CBRE Net Lease OFFERING MEMORANDUM TRACTOR SUPPLY 5940 NEW JESUP HIGHWAY BRUNSWICK, GEORGIA 31523
INVESTMENT OVERVIEW The CBRE Net Lease Property Group is pleased to exclusively offer a 19,097-square-foot freestanding Tractor Supply situated on 2.98 acres in Brunswick, Georgia. Built in 2008, Tractor Supply has 8.5 years of initial term remaining with four 5-year options to extend. The property is ideally positioned with excellent frontage on both Old Jesup Highway and New Jesup Highway/Golden Isles Parkway (Traffic Count: 18,512 VPD), just 1.5 miles north of Interstate 95 which provides direct access to both Savannah, GA (70 miles) and Jacksonville, FL (65 miles). New Jesup Highway/Golden Isles Parkway serves as the area s preeminent north-south thoroughfare which is also widely used to get to the beach and many Golden Isles resorts. The location was also strategically selected because of its position within a significant retail and residential corridor with immediate proximity to Caterpillar, John Deere, Dollar General and Flower Foods. Brunswick is a vibrant coastal city located directly on the Atlantic Intracoastal Waterway and supports a progressive economy largely based on tourism and logistics with a metropolitan GDP of $3.9 billion. The Brunswick MSA, which also consists of St. Simons Island, Sea Island, Jekyll Island, Brantley County and McIntosh County, is the twelfth largest MSA in Georgia with a population of 113,807. Within 5 miles of the property, there is approximately 3.2 MSF of retail, 1,830 multifamily units and a population of 37,995. Other major tenants with a presence in the immediate vicinity include: FedEx, Fred s Super Dollar, CVS, Waffle House, Advance Auto Parts, Family Dollar, Winn Dixie, Comfort Inn, Super 8 Motel, KFC, Krystal, Exxon and Motel 6 among others. The property is also proximate to some of the area s main points of interest such as 500,000-square-foot Glynn Place Mall anchored by J.C. Penney, Belk and Sears (3.5 miles), the Federal Law Enforcement Training Center (5 miles), Downtown Brunswick (6 miles), Golden Isles Airport (6 miles) and the area s renowned beaches (11 miles). INVESTMENT SUMMARY PRICE: $4,315,000 DUE TO A CONFIDENTIALITY AGREEMENT WITH TRACTOR SUPPLY, WE ARE UNABLE TO GIVE THE RENT, CAP RATE OR LEASE INFORMATION. PLEASE CALL CHRIS BOSWORTH AT +1 404 923 1486 OR EMAIL AT CHRIS.BOSWORTH@CBRE.COM FOR A CONFIDENTIALITY AGREEMENT AND FURTHER DETAILS. CLICK HERE FOR CA DEMOGRAPHICS 1-Mile Population 3-Mile Population 5-Mile Population 1-Mile AHHI 3 -Mile AHHI 5 -Mile AHHI Traffic Count 2,534 17,254 37,955 $58,668 $55,195 $50,944 18,512 VPD on New Jesup Hwy
TENANT: Tractor Supply Company (NASDAQ: TSCO) is the largest national farm and ranch retail store brand in the nation. With more than 1,300 retail stores in 48 states, the company had a net worth in excess of $1.23B and produced impressive TTM revenues of more than $5.54B as of September 2014 LONG-TERM NET LEASE: 8.5 years of primary lease term remaining with four 5-year options to renew ATTRACTIVE RENT ESCALATIONS: 10% rent increases every 5 years throughout the initial term and renewal option Next bump occurs in June 2018 STRONG AVERAGE RETURN: Average return over the initial term is equal to more than 7.10% EXCELLENT VISIBILITY: Ideally positioned with excellent frontage on both Old Jesup Highway and New Jesup Highway/Golden Isles Parkway (Traffic Count: 18,512 VPD), just 1.5 miles north of Interstate 95 which provides direct access to both Savannah, GA (70 miles) and Jacksonville, FL (65 miles). New Jesup Highway/Golden Isles Parkway serves as the area s preeminent north-south thoroughfare which is also widely used to get to the beach and many Golden Isles resorts DOMINANT RETAIL & RESIDENTIAL CORRIDOR: Approximately 3.2 MSF of retail, 1,830 multifamily units and a population of 37,995 within a 5-mile radius MARKET: Brunswick, Georgia (MSA Population: 113,807) is a vibrant coastal city located directly on the Atlantic Intracoastal Waterway and supports a progressive economy largely based on tourism and logistics with a metropolitan GDP of $3.9 billion. The Brunswick MSA, which also consists of St. Simons Island, Sea Island, Jekyll Island, Brantley County and McIntosh County, is the twelfth largest MSA in Georgia.
