offering memorandum · 2020-04-22 · its stores offer coffee and tea beverages, packaged roasted...

Starbucks & Athens Plaza

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O F F E R I N G M E M O R A N D U M1260 & 1286 US Hwy 72 E | Athens, AL 35611

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EAGLES LANDINGE X C H A N G E

AREA OVERVIEW

PROPERTY OVERVIEW 6 FINANCIAL OVERVIEW8

AREA OVERVIEW TENANT OVERVIEW12 16

ANDREW GROSSSenior AssociateCapital Markets

D: (214) 295-4511 M: (435) 659-1404E: [email protected] No. 01987860 (CA)

™BROKER OF RECORDKYLE MATTHEWSLicense No. 00109289 (AL)

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

CAP RATE

7.00%

LIST PRICE

$4,165,686

NET RENTABLE AREA

±16,150 SF

PROPERTY ADDRESS

1260 & 1286 US Hwy 72 EAthens, AL

INCREDIBLE RETAIL FUNDAMENTALS

• High Traffic Counts – the subject property is located on the premier traffic corridor of Highway 72 (± 34,000 ADT), which serves as the major thoroughfare between Huntsville and Athens

• Phenomenal Retail Location – nearby national retailers include: Chick-Fil-A, Dairy Queen, DaVita Dialysis, Chevron, Krystal, Applebee’s, IHOP, Pep Boys and Bojangles', McDonald’s, Burger King and more

• In addition to the impressive retail synergy, this location benefits from several National Hotel Brands, located walking distance from major hotels including: Fairfield Inn & Suites by Marriot, Days Inn, Best Western Inn, Super 8, Holiday Inn & Suites, Quality Inn, Hampton Inn and more

• This property is ideally situated between two major highways – directly off the exit for I-65 and Hwy 31

• Located less than a mile from a Walmart Supercenter and Lowe’s Home Improvement, this asset holds strong intrinsic value as part of the dominant retail trade area

MARKET & AREA HIGHLIGHTS

• With Average Household Incomes of over $106,575 within a 1-mile radius, the subject property is located in an affluent area just outside of the major MSA of Huntsville, Alabama

• The city of Athens is part of the Huntsville, AL MSA; Huntsville is projected to become the largest city in Alabama by 2022

• Substantial Growth – this market has experienced over 18% growth from 2010-2017 and is projected for an additional 9% growth over next 5 years

• Athens serves as the county seat of Limestone County in Alabama

• Athens is home to several educational institutions within the 3-mile trade area, namely, Athens State University, Athens Middle School and Athens High school

PROPERTY & LEASE HIGHLIGHTS

• The property has enjoyed a long-term history of full occupancy with several regional and national tenants

• Professionally owned and maintained premises – high-end landscaping and general upkeep

• This offering provides potential investors the opportunity to create substantial value from an 8-tenant strip center, paired with a high-performing single-tenant Starbucks

• Athens Plaza is an unparalleled opportunity for investors to purchase a multi-tenant asset with Minimal Landlord Responsibility, providing NNN leases with each tenant

• Starbucks recently executed a brand new 10-year lease extension, indicative of its high-level performance and commitment to the location

• As the only Starbucks location in the Athens market, the Starbucks property serves as the region’s leading Starbucks store: The closest Starbucks is 17 miles away

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SURROUNDING AREA MAPS

US

HW

Y 72

±17

,000

AD

T

INT-65 ±31,000 ADT

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US HWY 72 ±17,000 ADT

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

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PARCEL MAP

PHYSICAL DESCRIPTION

CURRENT OCCUPANCY

92.6%

AVERAGE TERM REMAINING

10 Years

TOTAL TENANTS

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NET RENTABLE AREA

±16,150 SF 10051520000020011005152000002017

APNPROPERTY ADDRESS

1260 & 1286 US Hwy 72 EAthens, AL

US HWY 72 ±17,000 ADT

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

Starbucks & Athens PlazaF I N A N C I A LO V E R V I E W

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PRICING SUMMARY:

List Price $4,165,686

RETURNS SUMMARY:

In Place Cap Rate 7.00%

Financial:

