Latrobe, Pennsylvania. ALDI NNN Ground Lease

Transcription

1 ALDI NNN Ground Lease Latrobe, Pennsylvania

2 Confidentiality Agreement The information contained in this Offering Memorandum is strictly confidential and solely furnished to establish preliminary interest from prospective buyers. Summaries of any documents and information are not intended to be comprehensive and no warranty or representation, expressed or implied, is made by the Owner as to the accuracy or completeness of the information contained in this Offering Memorandum. Potential buyers should conduct a thorough due diligence investigation in order to verify all of the information included herein. The Owner reserves the right, at its sole discretion, to reject any or all expressions of interest or offers and shall not have any legal commitment to any interested party reviewing this Offering Memorandum. This Offering Memorandum is the property of the Owner and may only be used by the party receiving this document. Furthermore, no portion of the Offering Memorandum shall be photocopied or reproduced without prior authorization.

3 Table of Contents Overview 2-4 Tenant & Lease Information...5 Maps & Trade Area Demographics...8 Financial Analysis...9 Contacts...10

4 Overview Aldi NNN Ground Lease US Route 0 & Sharky s Drive Latrobe, PA Overview Price $1,680,000 Cap Rate 5.0% Lot Size, GLA ± 1.68 acres, ± 17,000 square feet Zoning B-, Regional Commercial District Year Built 2009 Lease Expiration June 2029 (15 years remaining) Lease Type Ground lease Current Annual Rent $84,000 2

5 Overview Investment Highlights Well performing grocery in the regional retail corridor of US Route 0 in Latrobe, PA Income growth through contractual rent increases (5% increases every 5 years) NNN ground lease 15 years remain; original term expires in 2029 Current annual rent of $84,000 Recently constructed store (2009) Property is available free and clear of debt This offering presents the opportunity to acquire a recently constructed triple net Aldi ground lease with approximately 15 years of remaining term. The grocery store is located in Latrobe, Pennsylvania approximately 0 miles east of Pittsburgh. The grocery store is situated within a newly constructed shopping center which fronts the highly-trafficked US Route 0 (over 27,000 vehicles per day). The center is served by three access points including a signalized intersection on US Route 0 and is co-anchored by Walgreens, Verizon Wireless, a regional bank pad, and two local restaurants. Area residents benefit from a dense retail corridor and several employment centers, such as nearby St. Vincent College, Arnold Palmer Regional Airport, and National Center for Defense. The Aldi grocery store was constructed in 2009 and is positioned to meet the grocery needs of value oriented consumers in the area. Aldi currently pays $84,000 per year in rent in addition to 100% of the CAM and Real Estate Tax expenses associated with its subdivided lot. The ground lease also provides the owner long-term income growth through contractual rent increases.

6 Overview Site Plan & Aerial 17,000 square foot grocery Conveniently located NNN ground lease Current annual rent of $84,000 Site Plan Aerial 4

7 Overview Tenant & Lease Information Aldi NNN Ground Lease Tenant & Lease Information Lease Information GLA ~ 17,000 square feet Annual Rent $84,000 Rent Commencement July 2009 Lease Expiration 15 years remaining (June 2029) Options Remaining Reimbursement Type Rent Escalations Tenant Two (2), five (5) year options NNN 5% every 5 years Aldi, Inc. Aldi, Inc. is the U.S. subsidiary of Aldi Group, which is headquartered in Germany, and focuses on being the nation s low-price grocery leader. Aldi, Inc. commenced its U.S. operations in Iowa in 1976 and since then has grown substantially into a multi-billion dollar business which operates over 1,00 stores in 2 states. 5

8 Overview Maps Regional Map Local Map 6

9 Overview Trade Area Dense retail corridor located along US Route 0 Aldi serves the neighborhood surrounding the site including single family homes and St. Vincent College The Latrobe retail trade area continues to thrive and is being targeted by several national retailers Latrobe is located less than an hour away from Pittsburgh 7

10 Overview Demographics Key Statistics Average household income within miles of the Aldi grocery store in Latrobe, PA is above national levels The unemployment rate in the Latrobe trade area for 201 was less than 6%, below the national average of 6.% Approximately 57% of the population is years old The population is expected to grow 0.5% by 2018 Population Year miles 5 miles 10 miles ,486 4, , ,809 5,87 106, ,61 6,10 109,410 Households Year miles 5 miles 10 miles ,876 14,0 4, ,02 14,567 44, ,272 14,968 45,95 Average Household Income Year miles 5 miles 10 miles 2010 $51,290 $58,14 $58, $54,64 $62,456 $62, $58,124 $66,462 $66,451 8

11 Overview Financial Analysis - Projections Base rent 80,000 82,000 84,000 84,000 84,000 84,000 86,100 88,200 88,200 88,200 Recovered CAM 16,551 1,627 12,91 1,129 1,50 12,18 11,717 11,951 12,190 12,44 Recovered RE Taxes 2,64 2,77,600,600 4,200 4,200 5,910 5,910 5,910 7,706 Total revenue 128, ,6 10,51 10,729 11,550 10,8 1,727 16,061 16,00 18,40 CAM 16,551 1,627 12,91 1,129 1,50 12,18 11,717 11,951 12,190 12,44 RE Taxes 2,64 2,77,600,600 4,200 4,200 5,910 5,910 5,910 7,706 Total expenses 48,915 46,6 46,51 46,729 47,550 46,8 47,627 47,861 48,100 50,140 Net Operating Income 80,000 82,000 84,000 84,000 84,000 84,000 86,100 88,200 88,200 88,200 * CAM expenses includes a property management fee amount, which Aldi reimburses 100% of its share. 9

12 Overview Contacts Dara Hewat Partner Red Run Blvd., Suite 10 Owings Mills, MD Direct Line: (410) Heberto Alanis Associate Red Rung Blvd., Suite 10 Owings Mills, MD Direct Line: (410)