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two-tenant building leased to two nationally branded corporate tenants on new 10-year leases
1491 South Danville Bypass, Danville, KY 40422
Aspen Dental & AT&Ttwo tenant net leased building
Click for Map [ www.CapitalPacific.com ]
RENTABLE SF . . . . . . . . . . . 8,000 SF
PRICE PER SF . . . . . . . . . . . $466.25
OCCUPANCY . . . . . . . . . . . 100%
YEAR BUILT . . . . . . . . . . . 2016
LAND AREA . . . . . . . . . . . 0.845 AC
TENANTS . . . . . . . . . . . . . AT&T & Aspen Dental
Listing Team Contact Info
In conjunction with KY Licensed Broker:Steven Shafer, PRG Investments [email protected] | (502)-365-3840
Capital Paciic collaborates. Click Here to meet the rest of our San Francisco team.
dave [email protected] | (415) 274-7390CA BRE# 01389761
joe [email protected] | (415) 274-7394CA BRE# 01191110
The subject property is a new construction, two-tenant building located on the major retail corridor in Danville, which is just 35 miles from Lexington and is part of the Lexington MSA.
The asset is an outlot pad in the Ridgeield Shopping Center, anchored by Kroger, Hobby Lobby, Tractor Supply, T.J.Maxx, Dollar Tree, and Liquor Barn. Ridgeield Shopping Center underwent a major reposition in 2014/2015 and this is the last piece of the center to be redeveloped. Every one of the tenants in the center were put on new leases within the last two years.
The subject property is fully leased to two corporate credit tenants: Aspen Dental and AT&T, both of which signed new 10-year leases with bumps in the rent and options at the lease expirations.
investment highligh
ts
PRICE: $3,730,000
CAP: 7.00%
NOI: $260,975
NEW CONSTRUCTION ASPEN DENTAL-AT&T ASSET IN CORE RETAIL
CORRIDOR IN DANVILLE, KY.
AT&T & ASPEn DEnTAL | 2
new 2016 construction building
10-year corporate leases
core characteristics
corporate 10-Year NNN leases
Both tenants are on new corporate 10-year leases with rental increases every ive years and options.
NatioNal & regioNal shadow aNchor teNaNts
The subject property is shadow-anchored by Kroger, Liquor Barn, Hobby Lobby, T.J. Maxx, and Tractor Supply. These tenants create a huge draw of customers into the center.
NewlY repositioNed ceNter
The subject property represents the inal piece of one of the most successful shopping center reposition developments in the state of Kentucky in the last decade. The site was a former Rally’s burger that was scraped and completely redeveloped showing a strong demand for one of three retail pad sites in the center.
excelleNt access & VisibilitY
The subject property is located along South Danville Bypass, the main retail corridor in Danville. Average daily traic counts on South Danville Bypass are in excess of 20,000. There are two signalized intersections controlling traic into the shopping center.
retail core of daNVille
The subject property is strategically located in the heart of Danville’s big box retail core. This retail node creates a large regional pull from the smaller towns in the southern Bluegrass Region.
New coNstructioN buildiNg
The 2016 construction building features attractive inishes with a contemporary design.
AT&T & ASPEn DEnTAL | 3
large regional pull The subject property is strategically located in the main retail hub in Danville. The property beneits from the regional draw created from the big box retailers in the immediate trade area, such as Walmart, Kroger, Lowe’s, JC Penney, Hobby Lobby, and Tractor Supply. This retail corridor in Danville pulls customers from all over the city as well as surrounding communities like Stanford, Junction City, Perryville, Hustonville, and Lancaster.
DANVILLE, KY
MSA POPULATION
56,000DANVILLEATOKAPERRYVILLE
STANFORD
HUSTONVILLE
JUNCTION CITY
MITCHELLSBURG
LANCASTER
AT&T & ASPEn DEnTAL | 4
dominant regional retail trade area THE SUBJECT PROPERTY IS LOCATED IN THE RETAIL CORE OF DANVILLE, KY.
