Offering Memorandum
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(DARK) Marietta, GA Ground Lease OFFERING 1901 Sandy Plains Road MEMORANDUM Marietta, Georgia 30066 Confidentiality and Disclaimer Marcus & Millichap hereby advises all prospective purchasers of properties, including newly-constructed facilities or newly- income or expenses for the subject property, the future projected Net Leased property as follows: acquired locations, may be set based on a tenant’s projected financial performance of the property, the size and square sales with little or no record of actual performance, or footage of the property and improvements, the presence or The information contained in this Marketing Brochure has been comparable rents for the area. Returns are not guaranteed; the absence of contaminating substances, PCB’s or asbestos, the obtained from sources we believe to be reliable. However, tenant and any guarantors may fail to pay the lease rent or compliance with State and Federal regulations, the physical Marcus & Millichap has not and will not verify any of this property taxes, or may fail to comply with other material terms of condition of the improvements thereon, or the financial information, nor has Marcus & Millichap conducted any the lease; cash flow may be interrupted in part or in whole due to condition or business prospects of any tenant, or any tenant’s investigation regarding these matters. Marcus & Millichap makes market, economic, environmental or other conditions. Regardless plans or intentions to continue its occupancy of the subject no guarantee, warranty or representation whatsoever about the of tenant history and lease guarantees, Buyer is responsible for property. The information contained in this Marketing Brochure accuracy or completeness of any information provided. conducting his/her own investigation of all matters affecting the has been obtained from sources we believe to be reliable; intrinsic value of the property and the value of any long-term however, Marcus & Millichap has not verified, and will not verify, As the Buyer of a net leased property, it is the Buyer’s lease, including the likelihood of locating a replacement tenant if any of the information contained herein, nor has Marcus & responsibility to independently confirm the accuracy and the current tenant should default or abandon the property, and Millichap conducted any investigation regarding these matters completeness of all material information before completing any the lease terms that Buyer may be able to negotiate with a and makes no warranty or representation whatsoever regarding purchase. This Marketing Brochure is not a substitute for your potential replacement tenant considering the location of the the accuracy or completeness of the information provided. All thorough due diligence investigation of this investment property, and Buyer’s legal ability to make alternate use of the potential buyers must take appropriate measures to verify all of opportunity. Marcus & Millichap expressly denies any obligation property. the information set forth herein. to conduct a due diligence examination of this Property for Buyer. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it NON-ENDORSEMENT NOTICE Any projections, opinions, assumptions or estimates used in this harmless from any kind of claim, cost, expense, or liability arising Marketing Brochure are for example only and do not represent out of your investigation and/or purchase of this net leased Marcus & Millichap Real Estate Investment Services, Inc. the current or future performance of this property. The value of a property. (“M&M”) is not affiliated with, sponsored by, or endorsed by any net leased property to you depends on factors that should be commercial tenant or lessee identified in this marketing package. evaluated by you and your tax, financial and legal advisors. CONFIDENTIALITY AND DISCLAIMER The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or Buyer and Buyer’s tax, financial, legal, and construction advisors The information contained in the following Marketing Brochure is endorsement by, said corporation of M&M, its affiliates or should conduct a careful, independent investigation of any net proprietary and strictly confidential. It is intended to be reviewed subsidiaries, or any agent, product, service, or commercial listing leased property to determine to your satisfaction with the only by the party receiving it from Marcus & Millichap and should of M&M, and is solely included for the purpose of providing suitability of the property for your needs. not be made available to any other person or entity without the tenant lessee information about this listing to prospective written consent of Marcus & Millichap. This Marketing Brochure customers. Like all real estate investments, this investment carries significant has been prepared to provide summary, unverified information risks. Buyer and Buyer’s legal and financial advisors must request to prospective purchasers, and to establish only a preliminary ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE and carefully review all legal and financial documents related to level of interest in the subject property. The information CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE the property and tenant. While the tenant’s past performance at contained herein is not a substitute for a thorough due diligence DETAILS. this or other locations is an important consideration, it is not a investigation. Marcus & Millichap has not made any investigation, guarantee of future success. Similarly, the lease rate for some and makes no warranty or representation, with respect to the Table of Contents Investment Highlights 4 Investment Overview 5 Financial Analysis 6 Tenant Overview 7 Press Release 8 Surrounding Area 9 Location Overview 10 Property Photos 11-13 Surrounding Area Photos 14 Maps 15-16 Demographics / Market 17 Overview Investment Highlights PRICE: $2,100,000 | CAP: 7.49% | RENT: $157,300 About the Investment ✓ Absolute Triple-Net (NNN) Ground Lease ✓ 5 Years Remaining on an Original 20-Year Ground Lease ✓ 10% Increases Every Five Years – Including Through Option Periods ✓ Four (4), Five (5)-Year Tenant Renewal Options ✓ Corporate Guarantee (NYSE: BBT) ✓ Investment Grade Credit – Moody’s: A2 About the Location ✓ Directly Across from a Publix Anchor Shopping Center – “Sandy Plains Exchange” ✓ Over 180,900 Individuals Within a Five-Mile Radius and Growing ✓ 22 Miles from Downtown Atlanta ✓ Affluent Area – Over $100,000 Average Household Income in a Five-Mile Radius About the Tenant/Brand ✓ BB&T Corporation Operates Over 2,000 Branches in 15 States & Washington D.C. ✓ As of 2018 – It is the 16th Largest Bank in the United States With More Than $221 Billion Assets Under Management ✓ BB&T Offers a Wide Range of Financial Services Including Retail and Commercial Banking, Investments, Insurance, Wealth Management, Asset Management, Mortgage, Corporate Banking, Capital Markets and Specialized Lending BB&T (Dark) - Marietta, GA 4 INVESTMENT OVERVIEW Marcus & Millichap is pleased to exclusively market for sale the subject single-tenant BB&T dark ground lease located at 1901 Sandy Plains Road in Marietta, Georgia. The property made up of a 4,000 square feet building and is situated on approximately 1.35 acres of land. The investment opportunity is subject to an absolute triple-net (NNN) lease which has approximately 5 years of term remaining. The current rent is $157,300 and is subject to 10% rental increases. The lease is guaranteed by Branch Banking and Trust Company. BB&T is one of the largest financial services holding companies in the U.S. with $225.7 billion in assets and market capitalization of approximately $33.1 billion as of December 31, 2018. Building on a long tradition of excellence in community banking, BB&T offers a wide range of financial services including retail and commercial banking, investments, insurance, wealth management, asset management, mortgage, corporate banking, capital markets and specialized lending. Based in Winston-Salem, N.C., BB&T operates more than 1,800 financial centers in 15 states and Washington, D.C. and is consistently recognized for outstanding client service by Greenwich Associates for small business and middle market banking BB&T (Dark) - Marietta, GA 5 Financial Analysis PRICE: $2,100,000 | CAP: 7.49% | RENT: $157,300 Property Description Rent Schedule Property Dark BB&T Ground Lease Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%) 2019 $157,300 $13,108 - Property Address 1901 Sandy Plains Road 2020 $157,300 $13,108 - City, State, ZIP Marietta, Georgia 30066 2021 $173,030 $14,419 10.00% Year Built / Renovated 2005 2022 $173,030 $14,419 - Building Size ~4,000 SF 2023 $173,030 $14,419 - Lot Size +/- 1.35 Acres 2024 $173,030 $14,419 - Type of Ownership Ground Lease 2025 $173,030 $14,419 -- The Offering Annual Rent $157,300 CAP Rate 7.49% Purchase Price $2,100,000 Lease Summary Property Type Net Leased Bank Tenant / Guarantor BB&T Ownership Type Public (NYSE: BBT) Original Lease Term 21 Years Lease Commencement July 1st, 2005 Lease Expiration May 31st, 2026 Lease Term Remaining 5 Years Lease Type Absolute Triple-Net (NNN) Roof & Structure Tenant Responsible Rental Increases 10% Every Five Years Options to Renew Four (4), Five (5)-Year Options BB&T (Dark) - Marietta, GA 6 TENANT OVERVIEW About BB&T BB&T Corporation (Branch Banking and Trust Company) is a bank holding company based in Winston-Salem, North Carolina. Its bank operates 2,049 branches in 15 states and Washington, D.C., and offers consumer and commercial banking, securities brokerage, asset management, mortgage, and insurance products and services. It is ranked 16th on the list of largest banks in the United States by assets. Its Corporate Information subsidiary, BB&T Insurance Services, is one of the largest insurance brokers in the world Headquarters Winston Salem, North Carolina Ticker NYSE: BBT Number of Locations 2,049 Branches AUM $221.642 Billion Stock Price $49.27 as of 01/28/2019 BB&T (Dark) - Marietta, GA 7 PRESS RELEASE BB&T to Buy SunTrust in Biggest Bank Merger in a Decade February 7, 2019, 6:11 AM EST BB&T Corp.