2 4 6 L O U D O N R O A D ( S T A T E R O U T E 9 ) C O N C O R D, N E W H A M P S H I R E 0 3 3 0 1 SHAW S SUPERMARKET CONCORD, NEW HAMPSHIRE offering memorandum
INVESTMENT OVERVIEW Marcus & Millichap is pleased to present Shaw s Supermarket in Concord, New Hampshire, the capital of the income tax-free state. There are more than eight years remaining on a triple-net (NNN) ground lease with zero landlord responsibilities. The lease features a hedge against inflation with 10 percent rent bumps every five years and in option periods. Shaw s is a wholly owned subsidiary of Albertsons Companies, Incorporated (Inc.). The lease is corporately guaranteed by Shaw s Supermarkets, Incorporated, a New England based grocer with 154 locations. Shaw s is ideally located along the signalized hard corner of Loudon Road (State Route 9) and D Amante Drive. More than 22,000 vehicles pass through this thoroughfare daily. The subject property is also located within a dense trade area. Some strong national credit anchors include: The Home Depot, Target, Dick s Sporting Goods, Sam s Club, Best Buy, Aldi, and Walmart Supercenter. Additional s in the immediate vicinity include: Regal Cinemas, Michaels, 99 Restaurants, Pet Smart, Chipotle Mexican Grill, Aspen Dental, AT&T, Meineke, Goodwill, Olive Garden, TGI Fridays, LongHorn Steakhouse, Burger King, TD Bank, and many more. 2 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z0331200
INVESTMENT HIGHLIGHTS Shaw s Supermarket in Concord, New Hampshire The Capital of New Hampshire Income Tax-Free State More Than Eight Years Remaining on a Triple-Net (NNN) Ground With Zero Landlord Responsibilities Subsidiary of Albertson s Companies, Incorporated (Inc.) Shaw s Supermarkets, Incorporated (Inc.) 154 Locations Hedge Against Inflation 10 Percent Rent Bumps Every Five Years and in Options Attractive Existing Financing Ideally Located Along the Signalized Hard Corner of Loudon Road (State Route 9) and D Amante Drive More Than 22,000 Vehicles Per Day (VPD) Strong Credit Anchors Nearby Include: The Home Depot, Target, Best Buy, Dick s Sporting Goods, Aldi, Sam s Club & Walmart Supercenter Capital Commitment to Concord New Concord Hospital Building ($85 Million) Additional s in the Immediate Vicinity Include: Regal Cinemas, Pet Smart, Michaels, 99 Restaurants, Chipotle Mexican Grill, Aspen Dental, AT&T, Meineke, Goodwill, Olive Garden, TGI Fridays, LongHorn Steakhouse, Burger King, TD Bank, and Many More.
FINANCIAL OVERVIEW 246 LOUDON ROAD (STATE ROUTE 9) CONCORD, NEW HAMPSHIRE PRICE $7,500,000 CAP RATE 5.77% NOI $432,575 ASSUMABLE LOAN $4,122,315± DOWNPAYMENT/EQUITY $3,377,685± PRICE PER SQUARE FOOT $107.14 RENT PER SQUARE FOOT $6.18 YEAR BUILT 2002 LOT SIZE (ACRES) 8.69± Shaw s 1.79± Additional 10.48± Total GROSS LEASEABLE AREA 70,000 SF ± TYPE OF OWNERSHIP Ground ANNUALIZED OPERATING DATA Base Rent Annual Rent Monthly Rent 3/1/2017 2/28/2022 $432,575.00 $36,047.92 3/1/2022 2/28/2027 $475,832.50 $39,652.71 10% OPTIONS LEASE GUARANTOR Shaw's Supermarkets, Incorporated (Inc.) 3/1/2027 2/29/2032 $523,415.75 $43,617.98 10% 3/1/2032 2/28/2037 $575,757.33 $47,979.78 10% 4 LEASE TYPE ROOF AND STRUCTURE Triple-Net (NNN) Ground Responsible 3/1/2037 2/28/2042 $633,333.06 $52,777.76 10% 3/1/2042 2/28/2047 $696,666.36 $58,055.53 10% 3/1/2047 2/29/2052 $766,332.99 $63,861.08 10% 3/1/2052 2/28/2057 $842,966.28 $70,247.19 10% This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z0331200
LEASE SUMMARY LEASE EXPIRATION DATE 2/28/2027 LEASE TERM 25 Years TERM REMAINING 8+ Years INCREASES OPTIONS TO RENEW 10 Percent Every 5 Years 6, 5-Year OPTIONS TO TERMINATE OPTIONS TO PURCHASE None None FIRST RIGHT OF REFUSAL None CASH FLOW SUMMARY ASSUMABLE LOAN YEAR NOI DEBT SERVICE CASH FLOW EQUITY CASH ON CASH PRINCIPAL BALANCE BANK/SERVICER NAME WELLS FARGO 2019 $432,575 $251,931 $180,644 $3,377,685 5.35% $4,110,132 2020 $432,575 $251,931 $180,644 $3,377,685 5.35% $4,034,649 2021 $432,575 $251,931 $180,644 $3,377,685 5.35% $3,956,325 Loan Balance $4,122,315 Loan Commencement 10/30/2014 Maturity Date 11/1/2024 2022 $475,833 $251,931 $223,902 $3,377,685 6.63% $3,874,050 Amortization 30-Year 5 2023 $475,833 $251,931 $223,902 $3,377,685 6.63% $3,788,141 2024 (Maturity Year) $475,833 $251,931 $223,902 $3,377,685 6.63% $3,698,438 Term 10 Years Interest Rate 4.27% Fixed Monthly P&I Payment $20,994.22 Non-Recourse Yes This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z0331200
