Chipotle Strip Center 499 Green River Rd, John Andreini jandreini@capitalpacific.com (415) 274-2715 CA DRE#: 01440360 Chris Kostanecki ck@capitalpacific.com [415] 274-2701 CA DRE#: 01002010 Evansville, IN 47715 Chris Peters cpeters@capitalpacific.com [415] 274-2703 Zeb Ripple zripple@capitalpacific.com [415] 274-2702 CA DRE#: 01242540 CA DRE#: 01339983 [www.capitalpacific.com]
CHIPOTLE ANCHORED SHOPPING CENTER DIRECTLY ACROSS FROM 1 MILLION SQUARE FOOT REGIONAL MALL Investment Highlights PURCHASE PRICE... $3,296,671 CAP RATE... 7.30% LOT SIZE... 37,897 SF YEAR BUILT... 2013 TOTAL RENTABLE AREA... 7,648 SF INVESTMENT HIGHLIGHTS > Excellent retail fundamentals - hard corner, signalized intersection, dominant visibility and in major retail trade area. > Dominant retail trade area - directly across from an approximately 1,000,000 square foot mall with area retailers that include Macy s, Dillard s, Aeropostale, Kay Jewelers, Victoria s Secret, Footlocker, Marshall s, Bed Bath & Beyond, and 100 additional retailers within a 2 block radius. > Major employment hub - 7 publicly traded companies are headquartered in Evansville along with numerous Fortune 500 companies that have thousands of employees located in Evansville. LEASE HIGHLIGHTS > All corporate leases > 10-year primary terms > 10% rental increases every 5 years > Renewal options with 10% rental increases in all leases > Landlord responsible for roof and structure > Not subject to any major outside conditions, covenants, or restrictions > Tenant reimburses for common area maintenance EVANSVILLE STRIP CENTER 2
Regional Map HIGH VISIBILITY LOCATION ON A 4-LANE HIGHWAY ACROSS THE STREET FROM THE EASTLAND MALL EVANSVILLE STRIP CENTER EVANSVILLE STRIP CENTER 3
62 LLOYD CROSSING 164 57 69 66 62 DAILY EASTLAND PLACE E Lloyd Expressway VILLAGE COMMONS enue 24,090 an Av Morg N Burkhardt Road EAST LLOYD COMMONS Covert Avenue INDIANAPOLIS 57 164 EVANSVILLE PAVILLION 42,070 DAILY Lynch Road e nu ve na rga Mo 69 LAWNDALE SHOPPING CENTER WASHINGTON SQUARE MALL N Green River Road 66 Covert Avenue EVANSVILLE STRIP CENTER 59,290 DAILY Lynch Road EASTLAND MALL EVANSVILLE STATE HOSPITAL EVANSVILLE STRIP CENTER 4
Eastland Mall Site Plan - Across the Street from the Subject Property DEVELOPMENT OPPORTUNITY GATTI TOWN VOGEL ROAD SLEEP OUTFITTERS DAVID S BRIDAL AVAILABLE LONGHORN STEAKHOUSE STARBUCKS LIC S ASPEN DENTAL 8670 SF WENDY S CHILI S JARED JEWELERS AVAILABLE AVAILABLE OLIVE GARDEN FIFTH THIRD BANK NORTH GREEN RIVER ROAD EVANSVILLE STRIP CENTER 5
Income & Expense PRICE $3,296,671 Price Per Square Foot: $431.05 Capitalization Rate: 7.30% Total Rentable Area (SF): 7,648 Lot Size (Acres): 0.87 Year Built: 2013 STABILIZED INCOME Per Square Foot Scheduled Rent $31.47 $240,657 Effective Gross Income $31.47 $240,657 LESS Per Square Foot Taxes NN $0.00 Insurance NN $0.00 Total Operating Expenses $0.00 EQUALS NET OPERATING INCOME $240,657 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. EVANSVILLE STRIP CENTER 6
Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent Monthly Rent/ FT Yearly Rent/ FT Chipotle 2,295 7/31/13 7/31/18 $73,440 $6,120 $73,440 $2.67 $32.00 8/1/18 7/31/23 $6,732 $80,784 $2.93 $35.20 Option 1 8/1/23 7/31/28 $7,405 $88,862 $3.23 $38.72 Option 2 8/1/28 7/31/33 $8,146 $97,749 $3.55 $42.59 Option 3 8/1/33 7/31/38 $8,960 $107,524 $3.90 $46.85 Option 4 8/1/38 5/31/43 $9,856 $118,276 $4.29 $51.54 All About Eyes 2,805 8/26/13 8/31/18 $86,955 $7,246 $86,955 $2.58 $31.00 9/1/18 8/31/23 $7,971 $95,651 $2.84 $34.10 Option 1 9/1/23 8/31/28 $8,768 $105,216 $3.13 $37.51 Option 2 9/1/28 8/31/33 $9,645 $115,737 $3.44 $41.26 Sleep Number 2,548 6/1/14 5/31/19 $80,262 $6,689 $80,262 $2.63 $31.50 6/1/19 5/31/24 $7,357 $88,288 $2.89 $34.65 Option 1 6/1/24 5/31/29 $8,093 $97,117 $3.18 $38.12 Option 2 6/1/29 5/31/34 $8,902 $106,829 $3.49 $41.93 Current Totals: 7,648 $240,657 $20,055 $240,657 $2.62 $31.47 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. EVANSVILLE STRIP CENTER 7