Year 1 NOI $291,598

Net Rentable Area ±16,150

In Place Occupancy 92.6%

VA L U A T I O N S U M M A R Y

R E N T R O L L

Tenant Lease Start Lease End GLA (SF) % of GLAContract Rental Rate Rent PSF

Rent IncreasesYear Month Year Month

The Orthapedic Center Oct-14 Sep-19 3,200 19.8% $48,000 $4,000 $15.00 $1.25 Sep-17Sep-18

Center For Healing Sep-17 Oct-19 1,600 9.9% $19,280 $1,607 $12.05 $1.00 -

Citi Financial Jul-08 Jun-21 1,600 9.9% $28,752 $2,396 $17.97 $1.50 -

Cry-Leike Realty Oct-12 Sep-23 1,600 9.9% $25,596 $2,133 $16.00 $1.33 -

Storage Unit May-18 MTM 400 2.5% $4,200 $350 $10.50 $0.88 -

Fancy Nails Sep-06 Aug-21 1,600 9.9% $26,000 $2,167 $16.25 $1.35 -

Good Spirits Beverage Jan-19 Dec-23 1,600 9.9% $31,920 $2,660 $19.95 $1.66 -

Starbucks Coffee Mar-06 Mar-26 1,750 10.8% $54,250 $4,521 $31.00 $2.58 -

Smoothie King Jan-18 Jan-23 1,600 9.9% $27,200 $2,267 $17.00 $1.42 -

Vacant (Master Lease) - - 1,200 7.4% $26,400 $2,200 $22.00 $1.83

Occupied Totals - In Place 16,150 100.0% $291,598 $24,300 $18.06 $1.50

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Starbucks & Athens PlazaStarbucks & Athens Plaza

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

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HUNTSVILLE, AL

Surrounded by Appalachian foothills and mountains, Huntsville is the fourth-largest city in Alabama and the largest city in the five-county Huntsville-Decatur-Albertville Combined Statistical Area. The city is in northern Alabama’s Appalachian region about seven miles north of the Tennessee River Valley. In addition to its distinction as the county seat of Madison County, Huntsville is also known as the “Space Capital of America.”

Population 1 Mile 3 Mile 5 Mile2022 Projection 1,942 23,220 39,2352019 Estimate 1,788 21,323 36,1042010 Census 1,595 18,126 30,465Growth 2019-2024 8.63% 8.90% 8.67%Growth 2010-2019 12.07% 17.64% 18.51%Households 1 Mile 3 Mile 5 Mile2024 Projection 748 8,865 14,4642019 Estimate 719 8,494 13,8852010 Census 678 7,620 12,377Growth 2019 - 2024 4.02% 4.37% 4.17%Growth 2010 - 2019 6.04% 11.47% 12.18%Income 1 Mile 3 Mile 5 Mile2019 Avg Household Income $106,575 $64,727 $69,462

2019 Med Household Income $71,915 $47,965 $52,597

DEMOGRAPHICS

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Huntsville is an unexpected, up-and-coming research, technology and high-tech manufacturing center that has profited from enduring economic success. There are 57 Fortune 500 companies that have operations in the city, including over 25 biotechnology firms; Telecommunications provider Deltacom, Inc. is based in Huntsville. Home to Redstone Arsenal and NASA’s Marshal Space Flight Center, Huntsville remains the hub for rocket-propulsion research in NASA and the Army. Consequently, the city’s main economic influence is derived from the aerospace and military technology sectors. Redstone Arsenal, NASA’s Marshall Space Flight Center and Cummings Research Park (CRP) encompass the main cores for the area’s technology-driven economy.

BUSINESS CLIMATE

One of the world’s leading science and technology business parks, Cummings Research Park is the second largest research park in the United States and the fourth largest in the world at a campus of 4,000 acres. With a vibrant blend of Fortune 500 companies, local and international high-tech enterprises, U.S. space and defense agencies, a thriving business incubator, and competitive higher-education institutions, Cummings Research Park is a model for transforming research into a successful business venture.

