1401 Reisterstown Road, Pikesville, MD Offering Memorandum R E T A I L A D V I S O R S

Transcription

1 Advanced Auto Parts Strip Center 1401 Reisterstown Road, Pikesville, MD Offering Memorandum R E T A I L A D V I S O R S

2 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Advanced Auto Parts Strip Center located at 1401 Reisterstown Road, Pikesville, MD ( Property ). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. Matthews Retail Advisors

3 Table of Contents Pricing & Financial Analysis Investment Highlights... 2 Executive Summary... 3 Company Overview... 4 Property Description Physical Description... 7 Birds Eye... 8 Regional Map... 9 Local Map... 9 Tenant Map Demographics City Overview Pikesville, MD Demographics Report EXCLUSIVELY LISTED BY: Braden Crockett Associate direct MOBILE braden.crockett@matthews.com License No John P. Lim CapStar Commercial Realty Broker of Record License No

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5 Pricing & Financial Analysis

6 Investment Highlights Offered at an attractive 7% return on current NOI. Leveraged cash on cash return of 9.15% with a total return of 12.91% when considering principle reduction. Average of 1.25% annual increases in rent. Long term lease with Investment Grade Credit Tenant (Advance Auto Parts has +/- 9 Years remaining.) Long term established operator of Karate Studio (40+ Years in Business) recently relocated to upper level due to attractive space and cheap rent. Attractive price per square foot of $173.78/SF. Remodeled building in 2014 with over $800,000 in recent capital improvements. NNN lease with tenants reimbursing for CAM, Taxes, and Insurance. Average Daily Traffic of approximately 34,000 Cars per Day on Reisterstown Rd. Strong Demographics of 111,933 in the 3 mile radius and over 250,000 in the 5 mile radius. Affluent trade area with average incomes of over $75,000 in the one-mile radius and $82,044 in the 3-mile radius. Strong Retail Trade Area with national tenants such as Walgreens, Rite Aid, Giant Grocers, Dunkin Donuts, UPS, Staples, Boston Market, Wells Fargo, Ruth s Chris steak house, Chipotle, Trader Joes, Corner Bakery, PNC Bank, Panera Bread, Home Depot, CVS, Applebee s and more. P. 2 Matthews Retail Advisors OFFERING MEMORANDUM Advanced Auto Parts Strip Center

7 Executive Summary Advanced Auto Parts Strip Center 1401 Reisterstown Road Pikesville, MD List Price... $3,184,114 CAP Rate - Current % Gross Leasable Area... 18,672 SF Lot Size... ±0.51 Acres (22,128 SF) Year Built Annualized Operating Data Income Current Base Rent Gross Rent $225,719 Expense Reimbursements $52,973 Administration Reimbursements $3,879 Gross Income $282,561 Total Expenses $59,673 Net Operating Income $222,888 Capital Reserves $2, Expenses Current Real Estate Taxes $14,952 Insurance $6,000 CAM $33,126 Administration $3,879 TOTAL EXPENSES $59,673 EXPENSES/SF $3.80 Advanced Auto Parts Strip Center OFFERING MEMORANDUM Matthews Retail Advisors P. 3

8 Proposed Financing First Trust Deed Loan Amount $2,228,880 Down Payment $955,234 Loan Type CMBS Origination Fee 1% Recourse/Non-Recourse Non-Recourse Interest Rate 4.50% Amortization 30 Years Monthly Payment $11,293 Loan to Value 70% Due Date Jan Debt Coverage Ratio 1.64 Income Net Operating Income - Year 1 $222,888 Debt Service $135,484 Net Cash Flow After Debt Service - Year % $87,367 Principal Reduction Year 1 $35,956 Total Return 12.91% $123,324 Please Contact Barrington Capital Corporation for a personalized debt quote: Brian Krebs Direct Fax DRE # P. 4 Matthews Retail Advisors OFFERING MEMORANDUM Advanced Auto Parts Strip Center

9 Rent Roll Tenant GLA Pro-Rata Lease Type Lease Commencement Lease Expiration Annual Rent Rent/SF Increases Options Advance Auto 7, % NNN 12/1/ /30/2024 $123,998 $ % In Option (4) - (5) Year Martial Arts Stuido 8, % NNN 1/1/ /31/2025 $61,761 $8.46 3% Annually (1) - (10) Year Liberty Tax % NNN 12/1/2014 4/30/2016 $14,300 $ % In Option (1) - (2) Year State Farm % NNN 8/1/2015 7/31/2022 $25,600. $ % Annually (1) - (10) Year Totals 18,672 $225,719 Advanced Auto Parts Strip Center OFFERING MEMORANDUM Matthews Retail Advisors P. 5

