Shoppes on Memorial a Trophy Retail Strip Center

Shoppes on memorial a trophy retail strip center

Premier retail strip center in desirable north carolina market directly across from pitt community college [ www.CapitalPacific.com ] 4100 Humber Drive, Greenville, NC 28590 PROperty Summary Listing Team Contact Info TROPHY four tenant retail investment property on major retail corridor in greenville, north carolina. Dave Lucas [email protected] | (415) 274-7390 The property is a 2016 construction strip center, located directly across from Pitt CA BRE# 01389761 Community College. The asset is 100% leased to Starbucks, Chipotle, Sport Clips and Mattress Warehouse. The offering presents the opportunity for an investor to acquire a Joe caccamo premier center in a dominant location in a growing North Carolina market. [email protected] | (415) 274-7394 CA BRE# 0119110 PRICE: $4,800,000 In Conjunction with NC Licensed Broker: Stuart Mullen, Commercial Real Estate Carolina, LLC CAP: 6.25% [email protected] | (704) 661-9800

Rentable SF...... 10,569 SF Capital Pacific collaborates. Click Here to Price per SF...... $454.50 meet the rest of our San Francisco team. land area ...... 1.66 Acres YEAR BUILT ...... 2016 Occupancy...... 100%

Shoppes on memorial | 2 core characteristics

2016 construction The 2016 construction strip center features attractive building finishes with a contemporary design including eye-catching tower elements on both Across the street from pitt community college Starbucks and Chipotle. Brand new leases with rental increases The center is 100% leased to Starbucks, Sport Clips, Mattress Warehouse and hard corner location in greenville, nc Chipotle. All tenants are operating on brand new leases with rental increases. The subject property is located at a signalized intersection of NC-11 S and Starbucks and Chipotle both feature ample outdoor patio seating, enhancing Whitley Drive in Greenville (county seat of Pitt County), which serves a large the site’s “destination” dynamic. concentration of people in Eastern North Carolina (more than 812,000 within 45 miles). Greenville is considered the shopping destination for the “Inner Across from pitt community college Banks” region of Eastern NC due to the many big box retailers and shopping The subject property is located directly across from Pitt Community College centers in the town. There are 91,845 people within 5 miles of the subject with a 12,000 student enrollment. The tenant roster in the center caters to property with average household incomes exceeding $57,200. Greenville this demographic. Greenville is also home to East Carolina University that is less than 25 miles from I-95 and approximately 1.2 hours (85 miles) from has a student and faculty population of nearly 34,000. Raleigh-Durham International Airport. Dominant location on main retail corridor Excellent retail synergy The subject property is located along North Carolina Highway 11 AKA Other retailers along North Carolina Highway 11 include Sheetz Fuel Station, Memorial Drive, one of the major thoroughfares in Greenville. Average daily McDonald’s, CVS Pharmacy, Walgreens, Sam’s Club, Dollar Tree and Burger traffic counts on NC Highway 11 are 34,000. King. Fast food volumes on Memorial Drive are above average.

Shoppes on memorial | 3 Retail aerial Subject property is across the street from Pitt Community College

