Southcreek Collection West - Jesse Lee Malco Bl... · Jan 2013 Year 2 Jan 2014 Year 3 Jan 2015 Year...

SOUTHAVEN, MS

Southcreek

Collection West

OFFERING MEMORANDUM

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly

confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap

and should not be made available to any other person or entity without the written consent of

Marcus & Millichap. This Marketing Brochure 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. Marcus & Millichap has not made any 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 Marketing Brochure has been obtained from sources we believe to be reliable;

however, Marcus & Millichap has not verified, and will not verify, any of the information contained

herein, nor has Marcus & Millichap 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.

SOUTHAVEN, MS

Southcreek Collection West

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 RECENT SALES

Section 4 ON MARKET COMPARABLES

Section 5 RENT COMPARABLES

Section 6 MARKET OVERVIEW

Section 7 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS

Southcreek Collection WestSOUTHAVEN, MS


PRICING AND FINANCIAL ANALYSIS

Price $3,190,000

Down Payment 25% $797,500

Price per Square Foot (GLA) $165.64

Gross Leasable Area (GLA) 19,259

Year Built 2006

Lot Size 1.89 Acres

VITAL DATA

CAP Rate - Current 8.80%

Net Operating Income - Current $280,610

Net Cash Flow After Debt Service - Current $121,031

Total Return - Current 21.82% / $174,032

CAP Rate - Pro Forma 9.34%

Net Operating Income - Pro Forma $298,087

Net Cash Flow After Debt Service - Pro Forma $138,507

Total Return - Pro Forma 24.01% / $191,509

1

Comments

Prominent location near I-55 and Goodman Road intersection.Shadow anchored by the MALCO Theatre and blocks fromBaptist Hospital- DeSoto, this Class A Retail Asset is only 8.7miles from the Memphis International Airport and is in the heartof DeSoto County's regional shopping and trade area.

Major Tenants


Tenant Name

Baskin Robbins

Edible Arrangements

Once Upon A Child

Nagoya Japanese Cuisine


SOUTHAVEN, MS

Major Employers

CompanyLocal

Employees

Memphis Service Center 4,000

Walmart 720

Bmh-Desoto 600

Desoto Cnty Centl Maint Fcilty 400

Kroger 379

Target 307

Helen of Troy LP 300

Thomas & Betts Corporation 300

Graceland Nursing Center LLC 260

Desoto Civic Center 250

Stylecraft Home Collections 225

Gate Gourmet Inc 209

Demographics

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 mustverify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap RealEstate Investment Services of Texas, Inc. © 2014 Marcus & Millichap. All rights reserved.

1-Mile 3-Miles 5-Miles

2013 Total 4,281 47,135 107,409

2018 Total 4,421 51,036 115,028

2013 Total 1,728 17,414 38,645

2018 Total 1,816 19,056 41,901

Median HH Income $56,635 $51,795 $50,567

Per Capita Income $25,872 $22,730 $22,019

Average (Mean) HH $63,796 $61,411 $61,042

OFFERING SUMMARY

2



SOUTHAVEN, MS

CommentsSeller offers the property free and clear of debt.

Existing Financing

Loan Type Free and Clear


Proposed Financing

First Trust Deed

Loan Amount $2,392,500

Loan Type Proposed New

Interest Rate 4.5%

Amortization 25 Years

Loan to Value 75%

Debt Coverage Ratio 1.76

FINANCING

3



SOUTHAVEN, MS

Envy Nail Salon: 7.32% Baskin Robins: 7.32%

Once Upon A Child: 30.36%

South Jewelry: 7.32%

Edible Arrangements: 7.32%

PC Doctor: 7.32%

Bombay Salon & Spa: 9.29%

Gamma Healthcare: 10.59% Nagoya Japanese Restaurant: 13.17%


Current Per SF Pro Forma Per SF

Real Estate Taxes $25,579 $1.33 $25,579 $1.33

Insurance $3,727 $0.19 $3,727 $0.19

Christmas Decor $2,140 $0.11 $2,140 $0.11

Lawn and Lanscape $13,431 $0.70 $13,431 $0.70

Utilities $2,557 $0.13 $2,557 $0.13

Sanitation $2,791 $0.14 $2,791 $0.14

CAM

Water $8,597 $0.45 $8,597 $0.45

Repairs & Maintenance $248 $0.01 $248 $0.01

Fire Alarm System $1,075 $0.06 $1,075 $0.06

TOTAL CAM $9,920 $0.52 $9,920 $0.52

Management Fee $14,000 $0.73 $14,000 $0.73

TOTAL EXPENSES $74,145 $3.85 $74,145 $3.85

Tenants (% OF GLA)

EXPENSES

4



SOUTHAVEN, MS


Current Per SF Pro Forma Per SF

Base Rent

Occupied Space $297,807 $15.46 $313,000 $16.25

GROSS POTENTIAL RENT $297,807 $15.46 $313,000 $16.25

Expense Reimbursements

Real Estate Taxes $25,579 $1.33 $26,132 $1.36

Insurance $3,727 $0.19 $3,789 $0.20

CAM $26,448 $1.37 $26,892 $1.40

Management Fee $14,000 $0.73 $14,000 $0.73

GROSS POTENTIAL INCOME $367,561 $19.09 $383,813 $19.93

Vacancy/Collection Allowance (% of GPR) 4.3% / $12,806 $0.66 3.7% / $11,581 $0.60

EFFECTIVE GROSS INCOME $354,755 $18.42 $372,232 $19.33

Total Expenses $74,145 $3.85 $74,145 $3.85

NET OPERATING INCOME $280,610 $14.57 $298,087 $15.48

Gross Leasable Area (GLA) 19,259 SF

INCOME & EXPENSES

5



SOUTHAVEN, MS


Comments

Gamma Healthcare has given notice and will be moving into a smaller office space at the end of their current lease. Landlord is currently talking withmultible prospects to backfill the space.

TENANT SUMMARY

Suite Tenant GLA % ofGLA

LeaseCommence

LeaseExpire

AnnualRent

Rent/SF

ChangesOn

ChangesTo

ExpenseReimbs.

Other:Options/% Rent

LeaseType

1 Nagoya Japanese 2,536 13.17% 7/30/2007 11/30/2017 $55,792.00 $22.00 $9,231.00 $0 NNN

2 Gamma Healthcare 2,040 10.59% 8/20/2009 10/31/2014 $34,680.00 $17.00 11/1/2014 $36,720.00 $7,425.60 $0 NNN

3 PC Doctor 1,409 7.32% 4/14/2006 10/31/2019 $25,362.00 $18.00 n/a n/a $5,128.80 $0 NNN

4 Edible Arrangements 1,409 7.32% 4/4/2007 7/31/2017 $20,436.00 $14.50 n/a $23,472.00 $5,128.80 $0 NNN

6 Once Upon A Child 5,848 30.37% 1/10/2010 6/30/2015 $70,224.00 $12.01 7/1/2015 $78,651.00 $21,287.00 $0 NNN

9 South Jewelry 1,409 7.32% 10/1/2007 12/31/2014 $23,400.00 $16.61 n/a $26,910.00 $4,716.00 $0 NNN

10 Envy Nail Salon 1,409 7.32% 11/1/2013 12/31/2016 $18,996.00 $13.48 1/1/2017 n/a $5,157.00 $0 NNN

11 Bombay Salon & Spa 1,790 9.29% 10/14/2013 12/31/2018 $23,270.04 $13.00 n/a $22,109.00 $6,551.40 $0 NNN

12 Baskin Robins 1,409 7.32% 5/26/2004 3/31/2016 $29,400.00 $20.87 4/1/2016 $29,400.00 $5,128.80 $0 NNN

TOTAL VACANT

TOTAL OCCUPIED 19,259 100.00% $301,560.04 $217,262.00 $69,754.40

TOTAL 19,259 100.00% $301,560.04 $217,262.00 $69,754.40

JC-main

Highlight

6



SOUTHAVEN, MS


For The Year Beginning Year 1Jan 2013

Year 2Jan 2014

Year 3Jan 2015

Year 4Jan 2016

Year 5Jan 2017

Year 6Jan 2018

Year 7Jan 2019

Year 8Jan 2020

Year 9Jan 2021

Year 10Jan 2022

Tenant(s) Name GammaHealthcare

SouthJewelry

Once UponA Child

Envy NailSalonBaskinRobins

NagoyaJapanese

RestaurantEdible

Arrangements

BombaySalon & Spa

PC Doctor

Total Number of Tenants 2 1 2 2 1 1

Total Square Feet 3,449 5,848 2,818 3,945 1,790 1,409

Total Percentage 17.9% 30.4% 14.6% 20.5% 9.3% 7.3%

Cumulative Percentage 17.9% 48.3% 62.9% 83.4% 92.7% 100.0%

Percentage of SF Expiring Number of Tenants Expiring Cumulative % of SF Expiring

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

Tota

l P

roje

ct

Squa

re F

oota

ge

0

1

2

Num

ber

of Tenants

Jan 2013

0%

Jan 2014

18%

Jan 2015

30%

Jan 2016

15%

Jan 2017

20%

Jan 2018

9%

Jan 2019

7%

Jan 2020

0%

Jan 2021

0%

Jan 2022

0%

LEASE EXPIRATION SUMMARY

Any projections, opinions, assumptions or estimates used here within are for example purposes only and do not represent the current or future performance of the property.

7

Tenant Name: Nagoya Japanese Restaurant

Lease Commencement: 7/30/2007

Lease Expiration: 11/30/2017

Gross Leasable Area (GLA): 2,536

Original Term: 10

Pro Rata Share of Project: 13%

Headquartered: Southaven, MS

No. of Locations: 1

Web Site: www.nagoyajapanesecuisine.com



SOUTHAVEN, MS

Lease Summary

Lease Years Annual Rent Monthly Rent Monthly Rent/SF

10 $65,022.96 $5,419 $2.14

Base Rent


TENANT & LEASE SUMMARY

Nagoya Japanese Cuisine offers a fine Japanese restaurant experience in the town Southaven, MS. Nagoya’s Hibachi

menu and southern style sushi have been satisfying customers with refined tastes for years. High quality Japanese food

and Sushi are prepared with every attention to detail. Specializing in sushi and hibachi cuisine which is prepared daily

with only the freshest ingredients.

Nagoya Japanese Cuisine Services Include:

•Lunch specials •Take out •Sushi bar•Dinner menu •Dine in

Tenant Name: Gamma HealthCare




Original Term: 5


Headquartered: Poplar Bluff, MO

No. of Locations: 18

Web Site: www.gammahealthcare.com

Gamma HealthCare is a full service medical laboratory providing an outstanding level of service and quality to each oftheir clients in laboratory, digital radiology and medical waste removal. Established in 1981, the regional healthcarecompany has expanded to 7 states with 18 locations. Gamma Healthcare offers state of the art technology to nursinghomes, clinics, walk in patient centers and hospitals.

Lease Summary


5 $42,105.60 $3,509 $1.72

Base Rent

8



SOUTHAVEN, MS



Tenant Name: PC Doctor




Original Term: 5



No. of Locations: 1

Web Site: www.pcdoctormemphis.com

PC Doctor Inc. was founded in 1997 to help small businesses in Memphis, Cordova, Southaven get the most out oftheir business technology. Over the years they’ve helped many small businesses relieve their technology worries sothat they can concentrate on growing their businesses and realizing their goals. Supporting an array of clients rangingfrom corporate service firms, dental offices, physician offices, law firms, retail centers, and financial institutions.

Lease Summary


5 $30,490.80 $2,541 $1.80

Base Rent

9



SOUTHAVEN, MS



Tenant Name: Edible Arrangements




Original Term: 10


Headquartered: Wallingford, CT

No. of Locations: 1200+

Web Site:

Lease Summary


10 $25,564.80 $2,130 $1.51

Base Rent

10



SOUTHAVEN, MS



Edible Arrangements are the creators of and industry leader in fresh fruit bouquets. Offering items for every occasions with an array of fresh products, including handcrafted fruit arrangements and gourmet chocolate dipped fruit. The very first Edible Arrangements store opened its doors in East Haven, Connecticut in 1999. Since then, Edible Arrangements has grown into a fresh fruit phenomenon, with over 1100 stores in 14 countries around the world.

Specialties:

Chocolate Covered Strawberries, Fruit Bouquets, Fruit Arrangements, Fresh Fruit Bouquets, Chocolate Dipped Fruit, , Gourmet Gifts, Specialty Retail, Ecommerce, Business Gifts

JC-main

Highlight

Tenant Name: Once Upon A Child




Original Term: 5


Headquartered: Minneapolis, MN

No. of Locations: 850

Web Site: www.onceuponachild.com

Lease Summary


5 $91,510.68 $7,626 $1.30

Base Rent

11



SOUTHAVEN, MS



Once Upon a Child is the nation's largest children's resale franchise. Buying and selling new and gently used clothing, furniture, equipment, and toys. Once Upon A Child Proudly offers a fun and convenient way to pass on your children's items that are no longer needed, as well as offer a large selection of children's items children can grow into.

Each Once Upon A Child location is individually owned and operated. Franchised in 1993, Once Upon A Child stores have become a rapidly growing component of the Winmark Corporation family of brands. Winmark is proud to include over 850 franchise-owned and operated businesses throughout North America, and is a strong and financially stable franchisor.

JC-main

Highlight

Tenant Name: Southern Jewelry




Original Term: 7



No. of Locations: 1

Lease Summary


7 $28,116.00 $2,343 $1.66

Base Rent

12



SOUTHAVEN, MS



Southern Jewelry is a local jewelry store that has been in business for over 20 years. Southern Jewelry specializes in high quality jewelry and watch repair.

Tenant Name: Envy Nails




Original Term: 3



No. of Locations: 1

Envy Nails is a full service nail salon and spa offering manicures & pedicures.

Lease Summary


3 $20,400.00 $1,700 $1.21

Base Rent

13



SOUTHAVEN, MS



Tenant Name: Bombay Salon & Spa




Original Term: 5


Headquartered: Memphis, TN

No. of Locations: 3

Web Site: www.bombaysalonspa.com

Lease Summary


5 $29,821.44 $2,485 $1.39

Base Rent

14



SOUTHAVEN, MS



Bombay Salon & Spa, serving the Memphis, TN area since 2004, offers wide range of high quality and personalized services for all ages of women, men, and children. Bombay Salon & Spa features only highly-trained and skilled professionals, who are in this industry for more than 20 years. With three convenient locations to serve the Memphis community.

Tenant Name: Baskin Robbins




Original Term: 10


Headquartered: Canton, MA

No. of Locations: 7,300

Web Site: www.baskinrobbins.com

Named the top ice cream and frozen dessert franchise in the United States by Entrepreneur magazine’s 35th annualFranchise 500 ranking, Baskin-Robbins is the world’s largest chain of ice cream specialty shops. Baskin-Robbins createsand markets innovative, premium ice cream, specialty frozen desserts and beverages, providing quality and value toconsumers at nearly 7,300 retail shops in nearly 50 countries. Baskin-Robbins was founded in 1945 by two ice creamenthusiasts whose passion led to the creation of more than 1,000 ice cream flavors and a wide variety of delicious treats.Headquartered in Canton, Mass., Baskin-Robbins is part of the Dunkin' Brands Group, Inc. (Nasdaq: DNKN) family ofcompanies.

Lease Summary


12 $34,528.80 $2,877 $2.04

Base Rent

15



SOUTHAVEN, MS



JC-main

Highlight

16



SOUTHAVEN, MS


TENANT PROFILE

Nagoya Japanese Cuisine has served customers in Southaven, MS with

a delicious selection of sushi, Japanese Cuisine and culture for a unique

dining experience for years. Our authentic food and sushi bar is great for

sushi lovers and novices alike. Nagoya offers a wide selection of

delicious dishes and only the freshest fish.

Gamma HealthCare is a full service medical laboratory providing anoutstanding level of service and quality to each of their clients in laboratory, digital radiolgy and medical waste removal. Established in 1981, the regional healthcare company has expanded to 7 states with 18 locations. Gamma Healthcare offers state of the art technology to nursing homes, clinics, walk in patient centers and hospitals.

Number of Locations: 1

Headquarters: Southaven, MS

Website: www.nagoyajapanesecuisine.com


Headquarters: Poplar Bluff, MO

Website: www.gammahealthcare.com


Headquarters: Southaven, Ms

Website: http://www.pcdoctormemphis.com/about-

PC Doctor Inc. was founded in 1997 to help small businesses in Memphis, Cordova, Southaven get the most out of their business technology. Over the years they’ve helped many small businesses relieve their technology worries so that they can concentrate on growing their businesses and realizing their goals. Supporting an array of clients ranging from corporate service firms, dental offices, physician offices, law firms, retail centers, and financial institutions.

17

Edible Arrangements are the creators of and industry leader in fresh fruit bouquets. Offering items for every occasions with an array of fresh products, including handcrafted fruit arrangements and gourmet chocolate dipped fruit. The very first Edible Arrangements store opened its doors in East Haven, Connecticut in 1999. Since then, Edible Arrangements has grown into a fresh fruit phenomenon, with over 1100 stores in 14 countries around the world.


Once Upon a Child is the nation's largest children's resale franchise. Buying and selling new and gently used clothing, furniture, equipment, and toys. Once Upon A Child Proudly offers a fun and convenient way to pass on your children's items that are no longer needed, as well as offer a large selection of children's items children can grow into.

Each Once Upon A Child location is individually owned and operated. Franchised in 1993, Once Upon A Child stores have become a rapidlygrowing component of the Winmark Corporation family of brands. Winmark is proud to include over 850 franchise-owned and operated businesses throughout North America, and is a strong and financially stable franchisor.


SOUTHAVEN, MS

Number of Locations: 1200+

Headquarters: Wallingford, CT

Website: www.ediblearrangements.com



Headquarters: Minneapolis, MN

Website: www.onceuponachild.com


Headquarters: Southaven, Ms

TENANT PROFILE

Southern Jewelry is a local jewelry store that has been in business for over 20 years. Southern Jewelry specializes in high quality jewelry and watch repair.

Envy Nails is a full service nail salon and spa offering manicures & pedicures.

Bombay Salon & Spa, serving the Memphis, TN area since 2004, offers wide range of high quality and personalized services for all ages of women, men, and children. Bombay Salon & Spa features only highly-trained and skilled professionals, who are in this industry for more than 20 years. With three convenient locations to serve the Memphis community.

18


Headquarters: Southaven, MS



SOUTHAVEN, MS

Number of Locations: 3Headquarters: Memphis, TN

Website: www.bombaysalonspa.com


TENANT PROFILE

Named the top ice cream and frozen dessert franchise in the United States by Entrepreneur magazine’s 35th annual Franchise 500 ranking, Baskin-Robbins is the world’s largest chain of ice cream specialty shops. Baskin-Robbins creates and markets innovative, premium ice cream, specialty frozen desserts and beverages, providing quality and value to consumers at nearly 7,300 retail shops in nearly 50 countries. Baskin-Robbins was founded in 1945 by two ice cream enthusiasts whose passion led to the creation of more than 1,000 ice cream flavors and a wide variety of delicious treats. Headquartered in Canton, Mass., Baskin-Robbins is part of the Dunkin' Brands Group, Inc. (Nasdaq: DNKN) family of companies.

Number of Locations: 7,300

Headquarters: Canton, MA

Website: www.baskinrobbins.com

19

7075 Malco Boulevard

Southaven, MS 38671

Price $3,190,000

Down Payment 25% $797,500

Gross Leasable Area (GLA) 19,259

Price/SF $165.64

CAP Rate - Current 8.80%

CAP Rate - Pro Forma 9.34%

Lot Size 1.89 Acres

Year Built 2006

FIRST TRUST DEED

Loan Amount $2,392,500

Loan Type Proposed New

Interest Rate 4.5%

Amortization 25 Years

Loan to Value 75%


Annualized Operating Data


SOUTHAVEN, MS

Income Current Pro Forma

Base Rent

Occupied Space $297,807 $313,000

Gross Potential Rent $297,807 $313,000

Expense Reimbursements $69,754 $70,813

Gross Potential Income $367,561 $383,813

Vacancy/Collection Allowance 4.3% / $12,806 3.7% / $11,581

Effective Gross Income $354,755 $372,232

Total Expenses $74,145 $74,145

Net Operating Income $280,610 $298,087

Debt Service $159,580 $159,580

Debt Coverage Ratio 1.76 1.87

Net Cash Flow After Debt Service 15.18% / $121,031 17.37% / $138,507

Principal Reduction $53,001 $53,001

Total Return 21.82% / $174,032 24.01% / $191,509

Location

Financing


ExpensesReal Estate Taxes $25,579 $25,579

Insurance $3,727 $3,727

Christmas Decor $2,140 $2,140

Lawn and Lanscape $13,431 $13,431

Utilities $2,557 $2,557

Sanitation $2,791 $2,791

CAM

Water $8,597 $8,597

Repairs & Maintenance $248 $248

Fire Alarm System $1,075 $1,075

TOTAL CAM $9,920 $9,920

Management Fee (% of EGI) 3.9% / $14,000 3.8% / $14,000

TOTAL EXPENSES $74,145 $74,145

EXPENSES/SF $3.85 $3.85

Loan information is time sensitive and subject tochange. Contact your local Marcus & Millichap CapitalCorporation representative.

FINANCIAL OVERVIEW

JC-main

Highlight

JC-main

Highlight

JC-main

Highlight

JC-main

Highlight

JC-main

Highlight


PROPERTY DESCRIPTION

Southcreek Collection West is a 19,259 square-foot retail center located in Southaven, Mississippi. The property is 100

percent NNN leased to an array of national and regional tenants including Baskin Robbins, Edible Arrangement’s, Once

Upon A Child and many more.

Positioned adjacent to Desoto Malco Cinema, the property is directly across from South Lake Centre, a 71,758-square-

foot community center anchored by Old Navy, Marshalls, Petco, Shoe Carnival, and Sports Authority. Other retailers in

the immediate area include a Walmart Supercenter, Lowe’s, Best Buy, Home Depot, CVS, Starbucks and many more.

Southcreek Collection West features excellent exposure and is located just off Goodman Road one of the main

thoroughfares in Northern Mississippi with traffic counts exceeding 42,000 vehicles per day.

Located off Interstate 55, bordering the state of Tennessee, the city of Southaven, Mississippi is less than 12 miles from

Downtown Memphis, 150 miles from Little Rock, Arkansas and 200 miles from the Mississippi state capital of Jackson.

The city of Southaven is one of Mississippi’s fastest growing cities and offers a unique blend of affordability and high

standard of living.

Investment Highlights

■ 19,259 SF Class A Retail

■ 100% Leased

■ $297,807 in Place NOI

■ Excellent Tenant History

■ Shadow Anchored by Malco Movie Theater

■ 40,000+ Traffic Count

■ Prime Southaven Submarket Location

21




INVESTMENT OVERVIEW

The Offering

Property Southcreek Collection West

Property Address 7075 Malco Boulevard

Southaven, MS 38671

Assessor's Parcel Number 107930280000080

Zoning BW2

Site Description

Number of Stories 1

Year Built 2006

Gross Leasable Area (GLA) 19,259 SF

Lot Size 1.89 Acres

Type of Ownership Fee Simple

Construction

Foundation Concrete

Framing Metal

Exterior Brick

Parking Surface Asphalt

Mechanical

Fire Protection Yes

22




PROPERTY SUMMARY

Construction

Features

■ Concrete Slabs

■ Brick Exterior

■ Asphalt Parking Lot

■ Large Brick Pylon Sign

■ Class A Construction

■ Quality Interior Finish

■ Fire Alarm System

■ Excellent Landscaping

■ Parking Lot and Sight Lighting

23




PROPERTY FEATURES

24




PROPERTY PHOTOS

25



SOUTHAVEN, MS


PICTURE PAGE 4

26




AREA MAPS

Local Map Regional Map

27




SITE PLAN

28




AERIAL PHOTO


RECENT SALES

1)2)3)4)5)

Southcreek Collection WestElmore CommonsBuffalo Wild Wings CenterVann CommonsStreets of Indian Lake StripThe Shops Of Woodland Hills

30

RECENT SALES



RECENT SALES MAP

0.00

40.00

80.00

120.00

160.00

200.00

240.00

280.00

320.00

360.00

400.00

ElmoreCommons

BuffaloWildWingsCenter

VannCommons

Streetsof

IndianLakeStrip

TheShopsOf

WoodlandHills

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

ElmoreCommons

BuffaloWildWingsCenter

VannCommons

Streetsof

IndianLakeStrip

TheShopsOf

WoodlandHills

Average Price per Square Foot

31

RECENT SALES


Average Cap Rate


CAP RATE AND PRICE PER SF

2

3

Close of Escrow: 2/14/14 Major Tenants

Year Built: 2007 Domino's Pizza

Gross Leasable Area (GLA): 18,700 SF State Farm Insurance

Sale Price: $2,620,800 Randstad Staffing

CAP Rate: 9.00%

Price/SF (GLA): $140.15

Lot Size: 2.36 Acres

Elmore Commons

460-484 Church Road

Southaven, MS 38671

Buffalo Wild Wings Center

430 Sam Ridley Parkway West

Smyrna, TN 37167

Vann Commons

1117-1121 Vann Drive

Jackson, TN 38305

1


Year Built: 2008 Buffalo Wild Wings

Gross Leasable Area (GLA): 8,350 SF Krispy Kreme

Sale Price: $2,350,000 T-Mobile

Percent Down: 55%

CAP Rate: 8.67%



32

RECENT SALES



Year Built: 2012 Mattress Firm

Gross Leasable Area (GLA): 9,940 SF Aspen Dental

Sale Price: $3,700,000 Panda Express

Percent Down: 27%

CAP Rate: 9.27%




RECENT SALES

5

4 Streets of Indian Lake Strip

280 Indian Lake Boulevard

Hendersonville, TN 37075

The Shops Of Woodland Hills

1105 N Houston Levee Road

Cordova, TN 38018


Year Built: 2005 Block Buster

Gross Leasable Area (GLA): 20,400 SF Anytime Fitness

Sale Price: $3,100,000 Kims Doughnuts

Percent Down: 32% Bank

CAP Rate: 9.76% Mr P's Hot Wings

Price/SF (GLA): $151.96 All State

Lot Size: 2.38 Reggies Bar B Cue

33

RECENT SALES



Year Built: 2012 Mattress Firm

Gross Leasable Area (GLA): 11,780 SF Sprint

Sale Price: $3,500,000 Firehouse Subs

Percent Down: 28% Neighbor MD

CAP Rate: 8.26%




RECENT SALES


ON MARKET COMPARABLES

1)2)3)

Southcreek Collection WestColumbia CornersAdamsville Town CenterBennington Collection

35




ON MARKET COMPARABLES MAP

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

Subject ColumbiaCorners

AdamsvilleTownCenter

BenningtonCollection

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Subject ColumbiaCorners

AdamsvilleTownCenter

BenningtonCollection

Average Price per Square Foot

36



Average Cap Rate


CAP RATE AND PRICE PER SF

2

1



Southaven, MS 38671

Columbia Corners

1003 & 1005 Hwy 98 Bypass

Columbia, MS 39429

Adamsville Town Center

2455 Palomino Lane

Adamsville, AL 35005

Status: On Market Major TenantsYear Built: 2006 Alabama PowerGross Leasable Area (GLA): 26,026 SF ALFA InsuranceList Price: $2,864,000 AT&TPercent Down: 35% Dollar GeneralCAP Rate: 9.00% Papa Johns PizzaPrice/SF (GLA): $110.00Lot Size: 2.60 Acres

Status: On Market Major Tenants

Year Built: 2005 Rue 21

Gross Leasable Area (GLA): 20,867 SF Gamestop

List Price: $3,070,000 Little Caesars

CAP Rate: 8.06% B&E Fine Wine & Spirits

Price/SF (GLA): $147.00 C Spire Wireless

Lot Size: 1.88 Acres Liberty Tax Service

Subject Property

37



Year Built: 2006 Major Tenants

Gross Leasable Area (GLA): 19,259 SF Baskin Robbins

Offering Price: $3,190,000 Once Upon A Child

Percent Down 25% Edible Arrangements

CAP Rate: 8.80%





3 Bennington Collection

5144 Riverdale Road

Memphis, TN 38141

38

Status: On Market Major Tenants

Year Built: 2004 Mr. P's Wings

Gross Leasable Area (GLA): 17,150 SF Rone's Beauty

List Price: $1,895,000 Modern Nails

Percent Down: 25% Dr. Richardson

CAP Rate: 9.98% Mini-Mart

Price/SF (GLA): $110.50 Donald's Donuts

Lot Size: 1.59 Acres AOK Cleaners






RENT COMPARABLES

1)2)3)4)

Southcreek Collection West7090 Malco BoulevardShoppes Of Snowden GroveElmore Commons1306 Goodman Rd

40

RENT COMPARABLES



RENT COMPARABLES MAP

Comments

This property has extensive history of 100% occupancy levels- well located with a solid long term tenant mix.

Comments

Average rents of comparable properties is $17.13 NNN

0

10

20

30

40

50

60

70

80

90

100

Subject 7090Malco

Boulevard

ShoppesOf

SnowdenGrove

ElmoreCommons

1306Goodman

Rd

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

Subject 7090Malco

Boulevard

ShoppesOf

SnowdenGrove

ElmoreCommons

1306Goodman

Rd

41

RENT COMPARABLES


Average Rent per Square Foot


OCCUPANCY AND AVERAGE RENT PER SF

Average Occupancy

2

1

Subject Property


Southaven, MS 38672

Shoppes Of Snowden Grove

3075 E Goodman Road

Southaven, MS 38672

Comments100% Leased

Date Surveyed: 18,875 SF Major Tenants

Occupancy: 83% Kroger

Year Built: 2004 Newk' s Express Cafe

Gross Leasable Area (GLA): 3 SF BankPlus

Rent/SF (GLA): $18.00 Tan-N-Go

Available SF: 3,600


Lease Type: 93%

Date Surveyed: Major Tenants

Occupancy: 93% Hueys

Year Built: 1999 Starbucks

Gross Leasable Area (GLA): 18,875 SF Lennys

Rent/SF (GLA): $16.50

Available SF: 1,400


Lease Type: NNN

Date Surveyed: 12/14/2012 Major Tenants

Occupancy: 100% Baskin Robbins

Year Built: 2006 Once Upon A Child

Gross Leasable Area (GLA): 19,259 SF Edible Arrangements


Available SF: 0


Lease Type: NNN



Southaven, MS 38671

42

RENT COMPARABLES



RENT COMPARABLES

4

3 Elmore Commons

460-484 Church Road

Southaven, MS 38671

1306 Goodman Rd

1306 Goodman Rd E

Southaven, MS 38671


Occupancy: 87% Italia Pizza Cafe

Year Built: 2001 United Credit Corp

Gross Leasable Area (GLA): 12,500 SF Air Force Recuiter


Available SF: 1,600


Lease Type: NNN


Occupancy: 85% Domino's Pizza

Year Built: 2007 State Farm Insurance

Gross Leasable Area (GLA): 18,200 SF Randstad Staffing


Available SF: 4,270


Lease Type: NNN

43

RENT COMPARABLES



RENT COMPARABLES


MARKET OVERVIEW

45

MARKET OVERVIEWSouthcreek Collection West

SOUTHAVEN, MS

Memphis, TN-MS-AR Metro

Market Highlights

Stable economy

■ Large corporate presence and diversifying

industries help to steady the metro’s

Skilled workers

■ Memphis has a large, highly skilled

logistics labor pool.

Affordable cost of living

■ Home prices in Memphis are well below

the national median.


Geography

The Memphis metro covers eight counties in

the states of Tennessee, Mississippi and

Arkansas and covers 3,000 square miles. The

Mississippi River runs through the metro

forming the border between Tennessee and

Arkansas. Other rivers flowing through the

region include the Looseahatchie, Coldwater,

Hatchie and Wolf. The region is situated over

four natural aquifers.

MEMPHIS

46

MARKET OVERVIEW

Metro

The Memphis metro contains more than 1.3 million

residents in the Tennessee counties of Shelby,

Fayette and Tipton, Crittenden County in Arkansas

and Tate, DeSoto, Tunica and Marshall counties in

Mississippi. Shelby is the most populous county in

the metro with 945,000 residents; nearly 70 percent

of the county’s population resides in the city of

Memphis.


SOUTHAVEN, MS

Infrastructure

Interstates 40 and 55 intersect in Memphis, while

Interstate 240 completes a beltway around the city.

Traffic flow through the metro is further enhanced by

Interstate 69, which connects I-55 with U.S.

Highway 61 in Mississippi.

Memphis International Airport, located south of

downtown, is a major passenger airport and contains

a cargo hub for FedEx. Smaller general aviation

airports also service the region.

Memphis has six fully operational rail yards with a

container capacity of more than 2 million annual lifts.

By train, most of the U.S. and portions of Canada

and Mexico can be reached within two days. Five

Class 1 railroads serve the metro.

The International Port of Memphis, on the Mississippi

River is the fourth-largest inland port in the U.S.

handling between 12 to 20 million tons each year.

Largest Cities in Metro by Population


Sources: Marcus & Millichap Research Services, Experian

Memphis 657,500

Bartlett 56,100

Southaven 50,900

Collierville 45,100

Germantown 39,500

Olive Branch 34,600

MEMPHIS

Airports

■ Memphis International Airport

■ General Aviation Airports

Major Roadways

■ Interstates 40, 55, 69 and 240

■ U.S. routes 51, 61, 63, 64, 70, 72, 78 and

Rail

■ Freight - Norfolk Southern, BNSF, Union

Pacific, CSX and Canadian National

Port

■ International Port of Memphis

The Memphis Metro is:

■ 210 miles from Nashville

■ 210 miles from Jackson

■ 240 miles from Birmingham

■ 380 miles from Atlanta

47

MARKET OVERVIEW

Sources: Marcus & Millichap Research Services, Port of Memphis


SOUTHAVEN, MS

Economy

The metro’s centralized location and favorable

business climate, including a low tax structure and

“right to work” status, attracts companies to the

region. Three Fortune 500 companies are located in

Memphis: FedEx, Auto Zone and International Paper.

Distribution and logistics comprise a significant

portion of the region’s economy due to its location

and intermodal capabilities. Not only is it the

headquarters and hub for FedEx, but UPS and USPS

also have major operations here. In addition, more

than 400 trucking firms operate out of the area,

including Swift Transportation, YRC Worldwide and

Schneider National. Technicolor and Nike are among

the many companies that have major distribution

facilities located in the region, employing thousands

of workers. Nike has three local facilities that provide

the company’s major retail distribution for North

America. A $301 million expansion of their Northridge

facility is expected to be completed this year.

To further enhance business opportunities, city

officials remain dedicated to developing Airport City,

also known as the Aerotropolis Master Plan. Among

other objectives, the project will improve access to

the airport from business parks and downtown, which

should bolster space demand metrowide in years to

come.

Other industries being promoted by local officials are

manufacturing, music, film, tourism, as well as

international business.


Dry Bulk Facilities 8

Dry Bulk Storage 581,000 tons

Grain Elevators 6

Grain Capacity 12.3 million bushels

Liquid Bulk Facilities 18

Liquid Bulk Capacity 89 million gallons

Economic impact $6.7 billion

MEMPHIS

International Port of Memphis Quick Facts

48

MARKET OVERVIEW


SOUTHAVEN, MS


Labor

Annual employment growth of 1.2 percent is expected in the Memphis metro through 2018, as the skilled

employment base helps attract companies. Businesses work with local schools and universities to provide the

necessary skills and training for today’s labor needs. The large logistics and distribution industry benefits from

this training. In fact, Memphis’ work force has a higher percentage of logistics workers than any other

metropolitan area in the country.

The trade, transportation and utilities sector is the largest regional employment sector, providing 26 percent of

the area’s jobs. This sector is followed by education and health services, and professional and business

services, which make up 15 percent and 14 percent of total employment, respectively.

Through 2018, the most dramatic job creation is expected in the construction industry, which is forecast to

expand by an impressive average of 6.9 percent per year. Others segments of Memphis’ employment will add

jobs at a more modest pace. The education and health services, financial activities, government and

information sectors are all expected to post growth averaging more than 1.0 annually through the coming five

years.

MEMPHIS

49


SOUTHAVEN, MS

Employers

The major employers in the metro cover a broad

range of industries. Healthcare plays a dominant role.

Employers in this industry include Methodist Le

Bonheur Healthcare, Baptist Memorial Health Care,

and St. Jude Children’s Research Hospital. Medical

services companies provide tens of thousands of

area jobs.

Among the largest employers in the trade,

transportation and utilities industry are Wal-Mart,

Kroger and FedEx. FedEx is the region’s most

sizeable private employer with more than 30,000

employees. The company is not only headquartered

in Memphis, but also has a large distribution hub. The

company has acted as a catalyst for the area’s

logistics and distribution industry, which now also

includes companies such as UPS, Nike, Flextronics,

and New Breed Logistics, among many others.

International Paper and Mitsubishi Electric Power

Products are some of the newest companies to

expand or locate in the area. Last year, Mitsubishi

opened a new $200 million facility in the Rivergate

Industrial Park, and International Paper continues to

add jobs in the region as they relocate employees

from Austin, Texas.

The government sector, including federal, state, and

local entities is also a significant employer in the

metro. One of the largest federal employers is the

Naval Support Activity Mid-South, located

approximately 21 miles north of Memphis in

Millington, Tenn. The facility employs thousands of

workers.

Major Private Employers


FedEx Corp.

St. Jude Children’s Research Hospital

Methodist Le Bonheur Healthcare

Baptist Memorial Health Care Corp.

Wal-Mart

Harrahs Entertainment Inc.

Naval Support Activity Mid-South

First Horizon National Corp.

The Kroger Co.

International Paper

MEMPHIS

50


SOUTHAVEN, MS

Quality of Life

The “Blues City” region offers an attractive quality of

life for residents and visitors alike, whether it is taking

in the vibes on Beale Street or walking along the

Mississippi, there is something for everyone to enjoy.

Parks abound in the area; in addition to Mud Island

River Park and Shelby Farms Park, there is the

Memphis Botanic Gardens, Lichterman Nature Center,

and Overton Park, which includes the Old Forest

Arboretum, to name a few.

For the sports enthusiasts, major league sports are

represented by the Memphis Grizzlies of the NBA. The

Memphis Redbirds and the Mississippi RiverKings are

minor league baseball and hockey teams, and Liberty

Bowl Memorial Stadium is the the site of the Liberty

Bowl as well as University of Memphis football. For

those who enjoy gambling, gaming is available at the

many casinos in Tunica County, Mississippi.

The metro provides a number of cultural amenities.

Museums include the Children’s Museum of Memphis,

Brooks Museum of Art, Pink Palace Museum, the

National Civil Rights Museum, and the Dixon Gallery

and Gardens. The Memphis Symphony Orchestra,

Ballet Memphis, Opera Memphis, as well as Theater

Memphis and the Poplar Pike Playhouse all call

Memphis home. Music plays an important role in the

history of Memphis.


The information contained in the market overview comes from sources deemed to be reliable, however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. The most timely data available at time of production, including estimates and forecasts, were used and may be subject to revision.

MEMPHIS


DEMOGRAPHIC ANALYSIS

1 Mile 3 Miles 5 Miles

2000 Population 3,586 35,223 84,996

2010 Population 4,065 45,614 104,405

2013 Population 4,281 47,135 107,409

2018 Population 4,421 51,036 115,028

2000 Households 1,434 13,210 30,442

2010 Households 1,646 16,869 37,579

2013 Households 1,728 17,414 38,645

2018 Households 1,816 19,056 41,901

2013 Average Household Size 2.62 2.71 2.77

2013 Daytime Population 4,972 18,050 34,943

2000 Median Housing Value $99,920 $88,896 $85,528

2000 Owner Occupied Housing Units 67.89% 66.98% 67.44%

2000 Renter Occupied Housing Units 28.31% 28.84% 28.09%

2000 Vacant 2.54% 3.90% 4.46%



2013 Vacant 3.43% 4.56% 5.93%



2018 Vacant 3.67% 4.63% 5.98%

$ 0 - $14,999 9.4% 9.7% 10.8%

$ 15,000 - $24,999 6.9% 10.7% 10.8%

$ 25,000 - $34,999 9.5% 10.6% 11.5%

$ 35,000 - $49,999 16.9% 17.1% 16.3%

$ 50,000 - $74,999 26.8% 22.6% 21.1%

$ 75,000 - $99,999 16.1% 15.8% 15.2%

$100,000 - $124,999 8.3% 7.9% 8.2%

$125,000 - $149,999 2.9% 2.6% 2.8%

$150,000 - $199,999 2.6% 1.8% 2.0%

$200,000 - $249,999 0.4% 0.7% 0.6%

$250,000 + 0.4% 0.7% 0.7%

2013 Median Household Income $56,635 $51,795 $50,567

2013 Per Capita Income $25,872 $22,730 $22,019

2013 Average Household Income $63,796 $61,411 $61,042

Demographic data © 2010 by Experian/Applied Geographic Solutions.

52




DEMOGRAPHIC REPORT

Geography: 5 miles

Population

In 2013, the population in your selected geography was 107,409. The population has changed by 26.36% since 2000. It is estimatedthat the population in your area will be 115,028 five years from now, which represents a change of 7.09% from the current year. Thecurrent population is 47.2% male and 52.7% female. The median age of the population in your area is 33.5, compare this to the U.S.average which is 37. The population density in your area is 1,371.33 people per square mile.

Households

There are currently 38,645 households in your selected geography. The number of households has changed by 26.94% since 2000. Itis estimated that the number of households in your area will be 41,901 five years from now, which represents a change of 8.42% fromthe current year. The average household size in your area is 2.77 persons.

Income

In 2013, the median household income for your selected geography is $50,567, compare this to the U.S. average which is currently$53,535. The median household income for your area has changed by 13.86% since 2000. It is estimated that the median householdincome in your area will be $59,199 five years from now, which represents a change of 17.07% from the current year.

The current year per capita income in your area is $22,019, compare this to the U.S. average, which is $28,888. The current yearaverage household income in your area is $61,042, compare this to the U.S. average which is $75,373.

Race & Ethnicity

The current year racial makeup of your selected area is as follows: 47.39% White, 46.95% African American, 0.29% Native Americanand 1.19% Asian/Pacific Islander. Compare these to U.S. averages which are: 72.20% White, 12.65% African American, 0.96% NativeAmerican and 5.01% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 4.71% of the current year populationin your selected area. Compare this to the U.S. average of 16.55%.

Housing

The median housing value in your area was $85,528 in 2000, compare this to the U.S. average of $110,781 for the same year. In2000, there were 21,489 owner occupied housing units in your area and there were 8,950 renter occupied housing units in your area.The median rent at the time was $574.

Employment

In 2013, there are 34,943 employees in your selected area, this is also known as the daytime population. The 2000 Census revealedthat 56.1% of employees are employed in white-collar occupations in this geography, and 43.8% are employed in blue-collaroccupations. In 2013, unemployment in this area is 4.79%. In 2000, the median time traveled to work was 23.7 minutes.


53




SUMMARY REPORT

Number of people living in a given area per square mile.


54




POPULATION DENSITY

The number of people employed in a given area per square mile.


55




EMPLOYMENT DENSITY

Average income of all the people 15 years and older occupying a single housing unit.


56




AVERAGE HOUSEHOLD INCOME

SOUTHAVEN, MS

OFFERING MEMORANDUM


Offices Nationwidewww.MarcusMillichap.com

Southcreek Collection West - Jesse Lee Malco Bl... · Jan 2013 Year 2 Jan 2014 Year 3 Jan 2015 Year...

Documents

Transcript of Southcreek Collection West - Jesse Lee Malco Bl... · Jan 2013 Year 2 Jan 2014 Year 3 Jan 2015 Year...