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11200 San Jose Boulevard | Jacksonville, FL 32223Asking Price: $6,206,569 | Cap Rate: 6.50%
Mandarin Strip Center
OFFERING MEMORANDUM
1
Michael [email protected]
Brett [email protected]
02 04 PROPERTY
Property Details Maps & AerialsSite Plan
09 15 MARKET
Market OverviewDemographics
OFFERING
Executive Summary Investment Highlights
TENANTS
Mattress Firm Pei WeiThe Vitamin Shoppe
Brad [email protected]
Isaiah [email protected]
Page 2Market Overview
OFFERING
Executive Summary Investment Highlights
2
Atlantic Retail Investment Services ispleased to exclusively offer the
located in Jacksonville, Florida. Thisthree-tenant strip center is 100
percent leased to Mattress Firm, PeiWei, and The Vitamin Shoppe
MANDARIN STRIP CENTER
Executive Summary
OFFERING
Investment Highlights
EASILY ACCESSIBLE RETAIL LOCATIONThe Property is strategically positioned on San Jose Boulevard within a busy retail corridor on the edge of an extensive residential area in southern Jacksonville.
STRONG RETAIL TRADE AREAThe Property is across from Riverplace Shopping Center—anchored by Cost Plus World Market, Michaels, Petco, Sears Outlet, Staples, Stein Mart, and TJ Maxx—and is less than one (1) mile from Mandarin Corners shopping center.
QUALITY, LONG-TERM INVESTMENTConstructed in 2016, the Property is 100 percent leased to Mattress Firm, Pei Wei, and The Vitamin Shoppe, all operating under 10-year leases with minimal landlord responsibilities, all which are subject to reimbursement.
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Maps & AerialsSite Plan
PROPERTY
Property Details
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ADDRESS 11200 San Jose BoulevardJacksonville, FL 32223
TENANTS Mattress Firm, Pei Wei, and The Vitamin Shoppe
ASKING PRICE $6,206,569
TOTAL NOI $403,427.00
CAP RATE 6.50%
BUILDING +/- 9,257 ft2
LAND +/- 1.14 acres
PARKING +/- 46 spaces
YEAR BUILT 2015
MANDARIN STRIP CENTER
PRIME RETAIL LOCATIONThe Property is located in the southern portion of Jacksonville, strategically positioned along the busy stretch of San Jose Boulevard that offers close proximity to West Beltway 295. The Property is only 18 miles south of Downtown Jacksonville, and sits amongst a dense trade area.
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EPISCOPAL EARLY LEARNING
ACADEMY
LEARNING LADDERS
PRESCHOOL
PROPERTY
Maps & Aerials
Property Details
Site Plan
SAN JOSE BOULEVARD47,362 VPD
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LEARNING LADDERS
PRESCHOOL
NORTHEAST FLORIDA
CONSERVATORY
THE WATERFORD AT MANDARIN APARTMENTS
EPISCOPAL EARLY LEARNING
ACADEMY
MEMORIAL EMERGENCY
CENTER-MANDARIN
BRUNETT COMMUNITY
CENTER
SAN
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WEST BELTW
AY 295
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PROPERTY
Maps & Aerials
Property Details
Site PlanSAN JOSE
BOULEVARD47,362 VPD
WEST BELTWAY 295120,414 VPD
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PROPERTY
Maps & Aerials
PROPERTY
Property Details
Site Plan
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NEARBY POINTS OF INTEREST1. Jacksonville Naval Air Station - 8.7 miles2. Orange Park Mall - 8.9 miles3. University of North Florida - 15.0 miles4. Downtown Jacksonville - 18.9 miles5. St. Vincent’s Medical Center Riverdale - 16.5 miles6. Jacksonville Executive at Craig Airport - 19.9 miles7. Jacksonville Beach - 23.3 miles8. Ponte Vedra Beach - 23.7 miles9. Jacksonville University - 23.8 miles10. Neptune Beach - 25.1 miles11. Atlantic Beach - 25.7 miles
JACKSONVILLE
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Property DetailsMaps & Aerials
PROPERTY
Site Plan
Pei WeiThe Vitamin Shoppe
TENANTS
Mattress Firm
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PARENT COMPANY Steinhoff International
NO. OF LOCATIONS 3,954
DISTRIBUTION 75 Distribution Centers
CREDIT RATING Baa3/Stable (Moody’s)
FOUNDED 1986
HEADQUARTERS Houston, Texas
FY2016 SALES $3.8+ Billion
WEBSITE www.mattressfirm.com
MATTRESS FIRM
MATTRESS FIRM (the “Company”)—through its brands including Mattress Firm, Sleepy’s, and Sleep Train—offers a broad selection of traditional mattresses and bedding accessories through over 3,500 company-operated and franchisee-owned stores in 48 states.
