investment highlights - loopnet · aldi + investment highlights groundandspacepartners.com + 1...

Asking Price: Cap Rate:

This property is listed in conjunction with Virginia licensed broker James M. Nidiffer of Interstate Realty Co. (license 0225018202).

BRISTOL, VIRGINIA

ALDI

Asking Price: Cap Rate: Asking Price: $2,778,000Cap Rate: 4.50%

MICHAEL ZIMMERMAN + [email protected]

KATLIN SMITH + [email protected]

groundandspacepartners.com + 1ALDI + Investment Highlights

Attractive Investment+ Within The Falls Development (1M+ SF) Along I-81 (49K ADT) + High-Performing Tenant With 1,750 U.S. Stores in 35 States + No Landlord Responsibilities on 20-Year Ground Lease + Highly Visible Site Directly Off Lee Hwy. (17K+ ADT)

Highly Connected Site+ I-26 & I-81 Easily Connect Site to WV, KY, TN & NC Markets+ I-81 Links Bristol to Entire East Coast Region + Tri-Cities Region Home to 500K+ Residents+ Close Proximity to Two Regional Airports

Strategic Retail Site+ The Falls Expected to Generate Millions in Retail Sales+ One of Two Commercial Retail Corridors in Bristol + Near Lowe’s, Zaxby’s & The First Cabela’s in VA+ Site Captures Local & Regional Visitors

Investment Highlights

Tenant Aldi (Virginia), LLC DBA ALDI

Guarantor Corporate

Asking Price $2,778,000

Cap Rate 4.50%

Address 720 Cabela DriveBristol, VA 24202

Building Size ± 22,152 SF

Land Size ± 2.04 AC

Year Built 2017

Annual Rent $125,000

Lease Term 20 Years

Lease Type Ground

Commencement October 27, 2017

Expiration October 31, 2037

Increases 9% Increases Within Option Periods

Options 4 x 5-Year Options

Landlord No Responsibilities

Rent ScheduleYears NOI Increase1–20 (Base Term) $125,000 N/A

21–25 (Option 1) $136,250 9.0%

26–30 (Option 2) $148,513 9.0%

31–35 (Option 3) $161,879 9.0%36–40 (Option 4) $176,448 9.0%

groundandspacepartners.com + 2ALDI + Lease Summary

Lease Summary

Proposed Tenant

groundandspacepartners.com + 3ALDI + Aerial

Road ImprovementsRecent enhancements to The Falls include a $20

million investment in new road improvements, which

includes the addition of four lanes and three traffic lights.

Proposed Tenant


ALDI is the common brand of two leading global discount supermarket chains that boast over 10,000 stores in over 18 countries that span the globe from the United States all the way to Australia. ALDI—operationally split between Aldi Nord (known as Trader Joe’s in the U.S.) and Aldi Süd (known as ALDI in the U.S.)—have an estimated combined turnover of more than $59 billion annually.

Founded by the Albrecht family in Germany in 1961, ALDI’s first U.S. flagship supermarket opened in Iowa in 1976. Since then, the ALDI empire has grown to over 1,750 stores in 35 states, and the Company recently announced a $3.4 billion capital investment to expand to 2,500 stores nationwide by the end of 2022. With this growth, ALDI will be the third largest grocery store by count in the U.S., serving 100 million customers monthly. As of March 2018, ALDI has continued to grow its partnership with Instacart by providing grocery delivery services in Atlanta, Dallas, Los Angeles, Chicagoland, Northwest Indiana and Rockford, with the potential for future expansion.

The chain has been named the value leader among U.S. grocery stores for the seventh year running according to an independent survey of U.S. consumers. ALDI received the 2015 Supermarket News Retailer Achievement Award for its ongoing business expansion and evolution and, in 2017, the chain was recognized as a value leader among U.S. grocery stores by a Market Force Information® survey of U.S. consumers.

ALDI

groundandspacepartners.com + 5ALDI + Tenant Profile

ALDIMarket Overview Bristol, Virginia

groundandspacepartners.com + 6ALDI + Market Overview

The Falls OverviewExit 5 is the natural expansion of the highly successful retail center—which features more than one million square feet of retail space—at Exit 7. Located in an untapped trade area for a development of this kind, The Falls is centrally located in a high-impact area for regional success. Anchored by the only Cabela’s within a 2.5-hour drive, The Falls is gaining a new customer base and will bring a greater sales impact for all tenants.

