Randall Commercial Group, LLC Investment Real Estate Optimized
Numbers Behind Southeast Hottest Market Lafayette-Oxford-University Market Report 2015
Randall Commercial Group, LLC 850 Insight Park Ave., University, MS 3867 • Post Office Box 1600, Oxford, MS 38655 Main Office: (662) 234-4044 • Fax: (662) 655-4357 www.randallcommercialgroup.com Oxford at a Glance—Page 1
Home of The University of Mississippi - Ole Miss Square Books on Historic Oxford Square 80 miles south of Memphis, TN & 160 miles north of Jackson, MS 62% increase in gross retail sales since 2006 in Oxford 24% increase in Bank Deposits in the Oxford City limits since 2010 up to $957 MM 54% increase in Oxford’s population from 2000 to 2015 29% increase in The University’s Oxford Campus enrollment from 2010 to 2015 50% increase in the number of students entering 1st Grade compared to students entering 12th grade in the Oxford School System in 2015 27% increase in total enrollment for the Oxford School District since 2006; 14% increase in Lafayette School District en- rollment since 2006 Median Home & Condo Price—$229,000 1,007 retiree households bringing assets of $323 million and over $33 million annually in discretionary income Ranked #1 on Kiplinger’s “10 Smart Places to Retire” list for 2014 Lafayette County (Oxford) had the State’s top growth rate at 11.8%, form April 2010 to July 2014 Oxford’s daytime population grows by 40% (2010) Oxford ranked #17 out of 576 U.S. Micropolitans in Economic Strength in 2015 4 New Hotels either under construction or recently completed: 1. TownePlace Suites by Marriott (Open—94 units); Courtyard by Marriott (Under Construction—121 units); The Graduate (Open—125 units); The Chan- cellor’s House (Under Contruction 32-units); total of 372 new units
Comparison—SEC Towns
Oxford, MS Athens, GA Baton Rouge, LA Fayetteville, AR Tuscaloosa, AL Measure (Ole Miss) (UGA) (LSU) (Unv. Of Ark.) (Unv. Of AL)
Bank Deposits Per Capita $45,790 $21,255 $61,813 $31,220 $26,389
Gross Retail Sales Per Capita $31,006 $14,328 $18,180 $23,659 $21,025
Median Home & Condo Price $229,000 $149,000 $185,000 $199,000 $155,000
Population Growth 2010 - 10.50% 6.38% 0.22% 10.31% 5.61% 2015
University Undergraduate En- 28% 6.17% 6.73% 28% 28% rollment Growth 2010-2015
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850 Insight Park Avenue | University, Mississippi 38677 | Post Office Box 1600 | Oxford, Mississippi 38655 | Phone: 662-234-4044 | Fax: 662-655-4357 Retail Profile—Page 2
Highland Court
62% Increase
62% growth in gross retail sales in Oxford since 2006.
Compares very favorably per capita to other SEC towns.
62% growth in gross retail sales in Lafayette County since 2006.
Fiscal Year Surplus/(Leakage) S/(L) as pct. of Po- Total Retail Sales Pull Factor** Potential Sales (Lafayette County) *** tential Sales
2014 $942,760,000 1.28 $735,160,000 $270,600,000 28.2%
2013 $812,310,000 1.16 $700,180,000 $112,130,000 16.0%
2012 $745,530,000 1.41 $527,940,000 $217,590,000 41.2%
2011 $639,740,000 1.31 $486,530,000 $153,210,000 31.5%
2010 $636,820,000 1.30 $488,080,000 $148,740,000 30.5%
2009 $695,090,000 1.36 $509,830,000 $185,260,000 36.3%
2008 $698,400,000 1.44 $486,240,000 $212,170,000 43.6%
2003 $477,180,000 1.37 $347,810,000 $129,360,000 37.2%
** Pull factor—The pull factor identifies how much retail business is leaving your community in comparison to the population. A retail pull factor of 1 is neu- tral; there are as many people coming into the community to shop as are going elsewhere. A retail pull factor of less than 1 means there are more people leaving your community to shop than are coming in from the surrounding area. A retail pull factor greater than 1 means more people come to the community to shop than go elsewhere. ***The Oxford>Lafayette market has a “surplus” of retail sales—consumers are drawn in from outside the market.
