DICK S SPORTING GOODS & PETSMART 4204 N Belt Hwy 1 DICK S SPORTING GOODS & PETSMART OFFERING MEMORANDUM
EXCLUSIVELY LISTED BY JOHNNY BLUE CRAIG Shopping Centers DIR: (214) 692-2068 MOB: (850) 509-8733 LIC No.SL3331383 (FL) Johnnyblue.Craig@matthews.com SCOTT HENARD SVP & Regional Director Shopping Centers DIR: (214) 692-2046 MOB: (972) 998-7373 LIC No. 684841(TX) Scott.Henard@matthews.com KYLE MATTHEWS Broker of Record LIC # 2017010164 (MO) PROPERTY NAME Dick s Sporting Goods & PetSmart LIST PRICE $8,415,455 CAP RATE 8.25% ADDRESS 4204 N Belt Hwy Saint Joseph, MO SF SQUARE FOOTAGE ±57,342 YEAR BUILT 2013 2 DICK S SPORTING GOODS & PETSMART
INVESTMENT HIGHLIGHTS»» Dominant Retail Trade Area, Grocery Shadow Anchored - 1,000,000+ SF of retail within a one mile radius of subject property, grocery shadow - Lowe s - 110,000+ SF owned by corporate with a ±$90B market cap - Walmart Supercenter - almost 200,000 SF owned by corporate with a ±$320B market cap - Sam s Club - nearly 150,000 SF owned by corporate with a ±$320B market cap - Home Depot - 100,000+ SF owned by corporate with a ±$240B market cap - Target - 125,000+ SF owned by corporate with a ±$40B market cap - The Shoppes at North Village - nearly 200,000 SF of retail anchored by Michael s, TJ Maxx, and Best Buy; the shopping center is owned by publicly traded REIT - Walgreens - corporately-owned store built in 2008 - Aldi - corporately-owned store built in 2013, propery is shadow to Aldi one of the top performing grocers in the country»» St Joseph, Missouri - One of the 10 largest cities in the state of Missouri with over 75,000 people - Located along the Missouri River about an hour from downtown Kansas City, Missouri - Home to Missouri Western State University with over 5,000 students»» Located Along Major Thoroughfare - Property sits along North Belt Hwy which is a major thoroughfare in St. Joseph - Average daily traffic count is ±20,000 vehicles per day with four access points along N Belt Hwy and Cook Road»» Newer Construction - Subject property was built in 2013 and still has 5 years remaining on an original 10-year lease - Neighboring tenants include recently constructed Aldi, Starbucks and Verizon»» Strong Return and Great Cash-on-Cash for Stabilized Asset - Asset offers a strong 8.25% initial cap rate with ±$28,000 in rent increases every 5 years - Initial cash-on-cash return of 12.04% and a total year-1 return of nearly 15.33%»» Strong Corporate Tenants - Dick s Sporting Goods has a market cap of ±$3.5B and PetSmart was purchased in 2014 for $8.7B 3 DICK S SPORTING GOODS & PETSMART
SURROUNDING RETAIL N Belt Hwy ±17,000 ADT SIGNALIZED CORNER Cook Road ±3,000 ADT 4 DICK S SPORTING GOODS & PETSMART
SURROUNDING RETAIL N Belt Hwy ±17,000 ADT 5 DICK S SPORTING GOODS & PETSMART
FINANCIAL OVERVIEW Price $8,415,455 Cap Rate 8.25% NOI $694,275 Gross Leasable Area (GLA) ±57,342 Lot Size ±5.30 AC Year Built 2013 Curent Occupancy 100% Type of Ownership Fee Simple RENT ROLL Tenant GLA % of Total GLA Annual Rent Rent/SF Initial Lease Term Lease Expiration Percentage Increase Options Dick s Sporting Goods 45,000 78% $540,000 $12.00 10 years 1/31/23 $0.50 PSF 4, 5-year options PetSmart 12,342 22% $154,275 $12.50 10 Years 8/31/22 $0.50 PSF 5, 5-year options Rent Schedule Current: $540,000.00 Option 1: $562,500.00 Option 2: $585,000.00 Option 3: $607,500.00 Option 4: $630,000.00 Current: $154,275.00 Option 1: $159,738.25 Option 2: $165,905.75 Option 3: $172,073.25 Option 4: $178,240.75 Option 5: $184,408.25 Totals 57,342 100% $694,275 $12.11 * PetSmart pays an administrative fee of 5% of CAM and Dick's Sporting Goods pays a management fee of 5% of CAM, certain exclusions apply. 6 DICK S SPORTING GOODS & PETSMART
LEASE ABSTRACT - DICK S SPORTING GOODS Tenant Dick s Sporting Goods, Inc, a Delaware corporation Tenant Address 345 Court St, Coraopolis, PA Property Address 4204 N Belt Hwy, Saint Joseph, MO Lease Date May 27, 2011 Rent Commencement April 30, 2012 Lease Expiration January 31, 2023 Initial Lease Term 10 years Building Size 45,000 square feet Tenants Proportionate Share 45,000 / 57,342 (78%) Current Minimum Rent $540,000.00 per year Renewal Options Four, 5-year options Extensions of Options Tenant shall provide written notice to Landlord no less than six (6) months prior to the expiration of the current term or Extension Periods. Rent Schedule Current January 31, 2023: $540,000.00 Option 1: $562,500.00 Option 2: $585,000.00 Option 3: $607,500.00 Option 4: $630,000.00 Common Area Landlord shall operate, manage, equip, light, insure, repair, clean, maintain and replace the Common Areas in a good and serviceable condition for their intended purposes and such Common Areas shall at all times be subject to the exclusive control and management of Landlord. Common Area Cost Tenant shall pay its share of Landlord s actual reasonable and commercially competitive annual cost of CAM. CAM shall mean any and all of the reasonable costs and expenses paid or incurred by Landlord in the operation, maintenance, repair and security of all of the Common Areas of the Shopping Center and annual premiums for insurance required to be maintained by Landlord under this lease. Landlord shall be permitted to charge an amount computed by multiplying the CAM costs (exclusive of Insurance Costs, utility charges and single purpose expenditures that exceed Twenty-Five Thousand Dollars ($25,000.00) by five percent (5%) ( Management Fee ). The Parties acknowledge that the repair or replacement of the roof of any of the Shopping Center Buildings is not included in CAM. Landlord Responsibilities Landlord covenants and agrees that it will, at its sole cost and expense, during the entire term of this Lease, maintain and keep in good order and repair those portions of the Demised Premises including repair and replacement of the foundation, all structural elements of the Demised Premises or the Building thereon, floor-slab, exterior walls, steel frame, roof, HVAC. Landlord shall paint the exterior of the Building thereon on a periodic basis when needed, as determined in Landlord s reasonable discretion. Tenant s Responsibilities Tenant agrees, at Tenant s expense to keep in good order and repair the interior of the Demised Premises, all glass, all heating and air conditioning equipment and all permitted signs. Insurance Each Party shall, for the benefit of the other, maintain commercial general liability insurance. Tenant s insurance policy shall name Landlord and Landlord s mortgagee and Landlord s insurance policy shall name Tenant as an additional insured. Utilities Tenant shall pay all charges for utility services used or consumed in the Demised Premises directly to the public utility provider. Taxes Tenant shall pay its real estate taxes for the Demised Premises directly to the taxing authority as stated on the tax bill(s). 7 DICK S SPORTING GOODS & PETSMART
LEASE ABSTRACT - PETSMART Tenant Petsmart, Inc., a Delaware corporation Tenant Address 19601 N 27th Ave., Phoenix, AZ 85027 Property Address 4226 N Belt Hwy, Saint Joseph, MO Lease Date February 15, 2012 Rent Commencement August 27, 2012 Lease Expiration August 31, 2022 Initial Lease Term 10 years Building Size 12,335 square feet Tenants Proportionate Share 12,335 / 57,342 (22%) Current Minimum Rent $154,187.50 per year Renewal Options Five, 5-year options Extensions of Options Tenant shall provide written notice to Landlord no less than 180 days prior to the expiration of the current term or Extension Periods. Rent Schedule Current August 31, 2022: $154,187.50 Option 1: $159,738.25 Option 2: $165,905.75 Option 3: $172,073.25 Option 4: $178,240.75 Option 5: $ 184,408.25 Common Area Common Area means, collectively, all portions of the Landlord s Parcel intended for common use including. Landlord shall maintain, operate, repair and replace the Common Area and all exterior portions of the Landlord s Parcel in an economical and efficient manner according to the highest reasonable standard for retail shopping centers of similar age and character in the metropolitan area in which the Premises are located and in full compliance with Applicable Laws. Common Area Cost The reasonable expenses actually incurred by Landlord for maintaining, operating, repairing and replacing the Common Area plus an administrative fee ( Administrative Fee ) not to exceed 5% of the Common Area Costs; provided that the calculation of the Administrative Fee shall exclude: (a) the costs of utility service for the Common Area; (b) any amounts to be paid or reimbursed to Tenant pursuant to Section 20.2; and (c) the Administrative Fee. Tenant shall pay to Landlord Tenant s Proportionate Share of Common Area Costs Landlord Responsibilities Repair all damage to the Premises or Common Area; maintain in good condition and repair the roofing and all structural portions of the Premises. Tenant s Responsibilities Tenant shall be responsible for the routine maintenance of all parts of the HVAC system exclusively serving the Premises. Tenant shall be responsible for maintaining, repairing and replacing the HVAC system if such replacement is deemed necessary in Tenant s reasonable discretion. Insurance Landlord shall be responsible for maintaining, property and liability insurance. Tenant shall pay to Landlord Tenant s Proportionate Share of Insurance Costs within 30 days following receipt of a statement from Landlord showing the total amount thereof and a paid receipt evidencing Landlord s payment thereof Utilities Tenant shall arrange with and pay directly to the utility companies (as selected by Tenant) the consumption charges for all utilities which it uses in the Premises. Real Property Taxes Means all real property taxes and assessments levied or assessed upon the Landlord s Parcel. Tenant shall pay to Landlord Tenant s Proportionate Share of Real Property Taxes by the later of: (a) 30 days following Tenant s receipt of the Tax Documentation (defined in Section 14.5); or (b) 20 days prior to the due date of such Real Property Taxes. 8 DICK S SPORTING GOODS & PETSMART
DEMOGRAPHICS Population 1-Mile 3-Mile 5-Mile 2018 Estimate 5,388 37,249 68,837 Income 1-Mile 3-Mile 5-Mile 2018 Est. Average Household Income $71,024.01 $73,943.05 $65,522.08 DEMOGRAPHICS BY RACE White - 90% African American - 3.70% Asian - 2.60% Other - 3.70% N Belt Hwy ±17,000 ADT SIGNALIZED CORNER 9 DICK S SPORTING GOODS & PETSMART
SURROUNDING RETAIL NATIONAL TENANTS LESS THAN ONE MILE AWAY Aldi 203 ft Starbucks - 0.1mi Verizon 0.1mi Walgreens 0.2mi Phillips 66 0.2mi Autzone 0.2mi Hardee s 0.3mi Culver s 0.3mi IHOP 0.3mi Walmart Supercenter 0.4mi McDonald s 0.5mi Lowe s Garden Center 0.5mi Cheddar s Scratch Kitchen 0.5mi Sam s Club 0.5mi Chili s Grill & Bar - 0.5mi 54th Street Grill & Bar 0.5mi Olive Garden 0.6mi Taco Bell 0.6mi KFC 0.6mi Subway 0.6mi Sonic Drive-in 0.6mi Home Depot 0.7mi Famous Footwear 0.7mi Little Caesars Pizza 0.7mi Chick-fil-A 0.7mi Planet Sub 0.7mi Bed Bath & Beyond 0.8mi Five Below 0.8mi Old Navy 0.8mi Advance Auto Parts - 0.8mi Kirkland s 0.9mi Ulta 0.9mi Michaels 0.9mi T.J. Maxx 0.9mi Target 0.9mi Best Buy 1mi Regal Cinemas 1mi Buffalo Wild Wings 1mi Kohl s 1 mi Candlewood Suites 1mi Dollar Tree 1mi 10 DICK S SPORTING GOODS & PETSMART
TENANT OVERVIEWS - DICK S SPORTING GOODS Dick s Sporting Goods operates almost 800 stores in 45-plus US states. Its stores usually contain five smaller shops ( stores within a store ) that feature sporting goods, apparel, and footwear for leisure pursuits ranging from football, golf, and cycling to hunting and camping. In addition to brands including NIKE and Adidas, Dick s carries Ativa, Walter Hagen, Top-Flite, and others exclusive to the firm. The company also operates more than 90 Golf Galaxy stores in about 30 states as well as 25 Field & Stream stores in 10 states. Dick s Sporting Goods, Inc. Headquarters - Coraopolis, PA # of Employees - ±40,500 Year Founded - 1948 Website www.dicks.com 11 DICK S SPORTING GOODS & PETSMART
TENANT OVERVIEWS - PETSMART PetSmart is the #1 US specialty retailer of pet food and supplies operates more than 1,430 stores in the US, Canada, and Puerto Rico in addition to an e-commerce site. The retailer offers 11,000 products, which range from scratching posts to iguana harnesses. Products, which are also sold through the PetSmart website, are marketed under national brands and its own private labels. Unique to PetSmart, its stores provide in-store PetsHotel boarding facilities, grooming services, and obedience training. PetSmart Inc. Headquarters - Phoenix, AZ # of Employees - ±53,200 Year Founded - 1986 Website www.petsmart.com 12 DICK S SPORTING GOODS & PETSMART
AREA OVERVIEW St. Joseph, MO St. Joseph is situated on the Kansas border of western Missouri at the crossroads of Interstate 29 and MO Highway 36. Less than an hour north of Kansas City, St. Joseph is home to Missouri Western State University and the Kansas City Chiefs Summer Training Camp. A unique location between the larger metropolitan areas of Kansas City and Omaha provides the city access to all the benefits of a major metropolitan area and allows it to maintain its distinguishing small-town ambiance. Known for being the location where the Pony Express began, St. Joseph merges its past with excitement for the future as it continues to grow as a commercial center. Numerous museums and historic sites offer a glimpse into the city s past as an integral part of business in the Wild West. Contemporary galleries and fine dining establishments simultaneously remind residents and visitors of the city s modern amenities. KANSAS CITY ±57 MILES ST. LOUIS ±300 MILES OKLAHOMA CITY ±400 MILES 13 DICK S SPORTING GOODS & PETSMART
KANSAS CITY, MISSOURI The Kansas City metropolitan area is a 14-county metropolitan area anchored by Kansas City, Missouri that straddles the border between the U.S. states of Missouri and Kansas, making it a bi-state metropolitan area. Ranking as the second largest metropolitan area with its core in Missouri (after Greater St. Louis) with a population of 2,393,623, Kansas City also has a population in Kansas larger than the Wichita metropolitan area. Kansas City has earned a reputation for being one of the best places to live in the country with its affordable cost of living, low crime rates, friendly atmosphere and vibrant downtown area. Its flourishing arts and culture scene is complemented by an active professional sports scene and dynamic nightlife. As the third largest city in the state of Kansas, Kansas City, often abbreviated KCK, is part of the greater metropolitan area neighboring cities on both sides of the state line of Kansas and Missouri. From world-class racing and grand-scale shopping to distinctive dining and lodging, Kansas City offers visitors unique experiences. The city has a number of buildings that are listed on the National Register of Historic Places, such as the Rosedale Arch and the Argentine Carnegie Library. KCK is the home to the General Motors Fairfax Assembly plant, which manufactures the Chevrolet Malibu and the Buick LaCrosse. The largest employer is the University of Kansas Hospital along with the adjoining University of Kansas Medical Center, which includes the schools of medicine, nursing, and allied health Economy Once an agricultural center, this large, affluent, autonomous and culturally rich city has been experiencing phenomenal corporate attraction and business growth. Companies across a range of economic sectors have chosen Kansas City as the location for their headquarters, manufacturing and logistics facilities, research and development operations, and shared service centers; Sprint, Merriam based Seaboard Corp., O Reilly Automotive and Applebee s are all headquartered in KC. Major employers and business enterprises in Kansas City are AT&T, Ford Motor Company, Honeywell International Inc., DST Systems Inc., Hallmark Cards, Inc., Health Midwest, Sprint, among more. Recent years have shown an emerging major urban redevelopment and renewal effort, affixed by a new Federal Reserve and IRS complex, new headquarters for H&R Block and a new entertainment district. In addition to these developments, the increasing renovations of older buildings are bringing life to the area and pushing towards increased construction of residential units in the city. 14 DICK S SPORTING GOODS & PETSMART
CONFIDENTIALITY AGREEMENT & DISCLAIMER This Offering Memorandum contains select information pertaining to the business and affairs of Dick s Sporting Goods & PetSmart located at 4204 N Belt Hwy, Saint Joseph, MO 64506 ( 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. 15 DICK S SPORTING GOODS & PETSMART
OFFERING MEMORANDUM DICK S SPORTING GOODS & PETSMART 4204 N Belt Hwy JOHNNY BLUE CRAIG Associate, Shopping Centers DIR: (214) 692-2068 MOB: (850) 509-8733 LIC No.SL3331383 (FL) Johnnyblue.Craig@matthews.com EXCLUSIVELY LISTED BY SCOTT HENARD SVP & Regional Director Shopping Centers DIR: (214) 692-2046 MOB: (972) 998-7373 LIC No. 684841(TX) Scott.Henard@matthews.com KYLE MATTHEWS Broker of Record LIC # 2017010164 (MO)