CIRCLE K 15 YEAR LEASE EXTENSION 2303 MARKET ST, BLOOMINGTON, IL 61705

Transcription

1 CIRCLE K 15 YEAR LEASE EXTENSION 2303 MARKET ST, BLOOMINGTON, IL OFFERING MEMORANDUM R E T A I L A D V I S O R S

2 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Circle K located at 2303 Market St, Bloomington, IL ( Property ). It has been prepared by Matthews Retail Advisors. 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 Retail Advisors. 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 Retail Advisors 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 Retail Advisors 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. Matthews Retail Advisors

3 Table of Contents PRICING & FINANCIAL ANALYSIS Investment Highlights... 2 Executive Summary...3 Company Overview...4 Company Overview... 5 PROPERTY DESCRIPTION Physical Description...7 Bird s Eye... 8 Regional Map... 9 Tenant Map...10 DEMOGRAPHICS City Overview Bloomington, IL...12 Demographics Report...13 Aron Cline Partner EXCLUSIVELY LISTED BY: DIRECT MOBILE aron.cline@matthews.com License No Rahul Chhajed Associate DIRECT MOBILE rahul.chhajed@matthews. com License No Randy Olczyk Broker of Record License No R E T A I L A D V I S O R S

4 Matthews Retail Advisors

5 Pricing & Financial Analysis

6 Investment Highlights LONG TERM NNN LEASE INVESTMENT WITH A STRONG INVESTMENT GRADE NATIONAL TENANT Long Term lease providing long term passive income and security - Circle K 15 year absolute NNN lease (No landlord responsibilities) Tenant recently extended the lease showing long term commitment to the site (strong performing store) Excellent location in a strong market with affluent demographics Attractive 10 % rental increases every 5 years (including options) Strong hedge against inflation Circle K (Alimentation Couche- Tard) carries an investment grade S&P credit rating of BBB- Approximately 20 fueling pumps with Diesel for Trucks - Tax Advantage (15 year Accelerated Depreciation to shelter income). Buyer to check with CPA and verify. Agent makes no representations or warranties. STRONG INFILL LOCATION WITH AFFLUENT DEMOGRAPHICS Over 1,008 people within a 1-mile radius, with Average Household Income of $71,736 Over 34,215people within a 3-mile radius, with Average Household Income of $64,419 Over 94,496 people within a 5-mile radius, with Average Household Income of $65,637 Located about 4 miles South of Illinois State University which has an enrollment of approximately 20,000 students. Subject property is also located less than 10 miles from Cental Illinois Regional Airport and is situated across the street from McLean County Fairgrounds, Walmart, Tractor Supply, & Heartland Bank amongst others. P. 2 Matthews Retail Advisors OFFERING MEMORANDUM Circle K

7 Executive Summary CIRCLE K 2303 MARKET ST BLOOMINGTON, IL List Price... $3,626,000 CAP Rate - Current % Gross Leasable Area... ±3,200 SF Lot Size... ±1.76 Acres (76,665 SF) Year Built Annualized Operating Data Monthly Rent Annual Rent Increases CAP Rate Current - 11/30/2020 $16, $195, % 12/01/ /30/2025 $17, $215, % 5.94% 12/01/ /30/2030 $19, $236, % 6.53% Option Years 1-5 $21, $260, % 7.19% Option Years 6-10 $23, $286, % 7.91% Option Years $26, $315, % 8.70% Tenant Summary Tenant Trade Name Circle K - Alimentation Couche-Tard, Inc Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term August 30, 2005 Lease Commencement Date December 1, 2015 Rent Commencement Date December 1, 2015 Lease Expiration Date November 30, 2030 Term Remaining on Lease 15 years Increases 10% every 5 years Options 3, 5 Year Options Circle K OFFERING MEMORANDUM Matthews Retail Advisors P. 3

8 Company Overview Property Name Circle K Property Type Net Leased Convenience Store Parent Company Trade Name Alimentation Couche-Tard Ownership Private Credit Rating BBB- Rating Agency Standard & Poor s Revenue ±1 Billion Stock Symbol ATD Board TSX No. of Locations 10,000± Headquartered Tempe, Arizona Web Site Year Founded 1951 Since the 1980s, Circle K has been the largest company-owned convenience-store chain (i.e.of non-franchised stores) in the U.S. Circle K stores feature award-winning Premium Circle K Coffee, the Polar Pop cup, beer, snacks, candy, ATMs, Circle K Gift Cards, money orders, and much more. Some Circle K stores operate gasoline pumps selling Union 76-branded motor fuels; others sell Mobil, Marathon, ConocoPhillips, Irving, BP, Sunoco or Shell-branded fuel. The chain operates internationally, branching into Mexico and continents such as Asia. Since 2003, Circle K Stores, Inc. operates as a subsidiary of Alimentation Couche-Tard Inc. The Circle K brand re-entered the Canadian market in 2008, in connection with Couche-Tard s acquisition of the Circle K convenience store network. The chain is primarily located in the Southern, Western, Southwestern, and Midwestern United States. P. 4 Matthews Retail Advisors OFFERING MEMORANDUM Circle K

