Cooper Commercial Investment Group 6120 Parkland Blvd., Suite 206 Cleveland, OH 44124 www.coopergrp.com
Bob Havasi [email protected] (888) 525-5695 x10
Dan Cooper [email protected] (888) 525-5695 x12
2
Table of Contents
INVESTMENT SUMMARY
Investment Highlights ………...…………….. 4
Investment Overview ……………………….. 5
Location Overview…………………………….. 6
Offering Summary …….……………………… 7
FINANCIAL ANALYSIS
Rent Roll ……………….…………………….…… 9
Financial Analysis …...………………….…….. 10
PROPERTY ANALYSIS
Site Plan ...….…………………………………….. 12
Aerial Map ……………………………………….. 13-14
Location Maps .…………………………………. 15
Demographics ..………………………………… 16
TENANT ANALYSIS
Tenant Profiles ……….………….…………….. 18-27
Disclosure & Confidentiality …..….……… 28
3
INVESTMENT HIGHLIGHTS
4
Market Place
• Kroger Grocery Anchored Center with High-Traffic McDonald’s Outparcel: 89% Occupied with Extremely Diverse Mix of Tenants Offering Recession Proof Retailers As Well As Alternative Retail Users, Providing Long-Term Stability
• Low Sales Price of Under $40/S.F. with Significant Upside Potential Through Lease-Up of Remaining Vacant Units & Below Market Rents
• Staggered Rent Roll with Newly Executed Leases and Long-Term, Tenured Tenants Proving Commitment and Desire to be Located at the Property
• Positioned with Excellent Frontage Along Piqua’s Main Roadway (US 36/Covington Avenue - 40,000 VPD) and Directly Adjacent to Hartzell Propeller, One of Piqua’s Largest Employers with 268 Employees
• Nationally-Named Tenants in Over 80% of Center: Majority of Center is on NNN Lease Structures with Mid-Term Rental Increases and Admin./Mgmt. Reimbursements
• Ideal Position Surrounded by Rooftops with Average Household Incomes Over $60,000 Within 5-Miles
• Dayton, Ohio: Home to Wright-Patterson Air Force Base with 25,000 Airmen, Civilian and Contractor Employees & Largest Single Site Employer in Ohio
• Dayton Rated #3 City in the Nation Out of the Top 50 Cities in the United States by HealthGrades for “Excellence in Health Care,” Site Selection Magazine Ranked Dayton the “#1 Medium Sized Metropolitan Area in the U.S. for Economic Development” and According to Bloomberg Businessweek, “Dayton is One of the Best Places in the U.S. for College Graduates to Find a Job”
• Direct Vicinity of Large Population Base: Over One Million People in the Greater Dayton Area, Only 27 Miles to Dayton International Airport
ADDITIONAL HIGHLIGHTS
5
The Cooper Commercial Investment Group has been exclusively retained by ownership to sell the 100% fee simple interest in the 182,487 S.F., Kroger Grocery anchored center located in Piqua, Ohio. Market Place is being offered for $7,275,000, representing a 7.59% CAP and exceptionally low price point of under $40/SF. The offering provides an investor the opportunity to acquire a stable center that includes Kroger, a McDonald’s Ground Lease outlot and many other well-known national, regional and local tenants. In fact, over 80% of the center’s tenants are nationally recognized and nearly all are corporately backed. The asset’s diverse tenant mix offers many recession proof retailers creating long-term stability. Additionally, the 89% occupied center has upside potential through lease-up of the remaining vacant units and below market rents. The current tenant roster includes most tenants on Triple Net (NNN) lease structures, many with mid-term rental increases and several tenants that reimburse both an administrative and management fees. Market Place’s tenants are a mix of tenured tenants, along with newly executed leases proving the desire to be located at the center and in the market. The asset boasts a welcoming curb appeal with great visibility, excellent frontage and prominent pylon signage along one of Piqua’s most heavily traveled roadways, US 36 (Covington Avenue). Traffic counts surrounding the center are in upwards of 40,000 vehicles per day. The entire development has multiple points of ingress and egress with 2 signalized entrances creating easy access to Market Place. Market Place is positioned in a growing market surrounded by an abundance of rooftops while also being positioned near other complimentary retailers and directly adjacent to one of Piqua’s largest employers, Hartzell Propeller. The company employs over 265 employees which makes Market Place a convenient place to stop for groceries, lunch or dinner, as well as other necessary daily items. The center also benefits from being located in a suburb to the densely populated City of Dayton (approximately 30 miles). Much of the residential base in Piqua commutes to Dayton via I-75, located just 2.5 miles from the property and also runs from Toledo to Cincinnati making Piqua an easy exit to stop at along the route. Dayton is home to Wright-Patterson Air Force Base, who is the largest single-site employer in Ohio with 25,000 military and civilian employees. The healthcare industry accounts for much of the Dayton area's economy. Hospitals in the Greater Dayton area have an estimated combined employment of nearly 32,000, and a yearly economic impact of $6.8 billion. It is estimated that Premier Health Partners contributes more than $2 billion a year to the region through operating/employment/capital expenditures. Other major corporations such as Reynolds and Reynolds, CareSource, Cargill, NewPage Corporation, Huffy Bicycles, LexisNexis, Kettering Health Network, Premier Health Partners, Standard Register, Dayton Reliable Tool and Teradata all have their headquarters in Dayton. Recently Site Selection magazine ranked Dayton the “#1 Medium Sized Metropolitan Area in the U.S. for Economic Development” and according to Bloomberg Businessweek, Dayton was one of the best places in the U.S. for college graduates to find a job. Being positioned just outside Dayton with the diverse mix of uses, services and staggered lease terms; the asset is well insulated for possible shifts in consumer retail demands and trends and will be a quality asset for many years to come.
