Verizon Wireless. Offering Memorandum Patterson Street Ogdensburg, New York 13669

Transcription

1 Representative Photo Offering Memorandum Verizon Wireless 1200 Patterson Street Ogdensburg, New York Highly Passive NN Lease New York State Location Dense Retail Corridor

2 Confidentiality and Restricted Use Agreement This Confidential Offering Memorandum ( COM ) is provided by Stan Johnson Company ( SJC ), solely for your consideration of the opportunity to acquire the commercial property described herein (the Property ). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC. This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC. The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title. BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the Information ), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such party s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief. Offered Exclusively by Ken Hedrick Managing Director khedrick@stanjohnsonco.com Jerry Hopkins Senior Director jhopkins@stanjohnsonco.com D. Andrew Ragsdale Director aragsdale@stanjohnsonco.com Scott Briggs Associate Director sbriggs@stanjohnsonco.com In Association With: John Rotunno NY Broker # Stan Johnson Company 6120 South Yale Avenue Suite 300 Tulsa, Oklahoma P: stanjohnsonco.com

3 Table of Contents Section 1: About the Investment The Offering & Investment Highlights... 5 Pricing & Property Overview... 6 Section 2: About the Tenant Tenant Overview...8 Section 3: About the Property Lease Abstract & Rent Roll Property Overview...11 Section 4: About the Location Location Overview...13 Aerial Map...14 Demographics...15 Representative Photo

4 Section One About the Investment

5 Purchase Price: $1,034,483 Cap Rate: 7.25% The Offering Investment Highlights Stan Johnson Company is pleased to offer for sale to qualified investors the opportunity to acquire the fee simple interest in the land and the building of a single tenant retail facility located in Ogdensburg, New York. The Property consists of 2.50 acres and a 2,500 square foot build-to-suit cellular retail sales facility that was constructed specifically for the Tenant with an initial rent commencement occurring in August The Property is situated near the intersection of New York 812 and Patterson Street in the heart of Ogdensburg s retail district. Area tenants include Peebles, Walgreens, Monro Muffler, Buster s Sports Bar, ALDI, Advance Auto, McDonald s, Burger King and many more. Average daily traffic counts include more than 12,000 vehicles per day. Ogdensburg is an international city with much of its industry supporting exports to Canada as it offer direct access to Canada s fourth largest MSA Ottawa via the only U.S. Port on the St. Lawrence Seaway and via the Ogdensburg-Prescott International Bridge. It also offers access to the second largest MSA Montreal. The Tenant s lease is for a period of ten (10) years, commencing in August 2013, with two (2) options to extend the lease for a period of five (5) years each. Rent is $75,000 net to Landlord with responsibilities limited to maintenance of roof, structure and parking. Cellular Sales of New York LLC, the Tenant, occupies the Property and utilizes it as a cellular retail sales facility serving the St. Lawrence County Market. Cellular Sales of New York LLC is an authorized retailer for Verizon Communications, Inc. a worldwide leading provider of communications, information and entertainment products. Verizon Communications, Inc. (NYSE: VZ) hold an investment grade credit rating (S&P: BBB+) and generated over $127 billion in sales in 2014 yielding it nearly $10 billion in net income. It also maintains a net worth in excess of $9 billion. Long Term Lease 10 Year Primary Lease Term, Commenced in August 2013 Highly Passive NN Lease Highly passive NN Lease with Landlord Responsibilities Limited to Maintenance of Roof, Structure and Parking Retail Corridor The Subject Property is well located within a retail corridor amongst many national tenants including Walgreens, ALDI, Peebles, Advance Auto and more Good Demographics Average Household Incomes in Excess of $50k+ Port City Location The Subject Property is well located within the Ogdensburg market, with direct access to Ottawa (4th Largest MSA in Canada) and Montreal (2nd Largest MSA in Canada) Only Port and Bridge along the Saint Lawrence Seaway Leading Communications Provider Verizon Wireless, Inc. Sizeable Operator Cellular Sales is an authorized retailer for Verizon WIreless, Inc. and it operates over 600 locations nationwide. Verizon Wireless Ogdensburg, NY 5

