ACME (Albertsons Companies, Inc Guaranty)

Transcription

1 ACME (Albertsons Companies, Inc Guaranty) OFFERING MEMORANDUM ACTUAL PROPERTY Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z

2 Financial Overview OFFERING SUMMARY PRICE $10,003,908 CAP RATE 5.45% NOI $545,213 PRICE PER SQUARE FOOT $ RENT PER SQUARE FOOT $18.06 YEAR BUILT 2006/2016 APPROXIMATE LOT SIZE 1.88 Acres GROSS LEASEABLE AREA 30,197 PARKING SPACES 91 TYPE OF OWNERSHIP LEASE GUARANTOR LEASE TYPE ROOF AND STRUCTURE LEASE SUMMARY Fee Simple Albertsons Companies, Incorporated (Inc) Absolute-Net Tenant Responsible LEASE COMMENCEMENT DATE 11/1/2017 LEASE EXPIRATION DATE 10/31/2037 LEASE TERM 20 Years TERM REMAINING 20 Years INCREASES 1.5% Years 2-5, 7.5% Every 5 Starting Year 11 OPTIONS TO RENEW 8, 5-Year FIRST RIGHT OF REFUSAL Yes - Commencing Year 5 PRIMARY TERM Lease Year Increase Monthly Rent Annual Rent 11/1/ /31/ $45,434 $545,213 11/1/ /31/ % $46,116 $553,391 11/1/ /31/ % $46,808 $561,692 11/1/ /31/ % $47,510 $570,117 11/1/ /31/ % $48,222 $578,669 11/1/ /31/ $48,222 $578,669 11/1/ /31/ $48,222 $578,669 11/1/ /31/ $48,222 $578,669 11/1/ /31/ $48,222 $578,669 11/1/ /31/ $48,222 $578,669 11/1/ /31/ % $51,839 $622,069 11/1/ /31/ $51,839 $622,069 11/1/ /31/ $51,839 $622,069 11/1/ /31/ $51,839 $622,069 11/1/ /31/ $51,839 $622,069 11/1/ /31/ % $55,727 $668,724 11/1/ /31/ $55,727 $668,724 11/1/ /31/ $55,727 $668,724 11/1/ /31/ $55,727 $668,724 11/1/ /31/ $55,727 $668,724 OPTIONS Lease Years Increase Monthly Rent Annual Rent 11/1/ /31/ % $59,907 $718,879 11/1/ /31/ % $64,400 $772,795 11/1/ /31/ % $69,230 $830,754 11/1/ /31/ % $74,422 $893,061 11/1/ /31/2062 TBD FMV/12 FMV 11/1/ /31/2067 TBD FMV/12 FMV 11/1/ /31/2072 TBD FMV/12 FMV 11/1/ /31/2077 TBD FMV/12 FMV Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z

