PAIR-A-DICE MOBILE HOME PARK VALUE ADD INVESTMENT OPPORTUNITY

Transcription

1 PAIR-A-DICE MOBILE HOME PARK VALUE ADD INVESTMENT OPPORTUNITY

2 THE OPPORTUNITY HIGHLIGHTS Sale Price $5,450,000 Price/Unit $39,781 Units 137 Avg SF 250 SF Net Rentable Area 34,250 SF Cap Rate 6.66% PAIR-A-DICE MOBILE HOME PARK 2067 Las Vegas Blvd, Las Vegas, NV PROPERTY OVERVIEW The Pair-A-Dice living community consists of a 137 space mobile home park averaging 250sf. The Property has street frontage on the west side of Las Vegas Blvd, as well as street frontage on the east side of Donna Street. The property includes a 900 square feet maintenance/laundry facility along with a 150 square feet storage shed. This property is located in the North Las Vegas downtown re-development area. Pair-a-Dice mobile home park is located in North Las Vegas on North Las Vegas Boulevard, a major north to south arterial throughout the Las Vegas area. It also has quick convenient access to Interstate 15. It is across the4street from retail shopping centers consisting of a supermarket, post office, banks, and restaurants. Downtown Las Vegas is a short 2.5 miles away with entertainment, restaurants, and shopping. It is also blocks away from North Las Vegas City Hall Hospital and the police department. Acreage 8.77 Year Built 1956 Avg Rent $425 Zoning R - A/ C R Proforma Gross $658,057 Proforma NOI $362,768 UNIT MIX UNIT TYPE UNITS SIZE PROFORMA RENT PROFORMA RENT / SF 1x $425 $1.70 Current OCC 80% Proforma OCC 90% APN

3 EXTERIOR PICTURES

4 LOCATION OVERVIEW downtown las vegas las vegas strip world market center 95 silver nugget casino CASHMAN CENTER las vegas blvd. jerry s nugget casino pair-a-dice 15 MARTINEZ ELEMENTARY school NORTH LAS VEGAS CITY HALL N. 5TH ST. las vegas blvd. FUTURE maya entertainment center QUANNAH MCCALL ELEMENTARY SCHOOL E. CAREY AVE. SMITHS jim bridger middle school PETITTI PARK

5 value add MAYA ENTERTAINMENT CENTER CONSTRUCTION STARTS ON MOVIE THEATER COMPLEX IN NORTH LAS VEGAS By Art Marroquin Las Vegas Review-Journal Construction started Monday on a 14-screen movie theater in North Las Vegas, showcasing one of the first visible steps toward redeveloping the economically depressed downtown area. The $75 million Maya Entertainment Center is expected to cater to the city s burgeoning Latino population and preview what s to come for one of the city s oldest neighborhoods. We want to bring some of Hollywood to North Las Vegas, Maya Cinemas North America Vice President Larry Porricelli said. The two-story theater, spanning 65,000 square feet, will rise from a dirt lot across the street from North Las Vegas City Hall and the Silver Nugget, set to open by Christmas in Design and financial challenges sent costs soaring higher than first expected, prompting developers to delay construction of some shops and restaurants at the commercial until 2019 at the earliest, Maya Cinemas President and Chief Operating Officer Frank Haffar said. Despite the setback, city officials said they re confident that Maya Cinemas arrival will draw other shops, restaurants and housing that could transform the downtown area into a vibrant urban core tentatively known as Lake Mead Village West. Just blocks from the movie theater, city officials are spending a $1.2 million federal community block grant to start converting the shuttered Canyon Electric Building at 1936 White Street into a two-story library with 7,000 square feet of space. A museum or gathering space is planned for Washington Continuation School, which the city purchased last year for $260,000. Studies are underway for a new transit station on Fifth Street. A park spanning six to eight blocks would connect each of those areas. This project is a great catalyst for the revitalization we want to do, so we are extremely enthusiastic and excited about what this will do for the confidence level of all the plans and ideas we ve been talking about behind the scenes, said Gina Gavan, economic and business development director for North Las Vegas. There can always be a lot of talk, Gavan said. But we re making sure that these projects are thoughtful and meaningful. North Las Vegas has long struggled to jump-start its downtown. Developers last decade sought to convert the Maya Cinemas site into a 350,000-square-foot retail complex known as Las Flores. After several stalls in construction, the plan failed and Dallas-based Sarofim Realty put the land up for sale. Maya Cinemas, led by movie director Moctesuma Esparza, spent $7.1 million to buy the land in February, beating out a developer who wanted to build a minor-league soccer stadium across the street from City Hall. pair-a-dice Esparza, a Mexican-American activist-turned-movie producer best known for his work on Selena, said his four Maya Cinemas theaters have helped spur economic activity in cities with large Latino populations. We know it will happen here, too, Esparza said of the company s venture into North Las Vegas, its first outside of California. maya entertainment center With a 38.8 percent Latino population, North Las Vegas could potentially see additional Latinoowned businesses spring up as downtown redevelopment progresses, Councilman Isaac Barron said. It reflects the fact that this area isn t just seeing an influx of Latino residents, but Latino money, said Barron, whose Ward 1 includes downtown. Private industry is seeing the real-life potential of the Latino dollars and the influence of Latinos in this area.

