Merchant s Tire 8820 Quioccasin Rd, Henrico, VA 23229 Offering Memorandum
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Merchant s Tire located at 8820 Quioccasin Rd, Henrico, VA 23229 ( Property ). It has been prepared by Matthews Retail Group. 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 Retail Group. 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 detrimental to the interest of the Seller. Owner and Matthews Retail Group 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 Retail Group 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. Matthews Retail Group OFFERING MEMORANDUM Merchant s Tire
Table of Contents Pricing & Financial Analysis Investment Overview... 2 Investments Highlights... 2 Executive Summary... 3 Company Overview... 4 Property Description Physical Description... 7 Tenant Map... 8 Regional Map... 9 Parcel Map... 10 Birds Eye... 11 Demographics City Overview Henrico, VA... 14 Demographics Report... 15 EXCLUSIVELY LISTED BY: Braden Crockett Associate direct +1.310.919.5814 MOBILE +1.714.345.6206 email braden.crockett@matthewsretailgroup.com License No. 01946071
Matthews Retail Group OFFERING MEMORANDUM Merchant s Tire
Pricing & Financial Analysis
Investment Overview 10.10% cap rate Absolute NNN - No Management Responsibilities Merchant s Tire is operated by TBC Retail Group which operates nearly 800 Tire Kingdom, National Tire and Battery and Merchant s Tire. Strong Retail Synergy (National Tenants such as Walmart, BJ s, Advance Auto, Staples, Fantastic Sams, Sears, Macy s, JC Penny) 10% rent increases in options In the vicinity of both University of Richmond and Virginia Commonwealth University TBC Corporation is a wholly owned subsidiary of Sumitomo Corporations of America (A2 Credit Rating by Moody s) Flat Rent of $216,806 for 6 years Tenant has been operating at the same location for 14 Years Multiple Large Acquisitions in the Area (Both the Big Box Across the Street and the Regency Square Mall were sold in last 12 months.) Investments Highlights Strong Population Demographics (500,000+ People in a 10- Mile) Strong Average Income of $88,000 in a 3-Mile 5-Miles from downtown Richmond, VA P. 2 COLLIERS INTERNATIONAL OFFERING MEMORANDUM Merchant s Tire
Executive Summary Merchant s Tire 8820 Quioccasin Rd Henrico, VA 23229 List Price...$2,150,000 Gross Leasable Area... 7,080 SF Price/SF...$303.67 CAP Rate - Current... 10.10% Year Built...2001 Lot Size... 0.65 Acres (28,445 SF) Annualized Operating Data Monthly Rent Annual Rent Rent/SF CAP Rate Current - 3/31/2021 $18,067.17 $216,806.00 $30.62 10.10% Option 1-3/31/2026 $19,873.88 $238,486.60 $33.68 11.11% Option 2-3/31/2031 $21,861.27 $262,335.26 $37.05 12.22% Option 3-3/31/2036 $24,047.40 $288,568.79 $40.76 13.44% * Current Rent is $197,097 and Increases to $216,806 on 4/1/2016. Seller to credit $19,709 upon closing. Tenant Summary Tenant Trade Name Merchant s Tire Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type Absolute NNN Roof and Structure Tenant Responsible Original Lease Term 20 Years Lease Commencement Date 4/1/2001 Rent Commencement Date 4/1/2001 Lease Expiration Date 3/31/2021 Term Remaining on Lease +/- 6 Years Increases 10% in Options Options Three (3) - Five (5) Year Options Merchant s Tire OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 3
Company Overview Property Name Merchant s Tire Gross Leasable Area 7,080 SF Property Type Net Leased Auto Parts Parent Company Trade Name TBC Corporation Ownership Private No. of Locations 1,200 Headquartered Juno Beach, FL Web Site http://www.merchantstire.com/ Year Founded 1943 Merchant s, LLC, doing business as Merchant s Tire & Auto Centers Inc., operates tire and automotive retail stores. Merchant s, LLC distributes tire and automotive parts for the automotive replacement market, including air and fuel filters, air conditioning, alignments, alternators, batteries, belts and hoses, brakes, coil springs, cooling system, CV boots and joints, fuel system cleaning, headlight and taillights, heating service, radiators, shocks and struts, starters, state inspections, suspension, steering and suspension, tire repair, transmission maintenances, wheel balancing, and wiper blades, as well as lube oil, and filters. It also provides professionbal automative service, maintenance, and repair services; and tire alignment services. The company was founded in 1943 and is based in Juno Beach, Florida. It has stores in Manassas, Charlottesville, Richmond, Roanoke, Tidewater, and Centreville, Virginia; York Pennsylvania; Myrtle Beach, south Carolina; Baltimore, Maryland; and Raleigh, North Carolina. Merchant s, LLC operats as a subsidiary of TBC Retail Group, Inc. Source: Bloomberg P. 4 COLLIERS INTERNATIONAL OFFERING MEMORANDUM Merchant s Tire