10 Company Overview - Advance Auto Parts Property Name Advanced Auto Parts Strip Center Gross Leasable Area 7,774 SF Property Type Net Leased Auto Parts Parent Company Trade Name Advanced Auto Parts Strip Center Ownership Public Credit Rating BBB- Rating Agency Standard & Poor s Revenue 9.84 Billion Net Income 493 Million Stock Symbol AAP Board NYSE No. of Locations 5,200 No. of Employees 74,000 Headquartered Roanoke, VA Web Site Year Founded 1932 Headquartered in Roanoke, Va., Advance Auto Parts, Inc., the largest automotive aftermarket parts provider in North America, serves both the professional installer and do-it-yourself customers. Advance operates over 5,200 stores, over 100 Worldpac branches and serves approximately 1,300 independently owned Carquest branded stores in the United States, Puerto Rico, the U.S. Virgin Islands and Canada. Advance employs approximately 74,000 Team Members. Advance Auto Parts works hard to create an environment of honesty, integrity, mutual trust and dedication. Since our founding by Arthur Taubman in 1932, these values haven t changed. Inspire and build the self-confidence and success of every Team Member. Serve our customers better than anyone else help them succeed. Grow the business and profitability with integrity. P. 6 Matthews Retail Advisors OFFERING MEMORANDUM Advanced Auto Parts Strip Center

11 Lease Abstract - Advance Auto Parts Tenant: Advance Stores Company, Incorporated, a Virginia corporation Guarantor: Advance Stores Company, Incorporated, a Virginia corporation Date Of Lease: June 4, 2014 Commencement Date: December 1, 2014 Lease Expiration: November 30, 2024 Initial Lease Term: Ten (10) Years Renewal Options: Four (4) Five (5) Year Years 1-10: $124,000 Option1: $131,292 Rent: Option2: $138,585 Option3: $145,880 Real Estate Taxes: Common Area Expenses: Insurance: Management/Admin Expense: Repairs and Maintenance: Non-Competition: Option4: $153,174 Tenant reimburses Landlord up to $4,741 for the first year of taxes. Tenant reimburses Landlord up to $14,515 for CAM with annual increase of 103.5% of the previous calendar year. Same limitation is not applicable to utilities, trash removal, snow and ice removal. Tenant reimburses Landlord up to $3,647 for the first year of insurance. Tenant to pay up to 7% of total CAM for administration expenses. Tenant shall at its cost, during the term maintain and repair in good condition (ordinary wear and tear expected): (1) all electrical and lighting systems and equiptment wihin the Leased Premises that exclusively serve the Leased Premises; (2) the interior, non-structureal portions of the Leased Premises; (3) windows, doors and plate glass of the Leased Premises; (4) Tenant s Personal Property and other alterations installed in the Leased Premises by Tenant; and (5) all HVAC. Landlord responsible for exterior repairs. During the Term, Landlord shall ensure that no person or entity uses any portion of the Building for the purpose of the sale, display or rental of automotive parts, accessories, supplies, and/or maintenance items (collectively, Tenant s Exclusive Rights ). Advanced Auto Parts Strip Center OFFERING MEMORANDUM Matthews Retail Advisors P. 7

12 Company Overview - Palanzo Martial Arts Property Name Palanzo s Martial Arts Property Type Net Leased Martial Arts School Parent Company Trade Name Palanzo s Martial Arts Ownership Private No. of Locations 1 Headquartered Pikesville, MD Web Site Year Founded 1969 Palanzo s Martial Arts was founded by Joe Palanzo in Grand Master Palanzo has dedicated his life to teaching Martial Arts, and has helped thousands of families reach their goals in and outside of the school. Palanzo Martial Arts teaches the most practical self-defense program available today. With a unique blend of Kenpo techniques, Tae Kwon Do kicks, Ju-Jitsu, Shootfighting, locks and take-downs, along with modern philosophies, Palanzo Martial Arts is the best choice for self-defense, fitness, and a healthy lifestyle. Palanzo s Martial Arts invites you to visit our school to see for yourself. After watching one of our classes, or speaking to one of our members you will see and feel what all the talk is about. Advanced Auto Parts Strip Center OFFERING MEMORANDUM Matthews Retail Advisors P. 8

