REPRESENTATIVE PHOTO EXCLUSIVE OFFERING $905,000 5.75% CAP Corporate ground lease absolute nnn 512.473.8322 MARK WHEELER mark@trivanta.com BOB MOORHEAD bob@trivanta.com JOE CAPUTO joe@trivanta.com property. 1,628+ SF building on 1.02+ acre site. tenant. Oil Change is the leading fast lube chain on the Gulf Coast with 35 Stores. lease structure. 10 year, Corporate Ground Lease, Absolute NNN, with 10% rent increases every 5-years in the initial term and options. location. Oil Change is strategically located along South Blvd (22,000 cars / day). Immediately west of South Blvd is Interstate 77 (153,000 cars / day). Interstate 77 is an important north-south corridor through the middle Appalachians, This intersection is crucial to the commercial and residential traffic alike. The site is positioned to capture the heavy traffic from Interstate 77, while also benefiting from the many mixed-use retail and industrial businesses neighboring it. Nationally recognized credit tenants in the immediate trade area include Office Depot, Costco, Ross, Pet Smart, Family Dollar, Wells Fargo, Advance Auto, Dunkin Donuts, Aldi, and Chili s. Charlotte is the largest city in the U.S. state of North Carolina and the seat of Mecklenburg County.
Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4-5: PAGE 6: PAGE 7: PAGE 8-9: PAGE 10: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT LEASE OVERVIEW AERIAL PHOTOS SITE PLAN LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS REPRESENTATIVE PHOTO Disclaimer Trivanta ( Agent ) has been engaged as an agent for the sale of the property located at 5221 South Blvd, Charlotte, NC 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 NORTH CAROLINA broker of record: Bell Commercial Inc. North Carolina Real Estate License #225670 2
Investment overview PRICE: $905,000 Lease overview Initial Lease Term: 10-Years, Plus 4, 5-Year Options to Renew CAP RATE: 5.75% NET OPERATING INCOME: $52,000 BUILDING AREA: 1,628+ Square Feet LAND AREA: 1.02+ Acres YEAR BUILT: 2015 OWNERSHIP: Fee Simple Interest OCCUPANCY: 100% Rent Commencement: June 2015 Lease Expiration: June 2025 Lease Type: Corporate Ground Lease Absolute NNN Rent Increases: 10% Every 5 Years in Primary Term & Options Year 1-5 Annual Rent (Current): $52,000 Year 6-10 Annual Rent: $57,200 Year 11-15 Annual Rent (Option 1): $62,920 Year 16-20 Annual Rent (Option 2): $69,212 Year 21-25 Annual Rent (Option 3): $76,133 Year 26-30 Annual Rent (Option 4): $83,746 Tenant overview Oil Change, LLC TAKE 5 OIL CHANGE www.take5oilchange.com Headquartered in Metairie, Louisiana and founded in 1984, Oil Change is a leading fast lube chain in the Southeastern United States, focused exclusively on oil changes and ancillary services, including windshield wiper and air filter replacements. Since 2004, the Company has more than doubled its footprint, expanding from 13 to 34 stores and becoming an industry leader in Louisiana and the Southeast through living its mission to Change your oil, not your schedule. s success stems from its niche focus of providing superior speed and best-in-class service to consumers in a lower pressure sales environment. Customers stay in their car, are provided with a complimentary beverage and are offered a simple list of service options. Take SUBJECT 5 canproperty complete an oil change in approximately five to seven minutes of in-bay time, less than one-third the industry average. The Company s relentlessprior focus TO on PANDA delivering EXPRESS high customer EXPANSION satisfaction has resulted in daily car counts that are 45% above the industry average, repeat customer rates in excess of 80%, and 99% customer satisfaction rating. The leading fast lube chain in the Gulf Coast with 34 stores located in Louisiana, Mississippi, Alabama, South Carolina and North Carolina. Expansion focus on all southeastern states. s are corporate owned and guaranteed locations. Niche focus on oil changes (90% of sales). Revenue per location 30% higher than industry average. 20,000+ cars annually per location. Number one of all automotive service providers. EBITDA margins significantly exceeds industry average performance. Targeting 20+ store openings per year. New market expansion in Georgia, Florida, Texas, and Virginia. 3
AERIAL PHOTO Old Pineville Rd. ( 8,000 Cars / Day) South Blvd. (22,000 Cars / Day) Park Rd. (31,000 Cars / Day) Myers Park H.S. Selwyn Elementary Alexander G. Middle School Park Road Park 4
