7-eleven - etna (pittsburgh),...

OFFERING MEMORANDUM

7-ELEVEN - ETNA (PITTSBURGH), PA

EXECUTIVE SUMMARY

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FINANCIAL ANALYSIS 7-ELEVEN

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 Marcus & Millichap

PURCHASE PRICE: $650,000CAP RATE: 4.89%

ADDRESS

22 Grant Ave, Pittsburgh, PA 15223

VITAL DATA

Price Per Square Foot (GLA) $267.49

Gross Leasable Area (GLA) 2,430 SF

Year Built/Renovated 1968/2015

Lot Size 0.18 AC

Down Payment $650,000 (100%)

Net Operating Income - Current $31,800

Net Cash Flow After Debt Service - Current $31,800

Cash on Cash Return - Current 4.89%

List price is based on base rent on 5/1/2019, the rent difference will be credited at closing.

DEMOGRAPHICS1 Miles 3 Miles 5 Miles

POPULATION2021 Projection 9,826 85,678 260,0292016 Estimate 9,986 87,008 263,6132010 Census 9,986 86,452 261,3432000 Census 10,917 93,750 283,617

INCOMEAverage $59,549 $69,417 $74,204Median $44,256 $48,312 $46,641

7-Eleven

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INVESTMENT OVERVIEW 7-ELEVEN


ANNUALIZED OPERATING INFORMATION

INCOME

Net Operating Income $31,800

RENT SCHEDULE

YEAR ANNUAL RENT MONTHLY RENT RENT/SF

5/1/2019 - 4/30/2023 $31,800 $2,650 $13.09

5/1/2023 - 4/30/2027 $36,000 $3,000 $14.81

Store BaseStore Count 8,500TTM Sales $15,030,000,000

7-Eleven, Inc.

7-Eleven History

What started out as an ice house in Dallas, Texas, back in 1927 has grown and evolved into the world’s largest operator, franchisor and licensor of convenience stores.

The company operates, franchises and licenses approximately 10,700 convenience stores in North America. Of the close to 8,500 stores the company operates and franchises in the United States, more than 6,700 are franchised.

Outside of the U.S. and Canada, there are more than 60,000 7-Eleven and other convenience stores in Japan, Taiwan, Thailand, South Korea, China, Malaysia, Mexico, Singapore, Australia, the Philippines, Indonesia, Norway, Sweden, Denmark and United Arab Emirates. 7-Eleven has announced plans to open stores in Vietnam.

7-Eleven is the world’s largest convenience store chain operating, franchising and licensing stores in 18 countries. Approximately 10,700 of the 60,000 7-Eleven stores worldwide are in North America.

Information provided by: http://corp.7-eleven.com/corp-BAK/about

LEASE INFORMATION

Tenant Name 7-Eleven

Guarantor 7-Eleven, Inc.

Rentable Square Feet 2,430 SF

Lease Commencement 7/1/2011

Lease Expiration 4/30/2027

Options None

Rent Increases Next On 5/1/2023

ROFR / Option to Purchase No

Roof & Structure Tenant Responsible

Parking Lot Tenant Repairs & Replaces

Utilities Tenant Responsible

HVAC Tenant Responsible (Repair & Replace)

Taxes Tenant Responsible

Insurance Tenant Responsible

http://corp.7-eleven.com/corp-BAK/about

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INVESTMENT OVERVIEW

• Absolute Triple Net Lease - No Landlord Responsibilities

• Corporate Guarantee - S&P AA-

• Worlds Largest Convenience Store Chain

• 60,000+ Locations Worldwide

LOCATION & PROPERTY• Hard Corner Location

• Long Term Tenancy As A Convenience Store

• About 10 Minutes From Pittsburgh

• Well Below Market Rent For Similar Assets

TENANT

Marcus & Millichap is pleased to present the 7-Eleven in Etna, PA (Pittsburgh).

This investment consists of a single tenant convenience store leased to 7-Eleven. The lease was first signed in 2011 on a eight year term but was extended right away to add another eight years extending it out through 4/30/2027. List price is based on base rent on 5/1/2019, the rent difference will be credited at closing. The structure of the lease is absolute NNN whereas the tenant is responsible for all taxes, insurance, common area maintenance, repairs and replacement (including roof and structure).

Pittsburgh is a city in western Pennsylvania and is the county seat of Allegheny County. The Combined Statistical Area (CSA) population of 2,659,937, is the second largest in Pennsylvania after Philadelphia and the 20th-largest in the U.S.

Etna is a small bustling community covering one square mile along the banks of the Allegheny River, and is bordered on three sides by Millvale, Shaler Township, and Sharpsburg. Centrally located, Etna is just 10 minutes (non-rush hour) from downtown Pittsburgh.

