OFFERING MEMORANDUM SITE PHOTO
CONFIDENTIALITY AND DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
NET LEASED DISCLAIMER Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
TABLE OF CONTENTS Section 1 PRICING AND FINANCIAL ANALYSIS Section 2 PROPERTY DESCRIPTION Section 3 RECENT SALES Section 4 DEMOGRAPHIC ANALYSIS
PRICING AND FINANCIAL ANALYSIS Sherwin-Williams
PRICING AND FINANCIAL ANALYSIS FINANCIAL OVERVIEW Location 1936 Kimberly Road Twin Falls, ID 83301 Price $479,256 Down Payment 100% / $479,256 Rentable Square Feet 4,400 Price/SF $108.92 CAP Rate 7.80% Year Built 1977 Lot Size Type of Ownership.46 ACS Fee Simple Annualized Operating Data Rent Increases Annual Rent Monthly Rent 2012-2017 $37,383.00 $3,115.25 2017-2022 (Option 2) $39,600.00 $3,300.00 Base Rent ($8.50/SF) $37,383 Net Operating Income $37,383 Total Return 7.80% / $37,383 Formerly operated as Columbia Paints, which has been acquired by Sherwin Williams. To be rebranded as Sherwin- Williams in 2013. Tenant Summary Tenant Trade Name Ownership Tenant Lease Guarantor Lease Type Roof and Structure Lease Term Sherwin Williams Public Corporate Store Corporate Guarantee Double Net Landlord Responsible Five Years Lease Commencement Date 10/01/2012 Rent Commencement Date 10/01/2012 Lease Expiration Date 09/30/2017 Term Remaining on Lease Increases Options 4.1 Years In Options One Five-Year 1
PRICING AND FINANCIAL ANALYSIS TENANT OVERVIEW Property Name Sherwin-Williams Property Address 1936 Kimberly Road Twin Falls, ID 83301 Property Type Net Leased Miscellaneous Rentable Square Feet 4,400 Tenant Trade Name Ownership Tenant Sales Volume Net Worth Lease Guarantor Credit Rating Rating Agency Stock Symbol Board Sherwin Williams Public Corporate Store 2012 Sales $9.53 Billion $17.32 Billion Market Value Corporate Guarantee A Standard & Poor's SHW NYSE Lease Commencement Date 10/01/2012 Rent Commencement Date 10/01/2012 Lease Expiration Date 09/30/2017 Term Remaining on Lease 4.1 Years Lease Type Double Net Roof and Structure Landlord Responsible Lease Term Five Years Increases In Options Options to Renew One Five-Year No. of Locations 3500+ Nationwide Headquartered Cleveland, Ohio Web Site www.sherwin-williams.com Years in the Business 147+ Years Tenant or landlord may terminate the lease with 180-day notification after October 1, 2016. No matter how you coat it, Sherwin-Williams is one of the largest paint manufacturers in the US and worldwide. Sherwin-Williams' products include a variety of paints, finishes, coatings, applicators, and varnishes sold under brands such as Dutch Boy, Krylon, Sherwin-Williams, Thompson's WaterSeal, Ronseal, Sayerlack, and Minwax. The company operates more than 3,500 paint stores worldwide. It sells automotive finishing and refinishing products through wholesale branches throughout the Americas, as well as in Asia and Europe. Other outlets (and competitors) include mass merchandisers, home centers, independent dealers, and automotive retailers. 2
PROPERTY DESCRIPTION Sherwin-Williams
PROPERTY DESCRIPTION INVESTMENT OVERVIEW Investment Highlights Located Mid-Block in the Heart of the Region's Retail Area Located in a Predominantly Residential Community Twin Falls Serves as the Regional Commercial Center for Both South-Central Idaho and Northeastern Nevada Located on Kimberly Road on a Four-Lane Thoroughfare Although the area is predominantly residential, the immediate surrounding area is commercial. The subject is in the same neighborhood as Fast Glass, Quales Electronics Center, Sinclair Gas, Twin Falls Trucking Company, Napa Auto Parts, Twin Falls Tractor Supply, UHaul, Subway, and a Chevron Station. Beyond this commercial district are light industrial centers. 4
PROPERTY DESCRIPTION PROPERTY SUMMARY The Offering Property Property Address Sherwin-Williams 1936 Kimberly Road Twin Falls, ID 83301 Site Description Year Built 1977 Rentable Square Feet 4,400 Lot Size.46 ACS Type of Ownership Fee Simple 5
PROPERTY DESCRIPTION AREA MAPS Local Map Regional Map 6
PROPERTY DESCRIPTION AERIAL PHOTO the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any 7
