located between midland & odessa, tx...30445 northwestern highway, suite 275 farmington hills,...

30445 Northwestern Highway, Suite 275Farmington Hills, MI 48334248.254.3410

2202 TX-40 LOOP, MIDLAND, TX 79706

LOCATED BETWEEN MIDLAND & ODESSA, TX

P E P S I D I S T R I B U T I O N W A R E H O U S E ( R E L O C A T I O N S I T E )

PATRICK HAMMONDSENIOR DIRECTOR

D: [email protected]

NOT ACTUAL BUILDING

http://fortisnetlease.com/


PATRICK HAMMOND | 248.419 .3808 | [email protected] DISCLAIMER // 2

DISCLOSURE :

All materials and information received or derived from Fortis Net Lease (hereinafter collectively referred to as “FNL”), its directors, officers, agents, advisors,affiliates and/or any third party sources are provided without representation or warranty by FNL its directors, officers, agents, advisors, or affiliates as to com-pleteness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, suitability, financialperformance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.

Neither FNL its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of theany materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for revieware 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. FNL will notinvestigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

ALL PARTIES SHALL CONDUCT THEIR 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 investigationsincluding 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 independentprofessionals. FNL makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. FNL doesnot serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used forfinancial 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 donot necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations aswell as market conditions, vacancy factors and other issues in order to determine rents from or for the property.

Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or taxattorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether theproperty complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, otherconsultants and governmental agencies. All properties and services are marketed by FNL in compliance with all applicable fair housing and equal opportunity laws.

PATRICK HAMMONDSENIOR DIRECTORD: [email protected]

AVERY MURRAHSTROUDLINK REALTY SERVICES

TX #900447715033 NCAOGDOCHES RD., #208

SAN ANTONIO, TX 78259210.900.6505

EXCLUSIVELY L ISTED BY: STATE BROKER OF RECORD:

2202 TX-40 LOOP, MIDLAND, TX 79706PEPSI DISTRIBUTION WAREHOUSE

mailto:[email protected]


https://buildout.com/website/696284-sale?tab=map

PATRICK HAMMOND | 248.419 .3808 | [email protected] INVESTMENT OFFERING // 3

INVESTMENT SUMMARY

List Price: $6,057,391

Current NOI: $348,300

Initial Cap Rate: 5.75%

Land Acreage: +/- 5.8

Year Built 2020

Building Size: 30,389 SF

Price PSF: $199.33

Lease Type: Double Net (NN)

Lease Term: 12 Years

Average CAP Rate: 5.75%

INVESTMENT OFFERINGFortis Net Lease is pleased to present this brand new construction, 30,389 SF PepsiDistribution Warehouse located in Midland, Texas. This is a relocation distributionwarehouse; consolidating three other area warehouses into this one. The property issecured with a Twelve (12) Year Double Net (NN) Lease, leaving landlord responsible forroof, structure and parking lot. The lease contains a 10% rental rate increase in year 6and One (5) Yr. option to renew. The lease is also has a corporate guarantee. Thebuilding is currently under construction with rent scheduled to commence in May2020. Per the tenants request, the warehouse was designed so that the square footageof the building could easily be expanded in the future should the tenant require morespace.

This Pepsi Distribution Warehouse is strategically located between Midland & Odessa,Texas and is highly visible positioned near I-20 on TX-40 Loop which sees 4,507 vehiclesper day. The site is only 1 mile from the Midland International Air & Space Port. The tenmile population from the site is 191,735 residents, while the three mile averagehousehold income is $123,180 per year. This area is experiencing great growth with thefive mile population growth rate at 10.64%.

PRICE $6,057,391

CAP RATE 5.75%

LEASE TYPE Double Net (NN)

TERM REMAINING 12 Years

INVESTMENT HIGHLIGHTS• Brand New Construction | Designed for Easy Future Expansion

• Strategically Located Between Midland, TX and Odessa, TX

• Double Net (NN) Lease | 12 Year Primary Term

• 10% Rental Rate Increase in Year 6

• RELOCATION SITE (REPLACES TWO OLDER BUILDINGS)

• Ten Mile Population 191,735

• Five Mile Population Growth Rate 10.64%

• 4,507 Cars Per Day on TX-40 Loop

• 1 Mile From Midland International Air & Space Port

• Quick and Easy Access to/from Interstate 20





PATRICK HAMMOND | 248.419 .3808 | [email protected] PROPERTY & LEASE // 4

LEASE SUMMARYTenant: Pepsi

Lease Type: Double Net (NN)

Primary Lease Term: 12 Years

Annual Rent: $348,300

Rent PSF: $11.46

Landlord Responsibilities: Roof, Structure & Parking Lot

Taxes, Insurance & CAM: Tenant Responsibility

Roof, Structure & Parking: Landlord Responsibility

Lease Start Date: May 2020

Lease Expiration Date: May 2032

Lease Term Remaining: 12 Years

Rent Bumps: 10% in Year 6

Renewal Options: One (5 Year)

Lease Guarantor: Bottling Group LLC

Lease Guarantor Strength: A1

Tenant Website: www.pepsi.com

Year Built: 2020

Lot Size: +/- 5.8 Acres

Building Size: 30,389 SF - Designed foreasy future expansion

Traffic Count: 4,507

Roof Type: Standing Seam

Zoning: Commercial

Construction Style: Prototype

Ceiling Height: 28' Clearing

Walls: 2" polyurethane insulated

Loading Dock: Masonry split face blockwalls around dock

Parking Lot: Concrete

Warranties Construction

HVAC Roof Mounted

INCOME PER SF

Rent $348,300.00 $11.46

Gross Income $348,300.00 $11.46

EXPENSE PER SF

Gross Expenses - -

NET OPERATING INCOME $348,300.00 $11.46

FINANCIAL SUMMARY

PROPERTY SUMMARY





PATRICK HAMMOND | 248.419 .3808 | [email protected] RENT ROLL // 5

TENANTNAME

UNITSIZE (SF)

LEASESTART

LEASEEND

ANNUALRENT

% OFBUILDING

ESCDATE

RENTPER SF/YR

Pepsi 30,389 May 2020 May 2032 $348,300$383,130

100.0May 2025

$11.461412.6075

Totals/Averages 30,389 $348,300 $11.46

TOTAL SF30,389

TOTAL ANNUAL RENT$348,300

OCCUPANCY RATE100%

AVERAGE RENT/SF$ 24.0689

NUMBER OF TENANTS1





Company: Bottling Group, LLC (d/b/a Pepsi Beverages Company)

Founded: 1999

Total Revenue: $67.161 Billion

Net Worth: $167.11 Billion

Headquarters: Somers, New York

Website: www.pepsico.com

OVERVIEW

• In the last five years alone, product developers have created more than 100

new beverages that are grocery staples today.

• Originally created and developed in 1893 by Caleb Bradham and introduced

as Brad's Drink, it was renamed as Pepsi-Cola in 1898, and then shortened to

Pepsi in 1961.

• Pepsi has official sponsorship deals with the National Football League,

National Hockey League, and National Basketball Association.

TENANT HIGHLIGHTS

LEASE YEARS ANNUAL RENT MONTHLY RENT BUMP

1-5 $348,300 $29,025 -

6-12 $383,130 $31,927 10%

Option 1 TBD TBD TBD

RENT SCHEDULE

Bottling Group, LLC is located in White Plains, NY, United States and is part ofthe Soft Drink Manufacturing Industry. Bottling Group, LLC has 66,800 totalemployees across all of its locations and generates 0.01 million in sales (USD).There are 2,666 companies in the Bottling Group, LLC corporate family.

For more than 50 years, as tastes, trends and lifestyles have changed, PepsiCohas evolved with them. The willingness to adapt and grow has transformed thesnack and soda company into a collection of global brands including Pepsi andQuaker, Gatorade and Tropicana, Frito-Lay and beyond. Today, PepsiCo is one ofthe world’s most-respected companies with products sold in more than 200countries and territories and 22 brands that generate more than $1 billion eachin estimated annual retail sales.

PepsiCo is also celebrated for its commitment to doing business the right way,integrating Purpose into our business strategy. In 2019, it adopted a new vision:to Be the Global Leader in Convenient Foods and Beverages by Winning withPurpose. Winning with Purpose is the next chapter in it's purpose agenda andconveys our belief that sustainability can be an even greater contributor to oursuccess in the marketplace.

COMPANY INFORMATION

PATRICK HAMMOND | 248.419 .3808 | [email protected] TENANT PROFILE // 6





PATRICK HAMMOND | 248.419 .3808 | [email protected] ELEVATIONS // 7





PATRICK HAMMOND | 248.419 .3808 | [email protected] CONSTRUCTION PHOTOS // 8






PATRICK HAMMOND | 248.419 .3808 | [email protected] LOCATION MAPS // 11




PATRICK HAMMOND | 248.419 .3808 | [email protected] AERIAL MAP // 12





PATRICK HAMMOND | 248.419 .3808 | [email protected] AERIAL MAP // 13





PATRICK HAMMOND | 248.419 .3808 | [email protected] AREA & DEMOGRAPHICS // 14

POPULATION 3 MILES 5 MILES 10 MILES

Total Population 2019 62 8,926 191,735

Total Population 2024 66 9,876 203,114

Population Growth Rate 6.45% 10.64% 5.93%

Average Age 40.3 36.1 34.3

# Of Persons Per HH 2.4 2.4 2.6

HOUSEHOLDS & INCOME 3 MILES 5 MILES 10 MILES

Total Households 26 3,539 72,672

Average HH Income $123,180 $93,411 $97,382

Median House Value $333,333 $242,069 $187,868

Consumer Spending (Thousands) $773 $95,802 $2,003,378

Midland is a city in and the county seat of Midland County, Texas, United States,on the Southern Plains of the state's western area. A small portion of the cityextends into Martin County.

Midland, Texas is a warm and inviting West Texas city, conveniently located onInterstate 20, halfway between Fort Worth and El Paso. Easily accessible, itboasts Midland International Air & Space Port, serviced daily by American,Southwest, and United Airlines and is the closest airport to Big Bend NationalPark. This is the perfect destination to begin a West Texas road trip, a tour ofthe Big Bend region, host your meeting, sporting event, or family reunion.

The city features over 225,000 square feet of meeting space, many uniquemuseums, delicious food, and exciting music and nightlife. Midland is a thrivingcommunity of more than 111,000 people. The Permian Basin, of which Midland isthe geographic center, is said to contain 16%+ of the nation’s oil reserves.Midland brings together everything travelers want in a modern city without theinconvenience of traffic congestion. Our city is synonymous with Texas highschool football, Midland and Odessa having inspired Friday Night Lights. Midlandis a city where the possibilities are as endless as the horizons.





PATRICK HAMMONDSENIOR DIRECTOR

D: [email protected]

30445 Northwestern Highway, Suite 275Farmington Hills, MI 48334248.254.3410fortisnetlease.com

EXCLUSIVELY L ISTED BY:

TOTAL SALES VOLUME PROPERTIES SOLD BROKER & BUYER REACH STATES SOLD IN

$6B 3,000+ 345K 43

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located between midland & odessa, tx...30445 northwestern highway, suite 275 farmington hills,...

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