Net-Leased Dental Office

Transcription

1 OFFERING MEMORANDUM Net-Leased Dental Office 102 E Victory Drive (Near Historic Downtown Savannah) Savannah, GA

2 Table of Contents 01 EXECUTIVE SUMMARY Investment Summary Location and Demographics Property Aerials Property Overview 03 MARKET OVERVIEW Savannah, Georgia Detailed Demographics Sold Comparables 02 TENANT OVERVIEW Tenant Summary Rent Roll 04 FINANCIAL OVERVIEW CONTACT SEAN W. PATRICK, CCIM Vice President, Investment Sales ACKERMAN & CO. 10 Glenlake Parkway South Tower, Suite ackermanco.com

3 INFORMATION NOT WARRANTED This Offering Memorandum and any subsequent evaluation material you may be provided (collectively known as the Offering Memorandum ) is intended solely for your limited use in considering whether to pursue negotiations to acquire 102 E Victory Drive (the Property ) located in Savannah, Georgia. The Property is being marketed for sale by Ackerman & Co. ( Broker ). The Offering Memorandum contains brief, selected information pertaining to the business and affairs of the Property and has been prepared by Broker. It does not, however, purport to be all-inclusive or to contain all of the information that a prospective purchaser may desire. Broker makes no representation or warranty, express or implied, as to the accuracy or completeness of the Offering Memorandum or any of its contents, and no legal liability is assumed to be implied with respect thereto. By acknowledgment of your receipt of the Offering Memorandum you agree that the Offering Memorandum and its contents are confidential, that you will hold and treat it in the strictest of confidence, that you will not directly or indirectly disclose, or permit anyone else to disclose, the Offering Memorandum or its contents to any other person, firm, or entity (including, without limitation, any principal for whom you have been engaged), without prior written authorization of Owner or Broker and that you will not use or permit to be used the Offering Memorandum or its contents to be copied or used in any fashion or manner detrimental to the interest of Owner. Photocopy or other duplication is strictly prohibited. THE OFFERING MEMORANDUM SHALL NOT BE DEEMED TO REPRESENT THAT STATE OF AFFAIRS OF THE PROPERTY OR CONSTITUTE AN INDICATION THAT THERE HAS BEEN NO CHANGE IN THE BUSINESS OR AFFAIRS OF THE PROPERTY SINCE THE DATE OF PREPARATION OF THE OFFERING MEMORANDUM. The information provided in the Offering Memorandum has been gathered from sources that are deemed reliable, but the Broker does not warrant or represent that the information is true or correct. Prospective offerors are advised to verify information independently. The Offering Memorandum is not to be construed as an offer or as any part of a contract to sell the property. Furthermore, the inclusion or exclusion in the Offering Memorandum of information relating to asbestos or any other hazardous, toxic or dangerous chemical item, waste or substance (hereinafter collectively referred to as Waste ) relating to the Property shall in no way be construed as creating any warranties or representations, expressed or implied by the Broker as to the existence or nonexistence or nature of Waste in, under or on the Property, it may create significant legal and/or economic obligations upon the Owner, lessee and/or other holders of interest in the Property or a part thereof and you are hereby advised to obtain professional assistance such as from a consultant, engineer and/or attorney prior to taking an interest in the Property or a part thereof.

4 01 EXECUTIVE SUMMARY Investment Summary Location and Demographics Property Aerials Property Overview Net-Leased Dental Office

5 01 Executive Summary Net-Leased Dental Office 5 INVESTMENT PROFILE 102 E. Victory Drive Savannah, GA Ackerman & Co s Investment Sales team is pleased to exclusively present for sale a unique dental practice net-leased investment opportunity in historic downtown Savannah, Georgia. The property, 102 E. Victory Drive includes a 1,838- square-foot building currently leased to Victory Family Dentistry for seven years. Victory Family Dentistry has been practicing at this location since The offering provides stable cash from an established dental practice with upside in rental appreciation in year four. This asset is fee simple and is being offered free and clear debt. Square Footage: 1,838 SF Acreage: acres Offering Price: $325,000 Price Per Square Foot: $ Debt Structure: Market (offered free & clear) Lease Structure: Absolute NNN Blended Cap Rate: 8.76% Lease Expiration: Rental Rate: $14.36 PSF The property is located in the Midtown area of Savannah, Georgia. The dental practice is in a neighborhood that includes Memorial University Medical Center, St. Joseph Candler Hospital, high concentration of medical offices, and commercial and residential properties. Savannah has one of the nations lowest overall medical office vacancy rates at 3.8%.

