El Dorado Centre · 2020. 8. 3. · national tenants, El Dorado Centre offers potential upside to an investor. OFFERING SUMMARY Sale Price: $1,878,900 Building Size: 13,805 SF Price

El Dorado Centre2733 West Central Avenue, El Dorado, KS 67042

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PROPERTY INFORMATION 3

LOCATION INFORMATION 7

FINANCIAL ANALYSIS 12

SALE COMPARABLES 19

DEMOGRAPHICS 24

ContentsConfidentiality & DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictlyconfidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichapand should not be made available to any other person or entity without the written consent ofMarcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest in thesubject property. The information contained herein is not a substitute for a thorough due diligenceinvestigation. Marcus & Millichap has not made any investigation, and makes no warranty orrepresentation, with respect to the income or expenses for the subject property, the futureprojected financial performance of the property, the size and square footage of the property andimprovements, the presence or absence of contaminating substances, PCB's or asbestos, thecompliance with State and Federal regulations, the physical condition of the improvements thereon,or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions tocontinue its occupancy of the subject property. The information contained in this MarketingBrochure has been obtained from sources we believe to be reliable; however, Marcus & Millichaphas not verified, and will not verify, any of the information contained herein, nor has Marcus &Millichap conducted any investigation regarding these matters and makes no warranty orrepresentation whatsoever regarding the accuracy or completeness of the information provided.All potential buyers must take appropriate measures to verify all of the information set forth herein.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant orlessee identified in this marketing package. The presence of any corporation’s logo or name is notintended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation ofMarcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listingof Marcus & Millichap, and is solely included for the purpose of providing tenant lessee informationabout this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS

Special COVID-19 NoticeAll potential buyers are strongly advised to take advantage of their opportunities and obligations toconduct thorough due diligence and seek expert opinions as they may deem necessary, especiallygiven the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus &Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of anyprospective purchaser. Marcus & Millichap’s principal expertise is in marketing investmentproperties and acting as intermediaries between buyers and sellers. Marcus & Millichap and itsinvestment professionals cannot and will not act as lawyers, accountants, contractors, or engineers.All potential buyers are admonished and advised to engage other professionals on legal issues, tax,regulatory, financial, and accounting matters, and for questions involving the property’s physicalcondition or financial outlook. Projections and pro forma financial statements are not guaranteesand, given the potential volatility created by COVID-19, all potential buyers should be comfortablewith and rely solely on their own projections, analyses, and decision-making.)


TABLE OF CONTENTS

Section 1 PROPERTY INFORMATION

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DEMOGRAPHICS 1 MILE 3 MILES 5 MILESTotal Households 1,282 4,526 7,005

Total Population 3,304 11,450 17,613

Average HH Income $49,516 $50,948 $54,581

PROPERTY OVERVIEW

Marcus & Millichap is pleased to offer the opportunity to acquire a 13,805-square foot, Walmart shadow-anchored,

multi-tenant retail center in El Dorado, Kansas. Currently 85 percent occupied with a strong tenant base of primarily

national tenants, El Dorado Centre offers potential upside to an investor.

OFFERING SUMMARYSale Price: $1,878,900

Building Size: 13,805 SF

Price / SF: $136.10

Cap Rate: 7.03%

Current NOI: $132,123

Pro Forma Cap Rate: 9.27%

Pro Forma NOI: $174,210

Year Built: 2005


PROPERTY INFORMATION | EXECUTIVE SUMMARY

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PROPERTY DESCRIPTION

Marcus & Millichap is pleased to offer the opportunity to acquire a 13,805-square foot,

Walmart shadow-anchored, multi-tenant retail center in El Dorado, Kansas. El Dorado

Centre is anchored by Cato and has a complementary mix of internet-resistant tenants.

Other tenants include AT&T, Great Clips, Jimmy John's, and Big E Vapor. The center is 85

percent occupied, and all current leases are triple-net leases. Constructed in 2005, the

center is situated on a 1.5-acre lot. Recent property improvements include a new roof in

2017 with a 20-year warranty, new exterior painting, and new pylon signage.

LOCATION DESCRIPTION

El Dorado Centre is located on West Central Avenue near the signalized intersection with

South Village Road. Traffic counts exceed 16,800 vehicles per day in front of the property.

The center is shadow-anchored by Walmart Supercenter and directly across from

Sutherlands. Other national retailers in the area include Dollar Tree, Hibbett Sports,

AutoZone, Orscheln Farm & Home, Goodwill, Citizens Bank, Verizon Wireless, Pizza Hut,

Days Inn, Holiday Inn, Community Bank, Burger King, and more.

