Walmart Neighborhood Market

walmart neighborhood market

A octual st re guaranteed by AA rated walmart possible 3.5% long-term debt 20 year lease growing city near atlanta For more info on this opportunity please contact: Opened january 21st Rick Sanner Bob Sanner 955 Lafayette Parkway, LaGrange, GA 30241 [email protected] | (415) 274-2709 [email protected] | (415) 274-2717 CA BRE# 01792433 CA BRE# 00869657

Capital Pacific collaborates. Click here to meet the rest of our San Francisco team. In conjuction with: Steve Miller of Miller Realty Services, Inc. smiller@millerrealtyservices | (770) 409-0266 walmart neighborhood market, in lagrange, ga Investment Highlights

The Neighborhood Market is Walmart’s smaller grocery concept, which was launched in 1998 and gives customers a more convenient shopping experience than the typical Walmart Supercenter. The Supercenter is typically 160,000 square feet compared to the Neighborhood Market, which is approximately 40,000 square feet and has a fuel center for increased convenience in addition to a drive-thru pharmacy. Walmart’s strategy is to have a total of 500 stores operating by 2015 and build hundreds more every year for the foreseeable future. With recent interest rates, 20-year fixed rate debt on this property was quoted in early February at 3.5%.

PRICE: $12,460,000 RENTABLE SF. . . . 41,117 SF LEASE TYPE ...... Modified NNN CAP: 5.00% LAND AREA. . . . . 7.3 Acres YEAR BUILT. . . . . 2015 lease highlights New 20 year lease began January 21, 2015 Rent increases 10% and 5% in the options Guarantor is one of the strongest companies in the world location highlights Traffic counts of 17,000+ on multi-laneL afayette Parkway There is a traffic signal at Calumet Center Road for ingress/egress from Lafayette Parkway LaGrange is one hour south of Atlanta on I-85, with a population of 30,000+ LaGrange is a major transportation hub for I-85 and I-185 The LaGrange micropolitan area has increased in population from 59,000 in 2000 to an estimated 69,000 in 2013 - a 17% increase (well above the state and national averages)

Investment summary The combination of basic grocery store use, long lease, strong traffic counts, unsurpassed credit, solid area growth, and signalized entrance make this a very attractive investment opportunity. walmart neighborhood market | 2 A octual st re Actual store

Income & Expense

PRICE $12,460,000

Cap Rate: 5.00%

Total Rentable Area (SF): 41,117

Lot Size (Acres): 7.30

STABILIZED INCOME Per Square Foot

Scheduled Rent $15.15 $623,000

Effective Gross Income $15.15 $623,000

LESS Per Square Foot

Taxes $0.00 A octual st re Insurance $0.00

Total Operating Expenses $0.00

EQUALS NET OPERATING INCOME $623,000

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.

walmart neighborhood market | 3 Rent Roll

TENANT INFO LEASE TERMS RENT SUMMARY

Current Monthly Yearly Monthly Yearly Tenant Name Sq. Ft. Term Rent Rent Rent Rent/FT Rent/FT Walmart Neighborhood Market 41,117 2/1/2015 1/31/2035 $623,000.00 $51,916.67 $623,000.00 $1.26 $15.15

2/1/2035 1/31/2040 Option 1 $57,108.33 $685,300.00 $1.39 $16.67

2/1/2040 1/31/2045 Option 2 $62,819.17 $753,830.00 $1.53 $18.33

2/1/2045 1/31/2050 Option 3 $65,960.13 $791,521.50 $1.60 $19.25

2/1/2050 1/31/2055 Option 4 $69,258.13 $831,097.58 $1.68 $20.21

Current Totals: 41,117 $623,000.00 $51,916.67 $623,000.00 $1.26 $15.15

Representative Photos walmart neighborhoodA o cmtuaraklets t| 4re Site Plan

RAILROAD

DETENTION

VACANT FUTURE VACANT DEVELOPMENT Station almart Fueling W

109 Lafayette Parkway

Calumet Center

Road U.S. POST OFFICE BANK Aerial 14

LAGRANGE PLAZA organ St M

Commerce Dr

LaGrange High School LAGRANGE MALL S Davis Rd

109 Lafayette Pkwy 109

LaGrange College 950 Lafayette Pkwy

14 sITE LOCATION organ St M Key Lease Information

Tenant Wal-Mart Stores East, LP (This is a wholly-owned Walmart subsidiary) guarantor Wal-Mart Stores, Inc. (AA rated; the parent company)

Date opened January 21, 2015

landlord responsibilities Landlord shall be responsible for the cost and expense of maintenance, repair, and replacement of structural components only (not the roof). Expenses related to the roof , parking lot, and all other parts of the property are the responsibility of the tenant.

