investment offering - loopnet › d2 › sgl3hyywxn_f4zegs-g9t8... · 2017-07-14 · investment...

INVESTMENT OFFERING

Exclusively Marketed by

KETO INDUSTRIAL BUILDINGS

988 South 3200 WestSalt Lake City, Utah

Kip PaulExecutive Director - Investment Sales

[email protected]

Camron CarpenterDirector

[email protected]

May 2017

2

KETO INDUSTRIAL BUILDINGSINVESTMENT OFFERING

Cushman & Wakefield Copyright 2016. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

Independently Owned and Operated / A Member of the Cushman & Wakefield Alliance

ADDITIONAL INFORMATION FOR DOWNLOAD Click to Download

County Tax Data

Demographics

TABLE OF CONTENTS (Click Below to Skip to Section)

EXECUTIVE SUMMARY 3Overview and Opportunity 4Investment Summary 5

FINANCIAL ANALYSIS 6Proforma Operating Statement & Transaction Structure 7

TENANCY INFORMATION 8Lease Abstract 9Tenant Profile 10

PROPERTY DESCRIPTION 11Basic Construction Components 12Aerial Maps 13

SINGLE-TENANT INDUSTRIAL INVESTMENT SALE COMPARABLES 14

LOCATION AND MARKET 15Salt Lake City Area and The State of Utah 16Salt Lake County Industrial Market 20

http://www2.comre.com/flyers/kpaul/2016FlyersAndPackages/KETOIndustrialBuildings_InvestmentOffering/KETO-CountyTaxData.pdf

http://www2.comre.com/flyers/kpaul/2016FlyersAndPackages/KETOIndustrialBuildings_InvestmentOffering/KETO-Demographics.pdf

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EXECUTIVE SUMMARY

Overview and Opportunity

Investment Summary

4


OVERVIEW AND OPPORTUNITYThis Investment Offering provides the opportunity to acquire the KETO Pumps Industrial Complex located in Salt Lake City, Utah. This single-tenant, two-building, 42,328 square foot facility is located in the center of Salt Lake City’s industrial zone with 4 minute access to both the I-215 and I-80 Freeways. There are 12 1/2 years remaining on the 15 year initial lease term with annual 3% escalations. KETO, headquartered in Australia, is a worldwide mining and pump system provider, with offices in South Africa, Botswana, Canada, United Kingdom and the US. RPM Services, previously with three locations; Utah, Arizona and California, was acquired by KETO in 2014. RPM now operates as a wholly owned subsidiary of KETO.

The two building project is situated on three parcels totaling 6.7 acres, with approximately 3.93 acres being excess land. This excess land is currently utilized for outdoor storage and vehicle/trailer parking, and also provides the ability to construct additional buildings or additional square footage.

Highlights include:

• 12 1/2 years remaining in lease term

• 3% annual escalations

• Credit-worthy tenant owned by international group

• Market lease rate

• Approximately 3.93 acres of excess land for outdoor storage or future building expansion

• M-1 zoning provides numerous flexible uses

The KETO property is a unique opportunity to acquire an industrial investment property in one of the most dynamic commercial real estate markets in the western US.

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INVESTMENT SUMMARY

Name: KETO Industrial Buildings

Address: 988 South 3200 WestSalt Lake City, Utah

Building Size: Building 1: 27,328 sq. ft.Building 2: 15,000 sq. ft.Total: 42,328 sq. ft.

Office Space: The office area is located in the larger building and is 4,600 sq. ft. of office, consisting of 9 offices and 2 conference rooms with views onto the production warehouse

Power: 3 phase with 3 lines of power running into the premises–currently providing 2,000 amps/480 Volt 3 phase power which can be expanded or adjusted as needed

Ceiling Height: 18’-22’ in both buildings

Ground Level Doors: Warehouse (smaller) Building: (1) 14’ x 18’Main Building: (6) 14’ x 16’

Parcel Size: 15-08-276-0007: 2.03 acres15-08-426-007: 0.14 acres15-08-426-008: 4.53 acresTotal: 6.70 acres

