SINGLE TENANT NET LEASE. Safeway 702 North 5th Ave, Sandpoint, ID

Transcription

1 SINGLE TENANT NET LEASE Safeway 702 North 5th Ave, Sandpoint, ID

2 Exclusively Marketed By Introduction Disclaimer This Investment Offering Memorandum has been prepared by Thomas Company and does not purport to provide a necessarily accurate summary of the Property or any of the documents related thereto, nor do they purport to be all inclusive or to contain all of the information which prospective investors may need or desire. All projections have been developed by Seller, Thomas Company and designated sources, and are based upon assumptions relating to the general economy, competition and other factors beyond the control of Seller, and therefore are subject to variation. No representation is made by Seller or Thomas Company as to the accuracy or completeness of the information contained herein, and nothing contain herein, is, or shall be relied on as a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be correct, Seller and its officers, directors and employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, Thomas Company, Seller and its officers, directors and employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or omission from the Investment Offering Memorandum or any other written or oral communication transmitted or made available to the recipient. The Investment Offering Memorandum does not constitute a representation that there has been a change in the business or affairs of the Property or Seller since the date of preparation of the Investment Offering Memorandum. Analysis and verification of the information contained in the Investment Offering Memorandum is solely the responsibility of the prospective purchaser. Seller and Thomas Company each expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers regarding the Property and/or terminate discussions with any entity at any time with or without notice. Seller shall have no legal commitment or obligation to sell the property to any entity reviewing the Investment Offering Memorandum or making an offer to purchase the Property unless and until such offer is approved by Seller, a written agreement for the purchase of the Property has been fully executed, delivered and approved by Seller and its legal counsel and any conditions to Seller s obligations thereunder have been satisfied or waived. This Investment Offering Memorandum and the contents are of a confidential nature. By accepting the Investment Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose the Investment Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Seller, and that you will not use the Investment Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or Thomas Company. If you do not have an interest in the Property at this time, please return the Investment Offering Memorandum forthwith Thomas Company PLEASE CONTACT JEFFREY S. THOMAS THOMAS COMPANY 210 Third Avenue South Suite 5C Seattle, WA JEFF@THOMASCOMPANY.COM THOMASCOMPANY.COM ID Real Estate License: #DB46528

3 TABLE OF CONTENTS EXECUTIVE SUMMARY Offering Highlights The Property The Lease Rent Schedule PROPERTY OVERVIEW Site Map/Demographics Area Maps Market Overview TENANT OVERVIEW 11 Albertsons Companies, LLC

4 4 EXECUTIVE SUMMARY THE OFFERING Thomas Company is pleased to offer for sale a well-located Safeway store totaling +/- 44,369 square feet. The property is offered free and clear of debt. The store has +/- 20 years remaining on a triple-net lease with no landlord responsibilities. INVESTMENT HIGHLIGHTS Secure Cash Flow Albertsons Companies, LLC ( Albertsons, or the Company ) is the 2nd largest traditional grocer in the United States serving over 34 million customers per week and generating $60 billion in sales annually. As of June 2017, the Company operated 2,329 stores across 35 states under 20 well-known banners with long operating histories. Long-Term Lease The store has +/- 20 years remaining on the in-place lease, providing the Landlord with consistent management-free cash flow during that time. There is no rent holiday in the lease. Passive Ownership The Tenant has executed a triple-net (NNN) lease with no Landlord responsibilities.

5 5 EXECUTIVE SUMMARY THE PROPERTY ADDRESS 702 North 5th Ave, Sandpoint, ID PRICE $7,290,000 CAP RATE 5.45% ANNUAL RENT $397,291 BUILDING SIZE +/- 44,369 LAND SIZE +/ Acres YEAR BUILT Renovated in 2010 / Built in 1982 Pulaski, TN Milledgeville, GA

6 6 EXECUTIVE SUMMARY THE LEASE TENANT Safeway, Inc. GUARANTOR Albertsons Companies, LLC OCCUPANCY 100% LEASE COMMENCEMENT 1/18/18 LEASE EXPIRATION 1/31/38 REMAINING LEASE TERM Approx. 20 Years LANDLORD RESPONSIBILITIES The Tenant is responsible for all repair and maintenance of the property, including the roof and structure. RENT INCREASES Years 2-5: 1.50% annual increases Year 11: 7.50% increase Year 16: 7.50% increase (See Rent Schedule on Page 7) EXTENSION OPTIONS 8 x 5-year extension options. EXTENSION OPTION RENT Option Periods 1-3: 7.50% increase at the beginning of each option. Option Periods 4-8: Fair Market Rent (as defined in the Lease), but not lower than the rent during the previous term. LEASE STRUCTURE NNN

7 7 EXECUTIVE SUMMARY RENT SCHEDULE Lease Year Increase Monthly Rent Annual Rent 1 $33, $397, % $33, $403, % $34, $409, % $34, $415, % $35, $421, $35, $421, $35, $421, $35, $421, $35, $421, $35, $421, % $37, $453, $37, $453, $37, $453, $37, $453, $37, $453, % $40, $487, $40, $487, $40, $487, $40, $487, $40, $487,292.87

