OFFERING MEMORANDUM
GROUND LEASE NNN ROYAL FARMS Elkridge (Jessup), MD
Under Construction Representative Photo or Actual Site
Jonathan W Hipp, President & CEO 703.787.4725 | [email protected] Royal Farm | Financial Summary
Asking Price Cap Rate Rent Schedule $4,285,714 4.90% Term Increases Annual Rent Monthly Rent Years 1-5 - $210,000.00 $17,500.00 7136 Montevideo Rd Years 6-10 10% $231,000.00 $19,250.00 Elkridge, MD 21075 Years 11-15 10% $254,100.00 $21,175.00 Asset Summary Years 16-20 10% $279,510.00 $23,292.50 Years 21-25 (Option 1) 10% $307,461.00 $25,621.75 Net Operating Income (NOI) $210,000 Years 26-30 (Option 2) 10% $338,207.10 $28,183.93 Rent/Month $17,500 Years 31-35 (Option 3) 10% $372,027.81 $31,002.32 Years 36-40 (Option 4) 10% $409,230.59 $34,102.55 Rent/SF $71.43
Rentable Square Feet 2,940+/- SF Investment Highlights •• Brand new construction Land Area 1.75+/- Acres •• 1,057 new apartment units being developed across the street at Ryan Tenant Royal Farms Homes at Howard Square •• Long 20-year lease term with four, 5-year options to renew Website royalfarms.com •• 10% increases every 5 years including options Guarantor Corporate •• Signalized hard corner intersection •• Frontage along busy US Route 1 (30,000 VPD), adjacent to a new CVS Ownership Type Ground Lease/Fee Simple •• 8 miles from Columbia, MD Lease Type NNN •• Rapidly growing affluent population (183,347 people within 5 mile radius)
Landlord Responsibilities None
Store Opening July 1, 2019
Lease Term Remaining 20 Years
Rent Commencement July 1, 2019
Lease Expiration July 1, 2039
Increases 10% Every 5 Years Including Options
Options Four (4), Five (5) Year
Calkain Companies | 2 Tenant Overview
About Royal Farms Royal Farms opened its first store in 1959 in Baltimore, which remains the company’s headquarters. As of November 2018, Royal Farms has 205 locations throughout the Mid-Atlantic states. More than 100 are in the home state of Maryland. The chain sells many typical, convenience store items such as coffee, candy, soft drinks, bagels and donuts, lotto tickets, and other basic groceries. All locations also offer a kitchen serving hot food items such as chicken, Western Fries, along with sandwiches. Their current slogan is “Real Fresh. Real Fast. Real Green.” Royal Farms’ major competitors include Wawa, Sheetz, Rutter’s, High’s, and 7-Eleven. Since 1959, they’ve been satisfying the Mid-Atlantic area’s hunger for real fresh food served real fast! Royal Farms is your go-to place day or night for breakfast, lunch, snacks, dinner, gasoline and diesel fuel, and all the things you need!
Tenant Tenant # of Locations Founded # of Employees Region Headquarters Snapshot Snapshot 205 1959 1,000 Mid-Atlantic Baltimore, MD
Calkain Companies | 3 Location Overview
Distance To Subject Site Baltimore, MD
Baltimore, MD 895 14 miles Columbia, MD 270 Columbia, MD 8 miles Gaithersburg, MD Jessup, MD
95 97 Gaithersburg, MD 32 miles 95 Jessup, MD 2 miles Bethesda, MD Dulles, VA Bethesda, MD 25 miles Washington, DC
Washington, DC 28 miles
Alexandria, VA
Calkain Companies | 4 7136 Montevideo Rd | Elkridge, MD 21075
Dobbin Center Columbia Crossing Troy Hill Gateway Outlook Business Park
30,000 VPD Snowden Square 95
Washington Blvd 197,000 VPD 1
Columbia East Marketplace Subject Site
Arundel Mills Keep all map content (except background) above this margin for website cropping purposes 7136 Montevideo Rd | Elkridge, MD 21075
Chateau Communities Dorset Gardens at Village Towns Blue Stream 1 Luxury Garage
Port Capital Dr Townhomes Alarm Line Mr Model Home Tire HQ Interiors 30,000 VPD
Washington Blvd 1057 Apartment Units
Elite Spice
Montevideo Rd Subject Site 1 Maryland State Police
Subject Site Columbia East Marketplace
Keep all map content (except background) above this Soccer Dome margin for website Howard County cropping Department of purposes Corrections
Location Signalized Corner 30,000 VPD Brand New Highlights Location Pass the Site Construction Site Plan
Washington Blvd 30,000 VPD
Calkain Companies | 7 Surrounding Retail
Calkain Companies | 8 Site Rendering
Calkain Companies | 9 Location Overview, 1/3/5 Miles
1 Mile 3 Miles 5 Miles Population 2018 Population 9,449 62,493 183,347 95 2023 Population 11,271 69,326 198,798 2018 Median Age 32.7 36.2 36.2 Households 2018 Total Households 3,087 21,449 65,052 2023 Total Households 3,663 23,832 70,415 Median Household Income 2018 Median HH Income $107,222 $105,448 $104,117 2023 Median HH Income $120,627 $114,524 $113,061 Elkridge Average Household Income 2018 Average HH Income $129,492 $123,103 $123,471 2023 Average HH Income $153,825 $141,777 $141,739
Jessup, MD Jessup is an unincorporated town and census-designated place in 1 Mile Howard County, Maryland and Anne Arundel County, Maryland. 95 Jessup Jessup’s population is 8,392 people. Since 2000, it has had a population growth of 6.70%.
3 Mile Jessup is a town of sales and office workers, managers and professionals. There are especially a lot of people living in Jessup who work in sales jobs (20.91%), business and financial occupations (12.80%) and office and administrative support (10.65%). 5 Mile Also of interest is that Jessup has more people living here who work in computers and math than 95% of the places in the US. Jessup contains many warehouse delivery facilities. Due to its geographically central location in the state, Jessup is also home to the Maryland Food Center, which includes the Maryland Produce Market and the Maryland Seafood Market. The major highways that run through Jessup are Interstate 95, U.S. Route 1 and Maryland Route 175. Exit 41 off I-95 provides access via MD 175 east.
Calkain Companies | 10 About Us Calkain Companies LLC is a boutique commercial real estate investment banking firm that provides consulting and brokerage services to both private and institutional clientele with a focus on single tenant net lease investments. We pride ourselves on being an innovative leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, debt and equity placement and wealth management. Calkain has built solid, lasting relationships that have been the cornerstone of how we do business. Calkain approaches each assignment with an eye toward each client’s individual needs. Whether private or institutional investors, Calkain delivers real estate solutions that maximize value while building wealth for all of our clients. At Calkain, our foresight and innovation are leading the net lease investment industry.
To learn more about how to build a solid foundation for your investment portfolio, visit calkain.com or call us at:
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Disclaimer: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.