WATSON TRACT AIKEN, SC
Confidential Offering Memorandum
CONFIDENTIALITY AND DISCLAIMER This Offering Memorandum contains select information pertaining to the business and affairs of the property in Murfreesboro, TN. It has been prepared by Hyatt Place. This Offering Memorandum may not be all-inclusive or contain all the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Minority Stake in Counting Donuts, LLC. It is not to be used for any other purpose or made available to any other person without the written consent of the Operator. The material is based in part upon information supplied by the Operator and in part upon financial information obtained by Hyatt Place from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Hyatt Place, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; 3. All photographs and graphic elements are property of Hyatt Place and use without expressed written permission is prohibited; and 4. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner.
The Operator expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Minority Stake in Counting Donuts, LLC and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Minority Stake unless and until a written agreement for the purchase and sale of the Minority Stake has been fully executed and delivered. If you wish not to pursue to the acquisition of the Minority Stake then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, or information provided herein or in connection with the sale of the Minority Stake shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Operator or Hyatt Place or any of their affiliates or any of their respective officers, directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Minority Stake. This Offering Memorandum shall not be deemed to represent the state of affairs of Counting Donuts, LLC or constitute an indication that there has been no change in the state of affairs of the LLC since the date of this Offering Memorandum.
CONTENTS EXECUTIVE SUMMARY
4
PROPERTY DETAILS
6
MARKET INFORMATION
9
FINANCIAL PERFORMANCE
16
EXECUTIVE OVERVIEW Watson Tract Aiken, SC
4
Confidential Offering Memorandum
151 Developable Lots 63 Total Acreage
Near Bridgestone, Savannah River Site, Aiken Regional, Aiken Technical College, NovaTech, Emerson ASCO, KimberlyClark
EXECUTIVE OVERVIEW Anticipated opening in 2020 Hyatt Place (“the Property”), located at 2222 Medical Center Parkway, Murfreesboro, TN. The Hyatt Place is a select service hotel, featuring 116 streamlined rooms and suites. The spacious guest rooms feature work centers equipped with free Wi-Fi, bathrooms with granite countertops and Hyatt’s signature Cozy Corner with a sofa-sleeper. The Property is strategically located in Aiken right off I-20, within walking distance to Saint Thomas Rutherford Hospital, and nearby amenities such as The Avenue, Stones River Town Centre, Go USA Fun Park, Fountains at Gateway, restaurants and local bars. The Murfreesboro submarket has a unique mix of demand generators. The area has developed into its own corporate center with large medical centers, expanding retail, and Class A office space, such as the Fountains at Gateway a new mixed use development featuring 70,000 SF of retail space and 400,000 SF of office space. 5
PROPERTY DETAILS Watson Tract Aiken, SC
6
Confidential Offering Memorandum
AMENITIES STATE-OF-THE-ART FITNESS ROOM PUBLIC COMPUTERS IN COMMON AREA GUEST ROOMS EQUIPT WITH HYATT GRAND BEDS AND SPACIOUS WORK CENTERS MEETING SPACE WITH PRE-FUNCTION AREA OUTDOOR HEATED POOL WITH PATIO AND FIREPLACE LOBBY GALLERY OFFERING HIGH SPEED TECHOLOGY, COFFEE TO COCKTAIL BAR, AND AMPLE SEATING
7
MARKET INFORMATION Aiken, SC
9
Confidential Offering Memorandum
MARKET HIGHLIGHTS
Economy & Tourism •
Ranked the 8th fastest growing midsize city in the United States
•
Ranked 6th as the best best real estate market in the nation
•
2018 total county retail sales of $6.5 billion
•
20179travel related expenditures of $351 million
48,319
20,743
$76,500
$174,000
Population
Households
Household Income
Median Home Sales Price
Healthcare • •
Aiken Regional Medical Centers University Primary Care
Transportation
Education •
•
University of South Carolina at Aiken
•
In close proximity to I-20
•
Home to the Aiken Municipal Airport and located in between the Augusta Regional Airport and Columbia Metropolitan Airport
•
The M
Aiken Technical College
Popular Restaurants and Entertainment Surrounding Hyatt Place Murfreesboro 10
Hospitals and Medical Facilities Surrounding Hyatt Place Murfreesboro 11
MURFREESBORO TENNESSEE Located southeast of Nashville, in the exact geographic center of Tennessee, the community captures a unique blend of Civil War history and a vibrant, thriving business community. Featuring a wide range of activities, from cheering on the Middle Tennessee State University Blue Raiders to walking the Greenway or attending a concert or play. One of the Top 10 Fastest Growing Cities in the U.S., as well as ranked in Time Magazine’s Top 20 “Best Places to Live in America.”
ECONOMY The economy is strengthened by entrepreneurial local business, medical facilities, and global enterprises. According to Time Magazine, experts predict a 10% increase in job creation over the next four years. In 2016, 2,045 new jobs were created and $401M in capital investments were deployed. The following year an additional 1,500 jobs were created with $389 made in capital investments. Last year, more than a dozen companies relocated to Murfreesboro resulting in an additional 1,187 jobs. Over the past decade more than 4 million SF of retail has been built. 12
MAJOR EMPLOYERS The region is home to numerous Fortune 500 and Global 500 companies in diverse industries. The strength of the Middle Tennessee economy along with the aspiration to live in a high-quality region makes the community very desirable. Company Savannah River Solutions
Product/Service Nuclear Power
Kimberly-Clark Emerson ASCO Bridgestone MTU America Autoneum North America Metso Paper Newman Technology BAE Systems BOC Gases Shinisho AMerican 13
City of Murfreesboro
Tire Manufacturer
Employees 11,000
HEALTHCARE
Aiken Regional Medical Center was opened in 1917, and has 273 beds, 183 physicians representing 40-plus specialties, and over 1,110 associates. University Primary Care services include the diagnosis and management of simple and chronic health problems as well as management of all acute, chronic, simple and complex medical issues of adults. University Prompt Care offers walk-in appointments for non-lifethreatening conditions.
14
EDUCATION Home to two award-winning school systems, the largest undergraduate university in Tennessee and a wide array of professional and technical education offerings. The Rutherford County Schools system consistently ranks among the best school districts in Tennessee and has outpaced national rankings on several measures. It’s the fifth largest district in the state, behind those in Memphis, Nashville, Knoxville and Chattanooga. Since the 2000-2001 school year, Rutherford County Schools has added more than 15,000 students for a total enrollment of more than 41,000. During that time, the district has opened over 17 new schools and completed renovations at nine other schools. Middle Tennessee State University was founded in 1911, has close to 23,000 students and offers more than 140 undergraduate and 100 graduate degree programs. Home of the Blue Raiders Football team, with a stadium capacity of 30,788 thousand, drawing a large attendance in the fall each year. Tennessee College of Applied Technology serving as the leading providers for workforce development by offering high quality training and retraining of employed workers, and competency-based training in various types of instructional delivery systems
15
FINANCIAL PERFORMANCE
16
Confidential Offering Memorandum
DEVELOPMENT BUDGET
17
INVESTMENT ANALYSIS
18
INVESTOR CASH SCHEDULE
19
EXCLUSIVE INVESTMENT ADVISORS FOR M&E HOSPITALITY Phone:
Email:
MASON MCKNIGHT III Partner
706.564.0141
masoniii@acccon.net
JOHN ENGLER Partner
706.513.9525
jengler@mckproperties.net
BRIAN SWEETING Financial Analyst
706.414.0244
bsweeting@frontageinvestments.com
BRIANNA HAMBY Director of Marketing
518.461.1441
bhamby@mckproperties.net