Village Marketplace - Hobby Lobby/Marshalls Retail Center 1418-1422 East Dixie Drive, Asheboro, NC 27203 +/- 93,392 Square Feet +/- 8.90 Acres $7,060,000 6.50% Cap Rate For investment information: J. Tyson Glasser, CCIM Investment Sales Director tglasser@realtylinkdev.com 864.263.5427 o 404.435.6312 c
Table of Contents Executive Summary Investment Highlights...3 Investment Overview...4 Financial Highlights...5 Rent Roll...6 Property Overview Site Plan...7 Tenant Profiles...8 Property Photos...9 Aerial...10 Area Overview Trade Area Photos...11 Location Maps...12 Market Profile...13-14 Demographics...15-17 Contact Information...18
Investment Highlights Anchored by two national credit tenants on long term leases Hobby Lobby has +/-600 sotres and Marshalls has +/-975 Hobby Lobby has been a tenant since 2003 and well below market rent Offered well below replacement cost at $75 PSF with upside potential Located 25 miles south of Greensboro in the heart of the Asheboro retail market Directly across from Randolph Mall, a 380,000 SF regional mall anchored by Belk, JC Penny, Sears, Dunham s Sports, and Cinemark Cinemas Strong traffic counts over 27,000 cars/day in front of property on US 64 / East Dixie Drive Trade aera population of nearly 285,000
Location: Central NC about 25 miles south of Greensboro Land Size: +/- 8.90 Acres Building Size: +/- 93,392 SF Building Age: Original construction in 1988 and renovated in 2013 Occupancy: 95% leased to 3 tenants Tenant Lineup: Hobby Lobby 57,257 SF 61.3% Marshalls 23,788 SF 25.5% Workout Anytime 7,789 SF 8.3% Investment Overview Guarantors: Lease Types: Lease Commencement: Base Lease Terms: Option Terms: Landlord Responsibility: Tenants Responsibility: Frontage: Signage: Access: Parking: Zoning: Declaration: Traffic Counts: Corporate and Franchise (see Rent Roll) Double Net 2013-2015 (see Rent Roll) 10 years 2-4 for 5 years each Roof, structure, parking lot, management CAM, Taxes, Insurance +/- 437 feet on E. Dixie Dr. +/- 188 feet on Coleridge Rd. 30 foot monument on E. Dixie Dr. 22 foot monument on Coleridge Rd. Entrance / Exit on E. Dixie Dr. and Coleridge Rd. +/- 464 spaces (11 handicap) B-2, General Commercial Property subject to Easements with Covenants and Restrictions agreement +/- 27,000 cars per day on E. Dixie Dr. DEMOGRAPHIC SUMMARY - 2015 3 MILE 5 MILE 10 MILE POPULATION 19,960 40,216 74,687 HOUSEHOLDS 8,146 15,726 29,120 AVERAGE HH INCOME $46,625 $49,297 $51,071 MEDIAN HH INCOME $32,769 $35,350 $37,729
Financial Highlights Purchase Price: $7,060,000 Cap Rate: 6.50% (based on stabilized NOI) Base Rental Income: $482,723.41 Reimbursements: $111,042.50 Administrative Fees: None Gross Potential Income: $593,765.91 Vacancy Factor: None (existing vacancy is 5% of total SF) CAM/Taxes/Insurance: $111,042.50 (estimated 2015) Management Fee: Capital Reserves: $14,481.70 (3% of Base Rent) $9,339.20 ($0.10 PSF) Net Operating Income: $458,902.51 Assumable Financing: Delivered free and clear of debt at closing Proposed Financing: Loan-to-Value - 65% Interest Rate - 4.25% Amortization - 25 years Term - 10 years Annual Payments - $298,324 Cash Flow After Debt - $160,578 Cash-on-Cash Return - 6.50% Tenant Financials: Contact broker for details or visit tenant website
Rent Roll Suite 1418- A 1418- B Tenant Square Feet Asheboro Fitness, LLC 7,789 Lease Start Fall 2015 Lease End Rent PSF Annual Rent Rent Bumps CAM/Tax/ Insurance Admin. Fee Fall 2025 $13.00 $78,351.00 $1.25 PSF in Year 6 NNN 0% Available 4,558 TBD TBD $0.00 $0.00 TBD NNN 0% 1420 Marshalls of MA, Inc. 23,788 10/3/13 10/31/23 $8.32 $197,916.16 $0.50 PSF in Year 6 NNN 0% 1422 Hobby Lobby Stores, Inc. 57,257 5/1/13 4/30/23 $3.61 $206,456.25 6.67% in Year 6 NNN 0% Totals 93,392 $482,723.41 Options (5 years each) Options 1: $16.00 Option 2: $17.50 Option 1: $9.32 Option 2: $9.82 Option 3: $10.32 Option 4: $10.82 Option 1: $4.09 Option 2: $4.33 Notes 1. Asheboro Fitness Annual Rent calculated on 6,027 SF (1,762 SF of storage) 2. Co-Tenancy: If Hobby Lobby space is vacant for 120+ days Marshalls can pay % rent and if vacant for 18+ months Marshalls can terminate.
