3037-3291 E. Warm Springs Road, Las Vegas, NV 89120...Park 700 E. Silverado Ranch Blvd., Las Vegas,...

Sun Commercial Real Estate, Inc. 6140 Brent Thurman Way, Suite 140 Las Vegas, Nevada 89148www.suncommercialre.com

Offering Memorandum3037-3291 E. Warm Springs Road, Las Vegas, NV 89120

A value-add multi-tenant

Class B office property offering a terrific infill

location in Southeast Las

Vegas.

3037-3291 E. Warm Springs Road | Offering Memorandum

The information contained herein was obtained from sources believed reliable, however, Sun Commercial Real Estate, Inc. any of its agents or employees make no guaranty, warranty or representation as to the completeness and/or accuracy thereof, inclusive of any current and future projected returns. Anyone utilizing this analysis does so at their own risk and agrees to hold Sun Commercial Real Estate, Inc., its agents and employees harmless. The presentation of this property is subject to error, omissions change of price or conditions prior to sale, or withdrawal without notice.

Cathy Jones, CPA, SIOR, CCIMCEO

[email protected]

NV Lic # B0056010.CORP

Michael HsuSenior Vice President

[email protected]

NV Lic # S.0051609.LLC

Paul MiachikaExecutive Vice President

[email protected]

NV Lic # S.0184612

CONTACTS

TABLE OFCONTENTS

LONGFORD PLAZA

01 OFFERING SUMMARY

02 PROPERTY OVERVIEW

03 MARKET OVERVIEW

04 FINANCIAL INFORMATION

05 LAS VEGAS VALLEY OVERVIEW

01 OFFERINGSUMMARY

3037-3291 E. Warm Springs Road | Offering Memorandum5

Silverado Ranch

Enterprise

Green ValleySouth

WhitneyRanch

MacDonaldRanch

SpringValley

SunriseManor

Downtown

BoulderCity

Seven Hills

Anthem

SouthernHighlands

RhodesRanch

MountainsEdge

Summerlin

CentennialHills

NorthLas Vegas

Winchester

Paradise

Henderson

Silverado Ranch

Enterprise

Green ValleySouth

WhitneyRanch

MacDonaldRanch

SpringValley

SunriseManor

Downtown

BoulderCity

Seven Hills

Anthem

SouthernHighlands

RhodesRanch

MountainsEdge

Summerlin

CentennialHills

NorthLas Vegas

Winchester

Paradise

Henderson

93

95

95

93

OFFERING SUMMARY

±99,299SQUARE FEET

±81%OCCUPANCY

2002-2007CONSTRUCTION

$111PRICE PER SF

OFFERING HIGHLIGHTS

Purchase Price: $11,000,000

Total Building SF: ±99,299 SF

First Year NOI: $709,895

Stabilized NOI: $1,063,584

Cap Rate (Year One): 6.5%

Stabilized Cap Rate: 9.7%

Office Park: Includes Twelve Class B Garden Style Buildings

Year Built: 2002-2007

Site Area: ±7.58 Acres

LONGFORD PLAZA3037-3291 E. Warm Springs Road,

Las Vegas, Nevada 89120

CHARLESTON BOULEVARD

CHEYENNE AVENUE

CRAIG ROAD

ANN ROAD

TROPICANA AVENUE

SAHARA AVENUE

BLUE DIAMOND ROAD

SUNSET ROAD

WARM SPRINGS ROAD

CACTUS AVENUE

LAKE MEAD BOULEVARD

FLAMINGO ROAD

DU

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RIV

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W B

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LAM

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INVESTMENT HIGHLIGHTS

Value-Add Office Opportunity – Excellent opportunity to purchase a suburban office property priced well below replacement cost.

Condo Sales – A buyer has the option to consider selling individual condos over time. Current sales in this park have sold at $160 PSF or more, a 44% increase over current asking price.

Below Market Rents – The average current rent of $1.12 per square foot modified gross is up to 56% below lease comparables in the immediate area.

Attractive Returns – Value-add annual returns projected at 26.43% on a leveraged basis over a five-year hold.

Strong Office Fundamentals – Office demand combined with reducing vacancy continues to increase absorption and place upward pressure on rents.

