Pass Rd Biloxi, MS MATTHEWS REAL ESTATE INVESTMENT SERVICES

Transcription

1 S H O P P I N G C E N T E R Pass Rd Biloxi, MS O F F E R I N G M E M O R A N D U M

2 S H O P P I N G C E N T E R Pass Rd Biloxi, MS JORDAN POWELL associate Shopping Centers Direct Mobile jordan.powell@matthews.com Lic. No (CA) EL WARNER EVP & National Director Shopping Centers Direct Mobile El.Warner@matthews.com Lic. No (CA) DEVON DYKSTRA associate Shopping Centers Direct Mobile Devon.Dykstra@matthews.com Lic. No (CA) BEAU BOX BROKER OF RECORD Lic. No. B-18361

3 CONTENTS EXECUTIVE SUMMARY FINANCIAL OVERVIEW PROPERTY OVERVIEW AREA OVERVIEW TENANT OVERVIEWS 3

4 4 4 SHOPPING CENTER E x e c u t i v e s u m m a r y

5 offering summary Matthews Real Estate Investment Services is pleased to exclusively represent the sale of Popps Ferry, a grocery-anchored shopping center in the heart of Biloxi, Mississippi. Located on the main retail corridor of Biloxi, Pass Road, this shopping center offers an investor the opportunity to purchase a stabilized investment with 15% vacancy that can be leased up for an increased return. At an offering price of $8,700,000 an investor can achieve an initial return of 8.65% with a cash on cash of over 10%. Strong historical occupancy and a diversity among the tenants helps solidify this property as the premier neighborhood shopping center in Biloxi. investment highlights Value-add grocery-anchored shopping center with over 15% upside Located at one of the busiest intersections in Biloxi and down the road from Kessler Air Force Base Strong historical occupancy by Winn Dixie who has been in the center over 20 years Synergistic tenant lineup with a variety of uses including gym, food, clothing and beauty offering Offering Price $8,700,000 Price PSF $72 investment returns In Place Cap Rate 8.65% Hypothetical Stabilized Cap Rate 9.34% premise In Place Income $752,812 Stabilized Income $812,408 Building SF 120,256 Occupancy 85% 5

6 6 6 SHOPPING CENTER f i n a n c i a l o v e r v i e w

7 rent roll SUITE TENANT LEASE START LEASE END SF % OF GLA CONTRACT RENTAL RATE RENT PER SQ. FT. YEAR MONTH YEAR MONTH D Winn-Dixie Mar-95 Mar-21 62, % $605,423 $50,452 $9.76 $0.81 C Planet Fitness % RENT 1% over minimum rent RENT INCREASES Sep-10 Aug-20 24, % $167,568 $13,964 $6.75 $0.56 Aug-20 $167,569 1 x 5 yr A Vacant 18, % $72,792 $6,066 $4.00 $0.33 B Nail Supply Oct-16 Oct-21 8, % $39,996 $3,333 $5.00 $0.42 F Fantastic Sams Jul-15 Jun-20 1, % $12,000 $1,000 $10.00 $0.83 E CATO Jun-97 Jan-19 4, % $19,044 $1,587 $3.97 $0.33 G Subway Jul-04 Aug-19 1, % $15,180 $1,265 $12.65 $1.05 5% of gross sales OPTIONS 4 x 5 yr Jun-20 $13,800 1 x 5 yr Occupied Totals - In Place 102,056 SF 84.9% $819,215 $68,268 $8.03 $0.67 Vacant Totals 18,200 SF 15.1% $112,788 $9,399 $6.20 $0.52 Totals 120,256 SF 100.0% $932,003 $77,667 $7.75 $0.65 7

