harbor freight · 2020. 12. 10. · festivals, public events, and museums. music city, usa is home...

H A R B O R F R E I G H TM C M I N N V I L L E , T N

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Jacob Franz

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Walter Kelley

H A R B O R F R E I G H T - M C M I N N V I L L E , T N 2

All materials and information received or derived from ARC Realty its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.

Neither ARC Realty its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. ARC Realty will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. ARC Realty makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. ARC Realty does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property.

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Disclaimer & Confidentiality

3H A R B O R F R E I G H T - M C M I N N V I L L E , T N

Table of Contents

04 Executive Summary 10 Lease Abstract

05 Tenant Profile 11 Location Maps/ Demographics

06 Retailer Maps 12 Market Overview

09 Property Images 13 Advisors

4H A R B O R F R E I G H T - M C M I N N V I L L E , T NH A R B O R F R E I G H T - M C M I N N V I L L E , T N

Price $2,000,000

Cap Rate 7.00%

NOI $140,000

Price PSF $83.17

Guarantor Corporate*See Lease Abstract for landlord responsibilities

Executive Summary

» Corporate Guarantee From Harbor Freight Tools USA, Inc., a Delaware Corporation

» Harbor Freight Has a Credit Rating of Ba3 (Moody’s)

» 10 Year *Modified Triple Net (NNN) Lease With Minimal Landlord Responsibilities

» Offering Three (5) Year Option Periods and 10% Rental Increases at Each Option Period

» Established Over 35 Years Ago, Harbor Freight Has Over 1,000 Locations in 48 States Serving Over 40 Million Satisfied Customers

» New Roof Installed in 2019 With a 20 Year Transferrable Warranty

» Located Off of Bobby Ray Memorial Parkway Which Sees Over 18,300 VPD

» Over 24,278 Residents Live Within a 5-Mile Radius With an Average Household Income of $55,462

» McMinnville is the Halfway Point Between Nashville and Chattanooga and Known for Being the Nursery Capital of the World, Operating More Than 300 Nurseries In and Around Town

» Nearby Tenant’s Include: Walmart Supercenter, Lowe’s Home Improvement, Goodwill, Big Lots, Dollar General, Walgreens, Waffle House, McDonalds, Papa John’s Pizza, Krystal, Applebee’s Grill & Bar, Arby’s, KFC and More

Highlights

Address 912 N Chancery StreetMcMinnville, TN 37110

County Warren

Building Area 24,564 SF

Land Area 2.00 AC

Built 1980

Offering Sum mary

Property Sum mary

*Tenant Shall Have the One-Time Right to Terminate This Lease By Providing Landlord With a Written Notice Any Time Prior to the Expiration of the Seventy- Eighth (78th) Full Calendar Month Following the Rent Commencement Date; If Tenant Delivers the Early Termination Notice, This Lease Shall Terminate Effective as of That Date Which is the Last Day of the Eighty-Fourth (84th) Full Calendar Month Following the Rent Commencement Date


Tenant Profile

Harbor FreightIn 1977, when Harbor Freight Tools was started as a small family-owned business, they made a commitment to provide working people with great quality tools at the lowest prices. And for over 40 years, Harbor Freight Tools has done just that. From hand tools and generators, to air and power tools, from shop equipment to automotive tools, Harbor Freight offers more than 7,000 tools and accessories at quality levels that match or exceed competing brands, but at prices that are up to 80% less.

With over 1,000 stores and over 40 million satisfied customers, Harbor Freight Tools continues to grow, but they are still family owned and for over 3 decades their mission has remained the same: deliver an incredible assortment of great quality tools at the lowest prices. Harbor Freight Tools is a privately held discount tool and equipment retailer, headquartered in Calabasas, California, which operates a chain of retail stores, as well as a mail-order and e-commerce business. The company employs over 20,000 people in the United States and has locations in 48 states. On August 14th, 2019, they opened their 1,000th store in Louisville, Kentucky.

Headquartered

Calabasas, CAWebsite

harborfreight.com

# of Locations

1,000+Company Type

PrivateFounded

1977


Retailer Maps

.