El Dorado Centre is less than two miles from Butler Community College. Butler Community

College is the second largest community college in Kansas with six campus locations. The

location in El Dorado serves a student population of more than 8,300 students per year.

El Dorado is the county seat of Butler County. The city is located 32 miles north of Wichita,

the largest city in Kansas. The population within five miles of the property exceeds 17,600

residents. El Dorado is home The El Doardo Refinery, the largest refinery in the state of

Kansas. The refinery produces more than 135,000 barrels per day with production split

between gasoline, diesel, jet fuel, asphalt, and other refined petroleum products.


PROPERTY INFORMATION | PROPERTY DESCRIPTION

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BUILDING INFORMATIONOccupancy % 85%

Tenancy Multiple

Year Built 2005

County Butler

Ownership Type Fee Simple

PROPERTY HIGHLIGHTS• 13,805-Square Foot, Multi-Tenant Retail Center

• Shadow-Anchored by Walmart Supercenter

• 85% Occupied | All Leases are Triple-Net

• 71% of the Gross Leasable Area has National Tenants

• Cato is a Publicly-Traded Company

• AT&T has a Strong Franchisee Guaranty from AT&T's Largest Authorized Retailer in theUnited States with More Than 2,000 Locations

• Building has an Attractive Facade and is Situated on a 1.5-Acre Lot with Ample Parking

• Recent Property Improvements Include a New Roof in 2017, Exterior Paint and NewPylon Sign installed in 2018

• Near the Signalized Intersection of West Central Avenue and South Village Road

• Traffic Counts are Approximately 16,800 Vehicles per Day in Front of the Property

• Nearby Traffic Drivers Include Walmart, Sutherlands, Dollar Tree, Advance America,Days Inn, Holiday Inn, AutoZone, Orscheln Farm & Home, Goodwill and More

• Less than Two Miles from Butler County Community College | Estimated Enrollment of8,300 Students

• Located 32 Miles Northwest of Wichita | Wichita is the Largest City in Kansas

• El Dorado is the County Seat of Butler County


PROPERTY INFORMATION | COMPLETE HIGHLIGHTS

Section 2 LOCATION INFORMATION

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El Dorado Centre


LOCATION INFORMATION | REGIONAL MAP

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LOCATION INFORMATION | AERIAL MAPS

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Section 3 FINANCIAL ANALYSIS

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INVESTMENT OVERVIEW CURRENT PRO FORMAPrice $1,878,900 $1,878,900

Price per SF $136.10 $136.10

CAP Rate 7.03 % 9.27 %

OPERATING DATA CURRENT PRO FORMAGross Income $208,807 $252,566

Operating Expenses $76,684 $78,356

Net Operating Income $132,123 $174,210

FINANCING DATA CURRENT PRO FORMADown Payment $1,878,900 $1,878,900

Loan Type All Cash All Cash


FINANCIAL ANALYSIS | FINANCIAL SUMMARY

INCOME SUMMARY CURRENT PER SF PRO FORMA PER SF

Base Rent $148,590 $10.76 $148,590 $10.76

Vacant Space at Market Rents $0 $0.00 $25,620 $12.00

Real Estate Taxes Reimbursements $44,271 $3.21 $52,370 $3.79

Insurance Reimbursements $3,006 $0.22 $3,556 $0.26

Common Area Maintenance Reimbursements $9,834 $0.71 $12,430 $0.90

Management Fee Reimbursements $3,106 $0.22 $10,000 $0.72

GROSS INCOME $208,807 $15.13 $252,566 $18.30

EXPENSE SUMMARY CURRENT PER SF PRO FORMA PER SF

Real Estate Taxes $52,370 $3.79 $52,370 $3.79

Insurance $3,556 $0.26 $3,556 $0.26

Water & Sewer $3,597 $0.26 $3,597 $0.26

Landscaping $1,890 $0.14 $1,890 $0.14

Trash Removal $336 $0.02 $336 $0.02

Snow Removal $2,525 $0.18 $2,525 $0.18

Day Porter $1,566 $0.11 $1,566 $0.11

Electricity $1,420 $0.10 $1,420 $0.10

Repairs & Maintenance $1,096 $0.08 $1,096 $0.08

Management Fee $8,328 $0.60 $10,000 $0.72

GROSS EXPENSES $76,684 $5.55 $78,356 $5.68

NET OPERATING INCOME $132,123 $9.57 $174,210 $12.62

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FINANCIAL ANALYSIS | INCOME & EXPENSES

TENANTNAME

UNITSIZE (SF)

