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THE PLATINUM BUILDING DUBUQUE, IA
OFFERING MEMORANDUM
THE PLATINUM BUILDING DUBUQUE, IA
to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property.
The information contained herein is not a substitute for a thorough due diligence
investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
CONFIDENTIALITY AND DISCLAIMER CONFIDENTIALITYAGREEMENT
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended
THE PLATINUM BUILDING DUBUQUE, IA
.........................................................INVESTMENT OVERVIEW SECTION TWO .....................................................PROPERTY OVERVIEW SECTION THREE .............................................MARKET OVERVIEW SECTION FOUR ............................................RECENT SALES SECTION FIVE ...............................RENT COMPARABLES
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
TABLE OF CONTENTS
SECTION ONE
INVESTMENT OVERVIEW
THE PLATINUM BUILDING DUBUQUE, IA
THE PLATINUM BUILDING DUBUQUE, IA
INVESTMENT HIGHLIGHTS Profitable Insurance Tenant
The Platinum Building is a single-tenant asset leased to a nationally recognized insurance company in Dubuque, Iowa. The tenant, Platinum Services Inc, is a supplemental insurance company
INVESTMENT OVERVIEW
Investment Overview
that specializes in accident, disability, cancer, heart attack, stroke, and Award Winning Building
long-term care.
They are the largest independent long term care
provider in the Midwest, one of the top 10 in the nation, and were recently recognized by Forbes as one of the most dependable insurance companies in the country. They are financially strong, with over $20
Strong Secondary Market
million in sales, and continue to grow staff, customers, and sales each year.
2% Annual Increases
The building was originally built in 1906, but was completely renovated in 2003 as the new headquarters for Platinum Services. It was taken down to its shell and restored in a way that preserved its historical
75% Financing Available
significance but added all the modern amenities. The project has won numerous awards including the Main Street Iowa Association’s award for adaptive reuse and the Iowa Historical Society’s award for
9.01% Cap
Excellence in Historic Preservation. US Secretary of Commerce Gary Locke recently said that Dubuque
12.29% Cash-on-Cash
“represents
the
best
and
brightest
in 21st century
economic
development” which summarizes the market as concisely as possible. Job growth has continued during the recession, real estate fundamentals 17.43% Total Return
are as strong as anywhere in the country, and the city is poised for continued expansion well into the future. This deal offers an investor a stabilized income stream from a fiscally sound tenant and a building, recognized for its excellence, in a market that continues to see strong and consistent economic growth.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
1
THE PLATINUM BUILDING DUBUQUE, IA
EXISTING FINANCING Loan Type
Non-Assumable
PROPOSED FINANCING FIRST TRUST DEED Loan Amount Loan Type Interest Rate Amortization Debt Coverage Ratio
$3,937,500 Proposed New 6.25% 25 Years 1.53
INVESTMENT OVERVIEW
Financing
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
2
THE PLATINUM BUILDING DUBUQUE, IA
FINANCING ASSUMPTIONS
ACQUISITION ASSUMPTIONS Price
$5,250,000
Price
$5,250,000
Acquisition Date
January 1, 2010
Down Payment
$1,312,500 (25%)
Cap rate
9.01%
Principle
$3,937,500 (75%)
Cash-on-Cash
12.29%
Origainal Lease Term / Remaining
8 years /7 years
Interest Rate
6.25%
Debt Service Coverage Ratio (Rent Only)
1.53
Amortization
25 years
Monthly Payment
$25,975
Annual Payment
$311,694
INCOME STATEMENT Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Base Rent * - Reserves ** Net Operating Income
$478,200 $5,243 $472,957
$487,764 $5,243 $482,521
$497,519 $5,243 $493,276
$507,469 $5,243 $502,226
$517,619 $5,243 $512,376
$527,971 $5,243 $522,728
$538,530 $5,243 $533,287
$549,301 $5,243 $544,058
$560,301 $5,243 $555,058
$571,493 $5,243 $566,250
Debt Service
$311,694
$311,694
$311,694
$311,694
$311,694
$311,694
$311,694
$311,694
$311,694
$311,694
Before Tax Cash Flow
$161,263
$170,827
$181,582
$190,532
$200,682
$211,034
$221,593
$232,364
$243,364
$254,556
Principal Reduction
$67,512
$71,854
$76,477
$81,396
$86,631
$92,203
$98,134
$104,447
$111,164
$118,315
Total Return
$228,775
$242,681
$258,059
$271,928
$287,313
$303,237
$319,727
$336,811
$354,528
$372,871
*
INVESTMENT OVERVIEW
Financial Overview
Base Rent increases 2% annually through both the initial term and all option periods.
** Reserves of $0.15 per sf annually.
RETURNS Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Cap Rate
9.01%
9.19%
9.40%
9.57%
9.76%
9.96%
10.16%
10.36%
10.57%
10.79%
10-year Cap Rate Average
9.88%
Cash-on-Cash
12.29%
13.02%
13.83%
14.52%
15.29%
16.08%
16.88%
17.70%
18.54%
19.39%
10-year C-o-C Average
15.75%
Total Return
17.43%
18.49%
19.66%
20.72%
21.89%
23.10%
24.36%
25.66%
27.02%
28.41%
10-year Total Return Average
22.67%
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
3
THE PLATINUM BUILDING DUBUQUE, IA
Tenant
Platinum Services Inc
Guarantor
Platinum Services Inc
Corporate Guarantee
Yes
Lease Term
8 years
Lease Commencement
2/1/2009
Lease Expiration
1/31/2017
Initial Rent
$478,200 (Annual)
Escalations
2% Annually
Renewal Options
(2) 5 year options
Renewal Notice
90 days
Lease Type
NNN
INVESTMENT OVERVIEW
Lease Abstract
Maintenance & Repairs - Cleaning & Maintenance
Tenant
- Taxes
Tenant
- Insurance
Tenant
- Parking Lot Maintenance
Tenant
- Parking Lot Repair
Owner
- Roof & Structure
Owner
- HVAC Maintenance
Tenant
- HVAC Replacement
Owner
Early Termination
None
Purchase Option
None
First Right of Refusal
Yes
Assignment & Subletting
Only with Landlord consent
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
4
THE PLATINUM BUILDING DUBUQUE, IA
Company Name
Platinum Services Inc
Ownership
Private
Founder
Wayne Briggs
Years in business
15 years
company, headquartered in Dubuque, IA, that
Headquarters
Dubuque, IA
specializes in accident and disability, cancer, heart
Website
www.Pltnm.com
No. of Locations
45
Founded in 1995 by Wayne Briggs the company
No. of Employees
180+
was established to help rural midwesterners cover
Customers
50,000+
Annual Revenues
$20 million +
Better Business Rating
A+
Products
Supplemental Insurance: Accident & Disability Cancer
COMPANY OVERVIEW
Platinum Services Inc is a supplemental insurance
attack, stroke, and long-term care.
