OFFERING MEMORANDUM Tire Discounters 4593 WALL TRIANA HIGHWAY MADISON, AL 35758
EXCLUSIVELY LISTED BY Calvin Short FVP & Senior Director Calvin.Short@matthews.com DIR (949) 432-4506 MOB (310) 567-3525 LIC # 01927216 (CA) Kyle Matthews Broker of Record Lic # 110253 DEVELOPED BY 2 Matthews Real Estate Investment Services
C O N T E N T S 4 INVESTMENT OVERVIEW Offering Summary Investment Highlights 6 FINANCIAL ANALYSIS Executive Summary Annualized Operating Data Tenant Summary Lease Abstract 8 TENANT OVERVIEW Competition Map Tire Discounters Overview 10 PROPERTY OVERVIEW Site Description Parcel Map Surrounding Tenants 12 AREA OVERVIEW Madison Overview Tire Discounters, Madison, AL 3
executive summary New 20-year initial lease term with fixed 5% rental increases every 5 years Brand new 2017 state-of-the-art construction and Tire Discounters newest prototype building Corporately guaranteed lease with Tire Discounters, Inc. Absolute NNN Investment tenant pays all expenses directly Average return of 6.30% and over $4,588,000 in fixed lease payments for the duration of the 20-year base term Strong frontage and visibility along Wall Triana Highway and ideally positioned as an outparcel to a new construction Kroger Grocery anchored neighborhood center Excellent population growth of over 12% over the past 7 years and projected growth of over 5% in the next 5 years in the 1, 3 and 5-mile radius Average household income of over $99,000 within a 1-mile radius and over $104,000 within a 3-mile radius Family owned and operated for over 40 years Fastest growing tire chain in the Midwest, with over 1,100 employees 100+ locations throughout Ohio, Kentucky, Tennessee, Indiana, Georgia and Alabama Ranked the 8th largest independent tire dealer in the U.S. by Modern Tire Dealer national rankings 4 Matthews Real Estate Investment Services
Representative Photo Tire Discounters, Madison, AL 5
financial analysis Tire Discounters 4593 Wall Triana Highway Madison, AL 35758 List Price...$3,582,341 CAP Rate - Current...5.85% Gross Leasable Area...± 7,850 SF Lot Size... ± 1.14 Acres Year Built...2017 Annualized Operating Data Monthly Rent Annual Rent Rent/SF Cap Rate Year 1-5 $17,463.92 $209,567.03 $26.70 5.85% Year 6-10 $18,337.12 $220,045.39 $28.03 6.14% Year 11-15 $19,253.97 $231,047.66 $29.43 6.45% Year 16-20 $20,216.67 $242,600.04 $30.90 6.77% Option 1 $21,227.50 $254,730.05 $32.45 7.11% Option 2 $22,288.88 $267,466.55 $34.07 7.47% Option 3 $23,403.32 $280,839.88 $35.78 7.84% Option 4 $24,573.49 $294,881.87 $37.56 8.23% Tenant Summary Tenant Trade Name Tire Discounters 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 January 12, 2017 Rent Commencement Date November 20, 2017 Lease Expiration Date 20 Years from Rent Commencement Term Remaining on Lease 20 Years Increases 5.00% Every Five (5) Years Options Four, 5-Year Options 6 Matthews Real Estate Investment Services
Tire Discounters, Madison, AL 7
Tenant Overview 8 Matthews Real Estate Investment Services
Property Name Property Type Parent Company Trade Name Ownership Tire Discounterss Auto Service Tire Discounterss, Inc. Private No. of Locations ± 100 No. of Employees (All) ± 1,100 Headquartered Website Cincinnati, Ohio www.tirediscounters.com Year Founded 1976 TENANT OVERVIEW Tire Discounterss is an Ohio based corporation that began in 1976 with a single, one bay store. Since its founding, the company has remained under the leadership of the founder Chip Wood. With the continuous introduction of industry-leading innovations, Tire Discounterss has been able to surpass 100 stores with 6 to 10 bays per store providing tires, wheels and auto services. It is now the nation s eighth largest independent tire retailer. The company takes great pride in offering an immense selection of tires, quality work and great customer service. Tire Discounterss helps customers purchase tires at competitive prices on all brand names without compromising on the dependability, durability or safety of their vehicles. GEOGRAPHIC OUTREACH As the fastest growing tire chain in the Midwest, the Tire Discounterss store footprint ranges from Ohio, Kentucky, Indiana, Tennessee and Georgia, with locations in Cincinnati, Columbus, Dayton, Lexington, Louisville, Nashville and Chattanooga. STRATEGY Integrity is a major component that has helped Tire Discounterss achieve its success. Chip Wood brought a much-needed higher standard of integrity to the tire business. His focus is on transparency in pricing in tandem with a higher standard of service. Tire Discounters, Madison, AL 9
College Blvd ± 40,116 the offering Property Name Property Address Tire Discounters 4593 Wall Triana Highway Madison, AL 35758 Site Description Number of Stories One Year Built 2017 Gross Leasable Area (GLA) ± 7,850 SF Lot Size ± 1.14 Acres (49,658 SF) Type of Ownership Fee Simple Topography Generally Level Site MAp Click to watch area overview video! (Sellers Photo-Chelsea Rogers of Sembler Company edited the footage) 10 Matthews Real Estate Investment Services
Surrounding Tenants Tire Discounters, Madison, AL 11
Area Overview Madison, AL Madison, Alabama, located in Madison county, was first occupied by many different native cultures. In 1869, the land was used as battle ground in the American Civil War. Some stayed after the battles and created a rural town up until World War II. The US Military and NASA built operation centers within Huntsville; only 8 miles from Madison. This built up populations in surrounding towns, including Madison. Slowly, but surely, Madison grew from a rural town to a suburban residency. Community Today, the largest employer in Madison is Intergraph, a computer software company. Many commute to Cummings Research Park and Redstone Arsenal in Huntsville. The most common industries within Madison are scientific/ technological services and public administration. Many residents occupations consist of management, architecture, and engineering. Residents are very involved within the