$11,000,000 | 6.5% CAP RATE

LOCATION AND AMENITIES

Strategically located at the entry into Green Valley, an upscale and affluent neighborhood of Henderson consisting of numerous master-planned communities

Longford Plaza is less than 10 minutes from McCarran International Airport (50 million passengers in 2019)

Centrally located between the new Allegiant Raiders Stadium, the Raiders practice facility, T-Mobile Arena, and the new Henderson Vegas Golden Knights practice facility

Located minutes from the I-215 outerbelt that wraps the Las Vegas Valley

Beautiful courtyards offer a warm ambiance and space for outdoor uses

OFFERING SUMMARY

PROPERTYOVERVIEW02


PROPERTY OVERVIEW

ADDRESS 3037-3291 East Warm Springs Road, Las Vegas, Nevada 89120

ACCESS Two points along Warm Springs Road

SITE SIZE ±7.58 Acres

PARCELS 177-12-513-004, 009, 010, 011, 013, 014, 015, 017, 177-12-516-002, 177-12-517-002, 177-12-518-005 and 006

ZONING C-P (Office-Professional), Clark County

PARKING RATIO ±4:1,000

LAND SITE SUMMARY


SITE PLAN

PROPERTY DESCRIPTION 12, single-story garden style office buildings with tile roofs and faux chimney features including wrought iron gate courtyard entrances with interlocking paver flooring.

PROPERTY SIZE ±99,299 Square Feet

YEAR BUILT 2002-2007

EXTERIOR WALLS Prefab foam core with hardwood and stucco exterior finish

WINDOWS Aluminum frame with insulated glass

ROOF 10 Ply Built-Up Roofing System

HVAC Individual roof-top, Carrier package split system heat pump units

RESTROOMS Courtyard accessible common area, mens’ and womens’ restrooms in each building

CEILINGS Interior ceilings include mostly tegular acoustical ceiling system with aluminum tee runners with some units having an open/exposed ceiling look

INTERIOR WALLS Standard walls to be textured and painted sheetrock

ELECTRICAL 120/208 volt

FIRE & SAFETY Wet fire suppression system

BUILDING SPECS

PROPERTY OVERVIEW

3047

303730

67

3087

3127

3203 3291 3283

3077

30573097

E WARM SPRINGS ROAD

3227


PROPERTY PHOTOSPROPERTY OVERVIEW

MARKETOVERVIEW03


SUBMARKET OVERVIEW

The South Las Vegas submarket is the largest office submarket in the metro valley with over 13 million square feet1. Proximity to numerous amenities, including new retail and residential developments, has created positive demand and helped the vacancies remain below the submarket’s historical average, currently at ±10.5%.

New construction has been limited with only two projects currently under construction. Gardner Plaza and Village in Henderson will deliver approximately 24,000 SF and 100,000 SF of office space, respectively. Existing building owners will have a competitive edge as new buildings will have a higher rental rate compared to existing buildings given the cost of new construction today.

Compared to the previous year, sales volume in the South submarket has been modest with over $318 million in sales volume in 2019. Recent notable transactions were Cornerstone Office Park, which traded at $27.2 million, Siena Medical Pavilion, which closed at $51.6 million, and the Las Vegas Raiders HQ Facility at $191 million.

1CoStar Las Vegas – NV Office Market Report as of March 2020.

MARKET OVERVIEW


AREA OVERVIEWLongford Plaza is located near the southwest intersection of Warm Springs Road and Pecos Road. While Longford Plaza is in the City of Las Vegas, the location of the property is at the northwestern boundary of the City of Henderson and the master planned communities of Green Valley, Anthem, MacDonald Ranch, and Seven Hills, to name a few. Proximity to the City of Henderson has numerous benefits, including access to its population of 302,000, making Henderson the second largest city in the state. Nearby lifestyle amenities such as The District at Green Valley Ranch, Galleria Mall, Green Valley Ranch Resort and Casino, Lake Las Vegas, and world-class parks and trails systems provide the quality of life that new residents and businesses are looking for.

The area is ideally situated in the southern portion of the Las Vegas valley, just minutes from the Las Vegas Strip and a short distance from McCarran International Airport. Major highways serving the area include I-15, US 95 and I-215, the latter of which has an entrance less than two miles west of Longford Plaza, providing easy travel across town and to bordering states.

MARKET OVERVIEW

W WARM SPRINGS ROAD


AREA DEMOGRAPHICS

5 Mile

3 Mile

1 Mile

Longford Plaza

POPULATION

1 Mile 3 Miles 5 Miles

2019 Population 13,186 135,423 399,326

2024 Population 13,808 143,016 430,434

HOUSEHOLD


2010 Households 4,926 50,567 143,177

2019 Households 5,150 53,541 158,640

2024 Households 5,374 56,323 170,356

2019 Average HH Size 2.52 2.52 2.50

INCOME 2019


<$15,000 7.1% 7.1% 9.8%

$15,000 - $24,999 5.0% 6.8% 8.1%

$25,000 - $34,999 9.0% 8.6% 9.7%

$35,000 - $49,999 11.1% 12.5% 13.5%

$50,000 - $74,999 21.7% 20.8% 20.5%

$75,000 - $99,999 16.4% 14.7% 13.5%

$100,000 - $149,999 15.5% 15.7% 14.4%

$150,000 - $199,999 7.4% 7.6% 5.6%

$200,000+ 6.7% 6.0% 4.8%

2019 Median HH Income $68,753 $65,708 $58,379

2019 Average Household Income $90,795 $57,570 $78,824

RRAACCEE AANNDD EETTHHNNIICCIITTYY 2200119911 MMiillee 22 MMiilleess 33 MMiilleess

White 31.5% 35.8% 37.3%

Black 25.7% 25.0% 21.7%

American Indian 0.9% 1.0% 0.9%

Asian - Number 4.3% 4.4% 4.9%

Pacific Islander 0.7% 0.9% 0.8%

Some Other Race 31.5% 27.0% 28.2%

Two or More Races 5.3% 6.1% 6.2%

Hispanic Origin (Any Race) 54.7% 47.8% 51.4%

*Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2019 and 2024.

