urban target new flex-format prototype play video …

PLAY VIDEOURBAN TARGET | NEW FLEX-FORMAT PROTOTYPE | PRIME UNIVERSITY LOCATION | OPENING NOVEMBER 20172512 HILLSBOROUGH STREET, RALEIGH, NC 27607

ACTUAL BUILDING RENDERING

http://videos.boeveinvestmentservices.com/video/234592974

L E A D B R O K E RKevin Boeve

Senior Vice President InvestmentsONTARIO OFFICE

Tel: (909) [email protected]

CA License: 01247016

Joshua ReyAssociate

ONTARIO OFFICETel: (909) 456-7015

[email protected] License: 1776485

Kyle BlattAssociate



Neil NaranAssociate



Allen SmithBroker of Record

NORTH CAROLINA OFFICETel: (704) 831-4600NC License: 127350

PRESENTED BY

ACTUAL BUILDINGOPENING NOV. 2017

Mixed-Use Retail and Residential Development

financial overview

financial overviewcombined annualized operating dataTerm Annual RentYear 1 $557,706Year 2 $560,044Year 3 $596,581Year 4 $599,487Year 5 $602,478Year 6 $635,245Year 7 $638,770Year8 $641,989Year 9 $645,357Year 10 $648,826Year 11 $652,348Year 12 $656,078

pricingProperty Address 2512 Hillsborough Street

Raleigh, NC 27607Price $15,800,000Price Per SF $641Cap Rate 3.5%Average Cap Rate 4.0%Gross Leasable Area 24,778 SFYear Built Completly Remodeled 2017Parking Spaces Approximately 50 Spaces

Target: tenant summaryTenant Trade Name TargetLease Type Modified NetLease Term 12 YearsRent Commencement Date Expected November 2017Lease Expiration Date 2029Options Eight, Five -Year Options

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. © 2017 Marcus & Millichap ACT ID Y0080726

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storefront: tenant summaryAnnual Income $91,275GLA 2,434 SFLease Type NNNIncreases 3% Increasees AnnuallyTerm 10 YearsOptions Two, Five-Year Options

Target’s annualized operating dataTerm Annual RentYear 1 -2 $466,431Year 3 - 5 $499,748Year 6 - 12 $529,733Option 1: 13 - 17 $561,516Option 2: 18 - 22 $617,668Option 3: 23 - 27 $679,435Option 4: 28 - 32 $747,378Option 5: 33 - 37 $822,116Option 6: 38 - 42 $904,328Option 7: 43 - 47 $994,760Option 8: 48 - 52 $1,094,236

The seller has multiple lease offers pending for the storefront. The lease terms will be final-ized prior to closing.

executive summary

ACTUAL BUILDING RENDERING

· Generational Real Estate Investment

· Stunning Architectural Design By Internationally Recognized Gensler Architects | Completely Remodeled by Target for Their Urban “Flexible-Format” Concept With Grocery and CVS | Opening November 2017

· Corporate Lease | 12-Year Lease With Eight, Five-Year Options | Rental Increases

· Hillsborough Street | Main Business and Cultural Thoroughfare Through Raleigh, North Carolina | Serves as Center for Social Life Among North Carolina State University (34,000 Students and 9,000 Faculty) and Meredith College (2,000+ Students)

· Walking Distance from 20 Student Housing Facilities, Four On-Campus Apart-ments, and 16 Learning and Living Villages

· Zero Convenient Grocery Retail or Dry Goods Competition | Nearest Walmart is Seven Miles Away

· Strong Corporate Tenant | “A” Rating From the S&P | #38 on Forbes 500

· 50 Exclusive Parking Spaces

· 13 Percent Rental Increases Over Lease Term | Four Percent Average Return at List Price

investment highlightsMarcus & Millichap is pleased to exclusively offer a rare, flexible-format, and urban Target in Raleigh, North Carolina. The location is a completely remodeled building, that is leased to Target Corporation on Hillsborough Street, the main business and cultural thoroughfare in Raleigh, North Carolina.

The smaller version of its big-box store will sell fresh groceries, grab-and-go items, dorm and apartment essentials, clothing, and electronics and include a CVS Pharmacy. The carefully selected items will be suited mostly for the col-lege students across the street attending North Carolina State University with an enrollment of nearly 34,000 students and 9,000 faculty and administrative staff members.

The Target is ideally positioned in an underserved metropolitan area that has experienced population growth of 147 percent within one mile since 2000. The property also benefits greatly from its proximity to multiple student housing: 20 resident halls, four on-campus apartments, and 16 learning and living villages.

This is a rare, generational asset leased to an “A” rated corporated tenant that will continue to thrive as downtown Raleigh, North Carolina grows and matures within the fastest growing metropolitan region in the Carolinas. For businesses, residents and visitors alike, downtown is the urban center of the region, an in-credible place to live, work and play.

investment overview

1 Mile 3 Miles 5 Miles2016 Population 10,385 62,968 111,9862016 Households 4,571 24,631 41,9262016 Daytime Population 5,714 19,598 46,0122016 Average Household Income $77,029 $74,796 $71,358


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ACTUAL BUILDING

Exclusive Street Level Parking Entrance

2,434 Square Foot Restaurant

target overview


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Founded 1902 Traded As NYSE: TGTHeadquarters Minneapolis, MinnesotaWebsite www.target.com

Target Corporation is the second-largest discount store retailer in the United States, behind Walmart, and a component of the S&P 500 Index.

1,802 Locations $69.5 Billionin 2016 Sales

#38 in Fortune 500“A” Rating

location highlights

- 2 Miles Away -

- 2 Miles Away -

- 2 Miles Away -

- 2 Miles Away -

- 1.5 Miles Away -


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1-Mile Radius

virtually zero nearby competition

Downtown Raleigh

Businesses and residents along Raleigh’s Hillsborough Street corridor paralleling the edge of North Carolina State University’s main campus has been enduring near-constant construction for close to a decade on its streets, sidewalks and adjacent prop-erties.

The development projects and improvements have so far added close to $300 million in new investments, according to the Hillsborough Street Community Service Corporation And real estate sources say that several major projects on Hillsborough Street are in the late planning stages, including City Centre, a mixed-use project comprised of twin 20 story towers containing office, multifamily, hotel and street level retail along Dawson Street. A site review application filed in November requested ap-proval for retail space, 176 hotel rooms and a parking lot in addition to office and residential space.

The city is also underway with its second phase of $17.8 million in streetscape improvements along Hillsborough Street that will add bike lanes, on-street parking, roundabouts and other traffic control improvements between Friendly Drive and Rosemary Street. The work is scheduled to be finished in fall 2017.


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BerkshireCAMERON VILLAGE282 Units | 1-2 BedroomStarting at $1,070

401 OberlinAPARTMENTS126 Units | 1-2 BedroomStarting at $1,150

StanhopeSTUDENT APARTMENTS300 Units | 1-4 BedroomStarting at $1,115

UniversityTOWERS420 Units | 1-2 BedroomStarting at $1,150

ValentineCOMMONS277 Units | 1-4 BedroomStarting at $655

Public Research UniversityStudents: 34,000Staff: 9,000

hillsborough street“$300 Million in New Investments on Hillsborough Street”

Hillsborough Street - 20,000 Cars Per Day

Steady Growth of Downtown Employment · 45,000+ Workers Downtown - a 19 Percent Growth in The Past Seven Years |

Additional 11,500 jobs in Downtown by 2030

· 1,500,000+ Square Feet of New Class A Office Space is Under Construction Which Will Increase Office Employment Capacity by 6,000+ New Workers

· 11 Percent Growth in Average Household Income for Downtown Residents Be-tween the Ages of 25 - 54 From 2016 - 2021.

· Downtown Population up 147 Percent Since 2000 | 16,550 People Live Within One Mile of Downtown

· Downtown Boasts 3,672 Residential Units Recently Delivered, Under Con-struction, or Planned Which Will Provide Housing for up to 5,500 New Down-town Residents


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Downtown Raleigh lies at the heart of the Research Triangle, the fastest growing metropolitan region in the Carolinas. For businesses, residents and visitors alike, downtown is the urban center of the region, an incredible place to live, work and play.

