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STORM LAKE, IA1515 LAKE AVENUE NORTH
OFFERING
MEMORANDUM
STORM LAKE RETAIL CENTER
FINANCIAL
OVERVIEWPAGES 03-08
INVESTMENT
OVERVIEWPAGES 09-13
MARKET
OVERVIEWPAGES 14-16
01 02 03
ACT ID: ZAB0260097
STORMLAKERETAILCENTER
TABLE OF
CONTENTS
SECTION 1
FINANCIAL
OVERVIEW
01
FINANCIAL
OVERVIEW
Repeat clients
Decades worth of experience
Highly-focused specialization
STORM LAKE RETAIL CENTER1515 Lake Ave N, Storm Lake, IA 50588
DEMOGRAPHICS
1-Mile 3-Mile 5-Mile
Population 3,523 11,139 12,643
Average HH Income
$51,770 $66,445 $69,685
PRICE:$2,538,000
CAP RATE:8.00%
NOI: $203,060
SQUARE FEET:20,939
LEASE TYPES:Mostly NNN
ACREAGE:2.99 Acres
4
Price: $2,538,000
Cap Rate: 8.00%
Gross Leasable Area: 20,939
Price Per Square Foot: $121.21
Year Built: 2016
Lot Size: 2.99 Acres
PRICING
20,939 Square Foot Multi-Tenant Retail Center |Anchored by Dollar Tree, Cricket Wireless, ShoeSensation & HR Block
Zero Lease Rollover in 2020 | Only 1 Lease Expires in2021
NNN Leases for 5 of the 6 Tenants | Very MinimalLandlord Responsibility
100% Occupied & Fully Stabilized
Positioned down the Street from a WalmartSupercenter
INVESTMENT HIGHLIGHTS
SE
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1
EXECUTIVE
SUMMARY
5
SUMMARY
Price: $2,538,000
Down Payment (30%): $761,400
Current CAP: 8.00%
Cash on Cash: 10.95%
Square Feet 20,939
Cost per Square Feet: $121.21
Debt Coverage Ratio: 1.76
Year Built: 2016
OPERATING DATA
Scheduled Gross Income: $235,184
CTI Reimbursements: $64,578
Admin Reimbursements: $2,777
Total Income: $302,539
Vacancy Factor: $7,563 2.50%
Gross Operating Income: $294,975
Less Expenses: $91,916
Net Operating Income: $203,060 8.00%
Capital Reserves: $4,188 ($.20)
Loan Payments: $115,494
Pre Tax Cash Flow: $83,378 10.95%
Plus Principal Reduction: $40,777
Total Return Before Taxes: $124,155 16.31%
PROPOSED NEW FINANCING
Loan Amount: $1,776,600
Terms 4.25% Interest Rate
25 Year Amortization
5 Year Term
Monthly Payment: $9,624.52
Annual Payment: $115,494.23
EXPENSES
Taxes: $3.09 $64,710
Insurance: $0.30 $6,186
CAM: $0.67 $13,940
Management: 2.40% $7,079
TOTAL EXPENSES: $91,916
Per RSF: $4.39
SE
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1
OPERATING
SUMMARY
6
Suite TenantSq.
Ft.
% of
Total
Lease
Start
Lease
End
Monthl
y Rent
Annual
Rent
Annual
PSF
Bump
Date
New
Rent
PSF
Annual
Reimb.
