Upload
others
View
7
Download
0
Embed Size (px)
Citation preview
ii
3005-3031 US HIGHWAY W 17 | NEW BERN, NC 28562
™
™
i
Table of Contents
04. Execut ive Summary
06. Area Overv iew
12. Property Overv iew
16. F inancia l Overv iew
24. Tenant Overv iew
El WarnerSVP, National Director Shopping Centers DIRECT +1.310.579.9690 MOBILE +1.858.752.3078 [email protected] License No. 01890271
Lindsay TsumpesAVP, Director Shopping Centers DIRECT +1.310.579.9691 MOBILE +1.818.266.6763 [email protected] License No. 01954256
PRESENTED BY
Kyle B. Matthews, CCIMChairman & CEO
DIRECT +1.310.919.5757 MOBILE +1.310.622.3161 [email protected] License No. 01469842 License No. (NC) 2889172 | Rivertowne Square
3005-3031 US HIGHWAY W 17 | NEW BERN, NC 28562
i
Matthews Real Estate Investment Services | 3
Matthews Real Estate Investment Services | 5
Offering Summary Financial SummaryMatthews Institutional Services Group is proud to offer the fee simple sale of Rivertowne Square in New Bern, North Carolina. The property is perfectly situated along two major thoroughfares and is considered a main and main location within New Bern. The New Bern submarket is a popular tourist destination and has experienced rising rental rates as well as decreasing vacancy rates over the past 3 years, which is reflective in the current submarket vacancy rate of less than 5%.
The property is 100% leased and is anchored by a high performing Walmart (NAP) and several other national retailers. This offering includes a synergistic tenant lineup of Petsmart, Panera Bread, Chipotle, Cato, Shoe Carnival, Books-A-Million, Gamestop, and Sally Beauty.
The asset is able to attract national retailers due to its location along the primary retail corridor as well as its high performing anchor. The asset offers an investor a stabilized return with 87% of the income stream generated from nationally recognized retailers. In addition to the stabilized returns, the property has a significant value add component with re-leasing of a junior anchor space at market rents. The in place income is estimated to increase by over 15% by Year 3.
• Anchored by a high performing Walmart store.
• Excellent tenant lineup with strong sales.
• 87% of the income comes from national retailers.
• 100% leased with 15% increase in NOI in 2 years.
• Main and main location within a strong tourist destination.
• Fresh 10 year leases with Chipotle and Panera Bread.
Investment Highlights
Price Best Offer
Property Size (NRA) 75,295
Year Built 1988/1997
Current Occupancy 100.0%
Major Tenants
Petsmart 27,315
Books-A-Million 18,500
Shoe Carnival 9,950
Panera Bread 4,300
Chipotle 2,200
Shadow Anchor
Wal-Mart (NAP) 184,000 SF
Year 1 Operating Data (DCF)
Effective Gross Income $1,076,190
Operating Expenses $200,089
Net Operating Income $876,101
6 | Rivertowne Square
Matthews Real Estate Investment Services | 7
Top Employers# Employer No. of Employees1 Naval Aviation Depot (NADEP) 4,133
2 Craven County Schools 2,300
3 Craven Regional Medical Center 1,740
4 BSH Home Appliances 1,100
5 PCS Phosphate 1,037
6 Moen Inc. 1,000
7 Hatteras Yachts 925
8 Craven Community College 600
9 Weyerhaeuser Co. 530
10 New Bern City 520
11 Wal-Mart 377
12 Maola Milk & Ice Cream 345
13 Coastal Carolina Health Care 325
New Bern, NCNew Bern, the county seat of Craven County and the principal city of the New Bern Metropolitan Statistical Area, is a majestic waterfront town with a population of 29,524 as of the 2010 census. The city is conveniently situated at the confluence of the Trent and the Neuse rivers just along the North Carolina coast making them an ideal cultural hub for the coast and all of North Carolina. Rich with a history of over 300 years, along with a thriving economy, reasonable costs of living, picturesque waterfronts and preserved national forests, New Bern boasts a spectacular quality of life for its residents.
Founded in 1710, New Bern stands as the second oldest town in North Carolina and served as the first capitol of the state. Surviving through both the Revolutionary and Civil Wars, history tells its story around every corner in New Bern. The city is home to three historic districts that hold a number of elegant homes, stores, and churches dating as far back as the early 18th century. With 36 individual listings and over 150 grand sites and landmarks noted in the National Register of Historic Places, New Bern invites visitors from near and far to get lost in the historic town.
