Net Leased Investment Opportunity
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NET LEASED INVESTMENT OPPORTUNITY 1560 Argentine Street Georgetown, CO 80444 Colorado Ski Country JUSTIN BROCKMAN CHRIS STUDENT JULES B. HOCHMAN Principal Associate Advisor Principal 303.962.9553 303.962.9575 303.962.9533 [email protected] [email protected] [email protected] TABLE OF CONTENTS Company/Tenant Overview Property Overview Site Plan Area Overview Investment Analysis COMPANY/TENANT OVERVIEW Family Dollar is an American variety store chain. With over 8,000 locations in all states except Alaska, Hawaii, Oregon and Washington, it is the second largest retailer of its type in the United States. For more than 50 years, Family Dollar has provided customers with value and convenience in easy to shop neighborhood locations. As we continue to grow and expand our vendors will play an increasingly important role. In addition to offering quality merchandise at low prices, Family Dollar is committed to the communities we serve by supporting the non-profit organizations that seek to improve the quality of life for our customers and Team Members. 3 PROPERTY OVERVIEW 1560 Argentine Street Georgetown, CO 80444 PROPERTY DESCRIPTION Price: $1,458,333 Year Built: 2014 Building Type: Freestanding Gross Leasable Area (GLA): 8,240 SF Lot Size: 27,007 SF Guaranty: Full Corporate • 2014 construction • Corporately guaranteed lease with 7 years remaining • Visible to 37,000 vehicles per day from I-70 • Two illuminated building signs of 24 SF and 124 SF in size visible from I-70 • Monument signage of 30 SF in size • Directly off I-70 exit 228 • Extremely high barrier to entry in historically designated mountain town • Close proximity to world class ski resorts including Arapahoe Basin, Loveland, Keystone, Breckenridge, Copper Mountain, Vail, and Beaver Creek 4 PROPERTY OVERVIEW 5 SITE PLAN 8,240 SF MONUMENT SIGN ARGENTINE STREET 6 AREA OVERVIEW The town is nestled in the Front Range of the Rocky Mountains sitting at 8,530 feet above sea level. Georgetown has a land area of approximately 1 square mile and is surrounded by Saxon Mountain, Griffith Mountain, Alpine The historic town of Georgetown, CO is the county seat of Clear Creek Peak, and Silver Plume Mountain, creating a very high barrier to entry for County, one of the original 17 counties created by the Colorado legislature any future development. on November 1, 1861. The county is named after Clear Creek, which runs from the continental divide through the county. Located along the heavily trafficked I-70 corridor, Georgetown is just 45 miles west of Denver and in close proximity to several of the country’s most Georgetown was established in 1859 as a former mining town and his since popular ski resorts including Arapahoe Basin, Loveland Ski Area, Keystone been federally designated as part of the Georgetown-Silver Plume Historic Resort, Breckenridge Ski Resort, Copper Mountain, Vail Ski Resort, and District along with the neighboring town of Silver Plume in 1966. The historic Beaver Creek Resort. With excellent visibility from I-70 and an average district designation preserves buildings and mining structures that serve traffic count of 37,000 vehicles per day, Family Dollar is easily accessible as relics to the gold and silver booms in the late 1800s, ultimately limiting off exit 228 from I-70. future development of the town. 7 AREA OVERVIEW 1560 Argentine Street 15th STREET INTERSTATE 70 THE SMALL MOUNTAIN TOWN OF GEORGETOWN, CO HAS A ROBUST POPULATION OF 2,532 RESIDENTS ARGENTINE STREET 8 AREA OVERVIEW GEORGETOWN INTERSTATE LOVELAND 70 ARAPAHOE DILLON BASIN INTERSTATE BEAVER 70 CREEK VAIL 1560 Argentine Street KEYSTONE COPPER MOUNTAIN BRECKENRIDGE 9 AREA OVERVIEW Arapahoe Basin Base Elevation 10,780 ft – Summit Elevation 13,050 ft Arapahoe Basin is located 27 miles west of Georgetown off Loveland Pass on U.S. Highway 6. The mountain features 960 acres of skiable terrain that is serviced by eight lifts. Arapahoe Basin opened in 1946 and is known for its extended ski season; often times opening in late October and remaining open through June Loveland Ski Area Base Elevation 10,800 ft – Summit Elevation 13,010 Loveland Ski Area is located 12 miles west of Georgetown off I-70. Loveland features 1,800 acres of skiable terrain that is serviced by ten lifts. Named after Loveland Pass, a high mountain pass on the continental divide, the ski resort first opened in 1936 and offers world class skiing just a short drive from Denver. Keystone Resort Base Elevation 9,280 ft – Summit Elevation 12,408 ft Keystone Resort is located 32 miles west of Georgetown off I-70 and U.S. Highway 6. The resort features 3,148 acres of skiable terrain that is serviced by 20 lifts. Keystone Resort is owned and operated by Vail Resorts, a publicly traded company headquartered in Broomfield, CO that owns many of the world’s