Offering Memorandum
ASHLEY FURNITURE HOMESTORE 700 Willard Dr • Green Bay, WI 54304 NON - ENDORSEMENT AND DISCLAIMER NOTICE
Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the 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 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. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
ASHLEY FURNITURE HOME STORE Green Bay, WI ACT ID Z0010414
2 NET LEASED DISCLAIMER
Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.
As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.
Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.
Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.
Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.
By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
3 DISCLOSURE TO NON-RESIDENTIAL CUSTOMERS
WISCONSIN REALTORS® ASSOCIATION 1 Prior to negotiating on your behalf the brokerage firm, or an agent associated with the firm, must provide you the 4801 Forest Run Road, Madison, WI 53704 2 following disclosure statement: 3 DISCLOSURE TO CUSTOMERS You are a customer of the brokerage firm (hereinafter Firm). The Firm is either an agent 4 of another party in the transaction or a subagent of another firm that is the agent of another party in the transaction. A Marcus & Millichap Real Estate 5 broker or a salesperson acting on behalf of the Firm may provide brokerage services to you. Whenever the Firm is Effective July 1, 2016 6 providing brokerage services to you, the Firm and its brokers and salespersons (hereinafter Agents) owe you, the 7 customer, the following duties: 8 (a) The duty to provide brokerage services to you fairly and honestly. 9 (b) The duty to exercise reasonable skill and care in providing brokerage services to you. 10 (c) The duty to provide you with accurate information about market conditions within a reasonable time if you request 11 it, unless disclosure of the information is prohibited by law. 12 (d) The duty to disclose to you in writing certain Material Adverse Facts about a property, unless disclosure of the 13 information is prohibited by law (see lines 42-51). 14 (e) The duty to protect your confidentiality. Unless the law requires it, the Firm and its Agents will not disclose your 15 confidential information or the confidential information of other parties (see lines 23-41). 16 (f) The duty to safeguard trust funds and other property held by the Firm or its Agents. 17 (g) The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the 18 advantages and disadvantages of the proposals. 19 Please review this information carefully. An Agent of the Firm can answer your questions about brokerage services, 20 but if you need legal advice, tax advice, or a professional home inspection, contact an attorney, tax advisor, or home 21 inspector. This disclosure is required by section 452.135 of the Wisconsin statutes and is for information only. It is a 22 plain-language summary of the duties owed to a customer under section 452.133(1) of the Wisconsin statutes. 23 CONFIDENTIALITY NOTICE TO CUSTOMERS The Firm and its Agents will keep confidential any information given to the 24 Firm or its Agents in confidence, or any information obtained by the Firm and its Agents that a reasonable person 25 would want to be kept confidential, unless the information must be disclosed by law or you authorize the Firm to 26 disclose particular information. The Firm and its Agents shall continue to keep the information confidential after the 27 Firm is no longer providing brokerage services to you. 28 The following information is required to be disclosed by law: 29 1. Material Adverse Facts, as defined in Wis. Stat. § 452.01(5g) (see lines 42-51). 30 2. Any facts known by the Firm or its Agents that contradict any information included in a written inspection 31 report on the property or real estate that is the subject of the transaction. 32 To ensure that the Firm and its Agents are aware of what specific information you consider confidential, you may 33 list that information below (see lines 35-41) or provide that information to the Firm or its Agents by other means. At a 34 later time, you may also provide the Firm or its Agents with other Information you consider to be confidential. 35 CONFIDENTIAL INFORMATION: 36 37 38 NON-CONFIDENTIAL INFORMATION (The following information may be disclosed by the Firm and its Agents): No representation is made as to the legal 39 validity of any provision or the adequacy 40 of any provision in any specific transaction. 41 (Insert information you authorize to be disclosed, such as financial qualification information.) 