Established NN Goody`s/Stage Stores, Inc.

FOR SALE |
+/- 17,040 SQ FT
Established NN Goody’s/Stage Stores, Inc.
$792,000 | 9% Cap Rate | Strong Rent Bumps 2014
1020 US Highway 84 W | Cairo, GA | 39828
Theresa Johnson
VP, National Retail Group
TJohnson@BullRealty.com
404.876.1640 x 109
Bull Realty is pleased to present a unique opportunity to acquire Goody’s, a single
tenant, free-standing, net lease offering situated on +/- 2.89 acres with a square
footage of +/- 17,040. The population within a 10-mile radius is 22,591 with an
average household income of $45,052.
Virginia Wright, CCIM
VP, National Retail Group
VWright@BullRealty.com
404.876.1640 x 134
The corporate guaranteed rent commenced in October 1995; rents are currently
$71,227 annually. Goody’s recently executed an extension on the initial term of the
lease to 2017, demonstrating the retailer’s satisfaction with this location. This is a
solid investment for an investor looking for very minimal landlord responsibilities,
good real estate and a successful national credit tenant.
Bull Realty, Inc.
50 Glenlake Parkway, Ste 650
Atlanta, GA 30328
www.BullRealty.com
404.876.1640
Goody's is a brand used for clothing stores operated by Stage Stores, Inc. Based in
Houston, Texas, Stage Stores, Inc. holds an A+ BBB credit rating. Located in the City
of Cairo, the property benefits from its strategic location at the intersection of First
Avenue and State Route 38 / US Hwy. 84. State Route 38 / US Hwy. 84 ,the major
artery through town, with traffic counts of 21,420 vehicles per day. Goody’s enjoys a
strong residential base in the immediate area. Cairo, GA, is located in south Georgia,
15 miles north of the Florida border on Highway 93. Approximately 60 miles west of
Valdosta, GA, on State Route 38, 55 miles directly south of Albany, GA, and 35 miles
north of Tallahassee, Florida.
Offered at $792,000
Page of 18
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
Disclaimer
Goody’s/ Stage Stores Inc.
1020 US Highway 84 W
Cairo, GA 39828
Limiting Conditions:
The Confidential Memorandum contains selected information pertaining to the Property but does not
purport to be all-inclusive or to contain all of the information that a prospective purchaser may require. All
financial projections are provided for general reference purposes only and are based upon assumptions
relating to the general economy, competition and other factors, which therefore, are subject to material
change or variation. Prospective purchasers may not rely upon the financial projections, as they are illustrative only. An opportunity to inspect the Property will be made available to qualified prospective purchasers.
In this Confidential Memorandum, certain documents, including financial information, are described in
summary form and do not purport to be complete or accurate descriptions of the full agreements involved,
nor do they constitute a legal analysis of such documents. Interested parties are expected to review
independently all documents.
This Confidential Memorandum is subject to prior placement, errors, omissions, changes or withdrawal
without notice and does not constitute a recommendation, endorsement or advice as to the value of the
Property by Bull Realty Inc. or the current Owner/Seller. Each prospective purchaser is to rely upon its own
investigation, evaluation and judgment as to the advisability of purchasing the Property described herein.
Owner/Seller expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or
offers to purchase the Property and/or to terminate discussions with any party at any time with or without
notice. Owner/Seller shall have no legal commitment or obligation to any purchaser reviewing this
Confidential Memorandum or making an offer to purchase the Property unless a written agreement for the
purchase of the Property has been fully executed, delivered and approved by the Owner/Seller and any
conditions to the purchaser’s obligations therein have been satisfied or waived.
This Confidential Memorandum may be used only by parties approved by the Owner. The Property is
privately offered, and by accepting this Confidential Memorandum, the party in possession hereof agrees
(i) to return it if requested and (ii) that this Confidential Memorandum and its contents are of a confidential
nature and will be held and treated in the strictest confidence. No portion of this Confidential Memorandum
may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization from
Bull Realty, Inc. or Owner/Seller. The terms and conditions set forth above apply to this Confidential
Memorandum in its entirety and all documents, disks and other information provided in connection
therewith.
Page 2 of 18
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
Lease Highlights
Lease Commencement :
June 30, 2012 (Original Lease Commencement Date)
Term End:
June 30, 2017 (Lease extension executed)
Type:
NN
Renewal Options:
One 5-Year Option
Escalations:
24% in July 2014
Guarantee:
Corporate guarantee by Stage Stores, Inc.
Square Footage:
+/- 17,040 sq ft
Tenant
Responsibilities:
Repairs of HVAC, plumbing & lighting, and sewage facilities.
Utilities, interior structure, real estate taxes & insurance, and CAM*
Landlord
Responsibilities:
Roof, structure, landscaping and parking lot.
Price:
$792,000
Price/SF:
$46.48
Annual Rent:
$71,227
Rent /SF:
$4.18
Initial Cap Rate:
9%
Rent Schedule:
Option 1
Option 2
Rent
Cap Rate
$71,227
9%
7/2012 — 6/2014
$88,267
11%
7/2014 — 6/2017
$88,267
11%
7/2017 — 6/2022
* Real estate taxes and insurance paid by Landlord and fully reimbursed annually by Tenant
* Common Area Maintenance cost paid by Landlord and reimbursed by Tenant up to $.35/Sq. Ft.
Page 3 of 18
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
Investment Highlights
Annual
Rent
7/2012 6/2014
$5,936
$71,227
n/a
$497
$18,563
$89,790
$4.18
7/20146/2017
$7,356
$88,267
24%
$497
$18,563
$106,830
$5.18
7/20176/2022
$7,356
$88,267
n/a
$497
$18,563
$106,830
$5.18
Lease Terms
Option 1
Option 2
Mo. CAM
Expense
Reimburse- Reimburse- Gross Annual
Increase
ment
ment
Rent
Monthly
Rent
Projected Expenses
Period
Year
Taxes
Insurance
Option 1
7/12 — 6/14
$10,449
$2,150
7/14 — 6/17
$10,449
$2,150
7/17 — 6/22
$10,449
$2,150
Option 2
Projected Income
Period
Year
NOI
Cap Rate
Option 1
7/12 — 6/14
$71,227
9%
7/14 — 6/17
$88,267
11%
7/17 — 6/22
$88,267
11%
Option 2
Page 4 of 18
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
Rent
PSF
Site Plan
Page 5 of 18
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
Property Highlights
Address
1020 US Highway 84
Cairo, GA 39828
County
Grady
Approximate Square Feet
17,040
Total Size of Retail Center
5.7
Cap Rate
9%
Parking Spaces
Shared
394
6 per 1,000 SF
Year Built
1997; Renovated 2008
Zoning
Commercial
Anchor Tenant
Goody’s & Harvey’s
Price
$792,000
Price per Square Foot
$46.48
Page 6 of 18
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
Additional Photos
Goody’s, although freestanding, is part of a larger retail center (Cairo Crossing).
Page 7 of 18
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
Building Details
Structural Components
Description
Good
Foundation— concrete footings and 4” concrete floor slabs
supporting CMU Block
X
Exterior—Brick
X
Roof cover—2 Ply Membrane
New Cap sheet installed in 2008
X
Floor coverings—vinyl tile , carpet and sealed concrete
X
Interior walls—painted sheetrock
X
Ceilings—suspended acoustical tile
X
New
Building & Site Improvements
Description
Good
Lighting—commercial fluorescent fixtures
X
Electrical—standard commercial conduit
X
Plumbing—standard commercial piping, Madison County
provides public water & sewer
X
Storefronts—glass entry doors and fixed-pane windows in
aluminum frames
X
Parking & Driveways—Asphalt overlay
X
Landscaping—grass, small trees & shrubs
X
Fire Sprinklers
X
HVAC—Roof mounted HVAC units
X
Page 8 of 18
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
New
Location Maps
Cairo is located in south Georgia, 15 miles north of the Florida border
on Highway 93. Cairo Crossing is: 60 miles west of Valdosta, GA; 55
miles south of Albany, GA; 35 miles north of Tallahassee, FL.
Page 9 of 18
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
Aerial Images
Property
Page 10 of 18
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
Center Tenant Information
Tenant Trade Name:
Headquarters:
Number of Locations:
Web Site:
Credit Rating:
Harveys
Salisbury, NC
69 (Harveys); 1,627 (Delhaize America)
www.harveys-supermarkets.com
www.delhaizegroup.com
BBB
Delhaize America, Inc., a wholly-owned subsidiary of Belgium-based Delhaize Group, operates retail food supermarkets
in the eastern United States, including the Harveys chain of stores which operates in Georgia, Florida, and South
Carolina. The company was incorporated in North Carolina in 1957. Delhaize America has 1,627 stores in the US run by
six subsidiary operating companies that do business under the banners Food Lion, Bloom, Bottom Dollar, Harveys,
Hannaford Bros., and Sweetbay. Delhaize Group is listed on the New York Stock Exchange (DEG). As of 2010, Delhaize
America employed more than 100,000 full-time and part-time associates.
Page 11 of 18
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
Aerial Retail Map
SCHOOL
CITY HALL
SCHOOL
SCHOOL
HOSPITAL
Page 12 of 18
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
Goody’s Information
Tenant Trade Name:
Headquarters:
Web Site:
Locations:
Goody’s
Houston, TX
www.goodysonline.com
800+
Stage Stores, Inc. is a department store company specializing mostly in retailing brand name clothing, accessories,
cosmetics and footwear. It has its headquarters in Houston, Texas.
Stage Stores, Inc. brings moderately priced, nationally recognized brand name and private label apparel, accessories,
cosmetics and footwear for the entire family to small and mid-size towns and communities across 40 states. With over
800 stores operating under the “Bealls”, “Goody’s”, “Palais Royal”, “Peebles” and “Stage” trade names, the Company
believes that it has developed a unique retailing concept and niche in these markets by offering a broad range of
nationally recognized brand name merchandise with a high level of customer service in convenient locations.
Stage Stores, Inc. - Historical Stock Chart
Page 13 of 18
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
Traffic Count
Page 14 of 18
Source: STDB.com
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
Demographics
Page 15 of 18
Source: STDB.com
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
Demographics
Page 16 of 18
Source: STDB.com
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
Broker Profiles
Theresa Johnson
Vice President, National Retail
Group
O) 404.876.1640 x 109
TJohnson@BullRealty.com
www.BullRealty.com
Theresa Johnson’s practice focuses on helping clients sell and
acquire retail investment properties in the southeast. Ms.
Johnson has extensive experience in the acquisition, asset
management and operation of grocery anchored shopping
centers. Her professional relationships extend nationwide to
include the largest REITs, funds and investment companies
within the retail sector.
Theresa is an active member of the International Council of
Shopping Centers and Certified Commercial Investment
Member (CCIM). In addition to having her own real estate
company for over ten years as a principal, she continuously
increases her knowledge with attending nationwide
conferences and seminars.
Ms. Johnson graduated from Georgia State University with a
BA in Marketing and has held a Real Estate license since 1989.
She lives in Atlanta with her husband Bruce and daughter
Josephine. She enjoys working in the community and has
served on several non profit boards and on the Executive
Board of the Oglethorpe Museum.
Virginia I. Wright, CCIM
Vice President, Net Lease Investments
404.876.1640 x 134
VWright@BullRealty.com
www.TripleNetInsight.com
Virginia is Vice President of Net Lease Investments at Bull Realty,
where she works closely with buyers and sellers throughout the
United States helping them meet their real estate investment
objectives. She is primarily focused on single tenant net lease and
1031 tax deferred exchanges.
With extensive experience within the commercial market
throughout the southeastern region, Virginia has also brokered
transactions across the United States. She is licensed in Georgia,
North Carolina, South Carolina and Florida and is currently
acquiring real estate licenses in several other states.
As a Certified Commercial Investment Member (CCIM) of the CCIM
Institute, Virginia has achieved the highest designation in the field
of commercial real estate. The commercial real estate industry
recognizes that the CCIM designation certifies that she is an expert
in the field of commercial real estate. Only 6% of commercial real
estate broker/agents nationwide have the CCIM designation.
Virginia is a member of various professional organizations
including the National and Atlanta Commercial Board of Realtors,
the International Council of Shopping Centers, and the CCIM
Georgia Chapter.
Bull Realty is a regional commercial real estate brokerage firm with three offices, headquartered in Atlanta, Georgia.
The firm is best known for their successful national marketing platform.
•
•
•
•
•
Specific broker teams specialize in either retail, office, industrial, multi-family, land, medical, automotive, net lease,
hospitality or special asset services.
Bull Realty provides marketing and special asset services for 74 lenders.
Google consistently chooses BullRealty.com as the number one website for the most often used search phrase
used by people looking for commercial real estate in Georgia, “Commercial Real Estate Georgia”.
Bull Realty marketing services includes video, social media and radio for appropriate properties.
The firm sponsors and hosts the Commercial Real Estate Show, a national talk radio show about commercial real
estate which airs on radio stations and on-line at www.CREshow.com.
Page 17 of 18
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
Principal Confidentiality Agreement
This Confidentiality Agreement (“Agreement”) is made and agreed to for the benefit of the undersigned party (“Receiving
Party”), the owner of the subject property and undersigned agent for the owner, Bull Realty Incorporated (“Broker”).
Now, therefore in consideration of the privileges granted to Receiving Party with respect to receiving certain confidential information, and other good and valuable consideration, the Receiving Party hereby agrees to the following:
I. Confidential Information:
Receiving Party will receive confidential information regarding a property referred to as: Goody’s—1020 US Highway 84 W,
Cairo, GA 39828. Receiving party agrees to not disclose with any person that the property may be available for sale or lease, or
that discussions or negotiations are taking place concerning a possible purchase or lease of the property, nor any terms, conditions, or other facts with respect to the property, including but not limited to tenant information, lease rates, lease expirations, income and expenses, and any such possible purchase, including the status thereof. The term “person” used in this
agreement shall be interpreted broadly and shall include, without limitation, any corporation, company, partnership or individual other than parties to which Broker approves in writing. Receiving party agrees to not contact the property owner, the management, the tenants, the lender, the vendors, the insurers, the employees or the customers of any business at the site.
II. Acting as a Principal:
Receiving party hereby warrants that it is acting as a principal only, and not as a broker, regarding this contemplated transaction. Receiving party acknowledges and agrees that Bull Realty, Incorporated, will be used as the sole broker or agent in connection with the purchase or lease of the property paid by and representing the Seller. Receiving party agrees to not be involved in any arrangement to purchase the property, in whole or part, as a lender, partner or in other manner, unless Bull Realty, Incorporated is included as the only Real Estate Broker paid in the transaction by the seller/landlord. Receiving party reserves the right to involve any agent, broker, attorney or other advisor in the transaction provided said party is paid by the
Purchaser and said party has agreed in writing to the confidentiality in paragraph one of this agreement.
This Agreement shall be governed and construed in accordance with the laws of the State of Georgia.
Accepted and agreed to this
day of
, 2012.
Receiving Party
Broker
Bull Realty
By:
By:
Name/Title:
Name:
Theresa Johnson
Virginia Wright
Company:
Company:
Bull Realty, Inc. #H-20209
Address:
Address:
50 Glenlake Parkway
Suite 650
Atlanta, Georgia 30328
Phone:
Phone:
Fax:
Fax:
Page 18 of 18
Information contained herein may have been provided by outside sources and while deemed to be reliable,
may be estimated, projected, subject to change, and/or limited in scope, and therefore should not be relied
upon as accurate. Information should be independently confirmed within an applicable due diligence period.
404-876-1640 ext. 109
404.876.1640 ext 134
678.892.4980