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OFFERING MEMORANDUM Capital Markets | Investment Properties RANCHO MIRAGE 71847 HIGHWAY 111, RANCHO MIRAGE, CA 92270
OFFERING MEMORANDUM
Capital Markets | Investment Properties
RANCHO MIRAGE71847 HIGHWAY 111, RANCHO MIRAGE, CA 92270
AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT
CBRE, Inc. Operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).
Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written
authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.
If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.
This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information
contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.
The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.
© 2018 CBRE, Inc. All Rights Reserved.
R A N C H O M I R A G E
TABLE OF CONTENTS
04 EXECUTIVE SUMMARY
06 RENT ROLL
07 TENANTS OVERVIEW
08 CASH FLOW PROJECTIONS
10 MARKET OVERVIEW
12 IMMEDIATE TRADE AREA MAP
13 AREA DEMOGRAPHICS
CONTACT US
AMAR GOLIVice President+1 818 907 [email protected]. 01883944
JOE BELLAVIAAssociate+1 310 867 [email protected]. 01441106
JACK FRIDAssociate+1 310 550 [email protected]. 01963234
MILES WATERSAssociate+1 818 907 [email protected]. 02047288
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OFFERING SUMMARY
Property Address 71847 Highway 111Rancho Mirage, CA 92270
Total GLA ±7,250 SF
Current Leased SF ±6,124 SF
Projected Year 1 NOI $119,678
Offering Price $2,258,000
Price ($/SF) $311
No. of Current Tenants Two (2)
Ownership Interest Fee Simple
Encumbrances None, Delivered Free & Clear
$2,258,000 OFFERING PRICE5.30% CAP RATE
CBRE is offering to qualified investors the opportunity to purchase the fee simple interest in the commercial property located at 71847 Highway 111, Ranch Mirage, CA 92270 (the “Property”).
The multi-tenant ±7,250 square-foot office building is leased to Mission Hospice Services and Mission Home Health of Rancho Mirage. The property is under two five (5) year Triple-Net leases with total annual rent of $119,678 and rent increases in 2019.
Triple Net Leased Investment
Rent Increases in 2019 and Upcoming Renewal Options
Directly Across from The River Center
Strategically Positioned to Serve Both Seasonal and Permanent Residents Year Round
Prominent Corridor for Prime Retail & Business District
Strong Co-Tenants (Johnny Rockets, Sit N' Sleep, Mimi's Café)
Strong Demographics/Affluent Desert Community
INVESTMENT HIGHLIGHTS
EXECUTIVE SUMMARY:
R A N C H O M I R A G E
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Map for Executive Summary - Rancho Mirage OM
Untitled layer
Site Location
Indio
La Quinta
Palm Springs
RANCHO MIRAGE also offers a dynamic yet balanced economic environment. The community is noted for its country clubs, resort hotels and modern medical-health care facilities. Rancho Mirage’s location and strong demographics have attracted its share of financial institutions, professional services and furniture/home furnishing retailers.
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RENT ROLL
SUITE TENANT NAMESQUARE
FEETLEASE START
LEASE EXPIRATION
RENTAL RATES RECOVERY
TYPESECURITYDEPOSIT
BEGIN MONTHLY ANNUALLY $/SF
A Mission Hospice Services of Ranch 2,590 SF Apr-2015 Mar-2020
Current $4,268 $51,216 $19.77 NNN - Tenant pays pro-rata share of CAM, taxes, insurance and 5%
management fee
$4,144
Apr-2019 $4,396 $52,752 $20.37
Comments: Tenant has one (1) 5-year option
B/CMission Home
Health of Rancho Mirage 3,534 SF Feb-2015 Jan-2020
Current $5,824 $69,888 $19.78 NNN - Tenant pays pro-rata share of CAM, taxes, insurance and 5%
management fee
$5,654
Feb-2019 $5,999 $71,985 $20.37
Comments: Tenant has one (1) 5-year option
D VacantSeller Master Lease*
991 SF Current $1,569 $18,829 $19.00
Comments: *For Space D – Seller is willing to Master lease the space for 1-2 years, or until Landlord finds a suitable tenant
OCCUPIED SF 6,124 SF
AVAILABLE SF 991 SF
TOTAL SF 7,250 SF
SITE PLAN
R A N C H O M I R A G E
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TENANTS OVERVIEW
Mission Healthcare offers reliable, thoughtful and professional care and nursing in one’s home through Mission Home Health, Mission Home Care and Mission Hospice. Mission Healthcare was founded in 2009, and is clini-cally owned and operated. It is their goal to have a positive impact on the lives of our patients, their families and their healthcare partners throughout the continuum of care. They utilize all available resources to provide the highest level of care possible to their patients all in the comforts of their home, which is proven to be the optimal healing environment. They offer these home nursing and care services throughout the greater San Diego, Teme-cula, Riverside, San Bernardino,Ventura, and Palm Springs areas.
