68718 Perez Rd.Cathedral City, CA 92234
OfferingMemorandum
Rosano Partners // Offering Memorandum 268718 Perez Rd., Cathedral City, CA 92234
Table Of Contents
The information contained in the Marketing and Value Presentation is confidential, furnished solely for the purpose of a review by a prospective purchaser of the Property, and is not to be used for any other purpose or made available to any other person without the express written consent of the Seller or Advisor. Prospective purchasers should also conduct their own due diligence, including, but not limited to, engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property or used in the construction of maintenance of the building(s) at the Property.
Presented by:Korena EllisSenior AssociateInvestment Sales Group
BRE: 01430539
D: 213.802.0238M: 323.821.9441E: [email protected]
George CornelsonCultivation Specialist
Rosano PartnersLos Angeles Office700 S. Flower St, Suite 2526Los Angeles, CA 90017www.RosanoPartners.com
Property Overview...................... 3
Location Overview .................... 5
Sales Comparables ................. 9
Financial Analysis .................... 15
Demographics ..........................18
Rosano Partners // Offering Memorandum 3
68718 Perez Rd.Cathedral City, CA 92234
Property Overview
Rosano Partners // Offering Memorandum 468718 Perez Rd., Cathedral City, CA 92234
- Zoned For Medical Marijuana Uses- Large Lot- Warehouse and Office Space- Easily Enclosed Overhang- Potential for Vertical Integration- Great Location- Structure is Insulated
Property Overview / Financial Summary
Property Overview / Investment Highlights
Property Overview / Property Description
Rosano Partners is proud to present a unique opportunity to acquire a 5,102SF office/warehouse zoned for marijuana business uses on a 12,108SF lot. The property has an electric capacity of 850Amps at 120/240v and includes an overhang than can be enclosed to create more space. This property is on a main thoroughfare in Cathedral city and is zoned for cultivation, manufacturing, and dispensaries. This parcel provides a tremendous opportunity to build out customized space, while using the existing structures for a dispensary, cultivation, or manufacturing purpose. There is ample space and electric capacity to create a vertically integrated facility with a great location in Cathedral city.
Property Overview
PRO FORMA CAP RATE
11.68%
GROSS BUILDING SF
5,102 SFLOT SF
12,198 SF
PRICE
$1,850,000
PRICE / SF
$362,60
LAND PRICE/SF
$151.66
YEAR BUILT
-
Rosano Partners // Offering Memorandum 5
68718 Perez Rd.Cathedral City, CA 92234
Location Overview
Rosano Partners // Offering Memorandum 668718 Perez Rd., Cathedral City, CA 92234
Location Overview / Map
Cathedral City is in Riverside County, 7 miles Southeast of Palm Springs off the 10 Freeway. It is the second largest City in population in the Coachella Valley, and nicknamed “Cat City” by the locals. Effective in June 2016, the City passed an ordinance to allow Medical Marijuana uses to include cultivation, dispensing, and in some areas, manufacturing. This is an emerging market for MMJ business, and valuable opportunity to bring your medical Marijuana business above board.
Location Overview / Location Descriptions
S
Rosano Partners // Offering Memorandum 768718 Perez Rd., Cathedral City, CA 92234
Location Overview / Map
S
Rosano Partners // Offering Memorandum 868718 Perez Rd., Cathedral City, CA 92234
Location Overview / Aerial Map
S
Rosano Partners // Offering Memorandum 9
68718 Perez Rd.Cathedral City, CA 92234
Sales Comparables
Rosano Partners // Offering Memorandum 1068718 Perez Rd., Cathedral City, CA 92234
Sales Comparables / Overview
Price / Lot
S. No. Address Sale Price Price per RBA
S 68718 Perez Rd. $1,850,000 $362.60
1 36450 Bankside Drive $2,050,000 $256.25
2 68351 Perez Road $2,000,000 $100.00
3 68721 Summit Drive $1,450,000 $189.99
4 36655 Sunair Plaza $1,575,000 $176.67$362.60 $98.04 $69.57 $45.31
S1 2 3
$72.06
A
$75.33
4
32
1
S
4
Rosano Partners // Offering Memorandum 1168718 Perez Rd., Cathedral City, CA 92234