S Danville Bypass
Hustonville R
oad
S Danville Bypass
S D
anvi
lle B
ypas
s
BYP
150
BYP
150
BYP
127
BYP 127
127
Hogsett Elementary
Kentucky School for the Deaf
Danville Manor
LEXINGTON
20,200 DAILY
AT&T & ASPEn DEnTAL | 5
fully repositioned center
NEW 2016 CONSTRUCTION
FORMER K-MART BUILDING
Lease SignedLate 2015
Lease SignedLate 2014
FORMER GOODY’S BUILDING
Lease SignedMid 2016
FORMER SHOP SPACE (LOCAL TENANTS)
Lease SignedLate 2014
Lease SignedEarly 2016
Lease SignedLate 2014
Lease SignedLate 2015
Lease SignedLate 2015
SUMMER HOKKAIDO
Tenant has been in their location since early 2000’s. Tractor
Supply recommitted to the site with a long term lease extension.
The Ridgefield Shopping Center is regarded as one of the most successful shopping center reposition projects in Kentucky in the last decade. The shopping center was anchored by a former Kmart and Goodys along with other local tenants. Because the location was already the dominant retail trade area in the region, the developer was able to attract a ‘tier one’ line up of national and regional tenants into the existing real estate and reposition the center into a dominant regional center that it is today.
The subject property was a former Rally’s QSR site and was demolished and completely rebuilt for AT&T and Aspen Dental. The subject property is the only new construction building in the center demonstrating the ability to command new construction rents and long term marketability of the site.
A new pad site is going to developed for a
large national tenant.
NEW NATIONAL TENANT PAD
AT&T & ASPEn DEnTAL | 6
The subject property is strategically located at a signiicant corner along Danville’s major retail corridor. It is an out-lot pad in the Ridgeield Shopping Center, which is positioned at the signalized intersection of the S. Danville Bypass and Denmark Drive. Kroger is located next door to the center and acts as an additional (grocery) shadow-anchor for the subject property. The South Danville Bypass serves as the city’s major traic loop with average daily traic counts in excess of 20,000.
excellent retail location
20,200 DAILY
Signlized Intersection
AT&T & ASPEn DEnTAL | 7
income & expense
CurrentCurrentCurrentCurrent CurrentCurrentCurrentCurrent
Price: $3,730,000 Proposed Loan Amount $2,424,500
Capitalization Rate: 7.00% Loan to Value 65%
Price Per Square Foot: $466.25 Interest Rate 4.20%
Down Payment 35% $1,305,500 Amortization 25 Year
Loan Amount 65% $2,424,500 Term 10 Year Fixed
Total Leased (SF): 100.00% 8,000 Lender Type Bank
Total Vacant (SF): 0.00% 0 Net Operating Income $260,975
Total Rentable Area (SF): 100.00% 8,000 Debt Service ($156,800)
INCOMEINCOMEINCOMEINCOME Per Square FootPer Square FootPer Square FootPer Square Foot Pre-Tax Cash Flow $104,175
Scheduled Rent* $32.62 $260,975 Debt Coverage Ratio 1.66
Tax Recovery $0.85 $6,800 Cash-on-cash Return 7.98%
CAM Recovery $0.65 $5,200 Principal Pay down (Year 1) $56,042
