Walmart neighborhood market AND GAS - ground lease

Transcription

1 Walmart neighborhood market AND GAS - ground lease new 20-year NNN ground lease FLOURISHING HIGH-GROWTH ORLANDO SUBURB SWC of E Semoran Blvd and Balmy Beach Drive, Apopka, FL

2 NEW CONSTRUCTION IN FLOURISHING HIGH-GROWTH ORLANDO SUBURB, WITH TRAFFIC COUNTS OF OVER 51,000 VEHICLES PER DAY investment highlights PRICE: $9,444,444 CAP: 4.50% RENTABLE SF...273,991 SF Land (Ground Lease) LAND AREA AC CURRENT RENT... $425,000 YEAR BUILT The subject property is located in the community of Apopka, FL which is part of the Orlando MSA. The Neighborhood Market is Walmart s smaller grocery concept, which was launched in 1998 and provides a more convenient shopping experience for customers than the typical Walmart Supercenter. The Supercenters are about 160,000 square feet compared to the Neighborhood Market, which is typically 41,000 square feet and includes a drive-thru pharmacy and fueling station. Walmart s strategy, with nearly 700 Neighborhood Markets now operating, is to build hundreds more every year for the foreseeable future. Listing Team Contact Info RICK SANNER rsanner@capitalpacific.com (415) CA BRE# Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. In conjunction with FL Licensed Broker: John Park of Berkshire Realty john@berkshire-realty.com (404) WALMART NEIGHBORHOOD MARKET 2

3 core characteristics The combination of a high incomes, long lease, strong traffic counts, unsurpassed credit, solid area growth, and location within the Orlando MSA make this a very attractive investment opportunity. LEASE HIGHLIGHTS 20-year NNN ground lease There are sixteen (16) five (5) year options with 5% increases every five (5) years The lessee, Wal-Mart Stores East L.P., is a subsidiary of Wal-Mart Stores, Inc. (NYSE: WMT), one of the strongest retailers in the world OUTSTANDING RETAIL Located in the epicenter of a dense retail corridor with neighboring tenants including Marshalls, Ross, Hobby Lobby, Walgreens, Walmart, CVS. LOCATION HIGHLIGHTS Situated in a highly dense residential market: Nearly 80,000 residents in a 3-mile radius and over 190,000 residents within a 5-mile radius. The average household income exceeds $76,000 in a 3- mile radius. By 2020 the population is projected to grow an additional 6%. Located at the hard corner of East Semoran Blvd and Balmy Beach Drive. The property has outstanding exposure and entry in from both roads. The property boasts a combined traffic count of nearly 60,000 vehicles per day. The subject property is located in between Interstate 4 and Highway 441, providing excellent access from two major Florida thoroughfares. The city of Apopka has several large scale commercial and residential developments underway contributing to grow in all directions. (see page 12 for more details) #1 retailer in the world 190,000+ Residents within a 5-mile radius Average incomes exceed $76k within a 3-mile radius WALMART NEIGHBORHOOD MARKET 3

4 aerial LOCATED ON E SEMORAN BLVD, BENEFITTING FROM TRAFFIC COUNTS IN EXCESS OF 51,500 VPD 434 WEKIVA RIVERWALK WEKIVA GOLF CLUB ALTAMONTE MALL N Wekiva Springs Road Forest City Elementary Lake Brantley High School OAK GROVE SHOPPES WEKIVA SQUARE RENAISSANCE CENTRE Forest Lake Academy E Semoran Boulevard S Orange Blossom Trail Lovell Elementary PIEDMONT PLAZA 51,500 DAILY WEST TOWN CORNERS APOPKA LAND ALTAMONTE CROSSING 436 MARKETPLACE AT ALTAMONTE ALTAMONTE SPRINGS Teague Middle School Lake Orienta Elementary Maitland Boulevard Riverside Elementary ORLANDO Hiawassee Road 441 Lockhart Middle School Lake Sybelia Elementary WALMART NEIGHBORHOOD MARKET 4

