Meeting Blvd. Rock Hill, SC OFFERING MEMORANDUM

Transcription

1 Meeting Blvd. Rock Hill, SC OFFERING MEMORANDUM

2 Exclusively Marketed By: Sands Investment Group Meeting Blvd. Rock Hill, SC CHRIS SANDS Lic DIRECT MAX FREEDMAN Lic DIRECT Sands Investment Group 2701 Ocean Park Boulevard, Suite 140 Santa Monica, CA SIG.NNN INVESTMENT SUMMARY Investment Summary Investment Highlights AREA OVERVIEW Location & Area Maps Retail Map City Overview TENANT PROFILE LEASE ABSTRACT Tenant Profiles Financial Information Lease Summary Rent Roll 2016 Sands Investment Group (SIG). The information contained in this Offering Memorandum, has been obtained from sources believed to be reliable. Sands Investment Group does not doubt its accuracy, however, Sands Investment Group makes no guarantee, representation or warranty about the accuracy contained herein. It is the responsibility of each individual to conduct thorough due diligence on any and all information that is passed on about the property to determine it s accuracy and completeness. Any and all projections, market assumptions and cash flow analysis are used to help determine a potential overview on the property, however there is no guarantee or assurance these projections, market assumptions and cash flow analysis are subject to change with property and market conditions. Sands Investment Group encourages all potential interested buyers to seek advice from your tax, financial and legal advisors before making any real estate purchase and transaction.

3 INVESTMENT SUMMARY OFFERING SUMMARY PRICE $14,070,000 CAP 8.05% NOI $1,132,027 PRICE PER SF $ YEARS REMAINING: KOHL S YEARS REMAINING: HOBLOB 10+ Years 5 + Years PROPERTY SUMMARY ADDRESS Meeting Blvd Rock Hill, NC COUNTY BUILDING AREA LAND AREA York 132,629 SF AC YEAR BUILT 2007

4 INVESTMENT HIGHLIGHTS HIGHLIGHTS 4 Tenant Retail Center Anchored By Kohl s and Hobby Lobby Long Term Leases Kohl s (2027) and Hobby Lobby (2021) Adjacent to Walmart Supercenter and Regional Mall 100% Leased No Vacancy Over 14 Acres of Land and 530+ Parking Spaces (4:1 Parking) Charlotte MSA 1.8M Population SUBJECT PROPERTY DEMOGRAPHICS 1 Mile 3 Mile 5 Mile Population 2,470 16,810 77,216 Average HH Income $50,038 $46,206 $46,246 Vehicles per Day (I-77 to Meeting Blvd) 32,800

5 LOCATION MAP

6 AERIAL MAP

7 RETAIL MAP

8 AREA OVERVIEW City Overview Rock Hill, South Carolina is located in the north-central area of South Carolina, approximately 20 miles south along the I-77 corridor from Charlotte, North Carolina. Rock Hill offers unique options and benefits for business owners that other cities and counties in the Charlotte metro area simply can't compete with. Rock Hill also has advantageous tax laws, award-winning employee training programs and lucrative incentives that make it easy for business to grow and prosper. Deciding where to start or relocate a business depends largely on accessibility, and Rock Hill boasts numerous transportation advantages. I-77 runs directly through Rock Hill, and I-85 runs near the northwestern part of York County. Charlotte-Douglas International Airport is less than 30 minutes away, while the Port of Charleston, the busiest container port in the Southeast is only a short three hour drive away. Rock Hill is strategically located in the absolute center of the East Coast, and with only a two hour flight time or one day motor freight delivery time, businesses in Rock Hill can reach almost 60% of the nation's general population and its industrial base. In addition to business benefits, Rock Hill is a spectacular community that combines hometown charm with big-city amenities for its residents. Rock Hill's proximity to Charlotte's international airport, downtown nightlife, restaurants, professional sports and entertainment venues guarantees an exceptional quality of life long after the workday is over. Named one of America's 100 Best Communities For Young People by America's Promise Alliance in 2008, Rock Hill is justly proud of its excellent schools, superb parks, quaint downtown area and delightful offerings of arts and cultural venues. Rock Hill is also a lively college town that boasts three colleges with more than 10,000 students among its 70,000 residents. Excellent healthcare services, abundant shopping and a wide array of dining options make Rock Hill the perfect place to live with none of the typical big-city drawbacks.

9 TENANT PROFILE Kohl's Corporation is an American department store chain headquartered in the Milwaukee suburb of Menomonee Falls, Wisconsin, operating 1,200 stores in 49 states and generates annual sales in excess of $19 Billion. Kohl's stores feature nationally recognized brandname merchandise, exclusive labels, and private-branded goods, virtually the same merchandise mix as traditional department stores. The stores sell a variety of goods, such as apparel, shoes, and accessories for women, children and men, and home products such as small electronics, kitchen electrics, electric shavers, toothbrushes, vacuum cleaners & floor care, bedding, toys, and luggage. Although some locations are in enclosed shopping malls, the majority of stores are free-standing. Kohl's operates differently from traditional department stores, like Macy's or JCPenney. The most noticeable distinction is that Kohl's stores have centralized check-out aisles much like grocery stores, where a single line is used for check-outs. Kohl's also uses a "racetrack" aisle that circles the entire store, a technique borrowed from discount stores but rarely used in department stores.

