8678Spring Mountain

Las Vegas, NV 89117

O F F E R I N G M E M O R A N D U M

N O N - E N D O R S E M E N T & D I S C L A I M E R N O T I C E

C O N F I D E N T I A L I T Y & D I S C L A I M E R

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended 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

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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

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contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever

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TABLE OF CONTENTS

10A E R I A L O V E R V I E W

L O C A T I O N O V ER V I EW

14

19D E M O G R A P H I C S

O F F E R I N G S U M M A R Y

05 T E N A N T P R O F I L E

08

P R O P E R T Y H I G H L I G H T S

09

8678Spring Mountain

PROPERTYANALYSIS

8678 West Spring Mountain Road

Offering Price

O f f e r i n g S u m m a r y

Las Vegas, NV 89117

8678 West Spring Mountain Road

$1,840,000

PRICING OVERVIEW

Price $1,840,000

CAP Rate 7.43%

Price/SF $190.24

Net Operating Income $136,663

PROPERTY INFORMATION

Rentable Building Area 9,672 SF

Parcel Size .72 AC

Year Built 2000

Parking Ratio 3.71 / 1000 SF

8678Spring Mountain

5 O F F E R I N G S U M M A R Y

8678Spring Mountain

Suite Tenant Start Date End Date Time Remaining Size (SF) Monthly Rent Rent/SF Annual Rent Lease Type IncreasesDate of

IncreaseOptions

101 Argon Agency 4/1/17 3/31/18 Month to Month 870 $1,100 $1.26 $13,200 MG N/A N/A N/A

102 Christie McDermott 9/15/18 9/14/19 6 Months 535 $850 $1.59 $10,200 MG $870 9/15/2019 2, 1 year

103 NBC Operations 3/1/18 2/28/23 48 Months 8,267 $15,098 $1.83 $181,176 MG

Annual

CPI 3/1/2020 3, 5 year

9,672 $17,048 $1.76 $204,576

R e n t R o l l

6 R E N T R O L L

8678Spring Mountain

Current PSF / Month

Income

Scheduled Base Rental Income $204,576.00 $1.76

Expense Reimbursement Income $0.00 $0.00

Potential Gross Income $204,576.00 $1.76

Vacancy Factor (10%) $20,457.60 $0.18

Gross Income $184,118.40 $1.59

Expenses

Security Monitoring $540.00 $0.00

Insurance $4,213.00 $0.04

Fire Alarm Monitoring $350.00 $0.00

Janitorial Services $4,690.00 $0.04

Sprinkler Monitoring $345.60 $0.00

Property Management $7,160 $0.76

Real Estate Tax (2018) $8,961.00 $0.08

Repairs & Maintenance $19,737.11 $0.17

Sewer $723.79 $0.01

Electricity $734.79 $0.01

Total Expenses $47,455.29 $0.35

Net Operating Income $136,663.11 $1.18

O p e r a t i n g S t a t e m e n t

7 O P E R A T I N G S T A T E M E N T

T E N A N T P R O F I L E

8678Spring Mountain

8

About The Neck And Back Clinics

For more than 21 years, The Neck and Back Clinics have been widely recognized as a leading center for treatment of spinal injuries, extremity injuries, sports injuries, sciatica, pain management and personal injury rehabilitation.

Led by a team of chiropractic physicians, The Neck and Back Clinics use scientific evidence to guide their team in providing you with optimal care. By integrating multiple approaches and techniques, we can tailor treatment plans to meet the needs of each patient.

Let’s get you started on the journey to a pain-free, fulfilling and active lifestyle.

THE NECK AND BACK CLINICS: SPORTS INJURY CHIROPRACTIC CARE FOR SOUTHWEST LAS VEGASLocated at 8678 W Spring Mountain Rd in the heart of Spring Valley, our Southwest Las Vegas chiropractic center is convenient and accessible for local patients. We are near Desert Breeze Park, S. Durango Dr. and the Desert Breeze Community Center. Our Southwest Las Vegas location makes it easy for patients to stop by for an appointment any time of the day. We are available for pre and post-work appointments, as well as lunchtime appointments. We believe all patients deserve quality, accessible care – and thanks to our Southwest Las Vegas location – we are able to provide this care for our community.

