Home Depot - Marcus & Millichap · Home Depot installed a new roof at Home Depot’s expense, ......

Offering Memorandum

Home DepotHenderson, NV

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

NON-ENDORSEMENT NOTICE

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

exclusively listedPerry WhiteLAS VEGAS

Tel: (702) 215-7100Fax: (702) 215-7110 License: NV B.0034578.CORP

Exclusively listed by: Nevada Broker of Record:

OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com

Home Depot

EXECUTIVE SUMMARYOffering Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Investment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Union Village . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Market Aerial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Summary of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

PROPERTY DESCRIPTIONRegional Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Local Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Site Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Aerial Photograph . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Parcel Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

FINANCIAL ANALYSIS Schedule of Prospective Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . 16

Tenant Overview and Lease Abstract . . . . . . . . . . . . . . . . . . . . . . . 17

COMPETITIVE PROPERTY SETSales Comparables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-23

MARKET OVERVIEWLocation Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Las Vegas MSA Market Overview . . . . . . . . . . . . . . . . . . . . . . 27-33Las Vegas Retail Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34-38Demographic Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40-41

Table of Contents

summaryE X E C U T I V E S U M M A R Y

EXECUTIVE SUMMARY

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0120535

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WHome Depot

OFFERING SUMMARY Offering Price $24,348,000

Cap Rate 5.75%

Gross Leasable Area (GLA) 102,370 SF

Price/SF (GLA) $237.84

Year Built/Renovated 1992/2007

Lot Size 9.071 +/- Acres

LEASE SUMMARY Lease Type Triple Net (NNN)

Roof Membrane Tenant Responsible

Structure Landlord Responsible

Lease Guarantor Corporate Guarantee

Original Lease Term 20 Years - December 1991

Current Lease Term New 15 Years

Rent Commencement Date 02/01/2013

Lease Expiration Date 01/31/2028

Remaining Lease Term 12.2 Years

Options Three, Five-Year Options

HOME DEPOT1030 West Sunset Road Henderson, NV 89014

Offering Highlights

• Approved Future Pad Location

ANNUALIZED OPERATING DATA

Rent Increases Annual Rent Monthly Rent

Current Lease Term $1,074,885 $89,573.75

2018-2028 $1,400,000 $116,666.67

2/21/2028 - Option 1 $1,540,000 $128,333.33

2/21/2033 - Option 2 $1,694,000 $141,116.66

2/21/2038 - Option 3 $1,863,400 $155,283.33

Net Operting Income $1,400,000

Total Return 5.00% / $1,400,000

*The difference between current base rent and February 1, 2018 will be credited to the purchase price at COE.

Tenant installed new roof approximately 5 years ago at Tenant’s expense.

Option Rents Capped at 10% CPI for purpose of this analysis. Actual escalation may vary.

LEASE SUMMARY Original Lease term was 20 years, having commenced in December 1991. The lease was extended five years in February 2013 in the Fourth Amendment. The Fifth Amendment to Lease extended the firm term of the lease through January 31, 2028. Home Depot has three 5-year options.


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EXECUTIVE SUMMARY

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Investment Overview

Marcus & Millichap has been selected to exclusively market for sale a Home Depot location in the heart of the largest retail district in the southeast quadrant of the Las Vegas Valley . Located at the intersection of Interstate 515 and West Sunset Road, Home Depot is the anchor to Sunset Plaza, a 265,000-square-foot retail center, the balance of which is owned by Sun Life Insurance Company . The site consists of 9 .071 acres and has frontage adjacent to unimpeded visibility on I95/515 and is perpendicular to West Sunset Road and fronts Marks Road with a combined traffic count of 164,000 vehicles per day . The building is Type VN fire sprinklered with a Group B, Division 2 occupancy . Foundations under the columns are reinforced concrete spread footings . The block masonry walls are supported on reinforced concrete continuious footings . The floor at the interior of the building is a 5” thick concrete grade slab reinforced with wire mesh . The overall height from finished floor to top of wall is about 30’ . The 16,500 SF exterior garden center is covered with a screened roof . The building depth is approximately 250’ .

The region is home to over 4 .1 million square feet of retail space, including the 1 .2 million-square-foot Galleria at Sunset enclosed mall, which is anchored by Dillard’s, JC Penney, Macy’s, Dick’s Sporting Goods and Kohl’s, along with 133 other retailers .

The property is also directly across from Eastgate Power Center, a 346,000-square-foot center anchored by a Walmart Supercenter, Office Depot, Party City, Lowe’s and 99 Cents Only Store . Other retailers in the immediate area include Costco, Best Buy, Petco, Target, Bed, Bath & Beyond, Ross, CVS, Sears, OfficeMax, TJ Maxx, Sports Authority, Toys“R”Us, and many more .

On the opposite corner of the intersection, covering 98 acres is the 448-room Sunset Station Hotel & Casino . It offers a 13-screen movie theater, 542-seat bingo hall, and Las Vegas’s largest bowling alley with 72 lanes and open 24 hours per day . The resort also offers nine restaurants and a 5,000-square-foot amphitheater, and draws both locals and tourists to the region .

This densely populated area is home to more than 266,000 residents within a five-mile radius, a figure that is projected to grow by more than 11 percent within the next four years . Ideally situated at the southern rim of the Las Vegas Valley, the City of Henderson is just minutes from the glitter of the Strip and a few miles from the serenity of Mount Charleston . With the state of Nevada’s “no corporate tax” and “no personal income tax,” major corporations such as Levi Strauss & Company, Ocean Spray, Ford Motor Credit, Toyota Financial Service and many others are finding Henderson a great place to do business .

Investment Highlights■■ Firm lease term through January 31, 2028

■■ Home Depot is well seasoned at this location having occupied the building since 1992 when it was built, demonstrating longevity and commitment to this location and region

■■ Home Depot installed a new roof at Home Depot’s expense, further demonstrating Home Depot’s commitment to the property .

