EXCLUSIVE OFFERING $1,890,000 7-Eleven, INC.

Transcription

1 SUBJECT PROPERTY EXCLUSIVE OFFERING $1,890, JOE CAPUTO BOB MOORHEAD RUSSELL SMITH property. 3,000+ SF building on acre site. tenant. Lessee: 7-Eleven, Inc. Operates in 16 countries and employs over 39,000 people. Founded in 1927 and headquartered in Dallas, Texas. Generated $76.6 billion in revenues in S&P Rated AA-. Largest chain store operator worldwide with approximately 50,000 locations. lease structure. New, 10-year, corporate ground lease with 10% rent increases every 5-years. location. 7-Eleven is strategically located at the intersection of Jefferson Avenue (51,340 Cars / Day) and Main Street. Major retailers in the area include McDonald s, Taco Bell, Pizza Hut, Wendy s, Sears, Walgreens, Wells Fargo, Bank of America, Rite Aid, Dollar General, Honda, Dodge, Hardee s, and H&R Block. Newport News is located in the southeast corner of Virginia and is part of the Virginia Beach-Norfolk-Newport News, VA-NC Metropolitan Statistical Area. The subject property is an hour drive to the southeast of Richmond and 30 minutes to the north of Norfolk.

2 Table of contents Disclaimer PAGE 1: COVER PAGE 2: TABLE OF CONTENTS DISCLAIMER PAGE 3: INVESTMENT TENANT LEASE OVERVIEW PAGE 4-5: AERIAL PHOTOS PAGE 6: SITE PLAN PAGE 7: CONSTRUCTION PROGRESS PHOTO PAGE 8: LOCATION OVERVIEW PAGE 9-10: LOCATION MAPS PAGE 11: DEMOGRAPHICS Disclaimer EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located at 9959 Jefferson Avenue, Newport News, VA the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent. Listed in association with virginia broker of record: Hunt Gunter The Wilton companies 2

3 Investment overview PRICE: $1,890,000 NET OPERATING INCOME: $94,452 Lease overview Initial Lease Term: 10-Years, Plus 4, 5-Year Options to Renew Rent Commencement: January 2014 BUILDING AREA: 3,000+ Square Feet Lease Expiration: January 2024 LAND AREA: Acres Lease Type: Corporate Ground Lease YEAR BUILT: 2014 OWNERSHIP: Fee Simple Interest OCCUPANCY: 100% Rent Increases: 10% in Lease Year 6 & Escalating Every 5-Yrs. Year 1-5 Annual Rent (Current): $94,452 Year 6-10 Annual Rent: $103,897 Year Annual Rent (Option 1): $114,286 Year Annual Rent (Option 2): $125,715 Year Annual Rent (Option 3): $138,287 Year Annual Rent (Option 4): $152,115 Tenant overview 7-Eleven, Inc., a Texas corporation Tenants Right of First Offer: After Lease Year 1 7-ELEVEN S&P Rating: AA- The brand name 7-Eleven is now part of an international chain of convenience stores, operating under Seven-Eleven Japan Co., Ltd., primarily operating as a franchise. It is the largest chain store operator with approximately 50,000 locations operating around the world, surpassing the previous record-holder McDonald s Corporation in Its stores are located in eighteen countries, with its largest markets being Japan, the United States, Canada, the Philippines, Hong Kong, Taiwan, Malaysia and Thailand. 7-Eleven, Inc. as a former U.S.-originating company, is a subsidiary of Seven-Eleven Japan Co., Ltd, which in turn is owned by Seven & I Holdings Co. of Japan. The US chain has its headquarters in downtown Dallas, Texas. The company operates, franchises and licenses more than 8,600 stores in the U.S. and Canada. Of the more than 7,700 stores the company operates and franchises in the United States, approximately 6,000 are franchised. Outside of the U.S. and Canada, there are more than 42,300 7-Eleven and other convenience stores in Japan, Taiwan, Thailand, South Korea, China, Malaysia, Mexico, Singapore, Australia, Philippines, Indonesia, Norway, Sweden and Denmark. SUBJECT PROPERTY 7-Eleven also is one of the nation s largest independent gasoline retailers. Its company s name was changed from The Southland Corporation to 7-Eleven, Inc. after approval PRIOR TO PANDA EXPRESS EXPANSION by shareholders on April 28, Eleven focuses on meeting the needs of convenience-oriented customers by providing a broad selection of fresh, high-quality products and services at everyday fair prices, speedy transactions and a clean and friendly shopping environment. Each store s selection of about 2,500 different products and services is tailored to meet the needs and preferences of local customers. Stores typically vary in size from 2,400 to 3,000 square feet and are most often located on corners for great visibility and easy access. 7- Eleven was No. 2 on Forbes magazine's "Top Franchise for the Money" for 2012, No. 1 in Store Growth by Convenience Store News for 2012, and No. 3 on Forbes magazine's "Top 20 Franchises to Start" for

4 Aerial photo Riverside Brentwood Medical Center Liberty Baptist Church Homer L. Hines Middle School Main Street (22,511 Cars / Day) James River Newport News Ship Building 4

5 Aerial photo The Village Shops (Local Retailers) Big Al s Muffler & Brakes Cashwell Appliance Parts Peninsula Family Skating Center Riverside School Of Health Careers E.Z. Auto Sales Warren Optical Happy Dog Pet Grooming Law Offices Low Cost Tires 5

