Spirit Valley Mall
Total Page:16
File Type:pdf, Size:1020Kb
For Sale in conjunctionSpirit with Valley Marcus and Millichap: Mall Westport Shopping Center, Baxter, MN215 N Central Ave, Duluth, MN ➢ 89% Occupied Shopping Center ➢ Westgate Mall Shadow-Anchored | Tenants Include Herberger’s, Big Lots, Dunham Sports, Payless and JOANN ➢ Mostly NNN Leases | 83 Percent of the GLA has NNN Leases ➢ Upside in Converting Gross Leases to NNN and to Market Rents Email for further info: [email protected] ➢ Key Tenants include Pizza Hut, Keller Williams, and Anytime Fitness Executive Summary | 4 SPIRIT VALLEY MALL ADDRESS: 215 N Central Avenue, Duluth, Minnesota 55807 Pricing Price: $3,038,000 PRICE CAP RATE NOI Cap Rate: 8.65% $3,038,000 8.65% $262,651 Gross Leasable Area: 70,850 Price Per Square Foot: $42.88 Lot Size: 6.19 +/- Acres Investment Highlights SQ FOOTAGE LEASE TYPES ACREAGE ➢ Multi-Tenant Retail Mall | 98% Occupied 70,850 NNN & Gross 6.19 Acres ➢ Strong Tenant Mix | National, Regional & Local Tenants Demographics ➢ High Upside Potential | Converting Leases from Gross to Triple Net 1-Mile 3-Mile 5-Mile ➢ Additional Upside in Converting Month-to-Month Population 6,535 26,475 59,440 Leases to Long-Term Leases Average HH $49,239 $58,810 $55,627 Income ➢ Immediate Access to Interstate 35 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Services, Inc. © 2015 Marcus & Millichap ACT ID Z0260290 Operating Statement | 5 SPIRIT VALLEY MALL SUMMARY PROPOSED NEW FINANCING PROJECTED EXPENSES Price: $3,038,000 First Loan Amount: $2,126,600 Common Area Maintenance Down Payment: $911,400 Terms: 5.20% Interest Electricity (1) $47,296 Current CAP: 8.65% 25 Year Amortization (2) Gas $5,890 Cash on Cash: 10.57% 5 Year Term Water/Sewer (2) $30,615 Square Feet 70,850 Monthly Payment: $12,680.95 Janitorial/Trash Removal $32,878 Cost per Square Feet: $42.88 Annual Payment: $152,171.38 Parking Lot Sweeping/Maint. $4,344 Debt Coverage Ratio: 1.73 Telephone $919 Year Built: 1975 Snow Removal $16,912 Lot Size: 6.19 Acres CURRENT OPERATING DATA EXPENSES Supplies $3,173 Current Annualized Data Taxes: $1.43 $101,076 Repair/Maintenance $50,680 Scheduled Gross Income: $569,576 Insurance: $0.30 $21,243 Total CAM $192,707 Tax Reimbursement: $19,948 Common Area Maintenance: (4) $2.72 $192,707 Real Estate Taxes $101,076 Insurance Reimbursement: $5,152 Management Fee: 4.00% $24,070 Insurance $21,243 CAM Reimbursement: $38,033 TOTAL EXPENSES: $339,076 TOTAL Expenses: $315,026 Admin. Reimbursement: $709 Per Rentable Square Foot $4.79 UNDERWRITING ASSUMPTIONS Total Income: $633,418 (1) Access Music pays 46% of Electric Bill Vacancy Factor: $31,671 5.00% (2) Landlord pays China King’s gas, heat, water & Gross Operating Income: $601,747 sewage Less Expenses: $339,096 (3) Cost Cutterz pays percentage rent of 5% over $150,000 in sales and reimburses for mgmt Net Operating Income: $262,651 8.65% (4) CAM expenses based on 2-year average of 16/17 expenses Capital Reserves: $14,170 ($.20) Loan Payments: $152,171 Pre Tax Cash Flow: $96,310 10.57% Plus Principal Reduction: $42,594 Total Return Before Taxes: $138,904 15.24% This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Services, Inc. © 2015 Marcus & Millichap ACT ID Z0260290 Rent Roll | 6 SPIRIT VALLEY MALL % of Lease Lease Monthly Annual Annual Increase New Annual Lease Option Suite Tenant Sq. Ft. Total Start End Rent Rent PSF Date Rent Reimb. Type Terms H China King Buffet 5,000 7.06% 12/1/2010 12/31/2021 $4,500.00 $54,000.00 $10.80 Gross A-1(A) Discount Duluth 13,800 19.48% 1/1/2018 12/1/2018 $4,000.00 $48,000.00 $3.48 Gross (1) 1-yr A-1(B) Vineyard Chapel 3,428 4.84% 1/1/2014 MTM $800.00 $9,600.00 $2.80 Gross A-1 Greystar Electronics 3,956 5.58% 9/1/2001 MTM $3,138.00 $37,656.00 $9.52 Gross A-2 Dollar Tree 11,208 15.82% 7/1/2009 1/31/2020 $7,005.00 $84,060.00 $7.50 $49,835 NNN (1) 5-yr *Tenant has Co-Tenancy with Kmart United States Postal A-3 1,728 2.44% 4/1/2005 3/31/2020 $1,422.72 $17,072.64 $9.88 $7,683 NNN Service A-4 Lake Superior PT 2,034 2.87% 11/1/2010 MTM $2,034.00 $24,408.00 $12.00 Gross (2) 2yr A-6 Anytime Fitness 5,840 8.24% 10/1/2012 9/30/2025 $5,350.00 $64,200.00 $10.99 10/1/2020 $11.50 Gross (2) 5-yr Modified A-10 MKG International 3,200 4.52% 7/1/2013 MTM $2,400.00 $28,800.00 $9.00 $959 Gross B-1 From Topknots to Tails 1,200 1.69% 11/1/2012 MTM $1,275.00 $15,300.00 $12.75 Gross B-3 Cost Cutters (3) 1,047 1.48% 5/1/1984 MTM $1,512.93 $18,155.16 $17.34 $5,365 NNN Serenity Tax & B-4 2,923 4.13% 7/1/2018 6/30/2023 $1,600.00 $19,200.00 $6.57 7/1/2019 $7.80 Gross (1) 5-yr Bookkeeping 7/1/2020 $9.03 7/1/2021 $10.26 B-5/6 Soul Sisters 2,483 3.50% 6/1/2010 2/28/2021 $2,000.00 $24,000.00 $9.67 3/1/2019 $10.15 Gross 3/1/2020 $10.51 B-7 WeStyle Fashion 640 0.90% 9/1/2015 4/30/2019 $650.00 $7,800.00 $12.19 Gross B-8 Access Music Therapy 1,120 1.58% 2/1/2018 1/31/2021 $1,075.00 $12,900.00 $11.52 Gross Solutions Ins (TJB B-9 8,000 11.29% 3/1/2015 2/28/2020 $7,315.00 $87,780.00 $10.97 3/1/2019 $11.14 Gross (2) 5-yr Agencies) Option I 3/1/2020 1.5% Annual Option II 3/1/2025 1.5% Annual Vineyard Meeting B-10 1,920 2.71% 5/1/2010 MTM $450.00 $5,400.00 $2.81 Gross Rooms B-11 Vacant 837 1.18% $837.00 $10,044.00 $12.00 B-12 Vineyard Office 486 0.69% MTM $100.00 $1,200.00 $2.47 Gross Current Totals 70,850 100% $47,465 $569,576 $8.04 $63,133 Occupied 70,013 98.82% $46,628 $569,576 $7.99 Vacant 837 1.18% $837 $10,004 $12.00 Tenant Profiles | 7 SPIRIT VALLEY MALL Greystar Electronics was founded in 1993 in Duluth, Minnesota Dollar Tree, Inc. is an American chain of discount variety stores and is a manufacturer of cable assemblies and wire harnesses that sells items for $1 or less. Headquartered in Chesapeake, for the aviation industry, both for commercial use and for Virginia, it is a member company of Fortune 500 and operates defense. They are known for their collaborative process and 13,600 stores throughout the 48 contiguous U.S. states and hands on attitude with the end goal of building long lasting, Canada. Its stores are supported by a nationwide logistics mutually beneficial relationships with government agencies and network of eleven distribution centers. The company operates commercial customers. one-dollar stores under the names of Dollar Tree and Dollar Bills. The company also operates multi-price-point variety chains under the names Deals and Family Dollar. Dollar Tree competes in the dollar store and low-end retail markets. Headquarters: Duluth, Minnesota Headquarters: Chesapeake, Virginia No. of Locations: 1 No. of Locations: 13,600 Symbol: Private Symbol: NASDAQ: “DTR” Website: www.greystarelectronics.com Website: www.dollartree.com Square Footage: 3,956 Square Footage: 11,208 Lease Start: September 1, 2001 Lease Start: September 1, 2009 Lease Expiration: MTM Lease Expiration: January 31, 2020 K-Mart expected to vacate by 9/30/18. In such event, if 12 month average gross sales volume decreases for the period after Co-Tenant Vacates, then Tenant can pay 3% of gross sales, and Tenant shall have the right to terminate upon 30 days’ notice. Tenant Profiles | 8 SPIRIT VALLEY MALL The United States Postal Services (USPS) is an independent Anytime Fitness is a 24-hour health and fitness club agency of the United States federal government responsible for headquartered in Woodbury, Minnesota. Anytime Fitness, providing postal service in the United States and is one of the according to Forbes, is the world’s “Fastest-Growing Fitness Club” few government agencies explicitly authorized by the United and “Largest Co-Ed Fitness Franchise” with an average of more States Constitution.