2-UNIT PORTFOLIO NEBRASKA IOWA OFFERING MEMORANDUM

Transcription

1 2-UNIT PORTFOLIO NEBRASKA IOWA OFFERING MEMORANDUM 1

2 TABLE OF EXECUTIVE OVERVIEW CONTENTS 03 FINANCIAL OVERVIEW 06 TENANT OVERVIEW 07 AREA OVERVIEWS LISTED BY: KYLE MATTHEWS Chairman & CEO Direct Mobile License No (NE) 2 BROKER OF RECORD Adam Marek License No. S (IA)

3 FINANCIAL OVERVIEW PRICING BREAKDOWN Address Year Built SF Acres Lease Structure Term Remaining List Price List Cap 1010 S 189th St Elkhorn, NE , NNN 9 Years $2,042, % 2110 Guthrie Ave Des Moines, IA , NNN Years $3,716, % Portfolio Pricing $5,758,827 3

4 INVESTMENT HIGHLIGHTS 1010 S 189TH ST ELKHORN, NE Sale Price $2,042,778 Cap Rate 6.48% GLA ±2,746 SF Lot (Acres) ±1.18 AC (51,328 SF) Year Built 2006 APN Property Ideal 1031 Exchange Property 9 years remaining on Absolute NNN Lease Strong Inflationary Hedge 1.50% Annual Rental Increases High-Quality Construction Property was built in 2006 for Kum & Go Location Affluent Market - Average Income within a 1-mile radius is over $170,000 Very Strong Population Growth 21.65% population growth within a 1-mile radius over the past 7 years 7.17% expected in the next 5 years Dense Demographics - Population in excess of 145,000 within a 5-mile radius City Hub Location the site is located up the street from the city s main retail hub, that features national tenants such as Target, Lowe s, Hy-Vee, & Walmart, amongst many others Tenant Kum & Go is one of the largest convenience store operators in the country with over 400 stores in 11 states They are ranked as the 197th largest private company in the United States with Revenues in Excess of $2 Billion The company has been ranked as one of the fastest growing privately held companies in the country by Inc.com ANNUALIZED OPERATING DATA Lease Commence Monthly Rent Annual Rent Cap Rate Base $11, $132, % Base $11, $134, % Base $11, $136, % Base $11, $138, % Base $11, $140, % Base $11, $142, % Base $12, $144, % Base $12, $146, % Base $12, $149, % Option $12, $151, % Option $13, $163, % Option $14, $175, % Option $15, $189, % TENANT SUMMARY 4 Parking Spaces ±20 Surface Spaces Tenant Lease Type Type of Ownership Lease Guarantor Roof and Structure Original Lease Term Kum & Go NNN Fee Simple Corporate Tenant Responsible 20 Years Lease Commencement Date 3/13/07 Rent Commencement Date 3/13/07 Lease Expiration Date 3/13/27 Term Remaining on Lease 9 Years Increases 1.50% Annual Rental Increases Options Four, 5-Year Options

5 2110 GUTHRIE AVE DES MOINES, IA Sale Price $3,716,049 Cap Rate 6.48% GLA ±5,118 SF Lot (Acres) ±2.92 AC (127,195 SF) Year Built 2008 INVESTMENT HIGHLIGHTS Property Ideal 1031 Exchange Property years remaining on Absolute NNN Lease Strong Inflationary Hedge 7.50% Annual Rental Increases Every 5 Years High-Quality Construction Property was built in 2007 for Kum & Go Location Strong Population Growth 1.41% population growth within a 1-mile radius over the past 7 years 6.38% expected in the next 5 years Dense Demographics - Population in excess of 175,000 within a 5-mile radius Central Location Property is located in the main industrial and retail corridor of Des Moines, which features national tenants such as Grainger, O Reilly s, Applied Industrial Technologies, Airgas, Unisource, ABC Supply, Doll Distributing, and Armark amongst many others Tenant Kum & Go is one of the largest convenience store operators in the country with over 400 stores in 11 states They are ranked as the 197th largest private company in the United States with Revenues in Excess of $2 Billion The company has been ranked as one of the fastest growing privately held companies in the country by Inc.com ANNUALIZED OPERATING DATA Lease Commence Monthly Rent Annual Rent Cap Rate Base $20, $240, % Base $21, $256, % Base $22, $272, % Option $24, $290, % Option $25, $310, % Option $27, $330, % Option $29, $352, % APN TENANT SUMMARY Parking Spaces ±24 Surface Spaces Tenant Lease Type Type of Ownership Lease Guarantor Roof and Structure Kum & Go NNN Fee Simple Corporate Tenant Responsible Lease Commencement Date 12/23/09 Rent Commencement Date 12/23/09 Lease Expiration Date 12/23/29 Term Remaining on Lease Years Increases 7.50% Rental Increase Every 5 Years Original Lease Term 20 Years Options Four, 5-Year Options 5

