walmart neighborhood market - amazon s3 · walmart neighborhood market ... maintenance, up keep,...

EXCLUSIVELY PRESENTED BY

Michael FederleSenior Vice [email protected] Lic. No. 00399330

Andrew LindseyInvestment Sales [email protected] Lic. No. 01920924

1300 North University BoulevardMobile, Alabama 36618

SRS Real Estate Partners301 Howard St. Suite 900San Francisco, CA 94105415.908.4930www.srsre.com

WALMART NEIGHBORHOOD MARKETInvestment Grade Tenant Net Lease| Mobile, Alabama

EXECUTIVE SUMMARY

PROPERTY DETAILS• Property Aerial• Site Plan• Property and Lease Overview• Tenant Overview• Tenant Strategy • Submarket Aerial

MARKET OVERVIEW• Market At A Glance• Demographic Summary

CONFIDENTIALITY AND CONDITIONS OF SALE

TABLE OF CONTENTS3

4

10

12

WALMART NEIGHBORHOOD MARKET1300 N. UNiversity Blvd. MoBile, Al 36608

Mobile, Alabama - Known for streets lined with massive live oaks, this picturesque city is at the mouth of the Mobile River at Mobile Bay, leading to the Gulf of Mexico. More than 600,000 residents live in the metropolitan area covering 2,828 square miles. The Mobile Area Chamber of Commerce is charged with promoting the area through business and commercial commerce to promote the area’s economic well-being. Mobile’s major industries include Aerospace, Shipping, Logistics, Manufacturing, International Trade.Source: Mobile Chamber of Commerce

3Exclusively Presented By SRS Real Estate Partners

EXECUTIVE SUMMARY

SRS Real Estate Partners - San Francisco, as exclusive agent, is pleased to offer investors a chance to acquire an investment grade credit tenant in a new purpose-built store - Walmart Neighborhood Market, now open in Mobile, AL. Walmart Neighborhood Market is a subsidiary store concept of Walmart Stores, Inc. with locations strategically positioned between Walmart Supercenters and Walmart Discount Stores, with the intent of maximizing Walmart’s consumer reach. With stores typically built to approximately 41,000 +/- square feet and offering a variety of products including a full line of groceries, pharmaceuticals, health and beauty products, photography development services, and a selected line of general merchandise at affordable Walmart prices, Walmart Neighborhood Markets are meant to streamline shopping for its consumers.

The subject site is features a newly opened Walmart Neighborhood Market and a fuel center totaling +/- 41,117 square feet. The +/-5.34 acre subject site is extremely well located with easy access to U.S. Highway 98 and Interstate 65. The premier Walmart credit, new construction, attractive long-term net-lease, and strategic location provide buyers with an opportunity to acquire an asset with unmatched investment parameters. The investment offering presents an excellent opportunity to capitalize on Walmart’s rapidly expanding Neighborhood Market concept.

Investment Highlights• Perfect Trade Opportunity that Finances Well. 5% Cap Rate, NOI $584,000• Attractive Lease Terms: Brand new construction w/ a 20-year primary term

and four 5-year options with rent increases• Walmart Credit: The site is guaranteed by Walmart Stores, Inc. which carries

an S&P rating of AA and a Moody’s rating of Aa2• Excellent Location: Close proximity to major throughways US Highway 98

and Interstate 65, as well as strong traffic counts (61,962 cpd)• Early to Market Entry: Provides an opportunity to invest in a rapidly growing

concept of Walmart Stores, Inc. with continued aggressive expansion plans• Fuel Center Outparcel: The site features a fuel center which creates an

added layer of consumer draw at all times of the day• Established Customer Base: Walmart has an established loyal customer

base which will be well-served by the Mobile Neighborhood Market location• High Sales Volumes: Similar Walmart Neighborhood Markets generate

$25,000,000 annual sales in the range of $600 per square foot per annum.

Representative Image


PROPERTY AERIAL


SITE PLAN

Site Details

Zoning (Current approved) R-3/B-2Retail Building Area 41,117+/- SFGas Service Kiosk Area 192+/- SFParcel Area (Retail & Gas) 5.34+/- ACParking Spaces Required 138Parking Spaces Provided 171

NAP = Not a part of offeringNAP

NAP

NAP

NAP


INVESTMENT SUMMARY AND LEASE OVERVIEW

Property Overview Price: $11,680,000Address: 1300 N. University Blvd., Mobile, ALNOI: $584,000Capitalization Rate: 5%Building Area (Retail): 41,117± SF Land Area (Retail & Gas): 5.34± ACConstruction Status: Complete. Opened on January 28, 2015Occupancy: 100% (Walmart)County: Mobile Lease Overview *Tenant Name: Wal-Mart Stores East, LP, Store #4210Guarantor: Lease unconditionally guaranteed by Wal-Mart Stores, Inc.Lease Type: Net-Net leaseRoof: Landlord responsibility (15 year warranty)Structure: Landlord responsibility (1 year construction)Primary Lease Term: 20 yearsRent Commencement: Upon store opening (January 28, 2015).Lease Expiration: 20 Years from opening dateRemaining Lease Term: 20 years Options: Four (4), five (5) year optionsRental Increases: Ten percent (10%) increase per each optionCurrent Rent: $584,000Tenant Responsibilities:Wal-Mart Stores East, LP, is responsible for all operations, maintenance, up keep, repairs, and anything else associated with Store # 4210. Should roof or structure ever require repairs, Tenant shall notify Landlord, complete the repairs and bill Landlord for said costs.