Sources—www.fdic.gov; Mississippi State University “Extension Service”
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850 Insight Park Avenue | University, Mississippi 38677 | Post Office Box 1600 | Oxford, Mississippi 38655 | Phone: 662-234-4044 | Fax: 662-655-4357 Retail Trade Area (Population)—Page 3
Student Population 2015 Population w/o Students w/ Students (Oxford Campus Only)
Oxford City Limits 20,899 19,996 40,895
38655 Zip Code 40,774 19,996 60,770
Lafayette County (Primary Trade Area) 52,324 19,996 72,320
Oxford City Limits 38655 Zip Code
Lafayette County (Primary Trade Area) Oxford Traffic Count Map
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850 Insight Park Avenue | University, Mississippi 38677 | Post Office Box 1600 | Oxford, Mississippi 38655 | Phone: 662-234-4044 | Fax: 662-655-4357 Financial Summary—Page 4
FNB Bank on Oxford Square Financial Institutions
Number of Institutions: 11
2015 Gross Deposits: $956,959,000.00
18% Growth in Bank Deposits since 2009 in Oxford city limits.
Date Gross Deposits 18% Increase June 2014—June 2015 $956,959,000.00
June 2011—June 2012 $885,992,000.00
June 2010—June 2011 $852,315,000.00
June 2009—June 2010 $825,078,000.00
June 2008—June 2009 $812,226,000.00
Property Assessment, Building Permits, Etc.
$179 Million of Building Permits Pulled between 2013 & 2014
8.10% growth in Sales Tax Collections in Lafayette County between 2014 & 2015
Currently $1 billion under construction or in planning phase in Oxford
63% increase in Ad Valorem Assessment of Real Property Values since 2006—$432.04 million
Off Campus Student Housing Beds Beds Added since 2010 63% Increase Highland Square 753
The Retreat 668
The Hub 582
Molly Bar Trails 303
Faulkner Flats 588
Taylor Bend 288
Total 3,182
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850 Insight Park Avenue | University, Mississippi 38677 | Post Office Box 1600 | Oxford, Mississippi 38655 | Phone: 662-234-4044 | Fax: 662-655-4357 Market Economy & Major Employers—Page 5
FNC Corporate Office Insignificant foreclosure rate during recession—according to N. Central MS Board of Realtors.
Unemployment Rate 2015– Lafayette County 5.8%; Mississippi 7.2%
Average HH Income in 38655 zip code—$60,681
Property Assessment, Building Permits, Etc.
Company # of Employees
The University of Mississippi (Ole Miss) is the flagship university for University of Mississippi 2,600 the state of Mississippi. www.olemiss.edu
North Mississippi Regional Intermediate Care Facility for the Mentally Retarded (ICF/MR). Ser- 1,150 Center vices the northern 23 counties of Mississippi. www.nmrc.state.ms.us 217-bed acute care facility serving the northern third of Mississippi. Baptist Memorial Hospital 1,200 New $300MM, 680,000 sq. ft. regional hospital campus currently un- der construction. www.baptistonline.org/north-mississippi/
Winchester is the worldwide leader in the manufacture of commercial Olin Corporation— small caliber and military ammunition. Oxford’s 500,000 sq. ft. manu- 1,100 Winchester Division facturing facility houses Winchester’s Centerfire ammunition produc- tion lines. www.olin.com; www.winchesterguns.com
BorgWarner is a global product leader in powertrain solutions. The Borg Warner 485 Water Valley(25 miles south of Oxford) facility is preparing to make its 3rd expansion in 2 years. www.borgwarner.com
The world’s largest retailer with nearly 11,000 stores under 71 banners Walmart 400 in 27 countries. www.walmart.com
City Of Oxford 340 City municipality. www.oxfordms.net
World leading manufacture of construction and mining equipment. Oxford’s 185,000 sq. ft. High Performance Extrusion Group facility Caterpillar, Inc. 305 makes high-pressure couplings used in nearly every piece of equipment Caterpillar makes. www.caterpillar.com
Mortgage technology company that has pioneered real estate collateral information technology. Currently in process of developing new FNC, Inc. 275 68,000 sq. ft. headquarters in Oxford that will provide 300+ high sala- ry, high-tech jobs. www.fncinc.com
Lafayette County 200 County municipality. www.lafayettecoms.com
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850 Insight Park Avenue | University, Mississippi 38677 | Post Office Box 1600 | Oxford, Mississippi 38655 | Phone: 662-234-4044 | Fax: 662-655-4357 Healthcare—Page 6
New Hospital Rendering
217-bed acute care facility (capacity to expand to 290 beds).
Serves the northern 1/3 of Mississippi as a “regional referral center”.
$200 Million economic impact to Oxford. Current Construction 90 Medical and Surgical Specialists.
Ranked #1 in Mississippi for Cardiac Surgery.
60% of patients come from outside Lafayette County.
Voted “Hospital of the Year” by the Mississippi Nurses Association in 2011.
New $300 million 680,000 sq. ft. hospital cam- pus currently under construction.
Two medical office buildings (MOB) totaling 40,000 sq. ft. will be constructed on the campus.