264

ALT 264 264

43 Please see Pg. 14 for summary of university Stantonsburg Road enrollemnt THE SHOPPES AT MEMORIAL

ALT South 264 Central High School

W 5th Street

PITT-GREENVILLE AIRPORT 11

34,000 DAILY

South 11 13 11 Greenville Elementary JH Rose High School WH Robinson Elementary

Greenville Boulevard SW

E Fire T UNIVERSITY COMMONS

ower Road ALT CM Eppes 264 Middle School

Winterville Charter GREENVILLE MALL Academy

264 RALEIGH

Shoppes on memorial | 4 site plan

Whitley Drive

PYLON ENTRANCE SIGN

AIL D 34,000 34,000 Humber Drive NC-11 S 11

Shoppes on memorial | 5 photos

Brand New, 2016 building construction

Shoppes on memorial | 6 photos

Subject property is across the street from pitt community college

Shoppes on memorial | 7 income & expense

Current Price: $4,800,000 Proposed Loan Amount $3,360,000 Capitalization Rate: 6.25% Loan to Value 70% Price Per Square Foot: $454.16 Interest Rate 4.25% Down Payment 30% $1,440,000 Amortization 25 Year Loan Amount 70% $3,360,000 Term 10 Year Total Leased (SF): 100.00% 10,569 Lender Community Bank Total Vacant (SF): 0.00% 0 Net Operating Income $300,221 Total Rentable Area (SF): 100.00% 10,569 Debt Service ($218,429) INCOME Per Square Foot Pre-Tax Cash Flow $81,792 Scheduled Rent $29.47 $311,459 Debt Coverage Ratio 1.37 Expense Recovery $4.98 $52,669 Recourse Partial Management and CAM Admin Recovery $1.26 $13,295 EFFECTIVE GROSS INCOME $377,423 Pre-Tax Leveraged Cash-on-cash Return 5.68% Vacancy Factor (3%) ($11,323) Principal Pay down (Year 1 of Ownership) $77,120 ADJUSTED GROSS INCOME $366,100 Total Return $158,912 Yield 11.04% EXPENSEs Taxes ($2.37) ($25,000) Insurance ($0.31) ($3,229) CAM ($2.31) ($24,440) Management Fee (3.5% of EGI) ($1.25) ($13,210) TOTAL OPERATING EXPENSES ($6.23) ($65,879) 

NET OPERATING INCOME $300,221

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.

Shoppes on memorial | 8

  100% rent roll Leased until 2021

TENANT INFO LEASE TERMS RENT SUMMARY COMMENTS

Monthly Annual Monthly Tenant Sq. Ft. Percent of GLA Term Comments Rent Rent Rent/FT Starbucks 1,908 18.05% 2/1/2016 1/31/2026 $5,700.00 $68,400.00 $2.99 # 10% cam admin Opened in Feb 16 Increase 2/1/2021 1/31/2026 $6,270.00 $75,240.00 $3.29

Starbucks does have early termination right at 60 Option 1 2/1/2026 1/31/2031 $6,897.00 $82,764.00 $3.61 months for a fee of $71,546 + unamortized Tis. Option 2 2/1/2031 1/31/2036 $7,586.70 $91,040.40 $3.98

Mattress Warehouse 4,926 46.61% 5/1/2016 4/30/2026 $10,673.00 $128,076.00 $2.17 # 5% management on gross rent - 10% cam admin Open in May 16 - rent commencement in Sept 16 Increase 5/1/2021 4/30/2026 $11,288.75 $135,465.00 $2.29 Option 1 5/1/2026 4/30/2031 $12,696.77 $152,361.24 $2.58 Option 2 5/1/2031 4/30/2036 $14,285.40 $171,424.80 $2.90

Sport Clips 1,415 13.39% 3/1/2016 2/29/2021 $3,006.88 $36,082.56 $2.13 # 5% management on gross rent - 15% cam admin Opened in Mar 16 Increase 3/1/2018 2/29/2019 $3,067.01 $36,804.12 $2.17 Increase 3/1/2019 2/29/2020 $3,128.33 $37,539.96 $2.21 Increase 3/1/2020 2/29/2021 $3,190.83 $38,289.96 $2.26 Option 1 3/1/2021 2/29/2026 $3,254.50 $39,054.00 $2.30 Option 1 Increase 3/1/2022 2/29/2023 $3,319.35 $39,832.20 $2.35 Option 1 Increase 3/1/2023 2/29/2024 $3,386.57 $40,638.84 $2.39 Option 1 Increase 3/1/2024 2/29/2025 $3,453.78 $41,445.36 $2.44 Option 1 Increase 3/1/2025 2/29/2026 $3,523.35 $42,280.20 $2.49 Option 2 3/1/2026 2/29/2031 FMV FMV FMV

Chipotle 2,320 21.95% 3/1/2016 2/29/2026 $6,283.33 $75,399.96 $2.71 4% management on gross rent Opened in Mar 16 Increase 3/1/2021 2/29/2026 $6,911.67 $82,940.04 $2.98 Option 1 3/1/2026 2/29/2031 $7,601.87 $91,222.44 $3.28 Option 2 3/1/2031 2/29/2036 $8,361.67 $100,340.04 $3.60

CARMAX - Sign 3/1/2016 2/29/2026 $291.67 $3,500.00 paying rent Increase 3/1/2021 2/29/2026 $320.83 $3,850.00

Current Totals: 10,569 100.00% $25,954.88 $311,458.52 $29.47 Occupied 10,569 100.00% Vacant 0 0.00% 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. Shoppes on memorial | 9 tenants

The world’s #1 specialty coffee retailer, Mattress Warehouse carries top quality Starbucks has more than 12,521 coffee shops mattresses that are brand new and factory in the US. The outlets offer coffee drinks and sealed by the manufacturer. With the Mattress food items, as well as roasted beans, coffee Warehouse Price Match Guarantee, they offer accessories and teas. Starbucks markets its their customers the best prices available for coffee through grocery stores and licenses its their mattresses. Mattress Warehouse’s main brand for other food and beverage products. focus is customer service. They have a sales Starbucks plans to continue its rapid expansion staff that is trained to listen to each customer, of retail operations, grow its specialty sales and addressing individual needs and concerns to selectively pursue opportunities to leverage provide a positive sleep experience. Mattress the Starbucks brand through the introduction Warehouse opened its first store in November of new products and the development of new 1989 in Frederick, MD. Today, there are over 190 distribution channels. convenient Mattress Warehouse store locations.

