TD AMERITRADE OFFERING MEMORANDUM ACTUAL PROPERTY Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0331743 1
Financial Overview OFFERING SUMMARY PRICE $12,000,000 CAP RATE 4.64% NOI $556,500* PRICE PER SQUARE FOOT $1,512.29 RENT PER SQUARE FOOT $70.57 YEAR BUILT 2016 APPROXIMATE LOT SIZE 0.21 Acres GROSS LEASEABLE AREA 7,935 TYPE OF OWNERSHIP LEASE GUARANTOR LEASE TYPE ROOF AND STRUCTURE Fee Simple Corporate Guaranty Modified Triple-Net (NNN) Tenant** LEASE SUMMARY LEASE COMMENCEMENT DATE 11/9/2016 LEASE EXPIRATION DATE 11/30/2031 LEASE TERM TERM REMAINING INCREASES OPTIONS TO RENEW 15 Years * Based off 11/9/2017 Rent Increase 14+ Years Annual Increases 2, 5-Year **Tenant fully reimburses for the maintenance, insurance, and repair of the roof & structure through FILE term PHOTO of the lease. In addition, landlord is responsible minimal common area maintenance. Base Rent $562,500* Expenses CAM $4,000 Insurance $2,000 Total Expenses $6,000 NOI $556,500 RENT SCHEDULE BASE RENT Annual Rent Monthly Rent Increases 11/9/2016 11/8/2017 $560,000 $46,667 11/9/2017 11/8/2018 $562,500 $46,875 0.45% 11/9/2018 11/8/2019 $565,000 $47,083 0.44% 11/9/2019 11/8/2020 $567,500 $47,292 0.44% 11/9/2020 11/8/2021 $570,000 $47,500 0.44% 11/9/2021 11/8/2022 $639,375 $53,281 12.17% 11/9/2022 11/8/2023 $641,875 $53,490 0.39% 11/9/2023 11/8/2024 $644,375 $53,698 0.39% 11/9/2024 11/8/2025 $646,875 $53,906 0.39% 11/9/2025 11/8/2026 $649,375 $54,115 0.39% 11/9/2026 11/8/2027 $727,109 $60,592 11.97% 11/9/2027 11/8/2028 $729,609 $60,801 0.34% 11/9/2028 11/8/2029 $732,109 $61,009 0.34% 11/9/2029 11/8/2030 $734,609 $61,217 0.34% 11/9/2030 11/30/2031 $737,109 $61,426 0.34% Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0331743 2
Investment Overview Marcus & Millichap is pleased to present this single-tenant net lease office in Scarsdale, New York; which is less than 30 minutes from New York City. Scarsdale was named the richest town in America by 24/7Wall St in May 2017. TD Ameritrade is operating under a 15-year modified triple-net (NNN) lease with more than 14 years remaining. The landlord has minimal management responsibilities, which are landscaping, snow removal, and Insurance covering the common area. There are 12 percent rent increases every five years, in years six and 11. In all other lease years, rent increases range from 0.34 percent to 0.44 percent annually. The lease is backed by a corporate guaranty from TD Ameritrade, Incorporated, which is a $1.4 billion company in revenue and came in at number 674 on the June 2017 Fortune 1000 list. The subject property is located at the signalized, hard corner intersection of Central Park Avenue and Ardsley Road; which sees more than 50,000 vehicles per day (VPD). This dense infill location has high barriers to entry and benefits from affluent demographics. There are more than 331,000 people with an average household income greater than $166,000 in less than five miles of the asset. The subject property was ranked as very walkable by Redfin, where most errands can be completed on foot. This asset is less than one mile from the Scarsdale Train Station, which provides direct access to New York City. The Metro Harlem Line serves more than 28 million riders annually. The Central Park Avenue corridor features more than one million square feet of retail. Tenants include: Kohl s, Planet Fitness, Shop Rite, Best Buy, Starbucks, CVS, Panera, McDonald s, Bank of America, Chase Bank, CapitalOne, Staples, PetSmart, Toyota, Ford, Nissan, and More. ACTUAL PROPERTY Brand New Construction Single-Tenant Net Lease Office on Central Park Avenue in Scarsdale, New York Less Than 30 Minutes from New York City Scarsdale Named Richest Town in America by 24/7Wall St in May 2017 TD Ameritrade Has More Than 14 Years Remaining Minimal Landlord Responsibilities Significant Rent Increases 12 Percent Every Five Years Over the Base Term Corporate Guaranty TD Ameritrade, Incorporated NASDAQ: AMTD Standard & Poor (S&P): A Number 674 on Fortune 1000 (June 2017) Dense Infill Location With High Barriers to Entry More Than 331,000 People in Five Miles Signalized, Harder Corner Intersection of Central Park Avenue and Ardsley Road More Than 50,000 Vehicles Per Day (VPD) Redfin Walkscore: 73 Very Walkable Most Errands Can Be Accomplished on Foot Central Avenue/Route-100 Corridor More Than One Million Square Feet of Retail ShopRite, Kohl s, Best Buy, Planet Fitness Asset is Less Than One Mile from Scarsdale Train Station Metro North Harlem Line Direct Access to New York City More Than 28 Million Riders Annually Affluent Demographics Average Household Income is Greater Than $166,000 in One Mile Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0331743 3
