
Interest Offered
Fee interest in Home Depot, a 102,370-square foot single tenant property sitting on 9.07 acres located at 1030 West Sunset Road, Henderson, NV 89014.
Terms of the Sale
Home Depot is offered at $24,348,000 based on a capitalization rate of 5.75% on future rents.
DESCRIPTION
PROPERTY
FINANCIAL
ANALYSIS
COMPARABLES
OVERVIEW
MARKET
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 7
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535McCarran International Airport
THE WORLD FAMOUS LAS VEGAS STRIP
95
95description
PROPERTY DESCRIPTIONP R OP ERTY DESCR IP TION Home Depot
Regional Map
Las Vegas Beltway (complete by end of 2001)
ro ad
15
ail
cR
cifi
EXECUTIVE
SUMMARY
Pa
)
001
Ann Rd
i on
2 48
Un
m plet e a f t e r
Nellis Air Force Base
Jones Blvd
Allen Ln
Las
Veg
r te
as W
Bus Station
No
Lone Mountain Rd l
ash
A
ino
y (c o
Durango Dr
Cam
a
Craig Rd
eltw
Craig Rd
as B
Alexander Rd
V eg
d
Martin L King Blvd
Blv
Decatur Blvd
Simmons St
g as
L as
Ve
Community College Las
Tenaya Way
Of Southern Nevada
Ra
nc
ho
Dr
Cheyenne Ave 574 Cheyenne Ave
Sun City Blvd
Rampart Blvd
Del Webb Blvd
95 N. Las Vegas
Nellis Blvd
Lamb Blvd
Pecos Rd
d
Airport
e eR
DESCRIPTION
Los
Lak
Carey Ave eM
Las Vegas Belt way
Smoke Ranch Rd ead
PROPERTY
Carey Ave
NORTH LAS VEGAS 147 Blv
d
Decatur Blvd
Hillpointe Rd
Coran Ln Lake Mead Blvd Lake Mead Blvd
Lake Mead Blvd
Statz St
i Dr
Vegas Dr Owens Ave
Cimarron Rd
Anasaz
Vegas Dr Owens Ave
Jones Blvd
Buffalo Dr
( co m
Eastern Ave
St
Dr
Bruce St
Main
ter
en Washington Ave Washington Ave
plete
nC
Rampart Blvd
w Summerlin Pkwy
To Bonanza Rd
Linn Ln
95
in 2001)
Hollywood Blvd
Westcliff Dr Bonanza Rd
Durango Dr
Rancho Dr
Lamb Blvd
Alta Dr
y
Pkw
Bruce St
Fre
St
m
land
ont
Main
St
St
9th
Mary
d
Mojave Rd
Charleston Blvd Charleston Blvd
s Blv
LAS VEGAS Veg
a
Rd
Sloan Ln
Oakey Blvd
Jones Blvd
Las
e
Buffalo Dr
L a s V e ga s B
ach
Rd
Stratosphere Saint Louis Ave shore
Fort Ap
North
Hualpai Way
589 Sahara Ave Sahara Ave
Mcleod Dr
Palace Sahara
FINANCIAL
Lake North Dr Station
Valley View Blvd
ANALYSIS
Wet 'N Wild LAS VEGAS STRIP
Circus Circus
elt w a
Sahara Riviera
Decatur Blvd
Westward Ho
Lake Las Vegas Hilton
Nellis Blvd
Lake South Dr
Rainbow Blvd
15
y (co
La Concha
dS
Tenaya Way
Stardust Royal
s Blv
Desert Inn Rd Desert Inn Desert Inn Rd
mp
a
Las Vegas
Veg
te Spring Mountain Rd New Frontier Convention
le
Paradise Rd
by Boulevard Mall
Maryland Pkwy
Center
Las
Venetian
e nd Treasure Island
Sandhill Rd
of 2000 The Mirage Casino Royale
go W
ash
) in
Bo
Harrahs Flam
uld
Caesars Imperial Palace
er
Palace
Maxim
Hw
Durango Dr
Flamingo Rd Flamingo Rd
La
y
Ballys
ke
Bellagio Days Inn
sh
Paris Town Hall Sams Town Hotel Gambling Hall
ore
Jockey
University Of Nevada
95
Rd
Club
Pecos Rd
Aladdin
Mountain Vista St
-Las Vegas
Holiday Inn Boardwalk Hard Rock
Koval Ln
Monte Carlo Hotel
La Quinta Strip MGM
Grand Lake Mead
593 Tropicana Ave King 8 Hotel & San Remo Liberace
Tropicana Ave
Gambling Hall Luxor Tropicana Museum
SPRING VALLEY 564
Eastern Ave
PARADISE
Mcleod Dr
ash
Mandalay Bay gas W
Las Ve
Mc Carran
Int'l Airport
COMPARABLES
Russell Rd
Dr
LAKE MEAD NAT'L
Mountain Vista St
ead
Whitney
215 Patrick Ln Lak
eM
RECREATION AREA
Bo
r
ria D
uld
Ranch Dr
