422 mcarthur road 424 fayetteville, nc 426 · colliers inernaional 422, 424, 426 mcarthur road...

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FAYETTEVILLE, NC McArthur Road 422 424 426 OFFICE/FLEX SPACE AVAILABLE FOR SALE | 28,539 SF

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Page 1: 422 McArthur Road 424 FAYETTEVILLE, NC 426 · COLLIERS INERNAIONAL 422, 424, 426 McArthur Road Financials INCOME SF LEASE START LEASE END MONTHLY ANNUAL OPTIONS Edward Jones 1,163

FAYETTEVILLE, NCMcArthur Road422

424426

OFFICE/FLEX SPACE AVAILABLE FOR SALE | 28,539 SF

Page 2: 422 McArthur Road 424 FAYETTEVILLE, NC 426 · COLLIERS INERNAIONAL 422, 424, 426 McArthur Road Financials INCOME SF LEASE START LEASE END MONTHLY ANNUAL OPTIONS Edward Jones 1,163

COLLIERS INTERNATIONAL | 2

422, 424, & 426McArthur Road

Colliers International, on behalf of the owner, is pleased to exclusively offer the opportunity to purchase 422 McArthur Road, located in Fayetteville, NC. The subject property is a 28,539 SF, two-story office/flex building. It is currently 76% occupied allowing a buyer an excellent “value-add” opportunity. It was built in 2011 by a local HVAC owner/operator. Unfortunately, the owner has passed and that has left his 6,800 SF space vacant. The building includes many long-term tenants including Edwards Jones, Carolina Counseling, and Crossfit. The vacancy allows the new owner to lease up space and add significant rental income and value to the property.

ExecutiveSummary

Address 422, 424, 426 McArthur Road, Fayetteville, NC 28311

Square Feet ±28,539SF

Acreage 1.43 Acres

Floors 2

Parking 37 spaces

Year Built 2011 (Renovated in 2019)

2020 NOI Projected $ 76,356

TenantEdward Jones, Carolina Counseling, Fantastic Sams Office, RDL Therapeutic, Crossfit

SITE

MCARTHUR ROADMCARTHUR ROAD

Page 3: 422 McArthur Road 424 FAYETTEVILLE, NC 426 · COLLIERS INERNAIONAL 422, 424, 426 McArthur Road Financials INCOME SF LEASE START LEASE END MONTHLY ANNUAL OPTIONS Edward Jones 1,163

COLLIERS INTERNATIONAL | 3

422, 424, & 426McArthur Road

Investment OverviewMULTI TENANT Edward JonesCrossfitCarolina CounselingRDL TherapeuticFantastic Sam’s LOCATION 422, 424, 426 McArthur Road, Fayetteville, NC

COUNTY Cumberland

BUILDING SIZE 28,539 SF

ACREAGE 1.43

Investment Highlights• 23% vacant allowing instant upside by leasing one space.

• Owner recently spent on building improvements

• 1.5 miles from Interstate 295, 1 mile from route 401

• Long term tenants in occupied space

NOI $76,356

PRO FORMA NOI $ 183,356

YEAR BUILT 2011

LISTING PRICE $1,750,000

Page 4: 422 McArthur Road 424 FAYETTEVILLE, NC 426 · COLLIERS INERNAIONAL 422, 424, 426 McArthur Road Financials INCOME SF LEASE START LEASE END MONTHLY ANNUAL OPTIONS Edward Jones 1,163

COLLIERS INTERNATIONAL | 4

422, 424, & 426McArthur Road

Building Description

Located on McArthur Road, near Ramsey Street.

Location: 422, 424, 426 McArthur Road Fayetteville, NC 28311

Building: ±28,539 SF | 2 floors

Acreage: 1.43 acres

Year Built: 2011

Tax Info: PIN # 0439-49-3340 – Cumberland County, NC

Construction: Masonry

1830 Hillandale Road

SITE

MCARTHUR ROADMCARTHUR ROAD

Page 5: 422 McArthur Road 424 FAYETTEVILLE, NC 426 · COLLIERS INERNAIONAL 422, 424, 426 McArthur Road Financials INCOME SF LEASE START LEASE END MONTHLY ANNUAL OPTIONS Edward Jones 1,163

COLLIERS INTERNATIONAL | 5

422, 424, & 426McArthur Road

FinancialsINCOME

SF LEASE START LEASE END MONTHLY ANNUAL OPTIONSEdward Jones 1,163 Dec-11 Feb-22 $1,938 $23,260 NoneFantastic Sam's 850 18-Oct Sep-21 $1,650 $19,800 Two 3-year options, 6% increasesCarolina Counseling 2,800 Aug-19 Jul-21 $2,128 $25,530 None

