898 South 2550 East, Spanish Fork, Utah $4,750,000 Investment Details

Transcription

1 898 South 2550 East, Spanish Fork, Utah Actual Site Photo Offering Memorandum $4,750,000 Investment Details New 20 year NNN ground lease to commence upon completion of construction Ground lease includes gas depot New 2017 construction Scheduled for delivery early November % rent escalations every ten years to hedge against inflation Standard & Poor s AA rated tenant, guaranteed by WalMart Inc Corporate guarantee

2 NON- ENDORSEMENT AND DISCLAIMER NOTICE Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â 2017 Marcus & Millichap. All rights reserved. Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY AND ONLY FIRST BY OBTAINING TENANTS PERMISSION. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. WALMART NEIGHBORHOOD MARKET Spanish Fork, UT ACT ID Y

3 TENANT OVERVIEW Parent Company: Wal-Mart Stores, Inc Corporate Guaranteed Lease: Wal-Mart Stores, Inc Public Ownership: NYSE:WMT Walmart is the world s largest retailer and employer with 11,000 +/- stores worldwide Headquarters Bentonville, AK Website

4 TENANT INFO SITE PHOTO Future Retail Development Walmart Neighborhood Markets (WNM) was designed in 1998 as a smaller foot print option for communities in need of a pharmacy, affordable groceries and general merchandise. Each store is approximately 38,000 +/- square feet and employs up to 95 associates. WNM offer fresh produce, meat an dairy products, bakery and deli items, household supplies, health and beauty aids and a pharmacy. The Walton family still owns 51% of Walmart stock. Walmart is the world s largest retailer and employer. With fiscal year 2016 net sales net sales of $485.2 billion, Walmart employs 2.3 million associates worldwide and 1.4 million associates in the United States alone. Walmart is known for its low pricing and wide selection of goods. Each week, more than 245 million customers and members visit nearly 11,000 Walmart stores under 65 banners in 28 countries and e-commerce websites in 11 countries. Standard & Poor s AA rated Standard & Poor s 100 Standard & Poor s 500 CLICK HERE Other concepts / Divisions of Walmart: Sam s Club Asda Amigo Supermarkets Vudu Massmart Moosejaw Modcloth

5 PROPERTY NAME Walmart Stores, Inc. CREDIT RATING: A2 April 30, 2017 Address General Information 702 S.W. 8th Street, Bentonville, Arkansas, 72716, United States Phone Website Chief Executive Officer & President CFO & EVP Chairman Key Personnel Doug McMillon M. Brett Biggs Greg Penner Store Base Store Count 11,723 TTM Sales $486,976,000,000 Financial Markets Stock Ticker WMT Current Price $79.86 as of 9/13/17 52 Week High/Low $81.99 / $65.28 #

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7 THE OFFERING Marcus & Millichap is pleased to announce the exclusive right to list for sale the within Walmart Neighborhood Market. Offering a passive investor the opportunity to purchase a newly constructed ground lease with the world s largest employer and retailer. A true sleep at night passive investment, on a new 20 year NNN lease with rental escalations every ten years and option periods. With 211 parking spaces. Overview Price $4,750,000 Gross Leasable Area 48,762 + GAS 763 SF = 49,525 Lot Size 6.36 acres Net Operating Income $190,000 CAP Rate 4.00% Year Built 2017 Lease Abstract Lease Type Lease Term NNN Ground Lease 20 years Lease Start estimated 11/1/2017** Renewal Options Increases Roof and Structure 6x5 10% every 10 years & written into lease during options Tenant Years Rent Years 1-10 $190,000 Years $209,000 Option 1 $219,450 Option 2 $230,422 Option 3 $241,943 Option 4 $254,040 Option 5 $266,742 Option 6 $280,079 ** Lease start date subject to construction completion

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10 Sierra Bonita Elementary Maple Mountain High School Church of Latter Day Saints Church of Latter Day Saints Church of Latter Day Saints Future Retail Development Church of Latter Day Saints

