• Single-Tenant Safeway Supermarket in Severna Park, Maryland | 15 Miles from Baltimore and 10 Miles from Annapolis
• Brand New 20-Year Absolute-Net Lease | Zero Landlord Responsibilities
• Strong Rent Increases | 1.50 Percent Annual Increases in Years Two Through Five | 7.50 Percent Rent Increases Every Five Years Beginning in Year 11
• Corporate Guaranty | Albertsons Companies, Incorporated (Inc) | Number 49 on June 2017 Fortune 500 List | Number Three on June 2017 Forbes America’s Largest Private Companies
• Healthy Unit Level Financials | Low Rent-to-Sales | Tenant Reports High Sales Per Square Foot | Contact Listing Broker for Details
• Commitment to Location | Tenant Has Been Operating at this Location for Nearly 30 Years
• Signalized, Hard Corner Intersection of Benfield Road and Jumpers Hole Road | More Than 31,000 Vehicles Per Day (VPD)
• Asset is Nearby Three Schools | Severna Park High School, Severna Park Middle School, and Benfield Elementary School | Nearly 4,000 Students Within One Mile
• Severna Park High School is a Brand New $130 Million School Delivered in Early 2017 | Athletic Complex (Phase II) On Track to be Completed in 2018
Marcus & Millichap is pleased to present this Safeway Supermarket in Severna Park, Maryland; which is 15 miles from Baltimore and 10 miles from Annapolis. Safeway is operating under a 20-year absolute-net lease with zero landlord responsibilities. There are 1.50 percent annual rent increases in years two through five, and 7.50 percent rent increases every five years beginning in year 11. The lease is backed by a corporate guaranty from Albertsons Companies, Incorporated (Inc), who registered more than $60 billion in revenue across 2,324 supermarkets nationwide. The tenant reports strong unit level performance with high sales per square foot and a low rent-to-sales ratio; contact the listing broker for more information.
This single-tenant supermarket offering is the anchor tenant in the Benfield Village Shopping Center, which is situated at the signalized, hard corner intersection of Benfield Road and Jumps Hole Road. More than 31,000 vehicles pass through this intersection daily. The tenant has been operating at this location since 1989, a near 30-year operating history.
This asset is also nearby three schools representing a combined enrollment of nearly 4,000 students. Severna Park Middle School and Benfield Elementary school are just north of the subject property, off Jumpers Hole Road. Severna Park High School is approximately one mile east of Safeway. This brand-new 350,000-square foot high school was delivered in January 2017 featuring an open courtyard at the core with two entrance lobbies linked by passage corridors. The $350-million project was the first new high school building in the county and is currently pursuing a Leadership in Energy and Environmental Design (LEED) Silver Certification. Severna Park High School has increased its capacity to serve 300 additional students.
Safeway benefits from affluent demographics. The population has grown more than 9.5 percent in the one-mile radius and the average household income is more than $164,000. With more than 138,400 residents in the five-mile radius, the average household income is more than $115,000.
In 1915, M.B. Skaggs, an ambitious young man in the small town of American Falls, Idaho, purchased a tiny grocery store from his father. M.B.’s business strategy, to give his customers value and to expand by keeping a narrow profit margin, proved spectacularly successful. By 1926 he was opening 428 Skaggs stores in 10 states. M.B. doubled the size of his business in 1926, when he merged his company with 322 Safeway (formerly Selig) stores and formed Safeway, Incorporated (Inc). M.B. Skagg’s value vision still drives Safeway today, though on a dramatically larger scale. In January 2015, Safeway merged with Albertsons, creating one of the largest food and drug retailers in the country. With Safeway stores in 19 states, the Safeway team is proud to carry on the tradition that M.B. Skaggs began nearly 100 years ago in American Falls, Idaho.
Albertsons is one of the largest food and drug retailers in the United States with a strong local presence, but on a national scale. As of February 25, 2017, the company operated 2,324 stores across 35 states and the District of Columbia under 20 well-known banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Carrs and Haggen. Albertsons operates in 122 Metropolitan Statistical Areas (MSAs) in the United States. The company is ranked number one or number two by market share in 66 percent of those Metropolitan Statistical Areas (MSAs). Albertsons focuses on providing their customers with a service-oriented shopping experience, including convenient and value-added services through 1,786 pharmacies, 1,227 in-store branded coffee shops, and 385 adjacent fuel centers. The company employs nearly 273,000 talented and dedicated employees serving on average 34 million customers each week.
Founded in 1939 and based in Boise, Idaho, Albertsons Companies, LLC (“Albertsons”, or the “Company”) is the 2nd largest traditional grocer in the UnitedStates serving over 34 million customers per week and generating $60 billion in sales annually. In January 2015, Albertsons merged with Safeway, creating abest-in-class organization dedicated to bringing a better shopping experience to customers across the country. The Company’s powerful combination of stronglocal presence and national scale, vast range of brands and products, and service-oriented staff enable them to meet evolving shopping preferences.As of June 2017, the Company operated 2,329 stores across 35 states under 20 well-known banners with long operating histories. Albertsons has grownstrategically through a series of strategic acquisitions in recent years into a $2.8 billion adjusted EBITDA company as of fiscal year 2016 ended February 25, 2017,and as of Q1 2017the Company had already generated $771.7 million in adjusted EBITDA.
