WESTERN HILLS SQUARE

Transcription

2314 FERGUSON ROAD, CINCINNATI, OH 45238
OFFERING MEMORANDUM
™
R E T A I L
A D V I S O R S
C O N FID EN T I A L I T Y & DI SCL A IMER STATEMEN T
This Offering Memorandum contains select information pertaining to the business and affairs of Western Hills Square located at 2314
Ferguson Road, Cincinnati, OH 45238 (“Property”). It has been prepared by Matthews Retail Advisors . This Offering Memorandum
may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in
this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the
Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller
or Matthews Retail Advisors . The material is based in part upon information supplied by the Seller and in part upon financial
information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation
or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no
legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections
and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum for the Property, you agree:
1. The Offering Memorandum and its contents are confidential;
2. You will hold it and treat it in the strictest of confidence; and
3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents
in any fashion or manner detrimental to the interest of the Seller.
Owner and Matthews Retail Advisors expressly reserve the right, at their sole disc retion, to reject any and all expressions
of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering
Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of
the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such
negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information
provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed
Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims
against Seller or Matthews Retail Advisors or any of their affiliates or any of their res pective officers, Directors, shareholders,
owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the
marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that
Matthews Retail Advisors
Table of Contents
™
PRICING & FINANCIAL ANALYSIS
Investment Highlights.................................................... 2
Executive Summary...................................................... 3
Assumptions................................................................ 4
Schedule of Prospective Cash Flow................................. 5
Rent Roll...................................................................... 6
Company Overviews.................................................... 7
Lease Abstracts............................................................ 9
R E T A I L
A D V I S O R S
PROPERTY DESCRIPTION
Physical Description.................................................... 18
Tenant Map............................................................... 19
Regional Map............................................................ 21
Local Map................................................................. 21
Birds Eye................................................................... 23
DEMOGRAPHICS
City Overview | Cincinnati, OH.................................. 25
Demographics........................................................... 26
Companies with Ops or HQ in Cincinnati.................30-31
E XC LUS I V ELY L I ST ED BY:
Kyle B. Matthews, CCIM
Chairman & CEO
DIRECT +1.310.919.5757
MOBILE +1.310.622.3161
kyle.matthews@matthews.com
License No. 01469842
Patrick Toomey
Managing Partner
DIRECT +1.310.919.5765
MOBILE +1.310.403.4984
patrick.toomey@matthews.com
Shenan P. Murphy, CCIM
Broker of Record
License No. 42901
PRICING AND FINANCIAL ANALYSIS
DEMOGRAPHICS
WestPark
Retirement
Ferg
uson
OFFERING MEMORANDUM | Western Hills Square
Pricing & Financial Analysis
™
DEMOGRAPHICS
Investment Overview
High Credit, Stable Income
Low Management Hassle
• 100% leased, two tenant retail center with corporate signature lease with PetSmart and
local Hallmark operator
• Two-tenant asset with net leases - perfect for out-of-town investors
• Established, high-credit tenants will require limited oversight
• PetSmart (NASDAQ: PETM, S&P: BB+), is one of the country’s largest pet supply retailers,
with over 1,200 locations and revenues of consumer farm specialty retailer in the U.S.,
with over 1,300 locations, and nearly $6 billion in annual sales
• High-quality construction with little near-term deferred maintenance
• Stable Investment - PetSmart comprises over 82% of the revnue for this investment
Flagship Property & Ideal 1031 Exchange Replacement
• Both PetSmart and Hallmark have successfully operated at this location since its
construction in 1998
• Stable Income with improving cash-on-cash returns
• PetSmart’s lease expires in 2022 with four (4) five (5) year options to extend; fixed
increases every five (5) years on each option
• Low management/low hassle net leases with increases
• No existing financing in place; obtain new financing at historically low rates
• Hallmark’s lease expires in 2019, with a 7% rent increase in 2016
High Traffic Location
Stable, Dense Midwest Demographics
• Located in Western Hills Square, anchored by Walmart and Kroger
• 17,322 people within 1 mile radius, with Average Household Income of $44,442
• Proximate to 333,000 SF Glenway Crossing Shopping Center and Western Hills