RDL Therapeutic 2,720 Nov-17 Oct-22 $2,884 $34,608 One 5-year option, 3% increases every 2 years

Crossfit 10,350 Nov-17 Oct-22 $4,992 $59,904 One 5-year option, 4% increases every 2 years

Vacant 6,800 0Total 28,539 $163,102

SITE

MCARTHUR ROADMCARTHUR ROAD

EXPENSESManagement $7,560 Maintenance $24,630 Utilities $16,814 Taxes $26,406Insurance $11,000Total $86,410

NOI $76,356Pro Forma NOI $183,356Cap Rate 4.36%Pro Forma Cap Rate 10.48%

INCOME $162,766

Page 6: 422 McArthur Road 424 FAYETTEVILLE, NC 426 · COLLIERS INERNAIONAL 422, 424, 426 McArthur Road Financials INCOME SF LEASE START LEASE END MONTHLY ANNUAL OPTIONS Edward Jones 1,163

COLLIERS INTERNATIONAL | 6

422, 424, & 426McArthur Road

Recent Building RenovationsPARKING LOTResurfaced and striped July 2018 ($4,600)

REPAINTING2nd floor and common areas downstairs ($500) SECURITY CAMERASUpgraded June 2018 ($1,600)

SIDEWALK AND RETAINING WALLAdded behind Crossfit June 2018 ($10,500)

FIRE DOOR & EXIT LIGHTRDL added June 2018 ($1,680)

NC CODE UPGRADES DUE TO CHANGE OF USE (RDL)Additional emergency/exit lighting, medical grade electrical wiring, fresh air damper, fire rated wall added between RDL & Crossfit ($24,500)

NC CODE UPGRADES DUE TO CHANGE OF USE (CROSSFIT)Includes additional exhaust venting, brought in outside air, rework HVAC penetrations for firewall, added more emergency/exit lighting, ADA upgrades for bathrooms ($34,000 upon completion)

1830 Hillandale Road

SITE

MCARTHUR ROADMCARTHUR ROAD

Page 7: 422 McArthur Road 424 FAYETTEVILLE, NC 426 · COLLIERS INERNAIONAL 422, 424, 426 McArthur Road Financials INCOME SF LEASE START LEASE END MONTHLY ANNUAL OPTIONS Edward Jones 1,163

COLLIERS INTERNATIONAL | 7

422McArthur RoadFloor Plan

Main Building

Page 8: 422 McArthur Road 424 FAYETTEVILLE, NC 426 · COLLIERS INERNAIONAL 422, 424, 426 McArthur Road Financials INCOME SF LEASE START LEASE END MONTHLY ANNUAL OPTIONS Edward Jones 1,163

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422McArthur RoadFloor Plan

Main Building (First Floor)

±1,158 SF

±422 SF

Page 9: 422 McArthur Road 424 FAYETTEVILLE, NC 426 · COLLIERS INERNAIONAL 422, 424, 426 McArthur Road Financials INCOME SF LEASE START LEASE END MONTHLY ANNUAL OPTIONS Edward Jones 1,163

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422, 424, 426McArthur RoadFloor Plan

Crossfit

Page 10: 422 McArthur Road 424 FAYETTEVILLE, NC 426 · COLLIERS INERNAIONAL 422, 424, 426 McArthur Road Financials INCOME SF LEASE START LEASE END MONTHLY ANNUAL OPTIONS Edward Jones 1,163

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422, 424, 426McArthur RoadFloor Plan

RDL

Page 11: 422 McArthur Road 424 FAYETTEVILLE, NC 426 · COLLIERS INERNAIONAL 422, 424, 426 McArthur Road Financials INCOME SF LEASE START LEASE END MONTHLY ANNUAL OPTIONS Edward Jones 1,163

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422, 424, & 426McArthur Road

Property Aerial

SITE

MCARTHUR ROADMCARTHUR ROAD

Page 12: 422 McArthur Road 424 FAYETTEVILLE, NC 426 · COLLIERS INERNAIONAL 422, 424, 426 McArthur Road Financials INCOME SF LEASE START LEASE END MONTHLY ANNUAL OPTIONS Edward Jones 1,163

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Interior Photos

Page 13: 422 McArthur Road 424 FAYETTEVILLE, NC 426 · COLLIERS INERNAIONAL 422, 424, 426 McArthur Road Financials INCOME SF LEASE START LEASE END MONTHLY ANNUAL OPTIONS Edward Jones 1,163

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Neighboring Retail Snapshot

Page 14: 422 McArthur Road 424 FAYETTEVILLE, NC 426 · COLLIERS INERNAIONAL 422, 424, 426 McArthur Road Financials INCOME SF LEASE START LEASE END MONTHLY ANNUAL OPTIONS Edward Jones 1,163

