FOR SALE FLOYD S STORES, INC. RETAIL LOCATIONS: 3650 Chester Ave, Bakersfield, CA 2020 S Chester Ave, Bakersfield, CA 555 Walker St, Shafter, CA REAL ESTATE TO BE SOLD SEPARATELY B R A U N W O R L D B I D. C O M
OFFERING MEMORANDUM THIS IS AN OFFERING MEMORANDUM intended solely for parties interested in purchasing the business, Floyd s Stores, Inc. ( Floyd s General Store ). This memorandum has been prepared by BRAUN ( BRAUN ). Although the Seller has reviewed this memorandum, it does not purport to be all-inclusive or contain all of the information that a potential investor may desire. Neither the seller, nor any of its members, officers, directors, employees or agents, nor BRAUN, nor broker, make any representation or warranty, expressed or implied, as to the accuracy or completeness of any of the information contained herein. The Seller and BRAUN disclaims any liability which may be based on such information, errors therein, or omissions therefrom. All financial data contained herein is unaudited. The information contained herein represents estimates based on assumptions considered reasonable under the circumstances. No representations or warranties, expressed or implied, are made that the actual results will conform to such projections. The three retail properties of Floyd s General Store are located at 3650 Chester Ave, Bakersfield CA, 2020 S Chester Ave, Bakersfield, CA and 555 Walker St, Shafter, CA. The real estate is offered for sale separately. Contact Braun Worldbid for details. PAGE 2
1 Floyd s General Store 2 Market Overview 3 Demographics 4 Information 800.784.5884 x1111 BraunWorldbid.com 1230 Rosecrans Ave. Suite 160 Manhattan Beach, CA 90266 FAX: 310.798.3123 Los Angeles San Francisco New York Milwaukee Cleveland Sun Valley Monterey BRE #01912556
Floyd s General Store 1In business since 1952 PAGE 4 Information Plans Demographics Financials Market Demographics Overview
FLOYD S GENERAL STORE A BAKERSFIELD INSTITUTION Continuously operating since 1952, the well-established Floyd s General Store chain of hardware stores is available for sale for the first time since the Meyer family purchased the four locations in 1994. Floyd s has been increasingly successful over its 65-year history, thanks in no small part to each location being an Ace Hardware co-op; Ace s business model and records sales have been referred to as Good. Surprisingly good by Forbes magazine.* What sets Floyd s apart from other big box retail and hardware stores? According to Kevin White, Operations/Purchasing Manager OUR EMPLOYEES KNOW OUR CUSTOMER S NAMES... PEOPLE COME IN ALL THE TIME AND TELL US THEY CAME HERE WITH THEIR GRANDFATHER TO GET THEIR FIRST FISHING LICENSE - TERRY MEYER and 26-year employee, it s the unique knowledge and inventory that just aren t available in some other retail locations. We do sell your typical hardware store inventory, but so much more, including clothing, sporting goods, hardware and paint. We re really more like a broad based department store than just a home improvement store. The long-term success of Floyd s and its rich involvement in the Bakersfield community present a prime opportunity for the right new owner(s) to succeed the Meyer family with ownership in Floyd s General Stores. * How Ace Hardware Turned Corner Stores Into A $4.7 Billion Co-Op, February 11, 2015 FLOYD S GENERAL STORE - 2020 S CHESTER, BAKERSFIELD PAGE 5
FLOYD S GENERAL STORE A TREMENDOUS INVESTMENT OPPORTUNITY 3 retail locations: 3650 Chester Ave, Bakersfield - since 1952 2020 S Chester Ave, Bakersfield - since 1954 555 Walker St, Shafter - since 1988 All locations are Ace Hardware co-ops; Ace s 2014 revenues topped $4.7 billion. Long-tenured management staff Very high retention rate for employees A 65+ year-long track record of success in the Bakersfield community Floyd s 2014 net sales: $9,067,809. Buyers may view extensive financial information on Floyd Stores, Inc. upon receipt of executed non-disclosure agreement. PAGE 6
FLOYDS GENERAL STORE RETAIL LOCATIONS LOCATION #3 555 WALKER ST, SHAFTER LOCATION #2 2020 S CHESTER AVE, BAKERSFIELD LOCATION #1 3650 CHESTER AVE, BAKERSFIELD PAGE 7
LOCATION #1 3650 CHESTER AVE, BAKERSFIELD PROPERTY INFORMATION Location: 3650 Chester Ave, Bakersfield, CA APN: #120-060-22 Building Size: 18,237 SF Land Size: 54,500 SF Fenced yard w/ security beams Continuously operating since 1952 Prime location in the heart of Bakersfield Annual Average Daily Traffic: 15,415* INVENTORY AT COST: $750,000 FF&E: $30,000 TOTAL: $780,000 * Kern Council of Governments, kerncog.com PAGE 8
LOCATION #2 2020 S CHESTER AVE, BAKERSFIELD PROPERTY INFORMATION Location: 2020 S Chester Ave, Bakersfield, CA APN: #166-062-05, 166-062-06, 166-062-07, 166-071- 08, 166-071-09, 166-071-10, 166-071-11 Building Size: 18,941 SF Land Size: 98,990 SF Includes 5,071 SF mower rental shop HVAC Continuously operating since 1954 Annual Average Daily Traffic: 15,340* INVENTORY AT COST: $950,000 FF&E: $40,000 TOTAL: $990,000 * Kern Council of Governments, kerncog.com PAGE 9
LOCATION #3 555 WALKER ST, SHAFTER PROPERTY INFORMATION Location: 555 Walker St, Shafter, CA APN: #027-360-03 Building Size: 14,411 SF Land Size: 50,965 SF Continously operating since 1988 INVENTORY AT COST: $410,000 FF&E: $25,000 TOTAL: $435,000 PAGE 10
Market Overview 2Bakersfield Kern County PAGE 11 DOWNTOWN BAKERSFIELD S SKYLINE Information Plans Demographics Financials Market Demographics Overview
THE MARKET DOWNTOWN BAKERSFIELD Market Overview OVERVIEW Leasing and sales activity has been on an increase, vacancies are down, construction is up and land prices are up. Rental rates in the oil field sector have been holding, due to limited supply. Warehousing rents are increasing. Tenants for smaller warehouse and shop space are leasing and buying any product that comes available. The long term outlook for the central San Joaquin Valley remains strong due to the oil and AG industries. the oil companies remain active and the agricultural industry continues to expand the value added sector. With low cost housing and big box rental rates in the $.25 - $.37 NNN range, the central San Joaquin Valley will continue to get a strong look from distribution and manufacturing companies looking to for a one day turnaround to 35 million people. PAGE 12
