parc place medical office building · 2018-09-10 · parc place medical office building owner /...

Medical Office BuildingParc Place

OWNER / USER OPPORTUNITY SINGLE-STORY MEDICAL BUILDING

5876 South Pecos Road, Las Vegas, NV 89120

Alexia Crowley, CCIM, LEED GASenior Associate +1 702 836 [email protected]

Chris ConnellVice President +1 702 836 [email protected]

±6,800 SF $1,200,000

FOR SALE

VIRTUAL TOUR

https://virtualistic3d.com/virtual-tour/5876-south-pecos-rd-las-vegasnv-89120/skinned/

RARE OPPORTUNITY to own a ±6,800 SF single-story medical office building.

This facility is built-out medical with a large built-in reception area, large nurse’s station, one (1) wet

procedure room with operating room light in place, thirteen (13) wet exam rooms, five (5) dry exam

rooms, one (1) Physician office with private restroom, recovery bay, two (2) storage rooms and IT

closet. This facility is an ideal purchase for an owner/operator looking to take over virtually turn-key

medical office space with minimal modifications to the exterior/interior of the asset. This building

would be ideal for primary care, plastic/cosmetic surgeon, ENT, pain management, pediatrics and

many more. Excellent visibility with direct frontage along S. Pecos Road.

© 2018 Colliers International. The information furnished has been obtained from sources we deem reliable and is submitted subject to errors, omissions and changes. Although Colliers Nevada, LLC has no reason to doubt its accuracy, we do not guarantee it. All information should be verified by the recipient prior to lease, purchase, exchange or execution of legal documents. Note: One or more Colliers International agents is an owner/licensee.


PROPERTY HIGHLIGHTS

• Pecos frontage with illuminated signage opportunities

• $1,200,000 ($176.47/SF) - below replacement cost

• Fully built out and equipped for general medical practice

• Efficient medical floor plan that maximizes patient, physician and staff flow

• Single story design which offers excellent curb appeal and convenient handicapped parking accessibility

• Cross easement parking throughout the park at 4.5: 1,000 ratio

• Zoned (C-P) Office and Professional

• Land: 0.58 acres

• Construction year: 1999

$1,200,000 ($176.47/SF)

below replacement cost



OWNER / USER OPPORTUNITY to own a single-story medical building

FOR SALE



PARC PLACE PROFESSIONAL PLAZA5876 South Pecos RoadLas Vegas, NV 89120

FOR LEASE

3065 South Jones Boulevard, Suite 201Las Vegas, Nevada 89146T 702.388.1800F 702.388.1010

Service You Deserve. People You Trust. www.mdlgroup.com

Carla ColeSenior [email protected]

Jerry HagfeldtSenior [email protected]

Property Details:

Total SF: ±6,800

Lease Rate: $1.00 PSF NNN

CAM's: $0.35 SF/M

Available: Immediately

*Drawings and plans are not to scale. Any measurements are approximate and are for illustrative purposes only. There is no guarantee, warranty or representation as to the accuracy or

completeness of any plans or designs.OWNER / USER OPPORTUNITY to own a single-story medical building

FOR SALE

$1,200,000 ($176.47/SF)

below replacement cost


RECEPTION

WAITING ROOM

BREAK ROOM

NURSES STATION

DR’S OFFICE

RE

CO

VE

RY

B

AY

PROCEDURE ROOM

IT CLOSET

Alexia Crowley, CCIM, LEED GA +1 702 836 [email protected]

Chris Connell +1 702 836 [email protected]

AIRPORT SUBMARKET


Parc Place Medical building

is located in the Southeast

Submarket of Las Vegas,

north of Henderson, on

the major arterial of Pecos

Road., between Russell Rd.

& Patrick Ln. The property is

conveniently located just east

of McCarran International

Airport and complimentary

medical services, including

Desert Springs Hospital.

Summerlin Hospital

Valley Hospital

UMC Hospital

Centennial Hills Hospital

Mountain View Hospital

VA Hospital

North Vista Hospital

Sunrise Hospital

Dignity – Siena Hospital

Dignity – San Martin Hospital

HOSPITALS

Dignity – DeLima Hospital

Henderson Hospital

ER @ The Lakes

Dignity Micro-Hosp

Dignity Micro-Hosp

Dignity Micro-Hosp

Dignity Micro-Hosp

Spring Valley Hospital

Southern Hills Hospital Subject

Copyright © 2018 Colliers International.







