exclusive listing jcpenney ground lease · the improvements are owned by the tenant and are not for...

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.

In Association with: For more information, please contact:

Robert C. Sanner

Partner/Broker

415-677-0439

[email protected] LIC #00869657

Rick Sanner

Vice President

415-677-0429

[email protected] LIC #01792433

Drew Fleming

Cassidy Turley

A Georgia Licensed Broker LIC #262066

Cassidy Turley Northern California www.ctbtnnn.com

JCPenney Ground Lease ATLANTA SUBURB – $19/SF LAND PRICE

Hiram, Georgia — High Growth Suburb West of Downtown

Price: $6,805,000 — 6.35% Cap Rate

17-Year Absolute Net Lease

High Traffic Retail Corridor (Super Target, Super Walmart, Home Depot, Kohl’s, etc.)

$75K Average Incomes

File Photograph

Actual JCPenney Retail Store

EXCLUSIVE LISTING

JCPenney Hiram, Georgia

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0212:29

LOCATION 5043 Jimmy Lee Smith Parkway, Hiram, Georgia. 25 miles west of downtown

Atlanta. Within Hiram Square Shopping Center.

LOT SIZE Approximately 8.361 acres — 364,205+/- square feet.

Only the land is for sale.

IMPROVEMENTS Constructed in 2009, a 104,828+/– square foot freestanding single-story JCPENNEY

retail building with onsite parking.

The improvements are owned by the tenant and are not for sale.

GROUND LEASE Ground leased to a subsidiary of, and guaranteed by, the J. C. PENNEY COMPANY,

INC. for 20 years from July 2009 until July 2029 (17+ years remaining). The current

annual rent of $432,000 increases to $453,600 in year 11. The lease is absolute net

with the tenant responsible for all taxes, insurance and maintenance including roof

and structure. There are five 5-year options at rent increases; the first with a 10%

rental increase and options 2-5 with 5% rental increases.

ANNUAL INCOME

PRICE $6,805,000 — 6.35% Cap Rate

PRICE PER SQUARE FOOT $19 — Land Only

YEARS ANNUAL RENT RETURNS

1-10 $432,000 6.35%

11-20 $453,600 6.67%

(Option 1) $498,960 7.33%

(Option 2) $523,908 7.70%

(Option 3) $550,103 8.08%

(Option 4) $577,609 8.49%

(Option 5) $606,498 8.91%



ABOUT THE TENANT

AND GURANTOR

The lease is with JCPenney Properties, and it is guaranteed by the parent which is

J. C. PENNEY COMPANY, INC. (NYSE: JCP), one of America's leading retailers,

operating over 1,100 department stores throughout the United States and Puerto

Rico. Serving more than half of America’s families each year, JCPenney offers a

wide array of private, exclusive and national brands which reflect the Company’s

vision to be America’s shopping destination for discovering great styles at compelling

prices.

For the fiscal year ended January 28, 2012, the company reported total revenues of

$17.26 billion with a net loss of $152 million. (See paragraph below). Net worth was

$4.0 billion.

In late January, 2012, JCP announced a company restructuring which was deemed

by Wall Street to be quite positive. In fact, the stock price went up about 15%(!) in

one day, from 34 to 40. The one-time restructuring costs for the year were $451

million. JCP had a reported operating loss for the year of $2 million. So, without that

one-time charge, operating earnings would have been $449 million.

JCP stock is up about 50% in the six months ending February and up about 15% in

the six weeks ending February.

JCPenney is rated “BB+” by Standard & Poor’s. This rating was not changed,

positively or negatively, as a result of any of the above.

Website: www.jcpenney.com

STORE SALES The store does not report sales.



SITE INFORMATION Located in a western bedroom community of Atlanta with a regional draw from other

western suburbs, the property is located along an extremely dense retail corridor

within a fast growing submarket of the Atlanta MSA. (See the aerial for all the

national retailers on this street). The subject neighborhood contains a significant

level of primary traffic arteries including Highway 92, Highway 120, and Highway 6.

The site is located along the north side of Jimmy Lee Smith Parkway (which is also

Route 6 and Route 278) across from a Super Target anchored power center and

adjacent to a free-standing Best Buy. This road is four lanes headed southeast,

intersecting with Interstate 20, Interstate 285 (the Atlanta perimeter road), Interstate

85 and the Atlanta Airport.

National retailers in the immediate area include Walmart Supercenter, Sears, Home

Depot, Sam's Club, Kroger, Kohl's, Big Kmart, PetSmart, Marshalls, Staples, Sports

Authority, Ross, Chase Bank, Michael's and many others.

.

TRAFFIC COUNTS

ABOUT THE AREA

Hiram is located 25 miles northwest of Atlanta. It has been extremely high growth.

(See demographics). The city is a part of the Atlanta metropolitan area.

Atlanta

The Atlanta metropolitan area is the ninth-largest metropolitan statistical area (MSA)

in the United States. In addition to Atlanta, Georgia's capital and largest city, the

Atlanta metropolitan area spans up to 28 counties in north Georgia and had a total

2010 population of 5,268,860.

The Atlanta metropolitan area is the third largest in the southern United States. The

Atlanta region has seen significant increasing population since the 1970s, and added

about 1.6 million residents between 2000 and 2010.

Atlanta is a top business city and is also the primary transportation hub of the

southeastern United States—via highway, railroad, and air. Metro Atlanta contains

the world headquarters of corporations such as: Coca-Cola, Home Depot, United

Parcel Service, Delta Air Lines, AT&T Mobility, and Newell Rubbermaid. Atlanta has

the country’s fourth-largest concentration of Fortune 500 companies, and more than

75 percent of Fortune 1000 companies have business operations in the metropolitan

area.