■■ Located in the Heart of Southeast Las Vegas Valley’s Retail Hub

EXECUTIVE SUMMARY


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Union Village

Union Village, located at the northeast corner of US 93/95 and Galleria Drive, in Henderson, Nevada, will be the first integrated health village and master planned community in the world . It has been noted as being the largest healthcare building project in the United States by Health Facilities Management . A 170 acre project will include UnionCentre, featuring a four-hospital medical complex with a 90,000 square foot ath-

letic facility and a 350-unit townhome development catering to seniors and a growing retirement community offering a state of the art hospital and several healthcare facilities situated as the hub to the community; UnionPlaza, a specialty retail center with medical offices, residential apartments, entertainment and a mid-range all-suite hotel; and UnionPlace, home to a vibrant independent Senior living village with golf course and activities centers; and UnionSquare, serving as the village’s cultural center complete with a space and science center and a possible performing arts center including an IMAX theatre . having broken ground in 2014 and whose first phase of the hospital expecting com-pletion towards the end of 2016, at an estimated cost of $1 .2(Bil) initial investment, the Village is projected to be an integrated health village with state of the art technology and environmental sustainability featuring a world class healthcare center integrated into retail, entertainment and cultural centers as well as smart senior and residential com-munities which is projected to produce 17,000 jobs (including initial construction) and a dynamic economic engine generating nearly $1 .7(Bil) in tax revenues over 25 years .

Henderson Hospital of Union Village will be a 142 bed facility featuring emergency services, intensive care units, in patient and out patient services, women and children services and cardiology . It is anticipated that the hospital will tap into the surrounding universities, medical and nursing schools and become a foremost teaching hospital in the State .

UnionCentre – a State-of-the-Art and World-Class Healthcare Center comprised, in its initial phase, a full continuum of care including an Acute Care Hospital, an Ambulatory Care Center, a Long Term Acute Care Hospital, a Skilled Nursing Facility, Medical Of-fice Buildings and a Wellness Center to serve the people of South Nevada as a regional, national and international center of excellence for decades . The first phase is anticipated to be 450,000 Square Feet and would include 307 beds .

UnionPlace – UnionPlace is a Wellness Retirement Village of the future for up to 1,500 vibrant seniors, as well as those with special service needs for assisted living and memory care . Included in UnionPlace will be every resource to remain “connected” to families and healthcare professionals and to continue an unequaled quality of life and personal growth: video conferencing; virtual university and learning center; virtual competition in golf, bowling, tennis and other activities; virtual travel throughout the world; and, a virtual Center for Arts & Entertainment .

UnionPlaza – Approximately 300,000 square feet of specialty retail and a mid-range all-suite Hotel and Conference Center artfully integrated into the village lifestyle (res-taurants, multi-screen theater, athletic club, food court, inter-generational child devel-opment center, specialty retail and offices) .

UnionSquare– The Village will be a series of thematic walks and pedestrian pathways and parks for a cultural center for the Henderson Space and Science Center, a possible Performing Arts Center and future medical education facilities and research centers .

WELLNESS & SENIOR

HOUSING

SENIOR RESIDEN-

TIAL

TOWNHOME RESIDEN-

TIAL

UHSHOSPITAL

SNFLTACHHOTEL, RETIAL &

ENTERTAINMENT

HIGH-RISE RESIDENTIAL

OFFICE

RETAIL ANCHOR

Future Development

BURGER


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EXECUTIVE SUMMARY

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Summary of Terms

Interest Offered

Fee interest in Home Depot, a 102,370-square foot single tenant property sitting on 9 .07 acres located at 1030 West Sunset Road, Henderson, NV 89014 .

Terms of the Sale

Home Depot is offered at $24,348,000 based on a capitalization rate of 5 .75% on future rents .

THE WORLD FAMOUS LAS VEGAS STRIPMcCarran International Airport

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LAKE MEAD NAT'LRECREATION AREA

Las Vegas Wash

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Athens Ave

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University Of Nevada-Las Vegas

Community CollegeOf Southern Nevada


LAS VEGAS STRIP

Sams Town Hotel Gambling Hall

Boulevard Mall

Hoover Dam

Galleria/Sunset Mall

Bus Station

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LAS VEGAS NEVADA

ARIZO

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NORTH LAS VEGAS

HENDERSON

King 8 Hotel &Gambling Hall Tropicana

San Remo

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Mandalay Bay

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Monte CarloHoliday Inn Boardwalk

Aladdin

ParisBellagioJockey

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Circus Circus

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Days InnTown Hall

Hard RockHotel

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SaharaPalaceStation

Stratosphere

La Concha

Venetian

Royal

Westward Ho

Stardust

New Frontier

Wet 'N Wild

Las Vegas Hilton

Las VegasConvention

Center

LiberaceMuseum

Regional Map

Home Depot


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Home Depot

Subject Property

Local Map


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Site Plan

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6,880 SF DEVELOPABLE

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Aerial Photo

6,880 SF DEVELOPABLE

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Parcel Map

analysisF I N A N C I A L A N A LY S I S

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Home Depot


FINANCIAL ANALYSIS

Founded in 1978, The Home Depot is the world’s largest home improvement specialty retailer, with more than 2,200 retail stores in 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The company helped create the “do-it-yourself ” concept, spawning an entire industry that now spans the globe. Store inventories include up to 40,000 different kinds of building materials, home

improvement supplies, appliances and lawn and garden products. Selections may vary from store to store because The Home Depot stores are always stocked with merchandise that is localized to match each area’s specific market needs. Stores average 105,000 square feet, with approximately 23,000 additional square feet of outside garden area.

The Home Depot had sales of $83.2 billion and earnings of $6.3 billion. The Company employs more than 300,000 associates. The Home Depot’s stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor’s 500 index.

Tenant Overview

Property Name Home Depot

Property Address 1030 West Sunset Road, Henderson, NV 89014

Property Type Net Leased

Total Net Rentable Area 102,370

Tenant Trade Name Home Depot

Ownership Public

Tenant Corporate Store

Sales Volume 2015 $83.18(BIL)

Lease Guarantor Corporate

Stock Symbol HD

Original Lease Commencement Date 12/01/1991

Current Lease Extension Start Date 02/01/2013

Rent Commencement Date 02/01/2013

Lease Expiration Date 01/31/2028

Term Remaining on Lease 12.2 Years

Lease Type Triple Net (NNN)

