BIG O TIRES PORTFOLIO

Transcription

1 BIG O TIRES PORTFOLIO TWO MISSOURI LOCATIONS

2 TWO UNIT PORTFOLIO Marcus & Millichap is pleased to present the Big O Tires portfolio in Columbia, Missouri. The offering includes two retail locations, the Business Loop location has more than six years remaining on a triple-net (NNN) lease with zero landlord responsibilities. The Peach Tree location has more than six years remaining on a double-net (NN) lease. There is also office and warehouse spaces (Business Loop) included which have more than seven years remaining on their double-net (NN) lease with landlord responsibilities limited to roof and structure. The leases are guaranteed by MFA Petroleum Company, who operates all Missouri and Arkansas locations within the Big O brand. These Big O Tires locations boast strong unit level economics, the top two of all the MFA operated units. Business Loop does more than $3.4 million in sales, Peach Tree does more than $2.4 million in sales. This offering also includes the franchisee s headquarters. The surrounding area also features growing demographics with a 10 percent rise in population from 2010 to There are more than 116,000 residents within five miles. BUSINESS LOOP 2 Additional Retailers in the immediate vicinity include: Bob Evans, Steak n Shake, McDonald s, KFC, Taco Bell, Cracker Barrel, Pizza Hut, White Castle, Hooters, FedEx, and many more. PEACH TREE This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z

3 PORTFOLIO OVERVIEW PORTFOLIO PRICE CAP RATE PORTFOLIO NOI Investment $3,528, % business loop offering $234,000 peach tree offering WAREHOUSE/OFFICE SPACE PRICE $1,536,000 CAP RATE 6.25% NOI $96,000 PRICE $703,448 CAP RATE 7.25% NOI $51,000 PRICE $1,288,889 CAP RATE 6.75% NOI $87,000 PRICE PER SQUARE FOOT $ PRICE PER SQUARE FOOT $57.19 PRICE PER SQUARE FOOT $ RENT PER SQUARE FOOT $7.28 RENT PER SQUARE FOOT $4.15 RENT PER SQUARE FOOT $13.38 YEAR BUILT 1982 APPROXIMATE LOT SIZE 1.79 Acres GROSS LEASEABLE AREA 13,178 YEAR BUILT 1982/2015 APPROXIMATE LOT SIZE OFFICE/WAREHOUSE GROSS LEASEABLE AREA 1.79 Acres 7,500 YEAR BUILT 1992 APPROXIMATE LOT SIZE 0.96 Acres GROSS LEASEABLE AREA 6,500 TYPE OF OWNERSHIP LEASE GUARANTOR LEASE TYPE ROOF AND STRUCTURE Fee Simple MFA Petroleum Company Triple-Net (NNN) Responsible WAREHOUSE GROSS LEASABLE AREA TYPE OF OWNERSHIP LEASE GUARANTOR LEASE TYPE 4,800 Fee Simple MFA Petroleum Company Double-Net (NN) TYPE OF OWNERSHIP LEASE GUARANTOR LEASE TYPE ROOF AND STRUCTURE Fee Simple MFA Petroleum Company Double-Net (NN) Landlord Responsible This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z

4 LEASE SUMMARY BUSINESS LOOP business loop offering PEACH TREE peach tree offering WAREHOUSE/OFFICE SPACE LEASE COMMENCEMENT DATE 11/1/2015 LEASE COMMENCEMENT DATE 12/1/2017 LEASE COMMENCEMENT DATE 12/1/2017 LEASE EXPIRATION DATE 5/31/2025 LEASE TERM TERM REMAINING 10 Years 6+ Years LEASE EXPIRATION DATE 11/31/2025 LEASE TERM TERM REMAINING 8 Years 7+ Years LEASE EXPIRATION DATE 5/31/2025 LEASE TERM TERM REMAINING 7.5 Years 6+ Years INCREASES OPTIONS TO RENEW FIRST RIGHT OF REFUSAL 4 5 Percent in Options 1, 5-Year Yes INCREASES OPTIONS TO RENEW FIRST RIGHT OF REFUSAL 5 Percent in Options 2, 5-Year Yes INCREASES OPTIONS TO RENEW FIRST RIGHT OF REFUSAL 5 Percent in Options 2, 5-Year Yes This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z

5 TENANT OVERVIEW BUSINESS LOOP Formed more than 50 years ago by a collective of independent tire dealers committed to providing value to its customers, Big O Tires is now one of the largest retail tire and auto service providers in the United States. Missouri and Arkansas stores, independently owned and operated by MFA Oil Company, offer friendly, expert services: brakes, shocks, struts, tires, wheels, alignments and oil changes. We re the team you can trust for your auto needs. Every tire they sell is backed by comprehensive warranty and service policies and Big O brand premium tires come with a three-year free replacement warranty for road hazard damage and material/workmanship defects. Any Big O brand premium tire that can t be fixed at one of their stores will be replaced at no cost to the owner. In addition, rotations and flat tire repairs are provided free for the life of the tire. TENANT PROFILE TENANT TRADE NAME Big O Tires OWNERSHIP TENANT LEASE GUARANTOR NUMBER OF LOCATIONS Private Big O Tires MFA Petroleum Company (Wholly Owned Subsidiary of MFA Oil) 19 Locations 5 PEACH TREE HEADQUARTERED WEB SITE Columbia, MO NET WORTH $62 Million (2017) SALES VOLUME $11 Million (2017) This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z

