Christian Brothers Automotive

Transcription

1 Fellowship Bible Church Pulaski Academy Christian Brothers Automotive Chenal Parkway, Little Rock, AR EXCLUSIVE LISTING AGENT: Joe Caputo Absolute NNN, 15-Year Corporate Lease w/ 1.5% Annual Rental Increases Christian Brothers Automotive: Proven Strategy 80+ Locations Strong Corporate Balance Sheet Along Chenal Parkway (Traffic: 29,000 Cars / Day) in Affluent Area of West Little Rock Directly Across from Kroger Also Near Target, Home Depot, Kohl s, Staples, Wal-Mart, Sam s Club Near Pulaski Academy - Pre-School to High School (1,335 Students) 2010 Average HH Income (3-Mile): $99,859 Little Rock: 2 nd Cleanest City in U.S. - Forbes Magazine th Best Value City - Kiplinger Magazine 2011

2 TABLE OF CONTENTS PAGE 1: PAGE 2: PAGE 3: PAGE 4: PAGE 5-6: PAGE 7-8: PAGE 9: COVER TABLE OF CONTENTS - DISCLAIMER INVESTMENT OVERVIEW - LEASE OVERVIEW - TENANT OVERVIEW SITE PLAN PROPERTY PHOTOGRAPHS AERIAL PHOTOGRAPHS MARKET OVERVIEW PAGE 10-11: LOCATION MAPS & DEMOGRAPHICS PAGE 12: DEMOGRAPHICS Subject Property CONFIDENTIAL MEMORANDUM & DISCLAIMER EXP Realty Advisors, Inc. ( Agent ) has been engaged as the exclusive agent for the sale of the building located at CHENAL PARKWAY, LITTLE ROCK, AR leased to CHRISTIAN BROTHERS AUTOMOTIVE CORPORATION (the Property ), by the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent. TABLE OF CONTENTS DISCLAIMER 2

3 PRICE: $1,736,000 CAP RATE (JAN. 2012): 9.00% NET OPERATING INCOME: $153,864 BUILDING AREA: 4,875+/- Square Feet LAND AREA: 0.76+/- Acres OCCUPANCY: 100% Single Tenant YEAR BUILT: 2010 OWNERSHIP: Fee Simple Interest ADDRESS: Chenal Parkway, Little Rock, AR LEASE OVERVIEW Lessee: CHRISTIAN BROTHERS AUTOMOTIVE CORPORATION, a Texas Corporation Initial Lease Term: 15-Years Possession Date: June 16, 2010 Rent Commencement Date: January 1, 2011 Leasable Area: An Approximately 4,921 SF Building on Approximately Acres Current Annual Rent: $156,171 Rent Increases: 1.5% on Each 1-year Anniversary of the Rent Commencement Date Lease Type: Absolute NNN, Roof and Structure is the Tenant s Responsibility Options to Renew: 5, 10-Year Options Christian Brothers Automotive Corporation ( CBAC ) Corporate Leases, Franchise Operated Strong Corporate Balance Sheet 80+ Locations in 11 States Comprehensive Franchise Evaluation Process Proven Strategy 100% Store Success in 14-Years of Franchising HQ in Houston, TX Christian Brothers Automotive Corporation is a national automotive service franchisor headquartered in Houston, Texas. CBAC was founded in 1982 by current CEO/President Mark Carr on the basic principle that honesty and integrity should be the driving force behind the business. Today, Christian Brothers Automotive has over 80 locations across 11 states with an annual expansion rate of 15 stores. There are 6 corporately run stores in total and the remainder are franchise operated, however the lease is with CHRISTIAN BROTHERS AUTOMOTIVE CORPORATION, a Texas corporation (corporate). Current locations service the communities of Houston, Dallas/Fort Worth, Austin, College Station, San Antonio, Memphis, Nashville, Jackson, Atlanta, Kansas City, St. Louis, Birmingham, Little Rock, and the Oklahoma City area. They are a leading seller of full service automotive repair franchise locations dedicated to providing high quality service and professionalism, while maintaining the highest level of ethical standards. The company targets high growth, upper income markets with significant real estate appreciation potential. In addition, they choose the site for each franchise location, as well as construct the building and lease the premises to the franchisee. CMAC s mission is to help support national, local and global communities. They carry this out on the corporate level by donating annually to ministries, charities and missions. On the local level they encourage all franchise owners to take an active role in their neighborhoods through sponsorships and support of local ministries and community activities. Christian Brothers has consecutively been ranked in the Top 50 for Franchisee Satisfaction by the Franchisee Business Review and has been awarded the Awards of Excellent by the Better Business Bureau for five consecutive years in a row. INVESTMENT OVERVIEW LEASE OVERVIEW TENANT OVERVIEW 3