AERIAL PHOTO South Blvd. (22,000 Cars / Day) Tyvola Rd. (47,000 Cars / Day) 5
SITE PLAN 6
Location overview IMMEDIATE TRADE AREA Oil Change is strategically located along South Blvd (22,000 cars / day), immediately west of South Blvd is Interstate 77 (153,000 cars / day). Interstate 77 is an important north-south corridor through the middle Appalachians, This intersection is crucial to the commercial and residential traffic alike. The site is positioned to capture the heavy traffic from Interstate 77, while also benefiting from the many mixed-use retail and industrial businesses neighboring it. The property sits adjacent to the LYNX Blue Line which is a light rail line serving Charlotte, North Carolina. The 9.6-mile line runs from its northern terminus in Uptown, traversing South End and paralleling South Boulevard to its southern terminus just north of Interstate 485 at the Pineville city limits. Nationally recognized credit tenants in the immediate trade area include Office Depot, Costco, Ross, Pet Smart, Family Dollar, Wells Fargo, Advance Auto, Dunkin Donuts, Aldi, and Chili s. One mile north of the subject property, along South Boulevard, is a burgeoning hot-spot in Charlotte. There are over 5,000 new apartment units in various stages of construction and development. CHARLOTTE, NORTH CAROLINA Charlotte is the largest city in the U.S. state of North Carolina and the seat of Mecklenburg County. In 2010, Charlotte's population according to the US Census Bureau was 731,424, making it the 17th largest city in the United States based on population. The Charlotte metropolitan area had a 2009 population of 1,745,524. The Charlotte metropolitan area is part of a wider thirteen-county labor market region or combined statistical area with a 2009 estimated population of 2,389,763. CHARLOTTE, NORTH CAROLINA (CONTINUED) Charlotte has become a major U.S. financial center and is now the second largest banking center in the United States (after New York). The nation's largest financial institution by assets, Bank of America, calls the city home. The city was also the former corporate home of Wachovia until its 2008 acquisition by Wells Fargo; Wells Fargo is in the process of integrating legacy Wachovia, with the two banks expected to be fully merged by the end of 2011. At that time, Charlotte will become the regional headquarters for East Coast Operations of Wells Fargo, headquartered in San Francisco, California. Charlotte will also serve as the headquarters for Wells Fargo's capital markets activities including sales and trading, equity research, and investment banking. Bank of America's headquarters, along with other regional banking and financial services companies, are located primarily in the Uptown Central Business District. Charlotte is home of the Carolina Panthers of the National Football League and the Charlotte Bobcats of the National Basketball Association. Charlotte is also a major center in the US motorsports industry, housing multiple offices of NASCAR as well as the NASCAR Hall of Fame. Approximately 75% of the NASCAR industry employees and drivers are based nearby. The large presence of the racing technology industry along with the newly built NHRA dragstrip, zmax Dragway at Concord, is influencing other top professional drag racers to move their shops to Charlotte as well. The Metrolina Speedway is expected to bring more local racing along with a skate park, shops, restaurants and an upscale hotel. The Charlotte Region has a major base of energy-oriented organizations and has become known as Charlotte USA The New Energy Capital. In the region there are 240+ companies directly tied to energy sector collectively employing more than 26,400. Since 2007, more than 4,000 energy sector jobs have been announced. The University of North Carolina at Charlotte has a reputation in energy education and research and its Energy Production and Infrastructure Center trains energy engineers and conducts research. The Charlotte Center city has seen remarkable growth over the last decade. Numerous residential units continue to be built uptown, including over 20 skyscrapers under construction, recently completed, or in the planning stage. Many new restaurants, bars and clubs now operate in the Uptown area. Several projects are transforming the Midtown Charlotte/Elizabeth area. NASCAR PLAZA, CHARLOTTE, NORTH CAROLINA 7