Insurance Recovery $0.25 $2,000 Total Return $160,217
EFFECTIVE GROSS INCOMEEFFECTIVE GROSS INCOMEEFFECTIVE GROSS INCOMEEFFECTIVE GROSS INCOME $274,975$274,975$274,975$274,975 Yield 12.27%
ADJUSTED GROSS INCOMEADJUSTED GROSS INCOMEADJUSTED GROSS INCOMEADJUSTED GROSS INCOME $274,975$274,975$274,975$274,975
EXPENSE (2016 Budget) EXPENSE (2016 Budget) EXPENSE (2016 Budget) EXPENSE (2016 Budget) Property Tax ($0.85) ($6,800)
CAM ($0.65) ($5,200)
Insurance ($0.25) ($2,000)
TOTAL OPERATING EXPENSESTOTAL OPERATING EXPENSESTOTAL OPERATING EXPENSESTOTAL OPERATING EXPENSES ($1.75)($1.75)($1.75)($1.75) ($14,000)($14,000)($14,000)($14,000)
NET OPERATING INCOMENET OPERATING INCOMENET OPERATING INCOMENET OPERATING INCOME $260,975$260,975$260,975$260,975
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
AT&T & ASPEn DEnTAL | 8
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
rent roll
Tenant Sq. Ft.Percent of
LotMonthly Rent
Annual
RentRent/FT/YR CAM ($/ft) Taxes Insurance
AT&T 4,500 56.25% 07/12/16 07/31/26 $12,487.50 $149,850.00 $33.30 $0.65 $0.85 $0.25
New Cingular Wireless PCS, LLC Increase 08/01/21 07/31/26 $13,425.00 $161,100.00 $35.80
Option 1 08/01/26 07/31/31 $14,062.50 $168,750.00 $37.50
Option 2 08/01/31 07/31/36 $15,000.00 $180,000.00 $40.00
Aspen Dental 3,500 43.75% 08/19/16 08/31/26 $9,260.42 $111,125.00 $31.75 $0.65 $0.85 $0.25
Aspen Dental Management, Inc. Increase 09/01/21 08/31/26 $10,004.17 $120,050.00 $34.30
Option 1 09/01/26 08/31/31 $10,803.33 $129,640.00 $37.04
Option 2 09/01/31 08/31/36 $11,666.67 $140,000.00 $40.00
Option 3 09/01/36 08/31/41 $12,600.00 $151,200.00 $43.20
Current Totals: 8,000 100.00% $21,747.92 Total NNN: $3.50
Occupied: 8,000 100.00% $260,975.00
Vacant: 0 0.00%
2016 Total Annual Gross Rent:
LEASE TERMS
Term
2016 Total Monthly Gross Rent:
RENTal Rates Recovery
AT&T & ASPEn DEnTAL | 9
SITE PLAN KEY
PARCEL ouTLInE:
LAnD AREA: 0.845 AC
BuILDInG AREA: 8,000 SF
InGRESS/EGRESS:
38,000 DAILY
site plan D
enmark D
rive
S Danville BypassBYP
150BYP
127
SUMMER HOKKAIDO
Signlized Intersection
Signlized Intersection
NEW NATIONAL
TENANT PAD
AT&T & ASPEn DEnTAL | 10
Aspen Dental Management Inc. provides non-clinical business support services to independently owned and operated dental practices in approximately 33 states. This includes inding the right location, payroll, beneits, equipment, accounting, and marketing.
Aspen Dental has more then 500 locations and, in 2015 alone, Aspen Dental-branded practices recorded nearly 3.7 million patient visits and welcomed nearly 785,000 new patients. Aspen Dental has an S & P rating of “B” .
AT&T Inc. (nYSE: “T”) is the nation’s leading provider of wireline voice communications services with 243,620 employees. It is also a top provider of IPvoice and digital video services.
For the iscal year ending December 2015, AT&T Inc. reported revenue of $146.8 billion and net income of $13.6 billion. It has an S & P rating of “BBB+” and is #12 on the Fortune 500.
