EXCLUSIVE OFFERING 1,685, % CAP Aspen Dental

Transcription

1 SUBJECT PROPERTY EXCLUSIVE OFFERING 1,685, % CAP 3700 East Race AVE, Searcy, AR BOB MOORHEAD JOE CAPUTO RUSSELL SMITH Property: 3,500+ SF building on acre site. Tenant: : approximately 3.4 million dental patients at more than 500 office locations in 30 states. Lease structure: 10-year, corporate, net lease, with 3, 5-year options to renew. 10% rent increase during primary term and options. Location: Aspen dental is located off of East Race Street (11,000 Cars / Day) just east of U.S. Highway 67 (24,000 Cars / Day). U.S. Highway 67 is a 279-mile portion of U.S. Route 67. The route passes through several cities and towns, including Hope, Benton, Little Rock, Beebe, Walnut Ridge, and Pocahontas; serving as a primary commercial corridor for the region. East Race Street is the main east-west thoroughfare in Searcy, providing easy access to all major commercial and residential areas. This accessibility has brought extensive retail and business development to the immediate trade area. Notable national credit tenants surrounding the subject property include Walmart Supercenter, Lowes, Tractor Supply Co., Big Lots!, Hastings, Payless, CATO, JCP, Staples, GameStop, Chili s, McAlister s, Chick-fil-a, and countless others. Searcy is 50-miles northeast of Little Rock, AR.

2 Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4: PAGE 5: PAGE 6: PAGE 7: PAGE 8-9: PAGE 10: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT LEASE OVERVIEW TENANT OVERVIEW CONT. SITE PLAN AERIAL PHOTO LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS SUBJECT PROPERTY Disclaimer Trivanta ( Agent ) has been engaged as an agent for the sale of the property located at the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent. Listed in association with ARKANSAS broker of record: Flake & kelley commercial 2

3 Investment overview ASPEN DENTAL PRICE: $1,685,000 CAP RATE: 6.75% NET OPERATING INCOME: $113,750 BUILDING AREA: 3,500+ Square Feet LAND AREA: Acres YEAR BUILT: 2015 LANDLORD RESPONSIBILITY: Roof & Structure Lease overview Initial Lease Term: 10-year term with 3, 5-year options to extend Projected Rent Commencement: April 2015 Projected Lease Expiration: April 2025 Lease Type: Net Lease Rent Increases: 10% every 5-years through term and options Year 1-5 Annual Rent (Current): $113,750 Year 6-10 Annual Rent: $125,124 OWNERSHIP: Fee Simple Interest Year Annual Rent (Option 1): $137,655 OCCUPANCY: 100% Year Annual Rent (Option 2): $151,410 Year Annual Rent (Option 3): $166,565 is one of the largest and fastest-growing providers of denture and dental care services in the U.S., and is committed to providing patients with affordable, high quality care. s history started in Syracuse, New York, at a dental lab called Upstate Dental, which began operations in As of 2015, serves approximately 3.4 million dental patients at more than 500 office locations in 30 states. Through 2015, is scheduled to open 55 new offices each year throughout various locations in the United States. practices follow a patient-driven retail model that feature visible locations in highly trafficked retail centers, affordable and comprehensive dental care, and convenient payment options. Management Inc., s integrated business support service, provides a broad range of nonclinical services, including human resources, and accounting. This allows dentists to spend more time caring for their patients and less time on the administrative and financial aspects of running a successful dental practice. Each office has certified oral hygienists, dentists and oral surgeons for general dental care. will provide patients with a full range of denture and dental services, including hygiene, oral surgery, fillings, whitening and crown and bridge work. is the only authorized provider of 8 styles of full and partial hand-crafted ComfiDents brand dentures. With more than 500 locations in 30 states, practices are nationally accredited by the Better Business Bureau (BBB). In 2014, -branded practices recorded nearly 3.4 million patient visits and welcomed more than 750,000 new patients. seeks A+ locations in major retail areas and looks for prime retail visibility, including maximum storefront and pylon signage opportunities, strong traffic counts, great access, and ample, convenient parking. The dental profession is not affected by the same economic challenges many other retailers face. More than 10 years experience building successful dental practices with 100% success rate. They have never closed a location. (Source: 3

