marketplace - matthews...lic. no. 01890271 (ca) ... offering summar y matthews real estate...

M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 1

M A R K E T P L A C E

9 1 0 G r e a t B r i d g e B l v d . C h e s a p e a k e , V A

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

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


E X C L U S I V E LY L I S T E D B Y

KYLE MATTHEWS BROKER OF RECORD LIC NO. 22602771

JORDAN POWELL ASSOCIATE SHOPPING CENTERS

Di rect 214 .692 .2160 Mobi le 916 .844 .6454 jo rdan .powel [email protected] L ic . No . 01982070 (CA)

EL WARNER EVP & NATIONAL DIRECTOR SHOPPING CENTERS

Di rect 949 .873 .0507 Mobi le 858 .752 .3078 e l [email protected] L ic . No . 01890271 (CA)

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E X E C U T I V E S U M M A R Y04 |

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

P R O P E R T Y O V E R V I E W

A R E A O V E R V I E W

T E N A N T O V E R V I E W S


S E C T I O N 1

E X E C U T I V E S U M M A R Y




O F F E R I N G S U M M A R Y Matthews Rea l Estate Investment Serv ices i s p leased to present the fee s imple sa le of Domin ion Marketp lace, a Food L ion anchored shopping center located in Chesapeake, Vi rg in ia . Located just of f US 17 , Domin ion Marketp lace i s synerg ist ica l ly pos i t ioned to serve the demands of the surrounding res ident ia l ne ighborhoods . Food L ion has anchored th is center for near ly 27 years and the se l ler recent ly spent $397,000 on cap i ta l improvements to the shopping center.

Th is of fer ing i s a t remendous opportun i ty to acqu i re a recent ly renovated grocer y-anchored shopping center w i th long anchor lease term in p lace w i th synerg ist ic in- l ine tenancy.

I N V E S T M E N T H I G H L I G H T S

GROCERY ANCHORED CENTERFood L ion has operated AT th is locat ion s ince November 1990. Food L ion corporate has recent ly shown interest in an exter ior renovat ion to further improve the shop space and show commitment to the locat ion .

RECENTLY RENOVATED Food L ion and Fresen ius rece ived new roofs in ear ly 2017. Addit iona l ly , the se l ler spent $225,000 to repave and sea l the park ing lot .

LONG ANCHOR LEASE TERM WITH AT TRACTIVE INCREASESFood L ion recent ly extended the i r lease for an add i t iona l 10-year term unt i l November 2026. Th is lease features f ixed 5 .00% increases throughout the opt ion per iods .

SYNERGISTIC TENANT LINE-UPGreat synergy amongst the in- l ine shops featur ing Fresen ius Medica l , Fami ly Dol lar as we l l as add i t iona l e-commerce proof tenancy.

LOCATED ALONG US 17 & PROXIMATE TO I-64, I-464Traff ic counts exceed 41 ,000 veh ic les per day on US 17 . Addit iona l ly , located just 1 mi le f rom the I-64 with t raf f ic counts exceeding ±53,000 VPD and on ly 2 mi les f rom I-464 with t raf f ic counts exceeding ±87,000 VPD.

EXCELLENT DENSIT YGrowing community w i th over 180,000 res idents w i th in the 5-mi le rad ius w i th pro ject ions to increase to ±193,000 res idents by 2022.


