OFFERING MEMORANDUM Steubenville, OH 43952 Confidentiality and Disclaimer
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• LOCATED 6 MILES FROM WALMART’S REGIONAL DISTRIBUTION CENTER Click Here to • VERY LOW RENT | $3.82/FT Play • NEWLY REMODELED FAÇADE | 2019 RENOVATION & PARKING LOT • CENTRALLY LOCATED, MAIN GROCERY STORE FOR STEUBENVILLE • SUPERCENTER SIGNIFICANT REDEVELOPMENTS IN ADJACENT MALL Aerial Video • ACTIVE INSTITUTIONAL MALL OWNERSHIP Subject Property 100 Mall Drive OFFERING MEMORANDUM Steubenville, OH 43952 Confidentiality and Disclaimer Marcus & Millichap hereby advises all prospective purchasers of properties, including newly-constructed facilities or newly- income or expenses for the subject property, the future projected Net Leased property as follows: acquired locations, may be set based on a tenant’s projected financial performance of the property, the size and square sales with little or no record of actual performance, or footage of the property and improvements, the presence or The information contained in this Marketing Brochure has been comparable rents for the area. Returns are not guaranteed; the absence of contaminating substances, PCB’s or asbestos, the obtained from sources we believe to be reliable. However, tenant and any guarantors may fail to pay the lease rent or compliance with State and Federal regulations, the physical Marcus & Millichap has not and will not verify any of this property taxes, or may fail to comply with other material terms of condition of the improvements thereon, or the financial information, nor has Marcus & Millichap conducted any the lease; cash flow may be interrupted in part or in whole due to condition or business prospects of any tenant, or any tenant’s investigation regarding these matters. Marcus & Millichap makes market, economic, environmental or other conditions. Regardless plans or intentions to continue its occupancy of the subject no guarantee, warranty or representation whatsoever about the of tenant history and lease guarantees, Buyer is responsible for property. The information contained in this Marketing Brochure accuracy or completeness of any information provided. conducting his/her own investigation of all matters affecting the has been obtained from sources we believe to be reliable; intrinsic value of the property and the value of any long-term however, Marcus & Millichap has not verified, and will not verify, As the Buyer of a net leased property, it is the Buyer’s lease, including the likelihood of locating a replacement tenant if any of the information contained herein, nor has Marcus & responsibility to independently confirm the accuracy and the current tenant should default or abandon the property, and Millichap conducted any investigation regarding these matters completeness of all material information before completing any the lease terms that Buyer may be able to negotiate with a and makes no warranty or representation whatsoever regarding purchase. This Marketing Brochure is not a substitute for your potential replacement tenant considering the location of the the accuracy or completeness of the information provided. All thorough due diligence investigation of this investment property, and Buyer’s legal ability to make alternate use of the potential buyers must take appropriate measures to verify all of opportunity. Marcus & Millichap expressly denies any obligation property. the information set forth herein. to conduct a due diligence examination of this Property for Buyer. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it NON-ENDORSEMENT NOTICE Any projections, opinions, assumptions or estimates used in this harmless from any kind of claim, cost, expense, or liability arising Marketing Brochure are for example only and do not represent out of your investigation and/or purchase of this net leased Marcus & Millichap Real Estate Investment Services, Inc. the current or future performance of this property. The value of a property. (“M&M”) is not affiliated with, sponsored by, or endorsed by any net leased property to you depends on factors that should be commercial tenant or lessee identified in this marketing package. evaluated by you and your tax, financial and legal advisors. CONFIDENTIALITY AND DISCLAIMER The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or Buyer and Buyer’s tax, financial, legal, and construction advisors The information contained in the following Marketing Brochure is endorsement by, said corporation of M&M, its affiliates or should conduct a careful, independent investigation of any net proprietary and strictly confidential. It is intended to be reviewed subsidiaries, or any agent, product, service, or commercial listing leased property to determine to your satisfaction with the only by the party receiving it from Marcus & Millichap and should of M&M, and is solely included for the purpose of providing suitability of the property for your needs. not be made available to any other person or entity without the tenant lessee information about this listing to prospective written consent of Marcus & Millichap. This Marketing Brochure customers. Like all real estate investments, this investment carries significant has been prepared to provide summary, unverified information risks. Buyer and Buyer’s legal and financial advisors must request to prospective purchasers, and to establish only a preliminary ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE and carefully review all legal and financial documents related to level of interest in the subject property. The information CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE the property and tenant. While the tenant’s past performance at contained herein is not a substitute for a thorough due diligence DETAILS. this or other locations is an important consideration, it is not a investigation. Marcus & Millichap has not made any investigation, guarantee of future success. Similarly, the lease rate for some and makes no warranty or representation, with respect to the 100 Mall Drive, Steubenville, OH 43952 Table of Contents Investment Highlights 4 Financial Overview 5 Tenant Overview 6 Location Overview 7 Mall Map & Information 8 Property Photos 9 Surrounding Area 10 Regional Map 11 Demographics 12 Market Overview 13 SUPERCENTER Investment Highlights PRICE: $12,903,225 | CAP: 6.20% | RENT: $800,000 About the Investment ✓ 25-Year Absolute Triple-Net (NNN) Ground Lease | Zero Landlord Responsibilities | 7.5 Years of Term Remaining Subject Property ✓ With ~8 Years of Term Remaining, Walmart Completely Renovated the Façade in 2019 ✓ Corporate Guaranty | Walmart Stores, Inc ✓ Four (4), Ten (10)-Year Tenant Renewal Option Periods ✓ Very Low Rent Per Square Foot of $3.82 ✓ Large Lot | 16.21 Acres About the Location ✓ Located 2 Miles From $40 Million, 880,000 SF Walmart Distribution Center | Increasing Efficiency and Operating Costs on an Already Very Low RPSF Making this a Well- Stocked, Long-Term Location for the Tenant ✓ Irreplaceable Location Within Significant Trade Area | Over 60 Stores, Services, and Restaurants | Powerful Lineup of Anchor Tenants | Institutionally Owned ✓ Steubenville’s Main Grocery Provider, Centrally Located Within the Market ✓ Major National Tenants In The Surrounding Area Include: Lowe’s Home Improvement, Aldi, Harbor Freight Tools, AMC Theatres, JC Penney, Dick’s Sporting Goods, Aspen Dental, Texas Roadhouse, Applebee’s, Dollar Tree, Ollie’s Bargain Outlet, DaVita, McDonalds, Chase Bank, T.J. Maxx, Kroger, and numerous others Subject Property ✓ Strong Traffic Counts | Highway-22 and Lovers Lane| Average Daily Traffic Counts of 20,662 and 40,364 Vehicles Respectively ✓ Walmart Target Market | Accessible From Multiple Highways and Three Different States | 24,670 & 92,998 People Within 3 & 10-mile Radii ✓ Proximity to Major Economic Drivers & Cities | 35 Minutes From Pittsburgh, PA | Part of Fort Steuben Mall, Undergoing Major Improvements and Redevelopment | Minutes From Major Trinity Health Hospitals and Medical Campuses | Less than 4-Miles From Franciscan University of Steubenville ✓ Economic Improvement Measures | Increased Infrastructure into Pittsburgh, PA | Development of Downtown Marina | Development of Entertainment Center at Fort Steuben Mall | $75 Million Expansion to Trinity Hospital About the Tenant / Brand ✓ World’s Largest Company by Revenue | $514.4 Billion ✓ Investment Grade Tenant | S&P: AA | Moody’s: Aa2 ✓ Most Profitable Retailer Listed on The New York Stock Exchange (NYSE: WMT) ✓ Serves 275 Million Customers Daily Walmart – Steubenville, OH 4 Financial Overview PRICE: $12,903,225 | CAP: 6.20% | RENT: $800,000 PROPERTY DESCRIPTION RENT SCHEDULE Property Walmart Rent Escalation Lease Year(s) Annual Rent Monthly Rent Property Address 100 Mall Drive (%) City, State, ZIP Steubenville, OH 43952 8/14/2002-8/13/2027 $800,000.00 $66,667 - Year Built / Renovated 2002 Option 1 $840,000.00 $70,000 5.00% Building Size 209,621 SF Option 2 $882,000.00 $73,500 5.00% Lot Size +/- 16.21 Acres Option 3 $926,100.00 $77,175 5.00% Type of Ownership Ground Lease Option 4 $972,405.00 $81,034 5.00% Maintenance & Repair Lessee is responsible for the full maintenance and THE OFFERING repair of the building, including roof & structure. Annual Rent $800,000 Insurance Lessee agrees to provide and keep in force GL CAP Rate 6.15% insurance naming the lessor as additional insured. Purchase Price $12,903,225 As long as lessee’s net worth shall exceed Price / SF $61.55 $100,000,000 it shall have the right to self insure Rent / SF $3.82 Utilities Lessee