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COLUMBIA CORNERS COLUMBIA, MS


PRICING & FINANCIAL ANALYSIS

COLUMBIA CORNERS

FINANCIAL ANALYSIS

Columbia Corners 1003 & 1005 Highway 98 Bypass Columbia, MS 39429

Offering Summary Price Cap Rate Net Operating Income Price PSF

$2,815,000 7.25% $204,115 $139.69 79.2%

Year Built

2005

Gross Leasable Area

20,867 SF

Lot Size

1.88 Acres

PROPERTY DESCRIPTION

Occupancy

MARKET OVERVIEW

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

2


PRICING & FINANCIAL ANALYSIS

Current

PSF

79.2%

$220,691

$10.58

(20.8%)

$0

$0.00

$220,691

$10.58

Base Rent - Occupied Space Base Rent - Vacant Space GROSS POTENTAL RENT

Expenses

Current

PSF

Real Estate Taxes

$33,465

$1.60

Insurance

$10,947

$0.52

$350

$0.02

$7,593

$0.36

CAM Pest Control

Exp. Reimb. $1.27

Trash Removal

Insurance

$8,670

$0.42

Electrical Repairs/Supplies

$209

$0.01

CAM

$19,498

$0.93

Roofing Repairs

$531

$0.03

Mgmt. Fee

$6,229

$0.30

Light Bulbs/Ballasts

$1,159

$0.06

$60,902

$2.92

Utilities - Water/Irrigation

$451

$0.02

$281,593

$13.49

Utilities - Electric

$3,526

$0.17

$0

$0.00

Landscape Maintenance

$10,800

$0.52

$281,593

$13.49

$24,619

$1.18

$8,448

$0.40

$77,478

$3.71

Total Exp. Reimb. GROSS POTENTIAL INCOME Vacancy Factor

0.00%

EFFECTIVE GROSS INCOME

Management Fee (% of GPI)

Expenses Real Estate Taxes

($33,465)

($1.60)

Insurance

($10,947)

($0.52)

CAM

($24,619)

($1.18)

($8,448)

($0.40)

($77,478)

($3.71)

Mgmt. Fee (% of GPI) Total Expenses

NET OPERATING INCOME

Total CAM

3.00%

TOTAL EXPENSES

3.00%

PROPERTY DESCRIPTION

$26,504

Real Estate Taxes

FINANCIAL ANALYSIS

Income & Expenses

COLUMBIA CORNERS

$204,115 MARKET OVERVIEW

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

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RENT ROLL

COLUMBIA CORNERS

Sq Ft

% of Sq Ft

Start

End

Annual Rent

PSF

Escalation Date

Escalation Amount

Options

Lease Type

1

Verizon Wireless

2,450

11.7%

2/1/2017

8/31/2020

$30,625

$12.50

-

-

-

NNN

2

Vacant

1,225

5.9%

-

-

-

-

-

-

-

-

3

VIP Nails

1,225

5.9%

11/1/2009

7/31/2018

$21,300

$17.39

-

-

-

NNN

4

B&E Fine Wine & Spirits

1,225

5.9%

10/4/2009

10/31/2019

$19,600

$16.00

-

-

-

NNN

5

Vacant

0

-

-

-

-

-

-

-

-

6

Rue 21

4,492

21.5%

4/3/2014

1/31/2020

$58,396

$13.00

-

-

-

NNN

7

Gamestop

1,610

7.7%

8/21/2008

8/31/2020

$22,540

$14.00

-

-

-

NNN

1A

Little Caesar's Pizza

2,025

9.7%

6/10/2014

6/30/2019

$22,275

$11.00

-

-

-

NNN

1B

Vacant

1,975

9.5%

-

-

-

-

-

-

-

-

3A

Vacant

1,140

5.5%

-

-

-

-

-

-

-

-

4A

Azteca Mexican Restaurant

3,500

16.8%

1/25/2016

8/31/2019

$45,955

$13.13

-

-

-

NNN

Occupied

16,527

79.2%

Vacant

4,340

20.8%

Total

20,867

100.0%

PROPERTY DESCRIPTION

Tenant

FINANCIAL ANALYSIS

Suite

$220,691

MARKET OVERVIEW

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

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TENANT INFORMATION

COLUMBIA CORNERS

FINANCIAL ANALYSIS

Tenant Overview Little Caesars Pizza, known for its HOT-N-READY® pizza and famed Crazy Bread®, is the largest carryout-only pizza chain in the world with locations in all 50 states and 18 countries and territories worldwide. Named “Best Value in America”* for the eighth year in a row, Little Caesars products are made with quality ingredients, such as fresh, never frozen, mozzarella and Muenster cheese, dough made fresh daily in every store and sauce made from farm fresh crushed tomatoes. Little Caesars Pizza was founded on May 8, 1959 by Detroit Tigers farm team shortstop Mike Ilitch and his wife (since 1955) Marian Ilitch. The first location was in a strip mall in Garden City, Michigan, a suburb of Detroit.

Tenant Ownership Years In Business Number of Locations Headquarters Website

Little Caesars Pizza Private 56 Years 4,113+ Detroit, MI www.littlecaesars.com

PROPERTY DESCRIPTION

Tenant Overview Tenant Ownership GameStop Corporation, or simply referred to as GameStop, is an American video game, consumer electronics, and wireless services retailer. The company is headquartered in Grapevine, Texas, United States, and operates 6,627 retail stores throughout the United States, Canada, Australia, New Zealand, and Europe. The company’s retail stores primarily operate under the GameStop, EB Games, and Micromania brands.

Years In Business Number of Locations Headquarters Website

GameStop Corporation Public (NYSE: GME) 32 Years 6,627+ Grapevine, TX www.gamestop.com

Tenant Overview Tenant

rue21 Inc., formerly known as Pennsylvania Fashions Inc. (as well as $9.99 Stockroom, rue21), is an American specialty discount retailer of young men and women’s casual apparel and accessories. Its clothes are designed to appeal to 11- to 17-year-olds who aspire to be 21 and adults who want to look and feel 21.

Years In Business Number of Locations

Private

MARKET OVERVIEW

Ownership

rue21 Inc. 47 Years 1,200+

Headquarters

Warrendale, PA

Website

www.rue21.com

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

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INVESTMENT HIGHLIGHTS

COLUMBIA CORNERS

FINANCIAL ANALYSIS

• 20,876-Square Foot Retail Strip -- ShadowAnchored by Walmart Supercenter • 79 Percent Occupied -- Potential Future Upside by Leasing Vacant Suites

PROPERTY DESCRIPTION

• Triple-Net Leases with Staggered Lease Turnover -- Minimal Landlord Responsibility • Complementary Mix of Tenants Including Rue 21, GameStop, Little Ceasar’s, and Several Others • Location on High Traffic Corridor -- Surrounding Retailers Include Walmart, Walgreen’s, Dollar Tree, Cato, McDonald’s, and Several Others

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

MARKET OVERVIEW

• Benefits from the Regional Retail Consumer Traffic Draw of the Walmart Supercenter

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SITE PLAN

COLUMBIA CORNERS

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

7


AERIAL MAP

COLUMBIA CORNERS

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

US

Y HW

98

MARKET OVERVIEW

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

8


LOCAL MAP

COLUMBIA CORNERS

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

9


REGIONAL MAP

COLUMBIA CORNERS

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

10


MARKET SUMMARY

COLUMBIA CORNERS

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

HATTIESBURG, MS events in southern Mississippi. The Saenger Theater in downtown hosts plays, musical artists, and conventions. The Historic Downtown Association holds an art walk several times a year to support local artists and downtown small businesses. The town also holds festivals for families, a Rennaissance Festival, a yearly concert for students of the local college, a craft beer festival, and more. Being highlighted for its youth development programs and community focus, Hattiesburg was named 2015’s Most Livable Cities in America at the U.S. Conference of Mayors.

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

MARKET OVERVIEW

Hattiesburg is a city in Mississippi, bisected by the county line between Forrest County (where it is the county seat) and Lamar County. It is the principal city of the Hattiesburg, Mississippi, Metropolitan Statistical Area which encompasses Forrest, Lamar and Perry counties. Hattiesburg is home to several national business branches that hold thousands of jobs across the Pine Belt. It was headquarters to the now defunct International Filing Company and currently hosts branches of Kohler Engines and BAE Systems Inc., as well as the CocaCola Bottling Co., Pepsi Cola Bottling Co., and Budweiser Distribution Co. Companies such as Sunbeam (shared with Mr. Coffee and the Coleman Company) and Kimberly Clark used to manufacture in Hattiesburg. Though Hattisburg is not the biggest city, it has some of the best art and cultural

11


DEMOGRAPHIC SUMMARY

COLUMBIA CORNERS

Geography: 10

FINANCIAL ANALYSIS

Population In the identified area, the 2016 population was 20,646. The rate of change since 2000 was 1.96%. The five-year projection for the population in the area was 20,097 representing a change of -2.66% from 2016 to 2021. The population was 48.4% male and 51.6% female. The median age in this area was 38.7, compared to the U.S. median agoe of 38.0.

Households In 2016, there were 7,704 households in your selected georgraphy. The number of households changed by 4.86% since 2000. It is estimated that the number of households in your area will be 7,519 in 2021, which represents a change of -2.40% in five years. The average household size in your area was 2.59 persons.

Income PROPERTY DESCRIPTION

In 2016, the median household income for your selected georgraphy was $32,738, compared to the Entire U.S. average, which was $54,149. It is estimated that the median household income in your area will be $35,369 in 2021, which represents a change of 8.04% from 2016. The per capita income in your area was $19,475, compared to the Entire U.S. average, which was $29,472. The average household income in your area was $50,999, compared to the Entire U.S. average, which was $77,008.

Race and Ethnicity The 2016 racial makeup of your selected area was as follows: 63.8% White, 33.9%, 0.2% Native American and 0.4% Asian/Pacific Islander. Compare these to the Entire U.S. Averages which were: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin made up 1.5% of the 2016 population in your selected area. Compare this to the Entire U.S. average of 17.9%.

Housing MARKET OVERVIEW

In 2016, there were 5,699 owner occupied housing units in your area and there were 2,005 renter occupied housing units in your area. Median home value in the area was $93,798, compared to a median home value of $198,891 for the U.S.

Employment In 2016, there were 7,844 employees in your selected area, this is also known as the daytime population. 52.3% of those employees were employed in white-collar occupations in this geography, and 30.4% were employed in blue-collar occupations. In 2016, unemployment in this area was 10.3%. Demographic data Š 2016 esri 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

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DEMOGRAPHIC STATISTICS

COLUMBIA CORNERS 3 Mile

5 Miles

10 Miles

Income

3 Mile

5 Miles

10 Miles

2000 Population

9,395

12,163

20,250

$ 0 - $14,999

25.6%

24.9%

23.9%

2010 Population

9,337

12,392

21,277

$ 15,000 - $24,999

15.9%

15.9%

15.7%

2016 Population

9,016

11,932

20,646

$ 25,000 - $34,999

11.5%

11.5%

12.6%

2021 Population

8,748

11,569

20,097

$ 35,000 - $49,999

12.7%

12.3%

12.0%

$ 50,000 - $74,999

12.3%

13.8%

15.8%

$ 75,000 - $99,999

8.2%

7.9%

7.2%

$100,000 - $149,999

7.2%

7.1%

7.4%

3.8%

3.9%

3.6%

3 Mile

5 Miles

10 Miles

$200,000 +

2.8%

2.5%

1.7%

2000 Households

3,381

4,397

7,347

2016 Median Household Income

$31,783

$32,427

$32,738

2010 Households

3,420

4,576

7,906

2016 Per Capita Income

$20,689

$20,414

$19,475

2016 Households

3,292

4,407

7,704

2016 Average Household Income

$53,750

$53,143

$50,999

2021 Households

3,195

4,279

7,519

2016 Daytime Population

3,125

4,340

7,844

2016 Average Household Size

2.52

2.54

2.59

2010 Owner Occupied Housing Units

57.7%

60.8%

65.9%

2010 Renter Occupied Housing Units

65.9%

25.8%

20.5%

2010 Vacant

13.4%

13.4%

13.6%

2016 Owner Occupied Housing Units

53.2%

56.5%

62.5%

2016 Renter Occupied Housing Units

30.5%

27.3%

22.0%

2016 Vacant

16.3%

16.2%

15.5%

2021 Owner Occupied Housing Units

51.8%

55.2%

61.4%

2021 Renter Occupied Housing Units

29.9%

26.8%

21.6%

2021 Vacant

18.4%

18.0%

16.9%

PROPERTY DESCRIPTION

$150,000 - $199,999 Households

FINANCIAL ANALYSIS

Population

Traffic Counts

MARKET OVERVIEW

23,000

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

13


CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Vitorino Group and it should not be made available to any other person or entity without the written consent of Vitorino Group. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Vitorino Group. This offering memorandum has been prepared to provide summary, unverified financial and physical 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. Vitorino Group 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, PCBs or asbestos, the compliance with local, 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 offering memorandum has been obtained from sources we believe to be reliable; however, Vitorino Group has not verified, and will not verify, any of the information contained herein, nor has Vitorino Group 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE VITORINO GROUP AGENT FOR MORE DETAILS.


Net Lease Disclaimer Vitorino Group hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, the Vitorino Group has not and will not verify any of this information, nor has the Vitorino Group conducted any investigation regarding these matters. The Vitorino Group makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. The Vitorino Group expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release The Vitorino Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.


Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

B

Information About Brokerage Services

efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly. IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent. IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent. IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an

intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.


exclusively listed 469.844.8880 | VITORINOGROUP.COM


Columbia Corners - Columbia, MS