Age: 1998/2006

Zoning: M-1

Debt: No existing debt

Lease Rate: $0.58 psf (includes 3.93 acres of excess land)

Current NOI: $281,192

Sales Price: $4,686,000

Cap Rate: 6%

6


FINANCIAL ANALYSIS

Proforma Operating Statement & Transaction Structure

7


PROFORMA OPERATING STATEMENT & TRANSACTION STRUCTURE

Income Annual

Base Rent $ 295,991

Expenses

Estimated Reserves (5%)(Structural, Roof, HVAC, Electrical, Plumbing, Asphalt)

$ 14,799

Net Operating Income $ 281,192

Transaction Structure

Sales Price at 6.0% Cap Rate $ 4,686,000

Equity Requirement - 25% $ 1,172,000

New Debt - 4.00%, 30/10 $ 3,514,000

Net Operating Income $ 281,192

Debt Service (proforma 4.00%, 30/10) $ 201,316

Cash Flow $ 79,876

Cash on Cash Return 6.82%

8


TENANCY INFORMATION

Lease Abstract

Tenant Profile

9


LEASE ABSTRACT

Landlord: Meyer Brothers Properties

Name of Tenant: KETO Pumps, Inc.

Address: 988 South 3200 WestSalt Lake City, Utah

Sq. Ft. Building 1: 27,328 sq. ft.Building 2: 15,000 sq. ft.Total: 42,328 sq. ft.

Lease Type: NN

Lease Dated: 09/2014 (approx.)

Commencement Date:

11/01/2014

Expiration Date: 10/31/2029

Initial Term: 15 years (12 1/2 years remaining)

Starting Rent: $23,250.00

Current Base Rent: $24,665.93 (11/01/2016)

CAM, Taxes & Insurance:

Tenant reimburses owner for taxes and insurance

Security Deposit: None

Lease Rate: $0.58 psf/month; $6.99 psf/year(includes 3.93 acres of excess unimproved land)

Options: 1-5 yr option

Escalations:(3% annually)

11/01/2016: $24,665.93 (year 3)11/01/2017: $25,405.90 (year 4)11/01/2018: $26,168.08 (year 5)11/01/2019: $26,953.12 (year 6)11/01/2020: $27,761.72 (year 7)11/01/2021: $28,594.57 (year 8)11/01/2022: $29,452.40 (year 9)11/01/2023: $30,335.98 (year 10)11/01/2024: $31,246.06 (year 11)11/01/2025: $32,183.44 (year 12)11/01/2026: $33,148.94 (year 13)11/01/2027: $34,143.41 (year 14)11/01/2028: $35,167.71 (final year monthly rent)

Estoppel Time Frame: 10 days (Section 19.6)

Tenant Operating Expenses:

Retail Estate Taxes (Section 6.1)Insurance (Section 7.1)Utilities (Section 5.1.1/11.2)Repair/maintenance (Section 5.2/11.2)Cleaning/Janitorial (Section 5.1.1)Structural (Section 2.01)Reserves (Section 2.01)Roof (Section 2.01)

Landlord Operating Expenses:

Structural, Roof, HVAC, Electrical, Plumbing, Asphalt (Section 11.1)

Termination Ability by Tenant:

If business is sold to a new owner, the Lease allows for termination of the lease if the business or assets of the Tenant are sold to a purchaser and the purchaser does not elect to assume the current tenant’s lease obligation. The termination would be allowed with the payment of the net present value of the rent payments that would have been made during the remaining term of the then current lease term with a 5% discount rate. (Section 14.4)

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TENANT PROFILE

KETO Pumps is an international designer, manufacturer and supplier of engineered slurry pumps, solutions and associated products and services It was formed in 2012, when global engineering group Clyde Blowers Capital acquired KETO Pumps Australia, First Africa Pumps and Tri-Invest. The merger of the three companies formed KETO Pumps.