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Walmart Neighborhood Market

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About walmart neighborhood market Walmart Neighborhood Market is a chain of grocery stores launched NUMBER OF locationS 11,000+ walmart stores, inc. by Walmart in 1998. With over 359 Neighborhood Markets in the United States, they feature a wide variety of products, including fresh FISCAL YEAR 2014 SALES is ranked #1 in the produce, deli foods, fresh meat and dairy items, health and beauty $476 BILLION fortune 500 and is easily aids, one-hour photo and traditional photo developing services, S&P RATING the largest grocery drive-thru pharmacies, stationery and paper goods, pet supplies, AA retailer in the U.S. and household chemicals. Walmart Neighborhood Markets were designed to create easier parking, less crowded aisles, and quicker checkouts than at Walmart Supercenters. Walmart is the world’s biggest retailer and largest employer - with over 2.2 million full and part-time workers worldwide, including more than 1.4 million in the U.S. With more than $476 billion in total revenues, Walmart is known for its low pricing and wide selection of goods. The company has 11,302 stores in 27 countries.

walmart neighborhood market | 8 Walmart Dominance walmart is easily the largest grocery retailer - and its lead is increasing o verALL retailing In 2012 Walmart had 55% (up from 53% in 2011) of its sales from grocery, thus indicating that Walmart had grocery sales in 2012 of Walmart, with 2013 sales of $476 billion, is easily the $244 billion. Comparatively, the largest grocery chain, Kroger, in largest retail chain in the world. The second largest U.S. 2012 had sales of $98 billion. chain is Costco, with sales of $110 billion, less than one quarter of the Walmart sales. Costco’s sales are actually walmart is Walmart’s grocery sales were initiated, starting from zero, a few less than one half of Walmart’s grocery sales. simply the top decades ago when it began adding grocery departments to its new strores, thus adding to square footage and calling these Credit name in grocery, in overall larger units “superstores.” Walmart has the highest S&P credit rating of any retailing, credit retailer: AA. Credit ratings of other strong retailers such In 1998, Walmart began building stand-alone grocery stores called as Lowe’s, Costco, Walgreens, and CVS are significantly rating, and size Walmart Neighborhood Market. Survey after survey has shown lower. Walmart also has a higher rating than any U.S. Walmart to be the leader in low priced groceries. For example, bank. from Supermarket News, July 16, 2014, “Walmart’s [groceries] were the least expensive and had the lowest-priced items during size mystery shops conducted recently at a Los Angeles Walmart, Walmart is #1 in the Fortune 500 - the largest company Vons, Ralphs, and Target.” in America

walmart neighborhood market | 9 A octual st re Walmart In The News

Exerpts from article:

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Why Walmart Suddenly Thinks Smaller Is Better

june 16, 2014 - By Walter Loeb

“[Previously, Walmart management believed that] customers preferred the larger assortment in the superstores.”

“[But at Walmart now] the convenience of quick shopping has become front and center. Today there is a real focus at Walmart on smaller stores. Two hundred new Neighborhood Market units will open this year...there could be thousands in five years.”

“[The Walmart CEO] is stressing that the customer wants the convenience of a quick shopping trip to a [Neighborhood Market].”

The Additional stores mentioned by forbes will increase walmart’s grocery dominance

Representative Photos

walmart neighborhood market | 10 Actual store Location & Demos

Lagrange, GA Overview A growing city LaGrange, in Troup County, is 60 miles southwest of Atlanta on I-85. The city population was 30,452 in the 2013 census estimate. Interstate 185 branches from Population Interstate 85 at LaGrange and continues directly south to Columbus. Interstate 85 3-Mile 5-Mile 10-Mile continues southwest into Alabama. 2010 28,995 37,065 56,608 LaGrange and Troup County boast a diverse economic base including some well- 2013 29,880 38,222 57,833 known Fortune 500 companies. Troup County is becoming one of the nation’s 2018 31,616 40,388 60,538 leaders in advanced manufacturing with nationally and internationally-owned firms. 2013 Household incomes For instance, Kia completed North America’s first and onlyK ia Motors manufacturing 3-Mile 5-Mile 10-Mile plant in late 2009 on 2200 acres in West Point (17 miles south of LaGrange). Average $43,276 $46,381 $50,802 Kia Motors employs more than 3,000 and is the U.S. home of the Kia Optima and Kia Sorento. Kia is a sister company of Hyundai, and this plant is also the U.S. home of the Hyundai Santa Fe. It has the capacity to manufacture 360,000 vehicles per year. Because this plant is close to capacity it operates three shifts. The Optima sedan is Top Employers in lagrange Kia’s best-selling vehicle of its eight models, selling worldwide at a rate of about one Troup County Schools million per year. The Sorento is a seven seat CUV, or crossover utility vehicle, a variant Miliken & Company of an SUV. It is also a big seller, 600,000 per year worldwide. The Hyundai Santa Fe is similar to the Sorento, a CUV, and is likewise a significant seller.T he Kia plant was Kia Motors Manufacturing Georgia, Inc. built just off I-85 on farmland making it easy for many employees to commute to the Interface Flooring Systems, Inc. plant from LaGrange, which is the nearest significant city. LaGrange Troup County Hospital Authority LaGrange is home to LaGrange College, the oldest private college in the state and ranked in the top 10 as one of the “best values” among Southern comprehensive colleges by U.S. News & World Report. LaGrange’s close proximity to West Point Lake, a few miles to the west, makes it a tourist destination for bass fisherman and water walmart neighborhood market | 11 sports enthusiasts. Regional Map LaGrange GA The growing city Location of lagrange is at a major intersection of two interstates

walmart neighborhood market

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walmart neighborhood market | 12 A octual st re A unique HUMAN A octual st re The capital pacific experience - our daily commitment to our clients RESULTS-DRIVEN client experience [ www .capitalPacific .com ]

Rick Sanner Bob Sanner [email protected] | (415) 274-2709 [email protected] | (415) 274-2717 CA BRE# 01792433 CA BRE# 00869657 In conjuction with: Steve Miller of Miller Realty Services, Inc. smiller@millerrealtyservices | (770) 409-0266