INVESTMENT OVERVIEW
Tenant Overview
the cost of long term care for aging parents. The company's
products
are
underwritten
by
Guarentee Trust Life Insurance Company of Glenview, IL.
Guarentee Trust has been in
business since 1936 and has over $190 million in assets.
Heart Attack Stroke Long-term Care
Platinum has grown to become the largest independent long term care provider in the Midwest, and one of the top 10 in the nation. They were recently honored by Goldline Research and
States
Colorado
Forbes as one of the top ten most dependable
Iowa
insurance professionals in the United States. This
Illinois Indiana Kansas Minnesota
award is given to companies that have no unresolved lawsuits or grievances, excellent client references, and high client retention rates. This is
Missouri Nebraska New Mexico Oklahoma
the second consective year Platinum Services has received this honor. Platinum continues to see strong and steady year-
South Dakota Texas Wisconsin Wyoming
over-year growth in both customers and sales. In addition, the company's staffing levels have grown 15% this year alone. With plans to continue expanding both their product offerings and geographical foot print, the long term prospects of
Insurance Underwriter
the company are promising.
Guarantee Trust Life Insurance Company
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
5
THE PLATINUM BUILDING DUBUQUE, IA
INVESTMENT OVERVIEW
Goldline Award 2009
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
6
THE PLATINUM BUILDING DUBUQUE, IA
INVESTMENT OVERVIEW
Goldline Award 2008
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
7
THE PLATINUM BUILDING DUBUQUE, IA
LOCATION Tenant Trade Name
Platinum Services Inc.
ANNUALIZED OPERATING DATA Ownership
Private
Tenant
Private Company 137 Main Dubuque, Base $478,200 Lease GuarantorPrice Guarantee $5,250,000 BaseCorporate IA 52001 Year 2.00% Thereafter 2.00% Down 25% Capital $478,200 $5,243 Rent Rentable 34,950 Net Net $472,957 Rent Debt 311,694 1 Price/SF $150.21 Debt 1.53 Payment $1,312,500 Net 12.29% Operating Lease Type Triple Net (NNN) 67,512 Reserves CAP Rate 9.11% Principal ($13.68/SF) Square Total 17.43% Cash Growth Service Year 1906/2004 Coverage $161,263 Income Lot Size 0.17 Cash Reduction Feet Return $228,775 Flow Rate Type Fee Built of RoofTRUST and Structure Landlord Responsible TENANT Flow FIRST DEED (acres) Ratio Before /Total After SUMMARY Loan Amount $3,937,500 Debt Renovation Lease Term 8 years Debt Service Proposed New Loan Type Service Loan information is time sensitive and subject to change. Lease Commencement Date 2/1/2009 Interest Rate 6.25% Contact your local Marcus & Millichap Capital Corporation representative. Rent Commencement Date Amortization
2/1/2009 25 Years
Lease Expiration Date FINANCING
1/31/2017
Term Remaining on Lease Increases Options
INVESTMENT OVERVIEW
Forbes Article
7 years 2% Annually (2) 5 year options
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
8
PROPERTY OVERVIEW
THE PLATINUM BUILDING DUBUQUE, IA
THE PLATINUM BUILDING DUBUQUE, IA
THE OFFERING Property
Property Address
The Platinum Building 137 Main Street Dubuque, IA 52001
Assessor's Parcel Number
1025281013
Zoning
Commercial
SITE DESCRIPTION
Number of Stories
5
Year Built/Total
1906 / 2004
Rentable Square Feet
34,950
Lot Size
0.17 (acres)
Type of Ownership
Fee Simple
Parking *
PROPERTY DESCRIPTION OVERVIEW
Property Summary
22
Landscaping Topography
None Flat
CONSTRUCTION
Foundation
Concrete
Exterior
Brick
Parking Surface Roof
Concrete Flat - Rubber Membrane
MECHANICAL
HVAC
Forced Air
Fire Protection
Sprinklers
INTERIOR DETAIL Walls
Brick & Drywall
Floor Coverings
Tile & Carpet
* Most downtown Dubuque buildings have no on-site parking, so tenants use street parking and the numerous city ramps. Platinum Services utilizes the 22 space parking lot tied to this building, leases a lot behind the building, and uses street parking for the few additional spots they need.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
10
THE PLATINUM BUILDING DUBUQUE, IA
PROPERTY OVERVIEW
Property Photos
Platinum Sign: The Platinum Building is one of the tallest in the area so the sign on the East side of the building can be seen from far away.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
11
THE PLATINUM BUILDING DUBUQUE, IA
Entrance: The building's main entrance is on Main Street, the hub of downtown Dubuque activity.
PROPERTY OVERVIEW
Property Photos
Building Lobby: In addition to welcoming visitors, the lobby corridor also pays homage to those companies that once occupied the building.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
12
THE PLATINUM BUILDING DUBUQUE, IA
Building Pillars: During the renovation of the Platinum Building the owners, architects, consultants, and construction companies all decided that the pillars should be the "heroes" of the building.
PROPERTY OVERVIEW
Property Photos
Before & After: The Pillars before and after the renovation.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
13
THE PLATINUM BUILDING DUBUQUE, IA
Platinum Services Lobby: The main lobby of Platinum Services is on the 4th floor and opens up through the fifth floor to the impressive skylight.
PROPERTY OVERVIEW
Property Photos
5th Floor: From the fifth floor of the Platinum Building you can look up through the skylight, down to the office lobby, or out upon the Port of Dubuque.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
14
THE PLATINUM BUILDING DUBUQUE, IA
PROPERTY OVERVIEW
Property Photos
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
15
THE PLATINUM BUILDING DUBUQUE, IA
Lobby Area
PROPERTY OVERVIEW
Property Photos
Cubicle Area
Kitchen Area
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
16
THE PLATINUM BUILDING DUBUQUE, IA
Typical Office: Many of the Platinum Building's offices have both finished and unfinished walls to highlight the original character of the building.
PROPERTY OVERVIEW
Property Photos
Cubicle Area
New Space: Platinum Services recently took over new space on the second floor to handle their rapid expansion.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
17
THE PLATINUM BUILDING DUBUQUE, IA
Rooftop Deck: In addition to the luxurious interior the building also has an expansive rooftop deck for tenants to enjoy.
