Rite Aid MERIDIAN, IDAHO
18-YEAR RITE AID ON PREEMINENT DAILY NEEDS RETAIL CORRIDOR IN BOOMING MERIDIAN, ID Overview
Rite Aid
3250 S EAGLE ROAD MERIDIAN, ID 83642 PAGE 5
Investment Summary
LEASEABLE SF LAND AREA LEASE TYPE 14,619 SF 77,537 SF Absolute NNN
REMAINING TERM YEAR BUILT PARKING 18 Years 2016 65 Spaces; 4.4/1,000 SF
$5,110,000 6.00% PRICE CAP
THE OFFERING provides the opportunity to acquire a single tenant Absolute Net Rite Aid with 18 years remaining. Rite Aid is located at the preeminent hard corner of Eagle & Victory Roads, in the booming Boise submarket of South Meridian, Idaho’s fastest-growing city. The Property benefits from extremely strong demos, large area employers in close proximity, and several new developments in the immediate trade area, including a new Senior Housing community and YMCA. Overview Investment Highlights
The Highlights
ABSOLUTE NNN LEASE PROVIDES ZERO LANDLORD RESPONSIBILITY.
18 YEARS REMAINING ON PRIMARY TERM WITH RENT BUMPS.
CORPORATE-BACKED LEASE.
HARD CORNER LOCATION WITH FRONTAGE ON EAGLE & VICTORY ROADS.
BOISE NAMED THE FASTEST GROWING CITY IN THE U.S. BY FORBES IN 2018.
RITE AID IS ONE OF THREE PARCELS COMPRISING THE NEW SHOPS AT VICTORY WITH TWO ADJACENT UNDEVELOPED PADS FOR SALE. PAGE 7
RITE AID IS A NATIONAL CREDIT TENANT WITH A “B” CREDIT RATING (S&P)
About Rite Aid
th 2017 FORTUNE TOTAL 94 500 LIST 2,500+ LOCATIONS
STATES - STRONG NATIONAL EMPLOYEES 19 PRESENCE 51,000+
Investment Highlights Site
SENIOR HOUSING - INCOMING
E VICTORY ROAD
12,263 THE VILLAGE AT MERIDIAN VPD RITE AID The Village at Meridian, located 1.5 miles north, has a brand new 166-unit senior living center under development.
PLANNED TWO LANE EXPANSION BETWEEN VICTORY RD & AMITY RD 13,500 VPD
S EAGLE RD NEW HILL HIGH & MIDDLE SCHOOL PLANNING PHASE .5-MILE EAST
INCOMING
THE HILL (NEW DEVELOPMENT)
AMITY RD HILLSDALE ELEMENTARY PAGE 9
THE VILLAGE AT MERIDIAN
DAILY TRAFFIC COUNTS IN FRONT OF THE PROPERTY EXPECTED TO JUMP 70% IN THE NEXT 20 YEARS. MORE INFO
Site Retailers & Employers Business Summary
TOTAL 1-MILE 3-MILES 5-MILES
Businesses 245 2,154 5,930
Employees 3,193 29,312 81,267
Population 8,821 59,281 164,203
KEY 1-MILE 3-MILES 5-MILES
THE VILLAGE AT MERIDIAN Big Al’s Michael’s Chick-Fil-A Nike Factory Outlet H&M Petco Marshalls Village Cinema
MERIDIAN CROSSROADS Bed Bath & Beyond Old Navy Dollar Tree Ross Dress for Less Market Street Idaho Sportsman’s Warehouse
SURROUNDING EMPLOYERS Albertsons DC (Employment: 1,565) Blue Cross of Idaho (Employment: 850) El Dorado Business Park (Employment: 5,000) Jackson Food Stores (Employment: 1,565) Scentsy (Employment: 1,090) Silverstone Business Park (Employment: 5,000) St. Luke’s (Employment: 12,825) NEW DEVELOPMENTS PAGE 11 Brand new 166-unit senior living center planned for The Village at Meridian. More Info
MERIDIAN CROSSROADS
ALBERTSONS DISTRIBUTION CENTER N EAGLE ROAD N EAGLE
84
INTERSTATE 84 84
E OVERLAND RD PENDING
13,500 MOUNTAIN VPD VIEW HIGH SCHOOL $8M S EAGLE ROAD S EAGLE EXPANSION SENIOR HOUSING - 12,263 INCOMING VPD
VICTORY RD NEW HILL RITE AID HIGH & MIDDLE SCHOOL PLANNING PHASE
AMITY RD THE HILL
HILLSDALE ELEMENTARY Site Plan LEASEABLE SF 14,619 13,500 VPD S EAGLE RD PARCEL B FOR SALE E VICTORY RD ACRES 12,263 1.78 VPD construction onPad C. SF constructiononPad Band6,960SF development potentialfora4,065construction Adjacent Pads BandCareforsalewith PARCEL C FOR SALE 4.4/1,000 SF 65 SPACES; PAGE 13
DRIVE THRU
SITE PLAN NOT TO SCALE
Site Plan Income & Expense
Financial Summary
PRICE $5,110,000 CAPITALIZATION RATE 6.00% PRICE PER FOOT $350
CASH FLOW SUMMARY SCHEDULED INCOME PER SF Base Rent for the Period of: 4/1/2019 - 3/31/2020 $20.98 $306,718 Total Effective Gross Income (EGI) $20.98 $306,718
OPERATING EXPENSES Per SF CAMS NNN Property Taxes NNN Insurance NNN Total Operating Expenses NNN -
NET OPERATING INCOME $306,718
12/27/2018ABSOLUTE NET LEASE [
