7-ELEVEN (Ground Lease)

Transcription

1 7-ELEVEN (Ground Lease) 7525 Osceola Polk Line Rd Davenport, FL (35 miles to Downtown Orlando)

2 TABLE OF CONTENTS TABLE OF CONTENTS I. Executive Profile Executive Summary Investment Highlights Property Overview II. Location Overview Photographs Aerial Site Plan Map III. Market & Tenant Overview Demographic Report Market Overview Tenant Overview

3 DISCLAIMER STATEMENT DISCLAIMER STATEMENT: The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum 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. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group 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.

4 EXECUTIVE SUMMARY EXECUTIVE SUMMARY: The Boulder Group is pleased to exclusively market for sale a single tenant 7-Eleven ground lease in Davenport, Florida (just outside of Orlando MSA). The property is strategically located along the primary east-west thoroughfare in the area with interchangeable access to the regions primary interstate highway. 7-Eleven has 10 years remaining on their 20 year ground lease which expires August 31, The absolute triple net lease features rental escalations every five years and in each of the five 5-year renewal option periods. The rent will increase by 9% in September Eleven is an investment grade rated tenant with a Standard & Poor s rating of AA-. The 1.16 acre property is located along Osceola Polk Line Road, a primary east-west thoroughfare in the area that experiences traffic counts of 23,563 vehicles per day. The property is less than one and one-half mile east of Interstate 4 with a full access interchange (114,500 vehicles per day). Interstate 4 is a major northeast-southwest artery providing the only direct access between Orlando and Tampa. The 7-Eleven property benefits from its position within a strong retail corridor that features a Publix Supermarket, CVS Pharmacy, Anytime Fitness, Wells Fargo and McDonald s. Immediately north of the 7-Eleven is Reunion Resort, a resort and community situated on 2,226 acres that features a water park, three PGA golf courses and more than 6,230 residential units, 1,570 hotel rooms, 140,000 square feet of office space and 484,000 square feet of retail space. The property is also located within close proximity to a number of major theme parks including Walt Disney World (10 miles), Animal Kingdom (11 miles), Epcot (13 miles) and Sea World (15 miles). There are over 35,230 people living within a five mile radius of the property earning an average household income in excess of $79,752 per year. There are 10 years remaining on the 7-Eleven ground lease which expires August 31, The lease features 9% rental escalations every five years throughout the primary term and each of the five 5-year renewal option periods. The rent will increase by 9% in September Eleven is the world s largest convenience store chain operating, franchising and licensing more than 56,600 stores in 18 countries. 7-Eleven is also one of the nation s largest independent gasoline retailers and was ranked #1 by Entrepreneur Magazine in the 2017 annual Franchise 500" ranking.

5 INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS: Ground lease with over 10 years remaining Absolute triple net with zero landlord responsibilities Rent increases by 9% in September 2023 Investment grade rated tenant (S&P: AA-) Benefits from its position within a strong retail corridor that features a Publix Supermarket, CVS Pharmacy, Anytime Fitness, Wells Fargo and McDonald s Immediately south of Reunion Resort; a 2,226 acres resort and community that features a water park, three PGA golf courses and more than 6,230 residential units, 1,570 hotel rooms, 140,000 square feet of office space and 484,000 square feet of retail space Located less than 10 miles from Walt Disney World Over 35,230 people living within a five mile radius of the property earning an average household income in excess of $79,752 per year Just outside of Orlando MSA Florida is a tax free state

6 PROPERTY OVERVIEW PROPERTY OVERVIEW: Price: $3,123,000 Cap Rate: 5.25% Rent Schedule: NOI Escalation Date $163,958 $178,714 9/1/2023 $194,798 9/1/2028 (Option 1) $212,330 9/1/2033 (Option 2) $231,440 9/1/2038 (Option 3) $252,269 9/1/2043 (Option 4) $274,974 9/1/2048 (Option 5) Renewal Options: Five 5-Year Rental Escalations: 9% Every 5-Years Lease Commencement Date: September 1, 2008 Lease Expiration Date: August 31, 2028 Tenant: 7-Eleven Standard & Poor s Rating: AA- Year Built 2008 Lease Type: Ground Lease (No Landlord Responsibilities) Parking: 18 Spaces Building Size: 2,900 SF Land Size: 1.16 Acres

