INVESTMENT SUMMARY Retail Investment Opportunity Offering Memorandum WEST COUNTY MARKETPLACE 2004 Veterans Memorial Parkway (Highway 78), Birmingham, AL $5,168,600 9.8% CAP RATE PRESENTED BY: Josh Randolph, CCIM Director +1 205 949 2691 josh.randolph@colliers.com COLLIERS INTERNATIONAL P. 1 Ollie s Representative photo
Investment Highlights IDEAL LOCATION The center is located along US Hwy 78 which is a main retail artery connecting Birmingham to several smaller municipalities. STRONG UPSIDE Significant value can be added through the lease up of the 11,500 SF of vacant space and the reletting of current space below market rents. CREDIT TENANTS Over 78% of the center is leased to strong regional and national tenants, many of which have been there for over 10 years. Significantly below replacement value The center is currently priced at $45.00 PSF LACK OF COMPETITION The majority of all new leasing activity in the past 5 years in this submarket has been absorbed by West County Marketplace. RECENT RENOVATION The center was renovated in 2005 with significant capital improvements. COLLIERS INTERNATIONAL P. 2
Site Plan 1 Dover Furniture 8,700 SF Warehouse 3 Alabama ABC Store 2,100 SF 4 AVAILABLE 1,400 SF 5 Adamsville Police 1,400 SF Sub-Station 6 AVAILABLE 1,500 SF 7 Nail Fever 900 SF 8 AVAILABLE 1,400 SF 10 Cato Plus 4,400 SF 11 Hibbett Sports 6,273 SF 13 Anytime Fitness 3,600 SF 15 GNC 2,000 SF 16 AVAILABLE 1,600 SF 17 AVAILABLE 1,400 SF 18 AVAILABLE 1,400 SF 19 AVAILABLE 1,400 SF 20 AVAILABLE 2,800 SF 21 Citi Trends 12,304 SF 22 Ollie s Bargain 33,477 SF Outlet 23 Dollar Tree 10,039 SF 24 Goody s 17,500 SF TOTAL 115,593 SF COLLIERS INTERNATIONAL P. 3
INVESTMENT SUMMARY Submarket Aerial adamsville town center village hills shopping center west county marketplace COLLIERS INTERNATIONAL P. 4
Local Area Overview BIRMINGHAM MSA Birmingham, the largest city in the state, is located in north-central Alabama, surrounded by the wooded foothills of the Appalachian mountain range. The city is the county seat of Jefferson County. The Birmingham Metropolitan Area had a population of about 1,128,047 according to the 2010 Census, which is approximately one-quarter of Alabama s population, with an abundance of housing options, entertainment, shopping, sports and the arts. It is a major center of banking, healthcare, biotechnology, education, and insurance in the Southeast. Currently, the economy in the Birmingham metro is dominated by the healthcare and financial services industries. The University of Alabama at Birmingham, a national leader in biotechnology and medical research, has greatly transformed the economic environment and injects billions of dollars into the local economy annually. DEMOGRAPHIC SUMMARY Category 3-Mile 5-Mile 10-Mile Population 19,034 45,321 269,230 Average Household Income $52,507 $46,115 $48,281 COLLIERS INTERNATIONAL P. 5
Area Map SUBJECT PROPERTY NORTH COLLIERS INTERNATIONAL P. 6
Submarket Map COLLIERS INTERNATIONAL P. 7
Pricing & Financial Summary RENT ROLL SUITE Tenant SQFT PRO-RATA SHARE LEASE COMM. LEASE EXP. 1 Furniture Warehouse 8,700 7.62% 6/1/2013 5/30/2014 $2.07 3 Alabama ABC Store 2,100 1.84% 5/1/2008 4/30/2018 $13.00 4 Hair Salon 1,400 1.23% 6/1/2011 7/31/2014 $6.43 5 Adamsville Police Station 1,400 1.21% MTM MTM $0.00 6 Vacant 1,500 1.31% 7 Nail Fever 900 0.79% 10/30/2000 1/31/2017 $17.24 CURRENT RATE OPTIONS NOTES 8 Vacant 1,400 1.23% 10 Cato 4,400 3.85% 2/1/1994 1/31/2017 $8.50 11 Hibbett Sporting Goods 6,273 5.49% 9/7/2005 1/31/2016 $11.00 13 Anytime Fitness 3,600 3.15% 3/1/2011 9/30/2015 $8.00 15 General Nutrition Center 2,000 1.75% 4/1/2009 5/1/2015 $0.44 16 Vacant 1,600 1.40% 17 Vacant 1,400 1.23% 18 Vacant 1,400 1.23% 19 Vacant 1,400 1.23% 20 Vacant 2,800 2.45% 21 Citi Trends, Inc. 12,304 10.77% 9/20/2004 12/31/2014 $3.03 22 Ollie s Bargain Outlet 33,477 29.32% 3/15/2014 3/14/2021 $4.44 23 Dollar Tree 10,039 8.79% 6/4/2005 6/30/2015 $7.25 24 Goody s (Stage Stores, Inc.) 17,500 15.32% 4/10/2008 1/31/2019 $5.00 TOTAL OCCUPIED SF 104,093 TOTAL VACANT SF 11,500 TOTAL SF 115,593 2-5 year with a 6.5% increase in 1st year & 2% thereafter 2-5 year @ $4.75 PSF & $5.06 PSF 2-5 year @ $7.75 PSF & $8.25 PSF % Rent - Tenant pays 6% of annual sales Co-Tenancy - If Dollar Tree vacates space, rental rate will be reduced by 50% until comparable tenant is found. 3 months of free rent at commencement. Co-Tenancy Clause - Tenant agrees to pay 2% of gross sales plus reimbursements if more than 25% of GLA is vacant. COLLIERS INTERNATIONAL P. 8