Price $5,575,000

Propery Size (NRA) 75,506

Price Per SF $74

Investment Returns

In Place Cap Rate 8.25%

Hypothetical Stabilized Cap Rate 8.78%

Cash on Cash - Yr1 11.51%

Equity Required

Equity $1,624,376

Debt $3,955,000

Debt

LTV 71%

Loan Amount $3,955,000

Interest Rate 4.85%

Amortization 25 Years

Monthly Debt Service $22,776

Annual Debt Service $273,315

BTCF - In Place $186,984

BTCF - Stabilized $216,570

Premise

In Place Income $460,299

Stabilized Income $489,884

Building SF 75,506

F I N A N C I A L S U M M A R Y

Original Loan Amount $3,955,000

Origination Date 11/30/2015

Loan Maturity Date 11/6/2025

Interest Rate 4.85%

Original Amortization 25

Interest Only Period 2 mos

Remaining I/O Period 0

Remaining Amortization 22.5 years

Term 10

Remaining Term 7.5 years

Monthly Payment $23,957

Annual Payment $287,481

Loan Assumable 1% assumption fee

Open Preyament Date Sep-25

E X I S T I N G L O A N D E T A I L S

M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 7M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 7


S E C T I O N 2

F I N A N C I A LO V E R V I E W




Unit Tenant Lease Start

Lease End

SquareFeet

% of GLA

Contract Rental Rate Rent Per Sq. FtRent Increases Options

Year Month Year Month

0 Nextel Communications Aug-98 Aug-18 0 0.0% $2,400 $200 0 1 x 5 yr

1 Fresenius Medical Care Feb-05 Jan-20 8,000 10.6% $134,900 $11,242 $16.86 $1.41 Mar-18

Mar-19$138,273$141,730 2 x 5 Yr

3 Sonya Webb, DDS Jul-02 May-20 2,700 3.6% $40,500 $3,375 $15.00 $1.25

5, 9 Soup du Juor May-16 Oct-19 2,540 3.4% $32,817 $2,735 $12.92 $1.08

10 Agnes Executive Barber Salon Apr-98 Feb-21 900 1.2% $15,000 $1,250 $16.67 $1.39

11 Beauty Forever Mar-02 May-18 2,100 2.8% $25,725 $2,144 $12.25 $1.02

13 Nail Elegance Jul-02 Sep-18 900 1.2% $16,830 $1,403 $18.70 $1.56

14 Vacant 900 1.2% $9,000 $750 $10.00 $0.83

15 Professional Touch Aug-99 Jan-18 1,200 1.6% $18,000 $1,500 $15.00 $1.25

16 Vacant 900 1.2% $9,000 $750 $10.00 $0.83 10% increases each option 2 x 3 yr

17 Family Dollar Dec-90 Dec-19 6,600 8.7% $40,000 $3,333 $6.06 $0.51 Jan-20 $44,000 1 x 5 yr

18 Food Lion Nov-90 Nov-26 41,106 54.4% $247,978 $20,665 $6.03 $0.50

Nov-19Nov-26Nov-31Nov-36Nov-41Nov-46

$260,377$272,776$285,175$297,574$309,939$322,271

5 x 5 yr

20 #1 Chinese Restaurant May-92 May-22 1,000 1.3% $17,196 $1,433 $17.20 $1.43

21 Vacant 1,535 2.0% $15,350 $1,279 $10.00 $0.83

22 Vacant 2,725 3.6% $24,500 $2,042 $8.99 $0.75

24 Vacant 2,400 3.2% $21,575 $1,798 $8.99 $0.75

Occupied Totals - In Place 67,046 88.8% $600,346 $50,029 $8.95 $0.75

Vacant Totals 8,460 11.2% $70,425 $5,868.75 $8.32 $0.69

Totals 75,506 100.0% $670,771 $55,898 $8.88 $0.74

R E N T R O L L

1 0 | O F F E R I N G M E M O R A N D U M

In Place Stabilized

Total $/SF Total $/SFIncome

Rental Income $600,346 $7.95 $670,771 $8.88

Other Income $0 $0.00 $0 $0.00

Expense Reimbursements $146,967 $1.95 $151,376 $2.00

Vacancy Factor (5%) $0.00 ($41,107) ($0.54)