5 income & expense PRICE $9,444,444 Price Per Square Foot: $34.47 Capitalization Rate: 4.50% Total Rentable Area (SF of Land 1 ): 273,991 Lot Size (AC): 6.29 STABILIZED INCOME Per Square Foot Scheduled Rent $1.55 $425,000 Effective Gross Income $1.55 $425,000 LESS Per Square Foot Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING INCOME $425,000 1 The combined buildings within the premises are 42,706 SF This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. WALMART NEIGHBORHOOD MARKET 5

6 rent roll TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. of Land Base Term Current Rent Monthly Rent Yearly Rent Monthly Rent/FT Walmart Neighborhood Market 1 236,530 10/01/17 09/30/37 $350,000 $29,167 $350,000 $0.12 $1.48 Walmart Neighborhood Gas 2 37,461 10/01/17 09/30/37 $75,000 $6,250 $75,000 $0.17 $2.00 Options: See note Below Totals: 273,991 $425,000 $35,417 $425,000 $0.13 $1.55 There are sixteen (16) five (5) year options with 5% increases every five (5) years. 1 Walmart Neighborhood Market building within the premises is 41,952 SF 2 Walmart Gas building within the premises is 754 SF Yearly Rent/FT This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. WALMART NEIGHBORHOOD MARKET 6

7 site plan MONUMENT SIGN ,500 DAILY E Semoran Boulevard SITE PLAN KEY LOT 3 PARCEL OUTLINE: RENTABLE AREA: 273,991 SF INGRESS/EGRESS: LOT 2 Balmy Beach Drive 7,145 DAILY MONUMENT SIGN PICKUP AREA LOT 4 LOT 5 EXISTING PRIVATE ROAD This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. WALMART NEIGHBORHOOD MARKET 7

8 About Walmart 11,000+ ACROSS 27 COUNTRIES TOTAL LOCATIONS 1ST LARGEST EMPLOYER IN THE WORLD #1 RETAILER IN THE WORLD AA INVESTMENT GRADE CREDIT STANDARD & POOR S 2.2 Million APPROXIMATE NUMBER OF EMPLOYEES WALMART NEIGHBORHOOD MARKET 8

9 tenant overview [ REPRESENTATIVE PHOTOs ] ABOUT WALMART NEIGHBORHOOD MARKET Walmart Neighborhood Market is a chain of grocery stores launched by Walmart in There are over 645 Neighborhood Markets in the United States featuring a wide variety of products, including fresh produce, deli foods, fresh meat and dairy items, health and beauty aids, one-hour photo and traditional photo developing services, drive-through pharmacies, stationery and paper goods, pet supplies, and household chemicals. Walmart Neighborhood Markets were originally designed to create easier parking, less crowded aisles and quicker checkouts than Walmart Supercenters. TOTAL LOCATIONS 11, FISCAL REVENUE $485.7 BILLION GROSS PROFIT $120.6 BILLION AA Investment Grade Standard & Poor s Walmart is the world s biggest retailer and also the largest employer with over 2.2 million full- and part-time workers worldwid (more than 1.4 million just in the U.S.). It is a feared giant for its sheer size and pricing power. The company has $486.7 billion in total revenues and 11,302 stores under 72 banners in 27 countries. There are also ecommerce Websites in 11 countries. It is no wonder Walmart has become the undisputed king of retailing and is ranked #1 in Fortune 500 Companies. walmart STORES, INC. WAS RANKED #1 on the FORTUNE 500 list (2013 & 2014) AND #1 IN INTERBRAND S MOST VALUABLE U.S. RETAIL BRANDS list WALMART NEIGHBORHOOD MARKET 9