Lee Highway: 17,000 ADT

Interstate 81: 49,000 ADT

Proposed TenantOpens Aug. 2018

groundandspacepartners.com + 7ALDI + The Falls Shopping Center



Southwest Virginia Higher Education




The Falls


VIRGINIA

TENNESSEE

12

3

4 5

6

7

8

9

10

11

Area Attractions1. King University - 4.0 miles 2. Bristol Regional Medical Center - 7.3 miles3. Virginia Highlands Airport - 8.6 miles 4. Washington County Fairgrounds - 10.0 miles 5. VA Highlands Community College - 10.8 miles 6. SWVA Higher Education Center - 10.8 miles7. Bristol Motor Speedway - 11.4 miles8. The Barter Theatre - 12.8 miles9. Johnson Memorial Hospital - 16.4 miles10. Tri-Cities Airport - 20.7 miles11. Emory & Henry College - 21.7 miles

groundandspacepartners.com + 10ALDI + Regional Aerial

Thanks to its close proximity to Interstate 81, Bristol is linked from Tennessee in the south to New York in the north, making it an ideal center for economic development and growth. Given Bristol’s wide variety of entertainment, shopping and recreational opportunities in the midst of a rural environment, the city is often referred to as the “Capital of Southwest Virginia.”

The city is also known as the “Birthplace of Country Music” because Bristol was the location of the first country music recordings made for national distribution. Today, country music murals and monuments line Bristol’s State Street. The Birthplace of Country Music Museum provides a forum for live performances, and it also features collections of musical instruments and memorabilia from country music legends like Lester Flatt, Earl Scruggs and Tennessee Ernie Ford.

Bristol Overview

Tri-Cities Region: The Property sits within the city of Bristol, Virginia, just across the state line from its twin city of Bristol, Tennessee. The city is part of the larger Tri-Cities region, which is home to approximately 500,538 residents and is served by Interstate Highways 26 and 81. Bristol’s central location and excellent transportation connections puts the states of West Virginia, Kentucky, Tennessee and North Carolina within easy driving distance.

Commercial Retail Development: The Property is prominently positioned off Exit 5 on Interstate 81, one of the two major commercial retail corridors in the city of Bristol. The retail centers off Exits 5 and 7 both have a regional pull that serve a very large market area that captures local and regional visitors. Juxtaposition to the highway and two airports creates an ideal location for accommodating travelers and visitors while also providing dining, shopping and entertainment options for local residents.

Targeted Business SectorsAerospace - Automotive Suppliers

Food Processing - Distribution Plastics & Chemicals - Steels & Metals

Low Cost of LivingSullivan County’s cost of living is 14.6 percent lower than the

U.S. average.

Ease of AccessibilityBristol is uniquely situated within a day’s drive of half of the country’s

population via I-81 and I-26.

groundandspacepartners.com + 11ALDI + Bristol Overview

Bristol has a proud heritage going back more than 150 years of being both a fun place to visit and a good place to live. As a Certified Main Street Community, downtown Bristol has an ever-increasing amount of shops, activities, homes, offices and restaurants for both residents and visitors to enjoy.

State Street: State Street presents a unique atmosphere that toes the state line between Virginia and Tennessee. Here, visitors will find a plethora of options when it comes to shopping, dining, entertainment and living. The Bristol Hotel—the city’s first boutique hotel—is expected to open in 2018, and will feature 65 rooms and a rooftop bar situated on the land once occupied by Bristol’s notable Executive Plaza. Another boutique hotel—Sessions Hotel—is scheduled to open in 2019. This $20 million project will include 70 guest rooms and two attendant restaurants.

Arts & Entertainment District: Steeped in a rich history of cultural and musical landmarks, downtown Bristol continues to play an ever more influential role in shaping the arts in the region. The district features of 30 artisans in the space of six downtown blocks. While taking pride in the city’s country music roots, the Arts & Entertainment District aims to curate and cultivate all walks of the art world—from common to quirky. Already home to the famous Bristol Rhythm & Roots Reunion—which adds $16 million to the economy annually—Border Bash, Art in Public Places and the PUSH! Film Festival, the Arts & Entertainment District continues to grow and cultivate the city’s economy and creativity.

Downtown Shopping: Shopping in downtown Bristol is a blossoming adventure in style. From antique and modern to shops big and small, Bristol’s boutiques offer a unique alternative to big box stores that can be found along Exits 5 and 7. Upscale men’s and women’s clothing, shoes, home accessories, gourmet foods, toys, original art and handmade jewelry are just some of the items that can be picked up while strolling the streets of downtown.

