Post on 24-Jun-2020
Offering Memorandum
16177 Beaver RoadAdelanto, CA 92301
Rosano Partners // Offering Memorandum 216177 Beaver Road, Adelanto, CA 92301
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: kellis@rosanopartners.com
George CornelsonCultivation Specialist
E: gcornelson@rosanopartners.com
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
16177 Beaver RoadAdelanto, CA 92301
Property Overview
Rosano Partners // Offering Memorandum 416177 Beaver Road, Adelanto, CA 92301
• Zoned For Cultivation!• Manageable Sized Facility• Well-Maintained Property• Newer Construction • Security Fence• Paved with 10” Thick Asphalt• Flood Lights In Place
Property Overview / Financial Summary
Property Overview / Investment Highlights
Property Overview / Property Descriptions
Rosano Partners is proud to present a unique opportunity to acquire 3,850 SF building on 2.42 acres in Adelanto’s new Cultivation Zone. The property is fully paved with 10” thick asphalt. It is enclosed by a security fence, has floodlights, and an electrical capacity of 400 Amps at 120/208 Volts allowing for flexible lighting options. This property provides a specialized secure space to grow and can accommodate facility expansion.
Property Overview
CAP RATE
10.51%
GROSS BUILDING SF
3,850 SFLOT SF
2.42 ACRESELECTRICAL CAPACITY
400 AMPS at 208V
PRICE
$1,825,000
PRICE / SF
$474.03
LAND PRICE/SF
$17.31
YEAR BUILT
1992
Rosano Partners // Offering Memorandum 516177 Beaver Road, Adelanto, CA 92301
Property Photos/ Interior
Rosano Partners // Offering Memorandum 616177 Beaver Road, Adelanto, CA 92301
Property Floor Plan
Rosano Partners // Offering Memorandum 716177 Beaver Road, Adelanto, CA 92301
Property Elevations
Rosano Partners // Offering Memorandum 8
16177 Beaver RoadAdelanto, CA 92301
Location Overview
Rosano Partners // Offering Memorandum 916177 Beaver Road, Adelanto, CA 92301
Location Overview / Map
The property is located in the Adelanto Cultivation Zone. The municipality of Adelanto has passed a cultivation ordinance, which has been in effect since May 25th 2016. It allows for indoor cultivation of Medical Marijuana. This is one of the few municipalities where you can currently grow medical marijuana legally. This is a rare and valuable opportunity to own a legal cultivation facility. Adelanto is in the county of San Bernardino and 9 miles North West of Victorville off of the Interstate 15.
Location Overview / Location Descriptions
Rosano Partners // Offering Memorandum 1016177 Beaver Road, Adelanto, CA 92301
Location Overview / Map
S
Rosano Partners // Offering Memorandum 1116177 Beaver Road, Adelanto, CA 92301
Location Overview / Aerial Map
S
BE
AV
ER
RO
AD
HOLLY ROAD
Rosano Partners // Offering Memorandum 12
16177 Beaver RoadAdelanto, CA 92301
Sales Comparables
Rosano Partners // Offering Memorandum 1316177 Beaver Road, Adelanto, CA 92301
Sales Comparables / Overview
Price / LotS. No. Address Sale Price Price per RBA
S 16177 Beaver Rd. $1,825,000 $474.03
1 16585 Beaver Rd. $2,000,000 $120.12
2 9517 Cassia Rd. $2,700,000 $150.00
3 17178 Racoon Ave. $5,000,000 $416.67
4 10101 Yucca Rd $1,450,000 $241.67$474.03 $120.12 $150.00 $416.67
S
1 2
3
$232.12
A
$241.67
4
34
21
S
Rosano Partners // Offering Memorandum 1416177 Beaver Road, Adelanto, CA 92301
Sales Comparables / 01 16585 Beaver Rd., Adelanto, CA 92301
Sale Date 05/04/2016
Sale Price $2,000,000
Building SF 16,650 SF
Lot Acres 5.41 Acres
Building Price PSF
$120.12
Building Type Class B Industrial
Year Built 1995
Rosano Partners // Offering Memorandum 1516177 Beaver Road, Adelanto, CA 92301
Sales Comparables / 02 9517 Cassia Rd., Adelanto, CA 92301
Sale Date 05/27/2016
Sale Price $2,700,000
Building SF 18,000 SF
Lot Acres 4.83 Acres
Building Price PSF
$150
Building Type Class B Industrial
Year Built 1994
Rosano Partners // Offering Memorandum 1616177 Beaver Road, Adelanto, CA 92301
Sales Comparables / 03 17178 Racoon Ave., Adelanto, CA 92301
Sale Date 06/24/2016
Sale Price $5,000,000
Building SF 12,000 SF
Lot Acres 4.8 Acres
Building Price PSF
$416.67
Building Type Class B Service Buidling
Year Built 2006
Rosano Partners // Offering Memorandum 1716177 Beaver Road, Adelanto, CA 92301
Sales Comparables / 04 10101 Yucca Rd., Adelanto, CA 92301
Sale Date 02/04/2016
Sale Price $1,450,000
Building SF 6,000 SF
Lot Acres 4.69 Acres
Building Price PSF
$241.67
Building Type Class C Warehouse
Year Built 1992
Rosano Partners // Offering Memorandum 18
