Table of Contents US BANK Financial Overview Financial Overview....4 Tenant Overview....5 Lease Abstract.6 Investment Overview Investment Overview.. 8 Drone Photos..9 Site Aerials......10-11 Market Aerials....12-14 Local & Regional Maps......15-16 Market Overview Owensboro, Kentucky...18 Demographics....19-20
Financial Overview FINANCIAL OVERVIEW
Financial Overview 4 Term Annual Rent Monthly Rent Price $1,851,426 Gross Leaseable Area (GLA) 11,822 SF Price/ SF $156.61 Cap Rate 7.56% Net Operating Income $140,054.54 Year Built 1992 Lot Size ~1.29 Acres Type of Ownership Fee Simple Lease Type Double Net Roof & Structure Landlord Responsible Lease Term 5 Years Rent Commencement 1/1/2014 Lease Expiration 12/31/2021 Term Remaining 3.5 Years Increases Increases in Options Options Two, Five-Year Option to Terminate None Option to Purchase None Right of First Refusal Yes 30 Days Present to 12/31/2021: $163,511.16 $13,625.93 Option I: FMV FMV Option II: FMV FMV CURRENT ANNUAL RENT $163,511.16 TOTAL RETURN 7.56% / $1,851,426 Expenses Real Estate Taxes* (Adjustment) $19,342.62 Insurance $4,114.00 Total Expenses ($1.98/sf) $23,456.62 *Real Estate Tax Expense is based upon a sale price of $1.8M (CAM Handled Directly by the Tenant) Current Income Scheduled Gross Rent: $163,511.16 Expenses: ($23,456.62) NET OPERATING INCOME $140,054.54 7.56%
Tenant Overview 5 OWNERSHIP: PUBLIC TENANT: CORPORATE WEBSITE: WWW.USBANK.COM TENANT OVERVIEW U.S. Bancorp ( US Bank ) is the 7 th largest bank in the United States. The company provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, government entities, and other financial institutions. It has 3,106 branches and 4,842 ATM s, primarily in the Midwestern United States. U.S. Bancorp operates under the second-oldest continuous national charter, originally Charter #24, granted in 1863 following the passage of the National Bank Act. The company is publicly traded on the New York Stock Exchange under the stock symbol USB and has an Investment Grade A+ Credit Rating (S&P). U.S. Bank employs over 71,191 employees. 3,106 BRANCHES HEADQUARTERED IN MINNEAPOLIS, MN $21.49 BILLION 2016 REVENUE STOCK SYMBOL NASDAQ: USB A+ S&P CREDIT RATING
Lease Abstract 6 TAXES Tenant pays a monthly Base Rent, which includes reimbursements for all property taxes. Landlord agrees to pay all Taxes directly. OWNERSHIP: PUBLIC TENANT: CORPORATE WEBSITE: WWW.USBANK.COM Insurance LL Responsibilities Tenant resp. Tenant pays a monthly Base Rent, which includes reimbursements for all Landlord insurance. Landlord shall carry and maintain casualty insurance and U.S. Bank shall carry and maintain general public liability insurance. Landlord, at its expense, will maintain, repair and replace the roof, exterior walls, interior support walls and floor. Tenant, at tenant s expense shall maintain, repair and replace the interior, all equipment including electrical, plumbing, and HVAC systems, inside and outside of doors and windows and remove the trash. CAM Tenant shall be responsible for maintaining the grounds including removing the snow and maintaining the landscaping. Representative Photo Utilities US Bank shall be solely responsible for applying and paying for all utilities.
Investment Overview INVESTMENT OVERVIEW
Investment Overview 8 Investment Highlights U.S. Bancorp - NYSE: USB, S&P 500: A+ Rating Regional Loan Processing Branch E- Commerce Proof Investment Located Across from Towne Square Mall and Macy s, Hobby Lobby, Home Depot, Sam s Club Tenant Requested New 5 Year Lease Shows Commitment to the Site Large Footprint, Low Rent per Square Foot of $13.83 U.S. Bank is the 5 th Largest Commercial Bank in the USA Owensboro, KY Economic Hub for Tri State Area Marcus & Millichap is pleased to present for sale the fee simple interest in U.S. Bank located at 5030 Backsquare Drive, Owensboro, Kentucky. The subject property is a freestanding, net leased U.S. Bank which was built in 1992 and serves as the tenant s mortgage processing branch and administrative office for the region. U.S. Bank sits on a large 1.29 acre parcel, and is comprised of 11,822 square feet. U.S. Bank signed a new five year lease on January 1 st, 2017, modifying the former annual written renewal lease structure, showing great commitment to this site. The lease is corporately guaranteed with two, five-year options with rental escalations. The landlord is solely responsible for the roof, structure and taxes while the tenant takes care of the interior, snow removal and landscaping, insurance and utilities. U.S. Bank is strategically located across from Town Square Mall, a regional mall for the Tri State area, in the main retail corridor of Owensboro. Nearby national retailers include Home Depot, Hobby Lobby, Sears, Target, Walmart, Macy s, JCPenney, Sam s Club, Lowe s and more please see aerial. Owensboro is the County seat and serves as an economic and commerce hub for the Tri State area, where Illinois, Indiana and Kentucky intersect. U.S. Bancorp (NYSE:USB) is headquartered in Minneapolis, MN. It is currently the 5 th largest commercial bank in the United States with an estimated $445 Billion in assets. The lease is corporately guaranteed with both S&P A+ and Moody s A1.
