S Y R A C U S E N E W Y O R K OFFERING MEMORANDUM
2 INVESTMENT OVERVIEW INVESTMENT OVERVIEW Marcus & Millichap is pleased to present this brand-new construction, Five Star Urgent Care in Syracuse, the sixth largest city in New York. The tenant signed a ten year, double-net (NN) lease with landlord responsibilities limited to roof and structure. There are 10 percent rent bumps every five years and in all three, five-year extension options. The lease is guaranteed by ASP UC Limited Liability Company (LLC), the sister company of Aspen Dental Management, Incorporated. ASP UC Support is currently a 14-unit entity with 15 units under development in Western New York. The subject property is located on a signalized hard corner at the intersection of Thompson Road and Exeter Street. This heavily trafficked thoroughfare sees more than 25,000 vehicles per day (VPD). Five Star benefits from being near two colleges. Both Syracuse University and Le Moyne College are less than five miles away. There are more than 37,000 students enrolled at these schools. Additionally, the Five Star benefits from limited competition. The nearest urgent care is more than nine miles away. The asset benefits from strong demographics. Within five miles, there are more than 182,000 residents. Additional retailers in the immediate vicinity include: Wendy s, Wegmans, Friendly s, Ruby Tuesday, Denny s, Red Lobster, Chuck E. Cheese s, Sam s Club, Price Chopper, Lowe s, McDonald s, ALDI, Burger King, Texas Roadhouse, Walmart, The Home Depot and many more.
3 INVESTMENT OVERVIEW New Construction Five Star Urgent Care in Syracuse The Sixth Largest City in New York Tenant Signed a 10-Year Double- Net (NN) Lease Limited Landlord Responsibilities Rent Expected to Commence in April 2018 Corporate Guaranty from ASP UC, Limited Liability Company (LLC), a Wholly Owned Subsidiary of Aspen Dental Management, Incorporated (Inc.) Hedge Against Inflation 10 Percent Rent Increases Every Five Years Signalized, Hard Corner Location on the Intersection of Thompson Road and Exeter Street More than 25,000 Vehicles Per Day (VPD) Limited Competition Nearest Urgent Care Center is More Than Nine and a Half Miles Less than Five Miles from Two Colleges Syracuse University and Le Moyne College More Than 37,000 Students Combined Nearby Interstate-690 Major Highway in New York With More Than 86,000 Vehicles Per Day (VPD) Dense Demographics More Than 182,000 Residents Within Five Miles Additional Retailers in the Immediate Vicinity Include: Wendy s, Wegmans, Friendly s, Ruby Tuesday, Denny s, Red Lobster, Chuck E. Cheese s, Sam s Club, Price Chopper, Lowe s, McDonald s, ALDI, Burger King, Texas Roadhouse, Walmart, The Home Depot and Many More
4 FINANCIAL OVERVIEW FINANCIAL OVERVIEW PRICE $1,829,546 CAP RATE 6.60% NOI $120,750 PRICE PER SQUARE FOOT $522.73 RENT PER SQUARE FOOT $34.50 YEAR BUILT 2018 APPROXIMATE LOT SIZE 1.01 Acres GROSS LEASEABLE AREA 3,500 TYPE OF OWNERSHIP Fee Simple LEASE GUARANTOR ASP UC Support, Limited Liability Company (LLC) LEASE TYPE Double-Net (NN) ROOF AND STRUCTURE Landlord Responsible
5 LEASE SUMMARY LEASE SUMMARY LEASE COMMENCEMENT DATE 4/1/2018 LEASE EXPIRATION DATE 3/31/2028 LEASE TERM 10 Years TERM REMAINING 10 Years ANNUALIZED OPERATING DATA BASE RENT ANNUAL RENT MONTHLY RENT 4/1/2018 3/31/2023 $120,750 $10,063 INCREASES 4/1/2023 3/31/2028 $132,825 $11,069 10% OPTIONS INCREASES OPTIONS TO RENEW FIRST RIGHT OF REFUSAL 10 Percent Every Five Years 3, 5-Year Yes 4/1/2028 3/31/2033 $146,125 $12,177 10% 4/1/2033 3/31/2038 $160,755 $13,396 10% 4/1/2038 3/31/2043 $176,820 $14,735 10%
