OFFERING MEMORANDUM 2200 N Howard St, Baltimore MD 21218
EXCLUSIVELY LISTED BY Braden Crockett Associate VP & Director Braden.Crockett@matthews.com DIR (214) 692-2040 MOB (714) 345-6206 LIC # 01946071 (CA) Kyle Matthews BROKER OF RECORD LIC # 2 Matthews 664913
CONTENTS 4 EXECUTIVE SUMMARY 6 FINANCIAL ANALYSIS 7 TENANT OVERVIEW 8 PROPERTY OVERVIEW 11 AREA OVERVIEW Firestone Baltimore, MD 3
Executive Summary Investment Highlights Investment: Recently Extended for a total of 13 Years - Demonstrates tenant s strong performance and commitment to the location Offered at an Attractive 6% Cap Rate Strong Hedge Against Inflation with Fixed Rental Increases in the base term and options Tenant: Firestone Complete Auto Care has over 2,200 locations and is one of the strongest Auto Service Retailers in the country Parent Company, Bridgestone, has a market capitalization of over $31 Billion with over $30 Billion in Revenue Bridgestone has earned an investment grade credit rating of BBB+ as rated by S&P E-Commerce Resilient Tenant - Very difficult for Online retailers to replicate business model Location: Located less than 1 Mile from Johns Hopkins University one of the nation s Premier Universities in the country Johns Hopkins is home to over 6,500 undergraduates and was ranked by US News as the 10th Best National University Johns Hopkins was also ranked in the Top 3 Medical Schools in the country High Trafficked Location - Over 25,000 VPD on Howard St Gentrifying Area - Significant New Development of Mixed Use Apartments and Retail Estimated 1,000 Units of Apartments Under construction or recently built Just South of Charles Village - Recent $65MM development- 157 Apartments with 31,500 SF of retail 5 Miles North of $5.5 Billion Dollar Covington Port Development which will house Under Armour s corporate headquarters 4 Matthews
Firestone Baltimore, MD 5
Financial Analysis 2200 N Howard St Baltimore, MD 21218 List Price...$3,184,000 CAP Rate - Current...6.00% Gross Leasable Area... ± 8,040 SF Lot Size... ± 0.51 Acres (22,140 SF) Year Built...1975 Annualized Operating Data Monthly Rent Annual Rent Rent/SF Cap Rate Current* - 10/31/2025 $15,916.67 $191,000.00 $23.76 6.00% 11/1/2025-10/31/2030 $17,826.67 $213,920.00 $26.61 6.72% *Rent increases from $118,800 to $191,000 on 2/1/2019. Seller will escrow difference in rents for purchaser to draw down monthly or to take in one lump sum at closing. Tenant Summary Tenant Trade Name Firestone Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type Absolute NNN Original Lease Term 15 Years Lease Commencement Date 2/1/1984 Lease Expiration Date 10/31/2030 Term Remaining on Lease ± 13 Years Increases 12% in 2025 Options None 6 Matthews
Tenant Overview Property Name Industry Ownership Firestone Complete Auto Care Bridgestone Retail Operations, LLC Public No. of Locations ± 2,200 No. of Employees ± 22,000 Headquartered Bloomingdale, illinois Website www.firestonecompleteautocare.com Year Founded 1926 Firestone Complete Auto Care As a subsidiary and the U.S. retail arm of Japan-based tire giant Bridgestone Corporation, Bridgestone Retail Operations, LLC (BSRO) operates the world s largest chain of company-owned auto care centers and tire stores across the United States under the Firestone Complete Auto Care, Expert Tire, Tires Plus and Wheel Works banners. Since its founding in 1926, Firestone Complete Auto Care has been providing exceptional customer service, quality products and the right solutions for patrons auto care needs. This iconic brand is the work-horse of BSRO s portfolio as a lead provider for maintenance, repairs, and tires. Strategy Fundamental honesty is the keystone of Firestone Complete Auto Care s business. The brand s name is synonymous with quality, pride, and expertise in tires and auto care. At Firestone Complete Auto Care, team members offer more than just car service: They offer solutions for difficult situations. With the promise to care, BSRO is committed to earning the loyalty of their customers by providing a positive experience. BSRO s long-term strategic plans involve building a relationship with customers to turn them into lifetime customers. In an effort to make regular maintenance more convenient, BSRO is working to boost its revenues by expanding its retail network nationwide; The firm has added more than 100 new stores over the past few years. Geographic Outreach Bridgestone Retail Operations, LLC operates approximately 2,200 Firestone Complete Auto Care locations throughout the United States. Firestone Baltimore, MD 7