Our Southwest chiropractic center provides cutting-edge spinal adjustments and integrates these treatments with physical therapy and injury rehabilitation. We find that this unique approach to care delivers the best results for our patients.

Source: https://theneckandbackclinics.com

T e n a n t P r o f i l e

L O C A T I O N O V E R V I E W

Located in West Las Vegas

This property is located in the affluent West Las Vegas submarket. Summerlin, The Lakes, and Canyon Gate Country Club are a 5-minute drive away.

30.91% of households within a 1-mile radius earn $75,000 or more per year. 34.66% of households within a 5-mile radius earn $75,000 or more per year. 55.36% of households within a 1-mile radius earn $50,000 or more per year.

Major Tenant with a Long Tenure

Southwest Neck and Back Clinic, a chiropractic practice, has been at this location for 11 years. They have 8 locations in Las Vegas, and 1 location in Arizona. This tenant occupies 85% of the property, and has 4 years left on their lease term, with three five-year options.

P R O P E R T Y H I G H L I G H T S

8678Spring Mountain

9

A e r i a l O v e r v i e w8678

Spring Mountain

West Spring Mountain Road– 9,900 VPD (2017)

Sou

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ve –

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Desert Breeze Park Soccer Complex

Desert Breeze Park

10 A E R I A L O V E R V I E W

8678Spring Mountain

11 A E R I A L O V E R V I E W

McDonald’s

8678Spring Mountain

12 M A P

MARKETOVERVIEW

8678 West Spring Mountain Road

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Billed as the Entertainment Capital of the World, Las Vegas is one of

the most recognizable city brands in the world, attracting over 42 million

visitors annually to its world-class resorts, restaurants, shopping malls,

and numerous entertainment options.

The Las Vegas metro is also one of the fastest-growing regions in the

nation and boasts a population of nearly 2.2 million people, ranking it as

the 28th largest metro in the United States.

The metro, which comprises much of Clark County, is situated at the

southernmost tip of Nevada, bordering California and Arizona, and is

home to more than 70 percent of Nevada’s total population.

METRO HIGHLIGHTS

ROBUST EMPLOYMENT GROWTH

A diversifying employment base will support job

growth that will outpace the U.S. growth rate over

the next five years.

STRONG POPULATION GAINS

The metro’s population is expected to increase

dramatically, in the coming years, exceeding

national gains.

VAST TOURISM INDUSTRY

Visitor volume reached 39 million in 2017, ranking

Las Vegas among the top tourist destinations in the

country.

L o c a t i o n O v e r v i e w

8678Spring Mountain

L O C A T I O N O V E R V I E W

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ECONOMY▪ With all 10 of the nation’s largest hotels located in Las Vegas, tourism and entertainment are

the most significant drivers of the Las Vegas economy; however, the economy is diversifying

into distribution, back-office operations and manufacturing.

▪ The metro's business-friendly environment, access to Western markets, large labor force,

and availability of high-speed data attract companies such as Switch, Amazon, K2 Energy,

Scientific Games, Sunpreme, Tectonics, Virtual Guard, VadaTech and Zappos.

▪ The 2.3 million-square-foot Las Vegas Convention Center is one of the largest in the world

and draws more than six million attendees annually.

