Price reduced BB&T BANK GROUND LEASE HIGH FIXED RENT INCREASES PLUS CPI

Transcription

1 Price reduced BB&T BANK GROUND LEASE HIGH FIXED RENT INCREASES PLUS CPI All Photos are of the Actual Location strong inflation protection outparcel to newly expanded walmart affluent area - $100 K incomes 5416 North Croatan Highway, Kitty Hawk, NC Capital Pacific collaborates. Click here to meet the rest of our San Francisco team. For more info on this opportunity please contact: RICK SANNER rsanner@capitalpacific.com (415) CA BRE# JOHN ANDREINI jandreini@capitalpacific.com (415) CA BRE# BOB SANNER bsanner@capitalpacific.com (415) CA BRE# CHRIS KOSTANECKI ck@capitalpacific.com (415) CA BRE# In conjunction with NC Licensed Broker: Stuart Mullen, Commercial Real Estate Carolina, LLC stuart@rangeds.com

2 Price Reduced BB&T Bank located in Kitty Hawk, NC. BB&T Bank is one of the largest and most credit-worthy banks in the U.S. This established location, in a high-income, growth area, is on a front pad of Shoreside Shopping Center, anchored by Walmart. Walmart just expanded in 2013 from 99,000 sf to 127,000 sf; it operates 24 hours, and includes grocery and pharmacy. Also in the center are Home Depot and Harris-Teeter Supermarket. Investment Highlights PRICE: $4,557,000 CAP: 4.75% RENTABLE AREA. 50,000 SF of land LEASE TYPE NNN YEAR BUILT 2005 HIGHLIGHTS OF THIS STRONG LEASE Most importantly, this lease has great inflation protection. If significant inflation returns (for example 5-6%), the rent increases can go to 20% as described in the offering. If tenant assigns, it still remains liable for the entire lease Tenant must give six months notice on options renewals Tenant must rebuild in the event of casualty There are very few use restrictions on the parcel, the only material restriction being that a user there cannot compete against Home Depot (paint, lumber, etc.) All rooftop equipment and dumpsters shall be screened so they are not visible At the end of the lease, tenant surrenders the building so the owner will get, at that time, a free building HIGH BARRIERS TO ENTRY The overall area is a difficult locale to get new, significant, commercial development opportunities, due to sewer restrictions and environmentalist sentiments Permitting is very restrictive. Effectively, there must be a quite significant amount of landscaping (see site plan) BB&T BANK 2

3 Income & Expense PRICE $4,557,000 Capitalization Rate: 4.75% Total Rentable Area (SF of of land): 50,000 STABILIZED INCOME Per Square Foot Scheduled Rent $4.33 $216,450 Effective Gross Income $4.33 $216,450 LESS Per Square Foot Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses $0.00 EQUALS NET OPERATING INCOME $216,450 NOTE: The improvements, owned by the tenant, are 4,150 SF This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. BB&T BANK 3

4 Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. of Land Term Current Rent Monthly Rent Yearly Rent Monthly Rent/FT Yearly Rent/FT BB&T Bank (C) 50,000 (D) Current 10/2020 $216,450 $18,038 $216,450 $0.36 $ / /2025 (A) $20,022 $240,260 $0.40 $4.81 Option 1 10/ /2030 (B) $22,224 $266,689 $0.44 $5.33 Option 2 10/ /2035 (B) $24,669 $296,025 $0.49 $5.92 Option 3 10/ /2040 (B) $27,382 $328,588 $0.55 $6.57 Option 4 10/ /2045 (B) $30,394 $364,733 $0.61 $7.29 Totals: 50,000 $216,450 $18,038 $216,450 $0.36 $4.33 A. The rent increase is 90% of the five-year CPI, minimum 11%, maximum 18%. This rent summary assumes the minimum, 11%. B. The rent increase here is the same as A, except the maximum is 20%. This rent summary assumes the minimum, 11%. C. The official name of the tenant is Branch Banking and Trust Company, but it does business as BB&T Bank. D. Improvements, owned by the tenant, are a 4,150 sf BB&T Bank branch with multiple drive thrus. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. BB&T BANK 4

5 lev ou nb ea Oc ard 12 ay Highw n a t a o Cr ILY 158 N 0 DA 30,00 irgi nia Dar e Tr ail 47,500 DAILY 158 tan ay hw il Tra Hig nee sk oa Cr res N Cyp 158 NV NORFOLK, VA BB&T BANK 5

