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MOUNTAIN VIEW MARKETPLACE HICKORY, NC GROCERY-ANCHORED CENTER WITH UPSIDE AND LOW PRICE PER SF
NOR MOUNTAIN VIEW MARKETPLACE
HICKORY, NC
GROCERY-ANCHORED CENTER WITH UPSIDE AND LOW PRICE PER SF
Subject Property
MOUNTAIN VIEW MARKETPLACE REPRESENTS A VALUE-ADD, GROCERY ANCHORED INVESTMENT OPPORTUNITY IN AN ACTIVE NORTH CAROLINA MARKET
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MOUNTAIN VIEW MARKETPLACE
8.50%CAP
$5,779,000PRICE
LEASEABLE SF54,627 SF
LAND AREA9.07 Acres
OWNERSHIP TYPEFee Simple
NOI$491,208
PRICE PER SF$105.79
PARKING4:1,000
2631 NC-127, HICKORY, NC 28602
Lowes Foods grocery-anchored shopping center in North Carolina market
Appealing price per square foot of $105/psf
88.5% occupied center with potential upside of ~$80,000 in additional NOI
Strong daily needs and internet-resistant tenant mix
Lowe’s recently spent $1.5 million remodeling store, and companyheadquarters are just 4 miles awayThis information has been secured from sources we believe to be reliable but we
make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Overview
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CAPITAL PACIFIC is pleased to present the opportunity to acquire Mountain View Marketplace, a grocery-anchored shopping center in Hickory, North Carolina. The property is anchored by Lowes Foods, a successful grocery chain with 83 locations across the Atlantic region. The grocer has a low occupancy cost of under 5% and recently underwent a $1.5 million upgrade of the store. Additionally, the property includes 13,500 square feet of shop space leased to synergistic in-line tenants including Great Clips, H&R Block, and others. The property is 88.5% occupied and features NNN lease structures with some tenants reporting sales (see lease abstract.) 6,300 square feet of space is available, representing an attractive upside of nearly $80,000 in potential NOI.
MOUNTAIN VIEW MARKETPLACE is located near the busy intersection of Highway 127 (23,000 VPD) and Highway 321 (28,000 VPD), two of the area’s busiest roads. The property benefits from high visibility and convenient access. Downtown Hickory is just 4 miles away and is accessed via Hwy 321. The property is surrounded by additional daily needs retailers including CVS, Walgreens, and BB&T. The immediate trade area boasts an average household income of $76,000 within a 1-mile radius.
LOWES FOODS IS A DOMINANT GROCERY CHAIN IN THE ATLANTIC REGION WITH 83+ STORES
Investment Highlights
JOHN [email protected]: 415.274.2715CA DRE# 01440360
Contact the team
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
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IN CONJUNCTION WITH NC LICENSED BROKER: Stuart Mullen
Commercial Real Estate Carolina, LLC
PH: 704.661.9800
JUSTIN SHARP [email protected]: 415.274.7392CA DRE# 01895013
JUSTIN [email protected]: 415.274.2706CA DRE# 01856228
4040
321
321
321
127
127
127
127
LENOIR RHYNE
COLLEGE
CATAWBA VALLEY
MEDICAL CENTER
258 BEDS
HICKORY REGIONAL AIRPORT
FRYE REGIONAL MEDICAL CENTER
355 BEDS
CATAWBA VALLEY
COMMUNITY COLLEGE
GOLF COURSE
LP FRANS
STADIUM
GOLF COURSE
ELEMENTARY SCHOOL
H&R BLOCK
HICKORY MUSEUM OF ART
63,000 VPD
23,000 VPD
28,000 VPD
44,000 VPD
43,000 VPD
33,000 VPD
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CHARLOTTE (54 MILES)
Aerial
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
MEDICAL PARK DRIVE
ZION CHURCH ROAD
HARRIS FARM ROAD
FLEE
TWO
OD
DRI
VE
CENTER STREET
127127
321
MED
ICA
L PARK DRIVE
23,000 VPD
21,000 VPD
43,000 VPD
6,700 VPD
PRESCHOOL
ASSISTED LIVING
H&R BLOCK
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Surrounding Retail Site Plan
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
ZION CHURCH RD
Retail Aerial
3,500VPD
23,000 VPD
28,000 VPD
321
127
NON-PROFIT NURSING HOME 101 RESIDENTS
HICKORY SQUARE
APARTMENTS108 UNITS
TWIN CEDARS108 UNITS
VILLAS AT TWIN CEDARS
40 UNITS
7This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
MADISON SCHOOL
Surrounding Retail
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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
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Income & Expense
CURRENT PROPOSED FINANCING*Acquisition Price: $5,779,000 Loan Amount $3,756,350 Capitalization Rate: 8.50% Principal $2,022,650Price Per Square Foot: $105.79 LTV 65%Total Leased (SF): 88.47% 48,327 Interest Rate 5.25%Total Vacant (SF): 11.53% 6,300 Amortization 25Total Rentable Area (SF): 100.0% 54,627 Term 10 Year
INCOME PER/SF Net Operating Income $491,208
Scheduled Rent $11.39 $550,530 Debt Service $270,118
CAM Reimbursement Revenue $1.06 $51,015 Pre-Tax Cash Flow $221,090
Taxes Reimbursement Revenue $0.78 $37,926 Debt Coverage Ratio 1.82
Insurance Reimbursement Revenue $0.13 $6,347
EFFECTIVE GROSS INCOME $645,818 Pre-Tax Leveraged Cash-on-cash Return 10.93%
Principal Pay down (Year 1 of Ownership) $74,690
EXPENSES PER/SF Total Return $295,779
CAM $1.32 $71,891 Yield 14.62%
Taxes $0.80 $43,796 *Note: Proposed financing terms and conditions are for informational purposes only and subject to change. Please contact agent for more details.