6 Pricing Overview Offering Price: $1,034,483 Offering Cap Rate: 7.25% Current Rent: $75,000 Tenant: Cellular Sales of New York, LLC (NY) Property Overview Building Size: Land Area: 2,500 SF 2.5 acres Year Built: 2013 Parcel ID: Interest: Fee Simple Verizon Wireless Ogdensburg, NY 6

7 Section Two About the Tenant

8 Representative Photo Tenant Overview Tenant Profile Verizon Communications Inc., (NYSE: VZ) headquartered in New York, is a holding company that, acting through its subsidiaries, is one of the world s leading providers of communications, information and entertainment products and services to consumers, businesses and governmental agencies. With a presence around the world, Verizon offers voice, data and video services and solutions on its wireless and wireline networks that are designed to meet customers demand for mobility, reliable network connectivity, security and control. Cellular Sales is a management company that operates authorized wireless phone stores for Verizon Wireless throughout the United States. Cellular Sales is an exclusive retailer for Verizon Wireless products and services. Since 1993, when the company was founded in Knoxville, TN as a retailer for Cellular One, Cellular Sales has experienced more than 22 consecutive years of positive growth. For the past five years, Inc. Magazine has named Cellular Sales one of the nation s fastest growing retail companies in the country. This year, Inc. Magazine listed Cellular Sales at No. 61 on its list of the nation s fastest growing retail companies according to gross dollars of growth. With more than 550 stores in locations across the South, Midwest and mid-atlantic regions and over 4,600 employees the prospects are positive for this growth company. Inc. Magazine estimates that 2014 revenue was $1.27 billion. Verizon Communications Inc. was formed in June 2000, with the merger of Bell Atlantic Corp. and GTE Corp. Verizon began trading on the New York Stock Exchange (NYSE) under the VZ symbol in July It also began trading on the NASDAQ exchange under the same symbol on March 10, Verizon Communications was added to the Dow Jones Industrial Average in Verizon has a highly skilled, diverse and dedicated workforce of approximately 177,300 employees as of December 31, Tenant: Cellular Sales of New York, LLC (NY) Parent: Cellular Sales of Knoxville, Inc. Brand: Verizon Communications, Inc. Tenant Business: Telecommunications Headquarters: New York, NY Traded As: NYSE: VZ Credit Rating: S&P: BBB+/Stable Total Revenue (FY2014): $ billion Net Income (FY2014): $9.625 billion Net Worth (3/31/2015): $9.339 billion Number of Employees: 177,300 (as of 12/31/2014) Website: Verizon Wireless Ogdensburg, NY 8

9 Section Three About the Property

10 Lease Abstract Tenant: Trade Name: Cellular Sales of New York, LLC (NY) Verizon Wireless Occupancy: 100% Address: 1200 Patterson Street, Ogdensburg, NY Lease Execution: April 26, 2013 Rent Commencement: August 1, 2013 Current Expiration: July 31, 2023 Initial Term: Renewal Options: Renewal Notice: Term Remaining: Expense Structure: Taxes: Utilities: LL Maintenance: Estoppel Period: Ten (10) Years Two (2), Five (5) Year 180 Days 7.1 Years NN Lease - Roof, Structure & Parking Tenant pays as Additional Rent the Real Estate Taxes assessed against the Premises and Building. Tenant pays directly and reimburses Landlord if billed. Landlord agrees to maintain the exterior of the Building, including the structure, roof, foundation, sidewalks and façade of the Building. Twenty (20) Days Rent Roll PERIOD LEASE YR. BEGIN END NOTICE ANNUAL $/SF Initial Term Years 1-5 8/1/2013 7/31/2018 $75, $30.00 Initial Term Years /1/2018 7/31/2023 2/1/2023 $75, $ st Option Years /1/2023 7/31/2028 2/2/2028 $75, $ nd Option Years /1/2028 7/31/2033 $75, $30.00 Verizon Wireless Ogdensburg, NY 10

