Update 11/17/2009 REAL ESTATE JET TRIP CHECKLIST – Lynnhaven Mall, NEQ Lynnhaven Parkway & S Lynnhaven Road, Virginia
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REAL ESTATE JET TRIP CHECKLIST – Lynnhaven Mall, NEQ Lynnhaven Parkway & S Lynnhaven Road, Virginia Beach, VA – Date: November 17, 2009 1. Reasons that this site is being shown: a. Potential build-back location in a regional enclosed mall in Virginia Beach. General Growth Properties reports Lynnhaven Mall non-anchor sales for rolling 2009 of approximately $485 per square foot, down from $500 per square foot in 2008. b. Co-Tenancy: J.C.Penney, AMC Theatres, Macy’s, Dick’s Sporting Goods, Barnes & Noble. The former 2 leevl Lord & Taylor is 120,000 sf on two levels and still available for lease. c. The subject property is conveniently located at the NEQ of Lynnhaven Parkway and S Lynnhaven Road, approximately 1.6 mile south of interchange 19 off Interstate 264 in Virginia Beach. d. Traffic Counts are 39,000 AADT (2008) on Lynnhaven Pkwy South of International Pkwy, 45,000 AADT (2008) on Lynnhaven Pkwy North of International Pkwy 2. Comments –Virginia Beach, VA (3 miles): a. Prime Target Market: The City of Virginia Beach (population 436,270, 2.0% growth rate) is located within the Virginia Beach-Norfolk-Newport News MSA (population 1,649,457), 105 miles southeast of Richmond. Virginia Beach has a civilian workforce of 200,000 while the MSA maintains a workforce of 707,000. Additionally, the region is home to 12 military bases, with an active duty population of 95,000. Located in Virginia Beach alone are Naval Air Station Oceana, Naval Surface Warfare Center Dam Neck, Naval Amphibious Base Little Creek, and Fort Story, totaling 32,000 military and civilian employees. Other than military, the occupational mix in Virginia Beach consists of retail and wholesale trade (25%) as well as agribusiness and tourism related occupations. Other contributions to the workforce and additional high quality labor not included in the unemployment rate include the 40,000 – 50,000 military spouses in the Virginia Beach MSA, the 13,000 military personnel that exit service each year, 8,500 college graduates each year from area schools, and the 13,500 commuters from northeastern North Carolina. b. Typical Housing Prices: The median home sales price for single family new construction homes in Virginia Beach in 2009 is $262,822. The median home sales price for existing single family homes is $219,801. c. Median Income: The current 3 mile Median HH Income is $55,279. The Median HH Income for the City of Virginia Beach is $62,948. d. Top employers in Virginia Beach, VA: 1. United States Department of Defense 32,000 2. Virginia Beach City Public Schools 10,000 3. Virginia Beach City 6,000 4. Sentara Medical Group 4,646 5. SAIC/AMSEC 2,500 6. GEICO 2,200 7. AMERIGROUP 2,100 8. Navy Exchange Service Command 1,800 e. Daytime Employment: 56,795 within 3 miles Update 11/17/2009 f. Unemployment Rate: 5.3% within 3 miles compared to 6.6 % for the state of Virginia g. Female Median Age: 33.8 years h. 60.5 % white collar i. Universities – 1. Tidewater Community College-Virginia Beach Campus (4.0 miles from site): Founded in 1968 as a part of the Virginia Community College, Tidewater Community College is the largest provider of higher education and workforce development services in Hampton Roads, enrolling nearly 40,000 students annually. The 35th largest community college in the nation, TCC is among the 50 fastest-growing large two-year institutions in the United States. The college’s economic impact on the South Hampton Roads region approaches half a billion dollars annually; it generates some 3100 jobs in the local economy. For each $1 in public support provided to it, TCC generates $3.54 in revenue for the region. 2. Regent University (10.0 miles from site): Established in 1978 by Dr. M.G. “Pat” Robertson, Regent University is the nation’s academic center for Christian thought and action. There are 2,134 full-time students and 2,806 part-time students enrolled at Regent. Regent University offers 70+ graduate and undergraduate degrees available on campus and online. 3. Norfolk State University (13.5 miles from site): A four-year, state-supported, coed, liberal arts, historically black university located in Norfolk, VA with over 6,000 students. Norfolk State offers 2 Doctorate and 15 Master's degrees, including Master's degree programs in Optical Engineering, Computer Science, and Criminal Justice. The school also offers 36 undergraduate degrees, with a new degree being offered in Optical Engineering. 