Offering Memorandum STARBUCKS | AT&T RETAIL CENTER WALMART & LOWES ANCHOR 11661 E Kellogg Dr • Wichita, KS 67207 1 NON- ENDORSEMENT AND DISCLAIMER NOTICE Non-Endorsements 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 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. Disclaimer THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved. STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED Wichita, KS ACT ID Z0540011 2 PRESENTED BY Daniel Greenamyre National Retail Group Kansas City Office Tel: (816) 410-1028 Cell: (913) 680-7359 [email protected] License: KS SP00236311 3 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED TABLE OF CONTENTS SECTION SECTION THE MARCUS & MILLICHAP ADVANTAGE 01 MARKET OVERVIEW 07 Market Analysis MARKETING TEAM 02 Demographic Analysis Organizational Chart Bio Page MARKETING PLAN 03 INVESTMENT OVERVIEW 04 Property Overview Location Overview Regional Map Local Map Aerial Photo Site Plan FINANCIAL ANALYSIS 05 Tenant Summary Lease Expiration Chart Operating Statement Notes Pricing Detail Proposal Price MARKET COMPARABLES 06 Sales Comparables 4 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED INVESTMENT OVERVIEW 5 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED PROPERTY OVERVIEW PROPERTY OVERVIEW Marcus & Millichap is pleased to present the Starbucks AT&T Retail center of Wichita, Kansas, located between the major thoroughfares of E. Kellogg Ave (Hwy 54), the toll road off I-35 and the signalized intersection of Greenwich Rd. The Starbucks | AT&T retail center consists of a 100% occupied multi-tenant investment property with approximately 8,186 square feet of rentable space. The subject property is anchored by a Walmart Supercenter, Lowe's, PetSmart, Michael’s and dozens of national retailers and restaurants within One Kellogg Place power center development. The subject property shares a three (3) mile radius with Whole Foods, Super Target, Cabela’s, Costco, Ross, TJ Maxx, the factory airport for Beechcraft jets and new luxury car dealership selling Porsche, BMW, Land Rover, Audi, Jaguar. The Starbucks | AT&T retail center claims the most accessible and visible pad site which is situated adjacent to the monument sign entrance of One Kellogg Place. The property is currently leased to Starbucks, AT&T, GameStop, and Great Clips. Starbucks (NASDAQ: SBUX) executed a new 10-year lease with 10% rent escalations every five years. Construction is underway for the interior, drive-thru and scheduled to be complete by the summer of 2018. AT&T (NYSE: T) is operated by AT&T Mobility, a wholly owned subsidiary of AT&T with over 5,000 retail locations. Game Stop (GameStop NYSE: GME) has over 7,276 retail locations worldwide and Great Clips with over 3,700 locations nationwide. All tenants are under a triple-net lease and pay their pro-rata share of taxes, insurance, CAM and management expenses. Wichita is the largest city in the state of Kansas. For over 1.3 million people, Wichita is the closest city proving access to upscale shopping, major airlines, specialized health care and premier entertainment. The three-mile average household income is $99,946. Kellogg Ave is undergoing major improvements to accommodate an increase in population. Traffic is projected to jump from 40,000 VPD currently to an estimated “110,000 by the year 2040” (KDOT) PROPERTY OVERVIEW ▪ 100% Occupied | 100% National Tenants | NNN Leases | Walmart Super Center & Lowes Anchored Regional Power Center ▪ Starbucks (NASDAQ: SBUX) New 10-year Lease | Drive Thru ▪ AT&T (NYSE: T) Original Tenant | 4 Five Yr Options ▪ GameStop (NYSE: GME) & Great Clips Original Tenants ▪ Subject Property Boast Premier Access and Visibility Of Power Center ▪ Densely Populated Residential Area | Wichita Largest City In State Of Kansas | Avg. HHI $99,946 in 3 Mile Radius ▪ Located On Main Thoroughfare | I-35 Toll Road Access | Traffic Count Set to increase 275% in the next 20 years 6 PROPERTYSTARBUCKS NAME | AT&T RETAIL CENTER - WALMART ANCHORED PRICINGPRICING ANDANDLOCATIONLOCATION VALUATIONVALUATIONTENANT OVERVIEWOVERVIEWSUMMARY MATRIXMATRIX 11661 E Kellogg Dr, Wichita, KS 67207 CLOSE PROXIMITY TO: # 7 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED LOCAL MAP 8 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED AERIAL PHOTO E. Kellogg