sikeston factory outlet stores

LONG TERM TENANCY | LARGE UPSIDE POTENTIAL
SIKESTON FACTORY OUTLET STORES
1 0 0
O U T L E T
D R I V E ,
M I N E R ,
M I S S O U R I
6 3 8 0 1
Excellent Interstate Visibility Equidistant between St. Louis, Missouri
a n d M e m p h i s , Te n n e s s e e , E a c h A p p r o x i m a t e l y 2 H o u r s A w a y
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not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap
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Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 Marcus & Millichap. All rights reserved.
2
investment overview
PURCHASE PRICE | $ 4,200,000
CAP RATE | 8.17%
NET OPERATING INCOME:
$343,314
PRICE PER SQUARE FOOT:
$35.39
RENTABLE SQUARE FEET:
118,688 SF
LOT SIZE:
11.30 Acres
YEAR BUILT:
1993
address
100 OUTLET DRIVE
MINER, MO 63801
CLick
ME!
3
investment overview
overview
The subject property is a 118,688 square foot outlet mall. Sikeston Factory Outlet Stores is the only outlet mall between
St. Louis, Missouri (two hours North) and Memphis, Tennessee (two hours South) and currently serves a five state region
bringing in more than one million guests per year. The asset is 68 percent occupied with a mix of national, regional, and local
tenants. 67 percent of the current tenants have been in operation at this location for 20 plus years.
The center is located near Highway 62 with easy access to Interstate 55. Positioned just off of the main thoroughfare, the
property is neighbored directly by national retailers including Burger King, McDonald’s, and Ruby Tuesday, and indirectly by
national hotel chains Comfort Inn & Suites, Best Western, Motel 6, Super 8, and America’s Best Value Inn. The property just
up the street from Lambert's Cafe, a major regional tourists and shoppers draw.
4
rent roll
LEASE TERMS
TENANT INFO
CURRENT RENT
OPTIONS
LEASE
TYPE
$14.72
N/A
N/A
N/A
Gross
$0
$0.00
N/A
N/A
N/A
N/A
$30,000
$8.22
N/A
N/A
N/A
Gross
$0
$0.00
M-T-M
$0
$0.00
N/A
N/A
N/A
N/A
8/31/17
$38,880
$8.00
N/A
N/A
N/A
Gross
$0
$0.00
5/31/19
$15,514
$2.36
6/1/16
6/1/17
4% of Sales
5% of Sales
N/A
Gross
M-T-M
$9,500
$1.85
N/A
N/A
N/A
Gross
7,470 SF
$0
$0.00
Vacant
4,500 SF
$0
$0.00
Vacant
3,060 SF
$0
$0.00
Vacant
3,510 SF
$0
$0.00
Vacant
2,500 SF
$0
$0.00
fashion nails
1,300 SF
9/1/06
8/31/20
$19,140
Sikeston Outlet mall, llc
450 SF
N/A
M-T-M
kitchen collection, inc.
3,650 SF
5/28/93
12/31/15
Vacant
2,560 SF
mississippi river studio
2,560 SF
N/A
bon worth, inc
4,860 SF
12/16/92
vacant
4,050 SF
AM Retail Group, dba G.H. Bass
6,570 SF
12/10/92
Show-Me Rentals/Robert Bell
5,130 SF
8/19/14
Vacant
COMMENCEMENT
DATE
LEASE TYPE
ANNUALLY
RENT/SF/YR
SIZE
OPTIONS
DATE
ANNUAL
BASE
RENT
TENANT NAME
RENT INCREASES
LEASE
EXPIRATION
5
rent roll
LEASE TERMS
TENANT INFO
CURRENT RENT
RENT INCREASES
OPTIONS
LEASE TYPE
TENANT NAME
SIZE
COMMENCEMENT
DATE
LEASE
EXPIRATION
ANNUAL
BASE
RENT
RENT/SF/YR
DATE
ANNUALLY
OPTIONS
LEASE
TYPE
Hanesbrands Direct LLC
5,040 SF
3/9/93
M-T-M
$42,840
$8.50
N/A
N/A
N/A
Gross
Brasswerks, Inc. dba 50 Off
2,700 SF
—
M-T-M
$3,362
$1.25
N/A
N/A
N/A
Gross
eClips School of Cosmetology
4,668 SF
11/24/08
2/29/20
$25,674
$5.50
N/A
N/A
N/A
Gross
Vacant
1,860 SF
$0
$0.00
Carter’s Retail, Inc.
