BIG LOTS!

BIG LOTS!
1530 E JACKSON ST, THOMASVILLE, GA 31792
OFFERING MEMORANDUM
™
C O N FID EN T I A L I T Y & DI SCL A IMER STATEMEN T
T his Of f er ing M e m o r a n du m co n t a i n s s e l ec t i nform ati on pertai ni ng to the busi ness and affai rs of Big Lots! located at 1530 E Jackson St , Thomasville,
GA 31792 (“ P r o p e rt y ” ) . It h a s be e n p r e p a red by Matthews Retai l Advi sors . Thi s O fferi ng Mem oran d u m may n ot b e all-in clu s ive or con t ain all
o f t he inf o r ma t i o n a p r o s p e ct i v e p u r ch a s er m ay desi re. The i nform ati on c ontai ned i n thi s O fferin g M emoran d u m is con fid en t ial an d fu rn is h ed
s o le ly f o r t he p u r p o s e o f a r e v i e w by a p rospec ti ve purc haser of the Property. It i s not to be used for an y ot h er pu rpos e or mad e availab le t o
a ny o t he r p e r s o n w i t h o u t t h e w r i t t e n co n sent of Sel l er or Matthews Retai l Advi sors . The m aterial is b as ed in part u pon in format ion s u pplied
b y t he Selle r an d i n p a r t u p o n f i n a n ci a l i nform ati on obtai ned from sourc es i t deem s rel i abl e. Own er, n or t h eir officers , employees , or agen t s
ma kes a ny r e p r e s e n t a t i o n o r w a r r a n t y, e xpress or i m pl i ed, as to the ac c urac y or c om pl etwene s s of t h is Offerin g M emoran d u m or an y of it s
c o nt e nt s a nd n o l e g a l l i a bi l i t y i s a s s u m e d or shal l be i m pl i ed wi th respec t thereto. Prospec ti ve pu rch as ers s h ou ld make t h eir own project ion s
a nd f o r m t he ir o w n co n cl u s i o n s w i t h o u t rel i anc e upon the m ateri al c ontai ned herei n and c ondu ct t h eir own d u e d iligen ce.
B y a c kno w le dg i n g y o u r r e ce i p t o f t h i s O fferi ng Mem orandum for the Property, you agree:
1. T he Of f e r i n g M e m o r a n du m a n d i t s c ontents are c onfi denti al ;
2. Yo u w il l h o l d i t a n d t r e a t i t i n t h e s tri c test of c onfi denc e; and
3. Yo u w ill n o t , di r e ct l y o r i n di r e ct l y, di sc l ose or perm i t anyone el se to di sc l ose thi s O fferi n g M emoran d u m or it s con t en t s in an y fas h ion
o r ma nn e r de t r i m e n t a l t o t h e i n t e rest of the Sel l er.
Ow ne r a nd Mat t h e w s Re t a i l A dv i s o r s e x pressl y reserve the ri ght, at thei r sol e di sc reti on, to reject an y an d all expres s ion s of in t eres t or
o f f er s t o p ur ch a s e t h e P r o p e r t y a n d t o t erm i nate di sc ussi ons wi th any person or enti ty revi ewin g t h is Offerin g M emoran d u m or makin g an
o f f er t o p ur c h a s e t h e P r o p e r t y u n l e s s a nd unti l a wri tten agreem ent for the purc hase and sal e of t h e Propert y h as b een fu lly execu t ed an d
d e liv er e d .
I f y o u w ish no t t o p u r s u e n e g o t i a t i o n s l e adi ng to the ac qui si ti on of the Property or i n the future you d is con t in u e s u ch n egot iat ion s , t h en you
a g r ee t o p ur g e a l l m a t e r i a l s r e l a t i n g t o t hi s Property i nc l udi ng thi s O fferi ng Mem orandum .
