3044 SOUTH MCKENZIE STREET - FOLEY, ALABAMA 36535
OFFICE DEPOT (Store of the Future)
ACTUAL PROPERTY
of fer ing memorandum
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 must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0330635 1
3044 SOUTH MCKENZIE STREET - FOLEY, ALABAMA 36535
Investment Overv iew
• Office Depot in Foley, Alabama | Selected by Office Depot, Incorporated for Company’s New “Store of The Future” Concept
• Firm Term | More Than 10 Years of Lease Term Remaining | 10 Percent Rent Increase in 2023
• Tenant Demonstrates Commitment to Location | More Than 15-Year Operating History | Second Early Lease Extension in May 2017
• Corporate Guaranty | NASDAQ: ODP | Number 196 in Fortune 500 (June 2016)
• Signalized, Hard Corner Intersection | South McKenzie Street and Miflin Road | Main North-South and East-West Arteries Through Foley
• South McKenzie/Route-59 Retail Corridor | More Than 1-Million Square Feet of Retail in Less Than One Mile of Asset
• Quarter Mile South of Tanger Outlets | More Than 89 Tenants and Over 470,000 Square Feet of Retail | J. Crew, Michael Kors, Coach, Chico’s, Under Armour, Nike, Kay Jewelers, Banana Republic, Brooks Brothers, and More
• Additional Tenants Along the Corridor Include: Home Depot, Lowes, Big Lots, Hobby Lobby, Walmart, McDonald’s, Burger King, Advance Auto Parts, Wells Fargo, CVS, Whataburger, Chick-fil-A, and more
Marcus & Millichap is pleased to present this “Store of The Future” Office Depot in Foley, Alabama, which is 50 miles south of Mobile and 30 miles west of Pensacola, Florida. Office Depot has been operating at this location for more than 15 years. The tenant has demonstrated commitment by extending their lease early two times. Additionally, this location has been selected by Office Depot, Incorporated to be upgraded to their brand new “Store of The Future” concept. The tenant plans to invest more than $640,000 in the “Store of the Future” remodel. Only 5 percent of all office depot locations have been selected for this upgrade in 2017. The work is scheduled to be completed during the fourth quarter of 2017.
Office Depot has 11 years remaining on a double-net (NN) lease with minimal landlord responsibilities and a 10 percent rent increase in 2023. The lease is guaranteed by Office Depot, Incorporated, which is a Fortune 500 company that did more than $11-Billion in revenue across 1,441 locations in 2016. There are four, five-year renewal options remaining with ten percent rent increases in each option.
This asset is located at the signalized intersection of South McKenzie Street and Miflin Road. South McKenzie Street is a major north-south artery through Foley, and is also a major retail corridor with more than one-million square feet of retail in less than one mile of the subject property. A quarter a mile north of this asset are the Tanger Outlets with more than 80 retailers featuring tenants such as: Coach, J. Crew, Michael Kors, Kay Jewelers, Under Armour, Nike, Brook’s Brothers, Banana Republic, Fossil, Reebok, and many more.
“STORE OF THE FUTURE EXAMPLE”
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 must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0330635 2
3044 SOUTH MCKENZIE STREET - FOLEY, ALABAMA 36535
PRICE $3,475,781
CAP RATE 7.25%
NOI $251,994
PRICE PER SQUARE FOOT $169.65
RENT PER SQUARE FOOT $12.30
YEAR BUILT 2001
LOT SIZE 2.018 Acres
GROSS LEASEABLE AREA 20,488
TYPE OF OWNERSHIP Fee Simple
LEASE GUARANTOR Corporate Guaranty
LEASE TYPE Double-Net (NN)
ROOF AND STRUCTURE Landlord Responsible
LEASE COMMENCEMENT DATE 10/1/2001
LEASE EXPIRATION DATE 4/30/2028
LEASE TERM 15 Years
TERM REMAINING 11 Years
INCREASES 10 Percent in 2023
OPTIONS TO RENEW Four, Five-Year Options
OPTIONS TO TERMINATE None
OPTIONS TO PURCHASE None
Financia l Overv iew
ACTUAL PROPERTY
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 must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0330635 4
3044 SOUTH MCKENZIE STREET - FOLEY, ALABAMA 36535
Tenant Overv iew - Off ice Depot
Office Depot, Incorporated is a global supplier of office products and services. The company was incorporated in 1986 with the opening of our first retail store in Fort Lauderdale, Florida. Formed by the merger of Office Depot and OfficeMax, Office Depot, Incorporated is a leading global provider of products, services, and solutions for every workplace – whether your workplace is an office, home, school, or car.
Office Depot, Incorporated is a resource and a catalyst to help customers work better. We are a single source for everything customers need to be more productive, including the latest technology, core office supplies, print and document services, business services, facilities products, furniture, and school essentials.
TENANT PROFILE
TENANT TRADE NAME Office Depot, Incorporated
OWNERSHIP Public
TENANT Corporate Store
LEASE GUARANTOR Corporate Guarantee
NUMBER OF LOCATIONS 1,441 (As of 12/31/2016)
HEADQUARTERED Boca Raton, Florida
WEB SITE www.officedepot.com
SALES VOLUME $11.02 Billion (2016)
NET WORTH $1.85 Billion (2016)
STOCK SYMBOL ODP
BOARD NASDAQ
CREDIT RATING B-
RATING AGENCY S&P
RANK #192 in Fortune 500 (June 2016)
ACTUAL PROPERTY
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 must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0330635 5
3044 SOUTH MCKENZIE STREET - FOLEY, ALABAMA 36535
Aer ia l Overv iew
NORTH
S McKenzie St
32,900 VPD
Muflin Road
Mufl in Road
S McKenzie St
3044 S McKenzie StFoley, AL 36535
FoleyHigh School
SUBJECT PROPERTY
AmericasDrive•In SM
®
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 must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0330635 6
3044 SOUTH MCKENZIE STREET - FOLEY, ALABAMA 36535
5 M
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3 M
ILE
RA
DIU
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1 MIL
E
SITE
98
98
98 9898 98
98
181
180
180
59
59
59
59
Barnwell
YuponMagnoliaSprings
FoleyElberta
Perdido Beach
Josephine
Caswell
Oyster Bay
Bon Secour
Jack EdwardsNationalAirport
Bon Secour Bay
Area Overview & Demographics
1-Mile 3-Mile 5-Mile
P o p u l a t i o n
2000 Population 8,463 98,404 236,450
2010 Population 5,988 81,463 206,066
2016 Population 6,343 84,337 208,027
2021 Population 6,401 84,724 207,888
Daytime Employment 7,869 92,752 146,060
1-Mile 3-Mile 5-Mile
H o u s e h o l d s
2000 Households 3,441 41,217 96,881
2010 Households 2,487 34,445 85,680
2016 Households 2,669 35,675 86,363
2021 Households 2,700 35,850 86,307
1-Mile 3-Mile 5-Mile
H o u s e h o l d ( H H ) I n c o m e s
2016 Average HH Income $33,376 $36,608 $45,139
2016 Median HH Income $23,954 $24,936 $31,465
2016 Per Capita Income $14,044 $15,485 $18,740
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 must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0330635 7
3044 SOUTH MCKENZIE STREET - FOLEY, ALABAMA 36535
Foley, Alabama, in Baldwin county, is 27 miles west of Pensacola, Florida and 146 miles east of New Orleans, Louisiana. The city is in the Mobile area. There are 7,590 residents in Foley. John Burton Foley founded the present-day City of Foley in the early 1900s. He also helped develop South Baldwin County. The Louisville and Nashville Railroad first entered the city in 1905. Soon after that, the city became South Baldwin County’s center for shipping the agricultural products. The city is the birthplace of Ken “The Snake” Stabler, former American football player.
Foley and nearby Attractions
• Foley Museum
• Baldwin Museum of Art
• Waterville USA
• Buck’s Pocket State Park
• Bon Secour National Wildlife Refuge
• Big Lagoon State Park
Foley offers many recreational facilities. You can visit the Foley Museum Archives Railroad Park and Baldwin Museum of Art. There are a number of parks in Foley worth visiting: John B. Foley Park, Max Griffin Park, Heritage Park, Melvin Roberts Park, Aaronville Park, and Beulah Heights Park. One can enjoy hiking and biking at the Foley Hike-Bike Trail. The Palm Plaza Shopping Center offers a great shopping experience. In addition, the city hosts several annual events and festivals such as the Gulf Coast Hot Air Balloon Festival and Heritage Harbor Days.
The nearest colleges and universities are the University of South Alabama-Baldwin, Bishop State Community College, and James H Faulkner State Community College.
Market Overview - Foley, ALABAMA
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 must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0330635 8
3044 SOUTH MCKENZIE STREET - FOLEY, ALABAMA 36535
Broker of RecordEddie Greenhalgh
Marcus & Mi l l ichap15 Richard Ar r ington Jr B lvd N, Ste 300
Bi rmingham, AL 35203Tel : (205) 510-9200Fax: (205) 510-9110License: 00008-8298
OFFICE DEPOT
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