Pep Boys Auto Dacula, GA

offering memorandum.
Pep Boys Auto
Dacula, GA
Hebron Christian
Academy
Dacula
United Methodist
Church
Old
Peac
htre
e
Rd
Dacula
Elementary
School
Dacula Village
Shopping Center
Da
(18
,099
AADT)
Hebron Baptist
Church
1,0
75 A
ADT
)
Rd
Fen
ce
Rd
(1
cu
la
Building Elevation
$1,626,300
6.50% CAP Rate
••New 12-Year Net Lease
Average Household Income ••High
$84,772 within One Mile
••
••Brand New Construction
•
Fixed Rental Increases
Outparcel to Kroger-Anchored Center
This property is listed in conjunction with Georgia-licensed Delta Commercial.
www.maffiateam.com
Confidentiality & Disclosure
Cornish & Carey Commercial Newmark Knight Frank (“Broker”) has been retained on an exclusive basis to market the property
described herein (“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute the enclosed information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title
and tenant lease information may be made available upon request following the mutual execution of a letter of intent or contract to
purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase
based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and
such other matters as the Seller deems appropriate.
The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of
the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person without the
express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that
a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and
has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners,
shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own
investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections
contained in the pro forma.
Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to
accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed
to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto.
Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.
Michael Yuras, CCIM
Vice President
415.481.0788
[email protected]
Lic #01823291
Putnam Daily
VP/Transaction Manager
415.445.5107
[email protected]
Lic #01750064
901 Mariners Island Boulevard, Suite 120 • San Mateo, CA 94404 • Tel 415.373.4060 • Fax 415.373.4060 • www.maffiateam.com
Table of Contents
•Property Information........................................................................................................................1
•Tenant Information.......................................................................................................................... 2
•About the Area................................................................................................................................ 3
•Site Plan......................................................................................................................................... 4
•Aerials............................................................................................................................................ 5
•Location Maps................................................................................................................................ 7
•Demographics.............................................................................................................................. 10
Property Information
Location
The property is located at 565 Dacula Road in Dacula, Georgia.
Lot Size
Approximately 0.675 acres, or 29,403 square feet.
Improvements
Construction will be completed in March 2014 of an approximately 5,546 square foot retail building for Pep Boys Auto.
There is ample parking on the site.
Lease
Leased to The Pep Boys – Manny, Joe & Jack for 12 years from April 2014, to April 2026, at an initial annual rent of
$105,707. There are 3 five-year options to renew the lease. The rent increases by 8% in year 7 of the initial term and at the
commencement of each option period. The lease is net, with the tenant responsible for taxes, insurance, and maintenance,
including the maintenance of the landscaping, roof, interior and exterior walls, and the HVAC system. The landlord
is responsible for any capital replacements to the premises, including the roof and any structural components of the
building.
Annual
Income
Years
1-6
7-12
13-17 (Option 1)
18-22 (Option 2)
23-27 (Option 3)
Price
$1,626,300 (6.50% Return)
Financing
The property will be delivered free and clear of permanent financing.
Annual Rent
$105,707
$114,192
$123,287
$133,159
$143,808
Return
6.50%
7.02%
7.58%
8.19%
8.84%
1
Tenant Information
The Pep Boys — Manny, Moe & Jack (NYSE: “PBY”) is a full-service and tire automotive aftermarket chain branded as Pep
Boys Auto and commonly known simply as Pep Boys. Its product lines consist of tires; batteries; new and remanufactured parts for vehicles; chemicals and maintenance items; fashion, electronic, and performance accessories; and nonautomotive merchandise, such as generators, power tools, and personal transportation products. The company serves
do-it-for-me and do-it-yourself customers, as well as delivers its parts to automotive repair shops and dealers. As of
January 28, 2012, it operated 562 Supercenters, 169 Service & Tire Centers, and 7 Pep Express stores located in 35 states
of the United States, and in Puerto Rico.
For the fiscal year ended February 2, 2013, The Pep Boys — Manny, Moe & Jack reported revenue of $2.09 billion with
net income of $12.810 million and total stockholder equity of $537.572 million. The company is rated “B” by Standard &
Poor’s.
