898 south 2550 east, spanish fork, utah 84660€¦ · year 2016 net sales net sales of $485.2...
Post on 06-Aug-2020
4 Views
Preview:
TRANSCRIPT
Offering Memorandum
$4,750,000Investment Details
New 20 year NNN ground lease to commence upon completion of construction
Ground lease includes gas depot New 2017 construction Scheduled for delivery early
November 2017 10% rent escalations every ten
years to hedge against inflation Standard & Poor’s AA rated
tenant, guaranteed by WalMartInc – Corporate guarantee
Actual Site Photo
898 South 2550 East, Spanish Fork, Utah 84660
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
Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by theparty 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 onlya 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 thesubject property, the future projected financial performance of the property, the size and square footage of the property and improvements, thepresence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition ofthe improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancyof 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 anyinvestigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is aservice mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. Thepresence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporationof Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely includedfor the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY AND ONLY FIRST BY OBTAINING TENANTS PERMISSION.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
WALMART NEIGHBORHOOD MARKETSpanish Fork, UTACT ID Y0121300
2
TENANT OVERVIEW
Parent Company: Wal-Mart Stores, Inc
Corporate Guaranteed Lease: Wal-Mart Stores, Inc
Public Ownership: NYSE:WMT
Walmart is the world’s largest retailer and employer with 11,000 +/- stores worldwide
Headquarters – Bentonville, AK
Website – www.Walmart.com
Walmart Neighborhood Markets (WNM) was designed in 1998 as a smaller foot print option for communities in need of a pharmacy, affordable groceries and generalmerchandise. Each store is approximately 38,000 +/- square feet and employs up to 95 associates. WNM offer fresh produce, meat an dairy products, bakery and deli items,household supplies, health and beauty aids and a pharmacy. The Walton family still owns 51% of Walmart stock. Walmart is the world’s largest retailer and employer. With fiscalyear 2016 net sales net sales of $485.2 billion, Walmart employs 2.3 million associates worldwide and 1.4 million associates in the United States alone. Walmart is known forits low pricing and wide selection of goods. Each week, more than 245 million customers and members visit nearly 11,000 Walmart stores under 65 banners in 28 countries ande-commerce websites in 11 countries.
Standard & Poor’s AA rated Standard & Poor’s 100 Standard & Poor’s 500
TENANT INFOSITE PHOTO
CLICK HERE
Other concepts / Divisions of Walmart: Sam’s Club Asda Amigo Supermarkets Vudu
Massmart Moosejaw Modcloth
Future Retail Development
#
Walmart Stores, Inc.
CREDIT RATING: A2 www.fdreports.com | www.creditntell.com | April 30, 2017
PROPERTY NAME
General Information
Address 702 S.W. 8th Street , Bentonville, Arkansas, 72716, United States
Phone 479-273-4000
Website www.walmartstores.com
Store BaseStore Count 11,723
TTM Sales $486,976,000,000
Key PersonnelChief Executive Officer & President Doug McMillon
CFO & EVP M. Brett Biggs
Chairman Greg Penner
Financial MarketsStock Ticker WMT
Current Price $79.86 as of 9/13/17
52 Week High/Low $81.99 / $65.28
Overview
Price $4,750,000
Gross Leasable Area 48,762 + GAS 763 SF = 49,525
Lot Size 6.36 acres
Net Operating Income $190,000
CAP Rate 4.00%
Year Built 2017
Lease Abstract
Lease Type NNN Ground Lease
Lease Term 20 years
Lease Start estimated 11/1/2017**
Renewal Options 6x5
Increases 10% every 10 years & written into lease during options
Roof and Structure Tenant
THE OFFERINGMarcus & Millichap is pleased to announce the exclusive right to list for sale the within Walmart Neighborhood Market. Offering a passive investor theopportunity to purchase a newly constructed ground lease with the world’s largest employer and retailer. A true sleep at night passive investment, on a new20 year NNN lease with rental escalations every ten years and option periods. With 211 parking spaces.