4. Old Dominion University (17.8 miles from site): Located in historic Norfolk, VA on over 180 acres. Initially founded in 1930 as a division of the College of William and Mary, Old Dominion University, with over 21,000 students, has recently grown into its own over the past several years focusing on commerce, international affairs and culture due to the University’s close proximity to a major international maritime commerce center. With marine and aerospace activities of VA concentrated in Hampton Roads, the university has a significant commitment to science, engineering and technology, specifically in marine science, aerospace and other fields of major importance to the region. 5. Hampton University (26.0 miles from site): Hampton University, with over 6,000 students, is a privately-endowed, non-profit, non-sectarian, co-educational, historically black university. Located in southeastern Virginia, Hampton University has grown into a comprehensive university providing a broad range of technical, liberal arts, pre-professional, professional, and graduate degree programs. j. Points of Interest: • Naval Air Station Oceana—Commissioned in 1943, Naval Air Station Oceana has an annual payroll exceeding $761 million. An additional $400 million of goods and services is provided, with a total economic impact on the Hampton Roads area of approximately $1.5 billion. The station is located on 5,916 acres, has 300 total aircraft and has buildings valued at $823 million in plant replacement value. The total Navy community, including family members, numbers approximately 20,000 people. NAS Oceana is the largest employer in Virginia Beach. Updated 11/17/2009 3. Site Location: Existing Dillard’s site totals 200,000 square feet on two levels. The entire Lynnhaven Mall has a GLA of over 1,170,000 square feet located at the NEC of Lynnhaven Parkway and Lynnhaven Road in Virginia Beach, VA. 4. Site Details: a. Developer: General Growth Properties b. Site: Existing Dillard’s totals 200,000 square feet on two levels. The entire Lynnhaven Mall has a GLA of over 1,170,000 square feet of retail located at the NEC of Lynnhaven Parkway and Lynnhaven Road in Virginia Beach, VA. The site includes Macy’s (199,863 square feet), J.C.Penney (150,434 square feet), AMC (75,044 square feet), Dick’s Sporting Goods (52,071 square feet), 480,128 square feet of small shop space, and 6,300 parking spaces. c. Co-Tenancy: Macy’s, J.C.Penney, AMC Theaters, Dick’s Sporting Goods, Barnes & Noble d. Other Retail: Toys ‘R Us, The Sports Authority, Marshall’s, Value City Furniture 5. Transaction Status: a. The economics for a P09: $______ million NPV with ____% store IRR b. Costs: c. Challenges: Operating a 200,000 square foot store on two levels. Attached to an enclosed, regional mall. 6. Costs: • Total land and site-work costs: 7. Comps: • Lowe’s Home Improvement, 149,000 square feet of existing buildings, 717-745 Independence Blvd, Virginia Beach, VA, purchased 12.15 acres on 12/28/2007: Land: $13,500,000 ($1,111,111.11 per acre, $90.64 per square foot of building, and $25.51 per square foot of land) • Michael Sifen Inc., 126,850 square feet of existing building, 4725 Virginia Beach Blvd, Virginia Beach, VA, purchased 12.35 acres on 7/22/2008: Land: $13,000,000 ($1,093,117.41 per acre, $102.48 per square foot of building, and $24.17 per square foot of land) • McLeskey & Associates, 103,000 square feet, 2866 Virginia Beach Blvd, Virginia Beach, VA, Available for Lease, $12.00 per square foot, $2.50 NNN 8. Site Work and Planned Infrastructure: a. Primary access: One (1) traffic signal with full movement at Lynnhaven Parkway and International Parkway, one (1) traffic signal with full movement at Lynnhaven Parkway and Water Spout Way, and one (1) traffic signal with full movement at Lynnhaven Parkway and Lishelle Place. b. Secondary access points: Two (2) traffic signals with full movement on S Lynnhaven Road. Two (2) access points to Lynnhaven Mall Loop at the north end of the mall at Braves Trail and Lynnhaven Mall Loop and N Mall Road and Lynnhaven Mall Loop. c. Pylon sign: None d. Highway improvements: Updated 11/17/2009 • Widening of Lynnhaven Parkway from Holland Road to Lishelle Place to six lanes (currently four lanes). Construction began in January 2008, and completion is slated for May 2011. Total cost at $24.9 million. e. Zoning: B-2 Updated 11/17/2009 Lynnhaven Mall - Virginia Beach, Virginia LEGEND Existing Target Locations 1 Potential Target Locations KM KM Kmart KO Kohl’s W Walmart 1 Home Depot 1 2 Lowe’s W 1 1 Bj’s Wholesale Club 2 2 2 Costco KO KM 1 KM 1 3 Sam’s Club 1 3 Sup-Regional Malls KO SITE W Lynnhaven Mall 2 1 KM W 1 KM KO 3 W KO 1W Map Prepared by Next Realty Mid-Atlantic, LLC 1750 Old Meadow Rd Suite 250 McLean, Virginia 22102 703.442.4500 Main 703.442.8818 Fax www.nextrealty.com 0 mi 2 4 6 Copyright © and (P) 1988–2008 Microsoft Corporation and/or its suppliers.