Exclusive Offer: Investment Opportunity

Transcription

1 Retail Center Olentangy River Road Columbus, Ohio $4,860, % Cap Rate Exclusive Offer: Investment Opportunity S. Austin Wathen Equity, LLC 4653 Trueman Blvd. Suite 100 Hilliard, OH Jim Perry Equity, LLC 4653 Trueman Blvd. Suite 100 Hilliard, OH

2 Confidentiality, Disclaimer and Exclusive Agency Agreement Seller ( Disclosing Party ) has decided to market the Building for a potential sale and has engaged Equity as its exclusive listing broker for such marketing and potential sale. Equity, prior to providing sales and marketing materials, and other data, documents, and information related thereto, requires that the Receiving Party execute this Confidentiality, Disclaimer and Exclusive Agency Agreement (the Agreement ) in order for the parties hereto to engage in discussions concerning a possible purchase of the Building by the Receiving Party (the "Proposed Transaction"). Disclosing Party desires that all inquiries and communications concerning the Proposed Transaction be directed to Equity. Disclosing Party, through Equity, is only willing to disclose such Information (as defined below) to Receiving Party for the limited purpose of assisting Receiving Party in the evaluation of the Proposed Transaction, all in accordance with and subject to the terms and conditions of this Agreement. The term "Receiving Party" shall include the Receiving Party s subsidiaries, parents or affiliates, its directors, officers, shareholders, members, managers, employees, agents, consultants, legal counsel, accountants and other representatives. Upon the execution of this Agreement by Receiving Party and the receipt of the same by Equity, Equity shall provide the Receiving Party with the Offering Memorandum. This Memorandum was prepared solely to assist prospective purchasers in their evaluation of the Proposed Transaction. It is intended to be a summary of the transaction to assist prospective purchasers in determining whether to engage in more detailed investigation. Financial projections are provided as a reference and are based upon assumptions made by Seller and other reliable sources. The Receiving Party understands, acknowledges, and agrees that the Building is being offered as is and that while Equity believes the Information disclosed to Receiving Party is accurate and complete, Equity does not make any representation or warranty as to the accuracy or completeness of the Information disclosed to Receiving Party pursuant to this Agreement and that the Information was furnished to Equity by others and has not been independently verified and is not guaranteed as to completeness or accuracy. The providing of the Information to Receiving Party does not constitute an offer to sell. The purchase opportunity being offered by Disclosing Party is subject to withdrawal from the market, change in offering price, prior sale or rejection of any offer because of the terms thereof, lack of satisfactory credit references of buyer, or for any other reason whatsoever, without notice. The Receiving Party will maintain all Information in confidence and will neither disclose any Information to any third person or entity including, but not limited to, any third party financing broker, finder or sales agent, nor make use of any Information for any purpose other than the purposes described herein without the prior written consent of the Disclosing Party. The Receiving Party will restrict access to the Information to only those authorized employees and other agents who must have access to the Information for the limited purpose of evaluating the Proposed Transaction, and the Receiving Party will advise all persons to whom it provides information that they are bound by this Agreement. Notwithstanding the foregoing, the Receiving Party will have no confidentiality obligation with respect to any Information which: is already known to the public prior to the date of this Agreement; becomes known to the public through authorized publication or otherwise through no breach of this Agreement by the Receiving Party; can be established by the Receiving Party by documentary evidence to have been in the legitimate and lawful possession of the Receiving Party at the time revealed by the Disclosing Party to the Receiving Party; is lawfully received by the Receiving Party without restriction from a third party subsequent to this Agreement, which third party did not obtain the Information through improper means; or is developed by the Receiving Party independently and without benefit of the Information received pursuant to this Agreement.