FREESTANDING ER MICRO-HOSPITALS

LAS VEGAS HOSPITALS

Desert Springs Hospital


BUY VS. LEASE COMPARISON

5876 S. Pecos, Las Vegas, NV6,800

Buy vs. LeaseOwn LeaseBuilding Shell Price/SF 176.47$ 1,200,000$ Monthly Lease Rate/SF 1.45$ 9,860$ Improvements/SF -$ Total Building Cost 1,200,000$ Closing Cost* 31,000$ Total Project Cost 1,231,000$

Start up Costs Start Up Costs

Cash Down Payment 10% 120,000$ Prepaid Lease 2 mos 19,720$ Appraisal and Phase I 6,000$ Security Deposit 1 mos 9,860$ Total Cash Required 126,000$ 29,580$

Monthly Occupancy Cost Monthly Occupancy Cost

Mortgage Payment** 7,202$ Lease Payment 9,860$ Occupy Cost/SF 12.71$ Occupancy Cost/SF 17.40$

Adjusted Monthly Occupancy Cost Adjusted Monthly Occupany Cost

Occupancy Cost/SF 12.71$ Occupancy Cost/SF 17.40$ Less: Depreciation*** 0.46$ Less: Depreciation 0Net Occupancy Cost/SF 12.25$ Net Occupancy Cost/SF 17.40$

Net Monthly Occupancy Cost 6,941$ Net Monthly Occupancy Cost 9,860$

* Closing cost includes the CDC Fees of $13,000 (capitalized in SBA loan), origination fee for bank's 1st, title expense, appraisal/environmental**Mortgage Payment includes the bank's 1st DOT and the SBA 2nd DOT (amortized over 25 years). The Bank's portion does not include the bank's closing cost

***Depreciation estimated with a useful life of 27.5 years

Figures are estimates and subject to change. It is recommended that your CPA is contacted to review.SBA Debenture (40% of project) is based on a 25 year fully amortizating, fixed rate loan of 5.35% (based on August 2018 SBA Effective Rate). The SBA loan has a declining 10 year pre-payment penalty (eliminated in year 11) based on the loan debenture rate. For example, the August 2018 debenture rate is 3.71% (the debenture rate is less than the effective rate). The maximum pre-payment penalty would be the full debenture rate (3.71%) of the principal remaining on the SBA loan. This amount declines by 10% each year, so five years in, the prepayment penalty would be cut in half, or approximately 1.86%.

* Closing cost includes the CDC Fees of $13,000 (capitalized in SBA loan), origination fee for bank's 1st, title expense, appraisal/environmental

**Mortgage Payment includes the bank's 1st DOT and the SBA 2nd DOT (amortized over 25 years). The Bank's portion does not include the bank's closing cost


Figures are estimates and subject to change. It is recommended that your CPA is contacted to review. SBA Debenture (40% of project) is based on a 25 year fully amortizating, fixed rate loan of 5.35% (based on August 2018 SBA Effective Rate). The SBA loan has a declining 10 year pre-payment penalty (eliminated in year 11) based on the loan debenture rate. For example, the August 2018 debenture rate is 3.71% (the debenture rate is less than the ef-fective rate). The maximum pre-payment penalty would be the full debenture rate (3.71%) of the principal remaining on the SBA loan. This amount declines by 10% each year, so five years in, the prepayment penalty would be cut in half, or approximately 1.86%.


SBA 504 LOAN PROGRAM

"SBA'sRealEstateAdvantageLoan(504)"SBA504LoanProgramAnalysis

Subject Property: 5876 S. Pecos Rd., LV, NVSquare Feet: 6,800

Prepared for:

Sales Price 1,200,000$ 100.0%Financial Institution 1st Loan 600,000$ 50.0%SBA 504 2nd Loan 480,000$ 40.0%Buyer's Down Payment 120,000$ 10%

Financial Institution (Negotiable)1st Deed of Trust 600,000$ Interest Rate (Estimated) 6.00%Monthly Payment $3,866

SBA 504 Loan Fees:CDC Process Fee 7,200$ 1.50% SBA 504 Loan Fixed for 20 years:Funding Fee (3rd party) 1,200$ 0.25% 2nd SBA Loan 493,000$ Underwriter Fee (3rd party) 1,920$ 0.40% Interest Rate (August 2018) 5.301%Flat Fee for SBA closing attorney 2,500$ Monthly Payment $3,336Round Up (Rebated back) 180$ Total SBA Loan Amount: 493,000$ Total Payments: $7,202

