Minden Gateway Center

Transcription

FINANCING REQUEST FOR A $21.5 MILLION PROPOSED 195,660 SF RETAIL LIFESTYLE CENTER DEVELOPMENT
Minden, Nevada
SITE TODAY
Phase 1/Financing 1
GOAL UPON COMPLETION
Phase 2/Financing 2 - This Offering
A Development Partnership of
Investment Advisor to Sky West
www.MindenGatewayCenter.com
Contact Info & Confidentiality
For further information and questions, please contact:
4640 Admiralty Way, Suite 410
Marina Del Rey, CA 90292
Main: (310) 823-5800
Randall C. Zisler
President & CEO
(310) 823-5800 x 224
Matthew J. Zisler
Principal
(310) 823-5800 x 223
Dayne L. Katz
Associate
(310) 823-5800 x 225
The material contained in this package is confidential and is furnished solely for the purpose of obtaining a capital source for the
property described herein, and is not to be used for any other purpose, or made available to any other person, without the
express written consent of Zisler Capital Partners. Additionally, unless authorized in writing by Zisler Capital Partners, you
are prohibited from contacting the Sponsor or affiliates of the Sponsor. The material is based in part upon information supplied
by the Sponsor, and in part upon information obtained from sources deemed to be reliable. No warranty, express or implied, is
made by Zisler Capital Partners as to the accuracy or completeness of the information contained herein.
By receipt of this package, you agree that this package and its contents are of a confidential nature and that you will treat it in the
strictest confidence, and that you will not disclose this package or any of its contents to any other entity including without prior
written authorization by Zisler Capital Partners.
3
Table of Contents
TABLE OF CONTENTS
Executive Summary
I
Financials
II
Sponsor Summary
III
4
Tired retail provides an opportunity.
I. Executive Summary
I. Executive Summary
Overview:
Property Summary:
Executive Summary
Sky West Investments, Inc. (NV) (the “Sponsor”) has exclusively retained Zisler Capital Partners
(the “Advisor”) to procure vertical development financing for the vertical development of a
$21,452,770 million power retail center in Minden, Nevada, called Minden Gateway Center (the
“Property”).
Parcel Size: 13.33 acre
Sponsor will build and retain:
Inline Retail Space
Sponsor will sell or ground lease:
Restaurant Pad
Hotel Pad
Grocery Pad
Office Pad
Pharmacy Pad
Total Buildable area:
195,660 sqft
67,716 sqft
SOLD BY 1/09
SOLD
SOLD BY 6/09
SOLD BY 6/09
SOLD BY 12/08
6,500 sqft
50,529 sqft
30,000 sqft
24,680 sqft
16,235 sqft
652 parking spots
Location:
Northwest corner of Highways 88 and 395 in Minden, Nevada. 15 minutes from Lake Tahoe and
15 miles from Carson City. Across the street from Douglas High School.
Approval Status:
Architectural plans, for the 67,716 square feet that the Developer plans building, including mechani
cal, electrical, plumbing and structural are complete and in for permit. The City is eager to see
approvals so building can start. Final building approvals are expected shortly.
Site Status:
Land development (Loan 1) is scheduled to be completed by mid-September 2008. Land develop
-ment work includes common area, utilities and all services to each pad. This offering seeks to ob
-tain financing for vertical development (Loan 2).
Pad Sale Status:
Hotel pad is sold. Pharmacy and restaurant pads are in final negotiations for sale.
6
Executive Summary
7 Retail Buildings (Loan 2 will finance the development of these buildings. The Developer and Investor will
own the inline retail space.). The remaining pads will be sold or ground-leased.
Site Plan:
INLINE RETAIL SPACE (PINK)
67,716 SF Retail
US Highway 395
RESTAURANT PAD
6,500 SF
HOTEL PAD
50,529 SF
State Route 88
47,000 people are
within the Minden
Trade Area
PHARMACY PAD
16,235 SF Retail/Office
OFFICE PAD
24,680 SF
GROCERY PAD
30,000 SF
7
Leasing Status:
Leasing Team:
1.
