MELISSA MOLYNEAUX, SIOR, CCIM

Transcription

1 645 E PLUMB LANE PRICE REDUCTION RENO, NV ,471 SF ON 6.21 ACRES OFFICE SPACE AVAILABLE FOR SALE For Information Contact: Owned and Managed by: Colliers International 5520 Kietzke Lane, Suite 300 Reno, Nevada P: F: MELISSA MOLYNEAUX, SIOR, CCIM Senior Vice President Executive Managing Director melissa.molyneaux@colliers.com

2 THE AREA MEADOWOOD MALL EDGEMONT 388 UNITS VIRGINIA LAKE WASHOE GOLF COURSE Two blocks to the south from the building is the upand-coming Park Lane Shopping Center. The shopping center is a unique, master-planned community with a combination of office, retail, and residential use. The center will consist of 40,000 square feet of office, 73,700 square feet of retail, and 1,652 residential units. The project broke ground in the fall of 2017 and is expected to have 750 apartments completed by the end of the year. Across from Park Lane lies the historic Shopper s Square Shopping Center. Owned by one of Reno s prominent families, Shopper s Square is currently undergoing a 20 million dollar renovation. The center will be undergoing new architecture with a focus on food, culture, and the resurgence of Midtown, which is north of South Virginia Street. MIDTOWN In addition to these two retail centers, multiple lodging locations are available within a mile of the building, allowing clients and employees to stay a close distance to both the building and the airport. LOCATED IN THE HEART OF RENO, NV WITH ADEQUATE DINING, RETAIL AND OTHER AMENITIES. Located in the heart of redevelopment in Northern Nevada, 645 E. Plumb Lane has outstanding access to the Reno Tahoe International Airport (only a fiveminute drive!), multiple options for lodging, and current and future high-end retail developments. In addition, the building has easy access to US 395/ I580 North and South bound on-ramps, which are five minutes away. The building is an eight-minute drive to downtown Reno and a thirteen minute drive to the University of Nevada, Reno. 2

3 RENO MARKET OVERVIEW The Greater Reno-Tahoe s business and economic climate is experiencing a major boom and the ramifications are far reaching! As the announcements of large and recognizable companies that are moving to the area are publicized, businesses, investors and developers from all over the country are rushing to jump on the bandwagon. Companies are finding that the ease of doing business, coupled with favorable taxes and incentives, is creating an unparalleled motivation for business leaders to focus on Northern Nevada. With the area including major cities such as Reno, Sparks, Carson City, and Incline Village, there is plenty of room for expansion. With the benefits of Nevada s low tax on businesses - and a satisfying quality of life, it s a wonder why a business or developer would choose anywhere else. The region s optimal location to San Francisco, Portland, Salt Lake City, Las Vegas, and Los Angeles all within a day s drive is just another added benefit. With Nevada having the third most business-friendly tax structures in the country, it opened up many possibilities for out-of-state companies to locate facilities here, including Google, Tesla, Switch, Apple, and most recent newcomer, Blockchain. Blockchain recently purchased 67,125 acres in the Tahoe Reno Industrial Center for their new corporate headquarters and software design research center. Google also purchased 1,210 acres of land in TRIC, making both of them neighbors with Tesla and Switch. Tesla Motors also invested in Nevada and is currently building the world s largest lithium ion battery factory that is scheduled to have a 18 million square foot footprint, with 6 million square feet already built. This $10 billion lithium battery plant is projected to employ 10,000 people and 16,000 indirect jobs within the next few years. In addition, the Las Vegas based tech company, Switch, is investing $1 billion in a 7.2 million square foot data center. The first building in the Switch Campus recently opened its doors and became the world s largest single data center, measuring 1.3 million square feet. Finally, Apple also chose Reno to invest over $2 billion for their massive icloud data facility. They will also be building a 27,000 square foot shipping warehouse in downtown Reno. Apple is expected to generate 100 employees and 300 construction jobs from the warehouse, on top of the current 717 established employees in Nevada. In addition to the larger companies moving to Reno, many manufacturers have already established their sites in Northern Nevada. Amazon moved one of their distribution warehouses into a 680,000 square foot e-commerce, high clearance building that employs 600 associates. Electric vehicle manufacturer, Cenntro Automotive also opened their new headquarter in an 80,000 square foot building in Sparks. While Amazon and Cenntro have become established in Reno, the pioneer of bringing tech companies to Northern Nevada is Microsoft. Microsoft moved its licensing office here in 1997 and is one of the only three Microsoft Regional Operation Centers in the world. With companies making the decision to move their operations into friendlier tax states becoming more frequent, Northern Nevada has become a hot spot for tech companies looking to expand. To learn more on the area, you can visit WhyReno.org. 3

