OFFERING MEMORANDUM 2421 W Market St, Louisville, KY Family Dollar. Representative Photo

Transcription

1 OFFERING MEMORANDUM 2421 W Market St, Louisville, KY Family Dollar Representative Photo

2 EXCLUSIVELY LISTED BY ARON CLINE SVP & Sr. Director CHAD KURZ SVP & National Director KYLE MATTHEWS Broker of Record DIR (949) MOB (818) LIC # (CA) Chad.Kurz@matthews.com DIR (214) MOB (562) LIC # (CA) LIC # 77576

3 CONTENTS 4 INVESTMENT OVERVIEW Investment Highlights 6 FINANCIAL ANALYSIS Executive Summary Annualized Operating Data 8 TENANT OVERVIEW Family Dollar 10 PROPERTY OVERVIEW The Offering Site Description Parcel Map Tenant Map Regional Map 14 AREA OVERVIEW

4 Representative Photo INVESTMENT OVERVIEW 4 Family Dollar - Louisville, KY

5 Investment Highlights Brand new Family Dollar location with a fresh 10-year lease with six 5 year options 10% rental increases in the six 5 year options Dense infill location with over 230,000 residents within a 5 mile radius Close proximity to the University of Louisville, Louisville International Airport, downtown, and Churchill Downs (the home of the Kentucky Derby) Ideal location for a Family Dollar or dollar store concept to thrive Long term lease and a return of 7.25% Matthews Real Estate Investment Services 5

6 FINANCIAL ANALYSIS Representative Photo 6 Family Dollar - Louisville, KY

7 Family Dollar 2421 W Market St Louisville, KY List Price...$1,459,567 CAP Rate - Current % Gross Leasable Area... ± 11,172 SF Lot Size...± 0.62 Acres Year Built / Renovated / 2017 Annualized Operating Data Monthly Rent NOI Rent/SF Cap Rate Current - 3/31/2027 $8, $105, $ % Option 1 $9, $126, $ % Option 2 $10, $139, $ % Option 3 $11, $152, $ % Option 4 $12, $168, $ % Option 5 $14, $185, $ % Option 6 $15, $203, $ % *Family Dollar covers $10,000 in taxes per year with a 5.0% increase every year Operating Statement Gross Rent $114,939 Estimated taxes after sale $19, Estimated slippage for taxes $9, NOI $105, Tenant Summary Tenant Trade Name Family Dollar Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NN Roof, Structure, and Parking Lot Landlord Responsible Original Lease Term 10 Years Rent Commencement Date April 20, 2017 Lease Expiration Date March 31, 2017 Term Remaining on Lease 10 Years Increases 10% in Options Options Six (6), Five (5) Years Matthews Real Estate Investment Services 7

8 Representative Photo TENANT OVERVIEW 8 Family Dollar - Louisville, KY

9 Property Name Property Type Parent Company Trade Name Ownership Credit Rating (S&P) Revenue Net Income Family Dollar Net Leased Discount Store Dollar Tree, Inc. (NASDAQ: DLTR) Public BB+ $10.49 B $285 M No. of Locations ± 8,000 No. of Employees ± 60,000 Headquartered Matthews, North Carolina Website Year Founded 1986 TENANT OVERVIEW When it comes to getting value for everyday items for the entire family in an easy to shop, neighborhood location, Family Dollar is the best place to go. One of the nation s fastest growing retailers, Family Dollar offers a compelling assortment of merchandise for the whole family ranging from household cleaners to name brand foods, from health and beauty aids to toys, from apparel for every age to home fashions, all for everyday low prices. While shoppers can find many items at $1 or less, most items in the store are priced below $10, which makes shopping fun without stretching the family budget. GEOGRAPHIC OUTREACH Family Dollar serves families in more than 8,000 neighborhoods in 46 states. Texas is its largest market with 1,027 stores, followed by Florida with 584 stores. The Dollar Tree merger with Family Dollar now creates a combined organization with sales exceeding $19 billion annually with more than 13,600 stores across 48 states and five Canadian Provinces. The merger has allowed Family Dollar to grow offering broader, more compelling merchandise assortments, with greater values, to a wider array of customers. STRATEGY Family Dollar offers a compelling mix of merchandise for the whole family. Ranging from an expanded assortment of refrigerated and frozen foods and health and beauty items to home décor and seasonal items, Family Dollar offers the lowest possible price, the name brand and quality private-brand merchandise customers need and use every day. Matthews Real Estate Investment Services 9

10 PROPERTY OVERVIEW Representative Photo 10 Family Dollar - Louisville, KY

11 The Offering Parcel Map Property Name Property Address APN Family Dollar 2421 W Market St Louisville, KY K K K Site Description Number of Stories One Year Built / Renovated 1939 / 2017 Gross NLeasable Area (GLA) ± 11,172 SF Lot Size ± 0.62 Acres (27,007 SF) Type of Ownership Fee Simple Parking ± 51 Surface Spaces Parking Ratio 4.47 : 1,000 SF Landscaping Professional Topography Generally Level W Market St ± 11,000 ADT Matthews Real Estate Investment Services 11

