J2 | CVS | Autozone OM

OFFERING MEMORANDUM

168-170 E Main Street Geneva, OH 44041

JASON GRIBIN

PIERCE SCHNEIDER

818.231.4670 jordan.uttal@j2capa.com CA DRE #01512755

310.867.9311 jason.gribin@j2capa.com CA DRE #01819611

858.401.0214 pierce.schneider@j2capa.com CA DRE #02119195

Ωv

JORDAN UTTAL

01

INVESTMENT SUMMARY

The Offering

02

FINANCIALS

Tenant Overview

Investment Highlights

03

AREA OVERVIEW

04

AMENITIES MAP

Geneva, OH

Nearby Retail and

Demographics

Amenities

Property Photos

JORDAN UTTAL

JASON GRIBIN

Co-Founder & Managing Partner

Co-Founder & Managing Partner

818.231.4670 jordan.uttal@j2capa.com

310.867.9311 jason.gribin@j2capa.com

CA DRE #01512755

CA DRE #01819611

INVESTMENT SUMMARY

TABLE OF CONTENTS

PIERCE SCHNEIDER Associate 858.401.0214 pierce.schneider@j2capa.com CA DRE #02119195

In Conjunction with Bang Realty, Inc. Brian Rockman LIC BRK.2009000214

All materials and information received or derived from J2 Capital Advisors its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters. Neither J2 Capital Advisors its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. J2 Capital Advisors will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. J2 Capital Advisors makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. J2 Capital Advisors does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by J2 Capital Advisors in compliance with all applicable fair housing and equal opportunity laws. Each Office Independently Owned & Operated. DRE# 01428774

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INVESTMENT SUMMARY

INVESTMENT SUMMARY

INVESTMENT SUMMARY THE OFFERING ADDRESS

168-170 E Main Street Geneva, OH 44041

PRICE

$1,608,154

ANNUAL NOI

$114,983

CAP RATE

7.15%

LEASE GUARANTOR(S)

AutoZone, Inc. and CVS Caremark Corporation

LEASE TYPE

NN (Expenses Reimbursed)

LANDLORD RESPONSIBILITIES

Roof and Structure

New roof installed in 2020, 20 year warranty

PROPERTY SPECIFICATIONS

4

TOTAL RENTABLE AREA

20,120 SF

LAND AREA

79,279 SF (1.82 AC)

YEAR BUILT/RENOVATED

1960/2021

PARCEL NUMBER

20-021-00-064-00

OWNERSHIP

Fee Simple (Building & Land) O F F E R I N G M E M O R A N D U M | J 2 C A P I TA L A D V I S O R S

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INVESTMENT HIGHLIGHTS INVESTMENT SUMMARY

• Cleveland MSA has over 2 million people.

• Ohio has 276 AutoZone stores, making it the state with the third most locations.

EACH TENANT HAS ALREADY PICKED UP OPTIONS • This demonstrates commitment to this site and signifies strong sales.

• Each tenant has operated at this location since the mid 90’s.

COVID-19 RESISTANT TENANTS • CVS sales rose in both the pharmacy and the front of the store as customers filled more prescriptions, got Covid-19 tests, and filled up bigger baskets of items of over-the-counter items.

INVESTMENT SUMMARY

#2 PERFORMING AUTOZONE IN THE CLEVELAND DIVISION

• CVS has the strongest credit profile amongst the three largest drug stores.

• AutoZone has been an essential business throughout the COVID-19 pandemic. EPS in Q1 of 2021 was 30% higher than Q1 of 2020. Customers spent more money to fix their current car’s rather than purchase new vehicle’s.

EXCELLENT RETAIL POSITIONING • Other nearby national tenants include U.S. Bank, Domino’s, and Circle K. • Less than 1.5 miles from Geneva High School/Middle School, R Spencer Platt Elementary School, and UH Geneva Medical Center.

RARE CVS STORE • Only CVS in a 20-mile radius to have nurse’s offices.

• CVS spent over $30,000 renovating the store in the last month to construct these offices.

RECENT RENOVATIONS • New roof installed in 2020 for roughly $200,000 and has a 20-year warranty.

• New drainage system recently installed for $10,000.

• Parking lot recently renovated for $120,000.

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FINANCIALS

CVS HEALTH CVS Health Corporation is engaged in the retail drugstore business. The company operates 9,900+ locations in 49 states, the District of Columbia, Puerto Rico, and Brazil.