2
About the Area
Site Information
The property is a pad in the Dacula Market center located at the intersection of two major arterials, Dacula Road and
Fence Road, serving the affluent Dacula community. The annual average daily traffic on Dacula Road, directly in front
of the property, is 18,099 vehicles and 11,075 on Fence Road. Dacula Market, over 116,900 square feet, is anchored by
Kroger Supermarket and is over five miles from the nearest major retail node. Retailers in the immediate vicinity of the
property include Walgreens, Chase, Chick-fil-A, KFC, Taco Bell, Exxon, United States Postal Service and McDonalds. Directly west of the property is Dacula Village Shopping Center, anchored by Publix. Retailers west on Dacula Road includes
Sears, Anytime Fitness, AutoZone, Sun Trust, Burger King, Chevron, State Farm and Sherwin Williams. The property is
in the vicinity of the local elementary, middle, and high schools as well as the Hebron Baptist Church, which has over
11,000 members.
The property is situated in the heart of Dacula’s explosive residential growth. In 2012, Dacula, located in the east Gwinnett County, experienced the greatest amount of building permit activity, with 432 units permitted for single-family housing. Townhomes accounted for 83 units of the total number of dwelling units permitted in Gwinnett County during 2012,
and the largest number permitted was in Dacula covering 43 or 52 percent of Gwinnett County’s total number of permitted townhomes. The annual average household income within a five mile radius is over $87,900.
General Overview
Dacula is a city in the northeast portion of Gwinnett County, Georgia. As of the 2010 U.S. Census, Dacula had a population of 4,442. Gwinnett County is the second most populous county in the state of Georgia with an estimated population of 842,046 per the 2012 U.S. Census. It is also the north-eastern link to Interstate 85 for the Atlanta MSA. Gwinnett
County is a leader in investment and job creation in Metro Atlanta. It is home to the Fortune 500 global headquarters of
AGCO Corporation, NCR, Primerica and RockTenn. Over 60 international companies have chosen Gwinnett for their U.S.
or global headquarter operations, such as Mitsubishi Electric, Ricoh Electronics, Suniva and WIKA Instruments. Top
business sectors in Gwinnett are Advanced Manufacturing, Headquarters and Professional Services, Health Sciences
and Services, Information Technology Solutions and Supply Chain Management. Gwinnett County is a premier location
in Metro Atlanta for growing and conducting business. Gwinnett County and Metro Atlanta are home to 57 public and
private institutions of higher education, including Georgia Gwinnett College and Gwinnett Technical College, with over
250,000 students enrolled.
3
DACULA RD
Site Plan
5,546 SF
MONUMENT
SIGN
4
Aerial | Mid-Range View
AA
DT)
(11
Fe
nc
eR
d
Hebron Baptist
Church
,0
75
AA
DT
)
Dac
ula
Rd
(18
,09
9
Hebron Christian
Academy
Aerial | Distant View
Dacula
United Methodist
Church
Dacula
Elementary
School
Dacula Village
Shopping Center
Da
cu
la
Rd
(18
,099
AADT)
Hebron Baptist
Church
1,0
75 A
ADT
)
Rd
Fen
ce
Rd
(1
Old
Peac
htre
e
Location Map
Site
Location Map
Site
Location Map
Site
Market Profile
Demographics
565 Dacula Rd
Dacula, GA 30019
565 Dacula Rd, Dacula, GA, 30019
Ring: 1 mile radius
