river place shops

river place shops
Add-Value retail opportunity
lender owned
Property
9624 Allisonville Rd. Indianapolis, IN 46250
[ www.CapitalPacific.com ]
PROperty Summary
add value retail strip center located at a high traffic
intersection in affluent area of Indianapolis.
The property presents an investor with the opportunity to acquire the asset
below replacement cost and significantly improve cash-flow through lease up
and tightened operations.
Listing Team
Contact Info
Dave Lucas
dlucas@capitalpacific.com | (415) 274-7390
CA BRE# 01389761
In conjunction with IN Licensed Broker:
Joe Cirillo, Priority One Realty
josephwcirillo@aol.com | (317) 724-5518
PRICE: $2,500,000
CAP: 6.80%
Proforma cap: 14.09%
Rentable SF. . . . . . . . . . . . . . . 32,115 SF
Price per SF. . . . . . . . . . . . . . . $77.85
land area . . . . . . . . . . . . . . . . 2.24 Acres
Capital Pacific collaborates. Click here to
meet the rest of our San Francisco team.
YEAR BUILT . . . . . . . . . . . . . . . . 2000
Occupancy. . . . . . . . . . . . . . . . 46.5%
Parking Ratio. . . . . . . . . . . . . 2.77/1000
River Place Shops | 2
core characteristics
Significant upside/add-value potential
The property is over 50% vacant, presenting the opportunity for a buyer to achieve a
14%+ cap rate through operational and leasing upside.
High Income Demographics
Within a 3-mile radius, there are approximately 55,500 residents with average household
incomes exceeding $87,000. Within a 5-mile radius there are approximately 159,000
residents with average household incomes of $96,000.
Huge traffic counts promoting visibility
The site is located at the signalized intersection of Allisonville Rd. and E. 96th St., which are
both high-traffic streets. Allisonville road has traffic counts of 26,230 ADT and E. 96th St. has
traffic counts of 33,951 ADT. Combined, there are over 60,000 cars driving by the site daily.
Great Accessibility
The subject property has a dedicated left-hand turn lane to enter the site northbound on
Allisonville Road that was installed in 2013. The subject property also shares access with the
adjacent building.
Excellent Retail Location
River Place Shops is located just a mile off Interstate 465 in a dense retail area. The Castleton Square
Mall is one mile from the location and is the largest and busiest mall in the state of Indiana. The
mall serves the entire northern Indianapolis metro area, which includes the affluent communities
of Carmel, Fishers, and Noblesville.
Excellent visibility & Attractive Building facade
The subject property was built in 2000 with high quality construction materials and a prominent
facade that is highly visible from all directions.
158,724 Residents within a 5-mile radius with average
household incomes of $96,254
River Place Shops | 3
Retail aerial
The subject property is shadow anchored by a Walgreens
69
CENTRE NORTH SHOPS
INDIANAPOLIS
METROPOLITAN
AIRPORT
Al
lis
o
nv
ille
R
oa
d
RIVER PLACE SHOPS
HOOKA HUT, LLC • PANCHO’S TAQUERIA
BAILEY & WOOD MORTGAGE
BALMORAL
GOLF CLUB
26,230 DAILY
INDIANAPOLIS PAVILLIONS
E 96th Street
E 96th Street
33,951 DAILY
SAHM
GOLF COURSE
465
69
CASTLETON CROSSING
CASTLETON SQUARE MALL
Mary
Evelyn Castle
Elementary
E 82
nd S
tree
t
E 82nd Street
CLEARWATER VILLAGE
CLEARWATER SPRINGS
CASTLETON COMMONS
465
69
Lawrence
North
High School
465
INDIANAPOLIS
CITY
CENTER
River Place Shops | 4
photos
River Place Shops | 5
Income & expense
Price:
Fully Leased*
Projected
Sellout
Value**
$2,500,000
$2,879,176
Capitalization Rate:
6.80%
14.09%
7.50%
Price Per Square Foot:
$77.85
$89.65
$168.46
Down Payment
30%
$750,000
$1,129,176
Loan Amount
Total Leased (SF):
70%
46.53%
$1,750,000
14,944
$1,750,000
32,115
Total Vacant (SF):
53.47%
17,171
Total Rentable Area (SF):
32,115
32,115
32,115
INCOME
Scheduled Rent
PSF
$15.87
$237,131
$237,131
$237,131
Estimated Recovery
$1.74
$26,024
$113,505
$113,505
Vacant Space at Market Rent
$8.33
$0
$143,024
$143,024
Increased Recovery on Lease Up
$2.50
EFFECTIVE GROSS INCOME
Market Vacancy Reserve (5%)
$0
$263,155
ADJUSTED GROSS INCOME
$263,155
$42,928
$536,587 $
($26,829)
$42,928
536,587
($26,829)
