RETAIL INVESTMENTSSUBJECT PROPERTY the Site Is Identified As Taxnnn Parcel NET 4589- 74LEASE-9173-0000 Andin the NET Cabarrus Leasecounty Tax Office
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November 18, 2019 Concord Mills Retail Strip Center - Concord, NC INTRODUCTION This section identifies the property being appraised, including the location, ownership history, date(s) of the appraisal, property rights, intended user and use, and type(s) of value. This section also identifies the parameters of the report, including describing the sources and extent of research and any limitations to the opinion(s) of value. PROPERTY IDENTIFICATION The property appraised in this report is an existing, retail strip center located at 8031 Concord Mills Boulevard, ConcordINTERNATIONAL, Cabarrus County, NorthREAL Carolina ESTATE28027. The propertySINCE is1908 located outside the City ofM Concord A Rin theK City E ofT Concord I N jurisdictionG M for taxesE M and O zoning. R A N D U M RETAIL INVESTMENTSSUBJECT PROPERTY The site is identified as taxNNN parcel NET 4589- 74LEASE-9173-0000 ANDin the NET Cabarrus LEASECounty Tax Office. According to public records, the site contains 1.76 acres, or 76,666 square feet. The improvements consist of 9,200 rentable square feet of space in one (1), one-story retail strip center building(s) constructed in 8031 2000CONCORD. MILLS BLVD., CONCORD, NORTH CAROLINA, 28027 (IN FRONT OF CONCORD MILLS MALL) ZAWTOCKIMUNN 1 ZM1136_APP MARKETING MEMORANDUM Braun International Real Estate (“Agent”) has been engaged as the Exclusive Agent for the sale by the Owner of the Property. The Property is being offered for sale in an “As Is, Where Is” condition, and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller. The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the Confidentiality Agreement furnished by Agent prior to delivery of this Offering Memorandum. The enclosed materials are being provided solely to facilitate the prospective investor ’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, offers, employees, shareholders, partners or directors, as to the accuracy or completeness of the information contained herein. All interested parties shall make their own measurements of the property or engage a third party to verify any and all measurements of the property contained herein. This marketing brochure has been prepared to provide summary unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject Property. The information contained herein is not a substitute for a thorough due diligence investigation. Braun International Real Estate has not made any investigation and makes no warranty or representation with respect to the income or expenses for the subject Property, the size and square footage of the Property and improvements, the presence or absence of contaminating substances, PCB’s, or asbestos. The compliance with Local, County, State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant ’s plans or intentions to continue its occupancy of the subject Property. All potential buyers must take appropriate measures to verify all of the information set forth herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy of completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projects, and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for Sale at any time and for any reason. Seller and Agent expressly reserve the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/ or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until the binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations thereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent. By accepting this marketing brochure, you agree to release Braun International Real Estate, and the representing agent(s), and hold them harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/ or purchase of this Property. PAGE | 2 INTERNATIONAL REAL ESTATE SINCE 1908 1 Investment Overview 2 Property Overview 3 Sale Information RETAIL INVESTMENTS 866.568.6638 ext. 100 NNN NET LEASE AND NET LEASE BraunCo.com 8031 CONCORD MILLS BLVD., CONCORD, NORTH CAROLINA, 28027 DRE# 01912556 (IN FRONT OF CONCORD MILLS MALL) PAGE | 3 INTERNATIONAL REAL ESTATE SINCE 1908 November 18, 2019 Concord Mills Retail Strip Center - Concord, NC Investment Overview Offering for sale AT&T and Denny's Investments 1 BUILDING EXTERIOR 8031 Concord Mills Blvd, Concord, North Carolina, 28027 INVESTMENT HIGHLIGHTS • Cap rate: 7.25% • Annual Rent: $417,270 • AT&T Rent: $193,270 Annually - Net Lease • AT&T Lease current thru 2024 with 5 year extension to June 30, 2029 • Net Lease with a cap of $8.53 per sq. ft. of expenses reimbursement per year • Denny’s Lease: $224,000 Annually - NNN Lease • Denny’s Lease current thru 2029 with (2) five year extensions to Overview Investment 2039 • Rental Escalations: Yes • S&P Rating: BBB for AT&T • Listing price $5,750,000 BUILDING EXTERIOR ZAWTOCKIMUNN 24 ZM1136_APP PAGE | 4 INTERNATIONAL REAL ESTATE SINCE 1908 November 18, 2019 Concord Mills Retail Strip Center - Concord, NC BUILDING EXTERIOR PAGE | 5 INTERNATIONAL REAL ESTATE SINCE 1908 BUILDING EXTERIOR ZAWTOCKIMUNN 24 ZM1136_APP PROPERTY SUMMARY THE OFFERING Property Name AT&T and Denny's 8031 Concord Mills Blvd Property Address Concord, North Carolina 28027 Property Type Retail Outparcel Pad APN 4589-74-9173-0000 Constructed in 2000, partly renovated Year Built; Year Renovated in 2009 for Denny’s Land Area 1.76 acres – 76,666 SF Building Size 9,200 SF Leasable Area The property is an outparcel of Concord Mills Shopping Center which is one of North Carolina’s largest tourist Number of Stories Single Story attractions with over 200 stores, restaurants, entertainment, Adjacent Properties All Retail 26,000SF indoor aquarium. Near the Charlotte Motor Investment Class A Speedway and 10+ miles from uptown Charlotte. The mall is reported to have over 20 million visitors per year. Parking Spaces 105 Overview Investment Parking Ratio 10.94 C-2, General Commercial District – Zoning Office, Medical, Retail Utilities All municipal utilities are available Traffic signal nearby which enhance Signalized Intersection access to the property PAGE | 65 INTERNATIONAL REAL ESTATE SINCE 1908 November 18, 2019 Concord Mills Retail Strip Center - Concord, NC INCOME APPROACH The income approach is an appraisal procedure, which capitalizes an expected income stream into an indication of market value. The underlying premise is that an informed purchaser will pay no more for the subject property than he would have to pay for another property, which has an income stream of comparable quantity, quality and durability. Direct Capitalization is typically of primary importance for properties with stable income streams, or income streams, which have changes in income in a straight line over a predictable time frame. A discounted cash flow analysis is best suited to measure the net present value of volatile income stream. This method of valuation is typically of primary significance in the analysis of multi-tenant properties, properties undergoing lease-up, properties with significant changes in the income stream over the anticipated holding period or properties wherein the improvements have either a short-term lease or a short remaining economic life. In our discussions with broker’s active in the marketing of retail strip centers, we identified that the majority of stabilized facilities were bought and sold based on the capitalization of current operations. METHODOLOGY We estimated the Leased Fee value by direct capitalization of the stabilized net operating income. The property is being valued as a single-user retail strip center. We also perform a discounted cash flow (DCF) analysis over a typical 10-year holding period.