EXCLUSIVE OFFERING $1,250,000 EXP DALLAS 214.522.7200 JOE CAPUTO joe@exp1031.com BOB MOORHEAD bob@exp1031.com property. 2,620+ SF building on 0.37+ acre site. Convenience store only, no gas. tenant. Lessee: 7-Eleven, Inc. Operates in 18 countries and employs over 39,000 people. Founded in 1927 and headquartered in Dallas, Texas. Generated $76.6 billion in revenues in 2011. S&P Rated AA-. Largest chain store operator worldwide with approximately 50,000 locations. lease structure. New, 15-year, corporate ground lease with 4, 5-year options to renew. Rent increases 66% in year 4. location. 7-Eleven is located at the corner of Page Street (14,818 Cars / Day) and Merrimac Trail (17,772 Cars / Day). The subject property is located in an established retail trade area that includes anchor tenants such as Food Lion and Farm Fresh. Other nearby retailers include Starbucks, Family Dollar, Dollar General, CVS, SunTrust, McDonald s, Dunkin Donuts, AutoZone, Advance Auto, Domino s Pizza, and EconoLodge. The subject property also benefits from tourism traffic due to its proximity to Colonial Williamsburg (1.7 million annual visitors). Site is 1.5-miles west of the College of William & Mary (8,258 Students). Located in Hampton Roads MSA (Population: 1,699,925).
Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3-4: PAGE 5: PAGE 6: PAGE 7: PAGE 8-9: PAGE 10: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT LEASE OVERVIEW SITE PLAN AERIAL PHOTO LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS SUBJECT PROPERTY PRIOR TO SITE RENOVATION RENDERING Disclaimer EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located at the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent. Listed in association with virginia broker of record: Hunt Gunter The Wilton companies 2
Investment overview PRICE: $1,250,000 CAP RATE (YEAR 4): 6.64% CAP RATE (15-YEAR BLENDED): 6.13% Lease overview Initial Lease Term: 15-Years, Plus 4, 5-Year Options to Renew Projected Rent Commencement: January 2014 Projected Expiration: January 2029 Lease Type: Corporate Ground Lease NOI (YEAR 1): $50,000 Rent Increases: 66% in Year 4 10% in Each Option Period NOI (YEAR 4): $83,000 BUILDING AREA: 2,620+ Square Feet LAND AREA: 0.37+ Acres YEAR BUILT: 2014 OWNERSHIP: Fee Simple Interest OCCUPANCY: 100% Tenant overview 7-Eleven, Inc., a Texas corporation Year 1-3 Annual Rent (Current): $50,000 Year 4-10 Annual Rent: $83,000 Year 11-15 Annual Rent: $83,691 Year 16-20 Annual Rent (Option 1): $92,061 Year 21-25 Annual Rent (Option 2): $101,267 Year 26-30 Annual Rent (Option 3): $111,393 Year 31-35 Annual Rent (Option 4): $122,532 Tenant s Right of First Offer: After Lease Year 1 7-ELEVEN www.7-eleven.com S&P Rating: AA- The brand name 7-Eleven is now part of an international chain of convenience stores, operating under Seven-Eleven Japan Co., Ltd., primarily operating as a franchise. It is the largest chain store operator with approximately 50,000 locations operating around the world, surpassing the previous record-holder McDonald s Corporation in 2007. Its stores are located in eighteen countries, with its largest markets being Japan, the United States, Canada, the Philippines, Hong Kong, Taiwan, Malaysia and Thailand. 7-Eleven, Inc. as a former U.S.-originating company, is a subsidiary of Seven-Eleven Japan Co., Ltd, which in turn is owned by Seven & I Holdings Co. of Japan. The US chain has its headquarters in downtown Dallas, Texas. The company operates, franchises and licenses more than 8,600 stores in the U.S. and Canada. Of the more than 7,700 stores the company operates and franchises in the United States, approximately 6,000 are franchised. Outside of the U.S. and Canada, there are more than 42,300 7-Eleven and other convenience stores in Japan, Taiwan, Thailand, South Korea, China, Malaysia, Mexico, Singapore, Australia, Philippines, Indonesia, Norway, Sweden and Denmark. SUBJECT PROPERTY 7-Eleven also is one of the nation s largest independent gasoline retailers. Its company s name was changed from The Southland Corporation to 7-Eleven, Inc. after approval PRIOR TO PANDA EXPRESS EXPANSION by shareholders on April 28, 1999. 