6 01 Executive Summary Net-Leased Dental Office 6 INVESTMENT HIGHLIGHTS Located Near Historic Downtown Savannah: The subject property is located in the Midtown neighborhood of Savannah with a high concentration of medical offices, commercial and residential developments. Absolute Net-leased (NNN) Structure: Due to the absolute net-leased structure, this property serves well as a passive investment. Under the terms of the lease, the tenant is responsible for all expenses on the leased premises. These responsibilities include, but are not limited to, interior, exterior, roof and structure. The low rental rate allows for appreciation and upside in the investment. Long Term Stable Cash Flow with Appreciation: This asset should provide steady cash flow to ownership over the lease term plus a 13.5% rental increase in year four. Offered Free and Clear of Debt: With limited single tenant product in the market, this is a benefit for an investor looking for an all-cash deal or market debt with current low interest rates. Unique Small Net-Leased Investment: With limited single tenant product in the market, this is a benefit for a smaller investment exchange or equity requirement.

7 01 Executive Summary Net-Leased Dental Office 7 LOCATION AND DEMOGRAPHICS The subject property, a net-leased dental office, located on 102 E Victory Drive in Savannah, GA was originally built in It was renovated in 1994 for a dental office and is in great physical condition. In 2013, total population within 5 miles was 134,157 and average household income within 5 miles was $44, ATLANTA MACON 16 DEMOGRAPHIC SUMMARY 1 MILE 3 MILES 5 MILES 75 DENTAL OFFICE 102 E VICTORY DR SAVANNAH, GA SAVANNAH Population ,832 88, ,157 Total Households 9,265 34,876 51,956 Pooler Average Household Income $42,566 $40,778 $44, TRAFFIC COUNTS 45,510 VEHICLES PER DAY (INTERSECTION OF BULL ST AND E VICTORY DR) Little Neck Rd 404 Pooler Pkwy Pine Barren Rd Garden City Hutchinson Island E Bay St 17 Savannah River Savannah 95 E President St Source: 2012 MPSI Systems Inc. d.b.a. DataMetrix Little Neck Rd 95 Quacco Rd Abercorn St Hunter Army Airfield 102 E Victory Drive Savannah, GA Skidaway Rd

8 01 Executive Summary Net-Leased Dental Office 8 PROPERTY AERIAL - CLOSE UP E 41ST ST ABERCORN ST E 42ND ST 102 E Victory Drive Savannah, GA E VICTORY DR DRAYTON ST

9 01 Executive Summary Net-Leased Dental Office 9 PROPERTY AERIAL BARNARD ST W VICTORY DR WHITAKER ST BULL ST DRAYTON ST 102 E Victory Drive Savannah, GA E 42ND ST E 41ST ST ABERCORN ST SCAD Development E VICTORY DR

10 01 Executive Summary Net-Leased Dental Office 10 PROPERTY OVERVIEW 102 E Victory Drive Savannah, GA Address: Parcel ID: County: Metro Market: Zoning: Building Size: Land Area: Year Built: Construction: Parking: Signage: Office Hours : 102 E Victory Drive, Savannah, GA Chatham County - City of Savannah, GA Savannah, GA TC-2 (Traditional Commercial Corridor) 1,838 SF acres 1918, renovated in 1994 for dental office Concrete block with stucco veneer 10 parking spaces with 1 handicapped space Monument sign located at the corner of E Victory Dr and Drayton St 8:30 AM to 4:30 PM Monday - Thursday

11 02 TENANT OVERVIEW Tenant Summary Rent Roll Net-Leased Dental Office

12 02 Tenant Overview Net-Leased Dental Office 12 TENANT SUMMARY VICTORY FAMILY DENTISTRY SIZE One-Story Building SQUARE FOOTAGE 1,838 LEASE EXPIRATION 2021 Victory Family Dentistry has been in midtown Savannah for over 20 years. The practice was started by Dr. Randall Little until his retirement then it was purchased by Dr. Chana Elzie, DDS. Dr. Chana Elzie, DDS has been practicing dentistry for over 15 years and is passionate about her work. It is in her blood as her father was also a practicing Dentist. She is an active member of The Academy of General Dentistry and Georgia Dental Society. Dental services include the most advanced dental technology available. The services are not limited to Preventive Care but also include: Cosmetic Dentistry, Periodontal Treatments, Pediatric Dentistry, Digital X-rays, Oral Cancer Screening, Teeth Whitening, Zoom! Whitening, Dental Implants, Sleep Apnea, and Snoring prevention. Victory Family Dentistry, DDS Phone: Store Hours: Monday - Thursday 8:30 AM to 4:30 PM

