BP GAS STATION GROUND LEASE

Transcription

1 CLICK HERE FOR AERIAL FOOTAGE BP GAS STATION GROUND LEASE CHARLOTTE, NC

2 TABLE OF CONTENTS MAPS 3 OFFERING OVERVIEW 5 INVESTMENT HIGHLIGHTS 6 AERIALS 7 AREA DEVELOPMENT 10 TENANT OVERVIEW 11 SITE PLAN 12 MARKET OVERVIEW 13 DEMOGRAPHICS 17 CONFIDENTIALITY 18 TRANSACTION TEAM NC RE LICENSE NO.: C9467 STEVE HORVATH horvath@berkeleycap.com CARL BRENDES brendes@berkeleycap.com RANSOME FOOSE foose@berkeleycap.com MEGHAN DAVIDSON davidson@berkeleycap.com MIKE LUCIER lucier@berkeleycap.com 2

3 RELATION MAP 7910 CAMBRIDGE COMMONS DRIVE 3

4 LOCATION MAP 7910 CAMBRIDGE COMMONS DRIVE 4 03

5 OFFERING OVERVIEW PROPERTY DETAILS NAME BP GAS STATION GROUND LEASE NET OPERATING INCOME $99,187 ADDRESS 7910 CAMBRIDGE COMMONS DRIVE RENT INCREASES 15% ON JANUARY 1 IN 2026, 2029 & 2034 MARKET CHARLOTTE, NC RENT COMMENCEMENT DECEMBER 14, 1998 BUILDING SIZE APPROX. 4,000 SF RENT EXPIRATION DECEMBER 31, 2038 LAND SIZE 1.81 AC LEASE TYPE ABSOLUTE NET GROUND LEASE PARKING* 19 SPACES ORIGINAL LEASE TERM 15 YEARS TENANT BP PRODUCTS NORTH AMERICA, INC. LEASE TERM REMAINING 21.5 YEARS YEAR BUILT 1998 OPTIONS NONE RIGHT OF FIRST REFUSAL YES, 15 DAYS FROM SIGNED LOI ASKING PRICE $2,045,000 (4.85% CAP RATE) *There are 16 fuel pumps on site. DEMOGRAPHIC SNAPSHOT 1-MILE 3-MILE 5-MILE 2022 POP. PROJECTION 7,584 33, , POP. ESTIMATE 6,850 29, ,463 POP. GROWTH % % 70.95% HH GROWTH % % 60.42% 2017 EST. AVG. HH INCOME $80,286 $80,778 $74,383 for detailed demographics, please click HERE TRAFFIC COUNTS AADT CAMBRIDGE COMMONS DR N/A HARRISBURG RD 12,500 I ,

6 INVESTMENT HIGHLIGHTS A2/A CREDIT TENANT BP P.L.C. is a British multinational oil and gas company headquartered in London, England. As of December 31, 2016, BP had operations in 72 countries worldwide, produced around 3.3 million barrels per day and had total proved reserves of billion barrels of oil equivalent. The company has around 18,000 service stations worldwide with their largest division as BP America in the United States. BP (NYSE:BP) has an excellent credit rating of A2/A. VERY LONG TERM GROUND LEASE 21.5 YEARS REMAINING BP has successfully been operating at the subject location since The initial 15 year term was set to expire in In 2010, the tenant exercised all three of their five-year options, extending out until Just recently in 2017, the tenant and landlord agreed to add an additional 10 years of term to the end of the lease in There are now 21.5 years remaining then no renewal options. THREE 15% RENT INCREASES There are three very large 15% rent increases built in throughout the term over the next 21.5 years. The rent will increase by 15% in 2026, 2029 and Between the lease term remaining and large rent increases, an investor should feel extremely safe about this investment. RECENT RENOVATION The tenant recently made improvements to both the exterior and interior of the building. LARGE 1.81 ACRE PARCEL This large 1.81 acre parcel is 0.1 miles off Interstate-485. A fuel station on this site is, without question, serving as the highest and best use as the only gas station at exit 39. I-485 CONSUMER TRAFFIC BP largely benefits from the 52,500 VPD that pass exit 39 on I-485. The fuel station is conveniently positioned immediately off the exit ramp. VERY GOOD PRICE VERSUS TOTAL COST APPROACH TENANT INVESTMENT The tenant has bade a major investment in the building, some site work, and soft costs all subordinate to a reasonable rent based only on land value. Therefore, the ground lease owner intrinsically has more price protection and upside relative to total replacement cost. EXCELLENT POPULATION GROWTH STRONG HOUSEHOLD INCOME This submarket of Charlotte has experienced high growth since 2000 as the population inside of three miles has increased by 123%. That same population inside three miles is projected to increase by 10.51% over the next five years. Average income levels of $80,000 per household compliment the growth well. MINIMAL NEARBY COMPETITION For roughly four miles on I-485, BP is one of the only gas stations immediately off the interstate accessible to vehicles at nearby exits. CONTINUED SUBURBAN DEVELOPMENT Rooftops continue to dominate the immediate area as residential home building has flourished over the past 20 years. This trend is forecasted to continue as household are expected to grow at a rate of 10% in the next five years. WELL-PERFORMING FOOD LION CENTER Food Lion recently underwent a $2MM interior renovation in This upfit complements an already aesthetically pleasing exterior of the shopping center. In addition, Food Lion has reported excellent sales in recent years. Also, the adjacent Wendy s performs well above the company s average unit sales volume. 180 ACRE MIXED USE DEVELOPMENT COMING NEARBY On June 21, 2017, it was announced that city council approved a massive new 180 acre development one exit down at I-485 and Rocky River Road. Considered to be Charlotte s next Birkdale Village, this 180 acre development called Farmington will include: a 120-room hotel, 200,000 SF of retail, 160,000 SF of office, 300 townhouses, 275 apartments, 120 units of active senior housing and a 14-screen movie theater. This development will expedite growth in the surrounding submarkets. 02 6

