Post on 21-Apr-2018
2475 Cobbs Ford Road - PRATTVILLE, ALABAMA 36066
Buffa lo Wi ld Wings + Kay Jewelers
ACTUAL PROPERTY
offer ing memorandum
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID X0332272 1
2475 Cobbs Ford Road - PRATTVILLE, ALABAMA 36066
Investment Overv iew
• Newly Constructed Buffalo Wild Wings and Kay Jewelers in Prattville, Alabama | Less Than 10 Miles Northwest of Montgomery
• Buffalo Wild Wings Signed a 10-Year Lease ith Four, Five-Year Renewal Options | 15 Percent Escalation in Rent in Option One, 10 Percent in Remaining Options
• Kay Jewelers Signed a 10-Year Lease with Two, Five-Year Renewal Options | 10 Percent Escala-tion in Rent Every Five Years
• Both Tenant’s Leases are Guaranteed by Corporate Entities
• Highly Visible Location Along Busy Retail Corridor | Over 32,600 Vehicles per Day Along Cobbs Ford Road
• Less Than One-Half-Mile from Interstate 65 | Over 56,600 Vehicles per Day | Runs Directly Through Montgomery
• Adjacent to Multiple Shopping Centers Anchored with Target, Publix, Home Depot, J.C. Penney, and Lowe’s
• Other Major Tenants in the Vicinity Include Belk, Carmike Cinemas, Best Buy, McDonald’s, Ross, PetSmart, Kohl’s, Ashley Furniture, Chipotle, Starbucks, and Many More
Marcus & Millichap is pleased to present this newly constructed Buffalo Wild Wings and Kay Jewelers in Prattville, Alabama. This 7,335-square foot retail asset is located just off Interstate 65 and is less than 10 miles northwest of Montgomery. Each tenant signed a 10-year lease with renewal options featuring rental escalations. Both leases are guaranteed by corporate entities.
The subject property is well located on Cobbs Ford Road, the main retail corridor of Prattville with over 32,600 vehicles per day. The asset is less than one-half-mile from Interstate 65 with over 56,600 vehicles per day.
Cobbs Ford Road is densely populated with retail space. The subject property is adjacent to shopping centers anchored with Target, Home Depot, Publix, J.C. Penney, and Belk. In close proximity are additional shopping centers featuring anchor tenants such as Lowe’s, Walmart, Kohl’s, Carmike Cinemas, Academy Sports, and Hobby Lobby. Other major tenants in the vicinity include McDonald’s, Starbucks, Mattress Firm, Ross, PetSmart, Books A Million, Office Depot, Ashley Furniture, Chipotle and many more. In addition, there are more than six national hotel chains within two miles of the asset.
Actual Property
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID X0332272 2
2475 Cobbs Ford Road - PRATTVILLE, ALABAMA 36066
PRICE: $ 3,267,700
CAP RATE: 6.35%
NOI: $ 207,500
PRICE PER SQUARE FOOT: $ 445.49
RENT PER SQUARE FOOT: $ 28.29
ADDRESS: 2475 Cobbs Ford Road | Prattville, AL
YEAR BUILT: 2016
LOT SIZE: 1.80 Acres
GROSS LEASEABLE AREA: 7,335 SF
Financia l Overv iew
Offer ing Summary Annua l i zed Operat ing Data :Income
Base Rent
Occupied Space $ 207,500
Gross Potential Rent $ 207,500
Expense Reimbursements
Real Estate Taxes $ 11,736
Insurance $ 2,201
CAM $ 22,739
Management Fee $ 8,300
Administrative Fee $ 2,274
Total Expense Reimbursements $ 47,250
Effective Gross Income $ 254,750
Expenses
Real Estate Taxes $ 11,736
Insurance $ 2,201
Administrative Fee $ 2,274
CAM $ 22,739
Management Fee (% of EGI) 3.3% | $8,300
Total Expenses $ 47,250
Expenses/SF $ 207,500
Actual Property
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID X0332272 3
2475 Cobbs Ford Road - PRATTVILLE, ALABAMA 36066
Lease Overv iew
Actual Property
Buffalo Wild Wings
GLA 5,085
% of Total GLA 69%
Lease Commence 12/5/2016
Lease Expire 1/31/2027
Annual Rent $134,753
Rent/SF $26.50
Increases In Options
Lease Summary
Base Rent Start End Annual Monthly Increase
12/5/2016 1/31/2027 $134,753 $11,229.38