Roof Tenant Responsible for Roof Membrane

Structure Landlord Responsible

Lease Term New 15 Years

Year 1 Net Operating Income* $1,400,000

Increases During Options CPI CAP’D @ 10%

Options to Renew Three, Five-Year Options Remain

Options to Purchase 30 Day ROFO

First Right of Refusal 15 Day ROFR

No. of Locations 2,265 +/-

Headquartered Atlanta, GA

Website www.homedepot.com

Corporate Profile

Years in the Business 37 Years

*Future Rent

competitiveC O M P E T I T I V E P R O P E R T Y S E T

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COMPETITIVE PROPERTY SET

Recent Sales

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Pierre

Bismark

Bloomington

Duluth

Rochester

Dubuque Sioux City Waterloo

Jefferson City

Independence

St Joseph

Columbia

Fort Smith North

Little Rock

Pine Bluff

Lafayette

GreenBay

Joliet

Clarksville

Tuscaloosa

Dothan

Frankfort

Owensboro

Tallahassee

Albany

Macon

Greenville

Durham

Greensboro

Asheville

South Bend

Evansville

Lansing

Augusta Portland

Montpelier

Concord

Utica

Harrisburg

Allentown Trenton

Ellensburg

Yakima Ritzville

Pasco

Oroville

Kelso

Walla Walla

Forks

Shelton

Madras

Pendleton

Bend John Day

Riley

BumsJunction

Grants Pass

Klamath Falls

Lakeview Crescent City

Eureka Weed

Redding

Alturas

Susanville

Santa Rosa

Napa

Paso Robles

San Luis Obispo

Santa Barbara Ventura

OxnardBarstow

Blythe

Needles

Fredonia Page

Kayenta

Tuba City

Kingman

Ash Fork

Wickenburg

Sedona Holbrook

St John's

Springerville

Casa Grande

Benson

Nogales

Yuma Globe

Safford

Monticello

GreenRiverSalina

Price Delta Duchesne

Heber City

Wendover

Logan

Cedar City

Pocatello Rupert Twin Falls

Carey

Arco

Idaho Falls

Humphrey

Challis Weiser

Grangeville

Lewiston

Coeur d' Alene

Kalispell Shelby

Havre

Malta

Glendive

Miles City

Forsyth

Roundup

Bozeman

Butte

Missoula

Hardin

Alzada

Laramie

Rawlins Wheatland

Douglas Casper

Green River

Kemmerer

Pinedale

Hoback Junction

Riverton

Sheridan

Greybull Buffalo Gillette

Moorcroft

Trinidad

Lamar Monte Vista Durango

Cortez

Montrose

Grand Junction

Salida

Limon

Sterling Craig

Carlsbad

Artesia

Roswell

Alamogordo

Vaughn

Santa Rosa Tucumcari

Springer

Raton

Deming Lordsburg

Socorro

Gallup

Taos

Amarillo

Dalhart

Shamrock

Lubbock

Van Horn Pecos

Fort Stockton

Odessa Big Spring

Lamesa

Clovis

Guthrie

San Angelo

Beaumont

Victoria

George West

McAllen

Junction

Abilene

Waco

Longview

Alexandria

Texarkana El Dorado

Jonesboro Fayetteville

Harrison

Conway

Joplin

Nevada

West Plains

Rolla

Macon Bethany

Spencer Mason City

Fort Dodge

Carroll

Osceola Ottumwa Burlington

Ardmore Atoka

Muskogee

Stillwater Ponca City

Boise City Guymon

Hutchinson Emporia

Hays

Garden City

Dodge City

Colby Smith Center

Chadron

Sidney

Ogallala North Platte

Thedford

Ansley

McCook Hastings

Northfork

O'Neill

Buffalo

Dupree Aberdeen

Gettysburg Watertown

Hot Springs

Martin

Murdo

Winner Mitchell

Williston

Belfield

Bowman

Minot

Rolla

Carrington

Jamestown

Ellendale

Grand Forks

Jackson

Mankato Lake Benton

St Cloud

Fergus Falls

Detroit Lakes

Bemidji Grand Rapids

Virginia

Biloxi

Hattiesburg

Meridian

Greenwood

Tupelo

Natchez

Grove Hill

Evergreen

Anniston

Gadsden Decatur

Kingsport

Murfreesboro

Jackson

Dyersburg

Cookville

Bowling Green

Somerset Corbin

Carbondale

Mt Vernon

Mattoon

Bloomington

La Salle

La Crosse

Stevens Point

Eau Claire

Cameron

Eagle River

Laona

Wentworth

Petoskey

Alpena

Traverse City

Cadillac

West Branch

Mount Pleasant Saginaw

WarrenHolland

Kalamazoo Benton Harbor

Seymour

Vincennes

Kokomo

Lafayette

West PalmBeach

Melbourne

DaytonaBeach

Gainesville

Ocala

Naples

FortMyers

Pensacola

Waycross Brunswick

Cordele

Augusta Athens

Gainesville

Dalton

Springfield

Lima

Findlay Mansfield Canton

Warren Meadville Williamsport

Scranton

Houlton

Jackman

Bangor

Burlington

Rutland Lebanon

St Johnsbury

Elmira

Watertown

Plattsburgh

Binghamton Waterbury

AtlanticCity

Cumberland Wheeling

Clarksburg Parkersburg

Beckley

Staunton

Fredericksburg

Lynchburg

Danville

Roanoke

Martinsville

Wilmington

Greenwood

Orangeburg

MyrtleBeach

Winnemucca

Fallon

Wells

Ely

Tonopah

Bakersfield

Fayetteville

Walsenburg

Minden Monroe

InternationalFalls

Astoria

Vail

Monterey

Hawthorne

Palm SpringsPrescott

Galveston

Nacogdoches

Huntsville

HotSprings

Opelika

Huntington

Marquette

Springfield Worcester

Hartford

Rockford

Tacoma Spokane

Las Vegas

Reno

Anaheim

Fresno

San Jose

Oakland

Riverside

Mesa

Tucson

Salt Lake City

Boise

Billings

Aurora

ColoradoSprings

Albuquerque

Austin

Arlington

Corpus Christi

El Paso

Oklahoma City

Tulsa

Topeka Kansas City

Wichita

Lincoln Omaha

Sioux Falls

Rapid City

Fargo

St Paul

Des Moines Davenport

Cedar Rapids

Springfield

Little Rock

Baton Rouge

Shreveport

Madison

Springfield

