300 Beaver Valley Mall Blvd. | Monaca (Pittsburgh MSA), PA Offering Memorandum Investment Summary 04
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SINGLE TENANT RURAL KING | NEW TEN-YEAR LEASE | BELOW REPLACEMENT COST ACTUAL LOCATION 300 Beaver Valley Mall Blvd. | Monaca (Pittsburgh MSA), PA Offering Memorandum Investment Summary 04 Tenant 06 Financial Analysis 08 Location 10 Market 13 Contacts 15 MARKETING ADVISOR DEBT ADVISOR CLICK TO VIEW MARC MANDEL CLAUDIA STEEB Managing Director Managing Director PROPERTY VIDEO 484.532.4212 412.222.2053 [email protected] [email protected] Jones Lang LaSalle Americas, Inc. or its state-licensed affiliate (“JLL”) has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than JLL, and neither Owner nor JLL, nor their respective equity holders, officers, directors, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and JLL, its officers, directors, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. © 2019 Jones Lang LaSalle IP, Inc. All rights reserved. Investment Summary Rural King | Monaca, PA Rural King | Monaca, PA JLL is pleased to exclusively offer the opportunity to acquire the fee simple interest in a single tenant, net leased property leased to Rural King (the “Property”) in Monaca, PA. Rural King executed a ten (10) year deal in 2017, along with eight (8), five (5) year options. All options have roughly ten percent (10%) increases in the beginning of each period. Rural King is currently paying an attractive low rent per square foot, creating long term upside on future rents. The Property is situated along Pennsylvania Route 18, making it easily accessible and a retail destination to the growing working population of Monaca. Just over two miles from the Rural King, is the Shell Cracker Plant, which is well under construction. As the Shell cracker plant nears ‘peak construction’, more than 6,000 workers converge to the site, bringing additional consumers to the nearby Property. According to Kenneth Humphreys, a senior advisor at the U.S. Department of Energy’s Office of Fossil Energy, the site will be monumental in creating jobs in the area. He’s quoted as saying “Over the coming decade, it’s very possible to realize 100,00 plus jobs.” Rural King benefits from the strong retailers in the Beaver Valley Mall and those that surround the Property. The Beaver Valley Mall features anchor tenants such as Boscov’s, Dick’s Sporting Goods, Planet Fitness and JCPenney. In addition, other surrounding national retailers such as Burger King, Arby’s, Wendy’s, ALDI, Target, Marshalls, Ross Dress for Less, Panera and Books-A-Million are able to attract customers from an expansive trade area. With nearly 75 stores, coupled with its immediate access to Route 18, the Property is able to benefit from more than 69,000 residents within a 5-mile radius who earn average household incomes of over $72,000. Rural King, headquartered in, Mattoon, Illinois, is a farm supply store that currently operates 116 stores in thirteen states. The stores sell a robust selection of items work clothing and work boots, equine and pet supplies, hunting equipment, supplies, firearms, tractor/trailers as well as their parts and accessories, lawn and garden supplies, sprinkler/irrigation parts, power tools, fencing, welding and pump supplies. PROPERTY SUMMARY Address 300 Beaver Valley Mall Boulevard, Monaca, PA 15061 Price $3,695,000 Cap Rate 8.00% NOI $295,677 Lease Type Fee Simple: NN Building Size 190,759 SF Parcel Size 7.04 Acres Year Built 1991 Tenant RK Holdings, LLP Remaining Term 7.5+ Years (Expiration 10/31/2027) Renewal Options Eight (8), Five (5) Year Options © 2019 Jones Lang LaSalle IP, Inc. All rights reserved. 4 The Beaver Valley Mall, which is home to roughly The Shell Cracker Plant, a plastic-producing 70 stores, is situated along Route 18 in the factory located just 2 miles away on a 386-acre dominant retail trade area in Monaca, PA – there is property, is scheduled to open in the early part of more than 17,000 vehicles that pass the shopping 2020 and provide more than 600 permanent jobs mall daily There are over 4,400 college students within 12 A surplus of shopping destinations surrounds the miles of Monaca. Penn State Beaver is located just Beaver Valley Mall – Township Marketplace and Stone 2 miles from the Beaver Valley Mall on a beautiful Quarry Commons are just minutes away and are home 105-acre campus; the current enrollment is nearly to nationally recognized retailers such as Lowe’s, 700 students