Shoppes at Easley. Investment Package. 5,569 Square Feet $2,505, % Cap Rate

Transcription

1 Shoppes at Easley Investment Package 4839 Calhoun Memorial Highway (US Hwy 123), Easley, Pickens County, SC ,569 Square Feet $2,505, % Cap Rate For investment information: J. Tyson Glasser, CCIM Investment Sales Director o c

2 Table of Contents Executive Overview Property Highlights...3 Investment Summary...4 Financial Highlights...5 Rent Roll...6 Tenant Profiles...7 Property Overview Site Plan...8 Property Photos...9 Aerial...10 Area Overview Trade Area Photos...11 Location Map...12 Market Profile Demographics Contact Information...19

3 Property Highlights Brand new construction completed in Fall 2014 and 100% leased Strong tenant mix with national brands and corporate leases Convenient access and high exposure to a 4 lane US highway with traffic counts of +/- 33,500 cars daily Powerful trade area with Walmart, Kohl s, Academy Sports + Outdoors, Marshalls, Petsmart, Burke s Outlet and Sam s Club directly across the street Strategic regional positioning along the I-85 corridor between Atlanta and Charlotte 8 miles west of downtown Greenville, which has an MSA population of approx. 1.3 million Over 52,000 people with average household income of $60,000 in a 5 mile radius

4 Location: Land Size: Building Size: Upstate SC along US Hwy 123 about 8 miles west of downtown Greenville +/ Acres +/- 5,569 SF Building Age: New construction completed Fall 2014 Occupancy: 100% leased to 3 tenants Tenant Lineup: Starbucks 1,855 SF 33.3% Berkshire Hathaway 1,210 SF 21.7% Vitamin Shoppe 2,504 SF 45.0% Investment Summary TOTAL 5,569 SF 100% Lease Types: Lease Terms: Option Terms: Landlord Responsibility: Tenants Responsibility: Double Net (Full reimbursement of CAM, Taxes, Insurance) 5-10 years (See Rent Roll for specifics) 1-4 options at 5 years each (See Rent Roll for specifics) Roof, structure, parking lot, common area CAM, Taxes, Insurance, HVAC, Interior Frontage: +/- 137 feet on Hwy 123 Signage: Access: Parking: Zoning: Declaration: Co-Tenancy: Traffic Counts: 12 foot 3 panel monument on Hwy 123 and each store front Right in/right out on Hwy 123 and Rear entry/exit available via signalized intersection +/- 40 spaces provided (3 handicap spaces) GCD (General Commercial District) Property subject to a Declaration of Easements, Covenants and Restrictions with adjacent properties None +/- 33,500 on Hwy 123 west of property (2013 SC DOT) DEMOGRAPHIC SUMMARY MILE 5 MILE 7 MILE POPULATION 22,229 52, ,176 HOUSEHOLDS 8,877 20,451 39,106 AVERAGE HH INCOME $65,660 $60,526 $53,666 MEDIAN HH INCOME $52,418 $47,953 $40,456

5 Financial Highlights Purchase Price: $2,505,700 Cap Rate: 6.10% (based on stabilized NOI) Annual Base Rent: Starbucks $66, ($36.67 PSF years 1-10) Berkshire Hathaway $29, ($24.00 PSF years 1-2) Vitamin Shoppe $67, ($27.00 PSF years 1-5) TOTAL $162, Reimbursements: CAM, Taxes, Insurance fully reimbursable Administrative Fees: 10% for each tenant (Charged on CAM only) Vacancy Factor: 3% of Gross Income Operating Expenses: CAM, Taxes, Insurance estimated at $5.42 PSF in 2015 Management Fee: 3% of Annual Base Rent Capital Reserves: None (new construction) Net Operating Income: $152, (projected year 1) Assumable Financing: Property delivered free and clear of debt at closing Proposed Financing: Loan-to-Value % Interest Rate % Amortization years Term years Annual Debt Service - $119,034 (using 75% LTV, 4.0% interest, 25 year amort) After Debt Cash Flow - $33,815 Cash-on-Cash Return - 5.4% Tenant Financials: Available online or contact broker for details

6 Rent Roll Suite Tenant Square Feet Lease Start Lease Expiration Rent PSF Annual Rent Rent Bumps CAM/Tax/ Insurance Admin. Fee Options (5 years each) A Starbucks (Starbucks Corp.) 1,855 10/7/14 2/28/25 $35.58 $66,000 None NNN 10% Option 1: $40.33 Option 2: $44.37 Option 3: $48.80 Option 4: $53.68 B C Bershire Hathaway Home Services / 1,210 C. Dan Joyner Realtors Vitamin Shoppe (Vitamin Shoppe Industries Inc.) TOTALS 5,569 Fall 2015 Fall 2020 $24.00 $29,040 5% in Year 3 and 5 NNN 10% 2,504 8/30/14 8/31/24 $27.00 $67,500 10% in Year 6 NNN 10% Option 1: $27.12 Option 2: $30.68 Option 1: $32.67 Option 2: $35.94 Notes Starbucks has the right to terminate lease anytime after 5 years with 120 days notice and payment of 12 months base rent plus unamortized cost of lease commission and tenant allowance.

