offering memorandum - loopnet · 2019-01-24 · on june 12th , 2018 the 7,403 square foot retail...

1839 MADISON STREETClarksville, Tennessee 37043

Offering Memorandum

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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe 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 Marcus & Millichap andshould not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation 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 duediligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's orasbestos, 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 anytenant'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 bereliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding thesematters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures toverify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo orname is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

1839 MADISON STClarksville, TNACT ID Z0480238

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TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Location Overview

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Tenant Summary

Lease Expiration Chart

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET COMPARABLES 03Sales Comparables

MARKET OVERVIEW 04Market Analysis

Demographic Analysis

1839 MADISON STREET

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1839 MADISON STREET

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INVESTMENT

OVERVIEW

1839 MADISON STREET

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EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Gryphon Investors Inc 2,578

Clarksville Memorial Hospital 1,000

Convergys 800

AT&T 756

Walmart 700

Apsu 685

Jostens Printing & Publishing 600

Akebono 515

Superior Maintenance Co 513

McDonalds 491

U-Haul 472

Montgomery County Sheriffs Off 400

DEMOGRAPHICS

3-Miles 5-Miles 7-Miles

2017 Estimate Pop 30,222 68,321 108,867

2010 Census Pop 28,081 60,257 95,996

2017 Estimate HH 13,096 27,460 42,043

2010 Census HH 11,966 23,912 36,673

Median HH Income $44,813 $49,640 $51,581

Per Capita Income $27,602 $26,304 $25,411

Average HH Income $63,009 $64,598 $65,229

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VITAL DATA

YEAR 1 YEAR 2

Price $2,160,000 CAP Rate 6.70% 6.70%

Down Payment 25% / $540,000 Net Operating Income $144,790 $144,790

Loan Amount $1,620,000 Net Cash Flow After Debt Service 4.71% / $25,411 4.71% / $25,411

Loan Type Proposed New Total Return 10.46% / $56,465 10.78% / $58,216

Interest Rate / Amortization 5.50% / 25 Years

Gross Leasable Area (GLA) 8,100 SF

Price/SF $266.67

Current Occupancy 100.0%

Year Built / Renovated 2014

Lot Size 0.95 acre(s)

MAJOR TENANTS

TENANT GLA LEASE EXPIRATION LEASE TYPE

Firehouse Subs 2,100 11/12/2024 NNN

Cold Stone Creamery 1,800 10/1/2026 NNN

1839 MADISON STREET

OFFERING SUMMARY

Located in the 19th Fastest Growing City in the United States

Tennessee's Top Growth Market

Multiple Nationally Accredited Tenants

Extremely High Traffic Counts

New Construction with High-End Design

Tremendous Retail Visibility

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present an 8,100-square-foot retail strip center on 1839 Madison Street in Clarksville, Tennessee. This asset is fully leased by multiple

nationally accredited tenants such as Cold Stone Creamery and Firehouse Subs and all of the leases are structured as triple-net. The building was completed in 2014 and

benefits from high traffic counts of nearly 20,000 vehicles per day on Madison Street, in a large retail corridor of Clarksville.

Clarksville is located 45 miles northwest of Nashville and is the 19th fastest growing city in the United States. Situated on Interstate 24, the city has seen major economic

growth and is currently the fifth largest city in the state. According to state projections, the city is poised to surpass Chattanooga and become the state’s fourth largest

city by 2020.

The major employers in the immediate area include Hankook Tire, LG Lighting, Trane, and Tennova Healthcare. Google recently located a major, regional fiber-optics

center in the market and Atlas BX recently announced a $75 million investment. In addition to the city's population base, the neighboring Fort Campbell Military Base

(home of the 101st Airborne Screaming Eagles) contains more than 140,000 troops.

INVESTMENT OVERVIEW

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1839 MADISON STREET

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OFFERING SUMMARY

PROPERTY OVERVIEW

Marcus & Millichap is pleased to present an 8,100-square-foot retail strip center on 1839 Madison Street in

Clarksville, Tennessee. The asset is fully leased with multiple nationally accredited tenants such as Cold Stone

Creamery and Firehouse Subs and all of the leases are structured as triple-net. The building was completed in

2014 and benefits from a high traffic count of nearly 20,000 vehicles on Madison Street, in a large retail corridor

of Clarksville.