INVESTMENT OVERVIEW
6
Located along the I-75 corridor, just above I-70, Piqua, Ohio offers a quiet “rural quality of life” that is just minutes away from big city attractions, with over 1000 acres of land zoned for industrial use, and numerous new housing developments offering a full continuum of housing for every lifestyle. Part of the Dayton Metropolitan Statistical Area, Piqua is located approximately 30 miles north of the city. Piqua has two main roadways, U.S. 36 (Covington Avenue), which runs east-west through much of the city, cutting the city almost directly in half and I-75, a major interstate that runs from Cincinnati to Toledo with direct access to Downtown Dayton. Market Place is also just 27 miles from Dayton International Airport. The City of Piqua is the home to several major employers creating an employment base to support Market Place. Industry Products Company, the largest employer in Piqua serves the world’s largest automobile manufacturers, providing high-quality tooling, manufacturing and assembly of cargo and trunk systems, acoustic and water shield solutions and protective in-transit materials. Evenflo is the leading manufacturer of infant and toddler car seats and has become one of Piqua's leading employers with 285 employees, while Hartzell Propeller is the leading producer of small aircraft propellers and employs 268 people. The French Oil Mill Machinery Company also has a large presence as the company was founded in Piqua and has customers in over 80 countries, still serving the vegetable oil extraction market. In addition, the company is a world leader in synthetic rubber dewatering and drying machinery, and in hydraulic molding presses for rubber, thermoplastic and composite materials. Due to the close proximity to Dayton, many residents of Piqua commute to Dayton for work but live in Piqua for the small-town feel. Dayton’s major employers consist of Fuyao Glass America (0.25 miles), the world's leading manufacturing company specializing in automotive glass opened its 116-acre facility in late 2016 and employs 2,000 people at their facility. Dayton’s employment landscape hosts significant research and development in fields like industrial and aeronautical. Several noteworthy innovations have been designed in Dayton due in part to Wright-Patterson Air Force Base and its place within the community. The Air Force Base is the largest single-site employer in Ohio with 25,000 military and civilian employees. Dayton's businesses have diversified into a service economy that includes insurance and legal sectors as well as healthcare and government sectors. The healthcare accounts for much of the Dayton area's economy. Hospitals in the Greater Dayton area have an estimated combined employment of nearly 32,000, and a yearly economic impact of $6.8 billion. It is estimated that Premier Health Partners, a hospital network, contributes more than $2 billion a year to the region through operating, employment, and capital expenditures. Dayton has been rated the #3 city in the nation out of the top 50 cities in the United States by HealthGrades for “Excellence in Health Care.” Many hospitals in the Dayton area are consistently ranked by Forbes, U.S. News & World Report, and HealthGrades for clinical excellence. Many major corporations such as Reynolds and Reynolds, CareSource, Cargill, NewPage Corporation, Huffy Bicycles, LexisNexis, Kettering Health Network, Premier Health Partners, Standard Register, Dayton Reliable Tool and Teradata have their headquarters in Dayton. Recently Site Selection magazine ranked Dayton the “#1 Medium Sized Metropolitan Area in the U.S. for Economic Development” and according to Bloomberg Businessweek, Dayton was one of the best places in the U.S. for college graduates to find a job. Dayton is also among the top 100 metropolitan areas in the United States exports related jobs by the Brookings Institution. Additionally, The Dayton area was ranked the “10th Best Metropolitan Area in the United States for Higher Education” by Forbes. The University of Dayton (10,549+ students), Wright State University (17,775+ students), Kettering College (approx. 1,000 students) and Sinclair Community College (10,000+ students) are all located in Dayton and Sinclair is the largest community college at a single location in Ohio.
LOCATION OVERVIEW
# Piqua Major Employers # of Employees
1 Industry Products Company 351
2 Walmart 345
3 Piqua City Schools 320
4 Evenflo 285
5 Hartzell Propeller 268
6 Crane Pumps & Systems 260
7 City of Piqua 223
8 Upper Valley JVS 213
9 Edison Community College 160
10 Jackson Tube Service 160
7
Loan Amount:
Loan Type:
Interest Rate:
Amortization:
Term:
Loan-to-Value (LTV):
Monthly Debt Payment:
$5,456,250
New Loan
4.50%
25 Years
5 Years
75.00%
$30,328
Anticipated New Financing
Rental Income:
Tenant Reimbursements:
Potential Gross Income:
Vacancy (Actual):
Vacancy for Reimbursements:
Effective Gross Income:
Expenses:
NOI:
Annual Debt Service:
Structural Reserve ($0.10/S.F.):
Cash Flow After Reserves:
Cash-on-Cash Return:
$800,500
$104,423
$904,923
($113,982)
($20,064)
$770,877
$218,962
$551,915
$363,931
$18,249
$169,735
9.33%
Operating Data
$7,275,000
$1,818,750
182,487 S.F.
$39.87
$551,915
7.59%
1972/1994
Approx. 17.78 Acres
Approx. 1,181 Spaces
Concrete
Concrete Block/Metal
Price:
Down Payment:
Gross Leasable Area:
Price/SF:
NOI:
CAP Rate:
Renovated/Built:
Lot Size:
Parking Spaces:
Foundation:
Exterior:
SUMMARY
8
9
Tenant % of Tenant Lease Lease Rent/ Annual Lease Rental Option
GLA Total Since Start Expiration S.F. Rent Type Bumps Rate/ S.F.