7 Tenant Profiles Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. According to its annual report, Starbucks will have over 20,000 retail stores on 6 continents by the end of Its stores offer regular and decaffeinated coffee beverages, Italian-style espresso beverages, cold blended beverages, iced shaken refreshment beverages, premium Tazo teas, packaged roasted whole bean and ground coffees, Starbucks VIA Ready Brew soluble coffees. Starbucks coffee and Tazo tea K-Cup portion packs, Starbucks Refreshers beverages, juices, and bottled water. The company s stores also provide various food items, including pastries, prepared breakfast and lunch sandwiches, oatmeal, and salads. In addition, it licenses the rights to produce and distribute Starbucks branded products to The North American Coffee partnership with the Pepsi-Cola Company, as well as licenses its trademarks through licensed stores, grocery, and national food service accounts. The company offers its products under the Starbucks, Tazo tea, Seattle s Best Coffee, Starbucks VIA Ready Brew, Starbucks Refreshers, Evolution Fresh, La Boulange, and erismo brand names. Starbucks Corporation was founded in 1985 and is based in Seattle, Washington. Starbucks is traded on NASDAQ as SBUX. Every body matters is not just our tagline; it s our mantra. It communicates our focus on helping to make the world healthier, one life at a time. From the time we opened our first store in 1977 in North Bergen, NJ, our mission has been to help people achieve their health and wellness goals. Though we ve changed over the years, our values have remained the same. The Vitamin Shoppe has over 600 stores in the United States and we have expanded internationally into Canada and Panama. However success for us is not measured by how many stores we open. Success for us means providing a fulfilling customer experience to each person who shops in our store. Our goal is to make a healthy difference in people s lives every day and travel with each customer on their wellness journey. It matters to us that our customers know we are a reliable resource for their favorite products and also a place where highly trained health enthusiasts are always excited to advise, explain, and share healthy inspiration. From our huge range of top-quality supplements (over 16,500), to our free healthy awards club and our everyday low prices, we make it easier for our customers to make healthier choices every day. Traded on NYSE as VSI. Berkshire Hathaway HomeServices is a brand-new real estate brokerage franchisee network built for a new era in residential real estate. Our franchisees are refreshingly real, whether they re operating in the high-end residential markets, in entry-level neighborhoods, in commercial real estate, or in the kind of middle-class, middle-market communities that are integral to society. Our vision is crystal clear: To be the best-recognized and most highly respected homeownership services brand in the United States and worldwide. Our mission is succinct: To provide services and support that significantly increase the growth and profitability of the network s affiliates and agents. Our lineage is Good to know : HSF Affiliates LLC, based in Irvine, CA, operates Berkshire Hathaway HomeServices. The company is a joint venture of which HomeServices of America, Inc., the nation s second-largest, full-service residential brokerage firm, is a majority owner. HomeServices of America is a Berkshire Hathaway Inc. affiliate. Berkshire Hathaway is a worldwide holding company based in Omaha, NE. Its chairman and CEO is Warren Buffett, often referred to as the Oracle of Omaha, who according to Time magazine s ranking is among the world s most influential people.

8 Site Plan

9 Property Photos

10 Aerial

11 Trade Area Photos

12 Location Map

13 Market Profile Easley, SC Easley is a principal city of the Greenville Mauldin Easley Metropolitan Statistical Area. The City of Easley covers square miles of land, with a population of 19,993 at the 2010 census. Situated at the base of the beautiful Blue Ridge Mountains, Easley is near numerous waterfalls, cultural and heritage sites, hiking trails, rivers, and lakes. Easley is the largest city in Pickens County and is located in the I-85 boom belt of Upstate SC. Manufacturing is the county s primary source of economic growth with approximately 150 facilities in the Easley, Liberty, and Pickens areas. Pickens County is also an emerging automotive hub with Clemson University s world class ICAR (International Center for Automotive Research) facility and the North American BMW manufacturing plant located within a 45-minute drive. Economy: Greenville, SC Home to internationally recognized industries, Greenville is the economic center of the Upstate. Greenville s ability to attract both small local companies and major international corporations is the result of an uncommon cooperation between city government and the private sector. Recognized as a leader in developing public/private partnerships, Greenville s entrepreneurial spirit and strong workforce creates an incredible magnet for business. In addition, Greenville is located in the heart of a right-to-work state and a foreign trade zone. With more than 250 international firms, the Upstate boasts the highest international investment per capita in the nation. Greenville is home to such national and international corporations as Fluor and Hubbell Lighting - with BMW and Michelin North America located nearby. Transportation: Greenville, SC Strategically situated along the mega-growth I-85 corridor between Atlanta, GA, and Charlotte, NC, Greenville is easily accessible via air, road and rail. Greenville is located 100 miles from the capitol city of Columbia and only 200 miles from the Port City of Charleston. Greenlink is the Greenville area public transportation service. Greenlink offers 11 fixed routes to destinations all across Greenville County. All Greenlink buses are wheelchair accessible, and each Greenlink bus is equipped with a bike rack to make commuting easier for bike riders. The Greenlink system also features GAP, a complimentary ADA para transit service provided for individuals who, because of their disability, are unable to use Greenlink s fixed route bus service. The City entered into a partnership with the Greenville Drive Baseball Team to make the trolleys available to the public. The Greenville Drive owns the two trolleys, and the City operates and maintains them. Best of all, downtown trolley service is provided to all free of charge. Whenever there is a home game or special event for the Greenville Drive Baseball Team the trolleys will carry fans between County Square and West End Field.

