051820 Tractor Supply
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OFFERING MEMORANDUM TRACTOR SUPPLY – HOHENWALD, TN 608 E Main Street • Hohenwald, TN 38462 Representative Photo NON- ENDORSEMENT AND DISCLAIMER NOTICE Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property 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. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved. Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. TRACTOR SUPPLY - HOHENWALD TN Hohenwald, TN ACT ID ZAA0560520 Jody McKibben Broker of Record Nashville Office License: TN 307629 2 TRACTOR SUPPLY - HOHENWALD TN TABLE OF CONTENTS SECTION FINANCIAL ANALYSIS 01 INVESTMENT OVERVIEW 02 MARKET OVERVIEW 03 33 TRACTOR SUPPLY - HOHENWALD TN FINANCIAL ANALYSIS 4 TRACTOR SUPPLY - HOHENWALD TN OFFERINGOFFERING SUMMARY SUMMARY Offering Asking Price $1,527,000 Cap Rate Terms5.50% Available Under Confidentiality – Contact Listing Net Operating Income Agents$84,000 Property Specifications Property Address 608 E Main Street, Hohenwald, TN 38462 Rentable Area 30,595 SF Land Area 2.89 Acres Representative Photo Year Built 1987 Guarantor Corporate Guarantee Lease Type NN Landlord Responsibilities Roof & Structure Increases 2% Increase Every Five Years throughout Base Term Original Lease Term 15 Years Term Remaining 15 Years Options Two 5-Year Options Rent Commencement 1/1/2009 Lease Expiration 10/31/2034 Representative Photo 5# TRACTORPROPERTYCVS PHARMACY SUPPLYNAME - HOHENWALD TN PRICINGPRICING ANDANDOFFERING VALUATIONVALUATION SUMMARY MATRIXMATRIX Lease Term Rental Rates TENANT NAME SQUARE FEET LEASE START LEASE END INCREASE MONTHLY ANNUALLY OPTIONS 2 (5-Year); 17% Inc. at Beg. of Tractor Supply 30,595 1/1/2009 10/31/2034 Terms$7,000 Available$84,000 Under 1st Opt. and 1% Inc. at Beg. Confidentiality – Contactof Listing 2nd Opt. Agents 11/1/2024 $7,140 $85,680 11/1/2029 $7,282 $87,384 NN Lease | Corporate Guarantee | Long-Term Central Location | Excellent Visibility & Lease | 2% Rental Increases Frontage | National Retailers in Surrounding • The Lease is guaranteed by Tractor Supply Market Company • Centrally located on East Main Street (Highway • New 15-year extension as of November 1, 2019 412) boasting over 10,500 vehicles per day • 2% increases every five years throughout base • 77 miles south west of Nashville term • Retailers in the area include Walmart, Dollar Tree, • Two 5-year options with 17% increase at Dollar General, Citizens Bank, AutoZone, O’Reilly beginning of first period; 1% increase at beginning Auto Parts, McDonald’s, Subway, Sonic, Hardee’s, of second period Pizza Hut, and others • Over $75,000 invested in capital improvements over the past 5 years 6 TRACTOR SUPPLY - HOHENWALD TN INVESTMENT OVERVIEW 7 PROPERTYCVSTRACTOR PHARMACY SUPPLYNAME - HOHENWALD TN PRICINGPRICING ANDAND TENANTVALUATIONVALUATIONTENANT SUMMARY SUMMARY MATRIXMATRIX Tractor Supply Company tractorsupplyco.com Tractor Supply Company (TSC) does a whole lot more than its name might suggest. Besides providing agricultural machine parts, TSC offers animal feed, fencing, power tools, riding mowers, work clothing, and pet supplies, as well as tools for gardening, irrigation, welding, and towing. TSC offers both name-brand merchandise and its own crop of private-label goods. The company has nationwide scope, operating more than 1,850 stores in some 49 US states under the Tractor Supply Company, Del's Farm Supply, and Petsense banners. Stores are concentrated in rural areas and near large cities to cater to full- and part-time farmers, ranchers, and contractors. TSC also sells online. COMPANY TYPE PARENT # OF LOCATIONS Subsidiary Tractor Supply Co. 1,940 2018 REVENUE 2018 ASSETS STOCK TICKER CREDIT RATING $7.91 B $3.06 B TSCO S&P: BBB 8# TRACTOR SUPPLY - HOHENWALD TN TENANT SUMMARY 9 TRACTORPROPERTYCITIZENS SUPPLYBANKNAME - HOHENWALD TN PRICINGPRICING ANDANDPROPERTYLOCATION VALUATIONVALUATIONTENANT OVERVIEW OVERVIEWSUMMARY MATRIXMATRIX Location Access Traffic Counts Located in East Main Street East Main Street Hohenwald, Less than 80 miles from (US Highway 412) Tennessee Nashville, Tennessee 10,500 Cars Per Day Parcel Year Built Zoning Acres: 2.89 1987 C-3 Corridor Commercial Square Feet: 125,900 District 10# PROPERTYTRACTOR SUPPLYNAME - HOHENWALD TN PRICINGPRICINGREGIONAL ANDANDLOCATION VALUATIONVALUATIONTENANT AND LOCALOVERVIEW SUMMARY MATRIXMATRIX MAP 608 E Main Street, Hohenwald, TN 38462 11# TRACTOR SUPPLY - HOHENWALD TN AERIAL PHOTO 12 TRACTOR SUPPLY - HOHENWALD TN MARKET OVERVIEW 13 TRACTOR SUPPLY - HOHENWALD TN MARKET OVERVIEW NASHVILLE OVERVIEW Known as the epicenter of country music, the Nashville metro contains a population of nearly 2 million within 14 counties: Davidson, Smith, Macon, Williamson, Cheatham, Sumner, Dickson, Robertson, Cannon, Rutherford, Hickman, Trousdale, Maury and Wilson. Davidson is the most populous county with 707,000 people and is home to Nashville, the capital city, which has 680,000 residents. The metro is located in the north-central portion of the state of Tennessee in what is known as the Central Basin. The Cumberland River, which snakes through the region, adds to the local economic base and enhances Nashville’s quality of life. The metro has a strong multimodal infrastructure network linking the metro to markets around the world. METRO HIGHLIGHTS MUSIC INDUSTRY CAPITAL The metro is well known as a central location for the country music industry, which provides many local jobs and supports a large hospitality sector. DIVERSIFYING ECONOMY Other major industries in the metro include healthcare, government, automotive manufacturing, publishing, insurance and finance. ROBUST POPULATION GROWTH The population will increase at a faster pace than the nation over the next five years. 14 TRACTOR SUPPLY - HOHENWALD TN MARKET OVERVIEW ECONOMY § The entertainment and country music capital houses a number of venues such as Ryman Auditorium, Grand Ole Opry, Country Music Television and Music Row. § Low tax burdens and incentives for businesses attract companies to the region and are assisting in diversifying the economy. § Fortune 500 companies headquartered in the region include: HCA Holdings, Dollar General, Community Health Systems, Envision Healthcare, LifePoint Health, Delek US Holdings and Tractor Supply Co. MAJOR AREA EMPLOYERS Vanderbilt University and Medical Center The Kroger Co. Community Health Systems Saint Thomas Health Nissan North America HCA Healthcare Asurion Electrolux Home Products Cracker Barrel Old Country Store, Inc. * Forecast Randstad SHARE OF 2018 TOTAL EMPLOYMENT 8% 17% 12% 11 % 7% MANUFACTURING PROFESSIONAL AND GOVERNMENT LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES BUSINESS SERVICES 19% 4% + 15% 2% 4% TRADE, TRANSPORTATION CONSTRUCTION EDUCATION AND INFORMATION OTHER SERVICES AND UTILITIES HEALTH SERVICES 15 TRACTOR SUPPLY - HOHENWALD TN MARKET OVERVIEW DEMOGRAPHICS § The metro is expected to Add neArly 132,000 people over the next five yeArs, resulting in the formAtion of ApproximAtely 59,000 households. SPORTS § A mediAn home price slightly below thAt of the nAtion hAs Allowed 65 percent of households to own their home, compared with 64 percent for the U.S. § Roughly 32 percent of residents Age 25 And older hold bAchelor’s degrees; of those residents, 11 percent Also hAve obtAined