OFFERING MEMORANDUM TRADE NET LEASE WITH CONFIDENCE
KEYBANK RETAIL; BANK | STAMFORD, CT
NEW YORK | CHICAGO | ATLANTA | TAMPA | DENVER | SAN FRANCISCO BENETLEASE.COM DISCLOSURE
All materials and information received or derived from B financial advisor to any party regarding any proposed Plus E LLC, its directors, officers, agents, advisors, affiliates, transaction. All data and assumptions regarding financial and/or any third-party sources are provided without performance, including that used for financial modeling representation or warranty as to completeness, veracity, purposes, may differ from actual data or performance. Any or accuracy; condition of the property; compliance or lack estimates of market rents and/or projected rents that may of compliance with applicable governmental requirements; be provided to a party do not necessarily mean that rents developability or suitability; financial performance of the can be established at or increased to that level. Parties must property; or projected financial performance of the property evaluate any applicable contractual and governmental for any party’s intended use or any and all other matters. limitations as well as market conditions, vacancy factors, and other issues in order to determine rents from or for the Neither B Plus E LLC, its directors, officers, agents, advisors, property. nor affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any Legal questions should be discussed by the party with an materials or information provided, derived, or received. attorney. Tax questions should be discussed by the party Materials and information from any source, whether with a certified public accountant or tax attorney. Title written or verbal, that may be furnished for review are questions should be discussed by the party with a title not a substitute for a party’s active conduct of its own officer or attorney. Questions regarding the condition of due diligence to determine these and other matters of the property and whether the property complies with significance to such party. B Plus E LLC will not investigate applicable governmental requirements should be discussed or verify any such matters or conduct due diligence for a by the party with appropriate engineers, architects, party unless otherwise agreed in writing. contractors, other consultants, and governmental agencies. All properties and services are marketed by B Plus E LLC EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT in compliance with all applicable fair housing and equal INVESTIGATION AND DUE DILIGENCE. opportunity laws.
Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third-party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. B Plus E LLC makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. B Plus E LLC does not serve as a ABOUT US
OUR STORY
B+E is a modern investment brokerage firm, specializing in net lease real estate and 1031 exchanges. We help clients buy and sell single tenant real estate. Founded by deeply experienced brokers, B+E redefines trading through an intuitive end-to-end transaction platform comprising of user-friendly dashboards and an AI-driven exchange — all leveraging the largest data set in the net lease industry.
Complementing senior talent with exceptional technology, B+E’s proprietary process affords greater speed, unrivaled transaction efficiencies, and stronger asset value. With offices in New York, Chicago, Tampa, Atlanta, Denver, and San Francisco, our brokers trade property for our clients across the US. B+E allows virtually anyone to confidently trade net lease real estate.
3 KEYBANK | STAMFORD, CT BENETLEASE.COM TABLE OF CONTENTS
EXECUTIVE SUMMARY...... 05
INVESTMENT HIGHLIGHTS...... 06
LEASE ANALYSIS ...... 07
PROPERTY SURVEY ...... 08
TENANT OVERVIEW...... 09
LOCATION OVERVIEW...... 10
SURROUNDING TENANT MAP...... 13
SURROUNDING DEVELOPMENTS MAP... 14
DEVELOPER OVERVIEW...... 15
SPENCER HENDERSON CAMILLE RENSHAW DEMOGRAPHICS ...... 16 Director CEO & Co-Founder 415.315.9287 646.701.4536 HOW B+E WORKS [email protected] [email protected] INNOVATIVE BUYER TOOLS ...... 18 SCOTT SCURICH President & Co-Founder 415.302.6498 [email protected]
4 KEYBANK | STAMFORD, CT BENETLEASE.COM EXECUTIVE SUMMARY
OFFERING PRICE $7,500,000 CAP RATE 5.00%
EXECUTIVE SUMMARY
TENANT NAME KeyBank
ADDRESS 721 Canal St., Stamford, CT 06902
CREDIT RATING A- (S&P)
OFFERING PRICE $7,500,000
OFFERING CAP 5.00%
IN-PLACE NOI $375,000
2022 NOI $400,000
LEASE TYPE NNN
RENT INCREASES 6.67% on 01/01/2022
REMAINING LEASE TERM +/- 5.75 Years
BUILDING SIZE +/- 3,224 SF
LAND AC +/- 0.18 AC
PARKING 16 Spaces
PROPERTY TYPE Retail | Bank
YEAR BUILT 2011
5 KEYBANK | STAMFORD, CT BENETLEASE.COM INVESTMENT HIGHLIGHTS
HIGHLIGHTS
INVESTMENT GRADE TENANT | 29TH LARGEST BANK IN THE U.S. This investment is secured by KeyBank, the 29th largest bank in the United States with +/- 1,197 branches and +/- $7.33 billion in 2020 revenue. KeyBank currently holds an investment grade rating of A- by the S&P. OUTFITTED WITH A DOUBLE DRIVE-THRU The COVID-19 pandemic has increased the value of investment assets with drive-thrus as they provide a contactless sales method. This asset features a double drive-thru, which positions the asset to handle a larger volume of customers and reduce wait times as the market switches to an increased number of contactless sales and services. PRIME HARBOR POINT LOCATION This asset is located in Harbor Point, which is an affluent redevelopment district located in the South End section of Stamford, Connecticut. Harbor Point is currently one of the largest redevelopment projects in the nation. Harbor Point includes more than 4,000 new apartments, with office space, restaurants, shops, marinas, a waterfront boardwalk, and several public parks. DENSE SURROUNDING MULTIFAMILY | BUILT-IN CUSTOMER BASE This asset is surrounded by several notable apartment complexes such as 121 Towne Apartments (+/- 329 units), Vault Apartments (+/- 252 units), The Key at Yale and Towne (+/- 107 units), 111 Harbor Point (+/- 228 units), Allure (+/- 435 units), Escape (+/- 435 units), and many more which act as a built-in customer base to this location. IMMENSE STAMFORD DEVELOPMENT | $6 BILLION IN ONGOING DEVELOPMENT This asset is in Stamford, Connecticut, which has seen an immense surge in economic development. Some current developments are ITV America HQ (130,000 SF Commercial), Charter Communications World HQ (900,000 SF Commercial), Opus (+/- 180 units), Harbor Point Block P6 (+/- 180 units),Atlantic Station Phase 2 (325 units and 12,100 SF retail), The Smyth (414 units and 18,333 SF retail), and Escape (435-unit luxury residential building). STRONG SURROUNDING DEMOGRAPHICS This bank location has strong surrounding demographics with a population of +/- 169,696 with a median household income of +/- $102,168 within a 5-mile radius of this site. EXCELLENT VISIBILITY | HARD CORNER LOCATION This asset is positioned on the hard corner of Henry and Canal Sts., which experiences +/- 11,800 VPD.
LOCATED IN OPPORTUNITY ZONE Investors have the unique opportunity to take advantage of the tax incentives associated with owning a property in an Opportunity Zone.
6 KEYBANK | STAMFORD, CT BENETLEASE.COM LEASE ANALYSIS
KEYBANK
IN-PLACE NOI $375,000
2022 NOI $400,000
LEASE COMMENCEMENT 07/01/2011
RENT COMMENCEMENT 01/01/2012
LEASE EXPIRATION 12/31/2026
ORIGINAL LEASE TERM 15 Years
REMAINING LEASE TERM +/- 5.75 Years
RENT INCREASES 6.67% on 01/01/2022
RENEWAL OPTIONS 10; 5-Year
LEASE TYPE NNN
LANDLORD RESPONSIBILITIES None*
*Controllable expenses above the 5% expense cap
MASTER UNIT Y10 PARKING LOT
NUMBER OF SPACES 16
LEASE COMMENCEMENT 04/05/2011
ORIGINAL LEASE TERM +/- 66 Years
LEASE EXPIRATION 04/05/2077
REMAINING LEASE TERM +/- 56 Years
LANDLORD RESPONSIBILITIES None*
* Landlord is responsible for proportionate share of OPEX, which is allocated to Tenant
7 KEYBANK | STAMFORD, CT BENETLEASE.COM PROPERTY SURVEY
8 KEYBANK | STAMFORD, CT BENETLEASE.COM TENANT OVERVIEW
KEYBANK is one of the largest bank-based financial services companies in the nation with current total assets of approximately $170.5B and growing. The company, which is headquartered in Cleveland, Ohio, is ranked in the Fortune 500 list with revenues totaling $7.33B in 2020. KeyBank provides a wide range of retail and commercial banking, commercial leasing, consumer finance, and special servicing among many other services through two major business segments: Consumer Bank and Commercial Bank. Those services are provided across the country through KeyBank’s 1,197 full service retail banking branches and a network of 1,572 ATMs across 15 states. The company also offers additional offices, online and mobile banking capabilities, as well as a telephone banking call center. Since its inception in 1894, KeyBank has been committed to helping clients and communities thrive through making meaningful investments in the places where their 15 40,000+ $170.5B $7.33B customers live and work. STATES ATMS ASSETS REVENUE KeyBank has been ranked as the 29th largest bank in the nation. KeyBank reported record fourth-quarter 2020 net income of $549M. Average deposits through KeyBank are reported up 21% from Q4 2019.
9 KEYBANK | STAMFORD, CT BENETLEASE.COM LOCATION OVERVIEW
STAMFORD, CONNECTICUT is the most populous city in Fairfield County and the third-largest city in Connecticut with a population of +/- 129,775 residents. Located approximately 38 miles from both Manhattan, NY and New Haven, CT, Stamford serves as an ideal location for residents who commute in and out of the cities. In addition, Stamford is home to eight Fortune 1000 companies, three of which are Fortune 500, and helps support some of Connecticut’s most prestigious businesses. Along with many regional branches, the headquarters of many nationally recognized companies such as Synchrony Financial, Vineyard Vines, and Charter Communications call Stamford home. Stamford boasts an impressive list of finance, insurance, management, real estate, digital media, health, and consumer goods companies. Stamford is also an economically growing city with its most notable development of Harbor Point, located in the south end, which is one of the largest private-sector STAMFORD, CT development projects in the nation. By fostering some of the top Image Source: John9474 - Own work, CC BY-SA 4.0 businesses in the country, Stamford has created an atmosphere of success and competition that drives the best to do even better.
TOP 10 EMPLOYERS
FORTUNE 1000 COMPANIES RANK COMPANY EMPLOYEES COMPANIES RANK 1 STAMFORD HEALTH 3,600
CHARTER COMMUNICATIONS 70 2 CITY OF STAMFORD & BOE 3,300 SYNCHRONY FINANCIAL 173 3 CHARTER COMMUNICATIONS 2,000 UNITED RENTALS 379 4 INDEED.COM 1,700 SILGAN HOLDINGS 581 5 GARTNER 1,650 GARTNER 631 6 STAMFORD TOWN CENTER 1,500 PITNEY BOWES 659 7 DELOITTE 1,150 CRANE CO. 706 8 NBC SPORTS GROUP & NBC UNIVERSAL 1,075 HEXCEL 932 9 PWC 900 Source: www.stamfordct.gov 10 UBS AG 800
10 KEYBANK | STAMFORD, CT BENETLEASE.COM LOCATION OVERVIEW | CONTINUED
STAMFORD BY THE NUMBERS TOP 5 FASTEST GROWING CITIES IN CT (2010-2019) Source: U.S. Census Bureau 6.50% 5.71% 37 MEDIAN AGE 5.50%
4.50% 129,775 POPULATION 4.14% 3.89% 3.67% 3.50%
$101,000 MEDIAN POPULATION GROWTH RATE (%) 2.87% HOUSEHOLD INCOME 2.50% Stamford Danbury Shelton Milford Norwalk AAA S&P AND FITCH BOND RATING STAMFORD IS $6 BILLION IN THE ‘CROWN DEVELOPMENT 4,900 APARTMENTS IN JEWEL’ OF CT STAMFORD, CT DEVELOPMENT CLICK TO VIEW ARTICLE CLICK TO VIEW ARTICLE
CURRENT DEVELOPMENTS
CHARTER COMMUNICATIONS ATLANTIC STATION PHASE 2 ITV AMERICA HEADQUARTERS THE SMYTH ESCAPE WORLD HQ 421 ATLANTIC STREET 860 CANAL STREET 885 WASHINGTON BLVD. HARBOR POINT
900,000 SF Commercial 325 Units & 12,100 SF Retail 130,000 SF Commercial 414 Units & 18,333 SF Retail 435 Units; 564,000 SF Under Construction Estimated Completion: 02/2021 Estimated Completion: 2021 Estimated Completion: 03/2021 Estimated Completion: 2021
11 KEYBANK | STAMFORD, CT BENETLEASE.COM LOCATION OVERVIEW | HARBOR POINT
HARBOR POINT is Building and Land Technology’s (BLT) premier master-planned development in Stamford. BLT has been at the forefront of redeveloping the South End of Stamford from an industrial neighborhood to a transit-oriented master-planned community spanning over 8 million square feet of Class A real estate. BLT’s creation of this premier live/work/ play environment has successfully attracted world class businesses and brands from a diverse array of industries to the area. Signature restaurants and retail destinations include CVS, Bareburger, Fortina, Mexicue, Design Within Reach, mActivity, Skinceuticals, and Rhone, all of which have attracted many new residents to move to the area. The high-quality office space has attracted several noteworthy office tenants such as Charter Communications, Castleton Commodities, Marriott, and Sema4. The area also features several marinas, a waterfront boardwalk, bike paths, bike share docks, more than 20 acres of public parks, and a water taxi system that connects Harbor Landing to Harbor Point.
More than 4,400 Apartment Units Planned Over 150,000 New Retail SF with 30 National Brands +/- 2.3 Million SF Office Space
12 KEYBANK | STAMFORD, CT BENETLEASE.COM SURROUNDING TENANT MAP
NA E TYPE WESTOVER AGNET ELE ENTARY SCHOOL TOTAL S DELIVERY DATE E IT O STORES APART ENTS O ICES SHOPPING CENTER ALL USINESS PAR CALLOUT 12 A UCONN STA ORD UNDER STA ORD HOSPITAL ROGERS INTERNATIONAL SCHOOL ENNETTDEVELOP ENT EDICAL CENTER VAULT APART ENTS NOTA LE TENANTS I APP. UNITS