CVS Pharmacy is a publicly traded company on the New York Stock Exchange (Symbol: CVS) with a market capitalization in excess of $80 billion. CVS is an investment grade rated tenant with a Standard & Poor’s rating of BBB. The company has launched assertive growth plans in recent quarters. CVS is currently the only integrated pharmacy healthcare company with the capability to have an influence on consumers, payors, and providers with innovative resolutions. They have a profound outlook of their diverse needs through their unique integrated model, and are bringing them innovative solutions that help increase access to quality care, deliver better health outcomes and lower overall health care costs.

MARKET LEADING TENANT

CVS Health Corporation is engaged in the retail drugstore business. The company operates 9,900+ locations in 49 states, the District of Columbia, Puerto Rico and Brazil. CVS Pharmacy is the nation’s drugstore chain and total prescription revenue.

CVS is headquartered in Woonsocket, Rhode Island and was founded in 1963.

In December of 2017, CVS announced it would buy Aetna for more the $69 billion. This acquisition would combine CVS’ drugstores and pharmacy benefits manager platform with Aetna’s insurance business. This merger brings together two complementary businesses with unique capabilities, the goal being to reshape the consumer heath care experience, putting people at the center of health care delivery to ensure they have access to high-quality, more affordable care.

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CVS HEALTH COMPANY

LEASE SUMMARY

PARENT COMPANY

MONTHLY NOI

$5,777

LEASE COMMENCEMENT

May 9, 1994

LEASE EXPIRATION

December 31, 2024

OPTIONS

None remaining

INCREASES

None remaining

SQUARE FOOTAGE

10,580 SF approximately

% OF TOTAL RENT

60%

RENT/SF

$0.54

LEASE TYPE

NN (Expenses Reimbursed)

USE

Auto Parts

PROPERTY TAXES

Tenant’s Responsibility

INSURANCE

Tenant’s Responsibility

COMMON AREA

Tenant’s Responsibility

ROOF & STRUCTURE

Landlord’s Responsibility

REPAIRS & MAINTENANCE

Tenant’s Responsibility

HVAC

Tenant’s Responsibility

UTILITIES

Tenant’s Responsibility

CVS NYSE

BBB/STABLE CREDIT RATING (S & P)

$268.7B TOTAL REVENUE (2021)

300,000 TOTAL EMPLOYEES

WOONSOCKET, RI HEADQUARTERS

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FINANCIALS

TENANT OVERVIEW

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FINANCIALS

AUTOZONE For more than 30 years, AutoZone has been committed to providing the best parts, prices and customer service in the automotive aftermarket industry. We have a rich culture and history of going the Extra Mile for our customers and our community.

AutoZone is the nation’s leading retailer and a leading distributor of automotive replacement parts and accessories with more than 5,000 stores in US, Puerto Rico, Mexico, and Brazil. Each store carries an extensive line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured hard parts, maintenance items and accessories.

AutoZone also sells automotive diagnostic and repair software through ALLDATA, diagnostic and repair information through alldatadiy.com, and auto and light truck parts and accessories through their website. Autozone has been committed to providing the best parts, prices and customer service in the automotive aftermarket industry. Since opening its first store in Forrest City, Ark. on July 4, 1979, the company has joined the New York Stock Exchange (NYSE: AZO) and earned a spot in the Fortune 500.

SUTO PARTS

LEASE SUMMARY

SECTOR

1979

MONTHLY NOI

$3,805 (as of October 1, 2021)

YEAR FOUNDED

LEASE COMMENCEMENT

September 8, 1995

LEASE EXPIRATION

September 30, 2026

OPTIONS

Two, 5-year

INCREASES

10% Every 5 years

MEMPHIS, TN

SQUARE FOOTAGE

9,540 SF approximately

HEADQUARTERS

% OF TOTAL RENT

40%

RENT/SF

$0.40

LEASE TYPE

NN (Expenses Reimbursed)

USE

Auto Parts

PROPERTY TAXES

Tenant’s Responsibility

INSURANCE

Tenant’s Responsibility

COMMON AREA

Tenant’s Responsibility

ROOF & STRUCTURE

Landlord’s Responsibility

REPAIRS & MAINTENANCE

Tenant’s Responsibility

HVAC

Tenant’s Responsibility

UTILITIES

Tenant’s Responsibility

PUBLIC OWNERSHIP

60,000 LOCATIONS

AUTOZONE INC. (NTSE:AZO) TICKER

S&P: BBB CREDIT

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FINANCIALS

TENANT OVERVIEW

13

Geneva is a city in Ashtabula County, Ohio. It is located just 45 miles northeast of Cleveland, which is the 32nd most populous metropolitan country in the county with over 2 million people.