COMPANY BANNERS
2,300+retail stores
Operates in35 states
including Washington, DC$59.7 billion
annual sales
34 millioncustomers
per week
One of the largest retail employers
273,000 jobs
Home delivery in8 of top 10US marketsby end of FY 2017
1,700+ in-storepharmacies
380+ fuelstations
28 distributioncenters
18 food andbeverage plants
Nation’s largest brandof USDA-certified
organic products
By market sharein 66% of the
122 MSAsin which it operates
#1 / #2
4th largeste-commerce
platform in the US
2nd largesttraditional
grocer in the US
$2.8 billionadj. EBITDA
in FY 2016
$Ex perienced management
with 32 years in retail on average
Currently ex ecuting$800 million
synergy realization plan
500 new itemslaunched every year
Founded in 1939 and based in Boise, Idaho, Albertsons Companies, Inc (“Albertsons”, or the “Company”) is the 2nd largest t radi t ional grocer in the Uni ted States serv ing over 34 mi l l ion customers per week and generat ing $60 b i l l ion in sales annual ly. In January 2015, Albertsons merged with Safeway, creat ing a best- in-class organizat ion dedicated to br inging a bet ter shopping exper ience to customers across the country. The Company’s powerful combinat ion of s t rong local presence and nat ional scale , vast range of brands and products , and serv ice-or iented staf f enable them to meet evolv ing shopping preferences.
As of June 2017, the Company operated 2 ,329 stores across 35 states under 20 wel l-known banners with long operat ing h istor ies . A lbertsons has grown strategical ly through a ser ies of s t rategic acquis i t ions in recent years into a $2.8 b i l l ion adjusted EBITDA company as of f iscal year 2016 ended February 25, 2017, and as of Q1 2017 the Company had a l ready generated $771.7 mi l l ion in adjusted EBITDA.
Note :• S to re counts based on pub l i ca l l y ava i l ab le in fo rmat ion• Wa lmar t , Cos tco , and Trage t g rocer ysa les based on a percen tage o f to ta l sa les as o f the la tes t f i sca l year.• Kroger and A lber tsons sa les exc lude fue l sa les o f ~$14 b i l l i on and ~$3 b i l l i on , respec t i ve l y
COMPETIT IVE LANDSCAPE
Albertsons Companies, Inc is one of the largest food reta i lers and the second largest t radi t ional grocers in the Uni ted States.
Severna Park is a vibrant, tight-knit community located in the heart of the Baltimore-Washington Metropolitan area. The city is centrally located between Baltimore and Annapolis. Severna Park is 15 minutes from Baltimore, and only 10 minutes from Annapolis. Additionally, the nation’s capital is less than 30 miles southwest. The Odenton Maryland Area Regional Commuter (MARC) station is only 15 minutes from Severna Park, connecting riders to Washington DC’s Union Station in under 30 minutes. Above all else, the key to Severna Park’s location is its proximity to the water. Severna Park’s beaches and community green spaces provide excellent gathering points that form the foundation of this wonderful community.
Severna Park High School is consistently ranked among the top high schools in the state of Maryland, making it one of the top 30 schools in the state. The new state-of-the-art Severna Park High School was delivered in early 2017. This 354,162-square foot building houses more than 1,750 students from grades nine through 12. The $130 million project is the first new high school building in the county in more than three decades. Severna Park High also has immensely successful sports teams with numerous state championship titles and has a strong reputation for theater and music. The annual production of Rock’n Roll Revival typically sells out all eight performances.
The Baltimore and Annapolis Trail is a 13-mile paved trail starting in Glen Burnie and passing through Pasadena, Severna Park, and Arnold, ending in Annapolis. The trail follows a former rail line that terminated service in 1968, and is crowded with joggers, walkers and bikers on nice days throughout the year. Most of the neighborhoods adjacent to the trail, and even some houses have entry points to access the trail, making it easily accessible to most Severna Park residents. Each spring, the trail hosts the popular Baltimore & Annapolis Trail Marathon and Half-Marathon.
Residents love the Baltimore & Annapolis retail corridor which backs up to the Baltimore & Annapolis Trail, making it accessible by foot and bike. Some local favorite retailers include: The Big Bean, a local coffee shop with tables in the shade along the Baltimore & Annapolis trail, Diehl’s Produce Farmstand, Savvy Consignment, Froyo House and Rita’s, and several great sit-down and carryout restaurants.