With a population of over 405,000, Raleigh is the second largest city in the Caroli-nas. It is also the fastest growing major city in the state, adding more than 10,000 residents annually. The rapidly expanding Raleigh metro area, with 1,235,000 res-idents, has more than doubled its population since 1970. Downtown Raleigh is comprised of 110 blocks, while the city of Raleigh covers 126 square miles.

William PeaceUNIVERSITYStudents: 1,000+

Saint Mary’sSCHOOLStudents: 275

RALEIGHCONVENTION CENTER

RED HATAMPHITHEATER

Raleigh Amtrak Train StationAnnual Passengers: 161,400

Needham B.BROUGHTON HIGH SCHOOLStudents: 2,170+

MeredithCOLLEGEStudents: 2,000+


downtown raleigh

Hillsborough Street - 20,000 Cars Per Day


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NC STATE UNIVERSITYEssential Facts and Figures · 2,000-Acre Campus

· 34,000 Students and 9,000 Faculty

· 68 Percent of Students Live on Campus

· Educating More North Carolinians Than Any Other University

· $1.495 Billion Budget for Fiscal Year 2017

· $998.6 Million Endowment

· 20 Residence Halls

· Four On-Campus Apartments

· 16 Learning and Living Villages

Ranked Among the Best · #1 Best College For Your Money in North Carolina (Money)

· #3 Veterinary Medicine Program Nationally (United States News and World Report)

· 11 Graduate Programs Among the Top 30 in Their Field Nation-ally (United States News and World Report)

Rising Levels of Support · $224.8 Million in Gifts and New Commitments in FY17 -- the

Highest Total in North Carolina State History, and a 39 Percent Increase Over the Previous Year

Residence Halls

On-Campus Apartments

North Carolina State University, a 2,090-acre campus, is a public research university located in Raleigh, North Carolina, United States. It is part of the University of North Carolina system and is a land, sea, and space grant institution. The university forms one of the corners of the world-renowned Research Triangle together with Duke University in Durham and The University of North Carolina at Chapel Hill.

The North Carolina General Assembly founded the North Carolina College of Agriculture and Mechanic Arts, now North Carolina State, on March 7, 1887, as a land-grant college. Today, North Carolina State has an enrollment of nearly 34,000 students, making it the largest university in the Carolinas. North Carolina State has historical strengths in en-gineering, statistics, agriculture, life sciences, textiles and design and now offers 106 bachelor’s degrees. The graduate school offers 104 master’s degrees, 61 doctoral degrees, and a Doctor of Veterinary Medicine.

nc state university

2,000-Acre Campus


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Union StationRaleigh plans to finish construction on the Union Station transportation hub next fall. The $90 million project on Martin Street will feature intermodal connections for upgraded rail and bus services.

The DillonThe 17-story tower is already taking shape across from Union Station. The project is set to be complete in 2018. The $150 million complex of offices and apartments features the outer brick walls of the old Dillon Supply Company warehouse, preserving a piece of the city’s industrial history.

Morgan Street Food HallThe Morgan Street Food Hall and Market, opened Spring 2017, is a 22,000-square-foot space that formerly housed the bar Jillian’s. The food hall features 65 vendors.

Downtown Raleigh

downtown raleigh development

Housing ValueHome values have icreased 7% over the past year and will rise 3.6% in 2018

Confidentiality AgreementThe information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a 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 the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum 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 any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

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

Net Leased DisclaimerMarcus & 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 will not 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 infor-mation before completing 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 performance 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 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 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 carefully review all legal and 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 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 project-ed 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 material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, en-vironmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/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 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 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.

L E A D B R O K E RKevin Boeve

Senior Vice President InvestmentsONTARIO OFFICE

Tel: (909) [email protected]

CA License: 01247016

Joshua ReyAssociate



Kyle BlattAssociate



Neil NaranAssociate



Allen SmithBroker of Record

NORTH CAROLINA OFFICETel: (704) 831-4600NC License: 127350

PRESENTED BY


Downtown Raleigh, NCWorkers: 45,000+Residents: 8,200

urban target new flex-format prototype play video …

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