OFFERING MEMORANDUM 1506 Southlake Parkway Morrow, GA 30260
03 INVESTMENT SUMMARY Investment Summary Investment Highlights 05 10 AREA OVERVIEW Location Map Aerial & Retail Maps City Overview TENANT OVERVIEW Tenant Profile Clifton McCrory Lic. # 99847 Exclusively Marketed By: Sands Investment Group Max Freedman Lic. # 644481 Dan Hoogesteger Lic. # 01376759 Andrew Ackerman Lic. # 311619 12 LEASE ABSTRACT Lease Summary Rent Roll In Cooperation with Sands Investment Group Atlanta, LLC BoR: Andrew Ackerman - Lic # H-67374 843.779.8255 DIRECT clifton@signnn.com 512.766.2711 DIRECT max@signnn.com 310.853.1419 DIRECT dan@signnn.com 770.626.0445 DIRECT andrew@signnn.com 2018 Sands Investment Group (SIG). The information contained in this Offering Memorandum, has been obtained from sources believed to be reliable. Sands Investment Group does not doubt its accuracy, however, Sands Investment Group makes no guarantee, representation or warranty about the accuracy contained herein. It is the responsibility of each individual to conduct thorough due diligence on any and all information that is passed on about the property to determine it s accuracy and completeness. Any and all projections, market assumptions and cash flow analysis are used to help determine a potential overview on the property, however there is no guarantee or assurance these projections, market assumptions and cash flow analysis are subject to change with property and market conditions. Sands Investment Group encourages all potential interested buyers to seek advice from your tax, financial and legal advisors before making any real estate purchase and transaction.
INVESTMENT SUMMARY PROPERTY SUMMARY ADDRESS 1506 Southlake Parkway Morrow, GA 30260 COUNTY Clayton BUILDING AREA 10,241 SF LAND AREA 1.16 Acres BUILT 1988 / 2012 OFFERING SUMMARY PRICE $2,162,138 CAP 8.00% NOI $172,971 PRICE PER SF $211.13 YEARS REMAINING 5 Years 3
INVESTMENT HIGHLIGHTS 44 100% Leased Building at $16.89 Per Square Foot Annually Building Cost at $211 Per Square Foot First Signalized Corner off Hwy 75 with Traffic Counts Over 35,500 VPD on Jonesboro Rd Outparcel to Burlington and TJ Maxx Anchored Power Center; and Entrance of the Southlake Mall (Sears, Macy's) 16 Miles South of Downtown Atlanta; or a 20 Minute Drive Key Intersection In Front of Costco Within Walking Distance of Over 720 Multi-Family Units (Average Occupancy of 97.2%) and Over 430,000 SF of Office Space (Average Occupancy of 96.4%) Select Nearby Tenants: Publix Supermarket, Burlington, T.J. Maxx, Smoothie King, Finish Line, David s Bridal, Ross Dress for Less, Game Stop, Carrabba s Italian Grill, TGI Fridays, Strayer University and The Interactive College of Technology
LOCATION MAP 55
AERIAL MAP Phantom Fireworks Jonesboro Rd Southlake Pkwy Southlake Festival Shopping Center 6
RETAIL MAP Mt. Zion Rd Jonesboro Rd Mt. Zion Prkwy 57
AREA OVERVIEW Tal-Kno C M Food Shop SUBJECT PROPERTY DEMOGRAPHICS 1 Mile 3 Mile 5 Mile Population 5,015 76,060 189,554 58 Average Household Income $49,979 $48,976 $49,864
AREA OVERVIEW MORROW, GA ABOUT THE CITY Morrow is a city in Clayton County, Georgia with a population of 7,276 in 2016. Morrow is part of the Atlanta Metropolitan Area, which is the most populous metro area in Georgia and the ninthlargest metropolitan statistical area (MSA) in the United States. The Georgia Metropolitan Statistical Area is included in the Atlanta-Sandy Springs-Gainesville, Georgia-Alabama Combined Statistical Area. This CSA spans up to 39 counties in north Georgia with about 6.3 million people making this the third largest metropolitan region after Greater Washington and South Florida. CLAYTON COURTHOUSE ECONOMY The City of Morrow is constantly welcoming new business and commercial opportunities into the area making this a great commuter community for Atlanta. Atlanta is rated a "beta(+) world city that exerts a moderate impact on global commerce, finance, research, technology, education, media, art, and entertainment. It ranks 38th among world cities and 10th in the nation with a gross domestic product of $320 billion. Atlanta's economy is considered diverse, with dominant sectors that include logistics, professional and business services, media operations and information technology. ATLANTA SKYLINE CULTURE & CONTEMPORARY LIFE 119 SPIVEY HALL LONE STAR PARK Originally a small railway stop between Jonesboro and Atlanta, Morrow has grown to a vibrant commercial hub, offering visitors unique shopping, dining and entertainment venues, as well as convenience to nearby Hartsfield-Jackson International Airport and the cosmopolitan amenities of Atlanta. Visitors can seek out their own history at the National Archives at Atlanta and the Georgia Archives where the famous, infamous and anonymous of years past may be found. In the mood for a concert? Head to Spivey Hall, a world-renowned performance facility that has presented the finest in jazz and classical music to metro Atlanta since 1993. Even with its close proximity to Atlanta, visitors will still find lots of nature and outdoor adventures.