KETO Pumps’ network includes manufacturing/service/sales offices in Australia, South Africa, America and the United Kingdom com-plimented by a network of global distributors. With a comprehen-sive range of complete pumps as well as pump upgrades that offer increased wear life for arduous mine applications, reducing the cost of mining for their global customer base.

RPM Services, Inc., is the named Tenant in the current lease with 12 1/2 years remaining on the term. RPM is a wholly owned subsidiary of KETO Mining Pumps and Systems, headquartered in Australia, with offices in South Africa, Botswana, Canada, USA, and the United Kingdom. KETO Pumps is an international designer, manufacturer and supplier of engineered slurry pumps, solutions and associated products and services It was formed in 2012, when global engineering group Clyde Blowers Capital acquired KETO Pumps Australia, First Africa Pumps and Tri-Invest. The merger of the three companies formed KETO Pumps.

In December of 2014, KETO acquired 3 North American mining pump supply and service companies. These companies are RPM Services, Inc., (RPM) of Salt Lake City, Utah; Arizona Pump & Machine, Inc. (APM) of Tucson, Arizona; and Bakersfield Machine Company, Inc. (BMC) of Bakersfield, California.

www.ketopumps.com

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PROPERTY DESCRIPTION

Basic Construction Components

Aerial Maps

12


BASIC CONSTRUCTION COMPONENTS

Both buildings are steel beam and insulated metal construction with 18-20 foot clearance, steel beam trusses and multiple 16’ tall x 14’ wide GL doors

2,000 amp 480 volt power supply – 3 lines of power coming into the property can be upgraded or adjusted if needed

27,000 SF building is 18 years old; 15,000 SF building is 10 years old

4,600 SF of stacked office in main building, providing space efficiency with views into the production warehouse. 9 individual offices and 2 conference rooms.

3.93 acres of excess yard space for outside storage, parking or building expansion

The larger building contains (three) 5-ton and (two) 10-ton cranes

Compressed air lines throughout buildings

Newer roofs with skylights

Metal halide ceiling lighting

Paved yard areas are in good condition

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AERIAL MAPSClick Tabs at Right to Switch between Maps:

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SINGLE-TENANT INDUSTRIAL INVESTMENT SALE COMPARABLES

Property Name/Photo Address Size (SF)Land Size

(acres)YearBuilt

SalePrice PSF

CapRate (%)

TransactionDate Buyer Seller

KETO Industrial Bldgs - Subject

988 South 3200 WestSalt Lake City, Utah

42,328 6.70 1998/2006

$4,686,000 $110.71* 6.00 TBD TBD Meyer Brothers Properties

Tradestar

1590 S. Gladiola St.Salt Lake City, Utah

103,179 6.23 2013 $8,800,000 $85.29 6.24 02/10/2016 LBA Realty STS Properties, LLC

431 N. Neil Armstrong Road

431 N. Neil Armstrong Rd.Salt Lake City, Utah

123,074 5.10 1978 $8,850,000 $71.91 6.77 01/14/2016 NIN-CB, LC (Ninigret) Complete Packaging, LLC

Food For Health

3220 W. Professional Cir.Salt Lake City, Utah

153,296 8.67 2013 $10,400,000 $67.84 6.56 09/22/2015 Palmer Chicago Investment Co.

Food for Health International, LLC

Bakemark

805 W. 2500 S.South Salt Lake, Utah

30,176 1.00 1964 $2,156,914 $71.48 6.30 08/25/2014 Angelo Gordon CSM Bakery Products

*Includes 3.93 acres of excess land

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LOCATION AND MARKET

Salt Lake City Area and The State of Utah

Salt Lake County Industrial Market

16


SALT LAKE CITY AREA AND THE STATE OF UTAHSalt Lake City and its surrounding communities have surged in the national spotlight, dominating nearly every ranking. With affordable home prices, world-class skiing just 45 minutes away, an abundance of outdoor recreational amenities, one of the nation’s most highly educated labor pools, nationally recognized colleges and universities, and significant transportation infrastructure investments, Salt Lake City is now recognized as a major dominating force in the Western U.S.