Pricing & Financial Summary Inplace income Base Rental Revenue $565,294 Reimbursement Revenue $ 65,800 PURCHASE PRICE: $5,168,600 CAPITALIZATION RATE: 9.8% PRICE PER SF: $45.00 Gross Revenue $631,094 operating expenses Repairs & Maintenance $30,477 Utilities $21,822 Insurance $18,396 Property Taxes $34,572 Management Fees (3.5%) $19,304 Total Operating Expenses $124,571 Net Operating Income $506,523 COLLIERS INTERNATIONAL P. 9
Sales Comparables base rent Property Name Size (SQ FT) ANCHOR PURCHASER SELLER SALE PRICE CAP RATE SALE DATE County park plaza 1402-1408 County Park Road Scottsboro, AL 35769 60,750 N/A RCG Ventures, LLC M&P Shopping Centers $2,500,000 10.00% 10/01/2011 POINTE SOUTH 8510 Highway 85 Jonesboro, GA 30238 66,690 Family Dollar Citizens NLAM, LLC WH Pointe South Shopping Center, LLC $2,150,000 13.43% 9/06/2011 QUITMAN RETAIL CENTER 548 S. Archusa Avenue Quitman, MS 39355 35,467 N/A Regency Commercial Associates, LLC Southern Development of Van Cleave, Inc. $1,592,438 10.80% 8/15/2011 PELHAM PLAZA 804 Pelham Road Jacksonville, AL 36265 ATHENS TOWN CENTER 601-661 US Highway 72 West Athens, AL 35611 REGENCY PLAZA 9840 Atlantic Boulevard Jacksonville, FL 32225 EASTGATE SQUARE 164 South Highway 17 East Palatka, FL 32177 CORDELE CORNERS 41411 East 16th Street Cordele, GA 31015 SUMMER COMMONS 5110-5126 Summer Avenue Memphis, TN 38122 SOUTHLAKE II 1300 Mount Zion Road Morrow, GA 30260 72,500 Save-A-Lot, Hibbett Sports, Aaron Rents, and Dollar General 209,124 Tractor Supply, Big Lots, Burke s Outlet, Save-A-Lot and Goody s 205,696 Burlington Coat Factory, TJ Maxx, Office Max and dd s Discounts 57,864 Hitchcock Super Value and Family Dollar 120,868 Wal-Mart, Tractor Supply, Bealls Outlet and Dollar Tree 139,785 Northern Tool, City Thrift, Save-A-Lot and Dollar Tree 117,081 K&G Fashion, D&K Suit City and Citi Trends N/A N/A $1,875,000 11.40% 11/01/2010 Coastal Equities Real Estate, LLC Live Oak Improvements, LLC Athens TC Station, LLC $8,450,000 10.10% 6/2012 Kimco Regency Plaza 207, Inc. $6,500,000 12.80% 11/2012 N/A West Oaks Club, LLC $2,950,000 10.70% 10/2012 Coastal Equities, LLC RCG Ventures, Inc. $4,392,500 8.66% 6/2012 Coastal Equities Real Estate, LLC Asherian Properties Southlake II Shopping Center,LLC Summer Commons, LLC Morrow Retail Venture, LP $4,800,000 10.10% 1/2012 $4,700,000 13.83% 1/2011 COLLIERS INTERNATIONAL P. 10
INVESTMENT SUMMARY Property Photographs COLLIERS INTERNATIONAL P. 11
Team Biographies AREA OF EXPERTISE Investment Properties JOSH RANDOLPH, CCIM Senior Director PROFESSIONAL ACCOMPLISHMENTS Handled over $435 Million in Investment Property Sales for both private equity groups and institutional clients Actively involved in the valuation of over $5 Billion of private and institutional real estate assets including retail, office, industrial and multi-family properties while with the Financial Consulting Group REPRESENTATIVE CLIENTS AND PROJECTS LNR Weingarten TIAA CREF Ramco Gershenson Phillips Edison Regency Centers AIMCO ALISON LANDERS Operations Manager AREA OF EXPERTISE Alison is responsible for the oversight, design, coordination and implementation of the day-today activities of the company and all related entities, including technology, human resources, facilities management, administration and marketing. JORDAN GASTON Financial Analyst AREA OF EXPERTISE Jordan is responsible for providing comprehensive analysis for various real estate investment opportunities. His responsibilities include financial review and model development, contracts and lease review, deal flow generation, market research, and other various due diligence requirements. MAILE FLOYD Brokerage Coordinator AREA OF EXPERTISE Maile is a member of the sales and leasing team. Her responsibilites include property marketing and promotions, coordinating market research and providing up-to-date information to the brokerage community. Duke Realty RREEF Invesco Lasalle Investment Management CW Capital Interwest Capital Retail Planning Corporation COLLIERS INTERNATIONAL P. 12
Josh Randolph, CCIM Director Dir +1 205 949 2691 josh.randolph@colliers.com COLLIERS INTERNATIONAL P. 13