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3003 N 108 T H St ™ OFFERING MEMORANDUM 3003 N 108TH ST OMAHA, NEBRASKA 68164 EXCLUSIVELY PRESENTED BY EL WARNER KYLE MATTHEWS JOHN KERR ADAM MAREK SVP & NATIONAL DIRECTOR CHAIRMAN & CEO ASSOCIATE BROKER OF RECORD SHOPPING CENTERS [email protected] SHOPPING CENTERS VICE PRESIDENT [email protected] (310) 919.5757 [email protected] Lic. No. 19990664 (310) 579.9690 (310) 579.9693 CONTENTS 4 EXECUTIVE SUMMARY Offering Summary Investment Highlights Financial Summary New Debt 6 PROPERTY OVERVIEW Site Description Parcel Map Regional & Local Map Tenant Map 10 AREA OVERVIEW Omaha, Nebraska Top Employers Demographics Economic Overview Metropolitan Statistical Area 16 FINANCIAL OVERVIEW Family Fare Lease Abstract 17 TENANT OVERVIEW Family Fare Overview 3003 N. 108th Street | OMAHA, NE EXECUTIVE SUMMARY 4 | FAMILY FARE Offering Memorandum OFFERING SUMMARY FINANCIAL SUMMARY Matthews Retail Advisors is proud to offer the fee simple interest sale in an absolute triple Price $3,595,000 net Family Fare investment located on a busy intersection in Omaha, Nebraska. Family Property Size (NRA) 66,605 Fare is guaranteed by Spartan Nash, a public national grocery chain operating 167 retail. Year Built 1982 The property is a 66,605-square-foot single-tenant grocery building located within a larger Year Renovated 2016 shopping center. Current Occupancy 100.0% Financial Information The tenant has recently extended their lease for an additional five years and has significantly Net Operating Income $287,762 renovated this location with a complete rebranding of the façade. The tenant performs Debt Service $153,222 well in this location and has a long-term commitment to the site, consistent with its recent renewal as well as its renovation of the current building. The absolute triple net lease Cash Return $134,540 structure includes below market rent of only $4.32 per square foot per month, translating Capitalization Rate 8.00% to an acquisition price of only $54 per square foot. This stable investment is priced well Cash on Cash Return 12.47% below replacement value. This asset offers an investor strong cash on cash returns with the stability of a national NEW DEBT grocer committed to the location with no management responsibilities Principle Loan Amount $2,516,500 Required Equity $1,078,500 INVESTMENT HIGHLIGHTS Loan-to-value 70% Interest Rate 4.50% • A 12.47% cash on cash return Term 5 Years • Below market rents Amortization 30 Years • A national grocer operating 167 retail locations Annual Debt Service $153,222 • Absolute NNN lease structure and ease of management - Amortized • Recently renovated property Loan quote provided by Barrington Capital - Brian Krebs - 310-844- • Provided free and clear of debt 9361 - [email protected] • A strong MSA and location within a performing shopping center MATTHEWS RETAIL ADVISORS | 5 3003 N. 108th Street | OMAHA, NE PROPERTY OVERVIEW 6 | FAMILY FARE Offering Memorandum PARCEL MAP SITE DESCRIPTION Property Name Family Fare Address 3003 N. 108th Street Location Omaha, NE 68137 APN 1711811454 Zoning CC, Community Commercial Number of Stores One Year Built 1982/2016 Gross Leasable Area (GLA) 66,605 SF Lot Size 6 Acres (261,532) SF MATTHEWS RETAIL ADVISORS | 7 3003 N. 108th Street | OMAHA, NE REGIONAL MAP SITE INFORMATION The subject property is located on the northwest side of Omaha, NE. The grocer is placed in the most populous county in Nebraska, Douglas County, with over 550,000 residents. 8 | FAMILY FARE LOCAL MAP Offering Memorandum TENANT MAP MATTHEWS RETAIL ADVISORS | 9 3003 N. 108th Street | OMAHA, NE OMAHA, NE Located on the Missouri River, Omaha is the largest city in the state of Nebraska with a population over 400,000. Omaha is a strong, growing business community being home to five Fortune 500 companies. Forbes Magazine named Omaha the “Best Bang-For-The Buck City” in the United States along with putting the city on the list of one of the “Best Places for Business and Careers.” This Midwestern city is commonly regarded as the telecommunications capital of the U.S. and serves as a major commercial hub. Deemed as one of the friendliest cities in the world, Omaha sits on the south-east end of Douglas County. DOUGLASS COUNTY FAST FACTS • Nebraska’s most populous county • Home to over one-fourth of Nebraska’s residents • 89.3% of the population 25 years of age or older have their high school degree or higher • 71.8% of the population 16 years of age or older are employed FORTUNE 500 HEADQUARTERS # COMPANY 1 Berkshire Hathaway 2 Union Pacific 3 ConAgra Foods 4 Peter Kiewit Sons’ AREA OVERVIEW 5 Mutual of Omaha Insurance 10 | FAMILY FARE Offering Memorandum OMAHA TOP EMPLOYERS • WHY OMAHA, NE? • Cost of living is 8.2% below the national median # EMPLOYERS EMPLOYEES • The median household income is 6% higher than the national median 1 Offutt Air Force Base 7,500+ 2 Alegent Health 7,400+ • Cost leader for businesses in the Midwest and around the U.S. 3 Omaha Public Schools 6,250 • Every year over 9,000 students graduate from high school 4 Methodist Health Center 6,250 • Eighteen colleges and universities in the city have a combined enrollment 5 The Nebraska Medical Center 6,250 of 68,000 students 6 University of Nebraska Medical Center 5,000 • Omaha is the 11th Best City to Start a Career by WalletHub (2016) 7 First Data Corporation 5,000 • ZipRecruiter named Omaha as the 3rd Best City to Find a Job (2016) • One of the lowest unemployment rates in the nation DEMOGRAPHICS • Predicted economic growth in the coming years POPULATION 1 Mile 3 Miles 5 Miles 2021 Projection 11,942 83,546 216,750 2016 Estimate 11,563 80,491 208,547 2010 Census 11,252 77,174 199,452 Growth 2016 - 2021 11,417 74,106 188,365 Growth 2010 - 2016 3.28% 3.80% 3.93% HOUSEHOLDS 2.76% 4.30% 4.56% 2021 Projection 5,590 36,046 90,525 2016 Estimate 5,390 34,525 86,665 2010 Census 5,199 32,775 82,163 2000 Census 4,925 30,337 75,162 Growth 2016 - 2021 3.71% 4.40% 4.45% Growth 2010 - 2016 3.66% 5.34% 5.48% INCOME 5.56% 8.04% 9.32% 2016 Est. Average $66,383 $75,632 $79,749 Household Income MATTHEWS RETAIL ADVISORS | 11 3003 N. 108th Street | OMAHA, NE 12 | FAMILY FARE Offering Memorandum DISTANCE FROM FAMILY FARE OMAHA MSA CITY Distance La Vista, NE: 4 miles 4 miles Papillion, NE: 6 miles 6 miles Downtown Omaha, NE 9 miles Bellevue, NE 16 miles Council Bluffs, IA 17 miles TRANSPORTATION Omaha is known as the “20-minute city” as it takes, on average, only 20-minutes to commute anywhere. For residents without cars, there are public transportation options through bus services, rail services, and shuttles. OMAHA TOURIST ATTRACTIONS • Henry Doorly Zoo and Aquarium • TD Ameritrade Park • Durham Museum • Union Station • CenturyLink Center • Freedom Park • Heartland of America Park • Zorinsky Lake Park • Gene Leahy Mall • Joslyn Castle • Holland Performing Arts Center • Malcolm X House Site • Lewis and Clark Landing • St. Cecilia Cathedral • The Rose Theater • Lauritzen Gardens • Fort Omaha • Creighton Orpheum Theater • Dodge Park MATTHEWS RETAIL ADVISORS | 13 3003 N. 108th Street | OMAHA, NE OMAHA ACCOLADES CITY OF OMAHA • 9the Most Caring City in America (Wallet Hub) • One of the top cities for Global Trade (Global Trade) POPULATION • 2nd Best Place to Live (Time) • 5th Best City to Work for a Small Business (Wallet Hub) 408,958 • 2nd Best U.S. City for Millennial College Students • 2nd Best City with the Most Debt Savvy Residents in Nebraska (Smart Asset) AVERAGE AGE • #1 City to Raise a Family in America 35 ECONOMIC OVERVIEW AVERAGE HOUSEHOLD SIZE There are over 20,400 businesses located in the Omaha-Council Bluffs metropolitan 2.5 area, five of which are Fortune 500 companies. There has been a consistent growth in the labor force overall even though the unemployment rate has recently increased. AVERAGE HOUSEHOLD INCOME While average income is below national average, the cost of living is 5.5% lower. With the population in the metropolitan area increasing toward 1 million, more businesses $57,527 are expected to call Omaha their new home. 14 | FAMILY FARE Offering Memorandum OMAHA METROPOLITAN STATISTICAL AREA POPULATION TO REACH 1 MILLION The Omaha-Council Bluffs metropolitan area, locally refereed to as “the Metro” or just “Omaha”, with Omaha being the largest city of the MSA bunch. This area includes eight counties, three of which are in Iowa with the other five in Nebraska. The Omaha metropolitan statistical area is continuously growing at a steady rate of 1.2% each year and is predicted to hit a population of 1 million in the near future. This milestone number has proven to bring in business as some larger firms only consider locating in cities with a million or more people. Over half of the MSA residents are married while approximately 35% are married and, in addition, have at least one child. This will be an advantage to grocers as a family of three spends around $300 per week on groceries. SPORTS Omaha has been home to the Olympic swim trials for the past 2 trial periods (2008, 2012) and hosted the trials yet again in this year (2016) at the CenturyLink Center. Every June, Omaha hosts the National Collegiate Athletic Association (NCAA) College baseball World Series at Rosenblatt Stadium. The city is home to the world’s second-largest rodeo which takes place during part of the cities four-day western festival. Omaha is scheduled to host the World Cup Finals in show jumping and dressage (large horse competition) in 2017 which is expected to bring in 80,000 to the city.
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