8 | Rivertowne Square
SUBJECT PROPERTY
NEW BERN MALL
Aerial
Matthews Real Estate Investment Services | 9
Regional Map
SUBJECT PROPERTY
10 | Rivertowne Square
Demographics
Population 3-Mile 5-Mile 10-Mile
2021 Projection 31,948 46,618 65,980
2016 Estimate 31,583 45,749 64,307
2010 Census 31,854 45,631 63,386
2000 Census 28,113 39,485 52,563
Growth 2016 - 2021 1.16% 1.90% 2.60%
Growth 2010 - 2016 -0.85% 0.26% 1.45%
Growth 2000 - 2010 13.31% 15.57% 20.59%
Households 3-Mile 5-Mile 10-Mile
2021 Projection 14,146 20,243 28,104
2016 Estimate 13,855 19,738 27,266
2010 Census 13,709 19,412 26,639
2000 Census 11,924 16,713 21,993
Growth 2016 - 2021 2.10% 2.56% 3.07%
Growth 2010 - 2016 1.06% 1.68% 2.35%
Growth 2000 - 2010 14.97% 16.15% 21.13%
Income 3-Mile 5-Mile 10-Mile
2016 Est. Average Household Income $54,953 $57,696 $60,609
2016 Est. Median Household Income $42,466 $45,000 $48,264
Matthews Real Estate Investment Services | 11
Points of Interest
Matthews Real Estate Investment Services | 11
As one of New Bern’s most famous attractions, Tryon Palace was the original governor’s mansion as well as the seat of colonial and early state government for the state of North Carolina. Here, visitors are encouraged to walk in the historical footsteps of colonial governors and stroll through acres of sculpted gardens for an interactive experience that blends the early 18th century with the present.
TRYON PALACE
Filled with incredible architecture, Downtown New Bern is a vibrant waterfront community lined with sailboats. The town boasts countless historic attractions, quaint restaurants, museums and gardens for tourists to enjoy. Multiple historic churches as well as the Pepsi Store, Fireman’s Museum and more are all located within Downtown.
HISTORIC DOWNTOWN
Housed in the renovated original 1928 station house, this brick fire station has been transformed into a nationally acclaimed museum. Honoring more than two centuries of firefighters, the museum displays restored equipment used throughout the evolution of firefighting and much more. As the oldest fire house in the state, the New Bern Firemen’s Museum is one of the locals most recommended attractions.
THE FIREMAN’S MUSEUM
Known as a waterfront town, New Bern’s breathtaking waterfront holds an array of activities, restaurants and sites to see. A number of boat tours and sailing cruises go out daily and for the more outdoorsy, the waterfront offers stand up paddle boarding and kayaking along with breath taking views of the historic buildings that line the way.
THE NEW BERN WATERFRONT
This 45,000 square foot convention center, located in the heart of New Bern’s riverfront, provides for exceptional conferences, meetings, banquets and more. Known for accommodating groups up to 1,350, the convention’s central location offers over 400 guest rooms within walking distance as well as shops and breathtaking views of the waterfront.
NEW BERN CONVENTION CENTER
The birthplace of the Pepsi-Cola store, originally named “Brad’s Drink”, is located in Historic Downtown New Bern, and is the actual site where the Pepsi-Cola formula was first invented by Caleb Bradham in 1898. The store is now a museum, souvenir store and soda shop.
THE BIRTHPLACE OF PEPSI-COLA
12 | Rivertowne Square
Matthews Real Estate Investment Services | 13
Physical Description
Property Name Rivertowne Square
Property address3005-3031 US Highway W 17,
New Bern, NC 28562
Assessor’s Parcel Number 8-208-036
Site Description
Number of Stories One
Year Built 1988/1997
Gross Leasable Area (GLA) 75,295 SF
Lot Size ±12.83 Acres (558,875 SF)
Type of Ownership Fee Simple
Parking ±500 Surface Spaces
Parking Ratio 7.26 : 1,000
Topography Generally Level
Construction
Foundation Concrete Slab
Framing Wood
Exterior Painted Stucco
Parking Surface Asphalt
8-208-036APNDr M
artin Luther King Jr Blvd
Lowes Blvd
14 | Rivertowne Square
Matthews Real Estate Investment Services | 15
Site Plan
1A 1B
2 7 18 20 22 24
26 28
32 34 NAPBLACK’S TIRE
AUTO SERVICENAPDOCTORS
VISIONCENTER
NAPFIRST FLIGHT
CREDIT UNION
NAP
U.S
CEL
LULA
R
Suite Tenant SF1A Books-A-Million 18,500
1B Petsmart 27,315
2 Cato 4,800
7 Shoe Carnival 9,950
18 5 Star Nails 1,250
20 Tobacco Store 1,250
Suite Tenant SF22 Ginza Japan Express 1,500
24 Gamestop 1,030
26 Athlete’s Foot 1,600
28 Sally Beauty Supply 1,600
32 Panera Bread 4,300
34 Chipotle 2,200
NAP
SUBJECT PROPERTY
16 | Rivertowne Square
Matthews Real Estate Investment Services | 17
*Note: Analysis assumes Athlete’s Foot renews on 4/16 for five years at $21.45 SF/YR with 3% annual increases.
