UPSCALE MODERN MEDITERRANEAN CUISINE SINGLE TENANT NN LEASE OPPORTUNITY WHITE PLAINS, NEW YORK (WESTCHESTER COUNTY)
EXCLUSIVELY MARKETED BY BRITT RAYMOND FIRST VICE PRESIDENT SRS NATIONAL NET LEASE GROUP 366 Madison Avenue, 5th Floor New York, NY 10017 DL: 929.229.2614 M: 704.517.4712 Britt.Raymond@srsre.com NY License No. 10401234463 MATTHEW MOUSAVI MANAGING PRINCIPAL SRS NATIONAL NET LEASE GROUP 610 Newport Center Drive, Suite 1500 Newport Beach, CA 92660 DL: 949.698.1116 M: 714.404.8849 Matthew.Mousavi@srsre.com CA License No. 01732226 BRIAN VON SCHMID VICE PRESIDENT SRS NATIONAL NET LEASE GROUP 366 Madison Avenue, 5th Floor New York, NY 10017 DL: 212.710.5259 Brian.Vonschmid@srsre.com NY License No. 10401281331 PATRICK R. LUTHER, CCIM MANAGING PRINCIPAL SRS NATIONAL NET LEASE GROUP 610 Newport Center Drive, Suite 1500 Newport Beach, CA 92660 DL: 949.698.1115 M: 480.221.4221 Patrick.Luther@srsre.com CA License No. 01209944
4,500 43,600
5 8 16 18 INVESTMENT SUMMARY INVESTMENT HIGHLIGHTS RESTAURANT HIGHLIGHTS PROPERTY OVERVIEW PARCEL MAP AERIALS SITE PLAN LOCATION MAP AREA OVERVIEW CITY OVERVIEW DEMOGRAPHICS FINANCIALS RENT ROLL PRICING SUMMARY TENANT OVERVIEW This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.
INVESTMENT SUMMARY SRS National Net Lease Group is please to present the rare opportunity to acquire the fee simple (land & building) interest in Mediterraneo Restaurant, a single tenant NN leased investment property located in White Plains, NY (Westchester County). The tenant, Mediterraneo (WP), LLC, opened for business and signed a new 10 year initial lease term in November 2016, with 2 (5-year) option periods to extend. The lease features 10% rental increases every 5 years in the initial term and during the option terms, generating steady NOI growth and hedging against inflation. The lease is personally guaranteed for the first 3 years and is NN with landlord responsibilities limited to roof & structure. The existing building was remodeled in 2016 and is highly distinguishable with a stateof-the-art, dramatic, glass-walled exterior facade. In addition to the structure s unique design, the restaurant offers first class service and a top notch dining experience, offering coastal Mediterranean cuisine with French and Italian styles of cooking. Westchester Magazine rated the Mediterraneo as one of the best in Westchester and complimented it on getting the details right. The restaurant is owned by Z Hospitality Group which operates 8 restaurants, two of which are additional Mediterraneo locations in Greenwich (open 14 years) and Norwalk (open 4 years), Connecticut. The tenant is paying percentage rent of approximately $85,000 per year with sales in excess of $2M. The subject site is located at the signalized, hard corner intersection of Main Street and Renaissance Square wit over 48,100 vehicles passing by each day. New York City is located just 28 miles south or about 1 hour subway ride to the center of midtown Manhattan. The asset has excellent visibility & access on a corner site with valet and reciprocal parking across the street at the Ritz Carlton - Westchester parking garage. The property is located adjacent to the Ritz Carlton and is across the street from the Galleria Mall at White Plains anchored by Macy s, Sears, and Forever 21. The restaurant is in the center of the city surrounded by other national/credit tenants that include Walmart, Nordstrom Rack, Barnes & Noble, CVS, Burlington Coat Factory, and more, further increasing consumer traffic and crossover shopping in the area. The 5-mile trade area is supported by a dense population of approximately 205,000 people with an average affluent household income of $176,000. OFFERING PRICING: $4,250,000 BASE RENT: $165,000 PERCENTAGE RENT: $85,000 2017 NET OPERATING INCOME: $250,000 CAP RATE: 5.90% GUARANTY: Personal (First 3 Years) TENANT: Mediterraneo (WP), LLC LEASE TYPE: NN LANDLORD RESPONSIBILITIES: Roof & Structure PROPERTY SPECIFICATIONS RENTABLE AREA: 7,630 SF (3 Stories) LAND AREA: 2,614 SF PROPERTY ADDRESS: 189 Main Street, White Plains, NY 10601 YEAR BUILT / REMODELED: 1925 / 2016 PARCEL NUMBER: 1700-125-075-00002-000-0006 ZONING: Core Business (CB-4) OWNERSHIP: Fee Simple (Land and Building) 5 / MEDITERRANEO / WHITE PLAINS, NEW YORK INVESTMENT SUMMARY / SRS NATIONAL NET LEASE GROUP