TENANT OVERVIEW Mattress Firm Inc. is an American retailing company and mattress store chain founded on July 4, 1986. The headquarters of the company is located in Houston, Texas. Mattress Firm acquired Sleep Train in 2014. In September 2016, Steinhoff International Holdings N.V. completed it's acquisition of Mattress Firm and Mattress Firm is now a subsidiary of Steinhoff. As of August 2016, Steinhoff held retailing activities in 30 countries, counting 6,500 retail outlets belonging to 40 different brands, and employing about 90,000 employees. 60% of the company's revenue, and 2/3 of its benefits, are made in Europe. Steinhoff expanded into the United States market on August 7, 2016. Steinhoff's South African brands include HiFi Corp, Pennypinchers, Timbercity, Pep, Ackermans, Shoe City, Incredible Connection, and Unitrans. In the UK, Steinhoff owns the high street brands Cargo, Harveys Furniture, Bensons for Beds, Sleepmaster and Pep&Co. 10 COMPANY TYPE Subsidiary FOUNDED 1986 # OF LOCATIONS 3,600 NET WORTH $50 Million HEADQUARTERS Houston, TX WEBSITE mattressfirm.com
TENANT OVERVIEW The acquisition of MFRM created one of the world s largest multi-brand mattress retail distribution networks and facilitate Steinhoff s entry into the US market. MFRM provides an attractive value proposition: 11 Compelling industry dynamics, with long term stability and consistent growth A best-in-class specialty retailer (25% market share) with a national retail and distribution footprint and leading market position in the US A proven track record of driving profitability, and a strong free cash flow to support growth Opportunity for growth through store expansion, market consolidation and vertical integration A highly experienced and entrepreneurial management team Broader global geographical spread for the combined group, and greater revenue and profit exposure to US dollars creating a natural hedge to the group s sourcing costs
LEASE ABSTRACT LEASE SUMMARY TENANT PREMISES Mattress Firm, Inc. A Building of Approximately 10,241 SF LEASE COMMENCEMENT April 2, 2012 LEASE EXPIRATION April 30, 2023 1212 LEASE TERM REMAINING RENEWAL OPTIONS RENT INCREASES LEASE TYPE USE PROPERTY TAXES INSURANCE COMMON AREA ROOF STRUCTURE REPAIRS & MAINTENANCE HVAC UTILITIES 5 Years 3 x 5 Years 10% Every 5 Years Double Net (NN) Retail Tenant s Responsibility Tenant s Responsibility Tenant s Responsibility Tenant Responsible for All Repairs Landlord s Responsibility Tenant s Responsibility Tenant s Responsibility Tenant s Responsibility
RENT ROLL TENANT NAME SQUARE FOOTAGE % OF TOTAL ANNUAL BASE RENT RENT PER SF RENTAL INCREASES LEASE BEGIN LEASE END OPTIONS Mattress Firm, Inc. 10,241 SF 100% $172,971 $16.89 10% Every 5 Years 04/02/2012 04/30/2023 3 x 5 Years 1313
CONFIDENTIALLY AGREEMENT 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 Sands Investment Group and should not be made available to any other person or entity without the written consent of Sands Investment Group. This Offering Memorandum 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, 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 Offering Memorandum has been obtained from sources we believe to be reliable; however, Sands Investment Group has not verified, and will not verify, any of the information contained herein, nor has Sands Investment Group 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. By receipt of this Memorandum, you agree that this Memorandum and its contents are of confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose its contents in any manner detrimental to the interest of the Owner. You also agree that by accepting this Memorandum you agree to release Sands Investment Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property. 14
Exclusively Marketed By: Clifton McCrory Lic. # 99847 843.779.8255 DIRECT clifton@signnn.com Max Freedman Lic. # 644481 512.766.2711 DIRECT max@signnn.com Dan Hoogesteger Lic. # 01376759 310.853.1419 DIRECT dan@signnn.com Andrew Ackerman Lic. # 311619 770.626.0445 DIRECT andrew@signnn.com Sands Investment Group 1017 Chuck Dawley Blvd, Suite 200 Mt. Pleasant, SC 29464 844.4.SIG.NNN www.signnn.com In Cooperation with Sands Investment Group Atlanta, LLC BoR: Andrew Ackerman - Lic # H-67374