42 DEFINITION OF MATERIAL ADVERSE FACTS 43 A “Material Adverse Fact” is defined in Wis. Stat. § 452.01(5g) as an Adverse Fact that a party indicates is of such Copyright © 2016 by 44 significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable Wisconsin REALTORS® Association 45 party, that it affects or would affect the party’s decision to enter into a contract or agreement concerning a transaction 46 or affects or would affect the party’s decision about the terms of such a contract or agreement. Drafted by Attorney Debra Peterson Conrad 47 An “Adverse Fact” is defined in Wis. Stat. § 452.01(1e) as a condition or occurrence that a competent licensee 48 generally recognizes will significantly and adversely affect the value of the property, significantly reduce the structural 49 integrity of improvements to real estate, or present a significant health risk to occupants of the property; or information Marcus & Millichap Real Estate Services 50 that indicates that a party to a transaction is not able to or does not intend to meet his or her obligations under a 13890 Bishop’s Drive Suite 300 51 contract or agreement made concerning the transaction. Brookfield, WI 53005 52 NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and persons Matthew Whiteside 53 registered with the registry by contacting the Wisconsin Department of Corrections on the Internet at Phone: (608) 830-2500 | Fax: (608) 830-2510 54 http://www.doc.wi.gov or by telephone at 608-240-5830. 4 ASHLEY FURNITURE HOME STORE
OFFERINGOFFERING SUMMARY SUMMARY EXECUTIVE SUMMARY
OFFERING SUMMARY Price $9,495,000 MAJOR EMPLOYERS Net Operating Income $636,000 Capitalization Rate – Current 6.70% Price / SF $188.39 EMPLOYER # OF EMPLOYEES * Rent / SF $12.62 Schneider Resources Inc 16,700 Lease Type NNN Shopko 16,090 Gross Leasable Area 50,402 SF Shopko Holding Company Inc 15,000 Year Built / Renovated 2010 Schneider 3,819 Lot Size 3.42 acre(s) BELLIN MEMORIAL HOSPITAL 2,062 Nwtc 2,056 Georgia-Pacific 1,212 FINANCING Baycare Health Systems LLC 1,000 Loan Amount $6,646,500 Shopko Stores 990 Loan Type Financed - New Loan Loan to Value 70.00% City of Green Bay 957 Down Payment 30% / $2,848,500 Green Bay Dressed Beef LLC 921 Interest Rate / Amortization 4.70% / 25 Years Pcmc 900 Annual Loan Payment $452,423 Net Cash Flow After Debt Service 6.44% / $183,577 Cash on Cash Return 6.44% DEMOGRAPHICS
1-Miles 3-Miles 5-Miles 2017 Estimate Pop 4,197 74,023 159,065 2017 Census Pop 4,127 72,539 153,627 2017 Estimate HH 1,976 31,421 65,986 2017 Census HH 1,929 30,602 63,474 Median HH Income $42,557 $53,186 $51,581 Per Capita Income $25,005 $29,759 $28,387 Average HH Income $52,174 $68,981 $67,587
* # of Employees based on 5 mile radius
5# ASHLEY FURNITURE HOME STORE
OFFERING SUMMARY INVESTMENT OVERVIEW The Cerna Group of Marcus & Millichap has been selected to exclusively market Ashley Furniture HomeStore, a freestanding retail center located at 700 Willard Street in Green Bay Wisconsin. This highly visible property is conveniently located off of highway 172 in the village of Ashwaubenon in Green Bay Wisconsin. Built in 2010, the property is well-maintained and in excellent condition. Ashley Furniture HomeStore offers to the investor an established well- located investment opportunity in thriving Green Bay.
With continuous development in Green Bay and its surrounding communities, the Ashwaubenon area boasts a progressive atmosphere from industrial parks to shopping centers. With a single established third generation owned and operated business along with high road visibility this store front is in a prime location. The population has been growing at a steady rate of .25% over the last three years (per worldpopulationreview.com) with Green Bay and the surrounding villages.
Ashley Furniture began as a small furniture sales company in 1945 has since expanded to become the world’s largest homefurniture manufacturer in the world. There are now more than 600 Ashley HomeStore and 15 manufacturing and distribution facilities across the globe. Their stores are located throughout the United States, Canada, Mexico, Central America, and Japan, and the company is expanding domestically and abroad every day. The chain is comprised of both corporate and independently owned and operated furniture stores.
INVESTMENT HIGHLIGHTS
▪ Nationally recognized tenant ▪ Largest furniture supplier in Green Bay ▪ Located conveniently off highway 172 with easy access for customers
6 ASHLEY FURNITURE HOME STORE
TENANT PROFILES
Ashley Furniture HomeStore
General Information
Tenant Name Ashley Furniture HomeStore
Website www.ashleyfurniturehomestore.com
Headquartered Arcadia, WI
Rentable Square Feet 50,402 SF
Percentage of RBA 100.00%
Lease Commencement 6/1/2018
Lease Expiration 6/28/2028
No. of Locations 750 as of 2017
1277 8 8 PROPERTYASHLEY FURNITURENAME HOME STORE
PRICINGPRICING ANDANDLOCATIONLOCATION VALUATIONVALUATIONTENANT OVERVIEW OVERVIEWSUMMARY MATRIXMATRIX
700 Willard Dr, Green Bay, WI 54304
▪ Located about .3 miles off highway 172 ▪ Building is in a high traffic area ▪ About 1.3 miles from Lambo Feild ▪ Close Freeway Access
This investment property offers up the special opportunity to own a third generation owned and operated building located in exquisite Ashwaubenon Wisconsin. Only approximately one mile from historic Lambo Field.
