Sportsman s Warehouse/Petco

Transcription

1 Beezie Landry 109 Northpark Blvd., Ste. 300 Covington, La Sportsman s Warehouse/Petco Multi-tenant Offering Memorandum 1

2 Table of Contents Executive Summary Investment Summary Property Overview Tenant Information Retail/Restaurant Location Map Financial Information Net Operating Income Rent Roll Market Overview Area Overview Demographics & Retail Sales 2

3 EXECUTIVE SUMMARY Investment Summary Offering Stirling Properties is pleased to offer for sale the fee simple interest in a Rouses Market shadow anchored multi-tenant center with Sportsman s Warehouse and Petco located in Slidell, Louisiana. Slidell is located in Southeast Louisiana just outside of New Orleans. Price: $7,750,000 NOI: $596,461 Cap Rate: 7.70% Retail Corridor Slidell is the retail destination for all of Eastern St. Tammany Parish. The Property is located just off Interstate 10 and is surrounded by big box national retailers (Walmart, Home Depot, Lowes & Hobby Lobby), casual dining restaurants (Texas Roadhouse, Applebee s, Outback Steakhouse, Ruby Tuesday, Cracker Barrel, & Hooters), and fast food restaurants (Chick-fil-A, Starbucks, McDonald s, Raising Canes, Wendy s, Panda Express, & Taco Bell). Rouses Market has operated locations in Louisiana since They acquired their first locations in Mississippi in 2007 and in Alabama in Today, Rouses Market has approximately 60 locations. Property Detail Property Address: Land Area: Building Size: # of Tenant Spaces: Kensington Boulevard Slidell, Louisiana acres 66,210 square feet 3

4 EXECUTIVE SUMMARY Property Overview Location The Property is located at the signalized, hard corner intersection of Kensington Boulevard and Gause Boulevard (estimated 21,000 cars per day) and just off Interstate 10 (estimated 69,000 cars per day). The Property is shadow-anchored by Rouses Market and is surrounded by commercial and residential development. The immediate area includes big box retailers Walmart, Home Depot, Lowes, and Hobby Lobby as well as restaurants including Texas Roadhouse, Outback Steakhouse, Chickfil-A, Starbucks, McDonald s and many more. Zoning C-4 Highway Commercial Access The property has ingress and egress to Kensington Boulevard as well as Gause Boulevard. Parking There are approximately 350 parking spaces (including 6 handicapdesignated spaces) on the parcel. 4

5 EXECUTIVE SUMMARY Tenant Information Sportsman s Warehouse Sportsman s Warehouse was founded in 1986 as a single retail store in Midvale, Utah, and today, operates 85 stores across 22 states (including planned 2017 openings). They are the largest outdoor specialty store based in the Western United States and Alaska. Sportsman s Warehouse is a high-growth outdoor sporting goods retailer focused on meeting the everyday needs of the seasoned outdoor veteran, the first-time participant and every enthusiast in between. Their mission is to provide a one-stop shopping experience that equips customers with the right hunting, shooting, fishing and camping gear to maximize their enjoyment of the outdoors. The Company strives to accomplish this goal by tailoring its broad and deep merchandise assortment to meet local conditions and demand; offering everyday low prices; providing friendly support from knowledgeable, highly-trained staff; and offering extensive in-store events and educational programming. These core strategies help position Sportsman s Warehouse as the local outdoor experts and the preferred place to both shop and share outdoor-based experiences in their communities. Financial Highlights (for the three quarters of fiscal year 2016): Net sales increased by 12.1% to $558.6 million Same store sales increased by 1.1% Opened 11 new stores Net Income increased by 16.8% Petco Petco is a leading specialty retailer that focuses on nurturing powerful relationships between people and pets by providing the products, services, advice and experiences that keep pets physically fit, mentally alert, socially engaged and emotionally happy. Petco was founded as UPCO in 1965 as a mail-order veterinary supplies business in San Diego, California, and opened its first retail location outside of California in Oregon in In 1994, Petco went public as the largest pet specialty retail chain with 218 locations in 13 states with sales of $189 million. By 2002, Petco had approximately 600 stores in 48 states. Today, Petco operates over 1,500 locations throughout the entire United States, Mexico and Puerto Rico. Petco is currently privately held by CVC Capital Partners and Canada Pension Plan Investment Board. 5

6 Sportsman s Warehouse/Petco EXECUTIVE SUMMARY Retail/Restaurant Location Map 69K SITE 21K Gause Blvd. 6

7 EXECUTIVE SUMMARY Retail/Restaurant Location Map SITE Gause Blvd. 7

8 EXECUTIVE SUMMARY Regional Map 8

9 FINANCIAL INFORMATION Net Operating Income Year One In-place NOI Gross Operating Income $737,772 CAM/Taxes/Insurance ($119,178) 3% Management Fee ($22,133) Net Operating Income $596,461 Tenant SF Pro Rata Rent CAM/Tax/Ins Total Sportsman s Warehouse* 34, % $428,400 $60,292 $488,692 SW - Dock space 4, Petco 12, % $175,000 $22,500 $197,500 Warehouse space 15, % $24,000 $27,580 $51,580 Totals 66,210 $627,400 $110,372 $737,772 *Tenant s pro rata share not to exceed 50.59%. 9