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14 Property Description

15 P. 11 Matthews Retail Advisors OFFERING MEMORANDUM Advanced Auto Parts Strip Center

16 Physical Description THE OFFERING Property Name...Advanced Auto Parts Strip Center Property Address Reisterstown Road Pikesville, MD Assessor s Parcel Number Zoning... BL SITE DESCRIPTION Number of Stories...One Year Built Gross Leasable Area (GLA)...18,672 SF Lot Size... ±0.51 Acres (22,128 SF) Type of Ownership... Fee Simple Parking...40 Surface Spaces Parking Ratio : 1,000 SF Landscaping...Professional Topography... Generally Level CONSTRUCTION Foundation... Concrete Slab Framing... Wood Exterior...Brick/Facade Parking Surface...Asphalt Roof...Flat Advanced Auto Parts Strip Center OFFERING MEMORANDUM Matthews Retail Advisors P. 12

17 Birds Eye Reisterstown Road CPD: 33,000 P. 13 Matthews Retail Advisors OFFERING MEMORANDUM Advanced Auto Parts Strip Center

18 Regional Map Local Map Advanced Auto Parts Strip Center OFFERING MEMORANDUM Matthews Retail Advisors P. 14

19 Tenant Map P. 15 Matthews Retail Advisors OFFERING MEMORANDUM Advanced Auto Parts Strip Center

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21 P. 17 Matthews Retail Advisors OFFERING MEMORANDUM Advanced Auto Parts Strip Center

22 Demographics

23 City Overview Pikesville, MD Pikesville, a prosperous Baltimore County suburb dates back 200 years to 1695 when Fort Garrison was built as one of the three forts to protect frontier settler s in the colony of Maryland. This stone fort still stands at its originally site. As one of 13 commercial revitalization districts in Baltimore County, Pikesville s business community is growing steadily. Pikesville businesses have reaped the benefits of a multi-million dollar streetscape project, which included specially designed sidewalks and streetlamps, attractive landscaping and pedestrian furniture. One of those improvements is the Quarry Lake which is one of the most popular deepest lakes in the state. The lake is surrounded by mixed residential development and commercial development. As a result of the community s vitality and progress, more and more merchants are relocating and expanding in Pikesville. Today, Pikesville is the proud home of a fine mix of families, young professionals and corporate executives not to mention a diversified base of businesses. Its centralized location, plus its highly acclaimed schools have contributed greatly to the unmatched quality of life enjoyed here. There is no doubt that Pikesville has grown in the 21st century far beyond the bounds of what was once a very small town. The Pikesville of today runs miles rather than a few short blocks. P. 19 Matthews Retail Advisors OFFERING MEMORANDUM Advanced Auto Parts Strip Center

24 Demographics Report Population 1-Mile 3-Mile 5-Mile 2020 Projection 10, , , Estimate 10, , , Census 9, , , Census 9, , ,609 Growth % 2.97% 2.67% Growth % 2.27% 1.96% Growth % 4.69% 3.56% Households 2020 Projection 5,408 48, , Estimate 5,117 47, , Census 4,820 46, , Census 4,406 44, ,202 Growth % 2.89% 2.53% Growth % 2.09% 1.62% Growth % 4.25% 4.17% Income $0 - $15, $15,000 - $24, $25,000 - $34, $35,000 - $49, $50,000 - $74, $75,000 - $99, $100,000 - $124, $125,000 - $149, $150,000 - $199, $200,000 - $249, $250,000 - $499, $500, Est. Average Household Income $77,960 $82,044 $79, Est. Median Household Income $60,129 $60,901 $59,337 Advanced Auto Parts Strip Center OFFERING MEMORANDUM Matthews Retail Advisors P. 20

25 Advanced Auto Parts Strip Center 1401 Reisterstown Road Pikesville, MD OFFERING MEMORANDUM Braden Crockett Associate direct MOBILE License No John P. Lim CapStar Commercial Realty Broker of Record License No Matthews Retail Advisors 841 Apollo Street, Suite 150 El Segundo, CA