10 walmart in the news WAL-MART PROFIT BEATS EXPECTATIONS; STOCK JUMPS BUSINESS THU MAY 19, :50AM EDT BY NATHAN LAYNE Wal-Mart Stores Inc (WMT.N) on Thursday reported a higher-than-expected quarterly profit as increased drug prices and solid demand for basic apparel items boosted sales, and its shares jumped more than 9 percent. The discount retailer s performance bucked a string of weak results from competitors. On Wednesday, rival Target Corp (TGT.N), which caters to a higherincome customer than Wal-Mart, gave a cautious outlook and reported a lowerthan-expected rise in quarterly sales due to unseasonable weather and soft demand. It looks like the middle-to-higher-income customers have cut back, but the lower-income customer is spending, said Edward Jones analyst Brian Yarbrough. While Target cited sluggish demand for clothing and electronics, Wal-Mart said its sales of those products picked up. Even the mild weather provided a boost by lowering the cost of heating the company s more than 5,000 U.S. stores. The upbeat results also suggest Wal-Mart may be benefiting from a two-year, $2.7 billion investment to increase entry-level wages and train its workforce, and a campaign to make its stores cleaner and checkouts faster. Store visits increased 1.5 percent in the first quarter ended on April 29. Greg Foran, who heads the U.S. division, said dozens of improvements, like cleaner parking lots, better presentation of fresh food and inventory management changes that led to more fully stocked shelves, were boosting demand. As you gradually improve on these 100-plus aspects, then the customer gets a better experience that s reflected in them coming to visit you more often and (putting) one extra item in the trolley, Foran said on a call with reporters. We still lag many of our competitors in terms of shopping experience, and frankly we should never rest. LOWER EARNINGS Net income attributable to Wal-Mart fell to $3.08 billion from $3.34 billion a year earlier, reflecting the costs of boosting the company s minimum wage to $10 an hour and investing in automated warehouses dedicated to filling online orders. Earnings per share of 98 cents beat the analysts average estimate of 88 cents, according to Thomson Reuters I/B/E/S. Sales at U.S. stores open at least a year rose 1.0 percent, excluding fuel price fluctuations. That marked the seventh straight quarterly rise and was stronger than market expectations for an increase of 0.5 percent, according to research firm Consensus Metrix. For the current quarter, Wal-Mart said it expected an increase of about 1.0 percent in U.S. same-store sales. It forecast earnings per share of 95 cents to $1.08, against market expectations of 98 cents. First-quarter revenue rose 0.9 percent to $115.9 billion despite a $3.5 billion hit from a stronger dollar, which reduces the value of overseas sales. International sales fell 7.2 percent to $28.1 billion, although the division s operating profit rose 8.8 percent to $1.2 billion, helped by cost cuts... VIEW FULL ARTICLE

11 demographics & map WALMART NEIGHBORHOOD MARKET LOCATION POPULATION 1-Mile 3-Mile 5-Mile ,693 77, , ,076 79, , ,732 83, ,880 51,500 DAILY E SEMORAN BLVD 2015 HOUSEHOLD INCOMES 1-Mile 3-Mile 5-Mile Average $75,104 $76,680 $67,750 REGIONAL MAP TOP EMPLOYERS IN ORANGE COUNTY Walt Disney World Resort Adventist Health Systems - Florida Hospital Apopka Universal Orlando Orlando Health APOPKA 26 MIN 20 MILES DOWNTOWN ORLANDO WALMART NEIGHBORHOOD MARKET 11

12 apopka, FL Apopka is a city in Orange County, Florida with a population of 49,458 as of the 2016 U.S. Census. It is part of the Orlando-Kissimmee-Sanford Metropolitan Statistical Area, also known as Greater Orlando. Apopka is home to Adventist Health System Florida Hospital Apopka which broke ground in 2015 on a 200+ million dollar expansion of its campus. The campus is located 3 miles away from the subject property and is slated to be complete in Apopka s steadily growing industry sectors include office, professional uses and retail. This increasing demand will facilitate the development of the Apopka City Center. The Apopka City Center, located 2 miles west of the subject property, is a 180-acre mixed-use development that is set to break ground. The anticipated $138,000,000 investment into the city of Apopka will include upscale dining, small retail shops, a regional movie theater, professional offices and multi-story hotel. For more information on Apopka City Center please visit: [ downtown orlando] WALMART NEIGHBORHOOD MARKET 12

13 RICK SANNER (415) CA BRE# In conjunction with FL Licensed Broker: John Park of Berkshire Realty (404) Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. CHRIS KOSTANECKI CHRIS PETERS DAVE LUCAS ZANDY SMITH ZEB RIPPLE JOHN ANDREINI JOE CACCAMO JACK NAVARRA [ Copyright 2016 Capital Pacific ]