Sales Comparables / 01 36450 Bankside Drive, Cathedral City, CA 92234
Sale Date 07/20/2016
Sale Price $2,050,000
Building SF 8,000 SF
Lot Acres 0.48 Acres
Building Price PSF
$256.25
Building Type Industrial
Year Built 1990
Rosano Partners // Offering Memorandum 1268718 Perez Rd., Cathedral City, CA 92234
Sales Comparables / 02 68351 Perez Road, Cathedral City, CA 92234
Sale Date 05/18/2016
Sale Price $2,000,000
Building SF 20,000 SF
Lot Acres 0.66 Acres
Building Price PSF
$100.00
Building Type Industrial
Year Built 1990
Rosano Partners // Offering Memorandum 1368718 Perez Rd., Cathedral City, CA 92234
Sales Comparables / 03 68721 Summit Drive, Cathedral City, CA 92234
Sale Date 06/13/2016
Sale Price $1,450,000
Building SF 7,632 SF
Lot Acres 0.73 Acres
Building Price PSF
$189.99
Building Type Industrial
Year Built 1965
Rosano Partners // Offering Memorandum 1468718 Perez Rd., Cathedral City, CA 92234
Sales Comparables / 04 36655 Sunair Plaza, Cathedral City, CA 92234
Sale Date 06/06/2016
Sale Price $1,575,000
Building SF 8,915 SF
Lot Acres 0.48 Acres
Building Price PSF
$176.67
Building Type Industrial
Year Built Unknown
Rosano Partners // Offering Memorandum 15
68718 Perez Rd.Cathedral City, CA 92234
Financial Analysis
Rosano Partners // Offering Memorandum 1668718 Perez Rd., Cathedral City, CA 92234
Financial Analysis / Setup
Offering Price: $1,850,000 Current
$200,000 Pro Forma Gross Income: $244,896
(Cost does not include grow equipment)
Expense Reimbursements: NNN $31,050Down Payment: 60% $1,110,000 Other income / Percentage Rent: $0
Pro Forma Cap: 11.68% Gross Potential Income: $275,946
Vacancy Allowance: ($5,519) 2.0%Price / Bldg sq/ft: $362.60 Effective Gross Income: $270,427
$151.66 Less Expenses: ($31,050)
Net Operating Income: $239,377 88.5%
Deal Notes Less Loan Payments: ($65,158)
Cash Flow/CoC Return: $174,219 15.70%
First Yr Principal Reduction: $6,182
Total Return Before Taxes: $180,400 16.25%NOTES: * As a percent of Effective Gross Income. ** As a percent of Down Payment.
Property Description5,102
12,198 PRO FORMAUNKNOWN Taxes 1.30% $24,050
Insurance 1.37$ $7,000Financing Utilities -$ $0Loan Amount: $740,000 Landscaping -$ $0Terms (Years): 30 Maintenance/Repairs -$ $0Interest Rate: 8.00% Garbage -$ $0Monthly Payment: ($5,430) Off-Site Management -$ $0Yearly Payment: ($65,158) Total Expenses $31,050Financial Summary: Monthly/SF $0.51
This information has been secured from sources we believe to be reliable, however 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 all information.
Pricing Summary
Financial Analysis68718 Perez Rd
Cathedral City, CA 92234
Annualized Operating Data
Annualized Expenses
Approx Cost to Upfit Space for culitvation~ Included in NOI
Please Contact Rosano Partners for more information at 213.802.0300
Leasable Area (sq/ft):Lot Size (sq/ft):Year Built:
Price / Land sq/ft:
Rosano Partners // Offering Memorandum 1768718 Perez Rd., Cathedral City, CA 92234
Financial Analysis / Rent Roll
Approx. Lease LeaseRentable % of Commence Expiration Pro Forma Pro Forma Pro Forma
Suite Tenants Sq. Ft. Prop (Mo/Yr) (Mo/Yr) Rent Rent/SqFt Lease TypeA Cultivation Warehouse 5,102 100% TBD TBD $20,408 $4.00 NNN
MONTHLY TOTALS: 5,102 100% $20,408 $2,588
Vacant 0.0% $20,408 NNN $2,587.50
Occupied 100.0% $244,896 NNN $31,050
Current Dollar Vacancy: $0
% Vacancy from Total Rent: 0.0%
*Pro forma rents based on 60% of stabilized rents achieved for cultivation facilities in Colorado
RENT ROLL68718 PEREZ RD
Cathedral City, CA 92234
Total Monthly Rent:
Total Annual Rent:
This information deemed to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risks
Rosano Partners // Offering Memorandum 18
68718 Perez Rd.Cathedral City, CA 92234
Demographics
Rosano Partners // Offering Memorandum 1968718 Perez Rd., Cathedral City, CA 92234
Demographics / Traffic Report
-0%0 SF4,489 SF5,102 SF-Specialty
Rent/SF/Mo:% Leased:
Total Available:Typical Floor:
RBA:Class:
Building Type:
Street Cross Street Cross Str DistCountYear
Avg DailyVolume
VolumeType
Miles fromSubject Prop