SHARE OF 2017 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

Wynn Resorts

Station Casinos

MGM Resorts

Las Vegas Sands

Caesars Entertainment

Boyd Gaming

The Valley Health System

Cosmopolitan of Las Vegas

Dignity Health-St. Rose Dominican

United Healthcare of Nevada* Forecast

MANUFACTURING2%

GOVERNMENT

HEALTH SERVICES

EDUCATION AND

+OTHER SERVICES

3%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

17%

AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

1%INFORMATION

14%

7%

11% 29% 5%

10%

8678Spring Mountain

L O C A L E C O N O M Y

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LAS VEGAS METRO AREA

Attractive Yields, Strengthening Demand

Power Investor Interest in Las Vegas Assets

Limited construction fueling rapid vacancy decline. Following the fastest pace of deliveries since

2012, the office market in Las Vegas is set to tighten further. The late recovery has rapidly

expanded office demand, coupled with annual construction of less than 450,000 square feet over

the past seven years, dramatically shrinking vacancy. However, the sharp declines in vacancy

have witnessed a marginally falling rent level through most of the current business cycle, with the

average asking rent more than $2 per square foot lower than 2010. Tenant expansion has largely

taken place at the high end of the market, prompting a downturn in quality available space and

contributing to the slide in average asking rents. A limited pipeline mostly revolving around

speculative space in the largest office submarkets will emerge this year. Meanwhile, the average

asking rent will push higher for the second straight year, bolstered by the quality of space coming

online. Dispersion in rent growth remains widespread, with gains supported by the Downtown and

South Las Vegas submarkets where conditions are tightest.

Out-of-state buyers deploy yield strategies seeking high returns. Fueled by cap rates that can

exceed their home markets by more than 300 basis points, coastal capital sources from California

remain consistent buyers of Las Vegas office properties. First-year returns remain in the mid-7

percent range, propelling a focus on properties in Central and Southwest Las Vegas along primary

office corridors. Typically, investors deploy strategies underpinned by value-add and yield

proponents, seeking to fill dark spaces and raise rents in line with the metro average. While

institutions will consider properties in Henderson and Central Las Vegas near the Strip, buyers

focused on more aggressive strategies should pursue non-core submarkets to the north and west

of the core, where elevated vacancy and struggling rent performance offer more compelling upside

from a continued recovery in the overall market.* Estimate; ** Forecast;

Sources: Marcus & Millichap Research Services; CoStar Group, Inc.; Real Capital

Analytics

8678Spring Mountain

O F F I C E M A R K E T

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LAS VEGAS METRO AREA

2019 Market Forecast

Payroll growth will exceed the national average as 33,000 jobs are created,

just below the 35,000 positions added in 2018.

The pace of construction falls nearly 50 percent as 365,000 square feet is

brought online. Last year, builders finished 700,000 square feet of office

space.

The vacancy rate will decline 80 basis points to 14.2 percent, the lowest level

since 2007, as operators focus on increasing occupancy. Last year, vacancy

fell 60 basis points.

The average asking rent will tick up 1.5 percent to $20.40 per square foot,

tacking on to last year’s 0.5 percent advancement.

Vacancy in Northwest and West Las Vegas will remain well above the metro

average, encouraging capital flows to these areas in search of excess

returns.

* Estimate; ** Forecast;

Sources: Marcus & Millichap Research Services; CoStar Group, Inc.;

Real Capital Analytics

Employment

up 3.2%

Construction

365,000 sq. ft.

Vacancy

down 80 bps

Rent

up 1.5%

Investment

8678Spring Mountain

O F F I C E F O R E C A S T

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Fed watchful as economic surge raises inflationary pressure. Strengthened hiring amid exceptionally low unemployment levels has boosted wage growth, placing upward pressure

on inflation. Amid this trend coupled with rising trade protectionism and tariffs, the Federal Reserve appears determined to head off inflation risk by continuing its quarterly

increases of the overnight rate. These actions are lifting short-term interest rates while the 10-year Treasury rate remains range bound near 3.0 percent. Should the 10-year remain

steadfast, Fed tightening could create an inverted yield curve in which short-term rates rise above long-term rates. Although this event has preceded every recession of the past 50

years, many economists suggest such an inversion this year could be an exception to the rule. Because of distortions caused by regulatory changes and quantitative easing, this

inversion could be different. Nonetheless, the Fed’s stated path does raise recessionary risk levels because it could weigh on confidence levels and restrain spending by

consumers and businesses, thus slowing economic growth.