Our vision is of a community in which people-in-transition and those who love and support them have access to proper palliative care and support when they need it, wherever they need it and whoever they are.
The following is a list of the types of services Mission Hospice Services provides:
• Physician Services • Skilled Nursing Care • Music Therapy • Chaplain Services
• Social Services • Nursing Aides
• Volunteers
Locations: 10, throughout Southern California
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CASH FLOW PROJECTIONS
CASH FLOW PROJECTIONS BEGINNING JULY 1, 2017
FOR THE YEARS ENDING YR 1
FEB-18
YR 2
FEB-19
YR 3
FEB- 20
YR 4
FEB-21
YR 5
FEB- 22
YR 6
FEB-23
YR 7
FEB-24
YR 8
FEB-25
YR 9
FEB-26
YR 10
FEB-27
POTENTIAL GROSS REVENUE
Base Rental Revenue $139,933 $143,609 $144,522 $148,759 $153,120 $157,610 $162,232 $166,990 $171,887 $176,929
NNN Recoveries $37,511 $38,448 $39,410 $40,395 $41,405 $42,440 $43,501 $44,588 $45,703 $46,846
TOTAL POTENTIAL GROSS REVENUE $177,444 $182,057 $183,932 $189,154 $194,525 $200,050 $205,733 $211,578 $217,590 $223,775
Vacancy - Rollover $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
EFFECTIVE GROSS REVENUE $177,444 $182,057 $183,932 $189,154 $194,525 $200,050 $205,733 $211,578 $217,590 $223,775
TRIPLE NET EXPENSES
CAM $25,700 26,343 27,001 27,676 28,368 29,077 29,804 30,549 31,313 32,096
TAXES $30,566 31,330 32,113 32,916 33,739 34,583 35,447 36,333 37,242 38,173
INSURANCE $1,500 1,538 1,576 1,615 1,656 1,697 1,740 1,783 1,828 1,873
TOTAL TRIPLE NET CHARGES $57,766 $59,210 $60,690 $62,208 $63,763 $65,357 $66,991 $68,666 $70,382 $72,142
NET OPERATING INCOME $119,678 $122,847 $123,241 $126,946 $130,762 $134,693 $138,742 $142,912 $147,208 $151,633
R A N C H O M I R A G E
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Rancho Mirage also offers a dynamic yet balanced economic environment. The community is noted for its country clubs, resort hotels and modern medical-health care facilities. Rancho Mirage’s location and strong demographics have attracted its share of financial institutions, professional services and furniture/home furnishing retailers. Equally impressive are the number of specialty shops and restaurants. More and more, Rancho Mirage is being hailed as “The Address of Choice” and targeted as an excellent location for a broad range of retailers, restaurants and entertainment related businesses.
Rancho Mirage is home to four world-class, award-winning destination resorts. The Agua Caliente Casino-Resort-Spa, which opened in 2008, the Rancho Las Palmas Resort & Spa, The Westin Mission Hills Resort & Spa, and the Ritz-Carlton Rancho Mirage opened in May 2014 after undergoing a major $500 million renovation.
Rancho Mirage is fortunate to be the home to institutions like Eisenhower Medical Center, The Betty Ford Center and the Barbara Sinatra Children’s Center – all worldrenowned health facilities. The Tolerance Education Center, the Children’s Discovery Museum of the Desert and the Braille Institute deliver programs and services that rival those in any major city.
Rancho Mirage’s lofty position in the medical-healthcare industry will increase as Eisenhower Medical Center completes its $400 million upgrade and expansion effort. Another 325,000 square feet of medical related office development on Bob Hope Drive and Country Club Drive is presently under construction or recently secured project entitlements. Along Highway 111, more new office space is being included with the many mixed-use projects under development. With so many quality restaurants, shops and professional services in the City, Rancho Mirage is also an excellent location for office facilities.
MARKET OVERVIEW
MAJOR BUSINESS AREAS:
Monterey Marketplace Destination, regional shopping center with expansion opportunities.
Highway 111Major arterial through the Coachella Valley with prime retail, restaurant and office development including The River at Rancho Mirage.
Eisenhower Medical CenterLeading health care facility, including the Barbara Sinatra Children’s Center, Luci Curci Cancer Center and the Betty Ford Clinic.
