Former Safeway and Safeway Gas Pad (Eagle Bend Marketplace)

Transcription

SW
Subject Property
Offering Memorandum
Former Safeway and Safeway Gas Pad (Eagle Bend Marketplace)
22675 & 22771 East Aurora Parkway | Aurora, CO 80016
Denver MSA | 11+ Years of Guaranteed Cash Flow | Value-Add Opportunity
Corporately Guaranteed Lease | Absolute NNN Lease | Highly Visible Location
Confidentiality and Restricted Use Agreement
This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your
consideration of the opportunity to acquire the commercial property described herein (the “Property”). This
COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner,
without prior written authorization and consent of SJC.
Offered Exclusively by
This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This
COM contains descriptive materials, financial information and other data compiled by SJC for the convenience
of parties who may be interested in the Property. Such information is not all inclusive and is not represented to
include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has
not independently verified any of the information contained herein and makes no representations or warranties
of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation
and/or financial information contained herein are qualified in their entirety by reference to the actual documents
and/or financial statements, which upon request may be made available. An interested party must conduct its
own independent investigation and verification of any information the party deems material to consideration of
the opportunity, or otherwise appropriate, without reliance upon SJC.
Toby Scrivner
Senior Director
[email protected]
CO Lic. # ER1000499399
The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right
to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s)
as is, where is, and with all faults, without representation or warranty of any kind except for any customary
warranties of title.
BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you
have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other
form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your
own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any
time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4)
for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release
and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents
and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or
use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any
of the Information to any other party unless you first obtain such party’s acceptance and approval of all terms,
conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and
(6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be
entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection
with such a violation and shall not be required to post a bond when obtaining such relief.
Stan Johnson Company
6120 South Avenue | Suite 300
Tulsa, OK 74136
P: +1 918.494.2690 | F: +1 918.494.2692
stanjohnsonco.com
Table of Contents
Section I - About the Investment
The Offering............................................................................................................................................. 5
Investment Highlights.......................................................................................................................... 6
Section II - Property & Tenant Overview
“Big Box” Facility Description......................................................................................................... 8
Strip Map.................................................................................................................................................... 9
Site Plan.................................................................................................................................................... 10
Lease Abstract “Big Box”..................................................................................................................11
Lease Abstract Gas Pad....................................................................................................................12
Tenant Overview...................................................................................................................................13
Section III - Market & Location Overview
Regional Map..........................................................................................................................................15
Location Overview...............................................................................................................................16
Subject Property Photos...................................................................................................................17
Surrounding Retail Photos...............................................................................................................18
Demographics........................................................................................................................................19
Section I:
About the Investment
SE
Section I • Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 4
The Offering
Stan Johnson Company is pleased to exclusively offer for sale to qualified
investors, the opportunity to purchase a former Safeway and a Safeway
gas pad ground lease located at 22675 and 22771 East Aurora Parkway
in Aurora, CO (the “Properties”). The Properties are situated within Eagle
Bend Marketplace, a roughly 100,000 SF development that serves as a
primary retail destination for dense surrounding residential neighborhoods.
Located less than 20 miles southeast of downtown Denver, the Properties
are strategically positioned on Aurora Parkway and adjacent to E-470,
the southern bypass around Denver, with daily surrounding traffic counts
totaling 67,915VPD.
Located in one of Denver’s larger suburban cities, the Properties are
within an area that features exceptional demographics with a population
in excess of 141,900 and average household income of over $120,000
within a five mile radius. These attributes are very attractive for retenanting purposes whereby investors have the potential opportunity to
garner more rent per square foot than Safeway’s current rent. This valueadd offering has limited downside risk given today’s in-place, 11-year cash
flow stream from Safeway.
Both the former Safeway “big box” lease and the Safeway gas pad ground
lease are corporately guaranteed by Safeway Inc. (S&P: B+/Positive).
Safeway, while no longer operating within the facilities, is obligated to
fulfill lease responsibilities through June 2027, providing over eleven years
of consistent and dependable cash flow. The Safeway “big box” lease is
absolute NNN and the Safeway gas pad is an absolute NNN ground lease;
both feature no Landlord responsibilities for management, maintenance
or repair throughout the base lease term. Typically, in situations with a
“dark” asset, the Landlord would inherit the responsibility to manage the
common area maintenance. However, in this case, the CAM management
has been assigned to a third-party, leaving this a truly passive investment.