13 02 Tenant Overview Net-Leased Dental Office 13 RENT ROLL as of August 2014 SUITE TENANT START DATE EXPIRATION DATE RSF ANNUAL RENT MONTHLY RENT PSF RENT RENEWAL INCREASE NOTES 1 Victory Family Dentistry 7/15/2014 7/14/2021 1,838 $26,400 $2,200 $14.36 $30,000 a year in year four No options, security deposit of $4,700

14 03 MARKET OVERVIEW Savannah, Georgia Demographics Sold Comparables Net-Leased Dental Office

15 03 Market Overview Net-Leased Dental Office 15 SAVANNAH, GEORGIA Established in 1733, Savannah is the county seat of Chatham County and is situated at the mouth of the Savannah River, near the South Carolina Border. Interstate I-95 runs just west of the city while I-16 and I-516 run through the city. A major economic driver is the nation s 4th largest port, the Atlantic seaport, which is currently being dredged to allow for Panamax ships. Savannah is Georgia s fifth largest city and third largest metropolitan area. The Savannah MSA includes an 11-county draw area with over 700,000 residents. Savannah s Historic District, founded in 1966 is one of the largest in the Country. The medical office vacancy is one of the lowest in the country at 3.8% with an average rental rate of $18.42 per square foot. With such low inventory Savannah should realize strong rental growth in the coming years. LOWEST NATIONAL MEDICAL OFFICE VACANCY: AS OF JUNE 30, 2013 Seattle, WA 6.50% Milwaukee, WI 7.22% Manhattan, NY 6.50% Richmond, VA 6.30% MAJOR EMPLOYERS: SAVANNAH Company Gulfstream Aerospace Corporation Memorial Health University Medical Savannah-Chatham County Board of Ft. Stewart/Hunter Army Airfield St. Joseph's/Candler Health System City of Savannah Savannah College of Art & Design (SCAD) Chatham County Georgia Port Authority SouthCoast Medical Group Armstrong Atlantic State University US Army Corp of Engineers Savannah State University International Paper Goodwill Industries of the Coastal Empire JCB Americas, Inc. Georgia Power Company- Coastal Region Imperial Sugar Brasseler USA, Inc. The Landings Club Mitsubishi Power Systems Americas, Inc. CSX Product /Service Jet aircraft, aerospace equipment Hospital Public schools Civilian personnel Hospital Government Education Government Ship terminal operation Medical care Education Civil engineering Education Paper products, chemicals, corrugated containers Adult vocational rehabilitation Construction equipment Electric utility Refined sugar Dental instruments Private club Gas turbines and steam turbines used by power plants Railroad line Memphis, TN 5.20% Nashville, TN 6.50% Savannah, GA 3.80% Greenville- Spartanburg, SC 3.00% Columbia, SC 4.30% Miami, FL 8.37%

16 03 Market Overview Net-Leased Dental Office 16 SAVANNAH, GA DEMOGRAPHICS DETAILED DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2013 Population 21,832 88, , Projected Population 23,002 92, , Census Population 21,205 86, , Census Population 21,372 89, ,869 Growth % 0.95% 1.75% Growth % 4.49% 4.49% 2013 Median Age Households 9,265 34,876 51, Projected Households 9,906 36,932 54, Census Households 8,865 33,634 50, Census Households 8,894 34,850 50,651 Growth % -3.49% -0.90% Growth % 3.69% 3.51% Growth % 5.89% 5.74% 2013 Average Household Size Housing Units 9,265 34,876 51, Owner Occupied Units 39.60% Renter Occupied Units 60.40% Sources: Claritas, Market + Main, Inc., U.S. Census Bureau

17 03 Market Overview Net-Leased Dental Office 17 SOLD COMPARABLES Stephenson Ave Savannah, GA Total SF 1,548 Sales Price $280,000 ($ PSF) Built 2001 Sold Parking 20 Surface Spaces Land 0.04 Acres 7014 Abercorn St Savannah, GA Total SF 2,310 Sales Price $450,000 ($ PSF) Built 1970 Sold Parking 23 Surface Spaces Land 0.38 Acres

18 04 FINANCIAL OVERVIEW Net-Leased Dental Office

19 04 Financial Overview Net-Leased Dental Office 19 FINANCIAL OVERVIEW Sales Price $325,000 Square Feet 1,838 Price Per SF $ Blended Cap Rate 8.76% BUILDING INFORMATION Address Property Type 102 E Victory Dr, Savannah, Georgia Single-Tenant Retail Year Built 1918, Renovated in 1994 Parcel Size Type of Ownership Acres Fee Simple LEASE DETAILS Commencement Date End Date Initial Lease Term 7 Years Annual Rent $26,400 Rent Escalations (Current Term) 13.5% in year 4 Rent Per Month $2,200 Lease Type Absolute NNN Options None Option Rental Increases None Landlord Responsibilities None