PROPERTY OVERVIEW
Property Photos
Great Views: From both inside the building and up on the rooftop deck tenants have a great view of the Dubuque area.
Port of Dubuque
Bridge from Illinois to Iowa
Recently Renovated Julien Inn
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
18
THE PLATINUM BUILDING DUBUQUE, IA
PROPERTY OVERVIEW
Area Maps
AERIAL MAP
AREA MAP 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
19
MARKET OVERVIEW
THE PLATINUM BUILDING DUBUQUE, IA
THE PLATINUM BUILDING DUBUQUE, IA
MARKET DRIVERS
+
Five New 4 Lane Highways since 1999 Prior to 1999, Dubuque wasn’t connected with any of the major regional cities by highway. The construction of these roads has driven a vast majority of the market’s growth.
Low Cost of Doing Business The city of Dubuque was founded in 1788 by French Canadian fur trader and early entrepreneur Julien Dubuque. Since the early 1800s the area has prospered as a vibrant river community with strong ties to the shipping, industrial, and manufacturing industries. Like many other Midwest industrial cities, Dubuque suffered a significant economic downturn in the 1970s and 80s. By 1983 the city was in a state of disrepair with a blighted downtown area, bleak riverfront, aging infrastructure, and unemployment nearing 25%. Roughly 15 years ago the citizens of Dubuque decided to embark on an aggresive plan to recreate itself as a center for personal and commercial prosperity.
Dubuque’s low housing and commercial real estate costs, low taxes, and college educated workforce have made it the ideal location for financial service firms, call-centers, and back-office operations.
MARKET OVERVIEW
Market Summary
Greater Dubuque Development Council The assistance the government and the non-profit Greater Dubuque Development Council provide to the local business community is virtually unmatched by any other midwest location. Whether it be the successful recruitment of outside businesses, catering to the needs of local operations, or helping to obtain city, state, and federal funds for new projects, it’s clear that this city is executing a well orchestrated plan of active and managed growth.
Today the area is experiencing a period of unprecedented revitalization and growth: • The new highways and infrastructure have put Dubuque on the map and made it a viable location for regional, national, and international firms. • The low cost of doing business and educated community have led to the creation of thousands of jobs and helped to lower the unemployment rate to below 6%. • Tourist attractions such as the two new casinos, Missippi River Museum, indoor water park, and regional conference center are attracting tens of thousands of visitors to the area each year. • The city's proactive nature has led to many successful projects including: the Port of Dubuque, the Technology Office Park, the Warehouse District, and Industrial Park West. These are but a few examples of how the area has succeeded in recreating itself. The commercial real estate fundamentals of this market are very strong and every indicator points towards continued stable growth in both the near and long term future.
QUICK FACTS
+
Dubuque accounted for 17% of Iowa's job growth in 2007, but only accounts for 3% of Iowa's total population Since 1985 there has been $161,000,000 in new construction in downtown Dubuque, 88% has happened since 2000. Dubuque is averaging over 1,000,000 sf of nonresidential construction annually over the last eight years. Vacancy Rates: Multifamily = 4%
Retail = 6%
Office = 3%
Dubuque's property tax rate is the lowest among the 10 largest cities in Iowa. There are four local colleges including Loras College, University of Dubuque, Clarke College, and the Northeast Iowa Community College. Assessed values in downtown Dubuque are 78% higher today than they were in 2000.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
21
THE PLATINUM BUILDING DUBUQUE, IA
With developments ranging from build-to-suits and downtown revitalization projects to new infrastructure, conference centers, and casinos its clear that Dubuque is handling its unprecedented growth in a way that ensures a smooth transition from Midwest industrial town to a regional hub for jobs, retail, transportation, and tourism. Some of the areas recent projects include:
Grand River Conference Center • $39 million dollar development • City-owned conference center • 174,000 sq ft •
MARKET OVERVIEW
Recent Developments
1,000+ seat Outdoor Ampitheather
Grand Harbor Resort & Waterpark • $30 million dollar development • Connected to Grand River Conference Center • 200+ rooms •
25,000 sq ft Indoor Water Park
Dubuque Technology Park • City acquired land and provided infrastructure • City, state, & federal TIF & Grant money available. • All Build-to-suit •
10+ Companies already relocated
McGraw-Hill Companies • $32 million dollar development • 140,000 sq ft, 4-story office complex • College Textbook Headquarters •
400+ Employees
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
22
THE PLATINUM BUILDING DUBUQUE, IA
Dubuque is consistently ranked very highly, by some of this country’s premier authorities, among the measures that lead to economic growth and prosperity. Compliments like "The city of Dubuque represents the best and brightest in 21st century economic development", as US Commerce Secretary Gary Locke was recently quoted saying, are not uncommon descriptions of the market. Below is a sample of some of the recognition the city has received:
"2009 Excellence in Economic Development Award" US Department of Commerce - 2009
MARKET OVERVIEW
Rankings & Awards
"Best Small Places for Business & Careers" (Ranked 18th in nation) Forbes Magazine - March 2008
"Most Livable Small City in the United States" The United States Conference of Mayors - 2008
"Top 25 Boomtowns" (Ranked 22th among 393 largest metro areas) Inc. Magazine - 2007
"Job Growth" (Ranked #22 out of 387. Only midwest city in the top 25) Moody's | Economy.com - 2007
"Cost of Doing Business" (Dubuque ranked 13th out of 168 metros) Forbes Magazine - 2006
"5-Star Public School Metros" (Dubuque was #7 of 2,200 school districts) Expansion Management - 2006
"High Tech Output Growth" (Dubuque ranked 1st for 1998-2003) Miliken Institute - 2004
"International Outstanding City Manager of the Year - Mike Van Milligen" International City Management Association - 2003
"Third Most Beautiful Place in America" (Upper Missippi River) USA Weekend - May 2003
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
23
THE PLATINUM BUILDING DUBUQUE, IA
MARKET OVERVIEW
Dubuque Area Map
Item
Highlighted
Located within
1
Port of Dubuque
Conference center, Casino, McGraw-Hill, Grand Harbor Hotel, etc. . .
2
Downtown area
Government, Julien Hotel, Warehouse district, Prudential, etc . . .
3
Main retail corridor
Regional mall, movie theater, restaurants, big box, etc . . .
4
Technology Park
McLeaod USA, CarteGraph, McKesson, Entegee, etc . . .
5
Regional Airport
Recent $25 million expansion, 6 daily non-stop flights, private traffic, etc. . .
