Exclusive Investment Opportunity

Transcription

1 Commercial Real Estate Exclusive Investment Opportunity Net Lease Investment Williamston, SC Virginia I. Wright, CCIM Principal & Director Atlanta Office Millenia Partners Wright Investment Group Atlanta Office (470) Atlanta Office Cicero Drive, Suite 100 Alpharetta, GA Wendal Miller Office (615) Dick Merritt Broker of Record Merritt & Company SC License #19966 Asking Price: $1,490,800 + Strip Center

2 Table of Contents Virginia I. Wright, CCIM Principal & Director Atlanta Office Millenia Partners Wright Investment Group Atlanta Office (470) GA License # Atlanta Office Cicero Drive, Suite 100 Alpharetta, GA Wendal Miller Office (615) Dick Merritt Broker of Record Merritt & Company SC License #19966 Executive Summary Investment Overview Lease Abstract Rent Schedule Tenant Overview Maps & Aerials Location Overview Demographics Broker Profile Confidentiality Agreement Pg. 2

3 Executive Summary Located in Williamston, SC (Greenville MSA), the subject property is a newly renovated O Reilly Auto Parts 15 year lease, with four (4) - five year options and rental increases, with an adjoining 80% leased retail strip center with long term established tenants. O'Reilly Auto Parts occupies approximately 10,000 sq ft, with four tenants and one vacancy occupying the remaining 7,160 sq ft space; providing the investor an opportunity to lease up approximately 1,400 sq ft to increase net income and overall return on investment. With convenient access to Interstate 85, this property is strategically located between two major US Highways with traffic counts of over 100,000 cars per day. It is surrounded by several national and regional retailers including: McDonald s, Subway, BP gas station, SunTrust Bank, BB&T, First Citizens Bank, Community First Bank, Ace Hardware, and Goody s. This location is enhanced by the neighboring Anderson County School District One, close proximity to downtown Greenville, and direct access to Asheville, Charlotte, and Atlanta. All of which add to the appeal of this O Reilly Auto Parts investment, offering investors a reliable, steady cash flow. Pg. 3

4 Investment Overview Property Summary Address County Building Area (O Reilly + StripCenter) Land Area Year Built (O Reilly Auto Parts) Financial Summary 402 E Main St Williamston, SC Anderson +/- 17,160 Sq Ft 1.59 Acres 2016 Renovation Sale Price $1,490,800 Price / Land Sq Ft $21.52 Price / Building Sq Ft $86.87 Current NOI $112,379 Cap Rate 7.50% S&P Rating BBB+ (O Reilly Auto Parts) Tenant Highlights O Reilly is Investment Grade (S&P: BBB+) O Reilly is One of the Largest Retailers of Automotive Parts, Operates Over 4,600 Stores in 44 States st Quarter Comparable Sales Increase of 6.1% and Forbes List of 2016 America s Best Employers Long-Term Established Tenants Opportunity to Lease up 1,400 Sq Ft and Increase Investment Return Location Highlights Close Proximity to Downtown Greenville Greenville, SC Recently Ranked one of the Top 10 Best Downtowns in the Country Direct Access to Major US Highway and Interstate Business Corridors Surrounded by National and Regional Retailers Located off of Heavily Trafficked Interstate 85 Market Highlights Strong Demographics Thriving city with Industrial, Commercial, and Tourist Activity Growing Economical Market Vital Regional Business Center Pg. 4

5 O Reilly Auto Parts Lease Abstract Lease Summary Tenant Trade Name O Reilly Auto Parts Lease Guarantor O'Reilly Automotive Stores, Inc Lease Term Lease Term Remaining 15 Years 15 Years Lease Commence Exp. 10/01/2016 Lease Expiration Exp. 09/31/2031 Lease Type NN Renewal Options Four (4) - 5 Year Options Rent Increase 6% In Options Current Annual Rent $67, Rent / Sq Ft Repairs & Maintenance Property Tax $6.70 / Sq Ft Tenant Tenant Insurance Tenant Roof & Structure Landlord Parking Landlord Pg. 5

6 O Reilly Auto Parts Rent Schedule *Based on estimated rent commencement date Lease Year Date Monthly Rent Annual Rent /1/ /31/2031 $5, $66, Option /1/ /31/2036 $5, $71, Option /1/ /31/2041 $6, $75, Option /1/ /31/2046 $6, $79, Option /1/ /31/2051 $7, $84, Pg. 6

