national multi-tenant plaza - constant...

N A T I O N A L M U L T I - T E N A N T P L A Z A

O F F E R I N G M E M O R A N D U MS Y R A C U S E , N Y

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Marcus & Millichap is pleased to present this 10,722-square foot strip center in Syracuse, New York; which is five miles west of Syracuse. The tenants are operating under double-net (NN) leases reimbursing for real estate taxes, insurance, and common area maintenance. The asset is 100 percent occupied, and more than 51 percent of the center is backed by corporate credit. Aspen Dental Management, Incorporated operates more than 500 dental offices across 35 states. H&R Block Eastern Enterprises, Incorporated is an investment grade tenant with a Standard & Poor (S&P) rating of BBB. Domino’s demonstrates commitment with its more than 10-year operating history and significant capital investment for its Store of the Future Build Out. Additionally, Domino’s executed its second 10- year extension option early in 2017.

This highly visible strip center is located on West Genesee Street between Onondaga Road/Route-173 and Highway-5, a highly trafficked corridor which sees more than 32,000 vehicles per day (VPD). Directly adjacent from the subject property is the Fairmount Fair Shopping Center. This 490,000-square foot power center is anchored by Target, HomeGoods, and Bed Bath & Beyond. The West Genesee Street corridor features more than one million square feet of retail.

Additionally, this asset benefits from its proximity to local schools and Syracuse University. West Genesee Senior High School is less than half a mile west; enrollment features more than 1,600 students. The Camillus strip center is also nearby Syracuse University, which is the eighth largest University in state. More than 20,000 students are enrolled.

I N V E S T M E N T O V E R V I E W

• Aspen Dental Anchored Shopping Strip in Camillus, New York | Five Miles West of Syracuse | Complete Scrape and Rebuild in 2015

• Tenants Operating Under Double-Net (NN) Leases | Reimbursing for Real Estate Taxes, Insurance, and Common Area Maintenance

• Asset is 100 Percent Occupied | More Than 51 Percent is Backed by Corporate Credit | Aspen Dental Management, Incorporated Operates More Than 500 Units Across 35 States | H&R Block Eastern Enterprises, Incorporated Investment Grade Tenant | Standard & Poor (S&P): BBB

• Domino’s Demonstrates Strong Commitment | More Than 10-Year Operating History | Invested Significant Capital for Store of the Future Build Out | Executed Second 10- Year Extension Option Early in 2017

• Highly Visible on West Genessee Street | Highly Trafficked Corridor | More Than 32,000 Vehicles Per Day (VPD)

• Dense Retail Corridor | More Than One Million Square Feet of Retail Space Within Two Miles Anchored by National Credit: Target, Wegmans, HomeGoods

• West Genesee High School Located Half of a Mile West | More Than 1,600 Students

• Nearby Syracuse University | More Than 20,000 Students | Eighth Largest University in New York | $1.2-Billion Endowment

• Strong Demographics | More Than 132,630 Residents with an Average Household Income Greater Than $62,000 in the Five-Mile Radius

I N V E S T M E N T O V E R V I E W I N V E S T M E N T O V E R V I E W

LOT #4

H&R Block

Domino’s Pizza

Sports Clips

Aspen

Dental

LOT #3

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID:


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F I N A N C I A L O V E R V I E WPRICE: $3,878,520

CAP RATE: 7.50%

NOI: $290,889

PRICE PER SQUARE FOOT: $377.39

RENT PER SQUARE FOOT: $29.81

YEAR BUILT: 2015

APPROXIMATE LOT SIZE: 1.94 Acres

GROSS LEASEABLE AREA: 10,277

TYPE OF OWNERSHIP: Fee Simple

L E A S E S U M M A R Y

F I N A N C I A L O V E R V I E W L E A S E S U M M A R Y

TENANT PROFILES

TENANT GUARANTOR GLA % OF GLALEASE

COMMENCELEASE EXPIRE

TERM REMAINING

ANNUAL RENT

RENT (PSF)

INCREASES LEASE TYPE

RENEWAL OPTIONS

ASPEN DENTAL MANAGEMENT, INCORPORATED

ASPEN DENTAL MANAGEMENT, INCORPORATED

3,500 34.06% 8/8/2016 8/31/2026 9 YEARS $129,500 $37.0010% EVERY 5

YEARSNN 3, 5-Year

H&R BLOCK H&R BLOCK EASTERN ENTERPRISES, INCORPORATED

1,800 17.51% 5/1/2015 4/30/2023 5.5 YEARS $45,000 $25.0010% IN

OPTIONNN 1, 5-Year

SPORTS CLIPS JOMEKA ENTERPRISES, LIMITED LIABILITY COMPANY

1,300 12.65% 8/3/2017 8/31/2027 10 YEARS $39,000 $30.007.5% EVERY 5

YEARSNN 2, 5-Year

DOMINO'SPIEMAKERS4U, LIMITED LIABILITY COMPANY

1,800 17.51% 9/19/2007 5/30/2029 12 YEARS $45,900 $25.5010% EVERY 5

YEARSNN 2, 5-Year

MORGAN COMMUNITIES *

MORGAN MANAGEMENT, LIMITED LIABILITY COMPANY (LLC)