14 Market Profile Education: Greenville, SC Greenville County has the largest school district in South Carolina, and it is the 47th largest school system in the United States. Greenville is home to the International Baccalaureate Program, the South Carolina Governor s School for the Arts, and the Roper Mountain Science Center. Eight magnet academies offer unique educational opportunities at the elementary, middle, and high school levels. Each academy offers distinct programs in foreign language, communication arts, pre-engineering and health professions, international studies, science and technology, or yearround education. Greenville also has a number of highly accredited private schools. Christ Church Episcopal is an independent, Episcopal, co-ed day school serving more than 950 students in grades Primer It is one of only five schools in North America to offer an International Baccalaureate Program curriculum in grades K-12. There are numerous colleges and universities in the Greenville Area: Bob Jones University, Clemson University, Converse College, Furman University, Greenville Technical College, North Greenville University, Southern Wesleyan University, University of SC-Spartanburg, Virginia College - Greenville Campus, Webster University, and Wofford College. Healthcare: Greenville, SC Greenville Health System (GHS) is a public not-for-profit academic healthcare delivery system committed to medical excellence through clinical care, education and research. The organization is governed by a volunteer board made up of 12 members representing Greenville County, as well as two seats that are outside the county. Our Mission: Heal compassionately. Teach innovatively. Improve constantly. Our Vision: Transform health care for the benefit of the people and communities we serve. Our Values: Together we serve with integrity, respect, trust and openness. GHS first opened its doors as City Hospital back in Over the last 100 years, the organization has evolved from a single free-standing hospital to a highly integrated delivery system and now an academic medical center. In that time, GHS has become the state s largest not-for-profit healthcare system and an advocate for healthy living initiatives, such as LiveWell Greenville, the GHS Swamp Rabbit Trail and Greenville B-cycle, the city s new bike share program. We are a health resource for our community and a leader in transforming the delivery of health care for the benefit of the people and communities we serve. GHS commitment to medical education has also advanced over the years, most notably with the recent opening of the University of South Carolina School of Medicine Greenville on GHS Greenville Memorial Medical Campus. This new medical school is focused on transforming healthcare delivery by training physicians to connect with communities, patients, colleagues and technology in a new, more progressive way.

15 Market Profile Recreation/Leisure: Greenville, SC The Parks & Recreation Department offers a comprehensive system of parks, greenways, public facilities and recreational choices that help enhance the quality of life of its residents and visitors. Whether it s enjoying a leisurely bike ride on the city s expansive trail system, taking a picnic lunch to one of the City s popular parks or spending the day with the family at the Greenville Zoo, the Parks & Recreation Department provides a wide variety of year-round recreational choices to help you enjoy the beauty of Greenville s outdoors. One of the city s greatest attractions is its system of parks. The Parks & Recreation Department maintains 39 parks occupying more than 500 acres of land within the city. Falls Park, one of the city s most popular parks, serves as a centerpiece attraction for Greenville. With its impressive Liberty Bridge, a suspension bridge spanning the Reedy River, visitors can enjoy spectacular views of the Reedy River Falls and the magnificent public gardens below. The largest parks in the system is Cleveland Park, a 122-acre site located along the Reedy River that features tennis courts, softball fields, playground areas, a fitness trail and picnic shelters. A main attraction at Cleveland Park is the Greenville Zoo, an exotic animal kingdom rated one of the best tourist attractions in South Carolina. This 14-acre facility features wildlife from around the world including giraffes, monkeys, giant tortoises and elephants. Visitors can also enjoy one of the Zoo s most popular exhibits, the Reptile Building, which is home to a variety of lizards, frogs, turtles and snakes.

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19 Investment Contacts: J. Tyson Glasser, CCIM Investment Sales Director o c 550 S. Main Street, Suite 300 Greenville, SC p f RealtyLink, LLC, We have obtained the contained information from sources we believe are reliable. We have not however verified that all information is accurate and make no guarantee, warranty or representation of it. The information is subject to the possibility of errors, ommissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice, and it is not a substitute for a thorough due diligence investigation. We include opinions, projections, estimations and assumptions for example purposes only. This information may not represent current or future performance of the property. Seek legal advise and conduct due diligence if exact numbers are desired. RealtyLink, LLC and the RealtyLink logo are trademarks of RealtyLink, LLC and/or its affiliates. All other logos or company materials displayed in these contents are the property of their respective owners.