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Rite Aid 8360 South Saginaw Street | Grand Blanc, MI OFFERING MEMORANDUM ™
R i t e A i d8360 South Saginaw Street | Grand Blanc, MIO F F E R I N G M E M O R A N D U M
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E XC LU S I V E LY L I S T E D BY
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BILL PEDERSENAssociate
Bi l l [email protected] (949) 432-4501MOB (831 ) 246-0646LIC # 01975700
KYLE B MATTHEWS, CCIMChairman & CEO
[email protected] (310) 919-5757MOB (310) 622-3161LIC # 01469842
KYLE MATTHEWSBroker of Record
Lic # 6505399495
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C O N T E N T SINVESTMENT OVERVIEWInvestment Highl ights
6 FINANCIAL OVERVIEWExecut ive SummaryAnnual ized Operat ing DataTenant Summary
8 TENANT OVERVIEWRite Aid
1 0 PROPERTY DESCRIPTIONThe Offer ingSi te Descr ipt ionBird’s EyeTenant Map
1 4 AREA OVERVIEWGrand Blanc, MIDemographicsRegional Map
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I n v e s t m e n t H i g h l i g h t s
LIMITED COMPETITION
• Closest Walgreens is over three and a half miles away
EXCELLENT RETURN
• Listed at a 7.25% cap with the ability to achieve nearly 9.50% cash-on-cash return
LONG TERM LEASE
• Over 10 years remaining on lease
• NN+ lease with minimal landlord responsibilities
PROTOTYPE STORE FORMAT
• Prototype Rite Aid format with double drive-thru pharmacy
IDEAL LOCATION
• Located on a hard corner and a signalized intersection
• Close proximity to several medical facilities, including Genesys Hospital, the #8 ranked hospital in
Michigan
• Centrally located between several golf courses and schools
• High average household incomes - 1-mile: $108,200; 3-mile: $91,397; 5-mile: $82,105
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R i t e A i d8360 South Saginaw Street Grand Blanc, MI 48439
List Price ............................................................................................ $5,794,193
CAP Rate - Current .................................................................................. 7.25%
Gross Leasable Area ....................................................................... ± 11,180 SF
Lot Size ..........................................................................................± 2.48 Acres
Year Built ...................................................................................................... 2006
Annualized Operating DataMonthly Rent Annual Rent Cap Rate
Current $35,006.58 $420,079.00 7.25%
Option 1 $35,938.25 $431,259.00 7.44%
Option 2 $36,869.92 $442,439.00 7.64%
Option 3 $37,801.58 $453,619.00 7.83%
Option 4 $38,733.25 $464,799.00 8.02%
Tenant Summary
Tenant Trade Name Rite Aid
Type of Ownership Fee Simple
Lease Guarantor Corporate
Lease Type NN+
Roof and Structure Landlord Responsible
Original Lease Term Years
Lease Commencement 11/18/05
Rent Commencement 3/22/07
Lease Expiration Date 3/21/27
Term Remaining ±10.17
Increases In Options
Options Four (4) five (5) year options
Cash Flow Analysis
Equity Requirement (30%) $1,738,258
Principal Loan Amount $4,055,935
Annual NOI $420,079
Annual Debt Service $255,361
Cash Flow After Debt Service $164,718
Cash-on-Cash 9.48%
Debt Quote
Loan to Value Up to 70%
Interest Rate 4.80%
DCR 1.25x
Term 10 Years
Amortization 30 Years
Recourse Yes
Debt financing quote provided by:Brian KrebsBarrington Capital Corporation(949) [email protected]
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Property Name Rite Aid
Property Type Net Leased Drugstore
Parent Company Trade Name Rite Aid Corporation
Ownership Public
Credit Rating B
Rating Agency Standard & Poor’s
Revenue $30.74 B
Net Income $165.47 M
Stock Symbol RAD
Board NYSE
No. of Locations ± 4,600
No. of Employees ± 88,000
Headquartered Camp Hill, Pennsylvania
Website www.RiteAid.com
Year Founded 1962
TENANT OVERVIEW
Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. The company operates through two segments, Retail Pharmacy and Pharmacy Services. The Retail Pharmacy Segment sells prescription drugs; and a range of other merchandises, such as over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, and other every day and convenience products. Rite Aid stores generate roughly 70% of their sales from filling prescriptions, while the rest comes from selling health and beauty aids, convenience foods, greeting cards, and more, including some 3,500 Rite Aid brand private-label products. More than 60% of all Rite Aid stores are freestanding and over half have drive-through pharmacies.
GEOGRAPHIC OUTREACH
Rite Aid operates stores in 31 US states and the District of Columbia. Its largest markets are New York, California, and Pennsylvania, home to more than a third of its drugstores.
STRATEGY
A key focus of the company’s strategy for 2017 is to continue expanding its retail healthcare capabilities to provide a higher level of care to the communities it serves. This includes continuing to introduce unique and integrated offerings to the healthcare marketplace by leveraging its conveniently located retail stores and the capabilities of its 100% owned subsidiaries Health Dialog, RediClinic and EnvisionRx.
S U B J E C T P R O P E R T Y
S A G I N A W R O A D± 4 3 , 0 0 0 A D T
P R O P E R T Y D E S C R I P T I O N
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T h e O f f e r i n gProperty Name Rite Aid
Property Address 8360 South Saginaw Street
Grand Blanc, MI 48439
Assessor’s Parcel Number 25-12-23-100-041
Site DescriptionNumber of Stories One
Year Built 2006
Gross Leasable Area (GLA) 11,180
Lot Size ±2.48
Type of Ownership Fee Simple
Parking ± 40 Surface Spaces
Parking Ratio 3.58 : 1,000 SF
Landscaping Professional
Topography Generally Level
ConstructionFoundation Concrete Slab
Framing Steel
Exterior Brick
Parking Surface Asphalt
Roof Flat
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B i r d ’ s E y e
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Te n a n t M a p
S u b j e c t P r o p e r t y
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G r a n d B l a n c , M I L o c a l & R e g i o n a l M a p
Grand Blanc Charter Township is a unit of government for more than 35,700 people who reside in southeast Genesee County just a few miles south of Flint, Michigan. The City of Grand Blanc, Michigan is located in Genesee County approximately 45 minutes north of metro Detroit. The township encompasses 36 square miles which surrounds the City of Grand Blanc. The city and township have a combined population of about 43,000 people.
Also available are medical centers, restaurants, and shopping. Grand Blanc is the home of the world headquarters for General Motors Service Parts Operations and the award winning Genesys Regional Medical Center. Grand Blanc is said to be “Planned, Progressive, and Prestigious.”
R E G I O N A L M A P
L O C A L M A P
This Teaser contains select informat ion pertaining to the business and af fa i rs of Rite Aid located at 8360 South Saginaw Street, Grand Blanc, MI (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Teaser may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Teaser is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Teaser or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.
By acknowledging your receipt of th is Teaser for the Property, you agree:
1 . The Teaser and i ts contents are conf ident ia l ;
2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and
3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Teaser or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.
Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Teaser or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.
I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Teaser.
A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.
This Teaser shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Teaser.
C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T
BILL PEDERSENAssociate
Bi l l [email protected] (949) 432-4501MOB (831 ) 246-0646LIC # 01975700
KYLE B MATTHEWS, CCIMChairman & CEO
[email protected] (310) 919-5757MOB (310) 622-3161LIC # 01469842
KYLE MATTHEWSBroker of Record
Lic # 6505399495
E XC LU S I V E LY L I S T E D BY
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