community. Their latest project is creating a streetlight maintenance program. Crime is significantly lower in Madison than the US average. Once larger corporations moved into the area, high-tech employment brought up the overall education level in the region. Many residents attend the University of Alabama in Huntsville and Alabama A&M University. property demographics POPULATION 1 Mile 3 Mile 5 Mile 2022 Projection 9,471 50,792 81,517 2017 Estimate 8,859 47,766 75,944 2010 Census 7,899 42,798 65,785 2000 Census 5,723 31,200 43,736 Growth 2017-2021 6.90% 6.33% 7.34% Growth 2010-2017 12.16% 11.61% 15.44% Growth 2000-2010 38.02% 37.17% 50.41% 12 Matthews Real Estate Invest- ment HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2022 Projection 3,539 19,466 33,346 2017 Estimate 3,304 18,346 31,084 2010 Census 2,930 16,509 26,978 Growth 2017-2022 7.10% 6.10% 7.28% INCOME 1 Mile 3 Mile 5 Mile 2017 Est. Average Household Income $98,589 $106,268 $97,769
points of interest Dublin Memorial Park Rainbow Mountain Trails Dublin Memorial Park Mad County Winery To explore Madison s nature views, the Rainbow Mountain Trails have many different hiking trails that allows you to explore different areas in the town. Most of the trails are in the woods surrounding Madison. Throughout the trails are rock formations that allow for great pictures as well as a good workout. Another great outdoor area in the town is Duplin Memorial Park. It is a great open area, that offers everything from swimming, picnics, and ponds to feed ducks. Many of the town s recreational tournaments are played here because of it s large and open fields. Whether you are looking to relax in the sunshine or take your four-legged friend out for a walk, there is something for everyone to enjoy. A hidden gem in Madison is the Mad County Winery, locally owned and stocked with a variety of wines and other spirits. The winery is known for its hometown feel and welcomes everyone that visits as if they are a long-time friend. Take a tour on how they create their wine from the owners themselves. A hometown favorite is their creative version of Fireball. Tire Discounters, Madison, AL 13
HuntsVille Huntsville is located in Madison county, 8 miles from Madison. It is located within the Appalachian region and is the third largest city in Alabama. Huntsville Metropolitan Area is the second largest metropolitan are in Alabama. The town contributed to the Civil and World Wars, but was still considered a small, rural town until the US Military and NASA built centers in the town. Huntsville quickly grew and became a known city in the state. The area has many different historical sites, museums, and parks. Throughout the year, the city holds different types of festivals ranging from art and music to science oriented. Huntsville is very involved in the performing arts. They have different performing art schools as well as theatres that are a hit in the community. Huntsville residents are also passionate about their local sport teams. With University of Alabama in Huntsville in the area, many cheer on the school s different athletic programs. They also have amateur and professional soccer, football, and hockey leagues. top employers Redstone Stone Arsenal NASA ADTRAN U.S. Army Economy The main economic source for Huntsville is in aerospace and military technology with the US Military and NASA originally starting the development of the town. Huntsville is a central hub for Redstone Arsenal, Cummings Research Park, and NASA Marshall Space Flight Center. Cummings Research Park is the second largest research park in the nation and the fourth largest in the world. U of A in Huntsville serves as the center for technology and engineering research. With Huntsville being a driving force in technology, other corporations in the area include ADTRAN, Avocent, and Deltacom. Cinram manufactures such as 20th Century Fox and Blu-Ray Discs also have plants in Huntsville. 14 Matthews Real Estate Investment Services
University of ALabama in Huntsville The University of Alabama in Huntsville is a public research university. They offer 89-degree programs at baccalaureate, master s, and doctoral levels. Accepting 8,500 students a year, UAH is one of 3 members of the University of Alabama System. Although, all three institutes operate independently and each have a president that reports to the Board of Trustees of the system. This branch of University of Alabama started as just individual classes in West Huntsville High School in the 1950s. As Huntsville grew as a technological hub, the school also grew and built a strong technological and engineering platform. The first undergraduate degree that was awarded by the university was in May 1968. Today, the university is known for their engineering and science programs. Students have the opportunity to work with large corporations such as NASA and Cummings Research Park. The largest college is in Engineering, although Nursing is the largest single major. UAH has been ranked as a Tier 1 national university and is recognized as one of the top research universities in the nation. Tire Discounters, Madison, AL 15
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Tire Discounters located at 4593 Wall Triana Highway, Madison, AL 35758 ( Property ). It has been prepared by Matthews Real Estate Investment Services. 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 Real Estate Investment Services. 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 Real Estate Investment Services 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 Real Estate Investment Services 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.
OFFERING MEMORANDUM Tire Discounters 4593 WALL TRIANA HIGHWAY MADISON, AL exclusively listed by Calvin Short FVP & Senior Director Calvin.Short@matthews.com DIR (949) 432-4506 MOB (310) 567-3525 LIC # 01927216 (CA) Kyle Matthews Broker of Record Lic # 110253 DEveloped By Tire Discounters, Madison, AL 17