> single tenant net leased investment 10835 south state ......sale comparables address total...
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Colliers International111 S. Main Street | Suite 2200
Salt Lake City, Utah 84111P: +1 801 947 8300
Tanner Riedel+1 801 947 [email protected]
> Single Tenant Net Leased Investment 10835 SOUTH STATE STREET SANDY, UTAH 84070
SINGLE TENANT NET LEASED INVESTMENT > FOR SALE
> Tenant Overview
HuHot Mongolian Grill is an American restaurant chain specializing in a create-your-own stir fry cuisine. HuHot also serves a variety of alcoholic beverages and maintains a Utah liquor license. Its headquarters is in Missoula, Montana. As of March 2017, there are over 70 HuHot Mongolian Grills in 18 states, with the vast majority located in the Midwest and Mountain West States.
> Property Details
SINGLE TENANT NET LEASED INVESTMENT > FOR SALE
PRICE: $1,800,000 ($233 PSF)
NET OPERATING INCOME: $93,144CAPITALIZATION RATE: 5.17%YEAR CONSTRUCTED:
2000BUILDING SIZE: 7,698 SFTOTAL LAND:
0.71 ACRESPARKING:
5/1,000 SF RATIO
> About the Property
Before taking occupancy in May of 2013, the tenant invested over $700,000 into remodeling the building to better fit their needs. For their initial investment, the landlord granted them a long-term lease at a below market rental rate. While the tenant has demonstrated that they have the intention of staying long term by investing in the building, if they ever left, they could easily be replaced.
SINGLE TENANT NET LEASED INVESTMENT > FOR SALE
> Comparables
HUHOT (SUBJECT PROPERTY)
Address Total Building SF
Rentable SF
Land Size (Acres)
In-place Lease Rate Price per SF
1 10835 S. State St. 7,698 6,750 0.71 $13.80 (NN) $233
LEASE COMPARABLES
Address Total Building SF Comp SF Actual/
Starting Rate: Lease Term Commencement: Lease Type:
TI Allowance/SF:
2 10261 S. State St. 10,200 3,258 $30.00 NNN 120 Months 12/8/2016 New
Term $40.00
3 10431 S. State St. 146,382 2.300 $36.00 NNN 120 Months 5/24/2017 New
Term NA
4 11020 S. State St. 25,498 3,200 $38.00 NNN 120 Months 12/16/2019 New
Term $50.00
5 11052 S. State St. 18,350 3,000 $38.00 NNN 120 Months 10/15/2019 New
Term $35.00
SALE COMPARABLES
Address Total Building SF
Land Size (Acres) Actual Price Price/SF Transaction Date
6 10717 S. State St. 3,627 0.49 $790,000.00 $217.81 12/31/2018 Building was 100% vacant at the time of sale.
SINGLE TENANT NET LEASED INVESTMENT > FOR SALE
> Comparables Map
2
3
45
6
1 - SUBJECT PROPERTY
SINGLE TENANT NET LEASED INVESTMENT > FOR SALE
> About the Location
This property is in the heart of Sandy City’s most prominent retail area. The property is just minutes away from South Town Mall, Costco, and countless other attractions.
While the location is already well known, there are other notable projects underway that will only draw more people to the area. Ground is being broken on a 400,000 SF class A office building, located at 10200 South Monroe Street. There is also 52,000 SF of retail development underway, at 11020 S. State Street.
The property has great exposure from State Street with 29,000 ADT in 2017, and is just minutes away from I-15 with 179,000 ADT in 2017.
> Lease Overview
> Term: 10-year lease with over 3 years remaining
> Options: (2) 5-year options remaining
> Escalations: 15% rental escalations at options
> Current Rental Rate: $13.8 PSF
> Landlord Responsibilities: Roof and Structure
> Guarantor: 4 unit franchise. The franchise as two locations in Utah, both of which appear to be thriving.
SINGLE TENANT NET LEASED INVESTMENT > FOR SALE
> Sandy, Utah
Sandy is home to the Shops at South Town shopping mall; the Jordan Commons entertainment, office and dining complex; and the Mountain America Exposition Center. It is also the location of the soccer-specific Rio Tinto Stadium, which hosts Real Salt Lake and Utah Royals FC home games.