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422, 424, & 426McArthur Road

Area MapFayetteville

> ±5 miles away from Downtown Fayetteville

> ±9 miles away from Cape Fear Valley Medical Center

> Within a 3 mile radius of ~17,656 professional employees

> Less than 20 minutes to Fayetteville Regional Airport

> Just over an hour from Raleigh

FAYETTEVILLE REGIONAL AIRPORT

Page 15: 422 McArthur Road 424 FAYETTEVILLE, NC 426 · COLLIERS INERNAIONAL 422, 424, 426 McArthur Road Financials INCOME SF LEASE START LEASE END MONTHLY ANNUAL OPTIONS Edward Jones 1,163

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422, 424, & 426McArthur Road

Dem

ogra

phic

s POPULATION 1-MILE 3-MILE 5-MILE

2000 Population 5,388 38,281 71,279

2010 Population 5,243 39,201 70,454

2019 Population 5,853 40,271 71,952

2024 Population 6,061 41,261 73,271

2019-2024 Annual Rate 0.70% 0.49% 0.36%

Daytime Population 6,959 39,845 90,709

2019 Median Age 37.5 34.8 35.0

HOUSEHOLDS

2000 Households 2,123 14,836 28,046

2010 Households 2,156 16,085 29,370

2019 Total Households 2,407 16,651 30,118

2024 Total Households 2,497 17,108 30,118

2019-2024 Annual Rate 0.74% 0.54% 0.42%

2018 Average Household Size 2.76 2.94 2.93

HOUSING

2019 Total Housing Units 2,915 19,587 35,451

2019 Owner Occupied Housing Units 45.8% 37.1% 35.9%

2019 Renter Occupied Housing Units 36.8% 47.9% 49.0%

2019 Vacant Housing Units 17.4% 15.0% 15.0%

MEDIAN HOUSEHOLD INCOME 1-MILE 3-MILE 5-MILE

2019 Median Household Income $52,768 $40,419 $39,419

2024 Median Household Income $58,712 $46,209 $45,106

AVERAGE HOUSEHOLD INCOME

2019 Average Household Income $69,395 $57,111 $57,042

2024 Average Household Income $78,527 $66,582 $65,785

PER CAPITA INCOME

2019 Per Capita Income $27,025 $23,441 $23,837

2024 Per Capita Income $30,680 $27,418 $27,561

EDUCATION

Associate’s Degree 9.9% 10.5% 10.2%

Bachelor’s Degree 21.1% 18.5% 18.8%

Graduate/Professional Degree 15.9% 11.2% 11.7%

RACE/ETHNICITY

White Alone 47.0% 35.7% 40.1%

Black Alone 41.4% 53.8% 49.0%

Hispanic Origin 9.4% 8.6% 8.9%

AGE

18+ 79.1% 77.0% 77.3%

55+ 30.1% 26.9% 27.2%

EMPLOYMENTTotal Employees 3,824 17,656 51,053

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OfferingProcedure

Colliers International 1201 EDWARDS MILL RDSuite 300Raleigh, NC 27607+1 919 832 1110www.colliers.com/rdu

The offering of 422 McArthur Road, Fayetteville, NC is being conducted exclusively by Colliers International. All questions and inquiries should be directed to the Colliers representatives listed in this memorandum.

Colliers will be available to assist prospective investors with their review of the offering. On-site inspections of the property and tours of the market area can be arranged directly with Colliers.

All prospective purchasers can receive the due diligence materials by contacting the listing broker to register and receive a Confidentiality Agreement. Once a signed Confidentiality Agreement is received, prospective buyers will receive a link to the due diligence material folders.

Offers should include, at a minimum, the following:• The purchase price, due diligence period, closing date;• The source of capital, both equity and debt, for the transaction• The amount of earnest money deposit• A description of assumptions utilized for the offer• Purchaser’s resume indicating properties currently owned, and those

acquired in 2018 and 2019.

JACK FARRITORVICE [email protected]

919 771 3314

1830 Hillandale RoadSITE

MCARTHUR ROADMCARTHUR ROAD

Page 17: 422 McArthur Road 424 FAYETTEVILLE, NC 426 · COLLIERS INERNAIONAL 422, 424, 426 McArthur Road Financials INCOME SF LEASE START LEASE END MONTHLY ANNUAL OPTIONS Edward Jones 1,163

Colliers International 1201 EDWARDS MILL ROADSuite 300Raleigh, NC 27607+1 919 832 1110www.colliers.com/rdu

FAYETTEVILLE, NORTH CAROLINA

422, 424, 426 McArthur Road

JACK FARRITORVICE [email protected]

919 771 3314