Clarksville, Tennessee is located 45 miles north of Nashville and is the 19th fastest growing city in the United

States. Located on Interstate 24, the city has seen major economic growth and prosperity along with population

growth and is currently the fifth largest city in the state. The major employers in the area include Hankook Tire,

Trane, Tennova Healthcare and Atlas BX recently announced a $75 million investment in Clarksville which will

produce another 200 jobs.

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1839 MADISON STREET

PROPERTY SUMMARY

OFFERING SUMMARY

THE OFFERING

Price $2,160,000

Property Address 1839 Madison Street, Clarksville, TN

Assessors Parcel Number 080C A 00701 000; 404072

Zoning C-5 Highway Arterial Commercial

SITE DESCRIPTION

Year Built/Renovated 2014

Gross Leasable Area 8,100 SF

Ownership Fee Simple

Lot Size 0.95 acre(s)

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PROPOSED FINANCING

First Trust Deed

Loan Amount $1,620,000

Loan Type Proposed New

Interest Rate 5.50%

Amortization 25 Years

Loan Term 7 Years

Loan to Value 75%

Debt Coverage Ratio 1.21

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LOCATION OVERVIEW

CLOSE PROXIMITY TO:

Clarksville, Tennessee 37043

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAME1839 MADISON STREET

PRICING AND VALUATION MATRIX


LOCATION OVERVIEW

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REGIONAL MAP

1839 MADISON STREET

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LOCAL MAP

1839 MADISON STREET

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AERIAL PHOTO

1839 MADISON STREET

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1839 MADISON STREET

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FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

1839 MADISON STREET

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TENANT SUMMARY

12

TENANT SUMMARYFINANCIAL ANALYSIS

1839 MADISON STREET

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FINANCIAL ANALYSIS

1839 MADISON STREET

OPERATING STATEMENT

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FINANCIAL ANALYSIS

1839 MADISON STREET

PRICING DETAIL

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TENANT PROFILE

1839 MADISON STREET

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Firehouse Subs

General Information

Tenant Name Firehouse Subs

Website https://www.firehousesubs.com/

Headquartered Jacksonville, FL

Rentable Square Feet 2,100 SF

Lease Expiration 11/12/2024

No. of Locations 1,150

Cold Stone Creamery

General Information

Tenant Name Cold Stone Creamery

Website https://www.coldstonecreamery.com/indexm.html

Parent Company Kahala Brands

Headquartered Scottsdale, AZ

Rentable Square Feet 1,800 SF

Percentage of RBA 22.20%

Lease Commencement 10/1/2016

Lease Expiration 10/1/2026

No. of Locations 1,100

1839 MADISON STREET

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MARKET

COMPARABLES

1839 MADISON STREET

SALES COMPARABLES MAP

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1839 MADISON STREET(SUBJECT)

108 Morris Road

1740 Highway 149

Sango Marketplace

2644 Wilma Rudolph Blvd

2243 Lowes Drive W

SALES COMPARABLES

1

2

3

4

5

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SALES COMPARABLESSALES COMPARABLES SALES COMPS AVG

Avg. 6.64%

0.0

0.8

1.6

2.4

3.2

4.0

4.8

5.6

6.4

7.2

8.0

1839Madison St

108Morris Rd

1740Highway 149

SangoMarketplace

2644 WilmaRudolph

Blvd

2243 LowesDr W

Average Cap Rate

Avg. $278.55

$0.00

$60.00

$120.00

$180.00

$240.00

$300.00

$360.00

$420.00

$480.00

$540.00

$600.00

1839Madison St

108Morris Rd

1740Highway 149

SangoMarketplace

2644 WilmaRudolph

Blvd

2243 LowesDr W

Average Price Per Square Foot

PROPERTY NAME

MARKETING TEAM

1839 MADISON STREET

SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

Annual Per SF

Income $179,646 $22.18

Expenses $34,856 $4.30

NOI $144,790 $17.88

Occupancy 100.0%

Tenants Lease Type

Asking Price: $2,160,000 Firehouse Subs NNN

Price/SF: $266.67Cold Stone Creamery

NNN

CAP Rate: 6.70%

Year Built: 2014

1839 MADISON STREET1839 Madison Street, Clarksville, TN, 37043

1

NOTESOn June 12th , 2018 the 7,403 square foot retail property at 108 Morris Rd in Clarksville, Tennessee was sold for $2,586,986.00 or $349.45 per square foot. The property is a multi-tenant retail building constructed in 2014. The in-place net operating income was reported to be $188,850.00 for the year 2018, yielding an actual cap rate of 7.03%. The details of the comp were verified with the listing broker.

