lowe’s & target - loopnet · 2019. 10. 17. · lowe’s & target shadow-anchored retail...

LOWE’S & TARGET SHADOW-ANCHORED RETAIL CENTERGROUND LEASE CHICK-FIL-A PAD INCLUDED

621 WOODBURY GLASSBORO ROAD

SEWELL NEW JERSEY (PHILADELPHIA MSA)ACTUAL SITE

NAP NAP

KYLE FANTSenior AssociateSRS National Net Lease Group

366 Madison Avenue, 5th FloorNew York, NY 10017D 929.229.2613 M [email protected] NY License No. 10401281546

ACTUAL SITE 2 INVESTMENT PROPERTIES GROUP

SARAH HUGHES CAFAROFirst Vice PresidentSRS National Net Lease Group


MATTHEW MOUSAVIManaging PrincipalSRS National Net Lease Group

610 Newport Center Drive, Suite 1500Newport Beach, CA 92660D 949.698.1116 M [email protected] CA License No. 01732226

BRITT RAYMONDVice PresidentSRS National Net Lease Group


Broker of Record: David Wirth, SRS Real Estate Partners -Northeast, LLCNJ License #1007635

EXCLUSIVELY MARKETED BY


PROPERTY PHOTO


SRS Investment Properties Group is pleased to offer the opportunity to acquire Mantua Square, a 100% leased, 55,403 SF retail center comprised of three separate buildings in Sewell (Mantua Township), New Jersey (Philadelphia MSA). The center features PetSmart, Dollar Tree, and Chick-Fil-A (single tenant, ground leased, drive-thru pad), and is shadow anchored by Lowe’s Home Improvement and Target (both NAP). Both Lowe’s and Target own and occupy their respective parcels. The balance of the tenant lineup includes Sally Beauty Supply, Great Clips, Advanced Physical Therapy, and Szechuan Asian Cuisine. The e-commerce resistant, varied tenant lineup of restaurants, daily needs, discount retailer, pet store, and medical use tenants promote crossover shopping within the shopping center. In addition, national brands account for over 86% of the base rental income in the center.

The subject property is ideally located along Woodbury Glassboro Road with an average of 21,500 vehicles passing per day. The site features large monument signage along Woodbury Glassboro Road. In addition, the site is located just off the 55 State Highway on/off ramp (45,200 cars per day). Mantua Square benefits from its location between major retailers Target and Lowe’s Home Improvement, who both draw customers from a wide trade area and generate significant traffic. Other notable tenants in the immediate trade area include Wendy’s, Dunkin Donuts, Verizon, and more. The site features strong demographics in the 5-mile trade with a population exceeding 138,000 residents and more than 53,000 workers. The 1-mile radius features average household incomes exceeding $132,000. Mantua, New Jersey is located 19 miles south of downtown Philadelphia, and just 15 miles from the Philadelphia International Airport.

INVESTMENT SUMMARY


PROPERTY PHOTOS


Offering

Property Specifications

PRICING $13,960,000

Price / SF: $252

NET OPERATING INCOME $977,183

CAP RATE 7.00%

MAJOR TENANTS: PetSmart Dollar Tree Chick-Fil-A (pad)

OCCUPANCY: 100%

RENTABLE AREA 55,403 SF

LAND AREA 18.39 Acres

PROPERTY ADDRESS 621 Woodbury Glassboro Road, Sewell (Mantua Township), NJ 08080

YEAR BUILT 2008

PARCEL NUMBER 10-00242-0000-00007-02

OWNERSHIP Leased Fee (Chick-Fil-A pad)Fee Simple (Remaining Center)

Parcel Map

OFFERING SUMMARY

DBF_Rentable_Area

DBF_Acres

DBF_Address

DBF_Address

DBF_Parcel

8 INVESTMENT PROPERTIES GROUP

Mantua Square | 100% Occupied | Anchored by Petsmart and Dollar Tree | Single Tenant Chick-Fil-A Pad

• 100% occupied center features a strong tenant lineup including PetSmart, Dollar Tree, and Chick-Fil-A (ground leased, drive-thru pad)

• National brands account for over 86% of the base rental income in the center• Shops tenants are Sally Beauty Supply, Great Clips, Advanced Physical