* Lease Abstract Available on Request

Investment Summary Rent Schedule

Rent Schedule Annual Rent Monthly Rent Primary Term (Yrs. 1-20) $584,000 $48,667Years 21-25 $642,400 $53,533Years 26-30 $706,640 $58,887Years 31-35 $777,304 $64,775

Years 36-40 $855,034 $71,253



Walmart Stores, Inc. (Guarantor) Walmart is an American multinational retail corporation which operates discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, restaurants, apparel stores, drug stores, and convenience stores, as well as various retail websites. The company also provides financial services and related products such as money orders, prepaid cards, wire transfers, check cashing, and bill payment while also conducting banking operations that provide consumer financing programs. Walmart is headquartered in Bentonville, AK, and was founded by Sam Walton in 1962 and incorporated in October of 1969. The company operates through three segments: Walmart U.S., Walmart International, and Sam’s Club. Currently Walmart operates more than 11,000 stores under 71 banners in 27 countries as well as ecommerce websites in 10 countries. Is is the world’s largest public corporation, according to the Fortune Global 500 list in 2014, the biggest private employer in the world with over 2.2 million employees, the world’s largest retailer, and the largest grocer retailer in the U.S.

Walmart became a publicly traded company under the symbol WMT on the New York Stock Exchange in 1972. By 1988 Walmart was the most profitable retailer in the U.S. and by October 1989 it had become the largest in terms of revenue. Walmart is known as one of the most valuable companies in the world in terms of market value with reported revenue of $476.29 Billion and a market cap of $244.12 Billion.

Walmart Neighborhood Market (Tenant)Walmart Neighborhood Market is a chain of grocery stores introduced in 1988 as a subsidiary of Walmart Stores, Inc. Ranging around 40,000 square feet and approximately one-fourth the size of a typical Walmart Supercenter, stores are meant to streamline shopping for consumers. Neighborhood Markets are positioned between Walmart Supercenters and Discount Stores offering a variety of products including a full line of groceries, pharmaceuticals, health and beauty products, photography development services, and a selected line of general merchandise – all at Walmart’s affordable prices. Typically Neighborhood Markets employ a workforce of between 80-100 employees and many of the stores include a fuel center.

According to the latest earnings report for the 13-week period ending Aug. 1, 2014, Walmart Neighborhood Market sales jumped 5.6% among other stores of similar size in the country. During Q2, 2014, comparable sales at Walmart Neighborhood Market stores increased by 5.1% and traffic increased by 4% across the U.S. Walmart is scheduled to open between 180-200 Neighborhood Market locations this year.

TENANT OVERVIEW

Tenant ProfileName Walmart Stores, Inc.No. of Locations 11,088Credit Rating AA (S&P) / Aa2 (Moody’s)Stock Symbol WMTTotal Revenue $476.29 Billion*

Net Income $15.9 Billion*

Market Cap $244.12 Billion**Tenant Business RetailFounded 1962Headquarters Bentonville, ARWebsite Walmart.comSources: *Walmart 5 year Financial Summary, **Morgan Stanley



TENANT STRATEGY

Tenant StrategyWalmart’s Neighborhood Markets are designed to facilitate shopping for consumers providing easier parking, less crowded aisles, and a quicker checkout process. Stores are unique in that the manager of each individual store is responsible for stocking the shelves with what he or she sees fit for the market. By stocking the shelves with crops grown in the surrounding areas an added incentive is created for consumers to support their local community. Offering affordable prices in strategic locations with an emphasis on local goods, these stores are meant to be convenient and quick one-stop shopping destinations.

Having identified a market where it can capitalize on the need for consumables, Walmart continues to focus on food as an important driver for the frequency of consumer. With an already established customer base, Walmart hopes to draw new and repeat customers to Neighborhood Markets. Given recent sales increases of 5.6% among other stores of similar size in the U.S., in the latest earnings reports, the strategy has thus far been a resounding success.

Representative ImageRepresentative Image


SUBMARKET AERIAL


MARKET AT A GLANCEMobile, AL

Largest Employers

Rank Company1 Mobile County Public School System2 Infirmary Health Systems3 University of South Alabama4 Walmart5 Austal USA6 Providence Hospital7 City of Mobile8 ST Aerospace Mobile9 County of Mobile

10 Springhill Medical Center

OverviewRanked the 9th largest port in the U.S., Mobile is situated along the shores of Mobile Bay in the southwestern corner of the state. The only saltwater port in Alabama, Mobile is located only 30 miles from the Mississippi border (to the west) and 40 miles from the Florida border (to the east). The city is serviced by Interstate Highways I-10 and I-65 and also by U.S. Routes 43, 45, 90, and 98.

