KANGAROO EXPRESS (CIRCLE-K/ALIMENTATION COUCHE-TARD) 1001 LAFAYETTE RD, CHICKAMAUGA, GA 30707 OFFERING MEMORANDUM R E T A I L A D V I S O R S
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Kangaroo Express located at 1001 Lafayette Rd, Chickamauga, GA 30707 ( Property ). It has been prepared by Matthews Retail Advisors. 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 Retail Advisors. 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 Retail Advisors 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 Retail Advisors 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. Matthews Retail Advisors
Table of Contents PRICING & FINANCIAL ANALYSIS Investment Overview/Highlights... 2 Executive Summary...3 Company Overview...4 Lease Abstract... 5 PROPERTY DESCRIPTION Physical Description... 8 Bird s Eye... 9 Regional Map...10 Tenant Map...11 DEMOGRAPHICS City Overview Chickamauga, GA...13 Demographics Report...14 EXCLUSIVELY LISTED BY: Matt Coates Associate DIRECT +1.310.919.5805 MOBILE +1.714.366.1236 matt.coates@matthews.com License No. 01980718 Aron Cline Partner DIRECT +1.310.919.5816 MOBILE +1.818.632.0233 aron.cline@matthews.com License No. 01904371 Kyle Matthews Broker of Record License No. 363764
Matthews Retail Advisors
PRICING & FINANCIAL ANALYSIS
Investment Overview Matt Coates and Aron Cline of Matthews Retail Advisors are pleased to exclusively offer for sale to qualified investors a net-leased Kangaroo Express Gas Station located at 1001 N Hwy 27, Chickamauga, GA 30707. Kangaroo Express has over seven-and-a-half years remaining on its initial, twentyyear lease term with six additional, five-year options to renew. The Offering includes a corporately guaranteed lease from Alimentation Couche-Tard, which is one of the largest company-owned convenience store operators in the world. The lease also contains scheduled rent increases in 2018 and in each of its six option periods. Investments Highlights Corporately Guaranteed lease with one of the largest convenience store operators in the world Kangaroo Express was recently acquired by Circle K/Aliementation Couche-Tard Potential upside to be rebranded as a Circle K in the near future BBB Credit Rating (Standard & Poor s) Approximately seven-and-a-half years remaining on a 20-year lease Gas station located on a signalized corner off Hwy 27 and Lee-Gordon Mill Rd Potential to take advantage of Accelerated Depreciation Minimal Landlord Responsibilities Ideal 1031 Exchange Property Single tenant investment with potential upside Ideal for out of state investor looking for passive income P. 2 Matthews Retail Advisors OFFERING MEMORANDUM Kangaroo Express
Executive Summary KANGAROO EXPRESS 1001 LAFAYETTE RD CHICKAMAUGA, GA 30707 List Price... $2,340,000 CAP Rate - Current... 7.75% Gross Leasable Area... ±3,680 SF Lot Size... ±2.00 Acres (87,120 SF) Year Built... 2003 Gas Pumps... Fourteen (14) Annualized Operating Data Monthly Rent Annual Rent Increases CAP Rate Current $15,101.25 $181,215 7.75% 11/1/18-10/31/23 $16,082.83 $192,994 *6.5% 8.25% Option 1-10/31/28 $17,128.22 $205,539 6.5% 8.79% Option 2-10/31/32 $18,241.55 $218,899 6.5% 9.36% Option 3-10/31/37 $19,427.25 $233,127 6.5% 9.97% Option 4-10/31/42 $20,690.02 $248,280 6.5% 10.62% Option 5-10/31/47 $22,034.87 $264,418 6.5% 11.31% Option 6-10/31/52 $23,467.14 $281,606 6.5% 12.04% Tenant Summary Tenant Trade Name Alimentation Couche-Tard Type of Ownership Fee Simple Lease Guarantor Corporate Roof and Structure **Tenant Responsible Original Lease Term 20 Years Lease Commencement Date 10/16/2003 Rent Commencement Date 10/16/2003 Lease Expiration Date 10/31/2023 Term Remaining on Lease ±7.7 Years *Increases 6.5% Every Five Years, Including Options Options Six, Five Year Options *Rent Increase on 11/1/18 is the lesser of 6.50% or 1.5 times the CPI Increase **See pg. 5: Lease Abstract - Capital Expenditures Kangaroo Express OFFERING MEMORANDUM Matthews Retail Advisors P. 3
