OFFERING MEMORANDUM ST ANN MISSOURI A Kroger Company 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. NON-ENDORSEMENT NOTICE Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) 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 w, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. 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 (NEED TO UPDATE) 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. BRITISH COLUMBIA ALBERTA PRINCE SASKATCHEWAN MANITOBA ONTARIO NEW EDWARD Seattle ' BRUNSWICK ISLAND Winnipeg QUEBEC Tacoma Spokane Quebec' WASHINGTON MONTANA MAINE Portland NORTH DAKOTA Halifax NOVA MINNESOTA Montreal´ SCOTIA Ottawa Eugene Fargo OREGON IDAHO Billings N.H. WISCONSIN Boise St Paul SOUTH DAKOTA Minneapolis Toronto NEW YORK VT. 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Atlanta MISSISSIPPI Birmingham Charleston Tucson Dallas ALABAMA Ft. Worth Montgomery Columbus Savannah El Paso Arlington GEORGIA Shreveport Jackson Ciudad TEXAS LOUISIANA Juarez SONORA Jacksonville CHIHUAHUA Baton Mobile Rouge Austin New Orleans San Antonio Houston Orlando Chihuahua Tampa St Petersburg FLORIDA COAHUILA Corpus Christi Fort Lauderdale Miami NUEVO LEON Matamoros Monterrey INVESTMENT SUMMARY 11050 ST CHARLES ROCK RD, ST ANN, MO 63074 PRICE: $2,500,000 CAP: 5.00% RENT: $125,000 OVERVIEW ANNUALIZED OPERATING DATA Price $2,500,000 Lease Term Annual Rent Gross Leasable Area (GLA) 18,000 SF Current Term $125,000 Lot Size (approx.) 1.35 Acres Option 1 $137,000 Net Operating Income $125,000 Option 2 $150,000 CAP Rate 5.00% Option 3 $164,012 Year Built / Renovated 1975/1995 LEASE ABSTRACT Lease Type NN Lease Term Remaining 10 Years Lease Start 11/24/2014 Lease Expiration 1/22/2025 Renewal Options 3X5 Increases In option periods Landlord Oblig. Interior and exterior structure & roof 1 INVESTMENT HIGHLIGHTS Strong visibility with more than New construction and The subject site is a 10 year NN lease 73,468 vehicles passing in front mixed use developments going with 6.1 years remaining on the base of or near the site daily up near the site term, followed by three 5-year options. Escalations in rent, to hedge against inflation, occur during the anniversary of each option period. Landlord responsibilities are minimal involving only interior/exterior roof & structure. The site is located in front of a Menards and adjacent to a Raising Cane’s. A new mixed use development of office and retail are going in next door including a Starbucks, QuikTrip and Sherwin Williams. Ruler Foods is a Kroger Company warehouse grocery chain. The region is home Strong population density and to many Fortune 500 minimal comparable warehouse Corporate Offices grocers in the immediate area 2 3 INVESTMENT HIGHLIGHTS t Ruler Foods is a Kroger Company t Located in front of a Menard’s anchored center t Large retail and mixed use development is underway adjacent to the subject site t Holman Middle School is across the street t Strong residential in-fill location 184,549 $65,259 TOTAL AVERAGE POPULATION HOUSEHOLD WITHIN 5-MILE INCOME WITHIN RADIUS 5-MILE RADIUS 34,509 VPD - SAINT CHARLES ROCK RD 33,539 VPD - N LINDBERGH BLVD 5,420 VPD - ADIE RD 4 INTERSTATE 70 Holman Middle St. Louis Lambert School International Airport N LINDBERGH BLVD – 33,539 VPD ST CHARLES ROCK RD – 34,509 VPD McDonald’s New retail strip 2018 construction “The Crossings at Northwest” - St Ann Police a 400,000 SF of Department retail & 500,000 SF office mixed use Walgreens development Burger King Drummond ADIE RD – 5,420 VPD Elementary School 5 6 TENANT SUMMARY KROGER Ruler Foods, acquired by Kroger in 1999. RANKINGS The Kroger Co. (NYSE:KR) is one of the world’s largest grocery retailers, operating nearly 2,800 supermarkets and multi-department stores in t Publicly traded NYSE:KR 35 states and the District of Columbia under two dozen local banner t Kroger Standard & Poor’s BBB rated names, including Kroger, City Market, Dillons, Food 4 Less, Fred Meyer, t Fry’s, Harris Teeter, Jay C, King Soopers, QFC, Ruler Foods, Ralphs Kroger ranked #17 on Fortune 500 and Smith’s. The company’s headquarters are in Cincinnati, Ohio. Kroger (2017): $122.66(Bil) in Revenue. RULER FOODS Warehouse store grocery chain. Owned by Kroger. No frills where 80% of the offerings are Kroger Brand products and customers bag their own groceries. Located in IL, IN, OH, KY, MO, TN. Rulers originally opened under the banner of JayC Food Stores before Kroger purchased them in 1999. They have 25 locations. 7 8 KROGER CINCINNATI, OH HEADQUARTERS SUPERMARKET CHAIN 2,800 +/- INDUSTRY LOCATIONS PUBLIC KR NYSE OWNERSHIP $122.66(BIL) $1.907(BIL) REVENUE NET INCOME WWW.KROGER.COM WEBSITE 9 10 SITE PLAN ST CHARLES ROCK RD Walgreens ADIE RD 11 12 370 67 3 St. Charles i ur Florissant so 70 is s M oi lin 270 Il Hazelwood 270 364 111 270 Granite 255 St Ann Jennings 3 City Maryland Heights 157 Overland Madison 170 70 Penrose 141 M 64 i Creve University s s i Coeur City s 55 70 s Collinsville i Chesterfield p West End p i 67 R 40 i ST. LOUIS v e Clayton r 40 64 159 64 East St. Louis Webster Groves Manchester Tower Grove 15 100 44 South Kirkwood Fairview Heights Cohokia 255 55 109 50 Castlewood State Park 270 Mehlville 44 163 15 30 255 141 Oakville Millstadt i r 55 u s i Columbia o 21 s o s n i i l l Arnold