1,877 18.26% 10/1/2017 9/30/2022 5 YEARS $46,925 $25.00 2% ANNUALLY NN None

TOTAL 10,277 100.00% $306,325

Base Rent $306,325

Expense Reimbursements

Real Estate Taxes $41,557

Insurance $4,800

CAM $30,694

Management Fee $1,687

Total Expense Reimbursements $78,737

Effective Gross Income $385,062

Expenses

Real Estate Taxes Lot 3 $38,349

Real Estate Taxes Lot 4 $4,118

Insurance $4,895

Contract Repairs Lot 3 $6,000

Landscaping Lot 3 $3,950

Landscaping Lot 4 $0

Snow Removal Lot 3 $9,072

Snow Removal Lot 4 $2,268

Trash Removal $3,396

Utilities $6,654

CAM Total $31,340

G&A (Non-reimbursable)

Legal and Professional $1,500

Bank Charges $494

G&A Total $1,994

Management Fee (3.5% of EGI) $13,477

Total Expenses $94,173

Net Operating Income $290,889



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T E N A N T O V E R V I E W - N A T I O N A L T E N A N T M I X

T E N A N T O V E R V I E W N A T I O N A L T E N A N T M I X

Aspen Dental Management Incorporated. (ADMI) is a dental support organization that provides non-clinical business support services to independently owned and operated dental practices in 35 states. This can include services and recommendations related to finding the right location, leasing, equipment, accounting and marketing. This model leaves independent, licensed practitioners free to concentrate on patient care.

As one of the largest and fastest-growing networks of independent dental care providers in the United States, local Aspen Dental practices – nearly 600 of them across 35 states – offer patients a safe, welcoming and judgment-free environment to address their dental challenges. Every Aspen Dental-branded practice offers a full range of dental and denture services allowing patients to have the peace of mind that they are taken care of and protected, so they can focus on getting the healthy mouth they deserve. In 2015, Aspen Dental-branded practices recorded more than 3.7 million patient visits and welcomed nearly 785,000 new patients.

TENANT PROFILE

TENANT TRADE NAME Aspen Dental

TENANT Aspen Dental

LEASE GUARANTOR Aspen Dental Management, Incorporated

NUMBER OF LOCATIONS 500+

HEADQUARTERED DeWitt, New York

WEB SITE www.AspenDental.com

Founded in 1960, Domino’s Pizza is the recognized world leader in pizza delivery, with a significant business in carryout pizza. It ranks among the world’s top public restaurant brands with a global enterprise of 14,000 stores in over 85 international markets. Domino’s had global retail sales of nearly $10.9 Billion in 2016, with more than $5.3 Billion in the United States and more than $5.5 Billion internationally. In the first quarter of 2017, Domino’s had global retail sales of nearly $2.7 Billion, with over $1.3 Billion in the U.S. and nearly $1.4 Billion internationally.

Its system is primarily comprised of independent franchise owners who accounted for over 97 Percent of Domino’s stores worldwide as of the first quarter of 2017. Emphasis on technology innovation helped Domino’s reach an estimated $5.6 billion in global digital sales in 2016, and has produced several innovative ordering platforms, including Google Home, Facebook Messenger, Apple Watch, Amazon Echo, Twitter and text message using a pizza emoji. In late 2015, Domino’s announced the design and launch of the DXP®, a purpose-built pizza delivery vehicle, as well as Piece of the Pie Rewards™, its first digital customer loyalty program.

TENANT PROFILE

TENANT TRADE NAME Domino’s

TENANTPiemakers4U,

Limited Liability Company

LEASE GUARANTOR Piemakers4U, Limited Liability Company

NUMBER OF LOCATIONS 2

HEADQUARTERED Manlius, New York

H&R Block is a global consumer tax services provider, having prepared more than 750 million tax returns since 1955. In fiscal year 2017, H&R Block had revenues of just over $3.0 billion and prepared $23.0 million tax returns worldwide. Tax return preparation services are provided in approximately 12,000 company-owned and franchise retail tax offices in all 50 states, Puerto Rico and other United States territories, and on United States military bases around the world by professional tax preparers, and through H&R Block digital do-it-yourself products. An H&R Block branded retail office is located within five miles of most Americans. H&R Block also offers affordable financial products and services to its clients.