% OFGLA

LEASESTART

LEASEEND

ANNUALRENT

ESCDATE

PRICEPER YEAR

LEASETYPE OPTION

Cato 3,600 26.08 3/01/05 1/31/26 $44,100

2/1/2025

$12.25

$13.48

NNN None

Big E Vapor Shops 1,800 13.04 7/23/18 7/31/21 $15,000 $8.33 NNN (1) 3-Year @ $9.33/$9.67/$10.00

Great Clips 1,200 8.69 6/23/16 8/31/26 $15,600

7/1/2021

$13.00

$13.65

NNN (2) 5-Year @ $14.33/$15.00

AT&T 2,920 21.15 6/24/08 8/23/21 $49,640 $17.00 NNN (2) 5-Year @ $18.70/$20.68

Jimmy John's 2,150 15.57 11/26/18 8/31/24 $23,650 $11.00 NNN (3) 5-Year $12.65/$14.55/$16.73

Vacant 2,135 15.47 $0 $0.00

Totals/Averages 13,805 $147,990 $10.72

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FINANCIAL ANALYSIS | RENT ROLL

TENANT NAME UNIT SIZE (SF) % OF GLA COVID AGREEMENTCato 3,600 26.08 Tenant agreed to extend the lease expiration date an additional 12 months, expiring on January 31, 2026. Tenant received a

Rent Abatement during May and June, 2020. Base Rent for the months of July 1, 2020 - January 31, 2025 shall be $3,675/month, and for the months of February 1, 2025 - January 31, 2026 Base Rent shall be $4,042.50/month.

Great Clips 1,200 8.69 Tenant was granted a Rent Deferment for the months of April and May, 2020; the lease expiration date was extended for an additional two months through August 31, 2026. Base Rent for the months of June 1, 2020 - June 30, 2021 shall be $1,300/month, and for the months of July 1, 2021 - August 31, 2026 Base Rent shall be $1,365.

AT&T 2,920 21.15 Tenant was granted a Rent Abatement and paid 50% of Base Rent for two months (April and May 2020).

Jimmy John's 2,150 15.57 Tenant was granted a Rent Deferment for the months of April and May 2020; the lease expiration date was extended for an additional two months through August 31, 2024 (the "Extended Term"). Commencing on April 1, 2020, Tenant shall provide Landlord with a written report on an annual basis, of annual gross sales receipts for the preceding Lease Year, attributable to the operation of Tenant's business on the Premises.

COVID-19 TENANT AGREEMENTS

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FINANCIAL ANALYSIS | COVID-19 TENANT AGREEMENTS

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FINANCIAL ANALYSIS | SITE PLAN

CATO

AT&T

Cato is an American retailer of women's fashions and accessories. Cato operates morethan 1,370 stores under the names Cato, Cato Plus, It's Fashion, It's Fashion Metro, andVersona. Based in Charlotte, North Carolina, Cato is a public company whose stock istraded on the New York Stock Exchange under the symbol CATO.

LOCATIONS 1,370+

SQ. FT. 3,600

TENANT TRADE NAME CATO | NYSE

AT&T Inc is the world's largest provider of mobile telephone services. As of 2018, AT&T isranked #9 on the Fortune 500 rankings of the largest United States Corporations by totalrevenue. Based in Dallas, Texas, AT&T is a public company whose stock is traded on TheNew York Stock Exchange under the symbol T.

The location at El Dorado Centre is franchised by Spring Mobile c/o PrimeCommunications, AT&T's largest authorized retailer in the United States with more than2,000 locations.

LOCATIONS 16,000+

SQ. FT. 2,920

TENANT TRADE NAME T | NYSE

JIMMY JOHN'S

Jimmy John's is an American owned sandwich fast food franchise that specializes indelivery. Jimmy John's is a subsidiary of Inspire Brands, which also owns Buffalo WildWings, Arby's, Sonic Drive-In, and Rusty Taco.

The location at El Dorado Centre is franchised by Before the Hunt, LLC d/b/a Jimmy John'sand the franchisor’s sole location

LOCATIONS 2,800+

SQ. FT. 2,150

GREAT CLIPS

Great Clips is a hair salon franchise with locations in the United States and Canada. The location at El Dorado Centre is franchised by Shear Energy, Inc. d/b/a Great Clips andis the franchisor’s sole location

LOCATIONS 4,100+

SQ. FT. 1,200

JIMMY JOHN'S

OPTIONS (3) 5-Year $12.65/$14.55/$16.73

OPTIONS (2) 5-Year @ $18.70/$20.68OPTIONS (2) 5-Year @ $14.33/$15.00

GUARANTOR Corporate GUARANTOR Personal (4)