Demographics 3Bakersfield PAGE 13 Information Plans Demographics Financials Market Demographics Overview
BAKERSFIELD DEMOGRAPHICS Bakersfield is a city in Southern California, United States near the southern end of the San Joaquin Valley in Kern County. The city is 110 miles north of Los Angeles and about the same distance south of Fresno. It is an inland city about 135 miles east of Pismo Beach on the Pacific Ocean. Bakersfield s population is around 350,000, making it the 9th largest city in California and the 52nd largest city in the United States. The city is also the county seat for Kern County, the third largest county in California by area. The total Bakersfield inner urban area, which includes East Bakersfield and Rosedale, has a population of about 464,000. Bakersfield is in Kern County which is generally considered part of Southern California and shares its southern border with Los Angeles County. However, many residents consider Bakersfield to be more a part of Central California as it is near Kings and Tulare counties and is a hub for agriculture and oil production. Bakersfield is the focal point of the larger Bakersfield-Delano, CA Metropolitan Statistical Area, which is coextensive with Kern County. In 2010, it had a population of 839,631, making it the 62nd largest metropolitan area in United States. Bakersfield has a very diverse economy. Kern County is the most productive oil producing county, and the fourth most productive agricultural county (by value) in the United States. Other industries include natural gas and other energy extraction, aerospace, mining, petroleum refining, manufacturing, distribution, food processing, and corporate/regional headquarters. Bakersfield has been known for being a fast-growing city and has seen its population more than triple over nearly 30 years from about 105,000 in 1980 to 347,000 in 2010. Kern County is a part of the highly productive San Joaquin Valley, and ranks in the top five most productive agricultural counties in the nation. Bakersfield serves as the home for both corporate and regional headquarters of companies engaged in these industries. Bakersfield has a rapidly-growing manufacturing and distribution sector. Several companies have moved to Bakersfield because of its inexpensive land and access to the rest of America, as well as international ports in both Los Angeles and Oakland. Other companies have opened regional offices and non-oil/agricultural businesses because of Bakersfield s and Kern County s business friendly policies, such as having no local utility or inventory taxes. In 2005 SR-99 (which passes through Bakersfield) was added to the FHWA list of high priority corridors as a California farm to market route and designated a Future Interstate. Demographics PAGE 14
Information 4Braun Worldbid s Sale Process PAGE 15 Information Plans Demographics Financials Market Demographics Overview
SALES INFORMATION FLOYD S STORES, INC. OFFERS ARE BEING CONSIDERED ON A FIRST-COME-FIRST-OFFER BASIS. For questions or offer presentment, please contact: Email: David@Braunco.com Phone: 310.798.3123 Fax: 310.798.8883 Mail: Braun Worldbid Attention: Floyd s General Stores 1230 Rosecrans Ave, Suite 160, Manhattan Beach CA 90266 BUYER BROKER PARTICIPATION A two percent (2.0%) commission will be paid to any licensed broker who represents and registers a successful buyer for the real estate. DUE DILIGENCE Please execute and send Non-Disclosure Agreement to Braun Worldbid representative. Buyers will then be granted access to an electronic library of due diligence materials including business and financial information, and arrangements to interview current management staff. FINANCIAL QUALIFICATION Buyers will be required to present Financial Qualification information at time of offer presentation. PROPERTY PREVIEW You may view the property at anytime. PAGE 16 Information
DISCLAIMER DISCLAIMER: BRAUN is the broker. This brochure is provided for the sole purpose of allowing a potential buyer to evaluate the business and real estate owned by Floyd s Stores, Inc. This brochure is provided for the sole purpose of allowing a potential buyer to evaluate whether there is interest in considering a possible purchase of the business interest. The potential buyer is urged to perform its own examination and inspection of the businesses and information relating to same, and shall rely solely on such examination and investigation and not on this brochure or any materials, statements or information contained herein or otherwise provided. Neither BRAUN, its members, managers officers, employees or agents, nor any of its partners, nor seller or broker, or any of their employees, agents, professionals or representatives, make any representations or warranties, whether express or implied, by operation of law or otherwise, with respect to this brochure or any materials, statements or information contained herein or relating thereto, or as to the accuracy or completeness of such materials, or statements or information, or assumes any responsibility with respect thereto. Such materials, statements and information have in many circumstances been obtained from outside sources and have not been tested or verified. Projections, in particular, are based on various assumptions and subjective determinations as to which no guaranty or assurance can be given. This brochure is provided subject to errors, omissions, prior sale, change of price or terms and other changes to the materials, statements and information contained herein or relating to the interest or property being sold. Neither Seller nor BRAUN will not be responsible if the interest purchased is unsatisfactory to any parties in any way. VALUE: Buyers are responsible for conducting their own due diligence. All Buyers must perform their own due diligence in regards to assessing value. PAGE 17