6
Illinois
Bridge crosses into Illinois. Tourist town of Galena within 15 miles
7
Wisconsin
Routes 151 & 61 cross the Missippi river into Wisconsin
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
24
RECENT SALES
THE PLATINUM BUILDING DUBUQUE, IA
THE PLATINUM BUILDING DUBUQUE, IA
Very few office properties have traded in the Dubuque market in recent years. The area's consistent economic growth has led to solid fundamentals including low vacancy rates (currently ~3%), rising rental rates (up ~4% this year), and a backlog of tenants looking for space. The market did not see any significant cap rate compression in the most recent national boom. Higher values have, and continue to, be tied to increasing NOIs. Cap rates consistently fall in the 8-10% range based on the quality of both the asset and the tenant base. Price/sf averages are hard to find due to the low transaction velocity, but can generally be tied to the replacement cost and quality of the asset.
RECENT SALES
CAP Rate & Price/SF
AVERAGE CAP RATE 10.00
Avg 8.79%
9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Subject
Durrant Headquarters
Tech Park
Eagle Point
AVERAGE PRICE/SF 400.00 360.00 320.00 280.00 240.00
Avg $204.81
200.00 160.00 120.00 80.00 40.00 0.00 Subject
Durrant Headquarters
Tech Park
Eagle Point
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
26
THE PLATINUM BUILDING DUBUQUE, IA
THE PLATINUM BUILDING 137 Main Street Dubuque, IA 52001 Rentable Square Feet:
34,950
Sales Price:
$5,250,000
Year Built/Total
1906/2004
Down Payment:
$1,312,500
CAP Rate:
9.11%
Price/SF:
$150.21
SUBJECT PROPERTY
RECENT SALES
Recent Sales
DURRANT HEADQUARTERS 400 Ice Harbor Drive Dubuque, IA 52001
1
Close of Escrow:
5/2009
Sales Price:
$7,200,000
Rentable SF:
18,000
Down Payment:
25%
Year Built:
2007
CAP Rate:
8.56%
Price/SF:
$400.00
COMMENTS The Durrant Headquarters was built-to-suit for a local architecture firm in 2007. The building is the first Platinum LEED Certified asset in the state of Iowa. The additional investment needed to obtain that certification is what led to the high price/sf.
TECH PARK 301 Data Court Dubuque, IA 52003
2
Close of Escrow:
On Market
Sales Price:
$7,750,000
Rentable SF:
54,190
Down Payment:
25%
Year Built:
1999
CAP Rate:
9.00%
Price/SF:
$143.00
COMMENTS The Teck Park building is a call center for a local telecom company and would be considered solid b space in the market. The asset is located in the Dubuque Research Park about 15 minutes from town.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
27
THE PLATINUM BUILDING DUBUQUE, IA
EAGLE POINT 4131 Westmark Drive Dubuque, IA 52001
3
Close of Escrow:
8/2008
Sales Price:
$5,500,000
Rentable SF:
77,000
Down Payment:
825,000%
Year Built:
1992
CAP Rate:
8.80%
Price/SF:
$71.42
RECENT SALES
Recent Sales
COMMENTS The Eagle Point building would be considered low class b or high class c in the Dubuque market. Its typical use is as a call center. The price per sf was dragged down to $71 because one third (1/3) of the 77,000 sf is in the basement and used for storage.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
28
RENT COMPARABLES
THE PLATINUM BUILDING DUBUQUE, IA
THE PLATINUM BUILDING DUBUQUE, IA
33.00 30.00 27.00 24.00
Avg $20.00
21.00 18.00 15.00 12.00 9.00
RENT COMPARABLES
Average Rent/SF
6.00 3.00 0.00 Subject
Dubuque Building
Star Brewery
Eagle Point
Durrant Headquarters
COMMENTS Class A office space in Dubuqe is typically owner occupied, single-tenant space. With an office market vacancy rate of just 3%, and a waiting list of companies looking for space, rents are forecasted to rise across all classes.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
30
THE PLATINUM BUILDING DUBUQUE, IA
THE PLATINUM BUILDING 137 Main Street Dubuque, IA 52001
Date Surveyed: Year Built/Total Rentable Square Feet:
9/2009 1906/2004 34,950
Rent/SF: Lease Type:
$13.68 Triple Net (NNN)
SUBJECT PROPERTY COMMENTS The Platinum Building is among the nicest office space in the Dubuque market. The property could easily be converted to multitenant space if the need ever arises.
RENT COMPARABLES
Rent Comparables
DUBUQUE BUILDING 700 Locust Dubuque, IA 52001
1
Date Surveyed: Year Built/Renovated:
9/2009 1929/2008
Rentable Square Feet: Rent/SF: Lease Type:
20,963 $16.00 Triple Net (NNN)
COMMENTS The Dubuque Building is a few blocks from the subject and has been recently renovated for IBM who will be taking floors 3-9. Location: Comparable - Quality: Slightly Inferior
STAR BREWERY 600 Star Brewery Drive Dubuque, IA 52001
2
Date Surveyed: Year Built/Renovated: Rentable Square Feet: Rent/SF: Lease Type:
9/2009 1898/2007 5,780 $18.00 Triple Net (NNN)
COMMENTS The Star Brewery was renovated in 2007 and now houses both retail and office operations. The quoted lease rates are for the office portion of the building. This building is in a comparable location and of comparable quality to the subject. Location: Comparable - Quality: Comparable
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
31
THE PLATINUM BUILDING DUBUQUE, IA
EAGLE POINT 4131 Westmark Drive Dubuque, IA 52001
3
Date Surveyed:
9/2009
Year Built: Rentable Square Feet: Rent/SF: Lease Type:
1992 77,000 $13.00 Triple Net (NNN)
COMMENTS The Eagle Point Software Building is class b/c space typically occupied by telemarketing firms. Location: Comparable - Quality: Inferior
RENT COMPARABLES
Rent Comparables
DURRANT HEADQUARTERS 400 Ice Harbor Drive Dubuque, IA 52001
4
Date Surveyed: Year Built: Rentable Square Feet: Rent/SF: Lease Type:
9/2009 2007 18,000 $33.00 Absolute Net
COMMENTS 400 Ice Harbor Drive is the headquarters for the Durrant Group,a prominent local architecture firm. It was built for the company in 2007 and is the first Platinum LEED Certified building in the state of Iowa, which explains the high rental rate. Location: Comparable - Quality: Comparable
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
32
THE PLATINUM BUILDING DUBUQUE, IA
OFFERING MEMORANDUM
Offices Nationwide www.MarcusMillichap.com
OFFERING MEMORANDUM
THE PLATINUM BUILDING DUBUQUE, IA
to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property.
