offering memorandum monro muffler - matthews bus service operates on weekdays between the city of...

M o n r o M u f f l e r , H a r r i s b u r g , P A | 1

Monro Muffler3 3 2 0 & 3 3 2 4 W a l n u t S t . | H a r r i s b u r g , P A

O F F E R I N G M E M O R A N D U M

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2 | M a t t h e w s R e t a i l A d v i s o r s ™

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e x c l u s i v e ly l i s t e d b yc h r i s t o p h e r l a s k e r o

Associate

[email protected] (424) 220-7247MOB (858) 414-7849LIC # 677086 (TX)

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E X E C U T I V E S U M M A R Y

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a r e a O V E R V I E W

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B r a d e n c r o c k e t t

Senior Associate

[email protected] (310) 919-5814MOB (714) 345-6206LIC # 01946071

S c o t t B u r d e t tBROKER OF RECORD

LIC # 10301213057

Representative PhotoRepresentative Photo

4 | M a t t h e w s R e t a i l A d v i s o r s

PROPERTY DETAILS

• Offered at an attractive 6.93% return

• Ground Lease - Absolute NNN Investment with Zero Landlord Responsibilities

• 2.5+ Years remaining on the leases initial term

• Two (2), Five-Year (5) extension options – 10% increases in every option period

• Terrific Bite-sized deal: Ideal 1031 Exchange Property

• Established Location: Monro Muffler, Inc. has been operating for almost 40 years, conveying strong commitment to the site

LOCATION

• Conveniently located on Walnut St., which sees ± 30,000 ADT

• Strong Retailer Corridor - Dunkin’ Donuts, KFC, Dairy Queen, Sherwin-Williams, Wendy’s, Subway, Capitol Area Medical Center and Shell Gas

• Close proximity to Colonial Park Mall that holds major retailers including Buffalo Wild Wings, LongHorn Steakhouse, Red Lobster, Long John Silver’s, McDonald’s and Applebee’s

• Attractive Demographics: More than 190,000 residents with an average household income of $60,000 within a 5-mile radius – Ideal for Auto Service

TENANT

• Monro Muffler, Inc. (NYSE: MNRO) is one of the largest chains of the company-operated undercar care facilities in the United States

• As of June 2016, the Company operates 1,064 stores in 25 states across the nation

• Combination of over 35 acquisitions in the last 15 years; Recent Acquisitions include Kramer Tire - Tread Quarters, Colony Tire & Service, Tuffy Auto Service Centers/Car-X Tire & Auto, Tire Barn, Ken Towery Tire & Autocare, and Tire King, amongst others

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M o n r o M u f f l e r , H a r r i s b u r g , P A | 5Representative Photo


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M o n r o M u f f l e r3320 & 3324 Walnut St.Harrisburg, PA 17109

List Price ..............................................................................................$400,000

CAP Rate - Current ...................................................................................6.93%

Gross Leasable Area ...................................................................... ± 2,803 SF

Lot Size ..........................................................................................± 0.66 Acres

Annualized Operating DataMonthly Rent Annual Rent Cap Rate

11/1/2016 - 10/31/2019 $2,310.00 $27,720.00 6.93%

Option 1: 11/1/2019 - 10/31/2024 $2,541.00 $30,492.00 7.62%

Option 2: 11/1/2024 - 10/31/2029 $2,795.10 $33,541.20 8.39%

Tenant Summary

Tenant Trade Name Monro Muffler

Type of Ownership Ground Lease

Lease Guarantor Monro Muffler, Inc.

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 15 Years

Lease Commencement Date 11/1/2014

Rent Commencement Date 11/1/2014

Lease Expiration Date 10/31/2019

Term Remaining on Lease ± 2.5 Years

Increases 10% Every Five (5) Years

Options Two (2), Five (5) Year Options



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Property Name Monro Muffler

Company Trade Name Monro Muffler Brake, Inc. (NASDAQ: MNRO)

Ownership Public

Revenue $943.65 M

Net Income $66.81 M

No. of Locations ± 1,064

No. of Employees ± 6,725

Headquartered Rochester, New York

Website www.monro.com

Year Founded 1957

TENANT OVERVIEW

Since the opening of the first Monro Muffler in 1957, the auto care center has been a pioneer in the auto service industry. Monro Muffler provides a full range of brake, tire, exhaust system, suspension, and steering and alignment services at more than 1,064 automotive repair shops. Its operations span nearly 20 states in the Northeast and Midwest and include Monro Muffler Brake & Service, Mr. Tire, Tread Quarters, AutoTire Car Care Center, and Tire Warehouse. Along with under-car work, the company offers air conditioning maintenance, state inspections, and scheduled maintenance services, including fleet maintenance. Monro Muffler services more than 4.4 million vehicles annually; Tire replacements and service account for more than 35% of sales.

