FORT WAYNE, INDIANA
Table of Contents COLONYSHOPPES TABLE O F CONTENTS 01 02 03 F I N A N C I A L O V E R V I E W P R O P E R T Y O V E R V I E W M A R K E T O V E R V I E W PAGES 0 3-0 8 PAGES 09-18 PAGES 19-22
Financial Overview C O L O N Y S H O P P E S F O R T W A Y N E, I N 6 4 1 5 B L U F F T O N R O A D 01 F I N A N C I A L O V E R V I E W
Executive Summary 4 ADDRESS: 6423 Bluffton Road, Fort Wayne, Indiana 46809 Pricing Price: $1,100,000 Cap Rate: 8.85% PRICE $1,100,000 CAP RATE 8.85% NOI $97,335 Gross Leasable Area: 15,936 Price Per Square Foot: $69.03 Lot Size: 1.94 +/- Acres Investment Highlights Colony Shoppes - 100% Occupied Center Fully Stabilized Five NNN Leases SQ FOOTAGE 15,936 LEASE TYPES Various ACREAGE 1.94 Acres Family Dollar S&P BBB- Credit Tenant NYSE:FDO 5 Mile Population Exceeds 116,000 Residents Large Parcel Offers Value Add Opportunity and Future Redevelopment Potential Demographics 1-Mile 3-Mile 5-Mile Population 6,918 48,735 116,563 Average HH Income $51,218 $48,819 $48,507 Family Dollar Has Occupied this Site since 1996 Marcus & Millichap ACT ID Z0260189
Operating Statement 5 SUMMARY Price: $1,100,000 Down Payment: (30%) $330,000 Current CAP: 8.85% Cash on Cash: 10.44% Square Feet 15,936 Cost per Square Feet: $69.03 PROPOSED NEW FINANCING First Loan Amount: $770,000 Terms: 4.75% Interest 20 Year Amortization 5 Year Term Monthly Payment: $4,976 Annual Payment: $59,711 Debt Coverage Ratio: 1.63 Year Built: Lot Size: 1.94 Acres CURRENT OPERATING DATA Current Annualized Data Gross Potential Rent: $119,316 Tenant Reimbursements: $21,923 Total Income: $141,239 Vacancy Factor: $7,062 5.00% Effective Gross Income: $134,177 Less Expenses: $36,842 Net Operating Income: $97,335 8.85% Capital Reserves: $3,187 ($.20) Loan Payments: $59,711 Pre Tax Cash Flow: $34,437 10.44% Plus Principal Reduction: $23,646 Total Return Before Taxes: $58,083 17.60% EXPENSES Taxes: $1.00 $15,928 Insurance: $0.16 $2,477 Common Area Maintenance: $0.89 $14,200 Management Fee: 3.00% $4,237 TOTAL EXPENSES: $36,842 Per Rentable Square Foot $2.31 EXPENSE BREAKDOWN Real Estate Taxes: $15,928 Insurance: $2,447 Common Area Maintenance: Utilities: $7,600 Landscaping $1,900 Trash $2,300 Repair/Maintenance $2,400 TOTAL CAM: $14,200 Marcus & Millichap ACT ID Z0260189
Rent Roll 6 Suite Tenant Name Sq. Ft. % of Total Lease Start Lease End Monthly Rent Annual Rent Annual PSF Rent Increase Date New Annual Rent Annual Reimb. (1) Option Terms A Little Caesars 1,500 9.41% 6/1/2015 5/30/2025 $1,850.00 $22,200.00 $14.80 6/1/2020 $25,200 $3,069 (2) 5 yr B The Hairy Dog - Groomer 600 3.77% 1/11/2015 MTM $350.00 $4,200.00 $7.00 $1,228 None C M&J Closeouts 1,140 7.15% 1/1/2017 12/31/2019 $844.55 $10,134.60 $8.89 $2,332 None D Tax Pros Services 931 5.84% 5/1/2017 4/31/2020 $615.24 $7,382.83 $7.93 (1) 3 yr E The Cuttery 686 4.30% 3/1/2015 2/28/2021 $571.67 $6,860.00 $10.00 $1,404 None F Boost Mobile 686 4.30% 2/1/2015 4/30/2021 $649.99 $7,799.82 $11.37 5/1/2021 $8,033.06 $1,404 (1) 5 Yr G Taco Zone 931 5.84% 1/1/2017 12/31/2019 $658.68 $7,904.19 $8.49 $1,905 (1) 3 yr H Amazing Vapes 1,162 7.29% 4/1/2017 11/30/2019 $871.50 $10,458.00 $9.00 $2,377 None I Ernie Simco Auto Repair 700 4.39% 1/1/2015 MTM $200.08 $2,401.00 $3.43 $1,432 None J Family Dollar 7,600 47.69% 12/11/1996 7/14/2026 $3,331.33 $39,976.00 $5.26 None Current Totals 15,936 100% $9,943 $119,316 $7.49 $21,923 Occupied 15,936 100% $9,943 $119,316 $7.49 $21,923 Vacant (1) All CTI Reimbursements above are calculated on pro-rata share (2) Family Dollar Reimburses pro-rata share of taxes over $5,226 (2)