INVESTMENT HIGHLIGHTS 9 YEARS REMAINING ON INITIAL TERM PERSONAL GUARANTY RENTAL INCREASES DURING INITIAL TERM & OPTIONS The restaurant currently has 9+ years remaining on the initial 10 year term with 2 (5-year) options to extend, demonstrating their long term commitment to the site Personal guaranty for the first 3 years of the term 10% rental increases every 5 years throughout the initial term and at the beginning of each option period, growing NOI and hedging against inflation NN LEASED FEE SIMPLE OWNERSHIP LIMITED LANDLORD RESPONSIBILITIES Tenant is responsible for all CAM, insurance, and taxes Ideal, low-management investment for out of state, passive investor Landlord responsibilities limited to roof & structure LOCATED AT SIGNALIZED HARD CORNER INTERSECTION MAIN STREET EXCELLENT VISIBILITY & ACCESS VALET & RECIPROCAL PARKING Mediterraneo is located at the signalized, hard corner intersection of Main Street and Renaissance Square The site is just 28 miles or 1 hour on the subway north of midtown Manhattan The asset has excellent visibility & access on a corner site Valet parking is offered and reciprocal parking is available at the Ritz Carlton - Westchester parking garage across the street ADJACENT TO RITZ CARLTON - WESTCHESTER ACROSS FROM THE GALLERIA MALL STRONG NATIONAL/CREDIT TENANT PRESENCE The property is located adjacent to the Ritz Carlton and is across the street from the Galleria Mall at White Plains anchored by Macy s, Sears, and Forever 21 Nearby national/credit tenants include Walmart, Nordstrom Rack, Barnes & Noble, CVS, Burlington Coat Factory, and more Increases consumer traffic and crossover shopping in the trade area 6 / MEDITERRANEO / WHITE PLAINS, NEW YORK INVESTMENT HIGHLIGHTS / SRS NATIONAL NET LEASE GROUP
RESTAURANT HIGHLIGHTS STRONG DEMOGRAPHICS IN THE AFFLUENT 5-MILE TRADE AREA Over 205,000 residents and 183,000 employees support the trade area Affluent average household income of approximately $176,000 RAVE REVIEWS FROM CUSTOMERS EXCELLENT REPUTATION WESTCHESTER MAGAZINE ONE OF THE BEST IN WESTCHESTER COUNTY Mediterraneo of White Plains has a 5 star rating on Trip Advisor and a 4 star rating on Yelp The restaurant opened in November 2016 and has already made an impression in the city, with Westchester Magazine naming it one of the best restaurants in Westchester County SMALL BATCH COOKING FARM-TO-TABLE COOKING STYLE SEASONAL DISHES The sleek, upscale restaurant offers creative, fresh dishes on a seasonal menu The restaurant is farm-to-table, featuring wood-fired pizzas, seafood, vegetables, homemade pastas, and a signature burger The restaurant has no freezer and uses scratch cooking with small batches that if they run out, they run out - director of operations Joseph Hamboussi OWNED BY Z HOSPITALITY GROUP OPERATES 8 RESTAURANTS SUCCESSFUL & ESTABLISHED LOCATIONS The restaurant is owned by Z Hospitality Group which operates 8 established & successful restaurants Mediterraneo also has locations in Greenwich and Norwalk, Connecticut, which have been open for 14 and 4 years respectively STUNNING ARCHITECTURAL DESIGN STATE OF THE ART BUILDING 3 STORY The building was remodeled in 2016 and is highly distinguishable with state-of-theart construction and high quality materials used Facade design features glass and see through hexagonal steel frame The building design provides ambiance and opens up the dining room with excellent natural light, also making it easy for outside lookers to view the restaurant 7 / MEDITERRANEO / WHITE PLAINS, NEW YORK INVESTMENT HIGHLIGHTS / SRS NATIONAL NET LEASE GROUP
