buford business depot -...

OFFERING MEMORANDUM

BUFORD BUSINESS DEPOT1384 Buford Business Boulevard, Building BBUFORD, GA

PREPARED BY:

1100 Abernathy Road, N.E.| Bldg. 500, Suite 600 | Atlanta, GA 30328(678) 808-2700 | www.marcusmillichap.com

Todd HarrellIndustrial Properties Specialist (678) [email protected]

Marc IrvinAssociate Director(678) [email protected]

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.

Buford Business DepotBUFORD, GA

NON-ENDORSEMENT NOTICE

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 YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 RECENT SALES

Section 4 LOCATION OVERVIEW

Section 5 SUBMARKET STATISTICS

TABLE OF CONTENTS

Buford Business Depot


PRICING AND FINANCIAL ANALYSIS

1

1384 Buford Business Boulevard,

Buford, GA 30518

Price $1,565,000

Down Payment 30% / $469,500

Rentable Square Feet 27,624

Price/Rentable SF $56.65

CAP Rate - Current 4.91%

CAP Rate - Pro Forma 10.65%

Year Built 2006

Parcel Size 2.01 Acres

FIRST TRUST DEED

Loan Amount $1,095,500

Interest Rate 4.5%

Amortization 25 Years


Annualized Operating Data


Income Current Pro Forma

Base Rent

Occupied Space $220,992

Available Space at Market Rents

Gross Potential Rent $220,992

Gross Potential Income $220,992

Vacancy/Collection Allowance 7% / $15,469

Effective Gross Income $205,523

Total Expenses $38,850

Net Operating Income $166,673

Reserves $2,762

Net Cash Flow Before Debt Service $163,910

Debt Service

$113,185

$128,176

$241,361

$241,361

58% / $128,176

$113,185

$36,337

$76,848

$2,762

$74,086

$73,070 $73,070

Debt Coverage Ratio 1.05 2.28

Net Cash Flow After Debt Service 0.22% / $1,016 19.35% / $90,840

Principal Reduction $24,269 $24,269

Total Return 5.39% / $25,285 24.52% / $115,109

Location

Financing

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. © 2016 Marcus &Millichap. All rights reserved.

Expenses

Real Estate Taxes $8,521 $8,550

Insurance $1,757 $1,800

Condo Asscociation $19,784 $20,000

Repairs & Maintenance $275 $2,500

Management Fee $6,000 $6,000

TOTAL EXPENSES $36,337 $38,850

EXPENSES/SF $1.32 $1.41

Loan information is time sensitive and subject tochange. Contact your local Marcus & MillichapCapital Corporation representative.

FINANCIAL OVERVIEW

2




Rentable Square Feet 27,624

Current Per SF Pro Forma Per SF

BASE RENT

Occupied Space $113,185 $9.76 $220,992 $8.00

Available Space at Market Rents (16,022 SF) $128,176 $8.00

GROSS POTENTIAL RENT $241,361 $8.74 $220,992 $8.00

GROSS POTENTIAL INCOME $241,361 $8.74 $220,992 $8.00

Vacancy/Collection Allowance (% of GPI) 58% / $128,176 $4.64 7% / $15,469 $0.56

EFFECTIVE GROSS INCOME $113,185 $4.10 $205,523 $7.44

Total Expenses $36,337 $1.32 $38,850 $1.41

NET OPERATING INCOME $76,848 $2.78 $166,673 $6.03

Reserves $2,762 $0.10 $2,762 $0.10

NET CASH FLOW BEFORE DEBT SERVICE $74,086 $2.68 $163,911 $5.93

INCOME & EXPENSES

THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representation 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. Marcus & Millichap is a service mark of © 2014 Marcus & Millichap. All rights reserved.