6 SITE PLAN 6

7 Construction Progress Photo

8 Location overview IMMEDIATE TRADE AREA 7-Eleven is strategically located at the intersection of Jefferson Avenue HWY 17 (51,340 Cars / Day) and Main Street (22,511 Cars / Day) along with Walgreens. Jefferson Avenue is an arterial north-south highway that provides access to downtown Newport News and South Newport News, respectively, while Main Street is a major east-west thoroughfare that provides access to Newport News and the outer ring of Hampton, VA. Along with national credit retailers, the immediate trade area is a highly dense residential area with over 12,000 people in a 1-mile radius and over 66,000 people in a 3-mile radius. The subject property is just south of Riverside Brentwood Medical Center and Homer L. Hines Middle School, which provide a constant source of traffic to the area. To the northwest of 7-Eleven are Wells Fargo, Bank of America, Dollar General, Rite Aid, Sun Trust, and a United States Postal Service location. 2 miles south of the subject property is Mercury Boulevard (47,263 Cars / Day) that has national retailers such as McDonalds, Taco Bell, Pizza Hut, Wendy s, Sears, Honda, and Dodge. NEWPORT NEWS, VA Newport News is located in the southeast corner of Virginia and is part of the Virginia Beach-Norfolk-Newport News, VA-NC Metropolitan Statistical Area (MSA). This MSA is more commonly know as Hampton Roads. Newport News currently has a population of 183,831. Among the city's major industries are shipbuilding, military, and aerospace. Newport News Shipbuilding, owned by Huntington Ingalls Industries, and the large coal piers supplied by railroad giant CSX Transportation, the modern Fortune 500 successor to the Chesapeake and Ohio Railway (C&O). Miles of the waterfront can be seen by automobiles crossing the James River Bridge and Monitor-Merrimac Memorial Bridge-Tunnel, which is a portion of the circumferential Hampton Roads Beltway, linking the city with each of the other major cities of Hampton Roads via Interstate 664 and Interstate 64. Many U.S. defensive industry suppliers are based in Newport News, and these and nearby military bases employ many residents, in addition to those working at the shipyard and in other harbor-related vocations. Northrop Grumman Newport News Shipbuilding serves as the city's largest employer with over 15,000 employees. Fort Eustis employs over 10,000, making it the 2 nd largest employer in the city. Newport News School System creates over 5000 jobs and acts as the city's 3 rd largest employer. HAMPTON ROADS Hampton Roads consists of 16 counties in southeast Virginia around the junction of the James River and the Chesapeake Bay. The area has a population of 1,699,925 making it the 37 th largest metropolitan area in the country. The harbor was the key to the Hampton Roads area's growth, both on land and in water-related activities and events. Hampton Roads has a dynamic, diversified economy and is home to 4 Fortune 500 companies. Representing the food industry, transportation, retail and shipbuilding, these 4 companies are located in Smithfield, Norfolk, Chesapeake and Newport News and include Smithfield Foods, Norfolk Southern, Dollar Tree, and Huntington Ingalls Industries. The shipping industry also plays a prominent role in the local economy. Hampton Roads has become known as the "world's greatest natural harbor". The port is located only 18 miles (29 km) from open ocean on one of the world's deepest, natural ice-free harbors. Since 1989, Hampton Roads has been the mid-atlantic leader in U.S. waterborne foreign commerce and is ranked 2 nd nationally behind the Port of South Louisiana based on export tonnage. When import and export tonnage are combined, the Port of Hampton Roads ranks as the 3 rd largest port in the country (following the ports of New Orleans/South Louisiana and Houston). Additionally, the Hampton Roads area has the largest concentration of military bases and facilities of any metropolitan area in the world. Nearly one-fourth of the nation s active-duty military personnel are stationed in Hampton Roads, and 45% of the region's $81 billion gross regional output is Defense-related. Hampton Roads is a chief rendezvous of the United States Navy, and the area is home to the Allied Command Transformation, which is the only major military command of the North Atlantic Treaty Organization (NATO) on U.S. soil. Retail growth in the Hampton Roads area has accelerated in recent decades. Chesapeake Square Mall was constructed in Chesapeake, VA in 1989, near the border of Suffolk, Virginia, and has spawned a number of shopping centers in the surrounding areas. MacArthur Center, opened in 1999, has 1,100,000 square feet and 140 stores. MacArthur Center opened in March 1999, which made downtown Norfolk a prime shoppers destination, with the region's first Nordstrom department store anchor. MacArthur Center is compared to other downtown malls, such as Baltimore's Harbor place, Indianapolis' Circle Centre Mall, Atlanta's Lenox Square Mall and most comparably to The Fashion Centre at Pentagon City near Washington, D.C., in Arlington, Virginia. 8

9 Location map 9

10 Location map 10

11 Demographics Demographic snapshot Radius 1 Mile 3 Mile 5 Mile Population: 2017 Projection 12,112 65, , Estimate 12,384 66, , Census 12,558 67, ,224 Households: 2017 Projection 4,925 27,302 67, Estimate 4,987 27,426 67, Census 5,082 27,683 67,998 Owner Occupied 2,585 15,404 32,295 Renter Occupied 2,401 12,022 35, Avg Household Income $57,651 $56,956 $55, Med Household Income $45,529 $44,572 $43, Per Capita Income $24,132 $24,051 $23,246 Downtown Norfolk, VA 2012 Households by Household Inc: Income Less than $15, ,432 9,896 Income $15,000 - $24, ,279 7,865 Income $25,000 - $34, ,262 8,290 Income $35,000 - $49,999 1,006 5,226 12,385 Income $50,000 - $74,999 1,151 5,833 14,116 Income $75,000 - $99, ,299 7,604 Income $100,000 - $149, ,928 5,088 Income $150,000 - $199, ,591 Income $200, Dollar Tree Headquarters, Chesapeake, VA 11