A p r o sp ec t iv e p u r ch a s e r ’s s o l e a n d e xcl usi ve ri ghts wi th respec t to thi s prospec ti ve transac ti on , t h e Propert y, or in format ion provid ed h erein
o r in c o nne c t i o n w i t h t h e s a l e o f t h e P r o perty shal l be l i m i ted to those expressl y provi ded i n an execu t ed Pu rch as e Agreemen t an d s h all b e
s ub je c t t o t he t e r m s t h e r e o f. In n o e v e n t shal l a prospec ti ve purc haser have any other c l ai m s again s t Seller or M at t h ews Ret ail Ad vis ors or
a ny o f t heir a ff i l i a t e s o r a n y o f t h e i r r e s p ec ti ve offi c ers, Di rec tors, sharehol ders, owners, em ployees , or agen t s for an y d amages , liab ilit y, or
c a us es o f a c t i o n r e l a t i n g t o t h i s s o l i ci t a t i on proc ess or the m arketi ng or sal e of the Property.
T his Of f er ing M e m o r a n du m s h a l l n o t be deem ed to represent the state of affai rs of the Prope rt y or con s t it u t e an in d icat ion t h at t h ere h as
b e en no c ha nge i n t h e s t a t e o f a f f a i r s o f the Property si nc e the date thi s O fferi ng Mem orandum.
BIG LOTS!
1530 E JACKSON ST THOMASVILLE, GA 31792
TABLE O F CO NT ENTS
04. Executive Summary
06. Property Overview
13. Tenant Overview
15. Area Overview
17. Demographics
™
Andrew Gross
Associate
Chad Kurz
SVP & National Director
Kyle Matthews
Broker of Record
License No. 01987860
O 310.955.1773
M 435.659.1404
[email protected]
License No. 01911198
O 310.919.5850
M 562.480.2937
[email protected]
License No.363764
E XECUTIVE S UMMARY
Investment Highlights
Prime Retail Location
•
•
High Traffic Signalized Corner - Pinetree Blvd boasts over 15,000 ADT
and Jackson Street hosts over 18,000 ADT
Property is situated on the corner Jackson St. and Pinetree Boulevard
with excellent visibility from either thoroughfare
Proven Location for Exceptional Tenant Performance
•
•
•
•
•
Incredibly Healthy Rent to Sales ratio of 3.69%
Big Lots! has successfully operated at this location for nearly twenty years
Brand new Parking Lot resurfacing completed September of 2016
Brand new outparcel development, increasing traffic driven toward
location
Reported sales have a year-over-year upward trend
Nationally Recognized, Credit Tenant
•
•
Big Lots! is a national retailer, with nearly 1,500 locations
Big Lots! is a publicly traded company on the New York Stock Exchange
which was recently upgraded to BBB credit (Investment Grade)
Strong Potential Upside Possibility
•
•
•
•
Minimal landlord responsibility – Landlord only responsible for roof and
structure
Big Lots! reimburses the taxes and insurance and pays an additional fixed
amount of $226.58 per month for parking lot replacement (Capital
Expenditure Contribution).
Final Option period approaching with strong indication of extension
Current rent per square foot ($3.95/SF) is nearly 300% below market
rent for Thomasville retail property ($10.70/SF)
High Upside potential for New Development
•
•
•
4 I Matthews Retail Advisors
Approval to Sub-Parcel: Development for additional outparcel approved
by Thomasville City Council
Land and building directly behind the building primed to be converted to
additional parking for new development opportunities
The recently constructed Zacadoo’s Restaurant on the corner outparcel
includes state of the art landscaping which contributes a strong aesthetic
driver toward this location
Executive Summary
Annualized Operating Data
Monthly Rent
Annual Rent
Rent/SF
Current - 1/31/2018
$9,063.00
$108,756.00
$3.05
BIG LOTS!
Option 1 - 1/31/2023
$9,969.30
$119,631.60
$4.34
1530 E Jackson St
Thomasville, GA 31792
*Capital Expenditure Contribution
$226.58
$2,718.96
$453.15
$5,437.80
List Price............................................................................................. $1,967,965
CAP Rate - Current���������������������������������������������������������������������������������� 5.25%
Gross Leasable Area�������������������������������������������������������������������� ± 27,539 SF
Lot Size .................................................................. ± 2.32 Acres (101,059 SF)
Year Built...............................................................................................1977/1993
Expenses
Recurring Leasing Commission
(5% of Base Rent)
Miscellaneous Expenses
Total Expenses
Net Operating Income
$000
$453.15
$5,437.80
$8,609.85
$103,318.20
*Capital Expenditure Contribution not included in Net Operating
Tenant Summary
Tenant Trade Name
Big Lots!
