spencer airport center€¦ · » the las vegas market boasted 4.6 msf of net absoprtion during...
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F O U R 1 0 0 % L E A S E D , L I G H T I N D U S T R I A L B U I L D I N G S T O T A L I N G 1 0 3 , 6 1 3 S FS T R A T E G I C A L L Y L O C A T E D I N T H E D E S I R A B L E A I R P O R T M A R K E T
S I G N I F I C A N T D I S C O U N T T O R E P L A C E M E N T C O S T
SPENCER AIRPORT CENTERL A S V E G A S , N E V A D A
A C B R E N AT I O N A L PA RT N E R S I N D U S T R I A L I N V E S T M E N T O P P O RT U N I T Y
ADDRESS 1856 E Pama Ln
6754 Spencer St
6745 Surrey St
6830 Spencer St TOTAL
TOTAL RENTABLE AREA
16,046 SF 17,188 SF 11,654 SF 58,725 SF 103,613 SF
ACREAGE 0.83 Acres 1.06 Acres 0.82 Acres 3.59 Acres 6.30 Acres
OFFICE % 39% 29% 50% 35% 36%
OCCUPANCY 100% 100% 100% 100% 100%
# OF BUILDINGS / UNITS
1/2 1/1 1/1 1/2 4/6
DOCK-HIGH DOORS 1 1 0 4 6
GRADE LEVEL DOORS
2 1 2 3 8
CLEAR HEIGHT 24' 24’ 24’ 24' 24’
YEAR BUILT 1999 1999 2000 2000 1999-2000
YEAR ONE NOI - - - - $782,865
P R O P E RT Y S U M M A RY
The OfferingCBRE, Inc. is pleased to present a unique opportunity to acquire the Spencer Airport Center, strategically located in the desirable infill Airport Industrial submarket of Las Vegas, one of the top performing submarkets in Las Vegas. The offering consists of four, freestanding light industrial buildings totaling 103,613 SF at a significant discount to replacement cost. The properties are 100% leased to six diversified tenants at an average of 21% below market rents with staggered lease rollover and unit sizes ranging from 4,503 SF to 48,873 SF.
Given the lack of available land for development in the Airport submarket accompanied with very little competing product, the assets are well positioned for strong rental growth and long-term appreciation. Furthermore, the freestanding buildings provide investors with a flexible exit strategy through user sales, which are in high demand.
1 SPENCER AIRPORT CENTER C B R E | N A T I O N A L PA RT N E R S
» Four institutional quality buildings totaling 103,613 SF.
» Excellent features including abundant parking, attractive glass store fronts, insulated warehouses, dock high and grade level loading.
» Units range in size from 4,503 to 48,873 SF which provides maximum leasing flexibility and the ability to attract and maintain tenants with expansion capacity.
» Institutionally maintained and managed.
» Increasing construction costs and land values coupled with a lack of available land have created high barriers to new development.
» This provides an opportunity to purchase this property at a price below replacement cost, which is estimated to be +/-$210 PSF.
» The buildings are situated on separate parcels. Given the size of these buildings and strong demand for light industrial product in Las Vegas, there is a proven opportunity to sell to users or individual investors in the future which can garner a higher sales prices and provides flexibility.
» User pricing in this market for these types of buildings is currently in the $170-$190 PSF range depending on size and build out.
H I G H Q UA L I T Y L I G HT I N D U S T R I A L B U I L D I N G S B E LO W R E P L A C E M E N T C O S T
F L E X I B L E E X I T S T R AT E G I E S
R E C E N T C A P I TA L I M P R O V E M E N T S
» Recent capital improvements, totaling approximately $167,770 include new exterior paint, asphalt repair/seal and coat, HVAC maintenance and landscaping refresh.
SPENCER AIRPORT CENTER 2
Q UA L I T Y T E N A N C Y & C A S H F LO W S TA B I L I T Y
R E N TA L R AT E U P S I D E
» 100% leased to six well-regarded tenants including Clinical Pathology Laboratories, Terminix, MC2, Absolute Closet & Cabinetry, and Bitrate.
» Weighted average tenure in the park is approximately 8.6 years.
» These tenants represent diverse industries including health care, convention services, residential service provider, ghost kitchens, media and more.
» Committed tenants include:
» Terminix who has occupied the building for 10 years.
» Clinical Pathology Laboratories has occupied the building for 9 years.
» MC2 has occupied the building for 8 years.
» Absolute Closets & Cabinetry uses Spencer Airport Center as their main manufacturing location and headquarters.
» Celebrity Brands LLC is a ghost (commissary) kitchen for the Linq Hotel on the Las Vegas Strip. Demand for ghost (commissary) kitchens is expected to grow as food delivery dominates the restaurant industry.
» Rental rates for light industrial product are below peak levels, and rental growth is expected going forward.