Rent Roll
Unit Tenant Lease Start Lease End SF% of GLA
Contract Rental Rate Rent Per SF Rent IncreasesOptions
Yearly Monthly Year Month Date Increases
1A Books-A-Million Sep-97 Jan-18 18,500 24.6% $143,375 $11,948 $7.75 $0.65 None None
1B Petsmart Sep-10 Sep-20 27,315 36.3% $211,691 $17,641 $7.75 $0.65 None 3x5 yrs
2 Cato Feb-16 Jan-18 4,800 6.4% $57,600 $4,800 $12.00 $1.00 None None
7 Shoe Carnival Jul-13 Jun-23 9,950 13.2% $139,300 $11,608 $14.00 $1.17 Jul-18 $144,275 2x5 yrs
18 5 Star Nails Mar-11 Feb-20 1,250 1.7% $33,800 $2,817 $27.04 $2.25 Mar-17 Mar-18 Mar-19
$35,148 $36,564 $38,028
None
20 Tobacco Store Dec-13 Dec-16 1,250 1.7% $26,523 $2,210 $21.22 $1.77 1x3 yrs
22Ginza
Japan ExpressJan-11 Jan-21 1,500 2.0% $29,850 $2,488 $19.90 $1.66
Feb-17 Feb-18 Feb-19 Feb-20
$30,744 $31,680 $32,628 $33,600
1x5 yrs
24 Gamestop Feb-05 Feb-18 1,030 1.4% $22,660 $1,888 $22.00 $1.83 None None
26 Athlete's Foot Apr-99 Mar-21 1,600 2.1% $34,320 $2,860 $21.45 $1.79
Apr-17 Apr-18 Apr-19 Apr-20 Apr-21
$35,352 $36,408 $37,512 $38,638 $39,796
None
28 Sally Beauty Supply Apr-89 Apr-19 1,600 2.1% $30,560 $2,547 $19.10 $1.59 May-17 May-18
$31,476 $32,412
None
32 Panera Bread Jan-15 Dec-24 4,300 5.7% $129,000 $10,750 $30.00 $2.50 Jan-20 $141,900 3x5 yrs
34 Chipotle Mar-15 Mar-25 2,200 2.9% $70,400 $5,867 $32.00 $2.67 Apr-20 $77,436 4x5 yrs
Totals 75,295 100.0% 929,079 $77,423 $12.34 $1.03
18 | Rivertowne Square
INCOME DISTRIBUTION
Tenant Name In Place Rent % of Income Expiration Date
Junior Anchors
Books-A-Million $143,375 15.43% Jan-18
Petsmart $211,691 22.79% Sep-20
Cato $57,600 6.20% Jan-18
Shoe Carnival $139,300 14.99% Jun-23
Total - Anchors $551,966 59%
Shops
5 Star Nails $33,800 3.64% Feb-20
Tobacco Store $26,523 2.85% Dec-16
Ginza Japan Express $29,850 3.21% Jan-21
Gamestop $22,660 2.44% Feb-18
Athlete's Foot $34,320 3.69% Mar-21
Sally Beauty Supply $30,560 3.29% Apr-19
Total - Shops $177,713 19%
Pads
Panera Bread $129,000 13.88% Dec-24
Chipotle $70,400 7.58% Mar-25
Total - Pads $199,400 22%
Total Shopping Center $929,079 100%
Summary Tenant Profile
Anchors
Shops
Pads
National/Credit Tenant
Local/Regional Tenant
59%
87%
13%
19%
22%
Note: The property exhibits an excellent shop-to-anchor ratio as well as high performing sales volumes. Please contact the broker to get sales volumes.