Note: Buyer must have a net worth less than $15MM and Monthly Payment per SQ FT: 1.06$ an average net income less than $5MM after taxes in last Monthly Payment per SQ FT * 0.80$ two years Price per SQ FT 176.47$ NSDC-aSBAPremierCertifiedLender Average Blended Interest Rate 5.68%A Non-Profit Organization (*Excludes Principal Payments)

Over 30 years of helping NV businesses "NSDC believes in Nevada"

Carla [email protected]

This form provides purely ESTIMATED costs. Final rates will not be locked in until the financing is secured This is not a commitment to lendThe above is our best estimate with the information currently available. Does not include 3rd party fees or additional fees charged by bank

Alexia Crowley, CCIM, LEED GA 702.836.3778 [email protected]

Chris Connell, Vice President 702.836.3709 [email protected]

Alexia Crowley, CCIM, LEED GA

Information about the property contact:

"SBA'sRealEstateAdvantageLoan(504)"SBA504LoanProgramAnalysis

Subject Property: 5876 S. Pecos Rd., LV, NVSquare Feet: 6,800

Prepared for:

Sales Price 1,200,000$ 100.0%Financial Institution 1st Loan 600,000$ 50.0%SBA 504 2nd Loan 480,000$ 40.0%Buyer's Down Payment 120,000$ 10%

Financial Institution (Negotiable)1st Deed of Trust 600,000$ Interest Rate (Estimated) 6.00%Monthly Payment $3,866

SBA 504 Loan Fees:CDC Process Fee 7,200$ 1.50% SBA 504 Loan Fixed for 20 years:Funding Fee (3rd party) 1,200$ 0.25% 2nd SBA Loan 493,000$ Underwriter Fee (3rd party) 1,920$ 0.40% Interest Rate (August 2018) 5.301%Flat Fee for SBA closing attorney 2,500$ Monthly Payment $3,336Round Up (Rebated back) 180$ Total SBA Loan Amount: 493,000$ Total Payments: $7,202

Note: Buyer must have a net worth less than $15MM and Monthly Payment per SQ FT: 1.06$ an average net income less than $5MM after taxes in last Monthly Payment per SQ FT * 0.80$ two years Price per SQ FT 176.47$ NSDC-aSBAPremierCertifiedLender Average Blended Interest Rate 5.68%A Non-Profit Organization (*Excludes Principal Payments)

Over 30 years of helping NV businesses "NSDC believes in Nevada"

Carla [email protected]

This form provides purely ESTIMATED costs. Final rates will not be locked in until the financing is secured This is not a commitment to lendThe above is our best estimate with the information currently available. Does not include 3rd party fees or additional fees charged by bank

Alexia Crowley, CCIM, LEED GA 702.836.3778 [email protected]

Chris Connell, Vice President 702.836.3709 [email protected]

Alexia Crowley, CCIM, LEED GA

Information about the property contact:

Note: Buyer must have a net worth less than $15MM and an average net income less than $5MM after taxes in last two years.

5876 S. Pecos, Las Vegas, NV6,800

Buy vs. LeaseOwn LeaseBuilding Shell Price/SF 176.47$ 1,200,000$ Monthly Lease Rate/SF 1.45$ 9,860$ Improvements/SF -$ Total Building Cost 1,200,000$ Closing Cost* 31,000$ Total Project Cost 1,231,000$

Start up Costs Start Up Costs

Cash Down Payment 10% 120,000$ Prepaid Lease 2 mos 19,720$ Appraisal and Phase I 6,000$ Security Deposit 1 mos 9,860$ Total Cash Required 126,000$ 29,580$

Monthly Occupancy Cost Monthly Occupancy Cost

Mortgage Payment** 7,202$ Lease Payment 9,860$ Occupy Cost/SF 12.71$ Occupancy Cost/SF 17.40$

Adjusted Monthly Occupancy Cost Adjusted Monthly Occupany Cost

Occupancy Cost/SF 12.71$ Occupancy Cost/SF 17.40$ Less: Depreciation*** 0.46$ Less: Depreciation 0Net Occupancy Cost/SF 12.25$ Net Occupancy Cost/SF 17.40$

