BIG LOTS!
Transcription
BIG LOTS!
BIG LOTS! 1530 E JACKSON ST, THOMASVILLE, GA 31792 OFFERING MEMORANDUM ™ C O N FID EN T I A L I T Y & DI SCL A IMER STATEMEN T T his Of f er ing M e m o r a n du m co n t a i n s s e l ec t i nform ati on pertai ni ng to the busi ness and affai rs of Big Lots! located at 1530 E Jackson St , Thomasville, GA 31792 (“ P r o p e rt y ” ) . It h a s be e n p r e p a red by Matthews Retai l Advi sors . Thi s O fferi ng Mem oran d u m may n ot b e all-in clu s ive or con t ain all o f t he inf o r ma t i o n a p r o s p e ct i v e p u r ch a s er m ay desi re. The i nform ati on c ontai ned i n thi s O fferin g M emoran d u m is con fid en t ial an d fu rn is h ed s o le ly f o r t he p u r p o s e o f a r e v i e w by a p rospec ti ve purc haser of the Property. It i s not to be used for an y ot h er pu rpos e or mad e availab le t o a ny o t he r p e r s o n w i t h o u t t h e w r i t t e n co n sent of Sel l er or Matthews Retai l Advi sors . The m aterial is b as ed in part u pon in format ion s u pplied b y t he Selle r an d i n p a r t u p o n f i n a n ci a l i nform ati on obtai ned from sourc es i t deem s rel i abl e. Own er, n or t h eir officers , employees , or agen t s ma kes a ny r e p r e s e n t a t i o n o r w a r r a n t y, e xpress or i m pl i ed, as to the ac c urac y or c om pl etwene s s of t h is Offerin g M emoran d u m or an y of it s c o nt e nt s a nd n o l e g a l l i a bi l i t y i s a s s u m e d or shal l be i m pl i ed wi th respec t thereto. Prospec ti ve pu rch as ers s h ou ld make t h eir own project ion s a nd f o r m t he ir o w n co n cl u s i o n s w i t h o u t rel i anc e upon the m ateri al c ontai ned herei n and c ondu ct t h eir own d u e d iligen ce. B y a c kno w le dg i n g y o u r r e ce i p t o f t h i s O fferi ng Mem orandum for the Property, you agree: 1. T he Of f e r i n g M e m o r a n du m a n d i t s c ontents are c onfi denti al ; 2. Yo u w il l h o l d i t a n d t r e a t i t i n t h e s tri c test of c onfi denc e; and 3. Yo u w ill n o t , di r e ct l y o r i n di r e ct l y, di sc l ose or perm i t anyone el se to di sc l ose thi s O fferi n g M emoran d u m or it s con t en t s in an y fas h ion o r ma nn e r de t r i m e n t a l t o t h e i n t e rest of the Sel l er. Ow ne r a nd Mat t h e w s Re t a i l A dv i s o r s e x pressl y reserve the ri ght, at thei r sol e di sc reti on, to reject an y an d all expres s ion s of in t eres t or o f f er s t o p ur ch a s e t h e P r o p e r t y a n d t o t erm i nate di sc ussi ons wi th any person or enti ty revi ewin g t h is Offerin g M emoran d u m or makin g an o f f er t o p ur c h a s e t h e P r o p e r t y u n l e s s a nd unti l a wri tten agreem ent for the purc hase and sal e of t h e Propert y h as b een fu lly execu t ed an d d e liv er e d . I f y o u w ish no t t o p u r s u e n e g o t i a t i o n s l e adi ng to the ac qui si ti on of the Property or i n the future you d is con t in u e s u ch n egot iat ion s , t h en you a g r ee t o p ur g e a l l m a t e r i a l s r e l a t i n g t o t hi s Property i nc l udi ng thi s O fferi ng Mem orandum . A p r o sp ec t iv e p u r ch a s e r ’s s o l e a n d e xcl usi ve ri ghts wi th respec t to thi s prospec ti ve transac ti on , t h e Propert y, or in format ion provid ed h erein o r in c o nne c t i o n w i t h t h e s a l e o f t h e P r o perty shal l be l i m i ted to those expressl y provi ded i n an execu t ed Pu rch as e Agreemen t an d s h all b e s ub je c t t o t he t e r m s t h e r e o f. In n o e v e n t shal l a prospec ti ve purc haser have any other c l ai m s again s t Seller or M at t h ews Ret ail Ad vis ors or a ny o f t heir a ff i l i a t e s o r a n y o f t h e i r r e s p ec ti ve offi c ers, Di rec tors, sharehol ders, owners, em ployees , or agen t s for an y d amages , liab ilit y, or c