MARKET OVERVIEW


LEASE COMPARABLES MAP

SUBJECT PROPERTY

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2

3

4

5

6

7

MARKET OVERVIEW

S LA

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EGA

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VA

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N STEPH

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IE STREET

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ST ROSE

PARKW

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ORIZO

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WAY

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VA

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E WINDMILL LANE

S M

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E SUNSET ROAD


LEASE COMPARABLES

Page 1

Longford Plaza - For Lease Comps

# Property Name Property Address Property Location Property Type

Year Built / Reno.

Condition / TI Allowance

Lease Type

BuildingSF

Comp Suite

Asking Rate

CAM/OE(1)

MG Lease Rate Equivalent

Subj

ect

1 Longford Plaza 3037-3291 E. Warm Springs Rd.,Las Vegas, NV 89120

On E. Warm Springs Rd., E. of Eastern Ave.

Multi-Tenant Office

2003Second

Generation / Negotiable

MG 99,299 - $1.35 $1.35

1 1 Seven Hills Business Park 3039 W. Horizon Ridge Pkwy.,Henderson, NV 89052

On W. Horizon Ridge Pkwy., E. of Seven Hills Dr.

Multi-Tenant Office

2005Second


Net 6,754 1,750 $1.40 $0.35 $1.75

2 1 Silverado Professional Park

700 E. Silverado Ranch Blvd.,Las Vegas, NV 89183

NWC Silverado Ranch Blvd. & Pollock St.

Multi-Tenant Office

2003Second


Net 24,251 1,800 $1.80 $0.45 $2.25

3 1 Eastern Professional Park 8425 S. Eastern Ave.,Las Vegas, NV 89123

On S. Eastern Ave., N. of Wigwam Pkwy.

Multi-Tenant Office

2006Second


MG 3,400 3,400 $1.95 $1.95

4 1 Horizon Ridge Professional Park

2420 W. Horizon Ridge Pkwy.,Henderson, NV 89052

On Horizon Ridge Pkwy., W. of Green Valley Pkwy.

Multi-Tenant Office

2010Second


NNN 4,500 2,500 $1.50 $0.40 $1.90

5 1 Pecos Springs Business Park

7335 S. Pecos Rd.,Las Vegas, NV 89120

SWC S. Pecos Rd. & W. E. Warm Springs Rd.

Multi-Tenant Office

2008Second


NNN 8,065 4,000 $1.35 $0.40 $1.75

6 1 Sunset Ridge Professional Park

2900 N. Green Valley Pkwy.,Henderson, NV 89120

On Green Valley Pkwy., N. of E. Sunset Rd.

Multi-Tenant Office

1994Second


NNN 5,754 4,049 $1.25 $0.40 $1.65

7 1 Windmill Place 370-380 E. Windmill Ln.,Las Vegas, NV 89123

On E. Windmill Ln., W. of Bermuda Rd.

Multi-Tenant Office

2008Second


NNN 21,651 4,855 $1.70 $0.40 $2.10

Average 2005 - - 10,625 3,193 $1.91Median 2006 - - 6,754 3,400 $1.90

Notes:(1) Asking rate adjusted up by $0.40 PSF, for estimated CAM, to determine a MG lease rate equivalent to compare with the subject Property.

MARKET OVERVIEW


LONGFORD PLAZA CONDO SALE COMPARABLESMARKET OVERVIEW

Longford Plaza - Office Condos Sold

Property Address/Unit Number Description Year Built / Reno.

