Embed Size (px)
Citation preview
Offering Memorandum
$5,106,250| Investment Details
❖ NNN Lease With Five Years Remaining on Second Option
❖ Commitment to Region Having Occupied the Space Since 1995
❖ No Landlord Responsibilities
❖ High Traffic Counts With Over 44,000 Vehicles Passing in Front of Site Daily
❖ Surrounded by Acadiana Mall (100 +/- Tenants) and Other National
Retailers such as Walmart, Sam's Club, Best Buy, Starbucks, Dairy Queen,
Big Lots, and many more
File Photo
Barnes & Noble |5705 Johnston Street, Lafayette, LA 70503
❖ Tenant Trade Name – Barnes & Noble
❖ Ownership – Public (NYSE:BKS)
❖ Lease Guarantor – Corporate
❖ No Of Locations – 649+/-
❖ Headquarters – New York City, NY
❖ Website –www.barnesandnobleinc.com
TENANT OVERVIEW
Barnes & Noble, Inc., is a Fortune 500 company, the largest retail
bookseller in the United States, and a retailer of content, digital media,
and educational products. As of January 6, 2017, the company operates
638 retail stores in all 50 U.S. states. Barnes & Noble operates mainly
through its Barnes & Noble Booksellers chain of bookstores. The
company's headquarters are at 122 Fifth Avenue in New York City. After a
series of mergers and bankruptcies in the American bookstore industry
since the 1990s, Barnes & Noble stands alone as the United States' sole
remaining national bookstore chain. Previously, Barnes and Noble
operated the chain of small B. Dalton Booksellers stores in malls until
they announced the liquidation of the chain. The company is known for
large retail outlets, many of which contain a café serving Starbucks
coffee and other snack items. Most stores sell books, magazines,
newspapers, DVDs, graphic novels, gifts, games, toys, music, and Nook
e-readers and tablets.
TENANT INFO
Overview
Price $5,106,250
Gross Leasable Area 30,000 SF
Lot Size 3.43 Acres
Net Operating Income $408,500
CAP Rate 8.00%
Year Built 1995
Lease Abstract
Lease Type NNN
Lease Term In Second Option (extended thru 2022)
Lease Start February 1, 1995
Renewal Options 4 X 5 ( 2 Remaining )
Increases During Anniversary of Option
Roof and Structure Tenant Responsible
The original lease that commenced in 1995, was 16 years in length and expired 4/2011. The Tenant signed an Amendment extending the lease thru
January 2017, and then exercised another option in February 2017, extending the lease again thru January 2022. Two remaining options in place, and
if exercised will expire in totality in January 2032.
THE OFFERING
Annualized Operating Data
Lease Term Annual Rent
Current (Option 2) $408,500
Option 3 (2/2022) $439,138
Option 4 (2/2027) $472,073
Tenant Name Property Address Sale price Cap Rate Sq Ft Rent Rent / SF Monthly SF
Walgreens 2820 E. Milton Ave 7,428,991 5.45 14,820 404,880 27.31 2.27
Best Buy 5635 Johnston St. 5,800,000 8.88 45,000 510,400 11.34 0.945
CVS (Portfolio) 1100 Veterans Memorail Dr. 14,610,754 5.57 39,673 832,812 20.99 1.749
Walgrens 806 Odd Fellows Rd 4,491,310 5.8 14,820 260,495 17.57 1.46
Walgreens 920 W Gloria Switch Rd 2,700,000 8 14,820 216,000 14.57 1.21
Freds 1801 Main Street 2,056,000 8.25 16,799 169,620 10.09 0.84
Freds 1114 S. Main Street 1,600,000 8.87 16,799 141,920 8.44 0.70
Barnes & Nobles 5704 Johnsotn St. "5305200" 7.7 30,000 408,500 13.61 1.13
Lafayette and Greater Area – SF Monthly Basis
4.7 miles from
subject site
Acadian Mall, an enclosed Mall
anchored by Macy’s, Sears, and
Dillard’s. Having opened in 1979, it is
now owned by CBL & Associates
Properties. The Mall received a facelift
in the 1990s and a major renovation in
2004 bringing a more contemporary
look to the region. There are over 100
+/- retailers located within the Mall and
a half-dozen out parcels scattered
around the premises. It serves as the
region’s destination retail hub assisting
the surrounding retailers in enjoying a
steady stream of traffic and customer
base.
Population 1-Mile 3-Mile 5-Mile
2010 5,222 59,802 118,719
2017 5,973 65,070 128,178
2022 6,517 70,452 138,559
2016
Household
Incomes
1-Mile 3-Mile 5-Mile
Average $99,828 $91,626 $87,435
Median $68,772 $64,403 $59,762
Lafayette, Louisiana
Lafayette is a city located along the Vermilion River in southwestern Louisiana. The city of Lafayette is the
fourth-largest in the state. Lafayette is considered the center of Acadiana, the area of Cajun and Creole
culture in Louisiana and the United States. Lafayette has one university, one community college, and two
vocational colleges.
The University of Louisiana at Lafayette is the second-largest university in the state, with an enrollment
of approximately18,255 (students and faculty). They offer Division I sports and feed the surrounding
retailers with a vast array of foot traffic and seasonal consumerism. The school was founded in the late
1800’s and has been a well respected institution since its inception.
The subject property is strategically located in the middle of two major national retail hubs, from the
north and south. To the north of Barnes & Nobel you can find a Walmart Super Center, Sam’s Club,
Michael’s, TJ Max, Office Depot, CVS Pharmacy, Toys R Us, Party City, Best Buy, Home Depot, Bed Bath and
Beyond, and more. All of these retail locations in the north fall within a mile of the subject property.
Directly to the south lies the Acadiana Mall. The mall is packed with retailers such as Sears, Macys, JC
Penny, GAP, Victoria Secret, Verizon, AT&T, GNC, and more. Slightly further to the south are several car
dealerships representing Audi, Mitsubishi, Toyota, Infinite, Volkswagen, Volvo, and Nissan. The dense
retail presence attracts many to the area resulting in over 44,000 vehicles passing in front of the site
daily.
Largest Retail
Bookseller in the
United States
$4.16 BillionSales Revenue
640+/-Locations
$87,4355-mile radius average HH Income
128,1785-mile radius population
52,7855-mile radius number of households
Barnes & Noble|5705 Johnston Street, Lafayette, LA 70503
Lior Regenstreif
Senior Managing Director Investments
Senior Director, Net Leased Properties Group
Tel: (818) 212-2730
Fax: (818) 212-2710
License: CA #01267761