» In-place rents are at a weighted-average of 21% below market.
» The property’s largest tenant; Creative Management (48,873 SF) exercised their fixed rate renewal option and are currently 37% below market. Significant NOI upside can be captured when the tenant’s lease expires in 2/2022.
» Staggered rollover ranging from 2020 to 2024.
3 SPENCER AIRPORT CENTER C B R E | N A T I O N A L PA RT N E R S
» Overall, the Las Vegas industrial market ended Q2 2019 with 1.7 MSF of net absorption, bringing the year to date total to 3.9 MSF.
» The Las Vegas market boasted 4.6 MSF of net absoprtion during 2018.
» The overall Las Vegas vacancy rate declined to a low 2.3%.
» The Airport submarket has an even lower Q2 2019 vacancy rate of 1.97%.
» CBRE EA forecasts that vacancy rates and asking lease rates will continue to climb through the end of 2020.
» The state of Nevada ranked first in year-over-year total employment growth in the nation, at nearly 3.5% compared to the national average of 1.7%.
F U N D A M E N TA L LY S T R O N G M A R K E T D Y N A M I C S
L A S V E G A S H I S TO R I C A L Y T D N E T A B S O R P T I O N & VA C A N C Y
O V E R T H E PA S T S I X Y E A R S R E N TA L R AT E S H AV E I N C R E A S E D 8% A N N UA L LY W H I L E T H E VA C A N C Y R AT E H A S D E C R E A S E D N E A R LY 13% A N N UA L LY S H O W I N G T H E S T R E N G T H I N
T H E L A S V E G A S M A R K E T
4.96
2.81
8.20
4.663.89
5.10%4.10%
3.50%2.60%
2.30%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
0123456789
2015 2016 2017 2018 Q2 2019
YTD Net Absorption (MSF) Vacancy Rate (%)
4 SPENCER AIRPORT CENTER C B R E | N A T I O N A L PA RT N E R S
» With California and Arizona recently increasing minimum wage, Nevada is positioned as THE low-cost labor market in the west
» Low wages, combined with an abundance of low-cost housing and no state income tax, make this a safe bet for strategic capital
» The Las Vegas market has seen an increasingly diverse tenant profile entering the market over the past 10 years; E-commerce, tradeshow, food and beverage, pharmaceuticals, manufacturing and 3PLs are a few of the industries that have expanded into the market over the years
» The manufacturing sector has seen an uptick recently as companies including Haas Automation, Sofidel America Corp., Nikkisco Cryo Corp., Toscana Bakery, and TemperPack Technologies, Inc. have expanded into the market
» In 2018, more than 42.1 million visitors came to Las Vegas, and 21.1 million people have already visited Las Vegas through June of 2019
» Convention attendance totaled 6.5 million people in 2018 and continues to increase with more than 3.5 million people attending conventions in Las Vegas through the first half of 2019
» According to CBRE EA total employment in the Las Vegas area has grown at an average annual rate of 3.5% over the last 5 years, while the rest of the U.S. has grown at an average annual rate of 1.7%
» Las Vegas is quickly emerging as the Sports Capital of the world with the growing expansion of professional teams including the Vegas Golden Knights (NHL), the Raiders (NFL), the Las Vegas Lights (USL), Las Vegas Aviators (PCL) and the Las Vegas Aces (WNBA). This is creating a global buzz for the city that is already known as the entertainment capital of the world
S T R E N G T H & D I V E R S I T Y I N LO C A L E C O N O M I C D R I V E R S
SPENCER AIRPORT CENTER 5
Regional Map
SEVEN HILLS
SUMMERLIN
NELLIS AFB
NEW RAIDERS STADIUM
LAS VEGAS STRIP
SUMMERLINSOUTH
HENDERSON
BOULDER CITY
NORTH LASVEGAS
BLUE DIAMOND
L A S V E G A S
MCCARRANINTERNATIONAL
AIRPORT
573
574
610
612
612
582
160
564
167
582
592
159
596
595
159
147
604
95
95
15
515
11
15
15
215
K E Y D I S TA N C E S
±2.0 MI
MCCARRAN INTERNATIONAL
AIRPORT
±2.0 MI
INTERS TATE
215
±5.0 MI
DOWNTOWNLAS VEGAS
±4.5 MI
515
±3.4 MI
15
SPENCER AIRPORT CENTER
6 SPENCER AIRPORT CENTER C B R E | N A T I O N A L PA RT N E R S
Local Map
SPENCER AIRPORT CENTER
INTERS TATE
215
» Strategically located within the desirable Airport Industrial submarket, just south of the signalized intersection at Sunset Road and Spencer Street
» Minutes from McCarran International Airport, the I-15 and I-215 and the Las Vegas Strip
» The location is equidistant from many employment bases in Las Vegas, including the master planned communities of Summerlin and Green Valley
» Access to a strong labor force of approximately 944,000 employees within a 20 mile radius of the property
NEWRAIDERS STADIUM
MCCARRAN INTERNATIONAL
AIRPORT
LAS VEGAS STRIP
15
515
LAS
VEG
AS
BLV
D
GIL
ESP
IE S
T
BER
MU
DA R
D
SUNSET RD
PAR
ADI
SE R
D562
593
SPENCER AIRPORT CENTER 7
Aerial
6745 SURREY
SURREY ST
E HELM AVE
E SUNSET RD
E PAMA LN
SPENCER ST
6830 SPENCER
6754 SPENCER 1856 PAMA
LAS VEGAS STRIP
MCCARRANINTERNATIONAL
AIRPORT
IHI CORP
RESTAURANT DEPOT
GALAXY GAMING
LAMAR ADVERTISING
NECTAR BATH TREATS
NASSIRI MUSIC & ENTERTAINMENT
IATSE LOCAL 702 TRAINING CENTER
ARCADIA INC.