BuildingSF Sales Price $/SF Sales Date

Subj

ect

3037-3291 E. Warm Springs Rd.,Las Vegas, NV 89120 Portfolio 2004 99,299 $11,000,000 $110.78 -

1 3161-300 Condo 2003 1,824 $301,000 $165.02 4/1/19

2 3167-200 Condo 2003 2,203 $330,500 $150.02 4/5/19

3 3167-300 Condo 2003 1,814 $272,000 $149.94 4/5/19

4 3153-200 Condo 2003 1,910 $279,761 $146.47 4/17/19

5 3161-100 Condo 2003 2,025 $321,000 $158.52 7/1/19

6 3183 Building 2003 8,505 $1,233,225 $145.00 9/3/19

7 3199-300 Condo 2003 1,824 $300,090 $164.52 8/28/19

8 3199-100, -200 Condo x 2 2003 4,214 $695,310 $165.00 10/4/19

9 3199-400 (1) Condo 2003 2,294 $298,220 $130.00 11/6/19

10 3223 Condo 2004 1,667 $295,000 $176.96 11/27/19

11 3161-400 Condo 2003 2,322 $383,130 $165.00 1/8/20

12 3161-200 Condo 2003 2,205 $363,825 $165.00 2/3/20

Average 2003 2,734 $422,755 $156.79 -

Median 2003 2,114 $311,000 $161.52 -

Notes

(1) Low price due to suite build-out as a former sandwich shop with no office buildout.* All properties have Office and Professional (C-P) zoning.

FINANCIALINFORMATION04


RENT ROLLRENT ROLL - LONGFORD PLAZAOccupied Suites:

Suite Tenant Size Rent/SF Rent/Mo. Rent/SF/Yr Rent/Yr Increases Comments:

3037-100 CRS Services Limited 2,579 06/13/11 05/31/20 $1.07 $2,759.53 $12.84 $33,114.36

3037-200 Imagine Communications 2,662 05/17/18 05/30/23 $1.10 $2,928.20 $13.20 $35,138.40

3047-100 Diana L McIntosh Agency, Inc. 675 04/01/16 04/30/22 $1.20 $810.00 $14.40 $9,720.00 05/01/20 $15.00

3047-200 Bradley Roberts, DDS 3,191 11/01/02 10/31/22 $1.60 $5,105.60 $19.20 $61,267.20

3047-500 LTRD Corporation 3,062 01/01/15 02/01/23 $1.20 $3,674.40 $14.40 $44,092.80

3057-100 Key Insurance Company 3,655 11/01/17 10/31/20 $1.15 $4,203.25 $13.80 $50,439.00 11/01/20 $16.20

3057-300 Frank S. Seo DDC PC 2,526 06/02/02 07/31/22 $1.58 $3,991.08 $18.96 $47,892.96 06/02/20 $19.56

3057-400 Med James, Inc. 2,324 12/01/17 11/30/20 $1.15 $2,672.60 $13.80 $32,071.20

3067-100 Odyssey Wellness Inc. 3,502 05/01/18 05/31/21 $1.10 $3,852.20 $13.20 $46,226.40 05/01/20 $13.80

3077-100 Real Properties Management Group 6,928 06/01/18 07/31/23 $1.10 $7,620.80 $13.20 $91,449.60 06/01/20 $13.80

3087-100 Endure Recovery Services LLC 2,344 10/01/18 09/30/21 $1.10 $2,578.40 $13.20 $30,940.80

3087-300 Janek Performance Group, Inc. 5,014 09/01/18 08/31/23 $1.10 $5,515.40 $13.20 $66,184.80

3097-100 Bee-Well Collective LLC 1,721 08/01/19 07/31/22 $1.25 $2,151.25 $15.00 $25,815.00 08/01/20 $15.60

3097-200 Med James, Inc. 1,740 08/06/18 11/30/20 $1.10 $1,914.00 $13.20 $22,968.00 08/06/20 $13.80

3097-300 Morro Bay Consulting LLC 1,644 07/01/18 06/30/21 $1.10 $1,808.40 $13.20 $21,700.80 07/01/20 $13.80

3097-400 Serenity Wellness Center of Las Vegas 1,764 05/01/19 04/30/22 $1.15 $2,028.60 $13.80 $24,343.20 05/01/20 $14.40

3127-100 Universal Retirement, LLC 3,822 12/01/17 11/30/20 $1.08 $4,127.76 $12.96 $49,533.12

3127-300 Perceptions Counseling Center 3,131 11/01/18 10/31/21 $1.10 $3,444.10 $13.20 $41,329.20 11/01/20 $13.80

Will be relocating to 3037-300 and -400 on/before expiration.

36 Months

36 Months

05/17/20 $13.8005/17/21 $14.4005/17/22 $15.60

09/01/20 $13.8009/01/21 $14.8809/01/22 $15.84

10/01/20 $14.4010/01/21 $15.00

27 Months

36 Months

02/01/21 $14.8302/01/22 $15.28

Term

107 Months

60 Months

49 Months

240 Months

36 Months

60 Months

36 Months

240 Months

62 Months

37 Months

60 Months

36 Months

36 Months

Rent abated July 2020 and July 2021.36 Months

FINANCIAL INFORMATION


RENT ROLL (CON’T)FINANCIAL INFORMATION

Occupied Suites:

Suite Tenant Size Rent/SF Rent/Mo. Rent/SF/Yr Rent/Yr Increases Comments:Term

3127-400 Universal Retirement, LLC 2,502 Included in 3127-100.