PROPERTY OVERVIEW ADDRESS: TENANT: BUILDING SIZE: PARCEL SIZE: 5940 New Jesup Highway Brunswick, Georgia 31523 Tractor Supply Company 19,097 SF 2.98 Acres YEAR BUILT: 2008 PARKING: 82 Spaces LEASE SUMMARY LEASE COMMENCEMENT: June 7, 2008 LEASE EXPIRATION: June 6, 2023 TERM REMAINING: LEASE TYPE: INITIAL TERM RENT INCREASES: REMAINING OPTIONS: OPTION RENT INCREASES: 8.5 Years NN 10% every 5 years Four 5-Year options to extend 10% every 5 years Not Actual Location
TENANT OVERVIEW Tractor Supply Company is the largest national farm and ranch retail store brand in the nation. Headquartered in Brentwood, Tennessee, the company operates more than 1,300 retail stores in 48 states and employs over 19,000 team members. Its stock is traded on the NASDAQ exchange under the symbol TSCO. The company was founded in 1938 as a mail order catalog business offering tractor parts to America s family farmers. Tractor Supply Company stores are concentrated east of the Rocky Mountains with many locations in the outlying suburbs of major cities. The company offers the following comprehensive selection of merchandise: (1) livestock and pet products, including everything necessary for their health care, growth and containment (2) maintenance products for agricultural and rural use (3) hardware and tool products (4) seasonal products, including lawn and garden power equipment (5) truck, trailer and towing products and (6) work clothing for the entire family. As of September 27, 2014, Tractor Supply Company had a net worth in excess of $1.23B and produced impressive TTM revenues of more than $5.54B. Not Actual Location
AREA OVERVIEW BRUNSWICK, GEORGIA The vibrant and charming city of Brunswick is located on the coast line of Georgia and is the county seat of Glynn County. The Brunswick Metropolitan Statistical Area consists of St. Simons Island, Jekyll Island, Brantley County and McIntosh County making it the twelfth largest MSA in Georgia with a population of 113,807. The town is also a resort community and has many seasonal residents, as well as a steady base of year-round residents. PORT CITY The Intercostal Waterway passes between Brunswick and St. Simons Island allowing the city to host a major port. The Port of Brunswick is one of the nation's most productive ports on the Atlantic coast. Besides handling such products as wood pulp, paper products, wheat, soybeans, and heavy machinery, it is the primary U.S. port of import and/or export of numerous automobile manufacturers including Jaguar, Land Rover, Porsche, Mitsubishi, Volvo, Ford, GM and Mercedes. Other exports out of the Port of Brunswick include agricultural products (barley malt, corn, and oats) and other bulk cargoes, including cement, gypsum, limestone, perlite, salt and sand. TOURISM Brunswick is the second largest concentration of documented historic structures in Georgia. The streets are lined with nineteenth century Victorian-style homes, century old grand oaks and gorgeous magnolia trees. Downtown Brunswick offers a wealth of boutiques, magnificent churches, fine and causal restaurants, art galleries and cultural venues. The nearby islands of St. Simons and Jekyll lure visitors with the promise of beaches, resorts, and historic sites giving Brunswick the title of the "Gateway to the Golden Isles."
Affiliated Business Disclosure, Confidentiality Agreement & Disclaimer AFFILIATED BUSINESS DISCLOSURE CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an Affiliate ) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the Property ) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum. CONFIDENTIALITY AGREEMENT This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the Owner ), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc. DISCLAIMER 2014 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.
NET LEASE PROPRETY GROUP CHRIS BOSWORTH Executive Vice President T: +1 404 923 1486 chris.bosworth@cbre.com WILL PIKE Senior Vice President T: +1 404 923 1381 will.pike@cbre.com BRIAN PFOHL Senior Financial Analyst T: +1 404 504 7893 brian.pfohl@cbre.com CBRE, INC. 3280 PEACHTREE ROAD NW, SUITE 1400 ATLANTA, GA 30305 T 404.504.7900 F 404.504.0022 DISCLAIMER: This valuation analysis or broker opinion of value is not an appraisal and has not been performed in accordance with the Uniform Standards of Professional Appraisal Practice. Neither you, nor any third parties, may rely on this analysis for any tax purposes, estate work, litigation, lending or any other matter other than your direct use in connection with a contemplated transaction.