9 Company Overview For the sixth year in a row Couche-Tard s net earnings have increased amounting to $812.2 million for fiscal 2014, up 41.8% over fiscal Excluding non-recurring gains and costs,net earnings for fiscal 2014 would have been approximately $766.0 million or $1.35 per share on adiluted basis, an increase of 23.3% compared to EBITDA for fiscal 2014 was $1,640.2million, an increase of $264.6 million or 19.2% compared with fiscal 2013, including a contribution from acquisitions (net of acquisition costs recorded to earnings)of $153.0 million. The strong results for fiscal year 2014 can be attributed to the performance of both the convenience and fuel aspects of our business. Couche-Tard saw strong growthin same-store sales from merchandise this year.north American operation delivered an increase in samestore merchandise revenues of 3.8% in the U.S.and1.9% in Canada.This is attributable to effective merchandising strategies, investments in the enhancement of services and product offerings,and pricing strategies aimed at boosting in-store traffic,as well as food service in several markets. Alimentation Couche-Tard Inc. s shares are listed on thetoronto Stock Exchange (TSX) under the ticker symbols ATD.A and ATD.B. Couche- Tard Inc. has two classes of common shares: Class A Multiple VotingShares and Class B Subordinate Voting Shares.Class A is mainly held by founders and certain institutional investors.class B is normally the most traded since it is held by a greater number of shareholders.each Class A carries 10 votes and each Class B carries one vote. Alimentation Couche-Tard Inc. or simply Couche-Tard is one of the largest company-owned convenience store operators in the world with more than 13,000 stores across Canada, the United States, Europe, Mexico, Japan, China, and Indonesia.The corporation is based in Laval, Quebec, Canada, asuburb of Montreal. The company has over 6,000 stores in the United States, which are located in 41 states.the simple and ongoing renovations carried out in the stores make them easy to identify and they offer a broad selection of merchandise, as well as other services designed to appeal to the convenience needs of their customers. Circle K OFFERING MEMORANDUM Matthews Retail Advisors P. 5

10 Property Description P. 6 Matthews Retail Advisors OFFERING MEMORANDUM Circle K

11 Physical Description THE OFFERING Property Name... Circle K Property Address Market St Bloomington, IL Assessor s Parcel Number SITE DESCRIPTION Number of Stories...One Year Built Gross Leasable Area (GLA)... ±3,200 SF Lot Size... ±1.76 Acres (76,666 SF) Type of Ownership...Fee Simple Parking Surface Spaces Parking Ratio : 1,000 SF Landscaping...Professional Topography... Generally Level Circle K OFFERING MEMORANDUM Matthews Retail Advisors P. 7

12 Bird s Eye P. 8 Matthews Retail Advisors OFFERING MEMORANDUM Circle K

13 Regional Map Circle K OFFERING MEMORANDUM Matthews Retail Advisors P. 9

14 Tenant Map P. 10 Matthews Retail Advisors OFFERING MEMORANDUM Circle K

15 Demographics

16 City Overview Bloomington, IL Located less than 10 miles from Central Illinois Regional Airport Located ±4 miles South of Illinois State University (±20,000 students) Situated across the street from McLean County Fairgrounds, Walmart, Tractor Supply Co, and Heartland Bank National Retailers in the area include: Subway, Holiday Inn Express, Red Roof Inn, PNC bank, Quality Inn, and McDonalds The City of Bloomington is located in the heart of Central Illinois, approximately 125 miles southwest of Chicago, 155 miles northeast of St. Louis, and 64 miles northeast of Springfield, the State Capital. Bloomington is the County Seat of McLean County, the largest county in Illinois (approximately 762,240 acres). Bloomington (pop. 76,610) is a twin City with the Town of Normal (pop. 52,497). Interstates 39, 55 and 74 converge on Bloomington-Normal, as well as US Route 51 and State Route 9. The twin cities are also serviced by two major railroad lines and Amtrak, as well as air transportation at the Central Illinois Regional Airport, one of the fastest growing airports in the country, which services commuter, corporate, and private aircraft. Bloomington is located in one of the most productive agricultural areas in the nation, but the economy is diverse and well-balanced. In addition to the major manufacturers and industries, there are two universities, two hospitals, a convention center, one indoor mall, one outdoor mall, and many banks and Savings & Loan Associations located in Bloomington-Normal. The City of Bloomington is one of the fastest growing metropolitan areas in Illinois with and estimated 20.25% increase in population between 1986 and New construction continues to enhance residential, industrial and commercial growth. P. 12 Matthews Retail Advisors OFFERING MEMORANDUM Circle K

17 Demographics Report Population 3-Mile 5-Mile 10-Mile 2020 Projection 36,170 97, , Estimate 35,144 94, , Census 34,009 92, , Census 31,689 86, ,630 Growth % 6.75% 15.60% Growth % 2.66% 5.32% Growth % 2.47% 4.34% Households 2020 Projection 14,366 38,221 60, Estimate 13,872 37,048 58, Census 13,266 35,691 55, Census 12,301 32,925 47,047 Growth % 8.40% 17.32% Growth % 3.80% 5.62% Growth % 3.17% 4.55% Income $0 - $15, % 16.89% 12.14% $15,000 - $24, % 12.27% 9.39% $25,000 - $34, % 10.43% 8.65% $35,000 - $49, % 12.72% 11.32% $50,000 - $74, % 16.73% 16.98% $75,000 - $99, % 12.22% 13.62% $100,000 - $124, % 6.84% 8.82% $125,000 - $149, % 4.34% 6.40% $150,000 - $199, % 4.34% 6.83% $200,000 - $249, % 1.48% 2.49% $250,000 - $499, % 1.37% 2.60% $500, % 0.38% 0.77% 2015 Est. Average Household Income $61,808 $64,557 $81, Est. Median Household Income $45,359 $47,280 $62,525 Circle K OFFERING MEMORANDUM Matthews Retail Advisors P. 13

18 CIRCLE K 15 YEAR LEASE EXTENSION 2303 Market St Bloomington, IL OFFERING MEMORANDUM Aron Cline Partner DIRECT MOBILE aron.cline@matthews.com License No Rahul Chhajed Associate DIRECT MOBILE rahul.chhajed@matthews.com License No Matthews Retail Advisors 841 Apollo Street, Suite 150 El Segundo, CA Randy Olczyk Broker of Record License No