EconomyMobile’s economic development efforts over the past decade have garnered $8.5 billion in capital investment and more than 17,400 jobs with an average annual salary of $50,000. Mobile is ranked one of the nation’s best places to live and grow a business. The low cost of doing business, diverse business base, availability of professional and skilled workforce, intermodal transportation hub and quality lifestyle continue to attract people and business.

The major factors for Mobile’s economy are medicine and research, retail trade, aerospace, construction and manufacturing. A variety of goods are produced in Mobile such as engines, aircraft, wood pulp and paper, chemicals, paint, aluminum, cement, pumps, rayon fibers and ship-related items. Some of the major sectors for employment are: trade, transportation and utilities; education, healthcare, manufacturing, government, professional and business services, construction and mining as well as leisure and hospitality.

In the news• 7th best place for locating companies in mid-markets

- Southern Business & Development• 2nd in top 100 projects for jobs: Thyssen Krupp steel processing facility

- Southern Business & Development• One of the top economic development groups: Mobile area Chamber of

Commerce - Site Selection

• One of America’s Hottest Cities - Expansion Magazine

• #1 Hot City for Entrepreneurs - Entrepreneur.com

Source: Mobile Chamber of Commerce, 2014

Source: Mobile 2011 Comprehensive Annual Financial Report

Downtown Mobile SkylineCredit: James Willamor, Flickr


DEMOGRAPHIC SUMMARYMobile, AL

1300 N. University Blvd., Mobile, AL

3 MileRadius

5 MileRadius

10 MileRadius

POPULATIONCurrent Est. Population 45,613 131,905 310,7152019 Projected Population 45,797 132,319 314,163Projected Annual Growth 2014-2019 0.08% 0.06% 0.22%Median Age 34.3 35.8 37.0

HOUSEHOLDS (HH)Current Est. HH 17,975 54,406 122,2152019 Est. HH 18,053 54,620 123,796Projected HH Growth 2014-2019 0.09% 0.08% 0.26%

INCOMEAvg. Household Income $63,982 $53,784 $54,936

EMPLOYMENTTotal Employees 26,362 75,395 157,195Total Businesses 2,944 9,222 19,831

EDUCATIONBachelor’s Degree or Higher 34.1% 27.4% 23.6%

Source: U.S. Census Bureau, Census 2010 Summary File 1., Esri forecasts for 2014 and 2019, Esri converted Census 2000 data into 2010 geography. November 4, 2014

USS AlabamaCredit: Josh Hallett, Flickr

The Oak Alley at Spring Hill CollegeCredit: Faunggs Photo, Flickr


CONFIDENTIALITY AND CONDITIONS OF SALE

This offering memorandum is not intended to constitute an offer, but is merely a solicitation of interest with respect to a possible sale of the Walmart Neighborhood Market located at 1300 University Blvd. No. in Mobile, Alabama.

This Offering Memorandum has been prepared by SRS Real Estate Partners, Northwest, LLC (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.

Environmental matters can and do have dramatic impact not only on the physical conditions of a property but also on its economic performance and underlying value. If such substances exist, special governmental approvals and permits may be required.

Purchasers are encouraged to engage qualified professionals to determine whether hazardous or toxic substances or wastes, including asbestos, PCB’s, petrochemicals or other contaminants or conditions are present at the property. Neither SRS nor the owner performs or conducts investigations or analyses of environmental matters. It is the sole responsibility of qualified purchasers to review all applicable laws and regulations applying to either the existence, transportation or removal of hazardous materials and to prudently have an onsite investigation and inspection

of the property conducted. The cost and removal of hazardous materials may be substantial; therefore, SRS strongly encourages qualified purchasers to engage legal counsel and appropriate technical professionals if any of these conditions are discovered during the inspection. No person, firm or entity is authorized to make or submit offers on behalf of anyone or divulge or reproduce the contents of this executive summary or discuss the availability of the purchase of the property without first having registered in writing the name of the party receiving the material and received written authorization to proceed from SRS. The owner and SRS reserve the right, at their discretion, to reject an or all expressions of interest with any party at any time with or without notice. The Recipient is strictly prohibited from contacting the tenant or any affiliate regarding this offering without prior written authorization of Owner and SRS. The terms and conditions stated herein apply to all sections of the executive summary.

SRS is acting as exclusive disposition agent, and the owner reserves the right to withdraw the property from the market, to change the price and terms or sell the property at any time without notice being given.

Offering exclusively represented by:Michael FederleSenior Vice President 415.354.4892 | [email protected]

Andrew LindseyInvestment Services Specialist415.908.0394 | [email protected]

SRS Real Estate Partners – San Francisco301 Howard St. Suite 900 | San Francisco, CA 94105SRSRE.COM/SFBayArea

The information contained herein was obtained from sources deemed to be reliable. However, SRS Real Estate Partners makes no guarantees, warranties, or representations as to the completeness or accuracy thereof.

SRSRE.COM/SFBayArea

walmart neighborhood market - amazon s3 · walmart neighborhood market ... maintenance, up keep,...

Documents