NNN Single Tenant Investment Offering

Transcription

1 NNN Single Tenant Investment Offering Rite Aid NNN Leased Investment Gonzales (Baton Rouge Metro), LA Rite Aid NNN Lease Guaranteed by Walgreens Gonzales (Baton Rouge Metro), LA Rite Aid with Walgreens Guaranty Absolute Corporate NNN Lease 1710 N. Airline Highway Gonzales, LA $2,950, % Cap Approx. 6+ years Remaining on the lease With Eight 5 Year Options to Renew Great Visibility New Lowe s Home Improvement within walking distance High Traffic Location Brent L. Hensley 216 N. Coast Hwy 101 Chris Dozier (760) Encinitas, CA Retail Specialist, Inc. brent@1031nnnsearch.com ckdozier@retailspecialistscom LA Broker # ASA

2 Area Description The subject property consists of the ownership of improved land (43,013 square feet) occupied by a 11,012 square foot Rite Aid drug store and pharmacy drive-thru lane. As of March 2018, Rite Aid has assigned this lease to Walgreens. The property is located directly on N. Airline Highway next to a newer Lowe s Home Improvement center. The property was originally developed as a build-to-suit for Rite Aid and contains 52 parking spaces. The interior of the improvements is primarily utilized as a retail area and includes several checkout counters, a pharmacy area and a photo shop. The original NNN lease was for 20 years with 8 five year options to renew. There is approximately 6+ years remaining and expires on December 14, The Rite Aid is surrounded by several national and regional retailers, including Shell, Salvation Army, Malco Cinema, Premier Bowling Lanes, Smoothie King, My Self Storage, Jack in the Box, Petsmart, Pizza Hut, Taco Bell, Subway, Walmart, Kmart and Big Lots. There is a newer Lowe s Home Improvement center about 1 blocks north of the Rite Aid. There approximately 62,700 people with an average household income of $67,440 within 5 miles of this Rite Aid. The site provides excellent visibility and ingress/egress to N. Airline Highway. Because of the Rite Aid s proximity to Interstate 10 and Interstate 12, access to and from the entire area is excellent. Baton Rouge Metropolitan Airport, also known as Ryan Field, is about ten miles northwest and is accessible via Airline Highway. Airline Highway is a primary carrier which runs northwest/southeast through the City of Gonzales. Siegan Lane is a four lane road running northeast/southwest that dead-ends into Airline Highway. The neighborhood where this Rite Aid is located is an established area with a full complement of commercial, industrial and retail facilities. Income growth should continue to grow at a rate equal to or better than that of the Baton Rouge area. With excellent access provided by Interstate 10, Interstate 12 and Airline Highway, retail uses within the neighborhood should hold their demand. The city of Gonzales Rouge is located in East Baton Rouge Parish in south central Louisiana. Baton Rouge is approximately 50 miles northwest of New Orleans, on the eastern banks of the Mississippi River. As the state capitol of Louisiana, the Greater Baton Rouge area is the center for education, industry, government, banking and transportation. Baton Rouge is characterized by a stable diversified economy. Situated where major highways and railways cross the Mississippi River, Baton Rouge has an economy based upon a heavy concentration of industry. It has the nation s fifth ranked deep-water port, two major universities (Louisiana State and southern University), two technical schools, and a sizable city and state governmental complex. As previously mentioned, the economic base of the Baton Rouge area is quite diversified. This diversification is one of Baton Rouge s most important assets. It provides for strong growth in Baton Rouge during the late 1980 s was due mainly to the expansion in the chemical industry. Baton Rouge has the second largest concentration of chemical payrolls in the state, according to the Louisiana Economic Outlook prepared by Louisiana State University. During this time, industrial construction, manufacturing, services and trade also grew. Government will likely continue to play a major role in the area s future. Highway construction has increases as the result of the Louisiana Transportation Trust Fund and the pothole Tax. One major project being discussed is the proposed IH-10 bypass. The project calls for the construction of a highway extending from the area around the LA 145 exit (just west of Baton Rouge), across a new Mississippi River bridge to be guilt south of the city, and to rejoin with IH-10 around Gonzales. No date has been set at this time. Also, the MSA s growth over the last four years has been absorbing the oversupply of apartments and homes in the area. DEMOGRAPHIC SUMMARY (As of 2013) 1 Mile: 5,670 with an average household income of $65, Mile: 34,836 with an average household income of $76, Mile: 68,097 with an average household income of $82,589.

