RITE AID CENTER RIDGE RD WESTLAKE OH 44145

Transcription

1 RITE AID CENTER RIDGE RD WESTLAKE OH 44145

2 Statement of Disclaimer/Confidentiality 2 The material contained in this Investment Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of Jones Lang LaSalle ( JLL ) or Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent the Property Owner ( Owner ) in connection with the sale of the Property is JLL, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Investment Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to Jones Lang LaSalle. Neither JLL, nor the Owner make any representation or warranty, expressed or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future performance of the Property. This Offering Brochure may include certain statements and estimates by JLL with respect to the projected future performance of the Property. These assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, JLL and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this Investment Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and Owner. The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner, JLL, nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Investment Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This Investment Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Investment Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agrees to release the Owner and JLL from any liability with respect thereto. To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk.

3 Table Of Contents 3 INVESTMENT HIGHLIGHTS 4 RENT ROLL/FINANCIAL SUMMARY 5-6 TENANT OVERVIEW 7 MAPS 8-10 LOCATION/DEMOGRAPHICS 11 MARKET COMPS 12 CONTACT 13

4 Investment Highlights THE OFFERING 4 Jones Lang LaSalle is pleased to offer for sale the 100% fee simple interest in the NNN leased Rite Aid pharmacy (S&P B, stable) in Westlake, Ohio. Rite Aid leases the all brick building with drive-through pharmacy on an absolute triple net basis through July 31, 2021, and has been a tenant in the property since July 30, Beyond the initial term, there are eight 5 year options to renew. The existing debt is an assumable, fully amortizing loan that matures on July 31, 2021; however, it can be delivered free and clear to the investor. This opportunity is ideal for capital appreciation or a 1031 Exchange, as the principal is rapidly being paid through the latter half of the loan. The property is prominently located on the southeast corner of Clague Road and Center Ridge Road in Westlake, Ohio, an upscale community in Cleveland s western suburbs. The corner location offers high visibility to the ±34,000 vehicles per day at the Clague and Center Ridge intersection. There are 83,090 people within a three-mile radius of the site with an average household income of approximately $80,000 per year. Westlake is a vibrant and diverse community, home to Hyland Software, Energizer, Bonne Bell, St. John s West Shore Hospital, Cuyahoga Community College, Cleveland State University s west branch campus, and Crocker Park, a 1.7 million square foot mixed use development. It has also consistently received the highest recognition by the state for its public education. Investment Summary Offering Price: $4,878,490 Cap Rate: 8.00% Address: Submarket: Year Built: Site Area: Net Rentable Area: Percent Leased: Parking: Ownership: Center Ridge Rd Westlake OH Cuyahoga County ac 11,320 Sq. Ft. 100% TBD Fee Simple Absolute NNN Leased Asset Provides for Zero Landlord Responsibilities Approximately 7 Years Remaining on Initial Lease Term Located in a High-Traffic Desirable Retail Location, Affluent Suburb of Cleveland, Ohio Investment Grade Credit Tenant (S&P B, stable)

5 Rent Roll 5 TENANT INFO LEASE TERMS RENT SCHEDULE RENT INCREASES OPTIONS LEASE Tenant Name Size Lease Starts Lease Ends Term Rent $/SF Date Rent Increases Monthly PSF Rite Aid 11,320 SF 7/30/99 7/31/21 7/30/99-7/31/21 $32, $2.87 8/01/21 7/31/26 8/01/26 7/31/31 8/01/31 7/31/36 8/01/36 7/31/41 8/01/41 7/31/46 8/01/46 7/31/51 8/01/51-7/31/56 8/01/56-7/31/61 $32, $32, $34, $34, $34, $34, $35, $35, $2.87 $2.87 $3.02 $3.02 $3.02 $3.02 $3.16 $3.16 Eight 5 year 180 days notice Absolute NNN

6 Financial Summary 6 PRICE $4,878,490 Capitalization Rate: 8.00% $/Sq. Ft. $ Price per foot (Land) $69.56 NET OPERATING INCOME SUMMARY Plus: STABILIZED INCOME Per SF Scheduled Rent 7/30/99-7/31/21 $2.87 $390,279 Equals: Effective Gross Income $2.87 $390,279 Less: OPERATING EXPENSES Per Sf Total Operating Expenses NNN - Equals: NET OPERATING INCOME $390,279