Type of Ownership
Fee Simple
Lease Guarantor
Lease Type
Roof and Structure
Original Lease Term
Lease Commencement Date
Rent Commencement Date
Lease Expiration Date
Term Remaining on Lease
Increases
Options
Corporate
NN
Landlord Responsible
10 Years
10/21/1997
11/1/1997
1/31/2018
1.42 Years
10% Increase in Option Period
One (1), Five (5) Year Option
Matthews Retail Advisors | 5
P ROPERTY O VERVIEW
6 I Big Lots!
Physical Description
Property Name
Property Address
Assessor’s Parcel Number
Big Lots!
1530 E Jackson St
Thomasville, GA 31792
011-023007
Site Description
Number of Stories
Year Built
Gross Leasable Area (GLA)
Lot Size
Type of Ownership
Parking
One
1977/1993
± 27,539 SF
± 2.32 Acres (101,059 SF)
Fee Simple
± 126 Surface Spaces
Parking Ratio
4.63 : 1,000 SF
Landscaping
Professional
Topography
Generally Level
Construction
Foundation
Concrete Slab
Framing
Wood
Exterior
Brick
Parking Surface
Roof
Asphalt
Flat
Matthews Retail Advisors | 7
Site Plan
Approved for
development
8 | Big Lots!
Aerial
9 | Big Lots!
Regional Map
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Tenant Map
11 | Big Lots!
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12 | Big Lots!
Matthews Retail Advisors | 12
T ENANT O VERVIEW
13 | Big Lots!
Property Name
Property Type
Ownership
Credit Rating
Rating Agency
Revenue
Net Income
Stock Symbol
Board
No. of Locations
No. of Employees
Headquartered
Web Site
Year Founded
Big Lots! Inc.
Net Leased Big Box
Public
BBB
Standard & Poor’s
$5.19B
$142.87M
BIG
NYSE
±1,570
Big Lots! believes that a product’s shelf life depends solely on which
shelf it’s on. The company is North America’s #1 broadline closeout
retailer, with about 1,570 Big Lots! stores in 48 US states and seven
provinces in Canada. It sells a variety of brand-name products, including
food and other consumables, furniture, housewares, seasonal items
and toys, that have been overproduced, returned, discontinued, or
result from liquidations, typically at 20%-40% below discounters’ prices.
Its wholesale division sells its discounted merchandise to a variety of
retailers, manufacturers, distributors, and other wholesalers.
Big Lots! boasts seven regional distribution centers, one each in
Alabama, California, Oklahoma, Ohio, and Pennsylvania, and two in
Canada to receive, process, and distribute the majority of its merchandise
to its retail locations across North America.
±35,000
Columbus, OH
www.biglots.com
1967
Matthews Retail Advisors | 14
A REA O VERVIEW
Thomasville, Georgia
Thomasville is a city located in Thomas County, Georgia on the Georgia-Florida State line
and is the second largest city in southwest Georgia after Albany. Known for its wellpreserved historic and vibrant downtown, Thomasville is an enchanting place of the “red
hills” region of Georgia. Throughout the Victorian era, Thomasville was known as the
“Winter Resort of the South” seeing as wealthy northerners would flock to the city for the
mild climate and the pine-scented air. Today, the historical fabric is very much alive in the
architecture of the Victorian homes, downtown shops, and the brick-paved streets.
Residents remain proud of the community’s heritage and preserve the old-world feel while
continuing to progress and achieve big-city ideals. Plantations, museums and historic
homes are located throughout the city and offer glimpses into the grand Victorian era.
Thomasville is unique in that it has not only preserved many of its original downtown
buildings, but many of its original down town businesses, as well. The restored Victorian
storefronts put a lovely face on a fun variety of stores offering everything from recreational
gear to fashionwear. The city’s brick-paved streets lend an old world feel to the bustling
shopping district, which draws consumers from throughout south Georgia and north
Florida as well as visitors from around the country and the world.