TENANT PROFILE

TENANT TRADE NAME H&R Block

TENANTH&R Block Eastern Enterprises,

Incorporated

LEASE GUARANTORH&R Block Eastern Enterprises,

Incorporated

NUMBER OF LOCATIONS 6,650

SALES VOLUME $3.0 Billion (2017)STOCK SYMBOL HRBCREDIT RATING Baa3

RATING AGENCY Moody’s

Soon after the first Sports Clips opened in Austin, Texas in 1993, Sports Clips expanded franchising into Houston and Dallas. The company based further expansion plans on cities Southwest Airlines served in order to keep travel expenses to a minimum. It took five years to open the first 50 stores, and by 2007, Sports Clips celebrated the opening of its 400th and 500th franchised stores in the same year! In 2012, the franchise expanded into Canada.

Sports Clips is now open in all 50 states and currently has more than 1,600 franchise locations open in the United States and Canada.

TENANT PROFILE

TENANT TRADE NAME Sports Clips

TENANTJomeka Enterprises,


LEASE GUARANTORJomeka Enterprises,


NUMBER OF LOCATIONS 2

HEADQUARTERED Georgetown, Texas

S P O R T S C L I P S H & R B L O C KA S P E N D E N T A L D O M I N O ’ S P I Z Z A



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Syracuse is the fifth most populous city in the state of New York. Located in the center of state on the southern shore of Lake Ontario, the city of Syracuse is the region’s major metropolitan center. The city has functioned as a major crossroads over the last two centuries, first between the Erie Canal and its branch canals, then from its railway network. Today, Syracuse is located at the intersection of Interstates 81 and 90, and its airport is the largest in the region. Syracuse is home to Syracuse University, a major research university, as well as Le Moyne College, a nationally recognized liberal arts college. In 2010, Forbes rated Syracuse fourth in the top 10 places in the United States to raise a family.

More than 150 motor carriers and small package carriers service the Syracuse area. Air and rail terminals are just 15 minutes from downtown. There are Seven major airlines, along with affiliated commuter service, offer approximately 250 daily arrivals and departures. Over two-million travelers pass through Hancock International Airport each year. The region is also serviced by six major air cargo carriers. CSX operates an intermodal center in Dewitt/Manlius for transfer of trailers and containers between railcars and trucks with storage available for 345 trailers or containers. Amtrak services rail passenger needs.

Syracuse’s top employers are primarily in education and the service industry. University Hill is Syracuse’s fastest growing neighborhood, fueled by expansions in Syracuse University and Upstate Medical University, as well as dozens of small medical office complexes.

A B O U T S Y R A C U S E , N Y

S Y R A C U S E , N E W Y O R K

• State University of New York Upstate Medical University: 6,400

• Syracuse University: 5,925

• Wegmans Food Markets: 3,760

• St. Joseph’s Hospital Health Center: 3,150

• Crouse Hospital: 2,400

• Lockheed Martin Corp.: 2,350

• National Grid USA: 1,860

• Loretto : 1,825

t o p e m p l o y e r s

D E M O G R A P H I C S

1-Mile 3-Mile 5-Mile

P O P U L AT I O N2000 Population 9,810 48,257 130,870

2010 Population 9,505 47,682 130,662

2017 Population 9,778 47,238 129,468

2022 Population 9,845 47,209 129,389


H O U S E H O L D S


H O U S E H O L D ( H H ) I N C O M E S

2000 Households 3,987 19,938 53,167

2010 Households 4,103 20,325 53,247

2017 Households 4,225 20,081 52,886

2022 Households 4,254 20,058 52,884

2017 Average HH Income $72,765 $75,760 $63,127

2017 Median HH Income $61,321 $60,937 $47,943

2017 Per Capita Income $31,441 $32,206 $25,787



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D E M O G R A P H I C S

A E R I A L O V E R V I E W


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MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS:

The i n f o rma t i on con t a i ned i n t h i s Ma r ke t i ng B rochu re has been ob t a i ned f r om sou rces we be l i e ve t o be r e l i ab l e. Howeve r, Ma rcus & M i l l i c hap has no t and w i l l no t ve r i f y an y o f t h i s i n f o rma t i on , no r has Ma rcus & M i l l i c hap conduc ted any i n ves t i ga t i on r ega rd i ng t hese ma t t e r s . Ma rcus & M i l l i c hap makes no gua ran t ee, wa r r an t y o r r ep resen t a t i on wha t soeve r abou t t he accu racy o r comp le t eness o f an y i n f o rma t i on p ro v i ded .

