WALMART SHADOW ANCHORED CENTER · The Dumes Falk Group of Marcus & Millichap is please to bring to...
Transcript of WALMART SHADOW ANCHORED CENTER · The Dumes Falk Group of Marcus & Millichap is please to bring to...
WALMART SHADOW ANCHORED CENTER3302 South Belt Hwy • Saint Joseph, MO 64506
OFFERING MEMORANDUM
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WALMART SHADOW ANCHORED CENTER
Saint Joseph, MO
ACT ID Y0360258
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
Non-EndorsementsMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in
this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation
with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any
agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of
providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
DisclaimerTHIS 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.
P R E S E N T E D B Y
Ryan Roedersheimer
Associate
Associate Director - National Retail Group
Cincinnati Office
Tel: (513) 878-7700
Fax: (513) 878-7710
License: OH SAL.2015004880
Joel Dumes
Senior Vice President Investments
Senior Director - National Retail Group
Cincinnati Office
Tel: (513) 878-7720
Fax: (513) 878-7710
Licenses: OH SAL.2003013045, KY
63818
Stan Falk
First Vice President Investments
Senior Director - National Retail Group
Cincinnati Office
Tel: (513) 878-7721
Fax: (513) 878-7710
License: OH SAL.2012001364
Broker of Record: Bradley Barham
TABLE OF CONTENTS
WALMART SHADOW ANCHORED CENTER
INVESTMENT OVERVIEWSection 1
•
FINANCIAL ANALYSISSection 2
•
MARKET OVERVIEWSection 3
•
WALMART SHADOW ANCHORED CENTER
5
INVESTMENT
OVERVIEW
#
OFFERING SUMMARY
▪ Walmart Shadow Anchored Strip Center | Internet-Resistant Tenant Mix
▪ Anchored by St. Joseph Veteran Affairs Clinic | Leased through 2022
▪ 27 Percent or 6,450-Square Feet or Realizable Vacancy Upside
▪ Situated Along US-169 | North-South Commuter Corridor
▪ Nearly 68,000 Residents and 100,000 Employees within Five-Miles
▪ Located Approximately Fifty-Miles North of Kansas City, Missouri
INVESTMENT HIGHLIGHTS
The Dumes Falk Group of Marcus & Millichap is please to bring to market St. Joseph Plaza, a Walmart shadow anchored strip center comprised of
24,229-square feet in St. Joseph, Missouri. St. Joseph is the eighth largest city in the state and the county seat of Buchanan County, located
approximately 50-miles north of downtown Kansas City, Missouri – the largest city in Missouri. The center was constructed in 2003 and situated on
roughly 3.11 acres along US-169.
St. Joseph Plaza is currently 73 percent leased and anchored by St. Joseph Veteran Affairs Clinic. The VA Clinic signed a ten-year lease in 2012,
maintains 41 percent of the GLA and represents 73 percent of the gross income. All of the tenants except for the VA Clinic are operating under triple-net
leases. Additionally, there are two vacant units totaling 6,450-square feet of realizable vacancy upside. Leasing up these vacant units at market rents
under triple-net leases could potentially add an additional $65,000 to the NOI. The tenant base consists of a complimentary mix of tenants that supplies
the city’s consumers with a wide range of products and services to meet the needs of its residents. A number of these needs are internet resistant and
include a veteran affairs clinic, veterinary clinic, financial services, pet supplies, liquidation center and electronic entertainment.
The city of St. Joseph is the eighth largest city in the state and the third largest in Northwest Missouri and is best known as the starting point of the Pony
Express. The St. Joseph MSA includes four counties with a population of nearly 130,000 residents. Mosaic Life Care, the largest employer in the city was
recently named one of the nation’s 100 Top Hospitals by Truven Health Analytics. Triumph foods is the second largest employer and is recognized as a
top processor and exporter of premium, fresh pork products worldwide and is expanding further with its 50% ownership of Daily’s Premium Meats.