4 TENANT OVERVIEW CONTINUED ASPEN DENTAL 4

5 SITE PLAN ASPEN DENTAL 5

6 Aerial photo 6

7 Location overview IMMEDIATE TRADE AREA Aspen dental is located off of East Race Street (11,000 Cars / Day) just east of U.S. Highway 67 (24,000 Cars / Day). U.S. Highway 67 is a 279-mile portion of U.S. Route 67. The route passes through several cities and towns, including Hope, Benton, Little Rock, Beebe, Walnut Ridge, and Pocahontas; serving as a primary commercial corridor for the region. East Race Street is the main eastwest thoroughfare in Searcy, providing easy access to all major commercial and residential areas. This accessibility has brought extensive retail and business development to the immediate trade area. Notable national credit tenants surrounding the subject property include Walmart Supercenter, Lowes, Tractor Supply Co., Big Lots!, Hastings, Payless, CATO, JCP, Staples, GameStop, Chili s, McAlister s, Chickfil-a, and countless others. SEARCY, AR Searcy is the largest city and county seat of White County, Arkansas. According to 2010 Census Bureau estimates, the city has a population of 22,858. It is the principal city of the Searcy, AR Metropolitan Statistical Area which encompasses all of White County. Searcy is the home of Harding University, a private, residential Christian university with more than 6,900 students, making it the largest private university in Arkansas. Located in the Ozarks, Searcy is surrounded by rivers, lakes, mountains and forests, which allows for a host of recreational and outdoor activities. In town, Searcy has state of the art healthcare facilities and a diverse industrial and commercial sector. One of the state's largest banks, First Security Bank, was established in Searcy in 1932 as Security Bank. First Security now has over $3.2 billion in assets and 70 locations in Arkansas. The city s top employers are White County Medical Center (1,465 people), Wal-Mart Distribution Center (1,050), Harding University (795), and Wal-Mart Super-Center (550). Manufacturing and distribution comprise approximately 10% of the employment in the area. National chains located in Searcy include Chili s, McAlister s, JCPenney s, Lowes and Staples. The Searcy area also boasts boutiques, local restaurants, and specialty stores. Due to a stable economic base and healthy population growth, commercial businesses in Searcy continue to flourish. CENTRAL ARKANSAS Other significant central Arkansas cities that have close economic ties to Searcy include Little Rock, Conway, and Pine Bluff. Little Rock is the capital and the largest city in Arkansas. The city has a population of 193,524 people, while the Metropolitan Statistical Area (MSA) has a population of 709,901. The MSA is in turn included in the Little Rock North Little Rock Pine Bluff, Arkansas Combined Statistical Area, which has a population of 886,992. Little Rock is the county seat of Pulaski County. Major corporations headquartered in Little Rock include Dillard's Department Stores, Windstream Communications and Acxiom. Additional large companies headquartered in Little Rock include Metropolitan National Bank, Bank of the Ozarks, Rose Law Firm, Nuvell Financial Services, Central Flying Service and nationally-recognized brokerage Stephens Inc., notable as the lead investment banker on the Walmart IPO. Large companies headquartered in other cities but with a large presence in Little Rock include Raytheon Aircraft Company, and Fidelity National Information Services. Little Rock was named 22nd out of 361 metropolitan areas as best places for business in 2005 by Forbes magazine. Moody's Investor Services ranks Little Rock as the 2 nd most diverse economy in the nation. Conway is located north of Little Rock and currently has a population of 60,470 making it the 7th most populous city in Arkansas. It is a principal city of the Little Rock North Little Rock Conway MSA. Acxiom Corporation, a global interactive marketing services company that uses consumer data, analytics, information technology, data integration, and consulting was founded in 1969 in Conway and still maintains a large presence there with its headquarters in Little Rock. On June 19, 2008, Hewlett-Packard announced it would be opening a 150,000 SF facility with 1,200 employees in Pine Bluff is located south of Little Rock and has a population of 49,339. Agriculture is an economic mainstay in Pine Bluff due to its location in the heart of a rich agricultural area in the Arkansas River Basin. The leading products include cotton, soybeans, cattle, rice, poultry, timber and catfish. Principal industries in the area are engaged in processing cotton; production of cottonseed oil, paper and wood products; the manufacture of wire products; poultry processing; the manufacture of electric transformers; and metal fabrication. Major area employers include Jefferson Regional Medical Center, Simmons First National Corp., Tyson Foods, Evergreen Packaging, the Pine Bluff Arsenal and the Union Pacific Railroad. 7

