4600 kirkwood highway wilmington, de 19808 · a 1,200+ unit guaranty by tbc corporation, providing...
TRANSCRIPT
National Tire & BatteryConfidential Offering Memorandum
4600 Kirkwood Highway
Wilmington, DE 19808
Representative Photo
2
Investment Summary 03
Tenant Overview 05
Market Overview 07
JLL Contacts 12
3
Investment SummaryNational Tire & Battery –Wilmington, DE
National Tire & Battery | Wilmington, DE
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 4
Investment Summary
JLL is pleased to offer for sale the fee-simple interest in a National Tire & Battery (the “Property”, or “Asset”) located in Wi lmington, DE.
Situated within one of Wilmington’s primary retail corridors, the Property’s offering presents outstanding signalized hard co rner accessibility, along
with lease conditions including over 12 years of lease term, rental escalations and zero landlord responsibilities. The Asset ’s lease also possesses
a 1,200+ unit guaranty by TBC Corporation, providing exceptional stability as a net lease tenant. This offering represents th e opportunity to
purchase an Asset with intrinsic real estate value, location within a stable mid-Atlantic marketplace, and a strong national service-oriented tenant.
PROPERTY SUMMARYINVESTMENT HIGHLIGHTS
• The Property benefits from a lease corporately guaranteed by TBC
Corporation, which consists of company-operated retail stores under
various brands; NTB, Tire Kingdom, Merchant’s Tire and Auto Centers
and Big O Tire stores. Together, the company operates more than
1,200 locations in 42 states.
• The Asset is positioned on the signalized hard corner of Kirkwood
Highway and Limestone Road, benefiting from exposure to over 89,000
vehicles passing daily. Further, the parcel features ingress / egress on
both Kirkwood Highway and Limestone Road, providing seamless
accessibility to the Property.
• The Asset possesses highly favorable lease fundamentals, featuring a
NNN structure, over 12 years of remaining term, in-place rent
escalations and a corporate guaranty from TBC Corporation (1,200+ unit
operator).
• The Wilmington, DE retail market is experiencing stable, low vacancy
rates and an increasingly affluent demographic profile.
• The tenant’s industry possesses a very positive long-term forecast.
Growth in per capita disposable income and the increased average age
of U.S. vehicles have driven an overall increase in demand for industry
products over the past five years. Over the next five years, industry
revenue is expected to grow at an annualized rate of 2.1% to $67.6 billion
in 2023.
Address4600 Kirkwood Highway
Wilmington, DE 19808
Price $6,130,120
NOI $352,482
Cap Rate 5.75%
Tenant NTW Incorporated
Guarantor TBC Corporation
Guarantor Strength 1,200+ Units
Company Type Private
Lease Type NNN
LL Responsibilities None
Ownership Interest* Fee Simple – Condominium Parcel
Property Type Freestanding Retail & Automotive Service
Site Size* 1.19 Acres +/-
Building Size 10,038 SF +/-
Parking 52 Spaces including 2 handicap +/-
Year Built 1994
Rent Commencement 10/1/2005
Lease Expiration 9/30/2030
Remaining Lease Term** 12.5 Years
Rental Increases CPI Increases (Max 8.0%) Every 5 Years
Renewal Options 3 x 5-Years
Renewal Increases CPI Increases (Max 8.0%) Every 5 Years
Next Rental Increase Date 10/1/2020
ROFO / ROFR Yes / Yes
** As of 4/1/2018
* Asset positioned on a shared parcel with an AutoZone present within the parcel – the offering is structured as a condominium – absolutely zero CAM responsibilities for the Landlord
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 5
Tenant OverviewNational Tire & Battery –TBC Corporation
National Tire & Battery | Wilmington, DE
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 6
Tenant Overview
TBC Corporation
National Tire and Battery (NTB), is an American brand of auto service centers. NTB specializes in
Fluid Services (Oil Changes, Brake Fluid Exchange, Coolant Exchange, and Transmission Fluid
Exchange), Battery Services, Wiper Blades, Brake Services, Steering & Suspension Services, and
Vehicle Inspections. It was formerly owned by Sears until they sold the brand, which consisted
mostly of stores set apart from its name brand stores, in 2003 to TBC Corporation.
TBC Corporation, Inc. engages in the marketing and distribution of tires in the automotive
replacement market primarily in the United States, Canada, and Mexico. The corporation operates
in retail and wholesale segments. The retail segment consists of both company-operated retail tire
stores and franchised stores. The company-operated retail stores market various tires under
various brands, including NTB, Tire Kingdom, Merchant’s Tire and Auto Centers and Big O Tire
stores. Together, the company operates more than 1,200 locations in 42 states, Alberta & British
Columbia, Canada.