Tenants Lease TypeClose Of Escrow:

6/12/2018

Sales Price: $2,586,986

Price/SF: $349.45

CAP Rate: 7.03%

Year Built: 2014

108 MORRIS ROAD108 Morris Road, Clarksville, TN, 37040

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Annual Per SF

NOI $78,412 $8.62

NOTESOn 12/18/15, the retail property located at 1740 Highway 149 in Palmyra, Tennessee, sold for $1,153,119. This was a triple net investment sale. Dollar General was about two years into a 15 year NNN lease at the time of closing. The property was generating a 6.8% cap rate at the time of sale. This was a 1031 exchange for both the buyer and the seller. For the donwleg of a 1031 exhange the other property involved in the exchange had not yet closed and therefore could not be confirmed. For the upleg please see CoStar COMPS 3499199.


12/18/2015


Price/SF: $126.72

CAP Rate: 6.80%

Year Built: 2014

1740 HIGHWAY 1491740 Highway 149, Palmyra, TN, 37142

PROPERTY NAME

MARKETING TEAM

1839 MADISON STREET

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

3

NOTES

New retail space on one of Clarksvilles most desirable areas. Tremendous new home growth. Sango Village is a 25,000 square foot retail development with space available immediately. A 49,000 square foot Outparcel is also available. $4 CAM, and landlord has a tenant improvement allowance of $35. Great visibility from Madison Street, on the corner of an entrance to a residential neighborhood. On July 29, 2016, the subject properties sold in a portfolio sale for a total of $4,500,000. The land for the transaction has been on the market since 2008, with an estimated valuation of $300,000. The buyer had owned a hotel business, and had sold it in efforts to diversify his portfolio between several assets. With respect to this transaction, the in place CAP was set at 6.5% for both the retail building and land.. The information regarding this transaction was verified with both the buyer and seller.


7/29/2016


Price/SF: $150.30

CAP Rate: 6.50%

Year Built: 2007

SANGO MARKETPLACE2690 Madison Street, Clarksville, TN, 37043

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NOTESThis 5,513 SF retail building sold on 8/31/2018 for $3,279,618, or $594.89 per square foot. 100% leased to two tenants on a NNN basis at the time of sale, this property traded at a 6.55% CAP rate. Information on this transaction was confirmed with the listing and buyer's brokers, as well as public record.


8/31/2018


Price/SF: $594.89

CAP Rate: 6.55%

Year Built: 2017

2644 WILMA RUDOLPH BLVD2644 Wilma Rudolph Blvd, Clarksville, TN, 37040

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Annual Per SF

NOI $145,000 $10.81

NOTESThe seller, Edward C. Burchett Construction Company, is also the building developer. The property was fully leased at the time of sale. The listing broker advised the property was only on the market for a few days. The details of this comparable were verified with the seller, the listing broker, the buyer broker, and via public record.


1/5/2017


Price/SF: $171.40

CAP Rate: 6.30%

Year Built: 2014

2243 LOWES DRIVE W2243 Lowes Drive W, Clarksville, TN, 37040

1839 MADISON STREET

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MARKET

OVERVIEW

MARKET OVERVIEW

NASHVILLEOVERVIEW

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Known as the epicenter of county music, the Nashville metro containsa population of nearly 2 million within 14 counties: Davidson, Smith,Macon, Williamson, Cheatham, Sumner, Dickson, Robertson, Cannon,Rutherford, Hickman, Trousdale, Maury and Wilson. Davidson is themost populous county with 702,900 people and is home to Nashville,the capital city, which has 674,400 residents. The metro is located inthe north-central portion of the state of Tennessee in what is known asthe Central Basin. The Cumberland River, which snakes through theregion, adds to the local economic base and enhances Nashville’squality of life. The metro has a strong multimodal infrastructurenetwork linking the metro to markets around the world.

MARKET OVERVIEW

METRO HIGHLIGHTS

MUSIC INDUSTRY CAPITALThe metro is well known as a central location for the country music industry, which provides many local jobs and supports a large hospitality sector.

