INVESTMENT OFFERING EVANSVILLE, IN - EVANSVILLE SHOPS

Transcription

1 INVESTMENT OFFERING EVANSVILLE, IN - EVANSVILLE SHOPS

2 EVANSVILLE SHOPS 1031 N Green River Rd., Evansville, IN EXCLUSIVE INVESTMENT ADVISORS: LOCAL MARKET ADVISOR: Thomas Chichester Managing Director tchichester@farislee.com (949) R.E. License No Nicholas Coo Senior Managing Director ncoo@farislee.com (949) R.E. License No Joseph Chichester Managing Director jchichester@farislee.com (949) R.E. License No Matt Brooks Director mbrooks@farislee.com (949) R.E. License No Wes Elmore 1531 Ormsby Station Court Louisville, KY (502) BROKER OF RECORD Aaron McDermott IN Broker #: PB Von Karman Avenue, Suite 800, Irvine, CA P (949) F (949) The information contained herein has been carefully compiled from sources we consider reliable, and while not guaranteed as to completeness or accuracy, we believe it to be correct as of this date. The proforma revenues and expenses set forth in this brochure do not constitute a representation, warranty, or guaranty of any of the numbers set forth herein or of any economic value attributable to the property or income that may be derived therefrom. Independent estimates of proforma revenues and expenses should be developed before any decision is made on whether to invest in the property.

3 TABLE OF CONTENTS Property Specifications Pricing Analysis 4 14 DOWNTOWN EVANSVILLE

4 PROPERTY OVERVIEW

5 ES $3,256,000 PRICE $219,768 NOI 6.75% CAP RATE THE OFFERING Faris Lee Investments is pleased to offer for sale the fee simple interest (land and building), in a 3-tenant, 100% leased strip center, located in Evansville, IN. The property features a national tenant lineup including: The Vitamin Shoppe, Firehouse Subs, and T-Mobile, which have all been operating at this site successfully for many years. The property is very well positioned in Evansville, sitting in the heart of the regions retail center and directly across from Evansville s Eastland Mall (1,000,000+ SF). As the regional hub for the Tri-State (Indiana, Kentucky, and Illinois) area, Evansville is home to the University of Southern Indiana and also the University of Evansville. In addition, there are over 124,000 consumers and over 117,000 daytime employees within a 5-mile radius of the center providing a consistent stream of customer activity.

6 INVESTMENT HIGHLIGHTS 100% LEASED Strong Tenant Lineup / Nationally Recognized Brands T-Mobile: Public Company (NYSE: TMUS), 700+ locations, S&P rated BB The Vitamin Shoppe: 700+ locations, 2018 assets of $420 Million and publicly traded company (NYSE: VSI) Firehouse Subs: Over 1,100 locations throughout 44 states, generated more than $715 in system-wide sales in 2017 Ease of Management / NNN Leases The property is fully occupied with 3 nationally recognized tenants providing ease of management Ideal investment for 1031 exchange buyer Signage / Strong Visibility along one of Evansville s Busiest Thoroughfares Located along one of Evansville s most trafficked roadways - N. Green River Road (30,000 VPD) Features excellent street frontage and visibility with pylon signage Convenient access Strong Demographics / Tri-State Area (IN, KY, IL) Over 124,700 people within 5-mile radius Over $62,600 AAHI within 5-mile radius Over 117,300 daytime business employees within 5-miles Located within Dominant Retail Corridor within Evansville Property is located directly across from the 1,000,000+ SF Eastland Mall with retailers including: Macy s, JCPenny, Dillard s, Bath & Body Works, Old Navy, and much more. Other strong retailer in the immediate area include Marshalls, David s Bridal, Bed Bath & Beyond, Chipotle, McDonald s, Starbucks, Chuck E. Cheese s and much more. Increases consumer demand and cross-over traffic to the immediate area Located in the Regional Hub for the Tri- State Area Property is strategically situated in Evansville, which is the #3 largest city in all of Indiana and is a regional hub being only 26 miles from Illinois and less than 1 mile from Kentucky.

7 PROPERTY SPECIFICATIONS Parcel Map Location 1031 N Green River Rd Evansville, IN Rentable Area 8,050 SF Land Area: 0.9 Acres (49,223 SF) Ownership Fee Simple (Land & Building) Access There are two (2) access points, one (1) along N Green River Road and one (1) along Carriage Drive PARCEL ACRES SF ,223 Parking There are approximately 49 dedicated parking stalls on the owned parcel. The parking ratio is approximately 6.1 parking stalls per 1,000 SF of leasable area. Traffic Counts* N Green River Rd: 30,070 VPD Carriage Drive: 6,000 VPD Year Built 2007 Commercial General/Retail Zoning * CoStar 2018 Property Overview 7

