Offering Memorandum Main Street Station 5751 North Main Street Jacksonville, Florida 32208 CONFIDENTIAL INFORMATION INFORMATION NOT WARRANTED
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OFFERING MEMORANDUM Main Street Station 5751 North Main Street Jacksonville, Florida 32208 CONFIDENTIAL INFORMATION INFORMATION NOT WARRANTED This Offering Memorandum and any subsequent manner detrimental to the interest of Owner. Photocopy evaluation material you may be provided (collectively or other duplication is strictly prohibited. known as the “Offering Memorandum”) is intended solely for your limited use in considering whether THE OFFERING MEMORANDUM SHALL NOT BE to pursue negotiations to acquire The Main Street DEEMED TO REPRESENT THAT STATE OF AFFAIRS Station Shopping Center (the “Property”) located in OF THE PROPERTY OR CONSTITUTE AN INDICATION Jacksonville, Florida. The Property is being marketed for THAT THERE HAS BEEN NO CHANGE IN THE BUSINESS sale by Ackerman & Co. (“Broker”). OR AFFAIRS OF THE PROPERTY SINCE THE DATE OF PREPARATION OF THE OFFERING MEMORANDUM. The Offering Memorandum contains brief, selected information pertaining to the business and affairs of the The information provided in the Offering Memorandum Property and has been prepared by Broker. It does not, has been gathered from sources that are deemed however, purport to be all-inclusive or to contain all of reliable, but the Broker does not warrant or represent the information that a prospective purchaser may desire. that the information is true or correct. Prospective Broker makes no representation or warranty, express offerors are advised to verify information independently. or implied, as to the accuracy or completeness of the The Offering Memorandum is not to be construed as an Offering Memorandum or any of its contents, and no offer or as any part of a contract to sell the property. legal liability is assumed to be implied with respect thereto. Furthermore, the inclusion or exclusion in the Offering Memorandum of information relating to asbestos or By acknowledgment of your receipt of the Offering any other hazardous, toxic or dangerous chemical item, Memorandum you agree that the Offering waste or substance (hereinafter collectively referred to Memorandum and its contents are confidential, that as “Waste”) relating to the Property shall in no way be you will hold and treat it in the strictest of confidence, construed as creating any warranties or representations, that you will not directly or indirectly disclose, or permit expressed or implied by the Broker as to the existence anyone else to disclose, the Offering Memorandum or nonexistence or nature of Waste in, under or on the or its contents to any other person, firm, or entity Property, it may create significant legal and/or economic (including, without limitation, any principal for whom obligations upon the Owner, lessee and/or other holders you have been engaged), without prior written of interest in the Property or a part thereof and you are authorization of Owner or Broker and that you will not hereby advised to obtain professional assistance such use or permit to be used the Offering Memorandum as from a consultant, engineer and/or attorney prior to or its contents to be copied or used in any fashion or taking an interest in the Property or a part thereof. MAIN STREET station SHOPPING CENTER Table Of Contents 01 EXECUTIVE SUMMARY Investment Summary Location and Demographics Property Photographs and Aerials Property Overview Area Map 02 TENANT OVERVIEW Tenant Overview Site Plan Rent Roll 03 MARKET OVERVIEW Jacksonville, Florida Competitive Property Map Detailed Demographics 04 FINANCIAL OVERVIEW Summary of Financial Assumptions Cash Flow Projections Existing Lease Expiration In-place Income Reconciliation CONTACTS SEAN W. PATRICK JASON POWELL, CCIM BILL MITCHELL Vice President, Investment Sales Vice President, Investment Sales Director Ackerman & Co. Ackerman & Co. iCAP Realty Advisors 770.913.3946 770.913.3952 404.946.6919 [email protected] [email protected] [email protected] 01 EXECUTIVE SUMMARY I nvestment Summary Location and Demographics Property Photographs and Aerials Property Overview A rea Map Main Street Station Shopping Center 01 Executive Summary MAIN STREET STATION SHOPPING CENTER 5 INVESTMENT SUMMARY Ackerman & Co.’s retail investment sales team is pleased to present for sale, Main Street Station Shopping Center, a 79,486-square-foot, grocery-anchored retail center located in Jacksonville, Florida. Built in 1989, Main Street Station was originally constructed for Food Lion. Over the years, the center has provided a stable tenant base with high occupancy and high historical tenant retention. Significant capital has been invested into the center with a major Food Lion extension/renovation in 2002 and a Family Dollar renovation/extension in 2010. In the beginning of 2012, Delhaize America decided to close 113 Food Lion stores in the Southeast to pull back their presence in markets with the least store density. Beginning November 1, 2012, Save-A-Lot has been assigned the Food Lion lease and will open for business. They are occupying roughly 18,000 square feet and will sublease the balance of the space. With a Food Lion (Delhaize) guarantee running through May of 2021, Main Street Station provides limited exposure to tenant rollover. INVESTMENT SUMMARY Pursuant to the rent roll, over 81.54% of the gross leasable area is backed by credit worthy national retailers. The rent roll at Main Street Station Location: 5751 N. Main Street currently includes Save-A-Lot/Food Lion (Delhaize NYSE: DEG), Family Jacksonville, Florida Dollar (NYSE: FDO), Rainbow Apparel (Private), H&R Block (NYSE: HRB), Occupancy: 98.50% Pizza Hut (NYSE: YUM), Ace Cash Express, Inc. (Private) and VyStar Credit Size: 79,486 SF / 11.53 acres Union (Private). Year Built: 1989 Investment Highlights: Anchors: Save-A-Lot (expiring 2021) Family Dollar (expiring 2020) Stabilized grocery anchored shopping center with 98.50% occupancy Low exposure to capital expenses with anchor (Save-A-Lot/Food Lion) & In-place NOI: $493,272 junior anchor (Family Dollar) set to expire in 2021 and 2020, respectively In-place Cap Rate: 10.0% Historically successful track record with high tenant retention Strong tenant base with outstanding credit-over 81% of the GLA Offering Price: $4,932,720 ($62.06/SF) represented by credit worthy national companies Offered well below replacement costs at $62.06/SF 01 Executive Summary MAIN STREET STATION SHOPPING CENTER 6 LOCATION AND DEMOGRAPHICS Main Street Station is located in the heart of 23 Jacksonville’s “Urban Core” in-between I-95 and Ta t ll St. John’s the St. John’s River. Main Street Station offers ample u S l Moncrief Rd ah River n ve A i parking, good visibility off Main Street and several Norwood A ve a M MAIN STREET STATION Edgewood A N 5751 N. MAIN STREET points of ingress/egress. Traffic counts in 2010 at theM o t JACKSONVILLE, FLORIDA 32208 111 n ve S c l ri r intersection of Main Street & 44th Street averaged e a f R e E 44th St d P approximately 23,500 vehicles per day. N r W D i non a 17 DEMOGRAPHIC SUMMARY 23 US 1 Alt 1 MILE 3 MILES 5 MILESW 10th St Downtown Kin Population Estimate 2010 9,732 70,715 182,961 gs H Jacksonville Rd Shands Jacksonville Population Projection 2015 9,787 70,980 184,706 Medical Center Average Household Income Estimate (2010) $38,730111 $39,790 $47,732 t S Median Age 39.1 34.8 35.8 90 ain M N TRAFFIC COUNTS ARE 23,500 VEHICLES PER DAY. 1 Source: 2010 MPSI Systems Inc. d.b.a. DataMetrix® 211 e v A side River 01 Executive Summary MAIN STREET STATION SHOPPING CENTER 7 PROPERTY PHOTOS NOTE: SAVE-A-LOT WILL OPEN FOR BUSINESS NOVEMBER 1, 2012. 5751 N. MAIN STREET JACKSONVILLE, FLORIDA 32208 01 Executive Summary MAIN STREET STATION SHOPPING CENTER 8 PROPERTY AERIAL 50th Street E. TRAFFIC COUNTS AT THIS INTERSECTION ARE 23,500 VEHICLES PER DAY. N. Main Street 01 Executive Summary MAIN STREET STATION SHOPPING CENTER 9 PROPERTY OVERVIEW 5751 N Main Street Address: Jacksonville, Florida 32208 County: Duval Municipality: City of Jacksonville Building Size: 79,486 square feet Land Area 11.53 acres Parcel ID: 031371-000 Year Built: 1989, renovations in 2002 and 2012 Construction: Masonry Parking: 337 spaces (4.24 per 1,000) There are three points of ingress/egress via Access: Main Street and E 45th Street Signage: Large tenant monument sign located off Main Street Major Food Lion renovation and expansion in 2002, Capital Expenditures: Family Dollar renovations in 2010, and Rainbow NOTE: renovations in 2011 SAVE-A-LOT WILL OPEN FOR BUSINESS NOVEMBER 1, 2012. 01 Executive Summary MAIN STREET STATION SHOPPING CENTER 10 AREA MAP Escambia Holmes Jackson MAIN STREET STATION Santa Rosa Okaloosa Walton Washington Nassau 5751 N. MAIN STREET Gadsden Hamilton JACKSONVILLE, FLORIDA 32208 Leon Jefferson Madison Calhoun Bay Duval Baker Liberty Wakulla Suwanee Columbia Taylor Union St. Johns Gulf LaFayette Clay Franklin Bradford Gilchrist Alachua Putnam Dixie Flagler Levy Marlon Volusia Citrus Lake Number of People Sumter Seminole 1,300,000 - 2,496,435 Hernando Orange 600,000 - 1,299,999 Pasco Osceola 350,000 - 599,999 Pinellas Hillsborough Polk Brevard 100,000 - 349,999 Indian 8,365 - 99,999 River Manatee Okee Hardee chobee Sarasota Total State Population 18,801,319 Highlands St. Lucie De Soto Martin Glades Charlotte Palm Beach Lee Hendry Broward Collier Monroe Dade 02 TENANT OVERVIEW T enant Overview R ent Roll Site Plan Main Street Station Shopping Center 02 Tenant Overview MAIN STREET STATION SHOPPING CENTER 12 TENANT SUMMARY SAVE-A-LOT (MORAN FOODS, INC.) SUB-TENANT Moran Foods, Inc. was founded in 1977 by William Moran. Save-A-Lot, a wholly owned subsidiary of SUPERVALU, is the extreme-value grocery store chain operating more than 1185 stores in about 40 states under the Save-A-Lot SUITE banner. Moran Foods, Inc. licenses the Save-A-Lot banner.