BUSINESSS ENVIRONMENT:
Top 5 Private Employers:
• Eisenhower Medical Center: 2,145 Employees• Agua Caliente Casino Resort Spa: 1,250 Employees• Westin Mission Hills Resort & Villas: 980 Employees• Rancho Las Palmas Resort & Spa: 600 Employees• The Home Depot: 310 Employees
RANCHO MIRAGE HIGHLIGHTS:
• 110 Miles East of Los Angeles • 110 Mils North of San Diego • Located in the center of the thriving Palm Springs/
Coachella Valley• Easily accessed along the Hwy 111 or I-10 • 3.5 million annual tourists
Map For Market Overview - Rancho Mirage OM
Untitled layer
Site Location
The River Mall
Omni Rancho Las PalmasResort & Spa
Rancho Mirage ElementarySchool
Westfield Palm Desert
College of the Desert
Agua Caliente Casino Resort &Spa
Rancho Mirage - EisenhowerMedical Center
R A N C H O M I R A G E
Map For Market Overview - Rancho Mirage OM
Untitled layer
Site Location
The River Mall
Omni Rancho Las PalmasResort & Spa
Rancho Mirage ElementarySchool
Westfield Palm Desert
College of the Desert
Agua Caliente Casino Resort &Spa
Rancho Mirage - EisenhowerMedical Center
3
2
4
6
7
RANCHOMIRAGE
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1. Omni Rancho Las Palms Resort & Spa±600 employees±0.5 miles
2. Agua Caliente Casino Resort & Spa±1,250 employees ±5.6 miles
3. Eisenhower Medical Center± 476 beds±2,145 employees ±2.0 miles
4. College of the Desert±10,200 students ±2.7 miles
5. The River Mall±22 shops±0.1 miles
6. Rancho Mirage Elementary School Grades K-5±0.9 miles
7. Westfield Palm Desert±120+ shops±2.0 miles
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FRANK SINATRA DR
MOR
NING
SIDE
DR
BOB
HOPE
DR
MON
TERE
Y AV
E
PORT
OLA
AVE
COOK
ST
COUNTRY CLUB DR
SAN REMO ST
FRED WARING DR
CALIFORNIA
111
CALIFORNIA
111CALI
FORNIA
74
N
Porcupine Creek Golf Club
City of PalmDesert CivicCenter Park
Chaparral Country Club
Monterey Country Club
Sunrise Country Club
Thunderbird Country Club
The Club at Morningside The Springs
Country Club
The S at Rancho Mirage
Rancho Mirage Country Club
Suncrest Golf Course
Palm Desert Greens Golf Course
Desert Willow Golf Resort Desert Falls
Fitness & Tennis
The Lakes Country Club On-site Sales Office
Desert Horizons Country Club
The First Tee of the Coachella Valley
ShadowMountain Golf Club
Cahuilla Hills
Avondale Golf Club
Portola Country Club
Whitewater River
SITE
THE RIVER MALL
WARING PLAZA
FLEMING'SPRIME STEAKHOUSE
WESTFIELD PALMDESERT
PALM DESERTHIGH SCHOOL
OMNI RANCHO LASPALMAS RESORT & SPA
IMMEDIATE TRADE AREA MAP
R A N C H O M I R A G E
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AREA DEMOGRAPHICS
0-1 MILE 0-3 MILES 0-5 MILES
2022 Population* 3,493 38,703 80,8182017 Population 3,280 36,712 76,1192010 Population 2,971 35,319 70,1722017-2022 Growth* 6.49% 5.42% 6.17%2010-2017 Growth 10.40% 3.94% 8.47%
*Projected
POPULATION
0-1 MILE 0-3 MILES 0-5 MILES
2022 Population* 1,753 18,255 38,1832017 Population 1,654 17,409 36,1442010 Population 1,535 17,230 34,2502017-2022 Growth* 5.99% 4.86% 5.64%2010-2017 Growth 7.75% 1.04% 5.5%
*Projected
HOUSEHOLDS
0-1 MILE 0-3 MILES 0-5 MILES
Average Household Income $92,804 $83,480 $93,836Total Businesses 561 3,558 6,369Datytime Employees 5,927 32,710 62,532
2017
CONTACT US
AMAR GOLIVice President+1 818 907 [email protected]. 01883944
JOE BELLAVIAAssociate+1 310 867 [email protected]. 01441106
JACK FRIDAssociate+1 310 550 [email protected]. 01963234
MILES WATERSAssociate+1 818 907 [email protected]. 02047288
Capital Markets | Investment Properties