RECENT SALES Sherwin-Williams
RECENT SALES RECENT SALES MAP 1) 2) 3) 4) Sherwin-Williams Sherwin Williams - St. Louis, MO Sherwin WIlliams - Mableton, GA Sherwin Williams - Ottumwa, IA Sherwin Williams - Taylor, MI 9
RECENT SALES CAP RATE AND PRICE PER SQUARE FOOT Average Cap Rate 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Subject Sherwin Williams - St. Louis, MO Sherwin WIlliams - Mableton, GA Sherwin Williams - Ottumwa, IA Sherwin Williams - Taylor, MI Average Price per Square Foot 240.00 210.00 180.00 150.00 120.00 90.00 60.00 30.00 0.00 Subject Sherwin Williams - St. Louis, MO Sherwin WIlliams - Mableton, GA Sherwin Williams - Ottumwa, IA Sherwin Williams - Taylor, MI 10
RECENT SALES RECENT SALES Sherwin-Williams 1936 Kimberly Road Twin Falls, ID 83301 Rentable Square Feet: 4,400 Sales Price: $479,256 Year Built: 1977 Down Payment: $479,256 CAP Rate: 7.80% Subject Property Price/SF: $108.92 1 Sherwin Williams - St. Louis, MO 1608 South Broadway St Louis, MO 63104 Close of Escrow: On Market Sales Price: $705,000 Rentable SF: 7,820 Down Payment: 100% Year Built: 1870 CAP Rate: 6.85% Price/SF: $90.00 Comments Tenant executed a nine-year extension. 2 Sherwin WIlliams - Mableton, GA 875 Veterans Memorial Highway Mableton, GA 30126 Close of Escrow: 01/13/2013 Sales Price: $660,000 Rentable SF: 6,500 Down Payment: 100% Year Built: 1992 CAP Rate: 7.58% Price/SF: $102.00 Comments Seven years remain on a 10-year lease extension. 11
RECENT SALES RECENT SALES 3 Sherwin Williams - Ottumwa, IA 1231 Theatre Drive Ottumwa, IA 52501 Close of Escrow: 08/23/2012 Sales Price: $900,000 Rentable SF: 4,000 Down Payment: 100% Year Built: 2012 CAP Rate: 7.60% Price/SF: $225.00 Comments New 10-year, double net lease. 4 Sherwin Williams - Taylor, MI 24123 Van Born Road Taylor, MI 48180 Close of Escrow: 09/20/2012 Sales Price: $1,208,000 Rentable SF: 5,000 Down Payment: 100% Year Built: 2001 CAP Rate: 8.00% Price/SF: $242.00 Comments 10 years remain on the base term of a double net lease. 12
DEMOGRAPHIC ANALYSIS Sherwin-Williams
DEMOGRAPHIC ANALYSIS DEMOGRAPHIC REPORT 1 Mile 3 Miles 5 Miles 2000 Population 6,833 34,463 43,731 2010 Population 7,678 41,063 54,314 2012 Population 7,784 41,653 55,290 2017 Population 7,989 43,571 58,476 2000 Households 2,617 13,039 16,501 2010 Households 2,902 15,409 20,354 2012 Households 2,942 15,645 20,732 2017 Households 3,049 16,491 22,099 2012 Average Household Size 2.58 2.59 2.63 2012 Daytime Population 3,967 18,938 24,122 2000 Median Housing Value $93,502 $96,692 $96,504 2000 Owner Occupied Housing Units 61.93% 60.12% 62.10% 2000 Renter Occupied Housing Units 31.03% 33.40% 31.73% 2000 Vacant 5.89% 6.21% 6.14% 2012 Owner Occupied Housing Units 49.12% 53.82% 56.47% 2012 Renter Occupied Housing Units 44.03% 39.35% 36.72% 2012 Vacant 6.85% 6.84% 6.81% 2017 Owner Occupied Housing Units 48.57% 53.80% 56.45% 2017 Renter Occupied Housing Units 44.46% 39.27% 36.63% 2017 Vacant 6.96% 6.93% 6.92% $ 0 - $14,999 12.9% 13.3% 12.4% $ 15,000 - $24,999 13.6% 11.9% 11.2% $ 25,000 - $34,999 12.8% 12.7% 12.0% $ 35,000 - $49,999 20.2% 17.5% 17.4% $ 50,000 - $74,999 22.8% 23.3% 24.6% $ 75,000 - $99,999 9.6% 10.5% 11.2% $100,000 - $124,999 3.7% 4.3% 4.9% $125,000 - $149,999 2.5% 3.2% 3.0% $150,000 - $199,999 1.1% 1.6% 1.5% $200,000 - $249,999 0.5% 0.7% 0.6% $250,000 + 0.3% 1.2% 1.2% 2012 Median Household Income $43,640 $45,969 $47,776 2012 Per Capita Income $19,600 $22,140 $22,509 2012 Average Household Income $50,658 $58,063 $59,228 Demographic data 2012 by Experian. 14
DEMOGRAPHIC ANALYSIS POPULATION DENSITY Demographic data 2012 by Experian. Number of people living in a given area per square mile. 15
DEMOGRAPHIC ANALYSIS EMPLOYMENT DENSITY Demographic data 2012 by Experian. The number of people employed in a given area per square mile. 16
DEMOGRAPHIC ANALYSIS AVERAGE HOUSEHOLD INCOME Demographic data 2012 by Experian. Average income of all the people 15 years and older occupying a single housing unit. 17
OFFERING MEMORANDUM Presented By: Offices Nationwide www.marcusmillichap.com Paul Ryan Broker M&M REIS License: ID DB39666 Tel: (208)319-3649 Fax: (208)319-3501