Family Dollar Hohenwald, TN
Transcription
Family Dollar Hohenwald, TN
offering memorandum. Family Dollar Hohenwald, TN $1,631,000 6.25% CAP Rate New 15-Year Absolute ••Brand NNN Lease •• •Relocation • Store ••2015 Construction ••Close Proximity to Nashville •• Corporate Guarantee Scheduled Rental Increases FILE PHOTO This property is listed in conjunction with Tennessee-licensed real estate broker MalmoMemphis, LLC. 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 Tenant Information site plan aerial about the area Demographics 1 2 3 4 6 8 Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information. Vincent Aicale Vice President 415.373.4057 [email protected] CA RE License #01728696 www.maffiateam.com Property Information Location The property is located at the Southwest Corner of West Main Street and South Walnut Street in Hohenwald, Tennessee. Net Annual Income Years Annual Rent Return 1-10 $101,907 6.25% 11-15 $112,098 6.88% Lot Size 16-20 (Option 1) $123,307 7.56% Approximately 0.90 acres, or 39,204 square feet. 21-25 (Option 2) $135,638 8.32% 26-30 (Option 3) $149,202 9.15% 31-35 (Option 4) $164,122 10.07% 36-40 (Option 5) $180,534 11.07% 41-45 (Option 6) $198,588 12.18% Improvements An approximately 8,320 square foot retail building for Family Dollar is under construction with an estimated delivery date in September of 2015. There is ample parking on the site. Lease Leased to Family Dollar Stores, Inc. for 15 years with an expiration of September 30th, 2030 at an annual net rent of $101,907. There are six five-year options. The rent increases by 10% throughout after year 10 of the initial term and at the beginning of every 5, year option period. The lease is net, with the tenant responsible for taxes, insurance, and all maintenance, including roof and structure. Price: $1,631,000 (6.25% Return) Financing The property will be delivered free and clear of permanent financing. 1 Tenant Information Family Dollar Stores, Inc. (NYSE: “FDO”), Family Dollar Stores, Inc. operates a chain of more than 7,400 general merchandise retail discount stores in 45 states, providing consumers with a selection of merchandise in neighborhood stores. The Company offers a focused assortment of merchandise in a number of core categories, such as health and beauty aids, packaged food and refrigerated products, home cleaning supplies, house wares, stationery, seasonal goods, apparel, and home fashions. During the fiscal year ended August 30, 2014, the Company operated over 8,000 stores, with sales of $10.49 Billion. The company is rated “BBB-“ by Standard & Poor’s. On January 22, 2015 Family Dollar shareholders voted to approve the company’s acquisition by Dollar Tree for $8.7 Billion. With this acquisition, the company will have over 13,000 stores in 48 states and 5 Canadian Providences and sales of over $18 Billion. For additional information, see www.familydollar.com. 2 Site Plan / W MAIN ST 8,320 SF S WALN UT ST SIGN 3 Aerial | Close Up View Kanson Electronics Lewis Health Center Lewis County Library Morrows Supermarkets Embassy Inn /W Main St S W al nu tS t DOWNTOWN Lewis County Elementary School Lewis County Middle School 4 Aerial | Distant View (Previous Location) NP ark Embassy Inn St DOWNTOWN Lewis County Middle School /W in Ma St Lewis County Elementary School SW aln ut St 5 About the Area General Overview Hohenwald is a city in and the county seat of Lewis County, Tennessee. The population was 3,757 at the 2010 US Census. Hohenwald is the home of The Elephant Sanctuary, the largest natural-habitat sanctuary for elephants in the United States. Hohenwald is located 75 miles southwest of Nashville. Nashville is the capital of Tennessee and has a population of roughly 660,000 residents. As the “home of country music”, Nashville has become a major music recording and production center. All of the Big Four record labels, as well as numerous independent labels, have offices in Nashville, mostly in the Music Row area. Nashville has been home to the headquarters of guitar company Gibson since 1984. Since the 1960s, Nashville has been the second-largest music production center (after New York) in the U.S. As of 2006, Nashville’s music industry is estimated to have a total economic impact of $6.4 billion per year and to contribute 19,000 jobs to the Nashville area. Although Nashville is renowned as a music recording center and tourist destination, its largest industry is health care. Nashville is home to more than 300 health care companies, including Hospital Corporation of America (HCA), the largest private operator of hospitals in the world. As of 2012, it is estimated that the health care industry contributes $30 billion per year and 200,000 jobs to the Nashville-area economy. The automotive industry is also becoming increasingly important for the entire Middle Tennessee region. Nissan North America moved its corporate headquarters to Franklin, Tennessee in 2006. Nissan also has its largest North American manufacturing plant in Smyrna, Tennessee. Largely as a result of the increased development of Nissan and other Japanese economic interests in the region, Japan moved its former New Orleans consulategeneral to Nashville’s Palmer Plaza. Bridgestone has a strong presence with their North American headquarters located in Nashville, with manufacturing plants and a distribution center in nearby counties. About the Area Site Information The property is located on the southwest corner of West Main Street and South Walnut Street. Main (US Highway 412) is the major thoroughfare running through Hohenwald. The site is 5 blocks away from downtown Hohenwald. The estimated traffic count on Main Street, 4 blocks away from the property is 9,000 AADT. Family Dollar relocated to this site from an older, inline store a 1.5 miles east on Main Street indicating Family Dollar’s strong desire to operate in this submarket. An estimated 5,788 people reside within a threemile radius of the subject property with an average household income $39,801. Demographics Main St & S Walnut St, Hohenwald, TN 38462 1 Mile 3 Miles 5 Miles 2010 Total Population 2,994 5,919 8,636 2015 Total Population 2,919 5,788 8,540 2020 Total Population 2,879 5,720 8,500 -0.28% -0.24% -0.09% 2015 $37,165 $39,801 $43,204 2020 $41,479 $44,360 $48,406 2015 $62,213 $63,875 $70,616 2020 $73,492 $76,212 $84,067 2015 $14,876 $15,838 $17,206 2020 $16,571 $17,631 $19,281 Population Summary 2015-2020 Annual Rate Average Household Income Median Home Value Per Capita Income 8 FILE PHOTO 901 Mariners Island Boulevard, Suite 120 San Mateo, CA 94404 Vincent Aicale Vice President 415.373.4057 [email protected] CA RE License #01728696 www.maffiateam.com