7 NORTHEAST AERIAL 28,062 STUDENTS RESIDENTIAL $250K - $450K RESIDENTIAL $150K - $250K 52,500 VPD RESIDENTIAL $150K - $250K HARRISBURG RD 12,500 VPD 7

8 OVERHEAD AERIAL CHARLOTTE CBD 13 MILES RESIDENTIAL $175K - $300K CHARLES T. MYERS GOLF COURSE RESIDENTIAL $150K - $250K CAMBRIDGE COMMONS DR HARRISBURG RD 12,500 VPD 52,500 VPD 8

9 CLOSEUP AERIAL 52,500 VPD HARRISBURG RD 12,500 VPD 9

10 AREA DEVELOPMENT CITY COUNCIL APPROVES MASSIVE NEW 180 ACRE DEVELOPMENT CHARLOTTE S NEXT BIRKDALE VILLAGE As Charlotte continues it s ever expansive growth trend, there s one thing everyone seems to be asking for more retail. This past Monday night, the Charlotte City Council approved a major new retail-heavy 180-acre development in North Charlotte, called Farmington. The new mixed-use development will be similar to Baxter Village in Fort Mill, Birkdale Village in Huntersville, and Arsley [sic] in South West Charlotte only bigger. It will be built on a 180-acre tract of raw land just north of Rocky River Road near I-485. According to MPV Properties, the new Farmington development will include: A 120-room hotel. A 14-screen movie theater. 200,000 square feet of retail space. 160,000 square feet of office space, including medical offices. 300 townhouses. 275 apartments. 120 units of active senior housing. It will also include walking trails, bike lanes, and a greenway connection. FUTURE FARMINGTON DEVELOPMENT June 21, Click HERE to view article online. 10

11 TENANT OVERVIEW BP in America Committed to the economy and energy security For 150 years, BP has been contributing to America s economy and its energy security. Today, the U.S. is central to BP s global business, and the company is committed to the communities where BP employees live and work ARCO s oldest heritage company was founded in Pennsylvania in In 2000, ARCO joined the BP group of companies. BP opens its first office in Anchorage, Alaska. Prudhoe Bay remains one of the largest oil fields in North America, with production topping more than 12 billion barrels. BP acquires Sohio, making it the cornerstone of a new national operation, BP America. Sohio s history dates back to the Standard Oil Company, which was incorporated in Cleveland, Ohio, in BP and Amoco merge, becoming the largest producer of oil and gas in the country. Amoco was originally the Standard Oil Company of Indiana, dating back to One of the world s most recognized lubricant brands, Castrol, becomes part of the BP group of companies. $90 billion+ Investment over the past 10 years ( ) 145,000 Jobs supported by BP s U.S. business activities 1.3 million Barrels of oil equivalent (BOE) produced and refined per day in 2015 Fast facts BP is the leading marketer of natural gas in North America. In 2015, BP spent nearly $20 billion with U.S. vendors. Nearly 40 percent of BP shares are held in the U.S., more than in any other nation. September PLEASE CLICK HERE TO VIEW ONLINE