6 Site Plan 158 N Croatan Highway SEAFOOD RESTAURANT 158 N Croatan Highway

7 Site Plan GATEWAY BANK N Croatan Highway WALMART 158 SEAFOOD RESTAURANT NOTE: There are five drive-thru lanes at the BB&T

8 BB&T Bank BB&T CORPORATION IS ONE OF THE LARGEST FINANCIAL SERVICES HOLDING COMPANIES IN THE COUNTRY ABOUT BB&T BANK The parent company, BB&T Corporation (NYSE: BBT), is among the nation s top financial-holding companies with assets of $187 billion (Sept., 2014), offering commercial and retail services along with other financial services such as insurance, investments, retail brokerage, mortgage, corporate finance, consumer finance, payment services, international banking, leasing, and trust. Based in Winston-Salem, North Carolina, its bank subsidiaries operate more than 1,800 branches in the Carolinas, Virginia, West Virginia, Kentucky, Georgia, Tennessee, Maryland, Florida, Alabama, Indiana, Texas, and Washington D.C., North Carolina is its largest market ranked by deposits and has the second largest number of branches. For the fiscal year ending December 31, 2013, net income was $1.6 billion and net worth was $22.31 billion. BB&T is rated A- by Standard and Poor s. Branch Banking & Trust Company ( BB&T Bank ), the tenant, is100% owned by BB&T Corporation. The assets of the tenant, approximately $183 billion, comprise about 98% of the total assets of the parent BB&T. The tenant is an FDIC-regulated bank; the parent BB&T Corporation is a holding company. NUMBER OF EMPLOYEES 33,000+ NUMBER OF LOCATIONS 1,800+ S&P RATING A BB&T BANK 8

9 Photos SURROUNDING RETAIL AT THE BB&T SHOPPING CENTER BB&T BANK 9

10 Photos THE TOP TWO PHOTOS ARE THE CENTER ACROSS THE HIGHWAY HOME DEPOT IS PART OF THE BB&T CENTER BB&T BANK 10

11 Regional Map Kitty Hawk NC Location TRAFFIC COUNTS IN EXCESS OF 30,000 VPD ON N CROATAN HWY BB&T BANK Kitty hawk BB&T BANK 11

12 Location & Demos KITTY HAWK, NC OVERVIEW Kitty Hawk, in Dare County, is located on the Outer Banks of North Carolina and approximately 50 miles south of the Virginia border. Kitty Hawk became famous after the Wright brothers selected it as the location to make their first powered airplane flights in 1903; thus Kitty Hawk is known as the Birthplace of Flight. The affluent, growing community of Kitty Hawk offers residents and visitors a relaxing and unique environment that consists of a village that has been around for generations, a newer beach community, and a maritime forest called Kitty Hawk Woods. Tourists often visit Kitty Hawk for the beaches and historic attractions such as the Wright Brothers National Memorial and the Fort Raleigh National Historic Site, where the English first attempted to colonize the new world in The closest large airport is in Norfolk, VA, about 82 miles north. Major airports with non-stop flights to Norfolk include Dallas, Chicago, and Atlanta. POPULATION* 2013 HOUSEHOLD INCOMES 3-Mile 5-Mile 10-Mile TOP EMPLOYERS IN DARE COUNTY Dare County Schools County Of Dare NC Dept Of Transportation 3-Mile 5-Mile 10-Mile ,995 9,668 21, ,167 9,899 22, ,471 10,324 23,375 Average $107,722 $91,222 $79,556 Median $72,560 $61,456 $56,036 * This data does not reflect the summer residents and tourists, which (based on restaurant receipts) quadruples the population BB&T BANK 12

13 A unique HUMAN RESULTS-DRIVEN client experience THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS [ ] RICK SANNER rsanner@capitalpacific.com (415) CA BRE# JOHN ANDREINI jandreini@capitalpacific.com (415) CA BRE# BOB SANNER bsanner@capitalpacific.com (415) CA BRE# CHRIS KOSTANECKI ck@capitalpacific.com (415) CA BRE# In conjunction with NC Licensed Broker: Stuart Mullen, Commercial Real Estate Carolina, LLC stuart@rangeds.com Copyright 2014 [Capital Pacific Real Estate Brokerage Company]