SALE SUMMARY JEROME RETAIL CENTER

Transcription

1 SALE SUMMARY JEROME RETAIL CENTER EAST YAKIMA STREET JEROME, ID MIKE CHRISTENSEN STEVE DI LUCCA

2 Investment Summary This investment opportunity is for the interest in Jerome Plaza, a 15,989 square foot retail center sitting on 1.28 acres. The center is located in a strong retail trade area directly adjacent to Walmart and is surrounded by several national retailers including Autozone, Mcdonalds, Taco Bell, Wendy s and O Reilly Auto Parts. Anchored by Dollar Tree this center is amazon proof and 100% occupied by long term tenants and low rents. Jerome Plaza is a very stable investment and ideal for passive ownership. Pricing: $2,680,000 NOI: $178, Cap Rate: 6.64% Size: 15,989 SF Price/PSF: $ Occupancy: 100%

3 Property Overview Profile Property Name: Address: Building Size: Land Size: Parcels: Parking: Jerome Plaza E Yakima St. 15,989 SF 55,890 SF RPJ A, RPJ A, RPJ A Ample on-site Highlights 100% occupied Long term, strong tenants Dollar Tree has occupied the center since 2005 Shadow anchored by strong national tenants; Walmart, McDonalds, O Reilly Auto Parts, Burger King and Taco Bell Priced well below replacement costs Three tenants are on the Fortune 500 List Year Built: 2005

4 Tenant Profiles Dollar Tree offers exciting mix of merchandise that includes many trusted national and regional brands and every single item is $1 or less. Product departments include housewares, glassware, dinnerware, cleaning supplies, candy, snacks, food, health and beauty, toys, gifts, gift bags and wrap, party supplies, stationery, craft supplies, teaching supplies, books, seasonal décor, and more. Little Caesar is the third-largest pizza chain in the United States. It operates and franchises pizza restaurants in the United States and internationally in Asia, the Middle East, Australia, Canada, Latin America and the Caribbean. The company was founded in 1959 and is based in Detroit, Michigan, Sprint Corporation is an American telecommunications company that provides wireless services and is an internet service provider. It is the fourth-largest mobile network operator in the United States and serves 54 million customers as of October Big Smoke was established in 1997 in Caldwell, Idaho. and has reputation of always having the cheapest beer prices and the friendliest employees. In 2012, Big Smoke and Tobacco Connection merged into one company to better serve customers looking for all things smoke shop. Verizon Wireless is an American telecommunications company which offers wireless products and services. It is a wholly owned subsidiary of Verizon Communications. With 149 million subscribers as of October 2017, Verizon Wireless is the largest wireless telecommunications provider in the United States. State Farm is a large group of insurance and financial services companies throughout the United States with corporate headquarters in Bloomington, Illinois. The group s main business is State Farm Mutual Automobile Insurance Company, a mutual insurance firm that also owns the other State Farm companies. American Family Insurance, is a private mutual company that focuses on property, casualty, and auto insurance, and also offers commercial insurance, life, health, and homeowners coverage as well as investment and retirement-planning products. A Fortune 500 company, its revenues were over $8.7 billion in 2016

5 Location SITE

6 Demographics Jerome, Idaho 1 Mile 3 Miles 5 Miles POPULATION 2018 Estimated Population 18,031 62, , Projected Population 18,969 67, , Census Population 16,837 57, ,865 Historical Annual Growth 2000 to % 1.9% 1.7% HOUSEHOLD 2018 Estimated Households 6,102 22,822 42, Projected Households 6,365 24,057 44, Census Households 5,675 20,866 39,112 Historical Annual Growth 2000 to % 1.8% 1.7% INCOME 2018 Est. Average Household Income $56,078 $62,165 $62, Est. Median Household Income $47,962 $51,370 $51,558 MISC Median Home Value $145,513 $172,841 $169, Median Rent $565 $707 $ Average Travel Time to Work Est. Median Age Est. Labor Population Age ,981 47,077 87, Est. Total Household Expenditure $288 M $1.15 B $2.14 B