Marcus & Mi l l ichap hereby advises al l prospect ive purchasers of Net Leased property as fol lows:
The i n f o rma t i on con t a i ned i n t h i s Ma r ke t i ng B rochu re has been ob t a i ned f r om sou rces we be l i e ve t o be r e l i ab l e. Howeve r, Ma rcus & M i l l i c hap has no t and w i l l no t ve r i f y an y o f t h i s i n f o rma t i on , no r has Ma rcus & M i l l i c hap conduc ted any i n ves t i ga t i on r ega rd i ng t hese ma t t e r s . Ma rcus & M i l l i c hap makes no gua ran t ee, wa r r an t y o r r ep resen t a t i on wha t soeve r abou t t he accu racy o r comp le t eness o f an y i n f o rma t i on p ro v i ded .
As t he Buye r o f a ne t l e a sed p rope r t y, i t i s t he Buye r ’s r e spons i b i l i t y t o i ndependen t l y con f i rm t he accu racy and comp le t eness o f a l l ma te r i a l i n f o rma t i on be fo re comp le t i ng any pu r chase. Th i s Ma rke t i ng B rochu re i s no t a subs t i t u t e f o r you r t ho rough due d i l i gence i n ves t i ga t i on o f t h i s i n ves tmen t oppo r t un i t y. Ma rcus & M i l l i c hap e xp ress l y den i e s any ob l i ga t i on t o conduc t a due d i l i gence e xam ina t i on o f t h i s P rope r t y f o r Buye r.
Any p ro j ec t i ons , op i n i ons , a s sump t i ons o r e s t ima tes used i n t h i s Ma r ke t i ng B rochu re a r e f o r e xamp le on l y and do no t r ep resen t t he cu r r en t o r f u t u r e pe r f o rmance o f t h i s p rope r t y. The va l ue o f a ne t l e a sed p rope r t y t o you depends on f ac to r s t ha t shou l d be e va l ua t ed by you and you r t a x , f i n anc i a l and l ega l adv i so r s .
Buye r and Buye r ’s t a x , f i n anc i a l , l ega l , and cons t r uc t i on adv i so r s shou l d conduc t a ca re f u l , i ndependen t i n ves t i ga t i on o f an y ne t l e a sed p rope r t y t o de t e rm ine t o you r sa t i s f ac t i on w i t h t he su i t ab i l i t y o f t he p rope r t y f o r you r needs .
L i ke a l l r ea l e s t a t e i n ves tmen t s , t h i s i n ves tmen t ca r r i e s s i gn i f i c an t r i s k s . Buye r and Buye r ’s l ega l and f i n anc i a l adv i so r s mus t r eques t and ca re f u l l y r e v i ew a l l l ega l and f i n anc i a l documen t s r e l a t ed t o t he p rope r t y and t enan t . Wh i l e t he t enan t ’s pas t pe r f o rmance a t t h i s o r o t he r l oca t i ons i s an impo r t an t cons i de r a t i on , i t i s no t a gua r an t ee o f f u t u r e success . S im i l a r l y, t he l ease r a t e f o r some p rope r t i e s , i n c l ud i ng new l y -cons t r uc t ed f ac i l i t i e s o r new l y - acqu i r ed l oca t i ons , may be se t based on a t enan t ’s p ro j ec t ed sa l e s w i t h l i t t l e o r no r eco rd o f ac t ua l pe r f o rmance, o r compa rab l e r en t s f o r t he a r ea . Re tu r ns a r e no t gua r an t eed ; t he t enan t and any gua r an to r s may f a i l t o pay t he l ease r en t o r p rope r t y t a xes , o r may f a i l t o comp l y w i t h o t he r ma te r i a l t e rms o f t he l ease ; cash f l ow may be i n t e r r up t ed i n pa r t o r i n who l e due t o ma rke t , econom ic, env i r onmen ta l o r o t he r cond i t i ons . Rega rd l e s s o f t enan t h i s t o r y and l ease gua r an t ees , Buye r i s r e spons i b l e f o r conduc t i ng h i s /he r own i n ves t i ga t i on o f a l l ma t t e r s a f f ec t i ng t he i n t r i n s i c v a l ue o f t he p rope r t y and t he va l ue o f an y l ong- t e rm l ease, i n c l ud i ng t he l i k e l i hood o f l oca t i ng a r ep l acemen t t enan t i f t he cu r r en t t enan t shou l d de f au l t o r abandon t he p rope r t y, and t he l ease t e rms t ha t Buye r may be ab l e t o nego t i a t e w i t h a po ten t i a l r ep l acemen t t enan t cons i de r i ng t he l oca t i on o f t he p rope r t y, and Buye r ’s l ega l ab i l i t y t o make a l t e r na t e use o f t he p rope r t y.
By accep t i ng t h i s Ma r ke t i ng B rochu re you ag ree t o r e l ease Ma rcus & M i l l i c hap Rea l E s t a t e I n ves tmen t Se r v i ces and ho l d i t ha rm less f r om any k i nd o f c l a im , cos t , e xpense, o r l i ab i l i t y a r i s i ng ou t o f you r i n ves t i ga t i on and /o r pu r chase o f t h i s ne t l e a sed p rope r t y.
540 Benfield Road - SEVERNA PARK, MARYLAND 21146
Broker of RecordBryn Mer rey
7200 Wiscons in Ave, Su i te 1101Bethesda, MD 20814
