WATERBURY PLAZACONFIDENTIAL OFFERING MEMORANDUM WATERBURY PLAZA WATERBURY, CONNECTICUT UNIQUE OPPORTUNITY TO ACQUIRE A DUAL TENANTED, DOMINANT GROCERY ANCHORED CENTER OFF I-84 WITH RECENTLY EXTENDED LEASES. OFFERED AT 7.3% CAP RATE. EXECUTIVE SUMMARY | 1 DISCLAIMER LIMITING CONDITIONS © 2018 Holliday Fenoglio Fowler, L.P. Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. Holliday Fenoglio Fowler, L.P. (“HFF”) has been engaged by Owner to issue this Confidential Offering Brochure, regarding the sale of the Property. The Property is being sold “as-is, where-is” with limited representations and warranties from Owner. Additionally, Owner is not prepared to expand its representations and warranties beyond those contained in Owner’s form disposition contract. Neither the Owner nor HFF has made any warranty or representation, express or implied, about the Property whatsoever, including, without limitation, physical or environmental conditions, its structure or systems, compliance with laws, the ability to expand the Property, or any licenses or permits. Information concerning the Property described herein has been obtained from sources other than HFF and Owner and HFF make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references 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 buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. Financing JAMES KOURY MARC MANDEL STEVE SCHRENK KELLIE COVENEY PORTER TERRY T: 617.848.1554 T: 484.532.4212 T: 484.532.4213 T: 617.848.5852 T: 617.848.1576 [email protected] [email protected] [email protected] [email protected] [email protected] DISCLAIMER TABLE OF CONTENTS EXECUTIVE SUMMARY 1 Investment Highlights Regional Competition Property Aerial Site Plan ASSET OVERVIEW 6 General Information LOCATION OVERVIEW 7 Market Overview Neighboring Centers TENANCY 12 Rent Roll Tenant Profiles FINANCIAL SUMMARY 15 In-Place Income 10-Year Cash Flow Projection Underwriting Assumptions TABLE OF CONTENTS WATERBURY PLAZA SECTION EXECUTIVE SUMMARY Holliday Fenoglio Fowler, L.P. a Connecticut licensed real estate broker (“HFF”) has been exclusively Iretained by the seller to present the sale of Waterbury Plaza (the “Property” or “Asset”). This sale provides qualified buyers a unique opportunity to acquire a 139,653 SF shopping center with two coveted, regional anchor tenants - Stop & Shop, generating over $29,000,000 (2017) in sales and Raymour & Flanigan. Occupying a total of 70,163 square feet (both store and gas station), Stop & Shop is the center’s largest tenant and has been in the center since 1992. Stop & Shop’s dedication to the center demonstrates both the historical success of the store and prowess of the center within the submarket. Raymour & Flanigan has been in the center since 2002 and both anchors have recently extended their lease term 10 years (R&F) and 5 years (Stp), demonstrating their commitment to the center. Located just a few hundred yards from the access ramps to Interstate 84 and just 3 miles from Route 8, Waterbury Plaza is ideally positioned at the figurative and literal crossroads of the southwest corridor of Connecticut. The southwest quadrant of the state is along the direct corridor from Hartford and Boston to New York City, creating both high traffic counts and inevitably, an attractive retail destination. The southwest quadrant of the state is home to many of Connecticut’s wealthiest towns and strongest demographics, of which Waterbury Plaza is a direct beneficiary. Waterbury serves as the region’s primary retail hub and has long been the focus of national tenants due to the city’s dense demographics and highway accessibility. National retailers within the area include BJ’s Wholesale Club, Costco, Shaw’s, Wal-Mart, Target and TJ Maxx. The concentration of major national tenants nearby helps Waterbury Plaza generate consumer demand from an expansive trade area. EXECUTIVE SUMMARY | 1 WATERBURY PLAZA INVESTMENT HIGHLIGHTS Waterbury Plaza Address: 410 Reidville Drive Stop & Shop and Raymour & Flanigan are fully net and reimburse CAM, Insurance and Tax. Landlord is Town, State: Waterbury, CT responsible for Roof & Structure. Square Feet: 139,653 Acres: 14 High Volume Grocer: Stop & Shop has consistently generated over $29mm in sales for the past 7+ years. Leased: 100% Stop & Shop, Stop & Shop Fuel Station, Major Tenants: Both anchors recently extended their lease term: Raymour & Flanigan extended their term for 10 Raymour & Flanigan years through 2027 and Stop & Shop recently extended for 5 years through 2023. These extensions, when considered with their long term occupancy, demonstrate their long term commitment to the center. 