PNC Bank Ground Lease Johns Creek, GA

offering memorandum.
PNC Bank Ground Lease
Johns Creek, GA | Atlanta MSA
$4,975,000
4.00% CAP Rate
is Rated “A” by S&P
••Tenant
20 Year Absolute NNN Lease
••New
Construction
••2015
Highest Earning City in the United
••13th
States - According to Money Magazine
••Strong Demographics within 5 miles
••
••
••
Average Household Income of $137,209
Population of 195,312
Median Home Value over $415,000
FILE PHOTO
This property is listed in conjunction with Georgia-licensed real estate broker Delta Commercial.
www.maffiateam.com
Disclaimer
Newmark Cornish & Carey (“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.
Table of Contents
Property Information
1
Tenant Information
2
site plan
3
aerials
4
about the area
7
Demographics
9
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]
CA RE License #01823291
Putnam Daily
VP/Transaction Manager
415.445.5107
[email protected]
CA RE License #01750064
www.maffiateam.com
Property Information
Location
The property is located at 3290 Old Alabama Road in Johns Creek,
Georgia.
Net Annual Income
Rent
Return
1-5
$199,000
4.00%
6-10
$218,900
4.40%
Lot Size
11-15
$240,790
4.84%
Approximately 0.848 acres, or 36,939 square feet. Only the land is
for sale.
16-20
$264,869
5.32%
Improvements
Construction of an approximately 2,429 square foot retail bank
branch with drive-thru component for PNC Bank has commenced
and will be completed in November 2015. There is ample parking
on site. The improvements were built by tenant and shall remain
property of tenant during the term of the lease, and upon expiration
or termination of the lease, title to all such improvements shall
become vested in landlord; the improvements are not for sale.
Year
21-25
(Option 1)
$291,356
5.86%
26-30
(Option 2)
$320,492
6.44%
31-35
(Option 3)
$352,541
7.09%
36-40
(Option 4)
$387,795
7.79%
Price: $4,975,000 (4.00% Return)
Financing
Ground Lease
Leased to PNC Bank, National Association, for 20 years from
November 2015 to November 2035, at an initial annual net rent
of $199,000. There are four five-year options to renew the lease.
The rent increases by 10% every five years throughout the initial
term and option periods. The lease is absolute net, with the tenant
responsible for taxes, insurance, maintenance, including roof and
structure.
The property will be delivered free and clear of permanent
financing.
1
Tenant Information
The PNC Financial Services Group, Inc. (NYSE: “PNC”), parent company of the tenant, is an American financial
services corporation, with assets of approximately $345.2 billion as of December 31, 2014. PNC operations include a
regional banking franchise operating primarily in nineteen states and the District of Columbia with more than 2,700
branches, online and mobile services together with 8,000 ATM machines, specialized financial businesses serving
companies and government entities, and asset management and processing businesses. PNC is the fifth largest
bank in the United States in terms of branches, sixth largest bank by deposits in the United States, sixth largest by
total assets, and the third largest bank off-premise ATM provider. PNC is based in Pittsburgh, Pennsylvania.
For the quarter ended December 31, 2014, The PNC Financial Services Group, Inc., reported revenue of $4.187 billion with net income of $1.036
billion and a total stockholders’ equity of $44.55 billion. PNC Financial Services Group, Inc. enjoys a Standard & Poor’s rating of “A”.
For more information, please visit www.pnc.com.
2
PROPOSED
PNC BANK
Site Plan
ALA
OLD
OLD ALABAMA RD AND BRUMBELOW RD
EAST ALPHARETTA, GEORGIA
TEST FIT
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2,429 SF
3
Holy Redeemer
Catholic School
Aerial | East View
Mount Pigsah
Christian
School
Brumbelow Rd
$118.8M
Georgia
Clinic
HAYNES BRIDGE VILLAGE
Newtown
Park
Johns Creek
Fire Station
Old
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Haynes Bridge Rd
Aerial | Northwest View
MANSELL CROSSINGS
NORTH POINT MALL
MARKET AT HAYNES BRIDGE
HAYNES BRIDGE VILLAGE
NORTH POINT MARKET CENTER
Country Club
of Roswell
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rid
Haynes B
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$118.8M
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5
Aerial | South View
ATLANTA
Rivermont
Golf & Country Club
RIVERMONT STATION
HOLCOMB CORNERS
Newtown
Park
Br
um
low
be
Mount Pigsah
Christian
School
EAST VILLAGE SHOPPING CENTER
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Georgia
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AADT
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$118.8M
6
About the Area
General Overview
Johns Creek is a northeastern suburb of Atlanta with a
population of 82,788. According to Money Magazine, Johns
Creek is the 13th highest-earning city in the United States.
