9600 Long Beach Boulevard - LONG BEACH TOWNSHIP, NEW JERSEY 08008
Investment Overv iew
ACTUAL PROPERTY
ACTUAL PROPERTY
Marcus & Millichap is pleased to present ACME Market in Long Beach Township, New Jersey located 20 miles north of Atlantic City. ACME is operating under a 20-year absolute-net lease with zero landlord responsibilities. There are 1.50 percent annual rent increases in years two through five, and 7.50 percent rent increases every five years beginning in year 11. The lease is backed by a corporate guaranty from Albertsons Companies, Incorporated (Inc), who registered more than $60 billion in revenue across 2,324 supermarkets nationwide.
This asset benefits from limited competition. ACME Market is the only national grocery store on the entire island. The tenant reports strong unit level performance with high sales per square foot and a low rent-to-sales ratio; contact the listing broker for more information.
The subject property sits on a larger four-acre parcel facing Long Beach Boulevard. With more than 500 feet of frontage along this four-lane thoroughfare, ACME benefits from strong visibility along Long Beach Island’s main corridor, which runs the entire length of the island. The average daily traffic count exceeds 9,200 vehicles per day (VPD), and significantly increases during the summer months. There is substantial redevelopment approximately five miles north of this asset. The Stateroom, five miles north of the asset, is scheduled to undergo a $15-million scrape and rebuild. The scope of the project calls for the complete demolition of the existing restaurant and banquet hall, which will be replaced with a 49,000-square foot, 133-room hotel.
Additional tenants in the immediate vicinity include: Dunkin Donuts, CVS/pharmacy, Wawa, Bank of America, PNC Bank, Verizon, TD Bank, and many more.
• ACME Market in Long Beach Township, New Jersey | 20 Miles North of Atlantic City
• Brand New 20-Year Absolute-Net Lease | Zero Landlord Responsibilities
• Strong Rent Increases | 1.50 Percent Annual Increases in Years Two Through Five | 7.50 Percent Rent Increases Every Five Years Beginning in Year 11
• Corporate Guaranty | Albertsons Companies, Incorporated (Inc) | Number 49 on June 2017 Fortune 500 List | Number Three on June 2017 Forbes America’s Largest Private Companies
• Limited Competition | Only National Supermarket on the 18-Mile, Long Beach Island
• Healthy Unit Level Financials | Low Rent-to-Sales | Tenant Reports High Sales Per Square Foot | Contact Listing Broker for Details
• Large Four-Acre Parcel With More Than 500 Feet of Frontage Along Long Beach Boulevard | Four-Lane Thoroughfare Running the Entire Length of the Island
• Significant Redevelopment | The Stateroom | Scrape and Rebuild Project for New Hotel | $15 Million in Active Construction Permits
9600 Long Beach Boulevard - LONG BEACH TOWNSHIP, NEW JERSEY 08008
Tenant Overv iew - ACME
ACME Markets was founded in 1891, when two friends, Samuel Robinson and Robert Crawford, opened a small neighborhood grocery store at Second and Fernon Streets in South Philadelphia that emphasized quality products, low prices and friendly service. Over 125 years later, ACME remains dedicated to providing a high-quality grocery experience. Today, ACME operates 179 stores in Pennsylvania, New Jersey, Delaware, New York, Connecticut, and Maryland, employing more than 20,000 associates. ACME continues to offer consumers fresh and convenient supermarket solutions, which are all tailored to the specific needs of the neighborhoods ACME serves.
Albertsons is one of the largest food and drug retailers in the United States with a strong local presence, but on a national scale. As of February 25, 2017, the company operated 2,324 stores across 35 states and the District of Columbia under 20 well-known banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Carrs and Haggen. Albertsons operates in 122 Metropolitan Statistical Areas (MSAs) in the United States. The company is ranked number one or number two by market share in 66 percent of those Metropolitan Statistical Areas (MSAs). Albertsons focuses on providing their customers with a service-oriented shopping experience, including convenient and value-added services through 1,786 pharmacies, 1,227 in-store branded coffee shops, and 385 adjacent fuel centers. The company employs nearly 273,000 talented and dedicated employees serving on average 34 million customers each week.
Founded in 1939 and based in Boise, Idaho, Albertsons Companies, LLC (“Albertsons”, or the “Company”) is the 2nd largest traditional grocer in the UnitedStates serving over 34 million customers per week and generating $60 billion in sales annually. In January 2015, Albertsons merged with Safeway, creating abest-in-class organization dedicated to bringing a better shopping experience to customers across the country. The Company’s powerful combination of stronglocal presence and national scale, vast range of brands and products, and service-oriented staff enable them to meet evolving shopping preferences.As of June 2017, the Company operated 2,329 stores across 35 states under 20 well-known banners with long operating histories. Albertsons has grownstrategically through a series of strategic acquisitions in recent years into a $2.8 billion adjusted EBITDA company as of fiscal year 2016 ended February 25, 2017,and as of Q1 2017the Company had already generated $771.7 million in adjusted EBITDA.