11 DEMOGRAPHICS MAJOR EMPLOYERS # OF EMPLOYER EMPLOYEES * Klune Industries Inc 383 Olsons Greenhouse Gardens Inc 350 Utah County Sheriff Department 300 Walmart 300 New Hven Rsidential Trtmnt Ctr 285 Nebo School District 261 Natures Sunshine 250 Sunroc 240 Costco Wholesale Corporation 202 Longview Fibre Ppr & Packg Inc 200 Maple Mountain Enterprises Inc 200 Neways Inc 200

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13 AREA DESCRIPTION PROVO-OREM OVERVIEW The Provo-Orem metro is formed of Utah and Juab counties and has a population of 590,000. The metro is located at the southern end of the Wasatch Front, around 40 miles south of Salt Lake City. The Wasatch Mountains provide vistas to the east, while Toole County lies to the west. Provo is the largest city in the metro with roughly 120,000 residents, followed by Orem. METRO HIGHLIGHTS DIVERSIFYING ECONOMY The local economy has shifted toward technology-related companies during recent decades. HIGHLY EDUCATED WORKFORCE More than 36 percent of residents age 25 and older hold a bachelor s degree, including 11 percent who also have earned a professional or graduate degree. INTERSTATE NETWORK AND INFRASTRUCTURE Interstate 15 connects the metro to the rest of the Wasatch Front; U.S. 89 and U.S. 189 are other major arteries. ECONOMY The region s economy has shifted toward high-tech, computer-related businesses over the past two decades, supported by companies such as Adobe, Oracle, Micro Focus and Sento Corp. Education remains an economic driver, with Utah Valley University and Brigham Young University enrolling more than 25,000 students each. Provo is home to the largest Missionary Training Center for the Church of Jesus Christ of Latter-day Saints, which supports a large resident base. DEMOGRAPHICS 2016 POPULATION: 590K Growth *: 10.6% 2016 HOUSEHOLDS: 163K Growth *: 10.7% 2016 MEDIAN AGE: 24.4 U.S. Median: MEDIAN HOUSEHOLD INCOME: $62,400 U.S. Median: $57,200 * Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody s Analytics; U.S. Census Bureau 13

14 DEMOGRAPHICS WALMART PROPERTY NEIGHBORHOOD NAME MARKET PRICING AND LOCATION VALUATION TENANT MARKETING DEMOGRAPHICS SUMMARY OVERVIEW MATRIX TEAM CREATED ON SEPTEMBER 13, Miles 3 Miles 5 Miles POPULATION 2021 Projection 15,160 46,543 90, Estimate 12,523 40,963 80, Census 10,879 36,234 71, Census 4,174 21,829 46,626 INCOME Average $82,797 $77,784 $77,846 Median $73,553 $65,865 $64,332 Per Capita $19,736 $20,952 $21,538 HOUSEHOLDS 2021 Projection 3,637 12,471 24, Estimate 2,981 11,011 22, Census 2,551 9,644 19, Census 966 6,019 12,928 HOUSING 2016 $231,704 $215,697 $217,274 EMPLOYMENT 2016 Daytime Population 2016 Unemployment 2016 Median Time Traveled 7,867 32,594 71, % 4.36% 3.76% RACE & ETHNICITY White 90.61% 90.95% 91.27% Native American 0.86% 0.72% 0.62% African American 0.44% 0.40% 0.45% Asian/Pacific Islander 0.88% 0.68% 0.62%

15 NET LEASED DISCLAIMER Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property. 15

16 EXCLUSIVELY REPRESENTED BY: 898 South 2550 East, Spanish Fork, Utah Lior Regenstreif Senior Managing Director Investments Senior Director Net Leased Properties Group Ventura Blvd., Suite 100 Encino, CA Direct IN STATE BROKER OF RECORD: Gary Mangum 36 S State St., Suite 2650 Salt lake City, UT Direct Gary.Mangum@MarcusMillichap.com