Offering Memorandum - Matthews Real Estate Investment Services

13150 US HIGHWAY 41 S, GIBSONTON, FL 33534
7-ELEVEN GAS STATION
™
13150 US HIGHWAY 41 S | GIBSONTON, FL 33534
7-ELEVEN
TABLE O F CO NT ENTS
04. Executive Summary
06. Property Overview
12. Tenant Overview
14. Area Overview
Aron Cline
VP & Senior Director,STNL
™
+1.310.919.5816 MOBILE
+1.818.632.0233
aron.cline@matthews.com
License No. 01904371
DIRECT
Matt Coates
Associate
DIRECT +1.310.919.5805
MOBILE +1.714.366.1236
matt.coates@matthews.com
License No. 01980718
Jeffrey Terwilliger
Broker of Record
License No. BK3122117
E XECUTIVE S UMMARY
Investment Highlights
•
Corporately Guaranteed Lease with 7-Eleven, Inc., backed with AA- Investment Grade Credit (Standard & Poor’s)
•
Leased to nationally recognized 7-Eleven, Inc., which has over 7,800 stores
nationwide and 55,000 worldwide with annual revenue of more than $10.3
billion
•
Absolute NNN Lease - Zero Landlord responsibilities
•
Potential for Accelerated Depreciation - huge tax advantage
•
7-Eleven recently extended its lease, showing commitment to the location
•
High Daily Traffic Counts in Excess of 45,500 on Tamiami Trail and 17,300
on Big Bend Road
•
22%+ Population Growth within a 1-mile, 3-mile, and 5-mile radius from the
site between 2010-2016
•
Healthy Rent in Place
•
Average Household Income Exceeds $69,000 within a 1-mile, 3-mile, 5-mile,
and 10-mile radius
•
Only Gas Station for a 2 mile stretch on Tamiami Trail
•
Located within 1.25 miles from East Bay High School (±2,400 students), Eisenhower Middle School (2,300+ students), Corr Elementary School (770+
students)
•
Only one other 7-Eleven in a 5-mile radius
•
Major National Tenants within a 3.5-mile radius of the site: Publix (2), Walmart,
Applebee’s, Firestone, Ace Hardware, Sonic, Beef ‘O’ Brady’s, Dunkin’ Donuts (2), Subway (2), Advance Auto Parts, Quiznos, Dollar Tree, Starbuck’s,
Burger King, Anytime Fitness, Wells Fargo, Dollar General (2), Sam’s Club,
McDonald’s, Tire Choice, Q’Doba, SunTrust Bank, Regions Bank, Winn Dixie (2), Panera Bread, Buffalo Wild Wings, Goodyear Tire, Bank of America,
Chase Bank, Papa John’s Pizza, Wendy’s, Popeye’s, Little Caesars, Walgreens, CVS, among others
Executive Summary
7-ELEVEN GAS STATION
13150 US Highway 41 S
Gibsonton, FL 33534
List Price............................................................................................ $1,833,000
CAP Rate - Current�����������������������������������������������������������������������������������6.00%
Gross Leasable Area���������������������������������������������������������������������� ± 2,960 SF
Lot Size ....................................................................... ± 51,692 SF (1.19 Acres)
Year Built....................................................................................................... 2000
Number of Gas Pumps�������������������������������������������������������������������Twelve (12)
Annualized Operating Data
Monthly Rent
Current thru 9/30/20
Annual Rent
Increases
CAP Rate
$9,166.67
$110,000
N/A
6.00%
Option 1 - 9/30/25
$10,083.33
$121,000
10%
6.60%
Option 2 - 9/30/30
$11,091.67
$133,100
10%
7.26%
Tenant Summary
Tenant Trade Name
7-Eleven
Type of Ownership
Fee Simple
Lease Guarantor
Corporate
Lease Type
NNN
Landlord Responsibility
None
Original Lease Term
Lease Commencement Date
Rent Commencement Date
15 Years
10/20/99
10/1/00
Lease Expiration Date
9/30/2020
Term Remaining on Lease
± 4.3 Years
Increases
Options
Tenant’s Right of First Refusal
Estoppel
10% in Options
Two (2), Five (5) Year
None
Twenty (20) Days
Matthews Retail Advisors | 5
P ROPERTY O VERVIEW
6 | 7-Eleven & Gas Station
Physical Description
Property Name
7-Eleven & Gas Station
Property Address
13150 US Highway 41 S
Gibsonton, FL 33534
Assessor’s Parcel Number
Zoning
U-11-31-19-ZZZ-000001-74010.0
PD-MU
Site Description
Number of Stories
Year Built
Gross Leasable Area (GLA)
Lot Size
Type of Ownership
Parking
Parking Ratio
Zoning
Landscaping
Topography
One
2000
± 2,960 SF
±51,692 SF (1.19 Acres)
Fee Simple
± 20 Surface Spaces
± 6.76 Surface Spaces: 1,000 SF
PD-MU
Professional
Generally Level
Construction
Foundation
Exterior
Parking Surface
Roof
Concrete Slab
Concrete Block
Concrete Slab
Flat
Matthews Retail Advisors | 7
Tamiami Road ± 45,9000 VPD
FUTURE DEVELOPMENT
SITE
Entitled for ±1,000,000 SF
of Warehouse and several
thousand SF of Office
Big Bend Road ± 17,300 VPD
Matthews Retail Advisors | 9
Tenant Map
10 | 7-Eleven & Gas Station
Regional Map
Matthews Retail Advisors | 11
T ENANT O VERVIEW
7-Eleven is the world’s largest convenience store chain with more
than 56,600 stores in 18 countries, of which approximately 10,500
are in North America. 7-Eleven also is one of the nation’s largest
independent gasoline retailers. Its company’s name was changed
from The Southland Corporation to 7-Eleven, Inc. after approval by
shareholders on April 28, 1999. Founded in 1927 in Dallas, Texas,
7-Eleven pioneered the convenience store concept during its first
years of operation as an ice company when its retail outlets began
selling milk, bread and eggs as a convenience to guests.
Tenant Trade Name
The name 7-Eleven originated in 1946 when the stores were open
from 7 a.m. to 11 p.m. Today, offering busy shoppers 24-hour
convenience, seven days a week is the cornerstone of 7-Eleven’s
business. 7-Eleven focuses on meeting the needs of convenienceoriented guests by providing a broad selection of fresh, high-quality
products and services at everyday fair prices, speedy transactions
and a clean, friendly shopping environment.
Headquarters
Ownership
Tenant
Revenue
Net Worth
Credit Rating (S&P)
Number of Locations (U.S.)
Website
Year Founded
Seven & I Holdings Co., LTD
Private
7-Eleven, Inc.
±$10.36 Billion
±$5.8 Billion
AA±7,800
Irving, TX
www.7-eleven.com
1927
Each store’s selection of about 2,500 different products and services
is tailored to meet the needs and preferences of local guests. Stores
typically vary in size from 2,400 to 3,000 square feet and are most
often located on corners for great visibility and easy access. The
company operates, franchises and licenses approximately 8,600
stores in the U.S. and Canada. Of the more than 7,800 stores the
company operates and franchises in the United States, more than
6,400 are franchised. 7-Eleven, Inc. is privately held and became a
wholly owned subsidiary of Seven-Eleven Japan Co., Ltd. in Tokyo,
Japan, and its affiliates on Nov. 9, 2005.
Matthews Retail Advisors | 13
A REA O VERVIEW
Gibsonton, FL
Gibsonton is located in the Hillsborough County of Florida, approximately seven miles South of Tampa.
Also known as “Showtown, USA”, Gibsonton has been a sideshow wintering town, or a place where
many circus and carnival sideshow performers spend the off-months when not touring the United
States.
Gibsonton is also the home of the largest trade show in the carnival industry. The trade show exhibits
include rides, food supplies and equipment, concession trailers, electrical supplies, insurance
companies, novelty items, plush toys, and jewelry. Gibsonton is the location of the International
Independent Showmen’s Association, Inc (“Gibtown Showmen’s Club”) a non-profit private organization
made up of people in the outdoor amusement industry. The original club building opened in 1966 and
has expanded to be the largest Showmen’s Association in the United States.
Gibtown’s International Independent Showmen’s Museum houses on two floors a wide assortment of
antique equipment, historic printed materials and detailed exhibits that tell the carnival story – most of
it donated by practicing carnies. Carnival items from across the country reflecting nearly a century of
carnival experiences have been donated. “There’s one of the first Ferris Wheels in the country, which
will be assembled upright inside the museum.
Top Employers & Industries - Hillsborough County
14 | 7-Eleven & Gas Station
#
Employer
#
Industries
1
University of South Florida
1
Trade, Transportation and Utilities
2
WellCare
2
Professional & Business Services
3
Tampa General Hospital
3
Education & Health Services
4
Verizon
4
Leisure & Hospitality
5
JP Morgan Chase
5
Financial Activities
6
Citi
6
Public administration
Tampa
The City of Tampa is the largest city in Hillsborough County, is the county seat and is the third most populous city in Florida. It is located on the west coast of
Florida, approximately 200 miles northwest of Miami, 180 southwest of Jacksonville, and 20 miles northeast of St. Petersburg. The population of the city represents
approximately one-third of the total population of Hillsborough County. Tampa’s economy is founded on a diverse base that includes tourism, agriculture, construction,
finance, health care, government, technology, and the port of Tampa. Contributing to the success of the community is the way businesses, City government, and
citizens work together to make Tampa a better place to live.
Today, Tampa is part of the metropolitan area most commonly referred to as the “Tampa Bay Area”. For U.S. Census purposes, Tampa is part of the Tampa-St. PetersburgClearwater, Florida Metropolitan Statistical Area. The four-county area is composed of roughly 2.9 million residents, making it the second largest metropolitan statistical
area (MSA) in the state, and the fourth largest in the Southeastern United States, behind Miami, Washington, D.C. and Atlanta. The Greater Tampa Bay area has over 4
million residents and generally includes the Tampa and Sarasota metro areas. The Tampa Bay Partnership and U.S. Census data showed an average annual growth of
2.47 percent, or a gain of approximately 97,000 residents per year. Between 2000 and 2006, the Greater Tampa Bay Market experienced a combined growth rate of
14.8 percent, growing from 3.4 million to 3.9 million and hitting the 4 million population mark on April 1, 2007. A 2012 estimate shows the Tampa Bay area population
to have 4,310,524 people and a 2017 projection of 4,536,854 people.
Tampa is represented by teams in three major professional sports leagues: the National Football League, the National Hockey League, and Major League Baseball.
The NFL’s Tampa Bay Buccaneers and the NHL’s Tampa Bay Lightning call Tampa home, while the Tampa Bay Rays of the MLB play across the bay in St. Petersburg.
As indicated by their names, these teams, plus several other sports teams, represent the entire Tampa Bay metropolitan area.
Matthews Retail Advisors | 15
Demographics
Population
1-Mile
3-Mile
5-Mile
10-Mile
2021 Projection
3,507
29,284
91,600
319,986
2016 Estimate
3,074
26,112
81,307
290,912
2010 Census
2,377
21,319
65,441
248,529
2000 Census
787
10,392
28,131
159,296
Growth 2016 - 2021
14.08%
12.15%
12.66%
9.99%
Growth 2010 - 2016
29.33%
22.48%
24.25%
17.05%
Growth 2000 - 2010
201.96%
105.15%
132.63%
56.02%
1-Mile
3-Mile
5-Mile
10-Mile
1,172
10,419
31,605
120,011
1,035
9,333
28,259
109,684
Households
2021 Projection
2016 Estimate
2010 Census
818
7,766
23,390
95,286
2000 Census
288
4,037
10,745
61,392
Growth 2016 - 2021
13.28%
11.63%
11.84%
9.42%
Growth 2010 - 2016
26.47%
20.18%
20.82%
15.11%
Growth 2000 - 2010
184.23%
92.35%
117.67%
55.21%
1-Mile
3-Mile
5-Mile
10-Mile
7.21%
7.20%
7.09%
8.79%
2015 Household Income
$0 - $14,999
$15,000 - $24,999
9.10%
7.65%
7.68%
9.69%
$25,000 - $34,999
8.90%
8.01%
8.29%
9.89%
$35,000 - $49,999
12.01%
11.94%
12.83%
14.71%
$50,000 - $74,999
23.04%
22.21%
20.15%
19.29%
$75,000 - $99,999
20.77%
16.92%
16.88%
13.86%
$100,000 - $124,999
10.44%
10.31%
11.16%
9.03%
$125,000 - $149,999
5.06%
6.25%
6.29%
5.37%
$150,000 - $199,999
2.17%
4.30%
5.02%
4.80%
$200,000 - $249,999
0.55%
1.81%
2.15%
1.89%
$250,000 - $499,999
0.63%
2.47%
1.84%
1.91%
$500,000+
0.13%
0.93%
0.61%
0.77%
Average Household Income
$69,378
$82,988
$81,446
$76,403
Median Household Income
$63,873
$67,113
$67,495
$58,965
16 | 7-Eleven & Gas Station
Matthews Retail Advisors | 17
C O N FID EN T I A L I T Y & DI SCL A IMER STATEMEN T
T his Of f er ing M e m o r a n du m co n t a i n s s e l ec t i nform ati on pertai ni ng to the busi ness and affai rs of 7-Eleven Gas Station located at 13150 US Highway
41 S Gibsonton, FL 33534 ( “ P ro p e rt y ” ) . It h as been prepared by Matthews Retai l Advi sors. Thi s Offerin g M emoran d u m may n ot b e all-in clu s ive
o r c o nt a in a ll o f t h e i n f o r m a t i o n a p r o s p e c ti ve purc haser m ay desi re. The i nform ati on c ontai ne d in t h is Offerin g M emoran d u m is con fid en t ial
a nd f ur nis hed s o l e l y f o r t h e p u r p o s e o f a revi ew by a prospec ti ve purc haser of the Property. I t is n ot t o b e u s ed for an y ot h er pu rpos e or
ma d e a v a ila b l e t o a n y o t h e r p e r s o n w i t h out the wri tten c onsent of Sel l er or Matthews Retai l Ad vis ors . Th e mat erial is b as ed in part u pon
inf o r ma t io n su p p l i e d by t h e S e l l e r a n d i n part upon fi nanc i al i nform ati on obtai ned from sourc es it d eems reliab le. Own er, n or t h eir officers ,
emp lo y ee s , o r a g e n t s m a ke s a n y r e p r e sentati on or warranty, express or i m pl i ed, as to the accu racy or complet en es s of t h is Offerin g
Me mo r a nd um o r a n y o f i t s co n t e n t s a n d n o l egal l i abi l i ty i s assum ed or shal l be i m pl i ed wi th res pect t h eret o. Pros pect ive pu rch as ers s h ou ld
ma ke t heir o w n p r o j e ct i o n s a n d f o r m t h e i r own c onc l usi ons wi thout rel i anc e upon the m ateri al con t ain ed h erein an d con d u ct t h eir own d u e
d ilig enc e.
B y a c kno w le dg i n g y o u r r e ce i p t o f t h i s O fferi ng Mem orandum for the Property, you agree:
1. T he Of f e r i n g M e m o r a n du m a n d i t s c ontents are c onfi denti al ;
2. Yo u w il l h o l d i t a n d t r e a t i t i n t h e s tri c test of c onfi denc e; and
3. Yo u w ill n o t , di r e ct l y o r i n di r e ct l y, di sc l ose or perm i t anyone el se to di sc l ose thi s O fferi n g M emoran d u m or it s con t en t s in an y fas h ion
o r ma nn e r de t r i m e n t a l t o t h e i n t e rest of the Sel l er.
Ow ne r a nd Mat t h e w s Re t a i l A dv i s o r s e x pressl y reserve the ri ght, at thei r sol e di sc reti on, to reject an y an d all expres s ion s of in t eres t or
o f f er s t o p ur ch a s e t h e P r o p e r t y a n d t o t erm i nate di sc ussi ons wi th any person or enti ty revi ewin g t h is Offerin g M emoran d u m or makin g an
o f f er t o p ur c h a s e t h e P r o p e r t y u n l e s s a nd unti l a wri tten agreem ent for the purc hase and sal e of t h e Propert y h as b een fu lly execu t ed an d
d e liv er e d .
I f y o u w ish no t t o p u r s u e n e g o t i a t i o n s l e adi ng to the ac qui si ti on of the Property or i n the future you d is con t in u e s u ch n egot iat ion s , t h en you
a g r ee t o p ur g e a l l m a t e r i a l s r e l a t i n g t o t hi s Property i nc l udi ng thi s O fferi ng Mem orandum .
A p r o sp ec t iv e p u r ch a s e r ’s s o l e a n d e xcl usi ve ri ghts wi th respec t to thi s prospec ti ve transac ti on , t h e Propert y, or in format ion provid ed h erein
o r in c o nne c t i o n w i t h t h e s a l e o f t h e P r o perty shal l be l i m i ted to those expressl y provi ded i n an execu t ed Pu rch as e Agreemen t an d s h all b e
s ub je c t t o t he t e r m s t h e r e o f. In n o e v e n t shal l a prospec ti ve purc haser have any other c l ai m s again s t Seller or M at t h ews Ret ail Ad vis ors or
a ny o f t heir a ff i l i a t e s o r a n y o f t h e i r r e s p ec ti ve offi c ers, Di rec tors, sharehol ders, owners, em ployees , or agen t s for an y d amages , liab ilit y, or
c a us es o f a c t i o n r e l a t i n g t o t h i s s o l i ci t a t i on proc ess or the m arketi ng or sal e of the Property.
T his Of f er ing M e m o r a n du m s h a l l n o t be deem ed to represent the state of affai rs of the Prope rt y or con s t it u t e an in d icat ion t h at t h ere h as
b e en no c ha nge i n t h e s t a t e o f a f f a i r s o f the Property si nc e the date thi s O fferi ng Mem orandum.
18 | 7-Eleven & Gas Station
Matthews Retail Advisors | 19
™
Aron Cline
Matt Coates
VP & Senior Director,STNL
Associate
DIRECT +1.310.919.5805
MOBILE +1.714.366.1236
matt.coates@matthews.com
License No. 01980718
DIRECT +1.310.919.5816 MOBILE
+1.818.632.0233
aron.cline@matthews.com
License No. 01904371
Jeffrey Terwilliger
Broker of Record
License No. BK3122117