Site Plan
Tenant Profiles Think big. Keep it simple. Do it with integrity. Those are the guiding words of John Quattrocchi, co-founder of WORKOUT ANYTIME. Together with Steve Strickland, John and Steve have drawn from their 40 years of industry knowledge to create a proven, ready-to-run business opportunity for your success. As of 2015 WORKTOUT ANYTIME has over eighty locations in fifteen states. The WORKOUT ANYTIME system operates with low-overhead and delivers high customer satisfaction. Our clubs fit into a range of retail spaces, can be run by a tiny staff, and offer the best workout per square foot in the industry. Unprofitable amenities like the pool, spa, courts, aerobics classes, and childcare have been eliminated in favor of a $15 no-commitment price that keeps members onboard month after month after month. Our turnkey systems, vendor agreements, equipment sourcing and leasing support make it easy to get started and easy to succeed. Marshalls was acquired by TJX in 1995, and together with T.J. Maxx forms The Marmaxx Group or Marmaxx, the largest off-price retailer of apparel and home fashions in the U.S. Marshalls offers an ever-changing assortment of fashionable, brand name family apparel, home fashions and other merchandise. Marshalls differentiates itself from T.J. Maxx with a full line of family footwear and an expanded men s department, as well as The CUBE, a department specifically for juniors. Operating 975 stores in 46 states and Puerto Rico at the end of 2014, we believe that Marshalls continues to have significant store growth opportunities in markets across the U.S. The estimated long-term growth potential of The Marmaxx Group, which includes Marshalls and T.J. Maxx, is 3,000 stores. In 1970, entrepreneurs David and Barbara Green, along with their young family, began making miniature picture frames in their garage. A few years later, on August 3, 1972, the Green family opened the first Hobby Lobby store with a mere 300 square feet of retail space. Hobby Lobby has not stopped growing since. Today, Hobby Lobby Stores, Inc., headquartered in Oklahoma City, OK, operates over 600 stores across the nation that average 55,000 square feet. Hobby Lobby is an industry leading retailer offering more than 70,000 arts, crafts, hobbies, home decor, Holiday, and seasonal products. Hobby Lobby is included in Forbes annual list of America s largest private companies.