Drone Photos 9
Site Aerial 10
Site Aerial 11 437,753 Square Feet 62 Tenants 3 Anchors:
Market Aerial 12
Market Aerial 13
Market Aerial 14 Burns Elementary School Burns Middle School
Local Map 15
Regional Map 16
Market Overview MARKET OVERVIEW
Owensboro, Kentucky 18 OWENSBORO, KENTUCKY OWENSBORO is a home rule-class city in and the county seat of Daviess County, Kentucky. OVERVIEW It is the 4 th largest city in the state by population and is ideally positioned on U.S. Route 60 about 107 miles southwest of Louisville and is the principal city of the Owensboro metropolitan area. Owensboro is the industrial, medical, retail and cultural hub of western Kentucky. The city is strategically located on the southern banks of the Ohio River, which provides a majestic backdrop of the ambitious Downtown Revitalization initiative and Riverfront Master Plan. The $270 Million project includes the Owensboro Convention Center, two hotels, world renowned Smothers Park, and the International Bluegrass Music Center (scheduled to open in 2018).
Demographic Summary 19 Population In 2017, the population in your selected geography is 66,616. The population has changed by 9.30% since 2000. It is estimated that the population in your area will be 67,896.00 five years from now, which represents a change of 1.92% from the current year. The current population is 47.43% male and 52.57% female. The median age of the population in your area is 38.38, compare this to the US average which is 37.83. The population density in your area is 847.36 people per square mile. Households There are currently 28,076 households in your selected geography. The number of households has changed by 11.55% since 2000. It is estimated that the number of households in your area will be 29,014 five years from now, which represents a change of 3.34% from the current year. The average household size in your area is 2.29 persons. Income In 2017, the median household income for your selected geography is $39,688, compare this to the US average which is currently $56,286. The median household income for your area has changed by 18.44% since 2000. It is estimated that the median household income in your area will be $47,274 five years from now, which represents a change of 19.11% from the current year. The current year per capita income in your area is $24,979, compare this to the US average, which is $30,982. The current year average household income in your area is $58,521, compare this to the US average which is $81,217. Race and Ethnicity The current year racial makeup of your selected area is as follows: 87.37% White, 6.79% Black, 0.11% Native American and 1.25% Asian/Pacific Islander. Compare these to US averages which are: 70.42% White, 12.85% Black, 0.19% Native American and 5.53% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 3.33% of the current year population in your selected area. Compare this to the US average of 17.88%. Housing The median housing value in your area was $113,432 in 2017, compare this to the US average of $193,953. In 2000, there were 15,893 owner occupied housing units in your area and there were 9,275 renter occupied housing units in your area. The median rent at the time was $340. Employment In 2017, there are 38,090 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 53.61% of employees are employed in white-collar occupations in this geography, and 46.46% are employed in blue-collar occupations. In 2017, unemployment in this area is 6.16%. In 2000, the average time traveled to work was 18.00 minutes.
Demographic Report 20 POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection Total Population 3,954 35,025 67,896 2017 Estimate Total Population 3,753 34,665 66,616 2010 Census Total Population 3,713 34,068 64,579 2000 Census Total Population 3,226 33,089 60,950 Current Daytime Population 2017 Estimate 6,308 47,294 92,750 HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection Total Households 1,799 15,995 29,014 2017 Estimate Total Households 1,675 15,580 28,076 Average (Mean) Household Size 2.23 2.16 2.29 2010 Census Total Households 1,634 15,082 26,955 2000 Census Total Households 1,358 14,312 25,168 Occupied Units 2022 Projection 1,799 15,995 29,014 2017 Estimate 1,754 16,507 29,949 HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate $150,000 or More 7.17% 5.19% 4.75% $100,000 - $149,000 10.02% 8.81% 8.33% $75,000 - $99,999 7.91% 10.01% 9.55% $50,000 - $74,999 20.76% 18.51% 17.85% $35,000 - $49,999 16.69% 14.93% 14.46% Under $35,000 37.45% 42.54% 45.09% Average Household Income $65,884 $60,317 $58,521 Median Household Income $46,683 $41,706 $39,688 Per Capita Income $29,460 $27,370 $24,979 HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles Total Average Household Retail Expenditure $55,959 $54,283 $52,778 Consumer Expenditure Top 10 Categories Housing $13,821 $13,182 $12,764 Transportation $10,910 $10,372 $10,171 Shelter $6,918 $6,491 $6,293 Food $6,154 $5,906 $5,814 Personal Insurance and Pensions $4,390 $4,004 $3,879 Health Care $4,052 $4,171 $3,960 Utilities $3,703 $3,595 $3,519 Entertainment $2,237 $2,192 $2,102 Apparel $1,639 $1,519 $1,514 Household Furnishings and Equipment $1,597 $1,544 $1,471 POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age 2017 Estimate Total Population 3,753 34,665 66,616 Under 20 26.57% 23.94% 26.39% 20 to 34 Years 24.03% 20.05% 19.71% 35 to 39 Years 5.73% 5.39% 5.71% 40 to 49 Years 11.04% 10.95% 11.57% 50 to 64 Years 17.53% 19.52% 19.25% Age 65+ 15.10% 20.17% 17.36% Median Age 34.56 40.57 38.38 Population 25+ by Education Level 2017 Estimate Population Age 25+ 2,471 24,112 44,724 Elementary (0-8) 2.19% 3.11% 3.59% Some High School (9-11) 6.71% 6.53% 9.16% High School Graduate (12) 37.25% 36.70% 36.78% Some College (13-15) 22.58% 21.82% 21.22% Associate Degree Only 8.22% 9.07% 8.48% Bachelors Degree Only 15.65% 13.19% 11.94% Graduate Degree 6.95% 8.96% 7.90%
CONFIDENTIALITY & DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepare to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, not has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. NET LEASED DISCLAIMER The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
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