$509,758
EXPENSES (ESTIMATED)
Real Estate Taxes
PSF
($1.05)
($33,790)
($33,790)
($33,790)
Insurance
($0.14)
($4,500)
($4,500)
($4,500)
Landscaping
($0.10)
($3,200)
($3,200)
($3,200)
Snow Removal
($0.19)
($6,000)
($6,000)
($6,000)
Contract Services
($0.48)
($15,500)
($15,500)
($15,500)
Public Lighting and Electricity
($0.16)
($5,264)
($5,264)
($5,264)
Public Water & Sewer
($0.04)
($1,176)
($1,176)
($1,176)
Trash Removal
($0.08)
($2,634)
($2,634)
($2,634)
Fire Protection
($0.08)
($2,444)
($2,444)
($2,444)
Repairs & Maitennance
($0.25)
($8,029)
($8,029)
($8,029)
Management (4% of EGI)
($0.33)
($10,526)
($21,463)
($21,463)
TOTAL OPERATING EXPENSES
($2.90)
($93,063)
($104,000)
($104,000)
$405,758
$405,758
NET OPERATING INCOME
$170,092
Loan Amount
32,115
-
Current
Fully Leased
$1,750,000
$1,750,000
PROPOSED LOAN SCENARIO:
$5,410,103
Interest Rate
4.65%
4.65%
Amortization
25 Year
25 Year
Term
10 Year
10 Year
Lender Type
CASH FLOW & PROPOSED LOAN TERMS
Current
Debt Service
Monthly Debt Service
Pre-Tax Cash Flow
Debt Coverage Ratio
Cash on Cash
Bank
$118,520
Bank
$118,520
$9,877
$9,877
$51,572
$287,238
1.44
3.42
6.88%
25.44%
Principal Paydown (Year 1)
$37,947
$37,947
Total Return
$89,519
$325,185
Yield
11.94%
28.80%
*Lease Up Costs
Tenant Improvements ($10/sf)
Leasing Commission (25% of Y1)
Construction Costs ($10/sf)
Total Lease Up Costs
Lease Up Costs/SF
$171,710
$35,756
$171,710
$379,176
$22

This information has been secured from sources we believe 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 risk for any inaccuracies.


River Place Shops | 6
Rent roll
Percent of
Lease Start
GLA
Lease
Expiration
Monthly Base
Rent
Monthly
Rent/SF
Annual
Rent/SF
Annual Rent
Total Rent with
scheduled NNNs**
11.83%
2/1/2012
*No Options
31.29%
1/31/2017
$2,533.00
$0.67
$8.00
$30,396.00
$43,892
$5,526.40
$0.55
$6.60
$66,316.80
2,250
7.01%
08/01/11
Increase
01/01/16
*No Options
12/31/16
12/31/16
$4,675.00
$4,767.00
$2.08
$2.17
$24.96
$26.00
$56,100.00
$57,204.00
$62,700
9642
2,386
7.43%
Increase
Increase
5/14/2015
2/14/2016
2/14/2017
5/31/2018
2/14/2016
2/14/2017
$3,977.00
$4,176.00
$4,374.00
$1.67
$1.75
$1.83
$20.04
$21.00
$21.96
$47,720.00
$50,106.00
$52,492.00
$47,720
Kolache Factory
9646
1,830
5.70%
10/16/2002
08/01/16
Option 1
7/31/2016
07/31/21
$3,126.25
$3,278.75
$1.71
$1.79
$20.50
$21.50
$37,515.00
$44,043
Morellis Dry Cleaners*
9650
2,380
7.41%
8/1/2001
*No Options
3/31/2014
$3,450.00
$1.45
$17.39
$41,400.00
$56,232
Panchos
9654
2,300
7.16%
1/1/2015
*No Options
12/31/2017
$2,000.00
$0.87
$10.43
$24,000.00
$30,000
Vacant
9658
1,400
4.36%
$2,100.00
$1.50
$18.00
$25,200.00
Vacant
9662
5,723
17.82%
$4,292.25
$0.75
$9.00
$51,507.00
32,115
14,944
17,171
100.00%
46.53%
53.47%
Trade Name
Suite
Sq. Ft.
Just Teasin' Hair Salon
9624
3,798
Vacant
9626
10,048
Hooka Hut, LLC*
9628
Bailey & Wood Mortgage
Current Totals:
Occupied
Vacant
Monthly Rent
$19,761.25
Annual Rent
$237,131.00
Prof Monthly Rent
$11,918.65
Prof Annual Rent
$143,023.80
*Tenants have significant aging
This information has been secured from sources we believe 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 risk for any inaccuracies.
River Place Shops | 7
site plan
Dedicated left
hand turn access
into center was
built in 2013
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26
E 96th Street
23
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33,951 DAILY
This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies.
River Place Shops | 8
Aerial
Subject Property
River Place
Shops
Y
IL
30
DA
,2
26
33,951 DAILY
River Place Shops | 9
Tenants
Bailey & Wood Financial Group is a hometown lender with strong values. The
company’s foundation is based on having the products of a big company, but
the personal service of a small local company. The mortgage professionals
at Bailey & Wood have undergone extensive training, as well as federal and
state testing, to ensure their clients work with qualified professionals. Bailey
& Wood has been recognized as Five Star Mortgage Professionals by Five Star
Professional every year since 2010. There are four locations across Indiana with
approximately 50 employees.
