SHOPS OF BERRYHILL OFFERING MEMORANDUM

Transcription

1 OFFERING MEMORANDUM 1890 BERRYHILL RD, CORDOVA, TN EAST RETAIL SUBMARKET RETAIL SHOPPING CENTER 17,360 sf INVESTMENT OPPORTUNITY CHIMNEY ROCK BLVD BERRYHILL RD N For more information, please contact: DAVID B. CURRAN JR., SIOR, CCIM Senior Vice President (901) dcurran@commadv.com CUSHMAN & WAKEFIELD COMMERCIAL ADVISORS 5101 Wheelis Drive, Suite 300 Memphis, TN No warranty or representation, express or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any specific listing conditions imposed by our principals.

2 17,360 SF Available PRICING & FINANCIAL SUMMARY OFFERING SUMMARY PRICE $1,200,000 PRICE PER SQUARE FOOT $69.12 SIZE 17,360 RSF YEAR BUILT 2002 LOT SIZE 1.69 acres ZONING CMU-2 VITAL DATA CAP RATE - CURRENT 10.7% NOI - CURRENT $127,908 CAP RATE - PRO FORMA 15.0% NOI - PRO FORMA $180,153 INVESTMENT HIGHLIGHTS Below market rents Upside through leasing vacancy and increasing rents at renewal on exisiting tenants Parking lot seal coated in 2013 Dense suburban location Solid traffic counts: Berryhill Rd- 8,845 VPD Chimney Rock Blvd- 10,337 VPD Bay sizes range from 1,400 SF - 4,200 SF VITAL DATA FedEx Corp. Memphis City Schools United States Government Tennessee State Government Methodist Le Bonheur Healthcare Baptist Memorial Health Care Corp. City of Memphis Wal-Mart Stores Inc. Shelby County Government Shelby County Schools Naval Support Activity Mid- South The Kroger Co. Ceasars Entertainment St. Jude Children s Research Hospital University of Tenn. Health Science Center Technicolor First Horizon National Corp. Memphis Light, Gas & Water Century Management Inc. The University of Memphis The ServiceMaster Co. International Paper Co. Saint Francis Healthcare Veterans Affairs Medical Center

3 OFFERING MEMORANDUM PROPERTY HIGHLIGHTS T he Shops of Berryhill, a 17,360 SF neighborhood shopping center, is strategically located three miles south of Interstate 40 and two miles east of Germantown Parkway. The property has frontage on both Chimney Rock Blvd. and Berryhill Rd., two major local arteries. The center benefits from a large and affluent local population. Recent trends indicate continuing population growth, especially along the nearby Germantown Parkway, one of the most desireable residential areas outside of Memphis. Notable tenants include Goodwill and Subway.

4 17,360 SF Available LOCATION FEATURES Located on Berryhill Rd at the southeast corner or Chimney Rock Blvd Easily accessible to a variety of office users and residential neighborhoods 25 minutes from Memphis International Airport 20 minutes from Downtown Memphis Surrounded by residential neighborhoods Located in East Retail Submarket BERRYHILL RD CHIMNEY ROCK BLVD

5 OFFERING MEMORANDUM BUILDING FEATURES SHOPPING CENTER PLAN UNIT # TENANT SF 100 Rayford s Hot Wings 1, Subway 1, Mimi s Nails 1, China Taste 1, Dollar Day PLUS 1, CJ s First Class Cuts 1, Available 4, Berryhill Quickmart 2, Goodwill 2,345

6 17,360 SF Available INCOME & EXPENSE SUMMARY CURRENT OCCUPANCY 76% TOTAL SF VACANT SF 17,360 sf 4,200 sf AVERAGE IN-PLACE GROSS RENT/SF $17.14 Gross rate ANNUALIZED IN-PLACE GROSS RENTS $216,477 ANNUALIZED EXPENSES REAL ESTATE OPERATING & MAINTENANCE $34,954 REAL ESTATE & OTHER TAXES $29,323 PROPERTY MANAGEMENT FEES $8,659 INSURANCE $4,518 GENERAL & ADMINISTRATIVE $11,115 TOTAL EXPENSES $88,569 $5.10 psf ANNUALIZED NOI ON IN-PLACE INCOME $127,908 ADDITIONAL GROSS INCOME AFTER LEASING VACANCY NEW NOI AFTER LEASE UP & STABILIZATION $55,902 $180,153 ASKING SALES PRICE $1,200,000 $69.12/sf CAP RATE ON IN PLACE INCOME 10.7% CAP RATE ON PRO FORMA INCOME 15.0% HIGHLIGHTS Retail strip center 17,360 SF 1.69 acres Built in 2002 Zoning CMU-2 Tenants include Subway, QuickMart, Rayford s Wings, Goodwill, nail salon, Chinese restaurant, Dollar Store, & barber shop

7 OFFERING MEMORANDUM MEMPHIS OVERVIEW Memphis is one of the foremost global logistics centers in the United States because of its strategic location near the population center of the country. The city is home to one of the world s key shipping and logistics airports, vast interstate and railway systems, and one of the most critical navigable waterways in the US, the Mississippi River. Located at the southwestern tip of the state of Tennessee, Memphis is the region s primary economic focal point and the state s largest city with a population of 1.3 million. Memphis serves as a critical manufacturing and distribution hub for products bound for each region of the country and beyond. Highlights of Memphis include: Home to FedEx World Air and World Ground Hubs. Founded in Memphis in 1973, currently employing over 32,000 local professionals, FedEx s ongoing $2B national expansion continues to enhance its Memphis facilities. A major inland port highlighted by its connectivity to large international and national markets. Memphis International Airport has reported the second largest worldwide cargo volume for 2013 and was previously the world s largest cargo airport for 18 years. At the crossroads of four critical national Interstates (I-40, I-55, the proposed I-22, and the future I-69), Memphis anchors one of the busiest trucking corridors in the US. Host to an enormous inventory of international companies with large national distribution centers including Nike, Williams Sonoma, Johnson & Johnson Health Care Services, Technicolor, Nissan Parts, Kroger, Kraft, and Pfizer. With a highly-skilled and specialized workforce, Memphis leads the nation s top 100 cities with the highest workforce percentage involved in logistics, transportation, warehousing, and utilities. The Memphis Retail Market has continued on a positive note with over 150,000 square feet of absorption since January 1, Vacancy rates dipped below the 11.6% mark compared to 12.1% second quarter last year; while simultaneously overall rental rates are increasing, specifically in the East submarket where rates are $15.43/SF this quarter. The Shops at Berryhill is located in the Cordova Submarket and at the end of the second quarter 2014, 62 buildings made up the 3,145,754 square feet of total retail space. The vacancy rate was 11.2%, which was down from year end Average asking rental rates in the Cordova Submarket are $14.04/SF NNN.

8 OFFERING MEMORANDUM 17,360 SF Available PROPERTY N CHIMNEY ROCK BLVD SHOPS OF BERRYHILL BERRYHILL RD CORDOVA HIGH SCHOOL DEMOGRAPHICS 1 MILE RADIUS 3 MILE RADIUS 5 MILE RADIUS POPULATION ,250 51, ,042 POPULATION 2018 EST 8,580 53, ,496 GROWTH % %.8%.8% AVERAGE HH INCOME $85,648 $78,018 $80,334 For more information, please contact: DAVID B. CURRAN JR., SIOR, CCIM Senior Vice President (901) dcurran@commadv.com CUSHMAN & WAKEFIELD COMMERCIAL ADVISORS 5101 Wheelis Drive, Suite 300 Memphis, TN No warranty or representation, express or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any specific listing conditions imposed by our principals.