c o n t e n t s · email: [email protected] cooperating broker: amanda leigh coleman of...
TRANSCRIPT
Catherine Vaughn
cell:843.437.7310
C O N T E N T S
1 Investment Summary
2 Location Map
3 Property Highlights
4 Rent Rolls
5 Profit & Loss
6 Site Plan
7 Retail map
8 Area Overview
9 Demographics
10 Confidentiality & Disclaimer
Catherine Vaughn - Associate
843-437-7310
Jesse Long – Broker in Charge
770-653-9400
Birchin Lane Realty Advisors, LLC
222 W. Coleman Boulevard, Suite 202
Mount Pleasant, SC 29464
Office: 843.408.0858
Fax: 843.414.5209
Email: [email protected]
Cooperating broker: Amanda Leigh Coleman of Distinct Properties, LLC
License # 0225220216 (Individual) & 022602851 (Firm)
2
Catherine Vaughn
cell:843.437.7310
I N V E S T M E N T S U M M A R Y
O F F E R I N G S U M M A R Y
Price:
Cap Rate:
NOI:
Occupancy as of
January 2018:
$5,958,450
8.00%
$476,676
100%
P R O P E R T Y S U M M A R Y
Address
County
Building Area
Land Area
Built
11083 & 11085 Marsh Rd
Liberty Station
Bealeton VA, 22712
Fauquier County
13,068 SF & 8,200 SF
3.81 & 0.19
2007
3
Catherine Vaughn
cell:843.437.7310
I N V E S T M E N T S U M M A R Y
A S S U M A B L E D E B T
Original Loan
Amount:
Interest Rate:
Maturity Date:
$4,000,000
4.75%
09/01/2042
T E N A N T S U M M A R Y
11083 Marsh Road Building 3
Cingular Wireless
VA ABC
Heymarket Cleaners
Snap Fitness
C&N Beauty Salon
El Gave Restaurant
11085 Marsh Road Building 6
Grioli’s Italian Restaurant
Advanced America
Smiles on Bealton
4
Catherine Vaughn
cell:843.437.7310
P R O P E R T Y H I G H L I G H T S
STRONG REAL ESTATE FUNDAMENTALS
• Located in a growing community that serves several surrounding
neighborhoods, apartment complexes, and schools
• A mile away from new development – Mintbrook – a 475
Residential Units & Commercial space with Phase I delivered and
Phase II under construction
• Less than a mile away from Bealeton Gateway Development – an
eight acre mixed use development adjacent to Mintbrook
• Well maintained brick building built in 2007
ESTABLISHED, EASILY ACCESSIBLE SHOPPING
CENTER WITHIN REGIONAL RETAIL TRADE AREA
• Located off Route 1 (Jefferson Davis Hwy) with 25,000 VPD and
I-95 in access of 122,000 VPD.
• Access to consumers from the town of Bealeton as well as
Warrenton (only 10 miles away) and Manassas (21 miles away)
• Aspen Apartment complex (a 238 unit complex) located directly
behind Liberty Station (11083 & 11085 Marsh Road)
8
LONG-TERM LEASES AND TENANT COMMITMENT
• VA ABC, Cingular Wireless, and Haymark Cleaners have been at
this location since 2007
• New 10 year lease just signed in May 2017 by Smiles on
Bealeton Dentistry
• Grioli’s Italian Restaurant expanded recently (July 2018), took
over the space previously occupied by Advanced America and
signed a new 5 year lease at $24.50
STRONG DEMOGRAPHICS
• Bealeton, VA is 57 miles south of Washington DC and is located
in the Washington – Arlington – Alexandria, DC, VA, MD, WV
Metropolitan Area
• The Washington metropolitan area has been ranked the most
highly-educated metropolitan area in the nation for four
decades. The metro area anchors the southern end of the densely
populated Northeast megalopolis, with an estimated total
population of 6,131,977 as of the 2016 U.S. Census Bureau
estimate, making it the sixth-largest metropolitan area in the
country and largest metropolitan area in the Census
Bureau's Southeast region
Catherine Vaughn
cell:843.437.7310
R E N T R O L L S
9
Tenant Sq. Ft.
Base
Rent
per Sq.
Ft.
Base
Monthly
Rent
Monthly
CAM Total Rent Sec. Dep. RateLast
Increase
Next
Increase
Commenc
ement Expiration Term
Renewal
Options
%
Space
A - Cingular
Wireless 1,103 $33.22 $3,053.47 $493.91 3,053.47 $4,412.00 3.0% 2/1/16 2/1/18 6/13/05 1/31/19 10
One 5 year option
w/ 160 day notice
& 3% annual
increase 8.5
B -
Haymarket
Cleaners 1,416 $28.52 $3,364.80 $633.36 3,998.16 $2,360.00 3.0% 6/1/17 6/1/18 6/6/05 5/31/20 10
Two 5 year
options w/ 160
day notice & 3%
annual increase 10.9
C&D – Snap
Fitness
2,530 $22.84 $4,816.34 $1,130.76 5,947.10 $3,373.33 CPI 7/1/17 7/1/18 7/1/09 6/30/19 5
Two 5 year
option w/ 160 day
notice & CPI
increases
between 0% and
3% 19.46
E - VA ABC 2,833 20.80 $4,910.53 $1,259.75 6,170.28 $0.0
See
Lease 7/1/17 7/1/18 7/1/05 6/30/22 5 None 21.68
F – Touch of
Asia Nails
1,190 $21.38 $2,000.00 $528.77 2,528.77 $9,420.85
See
Lease 2/1/17 2/1/2023 2/1/13 1/31/23 5 None 9.1
G - C&N
Beauty
Salon 1,340 $21.28 $2,000,00 $596.18 2,596.18 $12,729.96
See
Lease 2/1/17 01/01/2022 02/15/13 12/31/2021 5 1 5 year option 10.26
El Agave 2,656 $22.95 $5,078.99 $1,191.19 6,543.37 $4,869.33 3.0% 7/1/17 7/1/18 7/1/11 6/30/20
Two 3 year
options w/ 160
day notice & 3%
annual increase 20.5
Total 13,068 $26,424.15 5,833.92 32,258.07 37,165.47
11083 Marsh Road (Building 3)
Catherine Vaughn
cell:843.437.7310
R E N T R O L L S
10
Tenant Sq. Ft.
Base Rent per
Sq. Ft.
BaseMonthly
RentMonthly
CAM Total Rent Sec. Dep. RateLast
IncreaseNext
IncreaseCommenc
ement Expiration TermRenewal Options
% Space
AB -Grioli'sItalian Bistro 3,280 $24.59 $6,721.46 $1,292.89 8,014.35 $7,106.66
See Lease 7/1/17 7/1/18 6/7/07 6/30/23 10
Two 5 year options w/
160 day notice & 3%
annual increase 40
Grioli’s 1,640 $24.50 $3,348.33 See lease See lease See leaseSee
Lease 7/1/17 8/1/18 7/12/18 06/30/23 5
Lease Starts August 1,
2018 20
DE -Dentist 3280 $16.10 $4,400.00 $1,292.89 5,692.89 5/1/18 5/1/17 4/30/26 10 40
Total 8,200 $14,197.84 3,232.23 17,430.07 7,106.66
11085 Marsh Road (Building 6)
** Grioli’s is taking over the Advanced America Space July 2018 for $24.50 PSF for 5 years.
Catherine Vaughn
cell:843.437.7310
R E N T R O L L S
11
Tenant Sq. Ft.
Base
Rent
per Sq.
Ft.
Base
Monthly
Rent
Monthly
CAM Total Rent Sec. Dep. RateLast
Increase
Next
Increase
Commenc
ement Expiration Term Renewal Options
%
Space
AB - Grioli's Italian Bistro 4,920 $24.59 $10,081 $1,292.89 8,014.35 $7,106.66
See
Lease 7/1/17 7/1/18 6/7/07 6/30/20 10
Two 5 year options w/ 160 day notice & 3% annual increase 60
C - Advance America
1,640 $22.51 $3,076.38 $646.45 3,722.83 $0.00 3.0% 8/1/16 8/1/18 7/12/07 7/31/18
One 5 year option w/ 160 day notice & 3% annual increase 20
DE - Dentist 3280 $16.10 $4,400.00 $1,292.89 5,692.89 5/1/18 5/1/17 4/30/26 40
Total 8,200 $14,197.84 3,232.23 17,430.07 7,106.66
11085 Marsh Road (Building 6)
Catherine Vaughn
cell:843.437.7310 fax: 843.414.5209 [email protected]
FINANCIAL SUMMARY
12
ACQUISITION COSTS
Purchase Price, Points & Closing Costs $6,105,730
Investment Cash $1,831,719
First Loan $4,274,011
INVESTMENT INFORMATION
Purchase Price $6,105,730
Price per Tenant $555,066
Price per SF $287.09
INCOME, EXPENSES & CASH FLOW
Scheduled Rental Income $490,876
CAM Reimbursement $108,794
Gross Scheduled Income $599,670
Total Vacancy & Credits $ -
Effective Gross Income $599,670
Operating Expenses $5.23 /SF $111,212
Net Operating Income $488,458
Debt Service $259,869
Cash Flow Before Taxes $228,589
FINANCIAL INDICATORS
Cash on Cash Return Before Taxes
12.48%
Debt Coverage Ratio 1.88
Capitalization Rate 8.00%
Gross Income / SF $23.08
Catherine Vaughn
cell:843.437.7310 fax: 843.414.5209 [email protected]
F I N A N C I A L S U M M A R Y
13
The information, calculations and data presented in this Offering Memorandum are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrating projections and analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting,investment, real estate, tax or other professional advice, consultation or service. The user of this information should consult with a professional in the respective legal, accounting, tax or other professional area before making any decisions.
ANALYSIS
Analysis Date: Jan-18
PROPERTY
Property: Bealton Center
Property Address: 11083 Marsh Road (Building 3) & 11085 Marsh Road (Building 6) Bealton, VA
Year Built: 2013
PURCHASE INFORMATION
Property Type: Multi-Tenant Retail
Purchase Price $6,105,730
Cap Rate: 8.00%
Tenants: 11
Total Rentable SF: 21,268
FINANCIAL INFORMATION
Down Payment: $ 1,831,719
LOANS
LTV Debt Term (Yrs) Rate Mth Pmt Annual Pmt LO Costs
Fixed: 70% $4,274,011 30 4.50% $21,656 $259,869
INCOME & EXPENSES
Gross Operating Income: $599,670
Monthly Gross Operating Income: 49,972
CONTACT INFORMATION
Jesse Long
770.653.9400 • [email protected]
Catherine Vaughn
cell:843.437.7310
A R E A O V E R V I E W
M I N T B R O O K D E V E L O P M E N T
16
Mintbrook is a 550 unit planned community that brings
together schools, parks & playgrounds, retail shopping, and
brand new homes all into one location. From the gorgeous
color schemes, to Stribling Park, everything is designed to
reflect the styles & values of a small town.
In addition to the onsite retail that our new community will
offer, you’ll also be close to Bealeton Village Shopping
Center which offers many shopping and dining options.
Following the vision of a small hometown lifestyle, on-site
schools will allow children to walk to an elementary and
middle school. High School students will attend the local
Liberty High School, which is located across the street.
Natural beauty is also plentiful in Mintbrook. Farms fill the
landscape and parks, such as Brandy Station Battlefield
Park and Whitney State Forest are only 20 minutes away.
Find family activities in the area such as the Flying Circus
Barnstorming Airshow. Mintbrook also provides you close
access to Warrenton, a town where you can work and play.
Spend the day discovering shops full of antiques, books,
jewelry and more. Or, stop by one of the many restaurants
and enjoy a meal in charming Old Town Warrenton.
Catherine Vaughn
cell:843.437.7310
A R E A O V E R V I E W
B E A L E T O N , V I R G I N I A
18
Bealeton, VA is a quaint town located just 57 miles south of
Washington DC. Bealeton provides the smaller town
lifestyle just outside of the DC area. The population of
Bealeton grew 3.21% from 2014 to 2015 while the
household income grew 3.68% from $86,719 to $90,000
and continues to grow.
Known for its rich history and tranquil environment,
Bealeton mixes convenience with a distinct sense of
character.
Being in a small town has its benefits – Messick’s Farm
Market with onsite fruit picking is a few miles away,
gorgeous Virginia Wineries are very close and you can live
in this environment without the congestion that even
Gainesville & Northern Fauquier experience now.
Bealeton continues to improve their community with new
developments such as Mintbrook that is under construction
with many houses already sold.
The Mintbrook Community in Bealeton offers an affordable
and accessible option to the expensive housing of
Manassas and Gainsville, VA.
The community is located just 1 stoplight away & less than
2 miles from Route 29, 28 & 17 which makes getting to I-66
or the VRE easy and Washington, DC within reach.
Catherine Vaughn
cell:843.437.7310
D E M O G R A P H I C S
2017 SUMMARY 1 mile 3mile 5 mile
Population 3,631 8,174 13,908
Median Household Income
$82,451 $77,922 $78,888
Average Household Income
$92,156 $87,944 $92,110
PROJECTED 2021DEMOGRAPHICS
1 mile 3mile 5 mile
Population 3,808 8,712 14,807
Median Household Income
$89,900 $83,540 $84,624
Average Household Income
$104,614 $99,537 $104,041
19
C O N F I D E N T I A L I T Y & D I S C L A I M E R
21
The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from
Birchin Lane Realty Advisors, LLC (“Birchin Lane”) and should not be made available to any other person or entity without the written consent of Birchin Lane.
The information provided and to be provided with respect to property being marketed was obtained from variety of sources and OWNER HAS NOT MADE ANY
INDEPENDENT INVESTIGATION OR VERIFICATION OF THE INFORMATION PRESENTED OR TO BE PRESENTED WITH RESPECT TO THE PROPERTY.
OWNER AND ITS AGENTS MAKE NO REPRESENTATIONS OR WARRANTIES AS TO THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION.
Birchin Lane Realty Advisors, LLC (“Birchin Lane”) hereby advises all prospective purchasers of Net Leased property as follows:
The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable. However, Birchin Lane has not and will not verify any
of this information, nor has Birchin Lane conducted any investigation regarding these matters. Birchin Lane makes no guarantee, warranty or representation whatsoever
about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the
accuracy and completeness of all material information before completing any purchase. This Offering Memorandum is not a substitute for your thorough due diligence
investigation of this investment opportunity. Birchin Lane expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any
projections, opinions, assumptions or estimates used in this Offering Memorandum are for example only and do not represent the current or future performance of this
property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax,
financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the
suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must
request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an
important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired
locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area.
Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease;
cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is
responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood
of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential
replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Offering Memorandum
you agree to release Birchin Lane Realty Advisors, LLC and hold it harmless from any kind of claim, cost, expense, or liability arising out of your
investigation and/or purchase of this net leased property.
A L L P R O P E R T Y S H O W I N G S A R E B Y A P P O I N T M E N T O N L Y . P L E A S E C O N T A C T B I R C H I N L A N E .
Catherine Vaughn
cell:843.437.7310