er
pt Rd
Galle
Hw
Sunset Rd Sunset Rd Athens Ave
y
ran A
Galleria/Sunset Mall Sunset Rd
Mccar
Las Vegas Beltway
Pecos Rd
Sunset Rd
HENDERSON
Paradise Rd
Pabco Rd
Warm Springs Rd Warm Springs Rd
Home Depot
Green Valley Pkwy
Robindale Rd
Center St
Robindale Rd Warm Springs Rd
Valle Verde Dr
Decatur Blvd
Stephanie St
e
Gibson Rd
r Av
Windmill Ln Windmill Pkwy
Majo
Pueblo Blvd
Pioneer St
Dr
Wigwam Pkwy Lake Mead
Wa
d
Van
215
ter
ilroa
Wag
000)
St
2
by end of
e nen
plete
c Ra
St
way (com
Magic Way
Las Vegas Belt
Sa
us
Pacifi
ali
Industrial Rd
to
D r
Pacific Ave
n
OVERVIEW
y
Unio
Un
w
Pk
MARKET
ion
r ge
dD Rid Horizon Dr Equestrian Dr
Pa
ea n
Bo
izo
c
uld
M r
ific
ke Ho
er
La Community College
Ra
Hw
College Dr
Foothills Dr
Of Southern Nevada
ilro
y
ad
15 95
wy
aH
vad
Ne
Bo
146
uld
er
Hw
y
Las Vegas
Henderson
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footageAdam
Sky Harbor ors Blvd
age are
10 Airport
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not93 represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535P R OP ERTY DESCR IP TION Home Depot
Local Map
EXECUTIVE
SUMMARY
W
Stu
Ga
N Stephanie St
ller
ffl
Whitney R d
eb
ia Dr
on
ea
Ranch bs
Gi
m
N
Av
Galleria
e
DESCRIPTION
Dr
PROPERTY
Galleria Dr
h Dr
95
Ranc
Home Depot
Marks St
tney
Galleria at
Rd
Eastgate Rd
Whi
Sunset t
i ot
Ell
FINANCIAL
ANALYSIS
W Sunset Rd W Sunset Rd
Subject Property
Sunset
Parkson Rd
COMPARABLES
Station Cape Horn Dr
Green Valley
Vet
High School
e ran
W Warm Springs Rd W Warm Springs Rd
sM
em
Eastgate Rd
N Gibson Rd
OVERVIEW
oria
MARKET
Warm Springs
N Stephanie St
Com
Promenade
l Hw
me
Kelso Dunes Ave y
rcia
95
l
Marks St
Wa
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
11
y
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535P R OP ERTY DESCR IP TION Home Depot
Site Plan
EXECUTIVE
SUMMARY
95
W Sunset Road
y
ria l Hw
mo
s Me
e ran
Vet
DESCRIPTION
PROPERTY
95
MATTRESS
OUTLET
FINANCIAL
DOLLAR
ANALYSIS
LOAN
SPRINT
STORE
FURNITURE
BIG’S
COMPARABLES
SUPERCUTS
W Sunset Road
SANDWICH SHOP
CAPRIOTTI’S
6,880 SF
DEVELOPABLE
SUPER
PAWN
PAD
OVERVIEW
MARKET
Marks Street Marks Street
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
12 approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535P R OP ERTY DESCR IP TION Home Depot
Aerial Photo
EXECUTIVE
SUMMARY
DESCRIPTION
PROPERTY
FINANCIAL
ANALYSIS
COMPARABLES
6,880 SF
DEVELOPABLE
PAD
OVERVIEW
MARKET
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 13
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535P R OP ERTY DESCR IP TION Home Depot
Parcel Map
EXECUTIVE
SUMMARY
DESCRIPTION
PROPERTY
FINANCIAL
ANALYSIS
COMPARABLES
OVERVIEW
MARKET
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
14 approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535analysis F I N A N C I A L A N A LY S I S
F INAN CI AL A NA LY SIS Home Depot
Tenant Overview
EXECUTIVE
SUMMARY
Property Name Home Depot Founded in 1978, The Home Depot is the world’s
largest home improvement specialty retailer, with
Property Address 1030 West Sunset Road,
more than 2,200 retail stores in 50 states, the
Henderson, NV 89014
District of Columbia, Puerto Rico, U.S. Virgin
Property Type Net Leased Islands, Guam, 10 Canadian provinces and Mexico.
