Lambert (St. Louis) International Airport EXCLUSIVE OFFERING $3,748,000-6.85% CAP - St. Louis metro EXP DALLAS 214.522.7200 JOE CAPUTO joe@exp1031.com BOB MOORHEAD bob@exp1031.com property. Brand new construction. Scheduled completion July 2012. tenant. Lessee: Bridgestone Retail Operations, LLC operates 2,200+ Stores with 22,000 Employees. Lessee is a subsidiary of Bridgestone Corporation, the world s largest tire maker - S&P Rated BBB+. lease structure. Brand new, 15-year, corporate, NNN lease with 6.5% rent increases every 5 years. location. Along US-67 / N. Lindbergh Blvd. (58,000 Cars / Day) off I-270 (133,241 cars / day). 7 miles from Lambert (St. Louis) International Airport. Major area retailers include Walgreens, AutoZone, Mattress Firm, Sears, and Starbucks. St. Louis CSA population is 2,878,255, making it the 4 th largest CSA in the Midwest and16 th largest in the country. St. Louis is home to 9 Fortune 500 companies which include Express Scripts, Emerson Electric, Monsanto, Reinsurance Group of America, Ameren, Charter Communications, Peabody Energy, Graybar Electric, and Centene.
Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4: PAGE 5-8: PAGE 9: PAGE 10-11: PAGE 12: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT LEASE OVERVIEW SITE MAP AERIAL PHOTOS LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS REP PHOTO Disclaimer EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located at 8400 N. Lindbergh Blvd., Florissant, MO by the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent. Listed in association with missouri broker of record: Dutchman Realty, inc. license #: 1999023010
Investment overview PRICE: $3,748,000 CAP RATE: 6.85% NET OPERATING INCOME: $256,698 BUILDING AREA: 8,256+ Square Feet LAND AREA: 1.64+ Acres YEAR BUILT: 2012 OWNERSHIP: Fee Simple Interest OCCUPANCY: 100% Lease overview Initial Lease Term: 15 Years, Plus 5, 5 Year Options to Renew Projected Rent Commencement: July 2012 Projected Lease Expiration: July 2027 Lease Type: NNN; No Landlord Responsibilities After Year 1 Rent Increases: 6.5% Increase After Every 5 th Year Year 1-5 Annual Rent (Current): $256,698 Year 6-10 Annual Rent: $273,383 Year 11-15 Annual Rent: $291,153 Year 16-20 Annual Rent (Option 1): $310,078 Year 21-25 Annual Rent (Option 2): $330,233 Year 26-30 Annual Rent (Option 3): $351,699 Tenant overview Lessee: BRIDGESTONE RETAIL OPERATIONS, LLC dba Firestone Complete Auto Care Year 31-35 Annual Rent (Option 4): $374,559 Year 31-35 Annual Rent (Option 5): $398,905 Bridgestone Firestone www.bsro.com Automotive service is the largest part of Bridgestone Retail Operations, LLC's business, accounting for approximately 50 percent of sales with tire and financial services making up the rest. Bridgestone Firestone North American Tire manufactures Bridgestone, Firestone, and Dayton truck tires along with tires for virtually every wheeled vehicle made. Harvey S. Firestone (1868-1938) founded The Firestone Tire & Rubber Company in Akron, Ohio, in August 1900, and started marketing solid rubber tires for carriage wheels. In the late 1970s the company, in an effort to re-focus its business solely on automotive service and tire sales, began to phase out the sale of all non-auto related merchandise. Shortly thereafter, in 1981, the Firestone MasterCare Car Service concept was introduced and established as a premier brand of quality service being delivered to customers in a consistent and distinctive manner. Bridgestone Corporation, founded in 1931 in Kurume, Japan, purchased Firestone in 1988, transforming the company into the world's largest manufacturer of tires and other rubber products. Bridgestone and Firestone operations in the Americas were consolidated in 1990 as Bridgestone/Firestone, Inc. SUBJECT PROPERTY Bridgestone/Firestone, Inc. initiated a series of changes to its corporate structure in December 2001, reorganizing its operations in the Americas under a holding PRIOR TO PANDA EXPRESS EXPANSION company, Bridgestone Americas