GENEVA, OH Geneva is a city in Ashtabula County, Ohio. The area which would become Geneva was originally settled in 1805, and was incorporated as a city in 1958.

It is named after Geneva, New York. Ashtabula County comprises the Ashtabula, OH Micropolitan Statistical Area, which is also included in the Cleveland–Akron– Canton, OH Combined Statistical Area. According to 2016 United States Census estimates, the five-county Cleveland–Elyria Metropolitan Statistical Area (MSA) consists of Cuyahoga County, Geauga County, Lake County, Lorain County, and Medina County. This MSA has a population of 2,055,612 making Greater Cleveland the 32nd most populous metropolitan area in the United States and the largest metro entirely in Ohio. Greater Cleveland is also part of the Great Lakes Megalopolis.

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The most common occupation in the city of Geneva is in education and health services. This is due to the great elementary schools, middle schools, and high schools in the area. The most noticeable of these schools is Spire Institute and Academy, where young NBA star Lamelo Ball played. Additionally, Geneva is home to HDT Global, which is one of the largest air conditioning, heating, and filtration manufactures in the nation and has received over $100 million in U.S. Department of Defense contracts. This economic strength of the city has allowed the population to hold steady.

POPULATION

1 Mile

3 Miles

5 Miles

2010 POPUL ATION

5,816

10,446

18,844

2021 POPUL ATION

5,651

10,141

18,513

2026 POPUL ATION PROJEC TION

5,623

10,089

18,469

HOUSEHOLDS

1 Mile

3 Miles

5 Miles

2010 HOUSEHOLDS

2,313

4,155

7,411

2021 HOUSEHOLDS

2,232

4,004

7,238

2026 HOUSEHOLD PROJEC TIONS

2,218

3,977

7,214

INCOME

1 Mile

3 Miles

5 Miles

AVG HH INCOME

$57,322

$59,841

$64,576

MEDIAN HH INCOME

$34,079

$38,764

$45,153

AREA OVERVIEW

AREA OVERVIEW

AREA OVERVIEW

DEMOGRAPHICS

TRAFFIC

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Collection Street

Cross Street

Traffic Volume Last Meas.

Distance

East Main St

Woodlan St NE

8,950

2020

0.05

E Main St

Cedar St NE

8,894

2017

0.05

E Main St

Woodlawn St NE

8,346

2018

0.05

N Broadway St

Loveland Ct N

4,950

2016

0.17

North Broadway St

Loveland Ct N

4,667

2020

0.17

E Main St

S Cedar St NE

8,303

2020

0.18

E Main St

S Cedar St NE

7,959

2018

0.18

E Main St

Cedar St W

8,890

2017

0.25

15

Frito Lay

3

Circle K

4

Capo’s Pizza

5

Honeybee’s

6

Clark Gas

7

Hong Kong King Buffet

8

Rosemary’s Pizza

9

Dollar Tree

10

Geneva Car Wash

11

Na Kyrsie Meats

12

Mary’s Diner

13

Quick Car

22

2

3

4

21

6

7

8

9

12

5

13

Y

2

11

WA

Reese’s Auto Services

W

M

AI

N

R ST

EE

T

AD

1

10

SB RO

AMENITIES MAP

W MAIN STREET

AMENITIES MAP

AMENITIES MAP

20 19

1

18

S BROADWAY

16

14

Pizza Hut

15

Giant Eagle Supermarket

16

Dollar General

17

Rite Aid

18

Old Mill Winery

19

Bouts & Bouquets Flower Shop

20

Huntington Bank

21

Beverage Depot

22

Domino’s Pizza

17 15

16

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EXCLUSIVELY LISTED BY: JORDAN UTTAL

JASON GRIBIN

PIERCE SCHNEIDER

213.225.7246 jordan.uttal@email.com CA DRE #01512755

213.225.7245 jason.gribin@email.com CA DRE #01819611

858.401.0214 pierce.schneider@j2capa.com CA DRE #02119195