Matthews Real Estate Investment Services | 19
20 | Rivertowne Square
Recent Leases
Tenant Unit Terms Start Date Size (SF)Rental Rate
Term Escalations$/SF/Yr. $/SF/Mo.
Panera Bread 32 New Jan-15 4,300 $30.00 $2.50 120 Months Jan-20
Chipotle 34 New Mar-15 2,200 $32.00 $2.67 121 Months Apr-20
Cato 2 Renewal Feb-16 4,800 $12.00 $1.17 24 Months None
Athlete's Foot 26 Renewal Apr-16 1,600 $21.45 $1.79 60 Months
Apr-17 -$35,352 Apr-18 -$36,408 Apr-19 -$37,512
Apr-20 -$38,638 Apr-21 -$39,796
12,900 $23.86 $1.99
Lease Expiration Schedule
The property exhibits near term rollover in Year 2 which creates the potential to increase rents by over 50%.
Note: As shown, there has been a significant amount of new leasing in the last 12 months, with both pad sites leased to national fast service restaurants. Cato also recently renewed for a two year term. This illustrates the strong demand and limited supply for retail units in the subject’s immediate submarket.
Year Ending Sq. Ft. % of Total
1 Apr-17 1,250 1.7%
2 Apr-18 24,330 32.3%
3 Apr-19 1,600 2.1%
4 Apr-20 1,250 1.7%
Total 28,430 37.76%
5-Year Rollover100.00%
80.00%
60.00%
40.00%
20.00%
0.00%1 2 3 4 Total
Year
Matthews Real Estate Investment Services | 21
AssumptionsAnalysis Period
Cash Flow Projection Begin Date May 1, 2016
Holding Period for Net Present Value 5 Years
Area Measures
Net Rentable Area in SF 75,295
General Projection Assumptions
Cost of Living Growth per Annum 3.00%
General Expense Growth per Annum 3.00%
Real Estate Tax Growth per Annum 2.00%
Market Rent Growth per Annum Yr1- 5%, Yr2-5%, Yr3-4%,
Exit Cost of Sale 3.00%
Leasing Assumptions - Shops and Restaurants
Market Rent $8 - $30/SF/Yr
Renewal Probability 75.00%
Downtime 3-6 Months
Tenant Improvement Allowance $10.00/SF - $20.00/SF
Leasing Commissions 6% N / 2% R
Free Rent None
Escalations 3% Annual Increase
10% Increase Every 5 Years
Operating Expenses NNN or 10%-15%NNN
Term 5-10 Years
Value-Add Assumptions:
1. Assumes the space currently occupied by Books-A-Million at $7.75 SF, upon expiration will be leased at $14.00 SF.
22 | Rivertowne Square
Cash Flow Year 1 Year 2 Year 3
For the Years Ending Apr-2017 Apr-2018 Apr-2019 ___________ ___________ ___________
Potential Gross Revenue Base Rental Revenue $929,878 $970,431 $1,086,819 Absorption & Turnover Vacancy (59,045)
___________ ___________ ___________ Scheduled Base Rental Revenue 929,878 911,386 1,086,819
Expense Reimbursement Revenue Real Estate Taxes 66,786 64,842 69,486 Liability Insurance 1,239 1,213 1,354 Property Insurance 8,928 8,759 9,760 CAM/R&M 39,140 38,254 40,083 Petsmart Fixed CAM 8,297 8,546 8,802 Petsmart Fixed Insurance 8,468 8,468 8,468 Management Fees 11,474 11,189 12,516
___________ ___________ ___________ Total Reimbursement Revenue 144,332 141,271 150,469
Recycle Bins 2,700 2,781 2,864 Furniture Income 1,750 1,803 1,857 Parking Lot Income 750 773 796 Fireworks Income 3,000 3,090 3,183
___________ ___________ ___________Total Potential Gross Revenue 1,082,410 1,061,104 1,245,988 General Vacancy (6,220) (6,984)
___________ ___________ ___________Effective Gross Revenue 1,076,190 1,061,104 1,239,004
___________ ___________ ___________Operating Expenses Real Estate Taxes 71,027 72,447 73,897 Liability Insurance 2,718 2,800 2,884 Property Insurance 19,878 20,475 21,089 CAM/R&M 74,180 76,403 78,697 Management Fees 32,286 31,833 37,170
___________ ___________ ___________Total Operating Expenses 200,089 203,958 213,737
___________ ___________ ___________Net Operating Income 876,101 857,146 1,025,267
___________ ___________ ___________
Matthews Real Estate Investment Services | 23
24 | Rivertowne Square
PetSmart, Inc., together with its subsidiaries, operates as a specialty retailer of products, services, and solutions for pets in the United States, Puerto Rico, and Canada. The company offers consumables, such as pet food, treats, and litter, as well as aquariums and habitats, accessories, décor, and filters for fish, birds, reptiles, and small pets.