Buford Business Depot BUFORD, GA

RENT ROLL


3

Suite Tenant SF% of

Total SF

Lease

Commenc

e Date

Lease

Expire

Date

Annual

Rent

Rent

per SF

Changes

On

Changes

To

TOTAL AVAILABLE 16,022 58%

TOTAL OCCUPIED 11,602 42% $113,185 $135,540

TOTAL 27,624 100% $113,185 $135,540

Comments


PROPERTY DESCRIPTION

Property Summary

Address:

Property Description:

1384 Buford Business BoulevardBuilding B

Class B Flex Building

Year Built: 2006

Size Rentable (SF): ±27,624 SF

Occupancy: 42%

No. of Stories: 1 Floor with Mezzanine

Parking Ratio: 2.13 Per 1,000 SF

5



Building Price: $1,565,000

Building Price Per SF: $56.65


INVESTMENT OVERVIEW

■ Well-maintained, attractive brick veneer construction withmultiple reliefs

■ Brick & block warehouse

■ Stucco wrapped around the back of the building

■ Gravel ballast roof

■ 6” Concrete Slab

■ Concrete Mezzanine

■ 24’ Ceiling Height

Construction & Building Features

The Offering

* Individual units may be purchased together or separately

Offering Highlights

■ 7 Individual units available for sale together or separately

■ Units range in size from 3,615 SF to 4,160 SF

■ Desirable location in Buford, GA

■ 1.5 Miles from I-985, 4 miles from I-85 and within 0.5 mileof Route 20

■ Located on amenity rich thoroughfare

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■ Ownership can provide a maximum contiguous space of12,262 SF by combining units 100, 200 and 300. Theseunits are in shell condition.

■ Unit 400 is leased to Emcor. It is approximately 4,160 SFand is leased until 3/31/2021.

■ Unit 600 is built out and vacant. It is approximately 3,760SF and would be best suited for an owner/user or an investor.

■ Units 700 and 800 are built out and leased to ResearchThink Tank until 1/31/2017. The suites would be best suitedfor an owner/user or an investor.

■ The units are being sold below replacement cost.

■ The units are adjacent to two additional buildable lots. Bothlots are available for sale.

■ Lots 3 & 4 are approximately 3.208 Acres

■ Lots 5 & 6 are approximately 2.584 Acres

■ The asking price is $150,000 per acre

INVESTMENT OVERVIEW

Overview

The Offering

Property Buford Business Depot

Property Address 1384 Buford Business Boulevard, Building B

Buford, GA 30518

Property Type Class B Flex Building

Parcel Numbers 7258-353, 7258-354

Site Description

Parcel Size 2.01 Acres

Zoning M1 - Light Industrial

Parking Ratio 2.13 Per 1,0000 SF

Construction

Year Built 2006

Construction Type Brick & Block

Clear Height 24'

Exterior Walls Brick

Roof Gravel Ballast Roof

Foundation 6' Concrete Slab

Loading 8 Drive-In Doors

Parking Surface Asphalt

Mechanical

Fire Protection Sprinklers

Utilities Gas, Heating, Lighting, Sewer, Water

Interior Detail

Walls Drywall

Ceilings Drop Ceiling with Acoustical Tile

Floor Coverings Carpet & Tile

Rest Rooms Yes

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PROPERTY SUMMARY

Local Map Regional Map

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AREA MAPS

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AERIAL PHOTO

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. Buyermust verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. © 2016 Marcus & Millichap. All rights reserved.


SITE PLAN


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Floorplans


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LEVEL 1 FLOORPLAN

LEVEL 2 MEZZANINE FLOORPLAN


RECENT SALES

1)

2)

3)

4)


1424 Buford Business Boulevard -

Building A

3047 Summer Oak Place

5230 Bellewood Court

3-Building Portfolio Sale

13

RECENT SALES



RECENT SALES MAP

Average Price Per Gross SF

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RECENT SALES

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Subject 1424Buford

BusinessBoulevard

-Building

A

3047Summer

OakPlace

5230Bellewood

Court

3-BuildingPortfolio

Sale



PRICE PER GROSS SQUARE FOOT

1

2


1384 Buford Business Boulevard, Building B

Buford, GA 30518

1424 Buford Business Boulevard - Building A

1424 Buford Business Boulevard - Building A

Buford, GA 30518



Buford, GA 30518

Rentable SF: 27,624 Sales Price: $1,565,000

Year Built: 2006

Occupancy:

CAP Rate: 4.91%

Price/Rentable SF: $56.65

Sale Date: 12/30/2015 Sales Price: $2,750,000

Rentable SF: 48,664 Percent Down: N/A

Year Built: 2006 CAP Rate: N/A

Occupancy: 100% Price/Rentable SF: $56.51


Rentable SF: 15,000 Percent Down: 100%



1

15

RECENT SALES



RECENT SALES

58%

4



Buford, GA 30518

3-Building Portfolio Sale

3545 Cruse Road - Buildings 1, 2, 3

Lawrenceville, GA 30044

3

Sale Date: 10/02/2015 Sales Price: $675,000






Year Built: CAP Rate: N/A

Occupancy: N/A Price/Rentable SF: $45.21

16

RECENT SALES



RECENT SALES

1995


LOCATION OVERVIEW



LOCATION OVERVIEW – GWINNETT COUNTY

Buford Business Depot is strategically located within the City of Buford with ease of access to I-985 and close proximity to I-85. The City of Buford is well positioned in Atlanta’s Northeast submarket in one of the fastest growing counties in the country, Gwinnett County. With a population of more than 842,000, Gwinnett is the second most populous county in the state of Georgia and a premier location in Metro Atlanta for growing and conducting business.

The area is also home to the University of Georgia-Gwinnett, Georgia Gwinnett College and Gwinnett Technical College where more than 20,000 students are enrolled in fields of study ranging from biological sciences and engineering to business and health professions.

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LOCATION OVERVIEW



LOCATION OVERVIEW – GWINNETT COUNTY

GWINNET HIGHLIGHTS

2014 - Gwinnett Parks and Rec named #1 Agency in the state, and announced as finalist for National Gold Medal Award (GA Parks and Rec Association)

2014- US News and World Report ranks Gwinnett School of Math, Science and Technology #1 on its rankings of best high schools

2014 - AAA Credit Rating reaffirmed with stable outlook (Fitch)

2013 - #9 Where the jobs are - CNN Money Magazine (United States)

2013 - Primerica moved into a 350,000 square foot, $74M World HQ in Duluth

2013 - Mitsubishi Electronics moves into new 550,000 square foot distribution facility

2013 - National DCP relocates corporate headquarters to Duluth leasing 32,500 square feet and creating 125 new jobs for the area

2013 - WIKA Instrument expanded their U.S. headquarters in Lawrenceville. Expansion will create 250 jobs by 2015

2012 - FedEx Ground builds a 250,000 square foot distribution facility in Norcross and adds 450 jobs

Fortune 500 Companies headquartered in Gwinnett County - AGCO (272), Rock-Tenn (291), and NCR (441)

GWINNET COMPANIES Gwinnett County is home to the Fortune 500 and global headquarters of Fortune 500 companies AGCO Corporation, NCR, and RockTenn. More than 60 international companies have chosen the county for their U.S. or global headquarter operations, such as Mitsubishi Electric, Ricoh Electronics, Suniva and WIKA Instruments. Domestic and international businesses of all sizes are attracted to the area including sectors such as Advanced Manufacturing, Professional Services, Health Sciences and Services, Information Technology Solutions, and Supply Chain Management.

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LOCATION OVERVIEW


SUBMARKET STATISTICS

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The Duluth/Buford/Suwanee Flex Submarket consists of 4,176,208 SF within 215 buildings. Vacancy rates have been declining since their peak in mid-2012 of nearly 20%, and now sit much lower at about 8.8%. Net Absorption has been positive for nearly the past 4 years since 2013. Gross Asking Rent Per SF has recovered from its low in 2011 around $7.11 PSF, and is now trending upward with the current average just below $9.00 PSF.

Net Absorption

Gross Asking Rent Per SF

Vacancy Rates

BUFORD, GA


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