The information contained herein is not a substitute for a thorough due diligence
investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
CONFIDENTIALITY AND DISCLAIMER CONFIDENTIALITYAGREEMENT
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended
THE PLATINUM BUILDING DUBUQUE, IA
.........................................................INVESTMENT OVERVIEW SECTION TWO .....................................................PROPERTY OVERVIEW SECTION THREE .............................................MARKET OVERVIEW SECTION FOUR ............................................RECENT SALES SECTION FIVE ...............................RENT COMPARABLES
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
TABLE OF CONTENTS
SECTION ONE
INVESTMENT OVERVIEW
THE PLATINUM BUILDING DUBUQUE, IA
THE PLATINUM BUILDING DUBUQUE, IA
INVESTMENT HIGHLIGHTS Profitable Insurance Tenant
The Platinum Building is a single-tenant asset leased to a nationally recognized insurance company in Dubuque, Iowa. The tenant, Platinum Services Inc, is a supplemental insurance company
INVESTMENT OVERVIEW
Investment Overview
that specializes in accident, disability, cancer, heart attack, stroke, and Award Winning Building
long-term care.
They are the largest independent long term care
provider in the Midwest, one of the top 10 in the nation, and were recently recognized by Forbes as one of the most dependable insurance companies in the country. They are financially strong, with over $20
Strong Secondary Market
million in sales, and continue to grow staff, customers, and sales each year.
2% Annual Increases
The building was originally built in 1906, but was completely renovated in 2003 as the new headquarters for Platinum Services. It was taken down to its shell and restored in a way that preserved its historical
75% Financing Available
significance but added all the modern amenities. The project has won numerous awards including the Main Street Iowa Association’s award for adaptive reuse and the Iowa Historical Society’s award for
9.01% Cap
Excellence in Historic Preservation. US Secretary of Commerce Gary Locke recently said that Dubuque
12.29% Cash-on-Cash
“represents
the
best
and
brightest
in 21st century
economic
development” which summarizes the market as concisely as possible. Job growth has continued during the recession, real estate fundamentals 17.43% Total Return
are as strong as anywhere in the country, and the city is poised for continued expansion well into the future. This deal offers an investor a stabilized income stream from a fiscally sound tenant and a building, recognized for its excellence, in a market that continues to see strong and consistent economic growth.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
1
THE PLATINUM BUILDING DUBUQUE, IA
EXISTING FINANCING Loan Type
Non-Assumable
PROPOSED FINANCING FIRST TRUST DEED Loan Amount Loan Type Interest Rate Amortization Debt Coverage Ratio
$3,937,500 Proposed New 6.25% 25 Years 1.53
INVESTMENT OVERVIEW
Financing
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
2
THE PLATINUM BUILDING DUBUQUE, IA
FINANCING ASSUMPTIONS
ACQUISITION ASSUMPTIONS Price
$5,250,000
Price
$5,250,000
Acquisition Date
January 1, 2010
Down Payment
$1,312,500 (25%)
Cap rate
9.01%
Principle
$3,937,500 (75%)
Cash-on-Cash
12.29%
Origainal Lease Term / Remaining
8 years /7 years
Interest Rate
6.25%
Debt Service Coverage Ratio (Rent Only)
1.53
Amortization
25 years
Monthly Payment
$25,975
Annual Payment
$311,694
INCOME STATEMENT Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Base Rent * - Reserves ** Net Operating Income
$478,200 $5,243 $472,957
$487,764 $5,243 $482,521
$497,519 $5,243 $493,276
$507,469 $5,243 $502,226
$517,619 $5,243 $512,376
$527,971 $5,243 $522,728
$538,530 $5,243 $533,287
$549,301 $5,243 $544,058
$560,301 $5,243 $555,058
$571,493 $5,243 $566,250
Debt Service
$311,694
$311,694
$311,694
$311,694
$311,694
$311,694
$311,694
$311,694
$311,694
$311,694
Before Tax Cash Flow
$161,263
$170,827
$181,582
$190,532
$200,682
$211,034
$221,593
$232,364
$243,364
$254,556
Principal Reduction
$67,512
$71,854
$76,477
$81,396
$86,631
$92,203
$98,134
$104,447
$111,164
$118,315
Total Return
$228,775
$242,681
$258,059
$271,928
$287,313
$303,237
$319,727
$336,811
$354,528
$372,871
*
INVESTMENT OVERVIEW
Financial Overview
Base Rent increases 2% annually through both the initial term and all option periods.
** Reserves of $0.15 per sf annually.
RETURNS Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Cap Rate
9.01%
9.19%
9.40%
9.57%
9.76%
9.96%
10.16%
10.36%
10.57%
10.79%
10-year Cap Rate Average
9.88%
Cash-on-Cash
12.29%
13.02%
13.83%
14.52%
15.29%
16.08%
16.88%
17.70%
18.54%
19.39%
10-year C-o-C Average
15.75%
Total Return
17.43%
18.49%
19.66%
20.72%
21.89%
23.10%
24.36%
25.66%
27.02%
28.41%
10-year Total Return Average
22.67%
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
3
THE PLATINUM BUILDING DUBUQUE, IA
Tenant
Platinum Services Inc
Guarantor
Platinum Services Inc
Corporate Guarantee
Yes
Lease Term
8 years
Lease Commencement
2/1/2009
Lease Expiration
1/31/2017
Initial Rent
$478,200 (Annual)
Escalations
2% Annually
Renewal Options
(2) 5 year options
Renewal Notice
90 days
Lease Type
NNN
INVESTMENT OVERVIEW
Lease Abstract
Maintenance & Repairs - Cleaning & Maintenance
Tenant
- Taxes
Tenant
- Insurance
Tenant
- Parking Lot Maintenance
Tenant
- Parking Lot Repair
Owner
- Roof & Structure
Owner
- HVAC Maintenance
Tenant
- HVAC Replacement
Owner
Early Termination
None
Purchase Option
None
First Right of Refusal
Yes
Assignment & Subletting
Only with Landlord consent
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
4
THE PLATINUM BUILDING DUBUQUE, IA
Company Name
Platinum Services Inc
Ownership
Private
Founder
Wayne Briggs
Years in business
15 years
company, headquartered in Dubuque, IA, that
Headquarters
Dubuque, IA
specializes in accident and disability, cancer, heart
Website
www.Pltnm.com
No. of Locations
45
Founded in 1995 by Wayne Briggs the company
No. of Employees
180+
was established to help rural midwesterners cover
Customers
50,000+
Annual Revenues
$20 million +
Better Business Rating
A+
Products
Supplemental Insurance: Accident & Disability Cancer
COMPANY OVERVIEW
Platinum Services Inc is a supplemental insurance
attack, stroke, and long-term care.