Therapy, and Szechuan Asian Cuisine

E-Commerce Resistant Tenants | Right Size Boxes• E-commerce resistant tenant lineup of restaurants, daily needs, discount

retailer, pet store, and medical uses• Provides security for an investor• PetSmart and Dollar Tree feature ideal, up to date footprint and junior box

sizing to tenant specifications

Long-Term Favorable Assumable Loan In Place• Outstanding Loan Balance as of Oct-2019 is $7,568,943• Interest Rate at 4.66% with loan Maturity in Aug 2030

Lowe’s Home Improvement and Target Shadow Anchor | Dominant Retail Corridor

• Ideal location between two major retailers Lowe’s Home Improvement and Target• Both draw customers from a wide trade area and generate significant

crossover traffic• Immediate area along Woodbury Glassboro Road is the dominant retail

corridor in the area

Located Along Woodbury Glassboro Road (21,500 VPD) | Freeway Access | Large Monument Signage

• Located along Woodbury Glassboro Road (21,500 cars per day)• In addition, the site is located just off the State Highway 55 (45,200 cars per day)• Convenient location with nearby direct on/off-ramp access

Close Proximity to Philadelphia• Mantua, New Jersey is located 19 miles south of downtown Philadelphia• Just 15 miles from the Philadelphia International Airport• Philadelphia is the sixth most populous city with a population exceeding 1.5

million

Strong Demographics | Affluent Six Figure Incomes• The affluent 1-mile radius features average household incomes

exceeding $132,000• The site features strong demographics in the 5-mile trade with a population

exceeding 138,000 residents and more than 53,000 workers

INVESTMENT HIGHLIGHTS


Location

Parking

Access

Parcel

Traffic Counts

Year Built

Improvements

Zoning

Located within Mantua Township

in Gloucester County

There are approximately 229 parking spaces

on the owned parcel. The parking ratio is

approximately 4.13 stalls per 1,000 SF of leasable area.

Glassboro Road/ County Route 553: 1 Access Point

Parcel Number: 10-00242-0000-00007-02

Acres: 18.39

Square Feet: 801,068 SF

Woodbury Glassboro Road/ County Route 553:

21,500 Cars Per Day

State Highway 55:45,200 Cars Per Day

2008

There is approximately 55,403 SF of

existing building area.

PC - Planned Commercial

PROPERTY OVERVIEW

DBF_Parking Spaces

DBF_Parking Ratio

DBF_Access_1

DBF_Access_1

DBF_Parcel

DBF_Acres

DBF_SF_Land_Area

DBF_Street 1

DBF_Street 1

DBF_Street 1 Count

DBF_Highway

DBF_Highway Count

DBF_Rentable_Area

ROWAN COLLEGE AT GLOUCESTER COUNTY

WO

ODB

URY

GLAS

SBO

RO R

OAD

/ CO

UNTY

RO

UTE

553

CARS PER DAY21,500

Mantua Blvd.

CARS PER DAY8,300


55 STATE HIGHWAY

WOODBURY GLASSBORO ROAD / COUNTY ROUTE 553

CARS PER DAY21,500

CARS PER DAY45,200

Mantua Blvd.

CARS PER DAY8,300



SEWELL ELEMENTARY

SCHOOL 55 S

TATE

HIG

HWAY

CARS PER DAY21,500

CARS PER DAY45,200

CARS PER DAY8,300


PITMAN MIDDLE SCHOOL

PITMAN HIGH SCHOOL

WASHINGTON TOWNSHIP

HIGH SCHOOL

CHESTNUT RIDGE MIDDLE SCHOOL

JEFFERSON HEALTH CARE

CENTER

55 ST

ATE H

IGHW

AY

47 S

TATE

HIG

HWAY

SEWELL ELEMENTARY

SCHOOL

ROWAN COLLEGE AT GLOUCESTER

COUNTY

GLOUCESTER COUNTY

INSTITUTE OF TECHNOLOGY

BANKBRIDGE REGIONAL

HIGH SCHOOL

COUNTY RO

UTE 553

CARS PER DAY45,200

CARS PER DAY21,500

CARS PER DAY20,600


DAZZLING NAILS

CARS PER DAY21,500


MANTUA BLVD.