7 Tenant Overview 7 Rite Aid - One of the Nation s Leading Drugstores Rite Aid Corporation is a retail drugstore chain in the United States. As of March 3, 2013, it operated 4,623 stores in 31 states across the country and in the District of Columbia. In the Company s stores, it sells prescription drugs and a range of other merchandise, which it calls front end products. The company is publicly traded on the New York Stock Exchange under the ticker RAD. Rite Aid began in 1962 as a single store opened in Scranton, Pennsylvania called Thrif D Discount Center. After several years of growth, Rite Aid adopted its current name and debuted as a public company in During the fiscal year ended March 3, 2013 (fiscal 2013), prescription drug sales accounted for 67.6% of its total sales. It carries a range of front end products, which accounted for 32.4% of its total sales in fiscal Front end products include over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, beverages, convenience foods, greeting cards, seasonal merchandise and other everyday and convenience products, as well as photo processing. It offers a variety of products under its private brands, which contributed approximately 18.3% of its front end sales in the categories where private brand products were offered in fiscal As of March 3, 2013, the Company had opened over 2,100 GNC stores-within-rite Aid-stores. During fiscal 2013, the Company sold two owned operating stores to independent third parties. Effective August 5, 2013, Rite Aid Corp acquired Kings Pharmacy East Inc, which owns and operates pharmacy. Effective April 1, 2014, Rite Aid Corp acquired Health Dialog Services Corp, a Bostonbased provider of healthcare system research and development services. In April 2014, Rite Aid acquired RediClinic. During fiscal 2013, its stores filled approximately 297 million prescriptions and served an average of 2.0 million customers per day. The overall average size of each store in its chain is approximately 12,600 square feet. As of March 2, 2013, 61% of its stores were freestanding; 52% of its stores included a drive-thru pharmacy; and 47% included a GNC store within Rite Aid store. The Company s customers may also order prescription refills over the Internet through or over the phone through its telephonic automated refill systems for pick up at a Rite Aid store. It has a strategic alliance with GNC, a retailer of vitamin and mineral supplements. It also owns a 55,800 square foot ice cream manufacturing facility and lease a 32,000 square foot storage facility located in El Monte, California. Corporate Information Ticker Symbol: NYSE: RAD Founded: 1962, as Thrif D Revenue: $25.3 Billion (FY 2013) Net Income: $118.1 Million (FY 2013) Operating Income: $717.5 Million Credit: S&P Investment Grade Employees: 50,730 No. of Locations: 4,623 Headquarters: East Pennsboro Township, PA Website: Tenant Highlights NYSE: RAD Fortune 500 Company Credit Rating Recently Upgraded by S&P

8 Regional Map 8

9 Aerial- Nearby Retailers 9

10 Competition Aerial 10 3 Miles

11 Location Overview/Demographics 11 Westlake A Top Community in Northeastern Ohio Weslake is one of the most affluent suburbs surrounding Cleveland, Ohio. The city is known for vibrant businesses, scenic parks and recreation areas, exceptional city services and safety forces, outstanding restaurants and shopping and a highly rated school system POPULATION & INCOME 1 Mile Radius Population 9,873 Avg. household income - $82,886 $ 1 MILE 3 Mile Radius Population 83,090 Avg. household income - $78,636 5 Mile Radius: $ 3 MILES Population 186,137 Avg. Household income - $73,300 $ 5 MILES

12 Comps On The Market 12 Tenant Year Built Address City State SF Land Rent Rent/SF Price/SF Term Rem Term Expenses Options Escalations Price Cap Rite Aid Coal Heritage Road Bluefield WV 11, $157,771 $14.26 $ NNN 4, 5yr 18.1% 1st option and +/-5.8% each option thereafter Rite Aid Wallace Wilkinson Blvd. Liberty KY 10, $169,651 $15.78 $ NNN 4, 5yr 19.5% 1st option +/-6.5% each option thereafter $2,132, % $2,189, % Rite Aid Cleveland Hwy Dalton GA 11, $240,384 $21.46 $ NNN 4, 5yr 2.5% $3,120, % Rite Aid S. Park St. Carrollton GA 11, $232,320 $20.56 $ NNN 8, 5yr 10% every 10 years $3,574, %

13 RITE AID CENTER RIDGE RD WESTLAKE OH Broker Information