SINGLE TENANT NNN INVESTMENT OPPORTUNITY ONTARIO OHIO
EXCLUSIVELY MARKETED BY JIM SCHUCHERT FIRST VICE PRESIDENT SRS NATIONAL NET LEASE GROUP 610 Newport Center Drive, Suite 1500 Newport Beach, CA 92660 DL: 949.270.8204 M: 310.971.3892 Jim.Schuchert@srsre.com CA License No. 01969414 JOE SCHUCHERT FIRST VICE PRESIDENT SRS NATIONAL NET LEASE GROUP 610 Newport Center Drive, Suite 1500 Newport Beach, CA 92660 DL: 949.629.4540 M: 310.971.3116 Joe.Schuchert@srsre.com CA License No. 01973172 MATTHEW MOUSAVI MANAGING PRINCIPAL SRS NATIONAL NET LEASE GROUP 610 Newport Center Drive, Suite 1500 Newport Beach, CA 92660 DL: 949.698.1116 M: 714.404.8849 Matthew.Mousavi@srsre.com CA License No. 01732226 PATRICK R. LUTHER, CCIM MANAGING PRINCIPAL SRS NATIONAL NET LEASE GROUP 610 Newport Center Drive, Suite 1500 Newport Beach, CA 92660 DL: 949.698.1115 M: 480.221.4221 Patrick.Luther@srsre.com CA License No. 01209944 JOHN M. HOTY BROKER OF RECORD OH License No. 2001013563
TABLE OF CONTENTS 4 INVESTMENT SUMMARY OFFERING HIGHLIGHTS INVESTMENT HIGHLIGHTS 7 PROPERTY OVERVIEW AERIALS SITE PLAN LOCATION MAP 15 AREA OVERVIEW DEMOGRAPHICS 17 FINANCIALS RENT ROLL BRAND PROFILE
INVESTMENT SUMMARY SRS National Net Lease Group is pleased to present the opportunity to acquire the fee simple interest (land and building) in a Vitamin Shoppe located in Ontario, Ohio. Built in 2007, Vitamin Shoppe has been operating at this location for 10+ years and recently extended the lease for an additional 10 years through 7/31/2027. There are approximately 10 years remaining in the extended term with four (4) five (5) year options at 10% rental increases. The lease is NNN in nature as Vitamin Shoppe pays/ reimburses for ALL operating expenses, insurance and property taxes. The lease is corporately guaranteed by Vitamin Shoppe Industries, Inc. (NYSE: VSI). The subject property is strategically located in a major retail corridor along N. Lexington-Springmill Road. Ontario is located in North Central Ohio, conveniently located between Columbus (70 Miles) and Cleveland (80 Miles). The 5-mile trade area is supported by a population of 60,186 with an average household income of $57,517. 4 INVESTMENT SUMMARY SRS NATIONAL NET LEASE GROUP.
OFFERING HIGHLIGHTS OFFERING PRICING: $2,103,429 NET OPERATING INCOME: $147,240 CAP RATE: 7.00% GUARANTY: Corporate TENANT: Vitamin Shoppe Industries, Inc. LEASE TYPE: NNN LANDLORD RESPONSIBILITIES: None PROPERTY SPECIFICATIONS RENTABLE AREA: LAND AREA: PROPERTY ADDRESS: 4,095 SF 0.46 Acres 771 N. Lexington-Springmill Road, Ontario, OH 44906 YEAR BUILT: 2007 PARCEL NUMBER: 038-60-143-02-001 5 OFFERING HIGHLIGHTS SRS NATIONAL NET LEASE GROUP.