Tenants Chipotle Chipotle Mexican Grill, Inc., founded by Steve Ells in 1993, is a global chain of fast-casual restaurants. It is best known for its large burritos, assembly line production, and use of natural ingredients. The company has over 1,400 locations, with restaurants in 43 states, the District of Columbia, Canada, England, and France. Chipotle restaurants are company-owned rather than franchised, and they have over 37,000 employees. Chipotle went public on the New York Stock Exchange in 2006, and the stock rose exactly 100% on the first day, resulting in the best U.S.-based IPO in six years, and the second-best IPO for a restaurant after Boston Market. Over the previous year, the net income was $327.4 million, and an increase of 17.8%. Additionally, their 2013 revenue was a reported $3.21 billion. Chipotle continues to grow rapidly as they opened 185 stores in 2013, bringing the current total to approximately 1600. Sleep Number Founded over 20 years ago, Select Comfort Corporation (the US-based manufacturer of the Sleep Number bed) has made a name for itself designing, manufacturing, and marketing a line of adjustable-firmness mattresses featuring air-chamber technology, as well as bases and bedding accessories. In 2013, Sleep Number had expanded their number of stores to 440 locations, and bringing the total of revenues to $960 million. All About Eyes All About Eyes is a full scale optometric service. They work with fully licensed Doctors of Optometry, and offer personalized services tailored to fit each customers individual eye care needs. The company was started by lifelong friends Harlan D. Hankins, II, and Chad A. Wolenhaupt in 2005, when they opened their first location in Bloomington, Illinois. Just eighteen months later they opened their second location, and by 2008, the company had opened 7 retail stores. Unlike many other retailers, All About Eyes is constantly researching and investing in lens technology and manufacturing in an effort to better serve their customers. Today, All About Eyes operates more than 20 locations and employs over 100 people. EVANSVILLE STRIP CENTER 8
Area Retail Photos EVANSVILLE STRIP CENTER 9
Evansville, IN The city of Evansville is the social and economic hub for Southwestern Indiana and the Illinois-Indiana-Kentucky Tri-State Area. With a population of roughly 120,000, it is the third largest city in the state of Indiana, and the largest city in Southern Indiana. Located on a scenic bend on the Ohio River, Evansville was founded in 1812, and incorporated in 1819. Evansville has several well-known educational institutions including the University of Southern Indiana, Signature School, and the University of Evansville - a small private school that is consistently ranked by U.S. News & World Report as one of the top 10 regional universities in the Midwest. In 2005, the Alliance for Youth named Evansville one of the 100 Best Communities for Young People. The broad economic base of the region has helped to build an economy which is known for its stability, diversity, and vitality. The largest sectors by size in Evansville are health care, finance, education, and manufacturing. Four NYSE companies (Accuride Corporation, Berry Plastics, Springleaf Financial, Vectren Corporation ) are headquartered in Evansville, along with three other companies traded on the NASDAQ (Escalade, Inc., Old National Bank, Shoe Carnival). In 2006, The Indiana Chamber of Commerce named Evansville the Community of the Year. Demographics Population 1 Mile 3 Miles 5 Miles 2010 Population 4,962 66,208 120,482 2013 Population 4,990 67,624 122,581 2018 Population (Projection) 5,035 69,444 125,496 2013 Income 2013 Average Household Income $43,796 $54,917 $53,305 Copyright 2014 [Capital Pacific Real Estate Brokerage Company] Top Employers in Evansville Employer # of Employees (Approx.) Toyota Motor Indiana 5,000 Deaconess Hospital 3,000 St. Mary s Medical Center 2,600 ALCOA Warrick Operations 2,450 Bristol-Myers Squibb 2,300 EVANSVILLE STRIP CENTER 10