Tractor Supply Company

Transcription

1 Representative Photo Offering Memorandum Tractor Supply Company 1575 W. US Highway 25E Barbourville, KY 40906

2 Confidential Disclaimer This Confidential Offering Memorandum ( COM ) is provided by Stan Johnson Company ( SJC ), solely for your consideration of the opportunity to acquire the commercial property described herein (the Property ). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC. This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC. The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title. BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the Information ), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such party s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief. Offered Exclusively by Gill Warner, CCIM Senior Director gwarner@stanjohnsonco.com P: Sharon Jordan Senior Analyst sharon@stanjohnsonco.com P: In association with John Zimmerman KY Lic. #72058 Stan Johnson Company 6120 South Yale Avenue Suite 300 Tulsa, Oklahoma P: stanjohnsonco.com

3 Purchase Price: $3,387,097 Cap Rate: Contact Broker The Offering Investment Highlights Stan Johnson Company is pleased to offer for sale to qualified investors the opportunity to acquire a fee simple interest in the land and building of a new Tractor Supply Company-leased building located in Barbourville, KY. The Subject Property consists of approximately 4.42 acres and a 19,097-square-foot building that is currently under construction and scheduled to be completed approximately October Tractor Supply Company is operating under a brand new NN fifteen (15) year lease. The Subject Property features five percent (5%) rent increases every 5 years during the lease term and in each of the four (4), five (5) year renewal options. The Subject Property is located in Barbourville, KY, which is the county seat of Knox County. The property is located on Cumberland GA Parkway (Highway 25E) in a large retail hub that includes several major tenants including Walmart Supercenter, Walgreens, Rite Aid, Hibbett Sports, IGA, O Reilly Auto Parts, Save a Lot, and various other retail and well known restaurants. Tractor Supply Company (NASDAQ: TSCO) operates rural lifestyle retail stores in the United States. The company operates over 1,600 retail stores in 49 states and is headquartered in Brentwood, TN. The company focuses on supplying the lifestyle needs of recreational farmers and ranchers. The company also serves the maintenance needs of those who enjoy the rural lifestyle, as well as tradesmen and small businesses. As of December 31, 2016, Tractor Supply Company has total revenues in excess of $6.77 billion, net income in excess of $437 million, and a net worth in excess of $1.45 billion. 100% Leased and Guaranteed by Tractor Supply Company (NASDAQ: TSCO) Desirable Long-Term Lease The new fifteen (15) year lease term will commence approximately October Attractive Rental Increases - The Subject Property lease provides for 5% rental increases every five (5) years and in each of the four (4), five (5) year renewal option periods. Highly Passive NN Lease Structure Highly passive lease structure with landlord responsibility limited to roof, structure, and parking. Build-to-Suit Construction The Subject Property was built specifically for Tractor Supply Company, and is institutional-quality construction. Good Market Location The Subject Property enjoys a strong location on Cumberland GA Parkway (Highway 25E), a major retail corridor, with numerous well-known retailers and restaurants. Tractor Supply Company Barbourville, KY 3

4 Tenant Overview Tenant Profile Tractor Supply Company (NASDAQ: TSCO) is the largest operator of retail farm and ranch stores in the United States. Its stores provide a selection of merchandise, including equine, livestock, pet, and animal products (43% of sales); hardware, truck, towing, and tool products (23% of sales); seasonal products comprising lawn and garden items (20% of sales); power equipment; maintenance products for agricultural and rural use (5% of sales); and work/recreational clothing and footwear products (9% of sales). The company was founded in 1938 and is based in Brentwood, Tennessee. The company operates over 1,600 retail stores in 49 states and employs more than 24,000 team members. The company focuses on supplying the lifestyle needs of recreational farmers and ranchers. The company also serves the maintenance needs of those who enjoy the rural lifestyle, as well as tradesmen and small businesses. Tractor Supply stores are primarily located in rural areas and the outlying suburbs of major cities. The typical Tractor Supply store has 15,000-24,000 square feet of inside selling space with a similar amount of outside space used to display agricultural fencing, livestock equipment and horse stalls. As of December 31, 2016, Tractor Supply Company had total revenues in excess of $6.77 billion, net income in excess of $437 million; and, as of April 4, 2017, a net worth in excess of $1.45 billion. Parent Company: Stock Symbol: Exchange: Total Revenue: as of 12/31/2016 Net Income: as of 12/31/2016 Net Worth: as of 4/4/2017 Market Capitalization: as of 4/5/2017 Tenant Business: Tractor Supply Co. TSCO NASDAQ $6.77 billion $437 million $1.45 billion $9.10 billion Retail Founded: 1938 Headquarters: Brentwood, Tennessee Website: Tractor Supply Company Barbourville, KY 4 Representative Photos

