Representative Photo Offering Memorandum Tractor Supply Company 690 Academy Drive Bessemer (Birmingham), AL 35022
Confidential Disclaimer This Confidential Offering Memorandum ( COM ) is provided by Stan Johnson Company ( SJC ), solely for your consideration of the opportunity to acquire the commercial property described herein (the Property ). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC. This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC. The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title. BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the Information ), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such party s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief. Offered Exclusively by Gill Warner, CCIM Senior Director gwarner@stanjohnsonco.com P: +1 918.794.9512 Sharon Jordan Senior Analyst sharon@stanjohnsonco.com P: +1 918.794.9513 In association with Ryan Butler AL Lic. #000101183 Stan Johnson Company 6120 South Yale Avenue Suite 300 Tulsa, Oklahoma 74136 P: 918.494.2690 stanjohnsonco.com
Purchase Price: $3,524,590 Cap Rate: Contact Broker The Offering Investment Highlights Stan Johnson Company is pleased to offer for sale to qualified investors the opportunity to acquire a fee simple interest in the land and building of a new Tractor Supply Company-leased building located in Bessemer (Birmingham), AL. The Subject Property consists of approximately 3.78 acres and a 19,097 square foot building that was built in 2013. Tractor Supply Company is operating under a NN fifteen (15) year lease with approximately 11-1/4 years remaining. The Subject Property features ten percent (10%) rent increases every 5 years during the lease term and each of the four (4), five (5) year renewal options. The Subject Property is located on Academy Drive just off Interstate 20 in Bessemer and in a large retail hub that includes several major tenants including Walmart Supercenter, Aldi, Hibbett Sports, Dollar Tree, Big Lots, McDonald s, Sonic Drive-In, Burger King, Ruby Tuesday, Wendy s, Zaxby s and also several automobile dealerships. Average household income within a 5-mile radius of the property is $69,617. Tractor Supply Company (NASDAQ: TSCO) operates rural lifestyle retail stores in the United States. The company operates over 1,600 retail stores in 49 states and is headquartered in Brentwood, TN. The company focuses on supplying the lifestyle needs of recreational farmers and ranchers. The company also serves the maintenance needs of those who enjoy the rural lifestyle, as well as tradesmen and small businesses. As of December 31, 2016, Tractor Supply Company has total revenues in excess of $6.77 billion, net income in excess of $437 million; and a net worth in excess of $1.45 billion. 100% Leased and Guaranteed by Tractor Supply Company (NASDAQ: TSCO) Desirable Long-Term Lease The fifteen (15) year lease term commenced in September of 2013 and has approximately 11.25 years remaining of primary lease term. Attractive Rental Increases - The Subject Property lease provides for 10% rental increases every five (5) years and in each of the four (4), five (5) year renewal option periods. Highly Passive NN Lease Structure Highly passive lease structure with landlord responsibility limited to roof, structure, and parking. Built-to-Suit Construction The Subject Property was built specifically for Tractor Supply Company, and is institutional quality construction. Good Market Location The Subject Property enjoys a strong location on Academy Drive, a major retail corridor, and just off of Interstate 20 in Bessemer with an average household income within a 5-mile radius of $69,617. Tractor Supply Company Bessemer, AL 3
Tenant Overview Tenant Profile Tractor Supply Company (NASDAQ: TSCO) is the largest operator of retail farm and ranch stores in the United States. Its stores provide a selection of merchandise, including equine, livestock, pet, and animal products (43% of sales); hardware, truck, towing, and tool products (23% of sales); seasonal products comprising lawn and garden items (20% of sales); power equipment; maintenance products for agricultural and rural use (5% of sales); and work/recreational clothing and footwear products (9% of sales). The company was founded in 1938 and is based in Brentwood, Tennessee. The company operates over 1,600 retail stores in 49 states and employs more than 24,000 team members. The company focuses on supplying the lifestyle needs of recreational farmers and ranchers. The company also serves the maintenance needs of those who enjoy the rural lifestyle, as well as tradesmen and small businesses. Tractor Supply