Property Description
P. 6 COLLIERS INTERNATIONAL OFFERING MEMORANDUM Merchant s Tire
Physical Description THE OFFERING Property Name... Merchant s Tire Property Address...8820 Quioccasin Rd Henrico, VA 23229 Assessor s Parcel Number...752-745-5727 Zoning... B3 SITE DESCRIPTION Number of Stories...One Year Built... 2001 Gross Leasable Area (GLA)...7,080 SF Lot Size... 0.65 Acres (28,445 SF) Type of Ownership... Fee Simple Parking...17 Surface Spaces Parking Ratio... 2.4 : 1,000 SF Landscaping...Professional Topography...Generally Level CONSTRUCTION Foundation...Concrete Slab Framing... Wood Exterior... Brick Parking Surface... Asphalt Roof...Flat Merchant s Tire OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 7
Tenant Map P. 8 COLLIERS INTERNATIONAL OFFERING MEMORANDUM Merchant s Tire
Regional Map Merchant s Tire OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 9
Parcel Map P. 10 COLLIERS INTERNATIONAL OFFERING MEMORANDUM Merchant s Tire
Birds Eye Merchant s Tire OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 11
P. 12 COLLIERS INTERNATIONAL OFFERING MEMORANDUM Merchant s Tire
Demographics
City Overview Henrico, VA Henrico is located in the Commonwealth of Virginia. It is located in Henrico County which is the fifth-most populous county in Virginia and the sixth-most populous countyequivalent in Virginia. Named after the Citie of Henricus, Henrico became one of the eight original Shires of Virginia in 1634. It is one of the oldest counties in the United States. The present-day Henrico County curves around the City of Richmond, surrounding it to the west, north, and east. The county is bounded by the Chickahominy River to the north and the James River and Richmond to the south. Richmond International Raceway is located in the central portion of Henrico County near Mechanicsville, just north of the Richmond city limits. Additionally, Richmond International Airport is located in the eastern portion of Henrico County in Sandston. Top private employers in the county include Capital One, Bon Secours Richmond Health System, and Anthem. P. 14 COLLIERS INTERNATIONAL OFFERING MEMORANDUM Merchant s Tire
Demographics Report Population 3-Mile 5-Mile 10-Mile 2020 Projection 86,890 202,353 573,825 2015 Estimate 84,198 194,244 546,545 2010 Census 82,189 187,245 520,753 2000 Census 77,074 170,430 466,915 Growth 2015-2020 3.20% 4.17% 4.99% Growth 2010-2015 2.44% 3.74% 4.95% Growth 2000-2010 6.64% 9.87% 11.53% Households 2020 Projection 35,412 83,364 236,626 2015 Estimate 34,298 80,112 225,202 2010 Census 33,457 77,411 214,434 2000 Census 32,037 71,857 193,042 Growth 2015-2020 3.25% 4.06% 5.07% Growth 2010-2015 2.51% 3.49% 5.02% Growth 2000-2010 4.43% 7.73% 11.08% Income $0 - $15,000 2,373 5,237 27,639 $15,000 - $24,999 2,801 6,126 20,734 $25,000 - $34,999 2,880 6,658 21,406 $35,000 - $49,999 5,242 11,299 30,952 $50,000 - $74,999 6,618 15,278 39,960 $75,000 - $99,999 4,736 10,795 26,561 $100,000 - $124,999 3,185 7,617 18,613 $125,000 - $149,999 2,073 5,268 11,829 $150,000 - $199,999 1,949 5,632 13,172 $200,000 - $249,999 720 2,088 4,880 $250,000 - $499,999 1,184 2,932 6,801 $500,000+ 537 1,184 2,656 2015 Est. Average Household Income $88,086 $91,640 $80,355 2015 Est. Median Household Income $64,556 $67,569 $57,427 Merchant s Tire OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 15
Merchant s Tire 8820 Quioccasin Rd Henrico, VA 23229 OFFERING MEMORANDUM Braden Crockett Associate direct +1.310.919.5814 MOBILE +1.714.345.6206 email braden.crockett@matthewsretailgroup.com License No. 01946071 Matthews Retail Group 841 Apollo St. Ste 150 El Segundo, CA 90245 www.matthewsretailgroup.com