Tractor Supply Company

Transcription

1 Tractor Supply Company Milford, Pennsylvania OFFERING MEMORANDUM Andrew Bogardus Lic # Christopher Sheldon Lic # In association with: Peter Strickler PA Lic #AB067039

2 Net Lease Investments Disclaimer The information contained in this marketing brochure ( Materials ) is proprietary and confidential. It is intended to be reviewed only by the person or entity receiving the Materials from DTZ ( Agent ). The Materials are intended to be used for the sole purpose of preliminary evaluation of the subject property/properties ( Property ) for potential purchase. The Materials have been prepared to provide unverified summary financial, property, and market information to a prospective purchaser to enable it to establish a preliminary level of interest in potential purchase of the Property. The Materials are not to be considered fact. The information contained in the Materials is not a substitute for thorough investigation of the financial, physical, and market conditions relating to the Property. The information contained in the Materials has been obtained by Agent from sources believed to be reliable; however, no representation or warranty is made regarding the accuracy or completeness of the Materials. Agent makes no representation or warranty regarding the Property, including but not limited to income, expenses, or financial performance (past, present, or future); size, square footage, condition, or quality of the land and improvements; presence or absence of contaminating substances (PCB s, asbestos, mold, etc.); compliance with laws and regulations (local, state, and federal); or, financial condition or business prospects of any tenant (tenants intentions regarding continued occupancy, payment of rent, etc). A prospective purchaser must independently investigate and verify all of the information set forth in the Materials. A prospective purchaser is solely responsible for any and all costs and expenses incurred in reviewing the Materials and/or investigating and evaluating the Property. By receiving the Materials you are agreeing to the Confidentiality and Disclaimer set forth herein. Tractor Supply Co. i

3 Net Lease Investments Investment Offering & Highlights The Offering A single store retail building located in Milford, Pennsylvania leased to Tractor Supply Company, through September 2024 Price: $2,725,000 Due to a confidenitality clause in the lease, please contact the listing agent regarding rent and asking cap rate Lease / Tenant New 10 year lease commencing in September 2014 Publicly traded company with a net worth of over $1.2 billion Real Estate Fully refurbished building to Tractor Supply specs Large secure indoor sales area Ample on-site parking Area Strengths Only 65 miles from Newark Liberty International Airport Average daily traffic count of 20,000 vpd in I- and 15,000 vpd on E US 209 Over 47,000 people within 10 miles Average household incomes of over $75,000 within 10 miles Tractor SKF FedEx Supply USA, Ground Inc. Co. 2iii

4 Tractor Supply Company Table of Contents Disclaimer Investment Offering & Highlights i ii Investment Overview 1 Tractor Supply Company 2 Site Plan 3 Aerials 4 Location Maps 6 Milford 8 Tourism 8 Transportation 8 Demographics 9 Andrew Bogardus andy.bogardus@dtz.com Lic # Christopher Sheldon chris.sheldon@dtz.com Lic # In association with: Patrick Strickler peter.strickler@dtz.com PA Lic #AB067039

5 Net Lease Investments Investment Overview Location 425 Route 6 and 209, Milford, Pennsylvania Lot Size Approximately 4.89 acres 213,008± square feet Improvements Built in the 1989 for Ace Hardware and remodeled in 2014 for TRACTOR SUPPLY COMPANY, a 36,800± square foot single story retail building. The construction type is pre-engineered steel with masonry in front and west side of building. The retail floor has 15,680± square feet and the indoor display area contains 16,616± square feet. Annual Rent Due to a confidenitality clause in the lease, please contact the listing agent regarding rent and asking cap rate. Price: $2,725,000 Right of First Refusal Starting in the fifteenth month of the lease (approximately December 2015), all offers are subject to a right of first refusal that Tractor Supply must exercise within 30 days of receipt. A sale contemplated between now and December 2015 will not require the seller to grant the tenant a right of first refusal. Lease Leased to TRACTOR SUPPLY COMPANY for 10 years from September 6, 2014 until September 5, The annual net rent increases in Year 6. The lease is net with the tenant responsible for taxes, insurance and maintenance. The landlord is responsible for the roof, gutters, parking lot replacement and restriping, and must carry commercial general liability insurance. There are three 5-year and one 4-year and 11-month options to renew under the same terms and conditions as the primary lease. Tractor Supply has a right of first refusal (See Right of First Refusal ). Tractor Supply Co. 1

6 Net Lease Investments Tractor Supply Company Based in Nashville, Tennessee, TRACTOR SUPPLY COMPANY (NASDAQ: TSCO ) is the largest retail farm and ranch store chains in the U.S. Tractor Supply Company operates over 1,300 stores in 48 states, focused on supplying the lifestyle needs of recreational farmers and ranchers. It also serves the maintenance needs of those who enjoy the rural lifestyle as well as tradesmen and small business. Located in towns outlying major metropolitan markets and rural communities, Tractor Supply stores offer a comprehensive selection of merchandise: Equine, pet and small animal products including everything necessary for their health, care, growth, and containment Maintenance products for agricultural and rural use Hardware and seasonal products including lawn and garden power equipment Over the past five years Tractor Supply has experienced considerable growth in stores, growing from 855 stores at the end of 2008 to 1,276 stores at the end of fiscal 2013, and in sales, with a compounded annual growth rate of approximately 11.4%. For the six months ended June 28, 2014, net sales increased 8.8% to $2.77 billion compared to $2.54 billion for the six months of fiscal Net income increased 8.7% to $182 million compared to $167 million. Total stockholder s equity was $1.27 billion. For the fiscal year ended December 31, 2013, sales were $5.16 billion up 10.7% from 2012 with net income of $328 million up 18.7% from Website: Truck, towing and tool products Work/recreational clothing and footwear for the entire family Maintenance products for agricultural and rural use; and Home décor, candy, snack food and toys Tractor Supply Co. 2

