walmart neighborhood market

walmart
neighborhood
market
Actual store
guaranteed by AA rated walmart
possible 3.5% long-term debt
20 year lease
growing city near atlanta
Opened january 21st
955 Lafayette Parkway, LaGrange, GA 30241
For more info on this opportunity please contact:
Rick Sanner
rsanner@capitalpacific.com | (415) 274-2709
CA BRE# 01792433
Capital Pacific collaborates. Click here to meet the rest of our San Francisco team.
Bob Sanner
bsanner@capitalpacific.com | (415) 274-2717
CA BRE# 00869657
In conjuction with: Steve Miller of Miller Realty Services, Inc.
smiller@millerrealtyservices | (770) 409-0266
walmart neighborhood market, in lagrange, ga
Investment Highlights
The Neighborhood Market is Walmart’s smaller grocery concept, which was launched in 1998
and gives customers a more convenient shopping experience than the typical Walmart
Supercenter.
The Supercenter is typically 160,000 square feet compared to the Neighborhood Market,
which is approximately 40,000 square feet and has a fuel center for increased convenience in
addition to a drive-thru pharmacy.
Walmart’s strategy is to have a total of 500 stores operating by 2015 and build hundreds more
every year for the foreseeable future. With recent interest rates, 20-year fixed rate debt on this
property was quoted in early February at 3.5%.
PRICE: $12,460,000
CAP: 5.00%
RENTABLE SF. . . . 41,117 SF
LEASE TYPE. . . . . . Modified NNN
LAND AREA. . . . . . 7.3 Acres
YEAR BUILT. . . . . . 2015
lease highlights
New 20 year lease began January 21, 2015
Rent increases 10% and 5% in the options
Guarantor is one of the strongest companies in the world
location highlights
Traffic counts of 17,000+ on multi-lane Lafayette Parkway
There is a traffic signal at Calumet Center Road for ingress/egress from Lafayette Parkway
LaGrange is one hour south of Atlanta on I-85, with a population of 30,000+
LaGrange is a major transportation hub for I-85 and I-185
The LaGrange micropolitan area has increased in population from 59,000 in 2000 to an estimated
69,000 in 2013 - a 17% increase (well above the state and national averages)
Investment summary
The combination of basic grocery store use, long lease, strong traffic counts, unsurpassed
credit, solid area growth, and signalized entrance make this a very attractive investment
opportunity.
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Actual store
Actual store
Income & Expense
PRICE
$12,460,000
Cap Rate:
5.00%
Total Rentable Area (SF):
41,117
Lot Size (Acres):
STABILIZED INCOME
7.30
Per Square Foot
Scheduled Rent
$15.15
$623,000
Effective Gross Income
$15.15
$623,000
LESS
Per Square Foot
Taxes
$0.00
Insurance
$0.00
Total Operating Expenses
$0.00
EQUALS NET OPERATING INCOME
Actual store
$623,000
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. Buyer must verify the information and bears all risk for any inaccuracies.
walmart neighborhood market | 3
Rent Roll
TENANT INFO
LEASE TERMS
Tenant Name
Sq. Ft.
Walmart Neighborhood Market
41,117
Current Totals:
41,117
Term
RENT SUMMARY
Current
Rent
Monthly
Rent
Yearly
Rent
Monthly
Rent/FT
Yearly
Rent/FT
2/1/2015
1/31/2035
$623,000.00
$51,916.67
$623,000.00
$1.26
$15.15
2/1/2035
1/31/2040
Option 1
$57,108.33
$685,300.00
$1.39
$16.67
2/1/2040
1/31/2045
Option 2
$62,819.17
$753,830.00
$1.53
$18.33
2/1/2045
1/31/2050
Option 3
$65,960.13
$791,521.50
$1.60
$19.25
2/1/2050
1/31/2055
Option 4
$69,258.13
$831,097.58
$1.68
$20.21
$623,000.00
$51,916.67
$623,000.00
$1.26
$15.15
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. Buyer must verify the information and bears all risk for any inaccuracies.
Representative Photos
walmart neighborhood market | 4
Actual store
Site Plan
RAILROAD
DETENTION
FUTURE
DEVELOPMENT
Walmart Fueling
Station
VACANT
109
ter
et Cen
Calum oad
R
U.S. POST OFFICE
y
Parkwa
e
t
t
e
y
a
Laf
BANK
VACANT
LAGRANGE PLAZA
r
rce D
e
m
Com
LaGrange
High School
LAGRANGE MALL
S Davis Rd
N Morgan St
14
Aerial
109
109
Morgan St
14
LaGrange
College
950 Lafayette
Pkwy
sITE LOCATION
Lafayette Pkwy
Key Lease Information
Tenant
Wal-Mart Stores East, LP (This is a wholly-owned Walmart
subsidiary)
guarantor
Wal-Mart Stores, Inc. (AA rated; the parent company)
Date opened
January 21, 2015
landlord responsibilities
Landlord shall be responsible for the cost and expense
of maintenance, repair, and replacement of structural
components only (not the roof ). Expenses related to the
roof , parking lot, and all other parts of the property are
the responsibility of the tenant.
Actual store
walmart neighborhood market | 7
Actual store
Walmart Neighborhood Market
Actual store
About walmart neighborhood market
walmart stores, inc.
is ranked #1 in the
fortune 500 and is easily
the largest grocery
retailer in the U.S.
Walmart Neighborhood Market is a chain of grocery stores launched
by Walmart in 1998. With over 359 Neighborhood Markets in the
United States, they feature a wide variety of products, including fresh
produce, deli foods, fresh meat and dairy items, health and beauty
aids, one-hour photo and traditional photo developing services,
drive-thru pharmacies, stationery and paper goods, pet supplies,
and household chemicals. Walmart Neighborhood Markets were
designed to create easier parking, less crowded aisles, and quicker
checkouts than at Walmart Supercenters.
NUMBER OF locationS
11,000+
FISCAL YEAR 2014 SALES
$476 BILLION
S&P RATING
AA
Walmart is the world’s biggest retailer and largest employer - with
over 2.2 million full and part-time workers worldwide, including
more than 1.4 million in the U.S. With more than $476 billion in total
revenues, Walmart is known for its low pricing and wide selection of
goods. The company has 11,302 stores in 27 countries.
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Walmart Dominance
walmart is easily the largest grocery retailer - and
its lead is increasing
In 2012 Walmart had 55% (up from 53% in 2011) of its sales from
grocery, thus indicating that Walmart had grocery sales in 2012 of
$244 billion. Comparatively, the largest grocery chain, Kroger, in
2012 had sales of $98 billion.
overall retailing
Walmart, with 2013 sales of $476 billion, is easily the
largest retail chain in the world. The second largest U.S.
chain is Costco, with sales of $110 billion, less than one
quarter of the Walmart sales. Costco’s sales are actually
less than one half of Walmart’s grocery sales.
Credit
Walmart has the highest S&P credit rating of any
retailer: AA. Credit ratings of other strong retailers such
as Lowe’s, Costco, Walgreens, and CVS are significantly
lower. Walmart also has a higher rating than any U.S.
bank.
size
Walmart is #1 in the Fortune 500 - the largest company
in America
walmart is
simply the top
name in grocery,
in overall
retailing, credit
rating, and size
Walmart’s grocery sales were initiated, starting from zero, a few
decades ago when it began adding grocery departments to its
new strores, thus adding to square footage and calling these
larger units “superstores.”
In 1998, Walmart began building stand-alone grocery stores called
Walmart Neighborhood Market. Survey after survey has shown
Walmart to be the leader in low priced groceries. For example,
from Supermarket News, July 16, 2014, “Walmart’s [groceries]
were the least expensive and had the lowest-priced items during
mystery shops conducted recently at a Los Angeles Walmart,
Vons, Ralphs, and Target.”
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Actual store
Walmart In The News
Exerpts from article:
Actual store
Why Walmart Suddenly Thinks Smaller Is Better
june 16, 2014 - By Walter Loeb
“[Previously, Walmart management believed that] customers preferred the
larger assortment in the superstores.”
“[But at Walmart now] the convenience of quick shopping has become front
and center. Today there is a real focus at Walmart on smaller stores. Two
hundred new Neighborhood Market units will open this year...there could
be thousands in five years.”
“[The Walmart CEO] is stressing that the customer wants the convenience of
a quick shopping trip to a [Neighborhood Market].”
The Additional
stores mentioned by
forbes will increase
walmart’s grocery
dominance
Representative Photos
Actual store
walmart neighborhood market | 10
Location & Demos
Lagrange, GA Overview
LaGrange, in Troup County, is 60 miles southwest of Atlanta on I-85. The city
population was 30,452 in the 2013 census estimate. Interstate 185 branches from
Interstate 85 at LaGrange and continues directly south to Columbus. Interstate 85
continues southwest into Alabama.
LaGrange and Troup County boast a diverse economic base including some wellknown Fortune 500 companies. Troup County is becoming one of the nation’s
leaders in advanced manufacturing with nationally and internationally-owned firms.
For instance, Kia completed North America’s first and only Kia Motors manufacturing
plant in late 2009 on 2200 acres in West Point (17 miles south of LaGrange).
Kia Motors employs more than 3,000 and is the U.S. home of the Kia Optima and Kia
Sorento. Kia is a sister company of Hyundai, and this plant is also the U.S. home of
the Hyundai Santa Fe. It has the capacity to manufacture 360,000 vehicles per year.
Because this plant is close to capacity it operates three shifts. The Optima sedan is
Kia’s best-selling vehicle of its eight models, selling worldwide at a rate of about one
million per year. The Sorento is a seven seat CUV, or crossover utility vehicle, a variant
of an SUV. It is also a big seller, 600,000 per year worldwide. The Hyundai Santa Fe
is similar to the Sorento, a CUV, and is likewise a significant seller. The Kia plant was
built just off I-85 on farmland making it easy for many employees to commute to the
plant from LaGrange, which is the nearest significant city.
LaGrange is home to LaGrange College, the oldest private college in the state and
ranked in the top 10 as one of the “best values” among Southern comprehensive
colleges by U.S. News & World Report. LaGrange’s close proximity to West Point Lake,
a few miles to the west, makes it a tourist destination for bass fisherman and water
sports enthusiasts.
A growing city
Population
2010
2013
2018
3-Mile
5-Mile
10-Mile
28,995
29,880
31,616
37,065
38,222
40,388
56,608
57,833
60,538
3-Mile
5-Mile
10-Mile
$43,276
$46,381
$50,802
2013 Household incomes
Average
Top Employers in lagrange
Troup County Schools
Miliken & Company
Kia Motors Manufacturing Georgia, Inc.
Interface Flooring Systems, Inc.
LaGrange Troup County Hospital Authority
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Regional Map
GA
ge
n
ra
G
La
Location
The growing city
of lagrange is at a
major intersection
of two interstates
walmart
neighborhood
market
lagrange
walmart neighborhood market | 12
Actual store
A unique HUMAN
RESULTS-DRIVEN
client experience
Rick Sanner
Actual store
The capital pacific experience - our daily commitment to our clients
[ www.CapitalPacific.com ]
rsanner@capitalpacific.com | (415) 274-2709
CA BRE# 01792433
Bob Sanner
bsanner@capitalpacific.com | (415) 274-2717
CA BRE# 00869657
In conjuction with: Steve Miller of Miller Realty Services, Inc.
smiller@millerrealtyservices | (770) 409-0266
Copyright © 2014 [Capital Pacific Real Estate Brokerage Company]