Ave 40,000 VPD Subject Burger King McDonald’s 9 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED AERIAL – NW Burger King Representative Photo Summer 2018 Subject Parking Lot Expansion See Site Plan, p. 16 10 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED 3 MILE RADIUS - AERIAL – NW Factory Airport ONE KELLOGG PLACE Subject Property 11 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED PROPERTY PHOTOS 12 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED Starbucks Under Construction - May 16, 2018 1213 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED DRAWINGS 1 1214 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED DRAWINGS 2 1215 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED SITE PLAN 16 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED POWER CENTER - ONE KELLOGG PLACE One Kellogg Place, a 72 acre power center, opened in 2002 in Wichita, KS. Prominently located at the juncture of three of Wichita’s busiest roadways, One Kellogg Place provides convenient shopping and dining options to East Wichita and surrounding communities. Anchored by Walmart Supercenter and Lowe’s Home Improvement, the development also features Michaels Arts & Crafts, Slumberland and many small shops and restaurants. 1217 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED FINANCIAL ANALYSIS 18 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED FINANCIAL ANALYSIS TENANT SUMMARY 19 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED FINANCIAL ANALYSIS PRICING DETAIL 20 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED FINANCIAL ANALYSIS OPERATING STATEMENT 21 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED TENANT PROFILE Starbucks AT&T General Information General Information Tenant Name Starbucks Corporation Tenant Name AT&T Website https://www.starbucks.com/ Website https://www.att.com/wireless/ Parent Company Starbucks Corp Parent Company AT&T Headquartered Seattle, Washington Headquartered Brookhaven, Georgia Rentable Square Feet 2,070 SF Rentable Square Feet 3,282 SF Percentage of RBA 25.30% Percentage of RBA 40.00% Lease Commencement 9/28/2018 Lease Commencement 8/8/2005 Lease Expiration 2/16/2029 Lease Expiration 8/31/2021 No. of Locations 26,696 No. of Locations 5,000 Starbucks Corporation is an American coffee company and coffeehouse A wholly owned part of AT&T, AT&T Mobility provides wireless services to chain. Starbucks was founded in Seattle, Washington in 1971. As of 2017, 138.8 million subscribers in the United States, Puerto Rico and the U.S. the company operates 27,339 locations worldwide. Starbucks distinguishes Virgin Islands. AT&T Mobility is the second largest wireless itself by taste, quality, and customer experience while targeting quality- telecommunications provider in the United States. Customers purchase minded coffee drinkers, hot and cold drinks, full- and loose-leaf teas, wireless services as well as signing up for home phone, internet, U-verse Evolution Fresh juices, Frappuccino beverages, and an expanded menu for and Direct TV, as of 2015. Breakfast and Lunch. 1222 STARBUCKS | AT&T RETAIL CENTER - WALMART ANCHORED TENANT PROFILE GameStop Great Clips General Information General Information Tenant Name GameStop Tenant Name Great Clips Website https://www.gamestop.com/ Website https://www.greatclips.com/ Parent Company GameStop Corp. Parent Company Great Clips (Private Company) Headquartered Grapevine, Texas Headquartered Bloomington, Minnesota Rentable Square Feet 1,588 SF Rentable Square Feet 1,246 SF Percentage of RBA 19.40% Percentage of RBA 15.20% Lease Commencement 7/25/2005 Lease Commencement 8/13/2005 Lease Expiration 12/31/2020 Lease Expiration 12/31/2020 No. of Locations 7,276 No. of Locations 4,100 + GameStop is an American video game, consumer electronics retailer. The Great Clips is a hair salon franchise with over 4,100 locations across the company operates 7,276 retail stores throughout the United States, United States and Canada. In 2013, it had system-wide sales of $1.03 Canada, Australia, New Zealand, and Europe. The company's retail stores billion. Over 30,000 stylists are employed by Great Clips salons. The primarily operate under the GameStop, EB Games, ThinkGeek, and salons have been noted as a good investment as they are a low-cost Micromania