Tenant Profiles 7 Little Caesars is the 3 rd largest pizza chain in the United States behind Pizza Hut and Domino s Pizza. Little Caesars operates and franchises pizza restaurants in the United States and internationally in Asia, the Middle East, Australia, Canada, Latin America and the Caribbean. The company was founded in 1959 and now has 5,463 locations across the country. Little Caesar Enterprises, Inc. operates as a subsidiary of Ilitch Holdings, Inc. which is an American company established in 1999 to provide all companies owned by Marian Ilitch (Little Caesars, Detroit Red Wings, Detroit Tigers etc.) with professional and technical services. Headquarters: Detroit, Michigan No. of Locations: 5,463+ Family Dollar is the 2 nd largest discount store retailer in the United States with over 8,000 locations in all states except Alaska, Hawaii, Oregon and Washington. Family Dollar is headquartered in Matthews, North Carolina, a suburb of Charlotte, and employs over 1,400 people. On July 28, 2014 Dollar Tree announced that it would purchase Family Dollar for $8.5 billion. The sale was approved by shareholders on January 22, 2015. Family Dollar Stores Inc. is now a subsidiary of Dollar Tree and has estimated annual revenues surpassing $10.5 billion. Headquarters: Charlotte, North Carolina No. of Locations: 8,000 Symbol: Private Symbol: NASDAQ: DLTR (Parent Co) Website: www.littlecaesars.com Website: www.familydollar.com Square Footage: 1,500 Lease Start: June 1, 2015 Lease Expiration: May 30, 2025 Square Footage: 7,600 Lease Start: December 11, 1996 Lease Expiration: July 14, 2026
Tenant Profiles 8 Boost Wireless is a wireless telecommunications brand used by two independent carriers in Australia and the United States. Boost Mobile was originally founded in 2000 by Peter Adderton in Australia and New Zealand. Boost Mobile in Australia is operated by Boost Tel Pty Limited using the Telstra wireless network. Boost Mobile in the United States is operated by Boost Wordwide, Inc, a Sprint Corporation subsidiary. The company offers phones and devices, account management, and device support services, accessories, and plans and services. It also offers international calling, phone insurance, referral programs and several other services. Headquarters: Irvine, California International Headquarters: Symbol: Website: Sydney, Australia Private www.boostmobile.com Square Footage: 686 Lease Start: February 1, 2018 Lease Expiration: April 30, 2021
Investment Overview C O L O N Y S H O P P E S F O R T W A Y N E, I N 6 4 1 5 B L U F F T O N R O A D 02 I N V E S T M E N T O V E R V I E W
Investment Overview 10 INVESTMENT HIGHLIGHTS Colony Shoppes - 100% Occupied Center Fully Stabilized Five NNN Leases Freestanding Little Caesar s New 5 Year Lease Extension Family Dollar S&P BBB- Credit Tenant NYSE:FDO Landlord Friendly Leases with Low Maintenance 5 Mile Population Exceeds 116,000 Residents Large Parcel Offers Value Add Opportunity and Future Redevelopment Potential Family Dollar Has Occupied this Site since 1996 Bluffton Rd Main Thoroughfare Connecting Waynedale to Fort Wayne Marcus & Millichap is proud to present for sale the fee simple interest in the freestanding Family Dollar, Little Caesar s and Colony Shoppes retail center all located on a 1.94 acre parcel on Bluffton Road, in Fort Wayne, Indiana. Little Caesar s property was built to suit for the tenant in 2013 consists of 1,500 square feet. Little Caesar s recently agreed to exercise it s upcoming Five year option early, showing commitment to the site. The property offers a drivethrough and carry out counter. The triple net lease calls for the tenant to reimburse for its pro rata share of taxes, insurance, common area maintenance, and the landlord is responsible for the roof and structure. There are two more five year options on the lease with 10% rental escalations. Colony Shoppes is a 100% occupied retail center, comprised of 5,536 square feet and consists of six tenants. The property offers five Triple Net leases, leaving minimal landlord responsibilities. This mix of local and regional tenants offers a staggered rollover of lease terms, and the opportunity to raise rents after the leases expire. All tenants are paying an average rent of $7.49 per square foot which is well below market rent for retail in Fort Wayne. Ernie Simco Auto Repair and the Hairy Dog Groomer would both be open to signing new three year leases, or an investor has the flexibility to occupy or re-lease the spaces as well. Family Dollar is conveniently located at the hard corner of Liberty Dr and Bluffton Road, which is the main thoroughfare connecting Waynedale to Fort Wayne. Family Dollar just extended its lease until July of 2026, and has occupied this site since 1996. The landlord is responsible for the roof and structure, and Family Dollar reimburses for it s pro rata share of taxes over $5,226 per year. Waynedale is just five miles Southwest of Fort Wayne, and is celebrated as one of the best places to live and work in Northeast Indiana.