Surrounding St. Joseph Plaza are more than 51,500 employees within three-miles and nearly 100,000 in five-miles. There are nearly 40,000 residents
within three-miles of the plaza and over 77,000 in five-miles. St. Joseph Plaza benefits from being positioned off of Interstate-29 along US-169
(Southern Belt Highway), a four-lane US highway with a center turn lane into the center. Along with the Walmart Supercenter, additional traffic drivers
within the corridor include retail, education, medical and some industrial which all pull consumers to or around St. Joseph Plaza. The property is just over
two-miles away from Missouri Western State University with more than 5,000 students and four-miles away from Central High School with 1,700
students.
An internet-resistant tenant mix with strong historical occupancy, realizable vacancy upside and a prominent location within a growing market provides
St. Joseph Plaza the ability to remain as an integral part of the community and should continue to serve as an invaluable shopping destination for
residents and travelers alike.
INVESTMENT OVERVIEW
6
WALMART SHADOW ANCHORED CENTER
PROPERTY PHOTOS
7
WALMART SHADOW ANCHORED CENTER
PROPERTY PHOTOS
8
WALMART SHADOW ANCHORED CENTER
PROPERTY PHOTOS
9
WALMART SHADOW ANCHORED CENTER
SITE PLAN
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WALMART SHADOW ANCHORED CENTER
*Site plan is a representation of the property with the number of units, parking spots and relative size of both. It does not show the absolute exact size of the units relative to the other spaces or the exact number of parking spots.
Tenant VA Clinic
(1)Vacant
(2)
Closeout Liquidatorz
(3)
PawsitivelyGreat
(4)
PFC Counter
(5)
Animal Tales
(6)GameStop
(7)Vacant
(8)
Square Footage
9,999 SF 3,650 SF 1,200 SF 1,540 SF 1,440 SF 2,000 SF 1,600 SF 2,800 SF
1 2 3 4 5 6 7 8
LOCAL AERIAL
WALMART SHADOW ANCHORED CENTER
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REGIONAL AERIAL
WALMART SHADOW ANCHORED CENTER
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13
FINANCIAL
ANALYSIS
WALMART SHADOW ANCHORED CENTER
#
EXECUTIVE SUMMARY
OFFERING SUMMARY
14
THE OFFERING
Property Walmart Shadow Anchored Strip Center
Property Address 3302 S. Belt Hwy, St Joseph, MO 64503
SITE DESCRIPTION
Built 2003
Gross Leasable Area 24,229 SF
Current Occupancy 73.38%
Lot Size +/- 3.11 Acre
Ownership Fee Simple
MAJOR TENANTS
TENANT GLA LEASE EXPIRATION LEASE TYPE
VA Clinic 9,999 09/26/2022 Gross
GameStop 1,600 01/31/2020 NNN
MAJOR EMPLOYERS
EMPLOYER# OF
EMPLOYEES
Mosaic Life Care 3,471
Triumph Foods 2,767
St. Joseph School District 2,047
139th Airlift Wing Air National Guard 1,494
Boehringer Ingelheim Vetmedica, Inc. 1,191
Missouri Western State University 820
American Family Insurance 767
City of St. Joseph 740
Wal-Mart 712
Johnson Controls 658
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2016 Estimate Pop 2,878 38,914 77,621
2010 Census Pop 2,872 38,481 77,208
2016 Estimate HH 1,271 14,370 30,101
2010 Census HH 1,262 14,128 29,839
Daytime Population 3,833 51,520 98,067
Average HH Income $48,157 $53,260 $56,998
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WALMART SHADOW ANCHORED CENTER
FINANCIAL ANALYSIS
15
TENANT SUMMARY
Tenant Name Square
Feet
%
Bldg
Share
Lease DatesAnnual
Rent per
Sq. Ft.
Total Rent
Per Month
Total Rent
Per Year
Changes
on
Changes
To
Lease
TypeRenewal Options
Comm. Exp.
Pawsitively Great K-9 Salon 1,540 6.36% 06/01/2016 05/31/2019 $8.24 $1,057 $12,690 06/01/2018 $13,070 NNN One, Three-Year
Closeout Liquidatorz 1,200 4.95% 10/01/2017 09/30/2020 $8.00 $800 $9,600 10/01/2020 $10,800 NNN One, Three-Year
Personal Finance Company 1,440 5.94% 03/01/2016 02/28/2021 $10.61 $1,273 $15,277 03/01/2019 $15,735 NNN One, Five-Year
Animal Tales Veterinary Clinic 2,000 8.25% 06/01/2015 05/31/2020 $7.50 $1,250 $15,000 06/01/2020 FMV NNN One, Five-Year
GameStop 1,600 6.60% 02/01/2004 01/31/2020 $12.00 $1,600 $19,200 None None NNN None
U.S. Dept. of Veterans Affairs 9,999 41.27% 03/01/2012 09/26/2022 $24.37 $20,306 $243,676 None None Gross None
Vacant 2,800 11.56%
Vacant 3,650 15.06%
Total Occupied 17,779 73.38%
Total Vacant 6,450 26.62% $0 $0
Total 24,229 100.00% $26,287 $315,442
WALMART SHADOW ANCHORED CENTER
TENANT SUMMARY
#
U.S. Department of Veteran Affairs (Government)
The United States Department of Veterans Affairs (VA) is a federal Cabinet-level
agency that provides near-comprehensive healthcare services to eligible military
veterans at VA medical centers and outpatient clinics located throughout the country;
several non-healthcare benefits including disability compensation, vocational
rehabilitation, education assistance, home loans, and life insurance; and provides
burial and memorial benefits to eligible veterans and family members at 135 national
cemeteries. While veterans benefits have been provided since the American
Revolutionary War, an exclusively veteran-focused federal agency, the Veterans
Administration, was not established until 1930, and became the cabinet-level
Department of Veterans Affairs in 1989.
PRICING AND VALUATION MATRIX
PROPERTY NAMEOAKLEY STATION BUILDING
PRICING AND VALUATION MATRIX
PROPERTY NAMEWALMART SHADOW ANCHORED
16
TENANT SUMMARY
General Information
Tenant Name U.S. Department of Veteran Affairs
Lease Commencement March 1, 2012
Lease Expiration September 26, 2022
Gross Leasable Area (GLA) 9,999
Original Term Ten Years
Option Term None
Pro Rata Share of Project 41.27%
Headquarters Washington, D.C
Ticker Government
Website www.va.gov
Lease Years Annual Rent Monthly Rent Annual Rent/SF
09/27/2012 – 09/26/2022 $243,626 $20,306 $24.37
Base Rent
Expense Lease Summary
C.A.M. Tenant does not reimburses pro-rata share
Real Estate Tax Tenant does not reimburses pro-rata share
Insurance Tenant does not reimburses pro-rata share
Management Tenant does not reimburse pro-rata share
Co-TenancyTenant has right to terminate lease at anytime after fifth lease
year
Misc.Landlord is required to pay for janitorial and cleaning expenses,
all interior utilities and any general maintenance to the premise
FINANCIAL ANALYSIS
17
PRICING DETAIL & OPERATING DATA
Operating Data Current
Scheduled Base Rental Income $315,442
Expense Reimbursement Income
CAM $10,272
Insurance $1,156
Real Estate Taxes $7,775
Management Fees $0
Total Reimbursement Income $19,203
Effective Gross Income $334,645
Less: Operating Expenses ($100,451)
Net Operating Income $234,194
Debt Service ($143,670)
Net Cash Flow After Debt Service 12.93% $90,525
Principal Reduction $44,888
Total Return 19.34% $135,413
Operating Expenses Current Per/SF
Co
mm
on A
rea
Main
ten
an
ce
(CA
M)
Electric $13,453 $0.56
Gas $2,198 $0.09
Water/Sewer $4,544 $0.19
Landscaping $1,050 $0.04
General R&M $9,296 $0.38
Fire Protection $2,120 $0.09
Total CAM $32,661 $1.35
2016 Insurance Premiums $3,600 $0.15