Option 1 2/1/2027 1/31/2032 $155,347 $12,945.56 15%
Option 2 2/1/2032 1/31/2037 $170,856 $14,238.00 10%
Option 3 2/1/2037 1/31/2042 $187,942 $15,661.80 10%
Option 4 2/1/2042 1/31/2047 $206,756 $17,229.68 10%
KAY Jewelers
GLA 2,250
% of Total GLA 31%
Lease Commence 11/25/2016
Lease Expire 12/31/2026
Annual Rent $74,993
Rent/SF $33.33
Increases 10% Every 5 Years
Lease Summary
Base Rent Start End Annual Monthly Increase
11/25/2016 12/31/2021 $74,993 $6,249.38
1/1/2022 12/31/2026 $82,508 $6,875.63 10%
Option 1 1/1/2027 12/31/2031 $90,743 $7,561.88 10%
Option 2 1/1/2032 12/31/2036 $99,833 $8,319.38 10%
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID X0332272 4
2475 Cobbs Ford Road - PRATTVILLE, ALABAMA 36066
Tenant Overview - Buffalo Wild Wings
TENANT PROFILE
Actual Property
Buffalo Wild Wings was founded in 1982 at a location near The Ohio State University. In 1991, the company began franchising, and in 2003, they completed an initial public offering. Buffalo Wild Wings is listed on the NASDAQ under the symbol BWLD. In 2015 Buffalo Wild Wings generated $1.8 billion in revenue and had a net worth of $655 million. The company now operators over 1,080 restaurants in the United States, Canada, Mexico, and Philippines.
As an established and growing owner, operator, and franchisor, Buffalo Wild Wings offers a variety of boldly-flavored menu items including Buffalo, New York-style chicken wings. A welcoming neighborhood atmosphere that includes an extensive multi-media system, a full bar, and an open layout appeals to
sports fans and families alike. Guests have the option of watching sporting events or other popular programs on projection screens or the approximately 50 additional televisions or playing video games. Buffalo Wild Wings restaurants have widespread appeal and have won dozens of “Best Wings” and “Best Sports Bar” awards across the country.The menu features traditional chicken wings, boneless wings, and other items including chicken tenders, flatbreads, specialty hamburgers and sandwiches, wraps, Buffalito, soft tacos, appetizers, and salads. The bold flavor of 21 different signature sauces and seasonings enhance Buffalo Wild Wing’s made-to-order menu items. The restaurants’ offer approximately 30 domestic and imported beers on tap, including several local or regional craft micro-brews and a wide selection of bottled beers, wines, and liquor. This award-winning food and memorable experience drives guest visits and loyalty.
TENANT TRADE NAME Buffalo Wild WingsOWNERSHIP Public
TENANTBlazin Wings, Incorporated (Corporate Buffalo Wild Wings)
LEASE GUARANTOR Blazin Wings, Incoporated
NUMBER OF LOCATIONS 1,175
HEADQUARTERED Minneapolis, MN
WEB SITE http://www.buffalowildwings.com/
SALES VOLUME $1.81 Billion (2015)
NET WORTH $655 Million (2015)
STOCK SYMBOL BWLD
BOARD NASDAQ
RANK #19 in Fortune 500 (June 2016)
RANK #107 in Fortune 500 (June 2016)
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID X0332272 5
2475 Cobbs Ford Road - PRATTVILLE, ALABAMA 36066
Tenant Overview - Kay Jewelers
TENANT TRADE NAME Kay Jewelers OWNERSHIP Private
TENANT Sterling, Incorporated
LEASE GUARANTOR Sterling, Incorporated
NUMBER OF LOCATIONS 1,500+
HEADQUARTERED Akron, OH
WEB SITE www.SterlingJewelers.com
$1.81 Billion (2015)
SALES VOLUME $6.55 Billion (2015)
NET WORTH $3.06 Billion (2015)
STOCK SYMBOL SIG
BOARD NYSE
Actual Property
Since 1916, Kay Jewelers has grown from one store to more than 900 from coast to coast. As the #1 spe-cialty jewelry brand in the United States, Kay knows that offering fine jewelry at a great price is only part of the story. The company is fully
committed to providing a superior shopping experience - both in our stores and online. The staff is empowered with the knowledge to assist each customer.