3 Investment Overview Marcus & Millichap is pleased to present ACME Market in Wildwood, New Jersey, the number one vacation destination in the United States according to Trip Advisor (2017). ACME Market is operating under a 20-year absolute-net lease with zero landlord responsibilities. There are 1.50 percent annual rent increases in years two through five, and 7.50 percent rent increases every five years beginning in year 11. The lease is backed by a corporate guaranty from Albertsons Companies, Incorporated (Inc), who registered more than $60 billion in revenue across 2,324 supermarkets nationwide. The subject property sits on a large full block parcel at the signalized, hard corner intersection of Park Boulevard and West Hildreth Avenue. There is more than 200 feet of frontage along Park Boulevard. The tenant has demonstrated commitment. Safeway has been operating at this location for more than 10 years, and performed significant renovations in The tenant reports strong unit level performance with high sales per square foot and a low rent-to-sales ratio; contact the listing broker for more information. Additional tenants are committing capital to the Wildwood market. Wharf Restaurant recently completed a $500,000 addition to their existing dining facility. The expansion included a new waterfront bar, expanded outdoor seating, 32 new boat slips, parking lot improvements, and the installation of bocce ball and shuffleboard courts. Dollar General is also building a brand new 7,400-square foot retail store, valued at $900,000. Wildwood also boasts significant entertainment venues. The Wildwood Convention Center is a 260,000-square foot facility. The convention center features a 7,000- seat Oceanfront Arena. Morey s Piers, located on the Wildwood Boardwalk, operates three piers featuring more than 100 rides: Mariner s Pier, Surfside Pier, and Adventure Pier. Additional tenants in the immediate vicinity include: McDonald s, Wawa, Walgreens, TD Bank, Domino s, TD Bank, CVS, and many more. ACTUAL PROPERTY ACME Market in Wildwood, New Jersey The Number One Vacation Destination in the United States According to Trip Advisor (2017) Brand New 20-Year Absolute-Net Lease Zero Landlord Responsibilities ACTUAL PROPERTY Strong Rent Increases 1.50 Percent Annual Increases in Years Two Through Five 7.50 Percent Rent Increases Every Five Years Beginning in Year 11 Corporate Guaranty Albertsons Companies, Incorporated (Inc) Number 49 on June 2017 Fortune 500 List Number Three on June 2017 Forbes America s Largest Private Companies Tenant Demonstrates Commitment More Than 10-Year Operating History Significant Renovations Performed in 2016 Healthy Unit Level Financials Low Rent-to-Sales Tenant Reports High Sales Per Square Foot Contact Listing Broker for Details Large Full Block Parcel Signalized, Hard Corner Intersection Park Boulevard and West Hildreth Avenue Tenants Committing Capital to Wildwood Market Wharf Restaurant Completed $500,000 Expansion Dollar General Committing Nearly $1 Million to Build New Store Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z

4 Tenant Overview - ACME ACME Markets was founded in 1891, when two friends, Samuel Robinson and Robert Crawford, opened a small neighborhood grocery store at Second and Fernon Streets in South Philadelphia that emphasized quality products, low prices and friendly service. Over 125 years later, ACME remains dedicated to providing a high-quality grocery experience. Today, ACME operates 179 stores in Pennsylvania, New Jersey, Delaware, New York, Connecticut, and Maryland, employing more than 20,000 associates. ACME continues to offer consumers fresh and convenient supermarket solutions, which are all tailored to the specific needs of the neighborhoods ACME serves. Albertsons is one of the largest food and drug retailers in the United States with a strong local presence, but on a national scale. As of February 25, 2017, the company operated 2,324 stores across 35 states and the District of Columbia under 20 wellknown banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Carrs and Haggen. Albertsons operates in 122 Metropolitan Statistical Areas (MSAs) in the United States. The company is ranked number one or number two by market share in 66 percent of those Metropolitan Statistical Areas (MSAs). Albertsons focuses on providing their customers with a service-oriented shopping experience, including convenient and value-added services through 1,786 pharmacies, 1,227 in-store branded coffee shops, and 385 adjacent fuel centers. The company employs nearly 273,000 talented and dedicated employees serving on average 34 million customers each week. TENANT PROFILE TENANT TRADE NAME Acme OWNERSHIP Private TENANT New Albertson s, Incorporate (INC) LEASE GUARANTOR Albertsons Companies, Incorporated (Inc) NUMBER OF LOCATIONS 2,324 HEADQUARTERED Boise, Idaho WEB SITE SALES VOLUME $59.7 Billion (2016) RANK #49 on Fortune 500 (2017), #3 Forbes America s Largest Private Companies ACTUAL PROPERTY Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z

5 Aerial Overview ACME Market in Wildwood, New Jersey The Number One Vacation Destination in the United States According to Trip Advisor (2017) Brand New 20-Year Absolute-Net Lease Zero Landlord Responsibilities Tenant Demonstrates Commitment More Than 10-Year Operating History Significant Renovations Performed in 2016 Large Full Block Parcel Signalized, Hard Corner Intersection Park Boulevard and West Hildreth Avenue Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z

