Bob Havasi Dan Cooper
Bob Havasi
[email protected] (888) 525-5695 x10
Cooper Commercial Investment Group 6120 Parkland Blvd., Suite 206 Cleveland, OH 44124 www.coopergrp.com
Dan Cooper
[email protected] (888) 525-5695 x12 In Connection with Licensed Georgia Broker
INVESTMENT SUMMARY Investment Highlights ….....…………………… 4 Investment Overview ……….……..………….. 5 Location Overview………………....……………. 6 FINANCIAL ANALYSIS Rent Roll ……………….……………………………. 8 Offering Summary & Financial Analysis.... 9 PROPERTY ANALYSIS Site Plan ..….………………….………………...….... 11 Aerial Maps ………………………………………… 12 Location Maps .……………………………………. 13 Demographics .……………………………………. 14 TENANT ANALYSIS Tenant Profiles …….……………………………… 16-17 Disclosure & Confidentiality …...……………. 18
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The Forts Shopping Center INVESTMENT HIGHLIGHTS
100% Occupied, Two-Tenant Trophy Moe’s Southwest Grill and Supercuts (NYSE: RGS) Center: Adjacent to Shadow Anchor Walmart Supercenter and Outlot to a Hobby Lobby, PetCo and Marshall’s Power Center
High Visibility and Great Accessibility Off Main Roadway (31,500 VPD) with Attractive, Contemporary Curb Appeal, Prominent Pylon Signage and Ample Parking
New 2016 Construction with Long-Term, 10-Yr. Leases In Place and Mid-Term Rental Increases: Regis Corp. Backed Supercuts & Personally Guaranteed Moe’s Lease
Growing Chattanooga MSA: Ranked 8th Out of America's 100 Largest Metro Areas for the “Best Bang For Your Buck,” According to Forbes Magazine
Strong Demographics in One of Chattanooga’s Up & Coming Areas: Avg. Household Incomes Over $63,500 Within 1-Mile and Direct Access to High Population Density of Nearly 262,000 People Within 10-Miles in the Chattanooga MSA
Immediate Vicinity of a Heavy Concentration of Other Commercial Properties and a Vast Amount of National Retailers: Buffalo Wild Wings, Mattress Firm, Panera Bread, Mattress Firm, Ross Dress for Less, Aspen Dental, GameStop & More
4
INVESTMENT OVERVIEW The Cooper Commercial Investment Group has been exclusively retained by ownership to sell the 100% fee simple interest in The Forts Shopping Center, a 4,200 S.F. center boasting high-profile tenants, Moe’s Southwest Grill and Regis Corporation backed Supercuts. The property is located in the highly desirable bedroom community of Fort Oglethorpe, Georgia, a suburb of Chattanooga, Tennessee. The City of Fort Oglethorpe is positioned in a tri-state corridor being located in Georgia, a suburb of Chattanooga, Tennessee and only 35 miles to Alabama. The property is being offered for $1,900,000, representing a 6.41% CAP Rate. Both tenants took possession and opened for business in 2016 on new, 10-year NNN leases. This makes a very stable asset to an investor with the popular tenants’ having 9 years of original term remaining with mid-term rental increases for both tenants. The attractive 2016 contemporary construction is 100% occupied and center’s advantageous location welcomes the tenants’ success and desire to be located at the property. Additionally, with the property’s young age, an investor will have minimal repairs and maintenance responsibilities with the new 25 ton HVAC unit, along with a transferrable roof warranty on the EPDM rubber roofing system. The center offers 10 foot wide sidewalks that could accommodate patio seating in the future. The property is surrounded by retail and sits as an outlot to a power center, which includes Marshalls, PetCo, and Hobby Lobby, while being adjacent to the Walmart Supercenter. The Forts Shopping Center is also surrounded by many complimentary national retailers, including Buffalo Wild Wings, Panera Bread, Mattress Firm, Ross, Hibbett Sports, GameStop, Verizon and many, many more. The property has highly visible frontage and is located in the main shopping district of the city directly off the heavily traveled Battlefield Parkway creating easy access. Traffic counts along Battlefield Parkway are approximately 31,500 vehicles per day. The tenants located at the center benefit strongly from being positioned just outside of Chattanooga with the direct access to the large population base of nearly 262,000 people within 10-miles. Furthermore, the Chattanooga MSA is supported by several major employers, including Access America Transport, BlueCross BlueShield of Tennessee, CBL & Associates, Chattem, the world's first Coca-Cola bottling plant, Coker Tire, FSGBank, Gordon Biersch Brewery Restaurant Group, Republic Parking System, and U.S. Xpress Enterprises Inc. The city also hosts large branch offices of Cigna, AT&T, T-Mobile USA and UBS. Recently, Volkswagen Group of America inaugurated its Chattanooga Assembly Plant. The $1 billion plant, opened and serves as the group's North American manufacturing headquarters. Other notable companies that have distribution facilities in the city include Alstom, Amazon.com, BASF, DuPont, Invista, Komatsu, Rock-Tenn, Plantronics, Domtar Corp., Norfolk Southern, Alco Chemical, Colonial Pipeline and Buzzi Unicem. The William Wrigley Jr. Company has a prominent presence in Chattanooga, now the sole production facility for Altoids breath mint products.
5
LOCATION OVERVIEW Fort Oglethorpe is located only 5 minutes from Chattanooga, Tennessee, and is part of the Chattanooga, TN–GA Metropolitan Statistical Area. The suburb of Chattanooga is located approximately 90 minutes north of Atlanta, Georgia. The City of Fort Oglethorpe is positioned in a tri-state corridor being located in Georgia, a suburb of Chattanooga, Tennessee and only 35 miles to Alabama. Fort Oglethorpe is a fascinating city with a history rich in local and national color. The city is home to the 6th Cavalry and the WAC’s. Generations of Americans serving their country entered or left their service through the gates of the city. Fort Oglethorpe also serves as the entrance to the Chickamauga National Military Park, the oldest and largest of America’s Civil War Parks. Fort Oglethorpe, Chattanooga, and the Tennessee River Valley, are wonderful places to live, to visit, and remember. Chattanooga is the 4th largest city in the state of Tennessee. The local economy includes a diversified and growing mix of manufacturing and service industries. "Sustainability" is a key concept for industry and government working together for enlightened development. Notable Chattanooga businesses include Access America Transport, BlueCross BlueShield of Tennessee, CBL & Associates, Chattem, the world's first Coca-Cola bottling plant, Coker Tire, FSGBank, Gordon Biersch Brewery Restaurant Group, Republic Parking System, and U.S. Xpress Enterprises Inc. The city also hosts large branch offices of Cigna, AT&T, T-Mobile USA and UBS. Recently, Volkswagen Group of America inaugurated its Chattanooga Assembly Plant. The $1 billion plant, opened and serves as the group's North American manufacturing headquarters. Other notable companies that have distribution facilities in the city include Alstom, Amazon.com, BASF, DuPont, Invista, Komatsu, Rock-Tenn, Plantronics, Domtar Corp., Norfolk Southern, Alco Chemical, Colonial Pipeline and Buzzi Unicem. The William Wrigley Jr. Company has a prominent presence in Chattanooga, now the sole production facility for Altoids breath mint products. In addition to corporate business interests, there are many retail shops in Chattanooga, including three shopping malls: Hamilton Place, Eastgate Mall and Northgate Mall in Hixson. The Tennessee Aquarium has become a major waterfront attraction that has helped to spur development. Chattanooga has garnered numerous accolades for its transformation of its image. The city has won three national awards for outstanding "livability," and nine Gunther Blue Ribbon Awards for excellence in housing and consolidated planning. Chattanooga is ranked 8th out of America's 100 largest metro areas for the “Best Bang for Your Buck", according to Forbes Magazine. The city draws over a million tourists to its main attractions, such as the Tennessee Aquarium, Rock City, Ruby Falls, Civil War monuments of Battlefield Parkway. Additionally, The University of Tennessee at Chattanooga is the second largest campus of the University of Tennessee System, with a student population of over 10,000. Chattanooga State Community College is a two-year community college with a total undergraduate enrollment of roughly 11,000 students. Tennessee Temple University is a Baptist college located in the Highland Park neighborhood. Chattanooga is also home to a branch of the University of Tennessee College of Medicine, which provides medical education to third and fourth year medical students, residents, and other medical professionals in southeast Tennessee.
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Tenant
Total Building
GLA
% of Total
Tenant Since
Lease Start
Lease Expiration
Rent/ S.F.
Annual Rent
Lease Type
Rental Bumps
Option Rate
3,000
71.43%
2016
7/28/2016 7/31/2026
$30.00
$90,000
NNN
(3) 5-Yr. Years 11-15: $36.30/SF 8/1/2021: $33.00/SF Years 16-20: $39.93/SF Years 21-25: $43.92/SF
1,200
28.57%
2016
8/6/2016
$28.00
$33,600
NNN
(2) 5-Yr. 9/1/2021: $30.80/SF Years 11-15: $33.88/SF Years 16-20: $37.27/SF
$29.43
$123,600
4,200 100.00%
8/31/2026
8
SUMMARY
Pro Forma 2017 2017 $/SF
$1,900,000
Price:
4,200 S.F.
Gross Leasable Area:
$452.38
Price/SF:
$121,813
NOI: CAP Rate:
6.41%
Year Built:
2016 Approx. 0.702 Acres
Lot Size:
$
123,600
$
29.43
$
6,250 10,500 2,100 685 143,135
$
1.49 2.50 0.50 0.16 34.08
$
143,135
$
34.08
$
$
$
2,472 10,500 2,100 6,250 21,322
$
0.59 2.50 0.50 1.49 5.08
$
121,813
$
29.00
2016 - 10Yr.
Roof/Transferrable Warranty:
EPDM Rubber Roofing
Roof Type:
INCOME: Potential Rental Income Rental Income Tenant Reimbursements CAM Real Estate Taxes Insurance Admin. Fee Gross Potential Rental Income Effective Gross Income OPERATING EXPENSES:
Concrete/Stone/Steel
Exterior:
25 Tons Total
HVAC:
10’ Width
Sidewalks:
Operating Data
Management Fee Real Estate Taxes Insurance CAM Total Expenses
2.00%
Rental Income:
$123,600
Net Operating Income
Tenant Reimbursements:
$19,535
Pricing Analysis
Potential Gross Income:
$143,135
Effective Gross Income:
$143,135
Net Operating Income
$
121,813
$
29.00
Expenses:
$21,322
Capitalization Rate Valuation
6.41% $ 1,900,000
$
6.41% 452.38
NOI:
$121,813
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11
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67 Parkway Drive 1 mi radius
3 mi radius
5 mi radius
10 mi radius
2016 Estimated Population 2021 Projected Population 2010 Census Population 2000 Census Population Projected Annual Growth 2016 to 2021 Historical Annual Growth 2000 to 2016 2016 Median Age
1,826 1,872 1,682 1,073 0.5% 4.4% 42.8
24,047 24,794 22,917 18,837 0.6% 1.7% 41.2
76,357 78,778 74,556 66,957 0.6% 0.9% 40
261,895 270,106 253,415 229,840 0.6% 0.9% 38.2
2016 Estimated Households 2021 Projected Households 2010 Census Households 2000 Census Households Projected Annual Growth 2016 to 2021 Historical Annual Growth 2000 to 2016
753 779 697 431 0.7% 4.7%
9,816 10,230 9,286 7,609 0.8% 1.8%
31,680 33,283 30,374 27,356 1.0% 1.0%
106,909 112,611 101,031 92,257 1.1% 1.0%
2016 Estimated White 2016 Estimated Black or African American 2016 Estimated Asian or Pacific Islander 2016 Estimated American Indian or Native Alaskan 2016 Estimated Other Races 2016 Estimated Hispanic
88.0% 5.0% 4.4% 0.2% 2.4% 1.8%
89.6% 4.2% 2.6% 0.2% 3.4% 2.9%
88.5% 5.4% 2.0% 0.4% 3.7% 3.7%
69.8% 23.3% 2.1% 0.4% 4.4% 5.2%
$63,544 $55,868 $26,480
$54,268 $45,818 $22,232
$53,903 $44,820 $22,437
$59,947 $46,881 $24,759
2016 Estimated Elementary (Grade Level 0 to 8) 2016 Estimated Some High School (Grade Level 9 to 11) 2016 Estimated High School Graduate 2016 Estimated Some College 2016 Estimated Associates Degree Only 2016 Estimated Bachelors Degree Only 2016 Estimated Graduate Degree
3.6% 12.0% 35.7% 20.9% 11.2% 12.6% 4.1%
3.4% 12.9% 32.4% 23.4% 9.7% 10.9% 7.2%
4.9% 11.7% 33.1% 23.9% 8.1% 11.9% 6.4%
5.2% 10.7% 30.2% 23.4% 7.3% 15.1% 8.1%
2016 Estimated Total Businesses 2016 Estimated Total Employees 2016 Estimated Employee Population per Business 2016 Estimated Residential Population per Business
287 2,942 10.3 6.4
1,187 10,302 8.7 20.3
3,019 27,678 9.2 25.3
14,971 182,558 12.2 17.5
Fort Oglethorpe, GA 30742
POPULATION
HOUSEHOLDS
RACE AND ETHNICITY
INCOME
EDUCATION (AGE 25+)
BUSINESS
2016 Estimated Average Household Income 2016 Estimated Median Household Income 2016 Estimated Per Capita Income
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Founded in December 2000 in Atlanta, GA, Moe’s Southwest Grill® is a fun and engaging fast-casual restaurant franchise serving a wide variety of fresh, made-to-order Southwest fare in a welcoming environment that rocks. The first thing people hear when walking into the restaurant is an enthusiastic, “Welcome to Moe’s! ® ” It’s more than just our rally cry. It embodies the entire culture. With more than 20 incredibly fresh ingredients like all-natural chicken, grass-fed steak and organic tofu to create one-of-a-kind meals, Moe’s has everyone covered, from meat lovers to tree huggers to vegetarians and flexitarians. While Moe’s is best known for awesome burritos, the menu also features kids’, vegetarian and low-calorie options – all served with free chips and salsa. Moe’s currently serves the most awesome Southwest fare at more than 600 locations in the United States and abroad. In August 2007, Moe’s Southwest Grill joined FOCUS Brands Inc. Atlanta-based FOCUS Brands Inc. is the franchisor and operator of over 4,300 Carvel® Ice Cream, Cinnabon® Bakery, Schlotzsky’s® Deli, Moe’s Southwest Grill®, Auntie Anne’s® Pretzels and McAlister’s® Deli locations, as well as the franchisor of Seattle’s Best Coffee® on certain military bases and in certain international markets.
www.moes.com
Source: www.moes.com
Tenant Base Rent Schedule
Tenant Lease Abstract Corp. Headquarter: Franchise Headquarter: # of Total Locations: # of Franchisee Locations: Guaranty: GLA: Tenant Since: Current Term Start: Lease Expiration: Rental Bumps: Options:
Atlanta, GA Marietta, GA 600+ 6 Personal 3,000 2016 07/28/2016 07/31/2026 Yes, 8/1/2021 (3) 5-Yr.
Current: Bump 2021: Option 1: Option 2: Option 3:
Annual
Monthly
PSF
$90,000.00 $99,000.00 $108,900.00 $119,790.00 $131,760.00
$7,500.00 $8,250.00 $9,075.00 $9,982.50 $10,980.00
$30.00 $33.00 $36.30 $39.93 $43.92
Tenant Recapture Common Area Maintenance: CAM Cap: Insurance: Real Estate Taxes Admin. Fee Mgmt. Fee:
Pro Rata Share 5% per year on a non-cumulative basis, excluding snow/ice removal Pro Rata Share Pro Rata Share 10% on CAM Expenses None
16
With more than 2,400 no-appointment-required salons across the country, Supercuts offers consistent, quality haircuts at a moment’s notice. The salon’s highly trained stylists take pride in providing the attention-to-detail each person expects from Supercuts. As a finishing touch to every Supercut™, the salon offers Hot Towel Refresher® services. Not only does Supercuts provide a range of services including men’s haircuts, women’s haircuts, kids' haircuts, color services, and waxing, Supercuts also offers professional haircare products at affordable prices. Supercuts product lines include Paul Mitchell, Biolage, Redken, American Crew, Nioxin, and more.
www.supercuts.com
Owned by Regis Corporation (NYSE: RGS) and ranked No. 1 in the U.S. haircare franchise arena, Supercuts is one of the largest and most iconic salon brands around. The company serves more than 33 million guests annually. Source: www.supercuts.com; www.regiscorp.com
Tenant Base Rent Schedule
Tenant Lease Abstract Corp. Headquarter: Minneapolis, MN # of Total Locations: 2,400+ Corporate: SUPERCUTS, Inc. GLA: 1,200 Tenant Since: 2016 Current Term Start: 08/06/2016 Lease Expiration: 08/31/2026 Rental Bumps: Yes, 9/1/2021 Options: (2) 5-Yr. Termination: After the 5th lease year, in the event Tenant's gross sales are less than 700% of Rents for any consecutive 12 month period. Must provide 180 days notice. Must pay unamortized brokerage commissions and Tenant Allowances.
Current: Bump 2021: Option 1: Option 2:
Annual
Monthly
PSF
$33,600.00 $36,960.00 $40,656.00 $44,724.00
$2,800.00 $3,080.00 $3,388.00 $3,727.00
$28.00 $30.80 $33.88 $37.27
Tenant Recapture Common Area Maintenance: CAM Cap: Insurance: Real Estate Taxes Admin. Fee Mgmt. Fee:
Pro Rata Share 5% per year, excluding real estate taxes and insurance Pro Rata Share Pro Rata Share 10% on CAM/Ins. Expenses None
17
DISCLOSURE, CONFIDENTIALITY & DISCLAIMER CONFIDENTIALITY AGREEMENT DISCLOSURE & DISCLAIMER The information within this Offering Memorandum will set forth an understanding regarding the relationship between the Recipient of this package (the “Recipient”) and The Cooper Group and the confidentiality of the investment information to be supplied to you and your organization for use in considering, evaluating and/or purchasing this property (the “Property”). The recipient acknowledges that all financial, contractual, marketing, and informational materials including but not limited to lease information, occupancy information, financial information, projections, data information and any other similar information provided by The Cooper Group which relates to the Property (collectively, the Confidential Information), whether said information was transmitted orally, in print, in writing or by electronic media is confidential in nature and is not to be copied or disseminated to any party without the prior consent of The Cooper Group. The Recipient acknowledges and agrees that the Confidential Information is of such a confidential nature that severe monetary damage could result from dissemination of that information to unauthorized individuals. The Recipient shall limit access to the Confidential Information to those individuals in the Recipient’s organization with a “need to know” and shall take all precautions reasonably necessary to protect the confidentiality of the Confidential Information. The Recipient acknowledges and agrees that the Confidential Information and any copies thereof are the property of The Cooper Group and that all such information will be returned to The Cooper Group upon written request. Any offers or inquiries from Recipient in connection with this investment proposal shall be forwarded, confidentiality, to The Cooper Group. Other than The Cooper Group, recipient agrees that neither Recipient nor The Cooper Group shall be obligated to pay any procuring broker fees in connection with this investment unless a separate written Brokerage Agreement is entered into and written acknowledgement of any procuring Brokerage Agreement is received from all parties to the investment transaction. Procuring brokers must provide written introductions of potential investors and receive written acknowledgment from The Cooper Group for representation to be recognized. This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.
The Memorandum contains selected information pertaining to the property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property, to be all-inclusive or to contain all or part of the information which perspective Recipients may require to evaluate the purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the owner or The Cooper Group. All references disclosed herein related to acreage, square footages and/or other measurements may be approximations and the best information available. The summaries of information included herein do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Photos herein are the Property and respective owners and use of these images without the express written consent of the owner is prohibited. The owner and the Cooper Group expressly reserve the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or terminate discussions with any entity and any time with or without notice which may arise as a result of review of this Memorandum. Neither the owner or the Cooper Group, nor any of their respective directors, officers, affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or its contents; and you are to rely solely on your investigators and inspections of the property in evaluating a possible purchase of the Property. The information contained in this document has been obtained from sources to be reliable. While the Cooper Group does not doubt its accuracy, the Cooper Group has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm the accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the Property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors.
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Bob Havasi Cooper Commercial Investment Group 6120 Parkland Blvd., Suite 206 Cleveland, OH 44124 www.coopergrp.com
[email protected] (888) 525-5695 x10
Dan Cooper
[email protected] (888) 525-5695 x12
[email protected] (888) 525-5695 x10
Cooper Commercial Investment Group 6120 Parkland Blvd., Suite 206 Cleveland, OH 44124 www.coopergrp.com
Dan Cooper
[email protected] (888) 525-5695 x12 In Connection with Licensed Georgia Broker
INVESTMENT SUMMARY Investment Highlights ….....…………………… 4 Investment Overview ……….……..………….. 5 Location Overview………………....……………. 6 FINANCIAL ANALYSIS Rent Roll ……………….……………………………. 8 Offering Summary & Financial Analysis.... 9 PROPERTY ANALYSIS Site Plan ..….………………….………………...….... 11 Aerial Maps ………………………………………… 12 Location Maps .……………………………………. 13 Demographics .……………………………………. 14 TENANT ANALYSIS Tenant Profiles …….……………………………… 16-17 Disclosure & Confidentiality …...……………. 18
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The Forts Shopping Center INVESTMENT HIGHLIGHTS
100% Occupied, Two-Tenant Trophy Moe’s Southwest Grill and Supercuts (NYSE: RGS) Center: Adjacent to Shadow Anchor Walmart Supercenter and Outlot to a Hobby Lobby, PetCo and Marshall’s Power Center
High Visibility and Great Accessibility Off Main Roadway (31,500 VPD) with Attractive, Contemporary Curb Appeal, Prominent Pylon Signage and Ample Parking
New 2016 Construction with Long-Term, 10-Yr. Leases In Place and Mid-Term Rental Increases: Regis Corp. Backed Supercuts & Personally Guaranteed Moe’s Lease
Growing Chattanooga MSA: Ranked 8th Out of America's 100 Largest Metro Areas for the “Best Bang For Your Buck,” According to Forbes Magazine
Strong Demographics in One of Chattanooga’s Up & Coming Areas: Avg. Household Incomes Over $63,500 Within 1-Mile and Direct Access to High Population Density of Nearly 262,000 People Within 10-Miles in the Chattanooga MSA
Immediate Vicinity of a Heavy Concentration of Other Commercial Properties and a Vast Amount of National Retailers: Buffalo Wild Wings, Mattress Firm, Panera Bread, Mattress Firm, Ross Dress for Less, Aspen Dental, GameStop & More
4
INVESTMENT OVERVIEW The Cooper Commercial Investment Group has been exclusively retained by ownership to sell the 100% fee simple interest in The Forts Shopping Center, a 4,200 S.F. center boasting high-profile tenants, Moe’s Southwest Grill and Regis Corporation backed Supercuts. The property is located in the highly desirable bedroom community of Fort Oglethorpe, Georgia, a suburb of Chattanooga, Tennessee. The City of Fort Oglethorpe is positioned in a tri-state corridor being located in Georgia, a suburb of Chattanooga, Tennessee and only 35 miles to Alabama. The property is being offered for $1,900,000, representing a 6.41% CAP Rate. Both tenants took possession and opened for business in 2016 on new, 10-year NNN leases. This makes a very stable asset to an investor with the popular tenants’ having 9 years of original term remaining with mid-term rental increases for both tenants. The attractive 2016 contemporary construction is 100% occupied and center’s advantageous location welcomes the tenants’ success and desire to be located at the property. Additionally, with the property’s young age, an investor will have minimal repairs and maintenance responsibilities with the new 25 ton HVAC unit, along with a transferrable roof warranty on the EPDM rubber roofing system. The center offers 10 foot wide sidewalks that could accommodate patio seating in the future. The property is surrounded by retail and sits as an outlot to a power center, which includes Marshalls, PetCo, and Hobby Lobby, while being adjacent to the Walmart Supercenter. The Forts Shopping Center is also surrounded by many complimentary national retailers, including Buffalo Wild Wings, Panera Bread, Mattress Firm, Ross, Hibbett Sports, GameStop, Verizon and many, many more. The property has highly visible frontage and is located in the main shopping district of the city directly off the heavily traveled Battlefield Parkway creating easy access. Traffic counts along Battlefield Parkway are approximately 31,500 vehicles per day. The tenants located at the center benefit strongly from being positioned just outside of Chattanooga with the direct access to the large population base of nearly 262,000 people within 10-miles. Furthermore, the Chattanooga MSA is supported by several major employers, including Access America Transport, BlueCross BlueShield of Tennessee, CBL & Associates, Chattem, the world's first Coca-Cola bottling plant, Coker Tire, FSGBank, Gordon Biersch Brewery Restaurant Group, Republic Parking System, and U.S. Xpress Enterprises Inc. The city also hosts large branch offices of Cigna, AT&T, T-Mobile USA and UBS. Recently, Volkswagen Group of America inaugurated its Chattanooga Assembly Plant. The $1 billion plant, opened and serves as the group's North American manufacturing headquarters. Other notable companies that have distribution facilities in the city include Alstom, Amazon.com, BASF, DuPont, Invista, Komatsu, Rock-Tenn, Plantronics, Domtar Corp., Norfolk Southern, Alco Chemical, Colonial Pipeline and Buzzi Unicem. The William Wrigley Jr. Company has a prominent presence in Chattanooga, now the sole production facility for Altoids breath mint products.
5
LOCATION OVERVIEW Fort Oglethorpe is located only 5 minutes from Chattanooga, Tennessee, and is part of the Chattanooga, TN–GA Metropolitan Statistical Area. The suburb of Chattanooga is located approximately 90 minutes north of Atlanta, Georgia. The City of Fort Oglethorpe is positioned in a tri-state corridor being located in Georgia, a suburb of Chattanooga, Tennessee and only 35 miles to Alabama. Fort Oglethorpe is a fascinating city with a history rich in local and national color. The city is home to the 6th Cavalry and the WAC’s. Generations of Americans serving their country entered or left their service through the gates of the city. Fort Oglethorpe also serves as the entrance to the Chickamauga National Military Park, the oldest and largest of America’s Civil War Parks. Fort Oglethorpe, Chattanooga, and the Tennessee River Valley, are wonderful places to live, to visit, and remember. Chattanooga is the 4th largest city in the state of Tennessee. The local economy includes a diversified and growing mix of manufacturing and service industries. "Sustainability" is a key concept for industry and government working together for enlightened development. Notable Chattanooga businesses include Access America Transport, BlueCross BlueShield of Tennessee, CBL & Associates, Chattem, the world's first Coca-Cola bottling plant, Coker Tire, FSGBank, Gordon Biersch Brewery Restaurant Group, Republic Parking System, and U.S. Xpress Enterprises Inc. The city also hosts large branch offices of Cigna, AT&T, T-Mobile USA and UBS. Recently, Volkswagen Group of America inaugurated its Chattanooga Assembly Plant. The $1 billion plant, opened and serves as the group's North American manufacturing headquarters. Other notable companies that have distribution facilities in the city include Alstom, Amazon.com, BASF, DuPont, Invista, Komatsu, Rock-Tenn, Plantronics, Domtar Corp., Norfolk Southern, Alco Chemical, Colonial Pipeline and Buzzi Unicem. The William Wrigley Jr. Company has a prominent presence in Chattanooga, now the sole production facility for Altoids breath mint products. In addition to corporate business interests, there are many retail shops in Chattanooga, including three shopping malls: Hamilton Place, Eastgate Mall and Northgate Mall in Hixson. The Tennessee Aquarium has become a major waterfront attraction that has helped to spur development. Chattanooga has garnered numerous accolades for its transformation of its image. The city has won three national awards for outstanding "livability," and nine Gunther Blue Ribbon Awards for excellence in housing and consolidated planning. Chattanooga is ranked 8th out of America's 100 largest metro areas for the “Best Bang for Your Buck", according to Forbes Magazine. The city draws over a million tourists to its main attractions, such as the Tennessee Aquarium, Rock City, Ruby Falls, Civil War monuments of Battlefield Parkway. Additionally, The University of Tennessee at Chattanooga is the second largest campus of the University of Tennessee System, with a student population of over 10,000. Chattanooga State Community College is a two-year community college with a total undergraduate enrollment of roughly 11,000 students. Tennessee Temple University is a Baptist college located in the Highland Park neighborhood. Chattanooga is also home to a branch of the University of Tennessee College of Medicine, which provides medical education to third and fourth year medical students, residents, and other medical professionals in southeast Tennessee.
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Tenant
Total Building
GLA
% of Total
Tenant Since
Lease Start
Lease Expiration
Rent/ S.F.
Annual Rent
Lease Type
Rental Bumps
Option Rate
3,000
71.43%
2016
7/28/2016 7/31/2026
$30.00
$90,000
NNN
(3) 5-Yr. Years 11-15: $36.30/SF 8/1/2021: $33.00/SF Years 16-20: $39.93/SF Years 21-25: $43.92/SF
1,200
28.57%
2016
8/6/2016
$28.00
$33,600
NNN
(2) 5-Yr. 9/1/2021: $30.80/SF Years 11-15: $33.88/SF Years 16-20: $37.27/SF
$29.43
$123,600
4,200 100.00%
8/31/2026
8
SUMMARY
Pro Forma 2017 2017 $/SF
$1,900,000
Price:
4,200 S.F.
Gross Leasable Area:
$452.38
Price/SF:
$121,813
NOI: CAP Rate:
6.41%
Year Built:
2016 Approx. 0.702 Acres
Lot Size:
$
123,600
$
29.43
$
6,250 10,500 2,100 685 143,135
$
1.49 2.50 0.50 0.16 34.08
$
143,135
$
34.08
$
$
$
2,472 10,500 2,100 6,250 21,322
$
0.59 2.50 0.50 1.49 5.08
$
121,813
$
29.00
2016 - 10Yr.
Roof/Transferrable Warranty:
EPDM Rubber Roofing
Roof Type:
INCOME: Potential Rental Income Rental Income Tenant Reimbursements CAM Real Estate Taxes Insurance Admin. Fee Gross Potential Rental Income Effective Gross Income OPERATING EXPENSES:
Concrete/Stone/Steel
Exterior:
25 Tons Total
HVAC:
10’ Width
Sidewalks:
Operating Data
Management Fee Real Estate Taxes Insurance CAM Total Expenses
2.00%
Rental Income:
$123,600
Net Operating Income
Tenant Reimbursements:
$19,535
Pricing Analysis
Potential Gross Income:
$143,135
Effective Gross Income:
$143,135
Net Operating Income
$
121,813
$
29.00
Expenses:
$21,322
Capitalization Rate Valuation
6.41% $ 1,900,000
$
6.41% 452.38
NOI:
$121,813
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10
11
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67 Parkway Drive 1 mi radius
3 mi radius
5 mi radius
10 mi radius
2016 Estimated Population 2021 Projected Population 2010 Census Population 2000 Census Population Projected Annual Growth 2016 to 2021 Historical Annual Growth 2000 to 2016 2016 Median Age
1,826 1,872 1,682 1,073 0.5% 4.4% 42.8
24,047 24,794 22,917 18,837 0.6% 1.7% 41.2
76,357 78,778 74,556 66,957 0.6% 0.9% 40
261,895 270,106 253,415 229,840 0.6% 0.9% 38.2
2016 Estimated Households 2021 Projected Households 2010 Census Households 2000 Census Households Projected Annual Growth 2016 to 2021 Historical Annual Growth 2000 to 2016
753 779 697 431 0.7% 4.7%
9,816 10,230 9,286 7,609 0.8% 1.8%
31,680 33,283 30,374 27,356 1.0% 1.0%
106,909 112,611 101,031 92,257 1.1% 1.0%
2016 Estimated White 2016 Estimated Black or African American 2016 Estimated Asian or Pacific Islander 2016 Estimated American Indian or Native Alaskan 2016 Estimated Other Races 2016 Estimated Hispanic
88.0% 5.0% 4.4% 0.2% 2.4% 1.8%
89.6% 4.2% 2.6% 0.2% 3.4% 2.9%
88.5% 5.4% 2.0% 0.4% 3.7% 3.7%
69.8% 23.3% 2.1% 0.4% 4.4% 5.2%
$63,544 $55,868 $26,480
$54,268 $45,818 $22,232
$53,903 $44,820 $22,437
$59,947 $46,881 $24,759
2016 Estimated Elementary (Grade Level 0 to 8) 2016 Estimated Some High School (Grade Level 9 to 11) 2016 Estimated High School Graduate 2016 Estimated Some College 2016 Estimated Associates Degree Only 2016 Estimated Bachelors Degree Only 2016 Estimated Graduate Degree
3.6% 12.0% 35.7% 20.9% 11.2% 12.6% 4.1%
3.4% 12.9% 32.4% 23.4% 9.7% 10.9% 7.2%
4.9% 11.7% 33.1% 23.9% 8.1% 11.9% 6.4%
5.2% 10.7% 30.2% 23.4% 7.3% 15.1% 8.1%
2016 Estimated Total Businesses 2016 Estimated Total Employees 2016 Estimated Employee Population per Business 2016 Estimated Residential Population per Business
287 2,942 10.3 6.4
1,187 10,302 8.7 20.3
3,019 27,678 9.2 25.3
14,971 182,558 12.2 17.5
Fort Oglethorpe, GA 30742
POPULATION
HOUSEHOLDS
RACE AND ETHNICITY
INCOME
EDUCATION (AGE 25+)
BUSINESS
2016 Estimated Average Household Income 2016 Estimated Median Household Income 2016 Estimated Per Capita Income
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15
Founded in December 2000 in Atlanta, GA, Moe’s Southwest Grill® is a fun and engaging fast-casual restaurant franchise serving a wide variety of fresh, made-to-order Southwest fare in a welcoming environment that rocks. The first thing people hear when walking into the restaurant is an enthusiastic, “Welcome to Moe’s! ® ” It’s more than just our rally cry. It embodies the entire culture. With more than 20 incredibly fresh ingredients like all-natural chicken, grass-fed steak and organic tofu to create one-of-a-kind meals, Moe’s has everyone covered, from meat lovers to tree huggers to vegetarians and flexitarians. While Moe’s is best known for awesome burritos, the menu also features kids’, vegetarian and low-calorie options – all served with free chips and salsa. Moe’s currently serves the most awesome Southwest fare at more than 600 locations in the United States and abroad. In August 2007, Moe’s Southwest Grill joined FOCUS Brands Inc. Atlanta-based FOCUS Brands Inc. is the franchisor and operator of over 4,300 Carvel® Ice Cream, Cinnabon® Bakery, Schlotzsky’s® Deli, Moe’s Southwest Grill®, Auntie Anne’s® Pretzels and McAlister’s® Deli locations, as well as the franchisor of Seattle’s Best Coffee® on certain military bases and in certain international markets.
www.moes.com
Source: www.moes.com
Tenant Base Rent Schedule
Tenant Lease Abstract Corp. Headquarter: Franchise Headquarter: # of Total Locations: # of Franchisee Locations: Guaranty: GLA: Tenant Since: Current Term Start: Lease Expiration: Rental Bumps: Options:
Atlanta, GA Marietta, GA 600+ 6 Personal 3,000 2016 07/28/2016 07/31/2026 Yes, 8/1/2021 (3) 5-Yr.
Current: Bump 2021: Option 1: Option 2: Option 3:
Annual
Monthly
PSF
$90,000.00 $99,000.00 $108,900.00 $119,790.00 $131,760.00
$7,500.00 $8,250.00 $9,075.00 $9,982.50 $10,980.00
$30.00 $33.00 $36.30 $39.93 $43.92
Tenant Recapture Common Area Maintenance: CAM Cap: Insurance: Real Estate Taxes Admin. Fee Mgmt. Fee:
Pro Rata Share 5% per year on a non-cumulative basis, excluding snow/ice removal Pro Rata Share Pro Rata Share 10% on CAM Expenses None
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With more than 2,400 no-appointment-required salons across the country, Supercuts offers consistent, quality haircuts at a moment’s notice. The salon’s highly trained stylists take pride in providing the attention-to-detail each person expects from Supercuts. As a finishing touch to every Supercut™, the salon offers Hot Towel Refresher® services. Not only does Supercuts provide a range of services including men’s haircuts, women’s haircuts, kids' haircuts, color services, and waxing, Supercuts also offers professional haircare products at affordable prices. Supercuts product lines include Paul Mitchell, Biolage, Redken, American Crew, Nioxin, and more.
www.supercuts.com
Owned by Regis Corporation (NYSE: RGS) and ranked No. 1 in the U.S. haircare franchise arena, Supercuts is one of the largest and most iconic salon brands around. The company serves more than 33 million guests annually. Source: www.supercuts.com; www.regiscorp.com
Tenant Base Rent Schedule
Tenant Lease Abstract Corp. Headquarter: Minneapolis, MN # of Total Locations: 2,400+ Corporate: SUPERCUTS, Inc. GLA: 1,200 Tenant Since: 2016 Current Term Start: 08/06/2016 Lease Expiration: 08/31/2026 Rental Bumps: Yes, 9/1/2021 Options: (2) 5-Yr. Termination: After the 5th lease year, in the event Tenant's gross sales are less than 700% of Rents for any consecutive 12 month period. Must provide 180 days notice. Must pay unamortized brokerage commissions and Tenant Allowances.
Current: Bump 2021: Option 1: Option 2:
Annual
Monthly
PSF
$33,600.00 $36,960.00 $40,656.00 $44,724.00
$2,800.00 $3,080.00 $3,388.00 $3,727.00
$28.00 $30.80 $33.88 $37.27
Tenant Recapture Common Area Maintenance: CAM Cap: Insurance: Real Estate Taxes Admin. Fee Mgmt. Fee:
Pro Rata Share 5% per year, excluding real estate taxes and insurance Pro Rata Share Pro Rata Share 10% on CAM/Ins. Expenses None
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DISCLOSURE, CONFIDENTIALITY & DISCLAIMER CONFIDENTIALITY AGREEMENT DISCLOSURE & DISCLAIMER The information within this Offering Memorandum will set forth an understanding regarding the relationship between the Recipient of this package (the “Recipient”) and The Cooper Group and the confidentiality of the investment information to be supplied to you and your organization for use in considering, evaluating and/or purchasing this property (the “Property”). The recipient acknowledges that all financial, contractual, marketing, and informational materials including but not limited to lease information, occupancy information, financial information, projections, data information and any other similar information provided by The Cooper Group which relates to the Property (collectively, the Confidential Information), whether said information was transmitted orally, in print, in writing or by electronic media is confidential in nature and is not to be copied or disseminated to any party without the prior consent of The Cooper Group. The Recipient acknowledges and agrees that the Confidential Information is of such a confidential nature that severe monetary damage could result from dissemination of that information to unauthorized individuals. The Recipient shall limit access to the Confidential Information to those individuals in the Recipient’s organization with a “need to know” and shall take all precautions reasonably necessary to protect the confidentiality of the Confidential Information. The Recipient acknowledges and agrees that the Confidential Information and any copies thereof are the property of The Cooper Group and that all such information will be returned to The Cooper Group upon written request. Any offers or inquiries from Recipient in connection with this investment proposal shall be forwarded, confidentiality, to The Cooper Group. Other than The Cooper Group, recipient agrees that neither Recipient nor The Cooper Group shall be obligated to pay any procuring broker fees in connection with this investment unless a separate written Brokerage Agreement is entered into and written acknowledgement of any procuring Brokerage Agreement is received from all parties to the investment transaction. Procuring brokers must provide written introductions of potential investors and receive written acknowledgment from The Cooper Group for representation to be recognized. This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.
The Memorandum contains selected information pertaining to the property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property, to be all-inclusive or to contain all or part of the information which perspective Recipients may require to evaluate the purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the owner or The Cooper Group. All references disclosed herein related to acreage, square footages and/or other measurements may be approximations and the best information available. The summaries of information included herein do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Photos herein are the Property and respective owners and use of these images without the express written consent of the owner is prohibited. The owner and the Cooper Group expressly reserve the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or terminate discussions with any entity and any time with or without notice which may arise as a result of review of this Memorandum. Neither the owner or the Cooper Group, nor any of their respective directors, officers, affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or its contents; and you are to rely solely on your investigators and inspections of the property in evaluating a possible purchase of the Property. The information contained in this document has been obtained from sources to be reliable. While the Cooper Group does not doubt its accuracy, the Cooper Group has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm the accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the Property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors.
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Bob Havasi Cooper Commercial Investment Group 6120 Parkland Blvd., Suite 206 Cleveland, OH 44124 www.coopergrp.com
[email protected] (888) 525-5695 x10
Dan Cooper
[email protected] (888) 525-5695 x12