Net Monthly Occupancy Cost 6,941$ Net Monthly Occupancy Cost 9,860$

* Closing cost includes the CDC Fees of $13,000 (capitalized in SBA loan), origination fee for bank's 1st, title expense, appraisal/environmental**Mortgage Payment includes the bank's 1st DOT and the SBA 2nd DOT (amortized over 25 years). The Bank's portion does not include the bank's closing cost


Figures are estimates and subject to change. It is recommended that your CPA is contacted to review.SBA Debenture (40% of project) is based on a 25 year fully amortizating, fixed rate loan of 5.35% (based on August 2018 SBA Effective Rate). The SBA loan has a declining 10 year pre-payment penalty (eliminated in year 11) based on the loan debenture rate. For example, the August 2018 debenture rate is 3.71% (the debenture rate is less than the effective rate). The maximum pre-payment penalty would be the full debenture rate (3.71%) of the principal remaining on the SBA loan. This amount declines by 10% each year, so five years in, the prepayment penalty would be cut in half, or approximately 1.86%.

LAS VEGAS MEDICAL MARKET HIGHLIGHTS – Q2 2018

Medical Strong in Vegas > Net absorption continued to be positive, but also continued on a downward trend

> The vacancy rate was 13.0 percent at midyear 2018

> The average asking rental rate increased to $2.25 psf FSG

SOUTHERN NEVADA’S MEDICAL OFFICE MARKET WAS STRONG AT MIDYEAR 2018

Net absorption was 30,440 square feet, lower than one quarter ago and one year ago. With no new medical office completions, the market achieved 13.0 percent vacancy, the lowest medical office vacancy since 2010. The average asking rental rate was $2.25 per square foot (psf) on a full service gross (FSG) basis, the highest average asking rent since 2012.

Medical office development in Southern Nevada continued to be light in the second quarter, with no new properties completed and only 60,500 square feet of completions total at midyear. A 43,777 square foot medical office building is slated for completion next quarter, and a 24,000 square foot building by the end of the year. An additional 168,000 square feet of medical office space is planned for completion in 2019.

Vacancy in medical office space decreased in the second quarter of 2018 to 13.0 percent, a decrease of 3.0 points from the second quarter of 2017. The highest vacancy rates this quarter were in the Southwest (24.5 percent) and Airport (15.8 percent) submarkets. The lowest vacancy rates were in Northwest (9.2 percent) and North Las Vegas (9.7 percent). Vacancy this quarter increased in Downtown, East Las Vegas, Northwest and Southwest, with the largest increase (1.9 points) occurring in Downtown. Vacancy decreased this quarter in Airport, Henderson, North Las Vegas and West Central, with the largest decrease (4.7 points) occurring in North Las Vegas.

At midyear 2018, Southern Nevada absorbed 138,668 square feet of medical office space. This kept 2018 on pace to equal or exceed 2017’s record level of net absorption, although it is worth noting that net absorption has been trending lower since hitting a recent peak in the second quarter of 2017.

The weighted average asking rental rate for medical office space in the second quarter of 2018 was $2.25 psf FSG. This was $0.03 psf higher than one year ago. Asking rates showed significant growth in 2017, increasing from $2.14 psf FSG in the fourth quarter of 2016 to a recent peak of $2.24 psf FSG in the third quarter of 2017. The average asking rate then decreased to $2.19 psf FSG in the fourth quarter of 2017 before rebounding this quarter. Continued strong demand should keep the average asking rate growing through 2018.

Historical Vacancy Rates and Rental Rates

Alexia Crowley, CCIM, LEED GA +1 702 836 [email protected]

Chris Connell +1 702 836 [email protected]

+4.9%

HEALTHCARESpending

HEALTHCAREEmployment

+21.6

MEDICALSF/Job

+0.1%

Q22018

Economic Indicators

Market Indicators Relative to prior period Q2 2018 Q3 2018*

VACANCY

NET ABSORPTION

COMPLETIONS

RENTAL RATE *Projected

$2.00

$2.05

$2.10

$2.15

$2.20

$2.25

$2.30

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

2 Q 2016

3 Q 2016

4 Q 2016

1 Q 2017

2 Q 2017

3 Q 2017

4 Q 2017

1 Q 2018

2 Q 2018

Vacancy Rate Rental Rate

parc place medical office building · 2018-09-10 · parc place medical office building owner /...

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