Company Overview Property Name Kangaroo Express Property Type Net Leased Convenience Store Parent Company Trade Name Alimentation Couche-Tard Inc. Ownership Public Credit Rating BBB Rating Agency Standard & Poor s Revenue ±$34.32B Net Income ±$967.40M Stock Symbol ATD-A, ATD-B Board Toronto Stock Exchange No. of Locations ±14,700 Headquartered Laval, Canada Web Site http://www.couche-tard.com Year Founded 1980 Alimentation Couche-Tard Inc. operates and licenses convenience stores. The company s convenience stores sell tobacco products, grocery items, beverages, coffee, snacks, beer, wine, and fresh food offerings, as well as other retail products and services, road transportation fuel, stationary energy, marine fuel, lubricants, and chemicals. It operates its convenience store and road transportation fuel retailing chain under various banners, including Circle K, Statoil, Kangaroo Express, Couche-Tard, and Macs. The company is also involved in the sale of lottery tickets, calling cards, gift cards, postage stamps, and bus tickets; and issuance of money orders and cashing cheques, as well as automatic teller machines and car wash services. As of April 26, 2015, it operated and licensed 10,078 convenience stores located in North America, Scandinavia, Poland, the Baltics, and Russia, as well as 4,700 stores, which are operated by independent operators under the Circle K banner in China, Guam, Honduras, Hong Kong, Indonesia, Japan, Macau, Malaysia, Mexico, the Philippines, the United Arab Emirates, and Vietnam. The company was formerly known as Actidev Inc. and changed its name to Alimentation Couche-Tard Inc. in December 1994. Alimentation Couche-Tard Inc. was founded in 1980 and is headquartered in Laval, Canada. P. 4 Matthews Retail Advisors OFFERING MEMORANDUM Kangaroo Express
Lease Abstract Tenant: Tenant Address: Alimentation Couche-Tard 4204 Industriel Blvd, Laval (Quebec) H7L 0E3 Property Address: 1001 Lafayette Rd, Chickamauga, GA 30707 Date of Lease: October 13th, 2003 Lease Commencement: Initial Lease Term: October 16th, 2003 Twenty (20) Years Lease Expiration: October 31st, 2023 Annual Rent: Rent Increases: Renewal Options: Annual Rent: Taxes: Insurance (Tenant): Utilities: $181,215 (Current) 6.5% Every Five (5) Years, Including Options; however, the increase in 2018 shall be increased by the lesser of 6.5% or one-and-one-half (1.5) times the increase in the Consumer Price Index (CPI) Six (6), Five (5) Year Current $181,215 11/1/18-10/31/23 $192,994 Option 1-10/31/28 $205,539 Option 2-10/31/32 $218,899 Option 3-10/31/37 $233,127 Option 4-10/31/42 $248,280 Option 5-10/31/47 $264,418 Option 6-10/31/52 $281,606 Tenant responsible Tenant responsible Tenant Responsible Repairs & Maintenance: Assignment & Subletting Estoppel ROFR Capital Expenditures in Last Two (2) Years Tenant Responsible Tenant may sublet the Premises or assign Lease with prior written consent of Landlord, such consent not to be unreasonably withheld, conditioned, or delayed. Consent to an assignment and acceptance of rent from an assignee shall not release Tenant from Liability for the continued performance of the terms and conditions on the part of Tenant to be kept and performed, unless Landlord specifically releases Tenant from said liability. Thirty (30) days after receipt of Landlord s request None Notwithstanding the foregoing, in the event Tenant makes a capital expenditure pursuant to its repair and maintenance obligations within the last two (2) years of the Term or any renewal thereof (providing no uncured Event of Default exists under the Lease), Tenant shall receive a credit upon the expiration of the Lease, which credit shall be calculated by: (i) dividing the remaining useful life of the capital improvement upon Lease expiration by the total useful life of the capital improvement and then (ii) multiplying the result obtained in (i) above by the reasonable cost of the capital expenditure. Capital expenditure as used herin shall mean those expenditures incurred in connection with the roof, parking lot or HVAC equipment located on the Premises, the reasonable and actual cost of which exceeds Ten Thousand Dollars ($10,000). Any credit due Tenant pursuant to the terms herof shall be paid by Landlord to Tenant within thirty (30) days of the expiration of the Lease. In no event shall the provisions of this section be applicable if the capital expenditure was necessitated as a result of Tenant s failure to maintain the item or items at issue in good order and repair throughout the Lease term as required pursuant to the terms of the Lease. Kangaroo Express OFFERING MEMORANDUM Matthews Retail Advisors P. 5
PROPERTY DESCRIPTION Kangaroo Express OFFERING MEMORANDUM Matthews Retail Advisors P. 6
P. 7 Matthews Retail Advisors OFFERING MEMORANDUM Kangaroo Express
Physical Description THE OFFERING Property Name... Kangaroo Express Property Address...1001 Lafayette Rd Chickamauga, GA 30707 Assessor s Parcel Number...3026-025 Zoning...C SITE DESCRIPTION Number of Stories...One Year Built...2003 Gross Leasable Area (GLA)... ±3,680 SF Lot Size... ±2.00 Acres (87,120 SF) Type of Ownership...Fee Simple Landscaping...Professional Topography... Generally Level CONSTRUCTION Foundation...Concrete Slab Framing...Wood Exterior...Concrete Block Parking Surface...Concrete Slab Roof...Flat Representative Photo Kangaroo Express OFFERING MEMORANDUM Matthews Retail Advisors P. 8