Lease
Type
Option
Terms
A Dollar Tree 8,600 41.07% 11/17/2016 1/31/2027* $7,525.00 $90,300.00 $10.50 12/1/2021 $11.00 $35,147.28 NNN (2) 5-yr
Option I 2/1/2027 $11.50
Option II 2/1/2032 $12.00
B Cricket Wireless 1,850 8.84% 6/30/2017 6/30/2022 $2,081.25 $24,975.00 $13.50 $8,118.85 NNN (1) 5-yr
Option I 7/1/2022 $14.50
C Shoe Sensation 5,000 23.88% 8/1/2016 7/31/2021 $5,000.00 $60,000.00 $12.00 Gross (2) 5-yr
Option I 8/1/2021 $13.00
Option II 8/1/2026 $14.00
D HR Block 1,500 7.16% 7/1/2017 6/30/2022 $1,500.00 $18,000.00 $12.00 $6,582.85 NNN (1) 5-yr
Option I 7/1/2022 $14.00
E Total Concept Salon 2,257 10.78% 9/30/2017 9/30/2022 $2,000.00 $24,000.00 $10.63 $9,904.99 NNN (1) 5-yr
Option I 10/1/2022 $11.96
F Lavish Nails 1,732 8.27% 4/15/2018 4/30/2025 $1,492.42 $17,909.00 $10.34 5/1/2022 $11.43 $7,601.00 NNN
Current Totals 20,939 100% $19,599 $235,184 $11.23 $67,354
Occupied 20,939 100% $19,599 $235,184 $11.23 $67,354
Vacant
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1
RENT
ROLL
*Dollar Tree can terminate their lease if sales do not exceed $1,000,000 between 12/1/2020-11/30/2021
7
Dollar Tree, Inc. is an American chain of discount varietystores that sells items for $1 or less. Headquartered inChesapeake, Virginia, it is a member company of Fortune500 and operates 15,155 stores throughout the 48 contiguousU.S. states and Canada. Its stores are supported by anationwide logistics network of eleven distribution centers.The company operates one-dollar stores under the names ofDollar Tree and Dollar Bills. The company also operates multi-price-point variety chains under the names Deals and FamilyDollar.
Headquarters: Chesapeake, Virginia
No. of Locations: 15,155+
Symbol: NASDAQ: “DTR”
Website: www.dollartree.com
Square Footage: 8,600
Lease Start: November 17, 2016
Lease Expiration: January 31, 2027
Cricket Wireless is a prepaid wireless service provider in theUnited States. Cricket Wireless offers voice, text, and data and isa wholly owned subsidiary of AT&T Inc. As of 2011, it providedprepaid wireless services to approximately 5 million subscribersin the United States. Cricket Wireless was founded in 1999 byLeap Wireless International, Inc. On July 12, 2013, AT&T Inc.agreed to acquire Cricket's parent company Leap WirelessInternational for $1.2 billion. The merger was approved by theFederal Communications Commission on March 13, 2014, andlater that same day, Leap Wireless announced the completionof its acquisition by AT&T.
Headquarters: Atlanta, Georgia
No. of Locations: 4,300+
Symbol: NYSE: “T” (Parent Company)
Website: www.cricketwireless.com
Square Footage: 1,850
Lease Start: June 30, 2017
Lease Expiration: June 30, 2022
SE
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1
TENANT
PROFILES
8
Shoe Sensation’s mission is to provide quality and brandname footwear for the entire family, from toddlers to seniors,their large selection of shoes has something for everyone asthe typical Shoe Sensation will showcase over 10,000 pairs ofthe latest styles. In addition to their sensational productoffering, they strive to be good stewards in their communitiesand to help whenever possible. In 2017, their quantity ofstores increased by 25%, there are now 149 stores across 18states, as well as 15,000 square feet of offices and a 150,000square foot distribution center and over 1,000 employees..
Headquarters: Jeffersonville, Indiana
No. of Locations: 149
Symbol: Private
Website: www.shoesensation.com
Square Footage: 5,000
Lease Start: August 1, 2016
Lease Expiration: July 31, 2021
H&R Block is an American tax preparation company in NorthAmerica, Australia, and India based in Kansas City, Missouri.Founded in 1955, by brothers Henry Bloch and Richard Bloch,H&R Block currently operates approximately 12,000 retail taxoffices worldwide. They offer consumer tax software, formerlycalled TaxCut, as well as online tax preparation and electronicfiling from their website. Now, they have prepared more than720 million tax returns and have grown to have company-owned and franchise retail locations in all 50 states.
Headquarters: Kansas City, Missouri
No. of Employees: 87,500
Symbol: NYSE: “HRB”
Website: www.hrblock.com
Square Footage: 1,500
Lease Start: July 1, 2017
Lease Expiration: June 30, 2022
SE
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1
TENANT
PROFILES
SECTION 2
INVESTMENT
OVERVIEW
02
INVESTMENT
OVERVIEW
Repeat clients
Decades worth of experience
Highly-focused specialization
INVESTMENT HIGHLIGHTS 20,939 Square Foot Multi-Tenant Retail
Center | Comprised of 6 Suites
Fully Stabilized Retail Center Offered at
100% Occupancy
Mostly NNN Leases | 5 of the 6 Tenants
have a NNN Lease
Potential Upside Opportunity in Converting
Cricket Wireless Lease (23% of GLA) to NNN
Long-Term Leases | Zero Lease Rollover in
2020 & Only 1 Lease Expires in 2021
Strong Tenant Mix of National Retailers |
Anchors Include Dollar Tree (NASDAQ:
“DLTR”), Cricket Wireless (NYSE: “T”), HR
Block (NYSE: “HRB”) & Shoe Sensation
Positioned just down the Street from a
Walmart Supercenter | Major Draw to this
Corridor
Strong Location | Close Proximity to Buena
Vista University & the Buena Vista Medical
Center Hospital
Marcus & Millichap is proud to present the opportunity to
acquire the fee simple interest in the Storm Lake Retail
Center located in Storm Lake, Iowa.