SUITE NAME SQ FT

629 Szechuan Asian 1,500

631 Sally Beauty 1,500

633 Advanced Physical Therapy 1,500

635 Dollar Tree 15,000

637 Petsmart 27,403

641 Steak Out 1,625

643 Dazzling Nails 1,300

645 Great Clips 1,300

Pad Chick-Fil-A 4,275


2018 ESTIMATED POPULATION

1 Mile 3,987

3 Mile 42,056

5 Mile 138,767

2018 AVERAGE HOUSEHOLD INCOME

1 Mile $132,164

3 Mile $110,707

5 Mile $99,471

2018 ESTIMATED TOTAL EMPLOYEES

1 Mile 1,965

3 Mile 15,367

5 Mile 53,850

PHILADELPHIA33 min 18 miles

SEWELL

LOCATION MAP


Sewell, New Jersey

Sewell is an unincorporated community within Mantua Township in Gloucester County, New Jersey, United States. It is named for United States Senator William Joyce Sewell.

Sewell is served as United States Postal Service ZIP code 08080. As of the 2010 United States Census, the population for ZIP Code Tabulation Area 08080 was 37,433.

Sewell is notable for containing the Inversand marl pit, the last operational greensand mine in the world. The location has become renowned for its paleontology and is similar to many of the sites studied by early paleontologists, particularly Edward Drinker Cope. It is also home to the Barnsboro Inn, the oldest bar in New Jersey.

Sewell is also home to Rowan College at Gloucester County and the Gloucester County Institute of Technology, both located within Deptford Township. The community is a planned stop on the Glassboro–Camden Line, a proposed 18-mile (28.97 km) diesel multiple unit (DMU) light rail line.

Tall Pines State Preserve is a 111-acre (45 ha) nature preserve that opened in November 2015 as Gloucester County’s first state park and is located along the border of Deptford Township and Mantua Township. Originally a forest that was turned into an asparagus field and then a golf course, the land was preserved through the efforts of the South Jersey Land and Water Trust, the Friends of Tall Pines, Gloucester County Nature Club, and the New Jersey Green Acres Program.

Gloucester County is a county located in the U.S. state of New Jersey. As of the 2017 Census estimate, the county’s population was 292,206, making it the state’s 14th-most populous county

Gloucester County is located south of Philadelphia and northwest of Atlantic City. It is part of the Camden, New Jersey Metropolitan Division of the Philadelphia-Camden-Wilmington Metropolitan Statistical Area as well as the Delaware Valley Combined Statistical Area.

AREA OVERVIEW

DBF_City, State


Philadelphia, Pennsylvania

Philadelphia, known colloquially as Philly, is the largest city in the U.S. state and Commonwealth of Pennsylvania, and the sixth-most populous U.S. city, with a 2018 census-estimated population of 1,584,138. Since 1854, the city has been coterminous with Philadelphia County, the most populous county in Pennsylvania and the urban core of the eighth-largest U.S. metropolitan statistical area, with over 6 million residents as of 2017. Philadelphia is also the economic and cultural anchor of the greater Delaware Valley, located along the lower Delaware and Schuylkill Rivers, within the Northeast megalopolis. The Delaware Valley’s population of 7.2 million ranks it as the eighth-largest combined statistical area in the United States.

The Philadelphia area’s many universities and colleges make it a top study destination, as the city has evolved into an educational and economic hub. Philadelphia is the center of economic activity in Pennsylvania and is home to five Fortune 1000 companies. The Philadelphia skyline is expanding, with a market of almost 81,900 commercial properties in 2016, including several nationally prominent skyscrapers. Philadelphia has more outdoor sculptures and murals than any other American city. Fairmount Park, when combined with the adjacent Wissahickon Valley Park in the same watershed, is one of the largest contiguous urban park areas in the United States.

Philadelphia is the center of economic activity in Pennsylvania with the headquarters of five Fortune 1000 companies located within city limits. As of 2019, the Philadelphia metropolitan area is estimated to produce a gross metropolitan product (GMP) of $490 billion, an increase from the $445 billion calculated by the Bureau of Economic Analysis for 2017, representing the eighth largest U.S. metropolitan economy. Philadelphia was rated by the GaWC as a ‘Beta’ city in its 2016 ranking of world cities.