Property Photos
Aerial
Trade Area Photos
Trade Area Photos
Location Map
Market Profile Asheboro, NC Located in the heart of North Carolina, Asheboro is home to rich economic, natural and cultural resources. With a population of approximately 25,000, Asheboro is the largest city in Randolph County and is part of the Piedmont Triad, an area that includes Greensboro, High Point and Winston-Salem. Major employers in Asheboro include Randolph Hospital, Energizer, Klaussner Furniture, Acme McCrary, Asheboro City Schools and MOM Brands. Asheboro is the proud home of the North Carolina Zoo, one of the world s largest natural habitat zoos and home to over one thousand animals representing the continents of North America and Africa. Economy The Randolph County Economic Development Corporation (EDC) is a non-profit organization utilizing public and private funds to promote Randolph County s economic future. The EDC works with new and existing industry for the creation of new jobs, expanded tax base in the county, and a stronger local economy. Randolph County is located in the center of North Carolina, a part of the Piedmont Triad region, a twelve-county area whose central location puts it within 90 miles of the Blue Ridge Mountains to the west and within 200 miles of the Atlantic Ocean to the east. The county sits in the middle of the Eastern Seaboard, within 500 miles of half of the nation s population and largest markets. The region is united by the Piedmont Triad International Airport, six interstate highways, a score of colleges and universities, and a rich cultural life. Transportation The Piedmont Authority for Regional Transportation was created in 1997. The existence of PART is based on regional cooperation and the improvements to the transportation systems in the Piedmont Triad Region of North Carolina. Their mission is to enhance the quality of all forms of transportation for each of their citizens through efficient use and protection of their natural, economic and human resources. PART Express is the regional bus system connecting the major cities of the Piedmont and bringing people from the outlying counties into the urban areas. 13 PART Express Routes are offered during weekdays with one Route running on the weekend. PART vehicles drive 1,202,331 revenue miles per year. There are 28 Park & Ride lots scattered across the Piedmont Triad. PART served 551,167 passenger trips in FY 12. There are currently 36 vehicles in the PART fleet, consisting of Orion, Daimler Chrysler and StarTrans makes. All vehicles are wheelchair accessible, except the Dodge Sprinters, and all vehicles also have bike racks.
Education Located in the heart of North Carolina just minutes from the North Carolina Zoo, the district includes a five-star Early Childhood Development Center, five elementary schools, two middle schools and one high school. Every classroom in the district is equipped with SMARTboard technology creating interactive learning environments where students thrive. We are committed to providing high quality learning opportunities for all students in a safe and inviting environment so that our students can become successful lifelong learners, prepared for 21st century global citizenship. Asheboro City Schools will be a system of excellence where every student graduates, and is globally competitive for careers, college, and citizenship. Randolph Community College, a member institution of the North Carolina Community College System, is a public, two-year, comprehensive, community college established to serve the citizens of Randolph County. Both credit and noncredit classes are offered at Randolph Community College, which is situated near the geographic center of North Carolina, adjacent to the ancient mountains in the area known as the Uwharries. Market Profile Healthcare Randolph Hospital is located in Asheboro, NC, in Randolph County, the heart of the Piedmont an area famous for its rolling hills and friendly people. Its strategic location is the center of the state, a short distance from several urban areas Greensboro, Winston- Salem, Charlotte and the Research Triangle Park. Randolph Hospital has expanded to 145 beds and continues to expand not only in scope, but in services designed to ensure high-quality healthcare. Their mission is to provide quality healthcare and foster health and wellness in our communities. They strive to be the preferred provider for high quality care, creating better health in their communities and recognized for excellence in all that they do. Quality is the degree to which their patient outcomes, safety and satisfaction are consistent with the results achieved by top-performing healthcare providers. At Randolph Hospital, their definition of quality reflects their commitment to excellence and combines patient outcomes and patient satisfaction. By continually measuring their quality and sharing those measures with other healthcare providers, they are better able to initiate process changes and use evidence-based practices to provide the best quality of care available for all patients.
Investment Contacts: J. Tyson Glasser, CCIM Investment Sales Director tglasser@realtylinkdev.com 864.263.5427 o 404.435.6312 c 550 S. Main Street, Suite 300 Greenville, SC 29601 864.242.4008 p 864.232.0160 f www.realtylinkdev.com 2015 RealtyLink, LLC, We have obtained the contained information from sources we believe are reliable. We have not however verified that all information is accurate and make no guarantee, warranty or representation of it. The information is subject to the possibility of errors, ommissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice, and it is not a substitute for a thorough due diligence investigation. We include opinions, projections, estimations and assumptions for example purposes only. This information may not represent current or future performance of the property. Seek legal advise and conduct due diligence if exact numbers are desired. RealtyLink, LLC and the RealtyLink logo are trademarks of RealtyLink, LLC and/or its affiliates. All other logos or company materials displayed in these contents are the property of their respective owners.