5 Lease Abstract Tenant/Guarantor Tractor Supply Company Property Address Building SF 1575 W. US Highway 25E Barbourville, Knox County, KY 19,097 SF (approx.) + 15,000 SF (approx.) outdoor display area Louisville Lexington Yr. Constructed 2017-Under construction scheduled to be complete October 2017 Acreage 4.42 Acres (approximate) Rent Commencement October 2017 (Estimated) London Term Expiration October 2032 (Estimated) Primary Term Options Fifteen (15) years Four (4), Five (5) year renewal options Kentucky Tennessee Rent Increases 5% every Five (5) years Nashville Expenses ROFR/Offer NN Lease - Landlord is responsible for roof, structure, parking lot and liability insurance. Tenant is responsible for taxes, liability and property insurance, CAM and HVAC except for last 2 years of lease term. Yes; fifteen (15) days Knoxville Chattanooga N Tractor Supply Company Barbourville, KY 5

6 Site Plan HENRY MARTIN DR 4.42 ACRES N CUMBERLAND GAP PKWY Tractor Supply Company Barbourville, KY 6

7 Union College, Barbourville, KY Dr. Thomas Walker State Historic Site, Barbourville, KY Location Overview Barbourville is a home rule-class city and is the county seat of Knox County, Kentucky. The city is home to Union College and the Appalachian Children's Home. Barbourville hosts many events such as the annual Daniel Boone Festival featuring outdoor concerts, carnival games, a parade and many other attractions. The Southern and Eastern Kentucky Tourism Development Association also sponsors a Springtime Redbud Festival every year at Union College. Knox County is located near the Southeastern corner of Kentucky and is included in the London, Kentucky micropolitan statistical area. Knox County s per capita income rate is 106% of the state average and the unemployment level is one of the best in the state. Vincennes and Knox County s cost of living index is 79.8% compared to the US average. All the key cost of living factors such as food, housing, utilities, transportation, and health are all well below the US average. London, Kentucky is the seat of Laurel County, Kentucky and is recognized as one of the country's micropolitan statistical areas. Located about 25 miles Northwest of Barbourville, London is a small city that serves as an economic hub for the surrounding area. London's location and relatively low cost of living have helped make the city a "Vacation Crossroads" and a center for business, shopping, entertainment, education and health-care. London has a sound base of industrial and retail business and exemplary schools. Moderately priced housing, low utility costs, a moderate climate and proximity to huge forests, beautiful lakes, tourist attractions and the metropolitan areas of Lexington and Knoxville combine to make London a very attractive location for visitors, new residents, and an ideal location for businesses.

8 STIVERS AQUATIC CENTER BARBOURVILLE WATER PARK UNION COLLEGE 1,139 STUDENTS BARBOURVILLE HIGH SCHOOL 718 STUDENTS CUMBERLAND GAP PKWY (+/- 22,217 VPD) JESSE D. LAY ELEMENTARY SCHOOL 396 STUDENTS APPALACHIAN CHILDREN'S HOME KNOX COUNTY MIDDLE SCHOOL 503 STUDENTS PARKWAY PLAZA KNOX CENTRAL HIGH SCHOOL 922 STUDENTS MCDONALD'S DR. THOMAS WALKER STATE PARK CENTRAL ELEMENTARY SCHOOL 490 STUDENTS N

9 Demographics 1575 W. US Highway 25E Barbourville, KY mi. 0-5 mi mi. Population 2017 Population 8,683 13,756 26, Population 8,886 14,139 27, Annual Rate 0.64% 0.70% 0.65% Annual Rate 0.46% 0.55% 0.50% Households 2017 Total Households 3,408 5,387 10, Total Households 3,475 5,521 10, Annual Rate 0.49% 0.58% 0.56% Annual Rate 0.39% 0.49% 0.45% Average Household Income 2017 Average Household Income $44,864 $45,052 $42, Average Household Income $51,455 $51,573 $48, Annual Rate 2.78% 2.74% 2.52% N Tractor Supply Company Barbourville, KY 9

10 Offered Exclusively by Gill Warner, CCIM Senior Director P: going beyond Sharon Jordan Senior Analyst P: In association with John Zimmerman KY Lic. #72058 Stan Johnson Company 6120 South Yale Avenue Suite 300 Tulsa, Oklahoma P: stanjohnsonco.com The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change Tractor of Supply price or Company conditions, Barbourville, or withdrawal KY 10 without notices.