Walmart Neighborhood Market
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walmart neighborhood market ACTUAL STORE guaranteed by AA rated walmart possible 3.5% long-term debt For more info on this opportunity please contact: 20 year lease high growth metro area of 250,000+ RICK SANNER BOB SANNER [email protected] | (415) 274-2709 [email protected] | (415) 274-2717 opened january 28th CA BRE# 01792433 CA BRE# 00869657 SEC of Belair Rd & Plantation Rd, Augusta, GA 30907 In conjuction with GA Licensed Broker: Steve Miller of Miller Realty Services, Inc. smiller@millerrealtyservices | (770) 409-0266 Capital Pacific collaborates. Click here to meet the rest of our San Francisco team. ACTUAL STORE NEWLY OPENED WALMART NEIGHBORHOOD MARKET, Investment Highlights LOCATED IN AUGUSTA, GA - A CITY OF MORE THAN 250,000 RESIDENTS 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 RENTABLE SF . 41,117 SF LEASE TYPE . Modified NNN CAP: 5.00% 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): 5.60 STABILIZED INCOME 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 marACTUKEALT | S TO3 RE Site WALMART NEIGHBORHOOD MARKET Walmart Neighborhood Market 160,000 SF PROPERTY WITH FUEL CENTER AND DRIVE-THRU PHARMACY walmarT NEIGHBORHOOD marKET | 4 Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY Monthly Rent/ Yearly Rent/ Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent FT FT Walmart Neighborhood Market 41,117 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 Current Totals: 41,117 $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. S Belair Rd Westmont Elementary SITE LOCATION 383 20 Wheeler Rd 402 Brookwood Elementary 402 20 Carl Sanders Hwy Sue Reynolds Elementary 383 Wrightsboro Rd walmarT NEIGHBORHOOD marKET | 7 Key Lease Information 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. ACTUAL STORE walmarT NEIGHBORHOOD marKET | 8 Walmart Neighborhood Market ACTUAL STORE ACTUAL STORE ABOUT walmarT NEIGHBORHOOD marKET Walmart Neighborhood Market is a chain of grocery stores launched NUMBER OF LOCATIONS 11,000+ walmarT STORES, INC. by Walmart in 1998. With over 359 Neighborhood Markets in the United States, they feature a wide variety of products, including fresh FISCAL YEAR 2014 SALES IS ranKED #1 IN THE produce, deli foods, fresh meat and dairy items, health and beauty $476 BILLION FORTUNE 500 AND IS easily aids, one-hour photo and traditional photo developing services, S&P RATING THE largesT GROcery drive-thru pharmacies, stationery and paper goods, pet supplies, AA RETAILER IN THE U.S. and household chemicals. Walmart Neighborhood Markets were designed to create easier parking, less crowded aisles, and quicker checkouts than at Walmart Supercenters. 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 OVerall retailing 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 Walmart, with 2013 sales of $476 billion, is easily the $244 billion. Comparatively, the largest grocery chain, Kroger, in largest retail chain in the world. The second largest U.S. 2012 had sales of $98 billion. chain is Costco, with sales of $110 billion, less than one quarter of the Walmart sales. Costco’s sales are actually walmart IS Walmart’s grocery sales were initiated, starting from zero, a few less than one half of Walmart’s grocery sales. simply THE top decades ago when it began adding grocery departments to its new stores, thus adding to square footage and calling these larger CREDIT NAME IN grocery, IN OVerall units “superstores.” Walmart has the highest S&P credit rating of any retailing, CREDIT retailer: AA. Credit ratings of other strong retailers such In 1998, Walmart began building stand-alone grocery stores called as Lowe’s, Costco, Walgreens, and CVS are significantly rating, AND SIZE Walmart Neighborhood Market. Survey after survey has shown lower. Walmart also has a higher rating than any U.S. Walmart to be the leader in low priced groceries. For example, bank. from Supermarket News, July 16, 2014, “Walmart’s [groceries] were the least expensive and had the lowest-priced items during SIZE mystery shops conducted recently at a Los Angeles Walmart, Walmart is #1 in the Fortune 500 - the largest company Vons, Ralphs, and Target.” in America ACTUAL STORE 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.” “[But at Walmart now] the convenience of quick shopping has become front ACTUAL STORE 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 walmarT NEIGHBORHOOD marKET | 11 ACTUAL STORE Location & Demos AUGUSTA, GA OVERVIEW Forecasted growth of 10% from 2013-2018 Augusta is Georgia’s third-largest city. In addition to the low cost of living and affordable POPULATION housing, Augusta offers its residents a beautiful historic city with a diverse culture, 3-Mile 5-Mile 10-Mile active arts community, and mild climate. 2010 47,290 109,953 287,049 Augusta is the principal city of the Augusta – Richmond County Metropolitan Statistical 2013 50,014 114,979 299,278 Area, which, as of 2012, had an estimated population of 580,270, making it the second- largest metro area in the state. Augusta is known world-wide for hosting the Masters 2018 55,419 125,760 321,544 Tournament in golf each spring. 2013 HOUSEHOLD INCOMES In recent years, Augusta has become a center of medicine, biotechnology, and military. 3-Mile 5-Mile 10-Mile The Medical College of Georgia, the state’s only health science university, employs Average $63,414 $68,438 $62,250 over 7,000 people and is ranked as one of the top medical schools in the country. Median $50,742 $51,683 $45,209 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.