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Offering Memorandum presents AMERICAN LUBEFAST Thomasville, GA
Transcript

Offering Memorandum

presents

AMERICAN LUBEFAST

Thomasville, GA

www.thequantumequitygroup.com (404) 936-6242 Page 2 | 2

The Quantum Equity Group hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we deem to be reliable. However, The Quantum Equity Group has not and will not verify any of this information, nor has The Quantum Equity Group conducted any investigation regarding these matters. The Quantum Equity Group 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 your 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. The Quantum Equity Group expressly denies any obligation to conduct a due diligence examination of this Property for the 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 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 the 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 The Quantum Equity Group 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.

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Table of Contents

SECTION 1 –Pricing & Financial Analysis

SECTION 2 –Property Description

SECTION 3 –Recent Sales

SECTION 4 –Market Overview

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PRICING & FINANCIAL ANALYSIS

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Property Summary

THE OFFERING Property American Lubefast

Property Address 2829 East Pinetree Boulevard

Thomasville, GA 31792

SITE DESCRIPTION Number of Stories One

Year Built 1987

Rentable SF 1386 +/-

Lot Size .47 acres +/-

Type of Ownership Fee Simple

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Investment Overview

Highlights

20 Year NNN Lease with 15 Years Remaining

Absolutely No Landlord Responsibilities

True NNN 10% Rent Increases Every Five Years

Offered Free and Clear of Debt

Attractive Initial 8.25 % Cap Rate

Tenant with Long Successful Track Record

Average HH Income over $48,000 within entire five-mile radius

This property was built in 1987 with American Lubefast being its tenant since 2006. ALF signed an amendment to the lease in 2012 adjusting the rent commencement date to July 1, 2012. This amendment added 6 years onto the original term. The buyer will benefit from the 10% rental increases every 5 years throughout the lease term as well as the guarantee provided by American Lubefast, Inc., the corporate entity. No national quick oil change companies are located in Thomasville. The nearest quick lube is approximately one street over, T&T Auto Lube Services. American Lubefast Thomasville has excellent reviews online.

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SUMMARY ANNUALIZED OPERATING DATA

Base Rent ($40.48/SF) $56,100

Base Rent Growth Rate 10% increase every five years

Years 6-10 10% more than years 1-5

Years 11-15 10% more than years 6-10

Years 16-20 10% more than years 11-15

First Five Year Extension 10% more than years 16-20

Second Five Year Extension 10% more than first five - year extension.

Initial NOI $56,100

Offered Free and Clear of Debt

Rent Increases Rent Cap Rate Years 1-5 (7/1/12 – 6/30/17) $51,000 7.50 % Years 6-10 (7/1/17 – 6/30/22) $56,100 8.25% Years 11-15 (7/1/22 – 6/30/27) $61,716 9.08% Years 16-20 (7/1/27 – 6/30/33) $67,884 10.00% First Five-year extension period $74,664 11.00% Second Five-year extension period $82,140 12.08%

Price $680,000

Rentable Square Feet 1386 +/-

Price/Square Foot $490.62

Cap Rate (Initial) 8.25 %

Year Built 1987

Lot Size .596 +/- acres

Type of Ownership Fee Simple

Tenant Summary

Tenant Trade Name American Lubefast

Ownership Private

Lease Guarantor Corporate Guarantee

Lease Type Triple Net (NNN)

Roof and Structure Tenant Responsible

Lease Commencement Date 7/1/2012

Rent Commencement Date 3/1/2007

Lease Expiration Date 6/30/2032

Increases 10% Every 5 Years

Options 2 Five-Year Options

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Tenant Overview

Property Name: American Lubefast

Property Address: 2929 East Pinetree Boulevard

Thomasville, GA 31792

Property Type: Net Leased Auto Service

Rentable Area: 1386 +/- SF

Tenant Trade Name: American Lubefast

Tenant: Corporate Store

Ownership: Private

Lease Guarantor: Corporate Guarantee

Lease Commencement Date: 7/1/2012

Rent Commencement Date: 4/1/2007

Lease Expiration Date: 6/30/2033

Term Remaining on Lease: 15 Years

Year 1 NOI: $56,100

Increases: 10% every 5 years

Options to Renew: 2 five year options

Options to Terminate: No

Options to Purchase: No

First Right of Refusal: No

Number of Locations: 70

Headquarters: Lawrenceville, GA

Web Site: www.lubefast.com

Description: Incorporated in 1995 in Lawrenceville, GA (a suburb of Atlanta), American Lubefast is one of the largest independently owned and operated Oil Change and Preventative Maintenance Companies in America. American Lubefast currently operates quick lube/car care centers in Georgia, Florida, Mississippi, and Alabama. The American Lubefast mission statement drives every employee to stand behind all of their work and to foster a better community at each location.

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PROPERTY DESCRIPTION

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Location Overview

The subject property is located at 2829 (2515) East Pinetree Boulevard, Thomasville, Georgia. The subject property is well-situated in a dense retail corridor surrounded by an excellent group of national tenants. In the immediate vicinity, tenants such as Belk’s department store, anytime fitness, a movie theatre, Wendy’s, Arby’s, Popeyes, Captain D’s, Firehouse Subs, Hardees, Dunkin Donuts, Chick Fil A, McDonald’s, Burger King, Sonic, Fred’s Grocer, Wal-mart, a Publix Grocery Store, plus more national, regional, and local retailer. Others include Thomasville Self Storage, the Butler-Mason Branch YMCA, Archbold urgent care, Days Inn Thomasville, The Thomas County Stadium, and numerous office buildings and other businesses.