NMRC Campus
Services for patients with intellectual and related develop- mental disabilities.
A licensed Intermediate Care Facility for the Mentally Re- tarded (ICF/MF).
Serves 23 counties in North Mississippi.
1,150 employees
220-acre campus with 25 departments.
operates 12 residential cottages housing 280 clients on its 220-acre Oxford campus.
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850 Insight Park Avenue | University, Mississippi 38677 | Post Office Box 1600 | Oxford, Mississippi 38655 | Phone: 662-234-4044 | Fax: 662-655-4357 Education—Page 7
Oxford School District
4,250 students in the Oxford School District. 27 % increase in enrollment since 2006; 18% since 2001 A 50% increase in the number of students entering 1st Grade compared to students entering 12th grade in the Oxford School System. New $30 million, 220,000 sq. ft. Oxford High School—opened spring semester of 2014. Oxford High School & Oxford Middle School are award winning Level 5 (Superior-Performing) Schools. Oxford School District has 7 schools—Bramlett Elementary School (PreK-1), Oxford Elementary School (Grades 2-3), Della Davidson Elementary School (Grades 4-5), Oxford Middle School (Grades 6-8), Ox- ford High School (Grades 9-12), Oxford Learning Center (Grades 6-12), C.M. Scott Center (Special Needs).
Oxford High School Oxford High School
Lafayette County School District
Aerial of Lafayette Co. School 2,741 students in the Lafayette County School Dis- trict. 14% increase in enrollment since 2006. School is located on the Oxford City Limits. Lafayette County has 4 schools—Lafayette Elemen- tary School, Lafayette Upper Elementary School, Lafayette Middle School, and Lafayette High School.
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850 Insight Park Avenue | University, Mississippi 38677 | Post Office Box 1600 | Oxford, Mississippi 38655 | Phone: 662-234-4044 | Fax: 662-655-4357 Higher Education—Page 8
The University of Mississippi—Ole Miss
Founded in 1848, Ole Miss is the flagship university of the state of Mississippi. With more than 23,838 students, Ole Miss is the state's largest university, with a major medical school, a nationally recognized law school and 15 academic divisions. Enrollment has grown by 59.3% over the past decade, and by 28% in the past five years alone. A record enrollment in UM Medical Center, up 9.1% from 2013 to 2014. Hosted 2008 Presidential Debate. Ole Miss was ranked #18 on Forbes “Best Value College” - only SEC school to make the Top 20 List. U.S News and World Report ranked the Professional MBA program one of the top 14 in the Nation. Patterson School of Accounting in top 10 nationally.
The Lyceum Vaught-Hemingway Stadium
Northwest Mississippi Community College—Oxford Center
Opened in 1983. A 31,000 sq. ft. expansion was opened in August 2002. Northwest’s Oxford Center is home to just over 1,000 stu- dents. Also home to the Lafayette-Yalobusha Techincal Center, which offers pro- grams in Office Systems Technology, Health-care Data Technology, Microcomput- er Technology, Cosmetology, Health Care Assistant, Office Assistant, Practical Nursing, Paralegal Technology and Surgical Technology.
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850 Insight Park Avenue | University, Mississippi 38677 | Post Office Box 1600 | Oxford, Mississippi 38655 | Phone: 662-234-4044 | Fax: 662-655-4357 University Impact—Page 9
Impact—Ole Miss Athletics
Football Attendance 2015—423,353 fans; 60,479 per game aver- age (7 home games).
Basketball Attendance 2014/15—115,196; 7,200 per game average Rendering of Stadium Expansion (16 home games). and The Pavilion Baseball Attendance 2015—225,873 fans; 8,066 per game average (28 home games) - Ranked 2nd in the NCAA for attendance.
Population grows to 100,000+ during home football game week- ends.
Ole Miss Athletics has currently exceed its capital contributions goal of $150,000,000. Ole Miss Athletics has raised $155,000,000 in just 4 years for enhancement and expansion of the football stadium, basketball arena and other sports facilities.
Swayze Field Current Projects on Campus
Projected Completion Projects Est. Value Date The Pavilion at Ole Miss (Basketball Arena) and Parking Completed $90,000,000.00 Garage.
