Offering Memorandum of Rite Aid Property

Transcription

1 Offering Memorandum of Rite Aid Property PREPARED BY: REF Advisory, LLC Nuckols Road, Suite E Glen Allen, VA T: (804) Not Subject Property CONTACTS: Michael R. Katz President mkatz@refadvisory.com New Rite Aid Store (Reloca1on) Corner of US Rt 58 (Holland Road) and Staley Drive Suffolk, VA Michele Hall mhall@refadvisory.com

2 Table of Contents I. No8fica8on II. Pricing & Financial Summary III. IV. Rite Aid Informa8on Loca8on Informa8on V. Demographic Highlights VI. Property Site Plan VII. Store Photographs VIII. Aerial Photograph IX. Area Map - Reloca8on X. Regional Map XI. Highlights of Rite Aid Lease

3 No8fica8on This is a confiden8al Offering Memorandum ( OM ) intended solely for your use in determining whether you desire to express further interest in the acquisi8on of the Property. This OM contains selected informa8on pertaining to the Property and does not purport to be, all- inclusive or to contain all or part of the informa8on which prospec8ve investors may require to evaluate an acquisi8on of real property. All financial informa8on is provided for general purposes only and may be based on assump8ons beyond the control of the Landlord and REF Advisory, LLC ( REF ). All references to acreages, square footages, and other measurements are approxima8ons. In this OM, certain documents, including leases and other materials, are described in summary form only. These summaries do not purport to be complete. Neither the Landlord nor REF make any representa8on or warranty, expressed or implied, as to the accuracy or completeness of this OM or any of its contents, and no legal commitment or obliga8on shall arise by reason of your receipt of this OM or use of its contents; and you are to rely solely on your inves8ga8ons and inspec8ons of the Property in evalua8ng a possible purchase of the real property. The Landlord expressly reserves the right, at its sole discre8on, to reject any and all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any en8ty at any 8me with or without no8ce which may arise as a result of review of this OM. By receipt of this OM, you agree that this OM and its contents are of a confiden8al nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its non- public contents to any other en8ty without the prior wrizen authoriza8on of the Landlord or REF. The informa8on contained in this document has been obtained from sources believed reliable. You and your advisors should conduct a careful, independent inves8ga8on of the property to determine your sa8sfac8on of the suitability of the property for your needs.

4 Pricing and Financial Summary Suffolk, VA SUMMARY Price: $6,750,000 Cap Rate 6.00% Type of Ownership: Fee Simple Lot Size: 2.58 Acres Building Size: 14,673 SF Year Built: 2015 (New) Parking Spaces: 49 Offered: Free and Clear Wellness + : Incorporated into New Construc8on LEASE Lease: Absolute NNN Lease Term: 20 Years YRS Remaining on the Base Lease Term: 20 Years Renewal Op8ons: 5 years each TENANT SUMMARY Tenant Name: Rite Aid of VA Landlord: ADGR Suffolk Use: Retail Drug Store Lease Guarantor: Rite Aid Corp. RENT SUMMARY Period Annual Rent Years 1-10 $405, Years $445, Years Op8ons 1 & 2 Years Op8ons 3 & 4 Years Op8ons 5 & 6 RENT DETAILS $477, $510, TBD Fair Market Rent Base Rent (Annual): $405,320 Es8mated Rent Commencement: Nov 2015 Next Rental Increase: $445,852 Date of Next Increase: Nov 2025 End of Primary Term: Nov 2035

5 Rite Aid Informa8on OVERVIEW Ticker Symbol (NYSE): RAD Sector: Services Industry: Retail Loca8ons: 4,570 in 31 States Employees: 89,000 Corporate HQ: Camp Hill, PA Rite Aid, Inc. or RITE AID, RAD NYSE listed, is based in Camp Hill, PA and through its subsidiaries, operates retail drug stores. RITE AID operates in approximately 4,600 stores in 31 states and in the District of Columbia. This makes it the largest drugstore chain on the East Coast, and 3rd largest in the U.S. For the fiscal year ended March 1, 2015, Rite Aid reported sales of $26.5 billion. MOST RECENT ANNUAL RESULTS: March 1, 2015 Revenue: $26,528,377,000 Assets: $8,863,252,000 Gross Profit: $7,576,732,000 Liabili8es: $8,806,196,000 Gross Income: $7,580,000,000 Net Income: $2,109,173,000 Adjusted EBITDA: $1,322,843,000 Earnings per Share: $2.17 Why Invest in Rite Aid? Credit Rating has been upgraded Stock has recently been at a 5 year high Stock more than tripled in 2013 and climbing Been in business since 1962 New 20 Year Lease with a Corporate Guaranty

6 Loca8on Informa8on Suffolk, VA Property Details: Rite Aid store comprising 14,673 SF with a drive thru and the Wellness Plus design to be built at the signalized corner of US Rt 58 and Staley Drive. This lot shares the intersec8on with BB&T, Burger King, Arby s/bp Sta8on and Food Lion, and is within a block of a Days Inn, McDonalds and Hardees. Loca]on: Located right off the U.S. Rt 58 Exit of U.S. Rt 13, two of the major highways in the city of Suffolk. Suffolk is the largest city by area in Virginia and the 11 th in the US. It is part of the Hampton Roads metropolitan area including Chesapeake, Hampton, Norfolk, Newport News and Virginia Beach. Suffolk is the home of Planter s Peanuts, Lockheed Mar8n, the Greater Suffolk Medical Hospital, a major Target distribu8on center, the Naval Network Warfare Command, Navy Cyber Defense Opera8ons and Forces.

7 Demographic Highlights Subject Property in Suffolk, VA 2013 STATS 1 Mile 3 Miles 5 Miles Popula8on 3,282 15,478 38,151 Est. Households 1,200 5,924 13,920 $59,500 $60,775 Average HH Income $74,183 * The popula8on within 1 mile of the subject property loca8on has grown by 40.38% between 2000 and 2013, and 16% in the 5 mile range.

8 Rite Aid Site Plan Suffolk, VA

9 Store Photographs Suffolk, VA Lot at signalized corner Hardee s Food Lion BB&T Day s Inn Arby s/bp Burger King O Reilly s Econo McDonald s Lodge

10 Aerial Photograph of Property Suffolk, VA

11 Store Reloca]on Map: Store was formerly at 1240 Holland Rd., Suffolk, VA, 2 miles east of the new loca8on on Rt 58. Area Map Suffolk, VA

12 Regional Map Suffolk, VA

13 Highlights of the Rite Aid Lease Lease Type: The lease is an absolute triple net lease, whereby the tenant is responsible for the payment of all expenses and replacements related to operating and maintaining the property, including the roof and structure. The tenant shall also repair and maintain the building signage, lighting, sidewalks, paving, parking lot, glass and doors. Alterations: Tenant is not allowed to make any exterior or structural alterations to the building without the consent of the Landlord if the effect of such alteration, as completed, would materially decrease the value of the building or impair its structural integrity. Subleasing and Assignment: Tenant may sublease or assign the premises or any portion thereof, provided the tenant and guarantor continue to remain liable for the full performance of the their obligation under the lease. *** Note, ADGR Suffolk LLC ( Landlord ) and REF Advisory, LLC ( REF ) believe the information contained in this package to be accurate; however, a Purchaser should perform its own due diligence and investigation relating to the acquisition and Landlord and REF make no representation as to the accuracy or completeness of the information herein presented. Property is subject to prior sale, change of price, and withdrawal without notice.