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. Buyer must verify the information and bears all risk for any inaccuracies. Rent Roll PAGE 15
Rent Roll
RITE AID
Lease Term: 11/10/2016 - 1/31/2037
Size (SF): 14,619
RENT SUMMARY
MONTHLY ANNUAL DATE % INCREASE PSF CAP RATE BASE RENT RENT
11/10/2016 $25,560 $306,718 $20.98 6.00% 12/1/2026 $26,838 5% $322,054 $22.03 6.30% OPTIONS 1-2 $28,180 5% $338,157 $23.13 6.62% 3-4 $29,589 5% $355,065 $24.29 6.95% 5-6 $32,548 10% $390,572 $26.72 7.64% CURRENT $25,560 $306,718 $20.98 6.00%
Lease Notes Comments: Absolute Net Lease with Corporate Guaranty provided by Rite Aid Corporation. Options to be exercised with 180 day's prior notice; option 5 to adjust to FMR (10% minimum increase). Tenant pays taxes, insurance, and utilities directly and is responsible for all maintenance, repair, and replacement to the interior and exterior, including the building structure, foundation, roof, parking lot/landscaping, mechanical systems, etc. Landlord is required to carry a general liability umbrella policy.
Financial Summary
12/27/2018 [
Featured Photography Questions & Answers
Q&A Q: HAS THERE BEEN ANY ENVIRONMENTAL TESTING PERFORMED AT THE PROPERTY? A: A Clean Phase I ESA was performed by GEM Environmental Management, LLC, in December 2015 with no existing Recognized Environmental Conditions, and no further testing required. PAGE 19
Q: ARE THERE CC&RS IN PLACE FOR THE SHOPS AT VICTORY?
A: The Owner also owns the adjacent parcels on each side of Rite Aid and is the Declarant in the CC&Rs overseeing the three parcels. The CC&Rs permit uses and restrictions in line with Class A retail. A cross-easement agreement permits pedestrian and vehicular traffic, as well as cross-parking, across all three parcels.
Questions & Answers Location Boise, Idaho MSA
Boise is the Fastest Growing City in the U.S. PER FORBES IN 2018
BOISE IS THE CAPITAL AND MOST POPULOUS CITY of the state of Idaho, as well as the county seat of Ada County. Located on the Boise River, it anchors the Boise City-Nampa metropolitan area and is the largest city between Salt Lake City, Utah and Portland, Oregon. The Boise metropolitan area is home to approximately 616,500 people and is the most populous metropolitan area in Idaho, containing the state’s three largest cities; Boise, Nampa, and Meridian. PAGE 21 Corporate Headquarters
BOISE IS THE HEADQUARTERS FOR several major companies, such as Boise Cascade LLC, Albertsons, J.R. Simplot Company, Idaho Pacific Lumber Company, Idaho Timber, WinCo Foods, Bodybuilding.com, and Clearwater Analytics. Other major industries are headquartered in Boise or have large manufacturing facilities present. The state government is also one of the city’s largest employers.
Meridian, MERIDIAN is the third largest city in Idaho and is considered the state’s fastest-growing city and among the fastest-growing Idaho cities in the United States.
93,000 2nd 80%
NEW JOBS IN IDAHO HIGHEST HOME POPULATION replacing 60,000 lost during the recession APPRECIATION YEAR- GROWTH SINCE 2000 OVER-YEAR IN THE U.S. 2018 Location Demographics
KEY 5 MINS 10 MINS 15 MINS
Distance Boise, Nampa, to Idaho Idaho
10.9 MILES 13.5 MILES 14 MINS 23 MINS PAGE 23
Drive time
POPULATION
5 MINS 10 MINS 15 MINS
2010 18,597 66,724 235,276
2018 25,979 83.776 274,880
2023 29,533 93,686 301,423
2018 HH INCOME
5 MINS 10 MINS 15 MINS
Average $105,293 $90,776 $75,075
Median $84,949 $73,550 $57,806
434,211
ADA COUNTY POPULATION (ESTIMATED)
Demographics Contact Us We’d love to hear from you.
SEAN MACK KEVIN ADATTO [email protected] [email protected] PH: 503.675.8378 PH: 503.675.7726
MICHAEL HORWITZ SEAN TUFTS [email protected] [email protected] PH: 503.675.8381 PH: 206.693.3352
The information in this Executive Summary 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. Buyer must verify the information and bears all risk for any inaccuracies. All rights reserved to Capital Pacific, LLC.
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