COMPANY BANNERS
2,300+retail stores
Operates in35 states
including Washington, DC$59.7 billion
annual sales
34 millioncustomers
per week
One of the largest retail employers
273,000 jobs
Home delivery in8 of top 10US marketsby end of FY 2017
1,700+ in-storepharmacies
380+ fuelstations
28 distributioncenters
18 food andbeverage plants
Nation’s largest brandof USDA-certified
organic products
By market sharein 66% of the
122 MSAsin which it operates
#1 / #2
4th largeste-commerce
platform in the US
2nd largesttraditional
grocer in the US
$2.8 billionadj. EBITDA
in FY 2016
$Ex perienced management
with 32 years in retail on average
Currently ex ecuting$800 million
synergy realization plan
500 new itemslaunched every year
Founded in 1939 and based in Boise, Idaho, Albertsons Companies, Inc (“Albertsons”, or the “Company”) is the 2nd largest t radi t ional grocer in the Uni ted States serv ing over 34 mi l l ion customers per week and generat ing $60 b i l l ion in sales annual ly. In January 2015, Albertsons merged with Safeway, creat ing a best- in-class organizat ion dedicated to br inging a bet ter shopping exper ience to customers across the country. The Company’s powerful combinat ion of s t rong local presence and nat ional scale , vast range of brands and products , and serv ice-or iented staf f enable them to meet evolv ing shopping preferences.
As of June 2017, the Company operated 2 ,329 stores across 35 states under 20 wel l-known banners with long operat ing h istor ies . A lbertsons has grown strategical ly through a ser ies of s t rategic acquis i t ions in recent years into a $2.8 b i l l ion adjusted EBITDA company as of f iscal year 2016 ended February 25, 2017, and as of Q1 2017 the Company had a l ready generated $771.7 mi l l ion in adjusted EBITDA.
ACTUAL PROPERTYNote :• S to re counts based on pub l i ca l l y ava i l ab le in fo rmat ion• Wa lmar t , Cos tco , and Trage t g rocer ysa les based on a percen tage o f to ta l sa les as o f the la tes t f i sca l year.• Kroger and A lber tsons sa les exc lude fue l sa les o f ~$14 b i l l i on and ~$3 b i l l i on , respec t i ve l y
COMPETIT IVE LANDSCAPE
Albertsons Companies, Inc is one of the largest food reta i lers and the second largest t radi t ional grocers in the Uni ted States.
9600 Long Beach Boulevard - LONG BEACH TOWNSHIP, NEW JERSEY 08008
9600 Long Beach Boulevard - LONG BEACH TOWNSHIP, NEW JERSEY 08008
Market Overview - Long Beach Township
LBI, as Long Beach Island is known in the local lingo, is a beach lover’s paradise. Long Beach Island is a barrier island and summer colony along the Atlantic Ocean coast of Ocean County, New Jersey. Aligned north-south, the northern portion is generally luxury low-density residential housing, whereas the southern end possesses higher-density housing, and considerable commercial development. The primary industries include tourism, fishing, and real estate. Access to the Island is controlled by the Dorland J. Henderson Memorial Bridge, which is also known as The Causeway. The Causeway, is a steel girder bridge that spans Manahawkin Bay, carrying traffic along Route 72 between Long Beach Island (LBI) and the Manahawkin section of Stafford Township. The bridge starts at Manahawkin and ends at Ship Bottom on Long Beach Island. The bridge provides views of Barnegat Bay, Little Egg Harbor Bay and the Atlantic City skyline, less than 25 miles south.
The island is home to about 20,000 people on a year-round basis. The population is distributed among six separate municipalities, the largest of which is Long Beach Township. However, the island’s population swells significantly during the summer months and reaches about 100,000 people, including part-time residents and tourists. The island’s close-knit communities are largely affluent and contain vacation homes for wealthy individuals who reside elsewhere, primarily New Jersey as well as New York, Pennsylvania, and Connecticut.
Marcus & Mi l l ichap hereby advises al l prospect ive purchasers of Net Leased property as fol lows:
The i n f o rma t i on con t a i ned i n t h i s Ma r ke t i ng B rochu re has been ob t a i ned f r om sou rces we be l i e ve t o be r e l i ab l e. Howeve r, Ma rcus & M i l l i c hap has no t and w i l l no t ve r i f y an y o f t h i s i n f o rma t i on , no r has Ma rcus & M i l l i c hap conduc ted any i n ves t i ga t i on r ega rd i ng t hese ma t t e r s . Ma rcus & M i l l i c hap makes no gua ran t ee, wa r r an t y o r r ep resen t a t i on wha t soeve r abou t t he accu racy o r comp le t eness o f an y i n f o rma t i on p ro v i ded .