a us es o f a c t i o n r e l a t i n g t o t h i s s o l i ci t a t i on proc ess or the m arketi ng or sal e of the Property. T his Of f er ing M e m o r a n du m s h a l l n o t be deem ed to represent the state of affai rs of the Prope rt y or con s t it u t e an in d icat ion t h at t h ere h as b e en no c ha nge i n t h e s t a t e o f a f f a i r s o f the Property si nc e the date thi s O fferi ng Mem orandum. BIG LOTS! 1530 E JACKSON ST THOMASVILLE, GA 31792 TABLE O F CO NT ENTS 04. Executive Summary 06. Property Overview 13. Tenant Overview 15. Area Overview 17. Demographics ™ Andrew Gross Associate Chad Kurz SVP & National Director Kyle Matthews Broker of Record License No. 01987860 O 310.955.1773 M 435.659.1404 andrew.gross@matthews.com License No. 01911198 O 310.919.5850 M 562.480.2937 chad.kurz@matthews.com License No.363764 E XECUTIVE S UMMARY Investment Highlights Prime Retail Location • • High Traffic Signalized Corner - Pinetree Blvd boasts over 15,000 ADT and Jackson Street hosts over 18,000 ADT Property is situated on the corner Jackson St. and Pinetree Boulevard with excellent visibility from either thoroughfare Proven Location for Exceptional Tenant Performance • • • • • Incredibly Healthy Rent to Sales ratio of 3.69% Big Lots! has successfully operated at this location for nearly twenty years Brand new Parking Lot resurfacing completed September of 2016 Brand new outparcel development, increasing traffic driven toward location Reported sales have a year-over-year upward trend Nationally Recognized, Credit Tenant • • Big Lots! is a national retailer, with nearly 1,500 locations Big Lots! is a publicly traded company on the New York Stock Exchange which was recently upgraded to BBB credit (Investment Grade) Strong Potential Upside Possibility • • • • Minimal landlord responsibility – Landlord only responsible for roof and structure Big Lots! reimburses the taxes and insurance and pays an additional fixed amount of $226.58 per month for parking lot replacement (Capital Expenditure Contribution). Final Option period approaching with strong indication of extension Current rent per square foot ($3.95/SF) is nearly 300% below market rent for Thomasville retail property ($10.70/SF) High Upside potential for New Development • • • 4 I Matthews Retail Advisors Approval to Sub-Parcel: Development for additional outparcel approved by Thomasville City Council Land and building directly behind the building primed to be converted to additional parking for new development opportunities The recently constructed Zacadoo’s Restaurant on the corner outparcel includes state of the art landscaping which contributes a strong aesthetic driver toward this location Executive Summary Annualized Operating Data Monthly Rent Annual Rent Rent/SF Current - 1/31/2018 $9,063.00 $108,756.00 $3.05 BIG LOTS! Option 1 - 1/31/2023 $9,969.30 $119,631.60 $4.34 1530 E Jackson St Thomasville, GA 31792 *Capital Expenditure Contribution $226.58 $2,718.96 $453.15 $5,437.80 List Price............................................................................................. $1,967,965 CAP Rate - Current���������������������������������������������������������������������������������� 5.25% Gross Leasable Area�������������������������������������������������������������������� ± 27,539 SF Lot Size .................................................................. ± 2.32 Acres (101,059 SF) Year Built...............................................................................................1977/1993 Expenses Recurring Leasing Commission (5% of Base Rent) Miscellaneous Expenses Total Expenses Net Operating Income $000 $453.15 $5,437.80 $8,609.85 $103,318.20 *Capital Expenditure Contribution not included in Net Operating Tenant Summary Tenant Trade Name Big Lots! Type of Ownership Fee Simple Lease Guarantor Lease Type Roof and Structure Original Lease Term Lease Commencement Date Rent Commencement Date Lease Expiration Date Term Remaining on Lease Increases Options Corporate NN Landlord Responsible 10 Years 10/21/1997 11/1/1997 1/31/2018 1.42 Years 10% Increase in Option Period One (1), Five (5) Year Option Matthews Retail Advisors | 5 P ROPERTY O VERVIEW 6 I Big Lots! Physical Description Property Name Property Address Assessor’s Parcel Number Big Lots! 1530 E Jackson St Thomasville, GA 31792 011-023007 Site Description Number of Stories Year Built Gross Leasable Area (GLA) Lot Size Type of Ownership Parking One 1977/1993 ± 27,539 SF ± 2.32 Acres (101,059 SF) Fee Simple ± 126 Surface Spaces Parking Ratio 4.63 : 1,000 SF Landscaping Professional Topography Generally Level Construction Foundation Concrete Slab Framing Wood Exterior Brick Parking Surface Roof Asphalt Flat Matthews Retail Advisors | 7 Site Plan Approved for development 8 | Big Lots! Aerial 9 | Big Lots! Regional Map Matthews Retail Advisors | 10 Tenant Map 11 | Big Lots! Bird’s Eye lvd eB E J k c a tre n o s 1 ± St ine EP 0 0 0 , 8 T D A DT 0A ,00 ±15 12 | Big Lots! Matthews Retail Advisors | 12 T ENANT O VERVIEW 13 | Big Lots! Property Name Property Type Ownership Credit Rating Rating Agency Revenue Net Income Stock Symbol Board No. of Locations No. of Employees Headquartered Web Site Year Founded Big Lots! Inc. Net Leased Big Box Public BBB Standard & Poor’s $5.19B $142.87M BIG NYSE ±1,570 Big Lots! believes that a product’s shelf life depends solely on which shelf it’s on. The company is North America’s #1 broadline closeout retailer, with about 1,570 Big Lots! stores in 48 US states and seven provinces in Canada. It sells a variety of brand-name products, including food and other consumables, furniture, housewares, seasonal items and toys, that have been overproduced, returned, discontinued, or result from liquidations, typically at 20%-40% below discounters’ prices. Its wholesale division sells its discounted merchandise to a variety of retailers, manufacturers, distributors, and other wholesalers. Big Lots! boasts seven regional distribution centers, one each in Alabama, California, Oklahoma, Ohio, and Pennsylvania, and two in Canada to receive, process, and distribute the majority of its merchandise to its retail locations across North America. ±35,000 Columbus, OH www.biglots.com 1967 Matthews Retail Advisors | 14 A REA O VERVIEW Thomasville, Georgia Thomasville is a city located in Thomas County, Georgia on the Georgia-Florida State line and is the second largest city in southwest Georgia after Albany. Known for its wellpreserved historic and vibrant downtown, Thomasville is an enchanting place of the “red hills” region of Georgia. Throughout the Victorian era, Thomasville was known as the “Winter Resort of the South” seeing as wealthy northerners would flock to the city for the mild climate and the pine-scented air. Today, the historical fabric is very much alive in the architecture of the Victorian homes, downtown shops, and the brick-paved streets. Residents remain proud of the community’s heritage and preserve the old-world feel while continuing to progress and achieve big-city ideals. Plantations, museums and historic homes are located throughout the city and offer glimpses into the grand Victorian era. Thomasville is unique in that it has not only preserved many of its original downtown buildings, but many of its original down town businesses, as well. The restored Victorian storefronts put a lovely face on a fun variety of stores offering everything from recreational gear to fashionwear. The city’s brick-paved streets lend an old world feel to the bustling shopping district, which draws consumers from throughout south Georgia and north Florida as well as visitors from around the country and the world. Top Employers # Employer 1 Flowers Foods (Corporate Headquarters) 2 Flowers Baking Company 3 Archbold Memorial Hospital 4 Cleaver-Brooks 5 Hurst Boiler 6 Turbine Engine Component Technologies (TECT) 7 Blue Bell Creameries 8 Oil-Dri Corporation 9 Cives Steel Company 10 American Signature Furniture 15 | Big Lots!Matthews Retail Advisors | 15 Albany, Georgia Albany is the hub of southwest Georiga for shopping, cultural activities, education and is also the primary trade center for the region. The city is the heart of Plantation Trace, the southern portion of Georiga’s Southern Rivers Region. Defined by the free-flowing rapids of the Flint River, named such by Creek Indians for its rich mineral flint or quartz, Albany is called the “Good Life City.” The centerpiece of redevelopment in downtown Albany, the river serves as a natural backdrop to the Flint RiverQuarium, a 175,000-gallon, 22-foot deep Blue Hole aquarium that opened in 2004 highlighting the journey of the river and the natural ecosystems of the Apalachicola, Chattahoochee and Flint River basins. Albany boasts several quality-of-life amenities within walking distance of the aquarium, including Riverfront Park, Turtle Grove Play Park, the Thronateeska Heritage Center, Wetherbee Planetarium and the Albany Civil Rights Institute. Families and visitors with a passion for wildlife can visit the only AZA-accredited zoo outside of Atlanta – Chehaw Animal Park, featuring Creekside Education Center, Children’s Play Park and a nationally sanctioned BMX bike track. Albany also has the region’s only permanent installation of traditional African art as well as exhibitions of American Impressionism at the Albany Museum of Art. Home to Marine Corps Logistics Base Albany, which has established itself as a leader in the adoption of private sector business strategies to accomplish its mission, Albany’s origin was predominantly an agricultural hub. Agriculture still plays a large role in the economy today with chief farm products of cotton, peanuts, corn, and tobacco, in addition to paper-shell pecans and forest products. The city has also developed a diversified industrial economy including companies such as Procter & Gamble, M&M Mars, Coats & Clark, Tara Foods, and Pfizer. Albany is also home to locally grown industries, such as Sasco and Equinox, which are making a name for themselves worldwide. Matthews Retail Advisors | 16 Demographics Population 1-Mile 3-Mile 5-Mile 2021 Projection 23,612 30,541 39,611 2016 Estimate 22,968 29,631 38,457 2010 Census 22,633 29,072 37,741 2000 Census 21,544 27,644 35,560 Growth 2016 - 2021 2.81% 3.07% 3.00% Growth 2010 - 2016 1.48% 1.92% 1.90% Growth 2000 - 2010 5.06% 5.17% 6.13% Households 1-Mile 3-Mile 5-Mile 2021 Projection 9,704 12,361 15,823 2016 Estimate 9,397 11,918 15,278 2010 Census 9,193 11,572 14,856 2000 Census 8,389 10,584 13,548 Growth 2016 - 2021 3.27% 3.72% 3.57% Growth 2010 - 2016 2.22% 2.99% 2.84% Growth 2000 - 2010 9.57% 9.33% 9.65% Income 1-Mile 3-Mile 5-Mile Income < $15,000 24.71% 23.27% 22.51% Income $15,000 - $24,999 13.32% 13.47% 13.42% Income $25,000 - $34,999 13.16% 13.16% 12.95% Income $35,000 - $49,999 16.72% 15.75% 15.29% Income $50,000 - $74,999 16.91% 16.60% 16.76% Income $75,000 - $99,999 6.76% 7.39% 8.31% Income $100,000 - $124,999 3.38% 4.16% 4.44% Income $125,000 - $149,999 1.73% 2.13% 2.21% Income $150,000 - $199,999 1.57% 1.91% 1.90% Income $200,000 - $249,999 0.63% 0.79% 0.81% Income $250,000 - $499,999 0.76% 0.97% 1.02% Income $500,000+ 0.36% 0.41% 0.40% 2016 Est. Average Household Income $46,435 $49,675 $50,809 2016 Est. Median Household Income $34,096 $35,096 $36,106 17 | Big Lots! Matthews Retail Advisors | 18 ™ Andrew Gross Associate Chad Kurz SVP & National Director Kyle Matthews Broker of Record License No. 01987860 O 310.955.1773 M 435.659.1404 andrew.gross@matthews.com License No. 01911198 O 310.919.5850 M 562.480.2937 chad.kurz@matthews.com License No.363764