Peoria

Nashville

Chattanooga

Knoxville

Memphis

Jackson Montgomery

Birmingham

Huntsville

Mobile

Lexington Louisville

FortLauderdale

Columbus Savannah

Columbia

Charleston

Raleigh Winston- Salem

Charlotte

Richmond

Norfolk

Charleston

Fort Wayne

Gary Akron

Dayton

Toledo

Flint GrandRapids

Rochester Syracuse Albany

Erie Newark

Flagstaff

Ciudad Juarez

Eugene

Orlando

Seattle

Chicago

Houston

DallasFt. Worth

Pittsburgh

Baltimore

DC

San Diego

Cincinnati

Milwaukee

Kansas City

Buffalo

Portland

San Antonio New Orleans

Sacramento

SF

Phoenix

Denver

Minneapolis

St Louis

Jacksonville

Tampa

Atlanta

Indianapolis Columbus

Cleveland

Detroit

Miami

Boston

LA

NewYork

Philadelphia

Sample

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5

62

1

Recent Sales Map

Subject Property

1 Home Depot - San Jose CA

2 Home Depot - Lincoln NE

3 Home Depot - Watertown MA

4 Orchard Supply Hardware - San Leandro

5 Orchard Supply Hardware - Van Nuys

6 Lowe’s - San Bruno CA

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Home Depot




Recent Sales

1 Home Depot - San Jose | 635 West Capitol Expressway, San Jose, CA 95136

2 Home Depot - Lincoln | 3300 North 27th Street, Lincoln, NE 68521

Subject Property | 1030 West Sunset Road, Henderson, NV 89014

Offering Price: $26,170,000

Percent Down: 100%

Cap Rate: 5.75%

Price/SF: $255.64

Gross Leasable Area (GLA): 102,370

Year Built/Renovated: 1992/2007

Close of Escrow: 3/27/2014

Sales Price: $15,575,000

Percent Down: 100%

Cap Rate: 3.97%

Price/SF: $127.00


Year Built: 1997

Close of Escrow: On Market


Percent Down: 100%

Cap Rate: 4.75%

Price/SF: $90.54


Year Built: 1994/2003

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Recent Sales

4 Orchard Supply Hardware - San Leandro | 300 Floresta Boulevard, San Leandro, CA 94578

5 Orchard Supply Hardware - Van Nuys | 5960 Sepulveda Boulevard, Van Nuys, CA 91411

Home Depot - Watertown | 615 Arsenal Street, Watertown, MA 02472



Percent Down: 100%

Cap Rate: 5.37%

Price/SF: $94.44


Year Built: 2002


Sales Price: $ 80,000,000

Percent Down: 100%

Cap Rate: 5.00%

Price/SF: $632.61


Year Built/Renovated: 2002



Percent Down: 40%

Cap Rate: 4.51%

Price/SF: $348.52


Year Built: 1988/2013

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Home Depot




Recent Sales

6 Lowe’s - San Bruno | 1340 El Camino Real, San Bruno, CA 94066



Percent Down: 100%

Cap Rate: 4.50%

Price/SF: $427.31


Year Built/Renovated: 1989/2002

overviewM A R K E T O V E R V I E W

MARKET OVERVIEW

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Location Overview

Henderson, officially the City of Henderson, is a city in Clark County, Nevada . It is the second largest city in Nevada, after Las Vegas, with an estimated population of 270,811 in 2013 . The city is part of the Las Vegas metro-politan area, which spans the entire Las Vegas Valley . Henderson occupies the southeastern end of the valley, at an elevation of approxi-mately 1,330 feet .

In 2011, Forbes magazine ranked Henderson as America’s second safest city . Henderson has also been named as “One of the Best Cities to Live in Amer-ica” by Bloomberg Businessweek . In 2014, Henderson was again ranked as one of the Top 10 “Safest Cities in the United States” by the FBI Uniform Crime Report .

Major employers in Henderson include the City of Henderson, St . Rose Dominican Hospital, Green Valley Ranch, M Resort, Sunset Station, Medco Health Solutions, and Walmart .

An increasing number of major shopping malls, movie theater complexes, restaurants and casino resorts offer residents a variety of choices for leisure time in Henderson . The city also sits a few miles southeast of Las Vegas and is not far from the world-famous Las Vegas Strip . “Shakespeare in the Park” celebrated its tenth anniversary in 1996, a testament to Henderson’s long-standing support for the arts and cultural programs . The city also boasts the largest recreational facility in Nevada, the Multigenerational Facility at Liberty Pointe, as well as Nevada’s only scenic bird preserve . The city sup-ports a variety of other cultural events as well, many of which are held at the outdoor amphitheater, the largest one of its kind in Nevada .

Location Highlights■■ Henderson is the Second Largest City in Nevada■■ Estimated Population of 270,811 in 2013■■ Ranked as One of America’s Safest Cities■■ Henderson Is Strong Supporter of Arts and Cultural Programs

MARKET OVERVIEW

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Las Vegas

Market Highlights Increasing Population

■■ Population growth in Las Vegas will dramatically outpace that of the nation over the next five years .

Large Tourism Industry

■■ Approximately 39 million tourists visit Las Vegas annually, producing gaming revenues in excess of $9 billion .

Strong Employment Growth■■ Job creation over the next five years will occur almost twice as fast as

the national rate .

