Post on 18-Jul-2020
5946 E. State St, Rockford, IL 61108
Strip Center investment in rockford, il
mattress firm & the vitamin shoppe
Chris Peters | cpeters@capitalpacific.com [415] 274-2703 CA DRE#: 01339983
Zeb Ripple | zripple@capitalpacific.com [415] 274-2702CA DRE#: 01242540
Chris Kostanecki | ck@capitalpacific.com [415] 274-2701 CA DRE#: 01002010
John Andreini | jandreini@capitalpacific.com (415) 274-2715CA DRE#: 01440360
TWO TENANT STRIP CENTER LEASED TO NATIONAL RETAILERS IN DOMINANT RETAIL TRADE AREA
Core Real Estate Fundamentals - located on a hard corner of a 4-way signalized intersection with access points from both arterials.
PURCHASE PRICE . . . . . . . . . . . . . . . . $2,860,000
CAP RATE . . . . . . . . . . . . . . . . . . . . . . . . . . 7.50%
TOTAL RENTABLE AREA . . . . . . . . . . . . . 9,000 SF
LOT SIZE . . . . . . . . . . . . . . . . . . . . . . . . . . 1.13 Acres
YEAR BUILT . . . . . . . . . . . . . . . . . . . . . . . . 2013
INVESTMENT HIGHLIGHTS:> Mattress Firm rents well below market in 2/3 of the premises
> Regional trade area draws include Target, Home Depot, Lowe’s, Kohl’s, Marshall’s, Walgreens, Wal-Mart Supercenter, etc
> High quality new construction
> Approximately 57,000 traffic counts per day
LEASE:> 10-year primary term
> 10% rental increases every 5 years
> Renewal options with 10% rental increases
> Corporate tenants
Investment Highlights
COPYRIGHT © 2013. ALL USE, DISCLOSURE AND/OR REPRODUCTION NOT SPECIFICALLY AUTHORIZED IS PROHIBITED. ALL RIGHTS RESERVED. Capital Pacific Real Estate Brokerage Company (“Agent”) has presented this confidential Investment Memorandum to assist the recipient in evaluating the “Property” and it is intended for your use only. This confidential material contains brief, selected information pertaining to the Property and shall not be considered all-inclusive or unchanged since the date of preparation. No warranty as to the accuracy or completeness is expressed or implied. The information has been received from sources believed to be reliable but is not guaranteed. Agent disclaims all liabilities in connection with any inaccuracies or incompleteness. The Buyer should independently verify each item of information and have the same reviewed by its tax advisor and/or legal counsel. The Buyer agrees that (a) the materials are of a highly confidential nature and will be held in the strictest confidence or shall be returned to Agent upon request; (b) the Buyer shall not contact any property manager, employee or tenant of the Property regarding the enclosed materials or the Property, without prior approval of Agent; and (c) the Buyer understands and agrees that Agent represents the seller and not the Buyer. Neither the seller nor Agent shall have any obligation to pay any commission, finder’s fee, or other compensation to any broker or other person dealing with the Buyer. The Buyer may provide information to persons retained for the purpose of evaluating the Property after first obtaining a signed confidentiality agreement from such persons to keep such information confidential. The Buyer shall defend, indemnify and hold harmless the seller, Agent and its affiliates from and against any claims, demands, damages, liabilities, costs or expenses, including reasonable attorneys’ fees, relating to any claim for a commission, finder’s fee or other compensation by any broker or other person dealing with the Buyer. The Property is being sold on an “as-is, where-is” and “with all faults” basis. - 2013
Surrounding Retail
Intersection Traffic Flow
90
90
39
39
51
51
20
20
20
20
E State Avenue
Newburg Road
S Per
ryvi
lle
Road
N Pe
rryv
ille R
oad
S Mul
ford
Roa
dN
Mul
ford
Roa
d
N Al
pine
Roa
dS A
lpin
e Roa
d
Harrison Avenue
Charles Street
N
Brookview Elementary School
Rolling Green Elementary School
Rockford Christian Schools
Maud E. Johnson Elementary School
Marsh Elementary School
Eisenhower Middle School
FOREST PLAZA
ROCKFORD CROSSING
CHERRYVALE MALL
EARL F. ELLIOT GOLF COURSE
MATTRESS FIRM & VITAMIN SHOPPE | 3
37,500 DAILY
20,1
00 D
AIL
Y
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.
Income & Expense Surrounding Retail
PRICE $2,860,000
Price Per Square Foot: $317.78
Capitalization Rate: 7.50%
Total Rentable Area (SF): 9,000
Lot Size (Acres): 1.13
Year Built: 2013
STABILIZED INCOME Per Square Foot
Scheduled Rent $23.83 $214,500
Effective Gross Income $23.83 $214,500
LESS Per Square Foot
Taxes NNN $0.00
Insurance NNN $0.00
Total Operating Expenses $0.00
EQUALS NET OPERATING INCOME $214,500
MATTRESS FIRM & VITAMIN SHOPPE | 4
TENANT INFO LEASE TERMS RENT SUMMARY
Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent Monthly Rent/FT
Yearly Rent/FT
Mattress Firm 6,000 1 5 $112,500 $9,375 $112,500 $1.56 $18.75
6 10 $123,750 $10,313 $123,750 $1.72 $20.63
11 12 $136,125 $11,344 $136,125 $1.89 $22.69
Option 1 13 17 $149,738 $12,478 $149,738 $2.08 $24.96
Option 2 18 22 $164,711 $13,726 $164,711 $2.29 $27.45
Option 3 23 27 $181,182 $15,099 $181,182 $2.52 $30.20
The Vitamin Shoppe 3,000 1 5 $102,000 $8,500 $102,000 $2.83 $34.00
6 10 $112,200 $9,350 $112,200 $3.12 $37.40
Option 1 11 15 $123,420 $10,285 $123,420 $3.43 $41.14
Option 2 16 20 $135,762 $11,314 $135,762 $3.77 $45.25
Totals: 9,000 $214,500 $17,875 $214,500 $1.99 $23.83
*The 10% rental increases in the Mattress Firm options occur at years 16, 21, and 26
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.
Rent Roll
MATTRESS FIRM & VITAMIN SHOPPE | 5
The Vitamin Shoppe is a specialty retailer and direct marketer of nutritional products ranging from vitamins and minerals to nutritional supplements, herbs, sports nutrition formulas, homeopathic remedies, and health & beauty aids. Their first store opened in 1977, and has since evolved into a chain of more than 600 stores in 43 states, the District of Columbia, Puerto Rico, and Canada.
Offering more than 18,000 items from over 400 name brands, The Vitamin Shoppe has become the first choice for people seeking to fulfill their health and wellness needs. According to their most recent financial reports, in the fiscal second quarter of 2013, net sales increased 14.1% to $279.5 million, compared to $245 million in the same period of the prior year.
Mattress Firm is the leading mattress retailer in the United States and engages in the retail sale of mattresses and bedding-related products at more than 1,200 stores in 29 states. Mattress Firm offers conventional mattresses; specialty mattresses, including viscoleastic foam mattresses and YuMe sleep system, a revolutionary sleep system made of foam produced from coconut oil; and bedding related accessories comprising bed frames, mattress pads, and pillows.
The company’s stores carry a broad assortment of national mattress brands and its exclusive brands. In 2011, Mattress Firm ranked first among the top 100 U.S. furniture stores for both growth in store count and percentage increase in sales and second in total sales among specialty retailers according to Furniture Today. In the 2011 calendar year, the most recent year for which industry retail sales data has been published, the company’s net sales amounted to $11.4 billion.
Tenant Summaries
MATTRESS FIRM & VITAMIN SHOPPE | 6
ONE STORY BUILDING9,000 s.f.
6,000 s.f. 3,000 s.f.
ONE STORY BUILDING9,000 s.f.
6,000 s.f. 3,000 s.f.
EAST STATE STREET
NO
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N89°08'47"E 175.00'
S00°10'43"E
210.48'
S86°57'45"W175.00'
N00°04'19"W
S38°03'37"W0.99'
49.36'
62.40' (62.47' D
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34.21'
125.64'
176.27'
N 89°08'53" E 183.33
N00°03'27"W
310.00'
S 00°03'33" E
91.72'
217.90' DE
ED
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RC
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(S00°03'27"E
217.93'
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DescriptionRev. Date
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5 05.31.12 Sidewalk Revisions
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03.23.12 Client Review
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SP1.0SITE PLAN
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SCALE: 1"= 20'
10' 20' 40'
Property Information:Total Site Area: 1.13 AcresTotal Vehicle Parking: 38Total Bicycle Parking: 4
Site Plan
MATTRESS FIRM & VITAMIN SHOPPE | 7
MATTRESS FIRM & THE VITAMIN SHOPPE
HIGH VISIBILITY LOCATION AT MAJOR INTERSECTION OF E. STATE STREET AND MULFORD ROAD.
Regional Map
MATTRESS FIRM & VITAMIN SHOPPE | 8
Rockford, Illinois, is a mid-sized city located on both banks of the Rock River in far northern Illinois. It is approximately 90 miles northwest of Chicago, 90 miles east of the Mississippi River and 66 miles south of Madison, WI. Rockford is the county seat of Winnebago County, and part of an MSA with nearly 350,000 residents.
The city of Rockford is primarily a manufacturing focused economy that has recently experienced economic diversification and significant residential and commercial growth. This economic activity is at least partly a result of the residential growth occurring in the metropolitan Chicago market towards the Interstate 90 in the direction of Rockford. The combination of new employment generators relocating into neighboring Kane and McHenry Counties, the congestion of Chicago’s immediate northwest suburbs and the cost of living/quality of life advantages enjoyed by Rockford have made it a highly desirable alternative to both residents and business.
Manufacturing plays a vital role in the Rockford region but the area’s transportation network, affordability and skilled labor pool has allowed Rockford to diversify in a number of sectors. Rockford is recognized as a world leader in the production of machine tools and auto parts, and is increasingly becoming recognized as an important center for aerospace components. Rockford has become more diversified in its economy and businesses and it is now home to a broader set of enterprises, including distribution centers and call center/office operations.
Demographics Top Employers in Rockford
Rockford, IL
Population 1 Mile 3 Miles 5 Miles
2010 Population 7,397 61,409 153,7962012 Population 7,508 61,037 153,5022017 Population (Projection) 7,840 61,179 155,030
2012 Income
2012 Average Household Income $65,942 $70,928 $62,1462012 Median Household Income $50,131 $53,769 $45,503
Employer # of Employees (Approx.)
Rockford Public School District 4,800
Swedish American Hospital 2,600
Chrysler (Belvidere Assembly Plant) 2,600
Rockford Health System 2,500
Hamilton Sundstrand 2,200Copyright © 2013 [Capital Pacific Real Estate Brokerage Company]
MATTRESS FIRM & VITAMIN SHOPPE | 9