Equinox Square Shopping Plaza - Manchester, VT

Transcription

OFFERING MEMORANDUM
Exclusively By:
Nick Capanna | 585.362.8713
ncapanna@ferrarajerum.com
CONFIDENTIALITY & DISCLOSURE AGREEMENT
This Offering Memorandum contains confidential information released for your
view and use in evaluating the opportunity to purchase the property and the
subject property: 365 – 369 Depot Street, Manchester, VT. This release of
information is made pursuant to the following terms and conditions:
1. Confidential Information. Owner will disclose and make available to Recipient
certain information that is non-public, confidential and/or proprietary in nature
relating to the possible sale of certain property to Recipient (“Confidential
Information”). By executing this Agreement, Recipient (including, without
limitation, its respective officers, directors, employees, counsel, consultants,
brokers or agents) acknowledges and agrees that it shall maintain the Confidential
Information in confidence from the time of this Agreement and for a period of three
(3) years from the Effective Date of this Agreement, and shall not, without the prior
written consent of Owner, disclose any of the Confidential Information except as
permitted herein; provided, however, that there shall be no obligation on the part
of Recipient to maintain in confidence any Confidential Information disclosed to it
by Owner: (i) which is generally known to the trade or the public at the time of
such disclosure; (ii) which becomes generally known to the trade or the public
subsequent to the time of such disclosure, but not as a result of disclosure by the
other; (iii) which is legally received by Recipient from a third party without
restriction; (iv) which is independently developed by Recipient; (v) which is
approved for release in writing Owner whose Confidential Information is to be
released, prior to any release; or (vi) is demanded by a lawful order from any court
or anybody empowered to issue such an order. Recipient agrees to notify Owner
promptly of the receipt of any such order, and to promptly provide Owner with a
copy of such order. If Recipient is required to disclose Confidential Information in
response to a valid order by a court or other governmental body, as required by
law, Recipient may disclose such Confidential Information only to the extent legally
compelled. Owner will be given an opportunity to oppose any such order or to
seek a protective order that protects the Confidential Information at issue before
Recipient complies with any such court or governmental order provided, however,
that all Parties will stipulate to any orders necessary to protect said information
from public disclosure.
2. Disclosure to Third Parties. Recipient shall not disclose the Confidential
Information: (i) to its respective employees, officers, directors, consultants,
advisors, brokers, or counsel, except on a need-toknow basis and each employee, officer, director, consultant, advisor, broker or
counsel receiving Confidential Information shall be notified of and required to abide
by the terms and conditions of this Agreement; or (ii) to subcontractors, vendors,
agents or the like, without the prior written consent of Owner and unless and until
a confidential disclosure agreement expressing substantially the same terms as
contained in this Agreement is executed by the person receiving and before the
person receives the Confidential Information, and provided further, that disclosure
of the Confidential Information by such subcontractors, vendors, agents, or the
like, to their respective employees, officers, directors or counsel shall be on the
same terms as set forth in Section 2(i) above. No Party shall disclose to any
person (other than as, and to the extent, herein detailed) the fact that Confidential
Information has been requested, that discussions or negotiations between the
Parties are taking place or have taken place, or the status thereof.
3. Procedure to Protect. Recipient covenants that it shall use the same degree
of care with Owner’s Confidential Information that it uses with its own Confidential
Information of a similar type, but in any event no less than reasonable
care. Recipient agrees not to sell, license or otherwise exploit any products or
services (including software in any form) which embody in whole or in part any
Confidential Information.
4. Control of Confidential Information. Copies of the Confidential Information
shall be made only as necessary.
5. Ownership. Nothing in this Agreement shall be construed to convey any title,
copyright, ownership or other proprietary rights in the Confidential Information to
Recipient.
(To be continued)
339 East Avenue ● Suite 4320 ● Rochester ● NY ● 14604 ● 585-454-6991
6. No Expectation. This Agreement is not an offer, an acceptance, or a
contract to negotiate or enter into any transaction, nor is it intended to require the
Parties to proceed with or continue such negotiations or transactions. Other than
the duties of nondisclosure and confidentiality as provided herein, this Agreement
shall not give rise to any obligation for either Party to disclose any information,
including the Confidential Information. The Parties further agree that unless and
until a definitive agreement has been executed and delivered, which may or may
not occur, neither Party will be under any obligation of any kind whatsoever with
respect to any transaction by virtue of this Agreement or any other written or oral
expression with respect to such a transaction made by any of their respective
directors, officers, employees, agents or any other representatives.
order and/or injunction or any other equitable remedies of any court.
7. Term. Any Party may terminate this Agreement upon thirty (30) days prior
written notice to the other Parties. Upon termination and following a request from
Owner, Recipient will promptly return all copies of the Confidential Information that
is in Recipient’s possession or in the possession of any of Recipient’s
representatives, without retaining any copies thereof (including expunging copies
from any computer or other device), except to the extent Recipient may be
specifically required to retain such copy as the result of a document retention
policies, deposition, interrogatory, request for documents, subpoena, civil
investigative demand or similar process or law or governmental
proceeding. Termination of this Agreement and the return of the Confidential
Information shall not affect any of the obligations of the Parties with respect to
disclosure or use of the Confidential Information.
12. Assignment. No Party or any affiliate thereof may assign this Agreement
without the prior written consent of the other.
8. Integration and Survival. This Agreement expresses the entire understanding
of the Parties with respect to the exchange of Confidential Information and
supersedes any prior agreements with respect thereto. This Agreement may not
be amended or modified except in writing signed by both Parties. The terms
hereof shall survive termination of any other arrangement between the Parties.
15. Choice of Law. THIS AGREEMENT SHALL BE DEEMED TO BE MADE
UNDER, AND WILL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK.
9. Injunctive Relief. Each of the Parties acknowledges that any breach of this
Agreement shall result in irreparable and continuing damage to Owner and,
therefore, in addition to any other remedy which may be afforded by law, any
breach or threatened breach of this Agreement may be prohibited by restraining
10. Severability. Should any provision of this Agreement be finally determined to
be inconsistent with or contrary to applicable law, such provision shall be deemed
omitted to conform therewith without affecting any other provision or the validity of
this Agreement.
11. Waiver. No failure or delay by Owner in exercising any power or right under
this Agreement shall operate as a waiver, nor does any single or partial exercise of
any power or right preclude any other or further exercise, or the exercise of any
other power or right.
13. Notices. All notices hereunder shall be in writing, and given when mailed by
certified mail, postage paid, return receipt requested, delivered by hand, or sent by
receipted courier service to a Party at its above-referenced address (or at such
other address as a Party may designate by service upon the other in writing).
14. Compliance with Law. The Parties agree to comply with all applicable laws
and regulations, whether federal, state or local, in performance of their obligations
hereunder and further represent and warrant that their respective officers,
directors, employees, agents and subcontractors hereunder shall do the same.
16. The information contained herein is believed to be accurate. However, no
warrantees of any kind are made by Ferrara Jerum International (FJI) or anyone
associated therewith, expressed or implied, that any information stated herein is
either complete or accurate. Moreover, nothing stated herein should in any way be
relied upon as a substitute for any due diligence.
INVESTMENT INFORMATION
Location:
Address:
365 - 369 Depot Street
City, State, Zip:
Manchester, Vermont, 05255
Tenants:
1:
Pendleton (5,047 SF) - $113,557.50
2:
Starbucks (2,000 SF) - $70,000
3:
Carter’s (3,600 SF) - $99,232
4:
Jockey (3,100 SF) - $38,750
5
Subway (1,500 SF) - $18,000
6:
Vacant (3,000 SF) - $54,000*
*Discussions are underway with multiple national tenants at $20 PSF. If
the space remains available at the time of closing, at the election of the
Buyer, a Seller principal is agreeable to lease back the available 3,000
SF for a term of 2 years at $18 PSF NNN + the annual CAM allocation
of $14,290
Total Rents:
$393,539.50
Total NOI:
$376,391
OFFERING PRICE: $ 5,018,550
Equinox Square is one of the most prime retail locations in the heart of Manchester’s designer outlet corridor on Depot
Street. The plaza is highly visible and enjoys excellent pedestrian and car shopping traffic.
The Plaza was totally renovated in 2013 -2014: new roofs, exterior paint, paving, sidewalks, signage, HVAC systems
Current tenants in Equinox Square include Carter’s, Starbucks, Jockey, Subway and Pendleton.
Notable designer outlet neighbors clustered around Equinox Square include: Hickey Freeman, Bobby Jones, Tumi
Leather, Yankee Candle, Brooks Brothers, Clarks Bostonian, Giorgio Armani, Vineyard Vines, BCBG Max Azria, J. Crew,
Escada, Jones New York.
Tenant: Pendleton Outlet
Premises
5,047 SF
It’s rare for a business to still be owned, operated and sustained by six
generations of one family. That’s the story of Pendleton Woolen Mills,
one of America’s oldest, foremost and most pioneering textile
manufacturers.
Historically, Pendleton products were distributed through select
department and specialty stores. But, in the 1980s, Pendleton
applied its wealth of experience to build a retail division that
encompassed both company and privately owned stores that offered
a full selection of Pendleton products and provided greater access to
Pendleton. Today, the Company manages 75 Pendleton retail stores
across America.
The new Pendleton location at Equinox Square in beautiful
Manchester, Vermont is a natural and its sales show it. For reporting
period of December 2014 – February 2015, it ranked #1 in sales.
With the Pendleton outlet, Equinox Square became a must-stop
destination for discerning shoppers.
Lease Type
NNN
Lease Term
8/16/14 – 2/28/2020
Basic Rent
$22.50 PSF, increased by 3% per year
Percentage Rent
5% for gross sales over $1.5 million
One 5 Year Options: $28.00 PSF, increased by
3% per year
Options
Base Term
Annual Basic Rent
Monthly Basic Rent
3/1/15 – 2/28/16
$113,557.50
$9,463.13
3/1/16 – 2/28/17
$116,989.46
$9,749.13
3/1/17 – 2/28/18
$120,471.89
$10,039.33
3/1/18 – 2/28/19
$124,105.73
$10,342.15
3/1/19 – 2/28/20
$127,840.51
$10,653.38
Lease Period
Options
Annual Basic Rent
Monthly Basic Rent
3/1/20 – 2/28/21
$141,316.00
$11,776.33
3/1/21 – 2/28/22
$145,555.48
$12,129.62
3/1/22 – 2/28/23
$149,922.14
$12,493.51
3/1/23 – 2/28/24
$154,419.80
$12,868.32
3/1/25 – 2/28/26
$159,052.39
$13,254.37
Option Period
Note: Basic rent increases 3% every year.
Tenant: Starbucks Coffee
The first Starbucks opened in 1971, as a single store in Seattle’s historic
Pike Place Market. Today, there are over 21,878 Starbucks stores and is a
household name.
From just a narrow storefront, Starbucks offered some of the world’s finest
fresh-roasted whole bean coffees. The name, inspired by Moby Dick,
evoked the romance of the high seas and the seafaring tradition of the early
coffee traders.
From the beginning, Starbucks set out to be a different kind of company.
One that not only celebrated coffee and the rich tradition, but that also
brought a feeling of connection. The Company mission is to inspire and
nurture the human spirit one person, one cup, and one neighborhood at a
time.
Soon Equinox Square will boast the newest Starbucks location.
Premises
2,000 SF
Lease Type
NNN
Lease Term
2015 – 2025
Basic Rent
$35 PSF
Options
Four 5 Year Options: 38.50 PSF, increased
by 10% per option
Base Term
Lease Period
2015 - 2025
Annual Basic Rent Monthly Basic Rent
$70,000.00
$5,833.33
Options
Option Period
2025 – 2030
$77,000.00
$6,416.67
2030 - 2035
$84,700.00
$7,058.34
2035 - 2040
$93,120.00
$7,760.00
2040 - 2045
$102,480.00
$8,540.00
Tenant: Carter’s
Carter’s, Inc. (CRI) dates back to 1865 and is the largest branded marketer of
baby and children’s clothing in the U.S., marketing apparel under 2 of the most
recognized and enduring brands in the nation, Carter’s and OshKosh B’gosh.
Carter’s® is the leading brand of children’s clothing, gifts and accessories in
America, selling more than 10 products for every child born in the U.S. Designs
are based on a heritage of quality and innovation that has earned the trust of
generations of families. Throughout the years, Carter’s has been known for its
thoughtful little details like the Handi-Cuff mitten sleeve that protects babies from
self-scratching, and the Jiffon neck design that slips over little ears for easy outfit
changes.
Since 1895, OshKosh B’gosh has been the leader in manufacturing American
kids clothes that specializes in crafting high quality, affordable clothes for boys
and girls that work on every level of kid’s lives. From playtime to bedtime, school
and beyond, OshKosh strives to continue the legacy of producing fun, wearable
clothes for kids that are made to last. OshKosh began creating kids jeans
fashioned to look just like Dad’s iconic overalls.
Carter’s® and OshKosh B’gosh clothing and accessories are sold at over 600
company-owned retail stores, as well as thousands of national department stores
and some of the country’s largest retailers. Brands include: Carters, OshKosh
B'gosh, Child of Mine, Just One You, and Genuine Kids.
Premises
3,601 SF
Lease Type
NNN
Lease Term
2004 – 2009
Options
9/1/09 – 8/31/19
Current Lease
9% of the gross sales
Historical Gross Sales
Year
Annual Gross
Sales
9% Gross Sales
Annual Rent
2009
$1,219,801
$109,782.09
2010
$1,139,007
$102,510.63
2011
$1,057,904
$95,211.36
2012
$1,060,543
$95,448.87
2013
$1,023,383
$92,104.47
The Carter’s® outlet store at Equinox Square in Manchester, Vermont is in an
established site that’s in the midst of benefiting from recent re-tenanting and the
exciting addition of Starbucks.
Tenant: Jockey
In 1876, Samuel Thrall Cooper founded S.T. Cooper & Sons, the predecessor of
Jockey International, Inc. Samuel Cooper started his hosiery business in St.
Joseph, Michigan to help lumberjacks who were suffering from their poor quality
socks, laying Jockey’s foundation for "Satisfying the Human Need for Comfort.“
Today Jockey International, Inc. is active in more than 120 countries, marketing
underwear, socks, thermals, sleepwear, activewear, sportswear, lounge wear,
men's, women's and children's ranges. The ongoing mission is to continue to
push boundaries to deliver an experience and excitement that life enthusiasts
expect from one of the world's best-loved and most-recognized brands —
Jockey®.
The new Jockey® outlet at Equinox Square was a relocation from another
Manchester location and sales have increased a reported 20% from this move
to this site at the center of the designer outlet shopping on Depot Street.
Premises
3,100 SF
Lease Type
NNN
Lease Term
7/1/14 – 6/30/2020
Basic Rent
$11.87PSF, increased by 3% per year
Percentage
Rent
5% for gross sales over $1.5 million
Options
No option to renew
Base Term
Lease Period
7/1/14 – 6/30/15
$36,797.00
$3,066.42
7/1/15 – 6/30/16
$38,750.00
$3,229.17
7/1/16 – 6/30/17
$39,912,50
$3,326.04
7/1/17 – 6/30/18
$41,109.87
$3,425.82
7/1/18 – 6/30/19
$42,343.17
$3,528.60
7/1/19 – 6/30/20
$42,343.17
$3,528.60
Note: Basic rent increases by 3% per year, excluding last year of
lease which has no increase
Tenant: Subway Restaurant
Premises
1,500 SF
In 1965, Fred DeLuca set out to fulfill his dream of becoming a medical
doctor. Searching for a way to help pay for his education, a family friend
suggested he open a submarine sandwich shop. With a loan of $1,000,
that friend (Dr. Peter Buck) offered to become Fred’s partner, and a
business relationship was forged that would change the landscape of the
fast food industry.
The first store was opened in Bridgeport, Connecticut in August, 1965.
By 1974 the principals decided that franchising would be the best way to
kick-start the chain’s growth and the first franchised SUBWAY®
restaurant opened in Wallingford, Connecticut.
Today, there are about 43,778 SUBWAY® restaurants operating in 110
countries. None are corporate owned, with over 21,000
franchisee/operators around the world.
The Equinox Square SUBWAY® restaurant is an extremely well known,
convenient and consistent quality place to eat for visitors and residents.
It adds a very good mix to the asset and like the other tenants, is
expected to see a boost in sales from the traffic of the upcoming addition
of Starbucks.
Lease Type
NNN
Lease Term
5/14/14 – 5/13/2019
Basic Rent
Yrs 1-3: $12.00 PSF, Yrs 4-5: $14.00 PSF
Three 5 Year Options: $14.56 PSF, increased by
4% per year
Options
Lease Period
5/14/14 – 5/13/15
5/14/15 – 5/13/16
5/14/16 – 5/13/17
5/14/17 – 5/13/18
5/14/18 – 5/13/19
Base Term
Annual Basic Rent
$18,000
$18,000
$18,000
$21,000
$21,000
Monthly Basic Rent
$1,500
$1,500
$1,500
$1,750
$1,750
Options
Annual Basic Rent
Monthly Basic Rent
5/14/19 – 5/13/20
$21,840
$ 1,820.00
5/14/20 – 5/13/21
$22,713.6
5/14/21 – 5/13/22
5/14/22 – 5/13/23
5/14/23 – 5/13/24
5/14/24 – 5/13/25
5/14/25 – 5/13/26
5/14/26 – 5/13/27
5/14/27 – 5/13/28
5/14/28 – 5/13/29
5/14/29 – 5/13/30
5/14/30 – 5/13/31
5/14/31 – 5/13/32
5/14/32 – 5/13/33
5/14/33 – 5/13/34
$23,622.1
$24,567.0
Option Period
$25,549.68
$26,571.67
$27,634.53
$28,739.92
$29,889.51
$31,085.09
$32,328.50
$33,621.64
$34,966.50
$36,365.16
$37,819.77
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1,892.80
1,968.51
2,047.25
2,129.14
2,214.31
2,302.88
2,394.99
2,490.79
2,590.42
2,694.04
2,801.80
2,913.88
3,030.43
3,151.65
MICRO MARKET AERIAL
Giorgio
Armani
MACRO MARKET AERIAL
LOCATION MAP
KEY DEMOGRAPHICS
1 Mile
3 Miles
5 Miles
7 Miles
2014 Estimated
1,718
4,334
5,341
7,287
2019 Projected
1,701
4,272
5,277
7,202
2014 Estimated
933
2,029
2,454
3,314
2019 Projected
940
2,036
2,468
3,332
$ 77,198
$ 77,682
$ 77,900
$ 77,846
$55,158
$ 55,908
$ 56,825
$ 57,682
1,343
3,292
3,675
4,379
Population
Households
Income
2014 Est. Average Household
Income
2014 Est. Median Household Income
Day Population
2014 Est. Daytime Employees
Town of Manchester, Vermont
The Town of Manchester legally came into existence in 1761. In 1864 Mary Todd Lincoln and her two sons escaped the chaos of Washington
D.C. and the Civil War at The Equinox Hotel. Mrs. Lincoln enjoyed her visit so much that before leaving in 1864 she booked for the summer of 1865
with President Lincoln. History would prevent President Lincoln from coming to Manchester in the summer of 1865, but later in life Robert Todd
Lincoln, who served as Secretary of War for two presidents and the president of the Pullman Company, built the Lincoln family home, Hildene, on
the banks of the Battenkill River in Manchester Village.
By the 1800s, Manchester had found its niche as a popular vacation destination for the burgeoning middle and upper class. Originally,
Manchester’s tourist season was largely the summer. As America evolved, Manchester became a very popular “four season” retreat.
Manchester has had steady population growth. From 1970 to 2000 Manchester experienced double digit growth in each of the ten year censuses.
Between 2000 and 2010 Manchester’s population grew 4.9%, greater than Vermont and the rest of Bennington County. Between 2007 and 2011
nearly 8% of Manchester’s population had moved to Manchester from elsewhere in the United States or abroad.
In fiscal year 2013, the Town of Manchester had $401,970,599 in gross receipts, according to the State of Vermont Department of Taxes. This
represents a 3.8% increase compared to fiscal year 2012. On a per capita basis, Manchester is an economic powerhouse. In fiscal year 2013
Manchester’s per capita gross receipts, a good indicator of overall economic activity, was $91,544. (By comparison, nearby Rutland City was
$41,140 and Bennington was $29,086 for the same period. The largest city in Vermont, Burlington, had per capita receipts of $25,058. Similar
towns of Stowe, $44,449, and Woodstock, $29,047, also had significantly lower gross receipts per capital than Manchester.)

Equinox Square Shopping Plaza - Manchester, VT

Transcription

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