PROPERTY OVERVIEW ACCESS There is one (1) access point along Main Street/ State Highway 119. TRAFFIC COUNTS Main Street/ State Highway 119:...43,600 Renaissance Square:...4,500 PARCEL Parcel Number: 1700-125-075-00002-000-0006 Acres: 0.06 Square Feet: 2,614 ZONING CB-4: Core Business - 4 IMPROVEMENTS There is approximately 7,630 SF of existing building area. PARKING There is valet parking & reciprocal parking at the Ritz Carlton - Westchester. YEAR BUILT/REMODELED 1925/2016 PARCEL MAP 8 / MEDITERRANEO / WHITE PLAINS, NEW YORK PROPERTY OVERVIEW / SRS NATIONAL NET LEASE GROUP
43,600 4,500 N
N
Demographics 1 Mile 3 Mile 5 Mile Estimated Population: 40,626 109,997 204,713 Average Household Income: $103,208 $144,979 $176,001 Estimated Employees: 47,450 93,944 183,343 43,600 4,500 N
43,600 4,500 N
RENAISSANCE SQUARE 4,500 VPD SERAFINA NORTHCOURT BUILDING (GENERAL CONTRACTORS) MAIN ST. 43,600 VPD N
WHITE PLAINS 2017 ESTIMATED POPULATION 1 Mile... 40,626 3 Mile...109,997 5 Mile...204,713 2017 AVERAGE HOUSEHOLD INCOME 1 Mile...$103,208 3 Mile...$144,979 5 Mile...$176,001 2017 ESTIMATED TOTAL EMPLOYEES 1 Mile... 47,450 3 Mile... 93,944 5 Mile...183,343 NEW YORK N
43,600 4,500
AREA OVERVIEW OF WHITE PLAINS, NEW YORK White Plains is a city in Westchester County, New York, United States. It is the county seat and commercial hub of Westchester, an affluent suburban county just north of New York City that is home to almost one million people. White Plains is located in south-central Westchester, with its downtown (Mamaroneck Avenue) 25 miles north of Midtown Manhattan. The City of White Plains had a population of 58,940 as of July 1, 2017. According to the city government, the daytime weekday population is estimated at 250,000. The city was ranked third in the top 10 places to live in New York for 2014, according to national online real estate brokerage Movoto. The economy of White Plains revolves around large companies that have relocated to the city such as ITT, Xylem, Bunge and Combe. Other companies based in White Plains include Alliance Bernstein, Dannon, Fifth Street Finance Corp., the New York Power Authority, New York-Presbyterian Hospital, Krasdale Foods (which supplies products for the C-Town supermarket chain), Nine West, Acadia Realty Trust and AboveNet, as well as the US headquarters of Heineken. At the turn of the second millennium, there was a boom in commercial businesses and residential living and as a result the city s infrastructure grew substantially with two double towers being 40 plus stories and both being highend apartments. At one time Prodigy had its headquarters in White Plains Plaza in White Plains. In 2000 the company announced that it would move its headquarters to Austin, Texas. Nonprofits based in White Plains include the Leukemia & Lymphoma Society and the March of Dimes. Pace University is located in White Plains. The Pace University School of Law is well known for its environmental law program. Pace University also features the Lubin School of Business which is well known for its MBA program. Other colleges in the area include Mercy College and the College of Westchester. The Jacob Purdy House was built before 1730 and served as the headquarters of General George Washington in 1778. The house was restored and transported to its new location in 1973. The house serves as the headquarters for the White Plains Historical Society. The White Plains Armory and the Percy Grainger Home are other historic sites of interest in White Plains. Westchester County Airport is located in Harrison, about 7 miles northeast of downtown White Plains. Often the airlines and traveling public refer to Westchester County Airport as White Plains. It serves as a minor hub for JetBlue Airways, which offer regularly scheduled flights to several destinations in Florida. In addition, JetBlue began service from Westchester to Nassau, Bahamas in November 2011. Many people instead opt to fly out of one of New York City s three major airports, two of which are located within an hour s drive of White Plains 16 / MEDITERRANEO / WHITE PLAINS, NEW YORK AREA OVERVIEW / SRS NATIONAL NET LEASE GROUP