As of March, 27, 2013, it operated 1,278 pet stores and approximately 196 in-store PetSmart PetsHotel dog and cat boarding facilities. The company also offers its products through an e-commerce and community site, PetSmart.com.
PetSmart, Inc. was founded in 1986 and is based in Phoenix, Arizona.
Source: Yahoo! Finance
Property Name Petsmart
Rentable Square Feet 27,315
Property Type Net Leased Specialty Store
Parent Company Trade Name PetSmart, Inc
Credit Rating BB+
Rating Agency Standard & Poors
Ownership Public
Revenue $6.758 Billion
Net Income $389.523 Million
Stock Symbol PETM
Board NasdaqGS
No. of Locations 1,278
No. of Employees 24,000
Headquartered Phoenix, AZ
Web Site www.petsmart.com
Year Founded 1986
Matthews Real Estate Investment Services | 25
Tenant: Petsmart, Inc., a Delaware corporate
Premises: Approximately 27,315 SF
Date of Lease: November 18, 2009
Commencement Date: September 10, 2010
Lease Expiration September 30, 2020
Lease Term: Ten (10) years
Renewal Options: Three (3) Five (5) year options
Rent:
Current through September 30, 2020: $212,350Option 1 Years 11-15: $239,750Option 2 Years 16-20: $267,150Option 3 Years 21-25: 294,550*Note: Rent subject to adjustment provided gross floor area of premises differs.
Percentage Rent: None
Recapture Right:If Tenant is not open for business in any consecutive 90 day period, Landlord may recapture Tenant’s space upon 30 days advance notice.
Real Estate Taxes: Tenant to pay its pro rata share of real estate taxes, or pays taxes directly if Premises are assessed separately.
Common Area Expenses:Tenant pays its pro rata share of Common Area Expenses, plus an Administrative Fee of 10%. Tenant’s pro rata share of CAM is not to grow by more than CPI in any given year. Excludes structural repairs and management fees.
Insurance: Tenant to reimburse Landlord for its cost of commercial general liability insurance of not less than $5MM per occurrence and hazard insurance for at least 80% of the replacement cost of the Shopping Center. Tenant’s obligation to reimburse Landlord is limited at $0.30 PSF for Years 1-5 of the lease, increased by $0.02 PSF for each 5 year period thereafter.
Utilities: Tenant pays directly.
Repairs and Maintenance: Tenant to maintain Premises in good condition and repair at its own cost and expense.
Tenant Assignment and Subletting Tenant may sublease or assign the Lease, subject to Landlord’s prior approval, but remains liable for all obligations.
Co-Tenancy: Walmart Supercenter, or comparable replacement. Tenant may terminate lease or opt to pay % of gross sales if co-tenancy is not satisfied. If Tenant terminates lease, Landlord to reimburse Tenant for unamortized cost of improvements.
Lease Abstract | Petsmart
26 | Rivertowne Square
Books-A-Million, Inc. operates as a book retailer primarily in the eastern United States. It operates in two segments, Retail Trade and Electronic Commerce Trade. The company operates superstores and traditional bookstores that offer hardcover and paperback books, magazines, toys, games, electronics, gifts, cards, collectibles, music, DVDs, and electronic devices and accessories. Its superstores also include Joe Muggs café that provides coffee, assorted pastries, and other edible items, as well as Yogurt Mountain, which offers frozen yogurt with self-serve toppings. The company also offers its products through the Internet at booksamillion.com. As of February 2, 2013, it operated 257 retail bookstores in 32 states and the District of Columbia, which include 201 superstores under the Books-A-Million, (BAM!), Books & Co., and 2nd & Charles names, in addition to 56 traditional stores under the Bookland, Books-A-Million, and BAM! names.
The company was founded in 1917 and is based in Birmingham, Alabama.