As t he Buye r o f a ne t l e a sed p rope r t y, i t i s t he Buye r ’s r e spons i b i l i t y t o i ndependen t l y con f i rm t he accu racy and comp le t eness o f a l l ma te r i a l i n f o rma t i on be fo re comp le t i ng any pu r chase. Th i s Ma rke t i ng B rochu re i s no t a subs t i t u t e f o r you r t ho rough due d i l i gence i n ves t i ga t i on o f t h i s i n ves tmen t oppo r t un i t y. Ma rcus & M i l l i c hap e xp ress l y den i e s any ob l i ga t i on t o conduc t a due d i l i gence e xam ina t i on o f t h i s P rope r t y f o r Buye r.

Any p ro j ec t i ons , op i n i ons , a s sump t i ons o r e s t ima tes used i n t h i s Ma r ke t i ng B rochu re a r e f o r e xamp le on l y and do no t r ep resen t t he cu r r en t o r f u t u r e pe r f o rmance o f t h i s p rope r t y. The va l ue o f a ne t l e a sed p rope r t y t o you depends on f ac to r s t ha t shou l d be e va l ua t ed by you and you r t a x , f i n anc i a l and l ega l adv i so r s .

Buye r and Buye r ’s t a x , f i n anc i a l , l ega l , and cons t r uc t i on adv i so r s shou l d conduc t a ca re f u l , i ndependen t i n ves t i ga t i on o f an y ne t l e a sed p rope r t y t o de t e rm ine t o you r sa t i s f ac t i on w i t h t he su i t ab i l i t y o f t he p rope r t y f o r you r needs .

L i ke a l l r ea l e s t a t e i n ves tmen t s , t h i s i n ves tmen t ca r r i e s s i gn i f i c an t r i s k s . Buye r and Buye r ’s l ega l and f i n anc i a l adv i so r s mus t r eques t and ca re f u l l y r e v i ew a l l l ega l and f i n anc i a l documen t s r e l a t ed t o t he p rope r t y and t enan t . Wh i l e t he t enan t ’s pas t pe r f o rmance a t t h i s o r o t he r l oca t i ons i s an impo r t an t cons i de r a t i on , i t i s no t a gua r an t ee o f f u t u r e success . S im i l a r l y, t he l ease r a t e f o r some p rope r t i e s , i n c l ud i ng new l y -cons t r uc t ed f ac i l i t i e s o r new l y - acqu i r ed l oca t i ons , may be se t based on a t enan t ’s p ro j ec t ed sa l e s w i t h l i t t l e o r no r eco rd o f ac t ua l pe r f o rmance, o r compa rab l e r en t s f o r t he a r ea . Re tu r ns a r e no t gua r an t eed ; t he t enan t and any gua r an to r s may f a i l t o pay t he l ease r en t o r p rope r t y t a xes , o r may f a i l t o comp l y w i t h o t he r ma te r i a l t e rms o f t he l ease ; cash f l ow may be i n t e r r up t ed i n pa r t o r i n who l e due t o ma rke t , econom ic, env i r onmen ta l o r o t he r cond i t i ons . Rega rd l e s s o f t enan t h i s t o r y and l ease gua r an t ees , Buye r i s r e spons i b l e f o r conduc t i ng h i s /he r own i n ves t i ga t i on o f a l l ma t t e r s a f f ec t i ng t he i n t r i n s i c v a l ue o f t he p rope r t y and t he va l ue o f an y l ong- t e rm l ease, i n c l ud i ng t he l i k e l i hood o f l oca t i ng a r ep l acemen t t enan t i f t he cu r r en t t enan t shou l d de f au l t o r abandon t he p rope r t y, and t he l ease t e rms t ha t Buye r may be ab l e t o nego t i a t e w i t h a po ten t i a l r ep l acemen t t enan t cons i de r i ng t he l oca t i on o f t he p rope r t y, and Buye r ’s l ega l ab i l i t y t o make a l t e r na t e use o f t he p rope r t y.

By accep t i ng t h i s Ma r ke t i ng B rochu re you ag ree t o r e l ease Ma rcus & M i l l i c hap Rea l E s t a t e I n ves tmen t Se r v i ces and ho l d i t ha rm less f r om any k i nd o f c l a im , cos t , e xpense, o r l i ab i l i t y a r i s i ng ou t o f you r i n ves t i ga t i on and /o r pu r chase o f t h i s ne t l e a sed p rope r t y.

3660 WEST GENESEE STREET - SYRACUSE, NEW YORK 132196

B R O K E R O F R E C O R D : J. D. Parker | M A R C U S & M I L L I C H A P | L I C E N S E : 31PA1159742

N A T I O N A L M U L T I - T E N A N T P L A Z A

S Y R A C U S E , N Y

national multi-tenant plaza - constant...

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