Philadelphia’s economic sectors include financial services, health care, biotechnology, information technology, trade and transportation, manufacturing, oil refining, food processing, and tourism. Financial activities account for the largest economic sector of the metropolitan area, which is also one of the largest health education and research centers in the United States. Philadelphia’s annualized unemployment rate was 7.8% in 2014, down from 10% the previous year. This is higher than the national average of 6.2%. Similarly, the rate of new jobs added to the city’s economy lagged behind the national job growth. In 2014, about 8,800 jobs were added to the city’s economy. Sectors with the largest number of jobs added were in education and health care, leisure and hospitality, and professional and business services. Declines were seen in the city’s manufacturing and government sectors.

AREA OVERVIEW

DBF_City, State


1 MILE 3 MILES 5 MILES

2018 Estimated Population 3,987 42,056 138,767

2023 Projected Population 4,016 42,708 141,484

2010 Census Population 3,989 41,553 135,026

Projected Annual Growth 2018 to 2023 0.15% 0.31% 0.39%

2018 Estimated Households 1,378 15,266 50,300

2023 Projected Households 1,387 15,507 51,273

2010 Census Households 1,377 15,043 48,978

Projected Annual Growth 2018 to 2023 0.13% 0.31% 0.38%

Historical Annual Growth 2010 to 2018 0.01% 0.18% 0.32%

2018 Estimated White 94.93% 90.59% 85.41%

2018 Estimated Black or African American 1.61% 4.87% 8.88%

2018 Estimated Asian or Pacific Islander 1.88% 2.81% 3.32%

2018 Estimated American Indian or Native Alaskan 0.53% 0.17% 0.19%

2018 Estimated Other Races 0.40% 0.79% 1.86%

2018 Estimated Hispanic 4.04% 3.88% 6.30%

2018 Estimated Average Household Income $132,164 $110,707 $99,471

2018 Estimated Median Household Income $100,716 $88,827 $79,264

2018 Estimated Per Capita Income $45,768 $41,075 $36,489

2018 Estimated Total Businesses 135 1,327 4,273

2018 Estimated Total Employees 1,965 15,367 53,850

AREA DEMOGRAPHICS


RENT ROLL

Pro Pro Rental Increases Lease Lease Market

Suite Tenant Name Size Rata Rent Rent Rent Rent Rata Increase Rent Rent Rent Rent Start End Rent Lease Options

# SF (SF) Monthly $/SF/Mo Annual $/SF/Yr ($) Date Inc. Monthly $/SF/Mo Annual $/SF/Yr Date Date $/SF/Yr

629 Szechuan Asian 1,500 3% $2,375 $1.58 $28,500 $19.00 3% - - - - - - Dec-11 Dec-21 $18.00 None

Cuisine

631 Sally Beauty 1,500 3% $1,500 $1.00 $18,000 $12.00 2% - - - - - - May-16 May-21 $18.00 2 (5-year)

Supply Opt 1: $13.20 sf/yr

Opt 2: $15.00 sf/yr

633 Advanced 1,500 3% $1,944 $1.30 $23,325 $15.55 2% Nov-19 2.5% $1,993 $1.33 $23,910 $15.94 Nov-11 Oct-21 $18.00 None

Physical Therapy Nov-20 2.5% $2,043 $1.36 $24,510 $16.34

635 Dollar Tree 15,000 27% $13,250 $0.88 $159,000 $10.60 15% - - - - - - Jul-10 Jul-20 $11.00 3 (5-year)

Opt 1: $11.10 sf/yr

Opt 2: $11.60 sf/yr

Opt 3: $12.10 sf/yr

637 Petsmart 27,403 49% $48,526 $1.77 $582,314 $21.25 56% - - - - - - Oct-08 Jan-24 $21.00 3 (5-year)

Opt 1: $22.25 sf/yr

Opt 2: $23.35 sf/yr

Opt 3: $24.45 sf/yr

641 Steak Out 1,625 3% $4,247 $2.61 $50,960 $31.36 5% - - - - - - Dec-08 Dec-23 $34.00 3 (5-year)

Opt 1: $35.12 sf/yr

Opt 2: $39.33 sf/yr

Opt 3: $44.05 sf/yr

643 Dazzling Nails 1,300 2% $3,868 $2.98 $46,410 $35.70 4% - - - - - - Nov-08 Nov-23 $34.00 1 (5-year)

Opt 1: $41.05 sf/yr

The above information has been obtained from sources we believe to be reliable, however we cannot accept responsibility for its correctness.