KONE ELEVATORS & ESCALATORS LAND AIR
EXPRESS, INC
FOREVER YOUNG INTERNATIONAL
SLICE OF LIFE FOODS
AZ2 FREIGHT
SERVICES MICRON WIELESS
QUIXANT USA INC.
EPC RECYCLING CENTER
SPENCER AIRPORT CENTER 8
NOT A PART
OWNER USER
OWNER USER
NOT A PART
NOT A PARTNOT A PART
NOT A PART - OWNER USER NOT A PART -
OWNER USER
NOT A PARTNOT A PARTNOT A PART - OWNER USER
NOT A PART - OWNER USER
NOT A PART - OWNER USER
SPEN
CER
ST
E HELM AVE
SURREY ST
E PAMA LN
ABSOLUTE CLOSETS &
CABINETRY, LLCEXP. 3/2022
17,188 SF
TERMINIXEXP. 7/2024
4,503 SF
CELEBRITY BRANDS, LLCEXP. 2/2023
11,543 SF
CLINICALPATHOLOGY
LABORATORIESEXP. 7/2020
9,852 SF
MC2 – CREATIVE MANAGEMENT SERVICESEXP. 2/2022
48,873 SF
BITRATE PRODUCTIONS,
INCEXP. 10/2021
11,654 SF
Dock-High Doors
Grade Level Doors
6745 SURREY ST11,654 SF
1856 E PAMA LN16,046 SF
6754 SPENCER ST17,188 SF
6830 SPENCER ST58,725 SF
Site Plan - Spencer Airport Center
9 SPENCER AIRPORT CENTER C B R E | N A T I O N A L PA RT N E R S
FOR MORE INFORMATION, PLEASE VISIT OUR WEBSITE ATwww.cbrenp-spencerairportcenter.com
NORTHEAST Michael HinesBrian FiumaraBrad RuppelLauren Dawicki
SOUTHEAST Chris RileyFrank FallonTrey BarryJennifer Klingler
SOUTH CENTRAL Randy BairdJonathan BryanRyan ThorntonEliza BachhuberColleen Fazio
NORTH CENTRAL
Mike CaprileRyan BainZach GrahamVictoria Gomez
WEST Darla LongoBarbara PerrierRebecca PerlmutterBrett HartzellEric CoxGina Christen
DEBT & STRUCTURED FINANCE Val AchtemeierScott Lewis Steve RothSteve Kundert
GLOBAL INDUSTRIAL& LOGISTICSJack FrakerHeather McClain
OFFERING INTEGRATED REAL ESTATE CAPITAL MARKETS SOLUTIONS FROM STRATEGY TO EXECUTION – DELIVERED BY A SEAMLESS NATIONAL PARTNERSHIP
SPENCER AIRPORT CENTER
L A S V E G A S, N E VA D A
“Offering integrated real estate capital markets solutions from strategy to execution – delivered by a seamless national partnership.”© 2019 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.
DEBT & STRUCTURED FINANCE ADVISOR
BOB YBARRA Vice PresidentLic. 596+1 702 369 [email protected]
CAPITAL MARKETS ADVISORS
BRETT HARTZELLCBRE | Executive Vice PresidentLic. S.0182241+1 206 292 [email protected]
REBECCA PERLMUTTER FINKEL, CFACBRE | Senior Vice PresidentLic. S.0177428+1 310 922 [email protected]
LOCAL MARKET EXPERTS
KEVIN HIGGINSExecutive Vice PresidentLic. BS.0016109+1 702 369 [email protected]
GARRETT TOFTSenior Vice PresidentLic. BS.0061824+1 702 369 [email protected]
SEAN ZAHERSenior AssociateLic S.0175473+1 702 369 [email protected]
JAKE HIGGINSSenior AssociateLic S.0176473+1 702 369 [email protected]