12 SHOPPING CENTER SITE PLAN 12

13 MARKET OVERVIEW CHARLOTTE, NC 13

14 MARKET OVERVIEW MARKET OVERVIEW JOBS & INVESTMENT INFRASTRUCTURE Charlotte Top Employers by Employee Count Carolinas Healthcare System: Wells Fargo: Charlotte-Mecklenburg Schools: Wal-Mart: 5 TH Busiest airport in the nation, measured by takeoffs and landings Bank of America: Novant Health Inc.: American Airlines Group: Lowe's Co's Inc.: Harris Teeter: Duke Energy Corp.: 20% Employment increases projected over next 5 years 50% Increase in Annual Rate of Venture Capital Funding since 2010 $$$ 236 Million Dollars in Venture Capital Funding was invested in Departures and landings daily out of Charlotte-Douglas International Airport. GOOGLE FIBER brought the fastest available internet to Charlotte 14

15 MARKET OVERVIEW PEOPLE REAL ESTATE 17,500 New degreed residents move to Charlotte each year 33 The median age of residents who live in Charlotte $1,052 The average rent for an apartment in Charlotte $$$ 2 Billion dollars in real estate projects were under construction 72% Increase in the amount of institutionally-owned office space in Uptown Charlotte 5.3 Million square feet of office planned or under construction STORE 10 TH Largest population growth in real numbers across the U.S. during ,392 Square feet of retail space Housing planned or under construction 9,725 units planned or under construction

16 MARKET OVERVIEW Bank of America Stadium - Home of the Carolina Panthers Spectrum Center - Home of the Charlotte Hornets BB&T Ballpark - Home of the Charlotte Knights Charlotte Motor Speedway 16

17 DEMOGRAPHICS POPULATION 1-MILE % 3-MILE % 5-MILE % 2022 Projection 7,584 33, , Estimate 6,850 29, , Census 5,719 23,704 87, Census 2,730 13,384 60,519 Growth % 10.51% 9.12% Growth % 26.26% 17.94% Growth % 77.11% 44.95% 2017 EST. HOUSEHOLDS BY HOUSEHOLD INCOME 2,263 10,074 36,583 Income < $15, % % 3, % Income $15,000 - $24, % % 2, % Income $25,000 - $34, % % 3, % Income $35,000 - $49, % 1, % 5, % Income $50,000 - $74, % 2, % 7, % Income $75,000 - $99, % 1, % 5, % Income $100,000 - $124, % % 3, % Income $125,000 - $149, % % 1, % Income $150,000 - $199, % % 2, % Income $200,000 - $249, % % % Income $250,000 - $499, % % % Income $500, % % % 2017 EST. AVERAGE HOUSEHOLD INCOME $80,286 $80,778 $74,383 17

