Offering Memorandum SHOPPING CENTER in MACON OPPORTUNITY ZONE | 9% CAP RATE TABLE of CONTENTS
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Offering Memorandum SHOPPING CENTER IN MACON OPPORTUNITY ZONE | 9% CAP RATE TABLE OF CONTENTS EXECUTIVE SUMMARY 3 Will Young PROPERTY INFORMATION 4 President, The Retail Group AERIAL 5 [email protected] DEMOGRAPHICS & TRAFFIC COUNT 6 404-876-1640 x141 IN THE AREA 7 LOCATION MAPS 8 Joe Mitchell V.P. The Retail Group IN THE AREA 9 [email protected] ABOUT THE AREA 11 404-876-1640 x185 OPPORTUNITY ZONES 16 BROKER PROFILES 17 Bull Realty, Inc. CONFIDENTIALITY AGREEMENT 18 50 Glenlake Parkway, Suite 600 Atlanta, GA 30328 DISCLAIMER 19 BullRealty.com Exclusively listed by Bull Realty, Inc. Page 2 of 19 EXECUTIVE SUMMARY SHOPPING CENTER IN MACON OPPORTUNITY ZONE | 9% CAP RATE THE OFFERING INVESTMENT HIGHLIGHTS The subject property is located on Gray Highway, in Bibb County, in downtown Macon. • 27,500 SF retail center located in Macon, GA The property is located within a Macon federal opportunity zone. Gray Hwy produces a traffic count of 41,482 vehicles per day. The median household income within three miles • Tenants represent a healthy mix of local and national companies of the subject property is $83,308 which is $24,000 above the national average. • The subject property is located within a Qualified Opportunity Zone There are many new developments coming up in Macon that will create upside in the • Located on Gray Hwy with a traffic ountc of 41,482 vehicles per day along Gray Hwy market and create jobs. • Located in Downtown Macon “A new hiring initiative at Robins Air Force Base will add 1,200 jobs over the next year.” - • Value-add opportunity with upside potential Atlanta Business Chronicle, Dec. 7-13, 2018, page 8C. This investment is expected to add over 10,000 skilled labor jobs to Macon's economic base. • Excellent visibility and 476' of frontage on Gray Hwy - total cumulative frontage of 930' “A big driver is the upcoming completion of an Amazon fulfillment center … that is • Recent capital improvements in place expected to produce at least 500 jobs … with as many as 1,000 workers … during holiday season.” - Atlanta Business Chronicle, Dec. 7-13, 2018, page 2C. PRICE | $1,600,000 Shopping Center in Macon Opportunity Zone | 9% Cap Rate | Page 3 of 19 PROPERTY INFORMATION SHOPPING CENTER IN MACON OPPORTUNITY ZONE | 9% CAP RATE Property Address: 1040 Gray Highway, Macon, GA 31211 County: Bibb Center Name: Town & Country Shopping Center Building Size: 27,500 SF Units: 5 Occupancy: 78% Zoning: C-4 Parcel ID: R0640251 Opportunity Zone: Yes Site Size: 5.0 Acres Year Built / Renovated: 1960 / 2016 Number Of Stories: 1 Parking Spaces: 250 Surface spaces Parking Ratio: 5.2/1,000 SF Frontage: 476' on Gray Highway Access Points: 6 Proforma Cap Rate: 9% NOI: $144,000 Asking Price: $1,600,000 Expense Structure: Modified Gross Shopping Center in Macon Opportunity Zone | 9% Cap Rate | Page 4 of 19 AERIAL SHOPPING CENTER IN MACON OPPORTUNITY ZONE | 9% CAP RATE Shopping Center in Macon Opportunity Zone | 9% Cap Rate | Page 5 of 19 DEMOGRAPHICS & TRAFFIC COUNT SHOPPING CENTER IN MACON OPPORTUNITY ZONE | 9% CAP RATE 3 MILES Total Population 32,149 Total Households 12,676 Average HH Income $40,022 5 MILES Total Population 76,746 Total Households 28,850 Average HH Income $42,161 10 MILES Total Population 169,452 Total Households 62,818 Average HH Income $52,222 * Demographic data derived from 2010 US Census Shopping Center in Macon Opportunity Zone | 9% Cap Rate | Page 6 of 19 IN THE AREA SHOPPING CENTER IN MACON OPPORTUNITY ZONE | 9% CAP RATE Shopping Center in Macon Opportunity Zone | 9% Cap Rate | Page 7 of 19 LOCATION MAPS SHOPPING CENTER IN MACON OPPORTUNITY ZONE | 9% CAP RATE Shopping Center in Macon Opportunity Zone | 9% Cap Rate | Page 8 of 19 IN THE AREA SHOPPING CENTER IN MACON OPPORTUNITY ZONE | 9% CAP RATE Shopping Center in Macon Opportunity Zone | 9% Cap Rate | Page 9 of 19 IN THE AREA SHOPPING CENTER IN MACON OPPORTUNITY ZONE | 9% CAP RATE MERCER UNIVERSITY NORTH MACON PLAZA 1 4 Mercer University is a private, faith-based institution in the A new 166,465 SF mixed-use shopping center is South with three campuses in Atlanta, Macon and Savannah currently in development and scheduled to be opened Georiga. With over 8,600 students actively enrolled in over in late 2019. The anticipated tenants include 12 schools, the University offers its students a rich Christian Homegoods, Michaels, Beall’s Outlet, Old Navy, Five experience. The University offers programs ranging from Below, Famous Footwear and Lifeway Christian associates to doctorate and specializes in academic Resources. The shopping center will be located off I-75 research. The school has been an active partner in and Bass Road. rebuilding Macon and is located less than 5 miles from the property ROBINS AIR FORCE BASE HAY HOUSE 2 5 The Robins Air Force Base in neighboring Hidden within Macon’s boundaries is a beautiful Warner-Robins is one of the state’s largest employers 18,000 SF, Italian Renaissance Revival mansion named and most influential demand drivers. The base has the Hay House. The property was built in the been standing since WW2 and serves as a major air mid-1800s amidst the civil war and has withstood the force command with over 23,000 personnel. The base test of time. The magnificent mansion attracts has announced it will be adding 1,200 new jobs by the thousands of visitors annually to marvel at the end of 2019 including a new drone division. extravagant finishes and architecture. THE SHOPPES AT RIVER CROSSING CHERRY BLOSSOM FESTIVAL 3 6 The Shoppes at River Crossing is a 750,000 square foot The Cherry Blossom Festival allows all to enjoy the open-air shopping, dining and entertainment destination beauty of more than 300,000 Yoshino cherry trees in located at the intersection of I-75 and Riverside Drive in full bloom - the most in the world. Annually thousands Macon. The open-air center is anchored by two department of tourist come to "Eat, Drink, Be Cherry" and "Think stores; five mid-size anchor stores; numerous sit-down Pink" while joining in the celebration with events, restaurants and more than 40 specialty retailers. Shopping, concerts, exhibits, outdoor fair, arts and crafts, food dining or just people-watching is easy to do at The Shoppes and more at River Crossing. Shopping Center in Macon Opportunity Zone | 9% Cap Rate | Page 10 of 19 ABOUT THE AREA SHOPPING CENTER IN MACON OPPORTUNITY ZONE | 9% CAP RATE MACON, GA With over 155k residents, Macon is the 4th-largest city in Georgia and is part of the Macon-Warner Robins CSA. Nicknamed “The Heart of Georgia,” Macon is home to numerous historical sites and museums and boasts strong education, healthcare, agriculture and defense industries. Macon is a center of commerce and culture in central Georgia, and recent job growth and home price increase demonstrate the steady and constant growth of the market. Per "Sperling's Best Places," jobs are estimated to increase 35% over the next ten years. With Mercer University, Middle Georgia State University and Wesleyan College all located within city limits, Macon is a hub of education in Central Georgia. Mercer, along with Georgia Tech, University of Georgia and Emory University, is one of the only schools in the state to earn a spot on U.S. News & World Report’s list for top National Universities. Healthcare is another strong suit of Macon. Navicent Medical Center is a Top 10 hospital in the state of Georgia according to U.S. News & World Report and has over 600 licensed beds. Coliseum Medical Center, across the Ocmulgee River from Downtown Macon, also offers over 300 beds. There are plenty of enjoyable attractions to do in and around Macon. The Museum of Aviation at Robins Air Force Base is the largest tourist attraction in the state outside of Atlanta. The International Cherry Blossom Festival lasts 10 days each March and brings visitors from around the country to Macon to enjoy the 300,000 blossoms. Source: MaconGA.org, MaconChamber.com Shopping Center in Macon Opportunity Zone | 9% Cap Rate | Page 11 of 19 ABOUT THE AREA SHOPPING CENTER IN MACON OPPORTUNITY ZONE | 9% CAP RATE Amazon Fulfillment Central Georgia Technical College Robins Air Force Base Central Georgia Technical College provides a skilled work force, e.g. airplane mechanics and maintenance, business and computer technologies, health sciences, food processing sciences, warehouse and distribution skills, e.g. forklift operator certifications. Examples of Macon's Growing and Thriving Economy: 1) “A big driver is the upcoming completion of an Amazon fulfillment center … that is expected to produce at least 500 jobs … with as many as 1,000 workers … during holiday season.” Atlanta Business Chronicle, Dec. 7-13, 2018, page 2C. 2) Robins Air Force Base announced its new hiring initiative that will add 1,200 civilian jobs for depot maintenance, engineering support, software development for weapons systems, global space intelligence and reconnaissance will be completed by the end of 2019. This hiring initiative is projected to have an annual economic impact of over $ 345 million over the next five years. 2) Irving Consumer Products is nearing completion of their $ 400 million, 800,000 SF state of the art household tissue plant – Irving’s first plant in the south. Macon was chosen from among 64 other communities in the South. 3) Graphic Packaging International, LLC recently announced a $ 140 million investment in their mill. They have operated in Macon since 1947. 4) Nichiha announced that it will be make a $ 120 million expansion that doubles the size of its facility – Macon is the company’s first U.S.