695 Vehicles, includes 26 ADA spaces; Parking: 4.97:1,000 Zoning: CA: Arterial Commercial Zoning District Dynamic Retail Location: Located a few hundred yards from the access ramps of Interstate 84 and 3 94,000 ADT on I-84, 12,900 ADT on miles from Route 8, Waterbury Plaza benefits from its location at the southwest quadrant of the state. Traffic Flow: Further, it is in close proximity to Brass Mill Center and Brass Mill Commons, the largest retail destination Reidville Drive in Waterbury, increasing its overall capacity. Trade Area (5 miles): 163,000 Pop., $75,000 Avg. HHI In-Place NOI: $1,810,030 Proximity to Interstate 84: Waterbury Plaza is ideally positioned along Interstate 84 and Reidville drive. Asking Price: $24,700,000 Both of which have 94,000 and 12,900 average daily vehicles, respectively. Cap Rate: 7.3% Ability to acquire property ‘as-is’; minimal Capital investment needed: The seller has invested in the Property over the years, spending over $500,000 in a roof replacement for both Stop & Shop and Raymour & Flanigan over the past two years. Attractive Trade Area: Waterbury is the second most populous town in Connecticut. Waterbury Plaza benefits from a dense 3 mile population of 81,000 people and an average household income of $61,000. Within 5 miles, there are 163,000 people and an average household income of $75,000. Waterbury Plaza is being offered free and clear of debt at an asking price of $24,700,000, a 7.3% Cap Rate on In Place Income. EXECUTIVE SUMMARY | 2 New Hampshire Vermont Maine Belmont Rochester Merrimack Portsmouth Nashua ALBANY WATERBURY PLAZA Tenants Calling Massachusetts Boston Waterbury Home 90 91 WORCESTER 90 90 90 84 84 395 84 Hartford Rhode Island 8 91 95 395 Waterbury Connecticut 84 84 8 91 95 395 WATERBURY PLAZA WATERBURY , CONNECTICUT 95 8 New Haven 95 95 Stamford NEW YORK CITY 25 Miles EXECUTIVE SUMMARY | 3 WATERBURY PLAZA 8 84 8 BRASS MILL CENTER MALL 8 WATERBURY Exit 21 84 WATERBURY PLAZA WATERBURY , CONNECTICUT Exit 25A EXECUTIVE SUMMARY | 4 WATERBURY PLAZA REIDVILLE DRIVE 12,900 AD T Tenant SF: Raymour & Flanigan 69,490 SF Webster Bank Stop & Shop 66,663 SF STP Fuel station 3,500 SF Stop & Shop Gas Station OCCUPIED NOT INCLUDED IN SALE INTERST ATE LANE EXECUTIVE SUMMARY | 5 WATERBURY PLAZA SECTION ASSET OVERVIEW IIGENERAL INFORMATION Address: 410 Reidville Drive Town, State: Waterbury, CT Square Feet: 139,653 Acres: 14 Acres Leased: 100% Major Tenants: Stop & Shop, Stop & Shop Fuel Station, Raymour & Flanigan Parking: 695 Vehicles, includes 26 ADA spaces; 4.97:1,000 Zoning: CA: Arterial Commercial Zoning District Traffic Flow: 94,000 ADT on I-84 Trade Area (5 Miles): 163,000 Pop., $75,000 AHHI Stop & Shop - 1992 Year Built: Stop & Shop Fuel Station - 2009 Raymour & Flanigan - 2002 Sewer: City of Waterbury Water: Regional Water Authority - Connecticut Gas: Southern Connecticut Gas Electricity: United Illuminating Company Raymour & Flanigan - 2 years old Roof Age: Stop & Shop -1 Year old Stop & Shop fuel station - 9 years old ASSET OVERVIEW | 6 SECTION III LOCATION OVERVIEW WATERBURY PLAZA MARKET OVERVIEW Waterbury, CT - With a population of over 110,000, Waterbury is the metropolitan center of a 13-town region known as the Central Naugatuck Valley Region. Within the 13-town region, many cultural, educational, and recreational destinations, including shopping malls, museums, nature trails, and amusement parks are readily available. In addition, Waterbury’s close proximity to the beaches and boating of Long Island Sound further attract residents and guests to explore the area and all Waterbury has to offer. The City of Waterbury stretches 29 square miles and is the second largest city (by population) in New Haven County, Connecticut. Waterbury is 33 miles from Hartford, 77 miles from New York City, 85 miles from Providence, and 120 miles from Boston. Centered about the intersection of Interstate 84 and state Route 8, Waterbury offers a variety of regional retail, commercial, health, educational and social services. TRANSIT-ORIENTED COMMUNITY As a part of the New York Metropolitan Area, Waterbury not only has excellent access via state and interstate highways, but also is directly connected to New York City’s Grand Central Terminal via the Metro North Railroad. The Metro-North Railroad runs commuter trains throughout the day to and from Waterbury Station with connections to New York City.