7 PHOTOGRAPHS

8 AERIAL

9 SITE PLAN

10 MAP

11 MAP

12 DEMOGRAPHIC REPORT DEMOGRAPHIC REPORT: Population 1-Mile 3-Mile 5-Mile Total Population 2,034 10,792 35,230 Total Households 755 3,957 12,840 Income 1-Mile 3-Mile 5-Mile Median Household Income $53,517 $54,405 $57,603 Average Household Income $69,376 $69,843 $79,752

13 MARKET OVERVIEW MARKET OVERVIEW: Davenport, Florida Davenport is a city in Polk County, Florida with a population of over 2,900 people. Davenport is in the North eastern section of Polk County, in Central Florida, near Lake Tohopekaliga and Lake Marion. Its close proximity to Walt Disney World makes it a very popular destination for tourists wanting to visit the famous theme park. The greater area of Davenport includes the area up to the southern border of Lake County and the western border of Osceola County. While the city of Davenport itself is small, the area north of the city close to Interstate 4 and US 27 is experiencing explosive growth. It is part of the Lakeland Winter Haven Metropolitan Statistical Area which has more than 602,000 people. Davenport is generally a place to visit if looking for a smaller, relaxed town to stay in while visiting some of the many attractions nearby. Most often, visitors to Davenport use the town as a jumping-off point to visit places like Walt Disney World, Epcot, MGM Studios, Animal Kingdom, Universal Studios, Islands of Adventure, Sea World and Wet n Wild Water Park, all located in Orlando, just a short drive away. Davenport is located less than 10 miles from Walt Disney World, along Interstate 4. It s situated about 25 miles west of Orlando, and 55 miles east of Tampa, both of which have international airports.

14 MARKET OVERVIEW MARKET OVERVIEW: Orlando, Florida Orlando is a city in Florida and the county seat of Orange County. Located in Central Florida, it is the center of the Orlando metropolitan area, which has a population of more than 2,385,000 people making it the 24th-largest metropolitan area in the United States, the sixth-largest metropolitan area in the Southern United States, and the third-largest metropolitan area in Florida. The City of Orlando is nicknamed The City Beautiful, and its symbol is the fountain at Lake Eola. Orlando is also known as The Theme Park Capital of the World and its tourist attractions and events draw more than 62 million visitors. The Orlando International Airport (MCO) is the thirteenth-busiest airport in the United States and the 29th-busiest in the world. As one of the world s most visited tourist destinations, Orlando s famous attractions form the backbone of its tourism industry: Walt Disney World, located approximately 21 miles southwest of Downtown Orlando in Bay Lake, opened by the Walt Disney Company in 1971; the Universal Orlando Resort, opened in 1999 as a major expansion of Universal Studios Florida. With the exception of Walt Disney World, most major attractions are located along International Drive. The city is also one of the busiest American cities for conferences and conventions; the Orange County Convention Center is the second-largest convention facility in the United States.

15 TENANT OVERVIEW TENANT OVERVIEW: 7-Eleven 7-Eleven is the world s largest convenience store chain operating, franchising and licensing more than 56,600 stores in 18 countries. 7-Eleven is also one of the nation s largest independent gasoline retailers. Founded in 1927 in Dallas, Texas, 7-Eleven pioneered the convenience store concept during its first years of operation as an ice company when its retail outlets began selling perishable items as a convenience to guests. The company s iconic products have become a substantial part of American culture from its well-known Big Gulp fountain soft drink and Big Bite grill items to the Slurpee beverage and its fresh-brewed coffee. 7-Eieven s food service offerings bring guests a proprietary line of prepared-fresh-daily and daily delivered deli sandwiches, wraps, breakfast sandwiches and a wide assortment fruits, salads and baked goods. The name 7-Eleven originated in 1946 when the stores were open from 7:00AM to 11:00PM. 7-Eleven was ranked #1 by Entrepreneur Magazine in the 2017 annual Franchise 500 ranking. It is an investment grade rated company with a Standard & Poor s rating of AA-. Website: Founded: 1927 Number of Locations: 56,600 Number of Employees: 45,000+ Standard & Poor s Rating: AA- Headquarters: Irving, Texas

16 Randy Blankstein President Jimmy Goodman Partner Dundee Road, Suite 1801 Northbrook, IL