Top Employers
#
Employer
1
Flowers Foods (Corporate Headquarters)
2
Flowers Baking Company
3
Archbold Memorial Hospital
4
Cleaver-Brooks
5
Hurst Boiler
6
Turbine Engine Component Technologies
(TECT)
7
Blue Bell Creameries
8
Oil-Dri Corporation
9
Cives Steel Company
10 American Signature Furniture
15 | Big Lots!Matthews Retail Advisors | 15
Albany, Georgia
Albany is the hub of southwest Georiga for shopping, cultural activities, education and is
also the primary trade center for the region. The city is the heart of Plantation Trace, the
southern portion of Georiga’s Southern Rivers Region. Defined by the free-flowing rapids
of the Flint River, named such by Creek Indians for its rich mineral flint or quartz, Albany is
called the “Good Life City.” The centerpiece of redevelopment in downtown Albany, the
river serves as a natural backdrop to the Flint RiverQuarium, a 175,000-gallon, 22-foot
deep Blue Hole aquarium that opened in 2004 highlighting the journey of the river and
the natural ecosystems of the Apalachicola, Chattahoochee and Flint River basins.
Albany boasts several quality-of-life amenities within walking distance of the aquarium,
including Riverfront Park, Turtle Grove Play Park, the Thronateeska Heritage Center,
Wetherbee Planetarium and the Albany Civil Rights Institute. Families and visitors with
a passion for wildlife can visit the only AZA-accredited zoo outside of Atlanta – Chehaw
Animal Park, featuring Creekside Education Center, Children’s Play Park and a nationally
sanctioned BMX bike track. Albany also has the region’s only permanent installation
of traditional African art as well as exhibitions of American Impressionism at the Albany
Museum of Art.
Home to Marine Corps Logistics Base Albany, which has established itself as a leader in
the adoption of private sector business strategies to accomplish its mission, Albany’s
origin was predominantly an agricultural hub. Agriculture still plays a large role
in the economy today with chief farm products of cotton, peanuts, corn, and
tobacco, in addition to paper-shell pecans and forest products. The city has also
developed a diversified industrial economy including companies such as Procter
& Gamble, M&M Mars, Coats & Clark, Tara Foods, and Pfizer. Albany is also home
to locally grown industries, such as Sasco and Equinox, which are making a name
for themselves worldwide.
Matthews Retail Advisors | 16
Demographics
Population
1-Mile
3-Mile
5-Mile
2021 Projection
23,612
30,541
39,611
2016 Estimate
22,968
29,631
38,457
2010 Census
22,633
29,072
37,741
2000 Census
21,544
27,644
35,560
Growth 2016 - 2021
2.81%
3.07%
3.00%
Growth 2010 - 2016
1.48%
1.92%
1.90%
Growth 2000 - 2010
5.06%
5.17%
6.13%
Households
1-Mile
3-Mile
5-Mile
2021 Projection
9,704
12,361
15,823
2016 Estimate
9,397
11,918
15,278
2010 Census
9,193
11,572
14,856
2000 Census
8,389
10,584
13,548
Growth 2016 - 2021
3.27%
3.72%
3.57%
Growth 2010 - 2016
2.22%
2.99%
2.84%
Growth 2000 - 2010
9.57%
9.33%
9.65%
Income
1-Mile
3-Mile
5-Mile
Income < $15,000
24.71%
23.27%
22.51%
Income $15,000 - $24,999
13.32%
13.47%
13.42%
Income $25,000 - $34,999
13.16%
13.16%
12.95%
Income $35,000 - $49,999
16.72%
15.75%
15.29%
Income $50,000 - $74,999
16.91%
16.60%
16.76%
Income $75,000 - $99,999
6.76%
7.39%
8.31%
Income $100,000 - $124,999
3.38%
4.16%
4.44%
Income $125,000 - $149,999
1.73%
2.13%
2.21%
Income $150,000 - $199,999
1.57%
1.91%
1.90%
Income $200,000 - $249,999
0.63%
0.79%
0.81%
Income $250,000 - $499,999
0.76%
0.97%
1.02%
Income $500,000+
0.36%
0.41%
0.40%
2016 Est. Average Household Income
$46,435
$49,675
$50,809
2016 Est. Median Household Income
$34,096
$35,096
$36,106
17 | Big Lots!
Matthews Retail Advisors | 18
™
Andrew Gross
Associate
Chad Kurz
SVP & National Director
Kyle Matthews
Broker of Record
License No. 01987860
O 310.955.1773
M 435.659.1404
[email protected]
License No. 01911198
O 310.919.5850
M 562.480.2937
[email protected]
License No.363764