Years Rent
Years 1-10 $190,000
Years 11-20 $209,000
Option 1 $219,450
Option 2 $230,422
Option 3 $241,943
Option 4 $254,040
Option 5 $266,742
Option 6 $280,079
** Lease start date subject to construction completion
Church of Latter Day
Saints
Maple Mountain
High School
Sierra Bonita Elementary
Church of Latter Day
Saints
Church of Latter Day
Saints
Church of Latter Day
Saints
Future Retail Development
MAJOR EMPLOYERS
E M P L O Y E R# O F
E M P L O Y E E S *
Klune Industries Inc 383Olsons Greenhouse Gardens Inc 350Utah County Sheriff Department 300
Walmart 300New Hven Rsidential Trtmnt Ctr 285
Nebo School District 261Natures Sunshine 250
Sunroc 240Costco Wholesale Corporation 202Longview Fibre Ppr & Packg Inc 200Maple Mountain Enterprises Inc 200
Neways Inc 200
DEMOGRAPHICS
OVERVIEWPROVO-OREM
The Provo-Orem metro is formed of Utah and Juab counties and
has a population of 590,000. The metro is located at the
southern end of the Wasatch Front, around 40 miles south of Salt
Lake City. The Wasatch Mountains provide vistas to the east,
while Toole County lies to the west. Provo is the largest city in the
metro with roughly 120,000 residents, followed by Orem.
The region’s economy has shifted toward high-tech, computer-related businesses over the past two decades, supported by companies such as Adobe, Oracle, Micro Focus and Sento Corp.
Education remains an economic driver, with Utah Valley University and Brigham Young University enrolling more than 25,000 students each.
Provo is home to the largest Missionary Training Center for the Church of Jesus Christ of Latter-day Saints, which supports a large resident base.
24.42016
MEDIAN AGE:
$62,400 2016 MEDIAN
HOUSEHOLD INCOME:
DEMOGRAPHICS
U.S. Median:
37.7U.S. Median:
$57,200
590K2016
POPULATION:
Growth2016-2021*:
10.6%
163K2016
HOUSEHOLDS:
10.7%
Growth2016-2021*:
ECONOMY
METRO HIGHLIGHTS
* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau
DIVERSIFYING ECONOMYThe local economy has shifted toward technology-related companies during recent decades.
HIGHLY EDUCATED WORKFORCEMore than 36 percent of residents age 25 and older hold a bachelor’s degree, including 11 percent who also have earned a professional or graduate degree.
INTERSTATE NETWORK AND INFRASTRUCTUREInterstate 15 connects the metro to the rest of the Wasatch Front; U.S. 89 and U.S. 189 are other major arteries.
13
AREA DESCRIPTION
MARKETING TEAM
PROPERTY NAME
CREATED ON SEPTEMBER 13, 2017
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEWALMART NEIGHBORHOOD MARKET
PRICING AND VALUATION MATRIX
PROPERTY NAMEWALMART NEIGHBORHOOD MARKET
DEMOGRAPHICS
1 Miles 3 Miles 5 Miles
POPULATION2021 Projection 15,160 46,543 90,218
2016 Estimate 12,523 40,963 80,408
2010 Census 10,879 36,234 71,253
2000 Census 4,174 21,829 46,626
INCOMEAverage $82,797 $77,784 $77,846
Median $73,553 $65,865 $64,332
Per Capita $19,736 $20,952 $21,538
HOUSEHOLDS2021 Projection 3,637 12,471 24,813
2016 Estimate 2,981 11,011 22,169
2010 Census 2,551 9,644 19,423
2000 Census 966 6,019 12,928
HOUSING2016 $231,704 $215,697 $217,274
EMPLOYMENT2016 Daytime Population 7,867 32,594 71,574
2016 Unemployment 4.29% 4.36% 3.76%
2016 Median Time Traveled 22 22 22
RACE & ETHNICITYWhite 90.61% 90.95% 91.27%
Native American 0.86% 0.72% 0.62%
African American 0.44% 0.40% 0.45%Asian/Pacific Islander 0.88% 0.68% 0.62%
DEMOGRAPHICS
N E T L E A S E D D I S C L A I M E R
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 not and willnot verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no 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 information beforecompleting any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. 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 future performanceof this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.
Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine toyour 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 carefully review all legaland financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is nota guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set basedon 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 anyguarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or inwhole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conductinghis/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating areplacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potentialreplacement tenant considering the location of the property, and Buyer’s legal ability 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 of claim, cost,expense, or liability arising out of your investigation and/or purchase of this net leased property.
15
898 South 2550 East, Spanish Fork, Utah 84660
EXCLUSIVELY REPRESENTED BY:
Lior RegenstreifSenior Managing Director InvestmentsSenior Director Net Leased Properties Group
16830 Ventura Blvd., Suite 100Encino, CA 91436818.907.9525 DirectE-mail: Lior.Regenstreif@MarcusMillichap.com
IN STATE BROKER OF RECORD:
Gary Mangum36 S State St., Suite 2650Salt lake City, UT 84111801.736.2600 Direct
E-mail: Gary.Mangum@MarcusMillichap.com
top related