Population Summary
2000 Total Population
2010 Total Population
2012 Total Population
2012 Group Quarters
2017 Total Population
2012-2017 Annual Rate
Household Summary
2000 Households
2000 Average Household Size
2010 Households
2010 Average Household Size
2012 Households
2012 Average Household Size
2017 Households
2017 Average Household Size
2012-2017 Annual Rate
2010 Families
2010 Average Family Size
2012 Families
2012 Average Family Size
2017 Families
2017 Average Family Size
2012-2017 Annual Rate
Housing Unit Summary
2000 Housing Units
Owner Occupied Housing Units
Renter Occupied Housing Units
Vacant Housing Units
2010 Housing Units
Owner Occupied Housing Units
Renter Occupied Housing Units
Vacant Housing Units
2012 Housing Units
Owner Occupied Housing Units
Renter Occupied Housing Units
Vacant Housing Units
2017 Housing Units
Owner Occupied Housing Units
Renter Occupied Housing Units
Vacant Housing Units
Median Household Income
2012
2017
Median Home Value
2012
2017
Per Capita Income
2012
2017
Median Age
2010
2012
2017
Latitude: 34.00024
Longitude: -83.90962
1 mile
3 miles
5 miles
1,076
3,544
3,534
0
3,606
0.40%
13,677
32,121
32,767
918
34,948
1.30%
53,308
101,359
102,721
3,011
108,339
1.07%
355
3.03
1,117
3.17
1,123
3.15
1,135
3.18
0.21%
964
3.41
965
3.39
974
3.43
0.20%
4,473
2.93
10,127
3.08
10,411
3.06
11,020
3.09
1.14%
8,564
3.36
8,763
3.34
9,267
3.38
1.12%
16,966
3.03
30,885
3.18
31,545
3.16
33,028
3.19
0.92%
25,778
3.47
26,205
3.45
27,428
3.49
0.92%
366
92.1%
4.9%
3.0%
4,666
90.4%
5.5%
4.1%
17,497
87.3%
9.7%
3.0%
1,190
84.1%
9.7%
6.1%
1,188
84.0%
10.4%
5.5%
1,196
84.8%
10.0%
5.1%
10,754
84.9%
9.3%
5.8%
10,962
85.0%
10.0%
5.0%
11,542
85.9%
9.6%
4.5%
32,922
81.5%
12.3%
6.2%
33,519
81.1%
13.0%
5.9%
35,093
81.7%
12.5%
5.9%
$69,840
$81,279
$73,420
$83,161
$66,387
$78,436
$162,496
$174,548
$162,983
$175,154
$152,175
$167,956
$26,628
$30,416
$28,151
$32,057
$25,987
$29,613
34.5
34.6
34.9
34.6
34.7
35.0
33.8
33.9
34.2
Data Note: Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households.
Persons in families include the householder and persons related to the householder by birth, marriage, or adoption. Per Capita Income represents the income received by
all persons aged 15 years and over divided by the total population.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
10
Market Profile
Demographics
565 Dacula Rd
Dacula, GA 30019
565 Dacula Rd, Dacula, GA, 30019
Ring: 5 mile radius
Latitude: 34.00024
Longitude: -83.90962
1 mile
3 miles
5 miles
Household Income Base
1,123
10,411
31,545
<$15,000
$15,000 - $24,999
6.1%
6.2%
6.5%
5.3%
7.4%
6.1%
$25,000 - $34,999
$35,000 - $49,999
5.4%
10.2%
6.1%
11.2%
7.3%
12.4%
$50,000 - $74,999
25.7%
21.9%
22.5%
$75,000 - $99,999
$100,000 - $149,999
$150,000 - $199,999
14.2%
22.6%
4.6%
16.2%
20.1%
7.1%
16.6%
17.0%
5.9%
2012 Households by Income
$200,000+
4.8%
5.6%
4.7%
$84,772
$87,917
$81,359
Household Income Base
1,135
11,020
33,028
<$15,000
$15,000 - $24,999
4.9%
4.0%
5.3%
3.4%
6.3%
4.1%
3.3%
7.4%
24.1%
19.1%
25.2%
5.8%
6.0%
$97,805
3.7%
8.3%
20.5%
21.4%
21.9%
8.8%
6.8%
$101,348
4.5%
9.5%
21.4%
22.4%
18.9%
7.3%
5.6%
$93,913
998
1.1%
4.2%
35.7%
36.5%
13.2%
4.0%
3.6%
1.3%
0.3%
0.1%
0.0%
$174,307
9,316
1.0%
5.7%
35.1%
31.8%
14.7%
6.8%
3.5%
0.9%
0.4%
0.1%
0.0%
$175,960
27,171
1.0%
9.3%
38.5%
27.7%
12.2%
5.6%
3.8%
1.1%
0.7%
0.1%