CLOSE PROXIMITY TO:
9# 10 10 PROPERTYASHLEY FURNITURENAME HOME STORE
PRICINGPRICINGREGIONAL ANDANDLOCATION VALUATIONVALUATIONTENANT AND LOCALOVERVIEW SUMMARY MATRIXMATRIX MAP 700 Willard Dr, Green Bay, WI 54304
11# ASHLEY FURNITURE HOME STORE
AERIAL PHOTO
12 ASHLEY FURNITURE HOME STORE
PROPERTY PHOTO
13 ASHLEY FURNITURE HOME STORE
OFFERINGOFFERING SUMMARY SUMMARY PROPERTY SUMMARY
NOTES: Taxes under Operating Expenses are at the current tax rate in Green Bay
14# ASHLEY FURNITURE HOME STORE
ACQUISITION FINANCING
MARCUS & MILLICHAP CAPITAL CORPORATION WHY MMCC?
CAPABILITIES Optimum financing solutions to enhance value MMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and Our ability to enhance buyer terms. pool by expanding finance options We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of Our ability to enhance financing options. seller control • Through buyer Our dedicated, knowledgeable experts understand the challenges of financing qualification support and work tirelessly to resolve all potential issues to the benefit of our clients. • Our ability to manage buyers finance expectations • Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings • By relying on a world class Closed 1,707 National platform $5.63 billion Access to more set of debt/equity sources debt and equity operating total national capital sources financings within the firm’s volume in 2017 than any other and presenting a tightly in 2017 brokerage offices firm in the underwritten credit file industry
15 ASHLEY FURNITURE HOME STORE
COMPARABLES MAP
ASHLEY FURNITURE HOME STORE (SUBJECT)
1 Safeway - Astoria, OR
2 Safeway-Tucson, AZ
3 Cinemark- Kenosha, WI Allied Building Products - 4 New Berlin, WI 5 Giant Foods - Milsboro, DE
6 Hobby Lobby - Naples, FL
7 Cummins, Inc. - Omaha, NE
8 Safeway - Pheonix, AZ LA Fitness - Pembroke 9 Pines, FL Best Buy - San Bernadino, 10 CA
SALES COMPARABLES
16 PROPERTYASHLEY FURNITURENAME HOME STORE
SALES COMPARABLES SALES COMPARABLES SALES COMPS AVG
Average Cap Rate
10.0
9.0
8.0 Avg. 6.69% 7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0 Ashley Safeway - Safeway-Tucson, Cinemark- Allied Giant Foods Hobby Cummins, Safeway - LA Fitness Best Buy - Furniture Astoria, OR AZ Kenosha, WI Building - Milsboro, Lobby - Inc. - Pheonix, AZ - Pembroke San Home Store Products DE Naples, FL Omaha, NE Pines, FL Bernadino, - New CA Berlin, WI
17 PROPERTYASHLEY FURNITURENAME HOME STORE
SALES COMPARABLES SALES COMPARABLES SALES COMPS AVG
Average Price Per Square Foot
$400.00
$360.00
$320.00
$280.00
$240.00 Avg. $184.56 $200.00
$160.00
$120.00
$80.00
$40.00
$0.00 Ashley Safeway - Safeway-Tucson, Cinemark- Allied Giant Foods Hobby Cummins, Safeway - LA Fitness Best Buy - Furniture Astoria, OR AZ Kenosha, WI Building - Milsboro, Lobby - Inc. - Pheonix, AZ - Pembroke San Home Store Products DE Naples, FL Omaha, NE Pines, FL Bernadino, - New CA Berlin, WI
18 PROPERTYASHLEY FURNITURENAME HOME STORE
SALESMARKETING COMPARABLES TEAM
SALES COMPARABLES
SAFEWAY - ASTORIA, OR SAFEWAY-TUCSON, AZ ASHLEY FURNITURE HOME STORE 3250 Leif Erikson Dr, Astoria, OR, 97103 9100 N Silverbell Rd, Tucson, AZ, 85743 700 Willard Dr, Green Bay, WI, 54304 1 2
rentpropertyname1 rentpropertyname1 rentpropertyname1
SUBJECT PROPERTY Close Of Escrow 5/2/2018 Close Of Escrow 3/5/2018 Asking Price $9,495,000 Days On Market 182 Days On Market 125 Price/SF $188.39 Sales Price $12,323,000 Sales Price $8,258,000 CAP Rate 6.70% Price/SF $210.52 Price/SF $149.53 GLA 50,402 SF CAP Rate 5.70% CAP Rate 5.45% Lot Size 3.42 acre(s) GLA 58,537 SF GLA 55,228 SF Year Built 2010 Lot Size 2.6 acre(s) Lot Size 6.02 acre(s) Lease Term Remaining 10.1 Years Year Built 2004 Year Built 2003
rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1
19 PROPERTYASHLEY FURNITURENAME HOME STORE
SALESMARKETING COMPARABLES TEAM
SALES COMPARABLES
ALLIED BUILDING PRODUCTS - NEW CINEMARK- KENOSHA, WI BERLIN, WI GIANT FOODS - MILSBORO, DE 7101 70th Ct, Kenosha, WI, 53142 15905 W Ryerson Rd, New Berlin, WI, 53151 25939 John J. Williams Highway, Millsboro, DE, 19966 3 4 5
rentpropertyname1 rentpropertyname1 rentpropertyname1
Tenants Lease Type Close Of 6/8/2017 Escrow: Sales Price: $8,350,666 Close Of Escrow 12/18/2017 Close Of Escrow 9/29/2017 Price/SF: $165.48 $3,240,000 456 CAP Rate: 7.50% Sales Price Days On Market Price/SF $61.04 Sales Price $10,240,000 Year Built: 1998 CAP Rate 8.15% Price/SF $196.95 GLA 53,080 SF CAP Rate 6.57% Lot Size 4.09 acre(s) GLA 51,994 SF Year Built 1960 Lot Size 5.92 acre(s) Year Built 2008
rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1
20 PROPERTYASHLEY FURNITURENAME HOME STORE
SALESMARKETING COMPARABLES TEAM
SALES COMPARABLES
HOBBY LOBBY - NAPLES, FL CUMMINS, INC. - OMAHA, NE SAFEWAY - PHEONIX, AZ 9955 Triangle Blvd E, Naples, FL, 34113 10088 S 136th St, Omaha, NE, 68138 4750 E Indian School Rd, Phoenix, AZ, 85018
6 7 8
rentpropertyname1 rentpropertyname1 rentpropertyname1
Close Of Escrow 6/15/2017 Close Of Escrow 12/28/2017 Close Of Escrow 3/7/2018 Days On Market 150 Days On Market 98 Days On Market 156 Sales Price $9,350,000 Sales Price $9,400,000 Sales Price $18,300,000 Price/SF $170.00 Price/SF $160.56 Price/SF $317.61 CAP Rate 5.75% CAP Rate 7.00% CAP Rate 5.04% GLA 55,000 SF GLA 58,546 SF GLA 57,618 SF Lot Size 7.61 acre(s) Lot Size 8.02 acre(s) Lot Size 4.25 acre(s) Year Built 2016 Year Built 2007 Year Built 2004
rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1
21 PROPERTYASHLEY FURNITURENAME HOME STORE
SALESMARKETING COMPARABLES TEAM
SALES COMPARABLES
LA FITNESS - PEMBROKE PINES, FL BEST BUY - SAN BERNADINO, CA 18445 Pines Blvd., Pembroke Pines, FL, 33029 888 harriman place, san bernardino, CA, 92408
9 10
rentpropertyname1 rentpropertyname1 rentpropertyname1
Close Of Escrow 12/22/2017 Close Of Escrow 8/1/2017 Days On Market 65 Sales Price $9,500,000 Sales Price $14,100,000 Price/SF $163.79 Price/SF $250.10 CAP Rate 6.10% CAP Rate 9.60% GLA 58,000 SF GLA 56,378 SF Year Built 1995 Lot Size 10.25 acre(s) Year Built 1995
rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1
22 PROPERTYASHLEY FURNITURE NAME HOME STORE
PRICINGPRICING ANDANDLOCATION VALUATIONVALUATIONTENANTMARKETINGDEMOGRAPHICS OVERVIEW SUMMARY MATRIXMATRIX TEAM
CREATED ON MAY 31, 2018
1 Miles 3 Miles 5 Miles POPULATION 2022 Projection 4,182 73,517 161,377 2017 Estimate 4,197 74,023 159,065 2010 Census 4,127 72,539 153,627 2000 Census 4,506 77,057 151,875
INCOME Average $52,174 $68,981 $67,587 Median $42,557 $53,186 $51,581 Per Capita $25,005 $29,759 $28,387
HOUSEHOLDS 2022 Projection 1,992 31,714 68,178 2017 Estimate 1,976 31,421 65,986 2010 Census 1,929 30,602 63,474 2000 Census 1,983 30,869 60,668
HOUSING 2017 $137,037 $148,149 $150,077
EMPLOYMENT 2017 Daytime 19,015 108,460 211,968 Population 2017 Unemployment 4.85% 4.52% 4.74% 2017 Median Time 16 18 19 Traveled
RACE & ETHNICITY White 84.64% 84.23% 79.81% Native American 0.03% 0.05% 0.04% African American 2.03% 3.43% 3.61% Asian/Pacific 5.95% 3.40% 4.10% Islander
Source: © 2015 Experian
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