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Market Aerial 14
Market Aerial 15 Downtown Fort Wayne
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Local Map 17 COLONY SHOPPES 5 MILES Downtown Fort Wayne 5 MILES Interstate 469 5 MILES Interstate 69 7 MILES Fort Wayne Mad Ants
Regional Map 18 COLONY SHOPPES 5 MILES Downtown Fort Wayne 5 MILES Interstate 469 5 MILES Interstate 69 7 MILES Fort Wayne Mad Ants
Market Overview C O L O N Y S H O P P E S F O R T W A Y N E, I N 6 4 1 5 B L U F F T O N R O A D 03 M A R K E T O V E R V I E W
Fort Wayne, Indiana 20 METRO HIGHLIGHTS THRIVING MEDICAL INDUSTRY Northeast Indiana has one of the highest concentrations of orthopedic jobs globally, supported by graduates from nearby research universities. AUTOMOTIVE INDUSTRIAL BASE Multiple suppliers serving the nearby General Motors plant provide a cluster of transportation-related manufacturers. FOOD AND BEVERAGE INDUSTRY LEADER An extensive transportation network supports numerous food packaging industries including corn, soybean and ice cream. ECONOMY Boosted by Lincoln Financial, the metro is home to numerous insurance companies such as Swiss Re, American Specialty, MedPro and Brotherhood Mutual. More than 28,000 employees are in the auto industry, with General Motors, Dana Light Axle, Michelin/BF Goodrich and American Sportworks located here, among others. Access to nearby major markets and the FedEx hub in Indianapolis result in BAE Systems, General Mills and Wal-Mart all investing in logistics infrastructure near Fort Wayne International Airport. Regional healthcare networks provide more than 10,000 jobs, primarily at Parkview Health Systems and Lutheran Health Network. DEMOGRAPHICS 2016 POPULATION: 431K Growth 2016-2021*: 3.3% 2016 HOUSEHOLDS: 167K Growth 2016-2021*: 3.8% 2016 MEDIAN AGE: 36.5 U.S. Median: 37.7 2016 MEDIAN HOUSEHOLD INCOME: $49,200 U.S. Median: $57,200
Demographic Summary 21 Population In 2017, the population in your selected geography is 116,563. The population has changed by -0.83% since 2000. It is estimated that the population in your area will be 113,792.00 five years from now, which represents a change of -2.38% from the current year. The current population is 48.62% male and 51.38% female. The median age of the population in your area is 33.05, compare this to the US average which is 37.83. The population density in your area is 1,481.57 people per square mile. Households There are currently 46,173 households in your selected geography. The number of households has changed by -2.31% since 2000. It is estimated that the number of households in your area will be 45,691 five years from now, which represents a change of -1.04% from the current year. The average household size in your area is 2.45 persons. Income In 2017, the median household income for your selected geography is $35,398, compare this to the US average which is currently $56,286. The median household income for your area has changed by 6.64% since 2000. It is estimated that the median household income in your area will be $39,579 five years from now, which represents a change of 11.81% from the current year. Race and Ethnicity The current year racial makeup of your selected area is as follows: 55.90% White, 26.73% Black, 0.11% Native American and 4.59% 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 13.96% of the current year population in your selected area. Compare this to the US average of 17.88%. Employment In 2017, there are 71,397 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 50.13% of employees are employed in white-collar occupations in this geography, and 49.83% are employed in blue-collar occupations. In 2017, unemployment in this area is 8.38%. In 2000, the average time traveled to work was 22.00 minutes. The current year per capita income in your area is $19,552, compare this to the US average, which is $30,982. The current year average household income in your area is $48,507, compare this to the US average which is $81,217.
