Representative Photo Kangaroo Express (Circle-K/Alimentation Couche-Tard) 1650 S Kentucky Avenue, Evansville, IN 47714 OFFERING MEMORANDUM
CONFIDENTIALITY & DISCLAIMER STATEMENT This Marketing Brochure contains select information pertaining to the business and affairs of Kangaroo Express located at 1650 S Kentucky Avenue, Evansville, Indiana 47714 here to referred to as Property. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc. This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. 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 the Buyer s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the 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 the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals. 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 performance. 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 the Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property. NON-ENDORSEMENT NOTICE Matthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ii
TABLE OF CONTENTS PRICING AND FINANCIAL ANALYSIS Investment Overview................................... 2 Financial Overview..................................... 3 Company Overview.................................... 4 PROPERTY DESCRIPTION Property Overview..................................... 6 Bird s Eye........................................... 7 Tenant Map.......................................... 8 Regional Map........................................ 9 DEMOGRAPHICS Demographics Report.................................. 11 City Overview....................................... 12 PRESENTED BY Rahul Chhajed Associate License No. 01986299 O 310.955.1775 M 818.434.1106 rahul.chhajed@matthews.com Aron Cline VP & Sr. Director License No. 01904371 O 310.919.5816 M 818.632.0233 aron.cline@matthews.com Chris Hake Broker of Record License No. RB14047804 iii
PRICING AND FINANCIAL ANALYSIS
Investment Overview INVESTMENT OVERVIEW Rahul Chhajed & 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 1650 S Kentucky Ave, Evansville, IN 47714. Kangaroo Express has just under 4 years remaining on its lease and has an additional five year option to renew. The Offering includes a corporately guaranteed lease as the lease was assumed by Mac s Convenience Stores LLC, a wholly owned subsidiary of Circle K Stores Inc. The lease contains a scheduled 9% rental increase in the option period and is situated on a hard-corner location. The site has two islands and four pumps and is located right off of Hwy 41 which sees a high volume of traffic daily. INVESTMENT HIGHLIGHTS Two fueling stations with four gas pumps - situated on a hard signalized corner Highway 41 sees ±26,500 vehicles per day, driving heavy traffic to this seasoned site BBB Credit Rating (Standard & Poor s) Kangaroo Express was recently acquired by Circle K/Alimentation Couche-Tard Absolute NNN property gives owner the convenience of having zero landlord responsibilities Potential to take advantage of accelerated depreciation (verify with CPA) Tenant is paying a low rental rate at only $13.41 per square foot Small price point deal Population of ±118,000 within a 5-mile radius 2
Financial Overview EXECUTIVE SUMMARY 1650 S Kentucky Avenue Evansville, Indiana 47714 List Price....................................... $365,000 Gross Leasable Area............................... 1,968 SF CAP Rate - Current..................................7.25 % Year Built.........................................1955 Lot Size............................. ±0.39 Acres (16,954 SF) ANNUALIZED OPERATING DATA Monthly Rent Annual Rent Rent/SF CAP Rate Current - 2/28/2020 $2,200.00 $26,400.00 $13.41 7.25% Option 1-2/28/2025 $2,398.00 $28,776.00 $14.62 7.90% TENANT SUMMARY Tenant Trade Name Type of Ownership Kangaroo Express Fee Simple Lease Guarantor Corporate (Circle K) Lease Type Roof and Structure Original Lease Term NNN Tenant Responsible 5 Years Lease Expiration Date 2/28/2020 Term Remaining on Lease Increases Options 3.75 Years 9% Option Increase One (1), Five (5) Year Option 3
Company Overview Property Name Property Type Parent Company Trade Name Ownership Credit Rating Rating Agency Revenue Kangaroo Express Net Leased Convenience Store Alimentation Couche-Tard Inc. Public BBB- S&P $34.32B 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. 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 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. 4
Representative Photo PROPERTY DESCRIPTION