Kroger 69,133 37.88% 2004 10/7/2004 10/31/2024 $2.04 $141,004 Ground Lease
N/A
(10) 5-Yr. Options 1 & 2 - $2.18/SF Options 3 & 4 - $2.32/SF Options 5 & 6 - $2.47/SF Options 7 & 8 - $2.61/SF Options 9 & 10 - $2.76/SF
R Pets (1) 7,909 4.33% 2013
7/1/2018 (Renewal
Date - Agreed On Terms, Will
Be Executed)
6/30/2021 $8.50 $67,227 NNN N/A N/A
AutoZone 7,200 3.95% 1992 11/1/2016 10/31/2021 $7.00 $50,400 NNN N/A (2) 5-Yr.
Option 1: $7.75/SF Option 2: $8.50/SF
Mikado Japanese Restaurant
2,521 1.38% 2017 4/15/2017 4/30/2027 $13.00 $32,773 NNN 5/1/2020 - $14.50/SF 5/1/2022 - $15.95/SF
N/A
East of Chicago Pizza 2,075 1.14% 1995 7/1/2019
(Extended Lease)
7/31/2022 $14.50 $30,087 NNN 8/1/2019 - $15.00/SF N/A
Cheap Tobacco 1,200 0.66% 2005 7/1/2017 6/30/2019 $15.91 $19,092 NNN N/A N/A
Roses 58,324 31.96% 2012 2/1/2018 1/31/2019 $2.57 $150,000 Gross None N/A
El Herradero (Recently Expanded)
4,480 2.45% 2015 12/1/2017 11/30/2022 $11.26 $50,445 NNN 12/1/2020 - $11.68/SF N/A
Miracle Ear (2) 1,400 0.77% 2013
8/1/2018 (Renewal
Date Executed
Amendment)
7/31/2023 $19.66 $27,528 NNN
8/1/2018 - $19.71/SF 8/1/2019 - $20.30/SF 8/1/2020 - $20.91/SF 8/1/2021 - $21.54/SF 8/1/2022 - $22.19/SF
N/A
Dragon City 1,200 0.66% 2002 5/1/2016 4/30/2021 $20.40 $24,480 NNN 5/1/2019 - $21.00/SF N/A
Advance America (3) 2,000 1.10% 1996 1/1/2014 12/31/2020 $15.57 $31,137 NNN 1/1/2019 - $15.76/SF 1/1/2020 - $16.23/SF
N/A
Boost Mobile (4) 1,200 0.66% 2017 3/19/2017 3/31/2022 $18.68 $22,248 NNN 4/1/2019 - $19.10/SF 4/1/2020 - $19.67/SF 4/1/2021 - $20.26/SF
N/A
McDonalds 4,848 2.66% 2006 7/13/2006 11/28/2027 $8.24 $39,930 Ground Lease
12/1/2022 - $9.06/SF
(4) 5-Yr. Option 1: $9.96/SF Option 2: $10.96/SF Option 3: $12.05/SF Option 4: $13.26/SF
Vacant 9,000 4.93% N/A N/A N/A $6.00 $54,000 NNN N/A N/A
Vacant 9,997 5.48% N/A N/A N/A $6.00 $59,982 NNN N/A N/A
Total Property 182,487 100.00% $4.39 $800,500
Vacancy 18,997 10.41% $6.00 $113,982
Pro Forma Calendar Year: July 1, 2018 - June 30, 2019 (1) Rental rate shown effective 7/1/2018. (2) Blended rental rate for renewal effective 8/1/2018.
(3) Blended current rental rate for increase effective 1/1/2019. (4) Blended current rental rate for increase effective 4/1/2019.
10
2017
Pro Forma 2018
2016 2018 $/SF
INCOME:
Rental Income $ 659,295 $ 691,805 $ 800,500 $ 4.39
Tenant Reimbursements:
Real Estate Tax 36,819 42,940 40,807 0.22
Real Estate Tax Rec's (1,286) 940 - -
Insurance - - 9,004 0.05
CAM 58,586 64,386 38,017 0.21
CAM Rec's (588) 662 - -
Admin./Management Fee - - 9,345 0.05
Ancillary Income (1) 5,988 7,216 7,250 0.04
Gross Potential Rental Income $ 758,814 $ 807,949 $ 904,923 $ 4.96
Vacancy Factor (Actual) 14.24% (113,982) (0.62)
Vacancy for Reimbursements Lost 10.41% (20,064) (0.11)
Effective Gross Income $ 758,814 $ 807,949 $ 770,877 $ 4.22
OPERATING EXPENSES:
Management Fee 3.00% $ 26,919 $ 28,433 $ 23,000 0.13
Real Estate Taxes 83,566 86,057 84,002 0.46
Insurance 25,280 23,900 24,675 0.14
Landscaping 6,225 7,680 7,950 0.04
Snow Removal 21,012 22,667 23,350 0.13
Utilities
Electric 9,108 8,568 8,825 0.05
Water/Sewer 15,823 16,575 17,075 0.09
CAM & Repairs (2) 16,024 2,580 3,670 0.02
Parking Lot Sweeping 10,106 11,870 12,245 0.07
Parking Lot Repairs/Striping 6,041 5,711 4,900 0.03
Fire Protection/Security 1,328 1,107 1,145 0.01
Roof Repairs & Maintenance 12,229 4,755 4,900 0.03
Non-Reimbursable LL R & M 2,540 100 125 0.00
Non-Reimbursable LL Utilities 2,627 3,346 3,100 0.02
Total Expenses $ 238,828 $ 223,349 $ 218,962 $ 1.20
Net Operating Income $ 519,986 $ 584,600 $ 551,915 $ 3.02
Loan Analysis
Cash Flow Available Before Debt Service $ 551,915 $ 3.02
Capitalization Rate 7.59% 7.59%
Valuation $ 7,275,000 $ 39.87
Loan to Value 75.00% 75.00%
Loan Amount $ 5,456,250 $ 29.90
Rate 4.50% 4.50%
Term Remaining 5 5
Amortization 25 25
Annual Debt Service $ 363.931 $ 1.99
Debt Service Coverage Ratio 1.52 1.52
(1) Includes fee to be sole trash vendor, Advance America Pylon Fee & Fees from Vendors in the Parking Lot.
