Value Add Investment Opportunity Factory Stores at Batesville Batesville, Mississippi PREPARED BY: René Brochier, Vice President +1 925 227 6242 rene.brochier@colliers.com CA License No. 00663110 This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). 2010. All rights reserved.
INVESTMENT HIGHLIGHTS Priced Well Below Replacement Costs Below Market Rents Upside Through the Leasing and Development of the Out Parcels Strong Regional Growth Property in Very Good Condition INVESTMENT OVERVIEW The Subject Property is currently 70.49% occupied, with upside far beyond 29.51% of the leasable area. A real positive at the center is that Its Fashion has expanded into a 10,000 square foot unit up from the 3,000 square feet it previously occupied. The owner has spent approximately $80,000 in tenant improvement costs for them. Lastly, with an improving economy nearly all tenants are seeing higher sale volumes over previous years. INVESTMENT SUMMARY Price...$6,250,000 Price Per Square Foot (GLA)...$45.24 Gross Leasable Area (GLA)...138,219 Year Built...1995 Lot Size...14.3 Acres Parking...Ample CAP Rate Current...6.71% Net Operating Income Current...$419,590 CAP Rate Potential...11.70% Net Operating Income Potential...$730,965 (Assumes 95% Occupancy) PROPERTY DESCRIPTION Colliers International is pleased to bring to market this 138,219± square foot regional shopping center/outlet mall located in Batesville, Mississippi. The Subject Property offers investors the ability to acquire a 70.49% occupied center priced on current income numbers. The Factory Stores at Batesville is located directly at the intersection of Interstate 55 and four-lane Highway 6, approximately 65 miles south of Memphis, Tennessee. The Subject Property draws from a diverse mix of both local and regional consumers. Bargain hunters from Tennessee, Mississippi and beyond flock to the center on the weekends, while steady local foot traffic keeps the center busy throughout the day. The Subject Property is being offered at a 6.71% cap rate. The total land area consisted in the offering is 14.3 acres. At $45 per square feet of leasable area, the property is priced at least $65 per square foot below replacement cost. The Subject Property is ideally suited for the more active investor that wants to know his/her tenants and is interested in developing relationships in the South, locally and regionally. The Subject Property comes with two undeveloped out parcels allowing for up to 10,000-15,000 square feet of additional space. With regional population growth, the Subject Property is seeing more and more visitors each year translating to more sales for Tenants at the shopping center. 325 Lakewood Drive, Batesville, Mississippi colliers international p. 2
THE OFFERING Property...Factory Stores at Batesville Property Address...325 Lakewood Drive Batesville, MS 38606 Assessor s Parcel Number (APN)...3182 0005400 10001201 Zoning...1 SITE DESCRIPTION Number of Stories...1 Year Built...1995 Gross Leasable Area (GLA)...138,219 SF Lot Size...14.3 Acres Type of Ownership...Fee Simple Parking...Ample Parking Ratio...Ample Landscaping...Poured Concrete on Footers Topography...Steel CONSTRUCTION Foundation...Block Framing...Asphalt Exterior...Smooth Built-Up Parking Surface...Minimal Roof...Flat MECHANICAL HVAC Rear Mounted Fire Protection...Sprinkler Utilities...Tenant and Landlord Paid INTERIOR DETAIL Walls Drywall Ceilings...Dropped Ceilings Floor Coverings...Various Restrooms...2 Public + Unit Restrooms 325 Lakewood Drive, Batesville, Mississippi colliers international p. 3
SITE MAP 325 Lakewood Drive, Batesville, Mississippi colliers international p. 4