Bobby Ray M

emorial Par

kway

N Chancery St


Retailer Maps

!=

N Chancery St

Bobb

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y M

emor

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Bobby Ra

y Memori

al Parkwa

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N Chancery St

Retailer Maps


Property Images

H A R B O R F R E I G H T - M C M I N N V I L L E , T N 10H A R B O R F R E I G H T - M C M I N N V I L L E , T N

Tenant Harbor Freight Tools USA, Inc

Square Feet 24,564

Lease Type Modified Triple Net (NNN)

Commencement Date January 27, 2020

Termination Date January 31, 20301

Lease Term 10 years remaining

Renewal Options 3 x 5 years

Rent Increases 10% at Option Periods

Permitted Use Retail – Hardware Supplies

Property Taxes Reimbursable to Landlord2,3

Insurance Tenant’s Responsibility - Reimbursable to Landlord2

Common Area & Parking Lot Tenant’s Responsibility2,4

Roof & Structure Landlord’s Responsibility4

Repairs & Maintenance Tenant’s Responsibility2,4

HVAC Tenant’s Responsibility2

Utilities Tenant’s Responsibility

1 Tenant shall have the one-time right to terminate this lease by providing Landlord with a written notice any time prior to the expiration of the seventy-eighth (78th) full calendar month following the rent commencement date. If Tenant delivers the Early Termination Notice, this Lease shall terminate effective as of that date which is the last day of the eighty-fourth (84th) full calendar month following the rent commencement date.

2 Tenant and Landlord agree that Additional Rent Shall be capped at the Additional Rent Estimate through the end of the first full calendar year following the Rent Commencement Date. Thereafter, Additional Rent shall be the lessor of (x) actual Additional Rent, or (y) one hundred five percent (105%) of Tenant’s Additional Rent obligation for the preceding year.

3 Estimated Property Tax Liability at the Effective Date per Section 8 of the lease agreement is $13,357. Real Property Taxes shall not include: (i) an increase in Real Property Taxes (from and after the Effective Date) relating to, as a result of, or following a transfer of ownership of the Premises occurring during the primary term…all of the foregoing above being Landlord’s obligation to pay without reimbursement.

4 Landlord shall be responsible for repair, maintenance, and replacement of the Building structural elements, concrete slab, exterior walls, roofs, roof coverings, foundations, utility pipes and conduits located in or below the floor slab of the Building or below the finished grade of the Premises, and repaving or replacing the parking areas (as compared to repairing, restriping, and resealing, the parking areas, which are Tenant’s responsibility), for the replacement of the landscape irrigation system (if any), and for the replacement of the fire protection/sprinkler system.

$5.70 Per

Square Foot

24,564 Square

Feet

$140,000 Annual

Base Rent

Lease Abstract


Location Maps / Demographics

N Chancery St18,198 VPD9,349 VPD

Bobby Ray M

emorial Par

kway 18,307 VPD

70S

3 Miles 5 Miles 10 Miles

Population 17,760 24,278 37,654

Average Household Income $52,051 $55,462 $56,227


M C M I N N V I L L E , T E N N E S S E EMcMinnville is the largest city in and the county seat of Warren County in the stateof Tennessee. The population was estimated to be about 13,688 residents at the 2018 census. The city is located in the middle of 3 major cities being miles from 75 Nashville, 76 miles to Chattanooga, and 120 miles from Knoxville. McMinnville, like many smaller American cities and towns, has gone through a revitalization of its downtown area. “Main Street McMinnville” serves as the city’s non-profit revitalization organization funded by the National Trust for Historic Preservation and Tennessee’s own Main Street Program.

The McMinnville area includes over 50 business and manufacturing plants and over 450 nurseries. The nursery business generates over $300 million in revenue and has given the area the title of “Nursery Capital of the World”. Due to the cities proximity, Nashville’s economy also affects McMinnville’s. As the “home of country music”, Nashville has become a major music recording and production center. The Big Three record labels, as well as numerous independent labels, have offices in Nashville. Nashville has been the headquarters of guitar company Gibson since 1984. Since the 1960s, Nashville has been the second-largest music production center in the U.S. Nashville’s music industry is estimated to have a total economic impact of $6.4 billion per year and to contribute 19,000 jobs to the Nashville area. The city is also home to Fortune 500 companies being Amazon, Bridgestone, Dell, Dollar General, Phillips, Nissan and Tractor Supply Company.

McMinnville is about an 80 minute drive to downtown Nashville, which is a perfect place to spend the day. Just down the road, Nashville hosts a multitude of leading festivals, public events, and museums. Music City, USA is home to the stage of the Grand Ole Opry, which operates the longest-running live radio show in the world, as well as the one of a kind Country Music Hall of Fame and Museum. It is also the site of the Tennessee State Fair, an annual 9-day celebration that features rodeos, tractor pulls and variety of local musicians and craft brewers and restaurateurs. Nashville is home to the Melodious attractions like the the Musicians Hall of Fame and Museum and the Parthenon, which is a replica of the famous Greek structure that represents Nashville’s role as the Athens of the South.

Downtown McMin nvil le

Downtown Nashvil le

Downtown Nashvil le

Market Overview


E X C L U S I V E LY M A R K E T E D B Y :

J a c o b F r a n z205.240.0682

[email protected]

Wa l t e r K e l l e y229.343.0167

[email protected]

Advisors

harbor freight · 2020. 12. 10. · festivals, public events, and museums. music city, usa is home...

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