(2) Canopy/Fascia One Time Repair of $12,550 in 2016.
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12
13
14
15
16
1510 Covington Ave 1 mi radius 3 mi radius 5 mi radius 10 mi radius
Piqua, OH 45356
POPULATION
2017 Estimated Population 9,611 22,475 28,626 77,434
2022 Projected Population 9,893 23,320 29,636 79,054
2010 Census Population 9,361 21,660 27,444 74,621
2000 Census Population 9,862 22,214 27,723 71,927
Projected Annual Growth 2017 to 2022 0.6% 0.8% 0.7% 0.4%
2017 Median Age 40.6 38.7 39.3 39
HOUSEHOLDS
2017 Estimated Households 3,975 9,037 11,418 30,519
2022 Projected Households 4,077 9,349 11,801 31,242
2010 Census Households 3,899 8,742 11,034 29,590
2000 Census Households 4,026 8,794 10,886 27,815
Projected Annual Growth 2017 to 2022 0.5% 0.7% 0.7% 0.5%
RACE AND
ETHNICITY
2017 Estimated White 92.7% 91.4% 92.0% 92.1%
2017 Estimated Black or African American 3.3% 3.7% 3.4% 3.1%
2017 Estimated Asian or Pacific Islander 0.7% 0.9% 0.9% 1.7%
2017 Estimated American Indian or Native Alaskan 0.1% 0.2% 0.2% 0.2%
2017 Estimated Other Races 3.1% 3.7% 3.4% 3.0%
INCOME
2017 Estimated Average Household Income $59,216 $57,051 $60,254 $71,688
2017 Estimated Median Household Income $45,428 $46,454 $48,281 $55,675
2017 Estimated Per Capita Income $24,687 $23,116 $24,253 $28,559
EDUCATION
(AGE 25+)
2017 Estimated Elementary (Grade Level 0 to 8) 3.3% 2.5% 2.4% 2.1%
2017 Estimated Some High School (Grade Level 9 to 11) 14.2% 12.8% 12.1% 9.6%
2017 Estimated High School Graduate 40.0% 39.1% 39.7% 38.5%
2017 Estimated Some College 20.0% 23.4% 22.8% 21.6%
2017 Estimated Associates Degree Only 11.1% 10.0% 9.8% 9.4%
2017 Estimated Bachelors Degree Only 7.6% 7.5% 8.4% 12.2%
2017 Estimated Graduate Degree 3.8% 4.7% 4.9% 6.7%
BUSINESS
2017 Estimated Total Businesses 211 892 1,218 3,018
2017 Estimated Total Employees 3,052 11,294 17,918 43,907
2017 Estimated Employee Population per Business 14.5 12.7 14.7 14.5
2017 Estimated Residential Population per Business 45.6 25.2 23.5 25.7
17
18
The Kroger Co. (NYSE: KR/S&P “BBB”/Moody’s “Baa1”) manufactures and
processes food for sale in its supermarkets. The company operates retail
food and drug stores, multi-department stores, jewelry stores, and
convenience stores. Its combination food and drug stores offer natural
food and organic sections, pharmacies, general merchandise, pet centers,
fresh seafood, and organic produce; multi-department stores provide
general merchandise items, such as apparel, home fashion and
furnishings, outdoor living, electronics, automotive products, toys, and
fine jewelry; and price impact warehouse stores offer grocery, and health
and beauty care items, as well as meat, dairy, baked goods, and fresh
produce items. The company operates under the banner brands, such as
Kroger, Ralphs, Fred Meyer, King Soopers, etc., as well as Simple Truth and
Simple Truth Organic brands. www.kroger.com
Source: www.kroger.com
Tenant Base Rent Schedule
Current:
Options 1 & 2:
Options 3 & 4:
Options 5 & 6:
Options 7 & 8:
Options 9 & 10:
Monthly
$11,750.33
$12,559.16
$13,365.71
$14,229.87
$15,036.43
$15,900.59
PSF
$2.04
$2.18
$2.32
$2.47
$2.61
$2.76
Annual
$141,004.00
$150,709.94
$160,388.56
$170,758.51
$180,437.13
$190,807.08
Headquarter:
# of Locations:
Corporate & Guaranty:
Ticker Symbol:
S&P Credit Rating:
Moody’s Credit Rating:
GLA:
Tenant Since:
Current Term Start:
Lease Expiration:
Rental Bumps:
Options:
Exclusive:
Termination Clause:
Cincinnati, OH
2,796
The Kroger Co.
NYSE: KR
BBB
Baa1
69,133
2004
10/07/2004
10/31/2024
None
(10) 5-Yr.
Grocery Store
None
Tenant Lease Abstract
Common Area Maintenance:
Insurance:
Real Estate Taxes**:
Admin. Fee:
Mgmt. Fee:
Ground Lease*
Ground Lease
Ground Lease
None
None
Tenant Recapture
* Pay PRS of Land Value of Larger Parcel ** Abatement on Kroger's Parcel through 2019 (1st Tax bill without the
abatement will be in December 2020; Ohio pays in taxes in arrears) • Parcel's will combine. Kroger will pay their PRS of the whole center • Other tenants will continue to pay their PRS which will now be
calculated on the whole center.