Total Net Rentable Area 102,370 The company helped create the “do-it-yourself ”
Tenant Trade Name Home Depot concept, spawning an entire industry that now
spans the globe. Store inventories include up to
DESCRIPTION
Ownership Public
PROPERTY
40,000 different kinds of building materials, home
Tenant Corporate Store improvement supplies, appliances and lawn and garden products. Selections may
Sales Volume 2015 $83.18(BIL) vary from store to store because The Home Depot stores are always stocked with
merchandise that is localized to match each area’s specific market needs. Stores
Lease Guarantor Corporate
average 105,000 square feet, with approximately 23,000 additional square feet of
Stock Symbol HD outside garden area.
Original Lease Commencement Date 12/01/1991
The Home Depot had sales of $83.2 billion and earnings of $6.3 billion. The
Current Lease Extension Start Date 02/01/2013
Company employs more than 300,000 associates. The Home Depot’s stock is
FINANCIAL
ANALYSIS
Rent Commencement Date 02/01/2013 traded on the New York Stock Exchange (NYSE: HD) and is included in the
Lease Expiration Date 01/31/2028 Dow Jones industrial average and Standard & Poor’s 500 index.
Term Remaining on Lease 12.2 Years
Lease Type Triple Net (NNN)
Roof Tenant Responsible for Roof Membrane
Structure Landlord Responsible
Lease Term New 15 Years
COMPARABLES
Year 1 Net Operating Income* $1,400,000
Increases During Options CPI CAP’D @ 10%
Options to Renew Three, Five-Year Options Remain
Options to Purchase 30 Day ROFO
First Right of Refusal 15 Day ROFR
No. of Locations 2,265 +/-
Headquartered Atlanta, GA
OVERVIEW
MARKET
Website www.homedepot.com
Corporate Profile
Years in the Business 37 Years
*Future Rent
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 16
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535competitive
COMPETITIVE PROPERTY SETC O MPE TI TI V E P R OP ERTY SET Home Depot
Recent Sales Map
EXECUTIVE
SUMMARY
Forks Oroville
Everett
Bellevue
Shelton Seattle
Spokane
Olympia
Tacoma Kalispell
Shelby
Havre
Ellensburg Houlton
Astoria Coeur
d' Alene Rolla
Kelso Ritzville Malta
Yakima
Minot International
Pasco Great Falls Jackman
Williston Falls
Walla Walla Missoula
Lewiston Grand Forks
Portland Helena
Virginia Bangor
Pendleton Glendive Bemidji
Salem Carrington Grand Rapids
Grangeville Belfield
Bismark Jamestown Duluth Augusta
DESCRIPTION
Madras Butte Miles City St
Roundup Johnsbury
Fargo Detroit Lakes Portland
PROPERTY
Marquette Plattsburgh
Eugene Bend John Day Bozeman Billings Bowman
Wentworth
Forsyth Fergus Falls Burlington Montpelier
Hardin Ellendale Eagle River
Petoskey
Challis Watertown Rutland Lebanon
Riley Weiser Buffalo St Cloud Cameron Laona
Alzada Aberdeen Alpena Concord
Grants Pass
Klamath Falls
Bums
Boise Humphrey
Arco
Greybull
Sheridan
Buffalo Gillette
Dupree Gettysburg
Watertown Minneapolis
St Paul
Bloomington
Eau Claire Stevens
Point Green
Traverse
City
Cadillac
West
Branch
Utica
Albany
3
Springfield Boston
Bay Rochester Syracuse Worcester
Crescent City Lakeview
Junction
Carey Moorcroft Rapid City Lake Benton Mount
Idaho Pierre
Falls Hoback Junction Mankato Pleasant Buffalo
Eureka Weed Murdo Rochester Milwaukee Saginaw Binghamton Hartford
Pocatello Hot Springs Mitchell Jackson La Crosse Waterbury
Alturas Twin Falls
Rupert Grand Flint Elmira
New
Winner
Pinedale Riverton Casper Martin Sioux Falls Mason City Madison Rapids Scranton York
Lansing Warren
Douglas Holland
Redding Chadron Spencer Detroit Erie Warren
Winnemucca Dubuque Williamsport Newark
Susanville Kemmerer Fort Waterloo Kalamazoo Meadville
Wells Logan O'Neill Sioux City Dodge Rockford Benton Harbor Allentown
Rawlins Wheatland Cedar
Thedford Carroll Chicago Cleveland
Wendover Green River
Northfork
Rapids South Toledo Trenton
Reno Des Moines Joliet
Gary
Bend
Findlay Akron Harrisburg Philadelphia
Ansley Fort