INVESTMENT OVERVIEW
Tenant Overview
the cost of long term care for aging parents. The company's
products
are
underwritten
by
Guarentee Trust Life Insurance Company of Glenview, IL.
Guarentee Trust has been in
business since 1936 and has over $190 million in assets.
Heart Attack Stroke Long-term Care
Platinum has grown to become the largest independent long term care provider in the Midwest, and one of the top 10 in the nation. They were recently honored by Goldline Research and
States
Colorado
Forbes as one of the top ten most dependable
Iowa
insurance professionals in the United States. This
Illinois Indiana Kansas Minnesota
award is given to companies that have no unresolved lawsuits or grievances, excellent client references, and high client retention rates. This is
Missouri Nebraska New Mexico Oklahoma
the second consective year Platinum Services has received this honor. Platinum continues to see strong and steady year-
South Dakota Texas Wisconsin Wyoming
over-year growth in both customers and sales. In addition, the company's staffing levels have grown 15% this year alone. With plans to continue expanding both their product offerings and geographical foot print, the long term prospects of
Insurance Underwriter
the company are promising.
Guarantee Trust Life Insurance Company
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
5
THE PLATINUM BUILDING DUBUQUE, IA
INVESTMENT OVERVIEW
Goldline Award 2009
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
6
THE PLATINUM BUILDING DUBUQUE, IA
INVESTMENT OVERVIEW
Goldline Award 2008
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
7
THE PLATINUM BUILDING DUBUQUE, IA
LOCATION Tenant Trade Name
Platinum Services Inc.
ANNUALIZED OPERATING DATA Ownership
Private
Tenant
Private Company 137 Main Dubuque, Base $478,200 Lease GuarantorPrice Guarantee $5,250,000 BaseCorporate IA 52001 Year 2.00% Thereafter 2.00% Down 25% Capital $478,200 $5,243 Rent Rentable 34,950 Net Net $472,957 Rent Debt 311,694 1 Price/SF $150.21 Debt 1.53 Payment $1,312,500 Net 12.29% Operating Lease Type Triple Net (NNN) 67,512 Reserves CAP Rate 9.11% Principal ($13.68/SF) Square Total 17.43% Cash Growth Service Year 1906/2004 Coverage $161,263 Income Lot Size 0.17 Cash Reduction Feet Return $228,775 Flow Rate Type Fee Built of RoofTRUST and Structure Landlord Responsible TENANT Flow FIRST DEED (acres) Ratio Before /Total After SUMMARY Loan Amount $3,937,500 Debt Renovation Lease Term 8 years Debt Service Proposed New Loan Type Service Loan information is time sensitive and subject to change. Lease Commencement Date 2/1/2009 Interest Rate 6.25% Contact your local Marcus & Millichap Capital Corporation representative. Rent Commencement Date Amortization
2/1/2009 25 Years
Lease Expiration Date FINANCING
1/31/2017
Term Remaining on Lease Increases Options
INVESTMENT OVERVIEW
Forbes Article
7 years 2% Annually (2) 5 year options
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
8
PROPERTY OVERVIEW
THE PLATINUM BUILDING DUBUQUE, IA
THE PLATINUM BUILDING DUBUQUE, IA
THE OFFERING Property
Property Address
The Platinum Building 137 Main Street Dubuque, IA 52001
Assessor's Parcel Number
1025281013
Zoning
Commercial
SITE DESCRIPTION
Number of Stories
5
Year Built/Total
1906 / 2004
Rentable Square Feet
34,950
Lot Size
0.17 (acres)
Type of Ownership
Fee Simple
Parking *
PROPERTY DESCRIPTION OVERVIEW
Property Summary
22
Landscaping Topography
None Flat
CONSTRUCTION
Foundation
Concrete
Exterior
Brick
Parking Surface Roof
Concrete Flat - Rubber Membrane
MECHANICAL
HVAC
Forced Air
Fire Protection
Sprinklers
INTERIOR DETAIL Walls
Brick & Drywall
Floor Coverings
Tile & Carpet
* Most downtown Dubuque buildings have no on-site parking, so tenants use street parking and the numerous city ramps. Platinum Services utilizes the 22 space parking lot tied to this building, leases a lot behind the building, and uses street parking for the few additional spots they need.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
10
THE PLATINUM BUILDING DUBUQUE, IA
PROPERTY OVERVIEW
Property Photos
Platinum Sign: The Platinum Building is one of the tallest in the area so the sign on the East side of the building can be seen from far away.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
11
THE PLATINUM BUILDING DUBUQUE, IA
Entrance: The building's main entrance is on Main Street, the hub of downtown Dubuque activity.
PROPERTY OVERVIEW
Property Photos
Building Lobby: In addition to welcoming visitors, the lobby corridor also pays homage to those companies that once occupied the building.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
12
THE PLATINUM BUILDING DUBUQUE, IA
Building Pillars: During the renovation of the Platinum Building the owners, architects, consultants, and construction companies all decided that the pillars should be the "heroes" of the building.
PROPERTY OVERVIEW
Property Photos
Before & After: The Pillars before and after the renovation.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
13
THE PLATINUM BUILDING DUBUQUE, IA
Platinum Services Lobby: The main lobby of Platinum Services is on the 4th floor and opens up through the fifth floor to the impressive skylight.
PROPERTY OVERVIEW
Property Photos
5th Floor: From the fifth floor of the Platinum Building you can look up through the skylight, down to the office lobby, or out upon the Port of Dubuque.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
14
THE PLATINUM BUILDING DUBUQUE, IA
PROPERTY OVERVIEW
Property Photos
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
15
THE PLATINUM BUILDING DUBUQUE, IA
Lobby Area
PROPERTY OVERVIEW
Property Photos
Cubicle Area
Kitchen Area
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
16
THE PLATINUM BUILDING DUBUQUE, IA
Typical Office: Many of the Platinum Building's offices have both finished and unfinished walls to highlight the original character of the building.
PROPERTY OVERVIEW
Property Photos
Cubicle Area
New Space: Platinum Services recently took over new space on the second floor to handle their rapid expansion.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
17
THE PLATINUM BUILDING DUBUQUE, IA
Rooftop Deck: In addition to the luxurious interior the building also has an expansive rooftop deck for tenants to enjoy.