RENT ROLL

Pro Pro Rental Increases Lease Lease Market

Suite Tenant Name Size Rata Rent Rent Rent Rent Rata Increase Rent Rent Rent Rent Start End Rent Lease Options

# SF (SF) Monthly $/SF/Mo Annual $/SF/Yr ($) Date Inc. Monthly $/SF/Mo Annual $/SF/Yr Date Date $/SF/Yr

645 Great Clips 1,300 2% $3,582 $2.76 $42,978 $33.06 4% - - - - - - Feb-09 Feb-24 $34.00 1 (5-year)

Opt 1: $38.02 sf/yr

Pad Chick-Fil-A 4,275 8% $7,792 $1.82 $93,500 $21.87 9% Nov-22 10.0% $8,571 $2.00 $102,850 $24.06 Oct-11 Oct-26 $22.00 4 (5-year)

(ground lease pad) Opt 1: $26.20 sf/yr

Opt 2: $28.83 sf/yr

Opt 3: $31.71 sf/yr

Opt 4: $34.88 sf/yr

Total Occupied 55,403 100% $87,082 $1.57 $1,044,987 $18.86 100%

Total Vacant 0 0% $0 $0 0%

Total / Wtd. Avg: 55,403 100% $87,082 $1.57 $1,044,987 $18.86 100%

Notes1) Sally Beauty Co-Tenancy: If less than 50% of Shopping Center's GLA is not opening for business, tenant may pay 3% of Gross Receipts as base rent.

2) Dollar Tree Co-Tenancy: If Petsmart or its successors vacates, tenant may begin immediately paying 3% of Gross Sales (capped at 50% of all rents due) as alternate rent. If 80% of co-tenancy space remains vacant for a 6-month consecutive period, tenant must terminate or resume paying base rent.

3) Dollar Tree Option: Must notify 6 months before expiration of lease term.4) Petsmart Co-Tenancy: If a) Lowe's, Target, or their replacement tenants are not operating or b) 30% of the GLA (includes Lowe's and Target buildings), Tenant may pay 50% of base rent as alternate rent. If co-tenancy is not cured for a 1-year period, tenant may terminate the lease with 90 day notice. Additionally, if co-tenancy is not cured within an 18-month period, tenant must terminate the lease or resume paying base rent.



REIMBURSEMENT SUMMARY

Pro

Suite Tenant Name Size Rata Prop. Ins. CAM Mngmt. Admin Reimbursement Reimbursement Notes

# SF (SF) Taxes Fee PSF Annual

629 Szechuan Asian 1,500 2.71% Net Net Net Net 15% $7.18 $10,773 15% Admin on CAM and Insurance.

631 Sally Beauty 1,500 2.71% Net Net Net Net 0% $6.80 $10,195 Full pass-through.5% annual cumulative cap (excluding snow and utilities) over 1st year actuals.

Cap is not being hit per 2018 CAM Rec.

633 Advanced Physical Therapy

1,500 2.71% Net Net Net Net 15% $7.18 $10,773 15% Admin on CAM and Insurance.

635 Dollar Tree 15,000 27.07% Net Net Net None 10% $4.68 $70,256 Pays pro-rata share of expenses based on 12,000 SF as opposed to 15,000.CAM cap of 105% over previous year (excluding snow and property insurance).

10% admin fee (excluding insurance and taxes).CAM cap for the year 2019 is at $14,007.

637 Petsmart 27,403 49.46% Net Net Net None 10% $6.06 $166,070 Does not reimburse for management fee, roof, or fire. 10% admin on CAM excluding utilities, sign, common rd, and stormwater

maintenance.641 Steak Out 1,625 2.93% Net Net Net Net 0% $6.80 $11,044 Full pass-through.

643 Dazzling Nails 1,300 2.35% Net Net Net Net 0% $6.80 $8,836 Full pass-through

645 Great Clips 1,300 2.35% Net Net Net Net 0% $6.80 $8,836 Full pass-through.

Pad Chick-Fil-A 4,275 7.72% Net Net Net None 5% $5.73 $24,514 5% admin in lieu of management (excluding real estate taxes). 5% cap on CAM over the previous year (excluding snow, utilities and liability

insurance). CAM cap for the year 2019 is at $3,770.

