Look Upland. Where Proper es & People Unite!

Transcription

1 Keith A. Sturm, CCIM Amanda C. Leathers South 6th Street Suite 1418 Minneapolis, MN Look Upland. Where Proper es & People Unite!

2 HIGHLIGHTS PRICE: $1,306,050 CAP: 6.00% NOI: $78,363 Easy Access off Highway 10 Traffic counts 8,300+ vehicles per day Corporate Lease with McDonalds Investment Grade: S&P Rated A Near major retailers: Shopko Hometown, True Value, Dean s Country Market, Super 8 DISCLAIMER: The informa on contained in this Investment Offering was obtained by sources believed to be reliable; however, Upland Real Estate Group, Inc. makes no guaran es, representa ons or warran es as to the accuracy or completeness of the informa on contained herein. All informa on, including price change and withdrawal from the market, is subject to change without no ce. The material contained herein is furnished solely for the purpose of considering the purchase of the subject property and is not to be used for any other purpose. This informa on should not be photocopied or disclosed to any third party without the wri en consent of Upland Real Estate Group, Inc. PAGE 2

3 PROPERTY OVERVIEW INVESTMENT SUMMARY PRICE $1,306,050 CAP 6.00% NOI $78,363 NUMBER OF TENANTS 2 PERCENT OCCUPIED 100% OCCUPANTS McDonald s Verizon Wireless PROPERTY INFORMATION LEASE NOTES: Net, Net. Landlord is responsible for roof & structure. Tenant to reimburse for CAM and taxes (Please See Lease). McDonald s has 30 day Right of First Refusal to Purchase. Buyer to credit seller at closing the remaining balance of the TIF note with the city of Perham (See Development Agreement for details.) The es mated balance is $18,000. BUILDING NAME BUILDING SIZE LOT SIZE McDonald s/verizon 3,964 SF ACRES DEMOGRAPHIC INFORMATION 5 MILE RADIUS 10 MILE RADIUS 15 MILE RADIUS 2013 POPULATION 4,734 9,354 18, POPULATION 4,725 9,430 18,904 COUNTY O er Tail YEAR BUILT MEDIAN HOUSEHOLD INCOME $39,547 $41,815 $41, AVERAGE HOUSEHOLD INCOME $50,350 $53,914 $53,579 All demographic informa on is obtained from Site To Do Business, which compiles US Census Bureau data and Esri projec ons for PAGE 3

4 RENT ROLL Tenant Sq. Ft. Rent/ Sq. Ft. Current NOI NOI Increase Rent Commencement Lease Expira on Ini al Term Op on Term Occupancy Taxes, CAM, Insurance Mgmt Fee Years 1 5: $59,000 CAM & Taxes= Pro Rata McDonald s 2,825 $20.88 $59,000 Years 6 10: $64,900 02/20/ /28/ Years Eight 5 Year 71% No Insurance= Tenant Op ons: 10% Increase in Each Burggraf Wireless, Inc. (Verizon Wireless) 1,139 $17.00 $19,363 Years 1 5: $19,363 Op ons: 2% Annual Increases 05/30/ /30/ Years Four 5 Year 29% CAM & Taxes= Pro Rata Insurance= Tenant Yes TOTALS 3,964 $78,363 PAGE 4

5 TENANT INFORMATION PROPERTY TENANT REVENUES NET WORTH S&P RATING MCDONALD S MCDONALD S USA, LLC $28.1 BILLION $16.0 BILLION A McDonald's is the world's #1 fast food company by sales, with more than 35,000 restaurants serving burgers and fries in 120 countries. (There are more than 14,250 Golden Arches loca ons in the US.) The popular chain is well known for its Big Macs, Quarter Pounders, and Chicken McNuggets. Most of the outlets are free standing units offering dine in and drive through service, but McDonald's also has many eateries located in airports, retail areas, and other high traffic loca ons. About 80% of the restaurants are run by franchisees or affiliates. McDonald's has come to dominate the fast food dining industry largely through its effec ve franchising efforts, its focus on consistent food quality, and its successful marke ng campaigns. The company's far flung network of franchise operators are all controlled by agreements meant to ensure that a Big Mac purchased in Pi sburgh tastes the same as one bought in Beijing. Each restaurant gets its food and packaging from approved suppliers that are held to high standards. For some of those suppliers, such as Golden State Foods, Mar n Brower, and J.R. Simplot, servicing McDonald's loca ons accounts for nearly their en re business. In fiscal 2013 McDonald s reported revenue of $28.1 billion, up 2% from the previous year. Net income in fiscal 2013 also rose 2%, hi ng $5.6 billion. McDonald's Corpora on currently has a net worth of $16 billion with an "A" S&P Ra ng. McDonald's USA, LLC is a subsidiary of McDonald's Corpora on. McDonald's USA holds all US loca ons (see financial statement). PROPERTY TENANT REVENUES NET WORTH S&P RATING VERIZON BURGGRAF WIRELESS, INC PRIVATE CONFIDENTIAL NON RATED Lease is signed by Burggraf Wireless, Inc. Verizon is the #2 US telecom services provider overall a er AT&T, but it holds the top spot in wireless services ahead of rival AT&T Mobility. The company's core mobile business, Verizon Wireless, is primarily retail and serves 103 million customers. (Verizon Wireless was a joint venture with Vodafone un l 2014, when Verizon bought out Vodafone's stake for $130 billion.) Verizon's wireline unit, with nearly 24 million landline accounts, provides local telephone, long distance, Internet access, and digital TV services to residen al and wholesale customers. In addi on, Verizon offers a wide range of telecom, managed network, and IT services to commercial and government clients in more than 150 countries. As of December 2013, the company has a net worth of $38.8 billion, revenues of $120.5 billion and a 'BBB+' S&P ra ng. PAGE 5