DIVERSIFYING ECONOMYOther major industries in the metro include healthcare, government, automotive manufacturing, publishing, insurance and finance.

ROBUST POPULATION GROWTHThe population will increase at a faster pace than the nation over the next five years.

1839 MADISON STREET

MARKET OVERVIEW

ECONOMY The entertainment and country music capital houses a number of venues such as Ryman

Auditorium, Grand Ole Opry, Country Music Television and Music Row. The nation’s lowest tax burdens and incentives for businesses attract companies to the

region and are assisting in diversifying the economy. Fortune 500 companies headquartered in the region: HCA Holdings, Dollar General,

Community Health Systems, LifePoint Health, Delek US Holdings and Tractor Supply Co.

SHARE OF 2017 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

Vanderbilt University and Medical Center

The Kroger Co.

Community Health Systems

Saint Thomas Health

Nissan North America

HCA Healthcare

Ryman Hospitality Properties

Electrolux Home Products

Cracker Barrel Old Country Store, Inc.

Randstad * Forecast

2

MANUFACTURING8%

GOVERNMENT

HEALTH SERVICESEDUCATION AND

+OTHER SERVICES

4%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

19%AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL ANDBUSINESS SERVICES

2%INFORMATION

17%

4%

12% 12% 6%

15%

1839 MADISON STREET

MARKET OVERVIEW

DEMOGRAPHICS

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

The metro is expected to add nearly 133,200 people over the next five years, resulting in the formation of approximately 60,900 households.

A median home price slightly below that of the nation has allowed 65 percent of households to own their home, compared with 64 percent for the U.S.

Roughly 31 percent of residents age 25 and older hold bachelor’s degrees; of those residents, 11 percent also have obtained a graduate or professional degree.

While music may be in Nashville’s blood, Music City has a lot more to offer, including

performing arts, history, cuisine, professional sports, education institutions, natural beauty

and Southern charm. Music is alive not only at the Grand Ole Opry, but also at the Ryman

Auditorium, Fontanel Mansion, Schermerhorn Symphony Center and the Tennessee

Performing Arts Center. For country music fans, there is the Country Music Hall of Fame

and Museum. Performing arts include the Nashville Ballet, Nashville Symphony, Nashville

Opera Association, Tennessee Repertory Theatre, Nashville Children’s Theatre and the

ACT 1 (Artists’ Cooperative Theatre). Museums in the metro include the Tennessee State

Museum, the Vanderbilt University Fine Arts Gallery and Frist Center for the Visual Arts.

QUALITY OF LIFE

3

2017 Population by Age

0-4 YEARS

6%5-19 YEARS

20%20-24 YEARS

7%25-44 YEARS

29%45-64 YEARS

26%65+ YEARS

12%

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

1839 MADISON STREET

36.42017

MEDIAN AGE:

U.S. Median:

37.8

$57,600 2017 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:

$56,300

1.9M2017

POPULATION:

Growth2017-2022*:

7.1%

730K2017

HOUSEHOLDS:

8.3%

Growth2017-2022*:

PROPERTY NAME

MARKETING TEAM

1839 MADISON STREET

DEMOGRAPHICS

Source: © 2017 Experian

Created on December 2018

POPULATION 3 Miles 5 Miles 7 Miles 2022 Projection

Total Population 31,124 72,017 116,715

2017 Estimate


2010 Census


2000 Census


Current Daytime Population

2017 Estimate 31,033 76,938 109,399

HOUSEHOLDS 3 Miles 5 Miles 7 Miles 2022 Projection

Total Households 13,719 29,427 45,782

2017 Estimate


Average (Mean) Household Size 2.27 2.41 2.52

2010 Census


2000 Census


Occupied Units

2022 Projection 13,719 29,427 45,782

2017 Estimate 14,132 29,721 45,235

HOUSEHOLDS BY INCOME 3 Miles 5 Miles 7 Miles 2017 Estimate

$150,000 or More 5.48% 5.50% 5.30%

$100,000 - $149,000 10.18% 11.29% 11.41%

$75,000 - $99,999 10.31% 11.51% 12.12%

$50,000 - $74,999 19.17% 21.40% 22.64%

$35,000 - $49,999 16.20% 15.08% 15.69%

Under $35,000 38.68% 35.22% 32.83%

Average Household Income $63,009 $64,598 $65,229

Median Household Income $44,813 $49,640 $51,581

Per Capita Income $27,602 $26,304 $25,411

HOUSEHOLDS BY EXPENDITURE 3 Miles 5 Miles 7 MilesTotal Average Household Retail Expenditure $56,903 $60,091 $61,177