Insurance $0.14 $7,628Management (4% Fee) $0.47 $25,833Capital Reserves ($0.10/ft) $0.10 $5,463
TOTAL OPERATING EXPENSES $2.83 $154,610
NET OPERATING INCOME $491,208
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
TENANT SQ. FT. % OF GLA OPTIONS YEARLY
RENTYEARLY RENT/SF INCREASE EXPENSES
CENTER TOTAL #REF!Lowe's Foods* 41,127 75.29% 3/30/2005 3/29/2025 4 x 5-years $433,890 $10.55 NNN with CAM cap of
$39,071
Great Clips* 1,200 2.20% 7/1/2006 MTM None $15,000 $12.50 NNN 15% admin on AM/INS
Studio 127 Nail Salon 1,200 2.20% 7/1/2005 6/30/2023 None $20,400 $17.00 $17.50/SF(July 2019)
NNN 15% admin on AM/INS
China Garden House* 2,400 4.39% 8/1/2012 8/31/2022 None $34,200 $14.25 NNN with 7.5% cap on CAM/Tax/Ins.
Smoker Friendly 1,200 2.20% 6/1/2006 MTM None $17,400 $14.50 NNN 15% admin on CAM/INS
H&R Block 1,200 2.20% 2/1/2013 4/30/2023 None $17,040 $14.20 NNN 15% admin on CAM/INS
Wells Fargo ATM 0 0.00% 9/1/2005 8/31/2020 1 x 5-year $12,600 N/A NNN 15% admin on CAM/INS
Vacant (fmr Blockbuster) 5,100 9.34%
Vacant (fmr cleaner) 1,200 2.20%
Occupied 48,327 88.47% TOTALS $550,530 $11.39
Vacant 6,300 11.53%
Total 54,627 100.0%
* Tenant reports sales and may be eligible for additional percentage rent. Inquire with broker for more information
TENANT INFO
TERM
Projected Market rent: $12.50 psf/year
Projected Market rent: $12.50 psf/year
LEASE TERMS ADDITIONALRENT SUMMARY
2/4/2019 Capital Pacific Real Estate Brokerage Co.
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Rent Roll
EXPENSES AND REIMBURSEMENTS
TENANT CAM TAXES INSURANCE TENANT SALES
Lowe’s Foods Not to exceed $0.95 PSF Pro rata Pro rata Tenant Reports*
Great Clips Pro rata Pro rata Pro rata Tenant Reports*
Studio 127 Nail Salon Pro rata Pro rata Pro rata Not Required
China Garden House Pro rata Pro rata Pro rata Tenant Reports*
Smoker Friendly Pro rata Pro rata Pro rata Not Required
H&R Block Pro rata Pro rata Pro rata Not Required
Wells Fargo ATM Gross Gross Gross N/A
Vacant 1 Pro rata Pro rata Pro rata N/A
Vacant 2 Pro rata Pro rata Pro rata N/A
*Tenant reports sales and may be eligible for additional percentage rent. Inquire with broker for more information.
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
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Lease Abstract and Provisions
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Tenant Overview
12This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Lowes Foods is a unique chain of supermarkets that focuses on providing its customers with the freshest products offering the best value of homegrown grocery items, with a focus on supporting local farms and businesses. The company’s stores also carry food staples such as fresh meat, dairy, bread, produce, and much more. They also offer their customers online ordering with curbside pickup and catering.
Founded and headquartered in Winston-Salem, North Carolina, Lowes Foods has grown to over 97 full-service supermarkets throughout North Carolina, South Carolina, and Virginia in the last 60 years.
Lease signed by: Lowe’s Food Stores, Inc.
LOWES FOODS INVESTS OVER 1.5 MILLION IN HICKORY NC STORE
October 16, 2016 (Comvest) Over the summer the Lowes Foods at Mountain View Marketplace celebrated it’s “grand re-opening” following a $1.6 million remodel.
LOWES FOODS’ GRAND REOPENING TO HIGHLIGHT A NEW APPROACH TO BUYING FOOD
August 15, 2015 (Hickory Record) After careful planning and design they undertook a sweeping redesign of the store that lasted six months.