10 FINANCIAL INFORMATION Rent Roll TENANT SQ. FT. START DATE END DATE CHARGE TYPE PERIODIC AMOUNT ANNUAL AMOUNT RATE PSF Sportsman's Warehouse 34,000 02/16/2016 2/28/2026 (Note 1) BMR 35, , BMR 38, , CAM INS TAX not to exceed 50.59% + 5% admin fee (5% non-cumulative cap) OPTION 1 03/01/ /28/ , , OPTION 2 03/01/ /29/ , , OPTION 3 03/01/ /28/ , , OPTION 4 03/01/ /28/ , , Petco 12,500 04/02/2014 1/31/2025 (Note 2) BMR 14, , CAM INS TAX + 5% admin fee (2% non-cumulative cap) OPTION 1 02/01/ /31/ , , OPTION 2 02/01/ /31/ , , OPTION 3 02/01/ /31/ , , OPTION 4 02/01/ /31/ , , Warehouse 15,322 Note 3 BMR 2, , CAM INS TAX Note 1: If sales do not exceed $7,500,000 in the seventh lease year (February 2023), Sportsman s Warehouse has the right to terminate this lease by providing notice not later than ninety (90) days following the expiration of the seventh lease year. In the event Tenant elects to terminate, Tenant shall pay Landlord $150,000. Note 2: Tenant shall have the right to terminate this lease at any time after the seventh lease year (January 2021) of the Initial Term by providing notice to Landlord at least 180 days prior to termination. Tenant shall pay the unamortized portion of the Landlord s leasehold improvements and brokerage commission. Note 3: Seller currently occupies the warehouse space and at Closing, will sign a 2 year lease at the terms shown. 10

11 MARKET OVERVIEW Area Overview The City of Slidell Slidell was founded around 1882 during construction of a major new railroad from New Orleans to Meridian, Mississippi connecting there with Cincinnati, Ohio and eventually with New York, NY. The New Orleans and Northeastern (N.O.N.E.) Railroad established a building camp at first high ground north of Lake Pontchartrain which eventually grew into the city. Slidell was chartered as a town in 1888 by the Louisiana legislature. Sometime prior to Slidell s formal incorporation in 1888, its first streets were laid out in a grid pattern, mostly east of the railroad, running three blocks along the road by four blocks deep. Bonfouca Street, now Bayou Lane, lay in the short stretch between the railroad and the bayou. East of the tracks, the north-south streets were Bayou (now Front), First, Second, Third, and Fourth. The east-west streets were Fremaux, Erlanger, Bouscaren and Cousin. In the 1960 s, Slidell began to assume its modern profile as the middle of three local sites in NASA s lunar landing program: Michoud assembly facility in New Orleans, the computer facility in Slidell, and the Mississippi test facility in Hancock County, Mississippi. St. Tammany Parish Like the surrounding regions of the Florida parishes, St. Tammany s pre-history was characterized by several phases of indigenous Native American development. The original nomadic hunters who traversed the region in the decades following the last ice age gave way to a more sedentary mound building culture as life changed from the constant hunt for large Paleolithic animals to reliance on the types of wildlife we recognize today. With the mound building culture came not only the great temple mounds which can still be found in certain areas of the modern region, but also more productive farming techniques that allowed for permanency in residence. The construction of the Lake Pontchartrain Causeway accelerated the migration to St. Tammany while the construction of I-12 placed the region at the epicenter of progress. The parish began to develop as a bedroom community. Suburban sprawl first took root in and around Slidell in the eastern part of the parish. The Causeway (completed in 1956) linked suburban Metairie with western St. Tammany and growth gathered momentum in towns like Mandeville, Covington, and Madisonville. While St. Tammany was sparsely populated and almost wholly rural in the 1950 s, its population exceeded 200,000 in the wake of Hurricane Katrina s landfall in St. Tammany today enjoys status as the most prosperous parish in Louisiana, sporting a thriving economy and one of the highest rated school systems in the state. 11

12 MARKET OVERVIEW Demographics & Retail Sales 1 mile 3 miles 5 miles 2016 Estimated Population 7,687 57,206 82, Projected Population 8,268 62,021 89, Census Population 7,641 54,508 77, Census Population 7,233 49,886 69,028 Projected Annual Growth 2016 to % 1.7% 1.7% Historical Annual Growth 2000 to % 0.9% 1.2% 2016 Median Age Estimated Households 2,902 21,058 30, Projected Households 3,106 22,703 33, Census Households 2,847 19,818 28, Census Households 2,595 17,720 24,926 Projected Annual Growth 2016 to % 1.6% 1.6% Historical Annual Growth 2000 to % 1.2% 1.5% 2016 Estimated White 84.4% 72.4% 73.3% 2016 Estimated Black or African American 10.3% 20.4% 19.6% 2016 Estimated Asian or Pacific Islander 2.0% 2.2% 2.2% 2016 Estimated American Indian or Native Alaskan 0.3% 0.4% 0.5% 2016 Estimated Other Races 3.1% 4.6% 4.4% 2016 Estimated Hispanic 5.7% 6.3% 6.1% 2016 Estimated Average Household Income $69,309 $72,632 $75, Estimated Median Household Income $57,240 $57,630 $60, Estimated Per Capita Income $26,229 $26,783 $28, Estimated Elementary (Grade Level 0 to 8) 3.4% 4.6% 4.3% 2016 Estimated Total Businesses 801 3,224 4, Estimated Total Employees 7,796 27,555 33, Estimated Employee Population per Business Estimated Residential Population per Business Billions $5 $4 $3 $2 $1 $0 Retail Sales Estimates Less Motor Vehicle Sales Annual January - July Sources: La. Dept. of Labor, SitesUSA, SLU Business Research Center 12