2007 AVERAGE DAILY TRAFFIC

Jimmy Lee Smith Parkway 37,050

http://en.wikipedia.org/wiki/Atlanta_metropolitan_area

http://en.wikipedia.org/wiki/Metropolitan_statistical_area

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/Atlanta,_Georgia

http://en.wikipedia.org/wiki/Capital_(political)

http://en.wikipedia.org/wiki/North_Georgia



ABOUT THE AREA

(CONTINUED)

Other headquarters for some major companies in Atlanta and around the metro area

include Arby’s, Chick-fil-A, Earthlink, Equifax, Gentiva Health Services, Georgia-

Pacific, Oxford Industries, RaceTrac Petroleum, Southern Company, Mirant, and

Waffle House.

SunTrust Banks, the seventh largest bank by asset holdings in the United States, has

its home office in downtown. The Federal Reserve System has a district

headquarters in Atlanta.

The city has more than 30 institutions of higher education, including the Georgia

Institute of Technology (Georgia Tech), a premier research university that is

consistently ranked among the nation’s top ten public universities; Emory University,

a prominent liberal arts and research institution that has been consistently ranked as

one of the top 20 schools in the United States; Georgia State University, a

comprehensive public research university located downtown; SCAD-Atlanta, the

Atlanta campus of Savannah College of Art and Design, a private arts university; the

Mercer University Cecil B. Day Graduate and Professional Studies campus; Morris

Brown College, a four-year, private, coed, liberal arts college; and the Atlanta

University Center, comprising Clark Atlanta University, Morehouse College, Spelman

College, and Interdenominational Theological Center, a consortium of historically-

black colleges.

Air transportation is available from Atlanta International Airport (“ATL”). It is the

primary hub for Delta Air Lines, Air Tran Airways, Delta Connection and partner

Atlantic Southeast. Atlanta Airport, with its 180 gates, serves as a major transfer

point for flights to/from smaller US cities. It is also an international gateway to/from

the United States. ATL offers over 200 nonstop destinations, many of which are

international ones. By most measures, it is the busiest airport in the United States

and one of the busiest in the world.

DEMOGRAPHICS DEMOGRAPHICS 1-MILE 3-MILE 5-MILE

Population (2011) 2,179 24,169 79,244

Average HH Income $75,024 $79,767 $81,269

Growth 2000-2011 101.04% 74.12% 45.65%



*The above net income is an estimate and does not provide for all potential costs and

expenses (i.e., maintenance, repair, etc.) that may be required of the owner. Any

reserves set forth herein are merely estimates and not based on any experience,

physical inspection, or prior knowledge. All prospective purchasers are strongly

advised to make an independent investigation to determine their estimate of costs

and expenses prior to entering into an agreement to purchase.

NOTE The information set forth herein has been received by us from sources we believe to

be reliable, but we have made no independent investigation of the accuracy or

completeness of the information and make no representations with respect thereto.

The above is submitted subject to errors, prior sale or lease, change in status, or

withdrawal without notice.

GEORGIA



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Updated Summary Report (%) February 9, 2012

Longitude: -84.748464 Latitude: 33.88955430

1 mi

Ring 3 mi

Ring 5 mi

Ring

POPULATION

1990 Total Population 1,109 9,713 31,307




% Population Change 1990-2000 -2.25% 42.91% 73.78%

% Population Change 2000-2011 101.04% 74.12% 45.65%

% Population Change 2011-2016 8.93% 10.96% 11.68%

HOUSEHOLDS

1990 Total Households 366 3,289 10,592




% Households Change 1990-2000 3.28% 44.42% 73.09%



2011 RACE

% 2011 White Population 60.21% 68.08% 68.28%

% 2011 Black Population 32.58% 25.53% 25.66%

% 2011 American Indian/Alaska Native .23% .33% .29%

% 2011 Asian/Hawaiian/Pacific Islander 1.65% 1.39% 1.33%

% 2011 Other Population (Incl 2+ Races) 5.32% 4.67% 4.44%

% 2011 Hispanic Population 6.61% 5.85% 5.73%

% 2011 Non-Hispanic Population 93.39% 94.15% 94.27%



Updated Summary Report (%) February 9, 2012

Longitude: -84.748464 Latitude: 33.88955430

1 mi

Ring 3 mi

Ring 5 mi

Ring

INCOME

2011 Per Capita Income $27,664 $28,088 $27,706

2011 Median Household Income $71,338 $66,714 $64,069

2011 Average Household Income $75,024 $79,767 $81,269

% 2011 Household Income < $10,000 4.48% 3.49% 4.17%

% 2011 Household Income $10,000-$14,999 4.23% 3.56% 3.36%















% 2011 Household Income $250,000-$499,999 .25% .49% .73%

% 2011 Household Income $500,000+ .00% .06% .07%

2011 Average Household Size 2.6 2.8 2.9

% 2011 Total Owner Occupied Housing Units 67.29% 72.93% 80.31%

% 2011 Total Renter Occupied Housing Units 32.71% 27.07% 19.69%

2011 Total Daytime Population 5,252 23,427 61,825

2011 Total Daytime Work Population 3,307 9,488 18,826

2011 Total Establishments 403 1,064 2,200

exclusive listing jcpenney ground lease · the improvements are owned by the tenant and are not for...

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