LAKE MEAD NAT'LRECREATION AREA

Las Vegas Wash

Las Vegas Wash

Flamingo Wash

Lake Mead

SaharaLake

Union Paci�c R

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Unio

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Union Paci�c Railroad

Ann Rd

Dur

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Dr

Dec

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Blv

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Lone Mountain Rd

Tena

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Lose

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Sim

mon

s St

Alexander Rd

Ram

part

Blv

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Bu�a

lo D

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Sun City BlvdDel Webb Blvd

Anas

azi D

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Hillpointe Rd

Smoke Ranch Rd Carey Ave

Coran Ln

Stat

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Holly

woo

d Bl

vd

Town Center Dr

Summerlin Pkwy

Vegas Dr

Linn

Ln

Cim

arro

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Westcli� Dr

9th

St

Dec

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Blv

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Dur

ango

Dr

Bu�a

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Ram

part

Blv

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Alta Dr

Bruc

e St

Moj

ave

Rd

Sloa

n Ln

Tena

ya W

ay

Oakey Blvd

Indu

stria

l Rd

Saint Louis Ave

Hual

pai W

ay

Para

dise

Rd

Mcl

eod

Dr

Mcleod D

r

Lake North Dr

Lake South Dr

Sand

hill

Rd

Desert Inn Rd

Spring Mountain Rd

Kova

l Ln

Mou

ntai

n Vi

sta

St

Peco

s Rd

Peco

s Rd

Step

hani

e St

Patrick Ln

Whitney Ranch DrGa

lleria

Dr

Gree

n Va

lley

Pkw

y

Sunset Rd

Sunset Rd

Athens Ave

Valle

Ver

de D

r

Pabc

o Rd

Warm Springs Rd

Warm Springs RdWarm Springs Rd

Cent

er S

t

Robindale Rd Robindale Rd

Windmill PkwyWindmill Ln

Water St

Pion

eer S

t

Paci

�c A

ve

Pueb

lo B

lvd

Van Wagenen St

Majo

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Sausalito Dr Mag

ic W

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Gibs

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Horizon Ridge Pkwy

Equestrian DrHorizon Dr

Foot

hills

Dr

Colle

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Nevad

a Hwy

Adams Blvd

Fort

Apac

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Camino Al N

orte

La

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as B

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Las Vegas Blvd

Jone

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nes B

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Dec

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Blv

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Lam

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vd

Rancho Dr

Craig RdCraig Rd

Peco

s Rd

Mar

tin L

Kin

g Bl

vd

Nel

lis B

lvd

Cheyenne Ave Cheyenne Ave

Lake Mead BlvdLake Mead Blvd

Carey Ave

Lake Mead Blvd

Bruc

e St

Owens AveVegas Dr Owens Ave

Main

St

East

ern

Ave

Washington Ave Washington Ave

Valle

y Vie

w B

lvd

Bonanza Rd

Bonanza Rd

Jone

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Dec

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Blv

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Ranc

ho D

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Dur

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Dr

Main

St

Rain

bow

Blv

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Las V

egas

Blvd

S

Mar

ylan

d Pk

wy

Mar

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Pkw

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Charleston BlvdCharleston Blvd

East

ern

Ave

Nel

lis B

lvd

Lam

b Bl

vd

Sahara AveSahara Ave

Boulder Hwy

Para

dise

Rd

Desert Inn Rd

Flamingo Rd Flamingo Rd

Lake Mead Dr

Tropicana AveTropicana Ave

Russell Rd

Mcc

arra

n Ap

t Rd

Sunset Rd

Sunset Rd

Boulder Hwy

Boulder Hwy

Lake Mead DrWigwam Pkwy

Lake Mead Dr

Lake Mead Blvd

Northshore Rd

Lakeshore Rd

Mou

ntai

n Vi

sta

St

Fremont St

Boulder Hwy

Las Vegas Beltway


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plete in 2001)

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Mc CarranInt'l Airport

N. Las VegasAirport

Las VegasHendersonSky Harbor

Airport

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University Of Nevada-Las Vegas



LAS VEGAS STRIP

Sams Town Hotel Gambling Hall

Boulevard Mall

Hoover Dam

Galleria/Sunset Mall

Bus Station

Nellis Air Force Base

95

95

93

146

564

574

589

593

147

95

9515

15

15

215

215

LAS VEGAS NEVADA

ARIZO

NAPARADISESPRING VALLEY

NORTH LAS VEGAS

HENDERSON

King 8 Hotel &Gambling Hall Tropicana

San Remo

La Quinta Strip

Mandalay Bay

Luxor

MGMGrand

Monte CarloHoliday Inn Boardwalk

Aladdin

ParisBellagioJockey

Club

CaesarsPalace

Circus Circus

BallysMaxim

Days InnTown Hall

Hard RockHotel

HarrahsImperial Palace

Casino RoyaleThe MirageTreasure Island

Desert Inn

Riviera

SaharaPalaceStation

Stratosphere

La Concha

Venetian

Royal

Westward Ho

Stardust

New Frontier

Wet 'N Wild

Las Vegas Hilton

Las VegasConvention

Center

LiberaceMuseum

GeographyThe Las Vegas metro is situated at the southeastern tip of Nevada and is proximate to the Hoover Dam, the Colorado River and Lake Mead . The city proper is largely bounded by mountains, government lands and mili-tary facilities, limiting developable land .

Las Vegas-Henderson-Paradise Metro

MARKET OVERVIEW

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Las Vegas

RegionThe Las Vegas metro is composed of Clark County and boasts a population of more than 2 million . Henderson, North Las Vegas, Spring Valley and Las Vegas were among the fastest-growing cities in the United States over the last decade . Las Vegas is the most populated city in the metro, with approximately 606,200 persons .

InfrastructureInterstates 215 and 515 form a beltway around the Las Vegas metro, facilitating development in outlying areas . The area is also served by Interstate 15, which stretches from Southern Cali-fornia to Salt Lake City . U .S . 93 travels south, linking Las Vegas to Interstate 40, and U .S . 95 runs northwest to Reno

McCarran International Airport, located minutes from the Las Vegas Strip, accommodates about 40 million passengers annually . Other air service is provided by North Las Vegas Air-port, Henderson Executive Airport, Jean Sport Aviation Center and Overton/Perkins Field .

RTC Transit operates the public bus system throughout Las Vegas, Henderson, North Las Vegas and the suburbs . In addition, a monorail system connects some of the casinos along the Strip .

Union Pacific offers freight rail service connecting the area directly to California and Salt Lake City, facilitating the region’s distribution capabilities .

AIRPORTS ■■ McCarran International Airport■■ Four general aviation airports

MAJOR ROADWAYS ■■ Interstates 15, 215 and 515■■ U .S . Highways 93 and 95

RAILS■■ Freight - Union Pacific■■ Monorail between the casinos

THE LAS VEGAS METRO IS:■■ 270 miles from Los Angeles■■ 285 miles from Phoenix■■ 450 miles from Reno■■ 570 miles from San Francisco

MOST POPULOUS AREASLas Vegas 606,200

Henderson 269,800

Paradise 232,500

North Las Vegas 229,100

Sunrise Manor 197,000

Spring Valley 187,600

* Forecast Sources: Marcus & Millichap Research Services, U .S . Census Bureau, Experian

MARKET OVERVIEW

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Las Vegas

EconomyTourism and gaming remain the significant drivers for the Las Vegas economy . Economic diversification and growth in the professional and business services sector, mainly in housing-related professions, fueled considerable payroll expansion prior to the recession . Over the next five years, this trend is expected to resume, as jobs in the professional and business services sector grow by 3 percent annually .

All 10 of the nation’s largest hotels are located in Las Vegas . The Linq Promenade offers visitors open-air shops and restaurants in a 200,000-square-foot area, highlighted by the High Roller, a 550-foot observa-tion wheel . Along with tourism and gaming, conventions also play an integral part in the local economy . Since 2001, convention attendance has exceeded 4 .4 million delegates annually, providing a significant boost to the local economy . The Las Vegas Convention Center is one of the largest in the world .

Population-serving sectors of the economy, such as education, healthcare and retail sales, have grown in importance over the past two decades due to the population nearly tripling in size . These sectors will continue to have a major roll as population growth continues to exceed the national annual average .

The economic growth in Las Vegas depends heavily on tourism, medical services, business information technology and green energy . The metro’s low tax structure and affordable cost of living will continue to attract residents, tourists and businesses to the area .