6 Albertsons Companies, Inc COMPANY HIGHLIGHTS Founded in 1939 and based in Boise, Idaho, Albertsons Companies, Inc ( Albertsons, or the Company ) is the 2nd largest traditional grocer in the United States serving over 34 million customers per week and generating $60 billion in sales annually. In January 2015, Albertsons merged with Safeway, creating a best-in-class organization dedicated to bringing a better shopping experience to customers across the country. The Company s powerful combination of strong local presence and national scale, vast range of brands and products, and service-oriented staff enable them to meet evolving shopping preferences. As of June 2017, the Company operated 2,329 stores across 35 states under 20 well-known banners with long operating histories. Albertsons has grown strategically through a series of strategic acquisitions in recent years into a $2.8 billion adjusted EBITDA company as of fiscal year 2016 ended February 25, 2017, and as of Q the Company had already generated $771.7 million in adjusted EBITDA. 2 nd largest traditional grocer in the US 2,300+ retail stores Operates in 35 states including Washington, DC $59.7 billion annual sales 34 million customers per week #1 / #2 #1 / #2 By market share in 66% of the 122 MSAs in which it operates $ $2.8 billion adj. EBITDA in FY new items launched every year Ex perienced management with 32 years in retail on average Currently ex ecuting $800 million synergy realization plan 4 th largest e-commerce platform in the US Home delivery in 8 of top 10 US markets by end of FY 2017 One of the largest retail employers 273,000 jobs 1,700+ in-store pharmacies 380+ fuel stations 28 distribution centers 18 food and beverage plants Nation s largest brand of USDA-certified organic products COMPANY BANNERS ACTUAL PROPERTY Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y

7 Albertsons Companies, Inc COMPETITIVE LANDSCAPE Albertsons Companies, Inc is one of the largest food retailers and the second largest traditional grocers in the United States. Note: Store counts based on publically available information ACTUAL Walmart, PROPERTY Costco, and Traget grocerysales based on a percentage of total sales as of the latest fiscal year. Kroger and Albertsons sales exclude fuel sales of ~$14 billion and ~$3 billion, respectively

8 Aerial Overview Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z

9 Area Overview & Demographics 1-Mile 3-Mile 5-Mile Population 2000 Population 15,654 24,882 60, Population 14,046 24,252 59, Population 13,655 23,269 59, Population 13,439 22,838 59,386 1-Mile 3-Mile 5-Mile Households 2000 Households 7,065 10,582 25, Households 6,495 10,327 25, Households 6,329 9,934 25, Households 6,230 9,752 25,011 1-Mile 3-Mile 5-Mile Household (HH) Incomes 2017 Average HH Income $63,577 $67,228 $69, Median HH Income $44,094 $45,833 $49, Per Capita Income $29,468 $28,701 $29,462 Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z

10 Market Overview - Wildwood, New Jersey Wildwood is a resort city that is very popular with vacationers and tourists mostly from New Jersey, Delaware, Maryland, Pennsylvania, New York, and even nearby parts of Canada (particularly Ontario and Quebec) during the summer months. The year-round population of 5,300 grows to more than 250,000 people during the summer. The famous boardwalk, built at the turn of the century, stretches along the beach for more than a mile and a half. A convention center, four incredible amusement piers, two movie theaters, hundreds of souvenir and novelty shops and a variety of restaurants, ethnic food stands and salt water taffy shops, line this wooden walkway. At night, the lights brighten the skyline and the boardwalk transforms. The combination of the flashing neon lights with lively music, the spinning of the game wheels, and the enticing aromas coming from the open air eateries create a carnival-like atmosphere and an aura of excitement that is not soon forgotten. Beach Concerts, Hobie Cat Races, Kite Festivals, The National Marble Tournaments, Life Guard Races, Wrestling Matches and Beauty Pageants are but a few of the events scheduled throughout the summer season. Affordable accommodations of every kind are available throughout this island resort. While traveling throughout the area, keep an eye out for the 1950s DooWop architectural style that made the Wildwoods famous. Additionally, portions of Wildwood are part of an Urban Enterprise Zone, where shoppers can take advantage of a reduced 3.5 percent sales tax (normal state sales tax is 7 percent). The back-bay area hosts hundreds of private, charter, and party boats for daily bay and deep-sea fishing excursions. Sightseeing and whale watching trips as well as sailing, jet skiing and motor boating are available from most Wildwood docks. As with all Jersey Cape resorts, Wildwood is especially known for its seafood restaurants and some of the finest restaurants on the east coast. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z

11 Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing 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 Marketing 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 Marketing 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 Marketing 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.

12 ACME (Albertsons Companies, Inc Guaranty) Broker of Record Brian Hosey Marcus & Millichap Saddle Brook, NJ Tel: License: