Corporate Guaranteed STNL Verizon Wireless | Ideal Location in Prime Retail Corridor | Established...

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OFFERING MEMORANDUM CAPITAL MARKETS | Net Lease Investment SANDS INVESTMENT GROUP SIG 1844 Jonesboro Rd. | McDonough, GA

description

INVESTMENT HIGHLIGHTS • 100% leased single-tenant Corp. Guaranteed NNN Lease: Landlord responsible for roof & structure • All extension options remaining with 10% rent increases • Ideal retail location: Outparcel to a Super Target and Home Depot in the Henry Town Center • Established location in steady operation since 2005 • Situated along a bustling retail corridor: Neighboring tenants include PetSmart, Marshall's, Ross, Home Depot and Bed, Bath & Beyond • Located along Jonesboro Road, next to I-75 across from Sam's Club • Surrounding neighborhood boasts favorable demographics with over 77,000 residents within a 5-mile radius and an average household income of $74,000

Transcript of Corporate Guaranteed STNL Verizon Wireless | Ideal Location in Prime Retail Corridor | Established...

Page 1: Corporate Guaranteed STNL Verizon Wireless | Ideal Location in Prime Retail Corridor | Established Location Outparcel to Super Target

OFFERING MEMORANDUM

CAPITAL MARKETS | Net Lease Investment SANDS INVESTMENT GROUP SIG

1844 Jonesboro Rd. | McDonough, GA

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Sands Investment Group

Exclusively Marketed By:

Neal Hamou Lic #01938429

+1 310.774.3749 | DIRECT

[email protected]

Kaveh Ebrahimi Lic #01896322

+1 310.774.3770 | DIRECT

[email protected]

SANDS INVESTMENT GROUP

2701 Ocean Park Blvd., Ste160

Santa Monica, CA 90405

+1 310.774.3749

© 2014 Sands Investment Group (SIG). The information contained in this ‘Offering Memorandum,’ has been obtained from sources believed to be reliable. Sands Investment Group does not doubt its accuracy, however, Sands

Investment Group makes no guarantee, representation or warranty about the accuracy contained herein. It is the responsibility of each individual to conduct thorough due diligence on any and all information that is passed on

about the property to determine it’s accuracy and completeness. Any and all projections, market assumptions and cash flow analysis are used to help determine a potential overview on the property, however there is no

guarantee or assurance these projections, market assumptions and cash flow analysis are subject to change with property and market conditions. Sands Investment Group encourages all potential interested buyers to seek

advice from your tax, financial and legal advisors before making any real estate purchase and transaction.

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Table Of Contents

INVESTMENT SUMMARY

AREA OVERVIEW PROPERTY OVERVIEW TENANT SUMMARY

INVESTMENT HIGHLIGHTS CITY OF MCDONOUGH DEMOGRAPHICS

TENANT PROFILE

LOCATIONS MAPS RENT ROLL

RETAIL MAPS

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Investment Summary

Offering Price $2,640,000

Capitalization Rate 7.75%

NOI $204,540

Lease Type NNN (landlord resp. for roof & Structure)

Lease Commencement April 2005

Total Land Area 61,289 SF

Total Building Area 4,000 SF

Ownership Fee Simple (Land & Building)

Remaining Term 2 Years

Options Two – 5 Year

Rent Increases 10% Every 5 Years

Lease Guarantee Verizon Wireless LLC

Investment Highlights

ESTABLISHED VERIZON WIRELESS IN THE HENRY TOWN CENTER

• 100% leased single-tenant NNN fee simple (land & building) providing a new investor

with a very secure asset

• Outparcel to a Super Target in the Henry Town Center

• Verizon has been operating at this location since 2005 providing new investor with

confidence given the established location

• Lease calls for Two – 5 Year extension options following the initial lease term with 10%

increase at each option period

• Verizon Wireless is a national credit tenant, publically traded on the NYSE, NASDAQ:

VZ. Verizon Wireless posted a 2013 Q3 net income exceeding $5.5 Billion and was

recently upgraded to BBB+ credit rating by Standard and Poor

LOW MANAGEMENT HASSLE

• Single tenant, NNN lease; landlord responsible for roof and structure

• Tenant pays taxes, insurance, and CAM charges making this an ideal property

for out of state investors

• Building was constructed and developed in 2005 making this one of the newer

Verizon Wireless buildings with no near future need to re-facade

HIGH IDENTITY LOCATION

• Surrounding synergistic tenant mix creates a point of destination to this

particular trade area and satisfies both daytime and evening consumer

demands. Surrounding tenants include: Super Target, PetSmart, Marshalls, Ross,

Bed Bath & Beyond, Michael’s, Home Depot, Staples, Belk and Longhorn

Steakhouse to name a few

• Strategically located along Jonesboro Rd. on the southern pad out-parcel to

a Super Target and many other major retailors

• Located directly west of the I-75 Interstate across from a Sam’s Club

• Superior frontage road visibility and highway signage directly along Interstate

75 with excellent points of access

• Location is supported by good demographics with over 77,000 people in a 5-

mile radius and an average household income of over $74,000

• Trade area is located 30 minutes southeast of Atlanta draws significant traffic

from the I-75 Interstate

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AREA OVERVIEW

CITY OF McDonough

McDonough is a city in Henry County, Georgia, United States. It is part of

the Atlanta metropolitan area and its population was 22,084 at the 2010

census. Inclusion of the unincorporated neighborhoods surrounding

McDonough, which are not part of a town/city, raises the population to

approximately 30,000 from an estimate in 2008. The city is the county seat

of Henry County. It is the home of AM radio station Classic Country 1410

WKKP and SCB-TV cable Channel 15 television station.

Surrounding unincorporated neighborhoods in the area that make up the

McDonough Metropolitan Statistical Area are Blacksville, Flippen,

Kelleytown and Ola. All of these communities are located near

McDonough, and addresses in those communities have McDonough

postal addresses.

Named for naval officer Commodore Thomas McDonough and founded

in 1823 around a traditional town square design. The buildings surrounding the square are intact although there are some vacancies. The county

courthouse and historic jail building are on the north side near the

Welcome Center in a historically maintained Standard Oil service station

1920 prototype. The station also houses the Main Street Program Office

and Hospitality and Tourism Office. In the center of the square is a

monument to Henry County's Confederate dead. One block east of the

square, the town's original cotton warehouse has been replaced with the

Henry County Judicial Center. In the same area the Henry County

Courthouse Annex has an original oil on canvas "Cotton Gin” by Jean

Charlot. He painted this oil in 1942 for the town post office. His works can

be found all over the world in everything from children's books to large

murals.

Historically, the town was a relay station on the New York to New Orleans

stagecoach line and was connected by other stage lines with Fayetteville

and Decatur, and with Macon by way of Jackson through PA the 19th

century.

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Demographics

1-Mile 3-Mile 5-Mile

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2013 Estimated Population 2018 Projected Population 2010 Census Population 2000 Census Population Annual Growth Rate 2010-2013 Annual Growth Rate 2013-2018 2013 Estimated Medium Age

2013 Estimated Households 2018 Projected Households 2010 Census Households 2000 Census Households Growth 2010-2013 Growth 2013-2018 2013 Estimated Medium Age 2013 Est. Average Household Size

2013 Estimated Households • Income $15,000 - $24,999 • Income $25,000 - $34,999 • Income $35,000 - $49,000 • Income $50,000 - $74,999 • Income $75,000 - $99,999 • Income $100,000 - $149,999 • Income $150,000 - $199,999 • Income $200,000+ 2013 Est. Average Household Income 2018 Prj. Average Household Income 2013 Medium Household Income 2013 Per Capita Income 2018 Prj. Per Capita Income

2,159 2,566 1,473 716 12.48% 3.52% 36.3

26,127 28,140 24,762 16,347 1.67% 1.50% 35.5

77,724 82,667 75,150 45,336 1.04% 1.24% 35.2

670 787 468 254 11.67% 3.26% 36.3 3.22

8,742 9,381 8,314 5,424 1.56% 1.42% 35.5 2.99

27,594 29,326 26,678 15,878 1.04% 1.23% 35.2 2.79

670 34 (5.1%) 31 (4.6%) 69 (10.3%) 130 (19.4%) 122 (18.2%) 175 (26.1%) 47 (7%) 24 (3.6%) $90,976 $104,603 $80,121 $29,160 $33,291

8,742 636 (7.3%) 621 (7.1%) 1,227 (14%) 1,849 (21.2%) 1,399 (16%) 1,593 (18.2%) 372 (4.3%) 359 (4.1%) $80,126 $93,081 $63,817 $27,435 $31,748

27,594 2,336 (8.5%) 2,677 (9.7%) 3,551 (12.9%) 5,998 (21.7%) 4,053 (14.7%) 4,367 (15.8%) 1,251 (4.5%) 826 (3.0%) $74,065 $85,574 $58,687 $26,427 $30,478

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PROPERTY DESCRIPTION

ADDRESS

1844 Jonesboro Rd. McDonough, GA 30253

LOCATION

Located on the west side of Interstate 75, along the north side of Jonesboro Rd.

outparcel to the large Henry Town Center in the city of McDonough, Georgia.

PARCEL

Tax assessor’s parcel number: 054-01061000

LAND AREA

The subject property land area is approximately 61,289 square feet (1.4 Acres)

BUILDING AREA

The subject property building area is approximately 4,000 square feet.

VISIBILITY AND FRONTAGE

Excellent visibility due to its location at the southern outparcel to a Super Target within

the Henry Town Center with direct frontage road visibility on Jonesboro Rd., providing

superior accessibility for both east and west-bound traffic.

ACCESS

Access to the Verizon is easily achieved via two entrances into the town center from

Jonesboro Rd. just moments off Interstate 75.

YEAR BUILT

Built in 2005 the building contains one of the most recent prototype models.

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TENANT PROFILE

Verizon Wireless, formerly known as Cellco Partnership, branded and referred to as Verizon, is a wholly owned subsidiary of Verizon Communications Inc. Verizon Wireless provides

wireless services to 103.3 million subscribers as of Q1 2014.

Verizon Wireless is an innovative wireless communications company that connects people and businesses with the most advanced wireless technology and service available. Our

company launched the nation’s first 3G wireless broadband network. We were also the first tier-one wireless provider in the nation to build and operate a 4G LTE network. With 4G LTE,

our customers can access the Internet and stream media faster than ever—and experience their mobile world in real-time.

As the nation’s largest wireless company, we serve 103.3 million retail connections and operate more than 1,700 retail locations in the United States. Globally, we offer voice and data

services in more than 200 destinations. Verizon Wireless is wholly owned by Verizon Communications Inc. and is headquartered in Basking Ridge, N.J.

About Verizon Communications

Verizon Communications Inc. (NYSE, NASDAQ:VZ) is a global leader in delivering broadband and other wireless and wireline communications services to consumer, business, government

and wholesale customers.

COMPANY PROFILE

Company: Verizon Wireless

Company Headquarters: Basking Ridge, NJ

Founded: 2000

Publically Traded: NYSE: VZ

Locations (2013): 2,330+ throughout

Subscribers: 103.3 Million

Website: www.verizonwireless.com

Financial Highlights

2013 Revenue: $81 billion

Market Capitalization: $199.44 Billion

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RENT ROLL

Lease Term Rental Rates

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Tenant Square

Feet

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Property Begin End Begin Monthly PSF Annually PSF Recovery Type

Verizon 4,000 100.00% Apr-2005 Apr-2016 Current $17,045.00 $4.26 $204,540 $51.35 NNN

Apr-2016 $18,749.50 $4.68 $224,994 $56.26

Apr-2021 $20,624.45 $5.15 $247,493 $61.89 Tenant has two(2) – five (5) year options:

TOTALS / AVERAGES 4,000

OCCUPIED SF 4,000 100.00%

VACANT SF 0 0.00%

TOTAL SF 4,000 100.00%

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The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the

party receiving it from Sands Investment Group and should not be made available to any other person or entity without the written consent of Sands Investment Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, Sands Investment Group has not verified, and will not verify, any of the information contained herein, nor has Sands Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose its contents in any manner detrimental to the interest of the Owner. You also agree that by accepting this Memorandum you agree to release Sands Investment Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.

The Owner / Seller of the property reserved the right, at its sole discretion, to reject any or all offers or expressions of interest, in any way or form they are submitted to purchase the property from potential buyers. The Owner / Seller shall have no obligations whatsoever nor any legal commitment or obligation to any potential buyer(s) and / or entity reviewing this offering memorandum for potential purchase unless and until written agreement(s) for the purchase of the property have been fully executed and approved by Owner / Seller .

This Offering Memorandum is the property of Sands Investment Group. All Property Photographs and Property Aerial Photographs are not to be used without the written authorization from Sands Investment Group. By receipt of this Offering Memorandum, you agree that you will not use this Offering Memorandum nor any of the contents contained herein without first the written authorization from both Sands Investment Group and the Owner in any manner detrimental to the interest of the Owner or Sands Investment Group. All information contained herein is to remain strictly confidential, and should

upon review of this Offering Memorandum should you choose to not have further interest in purchasing the property, kindly return this offering memorandum to Sands investment Group along with any and all other additional material about the property that may have been sent.

© 2014 Sands Investment Group (SIG). The information contained in this ‘Offering Memorandum,’ has been obtained from sources believed to be reliable. Sands Investment Group does not doubt its accuracy, however, Sands Investment Group makes no guarantee, representation or warranty about the accuracy contained herein. It is the responsibility of each individual to conduct thorough due diligence on any and all information that is passed on about the property to determine it’s accuracy and completeness. Any and all projections, market assumptions and cash flow analysis are used to help determine a potential overview on the property, however there is no guarantee or assurance these projections, market assumptions and cash flow analysis are subject to change with property and market conditions. Sands Investment Group encourages all potential interested buyers to seek advice from your tax, financial and legal advisors before making any real estate purchase and transaction.

SANDS INVESTMENT GROUP SIG

Page 14: Corporate Guaranteed STNL Verizon Wireless | Ideal Location in Prime Retail Corridor | Established Location Outparcel to Super Target

SANDS INVESTMENT GROUP

2701 Ocean Park Blvd., Ste160

Santa Monica, CA 90405

Sands-Group.com

Neal Hamou Lic #01938429

+1 310 .774. 3749 | DIRECT

[email protected]

Kaveh Ebrahimi Lic #01896322

+1 310. 774. 3770 | DIRECT

[email protected]

Exclusively Marketed by