8 income & expenses 8 IN PLACE STABILIZED TOTAL $/SF TOTAL $/SF Income Rental Income $819,215 $6.81 $932,003 $7.75 Percentage Rent Expense Reimbursements $187,647 $1.56 $200,000 $1.66 Vacancy Factor (5%) ($56,600) ($0.47) Effective Gross Income $1,006,862 $8.37 $1,075,402 $8.94 Expenses Real Estate Taxes $118,500 $0.99 $122,055 $1.01 Property Insurance $60,000 $0.50 $61,800 $0.51 CAM/R&M $28,276 $0.24 $29,124 $0.24 Management $40,274 $0.33 $43,016 $0.36 EGI (%) 4.00% 4.00% Non-Reimbursable Expenses 7,000 $0.06 7,000 $0.06 Operating Expenses $254,050 $2.11 $262,995 $2.19 Net Operating Income $752,812 $6.26 $812,408 $6.76 Operating Expense Ratio 25% 24%

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10 10 SHOPPING CENTER P R O P E R T Y o v e r v i e w

11 PHYSICAL DESCRIPTION PROPERTY NAME Popps Ferry Shopping Center LOCATION Biloxi, MS CROSS STREET Popps Ferry Road TRAFFIC COUNTS ±30,000 ADT ADDRESS Pass Rd ZIP CODE LAND AREA ±451,887 SF (±10.37 Acres) YEAR BUILT/RENOVATED 1988/1997 Popps Ferry Road ±21,000 ADT SQ. FT. (GLA) ±120,256 PARKING SPACES ±609 APN(s) 1110H PARKING RATIO 5.06 : 1,000 Pass Road ±30,000 ADT 11

12 site plan tenant roster A B C D E F G Occupied SUITE TENANT SQUARE FEET A Vacant 18,200 B Nail Supply 8,000 C Planet Fitness 24,825 D Winn-Dixie 62,031 E CATO 4,800 F Fantastic Sams 1,200 G Subway 1,200 Occupied Totals - In Place 102,056 Vacant Totals 18,200 Vacant NAP Totals 120,256 12

13 POPPS FERRY RD ±21,000 ADT PASS ROAD ±30,000 ADT 13

14 14 SHOPPING CENTER A R E a o v e r v i e w

15 biloxi, mississippi Tucked away on the base of Mississippi s narrow Gulf extension, Biloxi is one of the principal cities in the Gulfport-Biloxi metropolitan area with a beach front that lies directly on the Mississippi Sound. Much of the coastal area has emerged as a beach resort for Southerners and Midwesterners looking for an alternative to Florida. The Gulf Coast is a revered destination that possesses an authentic spirit. With a host of celebrations year-round, it is a cultural melting pot. A backdrop of white sandy beaches complements the coastal way of life in this southern coastal haven. Residents and visitors alike can paddle, swim or float their days away in the calm waters, kept as such by barrier islands. [Barrier islands keep the waters calm, providing residents and visitors alike the opportunity to paddle, swim or float their days away.]miles of hiking trails great deep-sea or freshwater fishing, an array of championship golf courses, museums and historic sites. 32, population 5 TH largest city in mississippi DISTANCE TO Gulf Coast ±1 mile $54,914 avg. household income 14, HOUSEHOLDS Gulfport-Biloxi Airport ±8 miles 15

16 local economy Biloxi is a commercial city that promotes a business-friendly environment. Gaming and tourism make up the city s economic backbone and have bolstered the region s tourism in general with the average tourist saying two and a half days. Low property taxes in the area have played an important part in attracting the several casino resort hotels that now reside in the city, which host 24-hour gambling, concert entertainment shows and several restaurants. Also a center for the shrimping and fishing industries, Biloxi takes pride in its restaurants that exhibit its role in the seafood trade. There are about thirtyeight seafood processing plants situated along the Gulf Coast with eleven in Biloxi alone. The seafood industry contributes an approximate $450 million dollars to the Mississippi Gulf Coast economy, most of which is attributed to shrimping. Boat building and the production of boat equipment are also significant businesses in the area. Military and federal government installations such as the Keesler Air Force Base, which lies within Biloxi, are also significant components of the area s economy at nearly a quarter of all employment in the city. Keesler Air Force Base provides a notable amount of employment in the government sector with over 12,000 active-duty personnel and over 3,000 civilians. top employers 16