6 DEMOGRAPHICS 15 min 10 min 5 min drive times 5 min 10 min 15 min Population 53, , ,168 Avg. Household Income $38,836 $43,832 $52,210 Number of Employers 1,105 93,640 31,875 Number of Employees 22, , ,323 Median Age

7 financials INVESTMENT SUMMARY PROPERTY INFORMATION OFFERING PRICE $5,450,000 # OF UNITS 137 PRICE PER UNIT $39,781 PRICE /SF $ CAP RATE 6.66% GRM 7.80 RENTABLE AREA 34,250 YEAR BUILT 1956 GROSS POTENTIAL $698,700 AVERAGE RENT $425 AVERAGE UNIT SIZE 250 PHYSICAL OCC. 80% UNIT MIX UNIT TYPE UNITS SIZE MONTHLY PROFORMA RENT PROFORMA RENT / SF 137 MH PAD 250 $425 $1.70

8 actual/proforma breakout ACTUAL / PROFORMA FINANCIALS T90 INCOME W/T12 EXP PER UNIT % PROFORMA PER UNIT % Gross Potential Income $635,532 $4,639 $698,700 $5,100 Less Vacancy $ - $ - - % $(69,870) -$ % Less Concess/Allowance $ - $ - - % $(41,922) -$ % Net Rentable Income $635,532 $4,639 $586,908 $4,284 Other Misc Income (Laundry) $1,488 $ % $71,149 $ % Gross Operating Income $637,020 $4,650 $658,057 $4,803 Estimated Operating Expenses Payroll $64,582 $ % $41,100 $ % Administration $14,572 $ % $17,125 $ % Management $- $- 0.00% 19,742 $ % Repairs and Maintenance $21,945 $ % $20,550 $ % Utilities $152,048 $1, % $156,609 $1, % Advertising $334 $2 0.05% $- $0 0.00% Insurance $7,955 $ % $6,850 $ % Landscaping $885 $6 0.14% $ - $0 0.00% Property Tax $12,763 $ % $12,763 $ % Turnover $- $0 0.00% $ - $0 0.00% Capital Reserves $20,550 $ % $20,550 $ % Total Operating Expense $295,634 $2, % $295,289 $2, % Net Operating Income $341,386 $2, % $362,768 $2, %

9 COMPARABLES pair-a-dice

10 sale comps PROPERTY SALES PRICE PRICE PER UNIT UNITS DATE SOLD Pair-A-Dice 2067 Las Vegas Blvd. $5,450,000 $39, TBD PROPERTY SALES PRICE PRICE PER UNIT UNITS DATE SOLD 1 Palm Grove MHP 1624 Palm St. $19,950,000 $55, /2/ Sunrise Mobile Home Park 1450 N. Nellis Blvd. $1,400,000 $35, /30/ La Villa Vegas MHP 1190 S. Mojave Rd. $2,850,000 $43, /8/ Sand Creek MHP 2627 S. Lamb Blvd. $18,000,000 $55, /30/2016 AVERAGE SALE PRICE PRICE PER UNIT UNITS $10,550,000 $47,

11 sale comps map PAIR-A-DICE LA VILLA VEGAS MHP SUNRISE MHP PALM GROVE MHP SAND CREEK MHP

12 RENT comps SUBJECT PROPERTY UNITS AVG, SF PRICE Pair-A-Dice 2067 Las Vegas Blvd SUBJECT PROPERTY UNITS AVG, SF PRICE Acacia 1832 N. Walnut Rd $475 Walnut Estates 1750 N. Walnut Rd $460 1 X 1 Bramblewood 1700 N. Gateway Rd $450 Pair-A-Dice 1832 N. Walnut Rd $425