18 CONFIDENTIALITY Berkeley Capital Advisors, LLC ( BCA ) has been authorized by the owner of the subject property (the Seller ) to present you with this marketing package. This is a confidential package intended solely for your own limited use and benefit, as a principal, in considering whether you desire to pursue negotiations to acquire the subject property. Your receipt and acceptance of this package serves to acknowledge your agreement to: (1) hold the information and materials contained herein, and the offering they represent, in the strictest of confidence; (2) not disclose, directly or indirectly, the information and materials contained herein, or the offering they represent, to any other person, firm or entity without prior written authorization from BCA or the Seller; (3) not use the information and materials contained herein in any fashion or manner detrimental to the interest of BCA or the Seller; (4) not disturb any tenants in possession of the subject property nor reveal to them the offering this package represents. This marketing package was prepared by BCA and it has been reviewed by representatives of the Seller. The information and materials contained herein are selective and limited in nature, and neither BCA nor the Seller purports this to be an all-inclusive report on the subject property. Within this package, certain leases, documents and other materials are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements involved, nor do they purport to constitute a legal analysis of the provisions of those documents. Interested and qualified prospective purchasers will be afforded an opportunity to review additional information and to inspect the subject property, and all such prospective purchasers should conduct their own independent due diligence. This package is based in part upon information supplied by the Seller and in part upon information obtained by BCA from sources believed to be reliable. All income, expense and/or investment projections contained herein are provided for general reference purposes only, in that they are based on assumptions relating to the general economy, competition and other factors beyond the control of BCA and the Seller, and all such projections are therefore subject to variation. This package shall not be deemed an indication of the state of affairs of the subject property, nor constitute an indication that there has been no change in the business or affairs of the subject property since the date of preparation of this package. Neither BCA, the Seller, nor any of their respective officers, employees or agents, has made or does make any representation or warranty, expressed or implied, as to the accuracy or completeness of this package or any of its contents, and no legal commitments or obligations shall arise by reason of this package or its contents. BCA and the Seller expressly reserve the right, at their sole discretion, to alter or amend the terms of this offering, to reject any or all expressions of interest or offers to acquire the subject property and/or to terminate discussions with any entity at any time with or without notice. The Seller shall have no legal commitment or obligation to any entity reviewing this package or making an offer to acquire the subject property unless and until a written agreement for such acquisition has been fully executed, delivered and approved by the Seller and any conditions to the Seller s obligations thereunder have been satisfied or waived. Parties seeking to act in a third-party brokerage capacity must register their client(s) with BCA prior to receiving or dispersing any marketing information. BCA will not recognize any third-party brokerage relationships without first receiving and approving such written client registration, nor will BCA or the Seller be obligated for any brokerage claims which may result, regardless of such broker s involvement in procuring a purchaser for the subject property. This package is the property of BCA. Photocopying, re-typing or other duplication of the information and materials contained herein is expressly prohibited. The information contained within this package and the offering of the subject property may not be announced, posted or otherwise publicized in any electronic media (such as, by way of example only, any Internet or broadcast facsimile communications). If, after reviewing this package, you have no further interest in acquiring the subject property at this time, please return this package in its entirety to BCA. Likewise, if the terms contained in this Confidentiality & Disclaimer section are not acceptable to you, please immediately return this package to BCA. The terms and conditions stated in this Confidentiality & Disclaimer section apply and relate to all of the sections of this package as if stated independently therein. Prospective purchasers of the subject property are hereby notified that Berkeley Capital Advisors, and its agents, are acting in the capacity of a Seller s Agent during the course of this offering, and as such are solely representing the interests of the Seller. DESCRIPTION OF AGENT DUTIES AND RELATIONSHIPS Before you begin working with any real estate agent, you should know who the agent represents in the transaction. Every listing agreement, buyer agency agreement or other agreement for brokerage services in a real estate sales transaction in North Carolina must contain this Description of Agent Duties and Relationships [N.C. Real Estate Commission Rule 21 NCAC 58A.0104(c), eff. 7/1/95]. Real estate agents should carefully review this information with you prior to entering into any agency agreement. AGENT S DUTIES When you contract with a real estate firm to act as your agent in a real estate transaction, the agent must help you obtain the best price and terms possible, whether you are the buyer or seller. The agent also owes you the duty to: Safeguard and account for any money handled for you Act with reasonable skill, care and diligence Be loyal and follow reasonable and lawful instructions Disclose to you any information which might influence your decision to buy or sell Even if the agent does not represent you, the agent must still be fair and honest and disclose to you all material facts which the agent knows or reasonably should know. A fact is material if it relates to defects or other conditions affecting the property, or if it may influence your decision to buy or sell. This does not require a seller s agent to disclose to the buyer the minimum amount the seller will accept, nor does it require a buyer s agent to disclose to the seller the maximum price the buyer will pay. AGENTS WORKING WITH SELLERS A seller can enter into a listing agreement with a real estate firm authorizing the firm and its agent(s) to represent the seller in finding a buyer for his property. The listing agreement should state what the seller will pay the listing firm for its services, and it may require the seller to pay the firm no matter who finds the buyer. The listing firm may belong to a listing service to expose the seller s property to other agents who are members of the service. Some of those agents may be working with buyers as buyers agents; others will be working with buyers but still representing the sellers interests as an agent or subagent. When the buyer s agents and seller s subagents desire to share in the commission the seller pays to the listing firm, the listing agent may share the commission with the seller s permission. AGENTS WORKING WITH BUYERS A buyer may contract with an agent or firm to represent him (as a buyer s agent), or may work with an agent or firm that represents the seller (as a seller s agent or subagent). All parties in the transaction should find out at the beginning who the agent working with the buyer represents. If a buyer wants a buyer s agent to represent him in purchasing a property, the buyer should enter into a buyer agency agreement with the agent. The buyer agency agreement should state how the buyer s agent will be paid. Unless some other arrangement is made which is satisfactory to the parties, the buyer s agent will be paid by the buyer. Many buyer agency agreements will also obligate the buyer to pay the buyer s agent no matter who finds the property that the buyer purchases. A buyer may decide to work with a firm that is acting as agent for the seller (a seller s agent or subagent). If a buyer does not enter into a buyer agency agreement with the firm that shows him properties, that firm and its agents will show the buyer properties as an agent or subagent working on the seller s behalf. Such a firm represents the seller (not the buyer) and must disclose that fact to the buyer. 18

19 CHARLOTTE 1228 East Morehead Street, Suite 200 Charlotte, North Carolina ASHEVILLE 138 Charlotte Street, Suite 220 Asheville, North Carolina NASHVILLE th Avenue, Suite 300 Nashville, Tennessee BERKELEYCAP.COM