Tenant
Single Tenant ___________
Owenton, Kentucky
REPRESENTATIVE PHOTO
INVESTMENT OPPORTUNITY
FAMILY DOLLAR | OWENTON, KENTUCKY
CONTENTS | 2
CONTENTS INVESTMENT SUMMARY..................................3 HIGHLIGHTS....................................................4 PROPERTY DESCRIPTION..................................5 AERIAL VIEW & SITE PLAN.................................6 AREA OVERVIEW.............................................10 RENT ROLL.....................................................11
This Offering Memorandum has been prepared by SRS and has been approved for distribution by the owner. Although effort has been made to provide accurate
EXCLUSIVELY MARKETED BY
information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral
DAN ELLIOT | Senior Vice President SRS National Net Lease Group
communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the
REPRESENTATIVE PHOTO
market and the surrounding competitive environment.
155 N. Wacker Drive, Suite 3660 | Chicago, IL 60606 D: 312.279.5342 [email protected] | License No. 475144985
SEAN LUTZ | Senior Vice President SRS National Net Lease Group 155 N. Wacker Drive, Suite 3660 | Chicago, IL 60606 D: 312.279.5343 [email protected] | License No. 475132482 Broker of Record: David Aikens | KY License No. 73307
FAMILY DOLLAR | OWENTON, KENTUCKY
INVESTMENT SUMMARY | 3
OFFERING Pricing:
$750,000
Net Operating Income:
$60,500
Cap Rate:
8.07%
Guaranty:
Corporate
Parent Co. Credit Rating:
S&P: BB+
Lease Type:
Net Lease
Landlord Responsibilities:
Roof and Structure
PROPERTY SPECIFICATIONS Rentable Area:
9,180 SF
Land Area:
0.57 Acres
Property Address:
226 Main Street, Owenton, KY 40359
Year Built / Remodeled:
2005 / 2010
Parcel Number:
061-20-00-076.09
Ownership:
Fee Simple (Land and Building)
FAMILY DOLLAR - OWENTON, KENTUCKY
REPRESENTATIVE PHOTO
SRS National Net Lease Group is pleased to present the opportunity to acquire Family Dollar, a corporate guaranteed, net leased, investment property located in Owenton, Kentucky. The tenant recently exercised its first 5-year option period, demonstrating their commitment to the location. Family Dollar has 4.5 years remaining in the primary term with 3 (5-year) option periods. Family Dollar is located on Main Street / US Highway 127 (8,600 vehicles per day) with excellent visibility. US Highway 127 is a major north-south highway that connects Owenton, KY to major cities such as Lexington, KY and Cincinnati, OH. Family Dollar is located in the center of town, where it serves as one of the few grocery/variety stores in town. As a result, the property sees large amounts of consumer traffic. In addition, the demographics in the surrounding trade area are perfect for a Family Dollar store, which targets low to middle income consumers in rural areas. The site serves more than 3,800 residents with an average household income of $49,700 located within a 5-mile radius.
FAMILY DOLLAR | OWENTON, KENTUCKY
Corporate Guaranteed Lease With 3 (5-Year) Option Periods
• 4.5 years remaining in the primary term • 10% rental increases at the beginning of each option period • Corporate guaranty by Family Dollar Stores, Inc.
Net Lease / Fee Simple Ownership / Limited Landlord Responsibilities
• Tenant pays for all CAM, insurance, and taxes • Landlord responsible for roof and structure • Limited landlord responsibilities
2010 Remodel / Strong Performing Location / Low-Rent-To-Sales Ratio
• At tenant’s expense, the Family Dollar was remodeled in 2010 to reflect corporate store
REPRESENTATIVE PHOTO
prototype
HIGHLIGHTS | 4
Situated Along Main Thoroughfare / Large Pylon Sign
• Situated along Main Street / US Highway 127 (8,600 vehicles per day) with excellent visibility, street frontage, and access
• Main Street / US Highway is the main thoroughfare for the city of Owenton • Large pylon sign further increases visibility for the subject property Ideal Demographic For Discount Store
• Within a 5-mile radius, over 3,800 residents and 1,900 employees support the trade area • $49,700 average household income • Ideal low/middle income consumer base for discount store
FAMILY DOLLAR | OWENTON, KENTUCKY PROPERTY DESCRIPTION PARCEL
Parcel: 061-20-00-076.09 Acres: 0.57 Square Feet: 24,829 SF
ZONING Commercial
ACCESS
There are two (2) access points both along Beck Street.
TRAFFIC COUNTS
Main Street / US Highway 127:................................................................................................................................................8,600
IMPROVEMENTS
There is approximately 9,180 SF of existing building area.
PARKING
REPRESENTATIVE PHOTO
There are approximately 27 parking spaces on the owned parcel. The parking ratio is approximately 2.94 per 1,000 SF of leasable area.
YEAR BUILT / REMODELED 2005 / 2010
PROPERTY DESCRIPTION | 5
FAMILY DOLLAR | OWENTON, KENTUCKY
AERIAL VIEW | 6
FAMILY DOLLAR | OWENTON, KENTUCKY
AERIAL VIEW | 7
FAMILY DOLLAR | OWENTON, KENTUCKY
LOCATION MAP | 8
2015 ESTIMATED POPULATION
3 Mile............................................................ 2,292 5 Mile............................................................ 3,813
CINCINNATI
2015 AVERAGE HOUSEHOLD INCOME
3 Mile.........................................................$48,026 5 Mile.........................................................$49,692
2015 ESTIMATED TOTAL EMPLOYEES
3 Mile............................................................ 1,551 5 Mile............................................................ 1,912
OWENTON
LOUISVILLE
LEXINGTON
FAMILY DOLLAR | OWENTON, KENTUCKY
SITE PLAN | 9
Main St.
Pylon Sign
Beck St.
FAMILY DOLLAR | OWENTON, KENTUCKY
AREA OVERVIEW | 10
DEMOGRAPHICS
CITY OF OWENTON Owenton is a home rule-class city in and the county seat of Owen County, Kentucky, United States. The city’s estimated population was 1,511 as of 2014. It is located at the junction of U.S. Route 127 and Kentucky Route 22, about halfway between Louisville and Cincinnati. Owenton is an agricultural community with a small industrial base, including a sandal factory and meter device factory. Owenton was founded in 1822 and named for its county, which was named for Col. Abraham Owen, a pioneer who died at the Battle of Tippecanoe. The town was first incorporated on December 18, 1828, although it had to be reincorporated in 1849. The Greek Revival courthouse was built between 1857-58. Owenton’s growth in the late 19th century was limited because a railroad was never built to it.
DISTANCE TO POINTS OF INTEREST
1 MILE
3 MILES
Univeristy of Tulsa
Univeristy of Tulsa
2 MILES
4 MILES
Tulsa Zoo
1/4 MILE
1/2 MILE
Tulsa Zoo
1 MILE
2 MILES
1 Mile 3 Miles 5 Miles
2015 Estimated Population
1,420
2,292
3,813
2020 Projected Population
1,403
2,266
3,792
2010 Census Population
1,442
2,324
3,827
2000 Census Population
1,420
2,307
3,795
2015 Estimated Households
624
978
1,582
2020 Projected Households
617
967
1,574
2010 Census Households
635
993
1,590
2000 Census Households
610
960
1,545
2015 Estimated White
94.71%
94.71%
94.71%
2015 Estimated Black or African American
1.48%
1.48%
1.48%
2015 Estimated Asian or Pacific Islander
0.28%
0.28%
0.28%
2015 Estimated American Indian or Native Alaskan
0.28%
0.28%
0.28%
2015 Estimated Other Races
1.48%
1.48%
1.48%
FAMILY DOLLAR | OWENTON, KENTUCKY
RENT ROLL | 11 Starbucks
Family Dollar
Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company oper-
Company Type: ....................... Subsidiary 2015 Assets: ......................... $15.9 Billion Family Dollar Stores, Inc. operates a chain of general merchandise retail discount stores ates inStates. four segments: Americas, Europe, Africa, and China/Asia Pacific. Starbucks stores offer coffee and tea beveragprimarily for low- and middle-income consumers in the United Its merchandise ........................... 2015 Equity: ......................... $4.41fresh Billion andEmployees: ground coffees, and other 55,300 bottled beverages. Its stores also provide food assortment includes consumables, such as batteries, diapers,es, foodpackaged products,roasted hardwarewhole and bean2015 offeringspaper such products, as pastries, automotive supplies, health and beauty aids, household chemicals, petbreakfast sandwiches, and lunch items. As of August 27, 2015, Starbucks operates 21,000 2015 Revenue: ..................... $15.5 Billion Parent Company............. (NASDAQ: DLTR) food and supplies, and tobacco; and home products, including blankets, sheets, stores. Starbucks wastowels, founded in 1985 and is headquartered in Seattle, Washington. giftware home décor products, and housewares. The company also offers apparel and 2015 Net Income: ............. $282.4 Million Parent Credit Rating:...................S&P: BB+ accessories comprising boys’ and girls’, infants’, men’s, and women’s clothing, as well as fashion accessories and shoes; and seasonal and electronic products. As of April 8, 2015, it operated approximately 8,100 stores in 46 states. The company was founded in 1959 and is headquartered in Matthews, North Carolina. As of July 6, 2015, Family Dollar Stores Inc. operates as a subsidiary of Dollar Tree, Inc. Tenant Name
Square Feet
Lease Start
Lease End
Begin
Monthly
Annually
Recovery Type
Options: 3 (5-year)
Family Dollar
9,180
1/1/2006
12/31/2020
Current
$5,042
$60,500
Net Lease
Option 1: $66,550/Yr
(corporate)
Option 2: $73,205/Yr
REPRESENTATIVE PHOTO
Option 3: $80,525/Yr
FINANCIAL INFORMATION
PROPERTY SPECIFICATIONS
Price:...................................................................................................................$750,000 Net Operating Income:..........................................................................................$60,500 Cap Rate:..................................................................................................................8.07% Lease Type:........................................................................................................ Net Lease
Address:....................................................................226 Main Street, Owenton, KY 40359 Year Built / Remodeled:..................................................................................2005 / 2010 Rentable Area:...................................................................................................... 9,180 SF Parcel Number:......................................................................................061-20-00-076.09
REPRESENTATIVE PHOTO
Owenton, Kentucky
REPRESENTATIVE PHOTO
INVESTMENT OPPORTUNITY
FAMILY DOLLAR | OWENTON, KENTUCKY
CONTENTS | 2
CONTENTS INVESTMENT SUMMARY..................................3 HIGHLIGHTS....................................................4 PROPERTY DESCRIPTION..................................5 AERIAL VIEW & SITE PLAN.................................6 AREA OVERVIEW.............................................10 RENT ROLL.....................................................11
This Offering Memorandum has been prepared by SRS and has been approved for distribution by the owner. Although effort has been made to provide accurate
EXCLUSIVELY MARKETED BY
information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral
DAN ELLIOT | Senior Vice President SRS National Net Lease Group
communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the
REPRESENTATIVE PHOTO
market and the surrounding competitive environment.
155 N. Wacker Drive, Suite 3660 | Chicago, IL 60606 D: 312.279.5342 [email protected] | License No. 475144985
SEAN LUTZ | Senior Vice President SRS National Net Lease Group 155 N. Wacker Drive, Suite 3660 | Chicago, IL 60606 D: 312.279.5343 [email protected] | License No. 475132482 Broker of Record: David Aikens | KY License No. 73307
FAMILY DOLLAR | OWENTON, KENTUCKY
INVESTMENT SUMMARY | 3
OFFERING Pricing:
$750,000
Net Operating Income:
$60,500
Cap Rate:
8.07%
Guaranty:
Corporate
Parent Co. Credit Rating:
S&P: BB+
Lease Type:
Net Lease
Landlord Responsibilities:
Roof and Structure
PROPERTY SPECIFICATIONS Rentable Area:
9,180 SF
Land Area:
0.57 Acres
Property Address:
226 Main Street, Owenton, KY 40359
Year Built / Remodeled:
2005 / 2010
Parcel Number:
061-20-00-076.09
Ownership:
Fee Simple (Land and Building)
FAMILY DOLLAR - OWENTON, KENTUCKY
REPRESENTATIVE PHOTO
SRS National Net Lease Group is pleased to present the opportunity to acquire Family Dollar, a corporate guaranteed, net leased, investment property located in Owenton, Kentucky. The tenant recently exercised its first 5-year option period, demonstrating their commitment to the location. Family Dollar has 4.5 years remaining in the primary term with 3 (5-year) option periods. Family Dollar is located on Main Street / US Highway 127 (8,600 vehicles per day) with excellent visibility. US Highway 127 is a major north-south highway that connects Owenton, KY to major cities such as Lexington, KY and Cincinnati, OH. Family Dollar is located in the center of town, where it serves as one of the few grocery/variety stores in town. As a result, the property sees large amounts of consumer traffic. In addition, the demographics in the surrounding trade area are perfect for a Family Dollar store, which targets low to middle income consumers in rural areas. The site serves more than 3,800 residents with an average household income of $49,700 located within a 5-mile radius.
FAMILY DOLLAR | OWENTON, KENTUCKY
Corporate Guaranteed Lease With 3 (5-Year) Option Periods
• 4.5 years remaining in the primary term • 10% rental increases at the beginning of each option period • Corporate guaranty by Family Dollar Stores, Inc.
Net Lease / Fee Simple Ownership / Limited Landlord Responsibilities
• Tenant pays for all CAM, insurance, and taxes • Landlord responsible for roof and structure • Limited landlord responsibilities
2010 Remodel / Strong Performing Location / Low-Rent-To-Sales Ratio
• At tenant’s expense, the Family Dollar was remodeled in 2010 to reflect corporate store
REPRESENTATIVE PHOTO
prototype
HIGHLIGHTS | 4
Situated Along Main Thoroughfare / Large Pylon Sign
• Situated along Main Street / US Highway 127 (8,600 vehicles per day) with excellent visibility, street frontage, and access
• Main Street / US Highway is the main thoroughfare for the city of Owenton • Large pylon sign further increases visibility for the subject property Ideal Demographic For Discount Store
• Within a 5-mile radius, over 3,800 residents and 1,900 employees support the trade area • $49,700 average household income • Ideal low/middle income consumer base for discount store
FAMILY DOLLAR | OWENTON, KENTUCKY PROPERTY DESCRIPTION PARCEL
Parcel: 061-20-00-076.09 Acres: 0.57 Square Feet: 24,829 SF
ZONING Commercial
ACCESS
There are two (2) access points both along Beck Street.
TRAFFIC COUNTS
Main Street / US Highway 127:................................................................................................................................................8,600
IMPROVEMENTS
There is approximately 9,180 SF of existing building area.
PARKING
REPRESENTATIVE PHOTO
There are approximately 27 parking spaces on the owned parcel. The parking ratio is approximately 2.94 per 1,000 SF of leasable area.
YEAR BUILT / REMODELED 2005 / 2010
PROPERTY DESCRIPTION | 5
FAMILY DOLLAR | OWENTON, KENTUCKY
AERIAL VIEW | 6
FAMILY DOLLAR | OWENTON, KENTUCKY
AERIAL VIEW | 7
FAMILY DOLLAR | OWENTON, KENTUCKY
LOCATION MAP | 8
2015 ESTIMATED POPULATION
3 Mile............................................................ 2,292 5 Mile............................................................ 3,813
CINCINNATI
2015 AVERAGE HOUSEHOLD INCOME
3 Mile.........................................................$48,026 5 Mile.........................................................$49,692
2015 ESTIMATED TOTAL EMPLOYEES
3 Mile............................................................ 1,551 5 Mile............................................................ 1,912
OWENTON
LOUISVILLE
LEXINGTON
FAMILY DOLLAR | OWENTON, KENTUCKY
SITE PLAN | 9
Main St.
Pylon Sign
Beck St.
FAMILY DOLLAR | OWENTON, KENTUCKY
AREA OVERVIEW | 10
DEMOGRAPHICS
CITY OF OWENTON Owenton is a home rule-class city in and the county seat of Owen County, Kentucky, United States. The city’s estimated population was 1,511 as of 2014. It is located at the junction of U.S. Route 127 and Kentucky Route 22, about halfway between Louisville and Cincinnati. Owenton is an agricultural community with a small industrial base, including a sandal factory and meter device factory. Owenton was founded in 1822 and named for its county, which was named for Col. Abraham Owen, a pioneer who died at the Battle of Tippecanoe. The town was first incorporated on December 18, 1828, although it had to be reincorporated in 1849. The Greek Revival courthouse was built between 1857-58. Owenton’s growth in the late 19th century was limited because a railroad was never built to it.
DISTANCE TO POINTS OF INTEREST
1 MILE
3 MILES
Univeristy of Tulsa
Univeristy of Tulsa
2 MILES
4 MILES
Tulsa Zoo
1/4 MILE
1/2 MILE
Tulsa Zoo
1 MILE
2 MILES
1 Mile 3 Miles 5 Miles
2015 Estimated Population
1,420
2,292
3,813
2020 Projected Population
1,403
2,266
3,792
2010 Census Population
1,442
2,324
3,827
2000 Census Population
1,420
2,307
3,795
2015 Estimated Households
624
978
1,582
2020 Projected Households
617
967
1,574
2010 Census Households
635
993
1,590
2000 Census Households
610
960
1,545
2015 Estimated White
94.71%
94.71%
94.71%
2015 Estimated Black or African American
1.48%
1.48%
1.48%
2015 Estimated Asian or Pacific Islander
0.28%
0.28%
0.28%
2015 Estimated American Indian or Native Alaskan
0.28%
0.28%
0.28%
2015 Estimated Other Races
1.48%
1.48%
1.48%
FAMILY DOLLAR | OWENTON, KENTUCKY
RENT ROLL | 11 Starbucks
Family Dollar
Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company oper-
Company Type: ....................... Subsidiary 2015 Assets: ......................... $15.9 Billion Family Dollar Stores, Inc. operates a chain of general merchandise retail discount stores ates inStates. four segments: Americas, Europe, Africa, and China/Asia Pacific. Starbucks stores offer coffee and tea beveragprimarily for low- and middle-income consumers in the United Its merchandise ........................... 2015 Equity: ......................... $4.41fresh Billion andEmployees: ground coffees, and other 55,300 bottled beverages. Its stores also provide food assortment includes consumables, such as batteries, diapers,es, foodpackaged products,roasted hardwarewhole and bean2015 offeringspaper such products, as pastries, automotive supplies, health and beauty aids, household chemicals, petbreakfast sandwiches, and lunch items. As of August 27, 2015, Starbucks operates 21,000 2015 Revenue: ..................... $15.5 Billion Parent Company............. (NASDAQ: DLTR) food and supplies, and tobacco; and home products, including blankets, sheets, stores. Starbucks wastowels, founded in 1985 and is headquartered in Seattle, Washington. giftware home décor products, and housewares. The company also offers apparel and 2015 Net Income: ............. $282.4 Million Parent Credit Rating:...................S&P: BB+ accessories comprising boys’ and girls’, infants’, men’s, and women’s clothing, as well as fashion accessories and shoes; and seasonal and electronic products. As of April 8, 2015, it operated approximately 8,100 stores in 46 states. The company was founded in 1959 and is headquartered in Matthews, North Carolina. As of July 6, 2015, Family Dollar Stores Inc. operates as a subsidiary of Dollar Tree, Inc. Tenant Name
Square Feet
Lease Start
Lease End
Begin
Monthly
Annually
Recovery Type
Options: 3 (5-year)
Family Dollar
9,180
1/1/2006
12/31/2020
Current
$5,042
$60,500
Net Lease
Option 1: $66,550/Yr
(corporate)
Option 2: $73,205/Yr
REPRESENTATIVE PHOTO
Option 3: $80,525/Yr
FINANCIAL INFORMATION
PROPERTY SPECIFICATIONS
Price:...................................................................................................................$750,000 Net Operating Income:..........................................................................................$60,500 Cap Rate:..................................................................................................................8.07% Lease Type:........................................................................................................ Net Lease
Address:....................................................................226 Main Street, Owenton, KY 40359 Year Built / Remodeled:..................................................................................2005 / 2010 Rentable Area:...................................................................................................... 9,180 SF Parcel Number:......................................................................................061-20-00-076.09
REPRESENTATIVE PHOTO
