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Offering MemorandumMulti-Tenant Industrial Asset for Sale1775 W 200 S, Salt Lake City, UT
Kody Watts801-382-9661
Table of Contents
Executive Summary
Investment Valuation
Financial Analysis
Property Photographs
Market Overview
Tenant Map
Map
Tenant Overview
3
4
5
6
9
10
11
12
13Why Utah
EXECUTIVE SUMMARY
Property Highlights
12 Tenant Industrial Property
M-1 Zoning
4.31 Acres
Additional 3 Acres of land leased from Utah Power & Light Company
31,620 sq. ft of warehouse
Potential rental rate increases with lease renewals
Potential value add to develop buildings on excess land
Excellent I-215 and I-80 freeway access
Fully fenced yard with surveillance
480 Volt & 3 Phase Power
Each warehouse unit has a private office
$4,000,000Purchase Price
8.27%Cap Rate
$330,838.81NOI
Financial Analysis - Valuation and Cash on Cash
Net Operating IncomePurchase PriceCap. RateLoan to Value RatioDown Payment of 35%Mortgage BalanceAmortization (in years)Payments Per YearLoan TermInterest RateAnnual P&IAnnual Cash Return (NOI less P&I)Closing Costs (1.00% of loan amount)Total CostTotal Cash InvestedCash on Cash Return1st year Principal ReductionTotal Return including Principal ReductionFirst Year Total Return on Investment
$330,838$4,000,0008.27%65%$1,400,000$2,600,0002512105%$182,392$148,446$26,000$4,026,000$1,426,00010.41%$53,610$202,5614.17%
Financial Analysis - Capital InvestmentRent RollNet Operating Income CashflowsFox Rent-a-CarRoyal Restrooms Mountain West, LLCUS Custom BuildersWestern CableCreative ConceptRedbox of East Salt LakeUnited Fleet Systems LLCCharly's ShopJ and C ContainersGrizzly's Tree Service and LandscapingRed Rock ConstructionIntermodal Logistics Inc, Agent for Horizon Freight SystemsTotalsLess: Vacancy (Market 5%)Less: Pacific Corp Land Lease (3% increases per year)Less: Property Taxes (2019 data)Less: Insurance CostLess: Utilities (average over last 12 months)Total Net Operating IncomeDebt Coverage Ratio Annual Cash FlowsTotal Net Operating IncomeLess: Debt ServiceAnnual Cash Flow After Debt ServiceCash on Cash Return
Rent Roll2020 (Year 1)$28,800$29,400$34,800$66,000$43,800$15,120$54,000$49,200$7,200 $7,200$42,000$12,000$389,520($19,476)($4,800)($28,283.19)($4,802)($1,320)$330,838.811.81 Cash Flows$330,838.81($182,392)$148,446.8110.41%
$150 increase every August$150 increase every June$150 increase every May $150 increase every May
Tenant Map
Grizzly'sLandscaping
Redbox
Fox Rent-A-Car
J & C Containers
Royal Restroom
United Fleet
IntermodalLogistics Inc.
WesternCable
Charly's
US CustomBuilders
CreativeConcepts
Red RockConstruction
United Fleet
3 acres leased from Pacificorpalong railroad tracks
Potential foradditional building to
be developed
Map
Property Site
Salt Lake CityInternational
Airport
Tenant OverviewFox Rent-a-CarNational car rental company uses this lot for overflowparking Royal RestroomLuxury portable restroom company US Custom BuildersCommercial construction company Western CableMining cable supply company Creative Concepts Builds parade floats Redbox of East Salt LakeDumpster with attached porta potty rental company
United Fleet Systems, LLCTruck & trailer repair company Charly's ShopSemi-truck repair company J & C ContainersDumpster company Grizzly's Tree Service & LandscapingLandscaping company Red Rock Construction General construction company Intermodal Logistics Inc.Agent for Horizon Freight SystemsTrucking company
Market Overview
Salt Lake CountySalt Lake County is home to sixteen cities including Salt Lake City, which serves asthe State Capital, and five metro townships. With a total population of 1.14 millionpeople, the county hosts 37 percent of the total population within the State of Utah.The county is part of the Salt Lake Metropolitan Statistical Area (MSA) that includesboth Salt Lake and Tooele counties. Almost 60 percent of Utah’s population livesalong the western edge of the Wasatch Mountains, a region commonly referred to asthe Wasatch Front. Salt Lake County known as the “Crossroads of the West,” is hometo a major transportation hub. Hosting air service from the Salt Lake CityInternational Airport, rail services from the Union Pacific Intermodal Terminal,interstate highway service from I-15 and I-80 and the forward momentum of the longawaited Utah Inland Port, the region is well-connected both domestically andinternationally. At the state level, the Utah Governor’s Office of EconomicDevelopment employs an industry cluster strategy that targets sectors with highgrowth potential.
Utah
#1 State for Financial Stability
U.S. News
#2 State for Business
Forbes
#1State for Private Sector Job Growth
Index of State Economic Momentum
#1 State for Small Business Lending
Lendio
3.1%Utah Job Growth
Forbes
#1State for Private Sector Job Growth
Forbes
Rent RollsTenant
Fox Rent-a-Car
Royal Restrooms Mountain West, LLC
US Custom Builders
Western Cable
Creative Concept
Redbox of East Salt Lake
United Fleet Systems LLC
Charly's Shop
J and C Containers
Grizzly's Tree Service and Landscaping
Red Rock Construction
Intermodal Logistics Inc, Agent for Horizon
Freight Systems
Totals
Less: Pacific Corp Land Lease (3% increases per year, starting Feb. 2021)
Scheduled Gross Rents
SF
Yard Only
Yard Only
3,480
4,941
4,200
Yard Only
8,412
4,920
Yard Only
Yard Only
4,200
Yard Only
$PSF
-
-
$0.83
$1.11
$0.93
-
$0.53
$0.83
-
-
$0.83
-
Designated Yard
Space (acres)
1.00
1.00
0.08
0.50
0.10
0.50
0.70
0.50
0.35
0.25
0.26
0.35
Monthly
$2,400
$2,450
$2,900
$5,500
$3,650
$1,260
$4,500
$4,100
$600
$600
$3,500
$1,000
$32,460
Annual
$28,800
$29,400
$34,800
$66,000
$43,800
$15,120
$54,000
$49,200
$7,200
$7,200
$42,000
$12,000
$389,520
($4,800)
$384,720
Lease Type
M/G
M/G
M/G
M/G
M/G
M/G
M/G
M/G
M/G
M/G
M/G
M/G
Lease Start
2019
2019
2015
2019
2018
2019
2016
2018
2022
2019
2019
2019
LED
6/30/22
7/31/21
7/31/22
5/31/22
4/30/21
6/30/22
M2M
5/16/21
9/30/22
9/30/20
10/31/20
8/31/21
Security Dep.
$2,400
$2,450
$3,500
$5,500
$3,500
$1,260
$0
$2,000
$0
$0
$0
$1,000
CommentsFox Rent-A-Car is a national company.United Fleet is on a month to month lease. US Custom Builders: 5.2% annual increases each August.Western Cable: 2.73% annual increases JuneCreative Concept: 4.11% annual increases each MayCharly's Shop: 2.44% annual increases each MayDeposits were not collected from Charly's, J & C Container, Grizzly's and Red Rock tenants. Tenants were moved in without deposits from the prior ownership.Pacific Corp Land Lease: 3 acres of land that is leased by the landlord. Lease is 17 year term. This land will not be sold with the sale, lease will be transferred to new ownership.