2017 Real Estate Taxes $24,214 $1.00
Management Fee (4% of EGI) $13,386 $0.55
Owner Expenses* $21,840 $0.90
Reserves $4,750 $0.20
Total Expenses $100,451 $4.15
PRICING & FINANCING
List Price $2,800,000
Cap Rate | Price/SF 8.37% | $116
Net Operating Income $234,194
Loan Type Proposed New
Down Payment 25% / $700,000
Loan Amount $2,100,000
Interest Rate / Amortization 4.75% / 25 Years
Debt Coverage Ratio 1.63
WALMART SHADOW ANCHORED CENTER
*Owner expenses are for janitorial services and utilities serving the premise for the VA Clinic
WALMART SHADOW ANCHORED CENTER
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MARKET
OVERVIEW
8
WALMART SHADOW ANCHORED CENTER
DEMOGRAPHICS
19
Walmart Shadow Anchored Center
1 Mile
3 Miles
5 Miles
PROPERTY NAME
MARKETING TEAM
WALMART SHADOW ANCHORED CENTER
DEMOGRAPHICS
Source: © 2016 Experian
Created on October 2017
POPULATION 1 Miles 3 Miles 5 Miles
▪ 2021 Projection
Total Population 2,880 39,390 78,654
▪ 2016 Estimate
Total Population 2,878 38,914 77,621
▪ 2010 Census
Total Population 2,872 38,481 77,208
▪ 2000 Census
Total Population 2,861 37,413 74,353
▪ Current Daytime Population
2016 Estimate 3,833 51,520 98,067
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
▪ 2021 Projection
Total Households 1,280 14,639 30,649
▪ 2016 Estimate
Total Households 1,271 14,370 30,101
Average (Mean) Household Size 2.22 2.47 2.43
▪ 2010 Census
Total Households 1,262 14,128 29,839
▪ 2000 Census
Total Households 1,243 14,112 29,037
▪ Occupied Units
2021 Projection 1,280 14,639 30,649
2016 Estimate 1,345 15,789 33,266
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
▪ 2016 Estimate
$150,000 or More 1.80% 2.06% 3.16%
$100,000 - $149,000 6.89% 7.60% 8.27%
$75,000 - $99,999 11.61% 10.30% 10.40%
$50,000 - $74,999 17.33% 22.47% 21.05%
$35,000 - $49,999 13.29% 16.17% 15.18%
Under $35,000 48.79% 40.99% 41.25%
Average Household Income $48,157 $53,260 $56,998
Median Household Income $36,093 $43,341 $43,532
Per Capita Income $21,286 $20,460 $22,799
HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles
Total Average Household Retail Expenditure
$55,312 $58,324 $58,839
▪ Consumer Expenditure Top 10 Categories
Housing $14,875 $15,562 $15,656
Transportation $9,580 $10,193 $10,253
Shelter $8,104 $8,423 $8,473
Food $6,231 $6,571 $6,623
Health Care $4,633 $4,693 $4,768
Personal Insurance and Pensions $4,085 $4,626 $4,681
Utilities $3,692 $3,865 $3,872
Entertainment $2,397 $2,547 $2,558
Cash Contributions $1,577 $1,598 $1,665
Household Furnishings and Equipment
$1,573 $1,711 $1,720
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
▪ Population By Age
2016 Estimate Total Population 2,878 38,914 77,621
Under 20 23.53% 25.79% 25.64%
20 to 34 Years 21.11% 24.41% 22.70%
35 to 39 Years 5.43% 6.38% 6.12%
40 to 49 Years 10.48% 11.82% 11.99%
50 to 64 Years 20.13% 18.43% 19.25%
Age 65+ 19.34% 13.17% 14.30%
Median Age 39.94 34.86 36.30
▪ Population 25+ by Education Level
2016 Estimate Population Age 25+ 2,011 25,479 51,560
Elementary (0-8) 3.22% 2.80% 3.08%
Some High School (9-11) 7.96% 9.14% 8.49%
High School Graduate (12) 45.94% 41.91% 39.16%
Some College (13-15) 19.74% 23.10% 23.34%
Associate Degree Only 5.63% 4.82% 4.86%
Bachelors Degree Only 10.33% 11.89% 13.09%
Graduate Degree 5.36% 5.25% 6.75%
20
Income
In 2016, the median household income for your selected geography is
$43,532, compare this to the US average which is currently $54,505.
The median household income for your area has changed by 31.44%
since 2000. It is estimated that the median household income in your
area will be $52,380 five years from now, which represents a change
of 20.33% from the current year.
The current year per capita income in your area is $22,799, compare
this to the US average, which is $29,962. The current year average
household income in your area is $56,998, compare this to the US
average which is $78,425.
Population
In 2016, the population in your selected geography is 77,621. The
population has changed by 4.40% since 2000. It is estimated that the
population in your area will be 78,654 five years from now, which
represents a change of 1.33% from the current year. The current
population is 50.34% male and 49.66% female. The median age of
the population in your area is 36.30, compare this to the US average
which is 37.68. The population density in your area is 986.89 people
per square mile.
Households
There are currently 30,101 households in your selected geography.
The number of households has changed by 3.66% since 2000. It is
estimated that the number of households in your area will be 30,649
five years from now, which represents a change of 1.82% from the
current year. The average household size in your area is 2.43 persons.
Employment
In 2016, there are 98,607 employees in your selected area, this is also
known as the daytime population. The 2000 Census revealed that
54.49% of employees are employed in white-collar occupations in
this geography, and 45.60% are employed in blue-collar occupations.
In 2016, unemployment in this area is 4.80%. In 2000, the average
time traveled to work was 18.00 minutes.
Race and Ethnicity
The current year racial makeup of your selected area is as follows:
85.63% White, 6.79% Black, 0.37% Native American and 1.31%
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 6.90% of the current year
population in your selected area. Compare this to the US average of
17.65%.
PROPERTY NAME
MARKETING TEAM
WALMART SHADOW ANCHORED CENTER
Housing
The median housing value in your area was $99,442 in 2016, compare
this to the US average of $187,181. In 2000, there were 18,973 owner
occupied housing units in your area and there were 10,064 renter
occupied housing units in your area. The median rent at the time was
$349.
Source: © 2016 Experian
DEMOGRAPHICS
21
MARKET OVERVIEW
KANSAS CITYOVERVIEW
The Kansas City metro consists of 14 counties: Clay, Bates, Cass,
Platte, Clinton, Caldwell, Jackson, Lafayette and Ray counties in
Missouri; and Johnson, Linn, Miami, Leavenworth and Wyandotte
counties in Kansas. The area sits close to both the geographic and
population centers of the United States and serves as a major regional
commercial, industrial and cultural hub. The metro has nearly 2.1
million residents. Jackson is the most populous county with 690,000
people, followed by Johnson with 583,800 residents. Kansas City,
Missouri, is the largest city with 475,000 citizens, followed by Overland
Park, Kansas, with 185,000 people.
MARKET OVERVIEW
METRO HIGHLIGHTS
CENTRAL LOCATION
A large portion of North America can be reached
within a 12-hour drive, making the metro a natural
transportation and distribution hub.
EXPANSIVE TRANSPORTATION SYSTEM
The region is the second-largest rail center in the
United States and features an efficient and well-
connected airport. BNSF Railway also has an
intermodal facility in the area.
AFFORDABLE COST OF LIVING
Kansas City offers a lower cost of living than many
other large Midwestern markets.