AREA OVERVIEW (CONTINUED) DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2017 Estimated Population 40,626 109,997 204,713 2022 Projected Population 41,727 112,633 209,419 2010 Census Population 38,922 106,152 198,053 Projected Annual Growth 2016 to 2021 0.54% 0.47% 0.46% Historical Annual Growth 2010 to 2016 0.59% 0.49% 0.46% 2017 Estimated Households 16,867 42,059 74,323 2022 Projected Households 17,309 42,990 75,919 2010 Census Households 16,188 40,727 72,098 Projected Annual Growth 2016 to 2021 0.52% 0.44% 0.43% Historical Annual Growth 2010 to 2015 0.57% 0.44% 0.42% 2017 Estimated White 52.40% 60.90% 68.30% 2017 Estimated Black or African American 18.10% 15.40% 10.90% 2017 Estimated Asian or Pacific Islander 7.90% 9.10% 10.30% 2017 Estimated American Indian or Native Alaskan 1.00% 0.50% 0.40% 2017 Estimated Other Races 15.50% 10.00% 6.80% 2017 Estimated Hispanic 39.70% 27.00% 19.30% 2017 Estimated Average Household Income $103,208 $144,979 $176,001 2017 Estimated Median Household Income $69,714 $97,825 $116,294 2017 Estimated Per Capita Income $44,380 $56,197 $64,601 2017 Estimated Total Businesses 3,609 6,685 11,895 2017 Estimated Total Employees 47,450 93,944 183,343 17 / MEDITERRANEO / WHITE PLAINS, NEW YORK AREA OVERVIEW / SRS NATIONAL NET LEASE GROUP
RENT ROLL LEASE TERM RENTAL RATES TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONS Mediterraneo 7,630 November 2016 November 2026 Current - $13,750 $1.80 $165,000 $21.63 NN 2 (5-Year) Personal Guaranty (est.) (est.) Year 6 10% $15,125 $1.98 $181,500 $23.79 Option 1: $199,656/Yr Option 2: $219,600/Yr Percentage Rent* $7,083 - $85,000 - Total $20,833 - $250,000 - Note: In addition to base rent, Tenant pays Percentage Rent, on a quarterly basis, 8.5% of Gross Receipts above $2,000,000 and not to exceed $3,000,000. *Percentage Rent is calculated off of received Percentage Rent on an annualized basis. FINANCIAL INFORMATION Price:...$4,250,000 Net Operating Income:...$250,000 Cap Rate:... 5.90% Lease Type:... NN PROPERTY SPECIFICATIONS Year Built/Remodeled:...1925/2016 Rentable Area:...7,630 SF Land Area:...2,614 SF Address:... 189 Main Street, White Plains, NY 10601 TENANT PROFILE MEDITERRANEO RESTAURANT Mediterraneo Restaurant is a new seafood restaurant opening on a familiar corner in White Plains. Seafood abounds at Mediterraneo, from appetizers like crudo of yellowfin tuna and Prince Edward Island mussels simmering in red curry to pan-roasted sea bass with Brussels sprouts and grilled Atlantic salmon served with butternut squash. Of course, if the one prefer the flavors of the mainland, try one of Mediterraneo Restaurant wood-fired pizzas or spaghetti with veal meatballs, followed by a decadent flourless chocolate cake. They carefully select their wines for their quality and value, making sure the guests can enjoy celebrated producers at an affordable price. Company Type:... Private Mediterraneo Locations:...3 Operator Locations:...8 Website:.www.mediterraneoofwhiteplains.com 18 / MEDITERRANEO / WHITE PLAINS, NEW YORK RENT ROLL / SRS NATIONAL NET LEASE GROUP
SRS GLOBAL STATS 800+ PROPERTIES CURRENTLY REPRESENTED 600+ CLIENTS REPRESENTED IN 2016 $2.6B* TRANSACTION VALUE 20+ OFFICES 250+ BROKERS, PROFESSIONALS, AND STAFF #1 LARGEST REAL ESTATE FIRM EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA *STATISTICS ARE FOR 2016.