6 BUSINESS LOOP OFFERING

7 INVESTMENT HIGHLIGHTS Big O Tires Store and Office/Warehouse in Columbia, MO Equidistant from St. Louis and Kansas City Retail Location Has More Than Two Years Remaining on a Triple-Net (NNN) with Zero Landlord Responsibilities Office and Warehouse Buildings Have More Than Seven Years Remaining on a Double-Net (NN) with Minimal Landlord Responsibilities Guaranteed by MFA Petroleum Company Operates All Missouri and Arkansas Locations Strong Unit Level Economics More Than $3.4 Million in Store Sales Rent to Sales Ratio of 2.8 Percent Office Portion of Offering Acting as Headquarters for MFA Petroleum Company Ideally Located Along Business Loop 70 E, 12,000 Vehicles Per Day (VPD) Nearby Interstate-70: 54,000 Vehicles Per Day (VPD) Growing Demographics 10 Percent Growth from 2010 to 2018 More Than 116,00 Residents Within Five Miles

8 PEACHTREE OFFERING

9 INVESTMENT HIGHLIGHTS Big O Tires in Columbia, Missouri Less Than Three Miles from the University of Missouri 32,000 Students Enrolled More Than Seven Years Remaining on a Double-Net (NN) Minimal Landlord Responsibilities Guaranteed by MFA Petroleum Company Operates All Missouri and Arkansas Locations Demonstrates Commitment to Location Extended the Base Term of by Five Years in December 2017 Strong Unit Level Economics More Than $2.4 Million in Store Sales Rent to Sales Ratio of 3.6 Percent Nearby South Providence Road More Than 18,000 Vehicles Per Day (VPD) Booming Demographics Population Within Five Miles Rose 10 Percent From 2010 to 2018 Five Mile Population: 139,918 Average Household Income Within One Mile is More Than $68,000

10 1-Mile 3-Mile 5-Mile 1-Mile 3-Mile 5-Mile 1-Mile 3-Mile 5-Mile 2000 Population 7,343 38,430 80, Households 3,042 13,442 31, Population 8,509 45,400 92, Households 3,730 16,337 36, Population 9,684 50, , Households 4,230 18,622 41, Average HH Income 2018 Median HH Income 2018 Per Capita Income $64,762 $74,553 $72,407 $44,409 $48,401 $48,887 $28,288 $27,258 $28,778

11 ABOUT COLUMBIA The Missouri city of Columbia, located in Boone County, is home to the University of Missouri as well as Columbia College and Stephens College. The city lies in the heart of the state, almost equidistant from Kansas City (127 miles to the west) and St. Louis (124 miles to the east), both of which are connected to the city by Interstate Highway 70. Columbia is also 30 miles north of Jefferson City. As a Midwestern college town, the city has a reputation for progressive politics, persuasive journalism, and public art. The tripartite establishment of Stephens College (1833), the University of Missouri (1839), and Columbia College (1851), which surround the city s central business district to the east, south, and north, has made Columbia a center of learning. At the center of Downtown is 8th Street, also known as the Avenue of the Columns, which connects Francis Quadrangle and Jesse Hall to the Boone County Courthouse and the City Hall. Originally an agricultural town, the cultivation of the mind is Columbia s chief economic concern today. Never a major center of manufacturing, the city also depends on healthcare, insurance, and technology businesses. Companies such as Shelter Insurance, Carfax, and Slackers CDs and Games, were founded in the city. Cultural institutions include the State Historical Society of Missouri, the Museum of Art and Archaeology, and the annual True/ False Film Festival. The Missouri Tigers, the state s only major college athletic program, play football at Faurot Field and basketball at Mizzou Arena as members of the rigorous Southeastern Conference. Columbia s economy is historically dominated by education, healthcare, and the insurance industry. Jobs in government are also common, either in Columbia or a half-hour south in Jefferson City. Commutes into the city are also common. Insurance corporations headquartered in Columbia include Shelter Insurance, and the Columbia Insurance Group. Other organizations include Veterans United Home Loans, MFA Incorporated, the Missouri State High School Activities Association, and MFA Oil. 11 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z

12 MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS: The information contained in this ing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This ing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this ing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this ing Brochure you agree to release Marcus & Millichap Real Estate Investment Services 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.

13 BIG O TIRES PORTFOLIO TWO MISSOURI LOCATIONS BROKER OF RECORD: BRADLEY BARHAM ST LOUIS, MO LICENSE: