Offering Memorandum AMC Classic/Carmike on Six Acres 5716 Towson Avenue Fort Smith, AR
AMC EXECUTIVE SUMMARY OFFERING SUMMARY Price $2,000,000 Net Operating Income $229,700 Capitalization Rate Current 11.49% Price / SF $41.99 Rent / SF $4.82 Lease Type Absolute Net Gross Leasable Area 47,634 SF Year Built / Renovated 1987 / 2017 Lot Size 6.17 acre(s) FINANCING Down Payment All Cash Net Cash Flow 11.49% / $229,700 Cash on Cash Return 11.49% OFFERING SUMMARY MAJOR EMPLOYERS EMPLOYER # OF EMPLOYEES * Beverly 6,040 Geary Property Holdings LLC 5,009 Fieldview Manor 2,925 Sparks Health System 2,549 Rheem Air Conditioning Div 2,400 Prostock Parts 1,800 Rheem & Ruud & Weatherking 1,700 Sparks Medical Plaza 1,500 Beverly Healthcare 1,421 Mercy Hospital 1,400 Ssw Holding Company Inc 1,300 Vantage Healthcare Corporation 1,250 DEMOGRAPHICS 1-Miles 3-Miles 5-Miles 2016 Estimate Pop 4,808 30,658 68,466 2010 Census Pop 4,718 30,045 67,774 2016 Estimate HH 2,076 13,291 28,412 2010 Census HH 2,038 12,994 28,109 Median HH Income $33,066 $40,868 $39,150 Per Capita Income $17,030 $24,711 $24,331 Average HH Income $38,753 $56,498 $58,017 * # of Employees based on 5 mile radius 2 #
AMC INVESTMENT OVERVIEW OFFERING SUMMARY Marcus & Millichap is pleased to exclusively offer for sale, this single-tenant net-leased investment property located in Fort Smith, Arkansas. This is an absolute net-leased property with the tenant responsible for direct payment of property tax, insurance, maintenance and repairs. This AMC movie theater is operating under a triple net-lease with over three years remaining on the lease. The property offers investors the opportunity to acquire an asset at a low price per square foot ($41.98) for a 47,634-squarefoot building on 6.17 acres. The subject property is a state-of-the-art movie theater with millions of dollars worth of projection equipment, including digital and 3-D projection, stadium seating. A savvy investor will receive a strong double-digit return on investment while gaining positive leverage with the use of current low interest debt. The city of Fort Smith is the hub of a diverse economy, rich history and a promising future. Home to Arkansas oldest symphony orchestra and the state s oldest continuously running volunteer little theater, Fort Smith is also steeped in Old West lore, from books and films like True Grit, to some colorful real world characters like Belle Starr, Judge Isaac C. Parker, U.S. Deputy Marshal Bass Reeves and the Founder of the U.S. Army Rangers, General William O. Darby. The U.S. Army established Fort Smith as a military outpost in 1817. Incorporated on December 24, 1842, the city still boasts an active military presence with the Fort Chaffee Maneuver Training Center, operated by the Arkansas National Guard, and the 188th Fighter Wing, Arkansas Air National Guard. Forbes magazine recently named Fort Smith as the number one city in America for cost of living. The publication also highlighted Fort Smith for its highest-paying tech jobs in the nation. Fort Smith has long been a regional manufacturing center, with major plants located in the city operated by Whirlpool Corporation, Rheem, Trane, Georgia-Pacific, Gerber, Planters Peanuts and others. Fort Smith is home to several corporations including Baldor Electric Company, Arkansas Best Corporation, Golden Living (Formerly Beverly Enterprises, Inc.), one of the largest nursing home health care providers in the nation and poultry company OK Foods. INVESTMENT HIGHLIGHTS Absolute NNN Lease Investment Opportunity with No Landlord Responsibilities Tenant Recently Extended the Lease Showing Commitment to the Site Recently Upgraded to a 14 Screen Theater with Renovations for Luxury Food Options for Patrons AMC is the Largest Movie Theater Chain in the U.S Low Price per a square foot (41.98) for a 47,634 building on 6.17 acres # 3
PROPERTY AMC NAME PRICING AND VALUATION TENANT SUMMARY MATRIX AMC Entertainment Holdings Inc. CREDIT RATING: C2 www.fdreports.com www.creditntell.com December 31, 2016 General Information Key Personnel Address 920 Main Street, Kansas City, Missouri, 64105, United States Chief Financial Officer Chief Executive Officer & President Craig R. Ramsey Adam M Aron Website www.amctheatres.com Store Base Store Count 906 TTM Sales $3,235,846,000 Financial Markets Stock Ticker AMC Current Price $29.50 as of 5/4/17 52 Week High/Low $35.65 / $25.75 AMC Entertainment shines when the lights go down. The company, whose initials once stood for American Multi-Cinema, is the #1 movie theater chain in the US and the world. It owns, partially owns, or operates about 660 theaters with 8,200 screens, most of which are in megaplexes (units with more than 12 screens and stadium seating). It also has a significant presence in Europe through London-based subsidiary. Originally, Wanda Group bought AMC in 2012 and took the company public again in 2013. AMC acquired Odeon and Carmike and in 2016 as well as Nordic Cinema Group, which will swell its total theater pool to over 1000 locations. Fiscal Year Ended December 31, 2016 # 4
PROPERTY AMC NAME PRICING AND LOCATION VALUATION TENANT OVERVIEW SUMMARY MATRIX AMC 14: 5716 Towson Ave, Fort Smith, AR 72901 Historic Sales 2000-2014 Year Revenue 2000 $1,675,659 2001 $1,888,368 2002 $1,949,581 2003 $2,384,709 2004 $2,007,062 2005 $2,395,426 2006 $1,731,184 2007 $1,296,225 2008 $1,280,848 2009 $1,472,747 2010 $1,439,385 2011 $1,475,064 2012 $1,377,979 2013 $1,409,007 2014 $1,344,253 Absolute NNN Lease Investment Tenant Recently Extended the Lease Low Price per Square Foot on Six acre s Recently Upgraded from an 8 Screen Movie Theater to a 14 Screen Theater in 2000 Low Rent per Square Foot $4.82/Foot AMC is the Largest Movie Theater Operator in the U.S. Marcus & Millichap is pleased to present an AMC Movie Theater on a NNN lease located at 5716 Towson Avenue Fort Smith, Arkansas. The subject property is an 47,634-square foot building situated on a 6.17 acre lot. # 5
PROPERTY AMC NAME 5716 Towson Ave, Fort Smith, AR 72901 PRICING REGIONAL AND LOCATION VALUATION TENANT AND LOCAL OVERVIEW SUMMARY MATRIX MAP # 6
AMC AERIAL PHOTO 7
AMC PROPERTY SUMMARY OFFERING SUMMARY NOTES # 8
PROPERTY AMC NAME Created on May 2017 POPULATION 1 Miles 3 Miles 5 Miles 2021 Projection Total Population 4,956 31,424 69,474 2016 Estimate Total Population 4,808 30,658 68,466 2010 Census Total Population 4,718 30,045 67,774 2000 Census Total Population 4,196 27,461 64,378 Current Daytime Population 2016 Estimate 8,369 44,074 103,983 HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2021 Projection Total Households 2,145 13,716 29,023 2016 Estimate Total Households 2,076 13,291 28,412 Average (Mean) Household Size 2.29 2.30 2.35 2010 Census Total Households 2,038 12,994 28,109 2000 Census Total Households 1,832 11,885 26,685 Occupied Units 2021 Projection 2,145 13,716 29,023 2016 Estimate 2,246 14,551 31,628 HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2016 Estimate $150,000 or More 0.19% 3.10% 3.66% $100,000 - $149,000 3.19% 7.68% 7.75% $75,000 - $99,999 6.25% 9.13% 8.48% $50,000 - $74,999 16.96% 18.47% 18.06% $35,000 - $49,999 20.01% 17.74% 15.59% Under $35,000 53.29% 43.19% 45.55% Average Household Income $38,753 $56,498 $58,017 Median Household Income $33,066 $40,868 $39,150 Per Capita Income $17,030 $24,711 $24,331 MARKETING DEMOGRAPHICS TEAM HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles Total Average Household Retail Expenditure $44,193 $51,086 $50,506 Consumer Expenditure Top 10 Categories Housing $12,580 $14,213 $14,120 Transportation $8,902 $9,730 $9,578 Shelter $7,015 $7,921 $7,853 Food $5,113 $5,732 $5,650 Utilities $3,461 $3,700 $3,697 Health Care $3,100 $3,702 $3,650 Personal Insurance and Pensions $2,995 $3,981 $3,902 Entertainment $1,878 $2,242 $2,204 Cash Contributions $1,162 $1,480 $1,469 Apparel $1,085 $1,275 $1,271 POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age 2016 Estimate Total Population 4,808 30,658 68,466 Under 20 24.60% 25.12% 26.04% 20 to 34 Years 25.07% 21.45% 22.09% 35 to 39 Years 6.23% 6.18% 5.98% 40 to 49 Years 13.04% 12.75% 12.42% 50 to 64 Years 17.59% 19.35% 19.13% Age 65+ 13.47% 15.13% 14.35% Median Age 35.24 37.73 36.53 Population 25+ by Education Level 2016 Estimate Population Age 25+ 3,226 20,858 45,304 Elementary (0-8) 4.63% 2.90% 4.62% Some High School (9-11) 10.78% 8.71% 9.84% High School Graduate (12) 44.28% 34.78% 32.64% Some College (13-15) 20.37% 23.05% 22.35% Associate Degree Only 7.28% 7.94% 7.61% Bachelors Degree Only 6.37% 14.31% 13.85% Graduate Degree 3.20% 7.30% 8.12% Source: 2016 Experian 9
PROPERTY AMC NAME MARKETING DEMOGRAPHICS TEAM Population In 2016, the population in your selected geography is 4,808. The population has changed by 14.59% since 2000. It is estimated that the population in your area will be 4,956.00 five years from now, which represents a change of 3.08% from the current year. The current population is 49.08% male and 50.92% female. The median age of the population in your area is 35.24, compare this to the US average which is 37.68. The population density in your area is 1,529.93 people per square mile. Race and Ethnicity The current year racial makeup of your selected area is as follows: 76.09% White, 7.40% Black, 0.13% Native American and 4.23% Asian/Pacific Islander. Compare these to US averages which are: 70.77% White, 12.80% Black, 0.19% Native American and 5.36% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 8.83% of the current year population in your selected area. Compare this to the US average of 17.65%. Households There are currently 2,076 households in your selected geography. The number of households has changed by 13.32% since 2000. It is estimated that the number of households in your area will be 2,145 five years from now, which represents a change of 3.32% from the current year. The average household size in your area is 2.29 persons. Housing The median housing value in your area was $90,194 in 2016, compare this to the US average of $187,181. In 2000, there were 925 owner occupied housing units in your area and there were 907 renter occupied housing units in your area. The median rent at the time was $299. Income In 2016, the median household income for your selected geography is $33,066, compare this to the US average which is currently $54,505. The median household income for your area has changed by 25.28% since 2000. It is estimated that the median household income in your area will be $36,345 five years from now, which represents a change of 9.92% from the current year. Employment In 2016, there are 2,880 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 42.67% of employees are employed in white-collar occupations in this geography, and 58.92% are employed in blue-collar occupations. In 2016, unemployment in this area is 6.80%. In 2000, the average time traveled to work was 15.00 minutes. The current year per capita income in your area is $17,030, compare this to the US average, which is $29,962. The current year average household income in your area is $38,753, compare this to the US average which is $78,425. Source: 2016 Experian 10
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E Confidentiality and 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 prepared 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 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, 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, 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â 2017 Marcus & Millichap. All rights reserved. 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. AMC Fort Smith, AR ACT ID Y0300165 Clarence Cropper Broker of Record License: PB00007164
N E T L E A S E D D I S C L A I M E R Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: 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.