36640 Perez RoadCathedral City, CA 92234
Offering Memorandum
Rosano Partners // Offering Memorandum 236640 Perez Road, Cathedral City, CA 92234
Table Of Contents
The information contained in the Marketing and Value Presentation is confidential, furnished solely for the purpose of a review by a prospective purchaser of the Property, and is not to be used for any other purpose or made available to any other person without the express written consent of the Seller or Advisor. Prospective purchasers should also conduct their own due diligence, including, but not limited to, engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property or used in the construction of maintenance of the building(s) at the Property.
Presented by:Korena EllisSenior AssociateInvestment Sales Group
BRE: 01430539
D: 213.802.0238M: 323.821.9441E: [email protected]
George CornelsonCultivation Specialist
Rosano PartnersLos Angeles Office700 S. Flower St, Suite 2526Los Angeles, CA 90017www.RosanoPartners.com
Property Overview...................... 3
Location Overview .................... 5
Sales Comparables ................. 9
Financial Analysis .................... 15
Demographics ..........................18
Rosano Partners // Offering Memorandum 3
36640 Perez RoadCathedral City, CA 92234
Property Overview
Rosano Partners // Offering Memorandum 436640 Perez Road, Cathedral City, CA 92234
• Zoned For Medical Marijuana Uses!• Tucked Away Location, Near All! • Room to Expand -- Almost an Acre!• Structure is Insulated!• 19’ Warehouse Ceiling Clearance!• Newer Construction!
Property Overview / Financial Summary
Property Overview / Investment Highlights
Property Overview / Property Description
Rosano Partners is proud to present a value add opportunity for a property located in Cathedral City’s designated zoning for medical marijuana uses. (CUP will be required). This 6,875 SF building is on 40,075 SF of land, which offers the opportunity for building additional square footage. The main warehouse is a massive 4,675 SF with a 19’ ceiling clearance and 8 Roll up doors! Attached is approximately 1,100 SF of office and 1,100 SF of second floor with three rooms and a bathroom and additional storage. The property’s electric capacity is 600 amps at 208 V with room on the panel to add more amperage. This location is very unique in that it is near to all and yet tucked away. There is ample grow space, parking, and power to begin your grow as you build on to this compound. This is a prize location, coupled with considerable potential.
Property Overview
PRO FORMA CAP RATE
9.73%
GROSS BUILDING SF
6,875 SFLOT SF
40,510 SFELECTRICAL CAPACITY
600 AMPS at 208V
PRICE
$3,200,000
PRICE / SF
$465.45
LAND PRICE/SF
$78.99
YEAR BUILT
Unknown
Rosano Partners // Offering Memorandum 5
36640 Perez RoadCathedral City, CA 92234
Location Overview
Rosano Partners // Offering Memorandum 636640 Perez Road, Cathedral City, CA 92234
Location Overview / Map
Cathedral City is in Riverside County, 7 miles Southeast of Palm Springs off the 10 Freeway. It is the second largest City in population in the Coachella Valley, and nicknamed “Cat City” by the locals. Effective in June 2016, the City passed an ordinance to allow Medical Marijuana uses to include cultivation, dispensing, and in some areas, manufacturing. This is an emerging market for MMJ business, and valuable opportunity to bring your medical Marijuana business above board.