Effective Gross Income $747,313 $9.90 $781,040 $10.34 Expenses

Real Estate Taxes $60,271 $0.80 $62,079 $0.82

Property Insurance $32,000 $0.42 $32,000 $0.42

CAM/R&M $168,588 $2.23 $173,646 $2.30

Management $26,156 $0.35 $23,431 $0.31

EGI (%) 3.50% 3.00%

Non-Reimbursable Expenses $0.00 $0.00

Operating Expenses $287,015 $3.80 $291,156 $3.86

Net Operating Income $460,299 $6.10 $489,884 $6.49

Operating Expense Ratio 38% 37%

I N C O M E & E X P E N S E SYear Ending Sq. Ft. Annual % of

TotalAggregate %

of Total1 Dec-17 6,700 8.87% 8.87%

2 Dec-18 3,000 3.97% 12.85%

3 Dec-19 9,140 12.10% 24.95%

4 Dec-20 8,000 10.60% 35.55%

5 Dec-21 0 0.00% 35.55%

6 Dec-22 0 0.00% 35.55%

7 Dec-23 0 0.00% 35.55%

8 Dec-24 0 0.00% 35.55%

9 Dec-25 0 0.00% 35.55%

10 Dec-26 41,106 54.44% 89.99%

Total 67,946 89.99%

L E A S E E X P I R A T I O N S C H E D U L E

0%

20%

40%

60%

80%

100%

1 2 3 4 5 6 7 8 9 10

Year

10-YearRollover

Annual%ofTotal

Aggregate %ofTotal

M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 1 1M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 1 1


S E C T I O N 3

P R O P E R T YO V E R V I E W



M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 1 3

Property Name Dominion Marketplace

Address 910 Great Bridge Blvd

Location Chesapeake, VA

Cross Street Dominion Blvd N

Square Footage (GLA) ±75,506

Land Area ±401,449 SF (±9.22 Acres)

APN(s) 0360000000672

Year Built / Renovated 1990/2017

Type of Ownership Fee Simple

Zoning B-1 & B-4

Number of Stories 1

Parking 395

Parking Ratio 5.23 : 1,000

P H Y S I C A L D E S C R I P T I O N

PA R C E L M A P



A E R I A L T E N A N T M A P

Great Bridge Blvd ±13,000 ADT

Donimion Blvd N ±41,000 ADT


A E R I A L T E N A N T M A P

Dom

inio

n Bl

vd N

±41

,000

ADT

Oak Grove Connector ±61,000 ADT


S E C T I O N 4

A R E AO V E R V I E W




C H E S A P E A K E , V A Chesapeake i s an independent c i ty in the Commonweal th of Vi rg in ia . The populat ion was est imated to be 232,977, making i t the th i rd-most populous c i ty in Vi rg in ia . Chesapeake i s inc luded in the Vi rg in ia Beach–Norfo lk–Newport News, VA–NC MSA. One of the c i t ies in the South Hampton Roads . Chesapeake i s the second-largest c i ty by land area in the Commonweal th of Vi rg in ia .

Chesapeake i s a d iverse c i ty in which a few urban areas are located; i t a l so has many square mi les of protected farmland, forests , and wet lands , inc lud ing a substant ia l port ion of the Great Dismal Swamp Nat iona l Wi ld l i fe Refuge. Because of i t s locat ion and h ighway network , Chesapeake prov ides easy access to severa l other c i t ies in the Tidewater reg ion inc lud ing Vi rg in ia Beach, Norfo lk and Newport News, a l l of wh ich are less than an hour away. Chesapeake i s located on the At lant ic Intracoasta l Waterway. It has mi les of waterfront industr ia l , commerc ia l and res ident ia l property. Chesapeake i s a l so rated by the FBI as one of the top f ive safest c i t ies of i t s s i ze in the U.S. , and Money magaz ine proc la imed i t as one of the s ix best p laces in Amer ica to l i ve .

3 R D $76,689M O S T P O P U L O U SC I T Y I N V I R G I N I A

2 0 1 7 E S T . A V GH O U S E H O L D I N C O M E

TOP 50 ±193,169I N U S A E M P L O Y M E N T

G R O W T H R A T E2 0 2 2 P O P U L A T I O N

P R O J E C T I O N

Population 1 Mile 3 Mile 5 Mile2022 Projection 10,736 62,582 193,169

2017 Estimate 9,950 58,646 183,696

2010 Census 8,812 52,948 170,313

Growth 2017 - 2022 7.90% 6.71% 5.16%

Growth 2010 - 2017 12.91% 10.76% 7.86%

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

Households 1 Mile 3 Mile 5 Mile2021 Projection 4,303 23,873 72,107

2017 Estimate 3,984 22,399 68,360

2010 Census 3,510 20,264 62,850

Growth 2010 - 2017 13.50% 10.54% 8.77%

Growth 2017 - 2022 8.01% 6.58% 5.48%

Households 1 Mile 3 Mile 5 Mile2017 Est. Average Household Income $76,806 $76,356 $76,689

2017 Est. Median Household Income $65,766 $64,087 $ 63,341


±22 Miles ±7 Miles

±32 Miles


E C O N O M YChesapeake i s convenient ly located w i th in 750 mi les of two-th i rds of the nat ion’s populat ion and industr ia l product ion. The c i ty has a d iverse bus iness economy with companies f rom 17 d i f ferent nat ions w i th a mot ivated, capab le workforce rep len ished each year by approx imate ly 30,000 ex i t ing mi l i tar y serv ice members and graduat ing co l lege students . As a reg iona l t ransportat ion hub compr ised of h ighways , ra i l serv ice , internat iona l a i r serv ice , i t i s one of the most important commerc ia l sh ipp ing ports wor ldwide .

S ince 2003, Chesapeake’s employment growth rate has been among the top 50 nat iona l ly . The tota l number of employers has increased by more than double the nat iona l average. The number of workers has increased by more than 12 percent , and tota l wages have t r ip led the nat iona l average.

• Top 10 in labor product iv i ty

• Hal f a mi l l ion students enro l led in more than 93 in-state inst i tut ions of h igher educat ion

• 25,000 doctora l sc ient i s ts and eng ineers res id ing in the state – one of the h ighest concentrat ions in the countr y

R E G I O N A L M A P

L O C A L M A P




P O I N T S O F I N T E R E S T

A L B E M A R L E A N D C H E S A P E A K E C A N A LThe Albemar le and Chesapeake Cana l was bu i l t by a corporat ion in 1856-1860 to af ford in land nav igat ion between the Chesapeake Bay and the Albemar le Sound. It i s rea l ly two cana ls , th i r ty mi les apart , one e ight and one-ha l f mi les long, connect ing the El i zabeth River w i th the North Landing River in Vi rg in ia , and the other f i ve and one-ha l f mi les long, connect ing the Curr i tuck Sound wi th the North River in North Caro l ina .

C H E S A P E A K E A R B O R E T U MChesapeake Arboretum is a non-prof i t , 47-acre arboretum located in the heart of Chesapeake. It i s open da i ly w i thout charge . The arboretum current ly cons ists of a t ra i l system, farmhouse, and theme and demonstrat ion gardens . “Nature’s Classroom” promotes hort icu l tura l and env i ronmenta l awareness through d isp lays , educat ion, and research. Dedicated at i t s current s i te in November 1996, i t boasts one of Vi rg in ia’ s f inest t ra i l systems that wanders through a mature hardwood forest w i th many var iet ies of t rees and p lants .

G R E AT D I S M A L S WA M P N AT I O N A L W I L D L I F E R E F U G EThe Great Dismal Swamp Nat iona l Wi ld l i fe Refuge was created in 1974 to he lp protect and preserve a port ion of the Great Dismal Swamp. The refuge i s essent ia l to the swamp ecosystem are i t s water resources , nat ive vegetat ive communit ies , and var ied w i ld l i fe spec ies . The Great Dismal Swamp’s eco log ica l s ign i f icance and i ts wea l th of h i s tor y and lore make i t a un ique wi lderness . It i s one of the last l a rge w i ld areas remain ing in the Eastern United States . Vis i tor act iv i t ies inc lude b i rdwatch ing, photography, h ik ing, b icyc l ing, boat ing and canoe ing (a boat- launching ramp, offer ing access to Lake Drummond, i s prov ided onto the Feeder Ditch, at the eastern edge of the refuge) , f i sh ing, and deer hunt ing on parts of the refuge dur ing the des ignated season. Camping i s permitted at a camps i te mainta ined by the Army Corp of Eng ineers on the feeder d i tch cana l c lose to Lake Drummond.


S E C T I O N 5

T E N A N TO V E R V I E W S



T E N A N T O V E R V I E W S

Food L ion LLC is a grocer y store company headquartered in Sa l i sbur y, North Caro l ina , that operates more than 1 ,100 supermarkets in 10 states of the Southeastern United States . Ahold Delha ize i s the parent company of Food L ion and one of the wor ld ’ s l a rggest food reta i l groups . They are madeup of 21 loca l brands that serve over 50 mi l l ion shoppers week ly in 1 1 d i f ferent countr ies .

Ownership Public

Annual Sales $3.42B

Fami ly Dol lar of fers a compel l ing mix of merchandise for the whole fami ly. Rang ing f rom an expanded assortment of refr igerated and f rozen foods and hea l th and beauty i tems to home décor and seasona l i tems, Fami ly Dol lar of fers the lowest poss ib le pr ice , the name brand, and qua l i ty pr ivate-brand merchandise customers need and use ever y day.

Fresen ius Medica l Care Hold ings , operat ing as Fresen ius Medica l Care North Amer ica or FMCNA, operates a network of some 2,100 d ia lys i s c l in ics located throughout the cont inent . One of the largest prov iders of k idney d ia lys i s serv ices , FMCNA offers outpat ient and in-home hemodia lys i s t reatments for chron ic k idney d isease .

Ownership Public

Annual Sales $10.49B

Ownership Public

Annual Sales $10.37B

2 1


Tenant Legal Name Food Lion, LLC, a North Carolina limited liability companyDBA Food LionSquare Feet ±41,106Term Twenty (20) YearDate of Lease October 9, 1989Lease Commencement November 3, 1990Lease Expiration November 18, 2026Ownership Fee SimpleCurrent Annual PSF $6.03Percentage Rent The amount, if any, by which one percent (1.00%) of annual gross receipts exceeds the fixed rentRenewal Options Five (5) Five (5) YearRent $247,978

Rental Increases

11/19/2019 - $260,37711/19/2026 - $272,77611/19/2031 - $285,17511/19/2036 - $297,57411/19/2041 - $309,93911/19/2046 - $322,271

Property Taxes Tenant pays pro-rata shareInsurance Tenant pays pro-rata shareCAM FixedUtilities Tenant agrees to pay all charges for telephone, electricity, water, gas and other utilities used by Tenant on the demised premises.Admin Fee None

Repairs & Maintenance Tenant - to keep the interior of the demised premises in good condition and repair, including all repairs, maintenance and replacement of heating, ventilation, and air conditioning (including windows, plate glass and doors).

Co-Tenancy N/A

Assignment and Subletting Tenant may (which consent shall not be unreasonably withheld or delayed), assign this lease, or sublease the demised premises.

Restrictions & Exclusives

Exclusive - Supermarket, convenience food store

Restriction - Landlord agrees that without prior consent of the Tenant no restaurant, theatre, health spa, skating rink, bowling alley, or other health recreational or entertainment-type activity and no establishment which sells alcoholic beverages for on-premises consumption shall be permitted to operate within the boundaries of Exhibit “”A”” and any out parcels thereto in a location nearer than five hundred (500) feet to Tenant’s building.

Right of First Refusal None

F O O D L I O N L E A S E A B S T R A C T

M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 2 3M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 2 3

This Offer ing Memorandum conta ins se lect informat ion perta in ing to the bus iness and af fa i rs of Domin ion Marketp lace located at 910 Great Br idge Blvd , Chesapeake, VA 23320 (“Property”) . It has been prepared by Matthews Reta i l Adv isors . Th is Offer ing Memorandum may not be a l l- inc lus ive or conta in a l l of the informat ion a prospect ive purchaser may des i re . The informat ion conta ined in th is Offer ing Memorandum is conf ident ia l and furn ished so le ly for the purpose of a rev iew by a prospect ive purchaser of the Property. It i s not to be used for any other purpose or made ava i lab le to any other person wi thout the wr i t ten consent of Se l ler or Matthews Reta i l Adv isors . The mater ia l i s based in part upon informat ion supp l ied by the Se l ler and in part upon f inanc ia l informat ion obta ined f rom sources i t deems re l iab le . Owner, nor the i r of f icers , employees , or agents makes any representat ion or warranty, express or impl ied , as to the accuracy or completeness of th is Offer ing Memorandum or any of i t s contents and no lega l l i ab i l i ty i s assumed or sha l l be impl ied w i th respect thereto . Prospect ive purchasers shou ld make the i r own pro ject ions and form the i r own conc lus ions w i thout re l iance upon the mater ia l conta ined here in and conduct the i r own due d i l igence.

By acknowledg ing your rece ipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l ho ld i t and t reat i t in the st r ictest of conf idence; and

3. You wi l l not , d i rect ly or ind i rect ly, d i sc lose or permit anyone e lse to d isc lose th is Offer ing Memorandum or i t s contents in any fash ion or manner detr imenta l to the interest of the Se l ler.

Owner and Matthews Reta i l Adv isors express ly reserve the r ight , at the i r so le d i scret ion, to re ject any and a l l express ions of interest or of fers to purchase the Property and to terminate d iscuss ions w i th any person or ent i ty rev iewing th is Offer ing Memorandum or making an offer to purchase the Property un less and unt i l a wr i t ten agreement for the purchase and sa le of the Property has been fu l ly executed and de l i vered.

If you w ish not to pursue negot iat ions lead ing to the acqu is i t ion of the Property or in the future you d iscont inue such negot iat ions , then you agree to purge a l l mater ia l s re lat ing to th is Property inc lud ing th is Offer ing Memorandum.

A prospect ive purchaser ’ s so le and exc lus ive r ights w i th respect to th is prospect ive t ransact ion, the Property, or informat ion prov ided here in or in connect ion w i th the sa le of the Property sha l l be l imited to those express ly prov ided in an executed Purchase Agreement and sha l l be sub ject to the terms thereof . In no event sha l l a prospect ive purchaser have any other c la ims aga inst Se l ler or Matthews Reta i l Adv isors or any of the i r a f f i l i a tes or any of the i r respect ive off icers , Directors , shareholders , owners , employees , or agents for any damages , l i ab i l i ty, or causes of act ion re lat ing to th is so l ic i tat ion process or the market ing or sa le of the Property.

Th is Offer ing Memorandum sha l l not be deemed to represent the state of af fa i rs of the Property or const i tute an ind icat ion that there has been no change in the state of af fa i rs of the Property s ince the date th is Offer ing Memorandum.

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



E X C L U S I V E LY L I S T E D B Y

JORDAN POWELL ASSOCIATE SHOPPING CENTERS

Di rect 214 .692 .2160 Mobi le 916 .844 .6454 jo rdan .powel [email protected] L ic . No . 01982070 (CA)

EL WARNER EVP & NATIONAL DIRECTOR SHOPPING CENTERS

Di rect 949 .873 .0507 Mobi le 858 .752 .3078 e l [email protected] L ic . No . 01890271 (CA)

™

KYLE MATTHEWS BROKER OF RECORD LIC NO. 22602771

marketplace - matthews...lic. no. 01890271 (ca) ... offering summar y matthews real estate...

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