Property Overview The Offering Property Name Property Address College Blvd ± 40,116 Firestone 2200 N Howard St Baltimore, MD 21218 Assessor s Parcel Number 12-05-3608-017 Site Description Number of Stories One Year Built 1975 Gross Leasable Area (GLA) Lot Size Type of Ownership Landscaping Topography ± 8,040 SF ± 0.51 Acres (22,140 SF) Fee Simple Professional Generally Level 8 Matthews
Parcel Map Firestone Baltimore, MD 9
SURROUNDING TENANTS 10 10 10 Matthews Real Estate Investment Services
Area Overview Baltimore, MD The city of Baltimore is the largest city in the state of Maryland and the largest independent city in the United States. Historically a working-class port town focused on steel processing, shipping, auto manufacturing, and transportation, Baltimore now has a modern service economy led by biotechnology, medicine, and tourism. Beginning in 1979, Baltimore began urban renewal efforts that rank among the most ambitious in the United States. Downtown and many other neighborhoods have been revitalized, with special attention given to the city s greatest asset - the harbor. Additionally, state-of-the-art stadiums have been constructed for the Baltimore Orioles and Baltimore Ravens. A few miles away, billion-dollar biotechnology parks attract the world s leading scientists. Baltimore is home to the headquarters of Under Armour. Under Armour has plans for a 50-Acre campus with a manmade urban lake and 3.0 million square feet of office. The first phase of the campus includes a ladmark tower that is expected to be built by 2021. The campus will be built along the Port Covington waterfront and will have a stadium to seat 7,000 fans with plans to host local College sporting events. Neil Jurgens, Vice President for corporate real estate at UA said, We see this as transformative for the city and transformative for Under Armour. Firestone Baltimore, MD 11
Baltimore Demographics POPULATION 1 Mile 3 Mile 5 Mile 2022 Projection 44,069 319,129 602,528 2017 Estimate 42,921 314,885 595,745 2010 Census 41,569 314,336 595,213 2000 Census 43,772 337,592 625,417 Growth 2017-2022 2.67% 1.35% 1.14% Growth 2010-2017 3.25% 0.17% 0.09% HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2022 Projection 21,591 130,098 244,648 2017 Estimate 20,826 127,765 241,116 2010 Census 19,742 126,427 239,450 Growth 2017-2022 3.67% 1.83% 1.47% INCOME 1 Mile 3 Mile 5 Mile 2017 Est. Average Household Income $54,087 $63,445 $66,797 12 12 Matthews Real Estate Investment Services
Johns Hopkins University Johns Hopkins University is a private research university in Baltimore, Maryland. Founded in 1876, the school is now home to more than 24,000 undergraduate and graduate students throughout the 9 schools offered by the university. The school has put more money into research than any other U.S. academic institution and 36 Hopkins researchers have received Nobel Prizes. The global reach of Johns Hopkins touches more than 150 countries through research, training and other related activities. The University is based in Baltimore with campuses on three continents and researchers in every time zone. St Paul and East 33rd Street Johns Hopkins offers undergraduate, masters, doctoral and certificate programs ranging from arts and music to the humanities to international studies to health professions, along with others that make up the 260 programs offered. A $65 MM development of 157 apartments and 31,5000 SF of retail is located at the corner of St. Paul and East 33rd Street. The apartments are just a half a mile from Johns hopkins University and about a mile and a half from the subject property at 2200 N Howard St. this location for apartments is stategic due to the amount of students looking to live in such close proximity to campus. This location around Johns Hopkins University is especially attractive right now, with various real estate and retail opportunities popping up throughout the area. Firestone Baltimore, MD 13
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Firestone Complete Auto Care located at 2200 N Howard St Baltimore, MD 21218 ( 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.
Braden Crockett Associate VP & Director OFFERING MEMORANDUM Braden.Crockett@matthews.com DIR (214) 692-2040 MOB (714) 345-6206 LIC # 01946071 (CA) Kyle Matthews BROKER OF RECORD LIC # 664913 2200 N Howard St, Baltimore MD 21218 Firestone Baltimore, MD 15