Santa Fe Drive / US Highway 50 (28,000 Cars / Day) REP PHOTO REP PHOTO EXCLUSIVE OFFERING $1,349,000 / 7.00% CAP Dollar general S&P Rating BBB- EXP DALLAS 214.522.7200 JOE CAPUTO joe@exp1031.com BOB MOORHEAD bob@exp1031.com property. Brand new construction, built-to-suit. Projected completion December 2012. lease structure. Brand new, corporate, 15-year, NNN lease, expected commencement in December 2012 with a 3% increase in year 10, and 10% in each option period. location. Along Santa Fe Drive / US Highway 50 (28,000 Cars / Day) with convenient access to Interstate 25 (52,272 Cars / Day). The subject property is next to a McDonald s, Loaf n Lug convenience store, Little Caesar s, and Subway. The residential population within a 1-mile radius of the site is projected to grow by 6% in the next 5-years. This anticipated growth is due in large part to trade area s accessibility to major employers coupled with proximity to the Pueblo central business district.
Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4: PAGE 5-6: PAGE 7: PAGE 8-9: PAGE 10: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT OVERVIEW SITE PLAN AERIAL PHOTOS LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS Disclaimer EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located at 1650 Santa Fe Drive, Pueblo, CO 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.
Investment overview PRICE: $1,349,000 CAP RATE: 7.00% NET OPERATING INCOME: $94,372 BUILDING AREA: 9,026+ Square Feet LAND AREA: 1.11+ Acres Lease overview Initial Lease Term: 15-Years, Plus 3, 5-Year Options to Renew Projected Rent Commencement: December 2012 Projected Lease Expiration: December 2027 Lease Type: Absolute NNN Rent Increases: 3% in Lease Year 10, 10% in Each Option YEAR BUILT: 2012 (Under Construction) Year 1-10 Annual Rent (Current): $94,372 OWNERSHIP: OCCUPANCY: 100% Fee Simple Interest Year 11-15 Annual Rent: $97,203 Year 16-20 Annual Rent (Option 1): $106,924 Year 21-25 Annual Rent (Option 2): $117,616 Year 26-30 Annual Rent (Option 3): $129,378 Tenant overview www.dollargeneral.com S&P Rating BBB- (upgraded from BB+ in April, 2012) Cal Turner founded J. L. Turner & Son, Inc. in 1939, and opened the first store in Scottsville, Kentucky in June 1955. Today, Corporation operates as the country s largest small-box discount retailer with stores in the southern, southwestern, midwestern, and eastern United States. The stores are typically located in local neighborhoods and small communities deemed too small for big-box retailers. offers both name-brand and generic merchandise including off-brand goods and closeouts of name-brand items. Although it has the word dollar in the name, is not a dollar store. Many of its offerings are priced at more than one dollar. However, goods are usually sold at set price points of penny items and up to the range of 50 to 60 dollars, not counting phone cards and loadable store gift cards. The company provides paper and cleaning products (paper towels, bath tissues, paper dinnerware, trash and storage bags, laundry, and other home cleaning supplies), packaged food and perishables (cereals, canned soups and vegetables, sugar, flour, milk, eggs, and bread), beverages, snacks (such as candies, cookies, crackers, salty snacks, and carbonated beverages), over-the-counter medicines, personal care products (soap, body wash, shampoo, dental hygiene, and foot care products), pet supplies and pet food products, seasonal products (decorations, toys, batteries, small electronics, greeting cards, and stationery) prepaid cell phones and accessories, gardening supplies, hardware, automotive, home office supplies, home products (kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, and craft supplies, as well as kitchen, bed, and bath soft goods), and casual, everyday apparel (for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories). Since the turn of the century, has added stores that carry a greater selection of grocery items, which operate under the name Market. In 2007 Kohlberg Kravis Roberts & Co. (KKR) acquired, privatized the company for restructuring, and took the company public again in 2009. As of May 4, 2012, operated 10,052 stores in 40 states. The company ranks 183 rd within the Fortune 500 Companies (from 188 th in 2010). Fiscal 2011 revenues exceeded $14.80 billion (up 13.60% from 2010) with profits of $766.70 million (up 22.10% from 2010). The company s market value, per March 2012, is estimated at over $15.64 billion. 3
Site Plan 4
Aerial photo Santa Fe Drive / US Highway 50 (28,000 Cars / Day) Interstate 25 (52,272 Cars / Day) 5
Aerial photo Santa Fe Drive / US Highway 50 (28,000 Cars / Day) 6
Location overview IMMEDIATE TRADE AREA is located along Santa Fe Drive / US Highway 50 (28,000 Cars / Day) with convenient access to Interstate 25 (52,272 Cars / Day), centrally located in one of the most economically productive areas in the southern Colorado. US Highway 50 connects the Pueblo central business district with the area s eastern production and technology corridor. Interstate 25 connects the major urban areas of the Front Range Urban Corridor, an urbanized population region of over 4.4 million residents on the eastern face of the Rocky Mountains. This area includes the Colorado cities of Denver, Fort Collins, Colorado Springs, Boulder, and Cheyenne, WY. The subject property is also just west of the US Highway 50 and Colorado Highway 227 intersection. Colorado Highway 227 provides a surface street connection to the Pueblo central business district to traffic in eastern Pueblo. This location near well travelled surface streets and Interstate 25 has turned the vicinity into a community retail hub for the surrounding area. The subject property is next to a Wells Fargo bank, McDonald