8 8 PROPERTY OVERVIEW SITE MAP DEMOGRAPHICS Larch St Est. Population 1mi 3mi 5mi 5,638 11,385 15,571 Traffic Counts 21,000 Daily N 4th Ave Est. Population Growth mi 3mi 5mi 4.00% 22.00% 22.00% Est. Ave HH Income 1mi 3mi 5mi 2 $54,181 $58,832 $61,231 Shell Median Age 1mi 3mi 5mi Fir St

9 9 PROPERTY OVERVIEW AREA MAP Safeway 702 North 5th Avenue, Sandpoint, Idaho Sandpoint Spokane

10 10 PROPERTY OVERVIEW MARKET OVERVIEW SANDPOINT, IDAHO Sandpoint is a scenic resort destination and retail hub in northern Idaho. The estimated median house or condo value in 2016 was $215,571, up from $106,200 in 2000 and compared to a state median of $189,400. Sandpoint s main industries include forestry, light manufacturing, tourism, recreation and government services. As the largest service center in northern Idaho and northwestern Montana, the city supports a thriving retail sector. It is the headquarters of Biomedical Innovations, a medical device contract manufacturer; Quest Aircraft, a manufacturer of utility aircraft and seaplanes; Litehouse Foods, maker of dressings, dips and cheeses; Tamarack Aerospace Group, developer of a winglet that boosts the range of jet aircraft; Timbersled, a maker of snowmobiles; and Kochava, a leading mobile technology company that provides analytics and other data tools. Part of Sandpoint s appeal to residents and visitors is the dramatic scenery. The city is located on the shores Lake Pend Oreille, Idaho s largest lake, and is surrounded by the Selkirk, Cabinet and Bitterroot mountain ranges. It is home to Schweitzer Mountain Resort, Idaho s largest ski resort. Sandpoint is part of the International Selkirk Loop, and is on two National Scenic Byways. The Spokane-Coeur d Alene combined metropolitan area spans the Washington- Idaho border along Interstate 90. The region s population was 710,946 as of It is the 69th largest Combined Statistical Area in the United States, and is the economic and cultural center of the Inland Northwest. Spokane is the second-largest city in Washington State, after Seattle. The city has a gross metro product of $27.8 billion, median household income of $51,895 and a job growth rate of 2.1%. The cost of living is 3.6% below the national average. The median home price was $203,300 with an increase in price of 7.4% over the previous year. The city currently rates #67 on Forbes s list of Best Places For Business And Careers. As one of the most productive mining districts in North America, Spokane s economy has traditionally been based on natural resources. However, the city s economy has diversified to encompass other industries, including biotechnology and finance. It is home to Gonzaga and Whitworth colleges, as well as the Community Colleges of Spokane. Spokane s proximity to lakes, rivers, and mountains offers abundant opportunities for outdoor recreation. It is also the home of the Northwest Museum of Arts and Culture. Residents of Spokane also benefit from an expansive Riverfront Park, which offers a cable car with views of Spokane Falls and a sculpture walk. The city is also home to Manito Park and Botanical Gardens, a 90-acre public park with an arboretum, botanical gardens, and a conservatory. On the eastern side of the CSA, fastgrowing Coeur d Alene is home to a metro population of 150,700, up 38.8% since the 2000 Census.The area has a gross metro product of $5.4 billion, with major industries including healthcare, tourism and publishing. The median household income is $50,246, with a cost of living 4.5% below the national average. It currently ranks #23 nationally on Forbes s list Best Small Places for Business and Careers. The percentage of unemployed people in the city is significantly below the state average. The city is located on the north shore of Lake Coeur d Alene, named one of the world s top 10 most beautiful lakes by National Geographic. Coeur d Alene s tourism industry has grown substantially in recent years as visitors flock to the city s ski resorts for vacations, conferences and competitions. The industry is projected to add 1,560 new jobs in Northern Idaho by The city is also home to twelve industrial parks.

11 TENANT OVERVIEW 11 ALBERTSONS COMPANIES, LLC Albertsons Companies, LLC ( Albertsons, or the Company ) is the 2nd largest traditional grocer in the United States serving over 34 million customers per week and generating $60 billion in sales annually. In January 2015, Albertsons merged with Safeway, creating a best-in-class organization dedicated to bringing a better shopping experience to customers across the country. The Company s powerful combination of strong local presence and national scale, vast range of brands and products, and service-oriented staff enable them to meet evolving shopping preferences. As of June 2017, the Company operated 2,329 stores across 35 states under 20 well-known banners with long operating histories. Albertsons has grown strategically through a series of strategic acquisitions in recent years into a $2.8 billion adjusted EBITDA company as of fiscal year 2016 ended February 25, 2017, and as of Q the Company had already generated $771.7 million in adjusted EBITDA. COMPANY BANNERS

12 12 TENANT OVERVIEW ALBERTSONS COMPANIES, LLC (CONTINUED) Albertsons Companies, LLC is one of the largest food retailers and the second largest traditional grocer in the United States.

13 INVESTMENT SALES ADVISORY SERVICES SALE LEASEBACKS DEBT PLACEMENT Exclusively Marketed By PLEASE CONTACT JEFFREY S. THOMAS THOMAS COMPANY 210 Third Avenue South Suite 5C Seattle, WA ID Real Estate License: #DB46528 THOMASCOMPANY.COM