GUARANTOR PersonalGUARANTOR Spring Mobile c/o Prime Communications

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FINANCIAL ANALYSIS | TENANT INFORMATION

Section 4 SALE COMPARABLES

SUBJECT PROPERTY

2733 West Central Avenue | El Dorado, KS 67042

$1,878,900Sale Price: 1.5 ACLot Size:

2005Year Built: 13,805 SFBuilding SF:

$136.10Price PSF: 7.03%Cap:

$132,123NOI:

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STARBUCKS | AT&T RETAIL CENTER

11661 East Kellogg Drive | Wichita, KS 67207



$445.88Price PSF: 6.27%CAP:

11/19/2018Closed: 100%Occupancy:

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WALMART PAD - BAUER FARM

565 Wakarusa Drive | Lawrence, KS 66049





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SALE COMPARABLES | SALE COMPS

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SHOPS OF REGENCY LAKES

2413 North Greenwich Road | Wichita, KS 67226





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AT&T STRIP CENTER

1903 North 14th Avenue | Dodge City, KS 67801





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METCALF COMMONS

11625-11635 Metcalf Avenue | Overland Park, KS 66210



$151.85Price PSF: 7%CAP:


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SALE COMPARABLES | SALE COMPS

SUBJECT PROPERTY PRICE BLDG SF PRICE/SF CAP SALE DATE

El Dorado Centre

2733 West Central Avenue

El Dorado, KS 67042

$1,878,900 13,805 SF $136.10 7.03% -

SALE COMPS PRICE BLDG SF PRICE/SF CAP SALE DATE

Starbucks | AT&T Retail Center11661 East Kellogg Drive

Wichita, KS 67207

$3,650,000 8,186 SF $445.88 6.27% 2018-11-19

Walmart Pad - Bauer Farm565 Wakarusa Drive

Lawrence, KS 66049

$5,096,048 10,850 SF $469.68 6.37% 2020-03-31

Shops of Regency Lakes2413 North Greenwich Road

Wichita, KS 67226

$5,405,000 14,000 SF $386.07 6.55% 2018-03-22

AT&T Strip Center1903 North 14th Avenue

Dodge City, KS 67801

$1,700,000 5,200 SF $326.92 6.97% 2018-06-15

Metcalf Commons11625-11635 Metcalf Avenue

Overland Park, KS 66210

$2,050,000 13,500 SF $151.85 7.0% 2018-08-14

PRICE BLDG SF PRICE/SF CAP SALE DATE

Totals/Averages $3,580,210 10,347 SF $346.01 6.63%

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SALE COMPARABLES | SALE COMPS SUMMARY

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1 STARBUCKS | AT&TRETAIL CENTER11661 East Kellogg DriveWichita, KS 67207

2 WALMART PAD - BAUERFARM565 Wakarusa DriveLawrence, KS 66049

3 SHOPS OF REGENCYLAKES2413 North Greenwich RoadWichita, KS 67226

4 AT&T STRIP CENTER1903 North 14th AvenueDodge City, KS 67801

5 METCALF COMMONS11625-11635 Metcalf AvenueOverland Park, KS 66210

2733 West Central Avenue | El Dorado, KS 67042SUBJECT PROPERTY


SALE COMPARABLES | SALE COMPS MAP

Section 5 DEMOGRAPHICS

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POPULATION 1 MILE 3 MILES 5 MILESTotal Population 3,304 11,450 17,613

Average age 33.1 34.7 36.3

Average age (Male) 31.6 32.6 34.4

Average age (Female) 37.0 38.2 39.0

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILESTotal households 1,282 4,526 7,005

# of persons per HH 2.6 2.5 2.5

Average HH income $49,516 $50,948 $54,581

Average house value $173,176 $120,974 $132,758

ETHNICITY (%) 1 MILE 3 MILES 5 MILESHispanic 3.1% 4.1% 4.1%

RACE 1 MILE 3 MILES 5 MILES% White 92.8% 93.1% 92.5%

% Black 0.0% 0.7% 1.0%

% Asian 1.3% 0.8% 0.5%

% Hawaiian 0.0% 0.0% 0.0%

% American Indian 1.7% 1.2% 1.3%

% Other 2.7% 2.3% 1.8%* Demographic data derived from US Census


DEMOGRAPHICS | DEMOGRAPHICS MAP & REPORT


DEMOGRAPHICS | BACK LRG

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Documents

El Dorado Centre · 2020. 8. 3. · national tenants, El Dorado Centre offers potential upside to an investor. OFFERING SUMMARY Sale Price: $1,878,900 Building Size: 13,805 SF Price