Safeway Inc., which operates Safeway, Vons, Pavilions, Randalls, Tom
Thumb, and Carrs stores, is a Fortune 100 company and a food and drug
retailer in the United States with sales of $36.3 billion in 2014 and a net
worth of $5.5 billion. In January 2015, Cerberus Capital Management, L.P.
(parent company of Albertsons), acquired Safeway, completing a merger
that created one of the largest food and drug retailers in the country. The
new merged company, which includes the Albertsons supermarket chain,
has more than 2,200 stores and over 265,000 employees.
SW
Subject Property Photo
Investment Highlights
11+ Years of Guaranteed Base Term Remaining
Safeway Inc. (S&P: B+/Positive) guarantees all obligations of each lease through June
2027, providing over eleven years of consistent and dependable cash flow.
Absolute NNN Lease Structures
Properties offer investors a passive investment with no Landlord responsibilities for
management, maintenance or repair throughout the base lease term.
Premier Demographics
Properties benefit from a population in excess of 141,900 and average household
income of over $120k within a 5-mile radius.
Value-Add Opportunity
Properties offer investors the potential opportunity to re-tenant the Premises with
the possibility of garnering more rent per square foot than Safeway’s current rent.
This value-add offering has limited downside risk given today’s in-place, 11-year cash
flow stream from Safeway.
Property Summary
Proximity to Super Target-Anchored Shopping Center
Properties are 0.5 miles from Saddle Rock Village, a 302,353 SF shopping center
anchored by Super Target, ACE Hardware, Anytime Fitness, Jo-Ann Fabrics and
PetsMart driving excellent traffic to the Subject Properties.
Eagle Bend Marketplace
Properties are situated within Eagle Bend Marketplace, a roughly 100,000 SF
development that serves as a primary retail destination for dense surrounding
residential neighborhoods.
Highly Visible, Easily Accessible Location
Location:
Property Description:
Former Safeway & Former Safeway Gas Pad Ground Lease
Square Footage:
+/- 58,407 SF (Big Box)
Land Area:
6.78 Acres
Year Built:
2002
Ownership Interest:
Fee Simple & Fee Simple Interest in Ground
Encumbrances:
None, Delivered Free & Clear
Properties are adjacent to E-470, the southern bypass around Denver, offering
combined daily traffic counts of over 60,344 VPD.
Pricing Summary
Two-Property Investment Opportunity
Offering Price:
$9,921,029
Transaction includes both a “big box” retail facility, as well as a ground lease outparcel
currently utilized as a fuel center.
Offering Cap Rate:
7.00%
Net Operating Income:
$694,472
Tenant Summary
Demographics
2015 Population:
2015 Average HH Income:
3-Mile
5-Miles
10-Miles
5,925
44,202
141,987
$122,562
$130,873
$120,702
Tenant:
Safeway Stores 46, Inc.
Guarantor:
Safeway, Inc.
Parent:
Cerberus Capital Management, L.P.
Total Locations:
Safeway & the Albertsons supermarket chain operate a combined
2,200 stores
Section II:
Property & Tenant Overview
Former Safeway “Big Box” Facility Description
LOCATION
Former Safeway located at 22675 East Aurora Parkway in the city of Aurora in the county of Arapahoe
and the state of Colorado.
OWNERSHIP INTEREST & LEASE TYPE
Fee Simple Ownership Interest & Absolute NNN Lease
with no Landlord responsibilities for management,
maintenance or repair throughout the term
SHOPPING CENTER
Eagle Bend Marketplace – Lot 2 (Anchor)
PARKING
PRO RATA SHARE FOR CAM*
Approximately 38.55%
ZONING
PD (Planned Commercial Development)
PROPERTY PARCEL ID
Arapahoe County: 2073-36-1-06-003
YEAR BUILT
2002
BUILDING SIZE
+/- 58,407 SF
LAND AREA
+/- 5.882 Acres
IMPROVEMENTS
Asphalt parking lot, concrete curbs and sidewalks,
landscaping, parking lot lighting and concrete pads in
some dock areas
ROOF
Flat, built-up tar and gravel cover over corrugated
steel
Standard Spaces: 258
Total Spaces: 267
ADA Spaces: 6
Parking Ratio: 4.6 per 1,000 SF
Spaces Used as Cart Corrals: 3
ACCESS
Property will have three points of access – S. Gartell
Road on the east and two points of access off of E.
