walmart neighborhood market

walmart
neighborhood
market
ACTUAL STORE
Guaranteed by “AA” Walmart
possible 3.5% long-term debt
Growing metro area in an
outer suburb of atlanta
Opened january 28th
For more info on this opportunity please contact:
RICK SANNER
[email protected] | (415) 274-2709
CA BRE# 01792433
BOB SANNER
[email protected] | (415) 274-2717
CA BRE# 00869657
1435 Thompson Bridge Road, Gainesville, GA 30501
Capital Pacific collaborates. Click here to meet the rest of our San Francisco team.
In conjuction with: Steve Miller of Miller Realty Services, Inc.
smiller@millerrealtyservices | (770) 409-0266
WALMART NEIGHBORHOORD MARKET
IN THE OUTER SUBURBS OF ATLANTA
Investment Highlights
The Neighborhood Market is Walmart’s smaller grocery concept, which
was launched in 1998 and gives customers a more convenient shopping
experience than the typical Walmart Supercenter.
The Supercenter is typically 160,000 square feet compared to the Neighborhood Market, which is
approximately 40,000 square feet and has a fuel center and a drive-thru pharmacy for increased
convenience.
Walmart’s strategy is to have a total of 500 stores operating by 2015 and build hundreds more
every year for the foreseeable future. This store is in a growing metro area 40 miles northeast of
the interstate highway, I-285, around the perimeter of Atlanta. With recent interest rates, 20year fixed rate debt on this property was quoted in early February at 3.5%.
PRICE: $12,844,860
CAP: 5.00%
RENTABLE SF. . . . 41,983 SF
LAND AREA. . . . . . 5.24 Acres
LEASE HIGHLIGHTS
20 year base term began January 28, 2015
4-5 year options, each with a 10% increase
Landlord is responsible for structural elements of the building. Tenant is
responsible for all other expenses, including the roof and parking lot.
WALMART NEIGHBORHOOD MARKET | 2
ACTUAL STORE
Income & Expense
PRICE
$12,844,860
Cap Rate:
5.00%
Total Rentable Area (SF):
41,983
Lot Size (Acres):
STABILIZED INCOME
5.24
Per Square Foot
Scheduled Rent
$15.30
$642,243
Effective Gross Income
$15.30
$642,243
LESS
ACTUAL STORE
Per Square Foot
Taxes
$0.00
Insurance
$0.00
Total Operating Expenses
$0.00
EQUALS NET OPERATING INCOME
$642,243
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as
to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
WALMART NEIGHBORHOOD MARKET | 3
ACTUAL STORE
Rent Roll
TENANT INFO
LEASE TERMS
Tenant Name
Sq. Ft.
Walmart Neighborhood Market
41,983
Current Totals:
41,983
Term
RENT SUMMARY
Current
Rent
Monthly
Rent
Yearly
Rent
Monthly
Rent/FT
Yearly
Rent/FT
2/1/2015
1/31/2035
$642,243
$53,520
$642,243
$1.27
$15.30
2/1/2035
1/31/2040
Option 1
$58,872
$706,467
$1.40
$16.83
2/1/2040
1/31/2045
Option 2
$64,760
$777,114
$1.54
$18.51
2/1/2045
1/31/2050
Option 3
$67,997
$815,970
$1.62
$19.44
2/1/2050
1/31/2055
Option 4
$71,397
$856,768
$1.70
$20.41
$642,243
$53,520
$642,243
$1.27
$15.30
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Representative Photos
WALMART NEIGHBORHOOD MARKET | 4
ACTUAL STORE
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GAINESVILLE
CITY CENTER
WALMART NEIGHBORHOOD MARKET | 5
Thompson Bridge Road
Site Plan
FUEL
STATION
on
nd
Bra
ce
Pla
NOT A PART
Key Lease Information
ACTUAL STORE
TENANT
Wal-Mart Stores East, LP (This is a wholly-owned Walmart
subsidiary)
GUARANTOR
Wal-Mart Stores, Inc. (AA rated; the parent company)
DATE OPENED
January 21, 2015
LANDLORD RESPONSIBILITIES
Landlord shall be responsible for the cost and expense
of maintenance, repair, and replacement of structural
components only (not the roof ). Expenses related to the
roof , parking lot, and all other parts of the property are the
responsibility of the tenant.
WALMART NEIGHBORHOOD MARKET | 7
Walmart Neighborhood Market
ACTUAL STORE
ACTUAL STORE
ABOUT WALMART NEIGHBORHOOD MARKET
WALMART STORES, INC.
IS RANKED #1 IN THE
FORTUNE 500 AND IS EASILY
THE LARGEST GROCERY
RETAILER IN THE U.S.
Walmart Neighborhood Market is a chain of grocery stores launched
by Walmart in 1998. There are over 359 Neighborhood Markets in the
U.S. featuring a wide variety of products, including fresh produce,
deli foods, fresh meat and dairy items, health and beauty aids, onehour photo, drive-thru pharmacies, stationery and paper goods, pet
supplies, and household chemicals. Walmart Neighborhood Market
was designed to create easier parking, less crowded aisles, and
quicker checkouts than at Walmart Supercenters.
2013 SALES
$476 BILLION
S&P RATING
AA
Walmart is the world’s biggest retailer and largest employer - with
over 2.2 million full and part-time workers worldwide, including more
than 1.4 million in the U.S. With more than $476 billion in total sales
for 2013, Walmart is known for its low pricing and wide selection of
goods.