3203-100 Guest Concepts, Inc. 1,551 05/01/11 04/30/20 $1.15 $1,783.65 $13.80 $21,403.80

3203-400 Rietz Consulting, Inc. 2,618 03/01/19 02/28/22 $1.20 $3,141.60 $14.40 $37,699.20 Rent increased 03/01/20

3227-100 Writing Adventures LLC 1,590 03/01/15 04/30/21 $1.15 $1,828.50 $13.80 $21,942.00 05/01/20 $14.21

3227-400 Conservatory of Hope Treatment Svcs 3,523 08/01/17 07/31/20 $1.10 $3,875.30 $13.20 $46,503.60

3283-100 Automobile Shipping Quotes, Inc. 1,965 08/01/18 07/31/21 $1.10 $2,161.50 $13.20 $25,938.00 08/01/20 $13.80

3283-300 Actus Holdings 6,439 11/01/18 10/31/21 $1.10 $7,082.90 $13.20 $84,994.80 11/01/20 $13.80

3291-100 Arcadia Security & Patrol, Inc. 2,041 10/01/18 10/31/23 $1.15 $2,347.15 $13.80 $28,165.80

3291-200 Lato & Petrova CPAs, Ltd. 2,156 11/01/09 05/31/21 $1.24 $2,673.44 $14.88 $32,081.28 06/01/20 $15.18

3291-300 MDC Restaurants, LLC 4,084 04/01/19 03/31/22 $1.15 $4,696.60 $13.80 $56,359.20 04/01/20 $14.403291-400

Occupied Total: 80,753 Sq. Ft. $1.12 $90,776.21 $1,089,314.52Percent Occupied: 81.32%

Vacant Suites:

Suite Tenant Size Rent/SF Rent/Mo. Rent/Yr Increases Comments:

3037-300 Available Space 3,057






3203-300 Available Space 835


Vacant Total: 18,546 Sq. Ft.Percent Vacant: 18.68%

Total Property Size: 99,299

36 Months

72 Months

Term

36 Months

36 Months

36 Months

36 Months

108 Months

10/01/20 $13.6810/01/21 $14.1610/01/22 $14.64

139 Months

60 Months


ARGUS - CASH FLOWFINANCIAL INFORMATION

Forecast Forecast Forecast Forecast Forecast Forecast Forecast

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6For the Years Ending Jun-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026 Total

Rental Revenue Potential Base Rent 1,511,241 1,625,052 1,706,379 1,796,536 1,857,189 1,917,038 10,413,435 Absorption & Turnover Vacancy -322,687 -145,699 -20,189 -68,571 -52,140 -68,401 -677,687 Free Rent -43,049 -51,515 -5,348 -18,258 -13,193 -16,355 -147,719 Scheduled Base Rent 1,145,505 1,427,838 1,680,842 1,709,706 1,791,856 1,832,282 9,588,029Total Rental Revenue 1,145,505 1,427,838 1,680,842 1,709,706 1,791,856 1,832,282 9,588,029

Other Tenant Revenue Total Expense Recoveries 6,487 17,922 27,138 31,005 37,645 39,613 159,811Total Other Tenant Revenue 6,487 17,922 27,138 31,005 37,645 39,613 159,811

Total Tenant Revenue 1,151,992 1,445,760 1,707,980 1,740,712 1,829,501 1,871,895 9,747,840

Other Revenue Parking Revenue 13,860 14,207 14,553 14,917 15,281 15,663 88,480 Abatement Creidt 11,024 0 0 0 0 0 11,024Total Other Revenue 24,884 14,207 14,553 14,917 15,281 15,663 99,504

Potential Gross Revenue 1,176,876 1,459,966 1,722,533 1,755,628 1,844,781 1,887,558 9,847,343

Vacancy & Credit Loss Vacancy Allowance 0 -14,868 -154,083 -113,849 -137,552 -127,195 -547,546Total Vacancy & Credit Loss 0 -14,868 -154,083 -113,849 -137,552 -127,195 -547,546

Effective Gross Revenue 1,176,876 1,445,099 1,568,450 1,641,780 1,707,229 1,760,363 9,299,797

Operating Expenses Utilities 16,928 17,436 17,959 18,498 19,053 19,624 109,498 Reparis & Maintenance 44,526 45,862 47,238 48,655 50,114 51,618 288,013 Association Dues 190,219 195,926 201,803 207,858 214,093 220,516 1,230,415 Property Taxes 83,480 85,984 88,564 91,221 93,957 96,776 539,981 Insurance 4,304 4,433 4,566 4,703 4,844 4,989 27,837 Management Fee 35,306 43,353 47,054 49,253 51,217 52,811 278,994 Contracted Services 78,358 80,709 83,130 85,624 88,193 90,838 506,852 Parking Fees to Assoc. 13,860 14,207 14,553 14,917 15,281 15,663 88,480Total Operating Expenses 466,981 487,908 504,866 520,728 536,751 552,835 3,070,070