best ski resorts across North America and one in Australia. Keystone offers the unique experience of night skiing, lighting up 15 trails to keep the resort open until 9pm. Breckenridge Ski Resort Base Elevation 9,600 ft – Summit Elevation 12,998 ft Breckenridge Ski Resort is located 37 miles west of Georgetown off I-70 and CO-9. Breckenridge features 2,908 acres of skiable terrain that is serviced by 32 lifts. Also owned and operated by Vail Resorts, the mountain first opened in 1961 and has a distinct layout offering access to five peaks on the Tenmile Range. Copper Mountain Base Elevation 9,712 ft – Summit Elevation 12,313 ft Copper Mountain is located 33 miles west of Georgetown off I-70. The mountain features 2,465 acres of skiable terrain serviced by 23 lifts. Copper Mountain opened in 1972 and recently became an official training venue for the U.S. Ski Team. Vail Ski Resort Base Elevation 8,120 ft – Summit Elevation 11,570 ft Vail Ski Resort is located 57 miles west of Georgetown off I-70. The resort is owned and operated by Vail Resorts and features the fourth largest area of skiable terrain in North America comprised of 5,289 acres that is serviced by 31 lifts. The resort opened in 1962 and is regarded as one of the world’s premier ski resorts. Beaver Creek Resort Base Elevation 8,100 ft – Summit Elevation 11,440 ft Beaver Creek Resort is located 64 miles west of Georgetown off I-70. The resort is owned and operated by Vail Resorts and features 1,815 acres of skiable terrain serviced by 17 lifts. The resort opened in 1980 and hosted the World Ski Championships in 1989, 1999, and 2015 on its famous Birds of Prey run. The resort is also a mainstay on the World Cup circuit. 10 INVESTMENT ANALYSIS INVESTMENT SUMMARY LEASE TERMS OVERVIEW Price $1,458,333 Rent Commencement July 3, 2014 Building Size 8,240 SF Lease Expiration September 30, 2024 CAP Rate 6.0% Term Remaining on Lease 7 Years Net Cash Flow $87,500 Lease Type Net Lease Initial Lease Term 10 Years Increases 10% increases in each option Options to Renew Six 5 Year Options TENANT OVERVIEW Tenant Family Dollar Stores, Inc. Ownership Public / NASDAQ: DLTR ANNUALIZED OPERATING DATA Tenant Headquarters Chesapeake, VA Lease Dates Annual Rent CAP Rate 7/3/2014 - 9/30/2024 $87,500 6.00% Option Terms Annual Rent CAP Rate Option 1 $96,250 6.60% Option 2 $105,875 7.26% Option 3 $116,462 7.99% Option 4 $128,109 8.78% Family Dollar and Dollar Tree Merger Option 5 $140,930 9.66% Option 6 $155,012 10.63% • Family Dollar and Dollar Tree Merged in July 2015 • The merger created a combined organization with sales exceeding $19 Billion annually and more than 13,600 stores across 48 states and five Canadian provinces 11 DISCLAIMER This confidential Offering Memorandum, has been prepared by Pinnacle Real Estate Advisors, LLC (“Pinnacle REA”) for use by a limited number of qualified parties. This Offering Memorandum has been provided to you at your request based upon your assurances that you are a knowledgeable and sophisticated investor in commercial real estate projects and developments. Pinnacle REA recommends you, as a potential buyer/investor, should perform your own independent examination and inspection of the property described herein as 1560 Argentine Street located in Georgetown, CO (the “Property”) and of all of the information provided herein related to the Property. By accepting this Offering Memorandum, you acknowledge and agree that you shall rely solely upon your own examination and investigation of the Property and you shall not rely on any statements made in this Offering Memorandum or upon any other materials, statements or information provided by Pinnacle REA or its brokers. Pinnacle REA makes no guarantee, warranty or representation about the completeness or accuracy of the information set forth in this Offering Memorandum. You are responsible to independently verify its accuracy and completeness. Pinnacle REA has prepared the information concerning the Property based upon assumptions relating to the general economy, its knowledge of other similar properties in the market, and on other market assumptions including factors beyond the control of the Pinnacle REA and the Owner of the Property. Pinnacle Real Estate Advisors make no representation or warranty as to either the accuracy or completeness of the information contained herein, and the information set forth in this Offering Memorandum is not intended to be a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be accurate, Pinnacle REA and the Property Owner disclaim any responsibility or liability for any inaccuracies. Further, Pinnacle REA and the Property Owner disclaim any and all liability for any express or implied representations and warranties contained in, or for any omissions from, the Offering Memorandum and for any other written or oral communication transmitted or made available to you.