Source: Yahoo! Finance
Property Name Books-A-Million
Rentable Square Feet 18,500
Property Type Net Leased Specialty Store
Parent Company Trade Name Books-A-Million Inc.
Ownership Public
Revenue $503.787 Million
Net Income $2.545 Million
Stock Symbol PETM
Board NasdaqGS
No. of Locations 257
No. of Employees 2,400
Headquartered Birmingham, AL
Web Site www.booksamillion.com
Year Founded 1917
Tenant Overview
Matthews Real Estate Investment Services | 27
Tenant: Books-A-Million, Inc., a Delaware corporation
Premises: Approximately 18,500 SF
Date Of Lease: April 24, 1997
Commencement Date: September 8, 1997
Lease Expiration: January 31, 2018
Original Lease Term: Ten (10) years
Renewal Options: Two (2) Five (5) year options (Tenant is in final option period)
Rent: Current through January 31, 2018: $143,375
Percentage Rent: 3% of Gross Sales over a natural breakpoint
Security Deposit: None
Co-tenancy:Walmart Supercenter or comparable replacement, and PetSmart. If not cured within 180 days of default, then Tenant may terminate lease, or pay 50% of its base rent.
Real Estate Taxes: Tenant to pay its pro rata share of real estate taxes.
Common Area Expenses:Tenant pays its pro rata share of Common Area Expenses, plus an Administrative Fee of 10%. Tenant’s pro rata share not to exceed 5% over the prior year’s amount.
Insurance:Tenant to reimburse Landlord for its cost of commercial general liability insurance of not less than $1MM per occurrence, $3MM general aggregate per year, plus insurance required to replace at least 80% of the Premises. Tenant to maintain insurance for at least 80% of the replacement cost of Tenant’s inventory and improvements.
Utilities Tenant pays directly.
Repairs and Maintenance Tenant to maintain Premises in good condition and repair at its own cost and expense.
Tenant Assignment and Subletting
Tenant may sublease or assign the Lease, subject to Landlord’’s prior approval, but remains liable for all obligations.
Continuous Operation If Tenant does not continuously operate for over 60 days, Landlord may recapture Tenant’s space.
Co-TenancyWalmart Supercenter and PetSmart. Tenant to pay 3% of gross sales, if co-tenancy is violated, and may terminate its lease if co-tenancy is not satisfied within 180 days of violation.
Lease Abstract | Books-A-Million
28 | Rivertowne Square
Shoe Carnival, Inc. operates as a family footwear retailer in the United States. It offers various women’s, men’s, and children’s non-athletic footwear in various categories, including dress, casual, sport, sandals, and boots. The company also provides athletic shoes, such as running, basketball, and fitness shoes, and accessories, including handbags, shoe care items, and socks. As of July 10, 2013, it operated 367 stores in 32 states and Puerto Rico. The company also sells its products online through its Website at shoecarnival.com.
Shoe Carnival, Inc. was founded in 1978 and is headquartered in Evansville, Indiana.
Source: Yahoo! Finance
Property Name Shoe Carnival
Rentable Square Feet 9,950
Property Type Net Leased Apparel Store
Parent Company Trade Name Shoe Carnival Inc.
Ownership Public
Revenue $854.998
Net Income $29.338
Stock Symbol SCVL
Board NasdaqGS
No. of Locations 367
No. of Employees 2,000
Headquartered Evansville, IN
Web Site www.shoecarnival.com
Year Founded 1978
Matthews Real Estate Investment Services | 29
Lease Abstract | Shoe Carnival
Tenant: Shoe Carnival, Inc., an Indiana corporation
Premises: Approximately 9,950 SF
Date Of Lease: June 4, 2012
Commencement Date:
July 1, 2013
Lease Expiration: June 30, 2023
Original Lease Term: Ten (10) years
Renewal Options: Two (2) Five (5) year option
Rent: Current through June 30, 2018: $139,300
July 1, 2018 – June 30, 2023: $144,275
Option 1 – July 1, 2023-June 30,2028: $149,250
Option 2 – July 1, 2028-June 30, 2033: $154,225
Percentage Rent: 3% of Gross Sales over a natural breakpoint
Real Estate Taxes: Tenant to pay its pro rata share of real estate taxes.
Common Area Expenses:
Tenant pays its pro rata share of Common Area Expenses, plus an Administrative Fee of 10%. Tenant’s pro rata share not to exceed 4% over the prior year’s amount.