4 RENO MARKET OVERVIEW QUALITY OF LIFE Reno is a 24 hour town that, while known for gambling and nightlife, offers an excellent experience for visitors and residents alike. Lake Tahoe is a short 40 minute drive away and offers everything from solitary beaches, to hotel/casino nightlife, to Olympic quality ski resorts. The city of Reno is undergoing rapid and positive change with the growth of MidTown, the Brewery, and the Distillery Districts as well as a national quality baseball facility located downtown. Home buyers can choose from the affordability of the North Valleys to the luxury of the west foothills, to the privacy of Hidden Valley. Exquisite luxury homes dot the south suburban neighborhoods as well as the northwest foothills. New developments include the 141 acre master planned Rancharrah development which will feature 25 acres of commercial space and a 25,000 SF clubhouse with equestrian facility. The tourism industry contributes heavily to the tax base allowing Nevada to remain one of the few states without state income tax. 4

5 RENO MARKET OVERVIEW RESIDENTIAL MARKET DATA 2017 New Home Permits: 2, New Homes Sales: 1,950 Average Number of New Homes in Inventory: 200 Active Communities: 60 +/- Active Builders in the market: 24 the majority being local Most Active areas for new construction: Southeast Reno followed by Spanish Springs 2017 Median Home Price: $345,000 up 15% from 2016 Lot Supply going into 2018 Finished lots: 1,800 = less than 1 year supply (this will grow by 1000 this year) Final Mapped Lots: 2,500 = just over 1 year supply Tentative Mapped Lots: 8,000 approved = approximate 4 year supply Resale Home Supply 1.5 month supply MULTIFAMILY Number of Existing Projects: 86 with 21,497 units Average Rent Appreciation in 2017: 8.6% Average Vacancy in 2017: 2.4% 5

6 THE NEVADA TAX ADVANTAGE THE NEVADA ADVANTAGE NEVADA OPERATING ADVANTAGE One day drive time to seven states and over 60,000,000 people Strategic location central among the 11 western states Over 80 million SF of industrial space in Reno/Sparks market State incentives available Strong interest in the area from distributors and manufacturers Advantageous business climate, taxes, and regulations TAX ADVANTAGE NO corporate income tax NO personal income tax NO franchise tax NO unitary tax NO inventory tax NO inheritance tax NO estate tax HELPFUL LINKS Economic Development Authority of Western Nevada City of Reno City of Sparks State Department of Taxation QUALITY OF LIFE ADVANTAGE Affordable living costs Emerging new downtown Strong sense of community Four vibrant seasons Endless recreation opportunities A balanced life pace Governor s Office of Economic Development Nevada Department of Business and Industry Regional Transportation Commission HOW RENO/SPARKS RANKS NATIONALLY Top 30 Mid-Size Cities, Reno # 1 NewGeography.com Top 50 Best Places to Live Livability.com No. 5 Best Business Tax Climate Business Tax Climate Index by Tax Foundation Named Among 10 Most Entrepreneurial States Kauffman Index of Entrepreneurial Activity Top 100 Leading Locations Reno # 9 AreaDevelopment.com Top 20 Least Expensive Cities to Do Business Kosmont-Rose Institute Cost of Doing Business Survey No. 9 Best State for Business Chief Executive Magazine No. 1 in the Small Business Policy Index Small Business and Entrepreneurship Council 6