Santa Rosa Fallon Salt Lake City Laramie Cheyenne Davenport La Salle Canton Pittsburgh Atlantic
Heber City Sidney Wayne Mansfield City
North Platte Omaha Lima Cumberland
2
Napa Carson Provo Ogallala Osceola Ottumwa
Sacramento Lincoln Peoria
Kokomo
4
City Craig Sterling Burlington Wheeling Baltimore
Duchesne Bloomington
Hawthorne
Lafayette
Dayton Columbus
Oakland Ely Delta Hastings
SF Price Boulder
61
McCook Clarksburg
Vail Bethany Indianapolis Springfield
Parkersburg
DC
FINANCIAL
Green Denver St
Springfield
ANALYSIS
Tonopah Salina Macon
San Jose River Smith Center Joseph
Mattoon Cincinnati Fredericksburg
Grand Junction Aurora Limon Colby
Independence
Seymour Charleston Staunton
Fresno Columbia
Monterey Cedar City Montrose
Colorado Hays Topeka Kansas Vincennes Huntington Richmond
Salida
Springs City Kansas
Lawrence City Jefferson St Louis Mt Vernon Evansville
Frankfort
Beckley
Louisville Lynchburg Norfolk
Monticello
Garden City Lexington
City Hutchinson Emporia Roanoke
Paso Robles Page Cortez Monte Vista Lamar Carbondale Owensboro
Durango Nevada Rolla
San Luis Obispo Bakersfield
Las Vegas Fredonia
Walsenburg Somerset
Martinsville
Dodge City Corbin Danville
Kayenta Trinidad Wichita Durham
Bowling Green
Joplin Kingsport Winston- Raleigh
Tuba City
Taos Raton Boise City Springfield West Plains
Salem Greensboro
Santa Barbara
Ventura Barstow Guymon Clarksville Cookville
Kingman
5
Oxnard
Springer Enid Ponca City Nashville Knoxville Fayetteville
Needles Asheville Charlotte
Subject Property
Ash Fork Flagstaff Gallup Dalhart Stillwater Tulsa
Harrison
Riverside Santa Fe Dyersburg Murfreesboro
LA Holbrook Fayetteville Jonesboro Wilmington
Anaheim Prescott Sedona Edmond Muskogee Jackson Chattanooga Greenville
Palm Springs
Albuquerque Tucumcari Amarillo Memphis Dalton
Wickenburg Oklahoma City Fort
Smith North Huntsville Myrtle
St John's Santa Rosa Shamrock Greenwood
Conway Little Rock Columbia Beach
Blythe Decatur
Vaughn Gainesville
San Diego Phoenix Springerville
Lawton Little Rock Gadsden Athens Orangeburg
Socorro Clovis Hot Tupelo
Yuma Mesa Globe Ardmore Atoka Springs Pine Bluff Anniston
Atlanta Augusta
COMPARABLES
Charleston
Casa Roswell Lubbock Guthrie Greenwood Birmingham
Grande Safford Tuscaloosa Macon
Alamogordo Texarkana El Dorado Opelika
Lordsburg Artesia
Tucson Columbus Savannah
Benson Deming
Ft. Worth Dallas
Recent Sales
Lamesa Minden
Las Cruces
Carlsbad Abilene Longview
Monroe Meridian Montgomery
Nogales Arlington Shreveport Jackson
Cordele
Big Spring Grove Brunswick
El Paso Hill Albany
Waycross
Odessa
Ciudad Dothan
Juarez Pecos Hattiesburg Evergreen
San Angelo Nacogdoches
Subject Property Van Horn Natchez
Waco
Alexandria Mobile Pensacola Jacksonville
Tallahassee
Fort Stockton Baton Biloxi
Rouge Gainesville
Junction Huntsville
Austin
1 Home Depot - San Jose CA Beaumont
Lafayette
New Orleans Ocala
Daytona
Beach
Houston Orlando
San Antonio
Tampa
2 Home Depot - Lincoln NE
Galveston Melbourne
Victoria
George West Palm
West Fort Beach
Myers
3 Home Depot - Watertown MA
Fort
Corpus Christi Lauderdale
Naples Miami
OVERVIEW
MARKET
4 Orchard Supply Hardware - San Leandro McAllen
5 Orchard Supply Hardware - Van Nuys
6 Lowe’s - San Bruno CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
19 approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535C O MPE TI TI V E P R OP ERTY SET Home Depot
Recent Sales
EXECUTIVE
SUMMARY
Subject Property | 1030 West Sunset Road, Henderson, NV 89014
Offering Price: $26,170,000
Percent Down: 100%
Cap Rate: 5.75%
Price/SF: $255.64
Gross Leasable Area (GLA): 102,370
DESCRIPTION
PROPERTY
Year Built/Renovated: 1992/2007
1 Home Depot - San Jose | 635 West Capitol Expressway, San Jose, CA 95136
Close of Escrow: 3/27/2014
FINANCIAL
Sales Price: $15,575,000
ANALYSIS
Percent Down: 100%
Cap Rate: 3.97%
Price/SF: $127.00
Gross Leasable Area (GLA): 122,265