Eugene Burger Management
Corporation - Marsha Jones and
Team, including 5 leasing special
-ists. EBMC has an enviable average occupancy of 98% and is
going door-to-door for the leas
ing effort.
2. Century 21 - Jim Nickerson and
Cora Hansen, Pad Sale Special
ists.
3. Caldwell Banker & Village Re
alty - Michael Ornelis.
4. Sky West Brokerage - Justin
Greenberg, Mark Held and Jeffrey Lowden.
Pad Sales Team:
Century 21 - Jim Nickerson &
Cora Hansen, Pad Sale Specialists.
2. Caldwell Banker & Village Realty - Michael Ornelis.
3. Sky West Brokerage - Justin
Greenberg, Mark Held and Jeffrey Lowden.
1.
Executive Summary
Inline Space: See list below of prospective tenants to lease the 67,716 of inline space.
*Note : pre-leasing conversations and interest are occurring with the following partial list of tenant
prospects.
Petco
Benihana
La Salsa
Jerrys Deli
Charlies Grilled Subs
Turners Outdoorsmen
Gloria Jean Co
Joes Crab Shack
Office Depot
Bed Bath Beyond
The Dress Barn
Jody Maronis Sausage
Staples
Spectrum Club
Outback Steakhouse
ATT Wireless Stores
The UPS Store
24 Hour Fitness
Rubios Baja Grill
Wahoos Fish Tacos
Chiles
Ballys
Dairy Queen
Ritz Camera Center
Red Lobster
SuperCuts
Alpha Graphics
Dunkin Brands
TGIFRIDAYS
Sport Clips
AIM Mail Centers
Leasure Fitness
Mailboxes Etc.
Great Clips
Sir Speedy Printing
Payless Shoe Source
PetSmart
Ruby Tuesdays
Sephora USA
Fed Ex Kinkos
AeroPostale
Wetzels Pretzels
The Hobby Shack
Bojangles
Quiznos
Auntie Annes ‐ Pretzels
The Hobbly Lobby
Noahs Bagels
El Pollo Loco
1.75 Cleaners
The Hobby People
Hibbet Sporting Goods
Johny Rockets
Cleaning Concepts
Lamps Plus
The Great American Bagel
Macaroni Grill
Comet Cleaners
Cost Plus World Market
Merle Norman Cosmetics
Olive Garden
Executive Tans
Golden Corral
Sign o Rama
The Learning Center Pure Beauty
Aaron Brothers
Kellys Coffee and Fudge
Dagwoods Sandwich
Sport Chalet
Image Sun Tanning
Joan Fabric Stores
Big 5
Cool Cuts
Guitar Center
KinderCare Learning Center
Penguins Yogurt
Fantastic Sams
Sierra Trading Post
Stone Oven
Maui Wowi
Mrs. Bairds ‐ Bakers
Pasta Pomodoro
Car Toys
L&L's Hawai BBQ
Mrs. Fields
Woodranch BBQ and Grill
Cellular Advantage
The Rib Shack
TCBY Yogurt
Souplantation
Anytime Fitness
Bank of America
Lee Spa Nails
Fresh Tomatoes
Organic To Go
Citibank
Kiddie Acedemy
Game Stop
Panda Express
Boot Barn
Knowledge Learning Centers
Burlington Coat Factory
Jimmy Johns Gourmet Sandwiches
H&M Clothing
Huntington Learning Centers
Cash Plus
Sally Beauty Supply
Jamba Juice
Learning Express
Ace Cash Express
Dots ‐ Womens Retailer
Saxbys Coffee
Sunglass Hut
Cycle Gear
Baskin Robbins
Togos
Coffee Bean and Tea Leaf
Luxottica ‐ Lens Crafters & Companies Sylvan Learning Centers
Blockbuster Video
Gymboree
Garden Fresh
Check into Cash
Peets Coffee
The Little Gym
Hobby Town
Keva Juice
Robeks Smoothies
Eagle Fitness
Ken Crane TV
Stride Rite
Tesco ‐ Fresh and Easy
Primrose Schools
Wireless Toyz
Linens and Things
The Vitamin Shoppe
Equinox Fitness
Verizon Wireless
Annas Linnens
GNC
Color Me Mine
Spencer Gifts
Radio Shacl
Foot Locker
Barnes and Noble
Red Mango
American Greeting Cards
Dave and Busters
Curves Gym
Salad Creations
Big Dog
Wireless Zone
Weight Watchers
Contours Express
California Pizza Kitchen
Jenny Craig
Dennys
Nathans Famous Hot Dogs
Body Time
Papa Johns
BJ's
Justice Apparrel
Book World
Chipotle AppleBees
Pak Mail Centers
