WALMART NEIGHBORHOOD MARKET 7636 Middle Valley Road

Transcription

WA L M A R T N E I G H B O R H O O D M A R K E T
7 6 3 6 M i d d l e Va l l e y Ro a d
H i x s o n ( C h a t t a n o o g a ) , Te n n e s s e e 3 7 3 4 3
EXCLUSIVE NET LEASE OFFERING
Marcus & Millichap 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, Marcus & Millichap has not and will not verify
any of this information, nor has Marcus & Millichap
conducted any investigation regarding these matters.
Marcus & Millichap 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. Marcus & Millichap 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.
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, PCB’s or asbestos,
the compliance with 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
Marketing Brochure has been obtained from sources we
believe to be reliable; however, Marcus & Millichap has
not verified, and will not verify, any of the information
contained herein, nor has Marcus & Millichap 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.
NON-ENDORSEMENT NOTICE
By accepting this Marketing Brochure you agree to release
Marcus & Millichap Real Estate Investment Services 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.
CONFIDENTIALITY AND DISCLAIMER
The information contained in the following Marketing
Brochure is proprietary and strictly confidential. It is
intended to be reviewed only by the party receiving it from
Marcus & Millichap and should not be made available to
any other person or entity without the written consent of
Marcus & Millichap. This Marketing Brochure has been
prepared to provide summary, unverified 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. Marcus & Millichap has not made
any investigation, and makes no warranty or
representation, with respect to the income or expenses for
Marcus & Millichap Real Estate Investment Services, Inc.
(“M&M”) is not affiliated with, sponsored by, or endorsed
by any commercial tenant or lessee identified in this
marketing package. The presence of any corporation’s logo
or name is not intended to indicate or imply affiliation
with, or sponsorship or endorsement by, said corporation
of M&M, its affiliates or subsidiaries, or any agent, product,
service, or commercial listing of M&M, and is solely
included for the purpose of providing tenant lessee
information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR
MORE DETAILS.
Executive Summary
Tenant Overview
Financial Offering Summary
Guarantor Overview
Property Description
Aerial Photo
Property Photos
Regional Map
State Map
Market Overview
Demographic Summary Report
Property Name
Location
Walmart Neighborhood Market #5188
7636 Middle Valley Road
Hixson, TN
Price
CAP Rate
Net Operating Income
$12,645,560
5.00%
$632,278
Price per SF
$307.55
Rent per SF
$15.38
Building Size (SF)
41,117
Lot Size
Year Built
7.88 Acres
The lease is unconditionally guaranteed by Wal-Mart, Inc., which has an S&P
rating of “AA”/Stable. Walmart’s “excellent” business risk profile reflects its
market leadership in general merchandise and groceries, large scale, and highly
efficient operations which provide the company with significant competitive
advantage.
The property consists of brand-new, 2016 construction and is subject to a 15year absolute triple net (NNN) lease. There are 17, 5-year tenant renewal
options, totaling a potential lease term of 100 years.
2016
Marcus & Millichap is pleased to present the newly constructed Walmart
Neighborhood Market in Hixson, Tennessee. Built in 2016 and situated on 7.88
acres of land, Walmart is comprised of 41,117 square feet of retail space which
includes a drive-thru pharmacy, and a six-pump fuel station on an outparcel to
the property. Walmart has an established loyal customer base, which will be
served by this new location.
The subject property provides an investor the opportunity to acquire an asset
that is leased to an investment grade tenant and has attractive lease terms. This
Walmart Neighborhood Market is subject to a 15-year absolute triple net (NNN)
lease. The current annual rent is $632,278 which is subject to a 3% rental
increase every five years throughout the base term and a 5% rental increase in
each of the 17, five-year option periods. There are zero landlord responsibilities;
tenant is responsible for real estate taxes, insurance, and any costs associated
with repairs and maintenance to both structural and non-structural components
of the building, including the roof.
Walmart has an established loyal customer base, which will be well-served by
this Neighborhood Market location.
Walmart has demonstrated a strong track record of sales and profit growth
through successful store development and continues to portray predictably
strong and consistent earnings and cash flow. Similar Walmart Neighborhood
Markets generate roughly $25 million in annual sales; a robust $600 per square
foot.
The site features a fuel center which creates an added layer of consumer draw
throughout the day.
Walmart is well-positioned to deliver for customers because of their financial
strength to invest in growth. Walmart has an AA credit rating, unmatched in
retail, and has consistently delivered strong cash flow for many years. This
property provides an investor with an opportunity to invest in a rapidly growing
concept of Walmart Stores, Inc.
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. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap
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Expanding the concept to more markets
Walmart Neighborhood Markets were designed in 1998 as a smaller-footprint
option for communities in need of a pharmacy, affordable groceries and
merchandise. Each one is approximately 38,000 square feet and employs up to 95
associates.
Fresh, Affordable Groceries
The new store offers fresh produce and a full line of groceries from leading brand
names, including organic selections. By working with growers Walmart is able to
provide farm-grown quality produce at added convenience and low prices. There is
also a wide variety of meat and bakery selections, including fresh baked breads and
deli meats.
Emphasis on local and organic produce
The Right Size Store Offering More Convenience
The new store is approximately 41,000 square feet and offers a wide assortment to
meet the needs of Bakersfield residents. In addition to groceries, the store features
health and beauty aids, pet products and cleaning supplies. Shopping is more
convenient than ever as Bakersfield residents can shop an assortment of 7 million
items on Walmart.com, many of which can be shipped for free to the new Walmart
Neighborhood Market.
The pharmacy offers a full range of products and services and pharmacy team
members are ready to assist customers with product and prescription questions.
Bakersfield residents can easily transfer prescriptions and order refills on the go with
the Walmart mobile app for iPhone and Android.
5
Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save money and live better – anytime and anywhere – in retail
stores, online, and through their mobile devices. Each week, more than 250 million customers and members visit our 11,462
stores under 71 banners in 27 countries and e-commerce websites in 11 countries. With fiscal year 2015 sales of nearly $486
billion, Walmart employs more than 2 million associates worldwide – 1.3 million in the U.S. alone. Walmart continues to be a
leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found
by visiting http://corporate.walmart.com on Facebook at http://facebook.com/walmart and on Twitter at
http://twitter.com/walmart. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.
Price, access, assortment & experience drive a customer’s choice of
retailer. Historically, Walmart led on price and assortment. Retail
environments are more competitive today, especially with e-commerce.
To win, Walmart will lead on price, invest to differentiate on access, be
competitive on assortment & deliver a great experience.
Largest; U.S.; Three Formats
~60% of fiscal 2015 net sales
2nd Largest; 27 countries
~28% of fiscal 2015 net sales
Founder, Sam Walton
Walmart began building Supercenters in 1988 –
a decision that led us to become the nation’s
largest grocer. Each store is about 182,000
square feet and employs about 300 associates.
Since Sam Walton opened his first discount
store in Rogers, Ark., in 1962, we've built
hundreds across the U.S.
Walmart Supercenters offer a one-stop
shopping experience for electronics, apparel,
toys and home furnishings with the added
convenience of a grocery store with fresh
produce, bakery, deli and meat and dairy
products.
Smaller than a Supercenter, discount stores
employ about 200 associates and offer
electronics, apparel, toys, home furnishings,
health and beauty aids, hardware and more in
about 106,000 square feet of open, brightly lit
space.
Most Supercenters are open 24 hours, and may
also include specialty shops such as
pharmacies, banks, hair and nail salons, namebrand restaurants, vision centers or health
clinics.
Walmart Home Office
702 SW 8th Street
Bentonville, AR 72716-8611
Membership-only warehouse club
48 states; ~12% of fiscal net sales
Walmart Neighborhood Markets were
designed in 1998 as a smaller-footprint option
for communities in need of a pharmacy,
affordable groceries and merchandise. Each
one is approximately 38,000 square feet and
employs up to 95 associates.
Walmart Neighborhood Markets offer fresh
produce, meat and dairy products, bakery and
deli items, household supplies, health and
beauty aids and a pharmacy
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Property Name
Property Type
Ownership
Walmart Neighborhood Market #5188
Net-Leased Retail Store
Public
NYSE: WMT
Tenant
Guarantor
Wal-Mart Stores East, LP
Wal-Mart Stores, Inc.
Rent Increases
Year 1 - 5
Year 6 - 10
Year 11 - 15
Annual Rent
$632,278
$651,246
Monthly Rent
$52,689.83
$54,270.53
$670,784
$55,898.64
Annual Rent
CAP Rate
Purchase Price
$632,278
5.00%
$12,645,560
("Walmart, Inc.")
Lease Term
15 Years
Lease Commencement
January 27, 2016
Lease Expiration
January 27, 2031
Lease Term Remaining
Lease Type
15 Years
Absolute Triple Net (NNN)
Roof & Structure
Tenant Responsible
Rental Increases
3% every 5 Years
Options to Renew
Rental Increases in Options
17, 5-Year Options
5% Every 5 Years
7
In fiscal 2016, we plan to add between 26 and 30 million square feet, which will include a
continued investment in Neighborhood Markets and a moderation of Supercenter growth in
the U.S. compared to recent fiscal years. In addition, we plan to accelerate the growth of our
digital retail capabilities by investing $1.2 billion to $1.5 billion in e-commerce websites and
mobile commerce applications that will include technology, infrastructure and other areas to
better serve our customers and support our stores and clubs. As we continue to add new
stores and clubs in the U.S., we do so with an understanding that additional stores and clubs
may take sales away from existing units. We estimate the negative impact on comparable
store and club sales as a result of opening new stores and clubs was approximately 0.9% and
0.8% in fiscal 2015 and 2014, respectively.
(Amounts in millions)
Unit counts at period end
Total Revenues
Adjusted Operating Income
Average Invested Capital
Return on Investment (ROI)
Return on Assets (ROA)
Total Assets
Total Current Liabilities
Long-Term Debt
Total Equity
Total Liabilities, redeemable non controlling
interest, and equity
Fiscal 2015
11,453
485,651
$39,210
$232,704
16.9%
8.2%
$203,706
$65,272
$41,086
$85,937
Fiscal 2014
10,942
476,294
$38,689
$227,661
17.0%
8.1%
$204,751
$69,345
$41,771
$81,339
$203,706
$204,751
Walmart will add 26-30
million net retail square feet in fiscal 2016
Walmart is making a $1
billion incremental investment in strategic people initiatives within U.S.
businesses. Last year, over $7 billion was returned to shareholders. This
year, the annual dividend was increased to $1.96 per share,
representing 42 consecutive years of dividend increases.
for the Fiscal year
ended January 31, 2015. Walmart ranked first on the 2014 Fortune 500
List of the world’s largest companies by revenues.
As of 6/3/2015
NYSE Ticker
Price
Change
Volume
% Change
52 Week High
52 Week Low
Market Cap
Basic net income per common share*:
Diluted net income per common share*:
Weighted-average common shares outstanding
Basic
Diluted
Dividends declared per common share:
WMT
$74.89
$0.36
6,092,300
0.48%
$90.97
$72.61
$239.59B
$5.07
$5.05
3,230
3,243
$1.92
*attributable to Walmart
*Data reflects five-year period including fiscal 2011 through 2015
Walmart 2015 Annual Report: http://stock.walmart.com/files/doc_financials/2015/annual/2015-annual-report.pdf
Rating Agency
Standard &Poor's
Moody's Investors Service
Fitch Ratings
Commercial Paper
A-1+
P-1
F1+
Long-Term Debt
AA
Aa2
AA
8


The Subject Walmart Neighborhood Market property is located at 7636
Middle Valley Road in Hixson, Tennessee. Hixon is a neighborhood in the City
of Chattanooga. Chattanooga, the fourth largest city in the state, is located in
Southeast Tennessee near the border of Georgia at the junction of four
interstate highways.


There are approximately 53,506 people within a five-mile radius of this
property and 177,393 people within a ten-mile radius. The subject property is
located off of Middle Valley Road, with average daily traffic counts of 19,931
vehicles. U.S. Highway 27 is two miles away, which brings in an additional
40,420 vehicles to the area.
ADTC 19,931
This Walmart is located near the Ganns Middle Valley Elementary School. The
area also includes a Dollar General, CVS Pharmacy, McDonald’s, Subway and
Domino’s. Four miles south from the subject property has many nationally
recognized retailers. These include Walmart Supercenter, Lowe’s, Target,
Home Depot, Kmart, Best Buy, Marshalls, Olive Garden, Ruby Tuesday,
Outback Steakhouse, Buffalo Wild Wings, and IHOP amongst others. The
Northgate Mall is also in that area and is anchored by Sears, Burlington Coat
Factory, Belk and Old Navy.
Chattanooga has received national recognition for the renaissance of its
beautiful downtown and redevelopment of its riverfront. Attractions such as
the Tennessee Aquarium, Lookout Mountain, Civil War battlefield sites, the
African American Museum, and the Appalachian Trail bring thousands of
people to the area, as do events like the Riverbend Festival, Bessie Smith
Strut, Fall Color Cruise, the Creative Discovery Museum for children, and the
Southern Writers Conference. Chattanooga is the home of NCAA Division I-AA
national football championships and hosts the national softball championships
every year. The local economy includes a diversified mix of manufacturing and
service industries, four colleges, and several preparatory schools known
throughout the South. With its scenic beauty, stable population and economy,
civic vitality and cross-sector partnerships, fiscal integrity, and strategic
location, Chattanooga is known as one of the most progressive and livable
mid-size cities in the U.S. In this decade, the city has won 3 national awards
for outstanding "livability", and 9 Gunther Blue Ribbon Awards for excellence
in housing and consolidated planning.
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 Established - 1839
 Named For - Small Indian Hamlet
 Population - 173,000 (City)
 Location - 676 feet elevation. Southeast Tennessee near the border of
Georgia
 Nicknames -Scenic City, River City, Chatt, Nooga, Chattown, Gig City
 Major Highways - Interstates 24, 75, 69, , U.S. Routes 11, 64, 41, 72,
76, 27, 127
 Colleges / Universities - University of Tennessee at Chattanooga,
Chattanooga State Community College
 Military Installations - U.S. Coast Guard, McGhee Tyson Air National
Guard Base, U.S. Air Force
 Airports - Chattanooga Metropolitan Airport
Chattanooga, the 4th largest city in the state, is located in Southeast Tennessee
near the border of Georgia at the junction of four interstate highways. The city
has received national recognition for the renaissance of its beautiful downtown
and redevelopment of its riverfront.
 Points of Interest- Lookout Mountain, Rock City, Tennessee Aquarium,
Ruby Falls
The city boasts the most productive affordable housing program in the nation,
and is notable for leveraging development funds through effective
public/private partnerships, with significant civic involvement on the part of
private foundations. Chattanooga was one of the first US cities to effectively use
a citizen visioning process to set specific long-range goals to enrich the lives of
residents and visitors.
With its scenic beauty, stable population and economy, civic vitality and crosssector partnerships, fiscal integrity, and strategic location, Chattanooga enters
the 21st century as one of the most progressive and livable mid-size cities in the
US. In this decade the city has won 3 national awards for outstanding "livability",
and 9 Gunther Blue Ribbon Awards for excellence in housing and consolidated
planning.
19
Demographics
Demographic Summary Report
Population
In 2014, the population in your selected geography is 177,392. The population has
changed by 15.60% since 2000. It is estimated that the population in your area will be
184,985 five years from now, which represents a change of 4.28% from the current
year. The current population is 48.20% male and 51.79% female. The median age of the
population in your area is 40.7, compare this to the Entire US average which is 37.3. The
population density in your area is 564.43 people per square mile.
POPULATION
3-Mile
5-Mile
10-Mile
2010
23,988
51,158
169,280
2014
25,235
53,506
177,393
2019
26,241
55,825
184,985
3-Mile
5-Mile
10-Mile
Average
$78,156
$73,549
$69,599
Median
$62,449
$56,786
$50,405
Income
In 2014, the median household income for your selected geography is $50,405,
compare this to the Entire US average which is currently $51,972. The median
household income for your area has changed by 16.79% since 2000. It is estimated that
the median household income in your area will be $59,737 five years from now, which
represents a change of 18.51% from the current year.
The current year per capita income in your area is $28,527, compare this to the Entire
US average, which is $28,599. The current year average household income in your area
is $69,599, compare this to the Entire US average which is $74,533.
2014 HOUSEHOLD INCOMES
TOP EMPLOYERS IN CHATTANOOGA
Employers
Employment
In 2014, there are 63,060 employees in your selected area, this is also known as the
daytime population. The 2000 Census revealed that 62.31% of employees are employed
in white-collar occupations in this geography, and 37.63% are employed in blue-collar
occupations. In 2014, unemployment in this area is 6.47%. In 2000, the average time
traveled to work was 24.2 minutes.
Hamilton County Dept. of Education
BlueCross BlueShield of Tennessee
Tennessee Valley Authority
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. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus &
Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap
20

WALMART NEIGHBORHOOD MARKET 7636 Middle Valley Road

Transcription

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