TENANT OVERVIEW Shaw s is one of the oldest continuously operated supermarkets in the United States with New England roots that were firmly planted in 1860, when George C. Shaw opened his first store in Portland, Maine. A few years later, another native New Englander, Maynard A. Davis, opened his first Public s in Brockton and New Bedford, Massachusetts. Together, these two men sowed the seeds that would one day become Shaw s Supermarkets, Inc. And over the past 150 years, their growth can be directly attributed to the ingenuity of these two men and their belief in offering quality products and quality service. Today, Shaw s and Star continues to thrive and is working to become the favorite food and drug retailer in every state it operates. Most Shaw s stores feature Wild Harvest departments, which offer organic preservative free foods, and about 90 locations (including the subject property) have their own pharmacy. The store performs impressively. TENANT PROFILE 6 TENANT TRADE NAME OWNERSHIP TENANT LEASE GUARANTOR NUMBER OF LOCATIONS Shaw s Private (Wholly Owned Subsidiary of Albertsons, Inc.) Shaw s Shaw s Supermarkets, Incorporated (Inc.) 154 Locations SALES VOLUME $59.7 Billion (2016) NET WORTH $11.4 Billion (2016) Albertsons is one of the largest food and drug retailers in the United States with a strong local presence, but on a national scale. As of February 25, 2017, the company operated 2,324 stores across 35 states and the District of Columbia under 20 well-known banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star, Carrs and Haggen. Albertsons operates in 122 Metropolitan Statistical Areas (MSAs) in the United States. The company is ranked number one or number two by market share in 66 percent of those Metropolitan Statistical Areas (MSAs). Albertsons focuses on providing their customers with a service-oriented shopping experience, including convenient and value-added services through 1,786 pharmacies, 1,227 in-store branded coffee shops, and 385 adjacent fuel centers. The company employs nearly 273,000 talented and dedicated employees serving on average 34 million customers each week. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z0331200
ABOUT CONCORD With the City s central location in the northeast business corridor, coupled with high-quality support services, Concord has been consistently touted as one of the most desirable communities in New Hampshire in which to live and work. Its cultural and educational resources are among the best in the region. Also, its proximity to the Merrimack River and typical New England rural areas complements the high-quality service of its commercial areas and comfortable nature of its residential neighborhoods. This is Concord - New Hampshire s Main Street - and its front door is open and ready to welcome new business investment. CONCORD IS Strategically located in New England s Business Corridor with excellent interstate access to Boston and the Canadian Border; One of the most desirable, vibrant, and livable cities in central New Hampshire; A fiscally sound City with forward-thinking leadership; and An award-winning Main Street destination. CONCORD HAS Available land for development; Office space for immediate occupation; Excellent educational establishments; An educated workforce; A full-service regional airport; Proximity to the northeast U.S. and Canadian markets; Been cited by SmartAsset as one of the five best state capitals nationwide to live; Been ranked Seventh Best U.S Capital City in which to live by WalletHub; and 7 An excellent quality of life Concord is a desirable urban hub in New Hampshire s growing playground, in one of the healthiest states in the U.S Main Industries include Major Healthcare and Insurance Companies. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z0331200
3 93 4 129 106 5 MILE RADIUS Loudon 129 28 Pittsfield 107 106 3 93 4 132 3 MILE RADIUS 1 MILE 202 393 Chichester 4 4 9 SITE Epsom 393 20 103 pkiton 202 Concord 106 28 89 89 93 3 Pembroke 77 13 2010 Population 5,658 20,875 40,846 2010 Households 2,661 9,465 16,516 Allenstown 3 28 93 1-Mile 13 3-Mile 5-Mile Bow 1-Mile Suncook 3-Mile 5-Mile 1-Mile 3-Mile 5-Mile 2017 Average HH Income $66,672 $69,979 $85,780 2017 Population 5,685 21,281 42,030 2017 Households 2,655 9,579 16,826 2022 Population 5,778 21,665 42,839 2022 Households 2,696 9,739 17,155 2017 Median HH Income 2017 Per Capita Income $47,444 $49,425 $63,848 $30,490 $31,375 $35,012
MAJOR MARKETS Montpelier Concord MILEAGE TO MAJOR AIRPORTS BOSTON LOGAN INTERNATIONAL AIRPORT 72~ MILES PORTLAND, MAINE JETPORT 89~ MILES
MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS: The information contained in this ing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This ing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this ing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this ing Brochure you agree to release Marcus & Millichap Real Estate Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
SHAW S SUPERMARKET CONCORD, NEW HAMPSHIRE offering memorandum 2 4 6 L O U D O N R O A D ( S T A T E R O U T E 9 ) C O N C O R D, N E W H A M P S H I R E 0 3 3 0 1 BROKER OF RECORD: JENNIFER ATHAS MARCUS & MILLICHAP BOSTON LICENSE: 069504