Celebree Learning Centers
Sonics Maggianos
Pick up Stix
Pinkberry
The Yardhouse
Dippin Dots
Haagaen Daz
Bath and Body Workds
Kesslers Sports Shops
Dominos
Macayo Mexican
Click Camera and Video
Michaels Stores
Borders
Godiva Chocolates
Golds Gym
Baja Fresh
Childrens Orchard
Little Caesars
CityBites
Ericks Bike Shop
Notes:
Sky West has a relationship or contact with every tenant on this list. Sky West has compiled a database of over 7,000 Retail Tenants & prospects that we deal with on a daily basis
8
Executive Summary
Project Highlights
Under-Retailed Market Area
•
•
•
High Traffic Visibility and Accessibility
•
•
•
Rapid Rooftop Growth (Population Surge)
•
•
•
•
Local residents spend $85 million outside of the trade area (sales leakage), a significant portion of which they could spend at the proposed
center.(CBRE Analysis for Sponsor) (Con. Expenditures - Total Trade Area Sales)
Douglas County has approximately 47,000 people with limited retail.
The closest big box retailers are in Carson City (15 miles away).
Property is situated at the high traffic and visible corner of Highway 88
and Highway 395 (39,000 cars per day).
Across the street from the largest High School in Douglas County (1500
students).
15 minutes from Lake Tahoe and 15 miles from Carson City.
Population has been aggressively growing with over 60% of new residents
coming from California.
Population is estimated to grow at 12% for the next 5 years. (CBRE Research)
According to the local newspaper, The Record-Courier, in a May article,
“With 500 homes coming in Minden’s population could increase by 1250
in the next four years.”
One of the larger homebuilders in the region, Syncon Homes, has 500
homes coming on-line across the street over the next few years.
Strong, Seasoned Developer
•
Jeffrey Lowden has successfully developed over $150 million of commer
cial and residential properties in California, Nevada and Idaho.
Broad-based Political Support
•
The city of Minden has limited retail outlets and this brings significant additional tax revenues from the deep pocketed (per capita income: $71,724)
local population.
9
Timing of Project:
Executive Summary
The parcel of land is currently entitled to accommodate retail, hotel and office use.
Land Acquisition - First Quarter of 2007
Approvals and Permits - February 2008
Land Development Completion (Loan 1) - September 2008
Vertical Construction - First Quarter 2009
Construction Completion - Third Quarter 2009
Certificate of Occupancy - First Quarter 2010
Property Stabilization - Second Quarter 2010
Property Sale or Refinance - Fourth Quarter 2010
Proposed Structure:
The preferred financial structure for the acquisition and development of the Property
would include 70% debt and 30% equity.
The Sponsor will contribute 10% of the required equity with the balance coming from
an Investor(s).
Equity Partners (Sponsor and Investor) will earn a 9% preferred return (accrue). Profit
splits to be negotiated.
Vertical Development Loan:
$ 14,574,859 (70% Loan to Total Project Costs of $21,452,770) - Non-recourse, Li
bor based vertical development loan. Debt source will have first right to refuse pe
rmanent financing of the Property. 24 month term with additional options to ex
tend.
Equity Investment:
$2,433,012. To be negotiated with Bank and Sponsor dependent on final loan terms.
Investment Term:
Eighteen to Twenty Four Months.