Marketplace with nationally recognized tenants Dick’s Sporting Goods, Michael’s, Shoe
Carnival, Best Buy, and Panera Bread
• Large radius draw - located in a dense in-fill suburb of Cincinnati with limited immediate
competition causes there to be a larger draw for Kroger and Walmart
P. 2
• Major employers in Cincinnati include: Proctor & Gamble, Mitsubishi Automotive
Electric, Toyota Motor Engineering NA, Fifth Third Bank, First Financial Bank, Cintas,
Sunny Delight Beverages, Miami University, University of Cincinnati, US Playing Card
Company, GE Aviation, Kroger, and Macy’s
DEMOGRAPHICS
Financial Overview
EXECUTIVE SUMMARY
2314 FERGUSON RD
CINCINNATI, OH 45238
List Price........................................................................................... $5,490,000
Gross Leasable Area�� 33,579 SF
Price/SF...........................................................................................................$163
CAP Rate - Current��7.30%
Year Built��1998
Lot Size �� 3.01 Acres
Annualized Operating Data
Income
Gross Potential Rent
Expense Reimbursements
Recycling Income
Gross Potential Income
Vacancy/Collection Allowance
Effective Gross Income
Western Hills Square | OFFERING MEMORANDUM
Year 1
Base Rent
$431,198
$186,916
$5,600
$623,714
(5,991)
$617,723
Total Expenses
$216,420
Net Operating Income
$401,303
P. 3
DEMOGRAPHICS
Assumptions
Property Timing
Property Operating Parameters
Market Rents
Start of Analysis
Sept 2016
Anchor
End of Analysis
Aug 2026
Jr. Anchor
Analysis Period
10 Years
Capital Expense (Year 1):
$12.95
$15.15
Lease Type
NNN
Capital Reserves
$0.15/SF
Operating Expenses (Year 1):
Real Estate Taxes
$155,188
Insurance
$2,500
CAM
$40,200
Management Fees
Growth Rates:
Market Rents
3%
Operating Expenses
3%
Real Estate Taxes
2%
Capital Reserves
3%
CPI
3%
MARKET LEASING
ASSUMPTIONS
$216,305
Amount Reimbursed by Tenants
$186,901
General Vacancy*:
Year 1
5.00%
Thereafter
5.00%
*PetSmart is excluded from the General Vacancy Factor
Jr. Anchor
Renewal Probability
75%
75%
Market Rent (SF/YR)
$12.95
$15.15
12 Months
6 Months
Tenant Improvements
$15/SF new
$5/SF renew
$15/SF new
$5/SF renew
Leasing Commissions
6% new
3% renew
6% new
3% renew
Lease Term
10 Years
5 Years
Lease Type
NNN
NNN
Downtime
Anchor
$18,417
Total Operating Expenses
P. 4
DEMOGRAPHICS
Schedule of Prospective Cash Flow
Year 1
Year 1
$ / SF May-2016
Year 2
May-2017
Year 3
May2018
Year 4
Year 5
May2019 May-2020
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
May-2021 May-2022 May-2023 May-2024 May-2025 May-2026
EFFECTIVE GROSS REVENUE
Base Rental Revenue
$12.84
431,198
431,448
431,188
430,926
430,926
438,678
444,216
448,483
457,016
457,016
464,768
Absorption & Turnover Vacancy
$0.00
0
0
(13,394)
0
0
0
0
(15,527)
0
0
0
$12.84
431,198
431,448
417,794
430,926
430,926
438,678
444,216
432,956
457,016
457,016
464,768
$5.57
186,916
191,006
189,187
198,766
203,137
207,623
212,203
210,572
221,637
226,540
231,557
Scheduled Base Rental Revenue
Expense Reimbursement Revenue
Recycling
Total Potential Gross Revenue
General Vacancy
TOTAL EFFECTIVE GROSS REVENUE
$0.17
5,600
5,600
5,600
5,600
5,600
5,600
5,600
5,600
5,600
5,600
5,600
$18.57
623,714
628,054
612,581
635,292
639,663
651,901
662,019
649,128
684,253
689,156
701,925
($0.18)
(5,991)
(6,039)
0
(6,050)
(6,086)
(6,125)
(6,164)
0
(6,883)
(6,925)
(6,968)
$18.40
617,723
622,015
612,581
629,242
633,577
645,776
655,855
649,128
677,370
682,231
694,957
189,174
OPERATING EXPENSES
Real Estate Taxes
$4.62
155,188
158,292
161,458
164,687
167,981
171,340
174,767
178,262
181,828
185,464
Insurance
$0.07
2,500
2,575
2,652
2,732
2,814
2,898
2,985
3,075
3,167
3,262
3,360
CAM
$1.05
35,200
36,256
37,344
38,464
39,618
40,806
42,031
43,292
44,590
45,928
47,306
Utilities - Electricity
$0.15
5,000
5,150
5,305
5,464
5,628
5,796
5,970
6,149
6,334
6,524
6,720
$0.55
18,532
18,660
18,377
18,877
19,007
19,373
19,676
19,474
20,321
20,467
20,849
TOTAL OPERATING EXPENSES
$6.45
216,420
220,933
225,136
230,224
235,048
240,213
245,429
250,252
256,240
261,645
267,409
NET OPERATING INCOME
$11.95
401,303
401,082
387,445
399,018
398,529
405,563
410,426
398,876
421,130
420,586
427,548
Management
LEASING & CAPITAL COSTS
Tenant Improvements
$0.00
0
0
39,784
0
0
0
0
46,120
0
0
0
Leasing Commissions
$0.00
0
0
15,068
0
0
0
0
17,468
0
0
0
6,769
$0.15
5,037
5,188
5,344
5,504
5,669
5,839
6,014
6,195
6,381
6,572
Deferred Maintenance Items
Capital Reserves
$2.98
100,000
0
0
0
0
0
0
0
0
0
0
TOTAL LEASING & CAPITAL COSTS
$3.13
105,037
5,188
60,196
5,504
5,669
5,839
6,014
69,783
6,381
6,572
6,769
$8.82
296,266
395,894
327,249
393,514
392,860
399,724
404,412
329,093
414,749
414,014
420,779
CASH FLOW
P. 5
DEMOGRAPHICS
Rent Roll
Suite
000A
Tenant
PetSmart
GLA
26,579
% of GLA
79.15%
Lease
Type
NNN
Lease
Commencement
3/2/1998
Lease
Expiration
1/31/2022
Annual Rent
Rent/SF
Changes
On
Changes To
Options
$344,198
$12.95
Option 12/1/2022
$357,487
4 5-Year
Option 22/1/2027
$370,777
Option 32/1/2032
$384,066
Option 42/1/2037
$397,356
3/2016
$80,750
3/2017
$81,250
000B
Ann’s Hallmark
5,000
14.89%
NNN
9/21/1998
2/28/2019
$75,750
$15.15
000B
Ann’s Hallmark Storage
2,000
5.96%
Gross
9/21/1998
2/28/2019
$6,000
$3.00
Occupied
33,579
100.00%
$425,948
$12.68
Vacant
Total
33,579
0.00%
100.00%
P. 6
DEMOGRAPHICS
Company Overview
Tenant
Ownership
Credit Rating
Rating Agency
Revenue
No. of Locations
Headquartered
Web Site
Year Founded
PetSmart, Inc.