Coulter Hall Completed $16,000,000.00
Sally McDonnel Barksdale Honors College—Renovation 2016 $6,300,000.00 and Expansion
Music Building—Renovation and Expansion Completed $4,300,000.00
Old Taylor Rd. Roundabouts Completed $6,800,000.00
Phase II of the Thad Cochran Research Center Completed $31,700,000.00
New Residence Hall 2015 $18,000,000.00
Student Union—Renovation and Expansion 2018 $50,000,000.00
Total Est. Value $223,100,000.00
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850 Insight Park Avenue | University, Mississippi 38677 | Post Office Box 1600 | Oxford, Mississippi 38655 | Phone: 662-234-4044 | Fax: 662-655-4357 Contact Information — Page 10
Published by:
Brian P. Phillips, CCIM Associate Broker Direct Office: 662-638-0722 Email: [email protected] Licensed AR, LA, MS
Randall Commercial Group, LLC 850 University Ave. University, Mississippi 38677 Post Office Box 1600 Oxford, Mississippi 38655 Main Office: 662-234-4044 Fax: 662-655-4357 www.randallcommercialgroup.com
About Randall Commercial Group, LLC
Randall Commercial Group, LLC is a boutique commercial real estate investment brokerage and consulting firm that focuses on real estate and development opportunities throughout the southeastern United States for clients based throughout the country. Through our consulting company, Randall Commercial Advisory, LLC, our clients are provided with real estate consulting, solutions, and financial analysis services to maximize the potential of real estate holdings and to overcome challenges with their properties. We operate with a diligent and specialized eight person team that is committed to exceptional client service and outcome. Our team-based approach provides several professionals col- laborating on each project thereby optimizing results. Through a myriad of brokerage services and consulting services, we serve institutional and individual investors, property owners and end us- ers, developers, and tenants in real estate ranging up to $50 million in market value. By focusing on a range of property types and uniquely specialized services, we are better able to accommodate diverse client interests: from a small single tenant property to a large mixed-use de- velopment. We provide a professional platform for operating, utiliz- ing, acquiring, or disposing of real estate assets directly. Rather than working in a single city or state, our large geographical footprint al- Geographic Area lows us to operate with an opportunistic and diversified focus, to see markets objectively, and to move into stronger markets and out of weaker ones as market conditions dictate. This also provides us the flexibility to work with clients that have real estate interests in multi- ple markets. Our corporate strategy is simple: client first. Our approach is unique: proprietary research, team-based approach, creativity and persever- ance allowing us to focus on creating and preserving client wealth on property at a time while building meaningful, long-term relationships. Our niche is commercial and investment real estate; we have carved out special practice groups in complex areas of real estate. Our pro- fessionals are diverse through our unique experience, expertise, and education which benefits the client experience. We do not desire to be all things to all clients, but we are singularly and pas- sionately focused on being all things in investment commercial real estate.
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850 Insight Park Avenue | University, Mississippi 38677 | Post Office Box 1600 | Oxford, Mississippi 38655 | Phone: 662-234-4044 | Fax: 662-655-4357 References — Page 11
http://msucares.com/crd/county_profiles/2014_retail_profiles/lafayette_county_retail.pdf https://www5.fdic.gov/sod/sodMarketBank.asp?barItem=2 Ersi (STDB) http://irep.olemiss.edu/wp-content/uploads/sites/98/2016/01/Mini-Fact-Book-in-Excel_2015- 2016.pdf http://news.olemiss.edu/um-enrollment-soars-past-23800-students/ http://irep.olemiss.edu/wp-content/uploads/sites/98/2014/02/ fall_2013_2014_enrollment_profile_final.pdf http://irep.olemiss.edu/institutional-research/enrollment-data/ http://www.oir.uga.edu/fact_book http://www.lsu.edu/bgtplan/trend/data/fteenrl.pdf http://oir.uark.edu/quickfacts/factbook-2015-2016.pdf http://oira.ua.edu/d/content/glance http://www.dor.ms.gov/Statistics/Pages/default.aspx http://reports.mde.k12.ms.us/data/ http://www.realtor.com/local/ http://www.policom.com/PDFs/2015%20Economic%20Strength%20Rankings.pdf Ersi (STDB) http://mdes.ms.gov/information-center/labor-market-information/data-maps/ http://www.oxfordms.net/business/permit-data http://www.cbssports.com/collegefootball/writer/jon-solomon/25418087/college-football-attendance- drops-for-fifth-straight-year-but-at-slower-rate http://assets.espn.go.com/SEC/baseball/2015/SEC%20Baseball%20Attendance.pdf http://fs.ncaa.org/Docs/stats/m_basketball_RB/Reports/attend/2015.pdf http://wreg.com/2015/08/07/three-new-hotels-going-up-near-downtown-oxford-ms/ http://www.indexmundi.com/facts/united-states/quick-facts/mississippi/population-growth#chart www.northwestms.edu http://news.olemiss.edu/um-forward-together-campaign-exceeds-goal-announces-extension/ http://www.dor.ms.gov/Statistics/Pages/default.aspx
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850 Insight Park Avenue | University, Mississippi 38677 | Post Office Box 1600 | Oxford, Mississippi 38655 | Phone: 662-234-4044 | Fax: 662-655-4357