Sponsor:
Jeffrey Lowden is an experienced developer with over 15 years of development experi
ence and currently serves as the President and CEO of Sky West and Companies (See
10
Location:
Executive Summary
Potential tenants have expressed strong interest in Minden Gateway Center because the Center is the newest
retail development to arrive in Minden in the last few years and the Center offers a unique location along
two highways.
Type of Construction
• Concrete block and beam.
Ingress/Egress
• Access to the site is both directions off Highways 395 and Highway 88.
• Entrance to city of Minden.
Parking Spaces
Visibility
• 572 parking spaces are required and the Sponsor plans to develop 652 spaces.
• Extremely high. The site is located at the intersection of Highways 395 and 88.
11
Executive Summary
Figure 2. Regional Map of Douglas County area, with Minden in the center
Location
• The Property is in a very strategic position along the high-
traffic and visibility intersection of Highways 88 and 395
(39,000 cars per day).
• The retail center is located opposite Douglas High School,
the largest high school in Douglas County (1500 students).
• Location is 15 minutes from South Lake Tahoe and 15
miles to the capital of Nevada, Carson City.
Path of Growth
• 500 homes coming online (Syncon Homes).
• 7% retail vacancy rate in the region with great access to
California, Lake Tahoe and Carson City.
• Lack of developable land in Reno will turn many to Minden. Reno has 25,000 vacant acres left which the market
will absorb in the next 5 years or less.
• Grand Opening of Carson-Tahoe’s Regional Medical Center with over 300,000 SF of space will bring a lot of high
salaried individuals to Minden.
• Favorable tax laws, high quality of life and the increasing
cost of living in California is driving population growth.
12
Executive Summary
Figure 3. Project brings new infusion to otherwise ‘tired retail’ in the area.
Why This Project Works
Valuable location which offers sizeable retail space in an underserved retail market.
Strong pre-leasing interest in a tough market.
Development team has hired local experts to manage execution, including:
• Leasing - 10 separate brokers.
• Civil Engineering - RO Anderson, Jeremy Huthings
• Architect - Hannifan Design Group
• The city elders view the Property as a key commercial location for the city and supports its
early and successful completion.
• According to the President of Stewart Title of Nevada, one of the largest title companies in
Nevada , “Minden Gateway Center is the most important site in Douglas County.”
•
•
•
13
Why Douglas County and Minden?
• Wealthy population: highest per capita income out of all Nevada counties.
• Douglas County is very popular due to its: affordability, mild climate, outdoor active
•
•
•
•
•
Why Sky West (Sponsor) ?
ties and overall growth (job and population).
Size: The population of Minden is likely to grow by 50% in the next four years.
Incredible tax benefits (lower cost of business), outdoor activities (fishing, hiking, ski
ing), high quality of life, strategic location (access to Sacramento and Carson City).
Wealthy Californians are moving with ‘California retail’ expectations.
Minden offers easy access to Tahoe, Carson City, Heavenly and California.
Lies across of the street from the largest high school in the county (1500 students) and
one block from Carson Tahoe Medical Center (over 300,000 SF).
• Seasoned developer, well-connected in Reno, possessing a stellar track-record.
• Built a house with the Governor of Nevada in 1980 which he currently owns.
• Currently owns or is developing five retail centers with over 1.2 million SF in Califor
•
•
•
Figure 4. Sky West
Executive Summary
•
nia, Nevada and Idaho.
Politically and economically connected in Northern NV.
Holds a partnership with Diane Keith in, ‘Emerald Assets,’ which functions
as Sky West’s on-call equity investment arm.
Retains an in-house financial analyst, Abby Mamgain, a graduate of USC’s Masters
in Real Estate Program and Doctorate program in Real Estate and Urban Economics.
Developed over $150 million of buildings ranging from single family homes, retail
centers and mixed-use office parks.
14
Developer
Executive Summary
Sky West Investments, Inc.
Developer - Jeffrey Lowden
(800) 891-5086
Financing
Cal National - Chang Liu
Zisler Capital Partners - Matthew Zisler
(213) 443-1516
(310) 823-5800
General Contractor
Metcalf Builders : Tom Metcalf
(775) 885-1844
Architect
Hannifan Design Group
(775) 882-4541
Project Manager
Metcalf Builders : John Young
(775) 885-1844
Engineering
Civil Engineering : RO Anderson : Jeremy Hutchings
Traffic Engineering : Solegi Engineering : Paul Solegi
(775) 215-5010
(775) 358-1004
Landscape Planner
Sue McReavy
(775) 215-5029
Title & Escrow
Stewart Title
Escrow Officer - Traci Adams
Title Officer - Karen Ellison
(775) 783-4314
(775) 783-4323
Pad Sales Broker
Coldwell Banker : Michael Ornelis
Century 21: Jim Nickerson
(775) 771-6449
(775) 782-7111
Leasing Broker
Sky West Brokerage : Mark Held
Sky West Brokerage : Justin Greenberg
EBMC : Marsha Jones
(775) 240-0425
(310) 717-6015
(775) 827-7809
Legal
Laxalt & Nomura : David Wassick
(775) 823-2900
Public Relations
MacWest : Miya MacKenzie
(775) 846-0112
16
Executive Summary
Sources and Uses
SOURCES AND USES
Land Basis
Hard Cost
Soft Cost and Developer Fee
Financing Cost
Sources
Senior Loan $
New Equity $
In-Place Equity $
14,574,859
2,699,261
4,178,650
17
$
$
$
$
Uses
9,716,201
8,453,524
1,947,047
1,335,998
Executive Summary
Figure 5. Minden offers spectacular scenery.
Key Economic and Other Indicators are Robust
Population Growth
• The number of households living in the Minden trade area
have increased by almost 20% since 2000.
Demographics
• Average Household income is $71,728 (More than 50%
higher than the national average).
• 75% of population own their residences
• 48% of population is over 16 and employed
• Median age in the trade area is 42 years old
• 45% of the population is over the age of 45
Local Economy
• Driven by construction, manufacturing, services, and retail
trade.
• The labor force is 17,600 with 1,820 businesses
Colleges
• Western Nevada Community College, Truckee Meadows
Community College, Sierra Nevada College and University
of Nevada, Reno
18
Executive Summary
Leasing Team
The Sponsor is combining the efforts of Sky West Brokerage with Eugene Burger Management Corporation, a firm that manages
25 commercial properties in the Reno/Tahoe area (led by Marsha Jones and her team) to manage the lease-up effort.
Tenants Represented by Eugene Burger Management Corporation in Reno/Tahoe
99 Cent Store
A Polished Hair and Nails
Alpine Hematology & Oncology
Apex Chiropractic
Applied Industrial
Arthritis Consultants
Bank of the West
Barnes & Noble
BEA Systems, Inc.
Bedrosian
Best Buy
Block Graphics
Blockbuster, Inc.
Bruce E. Mullen MD
Capitol Orthopedics
Car Wash & Lube
Carlo Gauazzi Mupac
Carl's Jr.
Carson Tahoe Regional Health Center
Casual Male
Cetus Mortgage
Check 'n Go
Chi Massage
Chili's
Chuck E Cheese
Cobbey Insurance
Colliers International
Computers of Reno
Custom Physical Therapy
Davidson's Tea
Davis Chiropractic
Dollar Loan Center LLC
Dotty's, a Restaurant
Dr. David J. Dapra MD
Dr. Harry C. Huneycutt MD
Dr. Larry W. Gardner MD
Dr. Loth E. Lieberstein MD
Dr. Merle Bruce MD
Dr. Ronald L. Smith MD
Dr. Timothy J. Dyches MD
Egg Roll King
Enterprise Rent A Car
Eugene Burger Management Corp.
EyeCare Professionals
Faith Alive Church
First Independent Bank
Golden Valley Cleaners
H & R Block Tax Services
Harris & Thompson
Honey Treat Yogurt
Horning, Holmberg CPA
If The Shoe Fits
Independent Living Centers
Interstate Insurance
Italia Granite
Jackson Hewitt
Jackson Hewitt Tax Services
Jerry Carr Whitehead and
Jimmy Beans Wool
Jonathon Whitehead
Just 4 Pets
La Familia
Leach & Sons
Lennar Reno, LLC
Long's Drug
Macaroni Grill
Medical Investments Associates
Motor Sheep
National City Mortgage
Nevada Arrhythmia Service
New Journey Church
North Face/Neumont University
North Hills Chiropractic
North Hills Veterinary Clinic
On The Border
Pacific Sun Tanning Salon
Parent Teachers Aid
Parts Unlimited
Pearle Vision
Pediatrics Associates
Pep Boys
Petco
Port of Subs
Precision 6
Pulmonary Medical Associates
Quizno's Classic Subs
R & J Jewelers
Raley's Supermarkets
ReMax Realty Professionals
Reno Orthopaedic Clinic
Renown Health
Rigo's Mexican Cuisine
Round Table Pizza
Salon 2000
Sienna Hotel & Casino
Social Enterprises
Sparks Florist
Sparky's, a Sports Bar
Specialty Health
Sprint
State Board of Nevada Nursing
State Farm Insurance
State of Nevada Dept. of Education
State of Nevada Mental Health Services
Stitch In Time
Subway Sandwiches
Sunsations, a Tanning Salon
Sunshine Court Reporting Services
Sushi Teri
Talk of the Town
The Diner
The Men's Wearhouse
The Pour House
Thrift Depot
Toys R Us
Twelve Horses North America
Twin Dragon
United Laboratories
US Bancorp
Verizon Wireless
Waddell and Reed Financial Advisors
Washoe County Library
Watson & Rounds attorneys
Wiremold
Tenant Mix Opportunity Gap According to CBRE Research
Based on existing retailers and space demands CBRE Research believes that there is an opportunity for the following retailers:
•Automotive dealer, department stores, limited service eating places, pharmacies and drug stores.
•Clothing stores, gas stations and full-service restaurants.
19
Executive Summary
Minden Gateway Center - Subject Property. The mall is 67,716 square feet located at the highest traffic intersection in the
town of Minden. The leasing team is targeting leases of $2.38 PSF NNN, which is a deal relative to the property specific advantages (location, product, scale, complementary on-site uses) of comparable properties.
Comparable Properties
Waterloo/Pine Crest Retail Center
A 31,500 square foot retail shopping center which
began construction in 2007. Located on Waterloo
Lane and Highway 395. This property offers poorer
access and is not as nice of a product as Minden Gateway Center.
A recent Grubb & Ellis listing, July 9, 2008, advertised retail space for $2.35 PSF NNN. Leases have
been signed for between $2.60 - $3.00 PSF NNN.
CAM is estimated at .25-35 cents p.s.f. This center
has a lower tenant improvement allowance ($5.00)
Ironwood Center Minden
This site is a half mile from Minden Gateway Center. With a single access point, Ironwood Center has
struggled to find tenants (45% Vacant). Ironwood
Center is considered an inferior mall both by accessibility, product and age.
A recent Grubb & Ellis listing, July 9, 2008, advertised restaurant retail space for $1.95 PSF NNN.
This site is block grey construction and considered a
B–location. Most signed leases are between $1.00 and
$1.30 PSF NNN.
20
Valley Crescent Center
About to undergo its first major remodel since being
built in the early 70s. The site is the first grocery anchored center in Minden.
The site is located approximately 2 miles from Minden Gateway Center in Gardnerville, with the parking lot fronting on highway 395.
The site is expanding to 71,000 square feet from
49,000 square feet with space available for lease between $1.65-$2.00 NNN.
Minden Village
The is not considered a comparable property because
it’s primarily office with very limited frontage located on a side street.
81,000 square foot of total F.A.R built in 2005, composed of 14 freestanding buildings, which feels like a
commercial office park. The property is 75% office
and 25% retail. The property was originally built out
for grey shell and sold by building for $190 - $250
per square foot.
The retail portion of this site is 30,000 square feet
and is 100% occupied. Approximately 25,000 is occupied by a grocery tenant with the remaining 5,000
leased to tenants such as: Quiznos, Cold Stone
Creamery and a Bank.
