Absolute-NNN Lease Recent Construction Store

Transcription

1 Actual Property EXCLUSIVE OFFERING: 759 Grapevine Highway, Hurst (DFW), TX Absolute-NNN Lease Recent Construction Store

2 Table of Contents I. Executive Summary 3 II. Site Plan 4 III. Tenant Overview 5 IV. Market Overview 6 V. Contacts 9 July 2017 Actual Property

3 Executive Summary The Offering JLL is pleased to offer for sale the fee-simple interest in a single tenant Natural Grocers (the Property or Asset ), located in Hurst, TX, in the Dallas-Fort Worth MSA. Recently delivered in 2016, the Asset is situated along bustling Grapevine Highway, in a dense retail corridor with numerous national tenants neighboring the site. The Property features over 14.5 years of contractual term remaining and zero landlord obligations, making this a perfect property for hands-off or out-of-market investors seeking passive income. This is a rare opportunity to acquire a recently constructed and well located property leased long-term to a quickly expanding tenant in a growth sector with absolutely zero management responsibilities. Investment Highlights Over 14.5 years of contractual lease term remaining, with rent growth in year 11 and at the execution of all four 5-year options Excellent access and visibility fronting Grapevine Highway (32,000 VPD) Ideal absolute-nnn lease structure with zero landlord responsibilities High concentration of traffic drivers surrounding the asset, including numerous national retailers (directly adjacent to newly-built Chik-Fil-A), Tarrant County College, Birdville High school, LD Bell High School, WA Porter Elementary School, the NYTEX sports center, and dense residential communities, supporting over 265,000 residents within 5 miles of the asset Large regional grocery chain with over 140 locations and plans for significant growth in the growing and internet-resistant natural foods sector Address Tenant PROPERTY OVERVIEW AND LEASE ABSTRACT Guarantor Type 759 Grapevine Highway Hurst, TX Natural Grocers by Vitamin Cottage Corporate Purchase Price $6,550,000 Cap Rate 6.00% NOI $393,000 Lease Expiration 3/31/2032 Remaining Initial Lease Term* Building Size Parcel Size Year Built 2016 Ownership Interest Parking Lease Type Natural Grocers Hurst, TX 14.6 Years 15,000 SF 1.86 Acres Fee-Simple Approximately 75 Surface Spaces Absolute NNN Asset is located in the center of the country s fourth-largest MSA, with extremely limited developable land nearby Market Debt Profile For this asset, at the high level the market will reflect 70% LTV, 10 to 15-year term with 2 years IO, followed by a 30-year amortization schedule, % interest rate. Landlord Responsibilities Rent Escalations Renewal Options *As of August 2017 None $15,000 every 5 years including options, starting year 11 4, 5-year options 3

4 Site Plan Cross-Access 4

5 Tenant Overview Natural Grocers Overview Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) is a rapidly expanding specialty retailer of natural and organic groceries and dietary supplements whose products must meet strict quality guidelines. The grocery products sold by Natural Grocers do not contain artificial colors, flavors, preservatives or sweeteners, or partially hydrogenated or hydrogenated oils. The Company sells only USDA certified organic produce and exclusively pasture-raised, non-confinement dairy products. Natural Grocers flexible smaller-store format allows it to offer affordable prices in a shopper-friendly retail environment. The Company also provides extensive free science-based nutrition education programs to help customers make informed health and nutrition choices. Natural Grocers Footprint Natural Grocers by Vitamin Cottage, Inc. Website Headquarters Lakewood, CO Number of Locations 140+ Year Founded 1955 Store Size 5,000-16,000 SF Stock Symbol NYSE: NGVC Since 2012, Natural Grocers has experienced annual compound sales growth of 24%, and has shown 57 consecutive quarters of positive same-store sales growth Natural Grocers has been opening 10 or more stores each year since 2011, with a high of 28 openings in Market Capitalization (7/2017) $182M Revenue (Year Ending 9/30/2016) $705M Assets (Year Ending 9/30/2016) $282M EBITDA (Year Ending 9/30/2016) $46M 5

6 Market Overview 6

7 Hurst, TX MARKET OVERVIEW Hurst is a city in densely populated Tarrant County, TX, located in the heart of the DFW Metroplex. Hurst is strategically located between Dallas and Fort Worth, just 13 miles from the DFW International Airport. Hurst is home to Tarrant County College (13,000+ students), the newly constructed Tarrant County Northeast Courthouse, the headquarters of Bell Helicopter, the Hurst/Bell transit station, and the North East Mall, the third largest mall in the state of Texas at over 2 million square feet. NATURAL GROCERS LOCATION OVERVIEW The subject property sits on Grapevine Highway a quarter-mile from the intersection of Grapevine and Precinct Line Road, which boasts a combined traffic count of 62,000 VPD. DEMOGRAPHIC INFORMATION 1-mile radius 3-mile radius 5-mile radius POPULATION Population Growth 5.4% 11.6% 19.4% 2017 Estimate 7, , , Number of Households 2,949 40, ,352 INCOME 2017 Median HH Income $90,331 $69,958 $73, Average HH Income $113,672 $94,541 $102,365 Infill location with strong surrounding demographics, including household incomes 26% above the DFW average immediately surrounding the site. Natural Grocers is proximate to a variety of quality neighboring retail tenants, including Lowe s, Chick-Fil-A, Walmart, Aldi, CVS, Tom Thumb, 99 Cents Only, Sprouts, Kroger, Kohl s, Office Depot, and Home Depot. The Asset is strategically located to capture traffic traveling to and from Tarrant County College, several schools, NYTEX sports center, and the Texas 121 TEXpress, which serves over 150,000 VPD. Actual Property 7

8 Hurst Aerial Texas 121 TEXpress 150,000 VPD LD Bell High School Relocation Store Birdville High School Relocating Beside Subject Property WA Porter Elementary 8

9 JLL Contacts Matthew Berres Senior Vice President Caroline Binning Senior Associate Scott Bailey Associate Quinn McCarthy Analyst Jones Lang LaSalle IP, Inc. All rights reserved. The information contained in this document is proprietary to JLL and shall be used solely for the purposes of evaluating this proposal. All such documentation and information remains the property of JLL and shall be kept confidential. Reproduction of any part of this document is authorized only to the extent necessary for its evaluation. It is not to be shown to any third party without the prior written authorization of JLL. All information contained herein is from sources deemed reliable; however, no representation or warranty is made as to the accuracy thereof.