5,500 SF
3/17/94
12/31/16
$2,750
$0.50
N/A
N/A
One, 5 Year
Gross
City Gear
2,500 SF
4/30/10
M-T-M
$9,000
$3.60
N/A
N/A
N/A
Gross
Rue 21
7,500 SF
5/25/93
—
$71,325
$9.51
—
—
—
—
Famous Footwear Outlet
5,500 SF
8/20/93
2/28/18
$75,900
$13.80
N/A
N/A
One, 5 Year
Gross
Vacant
800 SF
$0
$0.00
Vacant
5,000 SF
$0
$0.00
VF Outlet, Inc.
23,000 SF
$161,000
$7.00
4/17/17
4/17/19
$172,500
FMV
One, 2 Year
One, 5 Year
Gross
vacant
2,000 SF
$0
$0.00
vacant
450 SF
$0
$0.00
$504,885
$504,885
$6.52
$6.52
Totals:
Occupied:
NOTE: New lease being signed for Rue 21
118,688 SF
80,928 sF
5/28/02
68%
68%
4/16/17
6
income and expenses
income and expenses |
PRICE
$4,200,000
CAPITALIZATION RATE
8.17%
PRICE PER FOOT
$35.39
NET OPERATING INCOME SUMMARY |
scheduled income
leveraged return calculation |
SCHEDULED RENT
$6.52
(+) ADDITIONAL INCOME
INTEREST RATE
4.50%
$65,777
AMORTIZATION
300 MONTHS
$62,548
(+) ADDITIONAL INCOME FROM
RENTAL HALL
$250
$2,979
(=) GROSS POTENTIAL INCOME
$570,661
(=) SCHEDULED/EFFECTIVE
GROSS INCOME
$570,661
(-) TOTAL OPERATING EXPENSES
$1.92
$227,347
(-) UTILITIES
NET OPERATING INCOME
60%
$504,885
(+) 2014 % RENT FOR CARTERS
(+) EXPENSE REIMBURSEMENT
(HVAC RUE 21 AND VF OUTLET)
7
PROPOSED NEW LOAN
average psf
$43,191
PAYMENT - PRINCIPAL & INTEREST
EQUITY REQUIREMENT
DEBT COVERAGE RATIO
DEBT CONSTANT
NET OPERATING INCOME
(-) TOTAL ANNUAL DEBT SERVICE
($14,006.98)
$1,680,000
2.04
6.67%
$343,314
($168,084)
(=) PRE-TAX CASH FLOW
$175,230
PRE-TAXED LEVERAGING
CASH-ON-CASH RETURN
10.43%
$55,826
(-) REPAIRS & MAINTENANCE
$60,357
(-) TAXES
$41,289
(+) PRINCIPAL PAYDOWN YEAR ONE
(-) INSURANCE
$42,109
(-) MANAGEMENT @ 5% OF EGI
$28,533
(=) CASH FLOW INCLUDING
PAYDOWN
(-) RESERVES @ .10 PSF
$11,869
$343,314
$2,520,000
YIELD AFTER PRINCIPAL REDUCTION
$231,056
13.75%
highlights
investment highlights
HUGE UPSIDE POTENTIAL
Many Rents/Percentage Rents are Not Being Fully Collected.
Very Low Rent PSF Rates.
WELL MAINTAINED
Brand New Roof in 2012 and Well Maintained Throughout
Previous Ownership.
LONG TERM TENANCY
67 Percent of Current Tenants have been in Operation at this
Site for 20 Plus Years.
HIGHWAY VISIBILITY
Located in Close Proximity to Highway 62 and Interstate 55,
w i t h D i r e c t V i s i b i l i t y f r o m I n t e r s t a t e 5 5 . These two roads Intersect
near the Subject Property.
CENTRAL LOCATION
Conveniently Located Midway Between St. Louis, Missouri (2
Hours North) and Memphis, Tennessee (2 Hours South) at the
Junction of Interstates 55 & 57 and is Often a Popular Stop for
Tourists and Bus Tours Visiting Branson, Missouri’s (4.5 Hours
to the West) Entertainment Theatres.
STABLE RETAIL LOCATION
In Close Proximity to Lambert's Cafe, a Restaurant Chain
Known for Being the "Home of Throwed Rolls", and Nearby
National Retailers Including Burger King, McDonald’s, and Ruby
Tuesday. Nearby National Hotel Chains include Comfort Inn &
Suites, Best Western, Motel 6, Super 8, and America’s Value
Inn.