7 Site Plan STOCKROOM RECEIVING TRAILER DISPLAY AREA ±15,680 SF RETAIL SPACE INDOOR DISPLAY SCHNEIDER S LANE ROUTE 6 AND 209 Tractor Supply Co. 3

8 6 209 SCHNEIDER OAD OLD MILFORDROADROA POCONO DRIVE 6 209

9 NEW YORK PENNSYLVANIA MATAMORAS Y 209 E USHWY 209 & 6 6 E US HWY 209 & E US HWY 209 & 6 MILFORD TOWNSHIP E US HWY 209 & 6 US HWY 209 & 6 NEW JERSEY

10 Location MAIN STREET The property is ideally positioned on Highway 209 and 6, less than 4 miles from Interstate. PENNSYLVANIA 42 The property is situated in close proximity to Milford Township (2 miles), Montague Township, New Jersey (4 miles), Matamoras (4 miles), and Port Jervis, New York (5 miles). Other major retailers with a presence in the vicinity include: Walmart Supercenter, McDonald s, Taco Bell, Advance Auto Parts, Subway, Kmart, Game Stop, Wendy s, Staples, and Dunkin Donuts. NEW YORK MATAMORAS PENNSYLVANIA AVE PORT JERVIS JERSEY AVE 6 NEW YORK NEW JERSEY PENNSYLVANIA NEW JERSEY RIVER ROAD MILFORD TOWNSHIP 209 Location MILFORD RIVER ROAD MONTAGUE 209 PEN NSYLVANIA NEW JERSEY RIVER ROAD 206 MONTAGUE TOWNSHIP Tractor Supply Co. 6 23

11 Regional Map New York MA Albany 81 Pennsylvania MILFORD CT Pittsburgh 81 Newark New York Harrisburg 95 Philadelphia New Jersey 81 Maryland West Virginia Washington, DC Baltimore DE

12 Net Lease Investments Milford Milford, the county seat of Pike County, is located on the Delaware River in northeast Pennsylvania at the Pennsylvania/New Jersey border. Milford is a part of the New York-Newark-Jersey City, NY-NJ-PA MSA (population 19.9 million) and the New York-Newark, NY-NJ-CT-PA CSA (population 23.4 million). Milford is 52 miles east of Scranton, PA; 61 miles northwest of Newark, NJ; 71 miles northwest of New York, NY; and 134 miles northeast of Philadelphia. Tourism Situated on the north bank of the Delaware Rive, Milford is surrounded by various areas popular with travelers and tourists: Montague Township, NJ Port Jervis, on the south bank of the Delaware River, is approximately 5 miles west of Milford. Most of the area of Montague Township is public lands, primarily High Point State Park, Stokes State Forest, and Delaware Water Gap National Recreation Area. Montague is known for its scenery and wildlife, and summer sports in the area include hiking, biking, camping (both public and private campgrounds are available), and fishing. Port Jervis, NY Port Jervis, on the north bank of the Delaware River, is approximately 5 miles west of Milford. From late spring to early fall many thousands of travelers and tourists pass through Port Jervis on their way to enjoying rafting, kayaking, canoeing and other activities in the Delaware Water Gap National Recreation Area and the Upper Delaware Scenic and Recreational River and the surrounding area. Transportation Highways Milford is situated south of Interstate (I-) and bisected by State Routes 209 (US 209) and 6 (US 6). I- runs northeast to southwest, from Sturbridge, MA to Dubmore, PA (near Scranton). US 209 runs north to south from Ulster, NY to Millersburg, PA. US 6 runs west to east from Bishop, CA to Provincetown, MA. US 23 runs from Milford towards New York City. In Pennsylvania, US 6 run along the north edge of the state from the PA/OH state line to Matamoras, PA at the PA/ NY state line. Air Newark Liberty International Airport (EWR) in Newark, NJ is the nearest international airport, 65 miles southeast of Milford. EWR is the busiest major airport in the New York-New Jersey metropolitan area and is the third-largest hub for United Airlines. The nearest domestic airport to Milfrod is Stewart International Airport (SWF) 42 miles east in Newburgh, NY. Allegiant Air, Delta, JetBlue Airways and US Airways Express provides daily service from SWF. Tractor Supply Co. 8

13 Net Lease Investments Demographics 2014 Summary 5 miles 10 miles 15 miles Population 11,517 47,677 94,964 Households 4,715 18,409 35,912 Families 3,163 12,697 25,648 Average Household Size Owner Occupied Housing Units 3,556 13,902 28,374 Renter Occupied Housing Units 1,159 4,507 7,538 Median Age Median Household Income $66,2 $59,888 $65,558 Average Household Income $81,778 $75,476 $82, Summary Population 11,464 47,275 94,450 Households 4,705 18,302 35,866 Families 3,146 12,562 25,515 Average Household Size Owner Occupied Housing Units 3,555 13,806 28,275 Renter Occupied Housing Units 1,150 4,496 7,591 Median Age Median Household Income $75,257 $70,269 $76,709 Average Household Income $93,590 $86,876 $94,070 Trends: Annual Rate Population -0.09% -0.17% -0.09% Households -0.04% -0.12% -0.03% Families -0.11% 0.21% 0.10% Owner Households -0.01% -0.14% Median Household Income 3.38% 3.25% 3.19% Tractor Supply Co. 9