1530 JOPPA ROAD TOWSON, MD

OFFERING MEMORANDUM

1530 JOPPA ROAD · TOWSON, MD

A c t u a l Pro p e r t y P h o to

Holliday Fenoglio Fowler, L.P. (“HFF”) has been engaged by the owner of Art Van Furniture to market 10688 Perry Hwy, Wexford PA 15090 for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.

PHILADELPHIA

1700 Market Street

Suite 3232

Philadelphia, PA 19103

DALLAS

2323 Victory Avenue

Suite 1200

Dallas, TX 75219

MARC MANDELManaging Director

[email protected] Investment Advisory

FINANCING ADVISOR

BRANDON CHAVOYA Managing Director

[email protected]

Financing Advisor

COLER YOAKAMSenior Managing Director

[email protected] Advisory

STEVE SCHRENKDirector


EXCLUSIVE MARKETING ADVISORS

EXECUTIVE SUMMARY 01

INVESTMENT HIGHLIGHTS 02

LEASE ABSTRACT 03

TENANT PROFILE 05

INVESTMENT MERITS 07

LOCATION OVERVIEW 08

CLICK HERE TO VIEW

PROPERTY VIDEO

https://vimeo.com/248060373/5066027025

1A r t Va n F u r n i t u re · To ws o n , M D

Holliday Fenoglio Fowler, L.P. (“HFF”), on behalf of Art Van Furniture (the “Tenant”) and Thomas H. Lee Partners (“Thomas H. Lee” or “Sponsor”), is pleased to present an outstanding opportunity for the sale-leaseback of 1530 Joppa Road retail location currently branded as Gardiner Wolf Furniture, located in Towson, MD (the “Property”). The Property is being offered by Art Van Furniture, as a result of its November 2017 53 Mid-Atlantic store acquisition of Wolf Furniture and Levin Furniture bringing its total store count to 176.

Art Van Furniture to execute a 20 year primary lease upon close of escrow showing a long term commitment to the location. Art Van Furniture will operate the store with their proven commitment to high-quality and immense value that has allowed the brand to grow and become the #1 furniture and mattress retailer in the Midwest.

EXECUTIVE SUMMARY

INVESTMENT SUMMARY

Location1530 Joppa RoadTowson, MD 21286

Branded As Gardiner Wolf FurnitureSite Area 2.20 AcresBuilding Size 54,000 SFLease Type NNNRent Commencement

Close of escrow

Lease Expiration 20 years from close of escrowNOI $660,960 Annual Rent Increase

Lesser of (i) 2% or (ii) 1.25 times the change in the Price index

Options Four (4), Five Year options

TENANT REVENUE: ~$1.3 BN TENANT EBITDA: GREATER THAN $70MM




INVESTMENT HIGHLIGHTS

$954,000

ANNUAL RENT


RENT SCHEDULE

DESCRIPTION DATESANNUAL

RENTINCREASE

Base Term Year 1 Year 1 $660,960 2%




















First Option- Year 1 Year 21 $982,152 2%

First Option- Year 2 Year 22 $1,001,795 2%




Second Option- Year 1 Year 26 $1,084,375 2%





** Annual Rental Adjustment: The lesser of (i) 2% or (ii) 1.25 times the change in the Price index

3


LEASE ABSTRACT


ART VAN FURNITURELessee Art Van FurnitureBranded As AVF Parent, LLCGuarantor Gardiner Wolf FurnitureBuilding Size 54,000 SFLot Area 2.20 AcresYear Built 1963NOI $660,960 Annual Rent Increase

Lesser of 2% or 1.25 times the change in the Price index

Lease Type NNNRent Commencement

Close of escrow

Lease Term 20 years Lease Expiration 20 years from close of escrowRemaining Options

Four (4), Five Year options


TENANT RESPONSIBILITY DETAIL

MaintenanceLessee, at its sole cost and expense is responsible for keeping all of the building, structures and improvements on the property in good order and repair. Lessee shall make all necessary structural, non-structural, exterior and interior repairs and replacements to the building.

UtilitiesLessee shall contract, in its own name, for and pay when due all charges for the connection and use of water, gas, electricity, telephone, garbage collection, sewer use and all other utilities supplied to the premises.

Taxes Lessee shall pay all taxes and assessnents of every type imposed upon the property.

InsuranceLessee, at Lessee's expense, at all times during the Term of the Lease, will procure, maintain and keep in force commercial general liability insurance, a cause of loss (special form insurance), workers' compensation and employers liability insurance, business interruption insurance, automobile liability insurance, and comprehensive boiler and machinery insurance.

