CHERRY PLAZA SHOPPING CENTER

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1 $550,000 PRICE REDUCTION Cherry Plaza Offering Memorandum 34 E. FAIRVIEW AVE MERIDIAN, ID COLLIERS INTERNATIONAL P. 1

2 Confidentiality Disclaimer Colliers International has been engaged as the exclusive marketing team to the Seller in connection with Seller s solicitation of offers for the purchase of the property known as Cherry Plaza located at the northwest corner of Fairview Avenue and Meridian Road, in the City of Meridian, County of Ada, State of Idaho (the Property ). Prospective purchasers are advised that as part of the solicitation process, Seller will be evaluating a number of factors including the current financial qualifications of the prospective purchaser. Seller expressly reserves the right in its sole and absolute discretion to evaluate the terms and conditions of any offer and to reject any offer without providing a reason therefore. Further, Seller reserves the right to terminate the solicitation process at any time prior to final execution of the Purchase Agreement. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property, and it is not to be used for any other purpose or made available to any other person without the express written consent of Seller. The material is based in part by information supplied by the Seller and in part by financial information obtaine from sources it deems reasonably reliable. Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and qualified in their entirety by the actual document to which they relate. No representation or warranty, expressed or implied, is made by the Seller, or any of their respective affiliates as to the accuracy or completeness of the information contained herein. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence, including engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property site or used in the construction or maintenance of the building at the Property site. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or any of their affiliates or any of their respective officers, directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. Offered Exclusively By Clay Anderson, CPA, MBA Investment Services clay.anderson@colliers.com Lew Goldman Retail Services lew.goldman@collier.com Mike Christensen Retail Services mike.christensen@colliers.com Brook Blakeslee Retail Services brook.blakeslee@colliers.com Prospective purchasers are not to construe the contents of this Offering Memorandum or any prior or subsequent communication from the Seller or their affiliates or any of their respective officers, directors, shareholders, owners, employees, or agents as legal, tax, or other advice. Prior to submitting an offer, prospective purchasers should consult with their own legal counsel and personal tax advisors to determine the consequences of an investment in the Property and arrive at an independent evaluation of such investment. Colliers International 755 W. Front St. Suite 300 Boise, Idaho COLLIERS INTERNATIONAL P. 2

3 Cherry Plaza S H OPPI NG CENT ER Investment Summary This investment opportunity is for the fee simple interest in Cherry Plaza Shopping Center, a 68,223 square foot grocery-anchored retail center sitting on a total of 5 acres. The center is anchored by Albertsons (NAP), Big Lots, Carl s Jr (Franchisee with 25 locations), Idaho Liquor Store, Little Caesars and the UPS Store which combined creates excellent tenant synergy and a dynamic cross-shopping experience. Cherry Plaza is located at the corner of Fairview Avenue & Meridian Road in Meridian Idaho. This intersection is one of the busiest in the market and has an estimated 40,000 vehicles per day pass by. Meridian is Idaho s second largest city with a population of 85,000 and is THE NINTH FASTEST GROWING CITY IN AMERICA. Meridian borders Boise to the west. PRICING Pricing: NOI (2014): Cap Rate (2014): Size: $7,800,000 $7,250,000 $500, % 68,223 SF NOI (Proforma): $588,000 Cap Rate (Proforma): 8.1% PSF: $106 COLLIERS INTERNATIONAL P. 3

4 Investment Highlights Grocery Anchored Investment Rare opportunity to purchase a center anchored by national grocery chain. Albertsons has over 2,300 locations and 250,000 employees under numerous banners including Safeway which they now own. The Albertson (NAP) was recently remodeled. The grocery store provides a daily needs trip generator to the shopping center. Grocery anchored centers are historically the most stable retail asset class. Strong National Tenants Albertsons is one of the largest grocery store chains in the world with 2,300 stores, 27 distribution facilities and 19 manufacturing plants with over 250,000 employees across 34 states and the District of Columbia. Big Lots has 1,400 locations, is publicly traded under BIG on the NYSE, is a Fortune 500 company with sales near $5 Billion. The Carl s Jr franchisee has 24 locations. UPS Store has 4,300 locations (Franchised store). Little Caesars has over 4,000 locations (this franchisee has 16 locations). Payless Shoes has 3,513 locations. Value Add Opportunity with Significant Upside Ability to push under-market rates. COLLIERS INTERNATIONAL P. 4

