RetailRetail InvestmentInvestment OfferingOffering ChapelChapel CenterCenter 1896-1908 Buchholzer Blvd. Akron, OH 44301 Exclusive Contact: Bob Havasi Dan Cooper Cooper Commercial Investment Group 6120 Parkland Blvd., Suite 206 Cleveland, OH 44124 P 216 916 7313 F 216 916 9182 [email protected] [email protected] www.coopergrp.com This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to condition, square footage or age are approximate. Buyer or Tenant acknowledges that they are relying on their own investigations and are not relying on Broker provided information. Akron | OH ConfidentialityConfidentiality AgreementAgreement The information below will set forth an understanding regarding the relationship between the Recipient of this package (the “Recipient”) and The Cooper Group and the confidentiality of the investment information to be supplied to you and your organization for use in considering, evaluating and/or purchasing this property (the “Property”). The recipient acknowledges that all financial, contractual, marketing, and informational materials including but not limited to lease information, occupancy information, financial information, projections, data information and any other similar information provided by The Cooper Group which relates to the Property (collectively, the Confidential Information), whether said information was transmitted orally, in print, in writing or by electronic media is confidential in nature and is not to be copied or disseminated to any party without the prior consent of The Cooper Group. The Recipient acknowledges and agrees that the Confidential Information is of such a confidential nature that severe monetary damage could result from dissemination of that information to unauthorized individuals. The Recipient shall limit access to the Confidential Information to those individuals in the Recipient’s organization with a “need to know” and shall take all precautions reasonably necessary to protect the confidentiality of the Confidential Information. The Recipient acknowledges and agrees that the Confidential Information and any copies thereof are the property of The Cooper Group and that all such information will be returned to The Cooper Group upon written request. Any offers or inquiries from Recipient in connection with this investment proposal shall be forwarded, confidentiality, to The Cooper Group. Other than The Cooper Group, recipient agrees that neither Recipient nor The Cooper Group shall be obligated to pay any procuring broker fees in connection with this investment unless a separate written Brokerage Agreement is entered into and written acknowledgement of any procuring Brokerage Agreement is received from all parties to the investment transaction. Procuring brokers must provide written introductions of potential investors and receive written acknowledgment from The Cooper Group for representation to be recognized. Akron | OH TableTable ofof ContentsContents Section 1…………………………………. Investment Summary Investment Overview Offering Summary Section 2…………………………………. Financial Analysis Rent Roll Operating Analysis Tenant Profiles Section 3…………………………………. Property Description Location Overview Site Plan Survey Property Photos Aerial Photo Chapel Hill Mall Site Plan Location Maps Demographic Charts Akron | OH InvestmentInvestment SummarySummary Section 1 Akron | OH InvestmentInvestment OverviewOverview INVESTMENT HIGHLIGHTS 1896-1908 Buchholzer Blvd. 90% Occupied, National Center with All Corporately Backed NNN Leases In Place Akron, OH 44301 Directly Across from Chapel Hill Mall: Region’s Main Retail Hub High Visibility and Conveniently Located Alongside Buchholzer Road with Signalized Entrance to Center & Surrounding Retailers High Traffic Counts at Intersection of Buchholzer and Howe Avenue of 44,000 VPD and Directly Off Route 8 with Traffic Counts of 95,000 VPD Densely Populated with 87,566 Residents Within 3-Miles and Over 200,000 Within 5-Miles High 15.08% Projected Year-1 Cash-on-Cash Return Major Capital Improvement: New Roof (2014) with 20-Year Warranty Strong Economy with Many Headquarters & Major Employers The Cooper Commercial Investment Group has been exclusively retained by ownership to sell the 100% fee simple interest in the Chapel Center located in Akron, Ohio. The building boasts high-profile tenants that are all corporately guaranteed: Men’s Wearhouse (NYSE: MW), Sprint (NYSE: S/S&P “BB-”), H & R Block (NYSE: HRB/S&P “BBB”), Mattress Warehouse and Check n’ Go. Being offered for $2,475,000, equal to an 8.70% CAP Rate and high 15.08% projected cash-on-cash return; the property gives an investor the opportunity to acquire a collection of targeted tenants in a high-traffic area. The