walmart neighborhood market

walmart
neighborhood
market
Actual store
guaranteed by AA rated walmart
possible 3.5% long-term debt
20 year lease
high growth metro area of 250,000+
opened january 28th
SEC of Belair Rd & Plantation Rd, Augusta, GA 30907
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 GA Licensed Broker:
Steve Miller of Miller Realty Services, Inc.
smiller@millerrealtyservices | (770) 409-0266
Actual store
Newly opened walmart neighborhood market,
located in Augusta, GA - a city of more than
250,000 residents
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. This is an “above-standard” Walmart store, with upscale modifications required
by the city
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: $13,954,040
CAP: 5.00%
RENTABLE SF. . . . 41,117 SF
LEASE TYPE. . . . . . Modified NNN
LAND AREA. . . . . . 5.60 Acres
YEAR BUILT. . . . . . 2015
lease highlights
New 20 year lease began January 28, 2015
Rent increases 10% and 5% in the options
Guarantor is one of the strongest companies in the world
location highlights
This area has a high forecasted growth of 10% from 2013 to 2018
Augusta is one of the major cities in Georgia
Traffic counts of 25,000 on Belair Rd
Investment summary
The combination of basic grocery store use, long lease, strong traffic
counts, unsurpassed credit, high growth, and a populous metro area
makes this one of the most attractive properties on the market
walmart neighborhood market | 2
Income & Expense
PRICE
$13,954,040
Cap Rate:
5.00%
Total Rentable Area (SF):
41,117
Lot Size (Acres):
STABILIZED INCOME
5.60
Per Square Foot
Scheduled Rent
$16.97
$697,702
Effective Gross Income
$16.97
$697,702
LESS
Per Square Foot
Taxes
$0.00
Insurance
$0.00
Total Operating Expenses
$0.00
EQUALS NET OPERATING INCOME
$697,702
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
Actual| store
Site
walmart
neighborhood
market
Walmart
od
Neighborho
Market
160,000 sF
PROPERTY WITH
FUEL CENTER
AND DRIVE-THRU
PHARMACY
walmart neighborhood market | 4
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/ Yearly Rent/
FT
FT
2/1/2015
1/31/2035
$697,702
$58,142
$697,702
$1.41
$16.97
2/1/2035
1/31/2040
Option 1
$63,956
$767,472
$1.56
$18.67
2/1/2040
1/31/2045
Option 2
$70,352
$844,219
$1.71
$20.53
2/1/2045
1/31/2050
Option 3
$73,869
$886,430
$1.80
$21.56
2/1/2050
1/31/2055
Option 4
$77,563
$930,752
$1.89
$22.64
$697,702
$58,142
$697,702
$1.41
$16.97
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 | 5
Actual store
Site Plan
Walmart
Fueling
Station
walmart neighborhood market | 6
Aerial
POPULATION
Augusta is the principal city of the Augusta-Richmond County Metropolitan Statistical Area, which as of 2012 had an
estimated population of 580,270, making it the third-largest city and the second-largest metro area in the state.
d
lair R
S Be
Westmont
Elementary
Site Location
383
Wheeler Rd
402
20
Brookwood
Elementary
402
20
Carl Sanders
Hwy
Sue Reynolds
Elementary
383
Wrightsboro Rd
walmart neighborhood market | 7
Key Lease Information
Actual store
Tenant
Wal-Mart Stores East, LP (This is a wholly-owned Walmart
subsidiary)
guarantor
Wal-Mart Stores, Inc. (AA rated; the parent company)
rent commencement AND OPENING
January 28, 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.
walmart neighborhood market | 8
Walmart Neighborhood Market
Actual store
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.
walmart neighborhood market | 9
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
Actual store
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 stores, 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.”
walmart neighborhood market | 10
Walmart In The News
Exerpts from article:
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.”
Actual store
“[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.”
“[Walmart’s 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 | 11
Location & Demos
Augusta, GA Overview
Augusta is Georgia’s third-largest city. In addition to the low cost of living and affordable
housing, Augusta offers its residents a beautiful historic city with a diverse culture,
active arts community, and mild climate.
Augusta is the principal city of the Augusta – Richmond County Metropolitan Statistical
Area, which, as of 2012, had an estimated population of 580,270, making it the secondlargest metro area in the state. Augusta is known world-wide for hosting the Masters
Tournament in golf each spring.
In recent years, Augusta has become a center of medicine, biotechnology, and military.
The Medical College of Georgia, the state’s only health science university, employs
over 7,000 people and is ranked as one of the top medical schools in the country.
Along with University Hospital, the Medical District of Augusta employs over 25,000
people and has an economic impact of over $1.8 billion, the largest in the city and one
of the largest in the state.
Along with the Medical College of Georgia, the city’s largest employers include the
Savannah River Site (a Department of Energy nuclear facility) and the U.S. Army Signal
Center at Fort Gordon which has 17,000 workers.
More than 27,000 retiree family members from Fort Gordon call Augusta home.
Companies that have facilities, headquarters or distribution centers in Augusta
include Electrolux (US headquarters), CareSouth, T-Mobile, Automatic Data Processing,
International Paper, NutraSweet, Teleperformance, E-Z-GO, Club Car, John Deere,
Procter & Gamble, and Kellogg’s.
The Augusta airport has frequent non-stop service to Atlanta and Charlotte.
Forecasted growth of 10% from 2013-2018
Population
2010
2013
2018
3-Mile
5-Mile
10-Mile
47,290
50,014
55,419
109,953
114,979
125,760
287,049
299,278
321,544
3-Mile
5-Mile
10-Mile
$63,414
$50,742
$68,438
$51,683
$62,250
$45,209
2013 Household incomes
Average
Median
Top Employers in Augusta
Fort Gordon
Georgia Regents University
Richmond County School System
University Hospital
Georgia Regents Health System
walmart neighborhood market | 12
Regional Map
cation
o
L
a
st
Augu
located in one
of georgia’s
major cities
walmart
neighborhood
market
Augusta
Representative photo
Actual store
walmart neighborhood market | 13
Actual store
A unique HUMAN
RESULTS-DRIVEN
client experience
Rick Sanner
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 GA Licensed Broker:
Steve Miller of Miller Realty Services, Inc.
smiller@millerrealtyservices | (770) 409-0266
Copyright © 2014 [Capital Pacific Real Estate Brokerage Company]