Aurora Parkway on the
UTILITIES & SERVICES
Water:
Arapahoe County Water and Wastewater Authority
Sewer:
Arapahoe County Water and Wastewater Authority
Electricity:
Intermountain Rural Electric Association (IREA)
Gas:
Xcel Energy
HVAC
New RTU unit in September 2011
Roof-mounted forced air package units
TRAFFIC COUNTS TABLE
Thoroughfare
Vehicles Per Day
E Aurora Parkway:
31,563 VPD
EXTERIOR WALLS
Concrete tilt-wall w/ brick and stucco exterior
S. Gartrell Road:
7,571 VPD
E-470:
28,781 VPD
INTERIOR FINISH
Open w/ supporting steel web trusses and painted
gypsum wallboard and vinyl tile flooring
Total
67,915 VPD
*CAM includes 10% maximum service fee, exclusive of utility costs, insurance premiums
and any cost that exceeds $10,000 for one single item during any one month
Subject Property Photos
Section II • Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 8
E. S
MO
KY
H
ILL
RO
AD
SADDLE ROCK
GOLF CLUB
E. ARAPAHOE ROAD
RK-
S. AURORA PA
WAY
1 VPD)
E-470 (28,78
GOLDEN EAGLE
PARK
CHEROKEE
TRAIL
HIGH
SCHOOL
SG
ELL
TR
AR
LIBERTY
MIDDLE
SCHOOL
RD
RD
SE
(31,
563
VPD
)
D)
VP
RA
71
(7,5
EA
URO
HERITAGE EAGLE BEND
GOLF CLUB
Site Plan
81 VPD)
E-470 (28,7
SG
art
rell
Rd
71 V
(7,5
)
PD
E Aurora Pkwy (31,563 VPD)
N
= Former Safeway “Big Box”
= Former Safeway Gas Pad
Lease Abstract - Former Safeway “Big Box”
Former Safeway “Big Box” Lease Abstract
Tenant:
Tenant Trade Name:
Safeway
Guarantor:
Safeway, Inc.
Address:
22675 E Aurora Pkwy, Aurora, CO 80016
Lease/Rent
Commencement:
July 2002
Lease/Rent Expiration:
June 2027
Base Lease Term:
25 Years
Base Lease Term
Remaining:
Approx. 11.25 Years
Annual Base Rent:
$621,472
Annual Base Rent PSF:
$10.64 PSF
Rental Increases:
None
Renewal Options:
10, 5-Year Options
Renewal Notice:
180 Days
Option Increases:
10% increases at start of each option
Lease Type:
Absolute NNN
Landlord Responsibilities:
Any capitalizable improvements or additions to
common area
Ownership Interest:
Fee Simple Interest
Encumbrances:
Property Parcel ID:
2073-36-1-06-003
SW
Lease Abstract - Gas Pad
Safeway Gas Pad Lease Abstract
Tenant:
Tenant Trade Name:
Safeway
Guarantor:
Safeway, Inc.
Address:
22771 E Aurora Pkwy, Aurora, CO 80016
Lease/Rent
Commencement:
June 2002
Lease/Rent Expiration:
June 2027
Base Lease Term:
25 Years
Base Lease Term
Remaining:
Approx. 11.25 Years
Annual Base Rent:
$73,000
Rental Increases:
None
Renewal Options:
10, 5-Year Options
Renewal Notice:
180 Days
Option Increases:
10% increases at start of each option
Lease Type:
Absolute NNN
Landlord Responsibilities:
None
Ownership Interest:
Fee Simple Interest in Ground
Encumbrances:
Property Parcel ID:
2073-36-1-06-006
SW
Tenant Overview
Safeway Inc. operates as a food and drug retailer
About
in the United States. The company’s stores offer
Acquisition
a selection of food and general merchandise and
ACME,
feature various specialty departments, such as
Star Market and Super Saver, and stores under
bakery, delicatessen, floral, seafood, and pharmacy,
the United Family of stores, Amigos, Market Street
as well as Starbucks coffee shops and adjacent
and United Supermarkets, is working to become
fuel centers. It also owns and operates online
the favorite food and drug retailer in every market
grocery
it serves. The company is privately owned by
channels,
including
Safeway.com
and
Albertsons
LLC
-
Established
(“Albertsons”),
Albertsons,
2006,
Jewel-Osco,
Management,
AB
operates
Lucky,
Shaw’s,
Vons.com, manufactures and processes private-
Cerberus
label merchandise, and gift cards, prepaid telecom
Corporation, Klaff Realty, Lubert-Adler Partners,
products and prepaid financial service products.