7 Business Incentives TAX REIMBURSEMENT INCENTIVE (Created July 1, 2014)» Bring new high-wage jobs to Idaho and your company could be eligible to receive up to a 30% refund on sales, payroll & corporate income taxes for up to 15 years.» Companies must provide wages above the county average, and create at least 50 new jobs in an urban area, or 20 in a rural area.» SkyWest Airlines was the first company in Idaho to take advantage of the new incentive. They received a TRI credit of 25% for a term of 12 years in addition to a robust package from the City of Boise in infrastructure build out and financing. The company will also benefit from the Idaho Department of Labor s Workforce Development Training Fund program. WORKFORCE DEVELOPMENT TRAINING FUND» Minimum $2,000 per new job created, paid directly to the company IDAHO OPPORTUNITY FUND» Legislation created in 2013, established a new grant program which allows the Director of Idaho Department of Commerce to direct funds to projects for infrastructure needs within the community. This $3 million fund will be used within this year to help close new projects. IDAHO BUSINESS ADVANTAGE (For qualifying companies)» Increases the Investment Tax Credit to 3.75% against the corporate income tax» Real Property Improvement Tax Credit of 2.5% against corporate income tax» New Jobs Tax credit increases the corporate income tax credit per job depending on wages paid» Sales and Use Tax Rebate of 25%» Small Employer Growth Incentive 3% INVESTMENT TAX CREDIT» A credit against Idaho corporate income tax for qualifying new investment in tangible personal property IDAHO POWER INDUSTRIAL EFFICIENCY INCENTIVE» Cash incentives for energy efficient designs

8 Area Overview IDAHO TAX OVERVIEW Sales and Use Tax in Idaho is 6%. This would apply to items purchased or consumed in Idaho. Exemptions are available for equipment and raw materials used directly in manufacturing, processing, or fabrication; clean rooms used in semiconductor and semiconductor equipment manufacturing; and any equipment or material used in research and development activities. We do not tax services including telecommunication services, and utilities such as water, gas, electricity, or natural gas. In our region we do not have any local option sales tax. Property Tax personal (machinery/equipment) and real (land/ buildings) based on market value Rates: Ada County Average Range: 1.1% - 1.8% Bannock County Average Range: % Canyon County Average Range: 1.5% - 2.5% Elmore County Average Range: 1.8% Idaho does not have an inventory tax. Corporate Income Tax Computed at 7.4% of the Idaho taxable income of a corporation. Corporations that are taxable in Idaho and another state or country or are part of a unitary group of corporations, use a 3 factor formula to ascertain how much of the business is conducted in Idaho. The apportionment formula is made up of a property factor, a payroll factor, and a sales factor. These three factors, with the sales factor being double weighted for all taxpayers except for electrical and telephone companies, are totaled and divided by 4 to compute the Idaho apportionment factor. The Idaho apportionment factor is then applied to the business income of the corporation to compute income assigned to Idaho. Non-business income allocable to Idaho is added to the income apportioned to Idaho to arrive at Idaho taxable income. Colliers International Idaho 7% 6% CORPORATE INCOME TAX SALES & USE TAX $7.25/hr 1.91% #2 BEST STATE Property tax rate (2013 Tax Foundation Study) 7.1% 755 West Front Street, Suite 300 Boise, Idaho STATE UNEMPLOYMENT INSURANCE RATE 1.6%-7.8% PERSONAL INCOME TAX RATE RANGE Rate range on a bracketed system based on income levels UNION MEMBERSHIP (NAT L AVG: 11.9%) PROPERTY EXEMPTION First $100,000 of personal property is exempt from taxation IDAHO IS A right to work STATE MINIMUM WAGE

9 JEROME RETAIL CENTER EAST YAKIMA STREET JEROME, ID MIKE CHRISTENSEN STEVE DI LUCCA