Flyer

NN INVESTMENT OPPORTUNITY
PRICE REDUCED
$5,020,000
RITE AID - YUBA CITY, CALIFORNIA
$4,485,000
NIKO MICIN
[email protected]
(206) 210-5208
California Broker of Record: David Zacharia License #01924608
01
NN LEASE OFFERING MEMORANDUM
AGM, Inc. hereby advises all prospective purchases of net leased property as follows:
This confidential offering memorandum has been prepared by AGM, Inc. for use by a limited number of parties and does not purport to provide a necessarily accurate summary of the property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective
investors may need or desire. No representation is made by AGM, Inc. or the property owner as to the accuracy or completeness of the information contained
herein, and nothing contained herein is or shall be relied on as a promise or representation as to the future performance of the property. Although the information
contained herein is believed to be correct, AGM, Inc., owner and their employees and agents disclaim any responsibility for inaccuracies and expect prospective
purchaser to exercise independent due diligence in verifying all such information. Further, AGM, Inc., owner and their employees and agents disclaim any and
all liability for representations and warranties, expressed and implied, contained in, or for omissions from, the confidential offering memorandum or any other
written or oral communication transmitted or made available to recipient. This confidential offering memorandum may include certain statements and estimates
by AGM, Inc. with respect to the projected future performance of the property; these assumptions may or may not be proven to be correct, and there can be no
assurance that such estimates will be achieved.
The confidential offering memorandum does not constitute a representation that there has been no change in the business or affairs of the property or owner
since the date of preparation of the confidential offering memorandum. Analysis and verification of the information contained in the confidential offering memorandum is solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the property will be made available upon
request to interested and qualified prospective investors or purchasers.
Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussion
with any entity at any time with or without notice. Owner shall have no legal commitment or obligation to any entity reviewing the confidential offering memorandum or making an offer to purchase the property unless and until such offer is approved by owner, a written agreement for the purchase of the property has
been fully executed, delivered and approved by owner and its legal counsel, and any conditions to owner’s obligation thereunder have been satisfied or waived.
This confidential offering memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the
public, are of a confidential nature. This information should not, under any circumstances, be photo copied or disclosed to any third party without the written
consent of AGM, Inc. or owner, or used for any other purpose whatsoever other than to evaluate the possible purchase of the property. By accepting the confidential offering memorandum, you agree that you will not use the confidential offering memorandum or any of the contents in any fashion or manner detrimental
to the interest of owner or AGM, Inc.
BY ACCEPTING THIS CONFIDENTIAL OFFERING MEMORANDUM, YOU AGREE TO RELEASE AGM, INC. AND HOLD IT HARMLESS FROM ANY KIND OF CLAIM, COST, EXPENSE, OR LIABILITY ARISING OUT OF YOUR
INVESTIGATION AND/OR PURCHASE OF THIS NET LEASED PROPERTY.
RITE AID
1590 BUTTE HOUSE ROAD
YUBA CITY, CALIFORNIA
Price: $4,485,000 ($256 PSF)
CAP Rate: 6.15%
NOI: $275,990
Lease Type: NN
Lease Expiration: February 21, 2019
Options: Six 5-year options
Property Type: Net Lease Drug Store & Pharmacy
Lot Size: 2 Acres
Building Size: 17,499 SF
Year Built: 1999
02
INVESTMENT OVERVIEW
BELOW REPLACEMENT COST: $285/SF
BELOW MARKET RENT: $15.71/SF
ONLY RITE AID IN YUBA CITY
STRONG PERFORMING STORE
NORTHERN CALIFORNIA LOCATION
• Exceptionally High Sales - Strong Prescription Base
• Located on a hard corner with a high visibility factor
• Wellness Remodel done in 2013
• Situated along Butte House Road - one block North
• High intrinsic value
of Colusa Highway