Cafe Du Meemo is a one-of-a-kind restaurant, hookah lounge, and coffee shop
all in one. Cafe Du Meemo offers indoor and outdoor seating for customers
to relax and enjoy the products they offer. They attract a high volume of
customers by offering a wide range of products. This truly unique business
attracts customers from all over the city.
Just Teasin’ Hair Salon is a top hair salon in Indianapolis. The salon offers a variety
of services including: hair cutting and styling, hair color, extensions, spray tans,
and waxing. The team at Just Teasin’ are all independent contractors who run
their own businesses from the site. They are based on the belief that customer
satisfaction is the most essential element to running a successful business. This
model is the reason why most of their business is from repeat customers and
referrals.
River Place Shops | 10
tenants
Kolache Factory was founded in 1982 in Houston, TX when the founders
saw a need for a fresh, high quality, “to-go“ breakfast. Kolaches originated in
Eastern Europe centuries ago and consumers in Texas had never tasted them
before 1982. Today, Kolache Factory is expanding nationwide and has received
national attention for its concept and product.
Kolache factory has been recognized by the Food Network as one of the
Top 5 Drive-thru’s in America and by Modern Baking Magazine as one of the
top 50 foodservice bakeries in the US. It is a privately owned and operated
company with its headquarters located in Houston, TX. There are 21 companyowned stores and 8 franchise stores. The corporate office owns the location in
Indianapolis.
Morellis Cleaners offers basic and specialized laundry services at affordable
prices. They have a variety of cleaning methods available in order to produce
a quality, professionally cleaned product. They offer cleaning services for basic
garments, blouses, bedding, linens, drapes, furs, leather, uniform, and wedding
dresses. They are currently operating in nine different locations. Morellis
Cleaners have developed eco-friendly cleaning processes and best practices at
all of their locations.
Panchos Taqueria is a family owned and operated business in Indianapolis.
They offer both restaurant services and catering service and currently have two
locations that offer high quality food at affordable prices. One unique aspect
of their business is that they offer a Fajita Bar where customers can build their
own fajitas. They are also keeping up with today’s technology by offering
convenient online ordering for pick-ups.
River Place Shops | 11
regional map
Indianapolis is the largest city in Indiana and second largest in the American midwest
River Place
Shops
26 min
18 miles
Indianapolis
River Place Shops | 12
location
About Indianapolis, IN
With a population of over 900,000, Indianapolis is the capital of Indiana as well as its largest city. It is also the 14th largest city in the U.S.
as well as one of the fastest growing regions.
Indianapolis has a reputation for providing tremendous growth as a business center
and is also an amateur sports capital. A new entrepreneurial attitude has enveloped
Indianapolis, and with it has come great economic vitality. The Hoosier capital
consistently ranks as one of the cleanest and safest cities of the nation, and its cost of
living and unemployment rates remain below the national average.
Indianapolis is the largest city in
INdiana and the 14th largest in the u.s.
Tourism is also a vital part of the economy: the city plays host to numerous conventions
and sporting events. Of these, one of the most well-known is the annual Indianapolis 500 race. Other major sporting events include the
Allstate 400 and the Men’s and Women’s NCAA Basketball Tournaments.
Indianapolis has a diverse economy, relying on trade, transportation, utilities, professional and business services, education, health
services, government, and retail trade. There are three Fortune 500 companies based in Indianapolis: Anthem Inc., Eli Lilly and CO., and
Calumet Specialty Products Partners.
River Place Shops | 13
Demographics
Population
2010
2015
2020
1-Mile
3-Mile
5-Mile
7,526
7,562
7,762
54,065
55,521
58,016
153,707
158,724
166,925
1-Mile
3-Mile
5-Mile
$62,958
$87,577
$96,254
2015 Household incomes
Average
Top Employers in Indianapolis
Employer
# of Employees*
St. Vincent Health
17,398
Indiana University Health
11,810
Eli Lilly and Co.
10,735
Community Health Network 10,402
Indiana University 7,365
City of Indianapolis/Marion City
7,058
FedEx Express
6,000
Rolls-Royce
4,300
Anthem Inc.
4,200
Franciscan St. Francis Health
4,100
*Approximate 2014 Data
River Place Shops | 14
photos
River Place Shops | 15
A unique HUMAN
RESULTS-DRIVEN
client experience
Dave Lucas
The capital pacific experience - our daily commitment to our clients
[ www.CapitalPacific.com ]
dlucas@capitalpacific.com | (415) 274-7390
CA BRE# 01389761
In conjunction with IN Licensed Broker:
Joe Cirillo, Priority One Realty
josephwcirillo@aol.com | (317) 724-5518
Capital Pacific collaborates. Click here to
meet the rest of our San Francisco team.
chris kostanecki
zeb ripple
chris peters
john andreini
joe caccamo
gregg steele
zandy smith
karla zens
jack navarra
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