In 2017, Sandy had a population of 94.6k people with a median age of 35.7 and a median household income of $87,012. Between 2016 and 2017 the population of Sandy, UT grew from 93,141 to 94,556, a 1.52% increase and its median household income grew from $83,527 to $87,012, a 4.17% increase. The median property value in Sandy is $309,800, and the homeownership rate is 76.8%.
UTA's TRAX light rail system operates in Sandy. The city is home to four light rail stations, serving the city center and nearby transit-oriented developments. All of Sandy's light rail stations are on the Blue Line, terminating at Salt Lake Central Station to the north and Draper Town Center to the south.
> Demographics (Sandy, Utah)
> Population
94,556 > Median Household Income
$87,012 > Median Age
35.7 > Number of Employees
48,060
SINGLE TENANT NET LEASED INVESTMENT > FOR SALE
Why Utah?> UTAH PROVIDES A HIGH QUALITY OF LIFE
Utah is a national leader in high job growth, low unemployment, low cost of doing business, and talented labor. Utah regularly tops rankings among best states for business, careers, living, health, and quality of life. Utah provides an array
of employment opportunities in various industries, and offers its residents numerous lifestyle options that range from quiet rural settings to thriving urban centers.
Most of Utah’s population resides along The Wasatch Front, roughly 150 miles of contiguous cities and communities, running predominantly north-south along the I-15 corridor and the western slope of the Wasatch Mountain range, from Brigham City to Nephi.
Utah is world-renowned for its bounty of public lands and recreation opportunities ranging from mountain wilderness to desert landscapes. Utah has five national parks, six national forests, numerous state parks and recreation areas, and over a dozen ski resorts.
Utah is a geographically diverse state, encompassing a convergence of three distinct geological regions: the Rocky Mountains, the Great Basin, and the Colorado Plateau.
The beehive is the state symbol of Utah. The Mormon settlers used the symbol to represent hard work and industriousness. The beehive is where all workers cooperate in the construction of something much bigger than themselves, as a model for a properly run society.
48%OF UTAHNS HAVE
OBTAINED POSTSECONDARYCERTIFICATES OR DEGREES
(UTAH.GOV)
MORE THAN
35HIGHER EDUCATION
INSTITUTIONS IN UTAH(NATIONAL DATABASEOF SCHOLARSHIPS)
OVER
69THOUSANDDEGREES AWARDED
IN 2015(DATAUSA.IO)
Utah boasts a HighlyEducated & Skilled
Workforce
UTAH IS EXPERINCINGOVERWHELMING JOB GROWTH IN
CONSTRUCTION, FINANCIAL,HEALTH &
TECHNOLOGYSECTORS(UTAH.GOV)
ABOUT
48THOUSAND
JOBS ADDED TO UTAH’S ECONOMY IN 2018
(UNIVERSITY OF UTAH)
Opportunities forJobs & Careers
in Utah are Plentiful
ONE OF THE FASTESTGROWING STATES IN THE U.S.
15.2%POPULATION INCREASE
2010-2018(ESRI BAO)
MEDIAN AGE OF
30.6THE YOUNGEST STATE INTHE U.S. BY MEDIAN AGE
(ESRI BAO)
Utah is aYoung & High-Growth
State
THERE ARE MORE THAN
420THOUSAND
MORE PEOPLE IN UTAHTHAN THERE WERE IN 2010
(ESRI BAO)
UTAH NAMED
#2BEST STATE
FOR BUSINESS IN 2018(FORBES)
RANKED
2ndBEST STATE FOR
OVERALL ECONOMY(U.S. NEWS: BESTSTATES RANKING)
AMONG THE TOP STATESIN THE U.S. FOR JOB GROWTH
3.6%UTAH’S JOB GROWTH RATE
2017-2018(U.S. BUREAU OF
LABOR STATISTICS)
TheEconomic Conditions
in Utah are Great
ABOUT
15%OF UTAH RESIDENTS SPEAK
A LANGUAGE OTHERTHAN ENGLISH AT HOME
(THE SALT LAKE TRIBUNE)
OVER
120LANGUAGES
SPOKEN IN UTAH(DESERET NEWS)
MORE THAN
246THOUSANDSPANISH SPEAKERS(U.S. CENSUS BUREAU)
Utah contains aMultilingualPopulation
RANKED
4thBEST STATE FOR
VENTURE CAPITAL(U.S. NEWS: BESTSTATES RANKING)
SITE
SINGLE TENANT NET LEASED INVESTMENT > FOR SALE