* Forecast Sources: Marcus & Millichap Research Services, Bureau of Economic Analysis, Moody’s Analytics, U .S . Census Bureau, Las Vegas Convention and Visitors Authority

MARKET OVERVIEW

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Las Vegas

LaborLas Vegas’ employed population has grown to more than 883,500 workers . After slightly lagging the national expansion rate over the previous five years, Las Vegas’ nonfarm employment growth is now forecast to increase by 2 .3 percent annually through 2019 . This is much higher than the expected national growth rate of 1 .3 percent annually during this same period .

Off the strip, the Downtown Project is a multifaceted revitalization effort drawing startups and entrepreneurs to the area . The project is attracting more diverse businesses to the metro, including Zappos, which started the migration when it moved into the old Las Vegas City Hall a few years ago .

Construction, which currently comprises 5 .0 percent of area jobs, will be the fastest-growing employment sector in the coming five years, with gains expected to average 5 .2 percent annually . It is followed by the professional and business services sector, which will expand 3 .0 percent each year during this time .

While Las Vegas has achieved considerable economic diversification over the past few decades, the leisure and hospitality sector still provides the dominant share of metro jobs, making up some 31 percent of total employment . Growth in this sector is expected to accelerate throughout 2019, averaging an expansion of 2 .4 percent each year . Given the size and importance of this sector to the region’s economy, such healthy growth in this sector is an indicator of positive economic conditions going forward .

* Forecast Sources: Marcus & Millichap Research Services, BLS, Moody’s Analytics

MARKET OVERVIEW

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Las Vegas

Major Private Sector Employers

Wynn Resorts Station CasinosMGM ResotsLas Vegas Sands Caesars EntertainmentBoyd GamingThe Valley Health SystemCosmopolitan of Las VegasDignity Health-St. Rose DominicanUnited Healthcare of Nevada

EmployersResorts and casinos continue to dominate the list of largest private employers in the county, including Wynn Las Vegas, MGM Grand and Caesars Palace .

Back-office operations have become increasingly prevalent in the metro over the past few years . Factors such as a low cost of living allow major companies to affordably staff call centers and fill data-entry positions . Office-using employment growth will outpace the national average this year .

Distribution centers and light manufacturing facilities have popped up throughout the metro . Ocean Spray and Levi Strauss, both Fortune 500 companies, operate regional distribution centers in Las Vegas . OfficeMax, Zappos, Sysco Foods, Pepsi Bottling, and Fellowes Manufacturing also maintain local facilities . As the national recovery strengthens and the need for industrial space mounts, Las Vegas’ proximity to other major metros, more affordable land costs, and an available labor pool will draw additional distributors .

The Nevada Test and Training Range along with Nellis and Creech Air Force Bases employ more than 10,000 military personnel and 4,000 civilians . Nellis AFB contains the most squadrons of any Air Force installation . Nellis’ primary role is warfare training, and the base is the home of the United States Air Force Warfare Center, Air Combat Command .

* Forecast Sources: Marcus & Millichap Research Services, BLS, Moody’s Analytics, Experian

MARKET OVERVIEW

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Las Vegas

DemographicsThe Las Vegas metro registered substantial population growth over the last couple of decades and is expected to reach nearly 2 .3 million residents by the year 2019 .

Las Vegas is not only a popular destination for retirees and vacationers, but families are also drawn to the area for jobs . Roughly 27 percent of residents are under the age of 20, compared with 25 .4 percent for the nation . In addition, a greater percentage of the local population is in prime child-bearing years of 25 to 44 than the U .S . Net migration still accounts for the majority of the county’s population growth . This trend will continue over the decade as Las Vegas’ affordable housing and numerous employment opportunities attract new residents .

The median household income in the metro, at $51,400 per year, is slightly below that of $52,000 for the nation . The median income level is expected to rise 3 .5 percent annually through 2019 . The median home price, at$197,600, is also well below that of the U .S . at$207,400 . A relatively affordable cost of living has allowed 54 percent of households to own their home .

* Forecast Sources: Marcus & Millichap Research Services, AGS, Experian, Moody’s Analytics, U .S . Census Bureau

MARKET OVERVIEW

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Las Vegas

Quality of LifeWith approximately 320 days of sunshine annually and an average temperature of 80 degrees, residents and visitors alike have plenty to do besides enjoy the resorts and casinos in Clark County .

Water sports enthusiasts can take advantage of various activities at Lake Mead and the Colorado River, including boating, fishing, water skiing and sailing . Red Rock Canyon Conservation Area, located less than 20 miles from the Strip, offers outstanding hiking and mountain-climbing opportunities . Just 40 miles northwest of Las Vegas is the Las Vegas Ranger District, which encompasses the 316,000-acre Toiyaba National Forest . The area has 52 miles of hiking trails, 150 campsites and snow skiing at Lee Canyon .

Las Vegas is home to the University of Nevada-Las Vegas (UNLV), which offers higher education to an annual enrollment of more than 27,000 students . The institution has received national recognition for its hotel management, criminal justice and social work programs . Other institutions of higher learning in Las Vegas include the College of Southern Nevada, which has an annual enrollment of 44,000 .

The Smith Center for the performing arts in downtown Las Vegas is a cultural complex that contains three theaters for the arts, as well as an outdoor park that can be used for concerts . The Center is part of a larger downtown redevelopment project that includes housing, shops, museums, restaurants and galleries .

* Forecast Sources: Marcus & Millichap Research Services, Moody’s Analytics, National As-sociation of Realtors, U .S . Census Bureau

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Las Vegas - Retail Market

Increased Hiring Slowly Revives Las Vegas Retail

Las Vegas is one of the last markets to recover from the recession as tourists and the local gaming industry awaited a national turnaround in the job market . Improving unemployment and steady increases in population, household growth and in payrolls indicate positive momentum is forming . Unemployment has decreased from a recessionary peak of 14 .5 percent to 7 .9 percent in June 2014 . Additionally, 4 .2 percent more travelers vacationed in the metro in the first half of 2014 compared with the same period last year . As a result, new developments and renovations of large casino and hotel projects are resuming . This has led to an increase in construction payrolls, which had the second largest percentage rise of all employment sectors in the past 12 months . As the economy improves, the suburban Las Vegas retail project Downtown Summerlin is spurring growth in retail, office, apartments and nearby single-family residential development . Metro area entertainment construction is strengthening, including a 20,000-seat event arena, a multi-restaurant and bar venue called The Park, Resorts World Las Vegas, The Grandview at Las Vegas, The Cromwell, SLS Las Vegas Hotel & Casino, and Grand Bazaar Shops .