Location Overview / Location Descriptions
S
Rosano Partners // Offering Memorandum 736640 Perez Road, Cathedral City, CA 92234
Location Overview / Map
S
Rosano Partners // Offering Memorandum 836640 Perez Road, Cathedral City, CA 92234
Location Overview / Aerial Map
S
Rosano Partners // Offering Memorandum 9
36640 Perez RoadCathedral City, CA 92234
Sales Comparables
Rosano Partners // Offering Memorandum 1036640 Perez Road, Cathedral City, CA 92234
Sales Comparables / Overview
Price / LotS. No. Address Sale Price Price per RBA
S 36640 Perez Road $3,200,000 $465.45
1 36450 Bankside Drive $2,050,000 $256.25
2 68351 Perez Road $2,000,000 $100.00
3 68721 Summit Drive $1,450,000 $189.99
4 36655 Sunair Plaza $1,575,000 $176.67$78.99 $98.04 $69.57 $45.31
S1 2 3
$72.06
A
$75.33
4
32
1S4
Rosano Partners // Offering Memorandum 1136640 Perez Road, Cathedral City, CA 92234
Sales Comparables / 01 36450 Bankside Drive, Cathedral City, CA 92234
Sale Date 07/20/2016
Sale Price $2,050,000
Building SF 8,000 SF
Lot Acres 0.48 Acres
Building Price PSF
$256.25
Building Type Industrial
Year Built 1990
Rosano Partners // Offering Memorandum 1236640 Perez Road, Cathedral City, CA 92234
Sales Comparables / 02 68351 Perez Road, Cathedral City, CA 92234
Sale Date 05/18/2016
Sale Price $2,000,000
Building SF 20,000 SF
Lot Acres 0.66 Acres
Building Price PSF
$100.00
Building Type Industrial
Year Built 1990
Rosano Partners // Offering Memorandum 1336640 Perez Road, Cathedral City, CA 92234
Sales Comparables / 03 68721 Summit Drive, Cathedral City, CA 92234
Sale Date 06/13/2016
Sale Price $1,450,000
Building SF 7,632 SF
Lot Acres 0.73 Acres
Building Price PSF
$189.99
Building Type Industrial
Year Built 1965
Rosano Partners // Offering Memorandum 1436640 Perez Road, Cathedral City, CA 92234
Sales Comparables / 04 36655 Sunair Plaza, Cathedral City, CA 92234
Sale Date 06/06/2016
Sale Price $1,575,000
Building SF 8,915 SF
Lot Acres 0.48 Acres
Building Price PSF
$176.67
Building Type Industrial
Year Built Unknown
Rosano Partners // Offering Memorandum 15
36640 Perez RoadCathedral City, CA 92234
Financial Analysis
Rosano Partners // Offering Memorandum 1636640 Perez Road, Cathedral City, CA 92234
Financial Analysis / Setup
Offering Price: $3,200,000 Pro Forma
$115,000 Pro Forma Gross Income: $330,000
(Cost does not include grow equipment)
Expense Reimbursements: NNN $49,600Down Payment: 60% $1,920,000 Other income / Percentage Rent: $0
Pro Forma Cap: 9.73% Gross Potential Income: $379,600
Vacancy Allowance: ($7,592) 2.0%Price / Bldg sq/ft: $465.45 Effective Gross Income: $372,008
$78.99 Less Expenses: ($49,600)
Net Operating Income: $322,408 86.7%
Deal Notes Less Loan Payments: ($134,795)
Cash Flow/CoC Return: $187,613 9.77%
First Yr Principal Reduction: $7,115
Total Return Before Taxes: $194,728 10.14%NOTES: * As a percent of Effective Gross Income. ** As a percent of Down Payment.
Property Description6,875
40,510 PRO FORMAUNKNOWN Taxes 1.30% $41,600
Insurance 1.16$ $8,000Financing Utilities -$ Loan Amount: $1,280,000 Landscaping -$ $0Terms (Years): 30 Maintenance/Repairs -$ $0Interest Rate: 10.00% Garbage -$ $0Monthly Payment: ($11,233) Off-Site Management -$ $0Yearly Payment: ($134,795) Total Expenses $49,600Interest Only $9,166 Monlthy Monthly/SF $0.60
This information has been secured from sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify all information.
Pricing Summary
Financial Analysis36640 Perez Rd
Cathedral City, CA 92234
Annualized Operating Data
Annualized Expenses
Approx Cost to Upfit Space for culitvation~ Included in NOI
Please Contact Rosano Partners for more information at 213.802.0300
Property Power: 600 amps 208V with room to add on to the panel.
