INVESTMENT OFFERING | $5068000 / 8.25% cap

REPRESENTATIVE PHOTO
INVESTMENT OFFERING | $5,068,000 / 8.25% cap
Noah’s
14017 Quail Springs parkway, Oklahoma City, Oklahoma
214.915.8888
JOE CAPUTO
[email protected]
BOB MOORHEAD
[email protected]
RUSSELL SMITH
[email protected]
Property. Brand new construction. 10,300+ SF building on 2.00+ acre site.
Tenant. Noah Corporation develops and operates innovative multi-use facilities for all life’s events to include conference center space for business, corporate,
and community events as well as weddings, parties, and other social gatherings. Today you can find Noah’s operating in Texas, Colorado, Utah & Arizona. Each
location hosts an average of 30,000 plus visitors at over 300 events annually. There are currently 28 Noah’s underway in 20 states.
Lease Structure. 20-year, NNN lease beginning December 2014 with 10% rent increases in year 6 and 2% every year after in base term & options.
Location. Noah’s is located along Quail Springs Parkway (11,000 Cars / Day), north of John Kilpatrick Turnpike (33,502 Cars / Day) and east of N Portland
Avenue (57,290 Cars / Day). John Kilpatrick Turnpike is a major southwest-northeast thoroughfare that runs along the outer ring of Oklahoma City, while N
Portland Avenue, is a major North-South thoroughfare that leads south into the heart of Oklahoma City and north to Cimarron City. The subject property is directly
east of Quail Springs Corporate Park (923,186 SF+) that contains large corporate offices for AT&T, Hertz, AVAYA, AAA, Mutual Assurance Adminstrators and is
home to Quail Springs Parkway Plaza, a 321,312 SF office space development. Holiday Inn, Hilton Garden Inn, Four Points by Sheraton, Spring Hill Suites, and
La Quitna are less than .5 miles from the Noah’s site. Noah’s is 1-mile away from Quail Springs Mall (1,128,000 square feet) which features Dillard’s, JCPenny,
Macy’s, Sears, a 24-screen AMC Theatre, and 130 total tenants. Within a 1-mile radius of the site, population is expected to increase by 6.63% in the next 5 years.
In 2013, the average household income within the a 1-mile radius was $80,459.
Table of contents
Noah’s
14017 Quail Springs parkway, Oklahoma City, Oklahoma
Disclaimer
PAGE 1:
COVER
PAGE 2:
TABLE OF CONTENTS | DISCLAIMER
PAGE 3:
INVESTMENT OVERVIEW
PAGE 4:
CORPORATE CLIENT LIST & TESTIMONIALS
PAGE 5-8:
AERIAL PHOTOS
PAGE 9:
LOCATION OVERVIEW
PAGE 10:
SITE PLAN
PAGE 11:
SITE RENDERING
PAGE 12-13:
LOCATION MAPS
PAGE 14:
DEMOGRAPHICS
REPRESENTATIVE PHOTO
EXP Realty Advisors, Inc. (“Agent”) has been engaged as an agent for the sale of the
property located at 14017 Quail Springs parkway, Oklahoma City, Oklahoma by the owner
of the Property (“Seller”). The Property is being offered for sale in an “as-is, where-is”
condition and Seller and Agent make no representations or warranties as to the accuracy of
the information contained in this Offering Memorandum. The enclosed materials include
highly confidential information and are being furnished solely for the purpose of review by
prospective purchasers of the interest described herein. The enclosed materials are being
provided solely to facilitate the prospective investor’s own due diligence for which it shall be
fully and solely responsible. The material contained herein is based on information and
sources deemed to be reliable, but no representation or warranty, express or implied, is
being made by Agent or Seller or any of their respective representatives, affiliates, officers,
employees, shareholders, partners and directors, as to the accuracy or completeness of the
information contained herein. Summaries contained herein of any legal or other documents
are not intended to be comprehensive statements of the terms of such documents, but
rather only outlines of some of the principal provisions contained therein. Neither the Agent
nor the Seller shall have any liability whatsoever for the accuracy or completeness of the
information contained herein or any other written or oral communication or information
transmitted or made available or any action taken or decision made by the recipient with
respect to the Property. Interested parties are to make their own investigations, projections