8 ADJACENT PROPERTY Property Overview 8

9 NEARBY RETAILERS ES Property Overview 9

10 AERIAL VIEW Property Overview 10

11 EVANVILLE INTEL DISTANCE FROM EVANSVILLE: 90 Miles 130 Miles 140 Miles 150 Miles LOUISVILLE NASHVILLE INDIANAPOLIS ST. LOUIS 114,000+ Employees in a 5 mile radius 5.1% Predicted job growth over the next 5 years 3.75% Recent Job Growth in Evansville 5.3% Home appreciation in the last year ES 120,200 Estimated Population in Evansville $ 62,800+ Average Household Income in 5 Mile radius 19 Minutes Average Commute Time ES Property Overview 11

12 EVANSVILLE, IN OVERVIEW Fast Facts The Town of Evansville Located along the banks of the Ohio River in the southwestern corner of Indiana is the city of Evansville. As the regional hub for the Tri-State (Indiana, Kentucky, and Illinois) area, Evansville is home to the University of Southern Indiana and also to the University of Evansville. The city, which is also known as the River City, serves as the county seat of Vanderburgh County. By the middle of the 20th century, Evansville evolved as a major industrial center and by the latter part of the century, had transformed itself into a regional commercial and medical hub. The city s economy received a major boost in 1995 with the opening of Casino Aztar, the first riverboat casino in the state of Indiana. The associated entertainment facility includes a 250-room hotel, shops, restaurants, and a nearby entertainment district. The town is home to around 120,200 people, making it the third most populous city after Indianapolis and Fort Wayne. In 2008, the town was rated by Kiplinger as #1 in the country to live, work, and play. In 2009, it ranked eleventh. MAJOR EMPLOYERS Company Deaconess Hospital Toyota St. Vincent Health Evansville Vanderburgh Schools University of Southern Indiana Berry Global TJ Maxx Koch Enterprises OneMain Financial City of Evansville Employment 6,100 5,400 3,529 3,290 2,512 2,699 1,520 2,000 1, Economic Highlights Corporate Headquarters Several large publicly traded companies have established national or international headquarters in Evansville, including Accuride, Berry Global, Springleaf (OneMain) Financial, Vecatren, Escalade, Old National Bank, and Shoe Carnival. The town serves as the major economic hub for the Southern Indiana/Northern Kentucky region. SPRINGLEAF (ONEMAIN) FINACE OFFICE Education»» The University of Evansville is a small private school on the town s east side affiliated with the United Methodist Church. The vast majority of the school s 2,500 students study natural sciences and the liberal arts.»» The University of Southern Indiana is a much larger school (11,030 students) and lie just outside of Evansville s western border. The school is well known throughout the state for its prowess in medicine, nursing, and education studies. Property Overview 12

13 DEMOGRAPHICS Business Income Ethnicity Households Population Evansville, IN (rol3.sitesusa.com) 1 Mile 3 Mile 5 Mile 2018 Estimated Population 4,247 61, , Projected Population 4,120 60, , Census Population 4,274 61, , Census Population 4,378 58, ,557 Projected Annual Growth 2018 to % -0.3% 0.2% Historical Annual Growth 2000 to % 0.2% 0.2% 2018 Median Age Estimated Households 2,144 28,130 54, Projected Households 2,135 28,323 56, Census Households 2,080 27,204 52, Census Households 2,080 25,532 50,935 Projected Annual Growth 2018 to % 0.1% 0.7% Historical Annual Growth 2000 to % 0.6% 0.4% 2018 Estimated White 78.5% 82.6% 79.7% 2018 Estimated Black or African American 10.0% 9.8% 13.3% 2018 Estimated Asian or Pacific Islander 4.0% 2.2% 2.0% 2018 Estimated American Indian or Native Alaskan 0.3% 0.3% 0.3% 2018 Estimated Other Races 7.2% 5.1% 4.8% 2018 Estimated Hispanic 6.5% 4.2% 3.4% 2018 Estimated Average Household Income $45,388 $62,173 $62, Estimated Median Household Income $33,892 $50,324 $49, Estimated Per Capita Income $22,933 $28,722 $27, Estimated Total Businesses 1,213 3,951 6, Estimated Total Employees 17,608 59, , Estimated Employee Population per Business Estimated Residential Population per Business Property Overview 13

14 PRICING ANALYSIS

15 SITE PLAN Pylon Sign N. Green River Road 101 Unit Tenant Square Feet 101 T-Mobile 2, Firehouse Subs 2, Vitamin Shoppe 3,250 SITE PLAN NOT TO SCALE Pricing Analysis 15

