7-Eleven 1204 Ocean Shore Blvd, Ormond Beach, FL 32176
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Representative Photo Ormond Beach | FL ™ OFFERING MEMORANDUM 7-ELEVEN 1204 Ocean Shore Blvd Ormond Beach, FL 32176 Representative Photo Table of Contents TABLE OF CONTENTS 03 EXECUTIVE OVERVIEW 04 FINANCIAL OVERVIEW 05 PROPERTY OVERVIEW 10 AREA OVERVIEW LISTED BY Chad Kurz ARON CLINE MATT COATES SVP & National Director | Lic # 01911198 (CA) Calvin Short Senior Vice president & Senior Director Associate SVP & Senior Director | Lic # 01927216 (CA) DIRECT 949.432.4509 DIRECT 949.432.4505 Josh Bishop MOBILE 818.632.0233 MOBILE 714.366.1236 VP & Director | Lic # 688810 (TX) [email protected] [email protected] LIC # 01904371 (CA) LIC # 01980718 (CA) BROKER OF RECORD kyle matthews LIC # CQ1052263 (FL) | 2 ExecutiveFort Myers Overview | FL Investment Highlights » New Construction NNN 7-Eleven – Brand new 15-year Lease– Minimal Landlord Responsibilities (Roof/Structure) – New 15-year roof warranty » 10% rental increases every 5 years – strong hedge against inflation » Lease secured by one of the most recognizable Retail operators in the World – Investment grade credit tenant with an AA- rating by Standard & Poor’s » 7-Eleven operates, franchises, and licenses more than 70,000 stores throughout 18 Countries. Over 11,000 are located in North America with heavy expansion plans to get to 20,000 stores by 2020 » High Quality Construction – Property construction will be complete in mid-2018 and will be up-to-date with 7-Eleven’s current prototype » Out parceled to a Publix Supermarket Shopping Center, which is the dominant grocery store chain in Florida » 7-Eleven is Ranked #1 on Entrepreneur magazine 2017 Top Global Franchises list » Densely Populated Area with Robust Demographics – The area has had approximately 5.00% population growth since 2010 » Over 10 condominium complexes located within less than a half mile from the site » Average Household Income is $67,858 within a 5-mile radius and $76,902 within a 3-mile radius » Strong Traffic Counts – The subject property is located on Ocean Shore Blvd/Florida State Road A1A, which is a major state road that runs along the Atlantic Ocean, from Key West to Fernandina Beach. State Road A1A has a traffic count of approximately ±17,000 vehicles per day » The Subject Property is less than 13 miles from Daytona Beach International Airport and one block from the beach 3 | PROPERTYFort Myers Overview | FL Representative Photo Annualized Operating Data Monthly Rent Annual Rent Increases Cap Rate Year 1-5 $18,244 $218,922 4.90% Year 6-10 $20,068 $240,814 10% 5.39% Year 11-15 $22,075 $264,896 10% 5.93% Option 1 $24,282 $291,385 10% 6.52% Option 2 $26,710 $320,524 10% 7.18% Option 3 $29,381 $352,576 10% 7.89% Option 4 $32,319 $387,834 10% 8.68% Tenant Summary Investment Summary Tenant Trade Name 7-Eleven » LIST PRICE $4,467,000 Type of Ownership Fee Simple Lease Guarantor Corporate Guarantee » NOI (YEAR 1) $218,922 Lease Type Modified NNN » CAP RATE (YEAR 1) 4.90% Roof and Structure Landlord Responsible (15-year warranty) Original Lease Term 15 Years » TOTAL BUILDING AREA ± 2,940 SF Rent Commencement Date July 2, 2018 Lease Expiration Date June 30, 2033 » TOTAL LAND AREA ± 0.95 Acres Term Remaining on Lease ±15 Years Increase 10%, Every 5 Years Options Four, 5-Year | 4 PROPERTYFort Myers Overview | FL Representative Photo The Offering Tenant Overview PROPERTY NAME 7-Eleven » Company Name » Year Founded » Headquarters Property Address 1204 Ocean Shore Blvd 7-Eleven 1927 Irving, TX Ormond Beach, FL 32176 » Ownership » Industry » Website SITE DESCRIPTION Private Convenience Store www.7-eleven.com Number of Stories One 7-Eleven is the world’s largest convenience store chain operating, franchising and licensing more than 70,000 stores in 18 2018 Year Built countries and is also one of the nation’s largest independent gasoline retailers. As the pioneer of the convenience store GLA ±2,940 SF concept, 7-Eleven strives to meet the needs of convenience-oriented guests by providing a broad selection of fresh, high- quality products and services at everyday fair prices, speedy transactions and a clean, friendly shopping environment. Each Lot Size ±0.95AC (41,382 SF) store maintains a selection of approximately 2,500 different products and services tailored to meet the needs and Type of Ownership Fee Simple preferences of its local clientele. Landscaping Professional Topography Generally Level #1 TOP C-STORE #3 Entrepreneur’s Forbes’ Top 20 Franchises Magazine Top Global Team Members to Start Franchises List 5 | O C E A N S H O R E B LV D SiteSite Plan Plan LYNNHURST DR | 6 OrmondLocation Beach | FL Subject Property Halifax River Ormond Beach Middle School Oceanside Country Club North 7 | Ormond Beach | FL Beach House Ocean Shore Blvd ±17,000 ADT Sun Deck Indies House Gemini Condos Subject Property Ed’s Haley’s Repair Seawinds Condos Surfside Club Condos | 8 OrmondLOCAL Beach |MAP FL Subject Property 9 | Area OverviewOrmond Beach | FL Demographics POPULATION 1 - MILE 3 - MILE 5 - MILE 2023 Projection 4,873 20,380 53,856 2018 Estimate 4,700 19,614 51,561 2010 Census 4,535 18,772 48,864 Growth 2018-2023 3.68% 3.90% 4.45% Growth 2010-2018 3.64% 4.49% 5.52% HOUSEHOLDS 1 - MILE 3 - MILE 5 - MILE 2023 Projection 2,600 9,723 25,781 2018 Estimate 2,471 9,318 24,576 2010 Census 2,302 8,845 23,073 Growth 2018-2023 5.22% 4.35% 4.90% Growth 2010-2018 7.34% 5.35% 6.51% INCOME 1 - MILE 3 - MILE 5 - MILE 2018 Est. Average $69,897 $76,902 $67,858 Household Income | 10 Ormond Beach | FL ORMOND BEACH, FL Ormond Beach is located in the northern neighborhood of Daytona Beach. Home to Tomoka State Park, this picturesque beach town is part of the Deltona-Daytona Beach-Ormond Beach MSA. It is a fashionable winter resort center, while still being a prime destination for the summer. The community is working on several developments that will help the area grow, as well as, be recognized by visitors and potential residents. The most recent development is adopting the Energy Efficiency and Conservation Strategy. By working to update old policies and procedures that help reduce carbon emissions and energy consumption, the community can do their part to help better the environment. LOCAL ECONOMY Ormond Beach is an active commercial and residential market in the MSA. The Florida Economic Development Council (FDEC) has recognized Ormond Beach for outstanding economic development promotional material. Their most successful promotional campaign, “Doing Business in Ormond Beach,” has brought in organizations ORMOND BEACH HEADQUARTERS ranging from small business to nationwide corporations. The local government recognizes that taking care of businesses in their area, no matter what size, is the key to a healthy economy. » Costa Del Mar » First Green Bank » Florida Production Engineering » Hawaiian Tropic » ABB Thomas & Betts » Hudson Technologies » Microflex Inc. » U.S. Food Services 11 | 7-Eleven Daytona Beach, FL Located in Volusia County, Daytona Beach is known as one of the top summer destinations for its beautiful beaches and the headquarters for NASCAR. Thousands of NASCAR fans come from all over the world to attend the season-opening Daytona 500. There are also great golf courses, recreational activities, and night life. The area’s largest economic sector is tourism and manufacturing. Daytona Beach has a variety of shopping options and many high- end stores. Some corporate headquarters in the area include Brown & Brown, Halifax Media Group, International Speedway Corporation, and much more. | 12 Ormond Beach | FL 150 INTERNATIONAL COMPANIES $33 BILLION Orlando, FL IN TOURISM At the center of the Orlando metropolitan area, Orlando is one of the most visited cities in the United States. In 2015, more than 66 million people visited Orlando. The city offers everything when it comes to entertainment. The city was originally nicknamed “The City Beautiful,” because of Lake Eola. In recent years, the city received the nickname of “The Theme Park Capital of the World” as it is home to seven of the top theme parks in the world. From theme parks and sunshine to continuously evolving dining scenes, Orlando is the only destination where you can enjoy it all together. Orlando International Airport Orlando’s major airport is Orlando International Airport (MCO), located within 15-miles (24-kilometers) of the Orange 7TH-LARGEST County Convention Center and major attractions. With 38 scheduled airlines and two charters, MCO provides RESEARCH PARK nonstop service to 76 destinations in the U.S. and 32 international cities. More than 35 million passengers use Orlando International Airport annually; making MCO the third busiest airport in the U.S. 13 | Ormond Beach | FL WALT DISNEY WORLD $18.2 BILLION Annual Economic Impact 19 MILLION Visitors Per Year Economy The Orlando area is a large industrial and hi-tech center. It is nationally recognized for their innovative techniques in digital media, aviation, aerospace, agricultural technology, and software design. The city holds over 150 international companies that represent 20 different countries. Orlando is also the 7th-largest research park in the country. Central Florida Research Park is home to over 120 companies that employ more than 8,500 people. It is also the hub of the nation’s military simulation and training programs. Lockheed Martin has a large manufacturing facility for missile systems, aeronautical craft, and other high-tech research. Many notable engineering firms work with the different branches of the U.S. Army to create innovative technology. The city is also a large home base for Darden Restaurants, Olive Garden, and LongHorn Steakhouse. The film, television, and entertainment industry is another large sector for Orlando’s economy.