STRATEGY

Through both acquisitions and organic growth, Monro Muffler has continued to expand its footprint. Unlike many of its competitors, the company owns almost all of its stores, believing it can better manage repair shops and train employees through more centralized control. Independent dealers operate only about 15 locations. It also operates nearly 35 full-service Monro stores onsite at BJ’s Wholesale Clubs.

In recent years Monro’s sales have also been helped by the economic downturn, which has resulted in tightened credit markets and decreased consumer spending, prompting Americans to drive and maintain their vehicles instead of trade them in for new models. Monro stands behind a lowest price guarantee for all scheduled maintenance, repairs, and tires. Core product and service offerings include oil changes, brakes, shocks and struts, mufflers and wheel alignments. All stores sell at least a basic line of the most popular tire brands and models. Tire sales is an increasingly important share of Monro’s business and nearly half of the company’s stores now carry extensive inventories of tires to meet customer demand.

GEOGRAPHIC REACH

Monro Muffler Brake operates company stores in 19 states, including New York, Pennsylvania, Ohio, Massachusetts, New Jersey, the Carolinas and Illinois.


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t h e o f f e r i n g

Property Name Monro Muffler

Property Address 3320 & 3324 Walnut St.

Harrisburg, PA 92056

Assessor’s Parcel Number A 62-033-140

Assessor’s Parcel Number B 62-033-141

Site DescriptionNumber of Stories One

Gross Leasable Area (GLA) ± 2,803 SF

Lot Size ± 0.66 Acres (28,854 SF)

Type of Ownership Fee Simple

Landscaping Professional

Topography Generally Level

ConstructionFoundation Concrete Slab

Framing Wood

Exterior Brick

Parking Surface Asphalt

Roof Flat


M o n r o M u f f l e r , H a r r i s b u r g , P A | 1 1

Walnut St ±

30,000 ADT

Parcel A

Parcel B

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Along the shores of the Susquehanna River in central Pennsylvania, Harrisburg is a city that has transformed from a modest ferry outpost into a picturesque capital city. It is a burgeoning center for the region’s arts and culture, offering all the pleasures of an urban metropolis while maintaining the southcentral Pennsylvania charm. As the capital of the Commonwealth of Pennsylvania, Harrisburg attracts thousands of residents and visitors.

H a r r i s b u r g , P A

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POPULATION 1-Mile 3-Mile 5-Mile

2021 Projection 12,934 97,749 187,791

2016 Estimate 13,008 97,191 185,002

2010 Census 13,144 96,823 181,604

Growth 2016 - 2021 -0.57% 0.57% 1.51%

Growth 2010 - 2016 -1.03% 0.38% 1.87%

HOUSEHOLDS 1-Mile 3-Mile 5-Mile

2021 Projection 5,756 41,670 80,532

2016 Estimate 5,776 41,298 79,024

Growth 2016 - 2021 -0.36% 0.90% 1.91%

INCOME 1-Mile 3-Mile 5-Mile

2016 Est. Average Household Income

$62,335 $59,319 $69,965

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Economic DevelopmentAs the metropolitan center for some 400 communities, Harrisburg has a diverse economy with a large representation of service-related industries, namely health care and a growing technological and biotechnology industry to accompany the dominant government field. Harrisburg’s economy is projected to progress due to the area’s relatively low cost of doing business, financial stability of the region and the strategic central location along key surface transportation routes within the United States. Additionally, given the region, the cost of living is low in Harrisburg, especially for a capital city.


C u lt u r a l a m e n i t i e sAn assortment of historic museums, the capitol complex and a nice waterfront strip along the Susquehanna River make up the city’s downtown area. Riverfront Park and City Island offer numerous activities along the beautiful banks of the river from enjoying the scenery on a leisurely stroll or a pleasant bike ride to cruising the river on the Pride of Susquehanna Paddlewheeler. Downtown Harrisburg has become a popular destination for live entertainment, showcasing jazz and contemporary music performances in its various nightclubs.