Out-of-state investors are moving capital from the coasts to the Las Vegas retail market in an effort to find higher first-year returns . Many of the investors will seek assets in Downtown Summerlin where more than half of the 2 .3 million square feet of new retail construction will be located . This will increase competition for Californians who picked up a large portion of listings in the most recent 12-month period . Interest from foreign capital is also starting to pick up . Average sale prices per square foot increased for both single- and multi-tenant properties from a year ago, which suggests that investors are optimistic about the state of local retail, adding to the competitive environment . Average multi-tenant retail cap rates for the metro remain in the mid-6 to low-7 percent range, whereas single-tenant cap rates for the metro are in the mid-6 percent range .

Employment: Employers will add 29,500 new positions this year, expanding the number of workers by 3 .4 percent, largely in the trade, transportation, and utilities, and in the professional and business sectors . Last year 24,500 jobs were generated .

Construction: Retail development will rise to 2 .3 million square feet in 2014, with the opening of the Down-town Summerlin shops and casino operators adding retail as an alternative to declining gaming revenue . In 2013, more than 400,000 square feet of retail space was brought to market .

Vacancy: As retail expansion efforts continue in Las Vegas, with a focus on the West submarket, vacancy will increase 80 basis points to 11 .7 percent in 2014 . New competition from lightly pre-leased, speculative projects by casino developers will lift available square feet .

Rents: The decline in rents will cease this year . Rents will start a gradual climb as higher-end retail space comes to market . Asking rents will increase 0 .3 percent to$15 .59 per square foot at year end . Rents decreased by 4 .0 percent in 2013 .

2014 Annual Retail Forecast

MARKET OVERVIEW

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Economy

■■ Employment increased 3 .1 percent over the most recent 12-month period as 25,900 new jobs were added, helping pull down the unemployment rate to 7 .8 percent . The greatest annual gains occurred in the trade, transportation and utilities, and the professional and business services sectors, adding 6,800 and 5,900 workers, respectively .

■■ Retail sales rose 5 .9 percent for the 12-month period ending June, down from the 6 .8 percent jump a year earlier .■■ Encouraging growth in leisure and hospitality employment of 5,000 positions coincided with a 4 .2 percent advance in visitor volume for the first half of the year . This

translates to 10 .5 percent growth in room revenue for Las Vegas during that period .■■ Outlook: Employers will add a total of 29,500 new positions this year, expanding payrolls by 3 .4 percent . Last year 24,500 new jobs were generated .unemployment

rate should end the year near 5 .0 percent .

Construction

■■ Developers completed 350,000 square feet of retail space in the past 12 months, raising inventory by 0 .4 percent . This is up from 125,000 square feet delivered in the previous period .

■■ There is 2 .7 million square feet of retail space under construction in the metro, the majority of which is to be completed in 2014 . Of the total, 55 percent is pre-leased, with a significant portion of development focused in West Las Vegas . In addition, there is more than 2 million square feet planned .

■■ The largest project due in the fourth quarter of this year is the retail and entertainment hub Downtown Summerlin, formerly known as the Shops at Summerlin in the West Las Vegas submarket . The new development will contain 125 shops and restaurants spread over 1 .6 million square feet .

■■ Outlook: Retail development will rise to 2 .3 million square feet in 2014 . In 2013, more than 400,000 square feet of retail space was brought to market .

* Forecast Source: CoStar Group, Inc .

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Vacancy■■ An increase in deliveries resulted in metrowide retail vacancy inching up 10 basis points from a year ago to 11 .2 percent, after dropping 100 basis points in the prior

period . The lowest vacancy in the metro was in the Downtown Las Vegas submarket, even as the rate increased to 5 .1 percent .■■ During the past year ending in the second quarter, multi-tenant vacancy fell 50 basis points to 13 .0 percent, following a 50-basis point decline in the prior year-long

period .■■ Single-tenant vacancy rose 30 basis points over the past four quarters to 10 .3 percent due to a near tripling of retail space deliveries . One year earlier, vacancy dropped

110-basis points .■■ Outlook: Retail expansion efforts will continue in Las Vegas through year-end, with a focus on the west submarkets . Vacancy will increase 80 basis points to 11 .7

percent in 2014 .

Rents■■ Average asking rents for retail space advanced 0 .5 percent over the past 12 months to $15 .75 per square foot in the second quarter, after declining 6 .1 percent in the

previous period . The highest rents can be found in the Outlying South Clark County and Southwest Las Vegas submarkets, at near $20 and $18 per square foot, respectively .

■■ Asking rents for multi-tenant retail decreased 2 percent over the last year to $15 .42 per square foot . Excess supply, new construction and fluctuating vacancies, plus a slowly improving local economy, have impacted multi-tenant rents .

■■ Single-tenant properties posted an annual increase in asking rents for the first time since 2008, rising 1 .7 percent to $15 .91 per square foot in the second quarter . This occurred despite negative absorption in the past four quarters .

■■ Outlook: The slow deceleration of rents will cease this year and rents will start a gradual climb as higher-end retail space comes to market . Available asking rents will increase 0 .3 percent to $15 .59 at year end .

* Forecast Sources: CoStar Group, Inc ., Real Capital Analytics

MARKET OVERVIEW

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Single Tenant Sales Trends**■■ Over the past 12 months, 2 .2 million square feet of single-tenant space changed hands, a decline of 46 percent from the prior period, because of fewer available listings .

Transaction volume decreased 19 percent .■■ Investors paid an average of $380 per square foot, climbing 3 percent from $370 per square foot in the previous year .■■ Average cap rates for single-tenant properties sold in the past 12 months compressed to the mid- to high-6 percent range, thanks to 1031-exchanges and a number of

high-credit drugstore tenants with long-term leases trading .■■ Outlook: As rental rates begin to normalize and employment ticks up in response to greater hospitality and consumer demand, sales will follow and compress cap

rates further .

Multi Tenant Sales Trends**■■ The majority of multi-tenant deals involved foreign or out-of-state investors, with around 15 percent within Nevada . Deal flow is based on just a handful of

transactions, though additional sales could occur in the coming months .■■ Across the metro, the average price for multi-tenant properties in the 12 months ending in June was $184 a square foot, 8 percent higher than the prior year-long

period .■■ Cap rates for the metro have compressed to the mid-6 to low-7 percent range, down from low- to mid-8 percent a year ago, indicating stronger buyer demand and

higher prices .■■ Outlook: The Galleria at Sunset expansion and the upcoming retail and residential project in Summerlin may bring greater investment to the area, especially the

western portion of Las Vegas .