Lending market remains competitive as interest rates rise. Though interest rates are rising and cutting into investors leverage objectives, yield spreads for medical office buildings

are still favorable. Average medical office cap rates remain more than 400 basis points above the 10-Year Treasury rate, which could prompt additional investors to seek assets in

the property sector as they search for higher-yielding alternatives. Medical office interest rates currently reside in the mid-4 percent to mid-5 percent realm with maximum leverage

of 70 percent.

Potential rapid interest rate escalation a downside risk. Although capital remains plentiful, lending could tighten quickly for a short period if interest rates rise rapidly. As experienced

in late 2016 when the 10-year rose by more than 80 basis points in 60 days, and again at the beginning of 2018 when there was a 60-basis-point surge, market liquidity could

tighten if rates jump. Considering this has happened twice in the last two years, borrowers will likely benefit by taking a cautious approach with their lenders and lock in financing

quickly.

** Cap rate trailing 12-month average through 2Q;

Treasury rate as of June 28.

Sources: CoStar Group, Inc.; Real Capital Analytics

Capital Markets

8678Spring Mountain

C A P I T A L M A R K E T S

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8678Spring Mountain

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2023 Projection

Total Population 29,397 187,069 464,897

▪ 2018 Estimate

Total Population 26,963 170,082 421,492

▪ 2010 Census

Total Population 25,016 155,544 384,657

▪ 2000 Census

Total Population 19,361 121,079 291,305

▪ Current Daytime Population

2018 Estimate 22,123 160,614 425,981

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2023 Projection

Total Households 12,755 77,235 188,012

▪ 2018 Estimate

Total Households 11,497 68,877 167,204

Average (Mean) Household Size 2.38 2.44 2.50

▪ 2010 Census

Total Households 10,664 62,915 152,675

▪ 2000 Census

Total Households 8,134 48,262 116,036

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2018 Estimate

$200,000 or More 2.85% 5.75% 4.97%

$150,000 - $199,999 4.13% 5.22% 4.31%

$100,000 - $149,000 10.90% 13.78% 12.35%

$75,000 - $99,999 13.03% 13.61% 13.03%

$50,000 - $74,999 24.45% 21.67% 20.59%

$35,000 - $49,999 14.94% 13.90% 14.89%

$25,000 - $34,999 11.34% 9.97% 10.93%

$15,000 - $24,999 9.24% 8.17% 9.67%

Under $15,000 12.12% 11.99% 12.46%

Average Household Income $70,547 $86,418 $79,574

Median Household Income $54,462 $60,992 $55,962

Per Capita Income $30,099 $35,035 $31,633

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2018 Estimate Total Population 26,963 170,082 421,492

Under 20 20.23% 20.28% 22.73%

20 to 34 Years 22.25% 19.49% 21.15%

35 to 39 Years 6.97% 6.40% 7.05%

40 to 49 Years 13.85% 13.69% 13.95%

50 to 64 Years 20.81% 21.88% 19.67%

Age 65+ 15.91% 18.26% 15.43%

Median Age 40.43 42.97 39.33

▪ Population 25+ by Education Level

2018 Estimate Population Age 25+ 19,821 125,959 300,400

Elementary (0-8) 2.59% 2.71% 4.02%

Some High School (9-11) 6.71% 6.11% 7.27%

High School Graduate (12) 30.53% 28.12% 29.11%

Some College (13-15) 26.09% 25.89% 25.52%

Associate Degree Only 8.45% 7.72% 7.21%

Bachelors Degree Only 17.29% 19.06% 17.02%

Graduate Degree 6.50% 8.96% 8.22%

D E M O G R A P H I C S

EXCLUSIVELY LISTED BY

Ray GermainFirst Vice President

Las Vegas Office702.215.7153

ray.germain@marcusmillichap.com

Austin LeeAssociate

Las Vegas Office702.215.7141

austin.lee@marcusmillichap.com