19
McDonald's (NYSE: MCD/Moody’s “Baa1”/S&P “BBB+”) is the world's
leading global food service retailer with over 36,000 locations in over 100
countries. More than 80% of McDonald's restaurants worldwide are
owned and operated by independent local business men and women.
McDonald's is a global operator and franchisor of quick-service
restaurants offering various food items, soft drinks, coffee, and other
beverages, as well as breakfast menus. The restaurant is known for it’s
burgers, including the “Big Mac,” along with fries and “Happy Meals” while
also offering a ‘Dollar Menu’ that features a wide variety of items.
www.mcdonalds.com
Source: www.mcdonalds.com
Tenant Base Rent Schedule
Current:
Bump 2022:
Option 1:
Option 2:
Option 3:
Option 4:
Monthly
$3,327.50
$3,660.24
$4,023.84
$4,427.84
$4,868.20
$5,357.04
PSF
$8.24
$9.06
$9.96
$10.96
$12.05
$13.26
Annual
$39,930.00
$43,922.88
$48,286.08
$53,134.08
$58,418.40
$64,284.48
Headquarter:
# of Locations:
Corporate:
Ticker Symbol:
S&P Credit Rating:
Moody’s Credit Rating:
GLA:
Tenant Since:
Current Term Start:
Lease Expiration:
Rental Bumps:
Options:
Termination Clause:
Oak Brook, IL
36,976+
McDonalds USA, LLC
NYSE: MCD
BBB+
Baa1
4,848
2006
07/13/2006
11/28/2027
12/01/2022
(4) 5-Yr.
None
Tenant Lease Abstract
Common Area Maintenance:
Insurance:
Real Estate Taxes:
Admin. Fee:
Mgmt. Fee:
$605.00/Year 5% Increases Every 5 Years
Self Insures
Pro Rata Share
None
None
Tenant Recapture
20
AutoZone (NYSE: AZO/S&P “BBB’/Moody’s “Baa1”) is the leading retailer
and a leading distributor of automotive replacement parts/accessories in
the U.S. The company offers various products for cars, sport utility
vehicles, vans, and light trucks, including new and remanufactured
automotive hard parts, maintenance items and accessories. The company
also provides A/C compressors, batteries and accessories, belts and hoses,
calipers, carburetors, chassis, clutches, CV axles, engines, fuel pumps,
fuses, ignition and lighting products, mufflers, radiators, thermostats,
starters and alternators, and water pumps. In addition, it offers
maintenance products, floor mats and seat covers, interior and exterior
accessories, mirrors, performance products, protectants and cleaners,
sealants and adhesives, steering wheel covers, stereos and radios, tools,
and wash and wax products Additionally, AutoZone sells automotive
diagnostic and repair software.
www.autozone.com
Source: www.autozone.com
Tenant Base Rent Schedule
Current:
Option 1:
Option 2
Monthly
$4,200.00
$4,650.00
$5,100.00
PSF
$7.00
$7.75
$8.50
Annual
$50,400.00
$55,800.00
$61,200.00
Headquarter:
# of Locations:
Corporate:
Ticker Symbol:
S&P Credit Rating:
Moody’s Credit Rating:
GLA:
Tenant Since:
Current Term Start:
Lease Expiration:
Rental Bumps:
Options:
Termination Clause:
Memphis, TN
5,346
AutoZone Development LLC
NYSE: AZO
BBB
Baa1
7,200
1992
11/01/2016
10/31/2021
None
(2) 5-Yr.
None
Tenant Lease Abstract
Common Area Maintenance
(PRS = 6.35%or 3.95%, per expense item**):
Insurance:
Real Estate Taxes:
Admin. Fee:
Mgmt. Fee:
Pro Rata Share*
Pro Rata Share
Pro Rata Share
20% on Operating Expenses
Pro Rata Share
Tenant Recapture
* Pays PRS of Parking Lot & Maintenance, Sweeping & Cleaning, Snow Removal, Fire Protection, Other Expenses, Parking Lights and Poles & Utilities **(6.35% of larger parcel for RET, 3.95% for smaller parcel, Pays PRS of Smaller Portion of Ins & Parking Lot Maintenance, Pays PRS of Utilities, Snow Removal & Sweeping/Cleaning)
21
Roses discount stores offer great, quality items at low prices, every day.
Roses strives to bring savings where they matter most. With new
products on the shelves each day, customers discover new items at
Roses and continually return to get the best buys. Roses, a subsidiary of
Variety Wholesalers, Inc. quickly expanded and began buying groups of
struggling discount retailers which established a reputation of
revitalizing companies, with all stores becoming profitable within just
12 months of their purchase. The retail stores operated by the parent
Company are grouped into three main divisions, The Super 10
Division, The Maxway Division and The Roses Division, which consists
of 160 stores and are chiefly competitive with discount and off price
stores. Roses offers an extensive assortment of retail merchandise
including both hardlines (toys, health and beauty aids, housewares,
furniture, sporting goods, snacks, etc.) and softlines (clothing,
accessories, jewelry, etc.).
www.rosesdiscountstores.com.com Source: www.rosesdiscountstores.com
Tenant Base Rent Schedule
Current:
Monthly
$12,500.00
PSF
$2.57
Annual
$150,000.00
Headquarter:
# of VW Locations:
# of Roses:
Corporate:
GLA:
Tenant Since:
Current Term Start:
Lease Expiration:
Rental Bumps:
Options:
Termination Clause:
Sales Threshold:
Henderson, NC
845+
160
Variety Stores, Inc.