5 Property Overview Cherry Plaza is a grocery anchored retail center occupied by strong tenants: Albertsons (NAP), Big Lots, Big Lots Furniture, The UPS Store, Little Caesars, and the Idaho State Liquor Store, which together provides excellent tenant synergy and strong crossover shopping for all the tenants. The Center is strategically located on the very busy Fairview Avenue, which is the main east/west thoroughfare within the trade area, and has unobstructed street visibility. There are over 148,000 consumers and an estimated $77,000 average household income within 5 miles of the Center. PROPERTY SPECIFICATIONS Address 34 E. Fairview Ave. Meridian, ID Year Built Renovated 2012 Land Size ±5 Acres Major Tenants Albertsons (NAP), Big Lots, Carl s Jr, Payless Shoes, The UPS Store and Little Caesars Zoning C-2D General Commercial Traffic Counts Access Improvements Fairview Ave: 28,428 vpd Meridian Rd.: 14,017 vpd 3 access points along Fairview Avenue 1 access point on Meridian Road The offering is for 68,223 SF of existing building area. COLLIERS INTERNATIONAL P. 5

6 Site Plan LITTLE CAESER S 1,500 SF BOOST MOBILE 1,517 SF INTELESURE 4,100 SF NUT. WEST 1,414 SF ULTIMATE KARATE 4,322 SF FOLIZ SALON 1,100 SF LIQUOR STORE 4,500 SF BIG LOTS 26,450 SF FAST BUCKS 1,463 SF PAYLESS SHOES 2,537 SF VACANT 2,545 SF WEIGHT WATCHERS 2,220 SF UPS 1,392 SF Cherry Lane VACANT 6,021 SF PIGGY PIGS POTTERY 1,800 SF PHOENIX FIRE GAMES 4,040 SF ALBERTSONS COLLIERS INTERNATIONAL P. 6

7 Cherry Plaza S H OPPI NG CENT ER COLLIERS INTERNATIONAL P. 7

8 Demographics 34 E. Fairview Avenue 1 mile 3 mile 5 mile Population 2013 Estimated Population 13,357 67, , Projected Population 14,758 74, ,319 Households 2013 Estimated Household 5,100 23,150 51, Projected Households 5,565 25,256 56,552 Annual Growth % 5.5% 4.6% Income 2013 Average Household Income $56,912 $74,955 $77, Median Household Income $49,141 $64,091 $64,943 COLLIERS INTERNATIONAL P. 8

9 Area Overview City of Meridian Meridian, Idaho is the most dynamic and fastest growing city in the State. With a current population of over 85,000, Meridian is home to some of the largest master-planned residential communities. Meridian has grown 139% since IT IS THE NINTH FASTEST GROWING CITY IN AMERICA. Located just west of Boise, Idaho, Meridian is in the center of the Treasure Valley, a MSA of over 625,000. The median age in the ity is 32.6 years. The largest employers are Blue Cross, Scentsy and the Idaho State Police. Meridian s infrastructure is in place for sustained residential and commercial growth. Boise Top Employers (2011): State of Idaho (includes BSU) - 14,300 Employees St. Luke s Health System - 8,000 Employees Walmart - 7,136 Employees Micron Technology - 5,000 Employees Simplot - 3,400 Employees Hewlett-Packard - 3,000 Employees Saint Alphonsus Regional Medical Center - 2,960 Employees Wells Fargo - 2,278 Employees Idaho Power - 2,038 Employees Fred Meyer - 1,905 Employees Technology investment and the high-tech industry have become increasingly important to the City, with businesses including Hewlett Packard, Healthwise, Bodybuilding.com, Crucial.com, ClickBank, MobileDataForce, MarkMonitor, Sybase, Balihoo.com, Intracon NAWire-stone.com and Microsoft. The call enter industry is also a major source of employment; there are over 20 call centers in the City employing more than 7,000 people, including WDSGlobal, EDS, Teleperformance, DIRECTV and T-Mobile. ADA COUNTY Ada County is located in the State of Idaho. As of the 2011 Census, the county had a population of 392,365. The county seat and largest city is Boise, which is also the state capital. Other cities in the county with over 10,000 residents include Meridian, Eagle, Kuna, and Garden City. Ada County is by far the state s largest in population, containing more than one quarter of the state s residents, and contains its only county highway district. The Ada County Highway District (ACHD) has jurisdiction over all the local county and city streets, except for private roads and state roads. Ada County is part of the Boise City-Nampa, Idaho Metropolitan Statistical Area. COLLIERS INTERNATIONAL P. 9

