EXCLUSIVE INVESTMENT SUMMARY 1155 CARLISLE STREET HANOVER, PA 17331

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1 EXCLUSIVE INVESTMENT SUMMARY 1155 CARLISLE STREET HANOVER, PA 17331

2 M CLICK TO VIEW PROPERTY VIDEO GOLDEN MILE PLAZA NORTH HANOVER MALL EXCLUSIVE MARKETING ADVISORS MARC MANDEL STEVE SCHRENK MIKE PAGNIUCCI Managing Director Director Director Investment Advisory Investment Advisory Financing Advisory 2018 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on

3 INVESTMENT SUMMARY FAMILY DOLLAR 3

4 INVESTMENT SUMMARY Holliday Fenoglio Fowler, L.P. ( HFF ) Net Lease Advisory is pleased to exclusively offer a net lease opportunity to acquire a brand new construction single tenant Autozone ground lease located in Hanover, PA. The asset offers an opportunity to acquire a single tenant asset located directly in front of the North Hanover Mall. AutoZone is a automotive parts retailer with over 6,000 locations throughout the United States, Mexico, Brazil & Canada offering a variety of automotive merchandise ranging from parts, maintenance items and accessories. The location benefits from high consumer traffic with a three-mile population of over 35,000 people. The immediate area is also surrounded by neighborhoods and shopping attracting many clientele to the immediate area. $1,650,000 Asking Price 5.15% Cap Rate $85,000 NOI Jul Lease Expiration HANOVER, PA 4

5 INVESTMENT HIGHLIGHTS AutoZone is a strong investment grade tenant with a Baa1 Moody s credit rating Prime Location with high visibility located in front of the Hanover Mall with over 15,500 VPD The property is located on a main thoroughfare (Rt 94) surrounded by strong national retailers Strong demographics with over 35,000 people within a 3-mile radius and an Average Household income of $68,019 Brand new construction built in 2017 with 14+ years of remaining lease term HANOVER, PA 5

6 MARKET AERIAL NORTH HANOVER MALL Carlisle St- 15,000 + VPD HANOVER, PA 6

7 SITE PLAN EICHELBERGER STREET LOADING DOCK 6,500 SF BUIDLING TRASH EISENHOWER DRIVE NORTH HANOVER MALL CARLISLE STREET (ROUTE 94) RADIO ROAD HANOVER, PA 7

8 TENANT OVERVIEW FAMILY DOLLAR 8

9 TENANT OVERVIEW AutoZone (BBB rated by S&P) is the nation s leading retailer and distributor of automotive replacement parts and accessories. AutoZone has more than 6,000 stores in the US, Puerto Rico, Mexico, and Brazil. Each store carries an extensive line for cars, sport utility vehicles, vans, and light trucks, including new and manufactured hard parts, maintenance items and accessories. AutoZone opened its first store in Forrest City, Arkansas in 1979 and has earned a spot on the Fortune 500. AutoZone is the leading auto parts retailer in the United States with more than $8.1 billion in annual sales and employs more than 65,000 employees. AutoZone continues to fuel growth by exploring new businesses and entering new markets. By 1996, AutoZone had launched a commercial program offering credit and delivery to professional technicians. Later, with the purchase of ALLDATA, AutoZone acquired the nation s leading provider of electronic automotive diagnostic and repair software. In 1998, AutoZone expanded its presence outside the U.S. borders to Mexico, opening our first AutoZone de Mexico store in December As of 2017 AutoZone has over 530 store locations outside the US and is continuing to expand its presence n Mexico and Brazil. BBB Standard & Poor s 6,000+ Locations 65,000+ Employees CORPORATE OVERVIEW Headquarters Memphis, TN Stock Ticker AZO Stock Exchange NYSE Market Cap $16.8 B Website HANOVER, PA 9

10 FINANCIAL ANALYSIS FAMILY DOLLAR 10

11 LEASE ABSTRACT LEASE DETAIL Tenant AutoZone Corporate Size 6,500 SF Lot Area 0.88 Acres +/- Year Built 2017 Current Rent $85,000 Lease Type NNN Ground Lease Rent Commencement 7/29/2017 Lease Expiration 7/31/2032 Remaining Lease Term 14+ Years Options Three (3) Five (5) Year Options RENT SCHEDULE Description Dates Annual Rent Rent Increases Base Term Years /29/2017-7/31/2027 $85,000 Base Term Years /1/2027-7/31/2032 $93,500 10% Option 1 Years /1/2032-7/31/2037 $102,850 10% Option 2 Years /1/2037-7/31/2042 $113,135 10% Option 3 Years /1/2042-7/31/2047 $124,449 10% TENANT RESPONSIBILITY DETAIL Utilities Insurance Maintenance Taxes Tenant shall pay all utility costs. Tenant shall, at Tenant's sole cost and expense, shall maintain commercial general liability insurance, such insurance to afford single limit protection of not less than $1,000,000 During the Term of this Lease, Tenant shall maintain the Demised Premises in its entirety, inclusive of the roof and all exterior portions and all improvements thereon at Tenant's sole expense. Tenant shall also maintain the parking lot within the demised premises, lighting, cleaning, repairing, replacing, snow removal and administering the demised premises. Tenant shall pay all real estate and personal property taxes assessed solely against the demised premises during the term or any extension period. HANOVER, PA 11