Demographic Report 22 POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection Total Population 6,889 47,826 113,792 2017 Estimate Total Population 6,918 48,735 116,563 2010 Census Total Population 6,746 47,654 113,778 2000 Census Total Population 6,871 49,827 117,543 Current Daytime Population 2017 Estimate 7,594 43,413 133,814 HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection Total Households 3,118 19,204 45,691 2017 Estimate Total Households 3,083 19,344 46,173 Average (Mean) Household Size 2.17 2.49 2.45 2010 Census Total Households 2,990 18,898 45,061 2000 Census Total Households 2,967 19,971 47,265 Occupied Units 2022 Projection 3,118 19,204 45,691 2017 Estimate 3,276 22,027 53,595 HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate $150,000 or More 1.77% 2.19% 2.50% $100,000 - $149,000 7.70% 5.53% 5.58% $75,000 - $99,999 9.44% 8.30% 8.36% $50,000 - $74,999 22.36% 20.11% 18.70% $35,000 - $49,999 15.56% 16.34% 15.40% Under $35,000 43.16% 47.54% 49.45% Average Household Income $51,218 $48,819 $48,507 Median Household Income $39,558 $36,705 $35,398 Per Capita Income $22,823 $19,416 $19,552 HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles Total Average Household Retail Expenditure $54,632 $50,901 $49,992 Consumer Expenditure Top 10 Categories Housing $14,418 $13,528 $13,272 Transportation $9,825 $9,257 $9,040 Shelter $8,222 $7,778 $7,657 Food $5,865 $5,589 $5,472 Personal Insurance and Pensions $4,394 $4,113 $4,019 Health Care $4,307 $3,669 $3,535 Utilities $3,212 $3,053 $2,972 Entertainment $2,365 $2,206 $2,159 Household Furnishings and Equipment $1,489 $1,341 $1,321 Cash Contributions $1,306 $1,053 $1,021 POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age 2017 Estimate Total Population 6,918 48,735 116,563 Under 20 22.72% 30.71% 29.99% 20 to 34 Years 18.98% 21.26% 22.82% 35 to 39 Years 5.77% 6.59% 6.49% 40 to 49 Years 11.45% 11.76% 11.58% 50 to 64 Years 22.49% 18.02% 17.62% Age 65+ 18.58% 11.67% 11.51% Median Age 42.30 33.62 33.05 Population 25+ by Education Level 2017 Estimate Population Age 25+ 4,934 30,569 72,767 Elementary (0-8) 2.91% 4.24% 4.99% Some High School (9-11) 9.90% 10.73% 11.81% High School Graduate (12) 37.73% 33.58% 34.43% Some College (13-15) 24.16% 24.99% 23.10% Associate Degree Only 8.75% 8.56% 7.84% Bachelors Degree Only 11.83% 11.43% 11.21% Graduate Degree 4.47% 5.55% 5.20%
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.
FORT WAYNE, IN EXCLUSIVE OFFERING P R E S E N T E D B Y : O F F I C E S N A T I O N W I D E www.marcusmillichap.com