Variety Wholesalers, Inc.
58,324
2012
02/01/2018
01/31/2019
None
None
None
4% Over $3,750,000
Tenant Lease Abstract
Common Area Maintenance:
Insurance:
Real Estate Taxes:
Admin. Fee:
Mgmt. Fee:
Gross
Gross
Gross
None
None
Tenant Recapture
22
East of Chicago Pizza is a restaurant chain offering different styles of pizza, buffalo wings, breadsticks, and subs. East of Chicago Pizza is a proven franchise, which has thrived for over twenty years in the ultra-competitive pizza industry. The company has more than 80 locations in six states. In the next five years, the company plans on reaching a total of 150 locations and growth is expected in all aspects of development, training and operations.
www.eastofchicago.com Source: www.eastofchicagopizza.com
Tenant Base Rent Schedule
Current:
Bump 2019:
Monthly
$2,507.25
$2,593.75
PSF
$14.50
$15.00
Annual
$30,087.00
$31,125.00
Headquarter:
# of Locations:
Guaranty:
GLA:
Tenant Since:
Current Term Start:
Lease Expiration:
Rental Bumps:
Options:
Termination Clause:
Sales Threshold:
Lima, OH
80 in 6 States
Personal
2,075
1995
07/01/2019
07/31/2022
08/01/2019
None
None
6% Over $900,000
Tenant Lease Abstract
Common Area Maintenance:
Insurance:
Real Estate Taxes:
Admin. Fee:
Mgmt. Fee:
Fixed - $4,125.87/Year Increase by 5% annually,
Excludes Snow Removal (PRS) Pro Rata Share
Pro Rata Share
15% on INS. Expense
None
Tenant Recapture
23
Advance America is one of the nation’s largest consumer lending companies offering a variety of financial services. Advance America is a wholly owned subsidiary of Grupo Elektra (Moody’s “Ba3”), one of the world’s leading providers of banking services, consumer finance, personal loans and specialty retailing. Whether customers need a Payday Loan or Installment Loan, Advance America Racine is the place to go. Advance America is a nationally recognized, fully licensed financial company that helps millions of people every year. The company’s services include: Payday Loans, Installment Loans, Online Installment Loans, Title Loans, MoneyGram Services and Visa Prepaid Cards. www.advanceamerica.net
Source: www.advanceamerica.net
Tenant Base Rent Schedule
Current*:
Bump 2019:
Bump 2020:
Monthly
$2,594.75
$2,626.67
$2,705.00
PSF
$15.57
$15.76
$16.23
Common Area Maintenance:
Insurance:
Real Estate Taxes:
Admin. Fee:
Mgmt. Fee:
Pro Rata Share*
Pro Rata Share
Pro Rata Share
15% on CAM & INS.
Pro Rata Share
Annual
$30,137.00
$31,520.00
$32,460.00
Headquarter:
# of Locations:
Corporate:
GLA:
Tenant Since:
Current Term Start:
Lease Expiration:
Rental Bumps:
Options:
Termination Clause:
Spartanburg, SC
2,000+
Advance America,
Cash Advance Centers
of Ohio, Inc.
2,000
1996
01/01/2014
12/31/2020
01/01/2019
01/01/2020
None
If cash advance
business is prohibited
by law, Tenant can
terminate lease.
Tenant Lease Abstract
Tenant Recapture
* Blended current rental rate for increase effective 1/1/2019. Pro Forma based on Calendar Year 7/1/2018 through 6/30/2019.
* Pays PRS Parking Lot & Maintenance, Sweeping & Cleaning, Snow Removal, Fire Protection, Other Expenses, Parking Lights & Poles and Utilities.
24
Boost Mobile offers the best phones and no long-term contract plans on the nationwide Sprint 4G LTE network (NYSE: S). Plus, Boost Mobile gives something the other prepaid cell phone carriers don't: Simplicity. Boost offers three easy-to-understand plans that all include unlimited talk, text and data starting at just $35 a month. Boost further simplifies the shopping experience by making the monthly plans available on all phones. .Boost Mobile is an award-winning provider of simple and flexible no-contract wireless products and services - all on a dependable nationwide network. Boost Mobile redefines value for wireless consumers with no long-term contracts on the nationwide Sprint 4G LTE network, reaching more than 225 million people and with no long-distance fees.
www.boostmobile.com
Source: www.boostmobile.com
Tenant Base Rent Schedule
Current*:
Bump 4/1/2019:
Bump 4/1/2020:
Bump 4/1/2021:
Monthly
$1,868.00
$1,910.00
$1,967.00
$2,026.00
PSF
$18.68
$19.10
$19.67
$20.26
Annual
$22,416.00
$22,920.00
$23,604.00
$24,312.00
Headquarter:
# of Subscribers:
Franchise:
GLA:
Tenant Since:
Current Term Start:
Lease Expiration:
Rental Bumps:
Options:
Termination Clause:
Overland Park, KS
4 Million
Allied Communications
Corp.
1,200
2017
03/19/2017
03/31/2022
Annual
None
None
Tenant Lease Abstract
* Blended current rental rate for increase effective 4/1/2019. Pro Forma based on Calendar Year 7/1/2018 through 6/30/2019.
Common Area Maintenance:
Insurance:
Real Estate Taxes:
Admin. Fee:
Mgmt. Fee:
Pro Rata Share*
$289.90/Year (5% Increase Annually) Pro Rata Share
20% on Operating Expenses
Pro Rata Share
Tenant Recapture
* Pays PRS of Parking Lot & Maintenance, Sweeping & Cleaning, Snow Removal, Fire Protection, Other Expenses, Parking Lights & Poles and Utilities.
