Fortunoff Backyard Store Sale-Leaseback Portfolio Can Be Purchased Separately Or As Portfolio True Nnn Lease
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STATEN ISLAND FORTUNOFF BACKYARD STORE SALE-LEASEBACK PORTFOLIO CAN BE PURCHASED SEPARATELY OR AS PORTFOLIO TRUE NNN LEASE 2 NY AND 1 NJ LOCATIONS Investment Highlights Contact the THE OFFERING is a sale-leaseback opportunity to purchase three Fortunoff Backyard team Stores located within the New York City MSA. The subject properties are located in Woodbridge, NJ; Riverhead, NY; and Staten Island, NY. Each location offers a new 10- JOE CACCAMO year true NNN lease featuring 10% increases every 5 years. The Tenant is responsible [email protected] for all maintenance of the property. The Landlord pays the property taxes and is fully PH: 415.274.7394 reimbursed by the Tenant. CA DRE# 01191110 THE SUBJECT PROPERTIES are located in strategic, gateway locations within core New York metro markets. The properties enjoy excellent synergy with strong neighboring tenants and are well located along major commercial corridors. Each property benefits from outstanding demographics, including dense populations and high average household incomes near $100,000. DAVID LUCAS FORTUNOFF BACKYARD STORE is an outdoor furniture and accessory retailer with 34 JULIUS M. FEINBLUM REAL ESTATE, INC. locations in New York, New Jersey, Connecticut, Delaware, Pennsylvania, and Florida. [email protected] Fortunoff is one of the most recognizable names in the outdoor furniture industry to PH: 516.844.8890 the consumers in the Northeast. Fortunoff is majority owned by Chair King Backyard NY LIC.# 40LU0891694 Store, one of the largest outdoor retailers in the United States. Fortunoff offers a vast assortment of high quality patio furniture, backyard accessories, grills, umbrellas, rugs, and more. RICHARD WEISS JULIUS M. FEINBLUM REAL ESTATE, INC. [email protected] WOODBRIDGE PH: 516.844.8890 NY LIC.# 30WE0850568 JULIUS M. FEINBLUM REAL ESTATE, INC. NJ LIC.# 9483799 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. 34 LOCATIONS IN NEW YORK, NEW JERSEY, CONNECTICUT, DELAWARE, PENNSYLVANIA, AND FLORIDA 2 Tenant Overview ABOUT FORTUNOFF BACKYARD STORE Fortunoff Backyard Store is an outdoor furniture and accessory retailer with 34 locations in New York, New Jersey, Connecticut, Delaware, Pennsylvania, and Florida. Fortunoff is majority owned by Chair King, one of the largest outdoor retailers in the United States. Fortunoff offers a vast assortment of high quality patio furniture, backyard accessories, grills, umbrellas, rugs, and more. Chair King Backyard Store is the largest casual furniture retailer in Texas, offering the largest selection of casual furniture in the South, while maintaining over $20 million in inventory. There are currently 18 stores throughout Texas and growing. The company also operates Leisure Collections, a design showroom at the Houston Design Center. Fortunoff is one of the most recognizable names in the outdoor furniture industry to the consumers in the Northeast. The Chair King/Fortunoff group was ranked by Casual Living Magazine as #1 in the sale of outdoor furniture in the United States among specialty retailers. In 2016, Fortunoff Backyard Store and Chair King Backyard Store generated an estimated combined $123.6 million dollars in sales. REPRESENTATIVE INTERIOR PHOTO LOCATIONS IN NEW YORK, NEW JERSEY, CONNECTICUT, DELAWARE, This site plan is a rendering that has been created based on sources we believe to be reliable. We make PENNSYLVANIA, AND FLORIDA no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must 34 verify the information and bears all risk for any inaccuracies. 3 History of the Tenant & These Locations Fortunoff was a very large, famous department store retailer in NY established in 1922. The family sold the company to a private equity firm in 2005. The private equity firm did not operate the business well, and in 2009 the family repurchased their trade name and brand name Fortunoff. In 2009, they made a deal with operating partner, Houston, Texas-based Chair King Backyard Store. Chair King Backyard Store is the largest outdoor patio retailer in TX with 18 stores. The owners of Chair King and one of the principles of Fortunoff own the Real Estate being marketed together. Following are histories on each asset: RIVERHEAD – The property in Riverhead was a Patio Retailer named Kaufman Allied. The Kaufman Allied group retired and sold the property/business to Fortunoff. Fortunoff