Target, Kohl’s, Marshalls, and ROSS Dress For Less Rural King is currently paying $1.55 per square foot, which allows the 190,000 SF building to be offered well below $4 million, creating flexibility and rental upside to the new owner Monaca, PA is just 30 miles from Pittsburgh, PA – a city that contains an MSA of more than 2.3 million people and was ranked #114 in the 2019 Forbes list: Best Places for Business and Careers 5 © 2019 Jones Lang LaSalle IP, Inc. All rights reserved. Tenant Rural King | Monaca, PA Tenant Overview Rural King | Monaca, PA Rural King, headquartered in Mattoon, Illinois, is a farm supply store that currently operates 116 stores in thirteen states. The original owners, Kermit Speer and Keith Beaird, started in a 7,200 square foot building in 1960. Three years later an addition was made then, a warehouse was built and then a second addition was added. Rural King continued to grow to 210,000 square feet in 1999. Then in 2003-2010 three warehouse additions added close to 100,000 square feet each time. Company Overview The stores sell a robust selection of items work clothing and work boots, equine and pet Ownership: Private supplies, hunting equipment, supplies, firearms, tractor/trailers as well as their parts and accessories, lawn and garden supplies, sprinkler/irrigation parts, power tools, fencing, welding and pump supplies. During the holiday season specifically, Rural King sells toys and small gifts. # of Locations: 116 In 2015, Rural King announced that they had reached, for the first time, over $1 billion in total Founded: 1960 sales. Rural King, in November of 2017, bought the Cross County Mall and recently relocated their headquarters to a portion of the 338,000 square foot, Mattoon, Illinois mall. The former Headquarters: Mattoon, IL headquarters will continue to serve as a distribution center. Company Website: ruralking.com © 2019 Jones Lang LaSalle IP, Inc. All rights reserved. © 2019 Jones Lang LaSalle IP, Inc. All rights reserved. Financial Analysis Rural King | Monaca, PA Lease Abstract Rural King | Monaca, PA $3,695,000 8.00% Asking Price Cap Rate LEASE DETAIL TENANT RESPONSIBILITY DETAIL Address 300 Beaver Valley Mall Blvd. Monaca, PA 15061 Maintenance & Tenant shall maintain the area described as "Tenant Maintenance Area" in Tenant RK Holdings, LLP Repairs the Lease; as well keep the Demised Premises in good condition and repair Parcel Size 7.04 Acres Building Size 190,759 SF Tenant agrees to carry public liability insurance covering the Demised Insurance Premises, naming Landlord as insured, subject to an amount specified in Year Built 1991 the Lease Annual Rent $295,677 If the Demised Premises is located on any such Outlot and such Outlot is Rent / SF $1.55 Taxes separately assessed for tax purposes, then Tenant shall pay, if it solely Lease Type Fee Simple: NN occupies the Outlot, all the Real Estate Taxes assessed. Tenant shall pay for all utilities provided to the Demised Premises, including Roof & Structure Landlord Responsibility but not limited to water, sewer, gas, electricity, fuel, light, heat, power, Utilities Rent Commencement 11/1/2017 telephone, cable, trash and garbage removal, as well as the cost of Lease Expiration 10/31/2027 maintaining the utility lines serving the Demised Premises. Lease Term Remaining 7.5+ Years Remaining Options Eight (8), Five (5) Year Options LANDLORD RESPONSIBILITY DETAIL RENT SCHEDULE Maintenance Landlord shall be responsible for the maintenance and repair of all & Repairs structural, roof, and exterior building portions of the Demised Premises Description Dates Annual Rent % Increase Current Term (Years 1-10) 11/1/2017 - 10/31/2027 $295,677 Option Term 1 (Years 11-15) 11/1/2027 - 10/31/2032 $326,198 10.32% Option Term 2 (Years 16-20) 11/1/2032 - 10/31/2037 $358,627 9.94% Option Term 3 (Years 21-25) 11/1/2037 - 10/31/2042 $394,871 10.11% Option Term 4 (Years 26-30) 11/1/2042 - 10/31/2047 $434,931 10.14% Option Term 5 (Years 31-35) 11/1/2047 - 10/31/2052 $478,805 10.09% Option Term 6 (Years 36-40) 11/1/2052 - 10/31/2057 $526,495 9.96% Option Term 7 (Years 41-45) 11/1/2057 - 10/31/2062 $579,907 10.14% Option Term 8 (Years 46-50) 11/1/2062 - 10/31/2067 $637,135 9.87% © 2019 Jones Lang LaSalle IP, Inc. All rights reserved. 9 © 2019 Jones Lang LaSalle IP, Inc. All rights reserved. Location Rural King | Monaca, PA Location Overview – Surrounding Retail & Amenities Rural King | Monaca, PA 11 Location Overview Rural King | Monaca, PA 12 © 2019 Jones Lang LaSalle IP, Inc.