offering memorandum VERIZON 1428 US-11 W BRISTOL, TN 37620
CONTENTS 03 04 06 10 EXECUTIVE OVERVIEW FINANCIAL OVERVIEW TENANT OVERVIEW AREA OVERVIEW LISTED BY Steele Mcdonald Associate STEELE.MCDONALD@MATTHEWS.COM DIR 214.692.2265 MOB 615.417.3631 LIC # 694333 (TX) Braden Crockett Associate vp & Director BRADEN.CROCKETT@MATTHEWS.COM DIR 214.692.2040 MOB 714.345.6206 LIC # 01946071 (CA) BROKER OF RECORD Kyle Matthews BROKER OF RECORD LIC # 263667 (TN) 2
EXECUTIVE OVERVIEW Investment Highlights New Construction site completed in 2017 9+ years remaining on base term 2 5-year options to extend Attractive 10% rental increases every 5 years strong hedge against inflation NN Lease minimal landlord responsibilities Operator Cellular Sales operates more than 650 Verizon stores across 39 states Location Highlights Located at The Pinnacle, the premier shopping, dining, and entertainment destination in the Tri-Cities The 1,000,000 SF center is anchored by Belk, Bass Pro Shops, Dick s Sporting Goods and Marquee Cinemas Strategically positioned at the intersection of I-81 & Highway 11, directly between Bristol and Kingsport The Pinnacle serves a market area of 1,000,000 people in Northeast Tennessee and Southwest Virginia Overall, The Pinnacle is home to over 75 retail and restaurant tenants, with more announcements coming soon
4 FINANCIAL OVERVIEW EXECUTIVE SUMMARY Property Name Verizon Wireless Property Street 1428 US-11 W City, State, Zip Bristol, TN 37620 GLA ± 2,400 SF Year Built 2017 ANNUALIZED OPERATING DATA Monthly Rent Annual Rent Rent/SF Cap Rate Current - 4/6/2022 $9,000.00 $108,000.00 $45.00 6.00% 4/7/2022-4/6/2027 $9,900.00 $118,800.00 $49.50 6.60% 4/7/2027-4/6/2032 $10,890.00 $130,680.00 $54.45 7.26% 4/7/2032-4/6/2037 $11,980.00 $143,760.00 $59.90 7.99%
5 TENANT SUMMARY FINANCIAL HIGHLIGHTS LIST PRICE CAP RATE $1,800,000 6.00% TERM REMAINING ± 9 YEARS Tenant Trade Name Verizon Wireless - Cellular Sales Type of Ownership Private Lease Guarantor Franchisee Lease Type NN+ Roof & Structure Owner Responsibility (Roof Warranty) Original Lease Term 10 Years Rent Commencement Date 4/7/2017 Lease Expiration Date 4/7/2027 Term Remaining ± 9 Years Increases 10% Every 5 Years Options 2, 5-Year
6 Tenant overview
VERIZON WIRELESS TENANT OVERVIEW Cellular Sales is a management company that operates authorized wireless phone stores for Verizon Wireless throughout the United States. Verizon Wireless is the #1 US wireless phone operator in terms of sales and subscribers. Serving nearly 137 million consumer, business, and government customers nationwide, the company offers both standard post-paid and prepaid subscription plans. It distributes new and pre-owned phones from manufacturers including Samsung Electronics, BlackBerry, LG, and Apple. The company also offers mobile data services, including text messaging, multimedia content (V CAST), and Web access. COMPANY TRADE NAME CELLULAR SALES OF KNOXVILLE, INC. OWNERSHIP PRIVATE HEADQUARTERED KNOXVILLE, TN NO. OF EMPLOYEES ± 45,000 STRATEGY With a strong focus on total customer satisfaction and total dedication to their customers, Cellular Sales has managed to increase its number of locations. Verizon Communications continues to build its wireless business as it advances further toward its goal of becoming a more robust telecom services company. WEBSITE WWW.CELLULARSALES.COM # OF LOCATIONS ± 560 GEOGRAPHIC REACH Currently, Cellular Sales is in the process of expanding their retail system throughout the country. YEAR FOUNDED 1993 7
PARCEL MAP the offering Property Name Property Address Verizon 1428 US-11 W Bristol, TN 37620 Oceanside Blvd ± 31,792 College Blvd ± 40,116 Site Description Number of Stories One Year Built 2017 Type of Ownership Private GLA ± 2,400 SF Parking ± 23 Surface Spaces Parking Ratio 9.58 : 1,000 SF Landscaping Professional Topography Generally Level
Click to watch area overview video of Pinnacle Shopping Area (Video Provided By Seller) surrounding tenants
10 AREA OVERVIEW BRISTOL, TN DEMOGRAPHICS Bristol, TN is the twin city of Bristol, VA. The two cities sit directly across from one another on the state line between Tennessee and Virginia. The state line runs through their shared downtown district. Bristol is a principal city the Kingsport-Bristol-Bristol, TN-VA Metropolitan Statistical Area. The Johnson City-Kingsport-Bristol, TN-VA Combined Statistical Area is known as the Tri- Cities region. Bristol is well known for a number of different reasons. The city is recognized by the U.S. Congress as the Birthplace of Country Music. They have earned this title because It was where the first commercial recordings of country music were recorded in Bristol. The city is also home to Birthplace of Country Music Museum. Bristol is the site of the Bristol Motor Speedway, a NASCAR short track that has become one of the most well-known motorsports facilities in the country. POPULATION 30 Miles 45 Miles 60 Miles 2010 Census 495,496 792,502 1,082,780 2018 Estimate 494,674 784,708 1,065,065 2023 Projection 501,483 792,789 1,072,329 Percent Change: 2018 to 2023 1.38% 1.03% 0.68% HOUSEHOLDS 30 Miles 45 Miles 60 Miles 2010 Census 207,962 328,543 447,598 2018 Estimate 209,647 327,844 443,550 2023 Projection 213,269 332,258 447,986 Percent Change: 2018 to 2023 1.73% 1.35% 1.00% INCOME 30 Miles 45 Miles 60 Miles 2018 Est. Average Household Income $59,885.73 $57,547.53 $56,104.29
11 Economy The Bristol Chamber of Commerce represents the economic climate of Bristol Tennessee and Virginia along with the surrounding Tri-cities region. The Bristol Chamber of Commerce is in the top 1.5% of chambers in the United States for strong business practices, leadership, outstanding contributions to the Bristol Community, supporting free enterprise and pro-growth practices, leadership, and supporting free enterprise and progrowth policies. Top Employers # of Employees Eastman 6,800 Wellmont Health Systems 6,225 Holston Medical Group 5,300 Sullivan County Department of Education 1,650 Kingsport City Schools 1,100 Pal s Fast Food 950 CenturyLink Telecommunications 950 BAE Systems 850 Robinette Company 350 Domtar Paper 330
12 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Verizon located at 1428 US-11 W, Bristol, TN 37620 ( Property ). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
EXCLUSIVELY LISTED BY Steele Mcdonald Associate STEELE.MCDONALD@MATTHEWS.COM DIR 214.692.2265 MOB 615.417.3631 LIC # 694333 (TX) Braden Crockett Associate vp & Director BRADEN.CROCKETT@MATTHEWS.COM DIR 214.692.2040 MOB 714.345.6206 LIC # 01946071 (CA) BROKER OF RECORD Kyle Matthews BROKER OF RECORD LIC # 263667 (TN) VERIZON 1428 US-11 W BRISTOL, TN 37620