Information provided by: http://www.etnaborough.org/

http://www.etnaborough.org/

22 Grant Ave, Pittsburgh, PA 15223

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7-ELEVEN(SUBJECT)

7-Eleven

7-Eleven

Corporate 7-Eleven Seattle MSA7-Eleven - Colorado Springs, Colorado

7-Eleven

7-Eleven

7-Eleven

7-Eleven

SALES COMPARABLES

1

2

3

4

5

7

8

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MARKET COMPARABLES 7-ELEVEN


7

Avg. 4.97%

0.0

0.6

1.2

1.8

2.4

3.0

3.6

4.2

4.8

5.4

6.0

7-Eleven 7-Eleven 7-Eleven-2 Corporate7-Eleven

Seattle MSA

7-Eleven -ColoradoSprings,Colorado

7-Eleven-3 7-Eleven-4 7-Eleven-5 7-Eleven-6

Average Cap Rate

Avg. $753.14

$0.00

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

$1,600.00

$1,800.00

$2,000.00

7-Eleven 7-Eleven 7-Eleven-2 Corporate7-Eleven

Seattle MSA

7-Eleven -ColoradoSprings,Colorado

7-Eleven-3 7-Eleven-4 7-Eleven-5 7-Eleven-6

Average Price Per Square Foot

SALES COMPARABLES SALES COMPS AVG



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SALES COMPARABLES

SUBJECT PROPERTY

Asking Price $650,000

Price/SF $267.49

CAP Rate 4.89%

GLA 2,430 SF

Lot Size 0.18 acre(s)

Lease Term Remaining 9.7 Years

7-ELEVEN22 Grant Ave, Pittsburgh, PA, 15223

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Close Of Escrow 7/20/2017

Sales Price $1,482,000

Price/SF $573.31

CAP Rate 5.00%

GLA 2,585 SF


Year Built 1985

Lease Term Remaining 10 Years

7-ELEVEN8810 Hampton Mall Dr N, Capitol Heights, MD, 20743

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Price/SF $624.49

CAP Rate 5.15%

GLA 3,960 SF

Lot Size .779 acre(s)

Year Built 2004


7-ELEVEN3960 North Brookfield Road, Brookfield, WI, 53045



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SALES COMPARABLES

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Price/SF $704.00

CAP Rate 5.00%

GLA 3,000 SF

Year Built 2012


CORPORATE 7-ELEVEN SEATTLE MSA3922 East Portland Avenue, Tacoma, WA, 98404

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Price/SF $1,127.48

CAP Rate 5.27%

GLA 3,028 SF


Year Built 2003


7-ELEVEN - COLORADO SPRINGS, COLORADO5590 Powers Center Point, Colorado Springs, CO, 80920

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Price/SF $950.00

CAP Rate 4.92%

GLA 3,000 SF


Year Built 2012


7-ELEVEN189 North Highway 27, Clermont, FL, 34711



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rentpropertyname1


SALES COMPARABLES

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Price/SF $537.39

CAP Rate 5.00%

GLA 2,501 SF


Year Built 1969


7-ELEVEN 3848 McKinley Avenue, Tacoma, WA, 98404

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Price/SF $259.52

CAP Rate 5.13%

GLA 8,092 SF

Year Built 2001


7-ELEVEN1501 North Tyron Street, Charlotte, NC, 28206

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Price/SF $1,248.94

CAP Rate 4.25%

GLA 2,828 SF


Year Built 1958


7-ELEVEN2803 San Jacinto Boulevard, Austin, TX, 78705



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Source: © 2015 Experian

CREATED ON AUGUST 7, 2017

1 Miles 3 Miles 5 Miles

POPULATION2021 Projection 9,826 85,678 260,029

2016 Estimate 9,986 87,008 263,613

2010 Census 9,986 86,452 261,343

2000 Census 10,917 93,750 283,617

INCOMEAverage $59,549 $69,417 $74,204

Median $44,256 $48,312 $46,641

Per Capita $27,919 $31,515 $33,866

HOUSEHOLDS2021 Projection 4,617 39,178 117,230

2016 Estimate 4,671 39,386 117,606

2010 Census 4,677 39,090 116,712

2000 Census 4,929 40,444 120,902

HOUSING2016 $107,502 $131,659 $143,025

EMPLOYMENT2016 Daytime Population 6,798 67,778 391,254

2016 Unemployment 4.28% 4.55% 6.06%

2016 Median Time Traveled 26 26 25

RACE & ETHNICITYWhite 95.05% 80.03% 69.91%

Native American 0.00% 0.04% 0.03%

African American 1.68% 14.70% 21.26%Asian/Pacific Islander 1.37% 2.47% 5.65%

DEMOGRAPHICS 7-ELEVEN


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Confidentiality and Disclaimer

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving itfrom Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This MarketingBrochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in thesubject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made anyinvestigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financialperformance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospectsof any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure hasbeen 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 orcompleteness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichapis a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

Non-Endorsement Notice

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of anycorporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, itsaffiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenantlessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

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

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has notand will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makesno guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material informationbefore completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investmentopportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or futureperformance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial andlegal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property todetermine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefullyreview all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an importantconsideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area.Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other materialterms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenanthistory and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property andthe value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property,and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legalability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind ofclaim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

N E T L E A S E D D I S C L A I M E R

7-ELEVEN - ETNA (PITTSBURGH), PA

7-eleven - etna (pittsburgh),...

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