and conclusions without reliance upon the material contained herein. Seller reserves the
right, at its sole and absolute discretion, to withdraw the Property from being marketed for
sale at any time and for any reason. Seller and Agent each expressly reserves the right, at
their sole and absolute discretion, to reject any and all expressions of interest or offers
regarding the Property and/or to terminate discussions with any entity at any time, with or
without notice. This offering is made subject to omissions, correction of errors, change of
price or other terms, prior sale or withdrawal from the market without notice. Agent is not
authorized to make any representations or agreements on behalf of Seller. Seller shall
have no legal commitment or obligation to any interested party reviewing the enclosed
materials, performing additional investigation and/or making an offer to purchase the
Property unless and until a binding written agreement for the purchase of the Property has
been fully executed, delivered, and approved by Seller and any conditions to Seller’s
obligations hereunder have been satisfied or waived. By taking possession of and
reviewing the information contained herein, the recipient agrees that (a) the enclosed
materials and their contents are of a highly confidential nature and will be held and treated
in the strictest confidence and shall be returned to Agent or Seller promptly upon request;
and (b) the recipient shall not contact employees or tenants of the Property directly or
indirectly regarding any aspect of the enclosed materials or the Property without the prior
written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be
copied or otherwise reproduced without the prior written authorization of Seller and Agent.
LISTED IN ASSOCIATION WITH OKLAHOMA BROKER OF RECORD:
GLM COMMERCIAL PROPERTIES, LLC | LICENSE# 120857
Investment overview
Noah’s
14017 Quail Springs parkway, Oklahoma City, Oklahoma
Lease overview
PRICE:
$5,068,000
Initial Lease Term:
20-Years, Plus 4, 5-Year Options to Renew
CAP RATE:
8.25%
Rent Commencement:
December 2014
NET OPERATING INCOME:
$418,071
Lease Expiration:
December 2034
BUILDING AREA:
10,300+ Square Feet
Lease Type:
NNN
Rent Increases:
10% In Year 6, 2% Every Year Thereafter
LAND AREA:
2.00+ Acres
YEAR BUILT:
2014
LANDLORD RESPONSIBILITY:
Annual Rent (Year 1-5): $418,071
Annual Rent Year 13:
$528,255
Annual Rent Year 6:
$459,878
Annual Rent Year 14:
$538,820
None
Annual Rent Year 7:
$469,075
Annual Rent Year 15:
$549,596
OWNERSHIP:
Fee Simple Interest
Annual Rent Year 8:
$478,457
Annual Rent Year 16:
$560,588
OCCUPANCY:
100%
Annual Rent Year 9:
$488,026
Annual Rent Year 17:
$571,800
Annual Rent Year 10:
$497,786
Annual Rent Year 18:
$583,236
Annual Rent Year 11:
$507,742
Annual Rent Year 19:
$594,901
Tenant overview
Annual Rent Year 12:
$517,897
Annual Rent Year 20:
$606,799
LESSEE: NOAH OPERATIONS SAN ANTONIO TEXAS, LLC a Utah llc
Option Terms: Continued 2% Annual Rent Increases
CORPORATE GUARANTY: NOAH CORPORATION, a Utah corporation
Noah’s | www.mynoahs.com
Noah Corporation develops and operates innovative multi-use facilities for all life’s events to include conference center space for business, corporate, and
community events as well as weddings, parties, and other social gatherings. Automated features and “state of the art” technology and functionality make each
room customizable. Noah’s offers boardrooms, conference rooms, game rooms, and a beautiful reception area that can accommodate upwards of 350 people.
At no additional charge, the customer has the freedom to bring in whatever food, decorations, or other services that will assist in making the event a success.
Noah’s booking fees are approximately 25% less on average than its competition and each location hosts an average of 30,000 plus visitors at over 300 events
annually.
Noah Corporation is a national brand, with active expansion in several markets. Today you can find Noah’s operating in Texas, Colorado, Utah & Arizona. As of
February 2014, there were 28 projects in various phases of site acquisition and development in 20 states, mostly in the Midwest and Southeast.