LEASE ABSTRACT

E JOPPA ROAD (TRAFFIC COUNT VPD: 24,101)

Bear’s Paw Fabrics

Mo’s SeafoodMonro Muffler

A r t Va n F u r n i t u re · To ws o n , M D 5

Art Van Furniture (“AVF”) was founded in 1959 in Detroit by Mr. Van Elslander. His founding philosophy was to provide the community with quality furniture at great prices, with always high standards of customer service.

Art Van Furniture transitioned to private equity sponsorship in March 2017 through Thomas H. Lee Partners (“THL”) investment.

TENANT PROFILE

With 61 full-line showrooms, including 15 franchised locations, plus operates across the consumer value spectrum and through multiple store formats, including a deep discount format called the Clearance Center and a premium store-within-a-store. In November of 2017 Art Van Furniture acquired Levin and Wolf Furniture making them one of the top ten furniture retailers in the country and added 35 stores to its brand.

With this acquisition, Art Van now operates 176 stores, including 18 franchise stores in nine states with $1.3 billion in expected annual sales. The companies will add 1,900 new employees to Art Van’s current 3,600 employees to bring the total to 5,500.

Re p re s e ntat i ve P h o to


Thomas H. Lee Partners (“THL”) founded in 1974 is one of the world’s oldest and most experienced private equity firms. Since THL was founded they have raised over $22 billion of equity capital and invested in more than 140 portfolio companies with an aggregate value of over $150 billion.

THL invests in growth oriented businesses that are headquartered primarily in North America and specialize in four sectors:• Business & Financial Services • Consumer & Retail• Healthcare & Media• Information Services & TechnologyTHL partners with portfolio company management to identify and implement operational and strategic improvements to accelerate sustainable revenue and profit growth. They strive to build great companies of lasting value and generate superior investment returns.

THL’s deep industry knowledge and relationships allow them to make informed decisions quickly and contribute as owner/operators, not just passive capital providers. They seek to support portfolio company management teams with financing, merger & acquisitions and structuring capabilities as well as operational expertise. Their investor base includes some of the world’s leading public and corporate pension funds, sovereign wealth funds, financial institutions, endowments and high net worth families.

THL views the long-standing relationships they have with their investors as an important cornerstone of their business model. In the last eight years, THL’s investors have committed more than $2.1 billion in co-investments, and their principals have committed $335 million of their own capital to invest alongside THL’s limited partners in their last two funds.



7A r t Va n F u r n i t u re · Wex fo rd

INVESTMENT MERITS

ATTRACTIVE PRICINGAVF also uses its scale advantages to negotiate attractive discounts with suppliers, which it will pass on to Levin and Wolf customers in the form of highly competitive prices, driving sales.

MULTIPLE IN-STORE FORMATSAVF segments its stores between Showroom, Clearance Center, PureSleep bedding aisle, Art Van Flooring, and the high-end Scott Shuptrine Interiors. AVF also advertises these different formats separately; allowing the brand to reach multiple audiences.

ECOMMERCE SALESAVF is developing a world-class eCommerce platform and digital in-store support. AVF will leverage this investment in Levin and Wolf markets, which will drive traffic to their stores and enhance their ability to compete across multiple channels.

CONTIGUOUS GEOGRAPHIC EXPANSIONOpportunity to accelerate AVF’s plans for contiguous geographic expansion in new markets by partnering with market leaders in the Mid-Atlantic, and simultaneously expand into attractive new markets to eliminate strong competitors.

AVF HAS SUBSTANTIAL SCALE IN THE MIDWEST, RANKING #1 IN FURNITURE STORES, WHICH IT USES TO SUPPORT A LARGE, BEST-IN-

CLASS IN-STOCK ASSORTMENT AND NEXT-DAY DELIVERY.

7


A r t Va n F u r n i t u re · To ws o n , M D


LOCATION OVERVIEW

Located approximately 11 miles north of Baltimore and within 60 miles from the Nation’s Capital, Towson enjoys superior access to major highways and is within 28 miles of Baltimore/Washington International Airport. Due to its prime location, Towson’s average household income is over $80,000 resulting in a strong platform to sustain an abundance of businesses. Towson is also home to Towson University which has a student body of over 22,000 and one of the largest employers in the immediate area.

Over the past few years Towson underwent a revitalization adding new amenities and creating a regional destination for the surrounding area. Towson Square an $85 million lifestyle center development which opened in 2014 has added many new amenities including retail shops, a high end movie theater, and many restaurant options.

3 MILE RADIUS DEMOGRAPHICS2010 Population Census 133,7822017 Population Estimate 135,6852017 Average Household Income $81,705.002017 Median Household Income $62,869.50

The area has also flourished from new housing developments which include over 2,700 new townhomes and a new $350 million, 1.2 million square foot mixed use development, Towson Row, which plans to break ground in 2018.

The new development will house a new Whole Foods (1 of 3 in the Baltimore MSA), 200 units of student housing, 250 luxury condominiums and apartments, and 150,000 square feet of new office space. The increase in development will help spur future economic growth in the region.

BALTIMORE

PENNSYLVANIA

NEW JERSEY

DELAWARE

VIRGINIA

WEST VIRGINIA DOVER

FREDERICK

LURAY

WOODSTOCK

MARTINSBURG

GEORGEWASHINGTON

AND JEFFERSONNATIONAL FOREST

WILMINGTON

VINELAND

NEWARK

CAPE MAYWASHINGTON

D.C.

695

95

95

70

68

81

66

83

270

13

1

50

301

341

BALTIMORE: 11 MILES WASHINGTON DC: 60 MILES


IMMEDIATE TRADE AREA BALTIMORE BELTWAY

695

542

E JOPPA ROAD (TRAFFIC COUNT VPD: 24,101)

TOWSON PLACEBear’s Paw Fabrics

Concordia Preparatory SchoolCromwell Valley

Apartments

Calvert Hall High School College

1 0A r t Va n F u r n i t u re · To ws o n , M D

MARKET AERIAL

3 MILE RADIUS

95

95

895

BALT

IMORE BELTWAY

695

146

45

542

TOWSON PLACE

TOWSON TOWN CENTER

TOWSON SQUARE

TOWSONUNIVERSITY

ENROLLMENT: 22,000 +

EMPLOYEES:3,000 +

BALTIMORE11 MILES

STUDENT BODY OF OVER 22,000

TOWSON SHOPPING CENTER

NORTH PLAZA

TOWSON OVERLOOK PERRING PLAZA

1 1A r t Va n F u r n i t u re · To ws o n , M D

DEMOGRAPHICS

POPULATION BY RACE1 MILE 3 MILE 5 MILE

White 62.27% 56.26% 53.24%Black/African American

25.24% 34.69% 37.70%

American Indian/Alaskan Native

0.17% 0.22% 0.24%

Asian 6.45% 4.71% 5.16%Native Hawaiian/Pacific Islander

0.05% 0.06% 0.05%

Some Other Race 1.79% 1.33% 1.07%Two or More Races 4.02% 2.73% 2.54%

POPULATION 1 MILE 3 MILE 5 MILE

2010 Census 14,512 133,782 323,9772017 Estimate 14,443 135,685 328,5192022 Projection 14,555 138,040 334,321

HOUSEHOLDS1 MILE 3 MILE 5 MILE

2010 Census 6,291 54,648 128,2842017 Estimate 6,247 55,566 130,2782022 Projection 6,292 56,630 132,706

POPULATION GROWTH1 MILE 3 MILE 5 MILE

Historical Growth: 2010 to 2017

-0.47% 1.42% 1.40%

Projected Growth: 2017 to 2022

0.78% 1.74% 1.77%

HOUSEHOLD INCOME1 MILE 3 MILE 5 MILE

2017 Average Income

$80,769.00 $81,705.00 $87,392.00

2017 Median Income

$63,861.23 $62,869.50 $64,836.56

AGE BY GENDER1 MILE 3 MILE 5 MILE

Male 6,851 63,431 152,678Female 7,592 72,254 175,842

HOUSEHOLD GROWTH1 MILE 3 MILE 5 MILE

Historical Growth: 2010 to 2017

-0.70% 1.68% 1.55%

Projected Growth: 2017 to 2022

0.72% 1.92% 1.86%



PHILADELPHIA

1700 Market Street

Suite 3232

Philadelphia, PA 19103

DALLAS

2323 Victory Avenue

Suite 1200

Dallas, TX 75219

MARC MANDELManaging Director

[email protected] Investment Advisory

FINANCING ADVISOR

BRANDON CHAVOYA Managing Director

[email protected]

Financing Advisor

COLER YOAKAMSenior Managing Director


STEVE SCHRENKDirector


EXCLUSIVE MARKETING ADVISORS

Documents

1530 JOPPA ROAD TOWSON, MD