Year Built: 1997
COMPARABLES
2 Home Depot - Lincoln | 3300 North 27th Street, Lincoln, NE 68521
Close of Escrow: On Market
Sales Price: $17,468,000
Percent Down: 100%
Cap Rate: 4.75%
Price/SF: $90.54
OVERVIEW
MARKET
Gross Leasable Area (GLA): 192,929
Year Built: 1994/2003
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 20
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535C O MPE TI TI V E P R OP ERTY SET Home Depot
Recent Sales
EXECUTIVE
SUMMARY
3 Home Depot - Watertown | 615 Arsenal Street, Watertown, MA 02472
Close of Escrow: 08/21/2015
Sales Price: $ 80,000,000
Percent Down: 100%
Cap Rate: 5.00%
Price/SF: $632.61
DESCRIPTION
PROPERTY
Gross Leasable Area (GLA): 126,460
Year Built/Renovated: 2002
4 Orchard Supply Hardware - San Leandro | 300 Floresta Boulevard, San Leandro, CA 94578
Close of Escrow: 10/01/2014
FINANCIAL
ANALYSIS
Sales Price: $12,750,000
Percent Down: 100%
Cap Rate: 5.37%
Price/SF: $94.44
Gross Leasable Area (GLA): 135,000
Year Built: 2002
COMPARABLES
5 Orchard Supply Hardware - Van Nuys | 5960 Sepulveda Boulevard, Van Nuys, CA 91411
Close of Escrow: 03/13/2015
Sales Price: $18,500,000
Percent Down: 40%
Cap Rate: 4.51%
Price/SF: $348.52
OVERVIEW
MARKET
Gross Leasable Area (GLA): 53,082
Year Built: 1988/2013
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
21 approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535C O MPE TI TI V E P R OP ERTY SET Home Depot
Recent Sales
EXECUTIVE
SUMMARY
6 Lowe’s - San Bruno | 1340 El Camino Real, San Bruno, CA 94066
Close of Escrow: 10/01/2015
Sales Price: $45,660,000
Percent Down: 100%
Cap Rate: 4.50%
Price/SF: $427.31
DESCRIPTION
PROPERTY
Gross Leasable Area (GLA): 106,854
Year Built/Renovated: 1989/2002
FINANCIAL
ANALYSIS
COMPARABLES
OVERVIEW
MARKET
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 22
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535overview MARKET OVERVIEW
M ARK ET OVER V IEW Home Depot
Location Overview
EXECUTIVE
SUMMARY
Henderson, officially the City of Henderson,
is a city in Clark County, Nevada. It is the
second largest city in Nevada, after Las Vegas,
with an estimated population of 270,811 in
2013. The city is part of the Las Vegas metro-
politan area, which spans the entire Las Vegas
Valley. Henderson occupies the southeastern
DESCRIPTION
PROPERTY
end of the valley, at an elevation of approxi-
mately 1,330 feet.
In 2011, Forbes magazine ranked Henderson as America’s second safest city.
Henderson has also been named as “One of the Best Cities to Live in Amer-
ica” by Bloomberg Businessweek. In 2014, Henderson was again ranked as
one of the Top 10 “Safest Cities in the United States” by the FBI Uniform
Crime Report.
FINANCIAL
ANALYSIS
Major employers in Henderson include the City of Henderson, St. Rose
Dominican Hospital, Green Valley Ranch, M Resort, Sunset Station, Medco
Health Solutions, and Walmart.
An increasing number of major shopping malls, movie theater complexes,
restaurants and casino resorts offer residents a variety of choices for leisure Location Highlights
time in Henderson. The city also sits a few miles southeast of Las Vegas and ■■ Henderson is the Second Largest City in Nevada
COMPARABLES
is not far from the world-famous Las Vegas Strip. “Shakespeare in the Park” ■■ Estimated Population of 270,811 in 2013
celebrated its tenth anniversary in 1996, a testament to Henderson’s long-
■■ Ranked as One of America’s Safest Cities
standing support for the arts and cultural programs. The city also boasts
the largest recreational facility in Nevada, the Multigenerational Facility at
■■ Henderson Is Strong Supporter of Arts and Cultural Programs
Liberty Pointe, as well as Nevada’s only scenic bird preserve. The city sup-
ports a variety of other cultural events as well, many of which are held at the
outdoor amphitheater, the largest one of its kind in Nevada.
