jerome retail center package final€¦ · darigold’s jerome, idaho plant is their newest...

JEROME RETAIL CENTER124-128 E Yakima St, Jerome, ID 83338

CONTACT

Raymond DuchekInvestment Broker

[email protected]

120 2nd Avenue North, Suite 206 | PO Box 4380, Ketchum, ID 83340 | (208) 726-6560

JEROME RETAIL CENTER / 2

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INVESTMENT HIGHLIGHTS

JEROME OVERVIEW

MAJOR TENANTS

BUSINESS INCENTIVES

FINANCIAL OVERVIEW


INVESTMENT HIGHLIGHTS

100% Occupied

Strong occupancy history in Center - Dollar Tree tenant since 2005

Ease of management. All tenant leases are Triple Net (NNN) structure, allowing for pass through of operating expenses

National tenant shadow anchors, including Walmart, McDonald’s, O’Reilly Autoparts, Burger King & Taco Bell

Priced below replacement cost

Separate tax lots - Dollar Tree and the multi-tenant building are on different tax lots, providing flexible disposition strategies

Sale Price $2,510,000

Land Area 1.28 Acres

Leaseable Area 16,199 SF

Price Per SF $154.95

Cap Rate 6.72%

Year Built 2005

PROPERTY SUMMARY


Jerome, Idaho is a community as rich in diversity as the landscapes that surround it. With more than 23,000 people in the greater Jerome area (includes Jerome County), the City continues to grow and expand in terms of both its size and economy. Jerome has seen consistent, increased growth over the last ten years with a growth rate of 34%. The building department has seen more requests for residential and commercial buildings for both professional and retail development. Even with relatively low unemployment, Jerome is seeing continued business growth.

With many businesses considering Jerome for future location and the wide variety of new housing opportunities, it is projected that the City’s population will reach 17,500 by the year 2020. Jerome is an attractive location for prospective businesses and families. Businesses are attracted to Jerome because of the stability of existing,well-established businesses, convenient transportation systems, the quality of prospective employees and the cooperation they receive from local organizations, and government. Families are attracted to Jerome because of its way-of-life, friendly residents, services, education systems, lower than average crime rates, and our small town way of life. Jerome’s economic base remains dependent on agriculture and value-added agriculture products and commodities. The City of Jerome has been working diligently with different groups in the region to expand economic base and become less dependent on a single sector.

JEROME OVERVIEW

IDAHO HAS THE 3rd FASTESTGROWING POPULATIONIN THE UNITED STATES

1stFASTEST JOB GROWTHIN THE UNITED STATES

NEW JOBS IN IDAHO

93,000

REPLACED 60,000 LOST DURING THE RECESSION

POPULATION

11,317AVG MEDIAN INCOME

$38,427UNEMPLOYMENT RATE

3.2%

MEDIAN AGE : 30

Health Care & Social Services

Manufacturing

POPULATION DEMOGRAPHIC

0-19 Years Old

20-39 Years Old

40-64 Years Old

65+ Years Old

33.6%25.8%

28.3%12.3%

Retail

Public Administration

TOP INDUSTRIES IN JEROME

Sources: commerce.idaho.gov, ci.jerome.id.us, city-data.com/city/Jerome-Idaho.html


JEROME OVERVIEW

JEROMEPOCATELLO

SALT LAKE CITY

BOISE 118 miles 1 hr 40 min

223 miles 3 hrs 7 min

118 miles 1 hr 40 min

Interstate 84 is the main artery of commerce across the State of Idaho, linking the Midwest and Eastern United States with the Pacifi c Northwest. Exits along all interstates have become hubs of economic acti vity for the local communiti es, increasing job growth and improving ameniti es to rural areas. Along with the interstate, Jerome is a corridor for thousands of recreati onists en route to Sun Valley for skiing, hiking, and other outdoor opportuniti es.

Source: ci.jerome.id.us

TWIN FALLS POP: 47,400

12.1 miles19 min

POCATELLO POP: 54,746

118 miles1 hr 40 min

MOUNTAIN HOME POP: 13,840

73 miles1 hr 5 min

NEARBY CITIES


JEROME, IDAHO

Interstate 84 is the main artery of commerce across the State of Idaho, linking the Midwest and Eastern United States with the Pacifi c Northwest.

E YAKIMA AVE

S LI

NCO

LN A

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NCO

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SUBJECT PROPERTY

LARGEST BUSINESSES IN JEROME

Novolex’s Hilex Poly® brand is the industry’s leading manufacturer of plastic retail bags, produce bags and other customer experience focused systems.

WOW-Jerome is a multi-temperature facility with ambient (dry) and refrigerated (cooler) warehousing storage areas, as well as a USDA approved cheese grading room.

Idaho Milk Products operates an immense 220,000 square foot facility where 1.1 billion pounds of raw milk becomes the world’s freshest selection of dairy ingredients.

Darigold’s Jerome, Idaho plant is their newest facility and produces some of the highest quality milk protein powders in the US.

Based in Jerome, Idaho, Rite Stuff Foods is the leading specialty potato product manufacturer in the United States.