The condition of the Event and Conference Center Industry, as it exists today, is largely without product consistency. Though consumers have come to expect
consistency within the retail/restaurant experience it is curiously absent from the conference center marketplace. This Multi-Billion Dollar industry remains in
"Status Quo Condition” and consumers continue to be frustrated by various elements of service, including high cost, lack of control and flexibility, inconsistent
quality, and lack of available facilities. This sleeping, unchanging attitude in the industry has provided an opportunity for Noah Corporation to alleviate frustration
for consumers. To do this Noah’s has standardized the experience with their facilities, creating a national brand that provides four to five star space and an ease of
doing business with Noah’s.
3
Corporate Client List & Testimonials
Noah’s
14017 Quail Springs parkway, Oklahoma City, Oklahoma
Intel
eBay
DirecTV
Verizon
Pepsico
Apple
Option1 Nutrition
Discover Card
Centura Health
CEO Netweavers
Wells Fargo
Cardinal Health
Frito Lay
Farmers Insurance
Juniper
Verizon Wireless
McDonalds
GE
Sashco
Genband
InfusionSoft
C.R. England
Home Depot
Taco Bell
Arch Fellow
1-800 Contacts
Mary Kay
Taco Bueno
CEO Space DFW
Aflac
Pfizer
Hurst Review
Ziosk
American Express
Sherwin Williams
Pure Barre
Nestle
Apple
US Bank
ACN
LSG Sky Chefs
Chase Bank
Ameriprise
Mountain Range Dentistry
Edward Jones
Pinnacle Mortgage
Jolliffe Capitol, INC
Texas Instruments
Denver Metro Realtors
Verizon
Safeco
Century 21
Lte
Chick-fil-a
4
Aerial photo
Noah’s
14017 Quail Springs parkway, Oklahoma City, Oklahoma
CoreVault
Advanced Body Imaging
Foundation
Surgery
Center
Oklahoma
Spine
Hospital
Parkway
Medical Center
Crossings Christian
School
Pain Management Center
F.B.I. Oklahoma Headquarters
(90,528 SF)
(225,035 SF)
Quail Springs
Parkway Plaza
(321,312 SF)
Quail Springs
Corporate Park
(923,186 SF)
(131,292 SF)
(41,952 SF)
(57,900 SF)
(145,635 SF)
The Shops At North
Pointe
5
Aerial photo
Noah’s
14017 Quail Springs parkway, Oklahoma City, Oklahoma
The Shops At North Pointe
F.B.I. Oklahoma Headquarters
(90,528 SF)
(145,635 SF)
Quail Springs
Corporate Park
(923,186 SF)
Quail Springs
Parkway Plaza
(321,312 SF)
(41,952 SF)
(131,292 SF)
(57,900 SF)
(225,035 SF)
Crossings
Christian School
6
Aerial photo
Noah’s
14017 Quail Springs parkway, Oklahoma City, Oklahoma
Quail Springs
Baptist Church
(225,035 SF)
(57,900 SF)
Crossings
Christian
School
Oklahoma
Spine
Hospital
(131,292 SF)
Parkway
Medical Center
Foundation
Surgery Center
Quail Springs
Church of
Christ
(41,952 SF)
Quail Springs
Corporate Park
(923,186 SF)
American Bank Systems
(145,635 SF)
Advanced Body Imaging
CoreVault
Pain Management Center
Cross Rock
Executive Suites
F.B.I.