25
Mikado offers a wide array of Japanese dishes, such as Hibachi
Steak, Rock Shrimp, Tuna Dumpling, Avocado Roll and many
other sushi favorites. Customers can also order favorite Japanese
food cuisines for take out.
www.mikadopiqua.com
Source: www.mikadopiqua.com
Tenant Base Rent Schedule
Current:
Bump 2020:
Bump 2022:
Monthly
$2,731.08
$3,046.20
$3,350.82
PSF
$13.00
$14.50
$15.95
Common Area Maintenance:
Insurance:
Real Estate Taxes:
Admin. Fee:
Mgmt. Fee:
Pro Rata Share*
Pro Rata Share
Pro Rata Share
20% on CAM & RET
Pro Rata Share
Annual
$32,773.00
$36,554.50
$40,209.95
Headquarter:
# of Locations:
Executed:
GLA:
Tenant Since:
Current Term Start:
Lease Expiration:
Rental Bumps:
Options:
Termination Clause:
Piqua, OH
1
Personally
2,521
2017
04/15/2017
04/30/2027
05/01/2020
05/01/2022
None
Right to Terminate
after year 5 with
payment of any
amortized TI.
Tenant Lease Abstract
Tenant Recapture
* Pays PRS Parking Lot & Maintenance, Sweeping & Cleaning, Snow Removal, Fire Protection, Other Expenses, Parking Lights & Poles and Utilities.
26
Miracle-Ear is the leader in Hearing Health Care and is the #1
most-recognized hearing aid brand. Miracle-Ear’s leading-edge
technology provides better than normal hearing for a natural
listening experience. Featuring over 1,300 locations nationwide,
the company’s compassionate hearing experts take time to
understand unique lifestyles, offering a commitment to
long-term hearing health care. With 36 million Americans
experiencing some degree of hearing loss, Miracle-Ear is
committed to helping individuals regain not only their hearing,
but a lifestyle of connections, success and joy as well.
www.miracle-ear.com
Source: www.miracle-ear.com
Tenant Base Rent Schedule
Current*:
Bump 8/1/2018:
Bump 8/1/2019:
Bump 8/1/2020:
Bump 8/1/2021:
Bump 8/1/2022:
Monthly
$2,294.00
$2,299.50
$2,368.33
$2,439.50
$2,513.00
$2,588.83
PSF
$19.66
$19.71
$20.30
$20.91
$21.54
$22.19
Annual
$27,528.00
$27,594.00
$28,420.00
$29,274.00
$30,156.00
$31,066.00
Headquarter:
# of Locations:
Franchise:
GLA:
Tenant Since:
Current Term Start:
Lease Expiration*:
Rental Bumps:
Options:
Termination Clause:
Exclusive:
Minneapolis, MN
1,300+
Beall, Inc.
1,400
2013
08/01/2018
07/31/2023
Annual
None
None
Auditory Clinic/Hearing
Aids
Tenant Lease Abstract
** Pays PRS Parking Lot & Maintenance, Sweeping & Cleaning, Snow Removal, Fire Protection, Other Expenses, Parking Lights & Poles and Utilities.
* Blended current rental rate for renewal increase effective 8/1/2018. Pro Forma based on Calendar Year 7/1/2018 through 6/30/2019.
Common Area Maintenance:
Insurance:
Real Estate Taxes:
Admin. Fee:
Mgmt. Fee:
Pro Rata Share**
Pro Rata Share
Pro Rata Share
15% on Operating Expenses
Pro Rata Share
Tenant Recapture
27
R Pets is an independently owned pet supply store which
carries Fromm Family Pet Food. The Fromm Family Foods
brand is a family - owned and operated artisan pet food company
in Wisconsin that produces their own food and treats in small
hands on batches. www.frommfamily.com/r/5946
Source: www.frommfamily.com/r/5946
Tenant Base Rent Schedule
Current:*
Monthly
$5,602.20
PSF
$8.50
Annual
$67,226.50
Headquarter:
# of Locations:
Guaranty:
GLA:
Tenant Since:
Current Term Start:
Lease Expiration*:
Rental Bumps:
Options:
Termination Clause:
Exclusive:
Piqua, OH
1
Personal
7,909
2013
07/01/2018
06/30/2021
07/01/2018
None
None
Pet Products/Grooming
Tenant Lease Abstract
* Rental rate shown effective 7/1/2018. Pro Forma based on Calendar Year 7/1/2018 through 6/30/2019.
Common Area Maintenance:
Insurance:
Real Estate Taxes:
Admin. Fee:
Mgmt. Fee:
Pro Rata Share**
Pro Rata Share
Pro Rata Share
20% on Operating Expenses
Pro Rata Share
Tenant Recapture
** Pays PRS Parking Lot & Maintenance, Sweeping & Cleaning, Snow Removal, Fire Protection, Other Expenses, Parking Lights & Poles and Utilities.