6 TENANT OVERVIEW KUM & GO Kum & Go was founded in Hampton, IA in They pride themselves on being a unique convenience retailer. They have everything their customers need from quality gasoline products, a large drink and snack section, and fresh food made daily. The key point that has separated themselves from other convenience retailers in the region is their belief in customer service. The companies core values are passion, integrity, teamwork, caring, and excellence. This radiates throughout every Kum & Go. The company focuses on hiring people who are passionate about customer service to ensure their customers receive the best service every time. Today, Kum & Go is the fifth largest privately held, company-operated convenience store chain in the United States. They have spread across 11 states in the Midwest: Iowa, Missouri, Arkansas, Oklahoma, Nebraska, South Dakota, Minnesota, Montana, Colorado, and Wyoming. The company has expanded rapidly in recent years and are constantly opening new stores. REVENUE $2.10 B NO. OF LOCATIONS ±430 NO. OF EMPLOYEES ±4,700 HEADQUARTERED West Des Moines, IA YEAR FOUNDED 1959 WEBSITE 6

7 AREA OVERVIEWS OMAHA, NE Omaha is the largest city in the state of Nebraska and in the Midwestern United States on the Missouri River, about 10 miles north of the mouth of the Platte River. Omaha is the anchor of the Omaha-Council Bluffs metropolitan area, which includes Council Bluffs, Iowa, across the Missouri River from Omaha. ECONOMY 2018 POPULATION 426,042 Today, Omaha is the home to the headquarters of four Fortune 500 companies: mega-conglomerate Berkshire Hathaway; one of the world s largest construction companies, Kiewit Corporation; insurance and financial firm Mutual of Omaha; and the United States largest railroad operator, Union Pacific Corporation. Berkshire Hathaway is headed by local investor Warren Buffett, one of the richest people in the world, according to a decade s worth of Forbes Magazine rankings, some of which have ranked him as high as No YEAR POPULATION GROWTH 3.65% The modern economy of Omaha is diverse and built on skilled knowledge jobs. Tourism in Omaha benefits the city s economy greatly, with the annual College World Series and Triple Crown SlumpBuster providing important revenue and the city s Henry Doorly Zoo serving as the top attraction in Nebraska as well as being named the best zoo in the world by Trip Advisor in Omaha hosted the U.S. Olympic swim trials in 2008, 2012, 2016, and will host them again in TOURIST ATTRACTIONS 2018 AVERAGE HOUSEHOLD INCOME HENRY DOORLY ZOO COLLEGE WORLD SERIES THE OLD MARKET $75,748 7

8 DES MOINES, IA Contiguous with its role as the state capital, Des Moines is also the cultural and economic heart of Iowa. The bustling metropolis is home to more than 600,000 people, offering a reasonable cost of living and friendly neighborhoods. The capital city is a hub of government action, business activity, and cultural affairs. An assortment of parks, museums, zoos, gardens and historic attractions enrich the city s burgeoning cultural scene. Meanwhile, there are opportunities for higher education through Drake University and Grand View University and Simpson College s and William Penn University s local satellite facilities. DES MOINES DEMOGRAPHICS 2018 POPULATION 217, YEAR POPULATION GROWTH 4.13% 2018 AVERAGE HOUSEHOLD INCOME $64,831 ECONOMY Des Moines is a major financial and insurance center where economic growth has outperformed that of the United States since 2010 by 68%. With a robust and diverse economy, the city has a noticeably lower unemployment rate than the nation. Furthermore, business costs are 18% below the national average, attracting both major corporations and startups to the Des Moines metro area. Other significant industries in the area include government, advanced manufacturing, logistics, healthcare services, trade, agribusiness, and biosciences. Iowa s world-renowned research institutions have placed its bioscience companies at the forefront of innovation in plant, animal, and human bioscience industries. Sited on a quarter of the earth s richest topsoil, the Cultivation Corridor contains Des Moines cluster of bioscience companies. Attributed to its central location, Cultivation Corridor possesses the nation s most sophisticated agro-bioscience-related distribution network. This area is instrumental to Iowa s success as the top global producer of corn, pork, and eggs. COMPANIES HEADQUARTERED IN DES MOINES PRINCIPAL FINANCIAL GROUP MEREDITH CORP RUAN TRANSPORTATION EMC INSURANCE WELLMARK BLUE CROSS BLUE SHIELD 8

9 CONFIDENTIALITY AGREEMENT & DISCLAIMER This Offering Memorandum contains select information pertaining to the business and affairs of Kum & Go Portfolio ( 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 detrimentalto 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. 9

10 2-UNIT PORTFOLIO NEBRASKA IOWA OFFERING MEMORANDUM LISTED BY: KYLE MATTHEWS Chairman & CEO Direct Mobile License No (NE) 10 BROKER OF RECORD Adam Marek License No. S (IA)