Bird s Eye P. 9 Matthews Retail Advisors OFFERING MEMORANDUM Kangaroo Express
Regional Map Kangaroo Express OFFERING MEMORANDUM Matthews Retail Advisors P. 10
Tenant Map P. 11 Matthews Retail Advisors OFFERING MEMORANDUM Kangaroo Express
DEMOGRAPHICS
City Overview Chickamauga, GA Chickamauga is a city in Walker County, Georgia, United States. The population was 2,245 at the 2000 census and 3,101 at the 2010 census. It is part of the Chattanooga, TN GA Metropolitan Statistical Area. Nestled in the Northwest corner of Georgia at the foot of Lookout Mountain and just 18 miles south of Chattanooga, Tennessee, you will find the historic town of Chickamauga. Chickamauga and its residents have taken pride in preserving its historical beauty and keeping the small Southern town appeal. Whether you are looking for something old or something new, this small town has something for you. The downtown district is full of unique shops, from antiques, crafts, custom cabinets, gifts, historical artifacts and replicas, jewelry, old time photography and other specialty shops. Stop in for lunch or dinner with Chickamauga's wide variety of restaurants, you are sure to find some of your favorites from down home cooking, cheese steak subs, pizza, mexican to freshly prepared salads and sandwiches. You can also grab a bag of freshly popped kettle corn and a soda to enjoy while walking around. For all of those who have a sweet tooth you can even stop in for some amazing homemade fudge and pastries topped off with some freshly brewed coffee, hot chocolate or tea. Visitors of all ages are sure to enjoy visiting our museums and historic sites to experience the rich, diverse history contained within our town. Chickamauga has a number of annual events that bring the citizens together in celebration. Generally, the most anticipated event is Down Home Days. This celebration is held the first weekend in May and features Concerts, Food, Dance, Parades, and Arts and Crafts Vendors. War Between the States Day is held the third weekend in September and features living history demonstrations, parades and Arts and Crafts. Activities during the day include reenactors demonstrating soldier camp life, food from the period and artillery firing. Also, demonstrations of refugee camp life will represent life for area farm families affected by the battle. A final celebration in the year is scheduled during the month of December. Christmas in the Streets is a festival celebrating the holiday season including many Holiday activities such as Parades, Christmas Shopping, Tree Lighting, Choirs, Hand Bells, Live Bands, and Pictures with Santa Claus. *source http://cityofchickamauga.org/ P. 13 Matthews Retail Advisors OFFERING MEMORANDUM Kangaroo Express
Demographics Report Population 3-Mile 5-Mile 10-Mile 2021 Projection 9,764 26,068 151,891 2016 Estimate 9,546 25,551 148,355 2010 Census 9,417 25,398 146,064 2000 Census 7,508 21,238 130,296 Growth 2016-2021 2.28% 2.02% 2.38% Growth 2010-2016 1.37% 0.60% 1.57% Growth 2000-2010 25.42% 19.58% 12.10% Households 2021 Projection 3,654 9,632 59,941 2016 Estimate 3,596 9,473 58,467 2010 Census 3,594 9,483 57,416 2000 Census 2,900 7,994 51,781 Growth 2016-2021 1.61% 1.68% 2.52% Growth 2010-2016 0.06% -0.11% 1.83% Growth 2000-2010 23.93% 18.63% 10.88% Income $0 - $15,000 13.04% 13.10% 16.06% $15,000 - $24,999 11.26% 10.58% 12.28% $25,000 - $34,999 12.27% 11.95% 11.88% $35,000 - $49,999 16.35% 16.26% 14.52% $50,000 - $74,999 20.24% 19.58% 20.83% $75,000 - $99,999 11.49% 12.39% 10.67% $100,000 - $124,999 8.28% 9.00% 6.64% $125,000 - $149,999 3.61% 3.89% 3.29% $150,000 - $199,999 1.98% 1.97% 2.10% $200,000 - $249,999 0.62% 0.61% 0.67% $250,000 - $499,999 0.69% 0.56% 0.72% $500,000+ 0.17% 0.11% 0.35% 2016 Est. Average Household Income $58,991 $59,431 $56,958 2016 Est. Median Household Income $47,320 $48,258 $45,098 Kangaroo Express OFFERING MEMORANDUM Matthews Retail Advisors P. 14
KANGAROO EXPRESS (CIRCLE-K/ALIMENTATION COUCHE-TARD) 1001 Lafayette Rd Chickamauga, GA 30707 OFFERING MEMORANDUM Matt Coates Associate DIRECT +1.310.919.5805 MOBILE +1.714.366.1236 matt.coates@matthews.com License No. 01980718 Aron Cline Partner DIRECT +1.310.919.5816 MOBILE +1.818.632.0233 aron.cline@matthews.com License No. 01904371 Kyle Matthews Broker of Record License No. 363764 Matthews Retail Advisors 841 Apollo Street, Suite 150 El Segundo, CA 90245 www.matthews.com