NAP Lowe's - - - - See Note - 0% - $25,394 Tenant pays 89% of Water Tank Maint, 75.1% of Stormwater, Sewer Lift and Common Road Maint and 36.43% of Inversand Stormwater maint.

NAP Target - - - - See Note - 5% - $2,433 Tenant pays 51.5% of inversand stormwater repairs and maintenance, 5% admin.

Total Occupied 55,403 100% $6.30 $349,124 86%Total Vacant 0 0% $0.00 $0 0%

Total / Wtd. Avg: 55,403 100% $6.30 $349,124 86%$7.31 $404,863 100%

Total OccupiedTotal Vacant

Total ReimbursementTotal Operating Expenses


CASH FLOW

Price / SF Annualized Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 For the Years Ending Mo 1 Annualized Oct-19 Sep-2020 Sep-2021 Sep-2022 Sep-2023 Sep-2024 Sep-2025 Sep-2026 Sep-2027 Sep-2028 Sep-2029 Sep-2030 ___________ ___________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Potential Gross Revenue Base Rental Revenue $18.86 $1,044,987 $1,046,773 $1,054,222 $1,059,370 $1,060,896 $1,095,829 $1,112,621 $1,121,631 $1,142,309 $1,145,492 $1,181,932 $1,202,546 Absorption & Turnover Vacancy $0.00 0 0 0 (9,548) 0 0 0 0 (11,069) 0 (15,127) 0 ___________ ___________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Scheduled Base Rental Revenue $18.86 1,044,987 1,046,773 1,054,222 1,049,822 1,060,896 1,095,829 1,112,621 1,121,631 1,131,240 1,145,492 1,166,805 1,202,546 Expense Reimbursement Revenue $6.30 349,182 349,182 359,896 366,285 381,057 392,915 405,061 417,554 426,310 443,770 454,563 471,830 ___________ ___________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Potential Gross Revenue $25.16 1,394,169 1,395,955 1,414,118 1,416,107 1,441,954 1,488,744 1,517,681 1,539,184 1,557,550 1,589,262 1,621,368 1,674,376 General Vacancy ($0.24) (13,534) (13,561) (13,706) (9,325) (14,153) (15,083) (15,500) (15,734) (10,677) (16,206) (12,664) (17,712) ___________ ___________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Effective Gross Revenue $24.92 1,380,634 1,382,394 1,400,412 1,406,782 1,427,801 1,473,661 1,502,182 1,523,450 1,546,872 1,573,056 1,608,704 1,656,663 ___________ ___________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Operating Expenses Property Taxes $4.23 234,289 234,289 241,318 248,557 256,014 263,694 271,605 279,753 288,146 296,790 305,694 314,865 Insurance $0.41 22,467 22,467 23,141 23,835 24,550 25,287 26,045 26,827 27,632 28,461 29,314 30,194 CAM $1.93 106,983 106,983 110,192 113,498 116,903 120,410 124,023 127,743 131,576 135,523 139,589 143,776 Management $0.75 41,419 41,472 42,012 42,203 42,834 44,210 45,065 45,703 46,406 47,192 48,261 49,700 ___________ ___________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Operating Expenses $7.31 405,158 405,211 416,664 428,094 440,301 453,601 466,739 480,027 493,759 507,965 522,858 538,535 ___________ ___________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Net Operating Income $17.61 975,476 977,183 983,749 978,688 987,500 1,020,060 1,035,443 1,043,423 1,053,113 1,065,091 1,085,846 1,118,129 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ ___________ Leasing & Capital Costs Tenant Improvements - 0 0 0 31,827 0 0 0 0 36,896 0 33,924 Leasing Commissions - 0 0 0 11,406 0 0 0 0 13,222 0 22,964 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Leasing & Capital Costs - 0 0 0 43,233 0 0 0 0 50,119 0 56,888

Debt Service - (477,002) (477,002) (477,002) (477,002) (477,002) (477,002) (477,002) (477,002) (477,002) (477,002) (477,002) __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Cash Flow After Debt Service - 498,474 500,181 506,747 458,453 510,498 543,058 558,441 566,421 525,992 588,089 551,956& Before Taxes =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== ===========

