Gateway Village Clemson, SC CONFIDENTIAL OFFERING MEMORANDUM TABLE of CONTENTS EXCLUSIVELY LISTED BY
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Gateway Village Clemson, SC CONFIDENTIAL OFFERING MEMORANDUM TABLE OF CONTENTS EXCLUSIVELY LISTED BY Investment Overview Jimmy Wright 03 Executive Summary Shareholder/Broker [email protected] 864 678 5927 Property Overview 04 Regional Map 05 Local Maps 07 Site Map Kaki Mac Lain Broker [email protected] Financial Overview 864 678 5937 08 Cash Flow Analysis Tenant Overview 09 Sampling of Tenant Summaries Market Overview 11 Market Analysis 13 Demographics Furman Capital Advisors, LLC 101 E. Washington Street, Suite 400 Greenville, SC 29601 | 864.235.6855 FurmanCapital.com INVESTMENT OVERVIEW Executive Summary PROPERTY SUMMARY FINANCIAL SUMMARY 1390 Tiger Blvd Address NOI $1,230,358 Clemson, SC 29631 Cap Rate 6.35% Total GLA ±77,543 SF List Price $19,375,000 Total Land Size ±11.6 Acres Price per SF $249.86 Parcel Number 4054-14-32-6759 Year Built 2013 Traffic Counts (US Hwy 123) Occupancy 100% Anchor Publix Access Two traffic lights Visibility Visible from Hwy 123 INVESTMENT STRENGTHS • Publix anchored shopping center • Location: At the intersection of the two most frequently traveled roads of Clemson • Proximity: 1.5 Miles from the heart of Clemson University with nearly 24,000 students • Nationally recognized tenants 3. Gateway Village | Clemson, SC PROPERTY OVERVIEW Regional Map Asheville 88 Miles From Site Charlotte 130 Miles SITE Spartanburg From Site Greenville 61 Miles From Site 1390 Tiger Blvd 28 Miles Clemson, SC 29631 From Site Columbia 129 Miles Atlanta From Site 124 Miles From Site 4. Gateway Village | Clemson, SC PROPERTY OVERVIEW Local Map Tiger Blvd 21,400 VPD SITE College Ave 12,100 VPD Old Greenville Hwy Hwy 28 S 18,800 VPD Old Greenville Hwy SCDOT Traffic Counts 5. Gateway Village | Clemson, SC PROPERTY OVERVIEW Property Aerial Westminster Vision Allure Nails Tiger Blvd Old Greenville Hwy Greenville Old OUTPARCEL ±0.94 acres (Not included in sale. Can be negotiated.) 6. Gateway Village | Clemson, SC PROPERTY OVERVIEW Property Site Map 7. Gateway Village | Clemson, SC FINANCIAL OVERVIEW Cash Flow Analysis CASH FLOW ANALYSIS PROJECT LEASE SUMMARY Analysis Start Date 1/23/2019 Tenant End Date Sq. Ft. Rate/SF Annual Options Project Name Gateway Village Publix 12/31/2033 54,340 $ 13.60 $ 739,024 (8) 5 Year Location 1390 Tiger Blvd, Clemson, SC McAlister's 10/31/2023 3,800 $ 23.10 $ 87,780 (2) 5 Year Size (Square Feet) 77,543 TCBY 10/31/2023 1,700 $ 26.40 $ 44,880 (2) 5 Year Property Type Retail; Shopping Center IHOP 8/31/2023 4,500 $ 23.10 $ 103,950 (3) 5 Year ASSUMPTIONS Red Bowl 10/31/2023 4,200 $ 23.10 $ 97,020 (2) 5 Year Renewals All Tenants Renew Allure Nails 2/29/2020 1,800 $ 19.00 $ 34,200 (1) 5 Year Rent Increases Scheduled rent bumps highlighted in RED Westmister Vision 7/31/2023 1,156 $ 22.00 $ 25,432 (1) 5 Year Option Bumps Highlighted in BLUE GNC 11/30/2023 1,235 $ 20.00 $ 24,700 (2) 5 Year Operating Expenses 2% Annual Increases (Exc. Reserves & Mgmt) Orangetheory 4/30/29* 3,612 $ 33.76 $ 121,941 (2) 5 Year Landlord Responsibilities Roof and Structure Supercuts 2/28/25** 1,200 $ 20.00 $ 24,000 (2) 5 Year TOTAL PROPERTY 77,543 $ 16.80 $ 1,302,927 TENANT NOTES *The Orangetheory end date is estimated. The lease was recently signed and the space is curently in buildout. **The Supercuts end date is estimated. The lease was recently signed and the space is currently in buildout. OPERATING INCOME INCOME SIZE (SF) YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Publix 54,340 $ 739,024 $ 739,024 $ 739,024 $ 739,024 $ 739,024 $ 739,024 $ 739,024 $ 739,024 $ 739,024 $ 739,024 $ 739,024 McAlister's 3,800 $ 87,780 $ 87,780 $ 87,780 $ 87,780 $ 89,243 $ 96,558 $ 96,558 $ 96,558 $ 96,558 $ 98,167 $ 106,214 TCBY 1,700 $ 44,880 $ 44,880 $ 44,880 $ 44,880 $ 45,628 $ 49,368 $ 49,368 $ 49,368 $ 49,368 $ 50,191 $ 54,305 IHOP 4,500 $ 103,950 $ 103,950 $ 103,950 $ 103,950 $ 107,415 $ 114,345 $ 114,345 $ 114,345 $ 114,345 $ 118,157 $ 125,775 Red Bowl 4,200 $ 97,020 $ 97,020 $ 97,020 $ 97,020 $ 98,637 $ 106,722 $ 106,722 $ 106,722 $ 106,722 $ 106,722 $ 117,394 Allure Nails 1,800 $ 34,200 $ 38,475 $ 39,330 $ 39,330 $ 39,330 $ 39,330 $ 42,608 $ 43,263 $ 43,263 $ 43,263 $ 43,263 Westmister Vision 1,156 $ 27,744 $ 27,744 $ 27,744 $ 27,744 $ 28,900 $ 30,518 $ 30,518 $ 30,518 $ 30,518 $ 33,570 $ 33,570 GNC 1,235 $ 27,126 $ 27,126 $ 27,126 $ 27,126 $ 27,332 $ 29,592 $ 29,592 $ 29,592 $ 29,592 $ 29,613 $ 29,839 Orangetheory 3,612 $ 121,973 $ 124,412 $ 126,900 $ 129,438 $ 132,027 $ 134,667 $ 137,361 $ 140,108 $ 142,910 $ 145,768 $ 148,684 Supercuts 1,200 $ 24,000 $ 24,000 $ 24,000 $ 24,000 $ 24,000 $ 24,000 $ 24,000 $ 26,400 $ 26,400 $ 26,400 $ 26,400 Annual Reimbursements $ 3.82 $ 296,214 $ 302,139 $ 308,181 $ 314,345 $ 320,632 $ 327,044 $ 333,585 $ 340,257 $ 347,062 $ 354,003 $ 361,084 Scheduled Gross Income $ 1,603,911 $ 1,616,549 $ 1,625,936 $ 1,634,637 $ 1,652,167 $ 1,691,169 $ 1,703,681 $ 1,716,156 $ 1,725,763 $ 1,744,878 $ 1,785,551 VACANCY FACTOR Vacancy Rate (on non credit tenants) 1.00% $ 16,039 $ 16,165 $ 16,259 $ 16,346 $ 16,522 $ 16,912 $ 17,037 $ 17,162 $ 17,258 $ 17,449 $ 17,856 Current Vacancy 0.00% Effective Gross Income $ 1,587,872 $ 1,600,384 $ 1,609,676 $ 1,618,291 $ 1,635,646 $ 1,674,258 $ 1,686,644 $ 1,698,994 $ 1,708,505 $ 1,727,429 $ 1,767,695 OPERATING EXPENSES EXPENSE $/SF YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Taxes $ 1.87 $ 145,005 $ 147,906 $ 150,864 $ 153,881 $ 156,959 $ 160,098 $ 163,300 $ 166,566 $ 169,897 $ 173,295 $ 176,761 Insurance $ 0.24 $ 18,610 $ 18,983 $ 19,362 $ 19,749 $ 20,144 $ 20,547 $ 20,958 $ 21,377 $ 21,805 $ 22,241 $ 22,686 CAM $ 1.73 $ 134,149 $ 136,832 $ 139,569 $ 142,360 $ 145,208 $ 148,112 $ 151,074 $ 154,095 $ 157,177 $ 160,321 $ 163,527 Management Fee 3% $ 48,117 $ 48,496 $ 48,778 $ 49,039 $ 49,565 $ 50,735 $ 51,110 $ 51,485 $ 51,773 $ 52,346 $ 53,567 Reserve Allowance $ 0.15 $ 11,631 $ 11,631 $ 11,631 $ 11,631 $ 11,631 $ 11,631 $ 11,631 $ 11,631 $ 11,631 $ 11,631 $ 11,631 Total Operating Expenses $ 357,514 $ 363,848 $ 370,204 $ 376,661 $ 383,507 $ 391,123 $ 398,074 $ 405,155 $ 412,284 $ 419,835 $ 428,172 Net Operating Income $ 1,230,358 $ 1,236,536 $ 1, 239,472 $ 1,241,629 $ 1,252,139 $ 1,283,134 $ 1,288,571 $ 1,293,839 $ 1,296,222 $ 1,307,595 $ 1,339,523 ASKING PRICE 6.35% $ 19,375,713 $ 249.87 price/SF CAP RATE MATRIX * CONTRACTThere is PRICEan option to assume the6.48% existing$ loan 19,000,000 in place.$ Please 245.03 contactprice/SF listing agents for more information.Asking Strike High Equity 30% $ 5,700,000 CAP RATE 6.35% 6.45% 6.55% 6.65% 6.75% 6.85% Loan Amount 70% $ 13,300,000 Value $ 19,375,713 $ 19,075,314 $ 18,784,088 $ 18,501,620 $ 18,227,522 $ 17,961,427 8. Gateway Village | Clemson, SC 10 YEAR CASH FLOW ANALYSIS CASH FLOW YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 AVERAGE 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Net Operating Income $ 1,230,358 $ 1,236,536 $ 1,239,472 $ 1,241,629 $ 1,252,139 $ 1,283,134 $ 1,288,571 $ 1,293,839 $ 1,296,222 $ 1,307,595 RATE OF Annual Debt Service $ (890,235) $ (890,235) $ (890,235) $ (890,235) $ (890,235) $ (821,354) $ (821,354) $ (821,354) $ (821,354) $ (821,354) RETURN Annual Cash Flow $ 340,123 $ 346,301 $ 349,237 $ 351,395 $ 361,904 $ 461,781 $ 467,217 $ 472,486 $ 474,868 $ 486,241 $ 4,111,551 Annual Cash on Cash Return 5.97% 6.08% 6.13% 6.16% 6.35% 8.10% 8.20% 8.29% 8.33% 8.53% 7.21% EQUITY BUILD-UP Annual Equity Build-up $ 184,487 $ 194,583 $ 205,232 $ 216,464 $ 228,310 $ 170,212 $ 179,527 $ 189,352 $ 199,715 $ 210,645 $ 1,978,526 EOY Principal Balance $ (13,115,513) $ (12,920,930) $ (12,715,698) $ (12,499,235) $ (12,270,925) $ (12,100,713) $ (11,921,186) $ (11,731,833) $ (11,532,118) $ (11,321,474) Annual Equity Return on Equity Build-up 3.24% 3.41% 3.60% 3.80% 4.01% 2.99% 3.15% 3.32% 3.50% 3.70% 3.47% TOAL ANNUAL RETURN Total Annual Return 9.20% 9.49% 9.73% 9.96% 10.35% 11.09% 11.35% 11.61% 11.83% 12.23% 10.68% LOAN TERMS Rate Change 5.34% 5.34% Amortization (Years) 30 30 Amortization (Months) 360 360 Disclaimer: TENANT OVERVIEW Tenant Summary Publix Super Markets, Inc., commonly known as Publix, is an employee-owned, American supermarket chain headquartered in Lakeland, Florida.