In 2012, the Company purchased Mattress Giant in an acquisition valued at $47 million. This purchase gave Mattress Firm an additional 180 stores in seven markets across Texas and Florida, where the Company has already built a strong foundation. In February 2016, the Company completed the purchase of all the outstanding equity interests in the holding company of Sleepy’s, which totaled approximately $795.5 million. In August 2016, the Company was purchased by Steinhoff International and now operates as a subsidiary of Steinhoff.
With the largest geographic footprint in the country among multi-brand specialty mattress retailers, Mattress Firm not only provides superior sleep solutions, but opportunities in hundreds of communities nationwide. The Company’s success and proven track record allows them to offer solid guarantees to further ensure customer satisfaction.
Today, Mattress Firm has become the top specialty mattress retailer in the country, with fiscal 2016 sales of more than $3.8 billion. Thanks to the Company’s extensive distribution network, Mattress Firm offers a distinct competitive advantage in an evolving omni-channel world.
MATTRESS FIRM
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Pei WeiThe Vitamin Shoppe
TENANTS
Mattress Firm
TENANT Mattress Firm, Inc.
BUILDING 3,483 ft2 (37.65% GLA)
COMMENCEMENT August 12, 2016
EXPIRATION August 11, 2026
LEASE TERM 10 Years
ANNUAL RENT $146,286.00 ($42.00/ft2)
INCREASES 10% After 5 Years
OPTIONS 2 x 5-Year Options
OPTION INCREASES 10% Each Option
LEASE TYPE NNN
LANDLORD Roof, Structure, and Parking Lot
ADDITIONAL RENT Pro Rata Share of CAM, Insurance, Taxes, and Administrative Fees
MATTRESS FIRM
YEARS DATES ANNUAL RENT INCREASE1–5 8/12/2016–8/11/2021 $146,286.00 ($42.00/ft2) N/A
6–10 8/12/2021–8/11/2026 $160,914.60 ($46.20/ft2) 10%
11–15 (Option 1) 8/12/2026–8/11/2031 $177,006.06 ($50.82/ft2) 10%
16–20 (Option 2) 8/12/2031–8/11/2036 $194,699.70 ($55.90/ft2) 10%
RENT SCHEDULE
PRO RATA SHARE ADDITIONAL RENT PRICE/SFCAM/Insurance $13,932.00 $4.00/ft2
Real Estate Taxes $13,932.00 $4.00/ft2
Administrative Fees $1,045.00 $0.30/ft2
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TENANTS
Pei WeiMattress Firm
The Vitamin Shoppe
PARENT COMPANY P.F. Chang’s China Bistro
NO. OF LOCATIONS 200+
TYPE Private
FOUNDED 2000
HEADQUARTERS Scottsdale, Arizona
FY2009 REVENUE $302.8 Million
WEBSITE www.peiwei.com
PEI WEI ASIAN DINER
PEI WEI (the “Company”) is a fast-casual dining concept with limited table service that offers Pan-Asian dishes to consumers seeking high-quality, freshly-prepared cuisine with dine-in or takeaway flexibility. Pei Wei offers an exuberant spirit of hospitality and a commitment to providing fresh, high-quality Asian cuisine at a great value.
Owned by P.F. Chang’s China Bistro, the concept was planned and developed in early 2000 in Scottsdale, Arizona, the current headquarters of the Company. Pei Wei was created to compete in the rapidly expanding fast-casual restaurant segment and features outstanding counter service. Pei Wei has a dedicated door in the restaurant and cashiers to offer takeaway food orders. The chain’s Summer 2017 menu includes gourmet salads, including the Thai Steak and Mango salad, which features wok-seared stake, mixed greens, avocados, and much more.
Pei Wei currently operates more than 200 locations in the United States along with six international locations in countries that include Mexico, Dubai, and the United Arab Emirates. As of July 2012, the Company—including its parent company, P.F. Chang’s—was acquired by Centerbridge Partners, a multi-strategy private investment firm that manages $25 billion of assets.