10 TENANT PROFILE In 1970, entrepreneurs David and Barbara Green, along with their young family, began making miniature picture frames in their garage. A few years later, on August 3, 1972, the Green family opened the first Hobby Lobby store with a mere 300 square feet of retail space. Hobby Lobby has not stopped growing since. Today, Hobby Lobby Stores, Inc., headquartered in Oklahoma City, OK, operates over 600 stores across the nation that average 55,000 square feet. Hobby Lobby is an industry leading retailer offering more than 70,000 arts, crafts, hobbies, home decor, Holiday, and seasonal products. Hobby Lobby is included in Forbes annual list of America s largest private companies. While Hobby Lobby continues to grow steadily, the company carries no long-term debt.

11 FINANCIAL INFORMATION ESTIMATED OPERATING INFORMATION INCOME SCHEDULED BASE RENT $1,149,963 PLUS RECAPTURE $343,908 TOTAL GROSS POTENTIAL INCOME $1,493,871 LESS VACANCY (RENT) $0 LESS VACANCY (NNN) $0 EFFECTIVE OPERATING INCOME $1,493,871 ESTIMATED OPERATING EXPENSES TAXES $326,283 INSURANCE $13,985 CAM $3,640 NON-OPERATING $2,000 RESERVES $13,263 MANAGEMENT $2,673 TOTAL $361,844 LESS EXPENSES $348,581 LESS RESERVES $13,263 NET OPERATING INCOME $1,132,027 LESS 1 ST LOAN PAYMENT $860,688 CASH FLOW $271,339 ASSUMABLE LOAN INFORMATION UNPAID PRINCIPAL BALANCE (Approximate) $8,539,000 ORIGINAL PRINCIPAL BALANCE $10,400,000 DOWN PAYMENT 39.31% $5,531,000 CASH ON CASH 5.25% INTEREST RATE 6.73% Fixed NOTES: 1. Kohl s pays their own portion of Taxes directly ($140,947). 2. Kohl s pays their own Insurance directly. 3. Kohl s & Hobby Lobby are each responsible for their portion of the parking lot maintenance and expense costs directly. 4. The listed CAM expenses are for the inline tenants only. 5. Management is 3% of the inline tenant income. ANNUAL DEBT SERVICE $860,688 AMORTIZATION 25 Years MATURITY DATE 13 Years June 1, 2027 ASSUMPTION FEE 1.5%

12 LEASE ABSTRACT LEASE SUMMARY TENANT Kohl s PREMISES 68,890 SF Building 51.94% of the Center LEASE COMMENCEMENT April 1, 2007 LEASE EXPIRATION April 31, 2027 LEASE TERM 20 Years (11+ Years Remaining) RENEWAL OPTIONS Five (5) Five (5) Year Options RENT INCREASES 10% in 2027 LEASE TYPE Triple Net Fee Simple Lease USE Department Store PROPERTY TAXES Tenant Pays Directly for their Parcel INSURANCE Tenant s Responsibility ROOF & STRUCTURE Landlord s Responsibility REPAIRS & MAINTENANCE Tenant s Responsibility

13 LEASE ABSTRACT LEASE SUMMARY TENANT Hobby Lobby PREMISES 58,439 SF Building 44.06% of the Center LEASE COMMENCEMENT March 1, 2007 LEASE EXPIRATION September 30, 2021 LEASE TERM 15 Years (5+ Years Remaining) RENEWAL OPTIONS Three (3) Five (5) Year Options RENT INCREASES None LEASE TYPE Triple Net Fee Simple Lease USE Department Store PROPERTY TAXES Tenant Pays Directly for their Parcel INSURANCE Tenant s Responsibility ROOF & STRUCTURE Landlord s Responsibility REPAIRS & MAINTENANCE Tenant s Responsibility

14 RENT ROLL TENANT NAME Square Footage % of Property Annual Rent Rent/SF % Of Total Increase Date Increases Begin End Options Kohl's 68, % $616, $ % % 4/07 4/27 5 x 5 year Hobby Lobby 58, % $438, $ % 3/07 9/21 3 X 5 year Platos Closet 3, % $49, $ % 1/17 Movay Salon 2, % $39, $ % 3/17 NDEV Easement % $6, $ % Indefinite TOTALS / AVERAGES 132, % $1,143,963 $ % OCCUPIED SF 132, % VACANT SF % TOTAL SF 132, %

15 CONFIDENTIALITY AGREEEMENT The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Sands Investment Group and should not be made available to any other person or entity without the written consent of Sands Investment Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, Sands Investment Group has not verified, and will not verify, any of the information contained herein, nor has Sands Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. By receipt of this Memorandum, you agree that this Memorandum and its contents are of confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose its contents in any manner detrimental to the interest of the Owner. You also agree that by accepting this Memorandum you agree to release Sands Investment Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.

16 Exclusively Marketed By: CHRIS SANDS Lic DIRECT MAX FREEDMAN Lic DIRECT SIG.NNN F: OCEAN PARK BLVD, SUITE 140 SANTA MONICA, CA 90405