Net Operating Income $709,895 $957,190 $1,063,584 $1,121,052 $1,170,478 $1,207,528 $6,229,727

Cash FlowLongford Plaza Jul, 2020 through Jun, 2026


ARGUS - CASH FLOW (CON’T)FINANCIAL INFORMATION

Forecast Forecast Forecast Forecast Forecast Forecast Forecast

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6For the Years Ending Jun-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026 Total

Leasing Costs Tenant Improvements 144,919 234,346 55,052 126,108 89,525 121,447 771,397 Leasing Commissions 75,619 111,249 33,637 63,005 34,532 64,154 382,196 Total Leasing Costs 220,539 345,595 88,689 189,113 124,056 185,601 1,153,593

Capital Expenditures Capital Reserves 14,895 14,895 14,895 14,895 14,895 14,895 89,369 Total Capital Expenditures 14,895 14,895 14,895 14,895 14,895 14,895 89,369

Total Leasing & Capital Costs 235,434 360,490 103,584 204,008 138,951 200,496 1,242,962

Cash Flow Before Debt Service 474,462 596,700 960,001 917,044 1,031,527 1,007,032 4,986,765

Debt Service Interest New Loan 308,000 308,000 308,000 303,943 294,861 0 1,522,804 Total Interest 308,000 308,000 308,000 303,943 294,861 0 1,522,804

Principal New Loan 0 0 0 222,904 231,987 0 454,891 Total Principal 0 0 0 222,904 231,987 0 454,891

Total Debt Service 308,000 308,000 308,000 526,847 526,848 0 1,977,695

Cash Flow After Debt Service $166,462 $288,700 $652,001 $390,197 $504,679 $1,007,032 $3,009,070


ARGUS- SOURCES & USESFINANCIAL INFORMATION

Sources and UsesLongford Plaza Jul, 2020 through Jun, 2025

Forecast Forecast Forecast Forecast Forecast Forecast

Year 1 Year 2 Year 3 Year 4 Year 5For the Years Ending Jun-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Total

Sources Of Capital Net Operating Gains 709,895 957,190 1,063,584 1,121,052 1,170,478 5,022,200 Debt Funding Proceeds 7,700,000 0 0 0 0 7,700,000 Initial Equity Contribution 3,377,000 0 0 0 0 3,377,000 Net Proceeds From Sale 0 0 0 0 14,641,275 14,641,275Defined Sources Of Capital 11,786,895 957,190 1,063,584 1,121,052 15,811,752 30,740,474Required Equity Contributions 0 0 0 0 0 0Total Sources Of Capital

Uses Of Capital Property Purchase Price 11,000,000 0 0 0 0 11,000,000 Total Property Purchase Price 11,000,000 0 0 0 0 11,000,000 Total Debt Service 308,000 308,000 308,000 526,847 526,848 1,977,695 Total Loan Costs 77,000 0 0 0 0 77,000 Tenant Improvements 144,919 234,346 55,052 126,108 89,525 649,950 Leasing Commissions 75,619 111,249 33,637 63,005 34,532 318,042 Capital Expenditures 14,895 14,895 14,895 14,895 14,895 74,474 Debt Retirement 0 0 0 0 7,245,109 7,245,109Defined Uses Of Capital 11,620,434 668,490 411,584 730,855 7,910,908 21,342,270Cash Flow Distributions 166,462 288,700 652,001 390,197 7,900,845 9,398,204Total Uses Of Capital

Unleveraged Cash on Cash Return Cash to Purchase Price 4.31% 5.42% 8.73% 8.34% 9.38% 36.18% NOI to Book Value 6.32% 8.25% 9.09% 9.42% 9.72% 41.70%Leveraged Cash on Cash Return Cash to Initial Equity 4.93% 8.55% 19.31% 11.55% 14.94% 59.28%

Unleveraged Annual IRR 12.47%Leveraged Annual IRR 26.09% * Results displayed are based on Forecast data only

11,786,895 957,190 1,063,584 1,121,052 15,811,752 30,740,474

11,786,895 957,190 1,063,584 1,121,052 15,811,752 30,740,474


ARGUS- MARKET LEASING SUMMARY

3,000 SF and smaller 3,000 SF and Larger Dental 3,000 SF and smaller w TI's/LCs by Seller 3,000 SF and Larger w lower TI's

Term Length (Years/Months) 3/2 5/2 5/2 3/2 5/2Renewal Probability 75.00% 75.00% 75.00% 75.00% 75.00%