Private
B+
Standard & Poor’s
$6.9 Billion
1,300+
Phoenix, AZ
www.petsmart.com
1986
PetSmart, Inc., together with its subsidiaries, operates as a specialty retailer of
products, services, and solutions for pets in the United States, Puerto Rico, and
Canada. The company offers consumables, such as pet food, treats, and litter; and
hardgoods, which include pet supplies and other goods comprising collars,
leashes, health care supplies, grooming and beauty aids, toys, apparel, and pet
beds and carriers, as well as aquariums and habitats, accessories, décor, and
filters for fish, birds, reptiles, and small pets. It also provides fresh-water fish, small
birds, reptiles, and small pets; and pet services, such as grooming, including
precision cuts, baths, nail trimming and grinding, and teeth brushing, as well as
training, boarding, and day camp services. In addition, the company operates
PetSmart PetsHotels that offer boarding for dogs and cats; provides personalized
pet care, temperature controlled rooms and suites, daily specialty treats and play
time, and day camp services for dogs; and operates veterinary hospitals, which
offer services comprising routine examinations and vaccinations, dental care, a
pharmacy, and surgical procedures. In 2014 PetSmart was acquired by BC Partners.
PetSmart, Inc. was founded in 1986 and is based in Phoenix, Arizona
Source:Yahoo!Finance
P. 7
DEMOGRAPHICS
Company Overview
Tenant Trade Name
Lessee
Guarantor
Hallmark
Ann’s, Inc.
Ann’s Of Kentucky, Inc.
Ownership
Private
No. of Locations (parent)
40,000
No. of Employees (parent)
24,000
Headquartered (parent)
Web Site
Year Founded/Acquired (parent)
Kansas City, MO
www.hallmark.com
1903/1984
Hallmark makes the world a more caring place by helping people laugh, love, heal,
say thanks, reach out and make meaningful connections with others. Through
moments big and small, and through both happy and challenging times, Hallmark
helps give voice to caring thoughts and emotions with tangible reminders of
appreciation, celebration, belonging and love. Hallmark was founded more than a
century ago by a teenage entrepreneur with a couple of shoeboxes of postcards
under his arm and the American dream in his heart. Today’s Hallmark is a $4 billion
business with greeting cards and other products sold in more than 40,000 retail
stores across the U.S. – including top mass retailers and the network of Hallmark
Gold Crown stores. Our brand also reaches people online at Hallmark.com and
through our retail partners’ web sites, and on television through and cable’s toprated Hallmark Channels and Hallmark Hall of Fame movies. Worldwide, Hallmark
offers products in more than 30 languages available in 100 countries. Hallmark
subsidiary Crayola inspires children’s creativity through Crayola® brand crayons
and markers as well as innovative art tools, crafting activities and creative toys that
give kids the power to explore, discover, play and dream. But as big as we’ve
become, and as iconic as our brand is today, we’re still privately held, still based in
Kansas City, Mo., and still led by members of our founding family. More importantly,
Hallmark continues to stay close to people’s needs, understanding what is
universal in the human heart and meeting those needs with products and
experiences that bring people together.
Source:Yahoo!Finance
P. 8
DEMOGRAPHICS
Lease Abstract - PetSmart
Lease Type:
Net
Tenant:
PETSMART, Inc.
Property Address:
447 N. Milwaukee Ave. Vernon Hills, IL 60061
Guaranty:
None
Premises:
26,579 (Pursuant to First Amendment to Shopping Center Lease)
Date of Lease:
July 25, 1997
Rent Commencement:
March 22, 1998
Lease Expiration:
January 31, 2022 (Pursuant to Second Amendment to Shopping Center Lease)
Lease Term:
Fifteen (15) Years, Zero (0) months
Renewal Options:
Four (4) Five (5) (Pursuant to Second Amendment to Shopping Center Lease)
March 22, 1998 - January 31, 2004 |$317,619.05/annum ($26,468.25/month)
February 1, 2004 - January 31, 2009 | $330,908.55/annum ($27,575.71/month)
February 1, 2009 - January 31, 2022 | $344, 198.05/annum ($28,683.17/month)
Options
Rent:
(Pursuant to Second Amendment to Shopping Center Lease)
CPI Adjustments:
P. 9
For each subsequent rental period during the Initial Term and any Renewal Period, the Annual Base Rent shall equal the Annual Base Rent for the previous
rental period increased by a percentage amount equal to two (2) times the percentage change during such previous rental be reduced below the Base
Rent for the previous rental period in the U.S. Department of Labor Consumer Price Index for All Urban Consumers U.S. Cities Average (1984-86=100)
(“CPI”); provided however, that in no event shall the Base Rent for any rental period be reduced below the Base Rent for such rental period set forth in
such chart (Section 4.2)
DEMOGRAPHICS
Co-Tenancy should occur if:
(a) Walmart (or the occupant of more than twenty percent (20%) of the WalMart premises commences and continues on a regular basis to use its premises
for a non-retail use; or
(b) Kroger (or the occupant of more than twenty percent (20%) of the WalMart premises commences and continues on a regular basis to use its premises
for a non-retail use; or
Co-Tenancy Requirement:
Both WalMart and Kroger (or a successor, assignee, tenant or subtenant thereof) cease to operate as a retail use in at least eighty percent (80%) of their
respective premises as shown on Exhibit A for a period of more than ninety (90) days (except if such cessation is in conjunction with a casualty in which
event such period shall be extended to one hundred eighty (180) days, then in such event and provided Tenant is open and operating on a regular basis
as a retail use, the Base Rent shall be immediately reduced to an amount equal to seventy-five percent (75%) of the amount otherwise in effect pursuant
to Section 4 of this Lease (the date of such reduction in the Base Rent in hereinafter referred to as the “Rent Reduction Date”). The base Rent shall be reduced by an additional five percent (5%), down to a minimum of fifty percent (50%), for each year after the Rent Reduction Date that the Co-Tenancy failure
remains uncured. The Base Rent shall be increased to the full amount then due pursuant to the terms and provisions of the Lease effective immediately
on the date the Co-Tenancy Failure is cured) (Exhibit K).
Landlord shall maintain, operate and repair or cause to be maintained, operated and repaired the Common Area and all exterior portions of the Shopping
Center (Section 11.1).
CAM:
Tenant shall pay to Landlord as additional rent Tenant’s proportionate share of the reasonable expenses actually incurred by Landlord for maintaining,
operating, and repairing the Common Areas on Lot 2, and those expenses charged to and paid by Landlord as the owner of Lot 2 under the REA, subject
to the limitations herein. This shall include an administrative fee not to exceed five percent (5%) of the Common Areas costs, excluding any amounts paid
or reimbursed to Tenant pursuant to paragraph 11.10, the amount by which any individual expense item or series of related items exceeds two thousand
five hundred dollars ($2,500) per Lease Year and such administrative fee (Section 11.6).
Common Areas cost shall not exceed the previous year’s actual Common Area Costs by more than five percent (5%) (Section 11.7).
Tenant Repairs:
Tenant will be responsible for defects to the Premises occurring during the course of constructing Tenant’s Building for repairs and replacements necessary due to defective construction, installation, components or materials incorporated into or used by Tenant in its original construction of Tenant’s Building, and for the maintenance and repair of all parts of the HVAC system.
Tenant shall maintain the interior of Tenant’s Building in good order and repair, and shall perform such repairs, maintenance and replacements to the
interior of Tenant’s Building as are not required to be made by Landlord.
P. 10
DEMOGRAPHICS
Tenant will be responsible for defects to the Premises occurring during the course of constructing Tenant’s Building for repairs and replacements necessary due to defective construction, installation, components or materials incorporated into or used by Tenant in its original construction of Tenant’s Building, and for the maintenance and repair of all parts of the HVAC system.
Tenant Repairs:
Tenant shall maintain the interior of Tenant’s Building in good order and repair, and shall perform such repairs, maintenance and replacements to the
interior of Tenant’s Building as are not required to be made by Landlord.
Tenant shall obtain and keep in effect at all times a routine maintenance and service contract for the HVAC system with a contractor approver or certified
by the HVAC manufacturer.
(Section 12.3)
Landlord Repairs:
Landlord shall at its own sole cost and expense: repair all damage to the Premises or Common Area on Parcel II caused by subsidence or other structural defects; maintain in good condition and repair the roofing, canopy, gutters, downspouts, exterior painting, wiring, plumbing, pipes, conduits, and
equipment which serve the Premises but are not located within the interior of the Premises and all structural portions of Tenant’s Building. Landlord is to
repaint all exterior portions of Tenant’s Building whenever necessary, but no less than every seven (7) years. Landlord is to test the sprinkler system in
the Premises every six (6) months and make all repairs and changes to the Premises or Common Area required by reason of negligence (Section 12.1).
Landlord shall make available to Tenant all facilities for water, gas, electricity, sewerage, telephone and any other utility for use in the Premises.
Utilities:
Tenant shall arrange with and pay directly to such public utility companies for all utilities which it uses in the Premises except those paid as part of the
Common Area Costs (Section 17).
Taxes:
Tenant shall pay to Landlord its proportionate share of all Real Property Taxes due and payable during the Term of the Lease (Section 18.2)
Tenant’s Insurance:
Tenant shall maintain in respect to the interior of the Premises a commercial general liability insurance policy, including contractual liability, protecting
Landlord and Tenant with combined single limit coverage of three million dollars ($3,000,000.00) for personal and bodily injury and damage to property.
Tenant shall maintain special form property insurance covering its fixtures, equipment and inventory located on the Premises in an amount which is not
less than eighty percent (80%) of its replacement cost (Section 13.5)
Tenant’s Pro-Rate Share of InTenant shall pay to Landlord Tenant’s proportionate share of Landlord’s Insurance Costs (Section 13.4).
surance Costs:
Landlord shall maintain at all times special form property insurance coverage in an amount equal to the full replacement value of all Improvements on Lot
2, including Tenant’s Building and any Improvements to Tenant’s Building, whether made by Landlord or Tenant (Section 13.1)
Landlord’s Insurance:
Landlord shall maintain a primary commercial general liability insurance policy in respect of the Common Area, including contractual liability coverage,
having combined single limit coverage of three million dollars ($3,000,000.00) and damage to property (Section 13.2)
Unless approved by Tenant, insurance required to be maintained by Landlord hereunder shall have a deductible no greater than five thousand dollars
($5,000.00) (Section 13.3)
P. 11
DEMOGRAPHICS
Tenant may from time to time at its own cost and expense make such alterations, additions, restorations, changes, replacements or installations in, of or
to Tenant’s Building as Tenant deems necessary or desirable.
Alterations and Improvements:
Any structural changes in Tenant’s Building, or exterior changes to the Premises not otherwise permitted hereunder, or any other changes which affect
any portion of Tenant’s Building or the components thereof which Landlord is responsible to repair and maintain, shall require prior written consent of
Landlord (Section 15.1).
Following the Delivery Date, Landlord may not alter the interior or exterior of Tenant’s Building without Tenant’s consent. Landlord shall have the right to
make alterations to the space located adjacent to the Premises, including changes to the façade of the space, subject to the terms and conditions of this
Lease, the REA, the Restrictive Covenants and any Permitted Exceptions (Section 15.2).
Damage and Destruction:
Landlord shall promptly and diligently repair and reconstruct Tenant’s Building in the event it is damaged or destroyed by fire or other insured casualty,
and all proceeds from Landlord’s insurance carried in accordance with the Lease shall be applied by Landlord for said repair and construction (Section
27.1).
P. 12
DEMOGRAPHICS
Lease Abstract - Ann’s, Inc. Hallmark
Lease Type:
Net
Tenant:
Ann’s, Inc.
Guaranty:
Ann’s of Kentucky, Inc. (Lease Guaranty dated July 7, 1998)
Premises:
7,000 SF (2,000 SF Storage Space)
Date of Lease:
July 7, 1998
July 7, 1998
10% rental increases every five (5) years
Two five (5) year options
Current
March 1, 2014 (Pursuant to Third Amendment to Lease)
Rent Commencement:
Lease Expiration:
Original
September 21, 1998
Current
February 28, 2019 (Pursuant to Third Amendment to Lease)
Original
February 28, 2004
Current
Five (5) Years (Pursuant to Third Amendment to Lease)
Lease Term:
Renewal Options:
Original
Five (5) Years, Five (5) Months, Twenty-Nine (29) days
One (1) Five (5) Year (Section 3)
March 1, 2014-February 29, 2016: $75,750/annum ($6,312.50/month)
Rent:
Storage Space Fee
$6,000/annum ($500/month)
(Pursuant to Third Amendment to Lease)
P. 13
DEMOGRAPHICS
Percentage Rent:
6% of Gross Sales for any period that Tenant is entitled to pay Percentage Rent in lieu of Minimum Rent because the co-tenancy requirement of
the lease is not satisfied (Section 1.m).
Co-Tenancy Requirement:
If, during the initial Term of the Lease, the Wal-Mart (“Major Tenant”) store located on the property adjacent to the Shopping Center Areas closes
for business, then, from the date of such closing until the Major Tenant re-opens for business or a replacement user of similar size and use reopens for business at such space, Minimum Rent shall be abated and Tenant shall be obligated to pay in lieu thereof the lesser of (i) the Percentage Rent described above or (ii) the monthly Minimum Rent otherwise due at the time
CAM:
Tenant shall pay as Additional Rent, Tenant’s proportionate share of Landlord’s Operating costs in connecting with the operation and maintenance of the Common Areas (Section 4/Section 16.d).
Tenant Repairs:
Tenant shall keep and maintain the Premises, the exterior and interior portions of all doors, windows, plate glass and show cases in or surrounding the Premises. The tenant shall keep in good order and repair all heating and ventilating systems, plumbing and sewage facilities within the
Premises, and all fixtures, interior walls, floors, and ceilings (Section 9.b)
Landlord Repairs:
Landlord shall keep in good order, condition and repair the exterior foundations, exterior walls, downspouts, gutters, and roof of the Premises,
and the plumbing and sewage system outside of the Building (Section 9.a)
Utilities:
Tenant shall pay for all utilities required for the operation of or supplied to the Premises (Section 14).
Taxes:
Tenant shall pay as Additional Rent, Tenant’s proportionate share of all real estate taxes, ad valorem taxes and assessments, general and special
assessments, taxes on real estate rental receipts, taxes on Landlord’s gross receipts, or any other tax imposed upon or levied against real estate
or upon owners of real estate (Section 4/Section 15).
Tenant’s Insurance:
Tenant shall maintain comprehensive public liability insurance against assumed or contractual liability under the lease with combined limits for
personal injury and death and property damage of not less than $3,000,000 for each occurrence (Section 10.b.i)
Tenant’s Pro-Rate Share of Insurance Costs:
Landlord’s Insurance:
Landlord shall carry all risk property and casualty insurance for the full replacement value or such amount required by Landlord’s lender (Section
10.e).
Alterations and Improvements:
Tenant shall make no changes, alterations or additions to the Premises or the building of which the Premises are a part, without first submitting
the plans and specifications to the Landlord and obtaining Landlord’s prior written consent (Section 9.1c)
Damage and Destruction:
If the Premises are damaged or destroyed by fire or other casualty, Landlord shall disburse and apply insurance proceeds to repair, reconstruct,
and restore the Premises (Section 11).
P. 14
P. 15
DEMOGRAPHICS
Property Description
™
P. 17
DEMOGRAPHICS
DEMOGRAPHICS
Physical Description
THE OFFERING
Property Name.................................................................... Western Hills Square
Property Address.....................................................................2314 Ferguson Rd
Cincinnati, OH 45238
Assessor’s Parcel Number................................................. 248-0002-0034-00
Zoning.................................................................................................................CG-A
SITE DESCRIPTION
Number of Stories��One
Year Built..............................................................................................................1998
Gross Leasable Area (GLA)�� 33,579 SF
Lot Size.................................................................................................... 3.01 Acres
Type of Ownership................................................................................Fee Simple
Parking (shared).....................................................................169 Surface Spaces
Parking Ratio...................................................................................5.03 : 1,000 SF
Landscaping.........................................................................................Professional
Topography.................................................................................... Generally Level
CONSTRUCTION
Foundation........................................................................................Concrete Slab
Framing..............................................................................................................Wood
Exterior............................................................................................. Painted Stucco
Parking Surface.............................................................................................Asphalt
Roof.........................................................................................................................Flat
P. 18
DEMOGRAPHICS
Tenant Map
P. 19
DEMOGRAPHICS
Regional Map
Local Map
P. 20
P. 21
DEMOGRAPHICS
DEMOGRAPHICS
Birds Eye
West
Park
Retirement
Ferg
uson
Road
P. 22
P. 23
Demographics
™
DEMOGRAPHICS
City Overview | Cincinnati, OH
Cincinnati, located in southwestern Ohio on the Ohio River, is the third-largest city
in the state. Founded in 1788 and incorporated as a city in 1819, it was named after
the Society of the Cincinnati, which honored George Washington, whom they
likened to the Roman General Cincinnatus. The city saw dramatic growth in the
mid 1830s with the development of steamships and the completion of the Ohio
and Erie Canal. It soon became a major shipping center, primarily for the pork
industry. Cincinnati’s location on the Ohio River has contributed not only to its
prosperity but also its scenic charm. Winston Churchill once called Cincinnati “the
most beautiful of America’s inland cities”. Today, Cincinnati has a population of
around 340,000 and is home to major corporations that include Procter & Gamble,
Kroger, CInergy Corporation, and Federated Department Stores, the parent
company of Macy’s and Bloomingdale’s. Cincinnati ranked #37 on Ladies Home
Journal’s 2002 list of the Best Cities For Women (all but one of the cities ranking
higher had larger populations). With a metro area that includes parts of Ohio,
Indiana and Kentucky, Cincinnati has a unique personality that crosses midwestern
industrial city with a southern country feel.
P. 25
The population of the metropolitan is the 28th largest Metropolitan Statistical
Area (MSA) in the United States and the largest centered in Ohio. Residents of
Cincinnati are called Cincinnatians. Cincinnati is home to two major sports teams,
the Cincinnati Reds, one of the oldest franchises in Major League Baseball, and
the Cincinnati Bengals of the National Football League. The University of
Cincinnati, founded in 1819, is one of the 50 largest in the United States. In the
late 1800s, Cincinnati was commonly referred to as "Paris of America," mainly
due to significant architectural projects, like Music Hall, the Cincinnatian Hotel,
and the Shillito Department Store. And any day is a good day for Cincinnati’s
famous Skyline Chili, served over spaghetti. Sports are big in Cincinnati. Major
league baseball’s oldest team, the Cincinnati Reds, play at the 42,000-seat Great
American Ballpark downtown on the banks of the Ohio River. The NFL’s Cincinnati
Bengals play next door at 65,600-seat Paul Brown Stadium. Also in the area is
US Bank Arena, which hosts the International Hockey League’s Cincinnati
Cyclones.
DEMOGRAPHICS
Demographics Report
Population
2020 Projection
2015 Estimate
2010 Census
2000 Census
Growth 2015-2020
Growth 2010-2015
Growth 2000-2010
1-Mile
17,544
17,322
17,131
16,873
1.28%
1.11%
1.53%
3-Mile
123,320
123,086
123,319
133,927
0.19%
-0.19%
-7.92%
5-Mile
241,622
239,904
238,978
256,239
0.72%
0.39%
-6.74%
Households
2020 Projection
2015 Estimate
2010 Census
2000 Census
Growth 2015-2020
Growth 2010-2015
Growth 2000-2010
7,766
7,688
7,639
7,985
1.02%
0.64%
-4.33%
50,624
50,342
50,139
55,106
0.56%
0.40%
-9.01%
100,040
99,025
98,116
105,418
1.03%
0.93%
-6.93%
19.59%
15.48%
17.08%
16.10%
16.62%
7.11%
4.28%
1.93%
1.24%
0.30%
0.21%
0.04%
$44,442
$33,739
21.52%
14.25%
12.92%
13.90%
16.80%
9.24%
5.58%
2.54%
2.12%
0.53%
0.49%
0.12%
$49,581
$36,419
22.90%
14.07%
11.63%
12.58%
15.29%
9.12%
5.87%
3.09%
3.01%
0.99%
1.14%
0.31%
$54,495
$36,676
Income
$0 - $15,000
$15,000 - $24,999
$25,000 - $34,999
$35,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 - $124,999
$125,000 - $149,999
$150,000 - $199,999
$200,000 - $249,999
$250,000 - $499,999
$500,000+
2015 Est. Average Household Income
2015 Est. Median Household Income
P. 26
DEMOGRAPHICS
Companies with Significant Operations or Headquartered in Cincinnati
• Mitsubishi Automotive Electric America.
• Toyota Motor Engineering & Manufacturing North America - an automobile manufacturing
and research and development company owned by Toyota Motor Company. Formed
from the 2006 merger of Toyota Motor Manufacturing North America and Toyota Technical
Center USA (of Ann Arbor, MI).
• Toyota Boshoku America, manufactures seats, power train parts and other components
for automakers Toyota Motor Corp., General Motors and others.
• Fifth Third Bank, (Nasdaq: FITB), one of the 20 largest banks in the United States. Employs
7,645. $13.5 BN local deposits.
• First Financial Bank, (Nasdaq: FFBC), is a regional bank headquartered in Cincinnati, and
has client servicing operations in the Tri-County, northern Cincinnati metropolitan area.
Founded in 1863, First Financial has the eighth oldest national bank charter and has
locations in Southwest Ohio, Northern Kentucky, and throughout Indiana.
• Ashland, Inc., (NYSE: ASH), Fortune 500 #248 - A transportation construction, chemical,
and petroleum company (in Covington, Kentucky). Recently acquired Hercules, Inc.
(Nasdaq: HPC) in a $2.4 BN deal.
• Champlin Architecture, architectural firm specializing in healthcare, corporate, higher
education, religious and civic projects
• Cintas (Nasdaq: CTAS), uniform supplier
• Convergys (NYSE: CVG), customer care, human resources and billing service provider
• The Creative Department, digital and advertising agency in the Over-theRhine neighborhood of Cincinnati
• Empower MediaMarketing, advertising agency that communicates to and with consumers
through an integrated combination of media
• Omnicare (NYSE: OCR), provider of pharmaceuticals, related consulting and data
management services
• Rumpke, one of the largest privately owned residential and commercial waste and
recycling firms in the U.S.
• General Cable (NYSE: BGC), manufacturer of copper, aluminum and fiber optic wire and
cable products
• Givaudan, US HQ and production site for this flavor and sensory company
• Grippo’s, snack food company
• Sunny Delight Beverages, marketer of Sunny Delight. Owned by J.W. Childs private equity
investment company.
• Wild Flavors, maker of flavors, colors and ingredients for the food and beverage industry
• Archdiocese of Cincinnati, Roman Catholic diocese includes parishes, schools, charitable
organizations. Employs 6,152.
P. 27
• Cincinnati Children’s, provider of pediatric health care, research and education,
employing 9,464 staff
• Cincinnati Public Schools school system. Employs 5,055.
• City of Cincinnati, city administration. Employs 5,441.
• Great Lakes and Ohio River Division, U.S. Army Corps of Engineers, operates as a
regional business center with seven districts that covers 335,000 sq. mi. in 17 states,
utilizing about 5,000 team members.
• Hamilton County, county administration. Employs 6,304.
• Mercy Health Partners not-for-profit, integrated network of medical services and
facilities.
• Miami University, public university of 16,000 students. Employs 4,399.
• University of Cincinnati, public research university of over 41,000 students.
• CareStar, home health care company specializing in case management for consumers
and providers of home and community-based services.
• Chemed, (NYSE: CHE), parent of Roto-Rooter, the largest plumbing and drain-cleaning
company in North America.
• Ethicon Endo-Surgery, Surgical instruments for minimally invasive surgery and surgical
procedures. A subsidiary of Johnson & Johnson (in Blue Ash, Ohio).
• LCA-Vision, (Nasdaq: LCAV), laser vision correction services under the LasikPlus brand
• Medpace, a Contract Research Organization (CRO), bioanalytical laboratory, central
laboratory, and clinical pharmacology unit.
• Prasco Laboratories, pharmaceutical company specializing in manufacturing authorized
generic products under private labels.
• Kao Brands, US subsidiary headquarters of Kao Corporation which manufacturers
products under the name Jergens.
• Luxottica Retail, a division of Luxottica SpA of Milan, Italy (in Mason, Ohio); manages
the Lenscrafters, Pearle Vision, Sunglass Hut, and Watch Station brands.
• Perfetti Van Melle, a leading marketer and manufacturer of candy with the
brands AirHeads and Mentos. U.S. headquarters located in Erlanger, Kentucky.
• Procter & Gamble, (NYSE: PG), the world’s largest consumer products company (#8
Globally by Market Value, Fortune 500 #23).
• Totes, Marketer of umbrellas, gloves, raincoats, rubber overshoes, and other weatherrelated accessories.
• United States Playing Card Company, world’s largest and most renowned playing card
company.
• AK Steel, (NYSE: AKS), Fortune 500 #378 - Steel producer (in West Chester, Ohio).
• CFM International, manufacturer of jet engines. Joint venture between Snecma (SAFRAN
Group) and the General Electric Company.
• Formica Corporation, surface material manufacturer, subsidiary of New Zealand based
Fletcher Building
• Fujitec America, Elevator manufacturing (in Mason, Ohio).
• GE Aviation, aircraft engine manufacturer. A subsidiary of the General Electric conglomerate.
• GE Honda Aero Engines, engine designer and manufacturer for business aviation.
• Makino, producer of machine tools and precision metal-cutting production machinery.
• Milacron, (NYSE: MZ), a plastics machinery producer, formerly Cincinnati Milling Machine
Company.
• Omya, North America headquarters of the Switzerland-based international white minerals
company supplying calcium carbonate and talc.
• Total Quality Logistics, a 3rd party logistics provider (in Milford, Ohio)
• Taft Stettinius & Hollister LLP, large corporate law firm with office in Ohio, Kentucky, and
Arizona. Founded in 1885 by the sons of President William Howard Taft.
• Frost Brown Todd LLC, midwestern firm with offices in Ohio, Kentucky, Tennessee, Indiana,
and West Virginia.
• E.W. Scripps Company, (NYSE: SSP), a media company that owns many newspapers, cable
channels and news stations; also hosts the National Spelling Bee.
• F+W Media, publishing company. The company publishes magazines and books and operates
trade shows in several special-interest categories.
• Townsquare Media, Privately held radio broadcaster which owns approximately 70 stations in
small and medium markets in the United States.
• Cornerstone Brands, owner of catalog brands including Frontgate and Smith&Noble (in West
Chester, Ohio). Subsidiary of HSN Inc.
• Kroger, (NYSE: KR), the largest company of supermarket chains in the US (Fortune 500 #26)
• Macy’s, Inc., (NYSE: M), parent company of Macy’s and Bloomingdale’s (formerly known as
Federated Department Stores). Employs 4,700.
• United Dairy Farmers, regionally based convenience store and ice cream maker.
• Cincinnati Bell, (NYSE: CBB), provides voice & data telecommunications products and
services
• Cincom, privately held, multinational, computer technology corporation founded in 1968.
Manufactures enterprise software, and provides information technology (IT) hosting services.
• WhatIfSports.com, company that specializes in online sports simulations games.
• First Group America, school bus operator and Greyhound.
DEMOGRAPHICS
• Total Quality Logistics, North America’s 2nd largest freight brokerage firm.
• Columbia Sussex, hotel and casino operator (in Crestview Hills, Kentucky)
• Frisch’s Restaurants, Inc., (Nasdaq: FRS), owner of Frish’s Big Boy chain and
Midwest operator of select Golden Corral restaurants. Employs 4,500.
• Gold Star Chili, Cincinnati style chili chain
• Graeters, ice cream, bakery, and candy shops. Regarding Graeters, the New York
Times has said, “...the ice cream most connoisseurs feel to be the best in the
world”
• LaRosa’s Pizza, regional pizza chain
• Penn Station East Coast Subs, regional sandwich chain
• Skyline Chili, Cincinnati style chili chain
• Winegardner and Hammons, (NYSE: WHI), full service hotel management and
development company established in 1961. It is one of the original franchisers of
Holiday Inn.
P. 28
2314 Ferguson Road
Cincinnati, OH 45238
OFFERING MEMORANDUM
™
R E T A I L
Kyle B. Matthews, CCIM
Chairman & CEO
DIRECT +1.310.919.5757
MOBILE +1.310.622.3161
kyle.matthews@matthews.com
A D V I S O R S
Patrick Toomey
Managing Partner
DIRECT +1.310.919.5765
MOBILE +1.310.403.4984
patrick.toomey@matthews.com
Shenan P. Murphy, CCIM
Broker of Record
License No. 42901
Matthews Retail Advisors | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.Matthews.com

WESTERN HILLS SQUARE

Transcription

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