Offering Memorandum RACETRAC
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Offering775 NE ALSBURYMemorandum BLVD | BURLESON, TX RACETRAC 775 NE ALSBURY BLVD BURLESON, TX 76028 REPRESENTATIVE PROPERTY EXCLUSIVELY LISTED BY : 1 STEVEN J. SIEGEL | SENIOR MANAGING DIRECTOR Executive Director - Institutional Property Advisors (IPA) Senior Managing Director - Investments Office: (212) 430-5166 National Retail Group Cell: (646) 996-3709 E-mail: [email protected] ThisNet information Leased Properties has been securedGroup 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 informationLicense: and NYbears: 30SI0857139 all risk for any NJ:inaccuracies. 0015107 Any CT: projections,REB.0754170 opinions, assumptions or estimates used herein are for example purposes only and do not represent RACETRAC the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap 1 STEVEN J. SIEGEL Associate DirectorSJS & Partners LLC Office: (212) 430-5293 Cell: (914) 525-7735 E-mail: [email protected] License: NY: 10401253283 775 NE ALSBURY BLVD | BURLESON, TX 775 NE ALSBURY BLVD | BURLESON, TX Investment Contacts STEVEN J. SIEGEL PHIL BIANCAVILLA Executive Director Associate DirectorSJS & Partners LLC Institutional Property Advisors (IPA) Senior Managing Director - Investments Office: (212) 430-5293 Cell: (914) 525-7735 Office: (212) 430-5166 E-mail: [email protected] Cell: (646) 996-3709 License: NY: 10401253283 E-mail: [email protected] License: NY: 30SI0857139 NJ: 0015107 NICHOLAS GILLOTT CT: REB.0754170 Senior Financial Analyst Office: (646) 805-1455 E-mail: [email protected] M&M CAPITAL CORP CHRISTOPHER MARKS First Vice President - Capital Markets, Origination Office: (212) 430-5137 Cell: (516) 448-3293 E-mail: [email protected] 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 RACETRAC 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 2 the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap 775 NE ALSBURY BLVD | BURLESON, TX Table of Contents 5 Investment Overview 6 Offering Summary 7 Property Details 8 Tenant & Lease Overview 9-13 Maps 14-16 Demographic & Location Overview 3 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 RACETRAC the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap 3 775 NE ALSBURY BLVD | BURLESON, TX 775 NE ALSBURY BLVD | BURLESON, TX REPRESENTATIVE PROPERTY 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 RACETRAC 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 4 the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap 775 NE ALSBURY BLVD | BURLESON, TX Investment Highlights NNN RaceTrac located at 775 NE Alsbury Boulevard, Major retailers and points of interest surrounding RaceTrac Burleson TX at the intersection of NE Alsbury Boulevard include Huguley Hospital, Kohl's, Michaels, T.J. Maxx, (20,310 VPD) and Commercial Boulevard. Petsmart, Best Buy, AMC, Waffle House, TGI Fridays, Burger King, McDonald's, Hampton Inn & Suites, La Quinta Inn & Subject property has a GLA of 3,990 SF and is situated on a Suites and Many Others. 1.94-Acre Lot. RaceTrac is in an affluent and dense location with over 68,200 10 years remaining in the base term of a NNN lease with 7.50% people living within a 3-Mile radius with an Average increases every 5 years. Household Income of over $88,300 RaceTrac ranked #39 on the list of America’s Largest Private Companies by Forbes with $8.7 billion in sales. RaceTrac is conveniently located directly behind Burleson Town Center, a JC Penny & Alberton's anchored retail center with frontage along South Freeway, a major retail road running parallel with I-35W 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 RACETRAC the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap 5 775 NE ALSBURY BLVD | BURLESON, TX 775 NE ALSBURY BLVD | BURLESON, TX Offering Summary PRICE $4,284,000 Cap Rate* 5.60% Price Per SF $1,074 Gross Leasable Area 3,990 SF NOI** $239,940 Expiration June 18, 2030 Lease Years Remaining 10 Lot Size 1.94 Acres Lease Type NNN Rent Schedule PERIOD COMMENCEMENT DATE EXPIRATION DATE ANNUAL RENT MONTHLY RENT RPSF PERCENTAGE INCREASE Years 1-5 6/19/2015 6/18/2020 $223,200 $18,600 $56 7.50% Years 6-10 6/19/2020 6/18/2025 $239,940 $19,995 $60 7.50% Years 11-15 6/19/2025 6/18/2030 $257,936 $21,495 $65 7.50% option 1 6/19/2030 6/18/2035 $277,281 $23,107 $69 7.50% option 2 6/19/2035 6/18/2040 $298,077 $24,840 $75 7.50% option 3 6/19/2040 6/18/2045 $320,433 $26,703 $80 7.50% option 4 6/19/2045 6/18/2050 $344,465 $28,705 $86 7.50% option 5 6/19/2050 6/18/2055 $370,300 $30,858 $93 7.50% option 6 6/19/2055 6/18/2060 $398,073 $33,173 $100 7.50% option 7 6/19/2060 6/18/2065 $427,928 $35,661 $107 7.50% **Seller will credit buyer the difference in the current rent and the increased rent in 6/19/2020 times the number of months from closing until the increase. *Based on 6/19/2020 Annual Rent of $239,940 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 RACETRAC 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 6 the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap 775 NE ALSBURY BLVD | BURLESON, TX Property Details Street Address 775 NE Alsbury Blvd, City State Zip Burleson, TX 76028 Building SF 3,990 Lot Size 1.94 AC Tax ID 33321-1-1 Zoning N/A SUBJECT PROPERTY 7 SUBJECT PROPERTY 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 RACETRAC the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap 7 775 NE ALSBURY BLVD | BURLESON, TX 775 NE ALSBURY BLVD | BURLESON, TX Tenant & Lease Overview Tenant Overview - RACETRAC RACETRAC Lease Abstract Tenant RaceTrac Tenant Name RaceTrac Petroleum, Inc. Industry Gas/Convenience Original Lease Term 15 Years Public/Private Private Remaining Term 10 Years Revenue $9.1B Lease Expiration June 19, 2030 Number of Stores 670 Lease Type Triple Net (NNN) Headquarters Atlanta, GA Ownership Interest Fee Simple Website www.racetrac.com Rent Escalations 7.5% Every 5 Years year founded 1934 Annual Rent $239,940 Rent per GLA $56.67 Expenses None Tenant RaceTrac RaceTrac operates a chain of convenience stores and gasoline service stations across the Southern United States. RaceTrac Petroleum Inc. operates over 670 convenience stores and gaso-line stations under the RaceTrac and RaceWay banners. RaceTrac stores are company owned and operated while RaceWay stores are leased to a third party contractor. RaceTrac Petroleum is ranked #39 on the list of America’s 100 Largest Private Companies by Forbes with $8.7 Billion in sales for the fiscal year of 2017 and 8,716 employees. Convenience Store News rates RaceTrac Petroleum as #18 and Raceway as #33 on their list of the Top 202 Convenience Stores of 2018.