12 81 Easton ingdon Shippensburg ambersburg tinsburg Leesburg Frederick Carlisle Harrisburg Rockville Ellicott City Hershey York MARKET 695 Baltimore Lancaster Gettysburg Greencastle Hanover PENNSYLVANIA MARYLAND Hagerstown OVERVIEW Bel Air Towson Reading Bethlehem Allentown 476 King of Prussia Philadelphia Cherry Hill Wilmington Newark Princeton Trenton Egg Harbor Township Ocean City Dover 66 Tysons Bethesda Washington Alexandria Easton 13 Lewes Wildwood Cape May FAMILY DOLLAR 12

13 LOCATION OVERVIEW HANOVER MALL Hanover Overview Hanover, PA is located York County approximately 19 miles southwest of York and 54 miles northwest of Baltimore, Maryland and is 5 miles north of the Mason-Dixon line. The town is situated in a productive agricultural region. Hanover is considered by many to be the snack food capital of the United States and has been featured multiple times on the Food Network. It has been home to Utz Quality Foods since 1921 which still produces its products there along with a Utz outlet store and Snyder s of Hanover since The Greater Hanover region is along Eisenhower Drive, known as The Golden Mile. This four-lane road stretches east to the intersection at Eisenhower Drive and Broadway (Route 194) and west to the intersection at Eisenhower Drive and Carlisle Street (Route 94). Downtown Hanover, Pa consists of many shops, entertainment, and food. The other major retail area in Hanover is the newly completed Gateway Hanover complex, which runs parallel to The Golden Mile. This new shopping center was completed in 2011, and is anchored by Target, Hobby Lobby, Ross, PetSmart, U.S. Renal Care. BALTIMORE, MD Baltimore Overview With a metropolitan population of 3.0 million people, Baltimore is the largest city in the state of Maryland and the state s primary economic driver. Since its founding in 1729, the city has had a long history as a thriving port with a robust industrial base. While Baltimore has maintained its maritime and industrial roots, today the economy is anchored by eds & meds : venerable educational institutions and world-renowned hospitals. Most notably, Johns Hopkins University and the University of Maryland-Baltimore both offer education and medical facilities that pump billions of dollars annually into the city s economy and cumulatively employ tens of thousands of Baltimore area residents. In addition, the city has a deep seeded financial services industry anchored by mutual fund giants T. Rowe Price and Legg Mason, both of which are headquartered downtown. Speaking to the diversified base of the area s economy, Under Armour, a $12 billion performance apparel company, is headquartered at Locust Point on Baltimore s Harbor. HANOVER, PA 13

14 SURROUNDING AREA RETAIL GATEWAY HANOVER GOLDEN MILE DELCO PLAZA NORTH HANOVER MALL Carlisle St- 15,000 + VPD HANOVER, PA 14

15 DEMOGRAPHICS POPULATION 1 mile 3 mile 5 mile 2010 Census 3,795 35,490 59, Estimate 3,843 35,771 61,123 East Berlin Projection 3,868 36,048 62, MILE POPULATION GROWTH 1 mile 3 mile 5 mile Historical Growth: 2010 to % 0.79% 2.33% Projected Growth: 2018 to % 0.77% 1.44% 30 3 MILE HOUSEHOLD INCOME 1 mile 3 mile 5 mile 2018 Average Household Income $63,323 $68,019 $73, Median Household Income $49,251 $54,967 $60, MILE HOUSEHOLDS mile 3 mile 5 mile 2010 Census 1,827 14,793 23, Estimate 1,845 14,988 24, Projection 1,854 15,133 24,774 Hanover 216 HOUSEHOLD GROWTH 1 mile 3 mile 5 mile Historical Growth: 2010 to % 1.32% 2.40% Projected Growth: 2018 to % 0.97% 1.47% PENNSYLVANIA MARYLAND Lineboro HANOVER, PA 15

16 EXCLUSIVE MARKETING ADVISORS MARC MANDEL STEVE SCHRENK MIKE PAGNIUCCI Managing Director Director Director Investment Advisory Investment Advisory Financing Advisory