OVERVIEW
MARKET
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
25 approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535M ARK ET OVER V IEW Home Depot
Las Vegas
EXECUTIVE
SUMMARY
Market Highlights
Increasing Population
■ Population growth in Las Vegas will dramatically outpace that of the
nation over the next five years.
Large Tourism Industry
DESCRIPTION
PROPERTY
■■ Approximately 39 million tourists visit Las Vegas annually, producing
gaming revenues in excess of $9 billion.
Strong Employment Growth
■■ Job creation over the next five years will occur almost twice as fast as
the national rate.
Las Vegas Beltway (complete by end of 2001)
d
roa
15
R ail
ific
FINANCIAL
c
ANALYSIS
Pa
)
001
Ann Rd
ion
2
48
Un
m plet e a f t e r
Geography
Nellis Air Force Base
Jones Blvd
Allen Ln
Las
Veg
r te
as Wa
Bus Station
No
Lone Mountain Rd A l
sh
ino
y (c o
Durango Dr
Cam
a
Craig Rd
eltw
Craig Rd
as B
Alexander Rd
The Las Vegas metro is situated at the southeastern tip of Nevada and is
V eg
d
Martin L King Blvd
Blv
Decatur Blvd
Simmons St
as
L as
Veg
Community College Las
Tenaya Way
Of Southern Nevada
Ra
nch
oD
proximate to the Hoover Dam, the Colorado River and Lake Mead. The
574
r
Cheyenne Ave Cheyenne Ave
Sun City Blvd
Rampart Blvd
Del Webb Blvd
95 N. Las Vegas
Nellis Blvd
Lamb Blvd
Pecos Rd
e Rd
Airport
Lose
Lake
city proper is largely bounded by mountains, government lands and mili-
Carey Ave Mea
Las Vegas Belt w ay
Smoke Ranch Rd Carey Ave
NORTH LAS VEGAS 147 d Bl
vd
Decatur Blvd
Hillpointe Rd
Coran Ln Lake Mead Blvd Lake Mead Blvd
Lake Mead Blvd
Statz St
tary facilities, limiting developable land.
Dr
Anasazi
Vegas Dr Owens Ave
Cimarron Rd
Vegas Dr Owens Ave
Jones Blvd
Buffalo Dr
( co m
Eastern Ave
St
Dr
Bruce St
Main
r
nte Washington Ave Washington Ave
Ce
plete
wn
Rampart Blvd
To Summerlin Pkwy Bonanza Rd
Linn Ln
95
in 2001)
Hollywood Blvd
Westcliff Dr Bonanza Rd
Durango Dr
Rancho Dr
Lamb Blvd
Alta Dr
y
Pkw
Bruce St
Frem
St
COMPARABLES
yland
ont
Main
St
St
9th
vd
Mojave Rd
Mar
Charleston Blvd Charleston Blvd
s Bl
LAS VEGAS
Vega
Rd
NEVADA
Sloan Ln
Oakey Blvd
Jones Blvd
Las
e
Buffalo Dr
L a s V e ga s B
ach
Rd
Stratosphere Saint Louis Ave shore
Fort Ap
Hualpai Way
North
589 Sahara Ave Sahara Ave
Mcleod Dr
Palace Sahara
Lake North Dr Station
Valley View Blvd
Circus Circus Wet 'N Wild LAS VEGAS STRIP
elt w a
Sahara Riviera
Decatur Blvd
Westward Ho
Lake Las Vegas Hilton
Nellis Blvd
Lake South Dr
Rainbow Blvd
15
y (co
La Concha
vd S
Tenaya Way
Stardust Royal
s Bl
Desert Inn Rd Desert Inn Desert Inn Rd
mp
Vega
Las Vegas
te Spring Mountain Rd New Frontier Convention
le
Paradise Rd
by Boulevard Mall
Maryland Pkwy
Center
Las
Venetian
e nd Treasure Island
Sandhill Rd
of 2000 The Mirage Casino Royale
ingo
Wash
)
Bo
Harrahs Flam
uld
Caesars Imperial Palace
er
Palace
Maxim
Hw
Durango Dr
Flamingo Rd Flamingo Rd
La
y
Ballys
ke
Bellagio Days Inn
sh
Paris Town Hall Sams Town Hotel Gambling Hall
ore
Jockey
Club University Of Nevada
95
Rd
Pecos Rd
Aladdin
Mountain Vista St
-Las Vegas
Holiday Inn Boardwalk Hard Rock
Koval Ln
Monte Carlo Hotel
La Quinta Strip MGM
Grand Lake Mead
593 Tropicana Ave King 8 Hotel & San Remo Liberace
Tropicana Ave
Gambling Hall Luxor Tropicana Museum
ARIZONA
SPRING VALLEY 564
Eastern Ave
PARADISE
Mcleod Dr
h
Mandalay Bay as Was
Las Veg
Mc Carran
Int'l Airport
Russell Rd
dD
r
LAKE MEAD NAT'L
Mountain Vista St
Whitney
Mea
215 Patrick Ln Lake
RECREATION AREA
Bo
ia Dr
uld
Ranc
er
Galler
Apt Rd
Hw
h Dr
Sunset Rd Sunset Rd Athens Ave
y
ran
Galleria/Sunset Mall Sunset Rd
Mccar
Las Vegas Beltway
Pecos Rd
Sunset Rd
HENDERSON
Paradise Rd
Pabco Rd
Warm Springs Rd Warm Springs Rd
Green Valley Pkwy
Robindale Rd
Center St
Robindale Rd Warm Springs Rd
Valle Verde Dr
Decatur Blvd
Stephanie St
e
Gibson Rd
r Av
Windmill Ln Windmill Pkwy
Majo
OVERVIEW
Pueblo Blvd
Pioneer St
Dr
MARKET
Wigwam Pkwy Lake Mead
Wat
d
Van
215
ilroa
er
) Wag
d of 2000
St
en
lete by en
en St
fic Ra
ay (comp
Magic Way
w
Las Vegas Belt
Sau
salit
Paci
Industrial Rd
oD
r
Hoover Dam
Pacific Ave
Union
y
Un
kw
eP
ion
Dr idg Equestrian Dr
nR Horizon Dr
Pa
ad
Bo
Me
cifi
rizo
uld
ke Ho
cR
e
La Community College
rH
College Dr
Foothills Dr
ail
Of Southern Nevada
wy
roa
d
15 95
y
Hw
ada
Nev
Bo
146
uld
er
Hw
y
Las Vegas-Henderson-Paradise Metro Las Vegas
Henderson
Sky Harbor Adams Blvd
Airport 93
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 26
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535M ARK ET OVER V IEW Home Depot
Las Vegas
EXECUTIVE
SUMMARY
Region
The Las Vegas metro is composed of Clark County and boasts a population of more than 2
million. Henderson, North Las Vegas, Spring Valley and Las Vegas were among the fastest-
growing cities in the United States over the last decade. Las Vegas is the most populated city
in the metro, with approximately 606,200 persons.
DESCRIPTION
PROPERTY
Infrastructure
Interstates 215 and 515 form a beltway around the Las Vegas metro, facilitating development
in outlying areas. The area is also served by Interstate 15, which stretches from Southern Cali-
fornia to Salt Lake City. U.S. 93 travels south, linking Las Vegas to Interstate 40, and U.S. 95
runs northwest to Reno
McCarran International Airport, located minutes from the Las Vegas Strip, accommodates
about 40 million passengers annually. Other air service is provided by North Las Vegas Air-
FINANCIAL
ANALYSIS
port, Henderson Executive Airport, Jean Sport Aviation Center and Overton/Perkins Field. AIRPORTS
RTC Transit operates the public bus system throughout Las Vegas, Henderson, North Las ■■ McCarran International Airport
Vegas and the suburbs. In addition, a monorail system connects some of the casinos along ■■ Four general aviation airports
the Strip.
MAJOR ROADWAYS
Union Pacific offers freight rail service connecting the area directly to California and Salt Lake ■■ Interstates 15, 215 and 515
City, facilitating the region’s distribution capabilities. ■■ U.S. Highways 93 and 95
COMPARABLES
RAILS
MOST POPULOUS AREAS ■■ Freight - Union Pacific
■■ Monorail between the casinos
Las Vegas 606,200
Henderson 269,800
THE LAS VEGAS METRO IS:
Paradise 232,500
■■ 270 miles from Los Angeles
North Las Vegas 229,100 ■■ 285 miles from Phoenix
Sunrise Manor 197,000 ■■ 450 miles from Reno
OVERVIEW
570 miles from San Francisco
MARKET
■■
Spring Valley 187,600
* Forecast
Sources: Marcus & Millichap Research Services, U.S. Census Bureau, Experian
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
27 approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535M ARK ET OVER V IEW Home Depot
Las Vegas
EXECUTIVE
SUMMARY
Economy
Tourism and gaming remain the significant drivers for the Las Vegas economy. Economic diversification
and growth in the professional and business services sector, mainly in housing-related professions, fueled
considerable payroll expansion prior to the recession. Over the next five years, this trend is expected to
resume, as jobs in the professional and business services sector grow by 3 percent annually.