4 SITE PLAN 4

5 PROPERTY PHOTOGRAPH 5

6 PROPERTY PHOTOGRAPH 6

7 Fellowship Bible Church AERIAL PHOTOGRAPH 7

8 Fellowship Bible Church Pulaski Academy AERIAL PHOTOGRAPH 8

9 IMMEDIATE TRADE AREA The subject property sits along Chenal Parkway (Traffic: 29,000 cars / day) in Chenal Valley. Chenal Valley is in the west-central section of Little Rock, known as West Little Rock. Chenal Valley is one of the more expensive residential areas in Little Rock with typical homes upwards of the $2,000,000 price range. Chenal Parkway is a main thoroughfare in West Little Rock connecting Highway 10 to West Little Rock s Financial Centre business district. Christian Brothers Automotive is located adjacent to Walgreens Pharmacy and across from Kroger. Other anchor tenants in the immediate area include Target, Home Depot, Kohl s, Staples, Wal-Mart and Sam s Club. There are significant barriers to entry for automotive uses within the community giving Christian Brothers Automotive a strategic advantage within this market. The population within 3 miles is 41,309 and the average household income is $99,859. LITTLE ROCK, ARKANSAS Little Rock is the capital and the largest city in the state of Arkansas. As the largest city in the state, Little Rock is the center of economic activity in Arkansas. The Little Rock MSA had a population of 699,767 people in the 2010 census. The MSA in turn included in the Little Rock-North Little Rock-Pine Bluff, Arkansas Combined Statistical Area - population of 877,091 in the 2010 census. Major corporations headquartered in Little Rock include Dillard s Department Stores, Windstream Communications and Acxiom. Additional large companies headquartered in Little Rock include Metropolitan National Bank, Rose Law Firm, Nuvell Financial Services, Central Flying Service and large brokerage Stephens Inc. Large companies headquartered in other cities but with a large presence in Little Rock include Dassault Falcon Jet and Raytheon Aircraft Company near Little Rock National Airport, and Fidelity National Information Services. Local, state, and federal government have been Little Rock's major employers for many years. Medical facilities, banks, and other service industries are also important to the economy, and their presence has in turn attracted to the area other companies that offer a variety of support services, especially those that are computer-related. LITTLE ROCK, ARKANSAS (CONTINUED) Duke Chapel at Duke University Revitalization of downtown Little Rock has fueled its attraction to major corporations in a variety of industries, particularly manufacturing, transportation, and service. The city manager's office reports that Little Rock was one of the nation's 15 most aggressive development markets in the early part of the new century; it has doubled in the past 20 years and is expected to double again over the next 20 years. Aviation is among the most dynamic industries in Little Rock. Aircraft and spacecraft are Arkansas' largest export, according to the Arkansas Department of Economic Development. In Little Rock itself, several aircraft companies bolster the local economy. Central Flying Service Inc. is one of the nation's largest fixed-base operations, and Dassault Aviation SA's primary service and completion center for its Falcon jets is located in Little Rock. Biotechnology is an emerging industry in Little Rock. The University of Arkansas for Medical Sciences is the cornerstone for medical biotechnology research in Arkansas. The facility not only conducts research and development, it offers a business incubator program to support start-up biotechnology companies. Agriculture maintains a firm hold on the economy of Little Rock and Arkansas as a whole. About one-fourth of all jobs in the state involve agriculture to some degree. Soybeans, rice, timber, and poultry continue to be the primary agricultural enterprises in the state. Because of its strategic location, Little Rock has long served as a center for trade. The Little Rock Port Industrial Park offers some of the finest facilities on the Arkansas River, enabling the city to promote itself not only as a distribution center for the state's agricultural products, but also for its increasing number of manufactured goods. The Little Rock Port is an intermodal river port with a large industrial business complex. It is designated as Foreign Trade Zone 14. International corporations have established new facilities adjacent to the port in recent years. MARKET OVERVIEW 9

10 LOCATION MAP 10

11 LOCATION MAP 11

12 2010 DEMOGRAPHIC SNAPSHOT Radius 3 Mile 5 Mile 10 Mile Population: 2015 Projection 43,956 90, , Estimate 41,309 86, , Census 34,928 76, ,403 Growth % 4.80% 4.00% Growth % 12.30% 9.30% 2010 Households: 2015 Projection 18,786 38, , Estimate 17,690 37, , Census 15,123 33,191 99,133 Growth % 4.70% 4.30% Growth % 12.00% 10.10% Owner Occupied 11,379 23,225 65,980 Renter Occupied 6,311 13,937 43, Avg Household Income $99,859 $87,200 $68, Med Household Income $72,942 $63,585 $50, Per Capita Income $42,949 $37,744 $28, Households by Household Inc: Income Less than $15, ,698 12,798 Income $15,000 - $24,999 1,041 2,871 11,050 Income $25,000 - $34,999 1,233 3,133 10,988 Income $35,000 - $49,999 2,245 5,421 18,690 Income $50,000 - $74,999 3,745 7,632 22,198 Income $75,000 - $99,999 2,967 5,940 14,636 Income $100,000 - $149,999 2,855 4,891 11,309 Income $150,000 - $249,999 1,909 3,186 5,246 Income $250,000 - $499, ,051 1,724 Income $500, DEMOGRAPHICS 12