Johns Creek is part of Metro Atlanta, a 29 county region
of urban, suburban and rural communities in northeastern
Georgia. Together these make up the ninth largest
(Population: +/- 5 million) U.S. metropolitan area including
the fifth largest concentration of Fortune 500 businesses.
Businesses based in Metro Atlanta can reach more than 80
percent of all US consumers in two flight hours from the
world’s busiest airport, Hartsfield-Jackson International
Airport.
In 2013, there were 2,561 businesses located in Johns Creek
with major employers including the world headquarters
of Macy’s Integrated Systems, World Financial Group and
Movius Interactive Corporation. Employment sectors in Johns
Creek generally follow trends of the Metro Atlanta region
as a whole. The largest concentrations of employment in
Johns Creek fall within the insurance, financial, real estate,
health care, retail, manufacturing and professional scientific &
technology industries.
The public schools in Johns Creek are part of the Fulton
County School System and not funded by the city. Johns
Creek’s public schools consistently place among the top in
the nation. Chattahoochee High School, River Trail Middle
School, and Dolvin Elementary are National Blue Ribbon
Schools of Excellence. Northview High School has three times
won the Governor’s Cup for the state’s highest SAT scores.
There are six golf facilities in Johns Creek, including the
renowned Atlanta Athletic Club, home of the 2011 PGA
Championship and the 2014 U.S. Amateur. Johns Creek is
home to thousands of members of the Atlanta Lawn Tennis
Association (ALTA), one of the largest and oldest organized
recreation leagues in the country. Johns Creek, which is
bordered by 13.5 miles of the Chattahoochee River, has
multiple nearby spots where paddlers can put in or take out
their boats. It has shoals and low-level rapids. It also offers
prime trout fishing.
About the Area
Site Information
The subject property is located on the southwest corner of
Old Alabama Road and Brumbelow Road in the affluent city
of Johns Creek. The site has direct access off of Old Alabama
Road (29,500 AADT) and Brumbelow Road. Old Alabama
Road offers convenient access to U.S. Route 19 (154,170
AADT) and State Route 140 (40,870 AADT) which are
approximately three miles west of the property.
Across from the subject property on Old Alabama Road is
Haynes Bridge Village, a shopping center anchored by a
101,610 square foot Publix. Starbuck’s, GNC, Starbucks, and
other local retailers occupy the inline shops, and SunTrust
Bank is situated on the pad site parallel to Haynes Bridge
Road. Adjacent to Haynes Bridge Village is the approximately
135,000 square foot Market at Haynes Bridge shopping
center anchored by Kroger. The inline shops include Subway,
Papa John’s Pizza, All State Insurance, American Red Cross,
UPS Store, Supercuts, and several other local retailers. Chase
Bank occupies the southeast corner pad site within the
shopping center. Across from Market at Haynes Bridge is
a The Fresh Market, with a Walgreens and Firehouse Subs
outparcel.
With an average household income of $137,209 and
population of 195,312 and median home values in excess of
$415,000 within a five mile radius, the PNC location benefits
from a very affluent demographic.
Demographics
3390 Old Alabama Rd, Johns Creek, GA 30022
1 Mile
3 Miles
5 Miles
2015 Total Population
10,195
70,620
185,312
2020 Total Population
11,174
75,195
206,890
2015-2020 Annual Rate
1.85%
1.26%
1.16%
2015
$165,409
$139,572
$122,162
2020
$184,543
$155,533
$137,209
2015
$122,463
$100,090
$84,987
2020
$140,443
$111,932
$99,916
2015
$445,124
$438,705
$415,923
2020
$499,391
$490,895
$454,846
Population Summary
Average Household Income
Median Household Income
Median Home Value
Top Employers - Johns Creek
# Employees
State Farm
1,280
Alcon
1,235
Macy's Systems and Technology
1,018
Kroger
879
Emory Johns Creek Hospital
615
Publix
253
Saia
239
Life Time Fitness
229
World Financial Group
207
Whole Foods Market
205
9
FILE PHOTO
901 Mariners Island Boulevard, Suite 120
San Mateo, CA 94404
Michael Yuras, CCIM
Vice President
415.481.0788
[email protected]
CA RE License #01823291
Putnam Daily
VP/Transaction Manager
415.445.5107
[email protected]
CA RE License #01750064
www.maffiateam.com