6 TENANT OVERVIEW TENANT OVERVIEW - FIVE STAR URGENT CARE Five Star Urgent Care was founded in Big Flats, New York in 2012 by Dr. John Radford, a former hospital emergency room doctor. In 2014, Five Star Urgent Care expanded to six locations. That same year the company began offering patients the unique ability to view, in real-time, wait times for all of its six facilities on its website. In 2016, Five Star Urgent Care opened another location in Liverpool, New York. The Liverpool location differs from Five Star s other locations because it offers specialized pediatric urgent care in addition to the normal urgent care services. In 2017, Five Star Urgent Care opened seven more locations, with an additional 16 planned for delivery in 2018. Five Star Urgent Care knows how valuable quick, convenient and reliable medical care is. They treat non-life-threatening ailments and injuries, from bronchitis to lacerations and everything in between. The friendly and professional staff at their conveniently located walk-in clinics in Jamestown and throughout Central New York will have you in and out in less than an hour, and you never need an appointment. Five Star Urgent Care has clean and comfortable waiting areas, which include a computer to access the internet and arcade games. TVs in every patient room to make your short wait time feel even shorter. After your visit, Five Star will send your prescription to your pharmacy electronically, so it s ready when you arrive to pick it up. Their office will also notify your primary doctor about your visit with them to ensure coordinated care. TENANT TRADE NAME OWNERSHIP TENANT LEASE GUARANTOR NUMBER OF LOCATIONS HEADQUARTERED WEB SITE TENANT PROFILE Five Star Urgent Care Private Five Star Urgent Care ASP UC Support, Limited Liability Company (LLC) 14 Units (15 Under Development) Big Flats, New York www.fivestaruc.com
7 DEMOGRAPHICS DEMOGRAPHICS 1-Mile 3-Mile 5-Mile POPULATION 2000 Population 10,206 77,983 182,090 2010 Population 9,929 78,679 182,615 2017 Population 9,950 78,766 182,771 2022 Population 9,967 78,878 183,026 1-Mile 3-Mile 5-Mile HOUSEHOLDS 2000 Households 4,703 32,790 74,141 2010 Households 4,620 32,636 73,080 2017 Households 4,603 32,566 73,211 2022 Households 4,606 32,598 73,341 1-Mile 3-Mile 5-Mile HOUSEHOLD (HH) INCOMES 2017 Average HH Income $58,347 $56,873 $59,777 2017 Median HH Income $46,434 $42,474 $43,183 2017 Per Capita Income $26,992 $23,514 $23,944
8 SYRACUSE, NEW YORK ABOUT SYRACUSE Syracuse is the fifth most populous city in the state of New York. Located in the center of state on the southern shore of Lake Ontario, the city of Syracuse is the region s major metropolitan center. The city has functioned as a major crossroads over the last two centuries, first between the Erie Canal and its branch canals, then from its railway network. Today, Syracuse is located at the intersection of Interstates 81 and 90, and its airport is the largest in the region. Syracuse is home to Syracuse University, a major research university, as well as Le Moyne College, a nationally recognized liberal arts college. In 2010, Forbes rated Syracuse fourth in the top 10 places in the United States to raise a family. More than 150 motor carriers and small package carriers service the Syracuse area. Air and rail terminals are just 15 minutes from downtown. Seven major airlines, along with affiliated commuter service, offer approximately 250 daily arrivals and departures. Over two million travelers pass through Hancock International Airport each year. The region is also serviced by six major air cargo carriers. CSX operates an intermodal center in Dewitt/Manlius for transfer of trailers and containers between railcars and trucks with storage available for 345 trailers or containers. Amtrak services rail passenger needs. Syracuse s top employers are primarily in education and the service industry. University Hill is Syracuse s fastest growing neighborhood, fueled by expansions in Syracuse University and Upstate Medical University, as well as dozens of small medical office complexes. SYRACUSE TOP EMPLOYERS No. Business Name 1 State University of New York Upstate Medical University: 6,400 2 Syracuse University: 5,925 3 Wegmans Food Markets: 3,760 4 St. Joseph's Hospital Health Center: 3,150 5 Crouse Hospital: 2,400 6 Lockheed Martin Corp.: 2,350 7 National Grid USA: 1,860 8 Loretto : 1,825
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.
Y R A C U S E N E W Y O R K 6227 THOMPSON ROAD SYRACUSE, NEW YORK 13206 BROKER OF RECORD: JD PARKER MARCUS & MILLICHAP NEW YORK, NY LICENSE: 31PA1159742