3 Confidentiality, Disclaimer and Exclusive Agency Agreement All materials and documents containing Information provided by the Disclosing Party to the Receiving Party will remain the property of the Disclosing Party. The transmission of Information to the Receiving Party does not constitute the grant to the Receiving Party of a license of any type. At such time as the parties may choose to cease consideration of the Proposed Transaction or otherwise at the Disclosing Party's request, Receiving Party shall use its best efforts to immediately either destroyed the Information received by the Receiving Party or return the Information to the Disclosing Party, together with all copies, abstracts and summaries thereof. All Information stored in electronic media will be destroyed, except that which is maintained in system backups or for archival purposes. Upon request of the Disclosing Party, the Receiving Party shall certify in writing to the Disclosing Party that Receiving Party has used its best efforts to either return the Information to the Disclosing Party or to destroy the same. The Receiving Party's obligations to maintain the Information in confidence will continue until the earlier of two (2) years from the date of this Agreement or at such time as any such Information becomes generally available to the public. If any Information becomes generally available to the public, the Receiving Party's obligations will continue only with respect to Information which has not become generally available to the public. In the event that the Receiving Party is requested or required (by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or other process) to disclose any Information, the Receiving Party agrees that it will provide the Disclosing Party with prompt written notice of any such request or requirement so that prior to such disclosure the Disclosing Party may obtain an appropriate protective order or waive compliance with the provisions of this Agreement. The Receiving Party, its subsidiaries, parents or affiliates, and its directors, officers, shareholders, members, managers, employees, agents, consultants, legal counsel, accountants and other representatives shall keep confidential the fact that the parties are reviewing Information and discussing the Proposed Transaction and no such individuals or entities will issue any press release or announcement relating to the Proposed Transaction or the negotiation thereof without the prior written approval of the Disclosing Party; provided, however, that any party to this Agreement may make any public disclosure it believes in good faith is required by law or regulation (in which case the disclosing party will advise the other interested party in writing prior to making a disclosure). The waiver by a party of a breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach by such party. In the event any provision of this Agreement is found to be invalid or unenforceable, it may be severed from the Agreement, and the remaining provisions of the Agreement shall continue to be binding and effective. This Agreement may be executed in two or more counterparts, each of which will be deemed to be an original copy of this Agreement but all of which together shall constitute one and the same instrument. This Agreement may be executed and delivered by facsimile or portable document format (.pdf). This Agreement contains the entire agreement between the parties with respect to the subject matter hereof. All representations, promises, and prior or contemporaneous understandings between them are merged into and expressed in this Agreement and any and all such prior agreements are hereby canceled and integrated herein. This Agreement may not be amended, modified or supplemented except by written agreement of the parties at the time of such amendment, modification, or supplement. This Agreement will inure to the benefit of, and be binding upon, the respective legal representatives, successors and assigns of the parties hereto. This Agreement will be governed by and construed in accordance with the laws of the State of Ohio. Please sign below to acknowledge that you have received and read the above information and agree to the terms of the agreement thereto. Agreed: PROPOSED PURCHASER: By: Print Name: Title: Date: BUYER BROKER (if applicable): By: Print Name: Title: Date:

4 The Offering Lennox Station is a multi-tenant retail center located at Olentangy River Road in Columbus, Ohio. The subject property is comprised of an impressive array of national and regional tenants all with NNN leases and ample parking. The 12,124 sq. ft. building is occupied by Starbucks, Vitamin Shoppe, FedEx Office, Mattress Firm, Verizon Wireless, and Tan Pro. The offering represents a unique opportunity to acquire a welllocated, 100% leased, stabilized asset in an established retail/commercial corridor with extremely high barrier to entry. Olentangy River Road is a prominent commercial thoroughfare through Columbus with incredible traffic counts. Major traffic generators in the area include The Ohio State University, The Ohio State University Medical Center, The James Cancer Center, the Battelle Institute, and the highest performing Target store in the state of Ohio. Property Detail Address: Olentangy River Road, Columbus, OH Rentable Area: 12,124 GLA Year Built: 2006 Occupancy: 100% Number of Tenants: 6 Ownership: Property subject to a ground lease (approx. 75 years remain) Lot Size: +/ acres Zoning: Clinton Twp.: Community Commercial District

5 The Investment Annual Rental Income $ 466,105 Recoveries $ 116,698 Total Revenue $ 582,803 Total Expenses $ 126,581 NOI $ 456,222 Ground Lease payment $ 116,000 NOI after ground lease $ 340,222 Investment Summary Stabilized Retail Strip Center building commonly referred to as Lennox Station AAA Investment in premium location 100% Leased Price: $ 4,860,000 Cap Rate: 7.00% NOI: $ 340,222 Annual Ground Lease Payment: $116,000 - $10,000 increase 2020, 2025, Beginning in 2035, increases follow CPI capped not to exceed 15% per 5-year option - Approximately 75 years of options remaining Sale Price at 7.00% cap $ 4,860,000

6 Location Retail Corridor The corridor containing Lennox Station is a large retail corridor in central Columbus and houses multiple national retail tenants such as Target, AMC Theatres, Barnes & Noble, and Staples. The vacancy rate in Upper Arlington/Grandview Heights is 4.6% and the Average Daily Traffic (ADT) of Olentangy River Road is 34,896 vehicles per day.

