OFFERING MEMORANDUM 2 TENANT BUILDING 1011 Old Hickory Jackson, TN 38305-2678 EHREN JACOBS Asking Price $455,000 1
EXCLUSIVELY LISTED BY EHREN JACOBS REALTOR CELL: (310) 920-8996 EMAIL: jacobs.ehren@gmail.com SANDRA CARTER CENTURY 21 ACTION REALTY LIC# 00302150 LIC# 01219939 2
CONTENTS 4 INVESTING OFFERING Investment Highlights Property Summary 5-6 FINANCIAL ANALYSIS Financial Summary 7 TENANT OVERVIEW 8-9 MAPS Company History Site/Regional Aerial Tenant 10-11 DEMOGRAPHICS/MAP 12-13 CITY OVERVIEW/ECONOMY 14 PARCEL LOCATION 3
INVESTING OFFERING INVESTMENT OFFERING As exclusive sales agents RE/MAX Realtors is proud to represent this Investment opportunity. The tenants are in a high visibilty location prominently located at 1011 Old Hickory, Jackson, TN 38305-2678 INVESTMENT HIGHLIGHTS Initial Lease 10 Years Options to renew the lease Current term ends 12/31/19 Standard & Poors Credit Rating BB+ Parent Company Trade Name: Dollar Tree (NASDAQ: DLTR) Number of Locations: 8000+ Website: www.familydollar.com Current Rent: $3280.34/month Month to month rent Current rent $500.00/month This offering is subject to change, prior to sale, prior lease or withdrawal from the market without notice. The above information was furnished to us either directly by the Owner or his Agent or through a Co-Broker and thereforeis herewith submitted without any guarantee on our part, and while we do not guaramtee it and assume no liability for errors or omissions, we believe it to be correct. The information is given with the understanding that all the negotiations relative to purchase, sale, exchange or leasing of the property herein decribed will be conducted through RE/MAX Realtors. 4
FINANCIAL ANALYSIS FINANCIAL SUMMARY Offer Price: $455,000 Cap Rate: 9.46% (two tenants combined) Lease Type: Modified Gross (occupy 90%) Ownership: Fee Simple Base Rent: $38,500.08 Options to Renew: 6, 5 year options to renew $3000 Annual increase @ each option period Property Taxes: Tenant Property Insurance: Landlord/Tenant Property Maintenance: Landlord - Exterior of Build $250 Ann. (Roof, Structure, Parking Lot) Tenant - Interior Space LEASE TERM AND EXTENSIONS Initial Term Monthly Rent Annual Rent 11/11/99-12/31/09 $3166.67 $38,000.04 Extended Terms 1. 1/1/10-12/31/14 $2916.00 $34,992.00 1/1/15-12/31/19 $3208.34 $38,500.08 2. 1/1/20-12/31/25 $3666.67 $44,000.04 3. 1/1/26-12/31/31 $3916.67 $47,000.00 4. 1/1/36-12/31/41 $4166.67 $50,000.04 5. 1/1/46-12/31/51 $4,416.67 $53,000.04 6. 1/1/56-12/31/61 $4,666.67 $56,000.04 In addition to base rent, landlord to receive 3% of gross sales in excess of $1,166,666.00 earned by tenant during each year lease Lease Type: Month to month (occupy 10%) Ownership: Fee Simple Base Rent: $6,000 Options to Renew: none Property Taxes: Landlord $700 Ann. Property Insurance: Landlord $300 Ann. Property Maintenance: Landlord $200 Ann. Term Monthly Rent Annual Rent Month to month $500.00 $6000.00 TOTAL EXPENSES: $1450.00 ANNUAL This offering is subject to change, prior to sale, prior lease or withdrawal from the market without notice. The above information was furnished to us either directly by the Owner or his Agent or through a Co-Broker and thereforeis herewith submitted without any guarantee on our part, and while we do not guaramtee it and assume no liability for errors or omissions, we believe it to be correct. The information is given with the understanding that all the negotiations relative to purchase, sale, exchange or leasing of the property herein decribed will be conducted through RE/MAX Realtors. 5
FINANCIAL ANALYSIS FINANCIAL SUMMARY GROSS Income (Tenant 1 & 2) $44,500.00 Annually Landlord Annual Expenses - $1,450.00 (taxes, maint., insurance) NET INCOME = $43,050.00 CAP RATE = 9.46% This offering is subject to change, prior to sale, prior lease or withdrawal from the market without notice. The above information was furnished to us either directly by the Owner or his Agent or through a Co-Broker and thereforeis herewith submitted without any guarantee on our part, and while we do not guaramtee it and assume no liability for errors or omissions, we believe it to be correct. The information is given with the understanding that all the negotiations relative to purchase, sale, exchange or leasing of the property herein decribed will be conducted through RE/MAX Realtors. 6
TENANT OVERVIEW ABOUT THE FAMILY DOLLAR CORPORATION In 1958, a 21-year-old entrepreneur with an interest in merchandising became intrigued with the idea of operating a low-overhead, self-service retail store. Leon Levine believed he could offer his customers a variety of high-quality, good value merchandise for under $2. Because he had grown up in his family s retail store, he understood value, quality and customer satisfaction. In November 1959, Leon Levine opened the first Family Dollar store in Charlotte, North Carolina, and was on his way to becoming a retailing legend. Right from the start, he had a well-developed philosophy of what Family Dollar would be and how it would operate, a philosophy from which he and his management team have never strayed. The concept is a simple one, the customers are the boss, and you need to keep them happy. He created a general floorplan that he used in each of his stores that allowed customers to easily shop for their favorite products in any Family Dollar store. With the stores uniformly laid out and stocked, store managers were able to focus on providing good customer service. This concept for a selfserve, cash-and-carry neighborhood discount store in low to middle income neighborhoods proved so successful that today Family Dollar is a chain with over 6,800 stores from Maine to Arizona 7
MAPS REGIONAL MAP 8
MAPS AERIAL MAP 9
DEMOGRAPHICS DEMOGRAPHICS Description Populatons Demographics Summary 1011 Old Hickory - 1 mi Radius 1011 Old Hickory - 3 mi Radius 1011 Old Hickory - 5 mi Radius Total % Total % Total % 2010 Census 3,195 100.00 25,666 100.00 64,368 100.00 2017 Estimate 3,135 100.00 24,941 100.00 64,132 100.00 Households 2010 Census 1,367 100.00 10,040 100.00 24,665 100.00 2017 Estimate 1,347 100.00 9,821 100.00 24,628 100.00 2017 Est. Population by Single-Classification Race Description 1011 Old Hickory - 1 mi Radius 1011 Old Hickory - 3 mi Radius 1011 Old Hickory - 5 mi Radius Total % Total % Total % White Alone 1,034 32.98 13,468 54.00 31,165 48.59 Black or African American Alone 1,815 57.90 10,068 40.37 29,078 45.34 American Indian & Alaska Native Alone 10 0.32 43 0.17 127 0.20 Asian Alone 35 1.12 329 1.32 908 1.42 Native Hawaiian & Other Pacific Islander 0 0.00 10 0.04 26 0.04 Some Other Race Alone 170 5.42 566 2.27 1,618 2.52 Two or More Races 71 2.27 457 1.83 1,211 1.89 Data supplied from Environics Analytics 10
DEMOGRAPHICS DEMOGRAPHICS - MAP Trade Area: 1011 Old Hickory - 1 mi Radius, 1011 Old Hickory - 3 mi Radius, 1011 Old Hickory - 5 mi Radius Leaflet (http://leafletjs.com) Powered by Esri (https://www.esri.com) USGS, NOAA Data supplied from Environics Analytics 11