28
Cheap Tobacco offers tobacco and vape products for the
cheapest prices in town! With multiple locations throughout
Ohio, the company thrives on being the cheapest and most
convenient way for customers to meet their tobacco needs.
www.cheaptobaccousa.com Source: www.cheaptobaccousa.com
Tenant Base Rent Schedule
Current:
Monthly
$1,591.00
PSF
$15.91
Common Area Maintenance:
Insurance:
Real Estate Taxes:
Admin. Fee:
Mgmt. Fee:
Tenant Recapture
Annual
$19,092.00
Headquarter:
# of Locations:
Guaranty:
GLA:
Tenant Since:
Current Term Start:
Lease Expiration:
Rental Bumps:
Options:
Termination Clause:
Cincinnati, OH
33
Personal
1,200
2005
07/01/2017
06/30/2019
None
None
None
Tenant Lease Abstract
Fixed $2,301.70/Year Increase by 5% annually,
Excludes Snow Removal (PRS)
Pro Rata Share (Excludes Roses/Kroger PRS) Pro Rata Share (Excludes Roses/Kroger PRS) None
None
29
El Herradero Mexican Grill offers lip-smacking, authentic
Mexican cuisine in Piqua, OH. The restaurant is a family owned
business with 15 years of experience. From tacos and burritos to
chimichangas, Mexican rice, salads and seafood, the restaurant
offers a wide selection of dishes to choose from. El Herradero
also offer carry out .
www.elherraderomexicangrill.com
Source: www.elherraderomexicangrill.com
Tenant Base Rent Schedule
Current:
Bump 2020:
Monthly
$4,203.75
$4,360.53
PSF
$11.26
$11.68
Common Area Maintenance:
Insurance:
Real Estate Taxes:
Admin. Fee:
Mgmt. Fee:
Pro Rata Share*
Fixed $1,423.31/Year
Pro Rata Share
20% on Operating Expenses
Pro Rata Share
Annual
$50,445.00
$52,326.40
Headquarter:
# of Locations:
Guaranty:
GLA:
Tenant Since:
Current Term Start:
Lease Expiration:
Rental Bumps:
Options:
Termination Clause:
Piqua, OH
1
Personal
4,480
2015
12/01/2017
11/30/2022
12/01/2020
None
None
Tenant Lease Abstract
Tenant Recapture
* Pays PRS of Parking Lot & Maintenance, Sweeping & Cleaning, Snow Removal, Fire Protection, Other Expenses, Parking Lights & Poles and Utilities.
30
Tenant Base Rent Schedule
Current:
Bump 2019:
Monthly
$2,040.00
$2,100.00
PSF
$20.40
$21.00
Common Area Maintenance:
Insurance:
Real Estate Taxes:
Admin. Fee:
Mgmt. Fee:
Annual
$24,480.00
$25,200.00
Headquarter:
# of Locations:
Executed:
GLA:
Tenant Since:
Current Term Start:
Lease Expiration:
Rental Bumps:
Options:
Termination Clause:
Piqua, OH
1
Personally
1,200
2002
05/01/2016
04/30/2021
05/01/2019
None
None
Tenant Lease Abstract
Fixed $2,195.70/Year 5% Increase Annually
Excludes Snow Removal (PRS)
Pro Rata Share (Excludes Roses/Kroger PRS) Pro Rata Share (Excludes Roses/Kroger PRS) 15% on INS. Expense
None
Tenant Recapture
28
DISCLOSURE, CONFIDENTIALITY & DISCLAIMER
CONFIDENTIALITY AGREEMENT DISCLOSURE & DISCLAIMER The information within this Offering Memorandum will set forth an understanding regarding the relationship between the Recipient of this package (the “Recipient”) and The Cooper Group and the confidentiality of the investment information to be supplied to you and your organization for use in considering, evaluating and/or purchasing this property (the “Property”). The recipient acknowledges that all financial, contractual, marketing, and informational materials including but not limited to lease information, occupancy information, financial information, projections, data information and any other similar information provided by The Cooper Group which relates to the Property (collectively, the Confidential Information), whether said information was transmitted orally, in print, in writing or by electronic media is confidential in nature and is not to be copied or disseminated to any party without the prior consent of The Cooper Group. The Recipient acknowledges and agrees that the Confidential Information is of such a confidential nature that severe monetary damage could result from dissemination of that information to unauthorized individuals. The Recipient shall limit access to the Confidential Information to those individuals in the Recipient’s organization with a “need to know” and shall take all precautions reasonably necessary to protect the confidentiality of the Confidential Information. The Recipient acknowledges and agrees that the Confidential Information and any copies thereof are the property of The Cooper Group and that all such information will be returned to The Cooper Group upon written request. Any offers or inquiries from Recipient in connection with this investment proposal shall be forwarded, confidentiality, to The Cooper Group. Other than The Cooper Group, recipient agrees that neither Recipient nor The Cooper Group shall be obligated to pay any procuring broker fees in connection with this investment unless a separate written Brokerage Agreement is entered into and written acknowledgement of any procuring Brokerage Agreement is received from all parties to the investment transaction. Procuring brokers must provide written introductions of potential investors and receive written acknowledgment from The Cooper Group for representation to be recognized. This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.
The Memorandum contains selected information pertaining to the property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property, to be all-inclusive or to contain all or part of the information which perspective Recipients may require to evaluate the purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the owner or The Cooper Group. All references disclosed herein related to acreage, square footages and/or other measurements may be approximations and the best information available. The summaries of information included herein do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Photos herein are the Property and respective owners and use of these images without the express written consent of the owner is prohibited. The owner and the Cooper Group expressly reserve the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or terminate discussions with any entity and any time with or without notice which may arise as a result of review of this Memorandum. Neither the owner or the Cooper Group, nor any of their respective directors, officers, affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or its contents; and you are to rely solely on your investigators and inspections of the property in evaluating a possible purchase of the Property. The information contained in this document has been obtained from sources to be reliable. While the Cooper Group does not doubt its accuracy, the Cooper Group has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm the accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the Property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors.
Cooper Commercial Investment Group 6120 Parkland Blvd., Suite 206 Cleveland, OH 44124 www.coopergrp.com
Bob Havasi [email protected] (888) 525-5695 x10
Dan Cooper [email protected] (888) 525-5695 x12