Property Overview THE OFFERING Property Name............................ Kangaroo Express Property Address...................... 1650 S Kentucky Avenue Evansville, Indiana 47714 Assessor s Parcel Number................ 82-06-33-011-032.023-027 SITE DESCRIPTION Number of Stories.................................... One Year Built.........................................1955 Gross Leasable Area (GLA)........................... 1,968 SF Lot Size............................. ± 0.39 Acres (16,954 SF) Type of Ownership.............................. Fee Simple Parking................................. ±9 Surface Spaces Parking Ratio................................. 4.57: 1,000 SF Landscaping..................................Professional Topography................................ Generally Level CONSTRUCTION Foundation.................................. Concrete Slab Framing.........................................Wood Exterior..........................................Brick Parking Surface................................... Asphalt Roof.......................................... Pitched Representative Photo Representative Photo 6 PROPERTY DESCRIPTION
Bird s Eye 7
Tenant Map 8 PROPERTY DESCRIPTION
Regional Map 9
DEMOGRAPHICS
Demographics Report Population 1-Mile 3-Mile 5-Mile 2021 Projection 12,430 60,672 119,045 2016 Estimate 12,491 60,759 118,009 2010 Census 12,751 61,623 117,779 2000 Census 14,400 66,488 119,793 Households 2021 Projection 3,116 14,219 28,950 2016 Estimate 3,097 14,125 28,525 2010 Census 3,104 14,123 28,141 2000 Census 3,649 15,989 30,110 Income $0 - $15,000 22.67% 21.64% 19.25% $15,000 - $24,999 18.96% 15.75% 14.65% $25,000 - $34,999 19.03% 17.14% 15.86% $35,000 - $49,999 14.44% 16.63% 16.44% $50,000 - $74,999 14.05% 15.19% 16.09% $75,000 - $99,999 7.37% 7.02% 8.35% $100,000 - $124,999 1.99% 3.30% 4.52% $125,000 - $149,999 0.92% 1.70% 2.24% $150,000 - $199,999 0.25% 0.85% 1.51% $200,000 - $249,999 0.14% 0.32% 0.45% $250,000 - $499,999 0.14% 0.37% 0.50% $500,000+ 0.04% 0.10% 0.13% 2016 Est. Average Household Income $37,192 $42,486 $47,615 2016 Est. Median Household Income $29,397 $32,355 $35,220 11 DEMOGRAPHICS
Evansville, IN EVANSVILLE Evansville is the county seat of Vanderburgh, County, Indiana. As the state s third-largest city and the largest city in Southern Indiana, it is the commercial, medical, and cultural hub of Southwestern Indiana and the Illinois-Indiana- Kentucky tri-state area. Situated on an oxbow in the Ohio River, the city is often referred to as the Crescent Valley or River City. ECONOMY The broad economic base of the region has helped to build an economy which is known for its stability, diversity, and vitality. The largest industry sectors by size in Evansville are health care, finance, education, and manufacturing. Corporate headquarters located in Evansville include Accuride, Atlas Van Lines, Springlead Financial, and Vectren. Evansville has emerged as the tri-state s major center for the health care and medical sciences industries. Deaconess Hospital and St. Mary s Hospital and Medical Center, along with the Deaconess Gateway and Women s Hospital, provide the anchors for a vast health care system that are also among the region s largest employers. Educational institutions such as Evansville Vanderburgh School Corporation, Ivy Tech Community College of Indiana, University of Evansville and the University of Southern Indiana also contribute thousands of jobs to the tri-state annually. ENTERTAINMENT In Evansville there are plenty of family attractions, exciting nightlife, and the education and culture of seven themed museums. Historic Bosse Field, a 7,180 seat baseball stadium located in Garvin Park, was built in 1915 and is the third-oldest ballpark still in regular use in the United States. This 100-year-old structure for America s favorite pastime is a must see. The Evansville Museum of Arts, History & Science is one of Southwestern Indiana s most established cultural institutions. This general museum maintains a permanent collection of more than 30,000 objects, including fine and decorative arts and historic, anthropological, and natural history artifacts. Over twenty temporary exhibitions are displayed every year in four changing galleries. Evansville has a long and rich history supporting athletic teams and events the University of Evansville and University of Southern Indiana regularly draw thousands of spectators to NCAA sporting events. The UE Purple Aces basketball team plays at the Ford Center. The Ford Center is a multiuse indoor arena downtown it is the city s premier entertainment venue and is mainly used for basketball, ice hockey, and music concerts. 12
Kangaroo Express (Circle-K/Alimentation Couche-Tard) 1650 S Kentucky Avenue Evansville, IN 47714 OFFERING MEMORANDUM Rahul Chhajed Associate License No. 01986299 O 310.955.1775 M 818.434.1106 rahul.chhajed@matthews.com Aron Cline VP & Sr. Director License No. 01904371 O 310.919.5816 M 818.632.0233 aron.cline@matthews.com Chris Hake Broker of Record License No. RB14047804 841 Apollo Street, Suite 150 El Segundo, CA 90245 www.matthews.com