7 THE PROPERTY 645 E. Plumb Lane is one of the few affordable, largecapacity buildings in the area. We offer big blocks of space that are perfect for fast growing companies in search for open areas to build out and make their own. AVAILABLE SPACE: 86,471 SF on 6.21 Acres Sale includes the following APNs: , 02, 03 & , 07, 08 SALE PRICE: (REDUCED from $13,000,000.00) $11,900, PARKING: 354 Total Stalls (4.33:1,000 SF) YoriLot: 90 Stalls Main Lots: 219 Stalls ADA: 4 Stalls Covered: 23 Stalls Underground: 12 Stalls Miscellaneous: 6 Stalls PROPERTY HIGHLIGHTS: Currently used as a corporate headquarters Outstanding visibility from Plumb Lane and positioned near the new Park Lane Master Plan and other existing redevelopments Easy access to Reno Tahoe International Airport Convenient access to US 395/I 580 Building has numerous layout options and the Buyer can lease out a portion or portions of the building easily Surface, secured and covered parking available in addition to street parking Recent upgrades to building s exterior with new contemporary paint Foundation consists of poured in place concrete walls and floors with reinforced concrete walls and steel framed curtain walls in the original section and concrete perimeter walls with steel moment framing in the 1970 addition All of the roofs have been replaced within the past 15 years. The roof system consists of steel wide flange beams and open web steel joists supporting the metal deck sheathing Ample parking in multiple lots with 354 total spaces with additional street parking and underground parking Current tenant s lease is up Also listed for lease 7

8 THE PROPERTY Lot 1 TM 492 APN Aguirre-Lopez Lot 11 TM 492 APN Ramos APN Parcel 4 8,190 SF Parcel 6 12,019 SF APN APN APN Lot 12 TM 492 APN Spoon Lot 13 TM 492 APN Madera Lot 14 TM 492 APN Murray Parcel 5 8,190 SF ADDITIONAL PARKING Parcel SF Parcel 7 16,657 SF APN Excepting Therefrom Doc. No YORI AVE CASAZZA DRIVE APN APN Parcel 3A 39,598 SF Parcel 3C 75,566 SF± Parcel 3B 43,558 SF APN USA Dept of Army APN Hanco Ltd APN APN Parcel 1 25,934 SF APN PLUMB LANE 8

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10 5 MILE RADIUS + AREA MAP 10

11 FIRST FLOOR 645 E PLUMB LANE 1ST FLOOR PLAN Plumb Lane Floor Common Area Building Common Area Tenant Space 11

12 SECOND FLOOR 645 E PLUMB LANE 2ND FLOOR PLAN Floor Common Area Tenant Space 12

13 BASEMENT 645 E PLUMB LANE BASEMENT PLAN Floor Common Area Building Common Area Tenant Space / Storage 13

14 THE QUALIFIED OPPORTUNITY ZONE THE QUALIFIED OPPORTUNITY ZONE 1. A temporary deferral of inclusion in taxable income for capital gains reinvested in the property. The deferred gain must be recognized on the earlier of the date on which the asset is disposed of, or December 31, A step-up in basis for capital gains reinvested in the property. The basis is increased to an amount equal to 10% of the deferred gain if the investment is held by the Investor for at least 5 years and by an additional 5% if held for 7 years, thereby excluding up to 15% of the original gain from taxation. 3. A permanent exclusion from taxable income of capital gains from the sale or exchange of the asset if the investment is held for at least 10 years. This exclusion only applies to gains accrued after an investment in the asset. Opportunity Zone. An element of the recently enacted Tax Cuts and Jobs Act of 2017 was the creation of Opportunity Zones, a federal tax incentive for long-term private investments in certain urban and rural communities nationwide. Investors who invest their gains on the sale of appreciated assets or otherwise invest in development within these Opportunity Zones are eligible to defer and reduce their federal capital gains tax liability, as well as avoid federal capital gains tax liability on the development investment itself. 645 East Plumb Lane is located within a designated Opportunity Zone. The to-be-determined investment entity will be a qualified Opportunity Fund, allowing Investors to benefit from tax advantages associated with the Opportunity Zone. The intent is to establish the investment at 645 East Plumb Lane and manage the property so as to maximize the tax benefits of the Opportunity Zone tax regulations. Specifically, Investors would benefit in the following ways: 645 East Plumb Lane