10 Tenant Information Big Lots believes that a product s shelf life depends solely on which shelf it s on. The company is North America s #1 broadline closeout retailer, with about 1,570 Big Lots stores in 48 US states and seven provinces in Canada. It sells a variety of brand-name products, including food and other consumables, furniture, housewares, seasonal items and toys, that have been overproduced, returned, discontinued, or result from liquidations, typically at 20%-40% below discounters prices. Its wholesale division sells its discounted merchandise to a variety of retailers, manufacturers, distributors, and other wholesalers. The Ups Store is the brick-and-mortar version of Big Brown. Formerly Mail Boxes Etc., the company is part of parcel delivery giant UPS. The UPS Store is a leading franchisor of postal, shipping, document, and business services retail centers. It was renamed The UPS Store in October 2012 when it ditched the legacy Mail Boxes Etc. name altogether. With some 4,800 locations in the US, Puerto Rico, and Canada, it offers copying and printing, mailboxes, office supplies, packaging, parcel shipping, and other postal and business products and services. Customers include small and homebased businesses, traveling businesspeople, and consumers. It operates within UPS s Supply Chain & Freight business segment. Little Caesars: I came, I saw, I bought a pizza. Little Caesar Enterprises operates and franchises more than 2,500 Little Caesars carryout pizza restaurants throughout the US and in about ten other countries. The chain offers a variety of original and deep-dish pizzas along with cheese bread, salads, and sandwiches. While some stores are stand-alone units, many Little Caesars locations can be found in strip malls and other high-traffic areas; the units typically do not offer dine-in seating. About 80% of the chain s outlets are run by franchisees. Little Caesars was founded in 1959 by Mike and Marian Ilitch, who also control a sports and entertainment empire through Ilitch Holdings. COLLIERS INTERNATIONAL P. 10

11 Carl s Jr. is an American-based fast-food restaurant chain operating in the Western and Southwestern states. As of 2015 it has started expanding or is already in about 22 other countries. The brand continues its growth with an emphasis on quality, service and cleanliness, pioneering concepts such as partial table service and self-serve beverage bars. The introduction of the signature Six Dollar Burger in 2001 marks the latest Carl s Jr. advance in the quickservice industry, confirming the chain s constant emphasis on product innovation and representing a desire to satisfy the tastes of young, hungry consumers. Payless Shoesource helps footwear enthusiasts worldwide shop like Imelda Marcos. One of the top shoe retailers in the world, Payless ShoeSource operates more than 4,400 stores in more than 30 countries. It also has nearly 260 franchised stores located primarily in Asia, Eastern Europe, and the Middle East. Payless shops offer dress, athletic, and casual shoes; slippers; boots; and sandals for men, women, and kids. The discount shoe chain targets women age 18 to 49. Its North American stores stock about 6,600 pairs of shoes in 500 styles. Founded in 1956, today Payless ShoeSource is owned by Golden Gate Capital and Blum Capital Partners. Weight Watchers: in the early 60s, Weight Watchers founder Jean Nidetch began inviting friends into her Queens, NY, home once a week to talk about how best to lose weight. Today, that group of friends has grown to millions of women and men around the world who ve joined Weight Watchers to lose weight and lead healthier lives. Weight Watchers International, Inc. is the world s leading provider of weight management services, operating globally through a network of Company-owned and franchise operations with a total of 1,000 retail locations. Boost Mobile: Boost Mobile is the No-Contract division of Sprint Nextel. Boost Mobile is an award-winning provider of simple and flexible no-contract wireless products and services - all on a dependable nationwide network. Boost Mobile redefines value for wireless consumers with no long-term contracts on the nationwide Sprint 4G LTE network, reaching more than 225 million people and with no long-distance fees. Nutrition West: Nutrition West is a family owned and operated health store in Meridian, Idaho. We ve been helping our community members improve their health for over 12 years! Nutrition West specializes in high quality vitamins, minerals, herbs, natural supplements, and wellness products for every season of life and budget. We believe that integrating holistic health modalities into ones life can make a great impact on whole body health. It is our goal to empower customers with knowledge & quality products as they take ownership for their health decisions. COLLIERS INTERNATIONAL P. 11

12 Foliz Salon: Full service hair and nail salon. Fast Bucks: Offers Payday Loans, Small Loans and Small Loans. They have 35 locations throughout the U.S. Piggy Pigs Pottery: Paint your own pottery ceramics studio. Have over 600 pieces in stock to design. Set up for all ages. Pieces range in price from $ $ $6.00 studio fee for 13 and up - $4.00 studio fee for 12 and under. Ultimate Karate: UK has been operating in Meridian for over 10 years. They have classes for kids, women and men. They focus on Ultimate Karate and Jiu Jitsu programs. Their logo is on their web page Phoenix Fire Games: Designed with gamers in mind. The store features video games, board games, gaming accessories, a gaming area and game demos. Their logo is on their web page. IDAHO STATE LIQUOR STORE Idaho State Liquor Store: The Idaho State Liquor Store is run by the Idaho Liquor Division. The state of Idaho controls the sale of distilled spirits. Intelesure: This is an office use whose entrance is in the east facing portion of the shopping center. COLLIERS INTERNATIONAL P. 12

13 Colliers International Idaho Clay Anderson, CPA, MBA Investment Services Lew Goldman Retail Services Mike Christensen Retail Services Brook Blakeslee Retail Services Colliers International Boise 755 W Front Street, Suite 300 Boise, Idaho Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its licensor(s) All rights reserved subject to change or withdrawal without notice.