21
Executive Summary
II. Financials
Financials
Development Proforma
Minden, Nevada - Construction Loan
PROJECT COST SUMMARY
Area(sqft)
Per Square Foot
LAND COST
Land Basis less pad sales (balanced owed from phase 1)
HARD COSTS
Pad Ready Build out
Tenant Improvements
Hardscape Items in Lifestyle Retail Area (Vertical Loan No. 2)
Brick paver mow curb
Pavers
Fencing
Planter Pots
Benches
Tree Grates
Architectural Light Posts
Bike Racks
Trash Receptacles
Flagpoles
Fountain
Raised Planter
Entry Feature Trestles
Landscaping
Project Signage
Monument signs
Secondary Signs
Kiosks
Directional Signs
Construction Contingency
Hard Cost Subtotal
SOFT COSTS
Architecture/ Engineering
Sign Design & Submission
Civil Engineering
Structural Engineering
MEP Engineering
Energy Calculations
Water and Irrigation Fee
Sewer Fee
Taxes
Approvals (% of Project costs)
Insurance and Bonds
Legal and Accounting
Leasing commissions (see notes)
Other Consultants (Marketing, PR and other)
Soft Cost Subtotal
Developer Fee
4%
TOTAL DEVELOPMENT COSTS
Total
$
9,716,201
$
$
5,060,082
1,692,900
10,000
26,350
5,000
48,300
21,375
18,428
5,000
2,452
5,000
10,000
60,000
30,000
160,000
199,544
136,000
60,500
90,000
35,000
22,500
755,093
8,453,524
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
42,268
8,454
8,454
8,454
21,134
300,000
300,000
153,373
21,134
29,587
42,268
548,500
63,401
1,547,025
$
400,022
$
20,116,772
$
$
145,749
48,587
510,120
26,288
585,011
20,244
1,335,998
$
21,452,770
$
$
$
$
$
$
21,452,770
14,574,859
510,120
4,178,650
2,024,446
674,815
FINANCING
Advisor Fee - Senior Loan
Senior Loan Fee
Senior Loan Interest
A&D Loan Extension Fee
Appian Exit Fee
Advisor Fee - Syndicated Equity Fee
Equity Loan Fee
1.00%
1.00%
7.00%
0.25%
14.00%
1.00%
0.00%
of
of
of
of
of
of
of
Senior Loan Amount
Senior Loan Amount less Land Basis
Senior Loan Amount
A&D Loan Amount
Phase 1 Mezz Loan Amount
Equity Loan Amount
Equity Loan Amount
Subtotal Financing Cost
TOTAL PROJECT COSTS
Phase 2 : Project Summary
Total Project Cost
Senior Loan Inc. Interest Reserve
Senior Loan Interest Reserve
Appian Equity
New Investor Equity
Sponsor Equity
23
LTC
70%
3.1%
Financials
Key Assumptions
$2.38 Rent PSF NNN and a stabilized occupancy of 93%
RETAIL REVENUE CALCULATIONS
Gross Rental Revenue
CAM Reimbursements Parcel 6&7
CAM Reimbursements Common Area
Total Gross Income
$
$
$
$ / PSF / Month
$ / PSF / Year
28.56
2.38 $
0.25 $
3.00
0.25 $
3.00
Less Vacancy
Effective Gross Income
Less Management Expense
Cap. Ex Reserve
Less CAM Expenses (Reimbursements)
$
Annual Revenues
1,918,277
201,498
586,980
2,706,755
7% $
$
(189,473)
2,517,282
-1.20% $
0.50
(30,207)
(33,583)
(788,478)
(852,268)
$
$
$
Total NOI
$
1,665,014
Stabilized NOI with Inflation Growth
$
1,714,964
24
Financials
EXIT
Exit Cap Rate
Exit NOI $
Gross Inline Sale Price
Less Selling Costs
7.50%
1,714,964
$
4.00% $
22,866,187
(914,647)
Net Inline Sale Price
Less Cost of Phase 2
$
$
21,951,539
(21,452,770)
Net Operating Income
$
1,560,617
$
4,774,607
(238,730)
$
6,595,263
Gross Pad Sale Proceeds
Cost of Sales
5.00%
Net Proceeds Available for Equity
RETURN PROJECTIONS - Phase 2
Free & Clear
Equity
IRR
23%
40%
Multiple
1.31
1.80
$
$
Total Cost
(21,452,770) $
(6,877,911) $
Investor
49%
2.00
$
(2,024,446) $
25
Total Proceeds
28,048,033
12,395,235
4,046,650
III. Sponsor Summary
Sponsor Summary
About Sky West
Sky West Real Estate Services, LLC is owned and operated by Jeffrey Lowden. Mr. Lowden has been active in nearly all aspects
of the real estate market since 1987. He brings a demonstrated ability to select, acquire, and develop residential, commercial, and
industrial real estate; anticipate, identify, and analyze market trends; devise multi-faceted marketing strategies; and dramatically
increase revenues in competitive environments. While he has a broad resume of development experience, Mr. Lowden’s current