• Rite Aid has been at the location for over 16 years
• Two blocks East from Yuba Sutter (Regional) Mall
• Rite Aid Corporate Guarantee
• 94,000 people within a 5-mile radius and $64,000 in
• Location features a drive-thru
Average Household Income
• Aggressive Rental Escalations in the option periods
• Limited Competition - One (inline) CVS and two
• NN Lease with minimal Landlord responsibilities
Walgreens
• Traffic count in excess of 15,000 ADT
03
INVESTMENT HIGHLIGHTS
04
RENT SCHEDULE
PRICING
PERIOD
YEARS
ANNUAL RENT
MONTHLY RENT
Purchase Price
$4,485,000
CURRENT
16 - 20
$275,990
$22,999
Annual Rent
$275,990
OPTION 1
21
$292,826
$24,402
CAP Rate
6.15%
22 - 25
$298,614
$24,884
26
$315,450
$26,287
27 - 30
$321,644
$26,803
31
$338,480
$28,206
32 - 35
$345,107
$28,758
36
$361,943
$30,161
37 - 40
$369,034
$30,752
41
$385,870
$32,155
42 - 45
$393,457
$32,788
46
$410,293
$34,191
47 - 50
$418,411
$34,867
OPTION 2
TENANT SUMMARY
Trade Name
Rite Aid
Lease Type
NN
Lease Term
20 Years
Lease Expiration
02/21/2019
Options
Six 5-Year
OPTION 3
OPTION 4
OPTION 5
OPTION 6
05
RITE AID BRAND OVERVIEW
Property Type:
Parent Company:
Ownership:
Credit Rating:
Rating Agency:
Revenue:
Net Income:
Stock Symbol
Drug Store
Rite Aid Corporation
Public
B
Standard & Poor’s
$25.526 Billion
$249.4 Million
RAD
Board
NYSE
No. of Locations:
4,615
No. of Employees:
Headquartered:
Website:
Year Founded:
Rite Aid Corporation, through its subsidiaries, operates a chain
of retail drugstores in the United States. The company sells
prescription drugs and a range of other merchandise, including
over-the-counter medications, health and beauty aides, personal
care items, cosmetics, household items, photo processing
servces, food and beverages and other everyday and convenience
products.
The company offers its products to customers covered by third
party payors, such as insurance companies, prescription benefit
management companies, government agencies, private employers
and other managed care providers. It has a strategic alliance with
GNC. As of June 20, 2013, the company operated 4,615 stores in
31 states and the District of Columbia. Rite Aid Corporation was
founded in 1927 and is headquartered in Camp Hill, Pennsylvania.
49,840
Camp Hill, PA
www.riteaid.com
1927
National Tenant: NYSE RAD
Revenue: Over $26.08 Billion
3rd largest drugstore chain
06
LEASE ABSTRACT
Tenant:
Rite Aid - Thrifty Payless, Inc
Tenant Address:
30 Hunter Lane, Camp Hill, PA
Property Address:
1590 Butte House Road, Yuba City, CA
Date of Lease:
July 1, 1998
Rent Commencement:
February 22, 1999
Lease Expiration
February 21, 2019
Lease Term:
20 years
Lease Type:
NN
Ownership:
Fee Simple
Renewal Options:
Six 5-year
Annual Rent:
$275,990
Rent Escalations:
Yes
Insurance:
Tenant Responsible
Landlord Responsibility:
Roof, structure, exterior portions of Premises, utility lines outside of Premises
and installed in walls
07
AERIAL MAP
08
COMPETITOR MAP
09
LOCATION INFORMATION
YUBA CITY, CALIFORNIA
Yuba City is the county seat of Sutter County, located in Northern California. It has a population of 64,925.
It is the principal city of the Yuba City Metropolitan Statistical Area, which has a total population of 164,138
(the 21st largest metropolitan area in CA). Yuba City has the largest dried fruit processing plant in the world,
Sunsweet Growers Incorporated, one of the city’s top employers. Being a small town, retail and healthcare
make up the largest sectors of the economy. Some other notable employers are: the Geweke Auto Group,
Hilbers Incorporated, SharpeSoft, and Jaeger Construction. Farming is also incredibly important in the county.
New investments, such as the Cal-Trans improvements along State Highway 99 and State Highway 20 and the
redevelopment of Yuba City’s downtown Plumas Street into a destination shopping district, have established
Yuba City as a regional hub.
10
LOCATION INFORMATION
POPULATION
1 MILE
3 MILE
5 MILE
2010
7,940
64,043
92,760
2013
7,933
65,167
94,163
2018
7,963
66,875
96,460
HOUSEHOLD INCOME
1 MILE
3 MILE
5 MILE
2013 Average
2013 Median
$64,855
$48,481
$65,203
$49,005
$63,970
$48,126
TOP EMPLOYERS
# OF EMPLOYEES*
Fremont-Rideout Health Group
1,850
Yuba City Unified School District
Sutter County
Sunsweet Growers
1,316
970
670
*Approximate
11
TRAFFIC COUNT