7 Location Ohio State University Ohio State University Medical Center Battelle Institute SITE Direct proximity to The Ohio State University campus with a Main Campus enrollment of 58,322 (33,673 full-time enrollment: Autumn 2015) and The Ohio State University Medical Center. The Battelle Institute is the largest non-profit research and development organization with 23,000 employees.

8 Market Overview Columbus, Ohio is comprised of portions of eight counties in central Ohio. Columbus is Ohio s most populated metropolitan area and is the county seat of Franklin County and the capital of Ohio. Nearly 1.9 million people live in the metro and this number is projected to increase by 5.2 percent over the next five years (slightly above the national rate.) Columbus itself is home to 805,500 residents. Diverse employment opportunities are provided by the presence of state and local governmental entities, The Ohio State University, and numerous major corporations. Among these are Cardinal Health, American Electric Power, Nationwide Insurance, Wendy s, L Brands, Honda of America, JP Morgan Chase, and many others. (Logos are for identification purposes only and may be trademarks of their respective companies.) The trade, transportation, and utilities sector is a key industry to the local economy accounting for 19 percent of total employment. The sector s dominance is linked to the metro s central U.S. location, its well-developed infrastructure, and the presence of major corporations that ship worldwide. The metro is relatively young, largely the result of the presence of The Ohio State University. The median age is 35.4 years below the U.S. median age of 37.7 years. Residents under the age of 20 make up 27 percent of the population, while those aged 65 years and older comprise just 11 percent. Median Household Income is $55,200 above the national average of $52,400 per year. High earnings and affordable home prices have enabled a 63 percent home ownership rate. Local entertainment amenities include two major league franchises (NHL team Blue Jackets and MLS team Crew).

9 Sub-Market Area Sub-Market Narrative Retailers in the Olentangy River Rd corridor continue to desperately search for opportunities that will allow them to capture sales in this dynamic area. Due to the urban nature of this area and high barrier to entry for new development, retail demand has only increased over the years. Lennox Town Center has the #1 sales volume Target in central Ohio and the #1 gross volume per screen theatre in central Ohio. In addition to being the main retail area serving the University, this corridor serves the affluent populations in Upper Arlington & Grandview as well as the Short North and is also within a short drive of the CBD. The success of the area is largely due to such a strong demographic makeup and the combination of daytime employment and residential population density and income levels.

10 Demographics 1 mile 3 miles 5 miles Population (2016) 23, , ,892 Daytime Population 127, , ,096 Households 8,481 60, ,616 Avg. HH Income $60,153 $66,756 $63,871

11

12

13

14 Aerial

15 Site Plan

16 Tenant Summaries The world's #1 specialty coffee retailer, Starbucks has more than 16,600 coffee shops in about 40 countries. The outlets offer coffee drinks and food items, as well as roasted beans, coffee accessories, and teas. Starbucks operates more than 8,800 of its shops, which are located in about 10 countries (mostly in the US), while licensees and franchisees operate more than 7,800 units worldwide. NASDAQ symbol: SBUX The Vitamin Shoppe is a specialty retailer and direct marketer of nutritional products ranging from vitamins and minerals to nutritional supplements, herbs, sports nutrition formulas, homeopathic remedies, and health and beauty aids. NYSE symbol: VSI. FedEx Office (officially FedEx Office Print & Ship Services, Inc., formerly FedEx Kinko's, and earlier simply Kinko's) is a chain of stores that provide a retail outlet for FedEx Express and FedEx Ground (including Home Delivery) shipping, as well as printing, copying, and binding services. All stores are corporate owned. Tower Wireless is a leading central Ohio wireless retailer with multiple locations. Today Tan Pro is currently Ohio's largest chain with more than 30 locations throughout Ohio and is committed to maintaining that status. Tan Pro has continued its stellar growth through Tan Pro's creative marketing plans, superior customer service and excellent home office support and training. Proximity to Ohio State makes this location on of the chain s highest sales volume locations. Mattress Firm currently operates over 560 locations across 22 states with plans to continue to grow. What began in 1986 has grown to become one of the largest and most successful specialty bedding companies in the world.

17 Primary Agent Contact: S. Austin Wathen Equity, LLC 4653 Trueman Blvd. Suite 100 Hilliard, OH Jim Perry Equity, LLC 4653 Trueman Blvd. Suite 100 Hilliard, OH Exclusive Offer & Advisory This investment opportunity is exclusively offered by Equity Inc, a licensed real estate broker. All information contained herein is deemed to be from reliable sources. Interested investors should independently verify information and rely on their own investment advice from qualified professionals in making decisions regarding this investment.