The 20,939 square foot building is positioned on 2.99 acres
with excellent exposure along Highway M44. Storm Lake
Retail Center is perfectly positioned just down the street from
a Walmart Supercenter which is a major draw to this corridor
contributing to the healthy traffic counts nearby. The
subject property is also in close proximity to Buena Vista
University, the Buena Vista Regional Medical Center and the
large industrial warehouses home to Tyson Foods. There is
minimal competition nearby for a majority of the tenants at
Storm Lake providing additional security in the deal. Hy-Vee
and Bomgaars occupy a large shopping center down the
street to the south, with other tenants nearby including Ace
Hardware, Anytime Fitness, O’Reilly Auto Parts, Napa Auto
Parts, Burger King and Subway.
Storm Lake Retail Center is currently 100 percent occupied,
and is fully stabilized with upside in capturing the future rent
increases scheduled. There are triple net leases in 77
percent of the gross leaseable area of the deal, with Cricket
Wireless being the only tenant with a gross lease, providing
more upside in converting the lease to triple net. The center
has a healthy mix of national tenants including Dollar Tree
(NASDAQ: “DTR”), Cricket Wireless (NYSE: “T”) and HR Block
(NYSE: “HRB”) among others.
10
INVESTMENT WRITE-UP
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2
INVESTMENT
OVERVIEW
Repeat clients
Decades worth of experience
Highly-focused specialization
1930
MARKET
AERIAL
11
SE
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2
Repeat clients
Decades worth of experience
Highly-focused specialization
1930
LOCAL
MAP
12
SE
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2
2.1 MILESBuena Vista Medical
Center
1.4 MILESStorm
Lake
1.3 MILESBuena Vista
University
Repeat clients
Decades worth of experience
Highly-focused specialization
1930
REGIONAL
MAP
13
SE
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ION
2
133 MILESSioux Falls,
South Dakota
122 MILESOmaha,
Nebraska
70 MILESSioux City,
Iowa
SECTION 3
MARKET
OVERVIEW
03
MARKET
OVERVIEW
Repeat clients
Decades worth of experience
Highly-focused specialization
15
2018HOUSEHOLDS:
6.0%
Growth2018-2023*:
The current year racial makeup of your selected area is as
follows: 60.87% White, 4.56% Black, 2.23% Native
American and 14.81% Asian/Pacific Islander. Compare
these to US averages which are: 70.20% White, 12.89%
Black, 0.19% Native American and 5.59% Asian/Pacific
Islander. People of Hispanic origin are counted
independently of race.
People of Hispanic origin make up 36.22% of the current
year population in your selected area. Compare this to the
US average of 18.01%.
Race and Ethnicity
Employment
In 2019, there are 8,579 employees in your selected area,
this is also known as the daytime population. The 2000
Census revealed that 50.14% of employees are employed
in white-collar occupations in this geography, and 49.70%
are employed in blue-collar occupations. In 2019,
unemployment in this area is 3.43%. In 2000, the average
time traveled to work was 13.00 minutes.
Population
In 2019, the population in your selected geography is 12,643.
The population has changed by 5.20% since 2000. It is
estimated that the population in your area will be 12,643.00 five
years from now, which represents a change of 0.00% from the
current year. The current population is 50.54% male and
49.46% female. The median age of the population in your area
is 31.19, compare this to the US average which is 37.95. The
population density in your area is 160.63 people per square
mile.
Households
There are currently 4,318 households in your selected
geography. The number of households has changed by 3.05%
since 2000. It is estimated that the number of households in
your area will be 4,363 five years from now, which represents a
change of 1.04% from the current year. The average household
size in your area is 2.72 persons.
Income
In 2019, the median household income for your selected
geography is $53,505, compare this to the US average which is
currently $58,754. The median household income for your area
has changed by 46.47% since 2000. It is estimated that the
median household income in your area will be $62,702 five
years from now, which represents a change of 17.19% from
the current year.