Leasable Area (sq/ft):Lot Size (sq/ft):Year Built:
Price / Land sq/ft:
Rosano Partners // Offering Memorandum 1736640 Perez Road, Cathedral City, CA 92234
Financial Analysis / Rent Roll
Approx. Lease LeaseRentable % of Commence Expiration Pro Forma Pro Forma Pro Forma
Suite Tenants Sq. Ft. Prop (Mo/Yr) (Mo/Yr) Rent Rent/SqFt Lease TypeA Cultivation Warehouse 6,875 100% TBD TBD $27,500 $4.00 NNN
MONTHLY TOTALS: 6,875 100% $27,500 $4,133
Vacant 0.0% $27,500 NNN $4,133.33
Occupied 100.0% $330,000 NNN $49,600
Current Dollar Vacancy: $0
% Vacancy from Total Rent: 0.0%
*Pro forma rents based on 60% of stabilized rents achieved for cultivation facilities in Colorado
RENT ROLL36640 Perez Rd
Cathedral City, CA 92234
Total Monthly Rent:
Total Annual Rent:
This information deemed to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risks
Rosano Partners // Offering Memorandum 18
36640 Perez RoadCathedral City, CA 92234
Demographics
Rosano Partners // Offering Memorandum 1936640 Perez Road, Cathedral City, CA 92234
Demographics / Market Comparison Report
15.09%
7.21%
4.27%
3.18%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
2010 - 2015 2015 - 2020
Population Growth
1 Mile
County
12.92%
6.92%
4.25% 3.21%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
2010 - 2015 2015 - 2020
Household Growth
1 Mile
County
Rosano Partners // Offering Memorandum 2036640 Perez Road, Cathedral City, CA 92234
Demographics / Market Comparison Report
$35,247
$57,172
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
1 Mile County
2016 Med Household Inc
1 Mile
County
56.7
36
0
10
20
30
40
50
60
1 Mile County
2016 Med Age
1 Mile
County
Rosano Partners // Offering Memorandum 2136640 Perez Road, Cathedral City, CA 92234
Demographics / Market Comparison Report
36.36%
30.50%
14.31%
10.00%
3.00% 2.00% 2.08% 2.04%
22.86% 21.98%
16.47%
12.00%
8.00%5.00% 6.31% 7.29%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
<$25K $25K - $50K $50K - $75K $75K - $100K $100K - $125K $125K - $150K $150K - $200K $200K +
2016 Households by Household Income
1 Mile
County
91.98%
3.01% 0.89% 1.80% 0.16% 2.16%
71.29%
9.17%1.48%
14.77%
0.38% 2.92%0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other
2016 Population by Race
1 Mile
County
Rosano Partners // Offering Memorandum 2236640 Perez Road, Cathedral City, CA 92234
Demographics / Market Comparison Report
2016 Employed vs Unemployed
2016 Renter vs Owner
93.15%
6.85%
County
Employed
Unemployed
92.68%
7.32%
1 Mile
Employed
Unemployed
66.76%
33.24%
1 Mile
Rent
Own 52.45%
47.55%
County
Rent
Own
36640 Perez RoadCathedral City, CA 92234
Presented by:Korena EllisSenior AssociateInvestment Sales Group
BRE: 01430539
D: 213.802.0238M: 323.821.9441E: [email protected]
George CornelsonSpecialistInvestment Sales Group
D: 213-802-0328M: 704-975-4652E: [email protected]
Rosano PartnersLos Angeles Office700 S. Flower St, Suite 2526Los Angeles, CA 90017www.RosanoPartners.com
The information contained in this presentation is confidential, furnished solely for the purpose of a review by a prospective purchaser of the Property, and is not to be used for any other purpose or made available to any other person without the express written consent of the Seller or Advisor. Prospective purchasers should also conduct their own due diligence, including, but not limited to, engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property or used in the construction of maintenance of the building(s) at the Property.