Best Buy 550 Mid Rivers Mall Drive St. Peters, Missouri 63376 Offering Memorandum
$2,153,043 | Investment Details
Absolute NNN Chili’s Ground Lease Outparcel to Mid Rivers Mall
Located Approximately 25 Miles From St. Louis
Mid Rivers Mall is Anchored by Macy’s, Sears, JC Penny, Dillard’s,
and Dick’s Sporting Goods
Chili’s has been at the Site for Over 17 Years and has a 4.6%
rent to sales ratio
Franchisee Currently Operates Over 125 Chili’s and 230 Wendy’s
Highly Populated Region with Roughly 150,000 Residents in a 5-
Mile Radius
Average Household Income Over $82,000 in a Five-Mile Radius
$6,821,132 | Investment Details
NN Best Buy Lease Outparcel to Mid Rivers Mall
Located Approximately 25 Miles From St. Louis
Mid Rivers Mall is Anchored by Macy’s, Sears, JC
Penny, Dillard’s, and Dick’s Sporting Goods
Highly Populated Region with Roughly 150,000
Residents in a 5-Mile Radius
Average Household Income Over $82,000 in a
Five-Mile Radius
TENANT OVERVIEW
Best Buy Company Profile
Tenant Trade Name Best Buy
Ownership Public
Sales Volume $42.568 Billion
Lease Guarantor Corporate
Credit Rating BB
Rating Agency Standard & Poor’s
Stock Symbol BBY
Board NYSE
No. of Locations 1,050
Headquarters Richfield, Minnesota
Website www.bestbuy.com
TENANT INFO TENANT INFO
Best Buy is an American multinational consumer electronics corporation headquartered in
Richfield, Minnesota, a Minneapolis suburb. It operates in the United States, Mexico, and
Canada. All Best Buy Stores in China were closed in February 2011 and merged with Five Star. [1]
The company was founded by Richard M. Schulze and Gary Smoliak in 1966 as an audio specialty
store. In 1983, it was renamed and rebranded with more emphasis placed on consumer
electronics.
Best Buy's subsidiaries include Geek Squad, Magnolia Audio Video, and Pacific Sales. Best Buy
operates under the Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video, Insignia and
Pacific Sales brands in the United States; the Best Buy, Geek Squad and Best Buy Mobile brands
in Canada; Best Buy Mobile and Five Star in China; and Best Buy, Best Buy Express, and Geek
Squad in Mexico. Best Buy sells cellular phones with phones from Verizon Wireless, AT&T
Mobility, Sprint Corporation, Boost Mobile and T-Mobile US, in regular stores and standalone Best
Buy Mobile stores in shopping malls. Best Buy was named "Company of the Year" by Forbes
magazine in 2004, "Specialty Retailer of the Decade" by Discount Store News in 2001, ranked in
the Top 10 of "America's Most Generous Corporations" by Forbes in 2005 (based on 2004
giving), and made Fortune magazine's List of Most Admired Companies in 2006.
Overview
Price $6,821,132
Gross Leasable Area 45,190 sq/ft
Year Built 1999
Net Operating Income $542,280
CAP Rate 7.95%
Lease Abstract
Lease Type Fee Simple
Lease Term 15 Years
Lease Start 2/1/2000
Lease Expiration 1/31/2015
Renewal Options Three 5-Year
Roof and Structure Landlord Responsible
Annualized Operating Data
Lease Term Annual Rent
Current-1/31/2020 $542,280
Option 2 -1/31/2025 $587,470
Option 3 -1/31/2030 $632,660
The subject property is a 45,190 +/- sf freestanding NN Best Buy located in St. Peters, MO, approximately 25 miles from St. Louis. The Mid Rivers Mall is anchored by Macy's, Sears, JCPenny, Dick's
Sporting Goods, Dillards, and also has over 75 specialty shops. Other retailers in the immediate area include: Chili’s, Jo-Ann's, Marshalls, Wehrenberg 14 Cinema, Costco, hhgregg, Menards, Ruby
Tuesdays, Pier I Imports, HomeGoods, and Bank of America. Best Buy has operated at the location for over sixteen years and has 3.4 years left on the first option with two (2) 5 year options remaining.
THE OFFERING
1,050+ $42.57 Billion
Locations In Forbes Annual Revenue
Company of the Year
Aerial View
Aerial View
Also Available
Chili’s
Planet Fitness
Location Map
AREA MAPPING
Population 1-Mile 3-Mile 5-Mile
2010 5,853 51,845 143,943
2015 6,159 53,734 148,458
2020 6,208 55,560 155,395
Top Employers in St. Peters # of Employees*
Barnes-Jewish St. Peters Hospital 970
Fort Zumwalt School District R-II 709
City of St. Peters 522
Dierbergs 353
2015
Household
Incomes
1-Mile 3-Mile 5-Mile
Average $60,845 $78,972 $82,764
Median $49,656 $68,321 $70,399
About St. Peters, Missouri
St. Peters is a city in St. Charles County, Missouri, United States. The 2010
census showed the city's population to be 52,575 tied for 10th in the state with
Blue Springs, Missouri.
Interstate 70 passes through the city, providing a major transportation link. In
2008 St. Peters was named the 60th best place to live by Money magazine,
putting it at the top in the state of Missouri. It also ranked in Money magazine's
Top 100 in 2010 and 2012.
The "Rec-Plex" in St. Peters is an award-winning recreation and fitness complex
that underwent an $18.5 million expansion in 2007. The city also hosts the
county's largest shopping center, Mid Rivers Mall, the location of the property,
which plans a 120,000 sq. ft (11,000 m2) expansion.
$82,764
5-mile radius average HH Income
148,458 5-mile radius population
56,375 5-mile radius number of households
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 Marcus & Millichap
and should not be made available to any other person or entity without the written consent of
Marcus & Millichap.
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. Marcus & Millichap 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, PCB's 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 information contained in this
Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus &
Millichap has not verified, and will not verify, any of the information contained herein, nor has
Marcus & Millichap 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.
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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.
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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.
Best Buy| 550 Mid Rivers Mall Drive St. Peters, Missouri 63376