Salt Lake City serves as the economic and employment center for the Intermountain West. Known as the “Crossroads of the West” for its central geography in the western United States, Salt Lake City plays a key role in supporting the companies conducting business throughout the region. It has developed a strong outdoor recreation tourist industry and hosts approximately 48,000 attendees of the semi-annual winter and summer conventions of the Outdoor Industry Association. Salt Lake City is a major U.S. banking center, with American Express, Centurion Bank and UBS Bank USA, among many others, calling the region home. The University of Utah, located east of downtown, is also a powerful incubator of biotechnology companies. With key facilities including Salt Lake City International Airport, the Rockefeller Group’s Foreign Trade Zone, and Union Pacific’s Intermodal Terminal, Salt Lake City is considered a notable transportation hub. Fortune 500 companies with a major presence in Salt Lake City include Huntsman Corporation (HQ), Delta Airlines, L-3 Communications, Goldman Sachs, Intercontinental Hotels Group, HG Healthcare Services, and Keycorp.

Utah continues to build a foundation for stronger economic growth. In almost every major category our state is performing well. We’re innovative, forward-thinking and we have business-friendly policies that boost our economy. Our economic rebound is forecast to continue its pace through 2015 and beyond. Job creation and job sustainability are critical for the continued expansion of Utah’s economy. Between 2010 and 2015, our state added approximately 160,000 new jobs and the number of statewide jobs now exceeds pre-recession levels. The U.S. Chamber of Commerce recently ranked Utah fourth overall for innovation and entrepreneurship. Utah was also just named The Best State for Business in 2016 by CNBC. The fruits of visionary planning and prudent investment are making an impact. In addition to the excellent business climate, Utah is also gaining a reputation as a volunteer state and was ranked first in the nation for volunteerism.

Salt Lake County’s Largest EmployersCompany Employees IndustryUniversity of Utah 20,000+ Education & HealthcareIntermountain Medical Center 5,000-6,999 HealthcareSalt Lake County 5,000-6,999 GovernmentL-3 Communications 4,000-4,999 ManufacturingARUP Laboratories 2,000-2,999 Healthcare ServicesDelta Airlines 2,000-2,999 TransportationDiscover Products 2,000-2,999 Finance and InsuranceJetblue Airways 2,000-2,999 TransportationRio Tinto Kennecott 2,000-2,999 MiningVeterans Administration Hospital 2,000-2,999 HealthcareAmerican Express 1,000-1,999 Finance and InsuranceC.R. England, Inc. 1,000-1,999 TransportationEbay, Inc. 1,000-1,999 Retail TradeFidelity Brokerage Services, Inc. 1,000-1,999 Finance and InsuranceGoldman Sachs 1,000-1,999 Finance and Insurance

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Doing Business in Salt Lake City & Utah

• Utah is 1st for Projected Annual Job Growth through 2017 IHS Global Insight

• Top State for Business 2016 CNBC

• 1st for Best State for Business, 2010-12 & ‘14 Forbes Magazine

• 1st for Competitive Environment 2008-12 Rich States, Poor States–ALEC-Laffer

• 4th State Overall for Innovation and Entrepreneurship, 2013 U.S. Chamber of Commerce

• 1st for Technology Concentration and Dynamism, 2008-2012 Milken Institute

• Best Pro-Business State, 2012-15 Pollina Report

• In the Top 3 States for Business Climate, 2011-13 Business Facilities

• 3rd Best State for Infrastructure, 2014 Enterprising States

• 3rd Best State for Economic Performance, 2014 Enterprising States

• 5th Most Competitive State, 2012 Beacon Hill Institute

• Salt Lake City among 15 best cities to do business globally Fortune•

• Salt Lake City is the nation’s 6th Best Performing city, 2014 Milken Institute

• SLC Ranked as 3rd Best City for Jobs, 2013 Forbes

SALT LAKE CITY AREA AND THE STATE OF UTAH (continued)

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SLC - 2nd Best City for Public Transportation - 2011

USNews.com

Technology

• Utah is currently home to 7,000 technology companies

• These companies employ 140,000 people and pay salaries almost 85 percent higher than the statewide average