7 Retail Strip Lease Abstract Lease Summary Tenant Trade Name Lease Term Options Current NOI Sq Ft Occupying Rent / Sq Ft Taxes & Insurance Roof & Structure Cashwell Finance Dec Sept 2017 In Option $10, ,200 $9.00 Landlord Landlord M & M Income Tax Oct Sept 2017 In Option $9, $10.00 Landlord Landlord World Finance One (1) - 5Yr w/ 8% Increase $10, ,200 $8.50 Landlord Landlord Little Caesars Two (2) - 5Yr w/ 8% Increase $24, ,400 $10.00 Landlord Landlord Vacancy 1,400 Landlord Landlord Estimated Operating Information Income Gross O Reilly Rent $67, ** Less Expenses for Retail Strip Center are calculated at 42% 42% Total Insurance = $1,890 42% Total Taxes = $5,530 42% Total CAM (estimated $0.25/Sq Ft) = $1,801 Total = $9,221 Gross Retail Strip Rent $54, ** O Reilly Auto Parts covers remaining 58% per lease Effective Gross Income $121, **Less: Expenses -$9,221 Net Operating Income $112, Pg. 7

8 Tenant Overview Company Profile Year Founded 1957 Headquarters Springfield, MO # of Employees 62,533 # of Stores 4,623 Revenues (2014) 7.97 Billion NYSE Symbol ORLY Website History O'Reilly Automotive, Inc. officially started in the auto parts business in Springfield, Missouri, in November of 1957 with one store and 13 employee. Their sales totaled $700,000 in 1958, their first full year of business. Due to the hard work and ability of the original employees, several of whom were stockholders in the company, the business grew and prospered from its very first year. By 1961, the company's volume had reached $1.3 million the combined volume of O'Reilly Automotive Distributors, a division formed to serve independent automotive jobbers in the area. In March of 1975, annual sales volume rose to $7 million, and a 52,000-square-foot facility at 233 S. Patterson was built for the O'Reilly/Ozark warehouse operation. By that time, the company had nine stores, all located in southwest Missouri. Stores The long range plans and stability of the company were solidified by a public offering of company stock in April Since that time, the Company has grown through the opening of new stores, as well as through numerous mergers and acquisitions, and currently operates over 4,600 stores in 44 states, including Alaska and Hawaii. Financial Sales for the first quarter of 2016 increased $194 million, or 10%, to $2.10 billion from $1.90 billion for the same period one year ago. Gross profit for the first quarter increased to $1.10 billion (or 52.4% of sales) from $987 million (or 51.9% of sales) for the same period one year ago, representing an increase of 11%. New stores and increased sales at established stores contributed to the robust top line expansion and filtered down to net income. Pg. 8

9 Retail Map 402 E Main St Williamston, SC Pg. 9

10 Location Maps 402 E Main St Williamston, SC Strip Center Pg. 10

11 Location Overview Williamston, SC The Town of Williamston, South Carolina is located in Anderson County within the rapidlygrowing Greenville-Anderson-Mauldin Metropolitan Statistical Area. Williamston, with a 2014 population of 4,072, is strongly connected to the adjacent small towns of Pelzer (pop. 91) and West Pelzer (pop. 896) as well as the nearby cities of Anderson and Greenville. Nestled in the Foothills of the Blue Ridge Mountains in the scenic Upstate, the town of Williamston SC is a thriving area with industrial, commercial, and tourist activity. Its proximity to the I-85 business corridor and metropolitan areas make it a great place to live, work and play. Williamston is only 15 minutes from Greenville or Anderson, two hours to Atlanta or Charlotte, and four hours to sun at the beach or snow in the mountains. In April 2015, the Town of Williamston hired a planning team led by Arnett Muldrow & Associates to conduct a community-based planning process and create a shared plan to guide growth and development in the town over the next thirty years. Pg. 11

12 Location Overview Greenville MSA, SC The Greenville s downtown has long been one of the Upstate s most popular destinations for shopping, dining and entertainment, and over the past few years, has amassed a multitude of accolades and awards from national publications. Livability recently ranked it one of the Top 10 Best Downtowns in the country, and The New York Times called Greenville a national model for a pedestrian-friendly city center. Greenville has focused on creating a vibrant downtown that is authentic, sustainable and most importantly, for people. With wide sidewalks, outdoor plazas and streetside dining, downtown Greenville offers a pedestrian-friendly atmosphere that has been compared to that of a European city. During the day, downtown is home to over 20,000 employees. At night, area residents and visitors flock to downtown to take advantage of its extensive offering of cultural, entertainment and dining options. Not surprisingly, downtown has also become one of the most desirable residential districts in and around Greenville, giving the area an even more well-rounded character. Pg. 12

13 Location Overview 2015 Demographics (STDB) Statistics Williamston, SC 1 Mile Population 2,597 Households 1,055 Average Household Income $48,573 3 Mile Population 4,072 Median Age 34.2 Median Home Value $92,216 Median Household Income $40,230 Average Household Size 2.60 Population 11,155 Households 4,372 Area 3.67 Sq Mi Average Household Income $46,310 5 Mile Population 22,760 Households 8,741 Average Household Income $49,572 Pg. 13

