Family Dollar Hohenwald, TN

offering memorandum.
Family Dollar
Hohenwald, TN
$1,631,000
6.25% CAP Rate
New 15-Year Absolute
••Brand
NNN Lease
••
•Relocation
•
Store
••2015 Construction
••Close Proximity to Nashville
••
Corporate Guarantee
Scheduled Rental Increases
FILE PHOTO
This property is listed in conjunction with Tennessee-licensed real estate broker MalmoMemphis, LLC.
www.maffiateam.com
Disclaimer
Newmark Cornish & Carey (“Broker”) has been retained on an exclusive basis to
market the property described herein (“Property”). Broker has been authorized
by the Seller of the Property (“Seller”) to prepare and distribute the enclosed
information (“Material”) for the purpose of soliciting offers to purchase from
interested parties. More detailed financial, title and tenant lease information may
be made available upon request following the mutual execution of a letter of intent
or contract to purchase between the Seller and a prospective purchaser. You are
invited to review this opportunity and make an offer to purchase based upon your
analysis. If your offer results in the Seller choosing to open negotiations with you,
you will be asked to provide financial references. The eventual purchaser will be
chosen based upon an assessment of price, terms, ability to close the transaction
and such other matters as the Seller deems appropriate.
The Material is intended solely for the purpose of soliciting expressions of interest
from qualified investors for the acquisition of the Property. The Material is not to be
copied and/or used for any other purpose or made available to any other person
without the express written consent of Broker or Seller. The Material does not
purport to be all-inclusive or to contain all of the information that a prospective
buyer may require. The information contained in the Material has been obtained from
the Seller and other sources and has not been verified by the Seller or its affiliates.
The pro forma is delivered only as an accommodation and neither the Seller, Broker,
nor any of their respective affiliates, agents, representatives, employees, parents,
subsidiaries, members, managers, partners, shareholders, directors, or officers,
makes any representation or warranty regarding such pro forma. Purchaser must
make its own investigation of the Property and any existing or available financing,
and must independently confirm the accuracy of the projections contained in the
pro forma.
Seller reserves the right, for any reason, to withdraw the Property from the market.
Seller has no obligation, express or implied, to accept any offer. Further, Seller has
no obligation to sell the Property unless and until the Seller executes and delivers
a signed agreement of purchase and sale on terms acceptable to the Seller, in
its sole discretion. By submitting an offer, a purchaser will be deemed to have
acknowledged the foregoing and agreed to release Seller and Broker from any
liability with respect thereto.
Table of Contents
Property Information
Tenant Information
site plan
aerial
about the area
Demographics
1
2
3
4
6
8
Property walk-throughs are to be conducted by appointment only. Contact Broker
for additional information.
Vincent Aicale
Vice President
415.373.4057
vaicale@newmarkccarey.com
CA RE License #01728696
www.maffiateam.com
Property Information
Location
The property is located at the Southwest Corner of West Main Street
and South Walnut Street in Hohenwald, Tennessee.
Net Annual Income
Years
Annual Rent
Return
1-10
$101,907
6.25%
11-15
$112,098
6.88%
Lot Size
16-20
(Option 1)
$123,307
7.56%
Approximately 0.90 acres, or 39,204 square feet.
21-25
(Option 2)
$135,638
8.32%
26-30
(Option 3)
$149,202
9.15%
31-35
(Option 4)
$164,122
10.07%
36-40
(Option 5)
$180,534
11.07%
41-45
(Option 6)
$198,588
12.18%
Improvements
An approximately 8,320 square foot retail building for Family Dollar
is under construction with an estimated delivery date in September
of 2015. There is ample parking on the site.
Lease
Leased to Family Dollar Stores, Inc. for 15 years with an expiration
of September 30th, 2030 at an annual net rent of $101,907. There
are six five-year options. The rent increases by 10% throughout
after year 10 of the initial term and at the beginning of every 5, year
option period. The lease is net, with the tenant responsible for taxes,
insurance, and all maintenance, including roof and structure.
Price: $1,631,000 (6.25% Return)
Financing
The property will be delivered free and clear of permanent
financing.
1
Tenant Information
Family Dollar Stores, Inc. (NYSE: “FDO”), Family Dollar Stores, Inc. operates a chain of more than 7,400
general merchandise retail discount stores in 45 states, providing consumers with a selection of merchandise in
neighborhood stores. The Company offers a focused assortment of merchandise in a number of core categories,
such as health and beauty aids, packaged food and refrigerated products, home cleaning supplies, house wares,
stationery, seasonal goods, apparel, and home fashions. During the fiscal year ended August 30, 2014, the
Company operated over 8,000 stores, with sales of $10.49 Billion. The company is rated “BBB-“ by Standard &
Poor’s.
On January 22, 2015 Family Dollar shareholders voted to approve the company’s acquisition by Dollar Tree for $8.7 Billion. With this acquisition,
the company will have over 13,000 stores in 48 states and 5 Canadian Providences and sales of over $18 Billion.
For additional information, see www.familydollar.com.
2
Site Plan
/ W MAIN
ST
8,320 SF
S WALN
UT ST
SIGN
3
Aerial | Close Up View
Kanson Electronics
Lewis Health Center
Lewis County Library
Morrows Supermarkets
Embassy Inn
/W
Main
St
S
W
al
nu
tS
t
DOWNTOWN
Lewis County
Elementary School
Lewis County
Middle School
4
Aerial | Distant View
(Previous Location)
NP
ark
Embassy Inn
St
DOWNTOWN
Lewis County
Middle School
/W
in
Ma
St
Lewis County
Elementary School
SW
aln
ut
St
5
About the Area
General Overview
Hohenwald is a city in and the county seat of Lewis
County, Tennessee. The population was 3,757 at
the 2010 US Census. Hohenwald is the home of
The Elephant Sanctuary, the largest natural-habitat
sanctuary for elephants in the United States.
Hohenwald is located 75 miles southwest of Nashville.
Nashville is the capital of Tennessee and has a
population of roughly 660,000 residents. As the
“home of country music”, Nashville has become a major
music recording and production center. All of the Big
Four record labels, as well as numerous independent
labels, have offices in Nashville, mostly in the Music
Row area. Nashville has been home to the headquarters
of guitar company Gibson since 1984. Since the
1960s, Nashville has been the second-largest music
production center (after New York) in the U.S. As of
2006, Nashville’s music industry is estimated to have
a total economic impact of $6.4 billion per year and to
contribute 19,000 jobs to the Nashville area. Although
Nashville is renowned as a music recording center
and tourist destination, its largest industry is health
care. Nashville is home to more than 300 health care
companies, including Hospital Corporation of America
(HCA), the largest private operator of hospitals in the
world. As of 2012, it is estimated that the health care
industry contributes $30 billion per year and 200,000
jobs to the Nashville-area economy. The automotive
industry is also becoming increasingly important for
the entire Middle Tennessee region. Nissan North
America moved its corporate headquarters to Franklin,
Tennessee in 2006. Nissan also has its largest North
American manufacturing plant in Smyrna, Tennessee.
Largely as a result of the increased development of
Nissan and other Japanese economic interests in the
region, Japan moved its former New Orleans consulategeneral to Nashville’s Palmer Plaza. Bridgestone
has a strong presence with their North American
headquarters located in Nashville, with manufacturing
plants and a distribution center in nearby counties.
About the Area
Site Information
The property is located on the southwest corner
of West Main Street and South Walnut Street.
Main (US Highway 412) is the major thoroughfare
running through Hohenwald. The site is 5 blocks
away from downtown Hohenwald. The estimated
traffic count on Main Street, 4 blocks away from
the property is 9,000 AADT.
Family Dollar relocated to this site from an
older, inline store a 1.5 miles east on Main Street
indicating Family Dollar’s strong desire to operate
in this submarket.
An estimated 5,788 people reside within a threemile radius of the subject property with an average
household income $39,801.
Demographics
Main St & S Walnut St, Hohenwald, TN 38462
1 Mile
3 Miles
5 Miles
2010 Total Population
2,994
5,919
8,636
2015 Total Population
2,919
5,788
8,540
2020 Total Population
2,879
5,720
8,500
-0.28%
-0.24%
-0.09%
2015
$37,165
$39,801
$43,204
2020
$41,479
$44,360
$48,406
2015
$62,213
$63,875
$70,616
2020
$73,492
$76,212
$84,067
2015
$14,876
$15,838
$17,206
2020
$16,571
$17,631
$19,281
Population Summary
2015-2020 Annual Rate
Average Household Income
Median Home Value
Per Capita Income
8
FILE PHOTO
901 Mariners Island Boulevard, Suite 120
San Mateo, CA 94404
Vincent Aicale
Vice President
415.373.4057
vaicale@newmarkccarey.com
CA RE License #01728696
www.maffiateam.com