7-Eleven focuses on meeting the needs of convenience-oriented customers by providing a broad selection of fresh, high-quality products and services at everyday fair prices, speedy transactions and a clean and friendly shopping environment. Each store s selection of about 2,500 different products and services is tailored to meet the needs and preferences of local customers. Stores typically vary in size from 2,400 to 3,000 square feet and are most often located on corners for great visibility and easy access. 7- Eleven was No. 2 on Forbes magazine's "Top Franchise for the Money" for 2012, No. 1 in Store Growth by Convenience Store News for 2012, and No. 3 on Forbes magazine's "Top 20 Franchises to Start" for 2011. 3
Investment overview 7-Eleven Williamsburg, VA - Current Rent Structure Lease Year Rent 1 $50,000.00 2 $50,000.00 3 $50,000.00 4 $83,000.00 5 $83,000.00 6 $83,000.00 7 $83,000.00 8 $83,000.00 9 $83,000.00 10 $83,000.00 11 $83,691.00 12 $83,691.00 13 $83,691.00 14 $83,691.00 15 $83,691.00 Blended Rent Years 1-10 $73,100.00 Blended Rent Years 1-15 $76,630.33 Example - Traditional Rent Structure Lease Year Rent 1 $50,000.00 2 $50,000.00 3 $50,000.00 4 $50,000.00 5 $50,000.00 6 $55,000.00 7 $55,000.00 8 $55,000.00 9 $55,000.00 10 $55,000.00 11 $60,500.00 12 $60,500.00 13 $60,500.00 14 $60,500.00 15 $60,500.00 Blended Rent Years 1-10 $52,500.00 Blended Rent Years 1-15 $55,166.67 Year 1 Rent Pricing $1,250,000.00 CAPs based on price above Year 4 Rent CAP 6.64% Blended 10 Year CAP 5.85% Blended 15 Year CAP 6.13% Year 1 Rent Pricing $1,000,000.00 CAPs based on price above Year 4 Rent CAP 5.00% Blended 10 Year CAP 5.25% Blended 15 Year CAP 5.52% 4
Aerial photo College of William & Mary 5
Aerial photo College of William & Mary 6
SITE PLAN 7
Location overview IMMEDIATE TRADE AREA 7-Eleven is located at the corner of Page Street (14,818 Cars / Day) and 2 nd Street. Both roads are main arterial roads which gives the site exceptional visibility and accessibility. The subject property is located in an established retail trade area that includes anchor tenants such as Food Lion and Farm Fresh. Other nearby retailers include Starbucks, Family Dollar, Dollar General, CVS, SunTrust, McDonald s, Dunkin Donuts, AutoZone, Advance Auto, Domino s Pizza, and EconoLodge. The subject property also benefits from tourism traffic due to its proximity to Colonial Williamsburg. This attraction draws 1.7 million annual visitors and encompasses 301-acres of buildings dating from 1699-1780. The Golden Horsehoe Golf Course resort is located just south of the subject property. This resort boasts 45-holes and has drawn accolades such as GOLF Magazine s Top 500 Golf Holes in the World, and Top 100 Resort Courses in America by Golfweek Magazine. The globally renowned and historic College of William & Mary is 1.5-miles west of 7-Eleven. Williamsburg has been the home to The College of William & Mary (8,258 Students) since its founding in 1693, making it America's 2nd oldest college (behind Harvard University). In the 2012 "America's Top Colleges" ranking by Forbes, William & Mary is the 2nd highest ranked public university. As of 2011, William & Mary's fiscal year endowment totaled $624.7 million. WILLIAMSBURG, VA Williamsburg is located in the southeast corner of Virginia and is part of the Virginia Beach-Norfolk-Newport News, VA-NC Metropolitan Statistical Area (MSA). This MSA is more commonly know as Hampton Roads. Williamsburg currently has a population of 14,068. The local economy is anchored by the tourism industry and education industries. The city's tourism-based economy is driven by Colonial Williamsburg, the restored historic area of the city. Along with nearby Jamestown and Yorktown, Williamsburg forms part of the Historic Triangle, which attracts more than 4 million tourists each year. Other highlights in the city include The Williamsburg Winery (Virginia's largest winery), the Williamsburg Botanical Garden, and the National Center for State Courts. Also located in Williamsburg