All 10 of the nation’s largest hotels are located in Las Vegas. The Linq Promenade offers visitors open-air
DESCRIPTION
shops and restaurants in a 200,000-square-foot area, highlighted by the High Roller, a 550-foot observa-
PROPERTY
tion wheel. Along with tourism and gaming, conventions also play an integral part in the local economy.
Since 2001, convention attendance has exceeded 4.4 million delegates annually, providing a significant
boost to the local economy. The Las Vegas Convention Center is one of the largest in the world.
Population-serving sectors of the economy, such as education, healthcare and retail sales, have grown
in importance over the past two decades due to the population nearly tripling in size. These sectors will
continue to have a major roll as population growth continues to exceed the national annual average.
The economic growth in Las Vegas depends heavily on tourism, medical services, business information
FINANCIAL
ANALYSIS
technology and green energy. The metro’s low tax structure and affordable cost of living will continue to
attract residents, tourists and businesses to the area.
COMPARABLES
OVERVIEW
MARKET
* Forecast
Sources: Marcus & Millichap Research Services, Bureau of Economic Analysis, Moody’s Analytics,
U.S. Census Bureau, Las Vegas Convention and Visitors Authority
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 28
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535M ARK ET OVER V IEW Home Depot
Las Vegas
EXECUTIVE
SUMMARY
Labor
Las Vegas’ employed population has grown to more than 883,500 workers. After slightly lagging the national expansion rate over the previous five years, Las Vegas’ nonfarm
employment growth is now forecast to increase by 2.3 percent annually through 2019. This is much higher than the expected national growth rate of 1.3 percent annually
during this same period.
Off the strip, the Downtown Project is a multifaceted revitalization effort drawing startups and entrepreneurs to the area. The project is attracting more diverse businesses to
the metro, including Zappos, which started the migration when it moved into the old Las Vegas City Hall a few years ago.
DESCRIPTION
PROPERTY
Construction, which currently comprises 5.0 percent of area jobs, will be the fastest-growing employment sector in the coming five years, with gains expected to average 5.2
percent annually. It is followed by the professional and business services sector, which will expand 3.0 percent each year during this time.
While Las Vegas has achieved considerable economic diversification over the past few decades, the leisure and hospitality sector still provides the dominant share of metro jobs,
making up some 31 percent of total employment. Growth in this sector is expected to accelerate throughout 2019, averaging an expansion of 2.4 percent each year. Given the
size and importance of this sector to the region’s economy, such healthy growth in this sector is an indicator of positive economic conditions going forward.
FINANCIAL
ANALYSIS
COMPARABLES
OVERVIEW
MARKET
* Forecast
Sources: Marcus & Millichap Research Services, BLS, Moody’s Analytics
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
29 approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535M ARK ET OVER V IEW Home Depot
Las Vegas
EXECUTIVE
SUMMARY
Employers
Resorts and casinos continue to dominate the list of largest private employers in the
county, including Wynn Las Vegas, MGM Grand and Caesars Palace.
Back-office operations have become increasingly prevalent in the metro over the past few
years. Factors such as a low cost of living allow major companies to affordably staff call
centers and fill data-entry positions. Office-using employment growth will outpace the
DESCRIPTION
national average this year.
PROPERTY
Distribution centers and light manufacturing facilities have popped up throughout the
metro. Ocean Spray and Levi Strauss, both Fortune 500 companies, operate regional
distribution centers in Las Vegas. OfficeMax, Zappos, Sysco Foods, Pepsi Bottling, and
Fellowes Manufacturing also maintain local facilities. As the national recovery strengthens
and the need for industrial space mounts, Las Vegas’ proximity to other major metros,
more affordable land costs, and an available labor pool will draw additional distributors.
The Nevada Test and Training Range along with Nellis and Creech Air Force Bases employ
FINANCIAL
ANALYSIS
more than 10,000 military personnel and 4,000 civilians. Nellis AFB contains the most
squadrons of any Air Force installation. Nellis’ primary role is warfare training, and the
base is the home of the United States Air Force Warfare Center, Air Combat Command.
Major Private Sector Employers
COMPARABLES
Wynn Resorts
Station Casinos
MGM Resots
Las Vegas Sands
Caesars Entertainment
Boyd Gaming
The Valley Health System
Cosmopolitan of Las Vegas
Dignity Health-St. Rose Dominican
OVERVIEW
MARKET
United Healthcare of Nevada
* Forecast
Sources: Marcus & Millichap Research Services, BLS, Moody’s Analytics, Experian
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 30
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535You can also read
