Post on 17-Oct-2020
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Market Positioning and Pricing Analysis
BELMONT SQUAREBELMONT SQUAREGROCERY ANCHORED SHOPPING CENTERGROCERY ANCHORED SHOPPING CENTER2020 Main St • Parsons, KS 673572020 Main St • Parsons, KS 67357
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
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Disclaimer THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express 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 service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.
TABLE OF CONTENTS
SECTION
THE MARCUS & MILLICHAP ADVANTAGE 01 MARKETING PLAN 02
INVESTMENT OVERVIEW 03 Property Overview
Regional Map
Local Map
Aerial Photo
FINANCIAL ANALYSIS 04 Tenant Summary
Lease Expiration Chart
Operating Statement
Notes
Pricing Detail
Proposal Price
STRATEGIC OWNERSHIP ANALYSIS 05 Ownership Options
MARKET COMPARABLES 06 Sales Comparables
MARKET OVERVIEW 07 Demographic Analysis
GROCERY ANCHORED SHOPPING CENTER
GROCERY ANCHORED SHOPPING CENTER
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INVESTMENT
OVERVIEW
Regional Map
GROCERY ANCHORED SHOPPING CENTER
5
REGIONAL MAP
GROCERY ANCHORED SHOPPING CENTER
6
AERIAL PHOTO
GROCERY ANCHORED SHOPPING CENTER
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BELMONT SQUARE - GROCERY ANCHORED
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EXECUTIVE SUMMARY
OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
Parsons State Hosp Trining Ctr 491
Special Purpose School 467
Labette Health 459
Parsons Clinic 279
Waste Corporation America Inc 276
Flesh Company 237
Wskt 230
Labette Community College 210
Day & Zimmermann Kansas LLC 200
Dwaynes Photo Service 200
Kansas Div 200
Grandview Products Co Inc 185
DEMOGRAPHICS
3-Miles 5-Miles 10-Miles
2016 Estimate Pop 10,900 11,489 13,862
2016 Census Pop 11,346 11,946 14,294
2016 Estimate HH 4,488 4,705 5,604
2016 Census HH 4,712 4,934 5,822
Median HH Income $39,596 $39,922 $41,793
Per Capita Income $20,523 $20,531 $20,917
Average HH Income $48,715 $49,039 $50,813
VITAL DATA
YEAR 1 PROFORMA
Price $1,778,789 CAP Rate 9.25% 15.63%
Loan Amount $1,245,152 Net Operating Income $164,538 $278,015
Loan Type Proposed New Net Cash Flow After Debt Service
14.92% / $81,486 35.70% / $194,963
Interest Rate / Amortization 4.50% / 25 Years Total Return 19.97% / $109,070 40.99% / $223,815
Gross Leasable Area (GLA) 116,000 SF
Price/SF $15.33
Current Occupancy 72.41%
Year Built / Renovated 1975 / 1987
Lot Size 9 acre(s)
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MAJOR TENANTSTENANT GLA LEASE EXPIRATION LEASE TYPE
King Cash Savers 60,000 1/31/2027 NNN
Family Dollar 8,000 12/31/2019 N
Westco 16,000 5/31/2021 NNN
PROPERTY OVERVIEW
GROCERY ANCHORED SHOPPING CENTER
PROPERTY OVERVIEW
Marcus & Millichap is pleased to present for your review, Belmont Square grocery anchored shopping center located in Parsons, Kansas.
The investment consist of a 72 percent occupied multi-tenant retail center. The shopping center has a total square footage of 114,000, with 32,000 square-feet currently vacant. Belmont Square is currently being leased to King Cash Savers grocery store (with additional sub-leases to Auburn Pharmacy & Subway), Family Dollar & Westco Furniture. King Cash Savers and Westco Home Furnishings are on a triple-net lease and Family Dollar is on a single-net lease. King Cash Savers, under its parent company Pyramid Foods of Springfield, Missouri, has over 60 regional grocery stores
This property has significant value-add opportunity with a 14.59 percent pro forma cap rate at list price. With leverage, the proforma cash-on-cash return is 32.3 percent.
Belmont Square has excellent visibility from Main St. and connects with the thriving 92 percent occupied Main Street. Downtown, just 500 feet away. Historic Downtown Parsons was recently recognized as a National Great American Main Street Award Winner for the revitalization work that has occurred. Main Street. connects Belmont Square with local and national restaurants, Ace Hardware, Walgreen’s Pharmacy, law firms, business, The Parsons Municipal Auditorium and Labette Community College (2,000 students).
The City of Parsons is located 23 miles from the Southern border of Kansas and Oklahoma along Hwy 400. Parsons is the most populous city in Labette County and the second most populous city in southeast Kansas. Major employers are Labette Health, Grandview Products Co, Ruskin Manufacturing, Old Dominion Freight Line, STEINLE, Inc, Ducommun Aerostructures Inc., The Flesh Company,Power Flame Incorporated and dozens more.
PROPERTY OVERVIEW
§ Belmont Square Has Been A Grocery Shopping Center Since 1975
§ Largest Regional Operator Signed 10 Year Lease In January, 2017
§ Significant Value-Add Opportunity (14.59 Percent Proforma Cap Rate at List Price)
§ Family Dollar With Center Since 1987 - On 5th Lease Renewal
§ Westco Home Furnishings With Center Since 1996 & Signed a Five-Year Extension Last Summer
§ Located On Thriving Main St - Steps Away From 92 Percent Occupied Historic Downtown Parsons
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BELMONT SQUARE - GROCERY ANCHORED
PROPERTY SUMMARY
OFFERING SUMMARY
PROPOSED FINANCING
First Trust Deed
Loan Amount $1,355,028
Loan Type Proposed New
Interest Rate 4.50%
Amortization 25 Years
Loan Term 10 Years
Loan to Value 70%
Debt Coverage Ratio 1.82
THE OFFERING
Property Belmont Square - Grocery Anchored
Price $1,935,754
Property Address 2020 Main St,Parsons,KS
Assessors Parcel Number 036-24-0-10-01-001.00-0
Zoning Central Business District - 1
SITE DESCRIPTION
Number of Stories 1
Year Built/Renovated 1975
Gross Leasable Area 116,000
Ownership Fee Simple
Lot Size 8.49
Parking 478 Surface Spaces
Parking Ratio 4.35/1,000 SF
Topography Level - 1
Access Points Three: North, South West
UTILITIES
Gas All Public - 1
Electric All Public - 1
Water All Public - 1
Sewer All Public - 1
Trash Private - Waste Management Service -(620) 421-1221
CONSTRUCTION
Foundation Concrete
Framing Wood & Metal
Exterior Wood & Metal
Parking Surface Asphalt
Roof Single -Metal on Steel Frame
MECHANICAL
HVAC Warmed and Cooled Air
Fire Protection Wet Sprinklers
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GROCERY ANCHORED SHOPPING CENTER
Property Photos
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City Information
GROCERY ANCHORED SHOPPING CENTER
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GROCERY ANCHORED SHOPPING CENTER
MAJOR EMPLOYERS
GROCERY ANCHORED SHOPPING CENTER
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FINANCIAL
ANALYSIS
FINANCIAL ANALYSIS
GROCERY ANCHORED SHOPPING CENTER
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TENANT SUMMARY
FINANCIAL ANALYSIS
GROCERY ANCHORED SHOPPING CENTER
OPERATING STATEMENT
16
FINANCIAL ANALYSIS
GROCERY ANCHORED SHOPPING CENTER
PRICING DETAIL
17
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TENANT PROFILES
GROCERY ANCHORED SHOPPING CENTER
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King Cash Savers
Pyramid Foods is a company dedicated to providing consumers the very best food
and service at the very best prices. We are dedicated to our employees and
customers through the programs we support in their communities. We take pride in
the brands we represent.
Website: https://www.pyramidfoods.net/
General Information
Tenant Name King Cash Savers
Website http://www.kingcashsaver.com/
Parent Company Pyramid Foods, Inc
Headquartered Springfield, Mo
Rentable Square Feet 60,000 SF
Percentage of RBA 51.70%
Lease Commencement 1/5/2017
Lease Expiration 1/31/2027
TENANT SUMMARY
#
Fiscal Year Ended N.A.
Family Dollar (Dollar Tree, Inc.)
CREDIT RATING: 3/2017: Ba1 (Moody’s)
PRICING AND VALUATION MATRIX
PROPERTY NAMEGROCERY ANCHORED SHOPPING CENTER NEW 10-YEAR LEASE
PRICING AND VALUATION MATRIX
PROPERTY NAME
GROCERY ANCHORED SHOPPING CENTER
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TENANT SUMMARY
General Information
Address 10401 Monroe Road , Matthews, North Carolina, 28105, United States
Phone 704-847-6961
Website www.familydollar.com
Store BaseStore Count Over 8,000
TTM Sales N.A.
Key PersonnelCFO & EVP Mary A. Winston
Chairman & CEO Howard R. Levine
Financial MarketsCurrent Price $79.42. as of 7/6/17
52 Week High/Low $80.00/$75.00
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TENANT PROFILE
GROCERY ANCHORED SHOPPING CENTER NEW
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General Information
Tenant Name Westco Home Furnishings
Website https://westcohomefurnishings.com/index.html
Parent Company Westco Home Furnishings
Headquartered Oklahoma
Rentable Square Feet 16,000 SF
Percentage of RBA 13.80%
Lease Commencement 2/9/1996
Lease Expiration 5/31/2021
No. of Locations 12
Westco was founded by Mr. Dail C West on May 15, 1944. The first small
store was located on Main Street in Miami, Oklahoma and was known as
Miami Sales Company. B.F. Goodrich tires and appliances were the main
items sold. Furniture was added in 1955 with the opening of Commerce
Sales Company in Commerce, Oklahoma and since that time has been a
very important part of the business. Westco has continued to grow over
the years and now has stores in Oklahoma, Kansas and Missouri.
Westco Home Furnishings
GROCERY ANCHORED SHOPPING CENTER
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MARKET
COMPARABLES
8
GROCERY ANCHORED SHOPPING CENTER
SALES COMPARABLES MAP
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BEMLONT SQUARE - (SUBJECT)
Coffeyville Plaza
Chickasha Square
Broadway Place
SALES COMPARABLES
1
2
3
11
22
33
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BelmontSquareGrocery
ShoppingCenter
CoffeyvillePlaza -Grocery
Anchored
ChickashaSquare
BroadwayPlace
0.0
0.9
1.8
2.7
3.6
4.5
5.4
6.3
7.2
8.1
9.0Avg. 8.77%
Average Cap Rate
PROPERTY NAME
GROCERY ANCHORED SHOPPING CENTER
SALES COMPARABLES
BelmontSquareGrocery
ShoppingCenter
CoffeyvillePlaza -Grocery
Anchored
ChickashaSquare
BroadwayPlace
$0.00
$5.70
$11.40
$17.10
$22.80
$28.50
$34.20
$39.90
$45.60
$51.30
$57.00
Avg. $29.06
Average Price Per Square Foot
SALES COMPARABLES
SALES COMPS AVG
PROPERTY NAME
MARKETING TEAM
GROCERY ANCHORED SHOPPING CENTER
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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SALES COMPARABLES
1
Tenants Lease Type
Close Of Escrow: 9/15/2016 Country Mart NNM
Sales Price: $2,000,000 Rent A Center NNN
Price/SF: $19.65 Checks Into Cash NNN
CAP Rate: 8.67% Hibbett Sports NNN
Year Built: 1974 Factory Connection NNN
ON MARKET 60 DAYS
COFFEYVILLE PLAZA1000 Hall Street, Coffeyville, KS, 67337
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NOTES80,468 square foot retail center leased by Check into Cash, Factory Connection, Goodies, Carter Health Care LLC andAaron's sold for $940,000 or $11.68 PSF on 6/29/2015.
Tenants Lease Type
Close Of Escrow: 6/29/2015 Aaron's NN
Sales Price: $940,000 Carter Health Care NN
Price/SF: $11.68 Checks Into Cash NN
CAP Rate: 9.00% Factory Connection NN
Year Built: 1987 Goodies NN
CHICKASHA SQUARE2223 Ponderosa Dr, Chickasha, OK, 73018
NOTES
58% occupied Grocery Anchored Retail Center. 101,800 Sf. Value-Add Through Leasing. 4 Offers at list Price. Sold at List Cap of 8.67%
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Annual Per SF
Income $319,519 $2.75
Expenses $154,981 $1.34
NOI $164,538 $1.42
Occupancy 72.41%
Tenants Lease Type
Asking Price: $1,778,789 King Cash Savers NNN
Price/SF: $15.33 Family Dollar N
CAP Rate: 9.25% Westco NNN
Year Built: 1975
BELMONT SQUARE GROCERY SHOPPING CENTER
2020 Main St, Parsons, KS, 67357
PROPERTY NAME
MARKETING TEAM
GROCERY ANCHORED SHOPPING CENTER
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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SALES COMPARABLES
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NOTESThe 87% occupied center is anchored by a 38,068 square foot Woods Supermarket (Woods). Woods is headquartered inBolivar, Missouri and has nine stores throughout Missouri and Kansas. Woods sales are $425 PSF and their current leaseterm extends through February of 2028. Woods offers its customers an out-lot convenience gas station and drive-thrupharmacy. Other national tenants include Dollar General and a Hardees ground lease.
Tenants Lease Type
Close Of Escrow: 6/1/2015 Woods Supermarket NNN
Sales Price: $3,500,000 Dollar General NNN
Price/SF: $55.84 Hardees NNN
CAP Rate: 8.64% Snip & Clip NNN
Year Built: 1969 Valiant Gun & Pawn NNN
BROADWAY PLACE701 East Broadway Boulevard, Sedalia, MO, 65301
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GROCERY ANCHORED SHOPPING CENTER
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MARKET
OVERVIEW
PROPERTY NAME
MARKETING TEAM
GROCERY ANCHORED SHOPPING CENTER
DEMOGRAPHICS
Source: © 2016 Experian
Created on July 2017
POPULATION 3 Miles 5 Miles 10 Miles§ 2021 Projection
Total Population 10,612 11,193 13,570
§ 2016 Estimate
Total Population 10,900 11,489 13,862
§ 2010 Census
Total Population 11,346 11,946 14,294
§ 2000 Census
Total Population 12,363 13,000 15,281
§ Current Daytime Population
2016 Estimate 12,909 13,534 14,823
HOUSEHOLDS 3 Miles 5 Miles 10 Miles§ 2021 Projection
Total Households 4,387 4,603 5,506
§ 2016 Estimate
Total Households 4,488 4,705 5,604
Average (Mean) Household Size 2.34 2.35 2.38
§ 2010 Census
Total Households 4,712 4,934 5,822
§ 2000 Census
Total Households 5,073 5,298 6,166
§ Occupied Units
2021 Projection 4,387 4,603 5,506
2016 Estimate 5,286 5,535 6,564
HOUSEHOLDS BY INCOME 3 Miles 5 Miles 10 Miles§ 2016 Estimate
$150,000 or More 1.50% 1.51% 1.53%
$100,000 - $149,000 6.40% 6.57% 7.56%
$75,000 - $99,999 8.55% 8.69% 10.10%
$50,000 - $74,999 20.22% 20.28% 20.07%
$35,000 - $49,999 17.86% 17.78% 17.82%
Under $35,000 45.18% 44.90% 42.65%
Average Household Income $48,715 $49,039 $50,813
Median Household Income $39,596 $39,922 $41,793
Per Capita Income $20,523 $20,531 $20,917
HOUSEHOLDS BY EXPENDITURE 3 Miles 5 Miles 10 MilesTotal Average Household Retail Expenditure $51,937 $52,175 $53,787
§ Consumer Expenditure Top 10 Categories
Housing $13,896 $13,951 $14,304
Transportation $9,236 $9,275 $9,543
Shelter $7,892 $7,917 $8,097
Food $5,851 $5,872 $6,020
Personal Insurance and Pensions $3,984 $4,021 $4,287
Health Care $3,923 $3,953 $4,092
Utilities $3,290 $3,304 $3,380
Entertainment $2,228 $2,242 $2,330
Cash Contributions $1,391 $1,403 $1,467
Household Furnishings and Equipment $1,327 $1,337 $1,396
POPULATION PROFILE 3 Miles 5 Miles 10 Miles§ Population By Age
2016 Estimate Total Population 10,900 11,489 13,862
Under 20 26.06% 25.93% 25.88%
20 to 34 Years 19.48% 19.22% 18.32%
35 to 39 Years 5.06% 5.05% 5.04%
40 to 49 Years 11.78% 11.82% 12.12%
50 to 64 Years 20.77% 20.94% 21.56%
Age 65+ 16.86% 17.04% 17.07%
Median Age 39.41 39.80 40.70
§ Population 25+ by Education Level
2016 Estimate Population Age 25+ 7,309 7,729 9,370
Elementary (0-8) 4.02% 3.94% 3.60%
Some High School (9-11) 7.39% 7.37% 7.09%
High School Graduate (12) 28.09% 28.14% 29.02%
Some College (13-15) 28.83% 28.74% 28.16%
Associate Degree Only 10.84% 10.95% 10.95%
Bachelors Degree Only 10.71% 10.74% 10.89%
Graduate Degree 7.52% 7.55% 8.12%
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IncomeIn 2016, the median household income for your selected geography is $41,793, compare this to the US average which is currently $54,505. The median household income for your area has changed by 33.06% since 2000. It is estimated that the median household income in your area will be $48,878 five years from now, which represents a change of 16.95% from the current year. The current year per capita income in your area is $20,917, compare this to the US average, which is $29,962. The current year average household income in your area is $50,813, compare this to the US average which is $78,425.
PopulationIn 2016, the population in your selected geography is 13,862. The population has changed by -9.29% since 2000. It is estimated that the population in your area will be 13,570.00 five years from now, which represents a change of -2.11% from the current year. The current population is 49.63% male and 50.37% female. The median age of the population in your area is 40.70, compare this to the US average which is 37.68. The population density in your area is 44.08 people per square mile.
HouseholdsThere are currently 5,604 households in your selected geography. The number of households has changed by -9.11% since 2000. It is estimated that the number of households in your area will be 5,506 five years from now, which represents a change of -1.75% from the current year. The average household size in your area is 2.38 persons.
EmploymentIn 2016, there are 7,908 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 50.72% of employees are employed in white-collar occupations in this geography, and 49.30% are employed in blue-collar occupations. In 2016, unemployment in this area is 6.76%. In 2000, the average time traveled to work was 15.00 minutes.
Race and EthnicityThe current year racial makeup of your selected area is as follows: 86.59% White, 6.28% Black, 0.04% Native American and 0.88% Asian/Pacific Islander. Compare these to US averages which are: 70.77% White, 12.80% Black, 0.19% Native American and 5.36% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 5.28% of the current year population in your selected area. Compare this to the US average of 17.65%.
PROPERTY NAME
MARKETING TEAM
GROCERY ANCHORED SHOPPING CENTER
HousingThe median housing value in your area was $62,592 in 2016, compare this to the US average of $187,181. In 2000, there were 4,388 owner occupied housing units in your area and there were 1,778 renter occupied housing units in your area. The median rent at the time was $282.
Source: © 2016 Experian
DEMOGRAPHICS
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GROCERY ANCHORED SHOPPING CENTER
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Daniel Greenamyre
Associate
Associate Member, National Retail GroupKansas City OfficeTel: (816) 410-1028
Fax: (816) 410-1020
daniel.greenamyre@marcusmillichap.com
License: KS SP00236311
Greg Bates
Supervising Broker
Kansas City OfficeTel: (816) 410-1025Fax: (816) 410-1020
Greg.Bates@marcusmillichap.com
License: KS BR00035677
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