8
retail map
traffic counts |
address | 100
Outlet Drive
Miner, MO 63801
14,653 VPD - Highway 62/E Malone Avenue | 2014
18,511 VPD - Interstate 55 | 2014
55
62
MCDONALD’S
BURGER KING
one
e mal
av e n u
e
62
OUTLET
sikeston factory
outlet stores
9
property location
location
SIKESTON FACTORY OUTLET STORES
O U T L E T
D R I V E ,
M I N E R ,
M O
6 3 8 0 1
▲
1 0 0
The property is located near Highway
62 which runs east-west through Miner,
Missouri. It is visible from nearby Interstate
55 running north-south.
COLUMBUS
INDIANAPOLIS
KANSAS CITY
CINCINNATI
ST. LOUIS
LOUISVILLE
WICHITA
MINER
NASHVILLE
OKLAHOMA CITY
MEMPHIS
CHATTANOOGA
CHARLOTTE
10
major employers
employers
*Sourced from MapNet, Marcus & Millichap
Conopco Inc
850
Missouri Delta Med Ctr Aux Inc
698
Lowes Home Centers LLC
300
Mini Farms Homeowners Assn
210
200
Wal-Mart Stores Inc
195
Brown Group Retail Inc
150
Missouri Dept Mental Health
150
Pullen Bros Inc
150
Tetra Pak Materials LP
150
Alan Wire Company
Saint Francis Medical Center
- Cape Girardeau, MO -
household INCOMES 2014 |
3 Miles
5 Miles
10 MILES
10 Miles
AVERAGE
$49,825$49,909
$49,663
MEDIAN
$38,782
$36,081
$35,812
3 MILES
population |
11
5 MILES
3 Miles
5 Miles
10 Miles
2010
11,474
20,680
27,616
2014
11,376
20,650
27,670
2019
11,414
20,417
27,409
MINER
SIKESTON FACTORY OUTLET STORES
1 0 0
O U T L E T
D R I V E ,
M I N E R ,
M O
6 3 8 0 1
11
area overview
miner MISSOURI
Miner, Missouri is located just north of the “Missouri Bootheel’ (the
southeastern most part of the state of Missouri). The city is close to
the halfway point by way of Interstate 55, Interstate 70, and U.S.
Route 60 to St. Louis, Missouri and Memphis, Tennessee and three
hours from Nashville, Tennessee. Nearby Sikeston hosts the annual
Sikeston Jaycee Bootheel Rodeo which attracts over 20,000 fans
each year. The annual American Legion Cotton Carnival also takes
place in Sikeston every September along with several events hosted
at the Sikeston Factory Outlet Stores.
Miner is in close proximity to Cape Girardeau, 30 miles north, with a
population of more than 38,000. Located directly off Interstate 55,
Cape Girardeau features the Bill Emerson Memorial Bridge that spans
the Mississippi River and connects Southeast Missouri with Southern
| Isle Casino, Cape Girardeau, MO
Illinois.
Two state of the art hospitals sit within city limits of Cape Girardeau,
serving more than one million people from five states. St. Francis
Healthcare System serves the Cape Girardeau area and has joint
CLICK TO DISCOVER MORE ON
THE SOUTHEAST MISSOURI REGION.
partnership with the Physician Alliance Surgery Center. This system
contains six different centers and serves over 650,000 people. Nearby
Southeast Hospital, the main facility of Southeast Health Care System,
is a general medical and surgical hospital with more than 40,000
patients visiting the facility in the last year. This hospital serves the
southeast portions of Missouri, western Kentucky, southern Illinois,
and northern Arkansas. Other nearby hospitals include Landmark
Hospital, a long term acute care (LTAC) hospital and Black River
Medical Center which offers three beds and an emergency room.
An emerging college town, Cape Girardeau is home to Southeast
Missouri State University with an enrollment of approximately 10,000
students. As a comprehensive institution, the university offers over
200 areas of study, including undergraduate degrees as well as
master’s degrees and a cooperative Ed. D. program with the University
of Missouri.
| Southeast Missouri State University
12
Academic Hall, Southeast Missouri State University |
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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 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. 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, 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, Marcus & Millichap has 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 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.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
13
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Bill Emerson Memorial Bridge, Cape Girardeau, MO |
CONTACT
JOSEPH P. BLATNER
Vice President
of
Investments
j o s e p h . b l a t n e r @ m a r c u s m i l l i c h a p . com
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BRAD BARHAM
Broker
of
Record
Marcus & Millichap Real Estate Investment Services, Inc.
PH: (314) 889-2500