jared galleria of jewelry

Investment Property Offering
$1,915,789
JARED GALLERIA OF JEWELRY
6400 Bluebonnet Boulevard, Baton Rouge, LA 70806
Presented By:
Kase Abusharkh
252 Abigail Circle
Danville, CA 94506
(925)348-1844
[email protected]
Offering Highlights
New 20 Yr NNN Lease with 10%
Increases Every 5 Yrs
Strong Tenant with Over 1,400 Locations
New 2011 Class A Construction
Outparcel to a Major GGP Mall (Mall of
Louisiana)
05/20/2011
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Table of Contents
1
Financial Analysis
Executive Summary
Investment Information
Rent Roll Summary
2
Additional Information
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
1 . Financial Analysis
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Executive Summary
JARED GALLERIA OF JEWELRY
6400 Bluebonnet Boulevard
Baton Rouge, LA 70806
List Price
Price Per GLA
Price per S.F.
CAP
$1,915,789
$316.29
$316.29
9.50 %
GLA
Building S.F.
Percent Occupied
Land Acres
6,057
6,057
100.00 %
0.8000
Jared Galleria of Jewelry Leasehold Investment
Cross Street
Market
Picardy Avenue
Louisiana
Year Built
No. of Buildings
Available Pads
Corner
Parking Ratio
Occupancy
2011
1
1
Yes
7/1000
100.00 %
Sub Market
Baton Rouge
Building Class
No. of Pads
Shadow Anchored
No. of Parking Spaces
No.Tenants
A
1
Mall of Louisiana
42
1
Property Descriptions
Construction
Parking
New Class A construction slated for completion in September 2011.
Ample on-site parking with 42 parking spaces yielding a ration of 7 per 1,000 sf of retail
space.
Traffic Counts
Traffic counts are strong. The site enjoys residual traffic from the draw of the adjacent
mall and the many other major surrounding tenants.
Ingress/Egress
The property provides excellent ingress and egress as the site is strategically located
on the hard corner entrance of Mall of Louisiana, a major regional mall.
Major Tenants
Sterling Jewelers, Inc. (d/b/a Jared) is the second largest specialty retailer of fine
jewelry in the United States. Sterling Jewelers operates over 1,400 stores under such
names as Kay Jewelers, Jared Jewelers and Belden Jewelers. Sterling Jewelers is a
wholly owned subsidiary of Signet Group PLC, a publicly traded company listed on New
York Stock Exchange (SIG) and the world’s largest jewelry retailer.
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
Area
Sitting adjacent to the Mall of Louisiana, the property enjoys an excellent retail location.
There are a number of other out-parcels to the mall with major retailers. Next to the
subject site is a newly constructed Red Lobster. The mall is anchored by Sears,
JCPenney, Dillard's and Macy's. The mall is approx. 1.6 million square-feet and has
over 175 retailers. Adjacent to the site of the mall and the retail out-parcels are the
Baton Rouge General Medical Center and the Jimmy Swaggart Bible College.
Baton Rouge is the capital and 2nd largest city in Louisiana. The metropolitan area is
known as Greater Baton Rouge. The Baton Rouge-Pierre Part Combined Statistical
Area, consisting of the Baton Rouge metropolitan area and Pierre Part micropolitan
area is the 63rd-largest city in the US.
Property
The subject offering the leasehold interest in a newly constructed Jared Galleria of
Jewelers store located in Baton Rouge, Louisiana. The store is under construction and
scheduled to be completed in September 2011 with a rent commencement date of
October 1, 2011. Jared, through its parent company, Sterling Jewelery, has executed a
20 year absolute NNN lease with four consecutive 5 year renewal options. The lease
calls for 10% rental increases every 5 years throughout the initial term and the options.
This lease is subject to an underlying ground lease owned by a third party and is a
leasehold investment opportunity. The third party that owns the land underneath the
property and signed a 20 year ground lease with four 5 year options to extend. There
are no landlord responsibilities, the tenant is responsible for all expenses, including
taxes, insurance and CAM. The tenant also pays the ground rent directly to the land
owner.
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
Investment Information
JARED GALLERIA OF JEWELRY
Listing Price
2011 CAP
2016 CAP
Price Per S.F.
6400 Bluebonnet Boulevard Baton Rouge, LA 70806
$1,915,789
9.50 %
10.45 %
$316.29
Estimated Annualized Operating Data
Net Operating Income
GLA
Building S.F.
Percent Occupied
Land Acres
6,057
6,057
100.00 %
0.8000
2011
2016
2021
2026
$182,000
$200,200
$220,220
$242,242
Highlights
New 20 Yr NNN Lease with 10%
Increases Every 5 Yrs
Strong Tenant with Over 1,400
Locations
New 2011 Class A Construction
Outparcel to a Major GGP Mall (Mall of
Louisiana)
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
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Rent Roll Summary
Tenant Name
Start Date
End Date Occupied
S.F.
Sterling, Inc. (d/b/a
Jared)
10/1/2011
9/30/2031
6,057
Total
6,057
Annual
Rent S.F.
$30.05
Occupied
Rent
% of Escalations / Options / Comments
Total
$182,000 100.0 % Scheduled 10% increases every 5 years.
Four 5 year options to renew with 10%
increases every 5 years throughout the
option periods.
This lease is subject to an underlying
ground lease owned by a third party. This
is a leasehold investment opportunity.
Tenant pays $140,000/yr in ground rent
directly to landowner. Ground rent
increases 10% every 5 years.
$182,000 100.0 %
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
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2 . Additional Information
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Aerial Photo
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
All Sperry Van Ness® Offices Independently Owned and Operated.
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Site Plan
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
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Location Map
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
All Sperry Van Ness® Offices Independently Owned and Operated.