Birthplace of Country Music: Bristol’s “Main Street” is highlighted as the birthplace of country music. It was on State Street—so called because it is evenly divided by the state lines of Virginia and Tennessee—that talent scout Ralph Peer made the very first commercially produced country music recordings with The Carter Family, Jimme Rodgers and others for the Victor Talking Machine Company. The recordings—known collectively as “The Bristol Sessions”—are recognized internationally as the “Big Bang” of country music.

Downtown Bristol Overview

groundandspacepartners.com + 12ALDI + Downtown Bristol Overview

In Bristol, visitors get to enjoy the best of both Tennessee and Virginia as the city itself divides the two with the state line running right through the middle of downtown. Bristol is known for NASCAR, as the city is home to one of the world’s greatest and most popular racetracks. Bristol Motor Speedway—which seats in excess of 150,000—hosts NASCAR Sprint Cup events in April and August, both of which draw fans from all 50 states and more than a dozen countries across the globe. Music also gives Bristol a universal appeal. In 1927, The Bristol Sessions took place in the downtown area, giving birth to modern country music. Visitors can tour both BMS and The Birthplace of Country Music Museum to gain a better understanding of how significant the country music genre has been to this region. When it comes to outdoor beauty, the majestic Appalachian Mountains and South Holston Lake offer visitors plenty of options for fishing, boating, hiking, camping, boating and much more. Bristol boasts numerous parks, golf courses, spectacular caverns, great restaurants and wonderful shopping opportunities. Bristol is also rich in theatre and the arts, and is home to the historic Paramount Center for the Arts, as well as Theatre Bristol. Numerous fine art galleries and the studios of local artists can be found downtown.

Bristol Tourism Overview

groundandspacepartners.com + 13ALDI + Bristol Tourism Overview

DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

Estimated Population 2,322 19,360 45,346

2022 Projected Population 2,130 18,662 44,522

2010 Census Population 2,417 19,967 45,521

2000 Census Population 2,130 18,998 43,856

Projected Annual Growth (2017–2022) -1.7% -0.7% -0.4%

Estimated Households 1,053 8,552 19,861

2022 Projected Households 1,029 8,691 20,338

2010 Census Households 1,060 8,572 19,482

2000 Census Households 937 8,100 18,839

Projected Annual Growth (2017–2022) -0.5% 0.3% 0.5%

Est. HH Income $200,000+ 0.8% 2.8% 2.7%

Est. HH Income $150,000-$199,999 3.3% 2.4% 2.6%

Est. HH Income $100,000–$149,999 12.6% 9.5% 8.6%

Est. HH Income $75,000-$99,999 10.6% 10.3% 10.4%

Est. HH Income $50,000–$74,999 23.1% 18.0% 18.6%

Est. HH Income $35,000–$49,999 15.0% 16.3% 15.7%

Est. HH Income $25,000–$34,999 11.7% 9.9% 11.3%

Est. HH Income $15,000–$24,999 17.3% 14.7% 14.2%

Est. HH Income Under $15,000 5.5% 16.1% 16.0%

Est. Average Household Income $69,329 $63,759 $61,518

Est. Median Household Income $52,950 $44,622 $44,593

Est. White 94.0% 90.9% 92.2%

Est. Black 2.0% 5.2% 4.0%

Est. Asian or Pacific Islander 1.9% 1.1% 1.0%

Est. American Indian or Alaska Native 1.9% 1.1% 1.0%

Est. Other/Multiple Races 0.3% 0.3% 0.3%

Est. Hispanic Population 1.9% 2.6% 2.6%

PO

PU

LATI

ON

INC

OM

ER

AC

E

Demographics

groundandspacepartners.com + 14ALDI + Demographics

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Ground + Space and should not be made available to any other person or entity without the written consent of Ground + Space. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Ground + Space has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Ground + Space has not verified, and will not verify, any ofthe information contained herein, nor has Ground + Space conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Asking Price: Cap Rate:

This property is listed in conjunction with Virginia licensed broker James M. Nidiffer of Interstate Realty Co. (license 0225018202).

BRISTOL, VIRGINIA

ALDI

Asking Price: Cap Rate: Asking Price: $2,778,000Cap Rate: 4.50%

MICHAEL ZIMMERMAN + [email protected]

KATLIN SMITH + [email protected]

investment highlights - loopnet · aldi + investment highlights groundandspacepartners.com + 1...

Documents