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4 Guarantor Information Rite Aid Corporation is one of the leading drugstore chains in the United States and a Fortune 500 company. The Company operates its drugstores in 31 states across the country and in the District of Columbia. Rite Aid is headquartered in Camp Hill, a suburb of Harrisburg, Pennsylvania, and is publicly traded on the New York Stock Exchange under the ticker RAD. Ride Aid stores service prescription drug customers and offer an assortment of other general merchandise, which it calls front-end products. Front end products include over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, beverages, convenience foods, greeting cards, seasonal merchandise, and other every day and convenience products, as well as phot processing. It offers approximately 3,300 products under the Rite Aid private brand. The overall average size of each store in the Company s chain is approximately 12,500 square feet. Over 50% of its stores are freestanding and approximately 50% of its stores include a drive-thru pharmacy. Many locations also feature one-hour photo shops and include a GNC store-within-rite Aidstore. INVESTMENT SUMMARY Financial Information: Price: $2,950, Cap Rate: 7.0%% NOI: $206, Property Information: Building Size: 11,012+/- square feet Lot Size: 43,013+/- square feet or acres Address: 1710 N. Airline Highway, Gonzales, LA Year Built: 1999 Zoning: C-1, Commercial District Lease Information: Tenant & Guarantor: Rite Aid Corporation (as Tenant) with Walgreens as guarantor. Rent Commencement Date: December 15, 2004 Expiration Date: December 14, 2024 Renewal Options: 8 Five year options to renew Rent Increases: 10% rent increases at the1st and third options and no increases in the second and fourth options. Rent would be based on market rent if later options are exercised. Remaining Term: Approx. 6 years (as of 12/1/17) Rite Aid is responsible, and consistently pays for all property taxes, insurance and maintenance for the property. Original 20 year absolute NNN lease. Tenant has a 20 day First Right of Refusal to Purchase.

5 MAPS Regional map for Gonzales, LA Local Map of Gonzales, LA and Rite Aid Location

6 NEIGHBORHOOD AERIAL

7 Other National Tenants within Walking Distance Newer Lowe s Home Improvement Newer PetsMart Premier Lanes and Malco Cinema Wendy s on N. Airline Highway KFC on N. Airline Highway Taco Bell on N. Airline Highway

8 Net Leased Real Properties, Inc. has been retained as the exclusive Broker regarding the sale of this property. To receive an Offering Memorandum, please read this Confidentiality Agreement and agree to the terms. The Offering Memorandum has been prepared by Owner and Broker and does not purport to provide a necessarily accurate summary of the property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective Buyers may need or desire. All projections have been developed by Owner and Broker and designated sources and are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and Broker and therefore are subject to variation. No representation is made by Owner or Broker as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, the Owner and Broker and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, Owner, Broker, and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in or omitted from the Offering Memorandum or any other written or oral communication transmitted or made available to the Buyer. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or the Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum are solely the responsibility of the prospective Buyer. Additional information and an opportunity to inspect the property will be made available upon written request to interest and qualified prospective Buyers. By accepting the Offering Memorandum, Buyer agrees to indemnify, defend, protect and hold Owner and Broker and any affiliate of Owner or Broker harmless from and against any and all claims, damages, demands, liabilities, losses, costs or expenses (including reasonable attorney fees) arising, directly or indirectly from any actions or omissions of Owner or Broker, its employees, officers, directors or agents. By accepting the Offering Memorandum, Buyer understands that Net Leased Real Properties, Inc. does not have ownership interest in the subject property and Buyer shall indemnify and hold Owner and Broker harmless from and against any claims, causes of action or liabilities, including, without limitation, reasonable attorney fees and court costs which may be incurred with respect to any claims by Buyer in connection with such statement. Buyer shall indemnify and hold Owner and Broker harmless from and against any claims, causes of action or liabilities, including, without limitation, reasonable attorney fees and court costs which may be incurred with respect to any claims for other real estate commissions, broker fees or finder fees in relation to or in connection with the Property to the extent claimed, through or under Owner. The Owner and Broker each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time with or without notice. The Owner shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by the Owner and its legal counsel, and any conditions to the Owner obligation thereunder have been satisfied or waived. The Offering Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting the Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose the Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make an offer and from whom you have obtained an agreement of confidentiality) without prior written authorization of the Owner or Broker, and that you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of the Owner or Broker. No employee of Owner is to be contacted without the written approval of Broker and doing so would be a violation of this confidentiality agreement. Buyer and Co-broker agree not to contact the tenants, their employees or customers of any business on the Property without prior permission from the Owner.