GROSS REVENUE NET income $19.1 Billion $2.76 Billion

Shoppes on memorial | 10 tenants

Chipotle Mexican Grill, Inc., founded in 1993, Sport Clips was founded in Austin in 1993 and is a global chain of “fast casual” restaurants. It is now one of the nation’s fastest-growing hair is best known for its large burritos, assembly care chains with over 1,400 franchise locations line production and use of the very best in all 50 U.S. states and Canada. Average store sustainably raised ingredients. Chipotle has sales are significantly higher than competitors, over 1,724 locations in 43 states, the District with annual same store sales growth of 7% to of Columbia, Canada, England, Germany and 10% for years 2010-2014. Sport Clips focuses on France. Chipotle restaurants are company- a well-defined niche in the hair cutting industry owned rather than franchised, and they have designed specifically for men and boys. Sports over 45,340 employees. Chipotle went public memorabilia and logo items are displayed to on the New York Stock Exchange in 2006. create an experience men look forward to.

GROSS REVENUE GROSS REVENUE NET income $4.5 Billion $2.9 Billion $307 Million $2.9 Billion

Shoppes on memorial | 11 demographics & regional map

Population

1-Mile 3-Mile 5-Mile 2010 4,479 41,933 91,845 2015 4,721 45,088 96,276 SUBJECT 2020 4,986 48,062 101,018 PROPERTY

2015 Household incomes

1-Mile 3-Mile 5-Mile Average $59,816 $62,685 $57,249

Top Employers in greenville

Albemarle Sound Employer # of Employees* Vidant Medical Center 6,857 raleigh East Carolina University 5,392 greenville Pitt County Public Schools 2,754

DSM 1,500 85 Miles Pamlico River 1 Hr 20 Mins *Approximate

Shoppes on memorial | 12 location

[ east carolina university campus]

About greenville

Greenville is the 10th largest city in North Carolina and the seat of Greenville-Pitt County, which is centrally situated to serve the largest concentration of population and industry in eastern North Carolina (more than 812,000 people within 45 miles).

In January 2008 and January 2010, Greenville was named one of the nation’s “100 Best Communities for Young People” by the America’s Promise Alliance. In June 2012, Greenville was ranked in the top ten of the nation’s “Best Small Places For Business And Careers” by Forbes Magazine. In 2010 Greenville was ranked twenty-fourth in mid-city business growth and development by Forbes Magazine.

The city’s industry historically was centered around the sale and processing of tobacco, Greenville is Home to east carolina but today the major industries are health care, education and manufacturing. Vidant university Medical Center, the flagship hospital for Vidant Health and the teaching hospital for the Brody School of Medicine, serves as Greenville’s largest employer. East Carolina University, the third-largest university and fastest-growing campus in the University of North Carolina system, is Greenville’s second largest employer.

Greenville is the premier shopping destination for the Inner Banks area due its to many big-box retailers and specialty shopping centers that are located within the city. Some of these large centers include Greenville Mall, University Commons, Lynncroft and Arlington Village.

Shoppes on memorial | 13 Large student body in greenville

statistics statistics total students total students

Undergraduates 23,039 81.5% TOTAL Credit Students 12,108 100% Graduates 5,250 18.5% TOTAL 28,289 100% Faculty and Staff Faculty and Staff Full-time Faculty 234 Academic Staff 2,004 Part-time Faculty 375 Administrative Staff 3,603 Full-time Staff 240 TOTAL 5,607 Part-time staff 156 TOTAL 1,005

AcrEage Acreage

Main Campus 530 Main Campus 200+

9 Mins 4 Miles

Shoppes on memorial | 14 photos

Adjacent retailers include mcdonald’s, zaxby’s, sheetz gas, dairy queen & CVS

Shoppes on memorial | 15 A unique HUMAN The capital pacific experience - our daily commitment to our clients RESULTS-DRIVEN client experience [ www.CapitalPacific.com ] Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. Dave Lucas Joe Caccamo chris kostanecki zeb ripple [email protected] | (415) 274-7390 [email protected] | (415) 274-7394 CA BRE# 01389761 CA BRE# 0119110 chris peters john andreini rick sanner bob sanner In conjunction with NC Licensed Broker: zandy smith gregg steele Stuart Mullen, Commercial Real Estate Carolina, LLC | [email protected] | (704) 661-9800 jack navarra karla zens