Oklahoma
Headquarters
(90,528 SF)
The
Shops At
North
Pointe
John Kilpatrick Turnpike (33,502 Cars / Day)
7
Aerial photo
Noah’s
14017 Quail Springs parkway, Oklahoma City, Oklahoma
Quail Springs
Baptist Church
Quail Springs
Church of
Christ
Crossings Christian
School
Parkway
Medical
Center
Quail Springs Pkwy (11,000 Cars / Day)
Oklahoma Spine Hospital
Foundation Surgery Center
CoreVault
Pain Management Center
Advanced Body Imaging
Cross Rock
Executive Offices
F.B.I
Oklahoma
Headquarters
Quail Springs Corporate Park
(923,186 SF)
The
Shops At
North
Pointe
N. Portland Avenue (57,290 Cars / Day)
John Kilpatrick Turnpike (33,502 Cars / Day)
8
Location overview
Noah’s
14017 Quail Springs parkway, Oklahoma City, Oklahoma
IMMEDIATE TRADE AREA
Noah’s is located along Quail Springs Parkway (11,000 Cars / Day), north of John
Kilpatrick Turnpike (33,502 Cars / Day) and east of N Portland Avenue (57,290 Cars
/ Day). John Kilpatrick Turnpike is a major southwest-northeast thoroughfare that
runs along the outer ring of Oklahoma City, while N Portland Avenue, is a major
North-South thoroughfare that leads south into the heart of Oklahoma City and
north to Cimarron City. This visibility and accessibility has transformed the area into
a thriving and dense corporate and retail corridor.
The subject property is directly east of the Quail Springs Corporate Park, a
corporate office and business development containing over 923,186 SF that houses
large corporate offices for AT&T (131,262 SF), Hertz (225,035 SF), AVAYA (57,990
SF), AAA (145,635 SF), Mutual Assurance Administrators (41,952 SF), and is home
to Quail Springs Parkway Plaza, a 321,312 SF office space development. The
F.B.I’s Oklahoma headquarters (90,528 SF) is located immediately south of the
subject property.
Economic Drivers
In addition to Quail Springs Corporate Park, Noah’s is strategically positioned 1mile away from the largest mall in Oklahoma City, Quail Springs Mall (1,128,000
square feet featuring 130 tenants), and .5-miles away from large medical operators
such as Oklahoma Spine Hospital, Oklahoma Heart Hospital, Foundation Surgery
Center of Oklahoma City, Parkway Medical Center, and Advanced Body Scan
Imaging.
In Oklahoma county, the average number of guests per wedding is 130-150, and
97% have less then 300 guests. Last year there were 6,283 weddings county wide.
Noah's only needs to capture 1.5% of the market to be a highly successful wedding
venue. The average wedding budget for the area is $22,000 compared to Noah's
typical wedding cost of $18,000 - $20,000.
There are 5 hotels within walking distance of Noah’s, which cater primarily to
business travel, a Holiday Inn (109 Rooms), Hilton Garden Inn (116 Rooms), Four
Points by Sheraton (117 Rooms), Spring Hill Suites (128 Rooms), and La Quinta
(95 Rooms). Seven other hotels are located within a 1.5 mile radius of Noah’s.
Platt College, John Marshall High School, Crossings Christian School, Quail Creek
Elementary School, and Stonegate Elementary School are all less than 2-miles from
the subject property.
Noah’s is 17-miles away from Will Rogers World Airport, Oklahoma City’s major
airport, and is 15-miles north of Oklahoma City’s Central Business District.
OKLAHOMA CITY, OK
Oklahoma City is the county seat of Oklahoma County and is the largest city in
Oklahoma. It ranks 29th among United States Cities in population; as of 2012, the
population was 599,199 people. The city ranks as the eighth-largest city in the
United States by land area.
Oklahoma City lies along one of the primary travel corridors into Texas and Mexico.
The city lies centered in between three other large cities: Dallas, Texas, Wichita,
Kansas, and Tulsa, Oklahoma. According to the Oklahoma City Chamber of
Commerce, the metropolitan area's economic output grew by 33 percent between
2001 and 2005 due chiefly to economic diversification. ts gross metropolitan product
was $43.1 billion in 2005 and grew to $61.1 billion in 2009. In 2008, Forbes
magazine named Oklahoma City the most "recession proof city in America". The
magazine reported that the city had falling unemployment, one of the strongest
housing markets in the country, and solid growth in the energy, agricultural, and
manufacturing sectors.