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17 Broker Profile Virginia I. Wright Virginia is Principal and Director of the Atlanta office of Millenia Partners Capital Group, bringing over 25 years of marketing, communications, finance, sales, and operational management experience to the firm. Specializing in the single tenant net lease retail segment, she is also experienced in industrial and medical as well as sale leasebacks. Throughout her real estate career, Virginia has developed exceptional underwriting and negotiation skills while closing over $150MM in net lease transactions in 8 states. She provides advisory, acquisition and disposition services to numerous corporate, institutional and private clients, private equity groups, preferred developers, franchisees, REITS, and build-to-suit specialists nationwide, with a focus on assisting buyers and sellers through the intricacies of 1031 exchanges. Recent Transactions Include: As a result of her extensive transaction experience and knowledge, Virginia has established herself as a premier broker that is committed to providing superior client service, while embracing a philosophy of integrity and professionalism. This has enabled her to cultivate and foster long lasting relationships with her clients. Lowe s (Charlotte, NC) Arizona s Steakhouse (Lithonia, GA) Buddy s Rents-Leaseback (Portfolio of 9 stores) Rader Building (Duncan, SC) Lear Building (Duncan, SC) Medical Building (Austell, GA) FedEx Ground (Crestview, FL) Golden Corral (Austell, GA) Holiday Inn (Atlanta, GA) CVS Pharmacy (Lawrenceville, GA) Walgreens (Anderson, SC) $7,700,000 $2,730,000 $11,908,235 $3,295,000 $10,750,000 $5,610,000 $6,125,000 $3,300,000 $6,100,000 $2,600,000 $3,800,000 As a Certified Commercial Investment Member (CCIM) of the CCIM Institute, Virginia has achieved the highest designation in the field of commercial real estate. Only 6% of commercial real estate broker/agents nationwide have the CCIM designation. Virginia is also a member of various professional organizations including the National and Atlanta Commercial Board of Realtors, the International Council of Shopping Centers, and the CCIM Georgia Chapter. Professional Affiliations: Certified Commercial Investment Member (CCIM) GA CCIM Chapter Member International Council of Shopping Centers (ICSC) GA Real Estate License FL Real Estate License SC Real Estate License Virginia I. Wright, CCIM Principal & Director Atlanta Office Millenia Partners Wright Investment Group Atlanta Office (470) VWright@Millenia-Partners.com Atlanta Office Cicero Drive, Suite 100 Alpharetta, GA Wendal Miller Office (615) WMiller@WWMiller.com Dick Merritt Broker of Record Merritt & Company SC License #19966 Pg. 17

18 Commercial Real Estate Confidentiality Agreement This Confidentiality Agreement ( Agreement ) is made and agreed to for the benefit of the undersigned party ( Prospect ), the owner of the subject property (the Seller ) and undersigned agent Millenia Partners, LLC ( Broker ). Now therefore in consideration of the privileges granted to Prospect with respect to receiving certain confidential information, and other good and valuable consideration, the Prospect hereby agrees to the following: I. Confidential Information: Prospect will receive confidential information regarding property referred to as 402 East Main St, Williamston, SC Prospect agrees to not disclose to any person that the Property or the note may be available for sale or lease, or that discussions or negotiations are taking place concerning a possible purchase of the Property or the note, nor any terms, conditions, or other facts with respect to the Property or the note, including but not limited to tenant information, lease rates, lease expirations, income and expenses, and any such possible purchase, including the status thereof. The term person used in this agreement shall be interpreted broadly and shall include, without limitation, any corporation, company, partnership or individual other than parties to which Broker approves in writing. Prospect agrees to not contact the Seller, the management, the tenants, the lender, the vendors, the insurers, the employees or the customers of any business at the site. II. Acting as a Principal Prospect hereby warrants that it is acting as a principal only, and not as a broker or agent, regarding this contemplated transaction. Prospect acknowledges and agrees that Millenia Partners, LLC., will act in an agency capacity representing the Seller, and will be used as the sole broker or agent in connection with the purchase of the property. Millenia Partners, LLC, will be paid a commission by the Seller. Prospect agrees to not be involved in any arrangement to lease or purchase the property, in whole or in part, as a lender, partner, buyer of the note, buy in foreclosure, buy from bankruptcy court, or in any other manner acquire an investment in or control of the property, unless Millenia Partners, LLC is included as the selling agent and is compensated as described herein. Prospect reserves the right to involve any lender, underwriter, equity partners, attorney or other advisor in the transaction provided said party is paid by the Prospect, and said party has agreed in writing to this confidentiality agreement. III. Governing Law This Agreement shall be governed and construed in accordance with the laws of the State of Georgia. Accepted and agreed to this day of, Signature Printed Name Title Phone Fax Company Name Address Virginia I Wright Wendal Miller GA License # O. (615) Millenia Partners, LLC WMiller@WWMiller.com Principal & Director Atlanta Office Dick Merritt O. (470) Broker of Record VWright@Millenia-Partners.com Merritt & Company SC License #19966 Pg. 18