CUMMINGS RESEARCH PARK

As the centerpiece of the 150-acre Cummings Research Park Biotech Campus, the HudsonAlpha Institute for Biotechnology is research institute with a background in genomic research that dates back to the Human Genome Project. HudsonAlpha engages in both non-profit and for-profit activities; The institute’s non-profit research findings in genomic and genetic discovery have contributed to the Encyclopedia of DNA Elements (ENCODE). For-profit business ventures within the Biotech Campus focus on areas such as infectious disease diagnostics, immune responses to disease and cancer, protein crystallization, lab-on-a-chip technologies and improved agricultural technologies.

HUDSONALPHA INSTITUTE FOR BIOTECHNOLOGY

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Athens is located in the rolling foothills of the Appalachian Mountains in northern Alabama. Athens is strategically located in the middle of Birmingham and Nashville and is the county seat of Limestone County. Limestone County is part of the Huntsville Combined Statistical Area and is the most populated sub-region of North Alabama and the second fastest growing region in the State of Alabama. Athens has seen a 10-year growth rate of 15.4% which offers positive momentum for workforce development and industry growth.

ATHENS, ALABAMA

Limestone County is home to several vibrant communities. One of the fastest-growing counties in Alabama, Limestone benefits from the amenities of a larger city. Residents can enjoy a lower cost of living and a comfortable style. The area features outdoor recreation, sporting complexes, historical points of interest and cultural events. Residents also enjoy access to industry-leading healthcare facilities and educational institutions as well.

QUALITY OF LIFE

“#3 BEST MID-SIZED CITIES TO MAKE A LIVING“

“#1 BEST AFFORDABLE PLACES TO LIVE”

“LEADS THE NATION IN NEW CONSTRUCTION JOB

GROWTH”

Huntsville Accolades


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

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Property Name Starbucks

Property Type Net Least Quick Service Restaurant

Parent Company Trade Name Starbucks Corporation

Ownership Public

Revenue $19 B

No. of Locations ± 23,921

No. of Employees ± 157,000

Headquartered Seattle, Washington

Website www.starbucks.com

Year Founded 1985

TENANT OVERVIEWStarbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; Europe, Middle East, and Africa; China/Asia Pacific; and Channel Development. Its stores offer coffee and tea beverages, packaged roasted whole bean and ground coffees, single-serve and ready-to-drink coffee and tea products, juices, and bottled water. The company’s stores also provide fresh food and snack offerings; and various food products, such as pastries, and breakfast sandwiches and lunch items, as well as serve ware, beverage making equipment, and accessories.

Furthermore, the company licenses its trademarks through licensed stores, and grocery and national food service accounts. The company offers its products under the Starbucks, Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange, Ethos, Starbucks VIA, Seattle’s Best Coffee, Frappuccino, Starbucks Doubleshot, Starbucks Refreshers, and Starbucks Discoveries Iced Café Favorites brand names. As of March 27, 2016, it operated 23,921 cafes. Starbucks Corporation was founded in 1985 and is based in Seattle, Washington.

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Property Name Smoothie King

Property Type Net Least Quick Service Restaurant

Parent Company Trade Name SK UA, Inc

Ownership Private

No. of Locations ± 950 Worldwide

Headquartered Coppell, TX

Website www.smoothieking.com

Year Founded 1973

TENANT OVERVIEWStarted in 1973 in New Orleans, Smoothie King has grown to over 1,000 locations and counting, fueling your purpose across three continents – from the U.S. to the Republic of Korea, Trinidad & Tobago and the Cayman Islands. Smoothie King makes the Clean Blends promise to its guests, ensuring healthier decisions are made when choosing ingredients for each blend. With more whole fruits and vegetables, no artificial colors or preservatives and 9 grams added sugar, Smoothie King is the leading smoothie maker for a healthy lifestyle.

Confidentiality Agreement & DisclaimerThis Offering Memorandum contains select information pertaining to the business and affairs of Starbucks & Athens Plaza at 1260 & 1286 U.S. Highway 72 E, Athens, AL 35611 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1 . The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or

manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

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

ANDREW GROSSSenior AssociateCapital Markets

D: (214) 295-4511 M: (435) 659-1404

E: [email protected] No. 01987860 (CA)

BROKER OF RECORDKYLE MATTHEWS

License No. 00109289 (GA)

offering memorandum · 2020-04-22 · its stores offer coffee and tea beverages, packaged roasted...

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