PROPERTY OVERVIEW
Property Photos
Great Views: From both inside the building and up on the rooftop deck tenants have a great view of the Dubuque area.
Port of Dubuque
Bridge from Illinois to Iowa
Recently Renovated Julien Inn
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
18
THE PLATINUM BUILDING DUBUQUE, IA
PROPERTY OVERVIEW
Area Maps
AERIAL MAP
AREA MAP 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
19
MARKET OVERVIEW
THE PLATINUM BUILDING DUBUQUE, IA
THE PLATINUM BUILDING DUBUQUE, IA
MARKET DRIVERS
+
Five New 4 Lane Highways since 1999 Prior to 1999, Dubuque wasn’t connected with any of the major regional cities by highway. The construction of these roads has driven a vast majority of the market’s growth.
Low Cost of Doing Business The city of Dubuque was founded in 1788 by French Canadian fur trader and early entrepreneur Julien Dubuque. Since the early 1800s the area has prospered as a vibrant river community with strong ties to the shipping, industrial, and manufacturing industries. Like many other Midwest industrial cities, Dubuque suffered a significant economic downturn in the 1970s and 80s. By 1983 the city was in a state of disrepair with a blighted downtown area, bleak riverfront, aging infrastructure, and unemployment nearing 25%. Roughly 15 years ago the citizens of Dubuque decided to embark on an aggresive plan to recreate itself as a center for personal and commercial prosperity.
Dubuque’s low housing and commercial real estate costs, low taxes, and college educated workforce have made it the ideal location for financial service firms, call-centers, and back-office operations.
MARKET OVERVIEW
Market Summary
Greater Dubuque Development Council The assistance the government and the non-profit Greater Dubuque Development Council provide to the local business community is virtually unmatched by any other midwest location. Whether it be the successful recruitment of outside businesses, catering to the needs of local operations, or helping to obtain city, state, and federal funds for new projects, it’s clear that this city is executing a well orchestrated plan of active and managed growth.
Today the area is experiencing a period of unprecedented revitalization and growth: • The new highways and infrastructure have put Dubuque on the map and made it a viable location for regional, national, and international firms. • The low cost of doing business and educated community have led to the creation of thousands of jobs and helped to lower the unemployment rate to below 6%. • Tourist attractions such as the two new casinos, Missippi River Museum, indoor water park, and regional conference center are attracting tens of thousands of visitors to the area each year. • The city's proactive nature has led to many successful projects including: the Port of Dubuque, the Technology Office Park, the Warehouse District, and Industrial Park West. These are but a few examples of how the area has succeeded in recreating itself. The commercial real estate fundamentals of this market are very strong and every indicator points towards continued stable growth in both the near and long term future.
QUICK FACTS
+
Dubuque accounted for 17% of Iowa's job growth in 2007, but only accounts for 3% of Iowa's total population Since 1985 there has been $161,000,000 in new construction in downtown Dubuque, 88% has happened since 2000. Dubuque is averaging over 1,000,000 sf of nonresidential construction annually over the last eight years. Vacancy Rates: Multifamily = 4%
Retail = 6%
Office = 3%
Dubuque's property tax rate is the lowest among the 10 largest cities in Iowa. There are four local colleges including Loras College, University of Dubuque, Clarke College, and the Northeast Iowa Community College. Assessed values in downtown Dubuque are 78% higher today than they were in 2000.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
21
THE PLATINUM BUILDING DUBUQUE, IA
With developments ranging from build-to-suits and downtown revitalization projects to new infrastructure, conference centers, and casinos its clear that Dubuque is handling its unprecedented growth in a way that ensures a smooth transition from Midwest industrial town to a regional hub for jobs, retail, transportation, and tourism. Some of the areas recent projects include:
Grand River Conference Center • $39 million dollar development • City-owned conference center • 174,000 sq ft •
MARKET OVERVIEW
Recent Developments
1,000+ seat Outdoor Ampitheather
Grand Harbor Resort & Waterpark • $30 million dollar development • Connected to Grand River Conference Center • 200+ rooms •
25,000 sq ft Indoor Water Park
Dubuque Technology Park • City acquired land and provided infrastructure • City, state, & federal TIF & Grant money available. • All Build-to-suit •
10+ Companies already relocated
McGraw-Hill Companies • $32 million dollar development • 140,000 sq ft, 4-story office complex • College Textbook Headquarters •
400+ Employees
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
22
THE PLATINUM BUILDING DUBUQUE, IA
Dubuque is consistently ranked very highly, by some of this country’s premier authorities, among the measures that lead to economic growth and prosperity. Compliments like "The city of Dubuque represents the best and brightest in 21st century economic development", as US Commerce Secretary Gary Locke was recently quoted saying, are not uncommon descriptions of the market. Below is a sample of some of the recognition the city has received:
"2009 Excellence in Economic Development Award" US Department of Commerce - 2009
MARKET OVERVIEW
Rankings & Awards
"Best Small Places for Business & Careers" (Ranked 18th in nation) Forbes Magazine - March 2008
"Most Livable Small City in the United States" The United States Conference of Mayors - 2008
"Top 25 Boomtowns" (Ranked 22th among 393 largest metro areas) Inc. Magazine - 2007
"Job Growth" (Ranked #22 out of 387. Only midwest city in the top 25) Moody's | Economy.com - 2007
"Cost of Doing Business" (Dubuque ranked 13th out of 168 metros) Forbes Magazine - 2006
"5-Star Public School Metros" (Dubuque was #7 of 2,200 school districts) Expansion Management - 2006
"High Tech Output Growth" (Dubuque ranked 1st for 1998-2003) Miliken Institute - 2004
"International Outstanding City Manager of the Year - Mike Van Milligen" International City Management Association - 2003
"Third Most Beautiful Place in America" (Upper Missippi River) USA Weekend - May 2003
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
23
THE PLATINUM BUILDING DUBUQUE, IA
MARKET OVERVIEW
Dubuque Area Map
Item
Highlighted
Located within
1
Port of Dubuque
Conference center, Casino, McGraw-Hill, Grand Harbor Hotel, etc. . .
2
Downtown area
Government, Julien Hotel, Warehouse district, Prudential, etc . . .
3
Main retail corridor
Regional mall, movie theater, restaurants, big box, etc . . .
4
Technology Park
McLeaod USA, CarteGraph, McKesson, Entegee, etc . . .
5
Regional Airport
Recent $25 million expansion, 6 daily non-stop flights, private traffic, etc. . .