0.0%
$170,638
1,014
0.6%
2.8%
24.9%
44.4%
17.6%
9,913
0.6%
4.1%
26.0%
38.5%
18.6%
28,655
0.6%
7.1%
29.9%
34.7%
15.7%
$299,999
$399,999
$499,999
$749,999
4.5%
3.7%
1.1%
0.4%
7.4%
3.5%
0.7%
0.5%
6.2%
3.9%
0.9%
0.9%
$750,000 - $999,999
$1,000,000 +
Average Home Value
0.1%
0.0%
$184,490
0.1%
0.0%
$185,495
0.2%
0.0%
$180,926
Average Household Income
2017 Households by Income
$25,000 - $34,999
$35,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 - $149,999
$150,000 - $199,999
$200,000+
Average Household Income
2012 Owner Occupied Housing Units by Value
Total
<$50,000
$50,000 - $99,999
$100,000 - $149,999
$150,000 - $199,999
$200,000 - $249,999
$250,000 - $299,999
$300,000 - $399,999
$400,000 - $499,999
$500,000 - $749,999
$750,000 - $999,999
$1,000,000 +
Average Home Value
2017 Owner Occupied Housing Units by Value
Total
<$50,000
$50,000 - $99,999
$100,000 - $149,999
$150,000 - $199,999
$200,000 - $249,999
$250,000
$300,000
$400,000
$500,000
-
11
Data Note: Income represents the preceding year, expressed in current dollars. Household income includes wage and salary earnings, interest dividends, net rents,
pensions, SSI and welfare payments, child support, and alimony.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
Market Profile
Demographics
565 Dacula Rd
Dacula, GA 30019
565 Dacula Rd, Dacula, GA, 30019
Ring: 5 mile radius
Latitude: 34.00024
Longitude: -83.90962
1 mile
3 miles
5 miles
3,541
32,122
101,358
7.7%
9.1%
7.1%
9.1%
7.2%
9.0%
10 - 14
15 - 24
9.7%
12.7%
9.5%
13.1%
9.2%
13.7%
25 - 34
11.6%
11.7%
12.6%
35 - 44
45 - 54
55 - 64
18.0%
15.7%
8.9%
18.3%
15.6%
8.6%
17.7%
15.7%
8.5%
65 - 74
4.6%
4.5%
4.2%
75 - 84
85 +
1.8%
0.4%
2.0%
0.4%
1.9%
0.4%
68.4%
68.9%
69.3%
3,533
32,767
102,722
7.7%
9.1%
9.6%
12.4%
11.8%
17.5%
15.2%
9.4%
5.0%
1.8%
0.4%
68.7%
7.1%
9.1%
9.4%
12.8%
11.9%
17.9%
15.2%
9.0%
4.9%
2.1%
0.5%
69.2%
7.2%
9.0%
9.1%
13.4%
12.8%
17.3%
15.3%
9.0%
4.5%
1.9%
0.5%
69.6%
2017 Population by Age
Total
0-4
5-9
10 - 14
15 - 24
25 - 34
35 - 44
45 - 54
55 - 64
65 - 74
75 - 84
85 +
18 +
3,608
7.7%
9.1%
9.7%
11.8%
11.9%
17.2%
14.2%
9.9%
6.1%
2.0%
0.5%
68.7%
34,947
7.2%
9.2%
9.5%
12.2%
12.0%
17.6%
14.2%
9.5%
5.9%
2.2%
0.5%
69.1%
108,340
7.3%
9.0%
9.3%
12.7%
12.9%
17.0%
14.3%
9.5%
5.5%
2.0%
0.5%
69.5%
2010 Population by Sex
Males
Females
1,712
1,832
16,014
16,107
50,664
50,695
2012 Population by Sex
Males
Females
1,709
1,825
16,348
16,419
51,404
51,317
1,746
1,860
17,429
17,519
54,200
54,138
2010 Population by Age
Total
0-4
5-9
18 +
2012 Population by Age
Total
0-4
5-9
10 - 14
15 - 24
25 - 34
35 - 44
45 - 54
55 - 64
65 - 74
75 - 84
85 +
18 +
2017 Population by Sex
Males
Females
12
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
Market Profile
Demographics
565 Dacula Rd
Dacula, GA 30019
565 Dacula Rd, Dacula, GA, 30019
Ring: 5 mile radius
Latitude: 34.00024
Longitude: -83.90962
1 mile
3 miles
5 miles
2010 Population by Race/Ethnicity
Total
3,545
32,121
101,358
62.3%
26.0%
66.9%
21.3%
63.5%
23.3%
American Indian Alone
Asian Alone
0.2%
3.6%
0.3%
4.4%
0.4%
5.0%
Pacific Islander Alone
0.1%
0.1%
0.1%
4.6%
3.3%
11.9%
4.2%
2.8%
12.2%
5.0%
2.7%
13.5%
63.9
61.1
64.7
White Alone
Black Alone
Some Other Race Alone
Two or More Races
Hispanic Origin
Diversity Index
2012 Population by Race/Ethnicity
Total
White Alone
Black Alone
American Indian Alone
Asian Alone