Months Vacant 9 9 9 9 9Months Vacant (Blended) 2.25 2.25 2.25 2.25 2.25

Market Base Rent (UOM) $ / SF / Month $ / SF / Month $ / SF / Month $ / SF / Month $ / SF / MonthMarket Base Rent (New) $1.40 $1.35 $1.60 $1.40 $1.35Market Base Rent (Renewal) $1.40 $1.35 $1.60 $1.40 $1.35Market Base Rent (Blended) $1.40 $1.35 $1.60 $1.40 $1.35

Rent Increases (annually) 3% 3% 3% 3% 3%

New Free Rent (Months) 2 2 2 2 2Renewal Free Rent (Months) 0 0 0 0 0Blended Free Rent (Months) 0.5 0.5 0.5 0.5 0.5

Recovery Type Base Year Stop Base Year Stop Base Year Base Year Stop Base Year Stop

Tenant Improvements (UOM) $ / Area $ / Area $ / Area None $ / AreaTenant Improvements (New) $10.00 $10.00 $10.00 $0.00 $5.00Tenant Improvements (Renew) $3.00 $3.00 $3.00 N/A N/ATenant Improvements (Blended) $4.75 $4.75 $4.75 N/A N/A

Leasing Commissions (New) 6% 6% 6% 0% 6%Leasing Commissions (Renew) 2.50% 2.50% 2.50% 0% 2.50%

Upon Expiration 3,000 SF and smaller 3,000 SF and Larger Dental 3,000 SF and smaller 3,000 SF and Larger

Market Leasing SummaryLongford PlazaAs of Jul, 2020

FINANCIAL INFORMATION

LAS VEGAS VALLEYOVERVIEW05


Raiders Stadium - $1.9 Billion 62-acres west of the Strip

T-Mobile Arena 20,000 Seating Capacity

Raiders Corporate Headquarters 320,000 SF Practice Facility

Las Vegas Ballpark - $150 Million 10,000 Seating Capacity

Vegas Golden Knights Practice Facility UFC Corporate Headquarters

SPORTS/ENTERTAINMENT

Long heralded as “the entertainment capital of the world,” Las Vegas is on its way to adding “sports” to that title.

Residents and visitors can chose from seasonal events such as the NBA Summer League and the Wrangler National Finals Rodeo or the variety of homegrown professional and semi-professional teams.

The Las Vegas valley is poised to become a premier sports destination for fans of all types.

LAS VEGAS VALLEY OVERVIEW


LOW COST OF DOING BUSINESS:The combination of our zero inventory tax, a rich transportation infrastructure, and the geographic location of the state’s two largest urban centers are prime reasons that top brands like Amazon, Wal-Mart, Levi Strauss & Co., Barnes & Noble, Ur-ban Outfitters, and others choose Nevada to stage their warehousing and distribution strategies.

Collectively, the cities of Las Vegas, Reno, Sparks, Carson City and surrounding towns are less than one day’s drive over arterial interstate highways to near-ly 60 million consumers as well as to the major U.S. deep water seaports serving the Pacific Rim. Major Union Pacific and Southern Pacific rail connections in Las Vegas and Reno also, too, play an essential role in carrying the world’s freight from the Pacific Coast to America’s Heartland and beyond.

Nevada offers a very competitive cost of doing business and is attracting more and more compa-nies each day from higher-cost regions.

NEVADA HAS:• An abundance of economical commercial

real estate

• Competitive utility rates for commercial operations

• Low-cost startup, regulatory, licensing and annual fees

• Proximity to West Coast/California markets and businesses, reducing shipping and storage costs

• Excellent air cargo costs for shipping by air out of Nevada

• Nevada business incentives

1. Tax abatements for job creation, capital investment and intellectual property development

2. Workforce development training grants

3. Catalyst Fund to support new business or expansion in state

EXCELLENT TAX ADVANTAGES:

NO Personal Income Tax

NO Corporate Income Tax

NO Unitary Tax

NO Franchise Tax

NO Inventory Tax

NO Estate Tax

NO Inheritance Tax

NEVADA BUSINESS ADVANTAGES

Provided by:

www.diversifynevada.com

NEVADA BUSINESS ADVANTAGESLAS VEGAS VALLEY OVERVIEW


MORE ON LOW COSTS OF DISTRIBUTION TO WEST COAST MARKETS:The combination of our zero inventory tax, a rich trans-portation infrastructure, and the geographic location of the state’s urban centers are prime reasons that top brands like Amazon, Wal-Mart, Levi Strauss & Co., Barnes & Noble, Urban Outfitters, and others choose Nevada to stage their warehousing and distribution strategies.

Las Vegas is less than one day’s drive over arterial In-terstate highways to nearly 60 million consumers as well as to the major U.S. deep water seaports serving the Pacific Rim. Major Union Pacific and Southern Pacific rail connections in Las Vegas play an essential role in carrying the world’s freight from the Pacific Coast to America’s Heartland and beyond.