GROSS REVENUE$146.8 Billion
NET INCOME
$13.6 Billion
tenants
AT&T & ASPEn DEnTAL | 11
1 MILE
3 MILES
5 MILES
1-Mile 3-Miles 5-Miles
2010 1,060 16,871 22,979
2016 1,190 18,161 24,474
2021 1,221 18,525 24,975
POPULATION
1-Mile 3-Miles 5-Miles
AVERAGE $36,750 $52,109 $54,892
MEDIAN $27,431 $37,897 $40,024
2016 HOUSEHOLD INCOMES
subject
property
demographics
AT&T & ASPEn DEnTAL | 12
regional map
AT&T & ASPEN DENTAL
DAnvILLE
LouISvILLE
1 HR 26 MIn83 MILES
LExInGTon
FRAnKFoRT
52 MIn43 MILES
LEXINGTON, KY 35 MILES 48 MINS
FRANKFORT, KY 43 MILES 52 MINS
LOUISVILLE, KY 83 MILES 1 HR, 26 MINS
DRIVE TIMES
FROM
DANVILLE
48 MIn35 MILES
LOUISVILLE, KY
POPULATION
760,000
FRANKFORT, KY
POPULATION
26,000
LEXINGTON, KY
POPULATION
308,000
AT&T & ASPEn DEnTAL | 13
about daNVille, kY
Danville is located approximately 35 miles southwest of Lexington and covers an area of15.09 square miles. It is the county seat of Boyle County and has a population of about 16,400.
Danville is the home of Centre College, one of the most prestigious small liberal arts colleges in America. Centre is an undergraduate four-year institution with an enrollment of approximately 1,375 students. In 2014, Forbes magazine ranked Centre 81st in the nation among all colleges and universities and 11th among all colleges and universities in the South.
The City’s broad-based economy includes agricultural, commercial, industrial, and educational enterprises. Danville, as the economic hub of Boyle County, has evolved into a regional commerce center. Residents of the city and surrounding areas shop, work, obtain a college education, and receive medical care in Danville.
Manufacturing, distribution, health care, and education provide many jobs in Danville, and the area’s rich soil also allows agriculture to remain a vital part of the economy. The city’s largest employers are Ephraim McDowell Regional Medical Center, RR Donnelley, American Greetings, Berry Plastics, Intelligrated, The Timberland Company, and Dana Corporation.
Lexington, the second largest city in Kentucky, is just a 45 minute drive from Danville. Lexington ofers residents and tourists a variety of amenities such as horse racing at keeneland, the Kentucky Bourbon Trail, and the university of Kentucky sporting events.
location
DANVILLE, KY
POPULATION
16,400
CENTRE COLLEGE
POPULATION
[ centre college ]
COMPANY ± EMPLOYEES
RR Donnelley 900
American Greetings 600
Dana Corporation 328
Berry Plastics 260
Intelligrated 220
TOP EMPLOYERS IN DANVILLE, KY
1RANKED #1 OF THE “TOP 20
SMALL CITIES IN THE USA” –
CITYDESCRIBED.COM
#
1,375
AT&T & ASPEn DEnTAL | 14
SUBJECT PROPERTY IS AN OUT-LOT
PAD IN A HIGH TRAFFIC, NEWLY
REPOSITIONED SHOPPING CENTER
photos
AT&T & ASPEn DEnTAL | 15
AT&T & ASPEn DEnTAL | 16
new construction details
Subject property features high-end, attractive inishes giving the building a contemporary design.
ATTRACTIVE BRICK FINISHES
WINDOWS
ROOFING
new membrane with a 10-year warranty
Eicient materials economise energy
PARKING LOT
new asphalt parking lot.
HVAC
new HvAC units
BUILDING
Block construction building
A unique HUMANRESULTS-DRIVEN client experience
THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS
[ www.CapitalPacific.com ]
[ Copyright © 2016 Capital Paciic ]
CHRIS KOSTANECKI
CHRIS PETERS
RICK SANNER
ZANDY SMITH
JACK NAVARRA
ZEB RIPPLE
JOHN ANDREINI
JOE CACCAMO
GREGG STEELE
KARLA ZENS
Capital Paciic collaborates. Click Here to meet the rest of our San Francisco team.
DAVE [email protected] | (415) 274-7390 CA BRE# 01389761
JOE [email protected] | (415) 274-7394 CA BRE# 01191110
In conjunction with KY Licensed Broker:Steven Shafer, PRG Investments [email protected] | (502)-365-3840
AARON SUSMAN
DAVE LUCAS