11 Property Overview Interest: Address: City, State, Zip: County: Town: Parcel ID: Fee Simple 1200 Patterson Street Ogdensburg Saint Lawrence Oswegatchie Year Built: 2013 Type: No. of Buildings: Stories: Land Area (Acres): Retail - Freestanding One One Land Area (SF): 108,900 Total RBA: 2,500 Frontage: 78' on Patterson Street Verizon Wireless Ogdensburg, NY 11

12 Section Four About the Location

13 Ogdensburg Armory Ogdensburg Lighthouse Ogdensburg-Prescott International Bridge Location Overview Ogdensburg is a city in St. Lawrence County, New York. The population was 11,128 at the 2010 census. Ogdensburg has become a cross-border shipping center due to Canadians ordering goods on the internet and having them delivered to package receiving companies in Ogdensburg, and then driving to Ogdensburg to bring the items into Canada themselves. The Port of Ogdensburg is the only U.S. port on the St. Lawrence Seaway. The Ogdensburg Prescott International Bridge, northeast of the city, links the United States and Canada, with a direct highway from Prescott to Ottawa, the capital of, and the fourth largest MSA in, Canada. St. Lawrence County, a delightfully rural mix of farms, forests and small towns, is the largest county in New York State and the fifth largest United States county east of the Mississippi River. The beautiful St. Lawrence River forms the boundary between St. Lawrence county and its neighboring counties in Ontario, Canada. The northern gateway to the fabulous Thousand Islands area is found in St. Lawrence s river Towns of Morristown and Hammond. Acco Corp. chose to locate its eastern North America distribution center in Ogdensburg, and the Cives Corp. distributes structural steel throughout the Northeastern U.S. from its facility in the Village of Gouverneur. St. Lawrence County is conveniently located close to Ottawa, Ontario (Canada s capital city), and to Montreal, Quebec (North America s French-speaking metropolis). St. Lawrence County is also home to SUNY Potsdam and its Crane School of Music, Clarkson University, St. Lawrence University, SUNY Canton Technical College, SUNY College of Environmental Science and Forestry s Ranger School, and Wadhams Hall and Seminary.

14 Ogdensburg Water Treatment Ogdensburg Public Library Ogdensburg Business Center Ogdensburg Journal Lockwood Civic Center Ogdensburg Cinemas Ogdensburg Police Dept. John F Kennedy School NW Technical School State Hwy 37 (11,966 VPD) Claxton- Hepburn Medical Center Rishe s Auto Ogdensburg City School District State Hwy 68 (6,658 VPD) Howland Pump & Supply Northern Equipment Madill Elementary United Helpers Ogdensburg International Airport

15 Demographics 1200 Patterson St. Ogdensburg, NY 0-1 mi. 0-3 mi. 0-5 mi. Population 2000 Population 7,168 13,545 15, Population 6,827 12,374 13, Population 6,897 12,363 13, Population 6,963 12,347 13, Annual Rate 0.19% -0.02% 0.01% Households 2000 Households 2,841 4,630 5, Households 2,766 4,552 5, Total Households 2,818 4,549 5, Total Households 2,850 4,546 5, Annual Rate 0.36% -0.01% 0.03% Race and Ethnicity 2015 White Alone 96.5% 89.0% 89.0% 2015 Black Alone 0.6% 6.6% 6.6% 2015 American Indian/Alaska Native Alone 0.7% 0.8% 0.7% 2015 Asian Alone 0.7% 0.8% 0.8% 2015 Pacific Islander Alone 0.0% 0.0% 0.0% 2015 Other Race 0.1% 1.5% 1.5% 2015 Two or More Races 1.5% 1.4% 1.4% 2015 Hispanic Origin (Any Race) 1.0% 3.4% 3.4% 2015 Median Household Income $37,209 $37,648 $38, Average Household Income $48,879 $50,241 $51,813

16 Ken Hedrick Managing Director Jerry Hopkins Senior Director going beyond D. Andrew Ragsdale Director Scott Briggs Associate Director In Association With: John Rotunno NY Broker # Stan Johnson Company 6120 South Yale Avenue Suite 300 Tulsa, Oklahoma P: stanjohnsonco.com The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price Verizon or conditions, Wireless Ogdensburg, or withdrawal NY 16 without notices.