Globally, McCarran International Airport in Las Vegas has been a Top 20 airport for more than five years, an-nually serving more than 40 million and handling more than 189 million pounds of cargo. More important, the airport is served by nonstop flights to and from nearly all major metropolitan areas in the United States as well

as several important global centers in Europe, Asia and Latin America.

MORE ON NEVADA’S TAX ADVANTAGES:Nevada ranks a very favorable third in the Tax Founda-tion’s 2012 Business Tax Climate Index, an independent ranking of states in five areas of taxation: corporate taxes; individual income taxes, sales taxes, unemploy-ment insurance taxes, and taxes on property, including residential and commercial property.

The Tax Climate Index comparison to neighboring states is significant: California ranks 48th, Arizona 27th, Idaho 21st, Oregon 13th and Utah 10th.

In addition to the Tax Climate Index, Nevada ranks sec-ond in the nation for lowest state and local tax burden – an estimated 7.5% of income.

The state’s historically strong logistics and distribution business sector is as much a statement of tax policy – no Inventory Tax – as it is of the excellence of its air, rail and highway arterial infrastructure and proximity to major markets and ports.

NV State Population

3.03M2018

Employment

1.48MJUL 2019

Spending

$5.44BMAY 2019

Provided by:

www.diversifynevada.com

NEVADA BUSINESS ADVANTAGES (CON’T)LAS VEGAS VALLEY OVERVIEW


RESORTS WORLD$4.2B

CONVENTION CENTER EXP.$1.4B UNION VILLAGE$1.2B SWITCH$1.0B PROJECT NEON$1.0B

EXTREME SPORTS PARK$800MTHE MAJESTIC$850M MSG SPHERE$TBD

LAS VEGAS STADIUM$1.9B

THE DREW$3.1B

$24+ Billionin New Capital Investment

is Driving Growth

HENDERSON WEST$950M

JACKIE ROBINSON ARENA$2.7B

*From Applied Analysis

LAS VEGAS OVERVIEWLAS VEGAS VALLEY OVERVIEW


LasVegas

METROPOLITAN STATISTICAL AREA STATS

2.3M2018 POPULATION

1.1MLABOR FORCE

3.7%UNEMPLOYMENT

RATE

$808MGROSS CASINO

GAMING REVENUE

3.5MVISITOR VOLUME

$265KEXISTING HOME

MEDIAN CLOSING PRICE

$57.2KMEDIAN INCOME

30.8%COLLEGE EDUCATED

POPUATION

32.5%POPULATION EMPLOYED

IN LEISURE AND HOSPITALITY

From LVGEA

LAS VEGAS STATSLAS VEGAS VALLEY OVERVIEW


Las Vegas VS Los Angeles

San Francisco

$82K AVERAGE TECH SALARIES $97K $114K

$82K x 500 100,00 SF @ 200 SF/PERSONEQUALS 500 PEOPLE

$97K x 500 $114 x 500

$40.9MM AVG SALARY X HEADCOUNT=TOTAL ANNUAL SALARY COST $48.4MM $56.8MM

100,000 SF@ $23.11 PSF GROSS

REAL ESTATE COSTSCLASS B RENTS - PER YEAR

100,000 SF@ $48.30 PSF GROSS

100,000 SF@ $92.40 PSF GROSS

$2.3MM $4.8MM $9.2MM$409MM + $23MM TOTAL

10 YEAR SALARY COST + REAL ESTATE COST$484MM + $48MM $568MM + $92MM

$432MM $532MM $660MMFrom www.business.org

LAS VEGAS BUSINESS DIFFERENTIATORS

CHOOSING LAS VEGAS WILL SAVE $100M - $228Min combined labor and real estate costs over a 10-year period

LAS VEGAS VALLEY OVERVIEW


SUN COMMERCIAL REAL ESTATE, INC. (the “Broker”) has been retained on an exclusive basis to market the property described herein (the “Property”). Broker has been authorized by the Seller of the Property (the “Seller”) to prepare and distribute the enclosed information (the “Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller deems appropriate.

The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma.

Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto.

Property walk-throughs are to be conducted by appointment only. Contact Brokers for additional information.

CONFIDENTIALITY & DISCLOSURE

Cathy Jones, CPA, SIOR, CCIMCEO

[email protected]

NV Lic # B0056010.CORP

Michael HsuSenior Vice President

[email protected]

NV Lic # S.0051609.LLC

Paul MiachikaExecutive Vice President

[email protected]

NV Lic # S.0184612

Sun Commercial Real Estate, Inc.6140 Brent Thurman Way, Suite 140, Las Vegas, Nevada 89148

702 | 968 | 7300 Ph • 702 | 968 | 7301 Faxwww.SunCommercialRE.com

CONTACTS

3037-3291 E. Warm Springs Road | Offering Memorandum

3037-3291 E. Warm Springs Road, Las Vegas, NV 89120...Park 700 E. Silverado Ranch Blvd., Las Vegas,...

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