PHOTOS


MAJOR TENANTS

#14 on Fortune 500 list23 years on the Fortune 500 list

$125 billion revenue in 2016

Ranked #32 on the Global 500 list

160,900+ employees


$20 billion revenue in 2016200% increase in profi t over the last year

116,000+ employees

The largest carry-out pizza chain in America

Restaurants in 21 countries

Named “Best Value in America” for the ninth year in a row

One of the fastest growing pizza chains in the world


$22,661,640,000 in Assets$8.8 billion revenue in 2016

#87 on Fortune 500 list of 2016 (Note: would have been #87 on 2017 list too but Soft Bank of Japan acquired 80 percent ownership)

$33.3 billion revenue in 2016

4,700+ locati ons19 locati ons in Idaho

59.7 million customers


$76.1 billion revenue in 2016

Ranked #85 on Global 500 list

68,000+ employees

Operati ng since 1994

53 stores throughout the Pacifi c Northwest


BUSINESS INCENTIVES

Idaho Tax Reimbursement IncentiveA performance-based incentive, which features a tax credit of up to 30% for up to 15 years on new state tax revenues generated by companies seeking to expand in or relocate to the state of Idaho by adding new, qualifying jobs.

3% Investment Tax CreditInvestment tax credit on all new depreciable, tangible, personal property (machinery and equipment) used in Idaho.

Idaho Opportunity FundDoes your community need infrastructure improve-ments to attract or accommodate a new commercial or industrial facility? Funding is allotted at the discretion of the Idaho Commerce director.

Property Tax ExemptionIf your business invests $3 million in new manufacturing facilities, you may qualify for a full or partial property tax exemption for up to five years.

Idaho Business AdvantageIf your business invests at least $500,000 in new facilities and creates at least 10 new jobs averaging $40,000 a year with benefits, you may qualify for a wide package of incentives, including tax credits, sales tax rebates, and property tax exemptions.

Workforce Development Training ReimbursementsBusinesses can receive up to $3,000 in cash reimbursements for the training of full-time, new employees or for helping retain employees facing permanent layoff.


FINANCIALS

Price: $2,510,000Cap Rate: 6.72%Price Per Square Foot: $154.95

ANNUAL

Scheduled Income

Occupied Space 184,296$

Plus: Expense Reimbursement 61,592$

Less: Vacancy @ 3% 7,377$

GROSS OPERATING INCOME 238,511$

EXPENSES (Based on average of last two years)

Accounting Legal 3,890$

Property Taxes for 2016 - 2017 37,285$

Building Insurance 3,500$

Repairs & Maintenance 13,990$

Utilities 9,500$

Capital Expense Reserve @ $0.10 per SF 1,620$

Total Operating Expenses 69,785$

NET OPERATING INCOME 168,726$

Norris & Stevens makes no representation as to the accuracy or completeness of any and all enclosed financial projections. By receipt of this package, prospective buyers acknowledge their responsibility. Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction.

Net Operating Income Analysis


FINANCIALS

COMMENTS

Tenant Name Suite Size % of Space OccupancyDate

Lease Expiration

Monthly BaseRent

Annual BaseRent*

Rent/SF/YRDate of Increase

Increase Amount

Annual Reimbursements

124 East Yakima Street

Little Caesar's 1 A 1,200 7% 6/1/06 5/30/21 $1,826 $21,912 $18.26 Annual 3% $4,920• Tenant responsible for all utilities (electric, gas, water, sewer, and garbage)• Exclusive Right: Restricted Use for other tenants

Sprint 2 B 1,080 7% 2/1/16 2/1/21 $1,200 $14,400 $13.33 $4,428

• Tenant's continued obligation to lease contingent upon Tenant's continued status as a "Preferred Sprint Retailer" or if Sprint discontinues Tenant's right to represent and sell Sprint products

Tobacco Connection C 1,167 7% 10/21/08 12/1/18 $1,400 $16,800 $14.40 $4,784 • Tenant responsible for all utilities (electric, water, sewer, garbage, and other similar utilites)

American Family Insurance D 1,040 6% 9/1/11 9/1/21 $1,300 $15,600 $18.80 $4,264 • One option to extend for five (5) years

State Farm Insurance 3 E 832 5% 9/1/06 12/31/19 $1,006 $12,072 $14.51 $3,411 • One option to extend for three (3) years

Verizon 4 F 800 5% 10/1/13 9/30/18 $1,066 $12,792 $15.99 $3,280 • One option to extend for three (3) years

124 East Yakima Street Total: 6,119 38% $7,798 $93,576 $15.29 $25,087

128 East Yakima Street

Dollar Tree Stores, Inc. n/a 10,080 62% 6/1/06 4/30/21 $7,560 $90,720 $9.00 $36,505

• Tenant responsible for all utilities (electric, gas, water, sewer, telephone, and garbage)• One option to extend for five (5) years• Exclusive Right: Restricted Use for other tenants

128 East Yakima Street Total: 10,080 62% $7,560 $90,720 $9.00 $36,505

Totals: 16,199 100% $15,358 $184,296 $11.38 $61,592

Rent Roll based on September 1, 2017 - August 31, 2018

1 Lease assigned to ELCEE, Inc., a franchise of Little Caesar's

2 Lease assigned to Evolution in Wireless, Corporate Store, a Preferred Sprint Retailer

3 Lease assigned to Collin Sharp, a Licensed Agent of State Farm Insurance

4 Lease assigned to GoWireless, Inc., an authorized Verizon Retailer*Annual Base Rent reflects rent for 9/1/17-8/31/18, including increases

^Sq. Ft. Approximate

Note: Ownership does not currently charge Management fees. Leases allow for Management fees, except for Dollar Tree Stores, Inc. and Sprint.

CURRENT RENT RENT INCREASELEASE TERMS

Norris & Stevens makes no representation as to the accuracy or completeness of any and all enclosed financial projections. By receipt of this package, prospective buyers acknowledge their responsibility. Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction.

TENANT INFO

jerome retail center package final€¦ · darigold’s jerome, idaho plant is their newest...

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