Holding, Inc., and several operating subsidiaries. The largest of these operating subsidiary companies is Bridgestone Retail Operations, LLC. In 2001 Bridgestone/Firestone also announced its majority ownership stake in Morgan Tire & Auto, Inc. (MTA), then the nation's second largest independent retailer of tires. Responsibility for MTA was shifted to Bridgestone Retail Operations, LLC following the reorganization of Bridgestone/Firestone. Today, Bridgestone Retail Operations, LLC and its subsidiaries employ approximately 22,000 teammates in North America. Bridgestone Retail Operations, LLC consists of more than 2,200 company-owned consumer and commercial stores in the United States as well as the company's own credit card operations. The store channels include Firestone Complete Auto Care, Morgan Tire / Tires Plus, Expert Tire, Commercial & Farm, and Mark Morris. Today Bridgestone Retail Operations, LLC operates the largest number of company-owned full-line automotive retail generalist stores in the world. 3
SITE MAP 4
Aerial photo N 5
Aerial photo Lambert International Airport N 6
Aerial photo Missouri River N 7
Aerial photo N 8
Location overview IMMEDIATE TRADE AREA Bridgestone/Firestone is a retail pad located along US Highway 67 / North Lindbergh Boulevard (18,580 Cars / Day) 0.25 miles south of West Washington Street and approximately 1.5 miles north of I-270 (133,141 Cars / Day). Initially a bypass of St. Louis, today US Hwy 67 / N Lindbergh Blvd is the main thoroughfare serving the city of Florissant. The road bisects the city and connects I-70 south of the St. Louis-Lambert International Airport to MO Route 367, a north-south business parkway that connects I-70 to US Hwy 67 through downtown St. Louis. The only vehicular tunnel in Missouri is located on Lindbergh Blvd at St. Louis-Lambert International Airport, where the road tunnels under the runways. As Florissant is a primarily residential city, the vast majority of the city s retail is located within a city block of US Highway 67 / N Lindbergh Blvd. The subject property is on the east side of the roadway adjacent to an AutoZone and across from O Reilly Auto Parts and Burger King. The site is less than a mile from Old Saint Ferdinand Shrine, a historic site consisting of four 19 th century buildings at the center of Fleurissant, the original 1767 French settlement for which modern Florissant is named. Today the site is an international draw for businesses seeking retreat, meeting, and small convention space. Major retailers in the area include Walgreens, Sears, Mattress Firm, IHOP, Starbucks, and Outback Steakhouse. FLORISSANT AND ST. LOUIS COUNTY, MISSOURI Originally settled in the late 18 th century, the rich farmland of historic Florissant, Missouri is today a northern inner-ring suburb of St. Louis with a population of 52,158. Florissant s location at the intersection of I-270 (133,141 Cars / Day) and I- 170 (26,855 Cars / Day) make the area prime real estate for quick access to downtown St. Louis, St. Louis s numerous suburbs, and the Missouri countryside. The city is located 2-miles north of the St. Louis area s principal airport, the St. Louis-Lambert International Airport, which serves 12.3 million passengers annually. The 1.25 million SF Jamestown Mall is located in Florissant off N Lambert Boulevard. This mall is anchored by Macy s and JC Penney and includes tenants such as Finish Line, Foot Locker, and Lens Crafters. St. Louis County borders the City of St. Louis, which is independent from St. Louis County. The 2010 United States Census put the county population at 998,954, which is more than three times the size of its adjoining, namesake city. The county has one of the lowest crime rates in the United States. The unemployment rate for St. Louis County remains below that of the metropolitan area, and the county contains about one-fourth of all the jobs in the State of Missouri and about half the jobs in the St. Louis Metropolitan Area. GREATER ST. LOUIS COMBINED