NTB is a member of the TBC Retail Group, a national automotive retail brand network, consisting
of over 1,200 Big O Tires, Midas, NTB, Merchant’s, and Tire Kingdom locations across over 40
states. Additionally, NTB’s reach was broadened in 2005, when TBC Corporation was acquired by
Sumitomo Corporation of America (SCOA), the largest wholly-owned subsidiary of Tokyo-based
Sumitomo, one of the world's leading traders of goods and services.
TBC Corporation still functions as an independent company of SCOA providing the same services
and products it has for many years, but has ended its 22-year stint as a publicly traded company
on the NASDAQ.
Tenant NTW Incorporated
Guarantor TBC Corporation
Guarantor Strength 1,200+ Units
Company Type Private
Founded 1956
Headquarters Palm Beach Gardens, FL
Sector Automotive Retail & Servicing
Company Website http://www.tbccorp.com/about.asp
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 7
Market Overview Wilmington, DE
National Tire & Battery | Wilmington, DE
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 8
Market Overview
Economy & Growth Considerations
• The freestanding retail market in Wilmington totals just over 9 million squarefeet. Vacancy is at 4.0 percent, and the rate has remained in a fairly tightrange between 3.8 percent and 5.2 percent for the past three years. Tenantdemand for local retail space gained momentum in 2017.
• This total occurred during a period in which no new retail space wasdelivered, meaning move-ins occurred into previously dark retail spaces andtransitively improved supply-demand conditions. However, Wilmington’sleasing market has experienced a slight drawback in early 2018. Single-tenant buildings account for approximately 40 percent of the buildings inWilmington and roughly 30 percent of the total square footage in the city.
Wilmington, DE
Wilmington is the largest city by population in the state of Delaware, with a local population of approximately 72,000 residents. The city is strategically located
along Interstate 95, which runs north-south from Maine to Florida. Wilmington is located between two large, established East Coast cities. Philadelphia (population
of 1.5 million) is located approximately 40 miles northeast of Wilmington, while Baltimore (population 620,000) is located approximately 65 miles southwest of
Wilmington.
The state of Delaware’s attractive tax policies make cities located along the I-95 such as Wilmington attractive bedroom communities. Delaware has some of the
lowest personal income tax rates in the country, while neighboring states have some of the highest rates in the United States. As such, many workers will drive as
much as an hour or more to and from Delaware because of the favorable tax policies.
Demographic Information
1-mile radius 3-mile radius 5-mile radius
2017 Population 12,419 70,753 183,472
Average Household Income $73,970 $84,185 $89,286
Median Household Income $58,811 $65,651 $65,291
Freestanding Retail Market Statistics
Market Submarket
Philadelphia West New Castle
# of Buildings 43,844 195
Total Inventory (SF) 298,136,182 1,504,269
Total Vacancy 3.3% 4.0%
YTD Net Absorption (SF) 308,583 (38,241)
National Tire & Battery | Wilmington, DE
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 9
Market Overview
Market Dynamics – Aerial MappingLocated along Kirkwood Highway, the Asset features excellent visibility and exposure to a combined traffic count of 89,000
vehicles daily. The Asset positioned on a shared parcel with an AutoZone present within the parcel – the offering is
structured as a condominium – absolutely zero CAM responsibilities for the Landlord.
National Tire & Battery | Wilmington, DE
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 10
Condominium Declaration Plan
National Tire & Battery | Wilmington, DE
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 11
Market Overview
Property Photography
Kirkwood Hwy: 43,000 VPD
Limestone Rd: 46,000 VPD
Kirkwood Hwy: 43,000 VPD
Limestone Rd: 46,000 VPD
Kirkwood Hwy: 43,000 VPD
Limestone Rd: 46,000 VPD
Limestone Rd: 46,000 VPD
Kirkwood Hwy: 43,000 VPD
National Tire & Battery | Wilmington, DE
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 12
Market Overview
Proximity to Philadelphia & Baltimore
Source: Google Earth
To Philadelphia: 41 Miles
To Baltimore: 66 Miles
National Tire & Battery | Wilmington, DE
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JLL Contacts
ADVISORS
Matthew BerresLos Angeles, CA
JLL Capital Markets
+1 949 885 2933
222 Delaware Avenue Suite 1610
| Wilmington, DE 19801
www.us.jll.com/capitalmarkets
Copyright © Jones Lang LaSalle IP, Inc. 2018This publication is the sole property of Jones Lang LaSalle and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Jones Lang LaSalle.
The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information.
We would like to be informed of any inaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance
on this publication. Jones Lang LaSalle Americas, Inc., California license # 01223413. Jones Lang LaSalle Americas, Inc. License # 19262.
Contact Information
Adam FriedlanderLos Angeles, CA
JLL Capital Markets
+1 949 296 3648
BROKER OF RECORD
Blaise FletcherWilmington, DE
JLL Market Lead
+1 302 356 2861