OKLAHOMA CITY MSA
The Oklahoma City Metropolitan Statistical Area (MSA) is a large urban region
located in the central part of the State of Oklahoma and currently has a population
of 1,322,429. It is often known as Oklahoma City Metro and contains the state
capital and principal city, Oklahoma City. Seven counties make up the Oklahoma
City Metro Area: Canadian, Cleveland, Grady, Lincoln, Logan, McClain, and
Oklahoma.
The diversified economy of Oklahoma City includes information technology, general
services, health services, and administration sectors in addition to the energy and
government sector mainstays. The city has two Fortune 500 companies: Devon
Energy Corporation and Chesapeake Energy Corporation, several others that are in
the Fortune 1000 and a number of large privately owned companies. Oklahoma City
is home to the corporate headquarters of Sonic Drive-In, whose office building and
corporate restaurant is located in Bricktown, an in-town neighborhood that has
undergone a renaissance in the last decade. Devon Energy began construction in
2009 on a new 844-foot tall, 1,800,000 SF headquarters building in downtown
Oklahoma City. The new skyscraper was completed in March 2012. Continental
Resources moved more than 250 employees from Enid to its new headquarters in
downtown Oklahoma City in 2012. Other large employers in Oklahoma City Metro
include McKesson Corp., Tinker Air Force Base, the University of Oklahoma, the
University of Central Oklahoma, American Fidelity, AT&T, AAA, Bank of America,
Bank of Oklahoma, The Boeing Company, Braum's, Dell, The Farmer's Insurance,
The Hartford, JP Morgan Chase, Mercy Heath System, Sprint/Nextel, St. Anthony
Health System, Williams-Sonoma, Xerox, United Parcel Service, Cox, and the State
of Oklahoma. The University of Oklahoma in Norman which is home to 30,303
students and an academic staff of 2,937 provides additional diversification to the
regional economy.
In 1993, the city passed a massive redevelopment package known as the
Metropolitan Area Projects (MAPS), intended to rebuild the city's core with civic
projects to establish more activities and life to downtown. The city added a new
baseball park; central library; renovations to the civic center, convention center and
fairgrounds; and a water canal in the Bricktown entertainment district. MAPS has
become one of the most successful public-private partnerships undertaken in the
U.S., exceeding $3 billion in private investment as of 2010.
9
SITE PLAN
Noah’s
14017 Quail Springs parkway, Oklahoma City, Oklahoma
10
SITE RENDERINGS
Noah’s
14017 Quail Springs parkway, Oklahoma City, Oklahoma
11
Location map
Noah’s
14017 Quail Springs parkway, Oklahoma City, Oklahoma
12
Location map
Noah’s
14017 Quail Springs parkway, Oklahoma City, Oklahoma
13
Demographics
Noah’s
14017 Quail Springs parkway, Oklahoma City, Oklahoma
DEMOGRAPHIC SNAPSHOT
Radius
Population:
2018 Projection
2013 Estimate
2010 Census
Growth 2013-2018
Growth 2010-2013
Households:
2018 Projection
2013 Estimate
2010 Census
Growth 2013 - 2018
Growth 2010 - 2013
Owner Occupied
Renter Occupied
2013 Avg Household Income
2013 Med Household Income
2013 Households by Household
Inc:
<$25,000
$25,000 - $50,000
$50,000 - $75,000
$75,000 - $100,000
$100,000 - $125,000
$125,000 - $150,000
$150,000 - $200,000
$200,000+
1 Mile
3 Mile
5 Mile
3,637
3,411
3,273
6.63%
4.22%
60,907
57,281
55,412
6.33%
3.37%
152,134
143,185
138,840
6.25%
3.13%
1,918
1,797
1,721
6.73%
0.31%
754
1,042
$80,459
$47,403
28,340
26,637
25,769
6.39%
0.54%
14,778
11,859
$78,675
$56,622
65,290
61,429
59,630
6.29%
0.16%
38,758
22,671
$79,446
$59,297
417
495
243
198
132
68
75
169
5,577
6,470
4,321
3,351
2,544
1,362
1,363
1,649
12,384
13,990
10,772
8,346
5,812
3,521
2,932
3,673
Downtown Oklahoma City, OK
F.B.I. HQ – Oklahoma City, OK
14