16 RENT ROLL Suite # Tenant Size (SF) % of Total (SF) Current Monthly Rent Monthly Rent $/SF Current Annual Rent Annual Rent $/SF % of Total (Rent) Increase Date 1 Vitamin Shoppe 3,250 40% $9,831 $3.03 $117,975 $ % NNN 8/8/ /30/ (5-Year) 15% Admin on CAM Option 1: $39.93 PSF Option 2: $43.92 PSF 2 Firehouse Subs 2,400 30% $2,800 $1.17 $33,600 $ % Jan % $3,000 $1.25 $36,000 $15.00 NNN 10/1/ /31/ (5-Year) Jan % $3,600 $1.50 $43,200 $ % Admin on CAM Option 1: $19.50 PSF Jan % $3,800 $1.58 $45,600 $19.00 Increase Rental Increases Monthly Rent Monthly $/SF Annual Rent Annual $/SF CAM Recovery Type Lease Start Date Lease Expiration Date Lease Options 3 T-Mobile 2,400 30% $6,000 $2.50 $72,000 $ % NNN 5/6/2008 8/31/ (2-Year) 2.5% Mgmt $32.00 PSF Total Occupied 8, % $18,631 $2.31 $223,575 $ % Total Vacant 0 0% $0 $0 0% Total / Wtd. Avg: 8, % $18,631 $2.31 $223,575 $ % Notes: Firehouse Subs begins paying $33,600 effective January 1, 2019 Pricing Analysis 16

17 TRANSACTION SUMMARY Financial Information Estimated Potential 1st Loan: Price: $3,256,000 Loan Amount: $2,116,000 65% Down Payment: $1,140,000 35% Payment (monthly): ($11,359) Interest Rate: 5.00% Amortization: 30 years Property Specifications Maturity: 10 years Rentable Area: 8,050 SF Land Area: 0.9 Acres Year Built: 2007 Address: 1031 N Green River Road Evansville, IN APN: Major Tenants: Vitamin Shoppe, Firehouse Subs, T-Mobile Estimated Operating Information Jan-19 Gross Potential Rent $223,575 Plus Recapture $46,897 Tot. Gross Potential Income $270,472 Effective Gross Income $270,472 Less Expenses ($50,703) Net Operating Income $219,768 Less Debt Service ($136,310) Cash Flow $83,459 Cap Rate: 6.75% Cash/Cash: 7.32% Estimated Operating Expenses PSF/Yr Taxes (1) $32,430 $4.03 Insurance (2) $2,591 $0.32 CAM (3) $8,921 $1.11 Management (4) 2.50% $6,762 $0.84 Total $50,703 $6.30 (1) Per 2017 Income Statement and an applied 2% growth rate (2) Per 2017 Income Statement and an applied 2% growth rate (3) Per 2017 Income Statement and an applied 2% growth rate (4) Market rate of 2.5% of EGI has been estimated for Management. Pricing Analysis 17

18 TENANT SYNOPSIS THE VITAMIN SHOPPE Vitamin Shoppe, Inc., through its subsidiaries, operates as a omni-channel specialty retailer and contract manufacturer of nutritional products in the United States and internationally. The company provides custom manufacturing and private labeling services for vitamin, mineral, and supplement products, as well as develops and markets own branded products. It offers vitamins, minerals, herbs, specialty supplements, sports nutrition products, and other health and wellness products of approximately 900 brands, such as own brands comprising The Vitamin Shoppe, BodyTech, True Athlete, Mytrition, ProBioCare, Next Step, Optimum Nutrition,Quest Nutrition, Solaray and more. The company was formerly known as VS Holdings, Inc. and changed its name to Vitamin Shoppe, Inc. in November Vitamin Shoppe, Inc. was founded in 1977 and is headquartered in Secaucus, New Jersey. Company Type: Public: (NYSE: VSI) Locations: Equity: $ Million 2018 Assets: $ Million Website: FIREHOUSE SUBS Firehouse Subs is an American-based, fast casual food restaurant chain that specializes in hot subs and features locations in 44 states. Founded in 1994 in Jacksonville, Florida, by former firefighter brothers Robin and Chris Sorensen, Firehouse Subs serves sandwiches with meats and cheeses, steamed hot and placed on a toasted sub roll. The company operates over 1,100 locations throughout 44 states and abroad, which generated over $715 million in system-wide revenue in Company Type: Private Locations: 1,100+ Website: T-MOBILE As America s Un-carrier, T-Mobile US, Inc. (NYSE: TMUS) has redefined the way consumers and businesses buy wireless services through leading product and service innovation. The Company s advanced nationwide 4G LTE network delivers outstanding wireless experiences to approximately 72.6 million customers who are unwilling to compromise on quality and value. Based in Bellevue, Washington, T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and MetroPCS, which more than 2,200 T-Mobile and MetroPCS retail locations including store and kiosks throughout the US and internationally. Company Type: Public (NYSE: TMUS) 2017 Revenue: $40.60 Billion 2017 Employees: 51, Assets: $70.56 Billion 2017 Net Income: $5.53 Billion S&P Ranking: BB 2017 Equity: $22.55 Billion Website: Pricing Analysis 18

19 Thomas Chichester Nicholas Coo Joseph Chichester Matt Brooks Managing Director (949) R.E. License No Senior Managing Director (949) R.E. License No Managing Director (949) R.E. License No Director (949) R.E. License No Aaron McDermott IN Broker #: PB EVANSVILLE, IN - EVANSVILLE SHOPS Von Karman Ave., Suite 800 Irvine, CA P (949) F (949) farislee.com