Insurance:Tenant to reimburse Landlord for its cost of commercial general liability insurance of not less than $1MM per occurrence, $2MM aggregate, plus insurance required to replace at least 80% of the Premises. Tenant to maintain general liability insurance for up to $3MM per occurrence and special form insurance covering Tenant’s inventory and improvements.
Utilities: Tenant pays directly.
Repairs and Maintenance: Tenant to maintain Premises in good condition and repair at its own cost and expense.
Tenant Assignment and Subletting: Tenant may sublease or assign the Lease, subject to Landlord’s prior approval, but remains liable for all obligations.
Continuous Operation: If Tenant does not continuously operate for over 120 days, Landlord may recapture Tenant’s space.
Co-Tenancy: Walmart Supercenter and PetSmart, or similar replacement tenants. Tenant to pay 3% of gross sales, if co-tenancy is violated, and may terminate its lease if co-tenancy is not satisfied within 18 months of violation.
Early Termination: Tenant may terminate its lease if Gross Sales do not meet or exceed $216 PSF in the fourth Lease Year. Said notice to be given within 6 months of the fourth Lease Year, and will be effective at the end of the fifth Lease Year.
30 | Rivertowne Square
Matthews Real Estate Investment Services | 31
Tenant Panera Bread
Rentable Square Feet 4,300
Property Type Restaurant
Parent Company Trade Name Panera Bread Company
Ownership Public
Revenue $2.13 Billion
Stock Symbol PNRA
Board NASDAQ
No. of Locations ± 1,736
Headquartered St.Louis, MO
Web Site www.panerabread.com
Year Founded 1981
The Panera Bread® legacy began in 1981 as Au Bon Pain Co., Inc. Founded by Louis Kane and Ron Shaich. The company prospered along the East Coast of the United States and internationally throughout the 1980’s and 1990’s and became the dominant operator within the bakery-cafe category.
By 1997, it was clear that Panera Bread had the potential to become one of the leading brands in the nation. In order for Panera Bread to reach its potential, it would require all of the company’s financial and management resources. In May 1999, all of Au bon Pain Co., Inc.’s business units were sold, with the exception of Panera Bread, and the company was renamed Panera Bread. Since those transactions were completed, the company’s stock has grown thirteen-fold and over $1 billion in shareholder value has been created. www.panerabread.com
The Cato Corporation operates as a specialty retailer of fashion apparel and accessories in the Southeastern United States. The company operates in two segments, Retail and Credit. Its stores offer a range of apparel and accessories for women, including dresses, coats, shoes, lingerie, costume jewelry, and handbags, as well as dressy, career, and casual sportswear. Its stores also offer mens wear, and lines for kids and newborns. The company operates its stores primarily under the Cato, Cato Fashions, Cato Plus, Its Fashion, Its Fashion Metro, and Versona Accessories names. As of August 3, 2013, the company operated 1,306 stores in 31 states. It also provides credit cards to its customers. The Cato Corporation was founded in 1946 and is based in Charlotte, North Carolina.
Source: Yahoo! Finance
Property Name Cato
Rentable Square Feet 4,800
Property Type Net Leased Apparel Store
Parent Company Trade Name The Cato Corporation
Ownership Public
Revenue $944.048 Million
Net Income $61.668 Million
Stock Symbol CATO
Board NYSE
No. of Locations 1,306
No. of Employees 9,600
Headquartered Charlotte, NC
Web Site www.catofashions.com
Year Founded 1946
32 | Rivertowne Square
CONFIDENTIALITY & DISCLAIMER STATEMENT
This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Rivertowne Square located at 3005-3031 US Highway W 17, New Bern, NC 28562 (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l -inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their 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 ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.
By acknowledging your receipt 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 hold i t and treat i t in the str ictest of conf idence; and
3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.
Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.
I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.
A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.
This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.
Matthews Real Estate Investment Services | 33
™
™
3005-3031 US HIGHWAY W 17 | NEW BERN, NC 28562
El WarnerSVP, National Director
Shopping Centers DIRECT +1.310.579.9690 MOBILE +1.858.752.3078 [email protected]
License No. 01890271
Lindsay TsumpesAVP, Director
Shopping Centers DIRECT +1.310.579.9691 MOBILE +1.818.266.6763
[email protected] License No. 01954256
Kyle B. Matthews, CCIMChairman & CEO
DIRECT +1.310.919.5757 MOBILE +1.310.622.3161
[email protected] License No. 01469842
License No. (NC) 288917