PEI WEI ASIAN DINER
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TENANT Pei Wei Asian Diner, LLC
BUILDING 3,085 ft2 (33.3% GLA)
COMMENCEMENT October 17, 2016
EXPIRATION October 16, 2026
LEASE TERM 10 Years
ANNUAL RENT $138,825.00 ($45.00/ft2)
INCREASES 10% After 5 Years
OPTIONS 2 x 5-Year Options
OPTION INCREASES 10% Each Option
LEASE TYPE NNN
LANDLORD Roof, Structure, and Parking Lot
ADDITIONAL RENT Pro Rata Share of CAM, Insurance, Taxes, and Administrative Fees
PEI WEI ASIAN DINER
YEARS DATES ANNUAL RENT INCREASE1–5 10/17/2016–10/16/2021 $138,825.00 ($45.00/ft2) N/A
6–10 10/17/2021–10/16/2026 $152,708.00 ($49.50/ft2) 10%
11–15 (Option 1) 10/17/2026–10/16/2031 $167,978.00 ($54.45/ft2) 10%
16–20 (Option 2) 10/17/2031–10/16/2036 $184,792.00 ($59.90/ft2) 10%
RENT SCHEDULE
TENANTS
Pei WeiMattress Firm
The Vitamin Shoppe
PRO RATA SHARE ADDITIONAL RENT PRICE/SFCAM/Insurance $14,808.00 $4.80/ft2
Real Estate Taxes $12,340.00 $4.00/ft2
Administrative Fees $2,221.00 $0.72/ft2
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TENANTS
The Vitamin Shoppe
Mattress FirmPei Wei
PARENT COMPANY Vitamin Shoppe Inc.
NO. OF LOCATIONS 775
TYPE Public
STOCK SYMBOL NYSE: VSI
CREDIT RATING BB/Stable (S&P)
HEADQUARTERS Seaucus, New Jersey
FY2016 REVENUE $1.29 Billion
WEBSITE www.vitaminshoppe.com
THE VITAMIN SHOPPE
THE VITAMIN SHOPPE (the “Company”) is an omni-channel specialty retailer and contract manufacturer of nutritional products based in Seaucus, New Jersey. The Vitamin Shoppe is the second largest vitamins, minerals, and supplements retailer in the country with over $1 billion in annual revenue. The Company carries one of the most comprehensive retail assortments in the industry, including vitamins, minerals, specialty supplements, herbs, sports nutrition, homeopathic remedies, green living products, and beauty aids. In addition to offering products from approximately 900 national brands, The Vitamin Shoppe also carries products under its own private brands.
The Company celebrated its 40th anniversary this year and, in 2016, The Vitamin Shoppe launched a new website, an enhanced loyalty program, increased omni-channel capabilities, and a modern store format. The new store format represents the future of The Vitamin Shoppe’s brick-and-mortar experience, boasting an evolved identity and an open store layout that is inviting to customers and easy to navigate. The Company is also offering expanded product assortments, sampling stations, and store events designed to enable an enhanced shopping experience for customers.
THE VITAMIN SHOPPE
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TENANT Vitamin Shoppe Industries, Inc.
DBA The Vitamin Shoppe
BUILDING 2,689 ft2 (29.0% GLA)
COMMENCEMENT August 12, 2016
EXPIRATION August 11, 2026
LEASE TERM 10 Years
ANNUAL RENT $118,316.00 ($44.00/ft2)
INCREASES 10% After 5 Years
OPTIONS 2 x 5-Year Options
OPTION INCREASES 10% Each Option
LEASE TYPE NNN
LANDLORD Roof, Structure, and Parking Lot
ADDITIONAL RENT Pro Rata Share of CAM, Insurance, Taxes, and Administrative Fees
THE VITAMIN SHOPPE
YEARS DATES ANNUAL RENT INCREASE1–5 8/12/2016–8/11/2021 $118,316.00 ($44.00/ft2) N/A
6–10 8/12/2021–8/11/2026 $130,147.60 ($48.40/ft2) 10%
11–15 (Option 1) 8/12/2026–8/11/2031 $143,162.36 ($53.24/ft2) 10%
16–20 (Option 2) 8/12/2031–8/11/2036 $157,467.84 ($58.56/ft2) 10%
RENT SCHEDULE
TENANTS
The Vitamin Shoppe
Mattress FirmPei Wei
PRO RATA SHARE ADDITIONAL RENT PRICE/SFCAM/Insurance $10,756.00 $4.00/ft2
Real Estate Taxes $10,756.00 $4.00/ft2
Administrative Fees $1,613.00 $0.60/ft2
Demographics
MARKET
Market Overview
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JACKSONVILLE IS THE CULTURAL AND COMMERCIAL CENTER OF NORTH FLORIDA
Due to its convenient location, mild climate, reasonable cost of living, high quality of life, and pro-business
environment, Jacksonville is a popular destination for corporate expansion and relocation. Its status as an
inter-modal transportation hub is a major incentive, and the city is also a major distribution center.