Income & Expenses Gross Leasable Area (GLA) 138,219 SF CURRENT PER SF Base Rent Occupied Space 97,424 $ 721,869.00 $ 7.41 Vacant Space at Market Rents 40,795 $ 367,155.00 $ 9.00 GROSS POTENTIAL RENT $ 1,089,024.00 ATM Income $ 2,836.00 $ 0.02 Vending Income $ 1,146.00 $ 0.01 Reimbursable Expenses $ 22,584.00 $ 0.16 GROSS POTENTIAL INCOME $ 1,115,590.00 Vacancy/Collection Allowance (29.51%) $ 367,155.00 $ 9.00 EFFECTIVE GROSS INCOME $ 748,435.00 Real Estate Taxes $ 113,996.00 $ 0.82 Insurance $ 21,491.00 $ 0.16 Advertising & Marketing $ 30,335.00 $ 0.22 CAM Utilities $ 42,306.00 Repairs & Maintenance $ 10,960.00 Contract Services $ 13,986.00 Payroll $ 72,854.00 Janitorial Supplies $ 2,107.00 Telephone $ 4,397.00 Security $ 11,648.00 Accounting $ 1,300.00 Office Supplies $ 180.00 Postage & Printing $ 221.00 Legal Fees $ 2,966.00 Bank Charges $ 98.00 TOTAL CAM $ 163,023.00 $ 1.18 TOTAL EXPENSES $ 328,845.00 $ 2.38 NET OPERATING INCOME $ 419,590.00 325 Lakewood Drive, Batesville, Mississippi colliers international p. 5
TENANT SUMMARY Suite Tenant GLA (Leaseable) % of GLA Lease Commence Year Opening Lease Expiration Annual Rent Rent/SF (Rounded) Options % Rent 23 Affordable Hearing 445 0.32% 11/01/2010 2010 10/31/2012 $ 4,802.00 $ 10.79 None 43 A+ Store 2,430 1.76% 06/01/2010 2010 05/31/2014 $ 14,400.00 $ 5.93 None 29 Vacant 2,250 1.67% $ - $ - 20-21 Bass 6,480 4.69% 07/01/2008 1995 06/30/2013 $ 58,320.00 $ 9.00 None 26 Bobbie's Home Décor 2,920 2.11% 03/01/2010 2010 Mo-to-Mo $ 6,000.00 $ 2.05 None 27 Bon Worth 2,250 1.63% 07/01/2008 1995 06/30/2013 $ 32,625.00 $ 14.50 None 9% 39-42 Dress Barn 11,550 8.36% 11/01/2009 1995 10/31/2014 $ 106,180.00 $ 9.19 1x5yr. 10% 31-32 Vacant 5,040 3.65% $ - $ - 35-36 Vacant 4,550 3.29% $ - $ - 15 Vacant 1,200 0.87% $ - $ - 1-3 It's Fashion 10,000 7.23% 02/01/2010 1999 01/31/2016 $ 55,860.00 $ 5.58 3x5yr. 44 Kitchen Collection 3,150 2.28% 01/01/2011 2004 01/31/2013 $ 36,005.00 $ 11.43 None 37-38 L/HB/P (Hanes) 5,000 3.62% 08/01/2010 1995 07/31/2012 $ 13,450.00 $ 2.69 None 3% 16-18 Vacant (Restaurant) 7,070 5.12% $ - $ - 10-11 Vacant 4,050 2.93% $ - $ - 14 Perfumes & Jewelry 2,250 1.63% 02/01/2011 2011 04/30/2013 $ 6,000.00 $ 2.67 None 12 Promises/Praise 3,780 2.73% 01/01/2012 1997 12/31/2013 $ 29,938.00 $ 7.92 none 10% 7-9 Rack Room Shoes 6,100 4.41% 03/01/2011 2001 02/28/2016 $ 54,000.00 $ 8.85 1x5yr. 5% 5-6 Rue 21 5,500 3.98% 01/01/2011 1995 12/31/2015 $ 52,780.00 $ 9.60 2x5yr. 30 Treasures 2,070 1.50% 04/01/2010 2010 03/31/2014 $ 10,800.00 $ 5.22 1x1yr. 22 Vacant 885 0.64% $ - $ - 4 Vacant 3,200 2.32% $ - $ - 48-56 VF Factory Stores 24,399 17.65% 09/01/2007 2002 08/31/2013 $ 146,394.00 $ 6.00 2x5yr. 19 Van Heusen 4,050 2.93% 07/01/2008 1995 06/30/2013 $ 48,600.00 $ 12.00 None 25 Vitamin World 1,000 0.72% 07/01/2010 1997 08/31/2015 $ 17,365.00 $ 17.36 None 13 Vacant 3,100 2.24% $ - $ - 28 Vacant 2,700 1.95% $ - $ - 33-34 Step "N" Style 4,050 2.93% 09/01/2011 2011 08/31/2014 $ 28,350.00 $ 7.00 2x5yr. 45-47 Vacant 6,750 4.88% $ - $ - TOTAL VACANT 40,795 29.51% $ - TOTAL OCCUPIED 97,424 70.49% $ 721,869.00 TOTAL 138,219 100.00% $ 721,869.00 325 Lakewood Drive, Batesville, Mississippi colliers international p. 6
LEASING PLAN 17 18 19 2,070 SF 5,000 SF 21 20 4,050 SF 6,480 SF 22 23 24 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 25 2,250 SF 2,920 SF 2,700 SF 2,250 SF 2,070 SF 6,750 SF 3,150 SF 2,430 SF 11,550 SF 5,000 SF 4,550 SF 4,050 SF 5,040 SF 51 24,399 SF 52 53 54 55 56 16 15 1,200 SF 14 2,250 SF 13 3,150 SF 12 3,780 SF 11 4,050 SF 10 9 8 6,100 SF 7 6 5,500 SF 5 4 3,200 SF 3 2 10,000 SF 1 Available Leased 1. It s Fashion Metro 2. It s Fashion Metro 3. It s Fashion Metro 4. AVAILABLE - 3,200 SF 5. RUE 21 6. RUE 21 7. Rack Room Shoes 8. Rack Room Shoes 9. Rack Room Shoes 10. AVAILABLE 11. AVAILABLE 12. Promise & Praise - 4,050 13. AVAILABLE - 3,150 SF 14. Perfume & Jewelry 15. AVAILABLE - 1,200 SF 16. AVAILABLE - 5,000 SF 17. AVAILABLE 18. AVAILABLE - 2,070 SF 19. Van Heusen 20. Bass 21. Bass 22. AVAILABLE - 885 SF 23. Affordable Hearing 24. Office 25. Vitamin World 26. Bobbies Home Decor 27. Bonworth 28. AVAILABLE - 2,700 SF 29. AVAILABLE - 2,250 SF 30. Treasures 31. AVAILABLE 32. AVAILABLE 33. Step n Style 34. Step n Style 35. AVAILABLE 36. AVAILABLE - 5,040 SF - 4,550 SF 37. L eggs/hanes/bali / Playtex 38. L eggs/hanes/bali / Playtex 39. Dress Barn 40. Dress Barn 41. Dress Barn 42. Dress Barn 43. A+ Store 44. Kitchen Collection 45. AVAILABLE 46. AVAILABLE - 6,750 SF 47. AVAILABLE 48. VF Outlet Stores 49. VF Outlet Stores 50. VF Outlet Stores 51. VF Outlet Stores 52. VF Outlet Stores 53. VF Outlet Stores 54. VF Outlet Stores 55. VF Outlet Stores 56. VF Outlet Stores 325 Lakewood Drive, Batesville, Mississippi colliers international p. 7
RETAIL AERIAL 325 Lakewood Drive, Batesville, Mississippi colliers international p. 8
STREET MAP SUBJECT 325 Lakewood Drive, Batesville, Mississippi colliers international p. 9
LOCATION MAP SUBJECT 325 Lakewood Drive, Batesville, Mississippi colliers international p. 10
Demographics 15 MILE RING 706.74 SQ/MI 30 MILE RING 2826.95 SQ/MI 45 MILE RING 6360.61 SQ/MI POPULATION 1990 Total Population 28,324 111,746 274,129 2000 Total Population 32,772 127,098 317,445 2011 Total Population 33,230 136,893 357,510 2016 Total Population 33,046 137,788 366,240 % Population Change 1990-2000 15.70% 13.74% 15.80% % Population Change 2000-2011 1.40% 7.71% 12.62% % Population Change 2011-2016 -.55%.65% 2.44% HOUSEHOLDS 1990 Total Households 9,694 38,331 93,173 2000 Total Households 11,845 46,241 113,066 2011 Total Households 12,524 51,635 130,196 2016 Total Households 12,794 54,283 136,882 % Households Change 1990-2000 22.19% 20.64% 21.35% % Households Change 2000-2011 5.73% 11.66% 15.15% % Households Change 2011-2016 2.16% 5.13% 5.14% 2011 RACE 2011 White Population 17,232 81,519 208,970 2011 Black Population 15,331 51,395 136,679 2011 American Indian/Alaska Native 75 310 784 2011 Asian/Hawaiian/Pacific Islander 75 1,216 2,911 2011 Other Population (Incl 2+ Races) 517 2,453 8,166 2011 Hispanic Population 467 2,395 9,311 2011 Non-Hispanic Population 32,763 134,497 348,199 INCOME 2011 Per Capita Income $16,454 $18,922 $19,672 2011 Median Household Income $36,230 $36,415 $38,284 2011 Average Household Income $43,657 $50,164 $54,019 2011 Household Income < $10,000 1,275 6,230 15,353 2011 Household Income $10,000-$14,999 1,197 4,609 10,672 2011 Household Income $15,000-$19,999 889 3,840 9,845 2011 Household Income $20,000-$24,999 993 3,430 8,018 2011 Household Income $25,000-$29,999 865 3,556 8,257 2011 Household Income $30,000-$34,999 788 3,152 7,631 2011 Household Income $35,000-$39,999 1,040 3,537 8,099 2011 Household Income $40,000-$44,999 893 2,626 6,207 2011 Household Income $45,000-$49,999 743 2,543 6,118 2011 Household Income $50,000-$59,999 1,101 4,290 10,598 2011 Household Income $60,000-$74,999 1,062 4,485 10,894 2011 Household Income $75,000-$99,999 846 4,691 13,211 2011 Household Income $100,000-$124,999 439 2,398 7,598 2011 Household Income $125,000-$149,999 147 910 2,851 2011 Household Income $150,000-$199,999 160 625 2,505 2011 Household Income $200,000-$249,999 22 184 800 2011 Household Income $250,000-$499,999 66 515 1,501 2011 Household Income $500,000+ 0 16 37 2011 Average Household Size 2.6 2.5 2.6 2011 Total Daytime Population 27,863 113,377 296,482 2011 Total Daytime Work Population 10,532 40,850 104,391 325 Lakewood Drive, Batesville, Mississippi colliers international p. 11
325 Lakewood Drive, Batesville, Mississippi colliers international p. 12