Tenant Overview - TD Ameritrade TD Ameritrade established in 1971 as a local investment banking firm and began operations as a retail discount securities brokerage firm in 1975. TD is the leading provider of securities brokerage services and related technology-based financial services to retail investors, traders and independent registered investment advisors ( RIAs ). They provide their services predominantly through the Internet, a national branch network and relationships with RIAs. The company employs their platform to offer brokerage services to retail investors and investment advisors under a simple, low-cost commission structure. TD has built, and continues to invest in, a proprietary trade processing platform that is both cost-efficient and highly scalable, significantly lowering their operating costs per trade. The company intends to capitalize on the growth and consolidation of the retail brokerage industry in the United States and leverage their low-cost infrastructure to grow market share and profitability. The long-term growth strategy is to increase market share of total assets in client accounts, while maintaining a leadership position in client trading, by providing superior offerings to long-term investors, RIAs and active traders. TD strives to enhance the client experience by providing asset management products and services, enhanced trading tools and capabilities and a superior, proprietary, single-platform system to support RIAs. TENANT PROFILE TENANT TRADE NAME TD Ameritrade OWNERSHIP Public LEASE GUARANTOR TD Ameritrade, Incorporated NUMBER OF LOCATIONS 100+ HEADQUARTERED Omaha, Nebraska WEB SITE http://www.amtd.com SALES VOLUME $1.37 Billion NET WORTH $5.05 Billion STOCK SYMBOL AMTD BOARD NASDAQ CREDIT RATING A RATING AGENCY Standard & Poor (S&P) RANK Number 674 Fortune 1000 (June 2017) ACTUAL PROPERTY Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0331743 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: Y0331743 5
Area Overview & Demographics 1-Mile 3-Mile 5-Mile Population 2000 Population 14,011 109,323 309,579 2010 Population 13,314 109,798 314,683 2017 Population 14,740 117,805 331,629 2022 Population 13,314 109,798 314,683 1-Mile 3-Mile 5-Mile Households 2000 Households 5,777 40,853 119,140 2010 Households 5,352 41,072 121,376 2017 Households 5,933 43,987 128,004 2022 Households 6,151 45,338 131,571 1-Mile 3-Mile 5-Mile Household (HH) Incomes 2017 Average HH Income $166,228 $153,673 $134,031 2017 Median HH Income $132,029 $123,622 $104,534 2017 Per Capita Income $66,908 $57,380 $51,734 Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0331743 6
Market Overview - Scarsdale, New York A half hour train ride from New York City, the six-square-mile town situated mainly between the Bronx River and Hutchinson River parkways, Scarsdale is a town and village in Westchester County, New York. The Town of Scarsdale is coextensive with the Village of Scarsdale, but the community has opted to operate solely with a village government. As of the 2010 census, Scarsdale s population was 17,166. The town is tucked in between Greenburgh to the northwest, White Plains to the northeast, Mamaroneck to the southeast, and New Rochelle and Eastchester to the south and southwest. Scarsdale was named the richest town in America, based on its average income, by the website 24/7Wall St in May 2017. The new report cites Scarsdale s median income of $242,782 as the highest in the nation, over second place Great Falls, Virginia ($234,091) and Rolling Hills, California ($216,458) in third. Homes in the Fox Meadow and Greenacres neighborhoods are highly south after by commuters who want to be able to walk to the Hartsdale or Scarsdale train station. Scarsdale s business district is charming and quiet, with a mix of stores and local restaurants. A stretch of Central Avenue, west of the Bronx River, breaks the mold of the village s calmness with its chain restaurants and congested parking lots. Scarsdale High School enjoys a national reputation as one of America s finest high schools. The richness of the curriculum, the preparation of the faculty, the achievements of the students, and the track record of college admissions at the nation s leading universities all demonstrate a pattern of excellence. Education in Scarsdale has historically been the focus of the community, and the combination of highly motivated students, supportive parents, a talented faculty, and appropriate financial resources suggest that Scarsdale High School is a model of what quality public education can be. In its very first selection process, the United States Department of Education named Scarsdale High School as one of the 144 exemplary schools to which others may look for patterns of success. According to a study done for U.S. News & World Report, Scarsdale High School is in the nation s top 100 for math and science. If not for its top-notch public schools, the village s greatest attraction may be its abundance of outdoor activities. Interspersed among the mansions and shops are four picturesque golf clubs, two tennis clubs and two nature centers. Weinberg Nature Center is a 10-acre property that includes a Zen Garden, a hiking trail and a Native American Village. Operated by the Scarsdale Parks, Recreation and Conservation Department, the family-friendly nature center offers weekly programs, summer camps and birthday parties. The Trailside Museum has a rotating series of exhibits with changing themes, and houses animals including a hedgehog, a chinchilla, turtles, frogs and a bearded dragon. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0331743 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.
TD AMERITRADE Broker of Record John Krueger Marcus & Millichap REIBC of NY 260 Madison Avenue New York, NY 10016 Tel: 212-430-5100 License: 10311205789