** Trailing 12-month period Sources: CoStar Group, Inc ., Real Capital Analytics

MARKET OVERVIEW

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Capital Markets■■ According to the minutes of the most recent FOMC meeting, the Fed will cease asset purchases associated with the third round of quantitative easing in October this

year . The tapering was announced in late 2013 and commenced in January . Healthy economic indicators encouraged the Fed to pare $10 billion in asset purchases during each meeting thus far in 2014 . Employment reached pre-recession levels in the second quarter and the unemployment rate has fallen into the low-6 percent range .

■■ While the latest round of quantitative easing comes to a close, little impact on interest rates is anticipated until 2015 . Investors long ago reacted to the taper and any potential increase in Treasurys has been baked into current prices . Recently, the 10-year Treasury dipped below the 2 .5 percent threshold as foreign and local investors sought a safe haven for capital because of international conflicts . The rate is anticipated to stay in the current range until early 2015, when the Fed lifts targets on the discount and funds rates .

■■ In the single-tenant arena, nearly all lenders are active for properties occupied by national credit tenants . Many national banks have been aggressive in specific areas, which has pushed national LTVs between 65 and 80 percent . Interest rates for single-tenant, net-leased properties range from the mid-3 percent to the high-4 percent areas, depending upon tenant creditworthiness and length of lease .

■■ Underwriting is loosening in the multi-tenant arena as strong evidence of healthier property fundamentals emerges and lenders awash with capital seek to provide loans . CMBS is a growing presence in the $10 million-plus asset class, joining life companies as the primary loan issuers for larger deals . Interest rates for these transactions are in the mid- to high-4 percent area for 10-year terms . Below $10 million, national and regional banks offer loans in the low-4 to high-4 percent range on five- to seven-year terms .

Local Highlights■■ Metro area home sale prices were up 20 percent from a year ago through the second quarter . Nationally, average home prices were up 6 percent for the period, though

Las Vegas has a greater climb from the depth of the housing crash than other markets .■■ The local construction sector is picking up with resumed casino construction, new retail developments and multifamily projects . Employment in the sector continues

to rise, posting a 6 percent increase over the past four quarters .■■ Housing construction is gaining momentum; 5,000 to 7,000 new housing permits will be issued by the end of the year and developments throughout the metro will

resume . Despite these advances, single-family developers are cautious because local land prices nearly doubled over the past year .Outlook: Retail expansion efforts will continue in Las Vegas through year-end, with a focus on the west submarkets . Vacancy will increase 80 basis points to 11 .7 percent in 2014 .

Home Depot

MARKET OVERVIEW

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Demographic Summary

INCOME 1-MILE 5-MILES 10-MILES

$ 0 - $14,999 6.9% 9.9% 10.3%

$ 15,000 - $24,999 8.1% 9.4% 9.8%

$ 25,000 - $34,999 9.8% 12.6% 11.1%

$ 35,000 - $49,999 14.3% 17.9% 16.8%

$ 50,000 - $74,999 27.7% 20.4% 19.9%

$ 75,000 - $99,999 14.2% 12.6% 12.8%

$100,000 - $124,999 9.5% 7.2% 7.7%

$125,000 - $149,999 4.0% 3.9% 4.5%

$150,000 - $199,999 2.7% 3.2% 3.7%

$200,000 - $249,999 1.1% 1.1% 1.3%

$250,000 + 1.8% 1.7% 2.1%

2014 Median Household Income $58,413 $50,155 $52,168

2014 Per Capita Income $28,134 $26,647 $28,154

2014 Average Household Income $73,929 $68,364 $72,247

POPULATION 1-MILE 5-MILES 10-MILES

2014 Population 8,233 113,637 275,388

2019 Population 9,295 124,500 296,213

HOUSEHOLDS 1-MILE 5-MILES 10-MILES

2000 Households 1,658 30,975 82,096

2010 Households 2,964 42,085 101,909

2014 Households 3,119 44,238 106,965

2019 Households 3,569 48,907 115,955

2014 Average Household Size 2.57 2.58 2.56

2014 Daytime Population 7,473 35,343 85,681

2000 Owner Occupied Housing Units

66.41% 57.42% 62.88%

2000 Renter Occupied Housing Units

28.76% 35.02% 30.15%

2000 Vacant 4.83% 7.55% 6.97%


45.10% 48.52% 55.84%


54.90% 51.48% 44.16%

2014 Vacant 5.52% 8.04% 8.16%


44.30% 47.75% 55.32%


55.70% 52.25% 44.68%

2019 Vacant 5.95% 8.10% 8.42%

MARKET OVERVIEW

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Demographic SummaryGeography: 5 Miles

Demographic data © 2010 by Experian/Applied Geographic Solutions.

PopulationIn 2014, the population the area is 275,387 . The population has changed by 28 .75% since 2000 . It is estimated that the population will be 296,212 five years from now, which represents a change of 7 .56% from the current year . The current population is 49 .59% male and 50 .40% female . The median age of the population is 38 .5, compare this to the Entire US average which is 37 .3 . The population density 3,504 .27 people per square mile .

Households There are currently 106,965 households . The number of households has changed by 30 .29% since 2000 . It is estimated that the number of households in the area will be 115,954 five years from now, which represents a change of 8 .40%from the current year . The average household size is 2 .55 persons .

Income In 2014, the median household income is $52,168, compare this to the Entire US average which is currently $51,972 . The median household income for the area has changed by 3 .19% since 2000 . It is estimated that the median household income will be $60,893 five years from now, which represents a change of 16 .72% from the current year .

The current year per capita income in the area is $28,153, compare this to the Entire US average, which is $28,599 . The current year average household income is $72,246, compare this to the Entire US average which is $74,533 .

Race and Ethnicity The current year racial makeup of the area is as follows: 68 .83% White, 7 .38% Asian/Pacific Islander . People of Hispanic origin make up 23 .69% of the current year population .

Housing In 2000, there were 55,490 owner occupied housing units in the area and there were 26,605 renter occupied housing units . The median rent at the time was $744 .

Employment In 2014, there are 85,681 employees in the area, this is also known as the daytime population . The 2000 Census revealed that 57 .88% of employees are employed in white-collar occupations, and 42 .15% are employed in blue-collar occupations . In 2014, unemployment in the area is 9 .17% . In 2000, the average time traveled to work was 23 .9 minutes .

exclusively listedPerry WhiteLAS VEGASTel: (702) 215-7100Fax: (702) 215-7110 License: NV B.0034578.CORP

Exclusively listed by: Nevada Broker of Record:

OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com

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