focus is on retail power and grocery anchored center developments. Some of notable completed / under development projects
include:
27
Sponsor Summary
R. Jeffrey Lowden, Owner and Developer
Jeffrey is the driving force behind development and growth of Sky West Real Estate Services, LLC. His
business experience spans all across the globe and includes countries in Europe, Asia, and Middle East, in
addition to United States. Jeffrey is a decision maker with demonstrated ability to select, acquire, and develop residential, commercial, and industrial real estate. He is well versed in anticipating and identifying
market trends and in devising multi-faceted marketing strategies. Over the years he has demonstrated a
special talent for maximizing profit-making opportunities. In addition he has excellent communication,
negotiation, and relationship building skills that are reinforced by outstanding reputation for integrity and
Corporate-level contacts. His people skills and business skills are also suitable enhanced by a strong academic background; he holds a Master of Business Administration in Real Estate and Construction Management from University of Denver.
Real Estate Experience:
SKY WEST REAL ESTATE SERVICES, LLC, Los Angeles, CA—1990-Present—Founder
• Founded an organization that acquires, develops, and sells real estate assets in Nevada, California, and Arizona.
• Identify properties for possible acquisition, perform market and financial analysis, negotiate with sellers, hire contractors, and oversee construction process.
• Select building materials, work with architects on space planning and design, and oversee listing and selling of properties.
WEYERHAEUSER MORTGAGE, Reno, NV—1993-1995—Loan Originator
• Gained recognition as top producer for leading mortgage company, with loans from $350,000 to $5.0 million.
• Utilized construction industry background and MBA in Real Estate and Construction Management to establish
builder relations.
Education
University of Denver, Denver, CO
Master of Business Administration in Real Estate and Construction Management (1990)
Arizona State University, Tempe, AZ
Bachelor of Arts in Liberal Arts (1987)
28
Sponsor Summary
Abby Mamgain, Analyst
Abby is an integral part of the Sky West Development team and assists in the due diligence, development and acquisition analysis. His additional roles include market and feasibility analysis,
and sales and marketing for Sky West’s properties in California and Nevada. Abby has also
held development and acquisition analyst roles at Millenium Homes and Trizec Properties in
Los Angeles. Mr. Abhishek received his bachelor’s degree and masters of architecture from the
University of New Dehli, his Masters of Real Estate Development from the University of
Southern California and is currently working on his post-doctorate in Real Estate and Urban
Economics from the University of Southern California.
Justin Greenberg, Associate
Justin is an Associate for Sky West Companies involved in sales, leasing and investment activities. In addition, Justin assists in due diligence, construction budgeting, bank relations,
and acquisition analysis for new projects . His career in real estate investment and brokerage
spans more than 12 years (detailed biography available upon request). Prior to joining Sky
West, Justin served as Director of Operations for Channel Capital Management, a Los Angeles
based real estate investment firm. He was also a founding partner of Centurion Realty Group,
Beverly Hills in 2006.
EMERALD ASSETS
Led by Diane Keith, Emerald Assets serves as the equity investment arm of Sky West Real Estate Services.
Additional information on other team members available upon request...
29

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