WALMART NEIGHBORHOOD MARKET | 8
Walmart Dominance
WALMART IS EASILY THE LARGEST GROCERY RETAILER - AND
ITS LEAD IS INCREASING
In 2012 Walmart had 55% (up from 53% in 2011) of its sales from
grocery, thus indicating that Walmart had grocery sales in 2012 of
$244 billion. Comparatively, the largest grocery chain, Kroger, in
2012 had sales of $98 billion.
OVERALL RETAILING
Walmart, with 2013 sales of $476 billion, is easily the
largest retail chain in the world. The second largest U.S.
chain is Costco, with sales of $110 billion, less than one
quarter of the Walmart sales. Costco’s sales are actually
less than one half of Walmart’s grocery sales.
CREDIT
Walmart has the highest S&P credit rating of any
retailer: AA. Credit ratings of other strong retailers such
as Lowe’s, Costco, Walgreens, and CVS are significantly
lower. Walmart also has a higher rating than any U.S.
bank.
SIZE
Walmart is #1 in the Fortune 500 - the largest company
in America.
WALMART IS
SIMPLY THE TOP
NAME IN GROCERY,
IN OVERALL
RETAILING, CREDIT
RATING, AND SIZE
Walmart’s grocery sales were initiated, starting from zero, a few
decades ago when it began adding grocery departments to its
new stores, thus adding to square footage and calling these larger
units “superstores.”
In 1998, Walmart began building stand-alone grocery stores called
Walmart Neighborhood Market. Survey after survey has shown
Walmart to be the leader in low priced groceries. For example,
from Supermarket News, July 16, 2014, “Walmart’s [groceries]
were the least expensive and had the lowest-priced items during
mystery shops conducted recently at a Los Angeles Walmart,
Vons, Ralphs, and Target.”
WALMART NEIGHBORHOOD MARKET | 9
ACTUAL STORE
Walmart In The News
Exerpts from article:
ACTUAL STORE
WHY WALMART SUDDENLY THINKS SMALLER IS BETTER
JUNE 16, 2014 - BY WALTER LOEB
“[Previously, Walmart management believed that] customers preferred the
larger assortment in the superstores.”
“[But at Walmart now] the convenience of quick shopping has become front
and center. Today there is a real focus at Walmart on smaller stores. Two
hundred new Neighborhood Market units will open this year...there could
be thousands in five years.”
“[Walmart’s CEO] is stressing that the customer wants the convenience of a
quick shopping trip to a [Neighborhood Market].”
THE ADDITIONAL
STORES MENTIONED BY
FORBES WILL INCREASE
WALMART’S GROCERY
DOMINANCE
Representative Photos
WALMART NEIGHBORHOOD MARKET | 10
ACTUAL STORE
Location & Demos
GAINESVILLE, GA OVERVIEW
The Gainesville MSA had a 2013 estimated population of 187,000+, up 4.4%
from the 2010 official census of 179,000+. This is well above average growth
compared to the U.S. as a whole. The city is located in northeast Georgia,
approximately 50-55 miles northeast of downtown Atlanta, in the foothills of
the Blue Ridge Mountains surrounded on three sides by man-made Lake Sidney
Lanier, a huge and popular recreational spot. Gainesville is the largest of the six
cities in Hall County and is the county seat. As the business hub for northeast
Georgia, Gainesville’s daytime population is estimated in excess of 100,000.
With the growth of Atlanta particularly toward the northeast, Gainesville has
increased in importance to commuters. The city is 40 miles from I-285, “The
Perimeter” interstate around Atlanta.
Gainesville has numerous poultry processing plants, with the poultry industry
representing six of the top ten employers. Another major industry is health care,
with Northeast Georgia Health System being the top employer in the city.
The huge Wrigley plant is one of that company’s three U.S. production facilities,
manufacturing products such as Juicy Fruit chewing gum and Life Savers.
Gainesville is also home to three institutions of higher education: University of
North Georgia (15,000 students), Brenau University (2,000 students), and the
Interactive College of Technology.
POPULATION
2010
2013
2018
1-Mile
3-Mile
5-Mile
6,142
6,117
6,273
34,448
34,465
35,499
65,696
66,614
69,183
1-Mile
3-Mile
5-Mile
$67,841
$40,819
$55,614
$35,848
$59,756
$40,616
2013 HOUSEHOLD INCOMES
Average
Median
TOP EMPLOYERS IN GAINESVILLE
Northeast Georgia Health System
Fieldale Farms
Pilgrim’s Mar-Jac
Wrigley
WALMART NEIGHBORHOOD MARKET | 11
lle
Gainesvi
Location
Regional Map
WALMART
NEIGHBORHOOD
MARKET
gainesville
REPRESENTATIVE PHOTO
ACTUAL STORE
WALMART NEIGHBORHOOD MARKET | 12
A unique HUMAN
RESULTS-DRIVEN
client experience
RICK SANNER
THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS
ACTUAL STORE
[ www.CapitalPacific.com ]
[email protected] | (415) 274-2709
CA BRE# 01792433
BOB SANNER
[email protected] | (415) 274-2717
CA BRE# 00869657
In conjuction with: Steve Miller of Miller Realty Services, Inc.
smiller@millerrealtyservices | (770) 409-0266
Copyright © 2014 [Capital Pacific Real Estate Brokerage Company]