EPRESENTATICE Freddy s Frozen Custard 30270 EASTERN SHORE CT SPANISH Lakewood, FORT, AL CO36527 Offering Memorandum
AE R I AL P HOTO 225 Walgreens Rockwell Elementary School 31 McDonald's SUBJECT PROPERTY 10 90 16 Burger King 98 LAKE FOREST GOLF CLUB 181 Daphne High School 2
AERIAL PHOTO 3
EXECUTIVE SUMMARY 30270 Eastern Shore Ct Spanish Fort, AL 36527 FINANCIAL SUMMARY Price $1,853,000 Down Payment 100% $1853,000 Cap Rate 6.80% Building SF 6,448 SF Net Cash Flow 6.80% $126,000 Year Built 2005 ANNUALIZED OPERATING DATA OPTION YEARS ANNUAL RENT CAP RATE 12/1/2017-11/30/2022 $126,000.00 6.80% 12/1/2022-11/30/2027 $152,148.00 8.21% 12/1/2027-11/30/2032 $159,756.00 8.62% 12/1/2032-11/30/2037 $167,736.00 9.05% 12/1/2037-11/30/2042 $176,124.00 9.50% Lot Size LEASE SUMMARY Lease Type Tenant Lease Guarantor Roof & Structure 0.98 Acres Double-Net (NN) The Goodyear Tire & Rubber Company Corporate Guaranty Landlord Responsible BASE RENT $126,000 Net Operating Income $126,000 Total Return 6.80% $126,000 Rent Commencement Date December 1, 2017 Lease Expiration Date November 30, 2022 Lease Term Remaining Rental Increases Renewal Options Right of First Refusal 5 Years 20% in Option 2, 5% Each Option Period Thereafter 4, 5 Year Options 30 Days 4
TENANT AERIAL OVERVIEW PHOTO The Goodyear Tire & Rubber Company is an American multinational tire manufacturing company founded in 1898 and is based in Akron, Ohio. Goodyear manufactures tires for automobiles, commercial trucks, light trucks, motorcycles, SUVs, race cars, airplanes, farm equipment and heavy earth-mover machinery. Goodyear is also known for the Goodyear Blimp. Though Goodyear had been manufacturing airships and balloons since the early 1900s, the first Goodyear advertising blimp flew in 1925. Today it is one of the most recognizable advertising icons in America. The company is the most successful tire supplier in Formula One history, with more starts, wins, and constructors championships than any other tire supplier. It is the sole tire supplier for NASCAR series. Company Name The Goodyear Tire & Rubber Company Stock Symbol NASDAQ: GT Headquarters Akron, Ohio Net Income (YE 2106) $1.26 billion Total Assets (YE 2016) $16.5 billion Number of Employees 66,000 www.goodyearautoservice.com 5
AERIAL PROPERTY PHOTO DESCRIPTION INVESTMENT HIGHLIGHTS 5 Years Remaining on Corporate Lease Tenant Recently Executed a 5-Year Lease Extension, Showing Commitment to the Site Mobile MSA - Population of 412,900 Located at the Intersection of the I-10 Freeway and State Highway 181 Situated in Major Retail Corridor - Best Buy, Michael s, Cost Plus, Old Navy, PetSmart Adjacent to Eastern Shore Centre, a 540,000 SF Mall Featuring 70+ Retail Stores and Restaurants Average Household Income Exceeds $92K in a 1-Mile Radius DEMOGRAPHICS Population 1-Mile 3-Miles 5-Miles 2021 Projection 2,037 19,603 39,795 2016 Estimate 1,965 19,171 38,886 Growth 2016-2021 3.69% 2.26% 2.34% Households 1-Mile 3-Miles 5-Miles 2021 Projection 1,030 7,624 15,975 2016 Estimate 977 7,364 15,488 Growth 2016-2021 5.49% 3.54% 3.14% Income 1-Mile 3-Miles 5-Miles 2016 Est. Average Household Income $92,690 $90,300 $83,641 2016 Est. Median Household Income $72,701 $71,453 $65,367 2016 Est. Per Capita Income $46,073 $34,692 $33,347 LOCATION OVERVIEW Spanish Fort is located on the eastern shore of Mobile Bay in Baldwin County, Alabama, situated in the Mobile metropolitan area and the Daphne-Fairhope-Foley micropolitan area. Since incorporating in 1993, Spanish Fort has seen significant growth. Eastern Shore Centre, an open air regional shopping complex, opened in November of 2004. Spanish Fort Town Center, anchored by Bass Pro Shops, J.C. Penney, and Kohl s, contributed to the municipality s substantial commercial development. Spanish Fort s growth can also be attributed to the continued development of new neighborhoods and new world-class industries and businesses choosing to locate in the area. Alabama s only saltwater port, Mobile is located at the head of the Mobile Bay and the north-central Gulf Coast. The Port of Mobile has always played a key role in the economic health of the city beginning with the city as a key trading center between the French and Native Americans down to its current role as the 12th-largest port in the United States. Mobile is the principal municipality of the Mobile metropolitan area. This region of 412,992 residents is composed solely of Mobile County; it is the third-largest metropolitan statistical area in the state. As one of the Gulf Coast s cultural centers, Mobile has several art museums, a symphony orchestra, a professional opera, a professional ballet company, and a large concentration of historic architecture. Aerospace, steel, ship building, retail, services, construction, medicine, and manufacturing are Mobile s major industries. After experiencing economic decline for several decades, Mobile s economy began to rebound in the late 1980s. Between 1993 and 2003 roughly 13,983 new jobs were created as 87 new companies were founded and 399 existing companies were expanded. 6
PROPERTY PHOTOS REGIONAL AERIAL PHOTO MAP 7
REGIONAL AERIAL PHOTO MAP 8
LOCAL AERIAL MAP PHOTO 9
Confidentiality Agreement Net Leased Disclaimer The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical 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 due diligence 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, PCBs or asbestos, the compliance with local, 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 offering memorandum 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, nor 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property. 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 as well as the Property Owner 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.
exclusively listed Exclusively listed by: Jamie Medress Senior Managing Director PHOENIX OFFICE Tel: (602) 687-6778 Fax: (602) 687-6717 jmedress@marcusmillichap.com Mark Ruble Senior Managing Director PHOENIX OFFICE Tel: (602) 687-6766 Fax: (602) 687-6710 mruble@marcusmillichap.com Zack House Associate Advisor PHOENIX OFFICE Tel: (602) 687-6650 Fax: (602) 687-6710 zhouse@marcusmillichap.com Eddie Greenhalgh Broker of Record BIRMINGHAM OFFICE Tel: (205) 510-9200 License: 00008-8298 OFFICES NATIONWIDE www.marcusmillichap.com