stores are primarily located in rural areas and the outlying suburbs of major cities. The typical Tractor Supply store has 15,000-24,000 square feet of inside selling space with a similar amount of outside space used to display agricultural fencing, livestock equipment and horse stalls. As of December 31, 2016, Tractor Supply Company had total revenues in excess of $6.77 billion, net income in excess of $437 million; and, as of April 4, 2017, a net worth in excess of $1.45 billion. Parent Company: Stock Symbol: Exchange: Total Revenue: as of 12/31/2016 Net Income: as of 12/31/2016 Net Worth: as of 4/4/2017 Market Capitalization: as of 4/5/2017 Tenant Business: Tractor Supply Co. TSCO NASDAQ $6.77 billion $437 million $1.45 billion $9.10 billion Retail Founded: 1938 Headquarters: Brentwood, Tennessee Website: www.tractorsupply.com Tractor Supply Company Bessemer, AL 4 Subject Property Photos
Lease Abstract Tenant: Trade Name: Interest: Address: Tractor Supply Company Tractor Supply Fee Simple 690 Academy Drive City, State, Zip: Bessemer (Birmingham), AL 35022 SF Leased: Land Area: +/- 19,097 SF +/- 3.78 Acres Year Built: 2013 Permitted Use: Initial Term: Retail Fifteen (15) Years Rent Commencement: September 14, 2013 Current Expiration: September 13, 2028 Options: Increases: Four (4), Five (5) Year Options 10% Every 5 Years in Lease & Options NN Lease - Landlord is responsible for roof, structure, parking lot and liability insurance. Expenses: Tenant is responsible for taxes, liability and property insurance, CAM and HVAC except for last 2 years of lease term. ROFR: Yes; fifteen (15) days N Tractor Supply Company Bessemer, AL 5
Birmingham, AL Bessemer City Hall Location Overview Founded in 1887, Bessemer is located in southwestern Jefferson County. county area encompassing 1,141 square miles. The metro area is located 147 With about 27,000 residents Bessemer is a city with a rich history and great miles west of Atlanta, GA Metropolitan Area, 195 miles south of Nashville, prospects for the future. Tennessee Metropolitan Area, and 252 miles north of Mobile, Alabama Once a major producer of iron ore and limestone, Bessemer is now focused Metropolitan Area. on diversifying its economy through industrial growth. Amsted Rail and Major business schools in the Birmingham region supply a constant stream U.S. Pipe have recently located industrial facilities in Bessemer, and in 2011, of labor to support the area s industry. According to the U.S. Department of Dollar General broke ground on their 10th distribution facility there. Education there are nearly 100,000 post-secondary students within a 50- Alabama s largest metro area, the Birmingham-Hoover Metropolitan Area is comprised of seven counties, which are located in the north central portion of Alabama, in the foothills of the Appalachian Mountains. The BirminghamHoover Metropolitan Area contains approximately 108 minor cities and consists of a total of 5,332 square miles. The dominant urban area is the city of Birmingham, which covers 151 square miles and is located primarily in Jefferson County. Jefferson County is the largest county in the seven mile radius of downtown Birmingham, representing two dozen universities, community colleges and technical schools. In 2013, there were 3,748 Business Management, Marketing and Support Degrees earned and 419 Computer and Information Science Degrees earned within a 50-mile radius of downtown Birmingham.
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Demographics 690 Academy Drive Bessemer (Birmingham), AL 35022 0-3 mi. 0-5 mi. 0-10 mi. Population 2016 Population 17,710 43,970 165,193 2021 Population 18,010 44,613 170,221 2010-2016 Annual Rate 0.18% 0.10% 0.58% 2016-2021 Annual Rate 0.34% 0.29% 0.60% Households 2016 Total Households 7,006 17,341 63,375 2021 Total Households 7,129 17,612 65,255 2010-2016 Annual Rate 0.19% 0.14% 0.58% 2016-2021 Annual Rate 0.35% 0.31% 0.59% Average Household Income 2016 Average Household Income $57,092 $56,716 $69,617 2021 Average Household Income $61,816 $61,698 $76,485 2016-2021 Annual Rate 1.60% 1.70% 1.90% N Tractor Supply Company Bessemer, AL 8
Offered Exclusively by Gill Warner, CCIM Senior Director gwarner@stanjohnsonco.com P: +1 918.794.9512 going beyond Sharon Jordan Senior Analyst sharon@stanjohnsonco.com P: +1 918.794.9513 In association with Ryan Butler AL Lic. #000101183 Stan Johnson Company 6120 South Yale Avenue Suite 300 Tulsa, Oklahoma 74136 P: 918.494.2690 stanjohnsonco.com The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change Tractor of price Supply or conditions, Company or withdrawal Bessemer, AL 9 without notices.