8 Location map 8

9 Location map 9

10 INCOME CONSUMER EXPENDITURE TRAVEL TIME MARITAL STATUS & GENDER TRANSPORTATION TO WORK AGE OCCUPATION HOUSEHOLDS POPULATION LABOR FORCE Demographics 3700 East Race Street Searcy, AR mi radius 3 mi radius 5 mi radius 3700 East Race Street Searcy, AR mi radius 3 mi radius 5 mi radius 2014 Estimated Population 1,500 12,386 25, Projected Population 1,545 12,704 26, Census Population 1,479 12,185 24, Census Population 1,293 10,824 22,520 Projected Annual Growth 2014 to % 0.5% 0.5% Historical Annual Growth 2000 to % 1.0% 0.9% 2014 Estimated Households 661 4,602 9, Projected Households 696 4,847 10, Census Households 637 4,432 9, Census Households 531 3,841 8,083 Projected Annual Growth 2014 to % 1.1% 1.1% Historical Annual Growth 2000 to % 1.4% 1.3% 2014 Est. Population Under 10 Years 9.8% 10.1% 11.9% 2014 Est. Population 10 to 19 Years 11.6% 15.6% 14.8% 2014 Est. Population 20 to 29 Years 11.9% 25.8% 22.6% 2014 Est. Population 30 to 44 Years 15.2% 13.8% 15.4% 2014 Est. Population 45 to 59 Years 18.2% 13.9% 15.5% 2014 Est. Population 60 to 74 Years 17.8% 11.6% 11.9% 2014 Est. Population 75 Years or Over 15.4% 9.3% 7.8% 2014 Est. Median Age Est. Male Population 46.1% 47.6% 48.2% 2014 Est. Female Population 53.9% 52.4% 51.8% 2014 Est. Never Married 24.4% 35.5% 33.6% 2014 Est. Now Married 46.9% 39.8% 42.1% 2014 Est. Separated or Divorced 19.0% 17.6% 17.2% 2014 Est. Widowed 9.6% 7.1% 7.2% 2014 Est. HH Income $200,000 or More 2.3% 1.5% 1.4% 2014 Est. HH Income $150,000 to $199, % 1.3% 1.2% 2014 Est. HH Income $100,000 to $149, % 5.3% 6.4% 2014 Est. HH Income $75,000 to $99, % 9.0% 10.4% 2014 Est. HH Income $50,000 to $74, % 15.1% 16.6% 2014 Est. HH Income $35,000 to $49, % 18.0% 16.4% 2014 Est. HH Income $25,000 to $34, % 15.1% 14.5% 2014 Est. HH Income $15,000 to $24, % 15.3% 15.2% 2014 Est. HH Income Under $15, % 19.2% 17.9% 2014 Est. Average Household Income $51,714 $45,281 $47, Est. Median Household Income $38,922 $36,097 $38, Est. Per Capita Income $23,079 $17,446 $18, Est. Total Businesses 166 1,019 1, Est. Total Employees 2,852 15,067 20, Est. Labor Population Age 16 Years or Over 1,179 8,253 17, Est. Civilian Employed 48.9% 48.5% 51.3% 2014 Est. Civilian Unemployed 4.8% 4.8% 4.5% 2014 Est. in Armed Forces 0.4% 0.4% 0.3% 2014 Est. not in Labor Force 45.9% 46.2% 43.9% 2014 Labor Force Males 46.4% 47.7% 48.3% 2014 Labor Force Females 53.6% 52.3% 51.7% 2010 Occupation: Population Age 16 Years or Over 587 4,958 10, Mgmt, Business, & Financial Operations 12.9% 11.0% 10.0% 2010 Professional, Related 23.8% 18.1% 19.1% 2010 Service 14.9% 21.8% 22.2% 2010 Sales, Office 20.2% 25.3% 24.8% 2010 Farming, Fishing, Forestry 1.2% 0.8% 0.7% 2010 Construction, Extraction, Maintenance 7.0% 7.7% 7.9% 2010 Production, Transport, Material Moving 20.0% 15.2% 15.3% 2010 White Collar Workers 56.9% 54.4% 53.8% 2010 Blue Collar Workers 43.1% 45.6% 46.2% 2010 Drive to Work Alone 80.9% 77.6% 77.3% 2010 Drive to Work in Carpool 10.0% 10.7% 11.6% 2010 Travel to Work by Public Transportation 0.4% 0.2% 1.0% 2010 Drive to Work on Motorcycle % 2010 Walk or Bicycle to Work 5.4% 7.1% 5.7% 2010 Other Means 0.4% 0.3% 0.4% 2010 Work at Home 3.0% 4.0% 4.0% 2010 Travel to Work in 14 Minutes or Less 70.5% 67.4% 63.0% 2010 Travel to Work in 15 to 29 Minutes 15.2% 17.3% 22.4% 2010 Travel to Work in 30 to 59 Minutes 10.6% 10.9% 9.4% 2010 Travel to Work in 60 Minutes or More 3.8% 4.4% 5.2% 2010 Average Travel Time to Work Est. Total Household Expenditure $29.5 M $188 M $407 M 2014 Est. Apparel $1.41 M $8.99 M $19.4 M 2014 Est. Contributions, Gifts $1.82 M $11.2 M $24.1 M 2014 Est. Education, Reading $771 K $4.79 M $10.3 M 2014 Est. Entertainment $1.62 M $10.3 M $22.4 M 2014 Est. Food, Beverages, Tobacco $4.82 M $31.1 M $66.9 M 2014 Est. Furnishings, Equipment $1.25 M $7.85 M $17.1 M 2014 Est. Health Care, Insurance $2.19 M $14.1 M $30.2 M 2014 Est. Household Operations, Shelter, Utilities $8.85 M $56.3 M $121 M 2014 Est. Miscellaneous Expenses $505 K $3.25 M $6.98 M 2014 Est. Personal Care $431 K $2.76 M $5.95 M 2014 Est. Transportation $5.88 M $37.8 M $82.0 M 10