As t he Buye r o f a ne t l e a sed p rope r t y, i t i s t he Buye r ’s r e spons i b i l i t y t o i ndependen t l y con f i rm t he accu racy and comp le t eness o f a l l ma te r i a l i n f o rma t i on be fo re comp le t i ng any pu r chase. Th i s Ma rke t i ng B rochu re i s no t a subs t i t u t e f o r you r t ho rough due d i l i gence i n ves t i ga t i on o f t h i s i n ves tmen t oppo r t un i t y. Ma rcus & M i l l i c hap e xp ress l y den i e s any ob l i ga t i on t o conduc t a due d i l i gence e xam ina t i on o f t h i s P rope r t y f o r Buye r.
Any p ro j ec t i ons , op i n i ons , a s sump t i ons o r e s t ima tes used i n t h i s Ma r ke t i ng B rochu re a r e f o r e xamp le on l y and do no t r ep resen t t he cu r r en t o r f u t u r e pe r f o rmance o f t h i s p rope r t y. The va l ue o f a ne t l e a sed p rope r t y t o you depends on f ac to r s t ha t shou l d be e va l ua t ed by you and you r t a x , f i n anc i a l and l ega l adv i so r s .
Buye r and Buye r ’s t a x , f i n anc i a l , l ega l , and cons t r uc t i on adv i so r s shou l d conduc t a ca re f u l , i ndependen t i n ves t i ga t i on o f an y ne t l e a sed p rope r t y t o de t e rm ine t o you r sa t i s f ac t i on w i t h t he su i t ab i l i t y o f t he p rope r t y f o r you r needs .
L i ke a l l r ea l e s t a t e i n ves tmen t s , t h i s i n ves tmen t ca r r i e s s i gn i f i c an t r i s k s . Buye r and Buye r ’s l ega l and f i n anc i a l adv i so r s mus t r eques t and ca re f u l l y r e v i ew a l l l ega l and f i n anc i a l documen t s r e l a t ed t o t he p rope r t y and t enan t . Wh i l e t he t enan t ’s pas t pe r f o rmance a t t h i s o r o t he r l oca t i ons i s an impo r t an t cons i de r a t i on , i t i s no t a gua r an t ee o f f u t u r e success . S im i l a r l y, t he l ease r a t e f o r some p rope r t i e s , i n c l ud i ng new l y -cons t r uc t ed f ac i l i t i e s o r new l y - acqu i r ed l oca t i ons , may be se t based on a t enan t ’s p ro j ec t ed sa l e s w i t h l i t t l e o r no r eco rd o f ac t ua l pe r f o rmance, o r compa rab l e r en t s f o r t he a r ea . Re tu r ns a r e no t gua r an t eed ; t he t enan t and any gua r an to r s may f a i l t o pay t he l ease r en t o r p rope r t y t a xes , o r may f a i l t o comp l y w i t h o t he r ma te r i a l t e rms o f t he l ease ; cash f l ow may be i n t e r r up t ed i n pa r t o r i n who l e due t o ma rke t , econom ic, env i r onmen ta l o r o t he r cond i t i ons . Rega rd l e s s o f t enan t h i s t o r y and l ease gua r an t ees , Buye r i s r e spons i b l e f o r conduc t i ng h i s /he r own i n ves t i ga t i on o f a l l ma t t e r s a f f ec t i ng t he i n t r i n s i c v a l ue o f t he p rope r t y and t he va l ue o f an y l ong- t e rm l ease, i n c l ud i ng t he l i k e l i hood o f l oca t i ng a r ep l acemen t t enan t i f t he cu r r en t t enan t shou l d de f au l t o r abandon t he p rope r t y, and t he l ease t e rms t ha t Buye r may be ab l e t o nego t i a t e w i t h a po ten t i a l r ep l acemen t t enan t cons i de r i ng t he l oca t i on o f t he p rope r t y, and Buye r ’s l ega l ab i l i t y t o make a l t e r na t e use o f t he p rope r t y.
By accep t i ng t h i s Ma r ke t i ng B rochu re you ag ree t o r e l ease Ma rcus & M i l l i c hap Rea l E s t a t e I n ves tmen t Se r v i ces and ho l d i t ha rm less f r om any k i nd o f c l a im , cos t , e xpense, o r l i ab i l i t y a r i s i ng ou t o f you r i n ves t i ga t i on and /o r pu r chase o f t h i s ne t l e a sed p rope r t y.
9600 Long Beach Boulevard - LONG BEACH TOWNSHIP, NEW JERSEY 08008