16177 Beaver RoadAdelanto, CA 92301
Financial Analysis
Rosano Partners // Offering Memorandum 1916177 Beaver Road, Adelanto, CA 92301
Financial Analysis / Setup
Offering Price: $1,825,000 Current Pro FormaDown Payment: 60% $1,095,000 Scheduled Gross Income: $196,350 $254,100
Vacant Space at Market Rent: $0 $0Current Cap: 10.51% Expense Reimbursements: $26,900 $26,900Pro Forma Cap: 13.62% Other income / Percentage Rent: $0 $0
Price / Bldg sq/ft: $474.03 Gross Potential Income: $223,250 $281,000
$17.31 Vacancy Allowance: ($4,465) 2.0% ($5,620) 2.0%Effective Gross Income: $218,785 $275,380Less Expenses: ($26,900) ($26,900)
Net Operating Income: $191,885 87.7% $248,480 90.2% *Less Loan Payments: ($64,278) ($64,278)
Cash Flow/CoC Return: $127,607 11.65% $184,202 16.82% **
First Yr Principal Reduction: $6,098 $6,098
Total Return Before Taxes: $133,705 12.21% $190,300 17.38% **
Leasable Area (sq/ft): 3,850 NOTES: * As a percent of Effective Gross Income. ** As a percent of Down Payment.105,415
1992
Bank 5,455 SF Pet Hosp 2,200 SF Current Pro FormaTaxes 1.20% $21,900 $21,900
Loan Amount: $730,000 Insurance 1.30$ $5,000 $5,000Terms (Years): 30 Utilities -$ $0 $0Interest Rate: 8.00% Landscaping -$ $0 $0Monthly Payment: ($5,356) Maintenance/Repairs -$ $0 $0Yearly Payment: ($64,278) Garbage -$ $0 $0Financial Summary: Off-Site Management -$ $0 $0
Total Expenses $26,900 $26,900Monthly/SF $0.58 $0.58
Financial Analysis16177 Beaver Rd
Adelanto, CA 92301
Annualized Operating Data
Annualized Expenses
Price / Land sq/ft:
Deal Notes
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.
Property Amperage 400 amps
Pricing Summary
Please Contact Rosano Partners for more information at 213.802.0300
Property Description
Lot Size (sq/ft):Year Built:
Financing
Rosano Partners // Offering Memorandum 2016177 Beaver Road, Adelanto, CA 92301
Financial Analysis / Rent Roll
Approx. Lease Lease Current Market MarketRentable % of Commence Expiration Current Rent / Lease Proforma Rent /
Suite Tenants Sq. Ft. Prop (Mo/Yr) (Mo/Yr) Rent SqFt Type Rent* SqFtA Cultivation Facility 3,850 100% TBD TBD $16,363 $4.25 NNN $21,175 $5.50
TOTALS: 3,850 100% $16,363 $0 $21,175
Vacant 0.0% $16,363 $21,175
Occupied 100.0% $196,350 $254,100
Current Dollar Vacancy: $0
% Vacancy from Total Rent: 0.0%
RENT ROLL16177 Beaver Rd
Adelanto, CA 92301
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 21
16177 Beaver RoadAdelanto, CA 92301
Demographics
Rosano Partners // Offering Memorandum 2216177 Beaver Road, Adelanto, CA 92301
Demographics / Market Comparison Report
-‐3.09%
2.13%
3.93%3.64%
-‐4.00%
-‐3.00%
-‐2.00%
-‐1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
2010 -‐ 2015 2015 -‐ 2020
Population Growth
1 Mile
County
-‐5.56%
0.00%
4.01% 3.68%
-‐8.00%
-‐6.00%
-‐4.00%
-‐2.00%
0.00%
2.00%
4.00%
6.00%
2010 -‐ 2015 2015 -‐ 2020
Household Growth
1 Mile
County
Rosano Partners // Offering Memorandum 2316177 Beaver Road, Adelanto, CA 92301
Demographics / Market Comparison Report
$25,833
$54,043
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
1 Mile County
2015 Med Household Inc
1 Mile
County
31
33
30
30.5
31
31.5
32
32.5
33
33.5
1 Mile County
2015 Med Age
1 Mile
County
Rosano Partners // Offering Memorandum 2416177 Beaver Road, Adelanto, CA 92301
Demographics / Market Comparison Report
47.06%
41.18%
5.88% 6.00%
0.00% 0.00% 0.00% 0.00%
22.61% 24.18%
18.43%
13.00%9.00%
5.00% 4.55% 3.60%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
<$25K $25K -‐ $50K $50K -‐ $75K $75K -‐ $100K $100K -‐ $125K $125K -‐ $150K $150K -‐ $200K $200K +
2015 Households by Household Income
1 Mile
County
74.47%
17.02%
2.13% 2.13% 1.06% 3.19%
77.50%
9.54%2.04%
7.10%0.46% 3.35%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other
2015 Population by Race
1 Mile
County
Rosano Partners // Offering Memorandum 2516177 Beaver Road, Adelanto, CA 92301
Demographics / Market Comparison Report
2014 Employed vs Unemployed
2014 Renter vs Owner
91.49%
8.51%
County
Employed
Unemployed
82.61%
17.39%
1 Mile
Employed
Unemployed
35.29%
64.71%
1 Mile
Rent
Own
37.61%
62.39%
County
Rent
Own
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.
Presented by:Korena EllisSenior AssociateInvestment Sales Group
BRE: 01430539
D: 213.802.0238M: 323.821.9441E: kellis@rosanopartners.com
George CornelsonCultivation Specialist
E: gcornelson@rosanopartners.com
Rosano PartnersLos Angeles Office700 S. Flower St, Suite 2526Los Angeles, CA 90017www.RosanoPartners.com