CITY OVERVIEW Jackson, Tennessee Jackson is the county seat of Madison County, Tennessee. Located 70 miles (110 km) east of Memphis, it is a regional center of trade for West Tennessee. Its total population was 65,211 at the 2010 census and 67,265 in the 2012 Census estimate. Jackson is the primary city of the Jackson, Tennessee metropolitan area, which is included in the Jackson-Humboldt, Tennessee Combined Statistical Area. Jackson is Madison County s[6] largest city, and the second-largest city in West Tennessee next to Memphis. It is home to the Tennessee Supreme Court s courthouse for West Tennessee, as Jackson was the major city in the west when the court was established in 1834. In the antebellum era, Jackson was the market city for an agricultural area based on cultivation of cotton, the major commodity crop. Beginning in 1851, the city became a hub of railroad systems ultimately connecting to major markets in the north and south, as well as east and west. This was key to its development, attracting trade and many workers on the railroads in the late 19th century with the construction of railroads after the American Civil War. Through the 1960s, the city was served by 15 passenger trains daily, but industry restructuring reduced such service and caused the loss of jobs. The economy has adjusted to new businesses, with major manufacturing in the area. Based on the 2012 census estimate, Jackson is the seventh-largest city in Tennessee. Between 1999 and 2008, several violent tornadoes struck large portions of the city. The McKellar-Sipes Regional Airport was severely damaged in January 1999, a storm that resulted in eleven fatalities. The 1999 tornado also damaged the 30-acre (120,000 m2) Riverside Cemetery, where 40 known Confederate soldiers, 140 unknowns, and many families of the founders of Jackson are buried. The cemetery s acres of old trees and many of the statues, monuments, and graves were damaged during the tornado. Parts of the Union University campus were damaged in November 2002. The downtown area was devastated in May 2003 by an F4 tornado, and there were eight deaths. Many dormitories at the Union campus were demolished in a storm in February 2008. Bird s eye view of Jackson, Tennessee in 1870 On May 1, 2010 a severe thunderstorm hit Jackson, dropping 13 inches of rain in a short period of time. Flash floods destroyed many homes and streets. 12
CITY OVERVIEW ECONOMY The unemployment rate in Jackson, Tennessee, is 5.70%, with job growth of 0.71%. Future job growth over the next ten years is predicted to be 35.73%. Jackson, Tennessee Taxes Jackson, Tennessee,sales tax rate is 9.75%. Income tax is 0.00%. Jackson, Tennessee Income and Salaries The income per capita is $22,964, which includes all adults and children. The median household income is $37,988. ECONOMY Jackson, Tennessee United States Unemployment Rate 5.70% 5.20% Recent Job Growth 0.71% 1.59% Future Job Growth 35.73% 37.98% Sales Taxes 9.75% 6.00% Income Taxes 0.00% 4.60% Income per Cap. $22,964 $28,555 Household Income $37,988 $53,482 Family Median Income $51,073 $65,443 Bird s eye view of Jackson, Tennessee in 1870 source: http://www.bestplaces.net/economy/city/tennessee/jackson 13
PARCEL LOCATION Madison County - Parcel: 066A E 002.00 Date: December 18, 2017 County: Madison Owner: MALIK PROPERTIES LLC Address: OLD HICKORY BLVD 1011 Parcel Number: 066A E 002.00 Deeded Acreage: 0 Calculated Acreage: 0 Date of Imagery: 2012 1:2,257 0 0.0175 0.035 0.07 mi 0 0.03 0.06 0.12 km TN Comptroller - OLG Sources: Esri, HERE, DeLorme, USGS, Intermap, INCREMENT P, NRCan, Esri Japan, METI, Esri China (Hong Kong), Esri Korea, Esri (Thailand), MapmyIndia, NGCC, OpenStreetMap contributors, and the GIS User Community The property lines are compiled from information maintained by your local county Assessor s office but are not conclusive evidence of property ownership in any court of law. 14