ACTUAL SITE F I R S T T E N N E S S E E B A N K COLUMBIA, TENNESSEE OFFERING MEMORANDUM
Investment Overview Marcus & Millichap is pleased to present this 2,000-square-foot First Tennessee Bank in Columbia, Tennessee located 30 miles south of Nashville. The tenant signed a five-year lease in October 2017 with landlord responsibilities limited to roof and structure. First Tennessee Bank is a wholly owned subsidiary of First Horizon National Corporation, a publicly traded company with more than $22 billion in deposits. First Tennessee Bank sits at the signalized, hard corner intersection of West 7th Street and North Garden Street. More than 28,000 vehicles pass through this intersection daily. The subject property is located just outside the Historic Downtown Square, the centermost location in Columbia. This area is currently subject to the Downtown Revitalization & Main Street Program, an initiative focusing on downtown reinvestment, housing and neighborhood revitalization, and corridor redevelopment. First Tennessee Bank also benefits from a growing population. From 2010 to 2017, the population rose nine percent, and by 2022 the population is expected to increase additional 10 percent. Additional tenants in the immediate vicinity include: Subway, Regions Bank, Fred s Store, Walgreens, Family Dollar, Kroger, CVS, O Reilly Auto Parts, and many more. First Tennessee Bank in Columbia, Tennessee 30 Miles South of Nashville Tenant Signed Brand New Five-Year Lease in October 2017 Minimal Landlord Responsibilities Lease is Guaranteed by First Tennessee Bank National Association Subsidiary of First Horizon National Corporation New York Stock Exchange (NYSE): FHN Standard & Poor (S&P): BBB- Above Average Deposits Main & Main Fundamentals Asset is Located at Signalized, Intersection of West 7th Street and North Garden Street in the Heart of Downtown Columbia Less Than a Block from the Historic Downtown Square and Maury County Court House More Than 28,000 Vehicles Pass Through this Intersection Daily Significant Capital Entering Columbia Market Maury Regional Behavioral Center: $24 Million, 60-Bed Development Columbia Main Street is Member of Tennessee Main Street Program Growing Market Population Rose Nine Percent from 2010 to 2017, Projected an Additional 10 Percent from 2017 to 2022 Additional Tenants in the Immediate Vicinity Include: Subway, Regions Bank, Fred s Store, Walgreens, Family Dollar, Kroger, CVS, O Reilly Auto Parts, and Many More ACTUAL SITE Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0332264 2
Financial Overview OFFERING SUMMARY PRICE $699,833 CAP RATE 6.00% NOI $42,000 PRICE PER SQUARE FOOT $349.92 RENT PER SQUARE FOOT $21.00 YEAR BUILT 1953 APPROXIMATE LOT SIZE 0.60 Acres GROSS LEASEABLE AREA 2,000 ACTUAL SITE TYPE OF OWNERSHIP LEASE GUARANTOR LEASE TYPE Fee Simple First Tennessee Bank National Association Double-Net (NN) LEASE SUMMARY LEASE COMMENCEMENT DATE 10/1/2017 LEASE EXPIRATION DATE 9/30/2022 LEASE TERM 5 Years TERM REMAINING 5 Years ROOF AND STRUCTURE Landlord Responsible INCREASES None OPTIONS TO RENEW None Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0332264 3
Tenant Overview - First Tennessee Bank First Tennessee, part of the First Horizon National Corporation, is a financial services company based in Memphis, Tennessee. First Tennessee provides financial services through more than 180 branches in and around Tennessee. The company was founded during the Civil War in 1864 and has the 14th oldest national bank charter in the country. First Tennessee banking services are available to individual consumers as well as businesses of all sizes. Combined, the bank s customer base represents the largest deposit share in four of Tennessee s five major metropolitan areas. With a strong focus on service and satisfaction, First Tennessee enjoys one of the highest customer retention rates of any bank in the country. On October 11, 2016, First Tennessee announced the opening of its first Piedmont Triad retail branch in Winston-Salem. The bank had offered commercial banking and real estate and wealth-management services in the city since 2004. From 2003 to 2016, Winston-Salem was also the regional headquarters for the Mid-Atlantic Region. The new regional headquarters is in Raleigh, where First Tennessee had four branches after buying TrustAtlantic Bank in 2015. First Horizon National Corporation is a bank holding company based in Memphis, Tennessee with $39.5 billion in assets. It is the parent company of First Tennessee Bank, FTN Financial, and FTB Advisors, Incorporated. ACTUAL SITE TENANT PROFILE TENANT TRADE NAME First Tennessee Bank OWNERSHIP Subsidiary of First Horizon National Corporation (NYSE: FHN) TENANT First Tennessee Bank National Association LEASE GUARANTOR First Tennessee Bank National Association NUMBER OF LOCATIONS 180 Branches HEADQUARTERED Memphis, TN WEB SITE www.firsttennessee.com FILE PHOTO Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0332264 4
Aerial Overview Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0332264 5
Area Overview & Demographics 1-Mile 3-Mile 5-Mile Population 2000 Population 7,045 25,537 36,908 2010 Population 6,515 25,284 38,158 2017 Population 6,911 27,444 41,684 2022 Population 7,568 30,161 45,855 1-Mile 3-Mile 5-Mile Households 2000 Households 2,938 10,379 14,441 2010 Households 2,641 10,366 15,323 2017 Households 2,791 11,233 16,718 2022 Households 3,056 12,348 18,396 1-Mile 3-Mile 5-Mile Household (HH) Incomes 2017 Average HH Income $41,266 $47,398 $56,880 2017 Median HH Income $36,175 $36,373 $43,773 2017 Per Capita Income $16,665 $19,400 $22,813 Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0332264 6
Market Overview - Columbia, Tennessee Columbia, Tennessee is a hub for new commercial and residential development. Columbia and Maury County have led South Central Tennessee in population growth, retail sales, and employment over the past decade. Columbia is home to Columbia State Community College, Maury Regional Medical Center (the largest medical center from Nashville to Huntsville) and hosts a robust and active environment for commerce from the city s historic commercial district to new commercial and industrial areas within the city. Rich in history, Columbia is one of Tennessee s oldest and most prominent historic cities, which was established in 1807. Along with its unique history, Columbia is also known as the Mule Capital of the World due to the city s agricultural history and ongoing status in an active agricultural South Central Tennessee region. Each April, the Maury County Bridle and Saddle Club hosts Mule Day, offering a week-long festival that attracts more than 100,000 visitors annually. Access to two major rail lines CSX Transportation & TN Southern Railroad vast interstate and highway infrastructure that includes I-65 and a network of state highways, and a regional airport give Columbia the advantage for businesses looking to grow and expand. Columbia Main Street (CMS) is a member of the Tennessee Main Street Program. The Main Street program was organized by the National Trust for Historic Preservation to help revitalize the economic vitality of downtown commercial districts using the National Main Street Center s Four Point Main Street Approach. Economic restructuring strengthens downtown s existing economic assets and finds new uses for old buildings. Columbia Main Street plans strengthen existing businesses and recruit new businesses to create a balanced, thriving commercial district. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0332264 7
Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing 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 Marketing 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 Marketing 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 Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment 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.
F I R S T T E N N E S S E E B A N K 200 WEST 7TH STREET, COLUMBIA, TENNESSEE 38401 BROKER OF RECORD: JODY MCKIBBEN MARCUS & MILLICHAP NASHVILLE, TN LICENSE: 307629