property is 90% occupied in a pivotal location in a densely populated market with over 87,500 residents within a 3-mile radius of the Chapel Center. The center is located seconds from Route 8 off the main Howe Avenue exit (95,000 VPD), which is the main retail hub for the region. Chapel Hill Mall is a one-story, 860,000 S.F. mall that features more than 100 stores and JCPenney, Macy’s and Sears as its anchor department stores. Being directly across from Chapel Hill Mall, the area attracts a steady flow of activity around the center. All of the center’s tenants have enjoyed a long tenure and have continually exercised their options to extend, showing their commitment and dedication to the location. The Chapel Center is positioned in along Buchholzer Blvd. and is surrounded by retailers in every direction. The center sits in the heart of it all. Buchholzer blvd. is off Howe Avenue (exit from Route 8), which is a well-known, high trafficked road in the region. The roadways that surround the mall are lined with national retailers creating a shopping destination for the region. At the intersection of Buchholzer and Howe Avenue, traffic counts are in upwards of 44,000 VPD. The strategically positioned center has a signalized entrance to the access drive, high visibility and excellent signage. The surrounding area is supported by the abundance of a diverse group of healthcare, banking, utilities, manufacturers and distribution companies, representing the City of Akron's major employers. The city began the tire and rubber industry and is known as the "Rubber Capital of the World". Goodyear, America's biggest tire manufacturer and the fifth-largest private employer in Summit County, with approximately 3,000 employees, recently built a new world headquarters in the city. Additionally, Akron is home to Fortune 500 company, FirstEnergy, who employs approximately 2,500 people. The city is the headquarters to a number of other notable companies, such as FirstMerit Bank, Sterling Jewelers and Time Warner Cable. Akron has designated an area called the Biomedical Corridor, aimed at luring health-related ventures to the region. It encompasses 1,240 acres of private and publicly owned land, bounded by Akron General Hospital on the west and Akron City Hospital on the east, and also includes Akron Children’s near the district’s center with Saint Thomas Hospital to the north of its northern boundaries. Akron's adult hospitals are owned by two health systems, Summa Health System (approx. 11,000 employees) and Akron General Health System (approx. 4,150 employees). Summa Health System operates Akron City Hospital and St. Thomas Hospital, which have been recognized as “America’s Best Hospitals” by U.S. News & World Report. With the strategic placement in the heart of the region’s retail hub, in a densely populated area with highly desirable tenants, Chapel Center is positioned to be a high-quality asset for years to come. Akron | OH OfferingOffering SummarySummary Summary Price: $2,475,000 Price/S.F. $170.16 GLA: 14,545 S.F. NOI: $215,435 CAP Rate: 8.70% Down Payment: $618,750 Year Built: 1988-1989 Lot Size: 1.06 +/- Acres Anticipated New Financing Operating Data Loan Amount: $1,856,250 Gross Potential Rent: $251,780 Loan Type: New Financing Tenant Reimbursements: $45,565 Interest Rate: 4.25% Gross Potential Income: $297,345 Amortization: 25 Years Vacancy (11.01%): ($27,720) Term: 5 Years Reimbursements from Vacancy: ($4,330) Loan-to-Value (LTV): 75.00% Effective Gross Income: $265,295 Monthly Debt Payment: $10,056 Expenses: $49,860 NOI: $215,435 Annual Debt Service: $120,672 Cash Flow After Reserves: $93,308 Cash-On-Cash Return 15.08% Akron | OH FinancialFinancial AnalysisAnalysis Section 2 Akron | OH RentRent RollRoll % of Lease Lease Rent/ Annual Lease Option Tenant GLA Total Since Start Expiration S.F. Rent Type Rate/S.F. Mattress Warehouse 4,400 30.25% 2004 1/1/2013 12/31/2017 $14.50 $63,800 NNN None Sprint 1,600 11.00% 2002 9/1/2012 8/31/2015 $18.75 $30,000 NNN None (1) 3-Yr. H & R Block 2,000 13.75% 1996 9/1/2012 4/30/2017 $19.00 $38,000 NNN Option 1: $20.90/SF Check 'n Go 1,085 7.46% 2003 4/1/2014 3/31/2017 $20.00 $21,700 NNN None (1) 5-Yr. The Men's Wearhouse 3,920 26.95% 1995 5/1/2013 4/30/2018 $18.00 $70,560 NNN Option 1: $20.70/SF Vacant 1,540 10.59% N/A N/A N/A $18.00 $27,720 NNN N/A Total Building 14,545 100.00% $17.31 $251,780 Vacancy 1,540 10.59% $18.00 $27,720 Akron | OH OperatingOperating AnalysisAnalysis Pro Forma 2015 2012 2013 2015 $/SF INCOME: Potential Rental Income Rental Income $ 215,018 $ 234,115 $ 251,780 $ 17.31 Tenant Reimbursements 43,861 43,340 CAM - - 9,600 0.66 Real Estate Taxes - - 24,198 1.66 Insurance - - 2,850 0.20 Utilities