12 Tenant Map 12 Family Dollar - Louisville, KY

13 Regional Map Point of Interest Kentucky Intl Convention Center Downtown Louisville University of Louisville Churchill Downs Kentucky State Fair Grounds Kentucky Kingdom Louisville International Airport Distance from Site 2 miles 2 miles 5 miles 5 miles 8 miles 8 miles 8 miles Matthews Real Estate Investment Services 13

14 AREA OVERVIEW 14 Family Dollar - Louisville, KY

15 Louisville, KY As the largest city in the Commonwealth of Kentucky and the 30th-most populous city in the United States, Louisville is sited beside the Falls of the Ohio, the only major obstruction to river traffic between the upper Ohio River and the Gulf of Mexico. Designated as a first-class city, Louisville has a prosperous river-town character with a distinct Southern accent. The city is known as the home of the Kentucky Derby, Kentucky Fried Chicken, the University of Louisville and its Louisville Cardinals athletic teams, Louisville Slugger baseball bats, and three of Kentucky s six Fortune 500 companies. Its main airport is also the site of United Parcel Service s worldwide air hub. Louisville s importance to the shipping industry continues today with the presence of the Worldport global air-freight hub for UPS at Louisville International Airport. Louisville s location at the crossroads of three major interstate highways also contributes to its modern-day strategic importance to the shipping and cargo industry. As of 2003, Louisville ranks as the seventhlargest inland port in the United States. Accolades Top 7 ranking of top tier metro areas with population of a million or more (Site Selection Magazine) Demographics Population 1 Mile 3 Mile 5 Mile 2022 Projection 15, , , Estimate 15, , , Census 15, , ,925 Growth % 0.81% 0.76% Households 1 Mile 3 Mile 5 Mile 2022 Projection 6,196 44, , Estimate 6,133 43, , Census 6,108 42,720 99, Census 6,669 44, ,452 Growth % 1.80% 1.63% Growth % 2.14% 1.91% Income 1 Mile 3 Mile 5 Mile 2017 Est. Average Household Income $28,792 $36,899 $47,004 Top 10 City for Jobs (Glassdoor) Top 10 city for homeownership (Bankrate) Top 14 places to visit in 2016 (USA Today) Matthews Real Estate Investment Services 15

16 Economy Louisville is home to dozens of companies and organizations across several industrial classifications. Its strategic location at the Falls of the Ohio, and its unique position in the central United States make it a practical location for the transfer of cargo along its route to other destinations. Louisville offers a high value proposition and allows businesses to succeed in a vibrant city. Louisville is a competitive, authentic, global city, home to UPS Worldport and a center for advanced manufacturing and logistics. Since 2014, Louisville has seen more than $8 billion in investments. Top County Employers Employer United Parcel Service Ford Motor Co. Norton Healthcare Humana Inc. Jewish Hospital Healthcare GE Consumer & Industrial Kroger Co. Tourism Louisville is many things - original, eclectic, dynamic, and energetic. Within its boundaries you ll find sports, history, nature, art, music, amazing food and lodging that take overnight stays and vacations to the next level. Tourism is on the rise in Louisville, up from 12.7 million visitors in 2011 to more than 20 million in Tourism is the state s second largest private employer with 36,000 jobs supported by the tourism industry in Jefferson County. Tourism generates $12.5 billion in state and local taxes annually. The economic impact of direct visitor spending in Jefferson County is $3.16 billion. 16 Family Dollar - Louisville, KY

17 University of Louisville The University of Louisville is a public university located just 5 miles from the subject property, University of Louisville has a total enrollment of 22,640 students and a total staff of 7,000. UofL is known for its Louisville Cardinals athletics, several of which are among the most successful in the country. Since 2005 the Cardinals have made appearances in the NCAA Division 1 men s basketball Final Four in 2005, 2012, and The university has three campuses in the Louisville area, the Bellknap, the Health Science, and the Shelby. Kentucky Derby The Kentucky Derby, presented by YUM! Brands is a top rank, Grade I stakes race for 3-year-old Thoroughbred races. The Kentucky Derby takes place on the first Saturday in May every year, and typically draws a crowd of 155,000 people. It is the longest continually held sporting event in America, and it is one of the most prestigious horse races in the world. The Derby is preceded by a two-week long Kentucky Derby Festival comprised of over 70 events, starting with the annual Thunder Over Louisville, the largest annual fireworks display in the nation. Matthews Real Estate Investment Services 17

18 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Family Dollar located at 2421 W Market St Louisille, KY ( Property ). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

19 OFFERING MEMORANDUM EXCLUSIVELY LISTED BY ARON CLINE SVP & Sr. Director CHAD KURZ SVP & National Director KYLE MATTHEWS Broker of Record DIR (949) MOB (818) LIC # (CA) Chad.Kurz@matthews.com DIR (214) MOB (562) LIC # (CA) LIC # Family Dollar 2421 W Market St, Louisville, KY 40212