22
WALMART SHADOW ANCHORED CENTER
MARKET OVERVIEW
ECONOMY▪ Its central location, extensive transportation network and intermodal facilities make the
metro an important logistics and distribution hub. The increased flow of goods from
Mexico will drive intermodal growth in the region.
▪ Lower costs of living and doing business as well as an educated workforce attract
corporations and job seekers to the metro. Fortune 500 company headquarters include
Seaboard and Lansing Trade Group.
▪ Other expanding industries in the metro include finance and insurance, engineering, life
sciences, manufacturing and information technology.
SHARE OF 2016 TOTAL EMPLOYMENT
MAJOR AREA EMPLOYERS
Sprint Corp.
DST Systems
Hallmark Cards Inc.
University of Kansas Healthcare
Cerner Corp.
St. Luke’s Health System
HCA Midwest Health System
AT&T
BNSF Railway
Children’s Mercy Hospital* Forecast
MANUFACTURING
7%GOVERNMENT
HEALTH SERVICES
EDUCATION AND
+OTHER SERVICES
4%
LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES
19%
AND UTILITIES
TRADE, TRANSPORTATION CONSTRUCTION
PROFESSIONAL AND
BUSINESS SERVICES
2%INFORMATION
18%
4%
14% 10% 7%
14%
23
WALMART SHADOW ANCHORED CENTER
MARKET OVERVIEW
DEMOGRAPHICS
SPORTS
EDUCATION
ARTS & ENTERTAINMENT
▪ The metro is expected to add nearly 100,000 people through 2021, resulting in the
formation of approximately 40,000 households.
▪ A median home price below the U.S. median has produced a homeownership rate of
66 percent, which is slightly higher than the national rate of 64 percent.
▪ Roughly 33 percent of residents age 25 and older have bachelor’s degrees; of those
residents, 12 percent have also earned a graduate or professional degree.
Kansas City has a variety of entertainment options. Two major professional sports
franchises, the Kansas City Chiefs of the NFL and MLB’s Kansas City Royals, play in the
metro. The city boasts a rich jazz music history and houses the American Jazz Museum.
Kansas City also features a downtown entertainment district that combines restaurants and
retail, including the Sprint Center. Cultural venues include the Kemper Museum of
Contemporary Art, Nelson-Atkins Museum of Art, the Lyric Opera of Kansas City and the
Starlight Theatre. The metro maintains an exceptional education system with nationally
ranked school districts, colleges, universities, and institutions of advanced learning and
research, including the University of Missouri-Kansas City.
37
2016MEDIAN AGE:
U.S. Median:
37.7
$58,500
2016 MEDIAN HOUSEHOLD INCOME:
U.S. Median:
$57,200
2.1M
2016POPULATION:
Growth2016-2021*:
4.6%
822K
2016HOUSEHOLDS:
5%
Growth2016-2021*:
QUALITY OF LIFE
2016 Population by Age
0-4 YEARS
7%5-19 YEARS
20%20-24 YEARS
6%25-44 YEARS
27%45-64 YEARS
26%65+ YEARS
13%
* Forecast
Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s
Analytics; U.S. Census Bureau
24
WALMART SHADOW ANCHORED CENTER
www.MarcusMillichap.com
Ryan Roedersheimer
Associate
Associate Member - National Retail Group
Cincinnati Office
Tel: (513) 878-7700
Fax: (513) 878-7710
License: OH SAL.2015004880
Joel Dumes
Senior Vice President Investments
Senior Director - National Retail Group
Cincinnati Office
Tel: (513) 878-7720
Fax: (513) 878-7710
Licenses: OH SAL.2003013045, KY 63818
Stan Falk
First Vice President Investments
Director - National Retail Group
Cincinnati Office
Tel: (513) 878-7721
Fax: (513) 878-7710
License: OH SAL.2012001364
P R E S E N T E D B Y
Broker of Record: Bradley Barham