spent a significant amount of money to bring the building up to their current standards. STATEN ISLAND – This was an acquisition of a patio retailer, Montalbanos Pool and Patio, who also retired. WOODBRIDGE – This was a location that the property owner would not put money into. The building needed a tremendous amount of work, and the only financially viable solution was for Fortunoff to purchase the property and do their own improvements. The company continues to grow and will be opening locations in PA & NJ this year. The guarantor for these leases will be the parent entity (Furniture Concepts LLC) which operates all stores in the portfolio. Financials will be available upon receipt of a credible LOI. 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. 4 Strategic Locations NORTH FORK RIVERHEAD HAMPTONS BRONX LONG ISLAND QUEENS MANHATTAN BROOKLYN STATEN ISLAND (NYC) WOODBRIDGE ATLANTIC OCEAN JERSEY SHORE THE SUBJECT PROPERTIES are strategically located off major highways that connect to well-known beach towns. THE STATEN ISLAND PROPERTY services a dense New York borough with residents known for their backyard entertaining. THE WOODBRIDGE PROPERTY is located at the gateway to the Jersey Shore, a coastal region of New Jersey that encompasses 141 miles of oceanfront along the Atlantic Ocean. THE RIVERHEAD PROPERTY is located in a gateway community to Long Island’s famed Hamptons and North Fork beach communities at the terminus of the Long Island expressway (I-495). 5 Subject Properties Woodbridge, NJ Riverhead, NY Staten Island, NY SALE PRICE: SALE PRICE: SALE PRICE: $4,711,000 $3,556,000 $4,267,000 CAP RATE: CAP RATE: CAP RATE: $6.75% $6.75% $6.75% CLICK HERE FOR CLICK HERE FOR CLICK HERE FOR MORE INFO MORE INFO MORE INFO 6 Overview WOODBRIDGE FORTUNOFF BACKYARD 127 W KELLY ST, WOODBRIDGE, NJ 08840 $4,711,000 6.75% PRICE CAP LEASABLE SF LAND AREA LEASE TYPE 13,514 SF 1.04 ACRES TRUE NNN PRICE PSF NOI $348.60 $318,000 • New 10-year true NNN lease featuring 10% increases every 5 years • Located along U.S. 1, a major retail corridor in Woodbridge, where average traffic counts exceed 88,000 VPD • Neighboring tenants include Target, Nordstrom, Macy’s, Boscov’s, DICK’S Sporting Goods, Lord & Taylor, and more • More than 316,000 people with average household incomes This information has been secured from sources we believe to be reliable but we exceeding $106k within a 5-mile radius 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 7 inaccuracies. GARDEN STATE 193,730 PARKWAY Aerial - Woodbridge, NJ VPD HACKENSACK GOLF MERIDIAN COURSE HEALTH HOSPITAL 1 287 287 170,414 W KELLY VPD STREET RUTGERS STATE 1 UNIVERSITY 440 GOLF COURSE 95 ST. PETER’S HACKENSACK UNIVERSITY 87,307 215,030 MERIDIAN HOSPITAL HEALTH VPD VPD HOSPITAL PARKWAY 18 GARDEN STATE RUTGERS MIDDLESEX HEALTH ROBERT COUNTY MIDDLESEX WOOD HOSPITAL 1 COLLEGE COUNTY JOHNSON UNIVERSITY 95 GOLF COURSE 206,348 NEW YORK VPD CITY DEVRY 29 MILES UNIVERSITY GARDEN STATE 104,839 PARKWAY VPD 1 95 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 18 information. Buyer must verify the information and bears 8 all risk for any inaccuracies. Retail Aerial - Woodbridge, NJ PARSONAGE ROAD 88,490 VPD 1 MENLO AVENUE W KELLY STREET 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. 9 WOODBRIDGE Income & Expense - Woodbridge, NJ PRICE $4,711,000 Price Per Square Foot: $348.60 Capitalization Rate: 6.75% Total Rentable Area (SF): 13,514 Lot Size (AC): 1.04 STABILIZED INCOME PER SQUARE FOOT Scheduled Rent $23.53 $318,000 Effective Gross Income $23.53 $318,000 LESS PER SQUARE FOOT Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING INCOME $318,000 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. 10 Rent Roll - Woodbridge, NJ TENANT INFO LEASE TERMS RENT SUMMARY CURRENT MONTHLY YEARLY MONTHLY YEARLY TENANT NAME SQ. FT. RENT RENT RENT RENT/FT RENT/FT Fortunoff Backyard Store 13,514 1 5 $318,000 $26,500 $318,000 $1.96 $23.53 Woodbridge, NJ 6 10 $29,000 $348,000 $2.15 $25.75 TOTALS: 13,514 $318,000 $26,500 $318,000 $1.96 $23.53 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. 11 Site Plan - Woodbridge, NJ 13,514 1.04 RENTABLE SF ACRES GOLDEN STATE PARKWAY ELEMENTARY SCHOOL 194,470 NOT A PART VPD FORD AVENUE FORD AVENUE US HIGHWAY 1 US HIGHWAY VETERAN’S MEMORIAL HOME 10,999 VPD 1 1 US HIGHWAY W KELLY STREET W KELLY 88,490 VPD 1 PARSONAGE ROAD 1 US HIGHWAY MENLO AVENUE ELEMENTARY SCHOOL 1 This site plan is a rendering that has been created based on sources we believe to be reliable.