15 THE QUALIFIED OPPORTUNITY ZONE THE QUALIFIED OPPORTUNITY ZONE The property will require a minimum investment from Investors of $250,000. Below is an example timeline for a $250,000 investment in an Opportunity Zone Fund. Lyon has underwritten a 10 year hold period to maximize the Opportunity Zone tax benefits to Investors. Sale of Original Investment Investment Deferred Gain in Qualified Opportunity Fund within 180 Days 5 Year Holding Period 7 Year Holding Period Recognition Event on December 31, 2026 Holding Period of 10 Years or More On July 1, 2018, Taxpayer sells property and realizes gain of $250,000. On August 1, 2018, Taxpayer reinvests all of the gain in 645 East Plumb Lane Qualified Opportunity Fund (investment must be made within 180 days of the original sale). Taxpayer's basis in the qualified Opportunity Fund investment is $0. On August 1, 2023, Taxpayer is entitled to a basis adjustment equal to 10% of the deferred gain ($25,000) On August 1, 2025, Taxpayer is entitled to an additional basis adjustment equal to 5% of the deferred gain ($12,500) of total basis adjustment of 15% ($37,500). On December 31, 2026, if Taxpayer has not yet sold the investment in the Qualified Opportunity fund, Taxpayer recognizes capital gain of $212,500 ($250,000 - $37,500 basis adjustments). If the fair market value of the investment in the Qualified Opportunity Fund is less than the original deferred gain (less the basis adjustments), Taxpayer recognizes capital gains in an amount equal to the then fair market value of the investment. Upon a sale of the investment in the Qualified Opportunity Fund on or after August 1, 2028, the basis in the Taxpayer's investment in the Qualified Opportunity Fund will be equal to the fair market value of the investment on the date the investment is sold. Thus, if Taxpayer sells the investment in the Qualified Opportunity fund for $500,000, the basis in the investment in the Qualified Opportunity Fund will increase to $500,000 and Taxpayer is permitted to exclude the entire $250,000 gain for federal tax purposes (resulting in a total exclusion of $287,500).

16 IT S TIME TO GET HAPPY. Majestic Asset Management, Inc. is a preeminent property management company. But who are we, really? We re a dedicated group of individuals who strive to be a role model in the quest for happy. We aim for contented tenants, excited employees, thriving property owners and an efficient organization start to finish. That all leads to happy. Majestic is constantly focusing on our tenants, employees and investors. We always look for opportunities to increase investor s returns, improve tenants experience and keep our employees enthused along the way. And we always will. OUR VISION To be recognized as a role model for tenant satisfaction, team member engagement, profitability and operational efficiency. OUR VALUES Tenant Satisfaction Providing the highest and consistent level of service and response. Integrity Doing the right thing at all times and in all circumstances. Empowerment Taking initiative and making decisions to solve problems and improve service and performance. OUR MISSION Deliver exceptional value and experiences for investors, employees, tenants and service providers affiliated to Majestic Asset Management, Inc. Teamwork Individual commitment to a group effort. Organizational and Personal Learning Implementing processes for the individual, the work unit, and the organization to drive continuous improvement that increases and shares knowledge. Performance Delivering and rewarding results. Trust Keeping our promises. 14

17 ANYTHING IS POSSIBLE 15

18 645 E PLUMB LANE RENO, NV ,471 SF ON 6.21 ACRES OFFICE SPACE AVAILABLE FOR SALE For Information Contact: Owned and Managed by: Colliers International 5520 Kietzke Lane, Suite 300 Reno, Nevada P: F: MELISSA MOLYNEAUX, SIOR, CCIM Senior Vice President Executive Managing Director melissa.molyneaux@colliers.com This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s)