13 rent comps map PAIR-A-DICE WALNUT ESTATES ACACIA BRAMBLEWOOD

14 bios Devin Lee, CCIM Director Multifamily Investments Finance Devin Lee, CCIM, became Director of the Northcap Multifamily division after a seven-year career with another international real estate firm where he began in 2010 after 12 years in commercial mortgage. He currently specializes in multifamily sales and financing and has been involved in over $1 billion in real estate transactions over the course of his career. Mr. Lee is co-founder and president of Access Commercial Mortgage. He facilitates deals on behalf of property owners and developers nationwide. His responsibilities include oversight in origination, underwriting and placement of financing transactions with major national portfolio lenders, Wall Street conduits, life insurance companies, agency lenders and private lenders. He is also vice president of the Nevada branch for CIII Commercial Mortgage, a national Wall Street direct commercial lender. Mr. Lee earned his Certified Commercial Investment Member designation in 2005 and completed the Commercial Real Estate Program at the LIED School of Real Estate Studies in He was an active Southern Nevada CCIM chapter board member from 2006 through 2016 as well as served as the Southern Nevada CCIM chapter president in He was also a board member of Commercial Alliance Las Vegas in That same year he also became a founding member of the Inter-Capital Group, a strategic alliance of commercial mortgage brokers and bankers nationwide. Mr. Lee has been a resident of Las Vegas since He attended Valley High School and graduated Cum Laude from the University of San Diego in 1992, earning his Bachelor of Business Administration in Business Economics. Mr. Lee has been involved with several local charities including the YMCA and Nathan Adelson Hospice. jerad ROBERTS Executive VP Multifamily Investments jerad@northcap.com Jerad Roberts started in commercial real estate as a financial analyst in 2013 and now joins the Northcap team as a multifamily specialist. His specialties include financial underwriting, cash flow analysis, day-to-day operations as well as acquisitions and dispositions of multifamily assets. He has underwritten more than $600 Million in multifamily sales in just a few short years. At the start of his career, Jerad was a financial underwriter for multifamily properties at NAI Vegas. During that tenure he underwrote more than 5,000 units and over $200 Million in sales. He is a native of Las Vegas and holds dual bachelor degrees in accountancy and business administration from the University of San Diego. Currently, Jerad is working toward his Certified Commercial Investment Membership through and looks forward to becoming a future designee. Outside of the office he volunteers with Three Square, does committee work for CCIM and can often be found outdoors fishing or playing sports. His industry affiliations present and past include: Southern Nevada CCIM Chapter, CCIM Institute, Inter-Capital Group, Commercial Alliance Las Vegas, Commercial Marketing Group, Better Business Bureau, Las Vegas Chamber of Commerce, Mortgage Bankers Association, Nevada Association of Mortgage Professionals, Southern Nevada Multifamily Association and Northern Nevada Multifamily Association. Jason joined the Northcap multifamily team in 2016 as an investment analyst. He previously held court at a locally based international real estate firm, specializing in multifamily research, marketing, database management and financial analysis. Mr. Willett joined Northcap Commercial in 2016 as a lead multifamily investment specialist for the greater Las Vegas market. Prior, Willett and his team worked at an international brokerage firm, with anchored specialty in the local multifamily industry for over 40 years. There he assisted clients in the acquisition and disposition of over 12,000 apartment units. JASON DITTENBER VP Multifamily Investments jason@northcap.com Jason is a graduate from the University of Nevada Las Vegas, where he earned a Business Administration degree in Real Estate and Urban Economics. His knowledge of the field has continued to rapidly develop through his opportunities to work alongside several industry leaders. A lifelong resident of Nevada, Jason moved to Las Vegas in 2010 from the Reno/Lake Tahoe area to attend college and eventually start his real estate career. He is an avid sports fan and can be found spectating or participating in various sporting events. robin willett Senior VP Multifamily Investments robin@northcap.com Willett began his real estate career in Las Vegas immediately after attending Fort Lewis College in Colorado. As a recognized leader in the industry, he continues to work with a spectrum of institutional firms to local owners offering unparalleled services. His skilled approach to identifying solutions and outlining opportunities gives clients the confidence needed to build consensus between decision makers on every transaction. Since obtaining his real estate license in 2006, he has shown exemplary skills in analyzing, negotiating and executing investment real estate transactions in excess of $750 million. In addition to brokerage investment services, Willett enjoys entrepreneurship endeavors and is a passive investor in several small business start-ups as well as local real estate opportunities. He is a CCIM candidate and active in many of its community outreach programs. Willett is also a certified trainer in Neuro Linguistics, an avid auto racing enthusiast and passionate about the well-being of the Las Vegas community.

15 Devin Lee, CCIM Director Multifamily Investments Finance jerad ROBERTS Executive VP Multifamily Investments JASON DITTENBER VP Multifamily Investments robin willett Senior VP Multifamily Investments john tippins Chief Executive Officer Founder