s, a Loaf n Lug convenience store, Little Caesar s, and Subway. The site is also near a Maytag, Family Dollar, Sunflower Bank, and Dollar Tree. In addition to the nearby retailers the subject property is located in a thriving commercial and industrial area. The daytime employment within a 3-mile radius of the site is 22,130. An Xcel Energy power plant is located south of the subject property and a steel mill employing 1,035 people and operated by the multi-national Evraz corporation is near the site to the southeast. The residential population within a 1-mile radius is projected to grow by 6% in the next 5- years. This anticipated growth is due in large part to the trade area s accessibility to major employers as well as proximity to the Pueblo central business district. PUEBLO, CO Pueblo is a city in southern Colorado with a population of 106,595 residents. The steel industry has provided Pueblo with its economic foundation for most of its history. The multi-national Evraz corporation is currently the largest steel producer in Pueblo. In recent decades the local economy has significantly diversified. Convergys, a global customer relations consultancy which employees 75,000 has an office in Pueblo that currently employs 685 people locally. The healthcare industry today makes up a significant share of the local economy. St. Mary-Corwin Medical Center (408 beds) employs 1,330 people including 342 physicians. Parkview Medical Center (350 beds) is the largest non-government, non-profit, private sector employer in Pueblo county providing 1,972 jobs which includes a staff of 308 physicians. This facility s workforce triggers a strong impact on the community as Parkview s annual payroll contributes $78 million to the local economy. Vestas Wind Systems which generates electricity for 21 million people globally opened a 700,000 SF wind turbine tower manufacturing plant. This facility is the largest of its kind in the world. Additional companies with significant operations in Pueblo include a Target distribution center, Qwest, and Trane. Pueblo was ranked the #1 digital city in 2010 amongst its peer municipalities. This distinction has been given to cities such as Boston, MA, Richmond, VA, Madison, WI, and Winston Salem, NC. SOUTH CENTRAL COLORADO URBAN AREA The South Central Colorado Urban Area is a 4-county area that comprises the Colorado Springs Metropolitan Statistical Area, the Pueblo Metropolitan Statistical Area, and the Cañon City Micropolitan Statistical Area in the central and south central region of Colorado. The South Central Colorado Urban Area had a population of 851,500 at the 2010 United States Census, a 10-year increase of 17.43%. The South Central Colorado Urban Area is the southernmost of the 3 primary subregions of the Front Range Urban Corridor. Economic activity in the area is driven significantly by the military, the high-tech industry, and tourism. The defense industry plays a major role, particularly in the Colorado Springs economy, with some of the largest employers coming from the sector. Fort Carson, a US Army base 40-miles north of Pueblo in Colorado Springs has a residential population today of 13,813. Fort Carson is the home to the 4th Infantry Division, the 10th Special Forces Group, the 4th Engineer Battalion, and the 13th Air Support Operations Squadron of the United States Air Force. The military presence in Colorado Springs became solidified with the opening of the US Air Force Academy in 1954 and the NORAD Air Command Center in 1963. A large segment of this industry is also dedicated to the development and operation of various projects for missile defense. With its close ties to defense, the aerospace industry has also influenced the regional economy. Defense contractors in the include Boeing, General Dynamics, Harris Corporation, SAIC, ITT, L-3 Communications, Lockheed Martin, and Northrop Grumman. The facilities of these companies are mainly located in Colorado Springs. A large percentage of the regional economy is based on manufacturing high tech and complex electronic equipment employing 8,000 approximately 10,000 people in the region. High-tech corporations with a presence in the area include Verizon Business, Hewlett-Packagrd, SNIA, LSI Corporation, and Cypress Semiconductor. The tourism industry plays a significant role in the regional economy. Pueblo serves as a road trip gateway to ski resorts such as Crested Butte, Telluride, Powderhorn, Wolf Creek, and Monarch. The world famous 5-star Broadmoor resort is located in Colorado Springs and boasts 700 rooms, 18 restaurants, 3 championship golf courses, and a world-class spa. 7
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Demographics DEMOGRAPHIC SNAPSHOT Radius 1 Mile 3 Mile 5 Mile Population: 2016 Projection 2,065 40,044 102,313 2011 Estimate 1,948 38,776 99,214 2010 Census 1,917 38,779 99,283 Growth 2011-2016 6.00% 3.30% 3.10% Growth 2010-2011 1.60% 0.00% -0.10% 2011 Households: 2016 Projection 809 16,359 41,588 2011 Estimate 757 15,752 40,107 2010 Census 745 15,757 40,137 Growth 2011-2016 6.90% 3.80% 3.70% Growth 2010-2011 1.60% 0.00% -0.10% Owner Occupied 548 8,337 23,141 Renter Occupied 209 7,416 16,966 2011 Avg Household Income $46,410 $35,705 $42,182 2011 Med Household Income $35,718 $25,143 $29,835 2011 Per Capita Income $18,687 $15,213 $18,315 2011 Households by Household Inc: Income Less than $15,000 157 4,871 10,089 Income $15,000 - $24,999 147 2,962 6,927 Income $25,000 - $34,999 65 2,193 5,435 Income $35,000 - $49,999 137 2,237 6,022 Income $50,000 - $74,999 112 1,964 6,018 Income $75,000 - $99,999 77 827 2,858 Income $100,000 - $149,999 41 478 1,920 Income $150,000 - $199,999 14 108 418 Income $200,000+ 7 113 419 US Air Force Academy, Colorado Springs Downtown Pueblo 10