are two major theme parks, Busch Gardens Williamsburg and Water Country USA. The tourism industry compliments strong retail development in Williamsburg. This convergence is particularly visible with the Williamsburg Pottery Factory shopping center which is 3-miles north of the subject property. This 200-acre development attracts over 3 million visitors annually. HAMPTON ROADS Hampton Roads consists of 16 counties in southeast Virginia around the junction of the James River and the Chesapeake Bay. The area has a population of 1,699,925 making it the 37 th largest metropolitan area in the country. The harbor was the key to the Hampton Roads area's growth, both on land and in water-related activities and events. Hampton Roads has a dynamic, diversified economy and is home to 4 Fortune 500 companies. Representing the food industry, transportation, retail and shipbuilding, these 4 companies are located in Smithfield, Norfolk, Chesapeake and Newport News and include Smithfield Foods, Norfolk Southern, Dollar Tree, and Huntington Ingalls Industries. The shipping industry also plays a prominent role in the local economy. Hampton Roads has become known as the "world's greatest natural harbor". The port is located only 18 miles (29 km) from open ocean on one of the world's deepest, natural ice-free harbors. Since 1989, Hampton Roads has been the mid-atlantic leader in U.S. waterborne foreign commerce and is ranked 2 nd nationally behind the Port of South Louisiana based on export tonnage. When import and export tonnage are combined, the Port of Hampton Roads ranks as the 3 rd largest port in the country (following the ports of New Orleans/South Louisiana and Houston). Additionally, the Hampton Roads area has the largest concentration of military bases and facilities of any metropolitan area in the world. Nearly one-fourth of the nation s active-duty military personnel are stationed in Hampton Roads, and 45% of the region's $81 billion gross regional output is Defense-related. Hampton Roads is a chief rendezvous of the United States Navy, and the area is home to the Allied Command Transformation, which is the only major military command of the North Atlantic Treaty Organization (NATO) on U.S. soil. Retail growth in the Hampton Roads area has accelerated in recent decades. Chesapeake Square Mall was constructed in Chesapeake, VA in 1989, near the border of Suffolk, Virginia, and has spawned a number of shopping centers in the surrounding areas. MacArthur Center, opened in 1999, has 1,100,000 square feet and 140 stores. MacArthur Center opened in March 1999, which made downtown Norfolk a prime shoppers destination, with the region's first Nordstrom department store anchor. MacArthur Center is compared to other downtown malls, such as Baltimore's Harborplace, Indianapolis' Circle Centre Mall, Atlanta's Lenox Square Mall and most comparably to The Fashion Centre at Pentagon City near Washington, D.C., in Arlington, Virginia. 8
Location map 9
Location map 10
Demographics Demographic snapshot Radius 1 Mile 3 Mile 5 Mile Population: 2017 Projection 4,191 31,714 59,667 2012 Estimate 3,977 29,660 56,124 2010 Census 3,952 28,948 54,990 Growth 2012-2017 5.40% 6.90% 6.30% Growth 2010-2012 0.60% 2.50% 2.10% Households: 2017 Projection 1,747 11,800 23,382 2012 Estimate 1,668 10,869 21,811 2010 Census 1,653 10,534 21,301 Growth 2012-2017 4.70% 8.60% 7.20% Growth 2010-2012 0.90% 3.20% 2.40% Owner Occupied 653 6,448 13,902 Renter Occupied 1,015 4,421 7,909 2012 Avg Household Income $52,561 $87,609 $89,696 2012 Med Household Income $38,320 $59,263 $64,225 2012 Per Capita Income $22,485 $36,635 $37,389 2012 Households by Household Inc: Income Less than $15,000 266 954 1,566 Income $15,000 - $24,999 233 813 1,457 Income $25,000 - $34,999 263 1,145 2,068 Income $35,000 - $49,999 252 1,550 3,037 Income $50,000 - $74,999 330 2,081 4,206 Income $75,000 - $99,999 156 1,186 2,797 Income $100,000 - $149,999 90 1,379 3,357 Income $150,000 - $199,999 52 882 1,662 Income $200,000+ 26 879 1,659 DOWNTOWN NORFOLK, VA COLLEGE OF WILLIAM & MARY, WILLIAMSBURG, VA 11