Occupancy TrendsAverage Physical Occupancy - 55,403 55,403 54,903 55,403 55,403 55,403 55,403 54,903 55,403 55,062 55,403Average Physical Occupancy - % - 100.00% 100.00% 99.10% 100.00% 100.00% 100.00% 100.00% 99.10% 100.00% 99.38% 100.00%

Cap Rate - 6.99% 7.00% 7.05% 7.01% 7.07% 7.31% 7.42% 7.47% 7.54% 7.63% 7.78%Cash/Cash - 7.80% 7.83% 7.93% 7.17% 7.99% 8.50% 8.74% 8.86% 8.23% 9.20% 8.64%



CASH FLOW

PRICING

Purchase Price: $13,960,000

Price PSF: $252

Year 1 NOI: $977,183

Year 1 Cap: 7.00%

Year 1 C/C: 7.83%

Leveraged IRR: 11.24%

Unleveraged IRR: 8.16%

EXISTING LOAN (LIFECO) - MUST BE ASSUMED

Outstanding Loan Balance (Oct-2019): $7,568,943 54%

Down Payment: $6,391,057 46%

Payment (annual): ($477,002)

Interest Rate: 4.66%

Loan Constant: 6.30%

Amortization Period: 30 years

Maturity: Aug 2030

Est. Prepay. Penalty (Oct 2019) $1,782,848

SALEExit Price: $15,973,000

Exit Cap: 7.00%

Loan Balance at Sale: $6,166,776

Est. Prepay. Penalty $105,035

10-YEAR HOLD YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10

Purchase Price (13,960,000)

Loan Amount 7,568,943

Cash Flow 500,181 506,747 458,453 510,498 543,058 558,441 566,421 525,992 588,089 551,956

OLB at Sale (6,166,776)

Sale Price 15,973,000

Prepayment (105,035)

Total Cash Flow (6,391,057) 500,181 506,747 458,453 510,498 543,058 558,441 566,421 525,992 588,089 10,253,145

Loan Notes:1) Prepayment Penalty is equal to the greater of a) 1% of OLB or b) the net present value of principal payments, interest payments, and balloon payments discounted at a rate equal to the Treasury Constant Maturity Nominal 10 on a monthly basis - contact Agent for specific details.2) For this analysis we used an estimated discount rate of 2.00% for Oct 2019 and 3.00% for Oct 2029.


ASSUMPTIONS

MARKET ASSUMPTIONS SHOPS TENANTS ANCHOR TENANTS

Market Rent See Rent Roll See Rent Roll

Rental Increases 3% Annual 10% every 5-years

Lease Term 5 Years 10 Years

Rental Abatements None None

Renewal Probability 75% 75%

Vacant Space Turnover 6 Months 9 Months

Expense Recapture NNN, incl. mgmt. NNN, no mgmt.(admin fees same as previous)

Tenant Improvements (PSF)

New / Renewal $10 / $0 $10 / $0

Leasing Commissions

New / Renewal 6% / 3% 6% / 3%

GENERAL INFORMATION AE 11.8

Analysis Start Date 10/1/2019

Term 10 Years

Inflation 3%

Market Rent Growth 3%

General Vacancy 5% *

Expense Growth 3%

Property Tax Growth 3%

NOTES

1) *General vacancy excludes PetSmart, Dollar Tree, and Chick-Fil-A.

2) All expenses are per the 2019 budget. Management fee estimated at 3% EGI.

3) All tenants assumed to exercise option periods as noted on the rent roll.

REPRESENTATIVE PHOTO 26 INVESTMENT PROPERTIES GROUP

www.PetSmart.comCompany Type: PrivateLocations: 1,600+

PetSmart, Inc. is the largest specialty pet retailer of services and solutions for the lifetime needs of pets. The company offers consumables, such as pet food, treats, and litter; and hardgoods, which include pet supplies and other goods comprising collars, leashes, health care supplies, grooming and beauty aids, toys, apparel, and pet beds and carriers, as well as aquariums and habitats, accessories, décor, and filters for fish, birds, reptiles, and other small pets. The company employs approximately 55,000 associateand operate more than 1,600 pet stores in the United States, Canada and Puerto Rico as well as more than 200 in-store PetSmart PetsHotel dog and cat boarding facilities.