Consumer Expenditure Top 10 Categories

Housing $14,976 $15,733 $16,017

Transportation $10,028 $10,607 $10,881

Shelter $8,305 $8,788 $8,964

Food $5,936 $6,306 $6,443

Personal Insurance and Pensions $4,792 $5,264 $5,419

Health Care $3,879 $3,944 $3,955

Utilities $3,589 $3,730 $3,793

Entertainment $2,288 $2,334 $2,345

Cash Contributions $1,774 $1,793 $1,781Household Furnishings and Equipment $1,471 $1,515 $1,518

POPULATION PROFILE 3 Miles 5 Miles 7 Miles Population By Age

2017 Estimate Total Population 30,222 68,321 108,867

Under 20 23.76% 26.05% 27.69%

20 to 34 Years 25.45% 26.31% 26.74%

35 to 39 Years 5.91% 6.34% 6.72%

40 to 49 Years 11.48% 11.85% 11.83%

50 to 64 Years 18.31% 17.37% 16.29%

Age 65+ 15.08% 12.11% 10.74%

Median Age 35.63 33.31 32.12

Population 25+ by Education Level

2017 Estimate Population Age 25+ 20,242 43,895 68,723

Elementary (0-8) 3.15% 2.57% 2.29%

Some High School (9-11) 7.09% 6.37% 6.09%

High School Graduate (12) 33.92% 33.69% 33.22%

Some College (13-15) 21.60% 23.54% 24.56%

Associate Degree Only 5.93% 6.85% 7.68%

Bachelors Degree Only 16.54% 16.66% 16.48%

Graduate Degree 10.69% 9.46% 8.78%

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IncomeIn 2017, the median household income for your selected geography is$44,565, compare this to the US average which is currently $56,286.The median household income for your area has changed by 25.49%since 2000. It is estimated that the median household income in yourarea will be $52,831 five years from now, which represents a changeof 18.55% from the current year.

The current year per capita income in your area is $31,155, comparethis to the US average, which is $30,982. The current year averagehousehold income in your area is $63,000, compare this to the USaverage which is $81,217.

PopulationIn 2017, the population in your selected geography is 6,140. Thepopulation has changed by 4.14% since 2000. It is estimated that thepopulation in your area will be 6,330.00 five years from now, whichrepresents a change of 3.09% from the current year. The currentpopulation is 47.89% male and 52.11% female. The median age ofthe population in your area is 36.45, compare this to the US averagewhich is 37.83. The population density in your area is 1,952.91 peopleper square mile.

HouseholdsThere are currently 3,022 households in your selected geography. Thenumber of households has changed by 13.99% since 2000. It isestimated that the number of households in your area will be 3,182five years from now, which represents a change of 5.29% from thecurrent year. The average household size in your area is 1.99 persons.

EmploymentIn 2017, there are 3,078 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that63.25% of employees are employed in white-collar occupations inthis geography, and 37.04% are employed in blue-collar occupations.In 2017, unemployment in this area is 5.10%. In 2000, the averagetime traveled to work was 24.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows:80.92% White, 11.04% Black, 0.05% Native American and 1.48%Asian/Pacific Islander. Compare these to US averages which are:70.42% White, 12.85% Black, 0.19% Native American and 5.53%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 7.18% of the current yearpopulation in your selected area. Compare this to the US average of17.88%.

PROPERTY NAME

MARKETING TEAM

1839 MADISON STREET

HousingThe median housing value in your area was $160,987 in 2017,compare this to the US average of $193,953. In 2000, there were1,339 owner occupied housing units in your area and there were1,311 renter occupied housing units in your area. The median rent atthe time was $464.

Source: © 2017 Experian

DEMOGRAPHICS

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1839 MADISON STREET

DEMOGRAPHICS

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offering memorandum - loopnet · 2019-01-24 · on june 12th , 2018 the 7,403 square foot retail...

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