1 Perez Rd Plaza Dr 0.06 E 2014 7,171 MPSI .122 Perez Rd Cathedral Canyon Dr 0.03 W 2014 5,016 MPSI .193 Cathedral Canyon Dr Perez Rd 0.07 N 2014 7,534 MPSI .234 Cathedral Canyon Dr Kieley Rd 0.03 N 2014 13,492 MPSI .245 Perez Rd Cathedral Canyon Dr 0.03 E 2014 6,880 MPSI .256 Campbell St Perez Rd 0.02 NW 2010 10,421 MPSI .257 Date Palm Dr Perez Rd 0.11 S 2014 10,156 MPSI .298 Cathedral Canyon Dr 5th St 0.02 N 2014 5,372 MPSI .299 Perez Rd Cathedral Canyon Dr 0.07 E 2014 4,465 MPSI .30
10 Date Palm Dr Gerald Ford Dr 0.04 N 2014 12,408 MPSI .30
Traffic Count Report
68718 Perez Rd, Cathedral City, CA 92234
Copyrighted report licensed to Rosano Partners - 88674.8/29/2016
Page 1
-0%0 SF4,489 SF5,102 SF-Specialty
Rent/SF/Mo:% Leased:
Total Available:Typical Floor:
RBA:Class:
Building Type:
Street Cross Street Cross Str DistCountYear
Avg DailyVolume
VolumeType
Miles fromSubject Prop
1 Perez Rd Plaza Dr 0.06 E 2014 7,171 MPSI .122 Perez Rd Cathedral Canyon Dr 0.03 W 2014 5,016 MPSI .193 Cathedral Canyon Dr Perez Rd 0.07 N 2014 7,534 MPSI .234 Cathedral Canyon Dr Kieley Rd 0.03 N 2014 13,492 MPSI .245 Perez Rd Cathedral Canyon Dr 0.03 E 2014 6,880 MPSI .256 Campbell St Perez Rd 0.02 NW 2010 10,421 MPSI .257 Date Palm Dr Perez Rd 0.11 S 2014 10,156 MPSI .298 Cathedral Canyon Dr 5th St 0.02 N 2014 5,372 MPSI .299 Perez Rd Cathedral Canyon Dr 0.07 E 2014 4,465 MPSI .30
10 Date Palm Dr Gerald Ford Dr 0.04 N 2014 12,408 MPSI .30
Traffic Count Report
68718 Perez Rd, Cathedral City, CA 92234
Copyrighted report licensed to Rosano Partners - 88674.8/29/2016
Page 1
Rosano Partners // Offering Memorandum 2068718 Perez Rd., Cathedral City, CA 92234
Demographics / Market Comparison Report
15.09%
7.21%
4.27%
3.18%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
2010 - 2015 2015 - 2020
Population Growth
1 Mile
County
12.92%
6.92%
4.25% 3.21%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
2010 - 2015 2015 - 2020
Household Growth
1 Mile
County
Rosano Partners // Offering Memorandum 2168718 Perez Rd., Cathedral City, CA 92234
Demographics / Market Comparison Report
$35,247
$57,172
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
1 Mile County
2016 Med Household Inc
1 Mile
County
56.7
36
0
10
20
30
40
50
60
1 Mile County
2016 Med Age
1 Mile
County
Rosano Partners // Offering Memorandum 2268718 Perez Rd., Cathedral City, CA 92234
Demographics / Market Comparison Report
36.36%
30.50%
14.31%
10.00%
3.00% 2.00% 2.08% 2.04%
22.86% 21.98%
16.47%
12.00%
8.00%5.00% 6.31% 7.29%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
<$25K $25K - $50K $50K - $75K $75K - $100K $100K - $125K $125K - $150K $150K - $200K $200K +
2016 Households by Household Income
1 Mile
County
91.98%
3.01% 0.89% 1.80% 0.16% 2.16%
71.29%
9.17%1.48%
14.77%
0.38% 2.92%0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other
2016 Population by Race
1 Mile
County
Rosano Partners // Offering Memorandum 2368718 Perez Rd., Cathedral City, CA 92234
Demographics / Market Comparison Report
2016 Employed vs Unemployed
2016 Renter vs Owner
93.15%
6.85%
County
Employed
Unemployed
92.68%
7.32%
1 Mile
Employed
Unemployed
66.76%
33.24%
1 Mile
Rent
Own 52.45%
47.55%
County
Rent
Own
68718 Perez Rd.Cathedral City, CA 92234
Presented by:Korena EllisSenior AssociateInvestment Sales Group
BRE: 01430539
D: 213.802.0238M: 323.821.9441E: [email protected]
George CornelsonSpecialistInvestment Sales Group
D: 213-802-0328M: 704-975-4652E: [email protected]
Rosano PartnersLos Angeles Office700 S. Flower St, Suite 2526Los Angeles, CA 90017www.RosanoPartners.com
The information contained in this presentation is confidential, furnished solely for the purpose of a review by a prospective purchaser of the Property, and is not to be used for any other purpose or made available to any other person without the express written consent of the Seller or Advisor. Prospective purchasers should also conduct their own due diligence, including, but not limited to, engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property or used in the construction of maintenance of the building(s) at the Property.