• USTAR (Utah Science Technology and Research initiative) is currently fueling more than 100 new technologies at 10 higher education institutions. The University of Utah is consistently ranked in the top two in the nation for start-up companies

• 18 USTAR research teams are making international breakthroughs in energy, nanotechnology, digital imaging, biomedical devices, neuroscience and more

Transportation

• 70 Miles of Rail in Five Years: - 4 new TRAX lines, including service to the Airport, which began April 2013 - Draper TRAX line opened August 2013 - Sugar House S-Line opened Dec. 2013 - FrontRunner Salt Lake to Provo and Ogden

• $4.2 billion in highways in four years - I-15 Utah County - Mountain View Corridor - Southern Parkway (St. George)

• Salt Lake City International Airport - Direct flights to Paris, Amsterdam, and London - 22.2 million passengers in 2015 - 27th busiest airport in North America - Serves as a hub for Delta Airlines

Tourism

• Annual traveler spending in Utah is in excess of $7 billion

• An estimated 23.5 million tourism visits each year

• Approximately 129,000 people in Utah are employed in travel and tourism related industries

• In 2013, 9 million visits were made to Utah’s five national parks and national recreation areas

• 5 million visitors enjoyed Utah’s 43 state parks in 2013

• Utah’s 14 ski resorts attracted 4.1 million skier days during the 2013-14 season—the 3rd busiest ski season in state history

• For every $1 invested in advertising, the average 2012 ROI in tax dollars to the state was $3.21

1 of 2 States to Receive Grade A for Most Tech-Savvy States, 2010-12Center for Digital Government

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Additional National Recognition

Utah is America’s Top State for Business in 2016 CNBC, July 2016How sweet it is! Utah, known as the Beehive State because its people are so industrious, proves its point with a convincing win in our 10th annual Top States for Business ranking. In many ways, this is the culmination of a decade of hard work by the people and businesses of Utah, developing

innovative industries, a skilled workforce and a critical mass of companies big and small that is now rivaling Silicon Valley.

Click here to read the entire story

1st for Economic Outlook, 2008-15 ALEC-Laffer, Rich States Poor States

Best State for Future Livability, 2012 Gallup Healthways Well-Being Index

State of the Year, 2011 Business Facilities

1st for Energy Cost Index, 2011 Small Business & Entrepreneurship Council

1st for Economic Dynamism, 2010 Kauffman Foundation

2nd for The Next Boom States, 2012 U.S. Chamber of Commerce

2nd for Job Growth, 2012 U.S. Bureau of Labor Statistics

2nd for Happiest Cities for Job-Seeking College Grads, 2012 Forbes & CareerBliss.com

Salt Lake City is 2nd Best City for Public Transportaion, 2011 USNews.com

One of Only 9 States to Maintain AAA Bond Rating

1 of 2 States to Receive Grade A for Most Tech-Savvy States, 2010-12 Center for Digital Government

5th Most Peaceful State, 2012 Institute for Economics and Peace; 24/7 Wall St.

2nd Most Livable State, 2010-11 CQ Press

Three Utah Cities in the Top 50, 2013 CNN Money

Utah Ski Resorts Rated as the Best in the Nation - Eight of Utah’s 14 ski resorts rank in the Top 30 Resorts, 2013 Ski Magazine

1st for Volunteerism, 2010-11 The Corporation for National and Community Service

Four Utah Cities in the Top Places to Live in the U.S., 2011 Relocate America

Lowest Percentage of Adult and Youth Smokers in the Nation, 2011 Centers for Disease Control and Prevention

Salt Lake City Ranked 5th Best City for Next Decade, 2010 Kiplinger

3rd Top Geothermal Power Generation Leaders, 2010 Business Facilities

Salt Lake City is #15 of Top 25 Arts Destination-Midsize Cities, 2012 AmericanStyle