Company Type: Public (NASDAQ: DLTR)2018 Employees: 56,3002018 Revenue: $22.25 Billion2018 Net Income: $1.71 Billion2018 Assets: $16.33 Billion2018 Equity: $7.18 BillionCredit Rating: S&P: BBB-Credit Rating: Moody’s: Baa3Dollar Tree Stores, Inc. owns and operates a chain of discount variety stores in the United States. Its stores offer housewares, glassware, dinnerware, cleaning supplies, candies, snacks, foods, health and beauty products, toys, gifts, gift bags and wraps, party supplies, stationery, craft supplies, teaching supplies, books, seasonal décor items, and more. The company also sells products online. It was formerly known as Only $1.00 Inc. and changed its name to Dollar Tree Stores, Inc. in January 1993. Dollar Tree, a Fortune 200 Company, now operates 15,000 stores across 48 states and five Canadian provinces as of August 2, 2018. Stores operate under the brands of Dollar Tree, Family Dollar and Dollar Tree Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

PetSmart Dollar Tree

BRAND PROFILE


Great Clips

BRAND PROFILE

www.chick-fil-a.comCompany Type: PrivateLocations: 2,300+

Chick-fil-A, Inc. owns, operates, and franchises a chain of quick-service chicken restaurants in the United States. Its restaurant concepts include mall/in-line restaurants; stand-alone restaurants; drive-thru only outlets; full-service restaurants; non-traditional outlets; and satellite/lunch-counters. The company also includes a ‘50s diner-themed concept frill restaurant; and a restaurant concept that offers fresh seafood items, as well as other Hawaii-inspired dishes. In addition, it offers catering services. Chick-fil-A serves freshly prepared food in more than 2,300 restaurants in 47 states and Washington, D.C. The company was founded in 1946 and is based in Atlanta, Georgia.

Chick-fil-A

www.greatclips.comCompany Type: PrivateLocations: 4,200+

Great Clips, Inc. operates a chain of salons in the United States and Canada. It offers an online check-in service, which enables customers to add their name to the wait list of a Great Clips salon before they arrive. The company offers daily care and styling products for men, women, and kids. The company also provides hair care products, including conditioners, detanglers, gels, hair sprays/spritzes, mousses/foams, shampoos, shines, smoothing/straightening products, texturizers, specialty products, thermal protectants, hair treatments, and volumizers; and body care products. It franchises its business. Great Clips, Inc. was founded in 1982 and is based in Minneapolis, Minnesota.


Company Type: Public (NYSE: SBH)2017 Employees: 14,0352017 Revenue: $3.94 Billion2017 Net Income: $215.08 Million2017 Assets: $2.12 BillionCredit Rating: S&P: BB-Credit Rating: Moody’s: Ba1

Sally Beauty Holdings, Inc., together with its subsidiaries, operates as a specialty retailer and distributor of professional beauty supplies. The company operates through two segments, Sally Beauty Supply and Beauty Systems Group. The Sally Beauty Supply segment offers beauty products, including hair color and care, skin and nail care, beauty sundries, and styling tools for retail customers and salon professionals. The company also distributes its products through full-service/exclusive distribution, open-line distribution, and direct and mega-salon stores. Sally Beauty Holdings, Inc. was founded in 1964 and is headquartered in Denton, Texas.

Sally Beauty

BRAND PROFILE

www.advancedphysicaltherapyofsj.comCompany Type: PrivateLocations: 4

Advanced Physical Therapy Services, P.C. provides healthcare services. The Company offers physical and hand therapy, work conditioning, women’s healthcare, fitness center, employer worksite solutions, sports medicine, and specialty services. Advanced Physical Therapy Services serves customers in the United States.

advanced physical therapy

RETAIL PROFESSIONALS

OFFICES LARGEST REAL ESTATE SERVICES FIRMin North America

exclusively dedicated to retail

RETAIL LISTINGSin 2018

TRANSACTION VALUEin 2018

275+ 25+ #1 1500+ $2.6B

SRS INVESTMENT PROPERTIES GROUP IS THE EXCLUSIVE NET LEASE CAPITAL MARKETS TEAM OF SRS REAL ESTATE PARTNERS.

This Offering Memorandum has been prepared by SRS Investment Properties Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made

available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not

purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified

purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.

*Statistics are for 2018

SRSRE.COMACTUAL SITE

lowe’s & target - loopnet · 2019. 10. 17. · lowe’s & target shadow-anchored retail...

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