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Demographics
MARKET
Market Overview
JACKSONVILLE IS A LEADING TOURIST CENTER IN FLORIDAKnown as the “River City by the Sea,” Jacksonville boasts
more than 20 miles of wide and uncrowded beaches, close to 40 miles of the inter-coastal Waterway canal, numerous golf
courses, and the largest urban park system in the country.
DEMOGRAPHICS 1 MILE 3 MILES 5 MILES2017 Estimated Population 8,417 56,089 112,129
2022 Projected Population 8,909 59,527 120,976
2010 Census Population 8,151 55,234 107,176
2000 Census Population 8,743 54,973 99,075
Projected Annual Growth (2017–2022) 1.2% 1.2% 1.6%
Historical Annual Growth (2000–2017) -0.2% 0.1% 0.8%
2017 Estimated Households 3,739 23,911 45,536
2022 Projected Households 3,894 24,929 47,897
2010 Census Households 3,523 22,881 42,533
2000 Census Households 3,592 21,454 38,169
Projected Annual Growth (2017–2022) 0.8% 0.9% 1.0%
Historical Annual Growth (2000–2017) 0.2% 0.7% 1.1%
2017 Est. HH Income $200,000+ 4.5% 6.7% 7.4%
2017 Est. HH Income $150,000-$199,999 3.9% 7.3% 7.3%
2017 Est. HH Income $100,000–$149,999 13.1% 16.5% 17.2%
2017 Est. HH Income $75,000-$99,999 14.0% 14.9% 14.3%
2017 Est. HH Income $50,000–$74,999 18.4% 17.7% 17.5%
2017 Est. HH Income $35,000–$49,999 16.9% 13.0% 12.9%
2017 Est. HH Income $25,000–$34,999 12.7% 9.7% 9.4%
2017 Est. HH Income $15,000–$24,999 8.9% 7.8% 7.1%
2017 Est. HH Income Under $15,000 7.6% 6.4% 6.9%
2017 Est. Average Household Income $76,191 $87,427 $90,942
2017 Est. Median Household Income $58,967 $74,066 $75,095
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DEMOGRAPHICS 1 MILE 3 MILES 5 MILES2017 Est. White 83.2% 82.3% 79.6%
2017 Est. Black 7.6% 9.0% 10.5%
2017 Est. Asianor Pacific Islander
3.6% 3.8% 4.8%
2017 Est. American Indian or Alaska Native
0.2% 0.3% 0.3%
2017 Est. Other Races 5.4% 4.5% 4.8%
2017 Est. HispanicPopulation
931 5,263 10,427
2017 Est. HispanicPopulation
11.1% 9.4% 9.3%
2022 ProjectedHispanic Population
12.7% 10.8% 10.5%
2010 HispanicPopulation
9.3% 8.0% 8.0%
RACE
The population within five (5) miles of the Property is 112,129, and the 2017 average household income is $90,942.
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MARKET
DemographicsMarket Overview
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The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Atlantic Retail Investment Services and should not be made available to any other person or entity without the written consent of Atlantic Retail Investment Services. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Atlantic Retail Investment Services has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance 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 to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Atlantic Retail Investment Services has not verified, and will not verify, any of the information contained herein, nor has Atlantic Retail Investment Services conducted any investigation regarding these matters and makes no warranty or representation 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.
CONFIDENTIALITY & DISCLAIMER
Mandarin Strip Center
OFFERING MEMORANDUM
11200 San Jose Boulevard | Jacksonville, FL 32223Asking Price: $6,206,569 | Cap Rate: 6.50%
Michael [email protected]
Brett [email protected]
Brad [email protected]
Isaiah [email protected]