Kay Jewelers is a division of Sterling Jewelers Inc., headquartered in Akron, Ohio. Together with Signet Jewelers, the parent company, they are the largest specialty retail jeweler in the world.
Signet Jewelers Limited is listed on the NYSE under the symbol SIG. In 2015 Signet Jewelers had total sales of $6.55 billion and a net worth of $3.06 billion Kay Jewelers has a volume kick out at the end of Year Five if sales do no exceed $1,200,000 in Year Five. The national average for unit level sales is $2,200,000. There is a $37,500 termination fee.
TENANT PROFILE
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID X0332272 6
2475 Cobbs Ford Road - PRATTVILLE, ALABAMA 36066
Aer ia l Overv iew
NORTH
28,000 VPD
56,400 VP
D
10,300 VPD
Cobbs Ford Rd
Cobbs Ford Rd
Old F
arm L
n SInterstate 65
U.S. 82
65
65
82PROPERTY ADDRESS
2475 Cobbs Ford RoadPrattville, Alabama
®
Capitol HillGolf Course
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID X0332272 7
2475 Cobbs Ford Road - PRATTVILLE, ALABAMA 36066
5 M
ILE
RADI
US
3 M
ILE
RADIUS
1 MILE
SITE
231
231
231
82
8282
31
31
31
65
65
85 85
108
152
143
143
152
14
14
14
14
1414
Booth
Prattville
Millbrook
Coosada
Elmore
Blue ridge
Boylston
Montgomery
Area Overview & Demographics
1-Mile 3-Mile 5-Mile
P o p u l a t i o n
2000 Population 1,031 15,635 36,189
2010 Population 1,727 22,508 46,464
2016 Population 1,833 24,081 48,902
2021 Population 1,881 24,505 49,641
1-Mile 3-Mile 5-Mile
H o u s e h o l d s
2000 Households 1,497 14,729 42,191
2010 Households 1,860 21,649 56,087
2016 Households 1,958 23,035 59,877
2021 Households 2,086 24,591 63,972
1-Mile 3-Mile 5-Mile
H o u s e h o l d ( H H ) I n c o m e s
2016 Average HH Income $72,134 $85,282 $87,021
2016 Median HH Income $55,739 $67,606 $69,014
2016 Per Capita Income $26,184 $30,330 $31,916
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID X0332272 8
2475 Cobbs Ford Road - PRATTVILLE, ALABAMA 36066
Prattville is in Autauga county, which is about 11 miles northwest of Montgomery and 149 miles Southwest of Atlanta. The city is part of the Mont-gomery metropolitan statistical area (MSA). About 24,303 people live in Prattville, which is also known as “Fountain City,” named for its abundance of arte-sian wells that once flowed through the town. Known as the “birthplace of industry” in Alabama, Prattville’s rich history spans the life and accom-plishments of its founder, the great industrialist, Dan-iel Pratt. Prattville features the Daniel Pratt Historic District, listed in the National Register of Historic Places, where some of the sites date back to the Civil War era.
The Native Americans initially inhabited Prattville. It was in the 1830s that Daniel Pratt of Temple, New Hampshire, chanced upon the gleaming waters of Autauga Creek. He purchased approximately 1,000 acres of land around the creek from Joseph May. Pratt built manufacturing facilities along the banks of the creek so that water could be used as energy for the machineries in the cotton gins. Prattville remains one of the first planned communities of Alabama with separate areas for residences, businesses, schools, and churches.Prattville boasts a wide variety of natural and recre-ational attractions, including golfing, canoeing, hiking, fishing, and other means of entertainment. Prattville’s
cultural and retail attractions, numerous antique and specialty stores, and excellent dining establishments are sure to please almost any taste.The city of Prattville is near several museums in-cluding the Peoples Historical Museum, the Buena Vista-Reservations, and the Autauga County Heri-tage Center. While in the city, one can also visit the local public libraries and churches. There are many parks that offer a range of recreational facilities. The Prattville East Shopping Center, Prattville Plaza Shopping Center, and Skyline Shopping Center are also popular tourist haunts.
Market Overview - Prattvi l le, AL
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID X0332272 9