MEMORANDUM 540 Islip Ave - Islip, New York 11751 Confidentiality and Disclaimer
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Applegreen G a s S tat i o n – Islip, New York ❖ Applegreen Recently Acquired By Blackstone ❖ Qualifies For 100% Bonus Depreciation In Year One of ❖ $3.6BN Revenue & Over 550 Locations Worldwide | 191 Property Ownership Locations In USA ❖ Rental Increases of 15% Every Five Years OFFERING MEMORANDUM 540 Islip Ave - Islip, New York 11751 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 SPECIAL COVID-19 NOTICE All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be 540 Islip Ave - Islip, New York 11751 comfortable with and rely solely on their own projections, analyses, and decision-making. Table of Contents • Investment Highlights 4 • Financial Analysis 5 • Bonus Depreciation 6 • Tenant Overview 7-11 • Surrounding Area 12 • Property Photos 13-14 • Location Overview 15 • Local Map 16 • Regional Map 17 • Demographics / Market Overview 18-19 Investment Highlights PRICE: $2,738,095 | CAP: 5.25% | RENT: $143,750 Subject Property About the Investment ✓ 20-Year Absolute Triple Net (NNN) Lease | 14.2 Years Remaining in Initial Term ✓ Attractive Rental Increases| 15.0% Every 5 Years ✓ Qualifies for 100% Bonus Depreciation in Year One of Ownership ✓ Corporate Guarantee By Petrogas Group US, Inc, 191 Locations in the United States ✓ Long Island Net Leased Asset | Average Income within a One-Mile Radius Exceeds $119,000 ✓ Two (2), Five (5)-Year Tenant Renewal Options About the Location ✓ Dense Urban Infill | The Home Depot, Target, Best Buy, Kohl’s, Aldi, Shop Rite, Marshalls, Stop & Shop, Staples, and Many Others ✓ Strong Demographics | 234,600 Individuals Within a Five-Mile Radius ✓ Compelling Location Fundamentals | Less Than an hour Drive From New York City ✓ Excellent Traffic Counts | Over 91,200 and 51,900 Vehicles Per Day Along Southern Highway (Rt-27) and Southern State Parkway Representative Photo ✓ New York Institute of Technology | Located Less Than a Half-Mile Away | Enrollment Over 8,300 Students Subject Property ✓ Located Minutes from the Westfield South Shore Mall | Over 1,165,000 sqft and Nearly 100 Stores About the Tenant / Brand ✓ Publicly Traded Company on the London Stock Exchange (APGN) ✓ Major Gas Retailor in the Republic of Ireland, the United Kingdom, and the U.S. ✓ Growing International Presence with 556 locations as of December 2019 ✓ Owned by Petrogas Global and Operated by Petrogas Group US, Inc ✓ Blackstone Group Recently Acquired 41.3% Stake on 22nd of December 2020 ✓ “Low Fuel Prices Always” and “Better Value Always” Representative Photo Applegreen – Islip, NY 4 Financial Analysis PRICE: $2,738,095 | CAP: 5.25% | RENT: $143,750 PROPERTY DESCRIPTION RENT SCHEDULE Property Applegreen Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%) Property Address 540 Islip Ave 4/1/2020 - 3/31/2021 $143,750 $11,979 - 4/1/2021 - 3/31/2022 $143,750 $11,979 - City, State, ZIP Islip, NY, 11751 4/1/2022 - 3/31/2023 $143,750 $11,979 - Building Size 1,700 4/1/2023 - 3/31/2024 $143,750 $11,979 - Lot Size +/- 0.43 Acres 4/1/2024 - 3/31/2025 $143,750 $11,979 - Type of Ownership Fee Simple 4/1/2025 - 3/31/2026 $165,313 $13,776 15.00% 4/1/2026 - 3/31/2027 $165,313 $13,776 - THE OFFERING 4/1/2027 - 3/31/2028 $165,313 $13,776 - Purchase Price $2,738,095 4/1/2028 - 3/31/2029 $165,313 $13,776 - CAP Rate 5.25% 4/1/2029 - 3/31/2030 $165,313 $13,776 - Annual Rent $143,750 4/1/2030 - 3/31/2031 $190,109 $15,842 15.00% 4/1/2031 - 3/31/2032 $193,911 $16,159 - LEASE SUMMARY 4/1/2032 - 3/31/2033 $197,789 $16,482 - Property Name Applegreen 4/1/2033 - 3/31/2034 $201,745 $16,812 - Property Type Net Leased Gas Station / C-Store 4/1/2034 - 3/31/2035 $205,780 $17,148 - Option 1 $218,626 $18,219 15.00% Tenant / Guarantor Petrogas Group US, Inc.