Each Labor Day weekend, Harrisburg hosts the Kipona Festival, a riverfront celebration that is one of the oldest continuously operating inland festivals. With arts and crafts, a puppet theater and the renowned Pennsylvania Chili Cookoff, the Kipona Festival attracts well over 50,000 people each year.

Built by and named after Milton S. Hershey, founder of the Hershey Chocolate Company, Hersheypark, a family themed park situated in Hershey, is just a short drive from Harrisburg. The park offers amusement rides, pools, themed areas, entertainment and dining.

T O P E M p l o y e r s1. Commonwealth of Pennsylvania

2. United States Federal Government

3. Giant Food Stores

4. Penn State Hershey Medical Center

5. Hershey Entertainment and Resorts


PENNSYLVANIA STATE CAPITOL

As a priceless architectural and artistic treasure, Pennsylvania’s State Capitol building is a majestic icon of democracy and freedom. The building features paintings, stained glass and furnishings that incorporate various Renaissance designs throughout.

CITY ISLAND

STATE MUSEUM OF PENNSYLVANIA

City Island is a mile-long island in the Susquehanna River between Harrisburg and Wormleysburg. Mainly used for leisure and sports activities, the island is the current site of the Skyline Sports Complex and provides family-based amusements.

The State Museum of Pennsylvania is a non-profit museum run by the Commonwealth through the Pennsylvania Historical and Museum Commission. It is a part of the Pennsylvania State Capitol Complex and features a large statue of Penn in its central hall.

NATIONAL CIVIL WAR MUSEUM

WILDWOOD PARK

HERSHEYPARK

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At the National Civil War Museum, history is preserved in equally balanced presentations without bias to Union or Confederate causes. This museum is the only museum in the United States that portrays the entire story of the American Civil War.

Tucked away in the rolling hills of Central Pennsylvania, Wildwood Park is conveniently located on the edge of Harrisburg. From exploring the Nature Center and bike riding to birdwatching and picnicking, the park offers many outdoor recreational opportunities.

Hersheypark is a family theme park in Hershey, Pennsylvania. Adjacent to the park is Hershey’s Chocolate World, a visitors’ center that is open to the public and contains shops, restaurants and a chocolate factory-themed tour ride.

FORT HUNTER MANSION & PARK

Built on a bluff overlooking the Susquehanna River, Fort Hunter Mansion and Park has served as a war fort, a hub for frontier commerce and an exclusive private estate. Now preserved and open to the public, it exhibits Pennsylvania’s rich history to visitors.

RIVERFRONT PARK

SUSQUEHANNA ART MUSEUM

Between the shoreline and Front Street, Riverfront Park is a public park that runs parallel to the Susquehanna River. Popular among locals and visitors alike, the park offers spectacular views of the river, City Island, Wormleysburg and Blue Mountain.

Located in Harrisburg’s emerging midtown neighborhood in a newly reclaimed building, the Susquehanna Art Museum serves as a catalyst in the Commonwealth to offer educationally superior programming and diversely extraordinary exhibitions.


Harrisburg International Airport is nine miles southeast of Harrisburg in the suburb of Midtown. As the third-busiest commercial airport in Pennsylvania, both in terms of passengers served and cargo shipments, the airport is served by American Airlines, United Airlines, Delta Air Lines, Air Canada and Allegiant Air.

Harrisburg is served by Capital Area Transit (CAT), which provides public bus, paratransit and a commuter rail service throughout the greater metropolitan area. Its scheduled route bus service includes Dauphin County, Cumberland County and York County.

Rabbit Transit is the public transit provider in York County and is operated by the York Adams Transit Authority. Rabbit Transit’s RabbitEXPRESS bus service operates on weekdays between the city of York and downtown Harrisburg and the main campus for Harrisburg Area Community College.

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HARRISBURG INTERNATIONAL AIRPORT

CAPITAL AREA TRANSIT

RABBIT TRANSIT


This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Monro Muffler located at 3320 & 3324 Walnut St., Harrisburg, PA 17109 (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T


e x c l u s i v e ly l i s t e d b y

S c o t t b u r d e t t

C h r i s t o p h e r l a s k e r o

B r a d e n c r o c k e t t

Associate

Senior Associate

[email protected] (424) 220-7247MOB (858) 414-7849

[email protected] (310) 919-5814MOB (714) 345-6206

Monro Muffler3 3 2 0 & 3 3 2 4 W a l n u t S t . | H a r r i s b u r g , P A

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BROKER OF RECORDLIC # 10301213057

offering memorandum monro muffler - matthews bus service operates on weekdays between the city of...

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