INVESTMENT HIGHLIGHTS VITAMIN SHOPPE CORPORATE GUARANTEED LEASE Approximately 10 Years Remaining in the Current Term In 2017, Tenant Extended the Lease for an Additional 10 Years Four (4) Five (5) Year Option Periods with 10% Rental Increases 10% RENTAL INCREASES EVERY 5 YEARS Rare 10% Rent Increases Every 5 Years Next Increase August 2022 Average Cap Rate of 7.38% Over Remaining Term, Assuming a Purchase Price at List Price NNN LEASE FEE SIMPLE OWNERSHIP ZERO LANDLORD RESPONSIBILITIES NNN Lease Tenant Pays/Reimburses for ALL Operating Expenses, Insurance & Property Taxes Ideal, Management-Free Investment for an Out-Of-State, Passive Investor LOCATION Located along N. Lexington-Springmill Road Excellent Retail Synergy: Nearby national credit tenants include Lowe s Home Improvement, Target, TJ Maxx, Best Buy, Chipotle, ALDI, Wendy s, Kohl s, Burger King, McDonald s, and more Ontario is 70 Miles from Columbus, OH; 65 Miles from Akron, OH & 80 Miles from Cleveland, OH Five Mile Demographics 60,186 Residents; $57,517 Average Household Income TENANT 2nd Largest Vitamins, Minerals & Supplements Retailer Publicly Traded Company NYSE: VSI Founded in 1977 775 Locations Nationwide HEALTHY AWARDS PROGRAM Established Over 15 Years Ago and Encourages Customers to Make Repeat Purchases and Enables Vitamin Shoppe to Enhance Customer Loyalty Over 2.1 Million New Members Were Enrolled in Fiscal Year 2016 The Number of Active Members Between Retail and Online Shoppers was Approximately 6.3 Million as of December 31, 2016 VMS INDUSTRY (VITAMINS, MINERALS AND SUPPLEMENTS) Estimated to be Approximately $41 Billion in 2016 According to the Nutrition Business Journal According to the Nutrition Business Journal, the VMS Industry is Expected to Register a CAGR (Compound Annual Growth Rate) of 6.2% from 2016-2020) Sports Supplements and Meal Replacement Categories are Projected to Post the Highest CAGRs at 8.3% and 7.3% 6 INVESTMENT HIGHLIGHTS SRS NATIONAL NET LEASE GROUP.
PROPERTY OVERVIEW ACCESS N. Lexington-Springmill Road:... 1 Access Point TRAFFIC COUNTS U.S. Highway 30:... 16,400 VPD State Highway 309:... 9,800 VPD IMPROVEMENTS There is approximately 4,095 SF of existing building area. PARKING There are approximately 15 parking spaces on the owned parcel. The parking ratio is approximately 3.70 stalls per 1,000 SF of leasable area. PARCEL MAP YEAR BUILT PARCEL 2007 Parcel Number: 038-60-143-02-001 Acres: 0.46 Square Feet: 19,994 SF ZONING B: Business District 7 PROPERTY OVERVIEW SRS NATIONAL NET LEASE GROUP.
N.Lexington-Springmill Road Rosewood Drive
U.S. Highway 30 N.Lexington-Springmill Road 16,400 CARS PER DAY Ontario Hospital (30 Beds) Richland Mall (733,600 SF) 309 State Highway 9,800 CARS PER DAY W.4th Street
9,800 CARS PER DAY 309 State Highway Ontario Hospital (30 Beds) W. 4th Street Lexington-Springmill Road N.
Village Mall Drive Lexington-Springmill Road N.
Lexington-Springmill Road N. Village Mall Drive
N. LEXINGTON-SPRINGMILL RD.
100 Minutes 83 Miles To Cleveland CLEVELAND 2017 ESTIMATED POPULATION 1 Mile... 1,099 3 Mile... 17,904 5 Mile... 60,186 2017 AVERAGE HOUSEHOLD INCOME 1 Mile...$89,330 3 Mile...$66,743 5 Mile...$57,517 2017 ESTIMATED TOTAL EMPLOYEES 1 Mile... 132 3 Mile... 16,447 5 Mile... 45,696 ONTARIO MANSFIELD
AREA OVERVIEW Ontario, Ohio Ontario is a city in Richland County in the U.S. state of Ohio. It was founded in 1834 on the western edge of the Allegheny Plateau, just west of the city of Mansfield. After being incorporated in 1958, Ontario became a heavy manufacturing center because of the Erie Railroad line, and its proximity to Mansfield. However, its status in that regard began to decline in the late 20th century. The City of Ontario had a population of 6,313 as of July 1, 2017. Ontario ranks in the lower quartile for Population Density and the upper quartile for Diversity Index when compared to the other cities, towns and Census Designated Places (CDPs) in Ohio. Ontario Public Schools enroll 1,820 students in public primary and secondary grades.the district administers 4 public schools including one elementary school, one intermediate school, one middle school, and one high school. Richland County is a county located in the U.S. state of Ohio. Its county seat is Mansfield. The county was created in 1808 and later organized in 1813. It is named for the fertile soil found there. Population estimates on July 1, 2016 was 121,107.Richland County is included in the Mansfield, OH Metropolitan Statistical Area as well as the Mansfield-Ashland-Bucyrus, OH Combined Statistical Area. The county is one of the six Metropolitan Statistical Areas that make up Northeast Ohio and is also included in the Cleveland-Akron, OH Combined Statistical Area. The airport is home to the Mansfield Lahm Air National Guard Base and the 179th Airlift Wing (179 AW), an Ohio Air National Guard unit operationally-gained by the Air Mobility Command (AMC). The unit has about 1000 personnel, of which about 300 are full-time Active Guard and Reserve (AGR) and Air Reserve Technician (ART) personnel and the remaining 760 are traditional part-time air national guardsmen. The wing has been active at Mansfield Lahm since its establishment in 1948, operating a variety of fighter aircraft until 1976 when it transitioned to an airlift mission with C-130 Hercules aircraft. The wing has performed service during Operations Desert Shield, Desert Storm, Southern Watch, Noble Eagle, Enduring Freedom and Iraqi Freedom. Retiring their C-130 s in 2009, the 179th flew the C-27 Spartan until 2013, at which time it began transitioning back to the C-130. 15 AREA OVERVIEW SRS NATIONAL NET LEASE GROUP.