Pacific Islander Alone
Some Other Race Alone
Two or More Races
Hispanic Origin
Diversity Index
3,534
32,766
102,721
60.4%
27.5%
65.3%
22.5%
62.2%
24.3%
0.2%
3.5%
0.1%
4.8%
3.4%
12.6%
65.5
0.3%
4.4%
0.1%
4.4%
3.0%
12.8%
62.7
0.4%
5.0%
0.1%
5.3%
2.9%
14.2%
66.1
3,605
54.4%
32.1%
0.2%
3.6%
0.2%
5.7%
3.9%
14.7%
70.0
34,949
60.2%
26.2%
0.3%
4.6%
0.1%
5.2%
3.4%
15.0%
67.7
108,338
57.6%
27.5%
0.4%
5.1%
0.1%
6.2%
3.2%
16.4%
70.2
3,544
100.0%
94.7%
26.9%
21.7%
39.2%
4.9%
1.8%
5.3%
0.0%
0.0%
0.0%
32,121
97.0%
91.3%
25.9%
21.2%
37.9%
4.6%
1.7%
5.8%
3.0%
3.0%
0.0%
101,359
96.9%
90.4%
25.5%
20.1%
37.5%
5.3%
2.0%
6.5%
3.1%
3.0%
0.0%
2017 Population by Race/Ethnicity
Total
White Alone
Black Alone
American Indian Alone
Asian Alone
Pacific Islander Alone
Some Other Race Alone
Two or More Races
Hispanic Origin
Diversity Index
2010 Population by Relationship and Household Type
Total
In Households
In Family Households
Householder
Spouse
Child
Other relative
Nonrelative
In Nonfamily Households
In Group Quarters
Institutionalized Population
Noninstitutionalized Population
13
Data Note: Persons of Hispanic Origin may be of any race. The Diversity Index measures the probability that two people from the same area will be from different
race/ethnic groups.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
Market Profile
Demographics
565 Dacula Rd
Dacula, GA 30019
565 Dacula Rd, Dacula, GA, 30019
Ring: 5 mile radius
Latitude: 34.00024
Longitude: -83.90962
1 mile
3 miles
5 miles
1,116
10.8%
89.2%
86.4%
69.6%
41.8%
16.8%
4.2%
2.6%
12.5%
10,127
12.4%
87.6%
84.6%
69.0%
41.5%
15.6%
4.0%
2.6%
11.5%
30,884
13.0%
87.0%
83.5%
66.0%
39.4%
17.5%
4.6%
2.9%
12.9%
8.6%
2.8%
7.9%
3.1%
9.0%
3.5%
53.3%
52.3%
51.8%
7.1%
3.8%
3.1%
0.7%
6.8%
3.8%
3.2%
0.6%
6.7%
4.5%
3.9%
0.6%
1,117
10.8%
28.5%
19.6%
23.4%
10.7%
4.7%
2.4%
10,126
12.4%
27.8%
19.5%
22.8%
10.4%
4.6%
2.5%
30,884
13.0%
27.1%
20.0%
21.8%
10.6%
4.6%
2.9%
1,117
89.6%
80.9%
8.7%
10.4%
10,127
90.1%
80.4%
9.7%
9.9%
30,885
86.9%
77.7%
9.2%
13.1%
2010 Households by Type
Total
Households with 1 Person
Households with 2+ People
Family Households
Husband-wife Families
With Related Children
Other Family (No Spouse Present)
Other Family with Male Householder
With Related Children
Other Family with Female Householder
With Related Children
Nonfamily Households
All Households with Children
Multigenerational Households
Unmarried Partner Households
Male-female
Same-sex
2010 Households by Size
Total
1 Person Household
2 Person Household
3 Person Household
4 Person Household
5 Person Household
6 Person Household
7 + Person Household
2010 Households by Tenure and Mortgage Status
Total
Owner Occupied
Owned with a Mortgage/Loan
Owned Free and Clear
Renter Occupied
Data Note: Households with children include any households with people under age 18, related or not. Multigenerational households are families with 3 or more parentchild relationships. Unmarried partner households are usually classified as nonfamily households unless there is another member of the household related to the
householder. Multigenerational and unmarried partner households are reported only to the tract level. Esri estimated block group data, which is used to estimate
polygons or non-standard geography.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
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