Location map 8
Location map 9
Demographics 5221 South Blvd Charlotte, NC 28217 POPULATION HOUSEHOLDS AGE MARITAL STATUS & GENDER INCOME 1 mi radius 3 mi radius 5 mi radius 2015 Estimated Population 8,413 84,867 201,291 2020 Projected Population 9,220 93,388 221,359 2010 Census Population 7,591 76,686 179,553 2000 Census Population 7,979 69,780 161,398 Projected Annual Growth 2015 to 2020 1.9% 2.0% 2.0% Historical Annual Growth 2000 to 2015 0.4% 1.4% 1.6% 2015 Estimated Households 3,990 37,484 90,253 2020 Projected Households 4,327 40,903 98,311 2010 Census Households 3,578 32,915 78,184 2000 Census Households 3,650 30,631 69,574 Projected Annual Growth 2015 to 2020 1.7% 1.8% 1.8% Historical Annual Growth 2000 to 2015 0.6% 1.5% 2.0% 2015 Est. Population Under 10 Years 11.4% 13.1% 12.6% 2015 Est. Population 10 to 19 Years 9.2% 10.5% 11.0% 2015 Est. Population 20 to 29 Years 18.3% 17.3% 17.1% 2015 Est. Population 30 to 44 Years 25.4% 24.6% 23.5% 2015 Est. Population 45 to 59 Years 18.4% 17.5% 18.4% 2015 Est. Population 60 to 74 Years 11.1% 10.9% 11.7% 2015 Est. Population 75 Years or Over 6.1% 6.2% 5.7% 2015 Est. Median Age 34.7 34.9 35.5 2015 Est. Male Population 51.1% 48.7% 48.5% 2015 Est. Female Population 48.9% 51.3% 51.5% 2015 Est. Never Married 42.8% 39.4% 39.0% 2015 Est. Now Married 32.4% 36.7% 37.8% 2015 Est. Separated or Divorced 21.5% 17.9% 17.5% 2015 Est. Widowed 3.3% 6.0% 5.8% 2015 Est. HH Income $200,000 or More 1.5% 7.1% 10.0% 2015 Est. HH Income $150,000 to $199,999 3.0% 5.1% 5.5% 2015 Est. HH Income $100,000 to $149,999 14.3% 11.1% 11.4% 2015 Est. HH Income $75,000 to $99,999 9.4% 10.6% 10.2% 2015 Est. HH Income $50,000 to $74,999 18.8% 17.0% 16.9% 2015 Est. HH Income $35,000 to $49,999 14.6% 14.3% 13.5% 2015 Est. HH Income $25,000 to $34,999 13.5% 11.6% 10.2% 2015 Est. HH Income $15,000 to $24,999 14.3% 9.5% 9.7% 2015 Est. HH Income Under $15,000 10.5% 13.6% 12.5% 2015 Est. Average Household Income $59,892 $84,013 $99,559 2015 Est. Median Household Income $54,457 $61,121 $66,274 2015 Est. Per Capita Income $28,413 $37,189 $44,865 2015 Est. Total Businesses 639 6,777 18,810 2015 Est. Total Employees 6,418 98,940 292,247 5221 South Blvd Charlotte, NC 28217 LABOR FORCE OCCUPATION TRANSPORTATION TO WORK TRAVEL TIME CONSUMER EXPENDITURE 1 mi radius 3 mi radius 5 mi radius 2015 Est. Labor Population Age 16 Years or Over 7,009 68,728 163,425 2015 Est. Civilian Employed 71.4% 67.2% 66.6% 2015 Est. Civilian Unemployed 4.8% 4.7% 4.3% 2015 Est. in Armed Forces - 0.1% 0.1% 2015 Est. not in Labor Force 23.7% 28.0% 29.0% 2015 Labor Force Males 51.2% 48.3% 48.0% 2015 Labor Force Females 48.8% 51.7% 52.0% 2010 Occupation: Population Age 16 Years or Over 4,188 38,213 89,004 2010 Mgmt, Business, & Financial Operations 15.2% 17.6% 19.3% 2010 Professional, Related 21.7% 21.2% 22.8% 2010 Service 18.2% 16.3% 15.3% 2010 Sales, Office 27.0% 24.1% 25.4% 2010 Farming, Fishing, Forestry 0.1% 0.3% 0.3% 2010 Construction, Extraction, Maintenance 7.1% 8.9% 6.6% 2010 Production, Transport, Material Moving 10.6% 11.6% 10.3% 2010 White Collar Workers 63.9% 62.8% 67.5% 2010 Blue Collar Workers 36.1% 37.2% 32.5% 2010 Drive to Work Alone 73.0% 74.9% 75.9% 2010 Drive to Work in Carpool 15.2% 13.3% 10.4% 2010 Travel to Work by Public Transportation 6.3% 5.0% 4.3% 2010 Drive to Work on Motorcycle 0.3% 0.1% 0.1% 2010 Walk or Bicycle to Work 1.9% 2.0% 3.7% 2010 Other Means 0.3% 0.3% 0.5% 2010 Work at Home 3.1% 4.4% 5.1% 2010 Travel to Work in 14 Minutes or Less 35.3% 30.6% 32.5% 2010 Travel to Work in 15 to 29 Minutes 43.3% 45.5% 46.1% 2010 Travel to Work in 30 to 59 Minutes 18.5% 19.3% 17.7% 2010 Travel to Work in 60 Minutes or More 3.0% 4.6% 3.6% 2010 Average Travel Time to Work 17.3 18.6 18.3 2015 Est. Total Household Expenditure $196 M $2.30 B $6.25 B 2015 Est. Apparel $6.76 M $80.4 M $219 M 2015 Est. Contributions, Gifts $12.4 M $164 M $464 M 2015 Est. Education, Reading $7.17 M $94.2 M $265 M 2015 Est. Entertainment $10.9 M $129 M $351 M 2015 Est. Food, Beverages, Tobacco $30.5 M $348 M $935 M 2015 Est. Furnishings, Equipment $6.55 M $79.0 M $217 M 2015 Est. Health Care, Insurance $17.6 M $200 M $537 M 2015 Est. Household Operations, Shelter, Utilities $61.0 M $714 M $1.94 B 2015 Est. Miscellaneous Expenses $2.96 M $33.7 M $90.8 M 2015 Est. Personal Care $2.56 M $29.8 M $80.7 M 2015 Est. Transportation $37.6 M $427 M $1.15 B 10