Salt Lake City 4th Best City for Technology Jobs, 2012 Forbes

10th Best State in Job Growth, 2012 ASU Report

3rd Top Export State, 2013-14 Enterprising States

4th State in Entrepreneurship and Innovation, 2013-14 Enterprising States

Most Fiscally-Fit State, 2010 Forbes

Salt Lake City - Best Commuter City, 2010 Forbes


http://www.cnbc.com/2016/07/12/utah-is-americas-top-state-for-business-in-2016.html

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Salt Lake City’s unemployment rate con-tinued to drop, settling well below the national average to 2.9%. Job growth remained strong as roughly 26,000 jobs were added within the Salt Lake metro-politan area alone. Additionally, growth rates within the manufacturing, wholesale trade, and transportation/warehousing/ utilities employment sectors were all above the overall average growth rate of 3.1%. Lastly, consumer confidence in Utah sur-passed 123 points during March, a new all-time high.

The overall availability rate fell to 6.1% during Q1 2017, down one full percentage point year-over-year. This was the result of strong absorption activity which reached nearly 1.4 million square feet (MSF), the highest Q1 total since 2013 and more than three times the absorption activity achieved in Q1 2016. Additionally, leasing and sales activity surpassed 1 MSF combined during Q1, which also marked the highest total recorded since 2013. Asking rates remained fairly steady at $0.44 PSF per month NNN.

438,000 SF of industrial space reached completion during Q1 2017, adding a steady mix of distribution and flex properties to the market. The Southeast quadrant, in particular, continued to expand with more than 174,000 SF of speculative warehouse/distribution product added, all within Draper. The amount of construction left ongoing is substantial, surpassing 2.7 MSF. The majority of these remaining projects are big-box distribution buildings being constructed within the Northwest quadrant. It is notable that the market does appear to be correcting itself after a recent period of near-historic growth. Projects are beginning to take longer to complete as developers wait for significant pre-leasing to occur on their pads prior to following through on construction.

ECONOMIC INDICATORS

Q1 16 Q1 1712 MonthForecast

Salt Lake Employment 687k 713k

Salt Lake Unemployment 3.1% 2.9%

U.S. Unemployment 4.9% 4.8%

MARKET INDICATORS

Q1 16 Q1 1712 MonthForecast

Overall Vacancy 7.1% 6.1%

Net Absorption (SF) 411k 1.4M

Under Construction (SF) 2.9M 2.7M

Average Asking Rent (psf) $0.43 $0.44

Economic Overview Market Overview

NET ABSORPTION/ASKING RENT 4Q TRAILING AVERAGE

Net Absorption (SF) Asking Rent ($PSF)

$0.40

$0.42

$0.44

$0.46

$0.48

0

200,000

400,000

600,000

800,000

1,000,000

2011 2012 2013 2014 2015 2016 2017

SALT LAKE COUNTY INDUSTRIAL MARKET

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OUTLOOK

Salt Lake’s industrial market is poised for another noteworthy year. Absorption activity, which started strong, is expected to build steadily throughout 2017. Construction completions are projected to surpass 1.5 MSF for the third straight year but development activity may taper towards the end of 2017 and into 2018. On the other hand, a tempering of construction activity is likely to compress vacancy rates across the market and perhaps even drive a slight uptick in asking rents. National trends remain favorable to industrial growth as the surge of e-commerce drives retailers to invest in distribution facilities across all markets in order to be closer to consumers.

SALT LAKE COUNTY INDUSTRIAL MARKET (continued)OVERALL VACANCY

4%

6%

5%

7%

9%

8%

10%

2011 2012 2013 2014 2015 20172016

Historical Average = 7.8%

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SubmarketInventory

(SF)

YTD LeasingActivity

(SF)

YTD UserSales

Activity(SF)

DirectVacancy

Rate

OverallAvailability

Rate

YTDOverall NetAbsorption

(SF)

UnderConstruction

(SF)

OverallWeighted

Avg Net Rent (Manufacturing)

OverallWeighted

Avg Net Rent(Office/Flex)

OverallWeighted

Avg Net Rent (Wholesale/Dist.)