AREA DEMOGRAPHICS DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2017 Estimated Population 1,099 17,904 60,186 2022 Projected Population 1,081 17,708 59,194 2010 Census Population 1,124 17,988 61,614 2017 Estimated Households 435 8,106 25,920 2022 Projected Households 428 8,041 25,569 2010 Census Households 442 8,083 26,361 2017 Estimated White 93.40% 87.50% 82.20% 2017 Estimated Black or African American 2.20% 7.10% 12.60% 2017 Estimated Asian or Pacific Islander 2.20% 2.10% 1.20% 2017 Estimated American Indian or Native Alaskan 0.10% 0.20% 0.30% 2017 Estimated Other Races 0.50% 0.80% 0.60% 2017 Estimated Hispanic 1.20% 2.40% 2.30% 2017 Estimated Average Household Income $89,330 $66,743 $57,517 2017 Estimated Median Household Income $68,052 $46,794 $42,294 2017 Estimated Per Capita Income $35,316 $30,327 $25,162 2017 Estimated Total Businesses 24 1,136 2,798 2017 Estimated Total Employees 132 16,447 45,696 16 AREA DEMOGRAPHICS SRS NATIONAL NET LEASE GROUP.
RENT ROLL LEASE TERM RENTAL RATES TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONS Vitamin Shoppe 4,095 10/3/2006 7/31/2027 Current - $12,270 $3.00 $147,240 $35.96 NNN 4 (5-Year) (Corporate Guaranty) 8/1/2022 10% $13,497 $3.30 $161,964 $39.55 10% Incr. at beg. of each option FINANCIAL INFORMATION Price:...$2,103,429 Net Operating Income:...$147,240 Cap Rate:...7.00% Lease Type:... NNN PROPERTY SPECIFICATIONS Year Built:...2007 Rentable Area:... 4,095 SF Land Area:... 0.46 Acres Address:...771 N. Lexington-Springmill Road, Ontario, OH 44906 17 RENT ROLL SRS NATIONAL NET LEASE GROUP.
BRAND PROFILE THE VITAMIN SHOPPE Vitamin Shoppe is an omni-channel, specialty retailer and contract manufacturer of nutritional products based in Secaucus, New Jersey. In its stores and on its website, the Company carries a comprehensive retail assortment including: vitamins, minerals, specialty supplements, herbs, sports nutrition, homeopathic remedies, green living products, and beauty aids. In addition to offering products from approximately 900 national brands, the Vitamin Shoppe also carries products under The Vitamin Shoppe, BodyTech, True Athlete, MyTrition, plnt, ProBioCare, Next Step and Betancourt Nutrition brands. The Vitamin Shoppe conducts business through more than 775 company-operated retail stores under The Vitamin Shoppe and Super Supplements retail banners, and through its website. Vitamin Shoppe, Company Type:...Public (NYSE: VSI) 2017 Employees:... 3,860 2017 Revenue:...$1.18 Billion 2017 Assets:...$488.75 Million 2017 Equity:...$195.37 Million Ranking:... S&P 600 Russell 2000 18 BRAND PROFILE SRS NATIONAL NET LEASE GROUP.
SRS GLOBAL STATS 800+ PROPERTIES CURRENTLY REPRESENTED 600+ CLIENTS REPRESENTED IN 2016 $2.6B* TRANSACTION VALUE 20+ OFFICES *STATISTICS ARE FOR 2016. 250+ BROKERS, PROFESSIONALS, AND STAFF #1 LARGEST REAL ESTATE FIRM EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.