STATISTICAL AREA The Greater St. Louis combined statistical area (CSA) population of 2,878,255 is the 4 th largest in the Midwest and the 16 th largest CSA in the country. According to the 2007 United States Economic Census, manufacturing is the primary industry in the city with nearly $11 billion in business, followed by the healthcare and social service industry with $3.5 billion each, professional or technical services with $3.1 billion, and retail with $2.5 billion. The sector employing the largest number of workers in the city is the healthcare sector (34,000 workers), followed by administrative and support jobs (24,000 workers), manufacturing (21,000 workers), and food service (20,000 workers). As of 2011, the St. Louis area is home to nine Fortune 500 companies: Express Scripts; Emerson Electric; Monsanto; Reinsurance Group of America; Ameren; Charter Communications; Peabody Energy; Graybar Electric; and Centene. Other notable corporations in the area are Cassidy Turley, Edward Jones Investments, ATT Communications, Scottrade, Wells Fargo Advisors (formerly A.G. Edwards), Energizer Holdings, Furniture Brands International, Post Holdings, Inc., United Van Lines, Mayflower Transit, Ralcorp, Hardee's, and Enterprise Holdings (parent company of several car rental companies). Significant healthcare and biotechnology institutions with operations in St. Louis include Pfizer, the Donald Danforth Plant Science Center, Solae Company, Sigma-Aldrich, and Multidata Systems International. Although it was purchased by Belgium-based InBev, Anheuser-Busch continues its historic presence in the city, as does Mallinckrodt Incorporated in spite of its purchase by Tyco International. The May Department Stores Company (which consists of Famous-Barr and Marshall Field's stores) was purchased by Federated Department Stores, but Federated maintains its regional headquarters in the area. General Motors continues to produce railroad cars in the St. Louis area, although Chrysler closed its production facility in the region, which was located in Fenton, Missouri. Despite its purchase by Nestle, Ralston Purina remains headquartered in St. Louis as a wholly owned subsidiary. St. Louis is also home to Boeing Phantom Works (formerly McDonnell-Douglas). In addition, the Federal Reserve Bank of St. Louis, downtown, is one of two federal reserve banks in Missouri. St. Louis s location at the confluence of the Missouri and Mississippi Rivers makes the region of strategic importance to the movement of goods, especially bulk commodities such as grain, coal, salt, chemicals, and petroleum products, within the United States. The Port of St. Louis is the third-largest inland port by tonnage in the United States, and the 21st-largest of any sort. St. Louis is also a major railroad and trucking hub for the Midwestern United States. 9
Location map 10
Location map 11
Demographics Demographic snapshot Radius 1 Mile 3 Mile 5 Mile Population: 2016 Projection 12,933 88,743 176,377 2011 Estimate 13,278 90,598 179,112 2010 Census 13,423 91,389 180,145 Growth 2011-2016 -2.60% -2.00% -1.50% Growth 2010-2011 -1.10% -0.90% -0.60% 2011 Households: 2016 Projection 5,572 35,897 70,431 2011 Estimate 5,711 36,532 71,234 2010 Census 5,780 36,866 71,651 Growth 2011-2016 -2.40% -1.70% -1.10% Growth 2010-2011 -1.20% -0.90% -0.60% Owner Occupied 3,781 25,797 49,479 Renter Occupied 1,930 10,735 21,756 2011 Avg Household Income $60,255 $62,523 $62,414 2011 Med Household Income $50,882 $52,422 $51,304 2011 Per Capita Income $26,144 $25,378 $25,033 2011 Households by Household Inc: Income Less than $15,000 528 2,880 6,797 Income $15,000 - $24,999 611 3,531 7,337 Income $25,000 - $34,999 695 4,342 8,197 Income $35,000 - $49,999 946 6,207 12,005 Income $50,000 - $74,999 1,317 8,745 15,752 Income $75,000 - $99,999 771 5,478 10,043 Income $100,000 - $149,999 679 4,083 8,131 Income $150,000 - $199,999 126 863 2,045 Income $200,000+ 36 403 928 DOWNTOWN ST LOUIS, MISSOURI LAMBERT-ST. LOUIS INTERNATIONAL AIRPORT 12