The current year per capita income in your area is $24,624,
compare this to the US average, which is $32,356. The current
year average household income in your area is $69,685,
compare this to the US average which is $84,609.
SE
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3
MARKET
OVERVIEW
16
2018HOUSEHOLDS:
6.0%
Growth2018-2023*:
SE
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3
POPULATION 1 Miles 3 Miles 5 Miles
2023 Projection
Total Population 3,539 11,148 12,643
2018 Estimate
Total Population 3,523 11,139 12,643
2010 Census
Total Population 3,454 10,963 12,436
2000 Census
Total Population 3,115 10,515 12,018
Current Daytime Population
2018 Estimate 4,863 15,224 16,399
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
2023 Projection
Total Households 1,210 3,777 4,363
2018 Estimate
Total Households 1,197 3,736 4,318
Average (Mean) Household Size 2.97 2.73 2.72
2010 Census
Total Households 1,186 3,697 4,270
2000 Census
Total Households 1,165 3,620 4,190
Occupied Units
2023 Projection 1,210 3,777 4,363
2018 Estimate 1,280 3,995 4,621
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
2018 Estimate
$150,000 or More 1.30% 4.81% 5.56%
$100,000 - $149,000 8.04% 10.31% 10.80%
$75,000 - $99,999 11.22% 13.42% 13.69%
$50,000 - $74,999 22.63% 23.84% 23.83%
$35,000 - $49,999 14.47% 14.79% 14.73%
Average Household Income $51,770 $66,445 $69,685
Median Household Income $43,050 $52,172 $53,505
Per Capita Income $17,784 $23,142 $24,624
HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles
Total Average Household Retail Expenditure
$55,023 $62,824 $64,159
Consumer Expenditure Top 10 Categories
Housing $13,827 $15,784 $16,112
Transportation $9,520 $10,900 $11,166
Shelter $7,859 $8,945 $9,127
Food $5,571 $6,382 $6,525
Personal Insurance and Pensions $4,451 $5,648 $5,878
Health Care $3,881 $4,703 $4,827
Utilities $3,299 $3,652 $3,711
Entertainment $2,121 $2,563 $2,640
Cash Contributions $1,397 $1,728 $1,768
Apparel $1,294 $1,450 $1,480
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
Population By Age
2018 Estimate Total Population 3,523 11,139 12,643
Under 20 34.23% 31.14% 30.84%
20 to 34 Years 23.38% 24.17% 23.76%
35 to 39 Years 6.35% 5.57% 5.57%
40 to 49 Years 11.90% 10.53% 10.43%
50 to 64 Years 14.38% 15.77% 16.27%
Age 65+ 9.75% 12.83% 13.10%
Median Age 29.63 30.63 31.19
Population 25+ by Education Level
2018 Estimate Population Age 25+ 2,022 6,415 7,366
Elementary (0-8) 17.11% 13.27% 12.97%
Some High School (9-11) 11.10% 9.67% 9.63%
High School Graduate (12) 32.04% 28.66% 28.48%
Some College (13-15) 17.00% 16.60% 16.70%
Associate Degree Only 6.67% 7.16% 7.26%
Bachelors Degree Only 8.36% 13.70% 14.19%
Graduate Degree 4.37% 7.40% 7.45%
MARKET
OVERVIEW
Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has
Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any
information provided.
As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing
Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this
Property for Buyer.
Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased
property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.
Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the
property for your needs.
Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the
property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including
newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not
guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to
market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value
of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be
able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.
By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your
investigation and/or purchase of this net leased property.
NET LEASED DISCLAIMER
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended
to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus &
Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
NON-ENDORSEMENT NOTICE
CONFIDENTIALITY & DISCLAIMER
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 Marcus & Millichap and should not be
made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepare 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. Marcus & Millichap 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, PCB’s 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, not has Marcus &
Millichap 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.
S T O R M L A K E R E T A I L C E N T E R | S T O R M L A K E , I A
EXCLUSIVE OFFERING
www.marcusmillichap.com
P R E S E N T E D B Y :O F F I C E S
N A T I O N W I D E
I O W A B O R
J o n R u z i c k a
R e g i o n a l M a n a g e r , M i n n e a p o l i s
L i c : B 6 3 3 7 9 0 0 0
ACT ID: ZAB0260097
ACT ID: ZAB0260097