and Schottenstein Stores Corporation. For more
In January 2015, AB Acquisition LLC, controlled
Capital
in
which
Kimco
Realty
information, please visit www.Albertsons.com.
by Cerberus Capital Management, L.P. (the owner
of Albertsons LLC and New Albertsons, Inc.), and
Safeway completed a merger that created one of
TENANT PROFILE
the largest food and drug retailers in the country,
with over 2,200 stores in 33 states and the District
Tenant Trade Name:
Safeway
people. With Safeway stores in 19 states, the
Ownership
Private
Safeway teams are proud to carry on the tradition
2014 Sales Revenue
$36.3 Billion
2014 Net Worth
$5.5 Billion
Credit Rating
B+/Stable
Rating Agency
Standard & Poor’s
Number of Locations
2,200+
Safeway, Vons, Pavilions, Randalls, Tom Thumb, and
Headquarters
Pleasanton, CA
Carrs stores, is a Fortune 100 company and one of
Website
www.safeway.com
of Columbia, and employing approximately 265,000
that M.B. Skaggs began nearly 100 years ago in that
small Idaho town. Safeway is now a privately held
company owned by Cerberus Capital Management,
L.P. and is no longer listed on the New York Stock
Exchange.
About Safeway Inc. - Safeway Inc., which operates
the largest food and drug retailers in the United
States with sales of $36.3 billion in 2014 and net
worth of $5.5 billion. The company’s common stock
previously traded on the New York Stock Exchange
(NYSE) under the symbol SWY, but is now delisted
from the NYSE as a result of the closing of the
merger. For more information, please visit www.
Safeway.com.
Safeway Representative Photos
Section III:
Market & Location Overview
SE
Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 14
SE
Section III • Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 15
Location Overview
Aurora, Colorado
Denver and Aurora are the principal cities of the Denver Metropolitan
Area, which on on July 1, 2012 had an estimated population of
2,645,209 (the 21st most populous MSA in the U.S.). However,
Denver and Aurora combined make up less than half of the Metro
Denver Area’s population and Aurora has approximately half the
population of Denver. The estimated population of Denver-Aurora,
CO Combined Statistical Area was 3,214,218 on July 1, 2012 (16th
most populous CSA).
The city of Aurora manages more than 1,800 acres of developed
park land, more than 6,000 acres of open space and natural areas,
and seven award-winning municipal golf courses. Aurora also is
home to several privately owned golf courses. Star K Ranch, home
to Aurora’s Morrison Nature Center, provides important habitat for
wildlife. It has several trails for nature exploration, including access to
the Sand Creek Greenway Trail.
Denver, Colorado
Denver is the capital and most populous municipality in the state of
Colorado. 300 days of sunshine, a thriving cultural scene, diverse
neighborhoods, and natural beauty combine for the world’s most
spectacular playground. A young, active city at the base of the
Colorado Rocky Mountains, Denver’s stunning architecture, awardwinning dining and unparalleled views are all within the walking
distance from the 16th Street pedestrian mall. Upscale shopping
awaits in Cherry Creek, while Denver’s seven professional sports
teams entertain year-round.
Downtown Aurora, Colorado
Subject Property Photos
Surrounding Retail Photos
Demographics
0 - 1 mi.
0 - 3 mi.
0 - 5 mi.
Population
2015 Population
5,925
44,202
141,987
2020 Population
6,604
50,589
155,950
2000-2010 Annual Rate
32.36%
11.45%
6.62%
2.46%
2.92%
1.81%
2.19%
2.74%
1.89%
2015 Median Age
55.4
37.8
35.7
2015 Total Households
2,671
15,860
49,372
2020 Total Households
2,965
18,136
54,377
38.40%
13.00%
7.52%
2.29%
2.88%
1.84%
2.11%
2.72%
1.95%
2015 Average Household Income
$122,562
$130,873
$120,702
Households
N
going beyond
Offered Exclusively by
Toby Scrivner
Senior Director
[email protected]
CO Lic. # ER1000499399
Stan Johnson Company
6120 South Yale Avenue | Suite 300
Tulsa, OK 74136
Ph: 918-494-2690 | Fax: 918-494-2692
stanjohnsonco.com
The information contained herein was obtained from sources believed reliable, however,
Stan Johnson Company makes no guaranties, warranties or representations as to the
completeness thereof. The presentation of this property for sale, rent or exchange is
submitted subject to errors, omissions, change of price or conditions, or withdrawal
without notices.

Former Safeway and Safeway Gas Pad (Eagle Bend Marketplace)

Transcription

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