Located in South Georgia and employing more than 2500 people, Archbold Medical Center is a four hospital, three nursing home health system with state-of-the-art facilities including 540 patient beds. The flagship hospital, John D. Archbold Memorial Hospital, is a 264-bed hospital located in Thomasville, Georgia. Other system hospitals, also in Georgia, are Brooks County Hospital in Quitman, Grady General Hospital in Cairo, and Mitchell county Hospital in Camilla. For over 90 years, Archbold has been synonymous with high-quality, compassionate medical care, with facilities accredited by The Joint Commission.

Thomas University is located approximately three miles away, and is a regionally accredited, nonprofit university. Situated on 75 acres just 30 miles north of Tallahassee, Florida, TU offers associates, bachelors, and master’s degrees at the main campus, online, and at satellite locations in Tallahassee, across Georgia, and at University Partners in China. The student body includes traditional students, local professionals returning to college, members of the military, and citizens from around the glob. TU students participate in a wide variety of activities, including 10 varsity and junior varsity athletic teams, music, debate, theatre, and team sports such as shooting, bass fishing, and archery. Thomas University’s origins date back to 1950.

Thomas University

Archbold Medical Center

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Property Details

The subject property consists of a one story building constructed in 1987 with two service bays. Traffic counts are 13,300 vehicles per day.

Address in the tax records is 2515 East Pinetree Boulevard Thomasville, GA 31792.

https://qpublic.schneidercorp.com/Application.aspx?AppID=682&LayerID=11372&PageTypeID=4&PageID=4777&Q=1273769274&KeyValue=011+019021

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Aerial Views

The subject property is located in a retail area. Adjacent business locations are approximate and for general informational purposes.

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Aerial Views, Continued

The Subject Property, American Lubefast Store number 0411, is situated in a major retail corridor of Thomasville.

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Location & Regional Maps

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Location & Regional Maps, continued

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RECENT SALES

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Recent Sales Comparables

Address Sale Price CAP Rate

Square Feet +/-

Per SF Acres +/-

Closing Date

SUBJECT PROPERTY $680,000 8.25% 1386 $490.62 .47 ON MARKET 9492 Navarre Parkway Navarre, FL 32566

$890,000 6.62% 1350 $659.26 .46 5/22/2017

442 South First Street Jesup, GA 31545

$936,164 7.89% 2816 $332.44 .596 11/16/2016

3263 Highway 90 Gautier, MS

$1,040,000 7.67% 2819 $414.06 .85 5/9/2016

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On Market Comparables

Subject Property: Offered at $680,000, $51,000 Initial NOI, 1386 +/- SF, $490.62/SF, .47 +/- Acre (Just over 15 years remaining on lease, 10% Rental Increases Every 5 Years; 2, five year renewal options in addition to initial 20 year term. Pure NNN, tenant responsible for all maintenance including roof and structure. Dollar for Dollar, Subject property offers a better overall cash flow at list price than any of the properties. Due to its lower price point, the subject offering at list will incur transaction costs that will have a greater impact on ultimate cap rate yield.

Address List Price NOI (Initial)

CAP Rate

Square Feet +/-

List Price Per SF

Acres +/-

# Years Left

SUBJECT PROPERTY $ 680,000 $ 56,100 8.25% 1386 $490.62 .47 15 American Lubefast 1515 East Glenn Avenue Auburn, AL 36830

1,480,768 $ 111,058 7.5% 2449 $604.64 .89 16

7118 Highway 61 Moss Point, MS 395563

$704,000 $ 52,800 7.5% 1800 $391.11 .63 15

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MARKET OVERVIEW

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Market Overview

The city of Thomasville, GA boasts a vibrant downtown and well-preserved history and architecture, and is the second largest in Southwest Georgia after Albany. Thomasville is only a short drive to Tallahassee, FL. Thomasville boasts a mild four-season environment, excellent shopping, dining and cultural activities with historic charm and world-class medical facilities. Thomasville is now recognized as a retirement destination. A blend of southern hospitality and cordial living also landed Thomasville as one of the top 40 cities in the book, Retire in Style. The town features plantations open to the public, a historic downtown, a large farmer’s market, and a 320-year-old oak tree at the corner of Monroe and Crawford streets. Located in Southwest Georgia only 15 minutes from the Florida border, Thomasville is home to Archbold Medical Center, Thomas University, and Southwest Georgia Technical College. The bakery company Flowers Foods is based in Thomasville. Senior Life Insurance Company is based in Thomasville. In 2016, Thomasville was featured as the second best historic small town on USA Today's 10 Best List Reader's Choice after Bisbee (Arizona) but ahead of Abingdon (Virginia), Mackinac Island (Michigan), and Astoria (Oregon). On March 27, 201, Southbound Magazine named Thomasville as one of eight “Small Towns of the South – Perfect Places to Rediscover Life’s Simpler Pleasures” and was featured on the front cover.

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Confidentiality Agreement

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Quantum Equity Group and should not be made available to any other person or entity without the written consent of The Quantum Equity Group. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Quantum Equity Group has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The Quantum Equity Group is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of The Quantum Equity Group, and is solely included for the purpose of providing tenant Lessee information about this listing to prospective Buyers. The information contained in this Marketing Brochure has been secured from sources we believe to be reliable; however, The Quantum Equity Group has not verified, and will not verify, any of the information contained herein, nor has The Quantum Equity Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR QUANTUM EQUITY GROUP AGENT FOR MORE DETAILS.


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