6 PROPERTY PHOTOS PAGE 6

7 SURROUNDING PROPERTIES PAGE 7

8 AERIAL PAGE 8

9 AREA INFORMATION D P This McDonald's and Verizon Wireless property is situated at the corner of County Road 8 and Judd Street in Perham, Minnesota. Nearby retailers include a newly revamped Shopko Hometown, Dairy Queen, Subway, Super 8, Crossings by Grandstay, Family Dollar, Mark s Fleet Supply True Value, Dean s Country Market, Napa Auto Parts, and more. Also close by is Perham High School and Heart of the Lakes Elementary. The property is about 2 miles from Perham Health Hospital & Clinic, 3 miles south of the popular Perham Lakeside Golf Club, and 40 miles east of Interstate 94, a major freeway which spans across the Upper Midwest. Perham is conveniently located on Highway #10 in O er Tail County, home to over 1,000 lakes. For the sports or fitness minded, the Perham Area Community Center offers a pool with a water slide, a walking track, weight room, gymnasiums and much more. Perham Lakeside Golf Club offers 27 holes of golfing on one of the area's finest golf courses. The club boasts a new clubhouse/banquet hall/restaurant facility that is open to the public. Perham has over 300 acres available that qualify for the state's Job Opportunity Building Zone (JOBZ), which offer tax benefits to a qualifying business. This is primarily for industrial, manufacturing and produc on type companies. Some of the largest employers in the area include Barrel O' Fun Snack Foods, Tuffy's Pet Foods, Kenny s Candy, Perham Egg, Industrial Finishing Services (IFS), Arvig (communica on services), and Perham Health. In early 2012, Perham Health opened its new $38 million facility, which covers 120,000 square feet, less than 2 miles from the subject property. Perham is located approximately 60 miles east of Fargo, ND, and 160 miles west of Minneapolis, MN. US Route 10 and Minnesota State Highways 78 and 108 are three of the main routes in the community. P L G C PAGE 9

10 MAPS McDonald s/verizon 100 Judd Street Perham McDonald s/verizon 100 Judd Street PAGE 10

11 TOP MINNESOTA COMPANIES 2013 Fortune 500 Rankings State Rank Company Fortune 500 Rank City Revenues ($ Billions) Net Worth ($ Billions) 2012 Rank 1 UnitedHealth Group 17 Minnetonka $110.6 $ Target Corpora on 36 Minneapolis $73.3 $ Best Buy 61 Richfield $45.1 $ CHS, Inc. 69 Inver Grove Heights $40.6 $ Supervalu, Inc. 86 Eden Prairie $36.1 $ M Company 101 St. Paul $29.9 $ U.S. Bancorp 132 Minneapolis $22.2 $ General Mills, Inc. 169 Minneapolis $16.7 $ Medtronic, Inc. 172 Minneapolis $16.5 $ Land O Lakes 194 Arden Hills $14.1 $ Ecolab, Inc. 229 St. Paul $11.8 $ C.H. Robinson Worldwide, Inc. 237 Eden Prairie $11.4 $ The Mosaic Company 246 Plymouth $11.1 $ Ameriprise Financial, Inc. 263 Minneapolis $10.3 $ Xcel Energy, Inc. 266 Minneapolis $10.1 $ Hormel Foods Corpora on 319 Aus n $8.2 $ Thrivent Financial for Lutherans 325 Minneapolis $8.0 $ St. Jude Medical, Inc. 457 St. Paul $5.5 $ Nash Finch Company 500 Minneapolis $4.8 $ Source: Fortune 500 (2013) from FORTUNE Magazine. Retrieved from h p://money.cnn.com/magazines/fortune/fortune500/2013/full_list/ [August 2013] PAGE 11

12 ABOUT UPLAND THE UPLAND ADVANTAGE Upland Real Estate Group, Inc., which was founded in 1995, is a Minneapolis based commercial real estate, brokerage, and investment company, which focuses on passive real investments, 1031 solu ons, real estate por olio diversifica on, and wealth preserva on. Upland offers "big business service" with the a en veness you expect from a bou que shop. Our ability to swi ly match buyers with sellers is one of the many reasons Upland Real Estate Group, Inc. is the na on's primary resource for the purchase or sale of net leased, credit investment proper es. Many investors and 1031 tax deferred exchange buyers have benefited from the experience and exper se of our team of net leased investment sales specialists. BENEFITS OF WORKING WITH UPLAND PROVEN SUCCESS RECORD Completed in excess of 600 net leased sales transac ons totaling over $1.7 billion Combined sales experience of over 55 years Specialized in NNN investment market for more than 19 years Upland s 1031 investment specialists have successfully completed net lease sales transac ons with tenants including, but not limited to: 7 Eleven Advance Auto Applebee s Arby s BJ s Wholesale Bridgestone/Firestone Buffalo Wild Wings Burger King Camping World CVS Pharmacy Dollar General Family Dollar Gander Mountain Goodwill Jack in the Box Jiffy Lube KinderCare Learning Center Kohl s McDonald s Na onal Tire & Ba ery O Reilly Auto Parts Petco Sherwin Williams Starbucks Taco Bell Tires Plus Tractor Supply Trader Joe s Valvoline Walgreens Na onally recognized CCIM accredited sales team Comprehensive and searchable online database Excellent reputa ons and credibility Online Le er of Intent forms Access to confiden al off market proper es Extensive referral network Prompt follow up and a en on to detail Ka e Serakos; Keith Sturm, CCIM; Amanda Leathers; Fallon Vannelli; Deb Vannelli, CCIM Not photographed: Chris Herkenhoff PAGE 12