CLICK HERE FOR THE FULL ARTICLE
CLICK HERE FOR THE FULL ARTICLE
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H&R Block is a global consumer tax services provider, having prepared approximately 800 million tax returns by and through retail locations and digital solutions since 1955. There are approximately 12,000 company-owned and franchise retail locations in all 50 states, Puerto Rico and other U.S. territories, on U.S. military bases around the world, and in Canada, Australia and India. Taxpayers have access to more than 70,000 tax professionals with the H&R Block brand. An H&R Block branded retail office is located within five miles of 95 percent of Americans – covering all demographics and income levels. The company is the largest assisted tax preparer in the U.S., with 15% market share. In fiscal year 2018, H&R Block had annual revenues of over $3.1 billion with over 23 million tax returns prepared worldwide.
$3.1 Billion in 2018 Revenues
12,000 company-owned and franchise retail tax offices worldwide
Tenant Overview
13This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Smoker Friendly is a chain of over 800 independently owned and operated retail stores offering a wide-variety of cigarettes, cigars & pipe tobacco, plus electronic smoking supplies & accessories.
ABOUT SMOKER FRIENDLY
Lease signed by: Catawba Business Consultants, Inc. dba H&R Block
Lease signed by: MSMB, Inc. a North Carolina Corporation dba Smoker Friendly
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Tenant Overview
14This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Great Clips, Inc., headquartered in Minneapolis is the world’s largest and fastest growing hair salon brand in the $211 billion hair care industry. Great Clips is a 100% franchised company with more than 4,200 salons across North America. In 2017 alone, 1,200 franchisees employed nearly 40,000 Great Clips stylists who gave 106 million haircuts at Great Clips salons across the United States and Canada. Great Clips stylists receive ongoing training to learn the Great Clips customer care system and advanced technical skills. As a walk-in salon, Great Clips provides value-priced, high-quality haircare for men, women and children. No appointments are needed, and salons are open nights and weekends.
$1.4 billion system wide revenue in 2017
Lease signed by: Dixie Clippers, Inc. dba Great Clips; and, Michael Dean Bloodworth
China Garden is a local Chinese restaurant that offer dumplings, fried rice and other popular Chinese dishes, in addition to sushi. With an ample menu and low prices, China Garden is a staple throughout the Hickory community.
ABOUT CHINA GARDENLease signed by: Ying Hui and Yeqing Zheng, dba China Garden Restaurant
Studio 127 Nail Salon is a nail salon offering trendy, fashion-forward nail designs. Customers can choose from any of their services such as gel manicures, pedicures, traditional manicures, and nail art. Nail salons have consistently remained a needed service, bringing in $8.53 billion into the U.S. in 2017. Salons thrive in their ability to accommodate clients with appointments as well as walk-ins.
ABOUT STUDIO 127 NAIL SALONLease signed by: Millie Myli Her
POPULATION
1-MILE 3-MILES 5-MILES
2010 2,599 18,732 49,676
2018 2,730 19,858 51,126
2023 2,280 20,585 52,289
2018 HH INCOME
1-MILE 3-MILES 5-MILES
Average $76,121 $58,863 $60,774
HICKORY
THE AVERAGE HOUSEHOLD INCOME WITHIN A 1-MILE RADIUS
IS OVER $76K
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Demographics
CHARLOTTE(58 MIN, 54 MILES)
TOP EMPLOYERS IN CATAWBA COUNTY
EMPLOYER
Catawba County Schools
Frye Regional Medical Center
Comm/Scope
Merchants Distributors (MDI) Alex Lee, Inc.
Hickory Springs
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HICKORY, NORTH CAROLINA
HICKORY, North Carolina is located in the foothills of the Blue Ridge Mountains 60 miles northwest of Charlotte and 77 miles northeast of Asheville. The city rests at the junction of Interstate 40, State Highways 70 and 321. Hickory is the principal city in the Hickory–Lenoir–Morganton MSA, which has an estimated population of over 366,000 residents, and is included as part of the Charlotte–Concord Combined Statistical Area.
Nearby Lake Hickory was created on the Catawba River in 1927 with the completion of the Oxford Dam 11 miles northeast of Hickory. The lake covers almost 4,223 acres with 105 miles of shoreline, providing the region with a recreation hub for boating, fishing, and other water based activities.
HICKORY is home to one of the oldest furniture manufacturers in the U.S. that is still located and operated on the original site. Hickory
White, formerly known as Hickory Manufacturing Company, was built in 1902 and has been in continuous operation ever since. It is estimated that at one time 60% of the nation’s furniture was produced within a 200-mile radius of Hickory.
HICKORY MANUFACTURING
Location Overview
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40,274
HICKORY POPULATION (ESTIMATED)
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
LAKE HICKORY
We’d love to hearfrom you.
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
JOHN [email protected]: 415.274.2715
CA DRE# 01440360
IN CONJUNCTION WITH NC LICENSED BROKER: Stuart Mullen
Commercial Real Estate Carolina, LLC
PH: 704.661.9800
JUSTIN SHARP [email protected]: 415.274.7392
CA DRE# 01895013
CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM:
JOE CACCAMOJOHN ANDREINI
ZANDY SMITH
DAVE LUCAS
RICK SANNER
CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS
JACK NAVARRAJUSTIN SHARP
JUSTIN STARK
JUSTIN [email protected]: 415.274.2706CA DRE# 01856228
CLICK HERE FOR NORTH CAROLINA DISCLOSURE
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