OverallWeighted

Avg Net Rent (Overall)

Central East 5,037,527 3,240 58,125 1.8% 3.5% 59,183 0 NA $0.75 $0.53 $0.60

Central West 15,174,809 65,945 50,406 1.4% 5.1% 346,251 0 NA $0.62 $0.54 $0.58

Northeast 5,489,532 0 16,676 0.5% 1.1% (8,018) 0 NA $0.65 $0.62 $0.63

Northwest 89,869,578 417,186 294,677 5.5% 7.2% 1,105,179 2,609,789 $0.39 $0.62 $0.40 $0.42

Southeast 2,492,801 75,562 0 1.3% 1.6% 185,786 113,117 NA $0.55 $0.65 $0.57

Southwest 7,666,941 87,511 0 2.1% 2.3% 97,540 0 $0.43 $0.59 $0.57 $0.54

Size Increments

0 to 5,000 SF 887,649 41,243 0 1.3% 1.8% 14,259 0 NA $0.66 $0.54 $0.63

5,001 to 20,000 SF 16,142,173 117,258 97,507 2.6% 3.1% 266,429 14,353 $0.43 $0.61 $0.50 $0.54

20,001 to 50,000 SF 25,833,121 283,813 114,357 3.1% 5.4% 423,702 33,876 $0.47 $0.57 $0.51 $0.52

50,001 to 100,000 SF 20,943,142 207,130 63,700 3.3% 4.9% 238,776 368,497 $0.29 $0.59 $0.44 $0.48

100,001 SF and Above 61,925,103 0 144,320 5.6% 7.7% 842,755 2,306,180 $0.31 NA $0.40 $0.38

Totals/Averages 125,731,188 649,444 419,884 4.3% 6.1% 1,785,921 2,722,906 $0.40 $0.60 $0.42 $0.44

TypeTotal

BuildingsInventory

(SF)

YTD UserLease

Activity(SF)

YTD UserSales

Activity(SF)

OverallAvailability

Rate

YTDOverall NetAbsorption

(SF)

UnderConstruction

(SF)

OverallWeighted

Avg Net Rent(Q1 2017)

OverallWeighted

Avg Net Rent(Q1 2016)

OverallWeighted

Avg Net Rent (Q1 2015)

Warehouse/Distribution 1,688 81,410,603 478,984 296,014 6.0% 791,778 2,674,677 $0.42 $0.42 $0.39

Manufacturing 252 18,831,617 35,580 40,198 7.5% 62,509 0 $0.40 $0.38 $0.43

Office Service/Flex 1,048 21,738,067 130,605 83,672 5.0% 463,254 48,229 $0.60 $0.59 $0.56

MARKET HIGHLIGHTS

Key Lease Transactions Q1 2017 Square Feet Tenant Transaction Type Submarket

Landmark at SLC 159,995 Alpha Plastics Renewal Northwest

Price Gladiola A 76,998 Aspen Press Company New Northwest

Arka Distribution 76,048 Updike Distribution Logistics Renewal Northwest

Willow Building 75,562 KNS International New Southeast

Key Sale Transactions Q1 2017 Square Feet Seller/Buyer Property Type Submarket

Nellson 144,320 ADCOMP, LLC / P. Radman, JL Radman $11,300,000/ $79 Northwest

Wright Brothers Plaza #4 87,535 B.H.Management Inc. / WestcoreII $7,150,000 / $82 Northwest

SALT LAKE COUNTY INDUSTRIAL MARKET (continued)

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ADDITIONAL INFORMATION FOR DOWNLOAD (Click Links Below to View or Download)

County Tax Data

Demographics

http://www2.comre.com/flyers/kpaul/2016FlyersAndPackages/KETOIndustrialBuildings_InvestmentOffering/KETO-CountyTaxData.pdf

http://www2.comre.com/flyers/kpaul/2016FlyersAndPackages/KETOIndustrialBuildings_InvestmentOffering/KETO-Demographics.pdf

investment offering - loopnet › d2 › sgl3hyywxn_f4zegs-g9t8... · 2017-07-14 · investment...

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