6
Illinois
Bridge crosses into Illinois. Tourist town of Galena within 15 miles
7
Wisconsin
Routes 151 & 61 cross the Missippi river into Wisconsin
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
24
RECENT SALES
THE PLATINUM BUILDING DUBUQUE, IA
THE PLATINUM BUILDING DUBUQUE, IA
Very few office properties have traded in the Dubuque market in recent years. The area's consistent economic growth has led to solid fundamentals including low vacancy rates (currently ~3%), rising rental rates (up ~4% this year), and a backlog of tenants looking for space. The market did not see any significant cap rate compression in the most recent national boom. Higher values have, and continue to, be tied to increasing NOIs. Cap rates consistently fall in the 8-10% range based on the quality of both the asset and the tenant base. Price/sf averages are hard to find due to the low transaction velocity, but can generally be tied to the replacement cost and quality of the asset.
RECENT SALES
CAP Rate & Price/SF
AVERAGE CAP RATE 10.00
Avg 8.79%
9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Subject
Durrant Headquarters
Tech Park
Eagle Point
AVERAGE PRICE/SF 400.00 360.00 320.00 280.00 240.00
Avg $204.81
200.00 160.00 120.00 80.00 40.00 0.00 Subject
Durrant Headquarters
Tech Park
Eagle Point
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
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THE PLATINUM BUILDING DUBUQUE, IA
THE PLATINUM BUILDING 137 Main Street Dubuque, IA 52001 Rentable Square Feet:
34,950
Sales Price:
$5,250,000
Year Built/Total
1906/2004
Down Payment:
$1,312,500
CAP Rate:
9.11%
Price/SF:
$150.21
SUBJECT PROPERTY
RECENT SALES
Recent Sales
DURRANT HEADQUARTERS 400 Ice Harbor Drive Dubuque, IA 52001
1
Close of Escrow:
5/2009
Sales Price:
$7,200,000
Rentable SF:
18,000
Down Payment:
25%
Year Built:
2007
CAP Rate:
8.56%
Price/SF:
$400.00
COMMENTS The Durrant Headquarters was built-to-suit for a local architecture firm in 2007. The building is the first Platinum LEED Certified asset in the state of Iowa. The additional investment needed to obtain that certification is what led to the high price/sf.
TECH PARK 301 Data Court Dubuque, IA 52003
2
Close of Escrow:
On Market
Sales Price:
$7,750,000
Rentable SF:
54,190
Down Payment:
25%
Year Built:
1999
CAP Rate:
9.00%
Price/SF:
$143.00
COMMENTS The Teck Park building is a call center for a local telecom company and would be considered solid b space in the market. The asset is located in the Dubuque Research Park about 15 minutes from town.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
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THE PLATINUM BUILDING DUBUQUE, IA
EAGLE POINT 4131 Westmark Drive Dubuque, IA 52001
3
Close of Escrow:
8/2008
Sales Price:
$5,500,000
Rentable SF:
77,000
Down Payment:
825,000%
Year Built:
1992
CAP Rate:
8.80%
Price/SF:
$71.42
RECENT SALES
Recent Sales
COMMENTS The Eagle Point building would be considered low class b or high class c in the Dubuque market. Its typical use is as a call center. The price per sf was dragged down to $71 because one third (1/3) of the 77,000 sf is in the basement and used for storage.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
28
RENT COMPARABLES
THE PLATINUM BUILDING DUBUQUE, IA
THE PLATINUM BUILDING DUBUQUE, IA
33.00 30.00 27.00 24.00
Avg $20.00
21.00 18.00 15.00 12.00 9.00
RENT COMPARABLES
Average Rent/SF
6.00 3.00 0.00 Subject
Dubuque Building
Star Brewery
Eagle Point
Durrant Headquarters
COMMENTS Class A office space in Dubuqe is typically owner occupied, single-tenant space. With an office market vacancy rate of just 3%, and a waiting list of companies looking for space, rents are forecasted to rise across all classes.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
30
THE PLATINUM BUILDING DUBUQUE, IA
THE PLATINUM BUILDING 137 Main Street Dubuque, IA 52001
Date Surveyed: Year Built/Total Rentable Square Feet:
9/2009 1906/2004 34,950
Rent/SF: Lease Type:
$13.68 Triple Net (NNN)
SUBJECT PROPERTY COMMENTS The Platinum Building is among the nicest office space in the Dubuque market. The property could easily be converted to multitenant space if the need ever arises.
RENT COMPARABLES
Rent Comparables
DUBUQUE BUILDING 700 Locust Dubuque, IA 52001
1
Date Surveyed: Year Built/Renovated:
9/2009 1929/2008
Rentable Square Feet: Rent/SF: Lease Type:
20,963 $16.00 Triple Net (NNN)
COMMENTS The Dubuque Building is a few blocks from the subject and has been recently renovated for IBM who will be taking floors 3-9. Location: Comparable - Quality: Slightly Inferior
STAR BREWERY 600 Star Brewery Drive Dubuque, IA 52001
2
Date Surveyed: Year Built/Renovated: Rentable Square Feet: Rent/SF: Lease Type:
9/2009 1898/2007 5,780 $18.00 Triple Net (NNN)
COMMENTS The Star Brewery was renovated in 2007 and now houses both retail and office operations. The quoted lease rates are for the office portion of the building. This building is in a comparable location and of comparable quality to the subject. Location: Comparable - Quality: Comparable
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
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THE PLATINUM BUILDING DUBUQUE, IA
EAGLE POINT 4131 Westmark Drive Dubuque, IA 52001
3
Date Surveyed:
9/2009
Year Built: Rentable Square Feet: Rent/SF: Lease Type:
1992 77,000 $13.00 Triple Net (NNN)
COMMENTS The Eagle Point Software Building is class b/c space typically occupied by telemarketing firms. Location: Comparable - Quality: Inferior
RENT COMPARABLES
Rent Comparables
DURRANT HEADQUARTERS 400 Ice Harbor Drive Dubuque, IA 52001
4
Date Surveyed: Year Built: Rentable Square Feet: Rent/SF: Lease Type:
9/2009 2007 18,000 $33.00 Absolute Net
COMMENTS 400 Ice Harbor Drive is the headquarters for the Durrant Group,a prominent local architecture firm. It was built for the company in 2007 and is the first Platinum LEED Certified building in the state of Iowa, which explains the high rental rate. Location: Comparable - Quality: Comparable
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Des Moines © 2009 Marcus & Millichap
32
THE PLATINUM BUILDING DUBUQUE, IA
OFFERING MEMORANDUM
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