17 keesler air force base (AFB) Since its establishment in 1941, Keesler Air Force Base (AFB) has been an integral part of the Mississippi Gulf Coast community. With a mutually-supportive relationship with the surrounding area, the base regularly interacts with the business community as one of the largest employers on the Gulf Coast and through the support of local businesses. Active duty and retired air force personnel hold public service leadership positions, indicative of the close collaboration and communication Keesler AFB and Biloxi share. The base s host unit is the 81st Training Wing: The electronics training Center of Excellence for the U.S. Air Force. Home to 2nd Air Force and the 403rd Wing, Keesler AFB s primary role is to train and educate Airmen. That aside, the base maintains a status as a lead joint training installation that trains Air Force, Army, Navy, Marine Corps, Coast Guard and other military and civilian federal agency personnel. Its training center handles more than 28,000 students annually, offering preparation for 37 different career fields. 28,000 $1.67 BILLION 37 Annual Students Total Economic Impact Career Fields 17

18 demographics POPULATION 1-Mile 3-Mile 5-Mile 2022 Projection 8,344 35,441 64, Estimate 8,182 32,416 59, Census 7,887 35,105 64, Census 7,998 36,528 67,205 HOUSEHOLDS 1-Mile 3-Mile 5-Mile 2022 Projection 3,574 14,949 25, Estimate 3,521 14,336 25, Census 3,438 13,209 25, Census 3,465 14,168 27,128 INCOME 1-Mile 3-Mile 5-Mile 2017 Est. Average Household Income $51,069 $54,914 $55, Est. Median Household Income $37,553 $40,282 $41,989 18

19 harrison county 19

20 20 SHOPPING CENTER T E N A N T o v e r v i e w s 20

21 Winn-Dixie is a supermarket chain that operates about 550 food and drug stores throughout Alabama, Florida, Georgia, Louisiana, and Mississippi. Over 400 of these locations have pharmacies. Winn-Dixie has ranked #24 in the "Top 75 North American Food Retailers". Ownership Public 2016 Sales $6.35B Planet Fitness is an American franchisor and operator of fitness centers. The company reports that it has more than 1,400 clubs, making it one of the largest fitness club franchises by number of members and locations. It markets itself as a "Judgement Free Zone" that caters to novice and casual gym users and is reported to be the nation s fastest growing fitness center franchise. Ownership Public 2016 Sales $279.78M Doctor s Associates owns the Subway chain of sandwich shops, the world s largest quick-service restaurant chain by number of locations, having surpassed burger giant McDonald s. Today, the Subway brand is the world s largest submarine sandwich chain around the world and has become the leading choice for people seeking quick, nutritious meals that the whole family can enjoy. Cato operates more than 1,300 apparel stores in over 30 states under the names Cato, Cato Plus, Versona, It's Fashion, and It's Fashion Metro. Its mostly private-label merchandise includes misses', juniors', girls', and plus-sized casualwear, career clothing, coats, shoes, and accessories geared to low- and middle-income customers, mostly females aged 18 to 50. Ownership Public Ownership Public 2016 Sales $59.14M 2016 Sales $956.57M 21

22 CONFIDENTIALITY AND DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Popps Ferry located at Pass Rd, Biloxi, MS ( Property ). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimentalto the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

23 SHOPPING CENTER Pass Rd Biloxi, MS JORDAN POWELL associate Shopping Centers Direct Mobile Lic. No (CA) EL WARNER EVP & National Director Shopping Centers Direct Mobile Lic. No (CA) DEVON DYKSTRA associate Shopping Centers Direct Mobile Lic. No (CA) BEAU BOX BROKER OF RECORD Lic. No. B-18361